Bear Radar

Style Underperformer:

• Small-Cap Value -1.3%

Sector Underperformers:

• 1) Airlines -3.4% 2) Energy -2.3% 3) Banks -2.1%

Stocks Falling on Unusual Volume: 

• SPWR, BMCH, MGP, OLLI, FSLY, NARI, LRCX, AXSM, BLDR, PEN, PLT, BPYU, W, FSLR, LEVI, BE, AMSWA, UCTT, PLCE, CALM, MBUU, CNK, BIG, CELH, ACHO, VVI, RUTH, FHC, LL, PRTS, CWH, ODT, BIGC, OSTK, DK, CALX and CHEF
  

Stocks With Unusual Put Option Activity:

• 1) XLB 2) EAT 3) TSLA 4) USB 5) FSLR
  

Stocks With Most Negative News Mentions:

• 1) CACC 2) NPTN 3) KGJI 4) UAL  5) FSLY
  

Charts:

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

Bull Radar

Style Outperformer:

• Large-Cap Growth +.7%

Sector Outperformers:

• 1) Gold & Silver +2.1% 2) Biotech +1.9% 3) Computer Hardware +.9%

Stocks Rising on Unusual Volume:

• AIMT, AKCA, WKHS, RYTM, RXT, RXPI, ALXN, PASG, PSNL, EXAS and TRNE
  

Stocks With Unusual Call Option Activity:

• 1) RST 2) ALXN 3) GNW 4) TSCO 5) CALX

Stocks With Most Positive News Mentions:

• 1) AFIB 2) GME 3) ZM 4) CASA 5) IONS

Charts:

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

 

Mid-Day Market Internals

NYSE Composite Index:

• Volume Running -27.9% Below 100-Day Average
• 4 Sectors Rising, 7 Sectors Declining
• 32.9% of Issues Advancing, 64.8% Declining
• 59 New 52-Week Highs, 7 New Lows
• 49.9% of Issues Above 200-day Moving Average
• Average 14-Day RSI 51.2% 
• Bloomberg Global Risk-On/Risk-Off Index 534.0 -86.0 points
• Vix 24.9 +8.5%
• Total Put/Call .75 +7.1%
• TRIN/Arms 1.45 +137.7%

 

Monday Watch

Today's Headlines

Bloomberg:    

• China’s Mega Banks Post Worst Profit Slump on Bad Debt Wave.  
• Australia Says Victoria Jobless Surges as Lockdown Cuts Spending.    
• India’s Economy Faces Worst Quarterly Slump Ever After Lockdown.
• Saudi Aramco Discovers Two Oil, Gas Fields in North of Kingdom.
• TikTok Assets Can’t Be Sold Without China’s Approval.
• U.S., China Signal Progress on Trade Deal as Relations Fray. 
• U.S. Cases Near 6 Million; N.Z. Ends Lockdown: Virus Update.
• S&P 500 Futures Push Higher; Yen Pares Friday Gain. U.S. and Asian futures started the week stronger, suggesting the rally that lifted equities to fresh highs still has legs. The yen pared some of Friday’s gains as Japan looks for a new prime minister. Contracts pointed higher in Japan and Hong Kong, though slipped in Australia. The S&P 500 closed at an all-time high for a sixth consecutive trading session Friday, while the Nasdaq Composite also reached a record. Chinese manufacturing data will give the latest reading on how the world’s second-largest economy is emerging from the coronavirus shutdown. In Japan, the race to replace Prime Minister Shinzo Abe, who stepped down for health reasons, gets underway. The dollar steadied near a two-year low against major peers. Treasuries rose Friday. S&P 500 futures rose 0.2% as of 7:19 a.m. in Tokyo. S&P 500 Index rose 0.7% Friday. Nikkei 225 futures rose 0.2% as of Friday. Australia’s S&P/ASX 200 Index futures fell 0.7% as of Friday. Hong Kong’s Hang Seng Index futures rose 0.2% as of Friday.
• Fed Low Rate Spreads, India Slump, Two-Speed Australia: Eco Day.
• Oil Holds Near $43 as Laura’s Passing Brings Virus Back in Focus.
• Colleges With Covid Outbreaks Advised to Keep Students on Campus.  
• Jack Ma’s Ant Fuels Tech IPO Frenzy Not Seen Since Dotcom Bubble.
• Demand for Online Doctors Forges $39 Billion Sony-Backed Titan.
• Reflation Trades Face Reality Check With Fed’s New Goal in Doubt.
• U.S. Jobless Rate Set to Return to Single Digits.  
• American Air Cuts October Capacity 55% After Dropping 15 Cities.  
• Trump Unleashes Twitter Storm After Portland Protest Death.  
• Trump Raises $76 Million During Convention, Topping Democrats.

