Bear Radar

Style Underperformer:

• Small-Cap Value -9.6%

Sector Underperformers:

• 1) Oil Service -29.2% 2) Energy -20.7% 3) Banks -13.5%

Stocks Falling on Unusual Volume: 

• LNG, KMI, SBNY, SIVB, CVX, BAC, WSC, PRU, AYX, HFC, TGE, PH, PSXP, ERI, CLH, LVGO, AIG, MPLX, SGMS, FLS, EPD, WEX, KEX, PB, FUN, CXO, CMA, WLK, FHN, CCL, SEAS, DOW, IBKC, CFR, TCBI, HWC, THO, BKR, RRR, NCLH, COP, INO, BCEI, BOOT, SLB, EOG, DK, WHD, HP, PXD, OKE, XEC, HES, CEQP, OXY, FANG, TRGP and APA

Stocks With Unusual Put Option Activity:

• 1) MAT 2) OPK 3) EWU 4) INO 5) TRGP

Stocks With Most Negative News Mentions:

• 1) SM 2) MRO 3) OXY 4) FANG 5) WLL

Charts:

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

Bull Radar

Style Outperformer:

• Large-Cap Growth -6.0%

Sector Outperformers:

• 1) Shipping -4.3% 2) Drugs -4.5% 3) Retail -5.0%

Stocks Rising on Unusual Volume:

• MUSA, DLTR, PETS and AZO

Stocks With Unusual Call Option Activity:

• 1) CY 2) CPE 3) FLT 4) DGX 5) OPK

Stocks With Most Positive News Mentions:

• 1) KALA 2) AIM 3) COG 4) TWTR 5) BMY

Charts:

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

Mid-Day Market Internals

NYSE Composite Index:

• Volume Running +120.1% Above 100-Day Average
• 0 Sectors Rising, 11 Sectors Declining
• 2.6% of Issues Advancing, 97.2% Declining
• 8 New 52-Week Highs, 1,531 New Lows
• 26.8% of Issues Above 200-day Moving Average
• Average 14-Day RSI 34.7%
• Vix 52.3 +25.6%
• Total Put/Call 2.30 +93.3%
• TRIN/Arms 1.25 +5.0%

Monday Watch

Today's Headlines

Bloomberg:  

• Italy’s Drastic Containment Rules Don’t Seem to Have Changed Life Much.  

• Italy Braces for Market Verdict on Conte Virus Containment Plan.  

• Italy’s Deaths Rise 57%; France Bars Large Events: Virus Update.

• U.S. Moves From Containment to Preparing for Daily Disruptions.

• U.S. Targets Cruise Lines; France Bars Big Events: Virus Update.

• There Is a ‘Tipping Point’ Before Coronavirus Kills.  

• Fauci Says Sense on Coronavirus Scope Is ‘Not Encouraging’.

• JPMorgan Sees ‘Early Signs’ of Stress on Credit and Funding.      

• Saudi Prince’s $2 Trillion Aramco Vision Fades on Oil-Price War.

• Oil Stokes Risks in ‘Close-Your-Eyes-and-Sell’ Emerging Markets.

• Mideast Stocks Plunge as Producers Head Toward Oil-Price War. 

• Oil Crashes, Equities Plunge in ‘Wild’ Trading. Oil prices crashed and U.S. equity futures plunged at the open Monday in Asia after crude producers launched a price war, an additional disruption to a global economy already struggling thanks to the coronavirus. Among the tumultuous moves to kick off the week: Crude plummeted more than 30% at one point, sliding the most since the Gulf War in 1991. Futures on the S&P 500 Index -- which face trading curbs if they move by 5% -- cratered as much as 4.6%. Norway’s krone slid to its weakest against the dollar since the 1980s. Mexico’s peso fell as much as 6%, to the weakest since the aftermath of border-wall advocate President Donald Trump taking office. Australian and New Zealand 10-year government bond yields hit fresh record lows. Australia’s benchmark stock index plunged the most since 2008. The yen soared to its strongest since 2016.

• Oil Drops 31% in Worst Loss Since Gulf War as Price Fight Erupts.  

• Goldman Warns Oil Could Dip Into the $20s as Price War Begins.

