Bear Radar

Style Underperformer:

• Large-Cap Value unch.

Sector Underperformers:

• 1) Telecom -.5% 2) Oil Service -.4% 3) REITs -.4%

Stocks Falling on Unusual Volume: 

• RHP, UPWK, CMD, PTON, CASY, DBI, ROAD and CONN

Stocks With Unusual Put Option Activity:

• 1) FIZZ 2) AMLP 3) SFIX 4) TOL 5) AZO

Stocks With Most Negative News Mentions:

• 1) CF 2) CVS 3) MNK 4) IP 5) XOM

Charts:

• ETFs Falling on Unusual Volume
• Stocks Falling on Unusual Volume

Bull Radar

Style Outperformer:

• Small-Cap Growth +.2%

Sector Outperformers:

• 1) Disk Drives +1.2% 2) Biotech +.9% 3) Semis +.8%

Stocks Rising on Unusual Volume:

• PRNB, CLVS, RUBY, BLUE, PCG, FTSV, TEN, SFIX, AXSM, AZO, GTT, APLS, RCKT, NGL, PRVB, IPHI, DOMO, AGIO, DCP, EXEL, EQM, ARWR, NBLX, KYN, ETRN, TNDM, ENBL, CHWY, PVAC, WES, EVRI, THO, INMD, GSAH, NTG, GEL, AXNX, BLOK, PENN, GNK, EXPE and TYG

Stocks With Unusual Call Option Activity:

• 1) ARQL 2) CL 3) A 4) TOL 5) MDB

Stocks With Most Positive News Mentions:

• 1) SFIX 2) AZO 3) CHWY 4) FTSV 5) THO

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running -7.0% Below 100-Day Average
• 7 Sectors Rising, 4 Sectors Declining
• 52.5% of Issues Advancing, 43.6% Declining
• 79 New 52-Week Highs, 15 New Lows
• 59.1% of Issues Above 200-day Moving Average
• Average 14-Day RSI 49.0%
• Vix 15.6 -1.4%
• Total Put/Call .99 -2.9%
• TRIN/Arms .85 -17.5

Tuesday Watch

Evening Headlines

Bloomberg:

• ‘Fangirls’ Defend China From Hong Kong Protesters and the World.

• Asia Stocks in Holding Pattern Ahead of Fed, Trade. Asian stocks saw muted trading Tuesday as investors turned cautious ahead of the week’s potential catalysts, from central bank meetings to a looming tariff deadline. Treasuries and the dollar were little changed. Equities were flat-to-lower in Tokyo and Sydney, little changed in Seoul and dropped at the open in Hong Kong, as investors awaited news on whether Washington will go ahead with a planned Dec. 15 tariff hike. Trading volumes were below average. S&P 500 futures were flat after the benchmark ended at session lows in thin trading. Oil edged down. Topix index edged down 0.1% as of 10:23 a.m. in Tokyo. S&P/ASX 200 Index was down 0.2%. Kospi index was flat. Hang Seng Index fell 0.4%. Shanghai Composite index was flat. S&P 500 futures were little changed. The S&P 500 Index declined 0.2%.

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

• Tariff Pause, Saudis See Brent at $65, Coming Capex Cut: Eco Day. 

• Oil Holds Steady As Investors Watch for Trade War Developments.

• Morgan Stanley Eliminates About 1,500 Jobs in Year-End Cuts.

• Don’t Look Now, But Things Are Getting Brighter for Trump.

• Toll Brothers(TOL) Posts Quarterly Home Orders Beating Estimates.

Wall Street Journal:

• McAfee Considers Making Bid for Rival NortonLifeLock.

• American Factories Demand White-Collar Education for Blue-Collar Work.

• Big Drugmakers Push Deeper Into Cancer Treatment.

• Congress Wants to Ban Chinese Buses, Railcars in Defense Bill. 

• Trump Upbeat on Trade Deal With Mexico, Canada.

Fox News:

• DOJ watchdog's Russia probe review finds 'significant' errors, omissions, as Durham objects.

CNBC:

• Stocks making the biggest moves after hours: Stitch Fix, Agilent, Toll Brothers and more.

Zero Hedge:

• 'A Clear Abuse': Barr, Durham Object To IG FISA Probe Findings In Stunning Statements.

• DOJ Inspector General Releases Report On FBI Conduct, Finds "Clear Abuse" Of FISA Process.

• China Launches 'Competitor' Pipeline Mega-Company In Gambit To Double Oil & Gas Infrastructure.

• Apple "Deeply Concerned" That Chinese-Born Staff Who Allegedly Stole Trade Secrets Will Try To Flee.

• Morgan Stanley: Central Banks Are Injecting $100 Billion Per Month To Crush Vol And Spike Markets.

