Stocks Lower into Afternoon on Virus Shutdown Fears, US Economic Data, Technical Selling, Energy/Financial Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Almost Every Sector Declining
  

• Volume: Above Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 21.2 +1.9%
• Bloomberg Global Risk On/Risk Off Index 1,284.0 -50.0 points

• Euro/Yen Carry Return Index 129.05 +.06%

• Emerging Markets Currency Volatility(VXY) 10.1 +.5%

• S&P 500 Implied Correlation 47.8 -4.2%

• ISE Sentiment Index 121.0 -104.0 points
  

• Total Put/Call .72 -2.7%

• NYSE Arms 1.18 -28.9%

Credit Investor Angst:

• North American Investment Grade CDS Index 50.26 -1.89%
  

• US Energy High-Yield OAS 677.92 -.07%

• European Financial Sector CDS Index 60.65 +1.1%

• Italian/German 10Y Yld Spread 120.0 +2.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 60.16 +1.48%
  

• Emerging Market CDS Index 164.98 +.06%
  

• iBoxx Offshore RMB China Corporate High Yield Index 181.01 +.21%

• 2-Year Swap Spread 8.25 -1.75 basis points

• TED Spread 15.25 unch.
  

• 3-Month EUR/USD Cross-Currency Basis Swap -21.0 -2.5 basis points
  
• MBS  5/10 Treasury Spread  72.75 -3.75 basis points
  
• IHS Markit CMBX BBB- 6 71.25 unch.

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 61.21 -.11%
• 3-Month T-Bill Yield .08% unch.

• Yield Curve 68.75 -1.5 basis points
  

• China Iron Ore Spot 124.75 USD/Metric Tonne -3.2%

• Citi US Economic Surprise Index 77.80 -2.2 points

• Citi Eurozone Economic Surprise Index 123.7 +6.0 points
  

• Citi Emerging Markets Economic Surprise Index 65.1 +1.6 points

• 10-Year TIPS Spread 1.78 +2.0 basis points
• 100.0% chance of no change at Jan. 27th meeting, 100.0% chance of no change at March 17th meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +7 open in Japan 
• China A50 Futures: Indicating +5 open in China

• DAX Futures: Indicating +9 open in Germany

Portfolio:

• Higher: On gains in my tech/biotech/medical sector longs, index hedges and emerging market shorts
  

• Disclosed Trades: None
  

• Market Exposure: 50% Net Long

Bear Radar

Style Underperformer:

• Small-Cap Value -2.1%

Sector Underperformers:

• 1) Energy -4.2% 2) Oil Service -3.8% 3) Homebuilding -2.6%

Stocks Falling on Unusual Volume: 

• MP, CRM, SAGE, LMND, CIIC, LGVW, SBE, HYLN, APPN, NKLA, MP, BDTX, GNRC, GPS, FSR, AAL, GRBK, CCL, MAC, ANF, CIIC, SBE, EVER and HYLN
  

Stocks With Unusual Put Option Activity:

• 1) GME 2) GPN 3) SCHW 4) GES 5) XBI
  

Stocks With Most Negative News Mentions:

• 1) PT 2) PTCT 3) CDEV 4) PPL 5) LYV
  

Charts:

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

Bull Radar

Style Outperformer:

• Mid-Cap Growth +.1%

Sector Outperformers:

• 1) Digital Health +.5% 2) Semis +.3% 3) Biotech +.2%

Stocks Rising on Unusual Volume:

• VERI, GTHX, MRNA, PI, GMHI, NVAX, ARCT, GME, APPS, EPZM, KPTI, TBIO, SI, BCOV, SONO, WORK and CDK
  

Stocks With Unusual Call Option Activity:

• 1) BOX 2) IGC 3) NUAN 4) AVYA 5) ECPG

Stocks With Most Positive News Mentions:

• 1) APDN 2) QCOM 3) CRWD 4) UAL 5) PLUG
  

Charts:

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

Mid-Day Market Internals

NYSE Composite Index:

• Volume Running +25.6% Above 100-Day Average
• 0 Sectors Rising, 11 Sectors Declining
• 24.6% of Issues Advancing, 73.0% Declining
• 145 New 52-Week Highs, 3 New Lows
• 84.4% of Issues Above 200-day Moving Average
• Average 14-Day RSI 57.1% 
• Bloomberg Global Risk-On/Risk-Off Index 1,222.0 -112.0 points
• Vix 22.1 +5.8%
• Total Put/Call .70 -5.4%
• TRIN/Arms 1.15 -30.7%

Monday Watch

Today's Headlines

Bloomberg:     

• Bolsonaro Delays Congratulating Biden on Fraud Allegations.  
• U.K. Unveils 5G Plan Banning Huawei Installations From September.  
• Japan’s Factory Output Keeps Gaining Even as Virus Resurges.
• Australia Central Bank Seen Holding After Success of QE Drive.  
• Stocks Swing as Record Month Nears End; Oil Slips: Markets Wrap.  
• Oil Retreats on Signs of OPEC+ Discord Ahead of Key Meeting.
• OPEC Faces Seismic Demand Split as Cartel Plots Next Move.  
• Covid Task Force Promises Rapid December Vaccine Rollout.
• Airbnb and DoorDash Set Sights on Higher IPO Valuations: DJ.  
• Eerie Calm in Treasuries Is at the Mercy of Jobs and Virus Data.

Wall Street Journal:

• Investors Pile Into Risky ETFs During Wild Market Rally.
• GM’s Closed Lordstown Factory Spawns a Wave of Industrial Migrants.
• Tesla’s S&P Debut Is Set to Put $100 Billion in Motion.
• Beware the Dow 30K Euphoria.
• Iran’s Nuclear Efforts Pose Growing Threat to Its Foes.
• Grocery-Store Pharmacies Get Ready to Provide Covid Vaccines.
• State, Local Governments Slashed Spending. Next Year Could Be Worse.
• The NFL’s Thanksgiving Weekend Has Become a Covid Crisis.
• How to Stop the Paris Climate Accord.
• S&P Global in Advanced Talks to Buy IHS Markit.

Fox News:

• Trump accuses FBI, DOJ of 'helping rig the vote'' in Fox News exclusive.
• President slams judges' election decisions: 'What kind of a court system is this?'.
• Kamala Harris slammed for sucking up to small businesses after bailing out agitators.

CNBC:

• OPEC+ considers delay to its output hike, but faces a resurgent U.S. shale industry.
• Fauci says Christmas and New Year’s restrictions will be necessary due to holiday coronavirus wave.
• Zoom investors are looking to a post-pandemic 2021 even with current growth at over 300%.
  

Zero Hedge: 

• Judge Blocks, Then Unblocks Georgia From Wiping Or Resetting Election Machines.
• Newt Gingrich: 2020 Election May Be Biggest Presidential Theft Since 1824.
• FBI Asks Pro-Trump Statistician To Share Findings Into Illegal Ballots.  
• NYC Pub Declares Itself "Autonomous Zone" After Government Tries To Shut It Down.
• Over Half Young American Adults Now Live With Their Parents.
• Michael Flynn Says Coup Against Trump Still In Progress In First Public Remarks Since Pardon.
• NYC To Reopen Elementary Schools, Phase Out Hybrid Learning.
• Chinese Government Stepping Up Propaganda To Change COVID Origin Story.
• The 'Smartest Man In The Room' Just Joined Sidney Powell's Team   Market Risk Elevated Heading Into Distribution Season.
• Iran's 'Retaliation' Begins: Parliament Votes To Raise Uranium Enrichment To 20%.
• 1 In 13 Of All US Nursing Home Residents Have Died Of COVID-19.
• Delta And Alitalia Offer "Quarantine-Free" Flights In First Push To Jump Start Travel Industry.
• CCP Imposes Tough New 'Social Credit Score' Rules.
• Visualizing 50 Years Of Gaming History, By Revenue Stream (1970-2020).
• 2021 Would Be A Great Time To Audit The Fed.
• Cali Mansion Once Listed For $100 Million Sells For "Only" $48.4 Million.

NewsMax:

• Trump Suggests Special Prosecutor For 'Rigged' Election.
• Trump: Would Like to File 'Nice Big Beautiful Lawsuit' to Challenge Election.
• Sen. Paul Calls Out 'Anomalies in Vote Counts,' Big Tech.
  

