Stocks Reversing Lower into Afternoon on Virus Shutdown Fears, Senate Control Worries, Valuation Concerns, Commodity/Transport Sector Weakness

 Broad Equity Market Tone:

• Advance/Decline Line: Modestly Higher
  

• Sector Performance: Mixed
  

• Volume: Around Average

• Market Leading Stocks: Underperforming
  

Equity Investor Angst:

• Volatility(VIX) 23.8 +2.1%
• Bloomberg Global Risk On/Risk Off Index 1,209.0 +9.0 points

• Euro/Yen Carry Return Index 130.89 +.36%

• Emerging Markets Currency Volatility(VXY) 10.3 +.3%

• S&P 500 Implied Correlation 50.7 +5.7%

• ISE Sentiment Index 117.0 -19.0 points
  

• Total Put/Call .76 -20.8%

• NYSE Arms 2.04 +23.5%

Credit Investor Angst:

• North American Investment Grade CDS Index 54.02 +.47%
  

• US Energy High-Yield OAS 585.51 -.88%

• European Financial Sector CDS Index 61.20 -4.1%

• Italian/German 10Y Yld Spread 116.0 -3.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 58.53 +.05%
  

• Emerging Market CDS Index 163.63 -1.03%
  

• iBoxx Offshore RMB China Corporate High Yield Index 182.10 +.06%

• 2-Year Swap Spread 8.0 +.5 basis point

• TED Spread 15.25 -.25 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -17.25 +4.5 basis points
  
• MBS  5/10 Treasury Spread  72.75 +.75 basis point
  
• IHS Markit CMBX BBB- 6 72.5 unch.

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 62.37 -.10%
• 3-Month T-Bill Yield .07% unch.
  

• Yield Curve 78.5 +1.25 basis points
  

• China Iron Ore Spot 153.0 USD/Metric Tonne -4.3%

• Citi US Economic Surprise Index 75.80 -2.4 points

• Citi Eurozone Economic Surprise Index 138.3 -2.9 points
  

• Citi Emerging Markets Economic Surprise Index 67.1 +.4 point

• 10-Year TIPS Spread 1.88 +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 -12 open in Japan 
• China A50 Futures: Indicating +21 open in China

• DAX Futures: Indicating -11 open in Germany

Portfolio:

• Slightly Higher: On gains in my biotech/medical/tech sector longs
  

• Disclosed Trades: Added to my (IWM)/(QQQ) hedges
  

• Market Exposure: Moved to 25% Net Long

Bear Radar

Style Underperformer:

• Large-Cap Value -.5%

Sector Underperformers:

• 1) Energy -2.8% 2) Steel -2.0% 3) Pharma -2.0%

Stocks Falling on Unusual Volume: 

• CLF, NBLX, MAC, GIK, WLL, LPG, IPV, PIC, PFE, FUBO, FEAC, HEP, PFE, XHR, SRAC, UE, ARCC, FLGT, X, EPR, DK, HCAC, CPE, LOVE, LCA, BPMP, EGHT, HBAN, DFIN, SSPK, RMG, DCP, RCKT, WES, BRP, SNOW, BLI, SHLX, OXY, NK, MIK, APPN, CPS, OMP, MYGN, PSNL, VERI, THCB, TCRR, QS, TTGT, EAR, SPCE, SWI, FOSL and GLSI
  

Stocks With Unusual Put Option Activity:

• 1) WES 2) SIRI 3) ATUS 4) QCOM 5) WMB
  

Stocks With Most Negative News Mentions:

• 1) KNDI 2) ABNB 3) DASH 4) LOOP 5) TCRR
  

Charts:

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

Bull Radar

Style Outperformer:

• Small-Cap Growth +1.1%

Sector Outperformers:

• 1) Biotech +2.5% 2) Semis +1.3% 3) Restaurants +1.1%

Stocks Rising on Unusual Volume:

• ARVN, ALXN, FIXX, DOMO, ALT, CALX, STRL, LGND, APLS, LQDT, RVP, INSG, SGMO, MBUU, TTCF, CDXS, GOSS, TBIO, RARE, GOCO, SFIX, CMTL, RADI, RDFN, PS, BLUE, VLDR, IIPR, BFT, ATNX, AZEK and AVRO
  

Stocks With Unusual Call Option Activity:

• 1) ALXN 2) VERU 3) ATUS 4) TFC 5) GIS

Stocks With Most Positive News Mentions:

