Bull Radar

Style Outperformer:

• Small-Cap Value +.2%

Sector Outperformers:

• 1) Shipping +1.3% 2) Steel +1.1% 3) Retail +1.0%

Stocks Rising on Unusual Volume:

• ARQL, FTSV, FATE, PCG, BBIO, CNST, NKTR, SWTX, ITCI, PRNB, TCBI, TPTX, DLTH, TLYS, NBLX, ZM, GCO, BIG, LE, PD, PTON, CLVS, WING, BBBY, SGRY, FCX, MOV, VRA, IBTX, LPG, CLDR, SFIX, DKS, DCPH, ZUO, AGIO, YEXT, THC, KHC, SPPI, KOD, GLW, TEXT, AGIO and CONN

Stocks With Unusual Call Option Activity:

• 1) GLW 2) RRC 3) TPR 4) DPLO 5) ARQL

Stocks With Most Positive News Mentions:

• 1) ARQL 2) FISV 3) FATE 4) TGTX 5) AR

Charts:

• ETFs Rising on Unusual Volume
• Stocks Rising on Unusual Volume

Morning Market Internals

NYSE Composite Index:

• Volume Running -10.7% Below 100-Day Average
• 9 Sectors Rising, 2 Sectors Declining
• 55.7% of Issues Advancing, 40.3% Declining
• 77 New 52-Week Highs, 9 New Lows
• 58.0% of Issues Above 200-day Moving Average
• Average 14-Day RSI 49.9%
• Vix 14.5 +6.1%
• Total Put/Call .80 -9.1%
• TRIN/Arms .73 unch.

Monday Watch

Today's Headlines

Bloomberg: 

• China’s Unexpected Export Drop Shows Why It Wants a Trade Deal.  

• Biggest Hong Kong Protest in Months Signals More Unrest in 2020.     

• Johnson Returns to Key Brexit Message as Polls Put Him Ahead.  

• Japan’s Economy Grew Much Faster Than First Estimated in Q3.

• Asia Stocks Start Week Firmer; Treasuries Steady. Asian stocks kicked off the week with modest gains after U.S. equities rallied Friday on better-than-expected jobs data. Treasuries stabilized after declines. Equity benchmarks opened higher in Tokyo, Sydney and Seoul. Gains were modest with the key Dec. 15 U.S.-China tariff deadline looming with no specific plan for a trade deal. Weekend data showing a drop in Chinese exports underlined the stakes for growth. S&P 500 futures were flat after the index logged gains Friday after reports showing payrolls jumped the most since January, wages beat estimates and consumer sentiment increased. Treasury yields were steady after climbing above 1.80%. Japan’s Topix index rose 0.4% as of 9:11 a.m. in Tokyo. Australia’s S&P/ASX 200 Index rose 0.2%. Kospi index rose 0.2%. Hang Seng Index futures climbed 0.3% earlier. S&P 500 futures were little changed. The S&P 500 climbed 0.9% Friday.  

• Five Things You Need to Know to Start Your Day.  

• ‘Quantitative Failure,’ Fed and ECB, China Export Slump: Eco Day   

• Goldman Lifts 2020 Oil Forecasts as OPEC Cuts Tighten Market.

• Saudi Stocks Up Most This Year on Aramco, Oil Outlook: Inside EM.  

• China Soy Imports Rise to 3-Month High as U.S. Cargoes Cleared.

• The Shock and Awe Era for Central Banks Is Over.

• Repo Blowup Was Fueled by Big Banks and Hedge Funds.

Wall Street Journal:

• Investors Bail on Stock Rally, Fleeing Funds in Droves.

• Trump vs. Schiff Is a Clash of One Titan.

• China’s Influencers Livestream Product Demos to Followers, Drive Web Advertising.

• Warren Goes After Buttigieg After Slipping in Polls.

• Saudis Probing If Florida Gunman Was Radicalized on Visit.

MarketWatch.com:

• Hong Kong takes to the streets in massive show of support for pro-democracy protest movement.

• Barron’s on MarketWatch: Small-cap stocks are breaking out, and here are 10 investments poised to score.

Fox News:

• Manhunt for missing Saudi students after deadly attack at US naval base; others detained: report.

• GOP senators called out by conservative author over Trump impeachment stand.

• Nunes blasts Schiff's release of his phone records in impeachment probe, mulling legal options.

CNBC:

• The future of the US wireless industry in limbo as T-Mobile and Sprint begin battle to win merger approval.

• Disney nears $10 billion global box office record and ‘Rise of Skywalker’ isn’t even out yet.

• What Trump does before trade deadline is the ‘wild card’ that will drive markets in the week ahead.

• CDC says no single brand is likely responsible for the outbreak of vaping lung disease.

Zero Hedge:            

• Chuck Todd Goes Nuclear After Ted Cruz Mentions 'Debunked' Ukraine Election Meddling.

• Trump's New Food-Stamp Rules In Illinois: If Not Now, When?

• US Military Bases On High Alert As FBI Hunts Missing Saudi Servicemen Linked To Pensacola Shooting.

• Hong Kong Protests Attract Massive Crowds, Estimated 800k March In Financial District.

• Tesla(TSLA) On Autopilot Slams Into Connecticut Police Cruiser On I-95.

• How California's Government Plans To Make Wildfires Even Worse.

• "Dotard" Trump Downplays North Korea Missile Test, Says Kim "Has Everything To Lose" If He Acts In Hostile Way.

• Nadler: Trump Will 'Rig' 2020 Election If He Isn't Impeached And Removed.

• "See You After Jail Guys": Art World Stunned After Man Eats $120,000 Banana Duct Taped To Wall.