• Israel Threatens Iran With "Own Vietnam" In Syria, Hints At Major Pre-Emptive Strike.

• The Comey FBI's 17 Worst Failures, Inaccuracies, & Omissions Flagged In The FISA Report: Solomon.

• IG Report Confirms Brennan Lied Through His Teeth About Steele Dossier.

• Joe Biden's 'Temper Was Overflowing' After Ukrainian Prosecutor Seized Burisma Assets: Report.

• Stocks Slide As Bond Yields, Dollar Erase Friday Jobs Spike.

Night Trading 

• Asian equity indices are -.25% to unch. on average.

• Asia Ex-Japan Investment Grade CDS Index 64.0 unch.

• China Sovereign CDS 38.75 +1.0 basis point.

• Bloomberg Emerging Markets Currency Index  65.71 +.01%.

• FTSE 100 futures +.08%.

• S&P 500 futures +.01%.

• NASDAQ 100 futures +.02%.

Morning Preview Links

Earnings of Note 
Company/Estimate

Before the Open:

• (AZO)/13.74

• (CONN)/.54

• (HDS)/1.00

After the Close:

• (PLAY)/.07

• (GME)/.17

• (OLLI)/.38

Economic Releases 
6:00 am EST

• The NFIB Small Business Optimism Index for Nov. is estimated to rise to 103.0 versus 102.4 in Oct.

Upcoming Splits

• None of note

Other Potential Market Movers

• The German ZEW Index, $24B 10Y T-Note auction, US weekly retail sales reports, Goldman Sachs Financial Services Conference, SunTrust Robinson Humphrey Industrials/Services Conference, Citi Consumer Conference, (NUAN) investor day, (THS) investor meeting, (OMCL) analyst day and the Cowen Networking/Cybersecurity Summit could also impact trading today.

BOTTOM LINE: Asian indices are mostly lower, weighed down by industrial and financial shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing mixed. The Portfolio is 75% net long heading into the day.

Stocks Slightly Lower into Final Hour on Global Growth Concerns, Oil Decline, Profit-Taking, Medical/Healthcare Sector Weakness

 Broad Equity Market Tone:

• Advance/Decline Line: Slightly Lower
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 15.2 +11.7%

• Euro/Yen Carry Return Index 124.72 +.05%

• Emerging Markets Currency Volatility(VXY) 6.75 -.15%

• S&P 500 Implied Correlation 43.2 +3.72%

• ISE Sentiment Index 111.0 -10
  

• Total Put/Call .91 +3.41%

• NYSE Arms .94 +28.8%

Credit Investor Angst:

• North American Investment Grade CDS Index 49.97 +.96%
  

• America Energy Sector High-Yield CDS Index 643.0 -1.2%

• European Financial Sector CDS Index 55.35 -.27%

• Italian/German 10Y Yld Spread 158.25 -5.5 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 63.71 -.8%
  

• Emerging Market CDS Index 199.46 -.35%
  

• iBoxx Offshore RMB China Corporate High Yield Index 167.48 -.24%

• 2-Year Swap Spread 1.5 -.25 basis point

• TED Spread 38.5 +.75 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -2.75 -2.75 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 65.71 +.02%
• 3-Month T-Bill Yield 1.53% +1.0 basis point

• Yield Curve .21 -1.0 basis point

• China Iron Ore Spot 92.25 USD/Metric Tonne +.38%

• Citi US Economic Surprise Index 4.9 -2.6 basis points

• Citi Eurozone Economic Surprise Index .3 +6.5 points

• Citi Emerging Markets Economic Surprise Index -23.6 -.6 basis point

• 10-Year TIPS Spread 1.70 unch.
• 8.3% chance of Fed rate cut at Jan. 29th meeting, 19.5% chance of cut at March 18th meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -35 open in Japan 
• China A50 Futures: Indicating -33 open in China

• DAX Futures: Indicating -9 open in Germany

Portfolio:

• Slightly Lower: On losses in my tech/medical sector longs

• Disclosed Trades: None

• Market Exposure: 100% Net Long

Bear Radar

Style Underperformer:

• Mid-Cap Growth -.1%

Sector Underperformers:

• 1) Medical Equipment -1.2% 2) I-Banks -.6% 3) Social Media -.6%

Stocks Falling on Unusual Volume: 

• BLUE, DY, CDLX, IFF, GBT, EVER, PGNY, SGMO, MNRL, BPMC, TVTY and DTIL

Stocks With Unusual Put Option Activity:

• 1) PCG 2) SFIX 3) ARQL 4) HTZ 5) BIG

Stocks With Most Negative News Mentions:

• 1) CGIP 2) KOS 3) MNK 4) YJ 5) MPC

Charts:

• ETFs Falling on Unusual Volume
• Stocks Falling on Unusual Volume