Tuesday Watch

Evening Headlines

Bloomberg:       

• Westerners Grow Wary of China Travel Over Threat of Detention.  
• Why the U.K.’s Mutated Coronavirus Is Fanning Worries.  
• U.S. Adds Over 100 Chinese, Russian Companies to Military List.  
• Asian Stocks Slip on Virus Concerns; Dollar Steady: Markets Wrap.  
• Oil Holds Loss With Virus Mutation Threatening Global Movement.
• N.J. Sees 20% Spike; Bidens Receive Pfizer Vaccine: Virus Update.
• Checks, Tax Breaks and Airline Aid: What’s in Virus Relief Bill.  
• Rich Americans Who Fear Higher Taxes Hurry to Move Money Now.
  
• McConnell Says He Will Allow Biden’s Cabinet Nominees a Hearing.  
• Apple Targets Autonomous Car for Consumers by 2024, Reuters Says.  
• IPO Frenzy Drives Record $435 Billion in U.S. Stock Sales.

Wall Street Journal:

• A Pandemic of Misinformation.
• Covid Prompts Families to Shun Nursing Homes, a Shift That Appears Long Lasting.
• SolarWinds Hack Hit Office Home to Top Treasury Department Officials.

Fox News:    

• Trump plans 'big rally' for Loeffler, Perdue in Georgia.
• Ga. sec'y of state takes action with 8K out-of-state voters to protect runoffs.
• Read what's inside massive government spending bill.
  

CNBC.com:

• Mark Cuban: Bitcoin is ‘more religion than solution’ and won’t help in ‘doomsday scenarios’.
• U.S. plans to study allergic reactions from Pfizer’s Covid vaccine.
• Stimulus deal won’t extend payment pause for 42 million student loan borrowers.
• Here’s what’s in the $900 billion coronavirus relief plan.

MarketWatch.com:           

• The ‘single greatest risk’ facing Americans could hit within a decade, billionaire investor warns.
  
• ‘This is probably it for a while’: Hard road foreseen for further stimulus as Biden presses for more aid.
  
• ‘It’s unconscionable’: Outrage over the ‘three-martini lunch’ tax deduction in the new coronavirus aid deal.

Zero Hedge:

• Pork City: Here Are The Most Ridiculous Pet Projects In $900 Billion Stimulus Package.
• DeBlasio Mocks Fox, Doubles Down On 'Mission To Redistribute Wealth'.
• Lockdowns Do Not Control The Coronavirus: The Evidence.
• SIFMA Issues Paper To Assist With Planning For Negative Rates In The US.
• Apple "Moving Forward" With Self-Driving Car Technology.
• Gov Newsom In Quarantine; 30+ Countries Bar Travel With UK Over COVID Mutation: Live Updates.
• Climate Change Is The New Fed Mandate.
• Top Scientists Questioned COVID Lab Origin In Explosive Emails; Concerns Grow Over 'Impartial' WHO Probe.
• Government, Not COVID-19, Is Killing Small Businesses.
• Stocks Dump'n'Pump As Bank Buybacks & Bailouts 'Crush' COVID Mutation Concerns.

Newsmax:

• Trump: Talked to Tuberville, Who Hinted at Electoral-Vote Challenge.  
• Ga. Runoff Turnout Nears 1.5M and Heads Toward Record.
• Jenna Ellis Fires Back at Barr Over Nixing Elex Special Counsel.

TheGatewayPundit.com:

• Democrats’ “Stimulus” Bill Gives $600 to Suffering Americans – But Sends More Than $2 Billion to Africa and Asia.
• CRINGE: Kamala Harris Channels Hillary Clinton, Musters Fake Accent While Campaigning in Georgia (VIDEO).
• Rudy Giuliani: Audit Dominion Machines In Key States.

The Epoch Times:

• Zoom Shared US User Data With Beijing to Ensure Chinese Market Access, Court Documents Show.
• China Insider: China Spies on Americans through Caribbean Phone Networks.
• Grenell: ‘Very Concerned’ With Biden and His NSA Pick Over China.

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.
  

NTD News:

• "A lot of people, friends of mine, say, let's not vote... But if you do that, the radical left wins. ... You're angry because so many votes were stolen, it was taken away...If you don't vote, the socialists and the communists win"—Trump rallies for Perdue and Loeffler. (video) 

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 equity indices are -.75% to -.25% on average.

• Asia Ex-Japan Investment Grade CDS Index 57.75 +1.0 basis point.

• China Sovereign CDS 28.25 +.75 basis point.