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

• Once Again, It’s During a Stock Rout That Active Managers Shine.

• Rout in U.S. Stock Futures Would Trigger Trading Curbs at 5%.

Wall Street Journal:

• Spendthrift Illinois Races Toward Default.

• Coronavirus Epidemic Exacerbates Metals Glut.

• What to Wear to Look Current in 2020.

Fox News:

• Kamala Harris endorses this Dem for president, ready to help campaign.

CNBC:

• OPEC deal collapse sparks price war: ‘$20 oil in 2020 is coming’.

• Coronavirus live updates: Italy locks down a quarter of its population.

• Virus-hit cruise ship off California’s coast will dock in Oakland.

• Saudi Aramco shares fall below IPO price for first time, Gulf stocks plummet after OPEC deal failure.

Zero Hedge:        

• Market Massacre: Oil Crashes 30%, Dow Down 1,000, VIX Explodes As Spoos Crater.

• Italy Places Milan Region Under Quarantine As First Covid-19-Linked Death Reported In Latin America: Live Updates.

• Elon Musk Defends "Dumb" Coronavirus Tweet With Inane, Pompous Sounding Non-Sequiturial Word Salad.

• US Coronavirus Cases Surpass 500 As Italian Deaths Surge 57%: Live Updates.

• Italy's Salvini Calls For Short Selling Ban, Citing "Soros Who Built His Fortune Betting Against Italy".

• Confused Biden Calls Himself "Obiden Bama" & Says "We Can Only Re-Elect Donald Trump".

• Global Air Traffic Set For Worst Year On Record.

• Fauci: Coronavirus Spread In America 'Not Encouraging'; Says Americans Should Avoid Large Gatherings, Especially If Vulnerable.

• After State Of Emergency, Cuomo Hints At Mass Quarantines For New York.

• Prosecutor Says Weinstein Sentence Should Reflect "Lifetime Of Sexual Abuse".

• Washington State Warns Mail-In Ballot Voters Not To Lick Envelopes.

• Lebanon Announces Default On $1.2BN Debt Payment In Historical First.

• How To Avoid Getting Infected By The Coronavirus.

• Elon Musk Says Panic About Coronavirus, Which Has Killed Over 3,400, Is "Dumb".

Business Insider:

• How coronavirus is upending corporate America.

John Hopkins University:

• Coronavirus Global Cases. (map)

BNO News:

• Tracking coronavirus: Map, data and timeline.

Google Docs:

• Coronavirus Testing by State.

Night Trading

• Asian indices are -3.5% to -2.5% on average.

• Asia Ex-Japan Investment Grade CDS Index 82.0 +12.25 basis points.

• China Sovereign CDS 55.5 +6.25 basis points.

• Bloomberg Emerging Markets Currency Index 62.99 -.44%.

• Euro Stoxx 50 futures -4.5%.

• S&P 500 futures -4.4%.

• NASDAQ 100 futures -4.3%.

Morning Preview Links

Earnings of Note

Company/Estimate

Before the Open:

• (CYOU)/.58

• (SOHU)/-.40

• (THO)/.70

After the Close:

• (CASY)/.89

• (SFIX)/.07

• (MTN)/5.43

Economic Releases

• None of note

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The China CPI report, German Industrial Production report, Deutsche Bank Media/Internet/Telecom Conference, CERAWeek 2020 and the (BIG) investor day could also impact trading today.

Market Hours
Normal:

• 9:30 am - 4:00 pm EST

BOTTOM LINE: Asian indices are sharply lower, weighed down by technology and commodity shares in the region. I expect US stocks to open sharply lower and to maintain losses into the afternoon.  The Portfolio is 25% 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 lower on coronavirus fears, oil weakness, European/Emerging Markets/US High-Yield debt angst, yen strength, global recession worries and technical selling. My intermediate-term trading indicators are giving neutral signals and the Portfolio is 25% net long heading into the week.

Today's Headlines

Bloomberg: 

• Coronavirus Could Cost the Global Economy $2.7 Trillion.

• Italy to Lock Down Milan Region in Bid to Contain Coronavirus Outbreak.