Wall Street Journal:

• Trump Surveys Damage From Laura as Cleanup Begins.
• Revamped Dow’s Gap With S&P 500 Is Set to Widen.
• As Trash Piles Up During Covid-19, Residents Raise a Stink
• Companies Rush to Shore Up Covid-19 Testing Ahead of Flu Season..
• Coronavirus Has Left Banks With Lots of Cash and Little to Do With It.
• Activision Does its Duty.
• California Is Coming for You.
• California’s Radical Indoctrination.
• The Portland Clashes.
• Fearing Hong Kong’s Fate, Taiwan Moves to Bolster Its Military Against China.

Fox News:

• ‘Within minutes’ Congress leaked classified info, forcing end to election intel, Ratcliffe tells Fox News.
• 1 dead in clashes between pro-Trump, BLM groups as violence rages.   
  
• This state OKs task force to consider compensation for slavery.
• Ratcliffe coordinating with Durham on investigation of FBI, declassification of documents”.

CNBC:

• S&P 500′s record rally faces near-term trouble, market bull Art Hogan warns.
• Berkshire Hathaway buys stakes in Japan’s five leading trading companies.
• FDA willing to fast track coronavirus vaccine before phase three trials end.
• Coronavirus cases climb in the Midwest as more states report growing outbreaks    
• Retailers are reporting record online sales during the pandemic. But it won’t last forever.
  

Zero Hedge:

• Trump Slams "Do Nothing Democrat Mayor Of Portland" After Wheeler Blames President For Violence.
• Dem Convention Made No Mention Of Russiagate Or Impeachment, Because Those Were Fake Things.
• US Passes 6 Million Confirmed Coronavirus Cases: Live Updates.  
• Pinterest Pays $89.5 Million To Abandon Upcoming Lease In San Francisco.
• Trump Goes After Failed Democrat-Run Cities As Violence Erupts In Chicago And NYC.
• Half-Dozen Democrat Mayors In Minnesota Endorse Trump, Say Biden 'Did Nothing' For Working Class.
• Devastating Consumer Financial Cliff Coming Right Up.
• What's Behind Last Week's Unprecedented Meltup In The VIX? Citadel Explains.
• Rapper 50 Cent: Cancel Culture Is "Unfair" And "Targets Straight Men".
• Suddenly Fear Of Social Unrest Is Everywhere.
• These People Want To Convince Everyone That Looting Is A-Okay.
• Cloward-Piven Strategy To Destroy America Resurgent Amid BLM/Antifa-Led Riots.
• 'The Saker' Asks: Will Hillary & The Dems Get The Civil War They Are Trying To Provoke?
• Kenosha Or Kosovo? Shocking Images Reveal Destruction After Race Riots Leave Buildings In Ruins.
• Sovereign Wealth Funds Shun US Stocks As Valuation Concerns Mount.
• 'I'm Not Sad That A Fu*king Fascist Died Tonight': Left-Wing Portland Protesters Celebrate Murder Of Trump Supporter.
• Greenwald: America's Social Fabric Is Fraying Severely... If Not Unravelling.
  
• $16 Billion Ohio Police & Fire Pension Fund Approves A 5% Allocation For Gold.
• New Jersey Hikes Gas Tax By 22.5%, Bringing Total Increase Since 2016 To 250%.
• Tesla 'Losing Ground' In Europe's Biggest EV Market As July Registrations Crash .
• China's 'Debt-Trap' Diplomacy With Third-World Nations.
• Weaponized Drone Swarms Should Be Declared As "WMD".

  MarketWatch.com: 

• Three things you need to know the Apple stock split that takes effect at Monday’s opening bell.  
• 5 things to know about Tesla ahead of its 5-for-1 stock split.

Business Insider:

• Michael Moore warned that Trump's support among his base is 'off the charts', and he is on course to win the presidential election.