• Bloomberg Emerging Markets Currency Index 62.58 -.03%.
• Bloomberg Global Risk-On/Risk Off Index 1,250.0 +9.0 points.
• Volatility Index(VIX) futures 26.4 +.28%
• FTSE 100 futures +.02%.

• S&P 500 futures -.15%.

• NASDAQ 100 futures +.11%.

Morning Preview Links

Earnings of Note 
Company/Estimate 

 

Before the Open: 

• (KMX)/1.13
• (CTAS)/2.18
• (NEOG)/.31
  

After the Close:

• None of note
  

Economic Releases

10:00 am EST

• The Conference Board Consumer Confidence Index for Dec. is estimated to rise to 97.0 versus 96.1 in Nov.
• Existing Home Sales for Nov. is estimated to fall to 6.7M versus 6.85M in Oct.
• The Richmond Fed Manufacturing Index for Dec. is estimated to fall to 10.0 versus 15.0 in Nov.
  

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The GFK Consumer Confidence report and the US weekly retail sales reports could also impact trading today.

Market Hours
Normal:

• 9:30 am - 4:00 pm EST
  

BOTTOM LINE: Asian indices are mostly lower, weighed down by commodity and technology 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 day.

Stocks Modestly Lower into Afternoon on New Virus Strain, European/Emerging Market/US High-Yld Debt Angst, Senate Control Fears, Energy/Transport Sector Weakness

 Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 24.6 +13.8%
• Bloomberg Global Risk On/Risk Off Index 1,289.0 -164.0 points

• Euro/Yen Carry Return Index 130.96 +.01%

• Emerging Markets Currency Volatility(VXY) 10.64 +3.0%

• S&P 500 Implied Correlation 47.7 -.5%

• ISE Sentiment Index 109.0 unch.
  

• Total Put/Call .75 -1.3%

• NYSE Arms .88 -40.5%

Credit Investor Angst:

• North American Investment Grade CDS Index 55.12 +3.57%
  

• US Energy High-Yield OAS 573.97  unch.

• European Financial Sector CDS Index 63.41 +8.48%

• Italian/German 10Y Yld Spread 115.0 +1.0 basis point
  

• Asia Ex-Japan Investment Grade CDS Index 58.24 +2.74%
  

• Emerging Market CDS Index 163.09 +4.0%
  

• iBoxx Offshore RMB China Corporate High Yield Index 183.77 +.22%

• 2-Year Swap Spread 8.5 unch.

• TED Spread 15.5 -.25 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -28.25 -3.75 basis points
  
• MBS  5/10 Treasury Spread  73.5 +.75 basis point
  
• IHS Markit CMBX BBB- 6 72.75 unch.

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 62.63 -.18%
• 3-Month T-Bill Yield .08% unch.
  

• Yield Curve 80.75 +.25 basis point
  

• China Iron Ore Spot 174.0 USD/Metric Tonne +5.1%

• Citi US Economic Surprise Index 66.7 -4.6 points

• Citi Eurozone Economic Surprise Index 201.70 -3.8 points
  

• Citi Emerging Markets Economic Surprise Index 70.9 +.3 point

• 10-Year TIPS Spread 1.95 -1.0 basis point
• 100.0% chance of no change at March 17th meeting, 100.0% chance of no change at April 28th meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -184 open in Japan 
• China A50 Futures: Indicating -64 open in China

• DAX Futures: Indicating +105 open in Germany

Portfolio:

• Slightly Higher: On gains in my tech/biotech sector longs and index hedges
  

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges, then added them back
  

• Market Exposure: 50% Net Long

Bear Radar

Style Underperformer:

• Small-Cap Value -1.2%

Sector Underperformers:

• 1) Airlines -3.1% 2) Energy -2.9% 3) Oil Service -2.3%

Stocks Falling on Unusual Volume: 

• CUE, CLDT, CODI, VIE, EL, LITE, DFIN, ABR, TOWN, OCFC, CNC, AMD, DIN, AAL, VC, INFN, WYNN, SLG, CUK, FSS, COUP, VSAT, TISI, FIS, SWX, STRL, EVOP, ALBO, NLTX, KURA, CWH, FDS, NFG, MLHR, CCL, FOCS, SCHL, WW, DENN, ICPT, GDEN, BDTX, QLYS, VER, PCVX, FANG, TSLA, VNOM, SR, OM, IHRT, ACCD, NBLX, VBTX, MSGN, OXY, CPE, SCS, PASG, FGEN and CURO
  

Stocks With Unusual Put Option Activity:

• 1) DD 2) DRI 3) ATUS 4) FL 5) MJ
  

Stocks With Most Negative News Mentions:

• 1) CVIAQ 2) SCHL 3) CDE 4) PLTR 5) IHRT
  

Charts:

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

Bull Radar

Style Outperformer:

• Small-Cap Growth -.2%

Sector Outperformers:

• 1) Banks +1.7% 2) Alt Energy +1.2% 3) Gold & Silver +.9%

Stocks Rising on Unusual Volume:

• NK, EDIT, RP, AGIO, PIC, SI, AJRD, NTLA, HGEN, FUBO, LAZR, MARA, QS, BEAM, ROOT, SRAC, SWI, TTCF, RMG, MGNI, DM, RCII, SGMO, MP, BEEM, HMSY, RVP, RIOT, LQDT, SDC, GS, THBR, VLDR, MSTR and NKE
  

Stocks With Unusual Call Option Activity:

• 1) AJRD 2) NK 3) KMX 4) MNST 5) FEYE

Stocks With Most Positive News Mentions:

• 1) ORIC 2) PLTR 3) AJRD 4) NKE 5) DRI
  

Charts:

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

Morning Market Internals

 NYSE Composite Index:

• Volume Running +17.1% Above 100-Day Average
• 1 Sector Rising, 10 Sectors Declining
• 22.9% of Issues Advancing, 74.4% Declining
• 83 New 52-Week Highs, 4 New Lows
• 85.2% of Issues Above 200-day Moving Average
• Average 14-Day RSI 54.6% 
• Bloomberg Global Risk-On/Risk-Off Index 1,066.0 -390.0 points
• Vix 27.4 +27.1%
• Total Put/Call .79 +4.0%
• TRIN/Arms .59 -60.1%

Monday Watch

Today's Headlines

Bloomberg:         

• U.K. Says New Covid Mutation Is ‘Out of Control’.
• U.K. Suppliers Sound Alarm as Virus Hobbles Import Routes.
• It’s Unclear If U.S. Has the U.K. Virus Mutation, Slaoui Says.  
• Brexit Talks to Continue Tomorrow Amid ‘Significant Differences’.
• Europe Moves to Isolate U.K. as Mutant Virus Spoils Christmas.
• Emerging-Market Stocks to Face Seven-Week Rally Litmus Test.  
• U.K. Faces Mutant Strain; Sydney Implements Curbs: Virus Update.  
• Dollar Rises, Stocks Slip; Virus Curbs Hit Pound: Markets Wrap.  
• Oil Drops After Seventh Weekly Gain on Virus Mutation Concern.
• Dollar Pressure, China’s Addiction, Korea in Crosshairs: Eco Day  
• Vaccines Don’t Mean We’ll See the Last of Covid, Experts Warn.
• Yellen Pressed to Back Strong Dollar in Reversing Trump-Era Tone.
• Lockheed Martin to Buy Aerojet Rocketdyne for $4.4 Billion.

Wall Street Journal:

• Goldman Sachs, Netflix Ramp Up Covid-19 Testing for Workers.
• Scenes From Pompeii—or Maybe My Abandoned Manhattan Office.
• Restaurant Safety Net Frays as Winter Arrives.
• Small Businesses Are Being Starved of Credit.
• Why Are So Many Italians Dying of Covid-19?
• The Cyber Threat Is Real and Growing.
• Hospitals Retreat From Early Covid Treatment and Return to Basics.
• U.S. Officials Urge Calm Over New Strain.

Fox News:

• Biden will not discuss Hunter Biden probe with AG candidates, Psaki tells Chris Wallace.
• Documents reveal scope of Beijing’s effort to control coronavirus narrative: report.
• Police chief speaks out after fourth NC officer shot in just over a week.

CNBC: 

• Congress agrees to $900 billion Covid stimulus deal after months of failed negotiations.
• The U.K. has identified a new Covid-19 strain that spreads more quickly. Here’s what they know.
• Belgium, Austria, Italy, Netherlands halt UK flights, fearing new coronavirus variant.
• Pain, despair and poverty reach fever pitch for unemployed workers.
• U.K. orders stricter Covid lockdown in London — ‘We cannot proceed with Christmas as planned’.
• Second stimulus checks will help, but U.S. income crisis runs much deeper than Covid.
• Amazon closes New Jersey warehouse after workers test positive for coronavirus.
• Tesla enters the S&P 500 with 1.69% weighting in the benchmark, fifth largest.
  

