Bear Radar

Style Underperformer:

• Mid-Cap Value -2.2%

Sector Underperformers:

• 1) Airlines -6.5% 2) Oil Service -6.5% 3) Gaming -4.0%

Stocks Falling on Unusual Volume: 

• BA, PHR, CVGW, TCMD, NEBU, CASY, GKOS, PLAY, PPBI, OXY, BXMT, RTRX, CUK, NCLH, UAL, ALK, CDAY, PS, JWN, AAL, SRC, SPG, SAVE, SYXI, RUTH, UBA, TEN, SRG and CHK

Stocks With Unusual Put Option Activity:

• 1) VNQ 2) XRT 3) HTZ 4) IWN 5) MFA

Stocks With Most Negative News Mentions:

• 1) OAS 2) CLR 3) MTDR 4) VRS  5) VNDA

Charts:

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

Bull Radar

Style Outperformer:

• Large-Cap Growth +.3%

Sector Outperformers:

• 1) Gold & Silver +.8% 2) Biotech +.7% 3) Pharma +.3%

Stocks Rising on Unusual Volume:

• FATE, NKLA, IRWD, SWBI, CLDR, HDS, AAXN, CHWY, FEYE, SONO, HAE and PRPL

Stocks With Unusual Call Option Activity:

• 1) TRXC 2) TWO 3) CLDR 4) TLRD 5) WLL

Stocks With Most Positive News Mentions:

• 1) MGI 2) LOVE 3) EBAY 4) COUP 5) EBAY

Charts:

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

Mid-Day Market Internals

NYSE Composite Index:

• Volume Running +30.7% Above 100-Day Average
• 1 Sector Rising, 10 Sectors Declining
• 16.8% of Issues Advancing, 81.4% Declining
• 22 New 52-Week Highs, 1 New Low
• 37.0% of Issues Above 200-day Moving Average
• Average 14-Day RSI 65.0%
• Vix 27.1 +5.0%
• Total Put/Call .61 +1.7%
• TRIN/Arms 1.90 +313.0%

Tuesday Watch

Night Trading 

• Asian equity indices are -.5% to +1.5% on average.

• Asia Ex-Japan Investment Grade CDS Index 81.25 -6.5 basis points.

• China Sovereign CDS 45.0 -3.25 points.

• Bloomberg Emerging Markets Currency Index 61.99 unch.
• FTSE 100 futures -.02%

• S&P 500 futures -.26%.

• NASDAQ 100 futures -.20%.

Morning Preview Links

Earnings of Note 
Company/Estimate

Before the Open:

• (BF/B)/.28
• (CONN)/.34
• (GCO)/-2.52
• (HDS)/.55
• (SIG)/-2.66
• (TIF)/-.09

After the Close:

• (AMC)/-1.44
• (CHWY)/-.17
• (FIVE)/-.29
• (GME)/-1.69
• (VRNT)/.68

Economic Releases 
6:00 am EST

• The NFIB Small Business Optimism for May is estimated to rise to 92.5 versus 90.9 in April.
  

10:00 am EST

• The JOLTS Job Openings for April is estimated to fall to 5750 versus 6191 for March.
• Wholesale Trade Sales MoM for April is estimated to fall -2.0% versus -5.2% in March.
  

Upcoming Splits

• None of note

Other Potential Market Movers

• The Eurozone GDP report, China Inflation Data report, OPEC Meeting, US weekly retail sales reports, Wells Fargo Energy Conference, Deutsche Bank Consumer Conference, Goldman Virtual Healthcare Conference, Morgan Stanley Virtual Financials Conference, (LEA) investor day, (SYNA) investor day and the William Blair Growth Stock Conference could also impact trading today.

Market Hours

Normal:

• 9:30 am - 4:00 pm EST
  

BOTTOM LINE: Asian indices are mostly higher, boosted by industrial and commodity shares in the region. I expect US stocks to open mixed and to weaken into the afternoon, finishing modestly lower. The Portfolio is 50% net long heading into the day.

Stocks Higher into Final Hour on Global Stimulus Hopes, Economy Re-Opening Optimism, Short-Covering, Energy/Airline Sector Strength

 Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Heavy

• Market Leading Stocks: Outperforming

Equity Investor Angst:

• Volatility(VIX) 25.2 +2.6%

• Euro/Yen Carry Return Index 127.0 -1.0%

• Emerging Markets Currency Volatility(VXY) 9.47 -.11%

• S&P 500 Implied Correlation 57.6 -6.1%

• ISE Sentiment Index 126.0 -19.0 points

• Total Put/Call .60 -7.7%

• NYSE Arms .45 -22.4%

Credit Investor Angst:

• North American Investment Grade CDS Index 66.54 +1.3%
  

• US Energy High-Yield OAS 876.26 -1.31%

• European Financial Sector CDS Index 69.57 +3.55%

• Italian/German 10Y Yld Spread 172.25 +3.25 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 81.75 -6.3%
  

• Emerging Market CDS Index 225.91 +.43%
  

• iBoxx Offshore RMB China Corporate High Yield Index 169.19 +.04%

• 2-Year Swap Spread 7.75 unch.

• TED Spread 16.5 -.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -14.0 unch.
• MBS  5/10 Treasury Spread  108.0 -1.0 basis point
• IHS Markit CMBX BBB- 6 72.25 +3.0 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 61.90 +.16%
• 3-Month T-Bill Yield .16% +1.0 basis point

• Yield Curve 65.0 +2.25 basis points

• China Iron Ore Spot 101.60 USD/Metric Tonne +.54%

• Citi US Economic Surprise Index 69.70 +3.4 points

• Citi Eurozone Economic Surprise Index -214.60 +.6 point

• Citi Emerging Markets Economic Surprise Index 41.7 +.3 point

• 10-Year TIPS Spread 1.27 +1.0 basis point
• 92.1% chance of no change at July 29th meeting, 92.1% chance of no change at Sept. 16th meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -23 open in Japan 
• China A50 Futures: Indicating -97 open in China

• DAX Futures: Indicating +35 open in Germany

Portfolio:

• Higher: On gains in my biotech/tech/medical/industrial/consumer staple sector longs 

• Disclosed Trades: None

• Market Exposure: 75% Net Long

Bear Radar

Style Underperformer:

• Large-Cap Growth unch.

Sector Underperformers:

• 1) Road & Rail -1.5% 2) Video Gaming -1.4% 3) Semis -1.1%

Stocks Falling on Unusual Volume: 

• AAWW, WORK, BIG, PLMR, SPT, LMNX, ARCT, FIVE, CHGG, PENN, ARNC, PTON, ZUO, VECO, SSP, BAND, SGH, ESTC, ACEL, GRUB, GKOS, FOLD, ACMR and EBS

Stocks With Unusual Put Option Activity:

• 1) RSP 2) BLMN 3) IVR 4) WLL 5) APO

Stocks With Most Negative News Mentions:

• 1) ATI 2) PENN 3) EHTH 4) EBS  5) SCHW

Charts:

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