The Epoch Times:

• Taiwanese Government Continues to Remove CCP Infiltration.
• CCP Controls Public Opinion by Fabricating Events and Discussions Online.
  

Digital Blackboard:

• Daily New Cases by Region.

Worldometer:

• New Cases/Deaths by state.

Rt Covid-19:

• How fast virus is growing by state.

KFF:

• State Data(Tests/Hospitalizations).

Night Trading

• Asian indices are -.25% to +.75% on average.
• Asia Ex-Japan Investment Grade CDS Index 62.0 -.75 basis point.
• China Sovereign CDS 35.25 -.5 basis point.
• Bloomberg Emerging Markets Currency Index 60.89 +.03%.
• Bloomberg Global Risk-On/Risk Off Index 640.0 +20.0 points.
• Volatility Index(VIX) futures 26.65 -1.11%. 
• Euro Stoxx 50 futures +.78%.
• S&P 500 futures +.47%.
• NASDAQ 100 futures +.68%.

Morning Preview Links

Earnings of Note

Company/Estimate

Before the Open:

• None of note
  

After the Close:

• (ZM)/.45
• (SCSC)/.21
  

Economic Releases
10:30 am EST

• The Dallas Fed Manufacturing Activity Index for Aug. is estimated to rise to 0.0 versus -3.0 in July.
  

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The China Manufacturing PMI and the German Inflation Data report could also impact trading today.

Market Hours
Normal:

• 9:30 am - 4:00 pm EST

BOTTOM LINE: Asian indices are mostly higher, boosted by technology and consumer shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing mixed.  The Portfolio is 50% 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 mixed as global recession fears, rising China tensions and profit-taking offset coronavirus vaccine/treatment optimism, falling Biden Presidency odds and global stimulus hopes. My intermediate-term trading indicators are giving bearish signals and the Portfolio is 50% net long heading into the week.

Today's Headlines

Bloomberg:      

• China’s Battered Bonds May See Further Pressure on Funding Pains.
• Scholz Says Germany Should Re-Implement Debt Limits in 2022.  
• Macron Shares Concerns Over Human Rights With Chinese Minister. 
• Charting the Global Economy: Rebound Signs Come With a Caveat.  
• A Major Hurricane Capped Oil Output and Prices Barely Budged.
• Job Cuts at MGM, Coca-Cola, Boeing Herald Economic Pain Ahead.
• Winners Taking Everything in Relentless Five-Week Nasdaq Surge.
• BlackRock Gets Approval to Set Up Mutual Fund Company in China.
• Heroin’s Hidden Ingredient Is a Chemical Made by U.S. Companies.  
• U.S. Cases Rise; Berlin Police Attacked in Protest: Virus Update.  
• Trump’s Convention Offered Peek at 2024 Republican Primary.  
• Where U.S. Small Businesses Are Feeling the Most Pandemic Pain.   
• Hedge Fund Strategist Warns Election Season May Sow Volatility.

Wall Street Journal:

• New Wave of Layoffs Makes Pandemic Job Losses Permanent.
• Robot Boats Leave Autonomous Cars in Their Wake.
• Financial Firms Fail to Own Up to Advisers’ Past Misdeeds.
• Cuomo Gets a Nursing Home Inspection.
• One Step Ahead of the Woke Mob.
• Today’s College Classroom Is a Therapy Session.
• Trump Bets on Law-and-Order Message to Sway Swing Voters.
• China Tightens AI Export Restrictions.
• The Future of Cleaning Oil Spills: Robots, Wood Chips and Sponges.

CNBC:

• China tightens tech export controls potentially jeopardizing TikTok deal, reports say.
• CDC director says there will likely be a limited supply of coronavirus vaccines at first.
• S&P 500′s stunning summer rally points to best August since 1986.
• IRS guidelines on Trump’s payroll tax holiday leaves employers on the hook.
• Abbott is testing rapid coronavirus test on asymptomatic people in hopes of expanding FDA approval.
• Apple is making it harder to track iPhone users, which could hurt Facebook: CNBC After Hours.
• DraftKings CEO sounds alarm on SPAC market: ‘Hopefully the market settles down a little bit there’.
• Hedge fund manager Steven Cohen in exclusive talks to buy New York Mets.