Zero Hedge: 

• Congress Reaches Agreement On $900 Billion Stimulus Deal.
• Trump Campaign Files 267-Page Motion At US Supreme Court Challenging Pennsylvania Rulings.
• Kyle Bass Explains Why We May Never See Another Bear Market In Bonds.
• OIl Slides On UK Lockdown Fears.
• 1000s Flee London Amid "Tier 4" Restrictions; "Out Of Control" Mutation Spreads To Italy: Live Updates.
• No Act Of War But "An Easy Score": Here's What We Know & Don't Know About SolarWinds Hack.
• Overly Bullish Speculators Front-Run "Santa Claus".
• CDC Admits Drug Overdose Deaths Are Accelerating During COVID-19 Pandemic.
• Former Wisconsin Judge: 'Our Court System Has Been Deeply Intimidated by the Left'.
• Stanford SJWs Left 100s Of Frontline Doctors Without Priority Access To COVID Vaccine.
• Outrage Erupts After Helen Keller Canceled From The Grave Over 'White Privilege'.
• CDC Issues New Guidelines, Launches Probe After 1000s Negatively-Affected Following COVID-19 Vaccination.
• Comparing Today's Markets With 2009 And 2017.
• Record 41% Of European IG Bonds Have Negative Yields As ECB Buys Quarter Of All Eligible Corporate Bonds.
• Bonuses For Goldman's Trading Desk Could Jump 20% This Year.
• 2020: The Year We Let Ourselves Be Infantilised And Dehumanised.
• California Reports Record COVID Cases And Deaths... Despite Strictest Lockdown.
• Californians Can Now Pay A Premium To Power Their Homes With Manure.

MarketWatch.com:    

• Why an IPO ‘meltup’ could signal future trouble for the stock market.
  

NewsMax:  

• Facts About Dominion, Smartmatic You Should Know.  
• Gaetz: I Will Challenge Electoral College Votes on Jan. 6.

TheGatewayPundit.com:

• SOMETHING’S BREWING! Dan Scavino Posts Series of Tweets After Raucous Oval Office Meeting – Trump Is Ready to Take Action.
• With Another Election Coming Up in Days, Georgia Is Still a Mess with the Same Players Running the Same Processes.
• President Trump to Hold Second Rally for Georgia Senators Loeffler and Perdue on January 4th.
• REVEALED: ‘Simple Math’ Shows Biden Claims 13 MILLION More Votes Than There Were Eligible Voters Who Voted in 2020 Election.
• Lawyers Argue Employers Can “Legally” Require COVID-19 Vaccinations (VIDEO) #MyBodyMyChoice.
• NEW: Trump Campaign Takes Fight Over Pennsylvania Election and Mail-In Ballot Laws to US Supreme Court.
• HUGE: Chinese Spy Rep. Swalwell Was Sleeping With Is Pictured with Chinese Agent Who Spied on Sen. Feinstein for 20 Years.

The Epoch Times:

• VIDEO: Bill Gertz: Leaked Database Suggests Widespread CCP Infiltration; China Silencing Hong Kong Activists.
• COVID-19 Cluster Outbreaks Occuring Throughout China.
• McCarthy Calls for Expanded FBI Briefing on Swalwell’s Ties to Alleged Chinese Spy.

@kylenabecker:

• BIG TECH. “YouTube has decided that my opening statement in the U.S. [Senate], given under oath & based upon hard evidence, is too dangerous for you to see; they removed it." Youtube is now censoring statements in the U.S. SENATE leftists don't like. Ridiculous!

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 -.75% to unch. on average.
• Asia Ex-Japan Investment Grade CDS Index 56.75 unch.
• China Sovereign CDS 27.5 -.5 basis point.
• Bloomberg Emerging Markets Currency Index 62.71 -.06%.
• Bloomberg Global Risk-On/Risk Off Index 1,430.0 -27.0 points.
• Volatility Index(VIX) futures 24.45 +1.14%. 
• Euro Stoxx 50 futures -1.39%.
• S&P 500 futures -.05%.
• NASDAQ 100 futures +.26%.

Morning Preview Links

Earnings of Note

Company/Estimate

Before the Open:

• (FDS)/2.74
  

After the Close:

• (HEI)/.41
  

Economic Releases

8:30 am EST

• The Chicago Fed National Activity Index for Nov.

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The Australia retail sales report and the $21B 19Y 10 month Treasury auction could also impact trading today.

Market Hours
Normal:

• 9:30 am - 4:00 pm EST

BOTTOM LINE: Asian indices are modestly lower, weighed down by technology 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.