• 1) ALXN 2) MOS 3) MCD 4) ARVN 5) VERU
  

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running +8.6% Above 100-Day Average
• 4 SectorS Rising, 7 Sectors Declining
• 54.2% of Issues Advancing, 43.4% Declining
• 199 New 52-Week Highs, 3 New Lows
• 85.9% of Issues Above 200-day Moving Average
• Average 14-Day RSI 54.2% 
• Bloomberg Global Risk-On/Risk-Off Index 1,270.0 +69.0 points
• Vix 22.9 -1.6%
• Total Put/Call .64 -33.3%
• TRIN/Arms 2.18 +31.3%

Monday Watch

Today's Headlines

Bloomberg:         

• Johnson and EU Keep Brexit Talks Alive, Raising Hopes of a Deal.  
• China Pledges Better Supervision of Bond Credit Rating Industry.   
• U.S. Stock Futures Rise, Dollar Slips; Pound Jumps: Markets Wrap.
• Five Things You Need to Know to Start Your Day.
• Mutual Funds Bleed $469 Billion as ETFs Triumph in Zero-Sum 2020.  
• Strategists in a Major Struggle to Reach a 2021 Stock Consensus.  
• Deutsche Bank May Move Half of New York Staff Elsewhere.  
• Oil Rises From the Ashes as the Big Coronavirus Recovery Trade.
• Gold Steadies as Investors Track Vaccine Rollout, Stimulus Talks.  
• Lawmakers to Unveil $908 Billion Pandemic Relief Plan Monday.

Wall Street Journal:

• Next Step Is Getting People to Take Vaccine.
• Another Green Subsidy Bust.
• Hong Kong’s Freedom Fighters.
• U.S. Poised for Wave of Evictions in January.
• One of the Pandemic's Big Winners: Hunting.
• Rollout Will Cost States Billions They Don’t Have.
• Sizzling Tech IPO Market Leaves Investors Befuddled.
• The Fate of Home Exercise Equipment When Covid-19 Ends.
• Warning Signs in the Best-Managed Companies.
• Elliott Management Has Significant Stake in Public Storage.

Fox News:

• White House confirms reports of cyberattack on US Treasury Dept. by foreign government; FBI probing.

CNBC:

• Former Cuomo staffer accuses NY governor of sexually harassing her for years — he denies it.
• Companies that help the web stay speedy are having a moment.
• Coronavirus updates: Pfizer vaccine shipping to all 50 states today with delivery expected Monday.
  

Zero Hedge: 

• NIH Director Begs Americans To Swallow Vaccine Skepticism As Bill Gates Eyes Unofficial Role.
• Here Is The Little-Known Provision In The CARES Act That Could Trigger A Year-End "Selling Deluge".
• The 'Hannibal Trap' Will Crush Global Wealth.
• Deutsche Bank Warns 50% Of NYC Bankers Might Be Headed To Jacksonville In Latest Cost Cuts.
• The Biggest Janet Yellen Red Flag Is George Akerlof.
• Pound Jumps In Early NJ's Murphy Warns Next Few Weeks "Are Going To Be Hell"; Germans Furious Over Christmas COVID Lockdown: Live Updates Trading After Brexit Talks Extension.
• Irrational Exuberance – The Bulls Remain In Control.
• Ultra-High-End Shopping Explodes As Wealthy Splurge On Luxury Goods.
• 48% Of US Small Businesses Fear That They May Be Forced To "Shut Down Permanently" Soon.
• Night Of Chaos: 4 Stabbed, 23 Arrested After Proud Boys & Antifa Clash in Washington.
• London & Brussels Agree To One Last Round Of Trade Talks As Optimism For A Deal Sours.
• Why Did The WHO Bury This Damning Report On Italy's COVID-19 Response?
• A Secret Agreement That Allows Chinese Spies To Roam Free In Switzerland Was Exposed This Week.
• Massive Riot Breaks Out At India iPhone Factory Over Unpaid Wages.
• No Need For Vaccine This Year: Australia's Chief Medical Officer.
• 2020 Is Ending With 93% Of Global Economies Contracting... And With Markets At All Time Highs.
• Newt Gingrich On Georgia Runoff: "We Need To Win By A Bigger Margin Than The Left Can Steal".
• People Were Pouring Out Of US Cities Like LA And New York Even Before COVID Started.
  

