Stocks Lower into Final Hour on Economic Shutdown Fears, Diminished Stimulus Hopes, Oil Decline, Energy/Gaming Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Around Average

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 21.7 +4.1%
• Bloomberg Global Risk On/Risk Off Index 1,452.0 -132.0 points

• Euro/Yen Carry Return Index 130.58 -.14%

• Emerging Markets Currency Volatility(VXY) 10.5 +1.5%

• S&P 500 Implied Correlation 48.4 +1.4%

• ISE Sentiment Index 114.0 -5.0 points
  

• Total Put/Call .60 -10.5%

• NYSE Arms 1.02 +25.9%

Credit Investor Angst:

• North American Investment Grade CDS Index 51.52 +3.4%
  

• US Energy High-Yield OAS 608.47 -.31%

• European Financial Sector CDS Index 58.68 +7.6%

• Italian/German 10Y Yld Spread 119.0 +2.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 57.34 +.4%
  

• Emerging Market CDS Index 162.62 +2.09%
  

• iBoxx Offshore RMB China Corporate High Yield Index 182.08 +.02%

• 2-Year Swap Spread 8.5 +.25 basis point

• TED Spread 15.25 +.25 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -22.75 -2.75 basis points
  
• MBS  5/10 Treasury Spread  72.5 +2.0 basis points
  
• IHS Markit CMBX BBB- 6 71.75 +.75 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 62.21 +.07%
• 3-Month T-Bill Yield .07% -1.0 basis point
  

• Yield Curve 80.5 +4.75 basis points
  

• China Iron Ore Spot 145.20 USD/Metric Tonne +.78%

• Citi US Economic Surprise Index 70.10 -4.2 points

• Citi Eurozone Economic Surprise Index 139.1 +2.4 points
  

• Citi Emerging Markets Economic Surprise Index 61.90 +1.6 points

• 10-Year TIPS Spread 1.89 -1.0 basis point
• 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 -137 open in Japan 
• China A50 Futures: Indicating +11 open in China

• DAX Futures: Indicating -17 open in Germany

Portfolio:

• Slightly Lower: On losses in my industrial/medical/consumer staple sector longs
  

• Disclosed Trades: None
  

• Market Exposure: 50% Net Long

Bear Radar

Style Underperformer:

• Large-Cap Value -.7%

Sector Underperformers:

• 1) Gaming -2.3% 2) Energy -1.8% 3) Insurance -1.6%

Stocks Falling on Unusual Volume: 

• SPLK, VVI, ALK, MOD, CTB, BIG, BBY, STRO, CRNC, NCR, AMBA, MUR, CLDR, TPC, AMBA, DOCU, INTC, EPZM, EPR, SRPT, CBRL, GBT, TLS, RMG, RLAY, STPK, VITL, LEGN, PRPL, ZI, PTCT, HRMY, RC, CRC, RIDE, ALLO and SUMO
  

Stocks With Unusual Put Option Activity:

• 1) KODK 2) ARKG 3) TOL 4) XBI 5) COUP
  

Stocks With Most Negative News Mentions:

• 1) LBRT 2) SPLK 3) CVX 4) CREE 5) IBKR
  

Charts:

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

Bull Radar

Style Outperformer:

• Small-Cap Growth +.5%

Sector Outperformers:

• 1) Gold & Silver +3.6% 2) Homebuilding +1.4% 3) Al Energy +1.0%

Stocks Rising on Unusual Volume:

• KODK, FATE, CNST, NKTX, HCAC, LAZR, VLDR, CIIC, VERI, TRNE, CVM, MP, PLTR, NK, BFT, EDIT, ASAN, IGMS, NTLA, SPCE, RIOT, IPV, SRAC, LOAK, ARCT, RIOT, DMYT, OAC, AAL, VRM, SI and TCRR
  

Stocks With Unusual Call Option Activity:

• 1) ARKG 2) ADS 3) XME 4) SIRI 5) EDIT

Stocks With Most Positive News Mentions:

• 1) FATE 2) ONCT 3) PERI 4) BCRX 5) PLTR
  

Charts:

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

Mid-Day Market Internals

NYSE Composite Index:

• Volume Running +13.6% Above 100-Day Average
• 3 Sectors Rising, 8 Sectors Declining
• 44.4% of Issues Advancing, 53.2% Declining
• 249 New 52-Week Highs, 2 New Lows
• 85.9% of Issues Above 200-day Moving Average
• Average 14-Day RSI 58.3% 
• Bloomberg Global Risk-On/Risk-Off Index 1,432.0 -152.0 points
• Vix 21.6 -3.8%
• Total Put/Call .56 -16.4%
• TRIN/Arms .93 +14.8%