IG:

• Weekend Markets Trading Live.

Barron's:

• Had bullish commentary on (TOL),(TMHC), (MCD) and (SBUX).

MarketWatch.com:   

• White House chief of staff says Trump team has offered Pelosi $1.3 trillion for next coronavirus relief deal.
• Apple CEO Tim Cook sold shares ahead of stock split.
• Kenosha police union gives account of Jacob Blake shooting, says depictions are 'wholly inaccurate'.

Fox News:

• SEN. RAND PAUL: Protesters attacked me, were encouraged by Dems.  
• Trump slams 'thugs' who harassed supporters after RNC speech.
• This city could face 'explosive' coronavirus spread from cold weather, schools reopening.
  

Zero Hedge:    

• Schiff, Pelosi Livid After Intel Community Ditches 'Manipulated' Election Briefings For Written Updates.
• "She Hasn't Done Her Job": Looting, Riots, & Mayoral Ineptitude Prompt Mass Exodus Of Chicago Residents.  
• Amazon Orders 1,800 EV Delivery Vans From Mercedes, Commits To Go Carbon-Neutral By 2039.
• US Cases Stabilize As California Set To Become 1st State To Pass 700k COVID-19 Cases: Live Updates.
• Trump Gains In Post-Convention Poll As Biden Support Slips.
• 84% Of CFOs Say Stocks Are Overvalued.
• NPR Claims That Calling A Riot A "Riot" Is Racist.
• NYC Landlords Wage War Against Remote Working.
• "This Might Be The Weirdest Market I’ve Ever Seen" - Charting The Market's Descent Into Insanity.
• ESG Is The Folly Of "Woke Capitalism".
• Michael Moore & Bill Maher Beg Dems To Wake Up: "Enthusiasm For Trump OFF THE CHARTS! Are You Ready For Trump Victory?".
• UCLA Researcher Arrested, Charged With Destroying Evidence In China Espionage Probe.
• Sandia Labs Goes Nuclear On Employee Who Sparked Internal Revolt Over Critical Race Theory.
• Rittenhouse Lawyers Say Video Evidence Proves Kenosha Shootings Were 'Acts Of Self-Defense'.
• New Jersey Town Bills Teenage BLM Protest Organizer $2,500 For Police Overtime.
• CNN Has Turned Itself Into America's "Baghdad Bob".
• Hedge Funds Start Piling Into "The Big Short 3.0".
• German Court Overturns Protest Ban - Tomorrow's Massive Anti-Lockdown March To Go-Ahead.
• Americans Sense Something Is Wrong: Gun Sales Up 72%.
• Tennessee Teachers Are Worried You'll Overhear What They Teach Your Kids.
• Silent Majority: Over 10% Of Trump Voters Won't Admit Preferences To Pollsters.
• Apple Revokes Epic Games Developer Credentials As Anti-Trust Battle Heats Up.
• Chicago Teachers Union "Endorses" Guillotine Built By Protesters Outside Jeff Bezos' House.
• "They Would Have Killed Us" - Rand Paul Describes Attack By "Unhinged" Mob.
• The MTA Is Preparing For A "Doomsday Scenario" That Includes Higher Fares, 40% Cut In Service.
• After Buying DirecTV For $50 Billion In 2015, AT&T Now Seeks To Sell It For Under $20 Billion.
• A Quarter Of All Personal Income In The US Comes From The Government.
• Exposing The Waste In The Democrats' "HEROES Act".
• Powell Pumps S&P To Best August Since '86, Dollar & Bonds Puked.

Business Insider:

• Fake N95 face masks were being sold on this ISIS-linked website — and it shows how terror groups are using COVID-19 as a propaganda tool.
• AI experts doubt Amazon's new Halo wearable can accurately judge the emotion in your voice, and worry about the privacy risks.
• Stolen Fortnite accounts are being sold on the black market for hundreds of dollars.
  

The Epoch Times:

• Trump Administration Says Sinochem and Others Backed by Chinese Military.
• Chinese Regime Using Australian Scientists in Quest for Tech, Military Dominance.
  

Digital Blackboard:

• Daily New Cases by Region.

Worldometer:

• New Cases/Deaths by state.

Rt Covid-19:

• How fast virus is growing by state.

KFF:

• State Data(Tests/Hospitalizations).