 TheGatewayPundit.com:

• Five Videos – Five States Where Votes Were Switched Live on TV Away from President Trump to Biden –Updated.
• “I’m Going to Use 125% of My Energy to Do It” – President Trump Vows to Reveal Massive Voter Fraud and Overturn Results in 2020 Election (VIDEO).

The Epoch Times:

• More Pain Ahead for Chinese Bond Market. 
• Charity Worker Describes Worsening Poverty in China as Beijing Claims It Has Eliminated Poverty Nationwide.

@kylenabecker:

• The *software update* Georgia is doing with Dominion voting machines is tantamount to destroying evidence at the heart of ongoing legal disputes. The American people are being deprived of transparency necessary for a free & fair election. Unacceptable. 
• "I conclude with high confidence that the election 2020 data were altered in all battleground states"... US Intelligence Expert with PhD. in computer systems management & DIA/CIA/FBI/NSA/DHS advanced training *SHREDS* claims 2020 election was free & fair.
  

ProtectTheVote.com: 

• Serious allegations of misconduct in the 2020 elections have resulted in unprecedented legal action to ensure our elections are -- and remain -- free and fair. Find out where we’re exposing fraud and how you can help.

HereIsTheEvidence.com:

• This is for aggregating publicly available items of voter fraud evidence in the US election that would be admissible in court.

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 +.5% on average.
• Asia Ex-Japan Investment Grade CDS Index 59.75 +.5 basis point.
• China Sovereign CDS 30.25 unch.
• Bloomberg Emerging Markets Currency Index 61.28 unch.
• Bloomberg Global Risk-On/Risk Off Index 1,379.0 +44.0 points.
• Volatility Index(VIX) futures 22.95 +.55%. 
• Euro Stoxx 50 futures -.48%.
• S&P 500 futures -.22%.
• NASDAQ 100 futures +.13%.

Morning Preview Links

Earnings of Note

Company/Estimate

Before the Open:

• (ATHM)/1.00
  

After the Close:

• (ZM)/.76
  

Economic Releases

9:45 am EST

• The MNI Chicago PMI for Nov. is estimated to fall to 59.1 versus 61.1 in Oct.
  

10:00 am EST

• The Pending Home Sales MoM report for Oct. is estimated to rise +1.5% versus a -2.2% decline in Sept.

10:30 am EST

• The Dallas Fed Manufacturing Activity report for Nov. is estimated to fall to 15.8 versus 19.8 in Oct.

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The Italian inflation reports, CSFB Tech/Media/Telecom Conference, Citi Basic Materials Conference, Goldman Sachs Industrials Conference and the (DPZ) investor day 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 mixed and to weaken into the afternoon, finishing modestly lower.  The Portfolio is 50% net long heading into the week.

Today's Headlines

Bloomberg:          

• Iran Pledges Payback at ‘Right’ Time Over Scientist’s Killing.
• Asia’s 20 Richest Families Control $463 Billion.
• BOE’s Haldane Says QE Size Challenges Central Bank Independence.    
• San Francisco Locks Down; NYC Cases Tick Up Again: Virus Update.
• Covid Drugs From Lilly, Regeneron Raise Access, Timing Concerns.
• The Pandemic Has Broken Shale and Left Oil Markets in OPEC Hands.  
• Electric Carmakers Are in a Stock Market Bubble.

Wall Street Journal:

• Stocks Say Covid Recovery Is Nigh. Bonds Tell a Different Story.
• House to Vote on Booting Chinese Stocks From U.S. Over Audit Rules.
• Black Friday Shopping in the Covid-19 Era.
• Tesla’s Delayed Semi Truck Tests Elon Musk’s Ability to Scale Up.
• Pausing Loan Payments During Covid Is Producing Uneven Results.
• ‘Their Goal Is to Make You Feel Helpless’: In Xi’s China, Little Room for Dissent.
• Public Transit Agencies Slash Services, Staff as Ridership Dips.

CNBC: 

• Black Friday 2020 online shopping surges 22% to record $9 billion, Adobe says.
• Black Friday shopping in stores craters 52% during pandemic as e-commerce sales surge.
• Congress stalled on stimulus talks as millions of Americans face ‘benefits cliff’.
• Salesforce buying Slack would mark the first big software deal in a boom year for the cloud.