Monday Watch

Today's Headlines

Bloomberg:          

• The Emerging-Market Rally Is Starting to Stir Longevity Doubts.    
• BOJ Becomes Biggest Japan Stock Owner with $434 Billion Hoard.  
• Brexit Talks Resume as Officials Seek to Hammer Out Solution.
• Australia Sounds Alarm on Trade as China Row Slams Farm Exports.   
• There’s a Plan to Bury Asia’s Carbon Emissions Under The Sea.  
• Vaccines Set to Roll Out; Korea Tightens Measures: Virus Update.  
• Stocks Push Higher in Asia; Australian Bonds Slide: Markets Wrap.
• Oil Holds Advance on OPEC+ Deal and Hopes for U.S. Stimulus.  
• Chick-fil-A Sues U.S. Chicken Producers for Poultry Price-Fixing.
• Year’s Final Stretch to Be a Lively One: U.S. Credit Week Ahead.  
• HHS Chief Sees Vaccine for All Americans by Second Quarter.  
• Mastercard to Review Pornhub Ties After Column Spurs Outrage.
• Goldman Plots Florida Base for Asset Management in a Blow to New York.  
• Sequoia Capital Warned of a ‘Black Swan.’ Instead, 2020 Is One of Its Best Years Ever.  
• Water Futures to Start Trading Amid Growing Fears of Scarcity.
• Barr Considers Leaving DOJ Before Trump’s Term Ends: NYT.  
• Paysafe Is Near a $9 Billion Deal to Go Public.  
• JPMorgan Warns of Crowded Trades Amid Markets’ ‘Clear Consensus’.

Wall Street Journal:

• The Death of Zappos’s Tony Hsieh: A Spiral of Alcohol, Drugs and Extreme Behavior.
• Soaring Metals Prices Signal Bets on Global Recovery.
• Colleges Cut Tenure.
• Inside the Retreat of Jamie Dinan’s York Hedge Fund.

Fox News:

• Trump legal team celebrates after Michigan judge allows probe of Dominion voting machines.
• Pollster tells Mark Levin why Biden's win is 'statistically implausible'.
• Rudy Giuliani admitted to hospital for COVID symptoms.

CNBC:

• Southern California and San Joaquin Valley trigger stay-at-home order as ICU capacity drops.
• Winter Covid surge ‘worst event that this country will face,’ White House health advisor Birx says.
• Biden’s plan to forgive student debt could have limited economic benefits, and carry risks.
  

Zero Hedge: 

• Alito Moves Up Deadline For Supreme Court Briefing In Pennsylvania Case, Bringing Within 'Safe Harbor' Window To Intervene.
• Saudis Raise Crude Prices To Asia For First Time In 4 Months After OPEC+ Deal.
• Study Concludes Cuban Diplomats Suffered From Effects Of 'Microwave Radiation'.
• As Dems Push Loan Forgiveness, Data Show Blue States Have Highest Average Student Debt.
• Second Major California Sheriff Openly Rebels Against Newsom Lockdown.
• DHS Investigated For Spying On Citizens Using Cell Data From Mobile Advertising.
• Morgan Stanley: "The Biggest Debate About 2021 Isn't Where The Market Is Going. It's How It Gets There".
• 82% Of Americans Say They Couldn't Afford $500 Emergency Thanks To COVID-19.
• Hedge Fund CIO: Wall Street Faces Profound Unintended Consequences From The Lack Of Diversification.
• Rudy Giuliani Tests Positive For COVID-19.
• Condo Interest In New York Suburbs Erupts As Exodus Accelerates.
• "Big Win For Honest Elections" - Judge Allows Forensic Audit Of Dominion Voting Machines In Michigan.
• Lin Wood Plans SCOTUS Petition After Court Rejects Georgia Appeal.
• 'No Vaccine, No Work' - Employers Discuss Making COVID Immunity Mandatory For Workers.
• Ex-Pfizer Exec Demands EU Halt COVID-19 Vaccine Studies Over 'Indefinite Infertility' And Other Health Concerns.
• Signs, Signs, Everywhere There's Signs. But Investors Disregard...
• JPMorgan Warns Crowded Trades And Euphoric Consensus Are The Biggest Threats For Markets.
• Why Central Banks Will Double-Down On 'Lending Schemes'.
• Rich People & Journalists Made Exempt From Having To Enter COVID Quarantine In UK.
• US Election "Success"... And Hey Presto "Russian Interference" Disappears.
• Japan Set To Abolish Gas Powered Cars By Mid 2030s.
• This New Technology Will Dangerously Expand Government Spying On Citizens.
• Goldman Sees More Chinese Bond Defaults.