• Italian, French Politicians Infected as Cases Grow: Virus Update.

• Chinese Hotel Used to Observe Virus Contacts Collapses.  

• Egypt Says Cruise Ship Quarantined Over New Virus Cluster.  

• Italy’s Democratic Party Head Tests Positive for Coronavirus.

• Mexican Women Storm the Streets as Murder Toll Spikes.  

• Global Oil Producers Face Brutal Reckoning After Epic OPEC+ Fail.

• Saudis Plan Big Oil Output Hike, Beginning All-Out Price War.  

• Lebanon to Default on $1.2 Billion Payment, Seek Restructuring.

Wall Street Journal:

• Congressional Report Faults Boeing on MAX Design, FAA on Oversight.

• Nursing Home at Center of Washington Coronavirus Outbreak Target of Criticism.

• March Madness Will Go On, but in a Worst Case, Without Mad Fans.

• AT&T Cooperates With Justice Department in Google Probe.

CNBC:

• The flying taxi market is ready for takeoff changing travel forever.

• Amtrak suspends nonstop Acela service between DC and New York due to coronavirus.

• Coronavirus live updates: Dozens trapped after hotel used for quarantine collapses in China.

• Analysts say the coronavirus outbreak won’t hurt the stock that Stifel calls ‘The Terminator’.

• New York declares state of emergency over coronavirus outbreak.

MarketWatch.com: 

• Weekend reads: What corporate insiders are doing as the coronavirus spreads and the stock market tanks.

• These 9 companies are working on coronavirus treatments or vaccines — here’s where things stand.

Fox News:

• Two dead from coronavirus in Florida, first known fatalities on Eastern Seaboard.

• Pelosi’s ‘Christmas-tree ornaments’ overloaded virus bill: lawmaker.

Zero Hedge:     

• Italy Places Milan Region Under Quarantine As New York Declares State Of Emergency.

• "We Are In An Adverse Feedback Loop": How To Track The Coronavirus Hit To US Consumer Spending.

• AOC Encourages Illegals To Participate In 2020 Census.

• "It's An Awful Situation": Washington Moves To Take Over Nursing Home At Epicenter Of Outbreak.

• Putin Launches "War On US Shale" After Dumping MbS & Breaking Up OPEC+.

• Port Of Los Angeles Taking "Substantial Hit", Expects Volume To Plunge 15% From Coronavirus.

• "It's Like Scenes From A Mad Max Movie" - Americans Continue Epic Run On Costco.

• Goldman: A Corona Recession Will Send The S&P To 2,450 By Year End.

• Expect Up To 40% Of Tehran's Population To Be Infected In 2 Weeks: Iranian Health Official.

• Paging All "It's Just The Flu" Truthers.

• Will Brexit And Covid-19 End The EU?

• Surprise! China Is Using Covid-19 To Strengthen Its Mass Surveillance Of Citizens.

• "Bull Market Has Reversed" - NYC Multifamily Building Sales Plunge.

• "It's Utter Mayhem" - US Mortgage Rates Plunge To Record Low.

• Here's The Reason Behind Today's Unprecedented VIX Move.

• 2 Individuals At AIPAC Conference With Pence, Pompeo, McConnell & Others Test Positive For Covid-19.

• Trump Promotes Freedom Caucus Leader Mark Meadows To Chief Of Staff, Sends Mick Mulvaney To Northern Ireland.

• Yet Another Professor Indicted Over Alleged Secret Ties To China.

• Carnage: Credit, Crude, & The Yield Curve Crushed As Fed Admits "Credibility Eroding".

Business Insider:  

• 'We're gearing up for something extremely significant': Top hospitals across the US told us how they're preparing for the coronavirus outbreak.

• Photos show how people around the world are disinfecting schools, mosques, and streets to stop the coronavirus from spreading.

• The new coronavirus lives on surfaces for "hours to a day," one expert says. Here's how to disinfect them properly.

• Coronavirus is worrying electronics manufacturers, and everyday shoppers could end up seeing 'spot shortages' for certain gadgets if the situation worsens.

John Hopkins University:

• Coronavirus Global Cases. (map)

BNO News:

• Tracking Coronavirus: Map, data and timeline.