IG:

• Weekend Markets Trading Live.

Barron's:

• Had bullish commentary on (F), (AAPL), (AZEK) and (RGS).

MarketWatch.com:    

• These seven stocks have doubled in 2020 — and analysts say they have further to run.
  
• Why the stock market’s COVID vaccine-inspired rally could soon face a big test.
  
• Dates to watch as Trump continues legal fight to overturn the presidential election result.

Fox News:

• GOP’s House wins show more voters link local problems to failed Dem policies, lawmaker says.
• President Trump: ‘We have found many illegal votes.
• Fmr. House Republican ousts Dem incumbent, conservatives continue to shatter expectations in Ca.

Newsmax:  

• Giuliani: Team Trump Looking Past Election Lawsuits to State Houses.
• Jenna Ellis to Newsmax TV: Trump Team Heads to Arizona Legislature Next.
• Pa. State Senator Moving to Have Legislature Appoint Electors.
• Judge: Pa. Mail Ballot Procedures Likely Illegal.

One America News Network:

• Fmr Trump campaign official Carter Page files $75M lawsuit against FBI and DOJ.
  

Zero Hedge:

• Pennsylvania Republicans To Introduce Resolution Disputing Election Results.
• Pennsylvania Judge Backs Trump Claims Over Mail-In Ballots, Says 'Unlikely Constitutional'.
• Watch: CNN Admits There Are "Legal & Constitutional" Ways For Trump To Stay In Office.
• "I Want To Build A World Where Someone Like Me Is Impossible" - Meet The Trust Fund Brats Trying To Destroy Capitalism.
• "Washington Is Exhausted": Swamp Gears Up For Post-Trump Power Orgy.
• A Key Time For Gold.
• US COVID-19 Cases Hit New Record; Germany 12th Country To Top 1 Million: Live Updates.
• "This Is No Free Country": Anti-Lockdown Protests Rage In London, Dozens Arrested.
• "F**k Thanksgiving!": Antifa Topples Statues Of George Washington, Veterans To Fight "Colonization".
• U.S. And German Yields Will Bear Brunt Of Lockdowns.
• How The Fed Created The Ultimate Paradox: Stocks At All-Time Highs With No Liquidity And Soaring Realized Vol.
• Illinois To Borrow Another $2 BIllion From The Fed, Only State To Do So.
• COVID Antibody Drugs From Regeneron, Eli Lilly Raise Concerns About Supply Shortages.
• UN Dubs Self 'Trusted' Pandemic News Source, Teams Up With World Economic Forum To Encourage 'New Social Norms'.
• "Life Won't Ever Be Completely Normal Again" - Renowned Infection/Immunity Expert Warns COVID Is Not Going Away.
• Has Europe Broken The Second Wave?
• "A Horrifying Future" - WEF's Vision For A Post-COVID World.
• 10 Hypocritical Dems Who Prattle On About Masks & Lockdowns But Personally Act Like They're All BS.
  

@kylenabecker:

• Dominion. "One of the first things is to exploit open ports... so, memory cards. If anyone is familiar with the Hursti hack... they took a memory card that could manipulate the actual tabulation process of an election... and then SELF-DELETE." They make it sound SO EASY. (video)
• WOW. An affidavit by Dr. Keshavarz-Nia described by the NYT as "the smartest man in the room", a 35-year cyber-security expert for DIA, CIA, NSA, & DOD, concludes that 2020 election data was altered resulting in "hundreds of thousands" of Trump votes to be "transferred" to Biden.
  

The Epoch Times:

• 53 Nations Committed to Excluding Untrusted 5G Vendors From Their Networks.
• Australian Politician Calls out China’s ‘Concerning Pattern of Behaviour’ Following 200 Percent Tariffs on Wine.

ProtectTheVote.com: 

• Serious allegations of misconduct in the 2020 elections have resulted in unprecedented legal action to ensure our elections are -- and remain -- free and fair. Find out where we’re exposing fraud and how you can help.

HereIsTheEvidence.com:

• This is for aggregating publicly available items of voter fraud evidence in the US election that would be admissible in court.
  

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).