MarketWatch.com:  

• Opinion: It’s time for stock market investors to get in caution mode, and here’s how to prepare for it.
  

NewsMax:  

• Supreme Court Pushes Up Deadline in Pennsylvania Mail-In Ballot Dispute.
• Trump: 'They're Going to Try to Rig This Election, Too'.
• Trump: 'Jon Ossoff Is a Radical Left Wing Zealot'.
• Sen. Loeffler Presses Rev. Warnock on Anti-Police, Anti-Military Remarks.

TheGatewayPundit.com:

• The Same Organized Fraud That Took Place in Michigan Took Place In Georgia on Election Night – Republicans Were Removed from the Counting Area and then Massive Spike in Biden Only Votes is Recorded.
• MUST SEE: The Unknown Story of the Courageous Truck Driver in Pennsylvania Who Risked His Livelihood and Much More to Testify This Past Week and Save His Country (VIDEO).
• Protest Erupts In Front Of Radical MI Sec of State Jocelyn Benson’s Home After Lawmakers Discover All MI County Clerks Were Ordered to Delete All Election Related Data From Computers [VIDEO].
• Agents Raid Home in Maricopa County in Voter-Data Theft Investigation — Confiscate 8 Hard Drives, 3 Computers and a Bag of USB sticks.

The Epoch Times:

• Report Finds Microwave Energy Likely Made US Diplomats Ill.

@kylenabecker:

• GEORGIA. WARE COUNTY. Dominion voting machines have been *SEIZED* due to *impossible* vote tabulations: 87% for Trump and 113% for Biden. Big news.

The Atlantic:

• The End of the Filibuster—No, Really. Many activists will not tolerate a Democratic-controlled Senate that allows Republicans to block legislation next year.

Politico:

• AOC Lays Out Progressive Wish List for Biden.

Glenn Beck:

• Elizabeth Warren’s ‘progressive wish list’ will destroy America. (video)

Daily Caller:

• Trump Urges Supporters Not To Boycott Georgia Senate Elections. President Donald Trump urged his supporters not to boycott the upcoming runoff Senate elections in Georgia on Friday, saying a boycott would be “playing right into the hands” of Democrats.

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 57.0 -.5 basis point.
• China Sovereign CDS 28.75 -.5 basis point.
• Bloomberg Emerging Markets Currency Index 61.28 .
• Bloomberg Global Risk-On/Risk Off Index 1,604.0 +20.0 points.
• Volatility Index(VIX) futures 24.20 -.10%. 
• Euro Stoxx 50 futures -.03%.
• S&P 500 futures -.03%.
• NASDAQ 100 futures +.15%.

Morning Preview Links

Earnings of Note

Company/Estimate

Before the Open:

• (JKS)/.85

After the Close:

• (CASY)/2.82
• (COUP)/.03
• (HQY)/.36
• (SFIX)/-.17
• (TOL)/1.22
  

Economic Releases

3:00 pm EST

• Consumer Credit for Oct. is estimated to rise to $17.5B versus $16.214B in Sept.

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The German Industrial Production report, Raymond James Tech Conference and the UBS Media/Telecom/Communications Tech 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 technology 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 week.

Today's Headlines

Bloomberg:            

• China Regulator Fines Bank of China for Risk-Management Flaws.    
• Argentina to Hit the Rich With Wealth Tax as Covid-19 Costs Rise.
• Even Before Covid 2,600 People a Week Were Leaving New York City.  
• Bracing for a Nor’easter, New England Will Get Snow Dump.   
• U.S. Vaccines May Start Friday Amid Covid’s Worst: Virus Update.
• OnlyFans Is a Billion-Dollar Media Giant Hiding in Plain Sight.  
• Mystery Surrounds $7 Billion Outflow From Vanguard S&P 500 Fund.  
• Stock Supply Glut Looming Over Market as Companies Suck In Cash.
• Christmas Tree Sellers Run Into Surprise Covid Costs.  
• These Five Charts Throw Cold Water on Chances of Santa Rally.

Wall Street Journal:

• Barnes & Noble’s New Boss Tries to Save the Chain—and Traditional Bookselling.
• U.S. Covid-19 Deaths Could Double Despite Vaccines.
• Gene Editing Shows Promise in Sickle-Cell Disease.
• Pennsylvania Vetoes Help for Business.
• How Some Black Startup Founders Are Thriving in a Pandemic Year.