NewsMax:  

• Republicans Angry, Energized for Crucial Georgia Senate Vote.
• Dick Morris: Dems Preemptively 'Intimidated' SCOTUS on Packing.
• Thousands of Trump Supporters again Rally in Washington.
• Grenell: Gang of Eight Should Probe Swalwell's Ties to China.

TheGatewayPundit.com:

• THIS IS HUGE: “It’s a Real Simple Fact to Prove that There Was Massive Fraud in This Election” – Inventor of QR Code Can Prove It.
• MUST SEE: Evidence? Election Night Errors Caught on Video – Retweeted by Sidney Powell (VIDEO).
• Antifa Seen Cowering Behind the Police Last Night in DC After Being Confronted by the Proud Boys.
• Crazy Liberal Wisconsin Supreme Court Justice, Jill Karofsky, Claims Trump Case Is “Racist” and Is Filed to “Overturn the Election So Your King Can Stay In Power”.
• The Investigation Into Hunter Biden and China Is Suddenly Discovered by the Liberal Media – Why Is This All Coming Out Now?

@kylenabecker:

• CHINA. "There has now been a major leak of official records from the Chinese Communist Party. It is believed to be the first leak of its kind in the world." Massive database of 2.4 mln targets of Zhenhua Data was *LEAKED.* The list includes Australians, Britons & Americans. (video)
• GEORGIA. "Democrats are prepared to win this election... We know from the numbers we are in a good place. 1.2 million absentee ballots have been requested thus far... 1.3 million were requested for all of the general election," Stacey Abrams said. GEORGIA HAS LEARNED NOTHING.

@SidneyPowell1:

• Because #Georgia is hiding massive fraud and corruption that includes the state's highest elected officials "People who have nothing to hide hide nothing." - www.Kr@kenWood.com The documents are available there. Twitter banned link.
• Important new evidence of #Georgia #ElectionFraud. Anyone having trouble finding #Evidence of fraud, read the exhibits to #SupremeCourt docs http://SidneyPowell.com.

Geller Report: 

• LOOK Who Owns Dominion Voting Systems: Politically Motivated PRIVATE Equity NY Hedge Fund.

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 58.5 +.25 basis point.
• China Sovereign CDS 29.25 +.25 basis point.
• Bloomberg Emerging Markets Currency Index 62.37 -.04%.
• Bloomberg Global Risk-On/Risk Off Index 1,258.0 +57.0 points.
• Volatility Index(VIX) futures 25.10 -1.86%. 
• Euro Stoxx 50 futures +.72%.
• S&P 500 futures +.51%.
• NASDAQ 100 futures +.39%.

Morning Preview Links

Earnings of Note

Company/Estimate

Before the Open:

• None of note
  

After the Close:

• (EZPW)/-.09
  

Economic Releases

• None of note
  

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The Electoral College Certification day, China Yuan loan data report and the (AEIS) investor 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 financial and commodity 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.

Today's Headlines

Bloomberg:                

• Xi Disappoints as Leaders Make Modest Pledges: Climate Update.  
• China Stocks Post Worst Week in Two Months as Liquidity Tightens.  
• Italy Is Racing to Keep Debt Costs Lower for Longer While It Can.
• AstraZeneca to Buy Alexion for $39 Billion in Rare-Disease Push.
• IPO Mania Sweeps Over Robinhood Crowd and Stokes a 111% Rally.  
• New Yorkers Turn Palm Beach Into Hamptons South Fleeing Virus.
• Should You Jump Into the Airbnb Stock Frenzy? Consider This First.  
• N.Y. Cases Rise Further and California Hits Record: Virus Update.
• Atlanta Mayor Declines Role in Incoming Biden Administration.

Wall Street Journal:

• Q&A: Distribution, Side Effects and What You Need to Know.
• Pfizer-BioNTech shot to be available within days.
• Big Industries Vie for Vaccine Priority.
• The High-Tax End Run Around the Arizona Constitution.
• From Factory to Front Line: A Supply Chain Takes Shape to Deliver Vaccine.
• NFL Ratings Drop Leaves Networks Scrambling to Make Advertisers Whole.
• Gargling Could Slow Covid-19 Spread, Mouthwash Makers Say.

CNBC: 

• 10 cities where the cost of living has gotten cheaper.
• Airbnb nomads are ditching their apartments in pandemic-ridden cities.
• Coronavirus updates: FDA chief says Pfizer vaccine authorization not due to pressure, urges vigilance.
• Oracle is moving its headquarters from Silicon Valley to Austin, Texas. 