• "Cash Strapped" Elon Musk Is Buying Up Entire Neighborhoods In Los Angeles.

• The David Einhorn Podcast: The Fed Is Monetizing Debt Again.

• Luongo: "Pelosi's Mask Just Slipped".

• How The Dems & The Fed Ensured Trump's Re-Election.
  

Night Trading

• Asian indices are unch. to +.5% on average.

• Asia Ex-Japan Investment Grade CDS Index 64.0 -.75 basis point.

• China Sovereign CDS 37.75 -1.5 basis points.

• Bloomberg Emerging Markets Currency Index 65.72 +.04%.

• FTSE 100 futures -.33%.

• S&P 500 futures -.14%.

• NASDAQ 100 futures -.18%.

Morning Preview Links

Earnings of Note

Company/Estimate
Before the Open:

• (THO)/1.24

After the Close:

• (CASY)/2.16

• (CHWY)/-.13

• (SFIX)/-.06

• (TOL)/1.30

• (MTN)/-2.99

Economic Releases

• None of note

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The China CPI report, 3Y T-Note auction, Raymond James Tech Conference, Cowen Energy Conference, UBS Media/Telecom/Communications/Tech Conference and the (SLG) investor conference could also impact trading today.

BOTTOM LINE: Asian indices are modestly higher, boosted by technology and industrial shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing mixed.  The Portfolio is 100% net long heading into the week.

Weekly Outlook

• Wall St. Week Ahead by Reuters.

• Global Economy Week by Bloomberg. 

• The Week Ahead by Yahoo. (video)

• Stocks to Watch Next Week by Seeking Alpha.

• Weekly Economic Calendar by Briefing.com.

BOTTOM LINE: I expect US stocks to finish the week modestly higher on China trade deal hopes, fewer global growth concerns, oil gains, technical buying, seasonal strength and short-covering. My intermediate-term trading indicators are giving neutral signals and the Portfolio is 100% net long heading into the week.

Today's Headlines

Bloomberg:   

• U.S. Wage Growth Eclipses Mortgage Rate for First Time Since 1972.

• S&P 500 Melt-Up Is So Hot It’s Making Cheerleaders Into Skeptics.

• Robots in Finance Could Wipe Out Some of Its Highest-Paying Jobs.

• Your Weekend Reading: The Year of Deadly Protests.  

• Robots in Aisle Two: Supermarket Survival Means Matching Amazon.

Wall Street Journal:

• Mexico’s Polarizing President Presides Over Rising Violence, Flailing Economy.

• Amazon, Facebook Expand in New York.

• The Labor Virtues of Growth.

• ‘Free College for All’ Is an Experiment That Has Already Failed.

• Iran Releases American Citizen in Prisoner Swap,

CNBC:

• Dow surges more than 300 points on blockbuster jobs data, S&P 500 erases losses for the week.

• Elon Musk found not liable in ‘pedo guy’ defamation trial.

• Here’s where the jobs are — in one chart.

• Joe Biden claims he said ‘facts’ not ‘fat’ to Iowa voter: Listen to the tape yourself.

• Stocks surge on strong jobs report—what 5 pros see ahead for the US economy.

• Warren’s antitrust bill would dramatically boost government control over the biggest US companies.

• It’s possible the US economy is not ‘late cycle’ but rather just recharging.

• Bezos says ‘the country is in trouble’ if big tech turns its back on Pentagon: ‘We are the good guys’.

• Citigroup is raising its stock forecast for 2020 despite election year uncertainty.

Barron's:

• Had bullish commentary on (EVER), (EXPE), (CLF), (DAD), (CODI), (QLYS), (LECO) and (HASI).

MarketWatch.com:

• Does the stock market even need a U.S.-China trade deal with the jobs report this hot?

• Trump is not ready to sign a trade deal and the stock market doesn’t care.

Fox News:

• Saudi Naval Air Station shooter condemned US in online post before deadly rampage: report.

• 'Definitely going to take legal action,' Nunes says after phone records exposed in impeachment report.

Zero Hedge:

• Six Saudis Arrested For Questioning After Pensacola Shooting - Three Were Filming Attack.

• Naval Base Shooter Hosted Dinner Party To Watch Mass Shooting Videos Night Before Attack.

• Biden And Pelosi Snap On The Same Day, Anti-Impeachment Witness Threatened; What's Going On With Democrats?

• CNN Ratings Drop To Three-Year Low Amid Constant Impeachment Coverage.

• North Korea Says Denuclearization "Off Negotiating Table" After Breakdown In Talks.

• Germany: Antifa Radicals Threaten To Assassinate AfD Member Of Parliament.

• Tennessee Offered Free College To Fix Its Crumbling Educational System. Then Something Unexpected Happened.

• Greta Thunberg Enraged After Climate Strikes "Achieved Nothing", Has Yet To Visit China.

• New Data Reveals Which College Grads Earn Most And Which Carry The Most Debt.

• White House Tells Democrats It Won't Participate In Next Week's Impeachment Hearings.

• NYU-Shanghai Quietly Adds Communist-Sympathizing, Pro-Chinese Government Course.

• Terrorism Probe Opened After Pensacola Shooter IDed As Saudi National Mohammed Alshamrani; Was There For Pilot Training.

• As Ray Dalio Rises To Celebrity Status, Investors Ignore His Sub-Par Returns.

• Kunstler: "All The Players In This Great Game Of 'Gotcha' Are About To Face The Consequences".

• October Credit Card Usage Surges To All Time HIgh As Americans Regain Their Spending Mojo.

• Wild, Rollercoaster Week Ends Where It Started After Blockbuster Jobs, Return Of "Deal Optimism".

Business Insider: 

• 27 tech gifts for women that she'll love to get this holiday season.