CNBC: 

• Chinese dissident targets Apple, Nike, others after report says they tried to weaken forced labor bill.
• Here are 3 under-the-radar market story lines that could surprise investors in 2021.
• Federal judge reinstates DACA, orders Homeland Security to quickly accept new applicants.
• The pet business is booming as Americans spend more on their animals while they work from home.

IG:

• Weekend Markets Trading Live.

Barron's:

• Had bullish commentary on (ABNB) and (BLK).
• Had bearish commentary on (DASH) and (CRM).

MarketWatch.com:        

• These 30 companies have increased sales and boosted margins the most during the pandemic  
• California on the brink: Virus rages and closures imminent.
  
• The U.S. economy is going to get worse before it gets better.
  

Newsmax:  

• 222 Republican Congressmen Won’t Say Biden President-Elect.
• Sidney Powell to Newsmax TV: Plenty of Time for Trump to Overturn Election Results.
• Rep. Hice to Newsmax TV: Kemp Can’t Afford to Dismiss Video.
• US Ends Exchange Programs with China, Calling Them 'Propaganda'.
• Arizona GOP Lawmakers Seek Audit on Voting Equipment, Software.
• Trump: I Will Win Georgia With Signature Verification.
• Newsmax to Carry Live Trump's Georgia Rally.
  

One America News Network:

• President Trump’s legal team claims 40K double votes found in Nev.
  

Zero Hedge:

• "Beyond Repair" - Sino-US Relations Badly Damaged, Warns China State Media.
• California Sheriff Slams Gov. Newsom's 'Dictatorial' Lockdowns, Won't Be 'Blackmailed, Bullied Or Used As Muscle' To Enforce.
• Chief Medical Officer Says Canadians Who Refuse Vaccine Won't Have "Freedom To Move Around".
• The NBA Is No Longer Testing For Marijuana Use.
• COVID Lockdowns Ordered For SoCal, San Joaquin Valley As California Sees Record 25K Cases: Live Updates.
• Georgia Poll Observers Say They Were Effectively Told To Go Home.
• Is The Gold Sell-Off Over?
• Franchise Relations Deteriorate As Pandemic Wreaks Havoc On Small Business.
• "I'm Just Not Buying It" - Jeff Gundlach Raises Questions About COVID Vaccine's '95%' Efficacy Rate.
• Paris Plunges Into Chaos As Protesters Denounce New Security Law.
• UK & EU Agree To Give Brexit Talks One More Chance Despite "Serious Differences".
• The Vaccine Rush Is A Race Against Capital Flight.
• Congress Weighs One-Week Stopgap, Extended Session To Reach Deal.
• COVID Is Exposing The Cancerous Underbelly Of US Healthcare.
• Tested 'Positive' For COVID-19? Be Sure To Ask This Question.
• EBITDALGBT? Harvard Prof Slams Friedman's 'Impact-Ignorant' Capitalism. 
• 'A Slap In My Face': LA Bar Owner Livid After City Lets Hollywood Studio Set Up Dining Tents.
• Citi's Corbat Concerned Working-From-Home Could Harm 'Long-Term Productivity' As Bankers Pull 7-Day Weeks.
• San Francisco Bans Smoking Inside Apartments Unless It's Weed.
  

TheGatewayPundit.com:

• China Whistleblower with Royal Ancestry Steps Forward – Reveals Video, Photos of Alleged Chinese Counterfeit Ballot Printing Operations of US Ballots for MS, FL and NC.
• Breaking: GEORGE SOROS Appoints Lord Mark Malloch Brown – The Former President of Smartmatic – to Lead Open Society Foundation.

The Epoch Times:

• FTSE Russell to Drop 8 Chinese Firms After US Blacklisting.
• Chinese Professor Pleads Guilty to Lying to FBI in Huawei-Related Case.
• Thousands Gather in Taiwan to Shine Light on Ongoing Persecution in China.

The Atlantic:

• The End of the Filibuster—No, Really. Many activists will not tolerate a Democratic-controlled Senate that allows Republicans to block legislation next year.

Politico:

• AOC Lays Out Progressive Wish List for Biden.

Glenn Beck:

• Elizabeth Warren’s ‘progressive wish list’ will destroy America. (video)

Daily Caller:

• Trump Urges Supporters Not To Boycott Georgia Senate Elections. President Donald Trump urged his supporters not to boycott the upcoming runoff Senate elections in Georgia on Friday, saying a boycott would be “playing right into the hands” of Democrats.

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).