IG:

• Weekend Markets Trading Live.

Barron's:

• Had bullish commentary on (MCY), (DIS) and (SBUX).
• Had bearish commentary on (NIO), (XPEV), (XOM), and (LI).

MarketWatch.com:            

• Stock-market uncertainty runs high headed into Fed’s final meeting of 2020.  
• The U.S. economy is showing more coronavirus cracks and the fissures are growing.

Fox News:

• Hunter requested keys for Joe Biden at space he planned to share with Chinese 'emissary': email.
• Feinstein mum about completing full 6 years after hit piece alleges memory loss.

Newsmax: 

• Giuliani to Newsmax: SCOTUS Aside, Legal Fight Is Set to Continue.
• Dershowitz to Newsmax: Court Just Didn’t Want to Get Involved.  
• Arizona GOP Chief Appeals to Supreme Court Over Biden Win. 
• Wisconsin Supreme Court to Hear Trump Lawsuit Appeal.
  

Zero Hedge:

• Twitter Blocks Users From Liking, Replying-To Trump Tweets As President Rages Over SCOTUS, Barr, & 'RINO' Governors.
• Hunter Biden Subpoenaed Over Burisma, Two Dozen Other Entities As Part Of Four Investigations.
• Earnings Growth Will Disappoint In 2021.
• "This Is Insane": NYC Small Businesses Furious At Indoor Dining Ban After Data Shows Restaurants Account For Only 1.4% Of Covid Cases.
• Are You Ready For A Cookie Shortage This Holiday Season? 
• Manhattan Apartment Rents Dive To Decade Low As Inventory Swells.
• The Viral Assault On Small Businesses.
• US Sees Record 300K COVID Cases As Total Nears 16MM; Scramble For Vaccine Doses Begins: Live Updates.
• CNN's April Ryan Outraged At Reporters Disclosing Embarrassing Comments By Joe Biden.
• "Chaos And Frustration": French Trucking Paralyzed Amid Brexit Chaos.
• AstraZeneca Agrees To Buy Alexion For $39BN In Year's Biggest Drugmaker Deal.
• NHS Commercial Terrifies Kids By Showing Santa Stricken With COVID.
• No Privacy, No Property: The World In 2030 According To The WEF.
• Former Special Forces Officer Warns Of 'Color Revolution Tactics' Used Against Trump.
• The Dehumanizing Danger Of Social Media.
• Ben & Jerry's Unveils Super-Woke Kaepernick Ice Cream "To Dismantle Systems Of Oppression".
• 2020 Takes Toll On Mental Health.
• Who The "Resistance" Was Actually 'Resisting' These Last Four Years.
• What Wall Street Thinks Are The Biggest Risks For 2021.

@kylenabecker:

• "Secretary of State Jocelyn Benson said it happened by human error... That's a LIE...It happened through a computer program called Dominion Voting Systems." 6,000 vote swap *glitch.* ANTRIM COUNTY. Michigan is keeping the audit results SECRET. Big mystery why. (video)
• "Barr has known about a disparate set of investigations involving Hunter Biden’s business and financial dealings SINCE AT LEAST THIS SPRING... and worked to avoid their public disclosure..." Yet every anti-Trump witch hunt was leaked instantly. Pathetic.

TheGatewayPundit.com:

• Twitter Removes ‘Like,’ ‘Reply’ and Retweet Count Functions From Multiple Trump Tweets About the Election.
• BREAKING EXCLUSIVE: Dominion Voting Machines Have the Ability to Create Ballots! 
• Sidney Powell Announces Emergency Filings in Georgia, Michigan, Arizona and Wisconsin.
• Texas GOP Chairman Allen West Suggests Succession After SCOTUS Allows Complete Lawlessness with 2020 Elections.
• These Three Trump Judges Threw the President Under the Bus and the Texas Case in The Garbage.
• Mark Levin Slams Joe Biden’s Cabinet Picks For Being Appeasers Of China (VIDEO).

The Epoch Times: 

• O’Toole Accuses Government of ‘Kowtowing’ to Beijing, Putting Canada at Risk.
• Swalwell Spoke at Same 2013 Event as Alleged Chinese Spy Who Worked for Feinstein.

Geller Report: 

• LOOK Who Owns Dominion Voting Systems: Politically Motivated PRIVATE Equity NY Hedge Fund.

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).