Evening Headlines

Bloomberg:   

• China Urgently Needs to Contain Financial Risks, IMF Says.  
• Charting the Global Economy: Resurgent Virus Taking Bigger Toll.
  
• Wall Street Is the Most Bullish on Commodities in a Decade.
  
• Trump’s ‘Death to Asylum’ Overhaul Is Halted by U.S. Judge.
• Robinhood Hacking Victim Sues Trading Platform Over Security.
• Supreme Court to Review Refinery Waivers From Biofuel Quotas.  
• Covid Patients’ Symptoms Persist Six Months in Foreboding Study.  
• How the Perpetual Motion Stock Market Is Ultimately Set to Break.  
• Hydrogen Company’s Market Value Skyrockets to $25 Billion.  
• Flesh-and-Blood Hedge Fund Traders Prevailed in 2020’s Tumult.

Wall Street Journal:

• Businesses Brace for a Democratic Congress.
• House Democrats to Introduce Article of Impeachment Against Trump.
• Live Coverage: Trump Won’t Attend Inauguration.
• Job Losses in 2020 Were Worst Since 1939.
• The Lockdown Jobs Slump.
• Covid-19 Crisis Forces California Hospitals to Plan Who Gets Life-Saving Care.
• Long-Term Bonds Hit Hard After Georgia Senate Runoffs.

CNBC:

• Trump tweets from POTUS handle account, says looking ‘at the possibilities of building out our own platform’.
• Micron Technology is in the ‘sweet spot’ of digital transformation, CEO says.
• Stocks close at record highs, post weekly gain to start 2021.
• Trump not expected to be charged with inciting Capitol riot, DOJ says.
• ‘We’re in nosebleed territory’ – three market analysts on where stocks head in 2021.
• Global semiconductor shortage causes Ford and Nissan to cut vehicle production.

IG:

• Weekend Markets Trading Live.

Fox News:

• Read the new articles of impeachment expected against Trump.
• Biden says Trump's 'not fit to serve,' dodges impeachment question.
  

Newsmax:

• Twitter Permanently Suspends Trump's Account.  
• Sen. Cruz Says Electoral Objections Did Not Incite Riot.
• Laptop Stolen From Pelosi's Office During Storming of Capitol.
• Trump Promises 'Giant Voice' for His Backers.  
• Sen. Daines Still Backs Trump, Rejects Calls for Ouster.
  

Zero Hedge:

• Twitter Permanently Bans Trump For 'Glorifying Violence'; Parler Suspended From Google App Store.
• Pelosi 'Hopes' Trump Will "Immediately Resign" After White House Slams Democrats' "Politically Motivated" Impeachment.
• Trump Tweets From POTUS Account, Twitter Then Immediately Deletes It.
• The Capitol Riot Wasn't A Coup. It Wasn't Even Close.
• U Alabama Under Investigation For Possible Ties To Wuhan Lab.
• China Threatens US With "Heavy Price" For "Crazy Provocation" Of Top Ambassador's Trip To Taiwan.
• Children's Hospitals Grapple With Wave Of Mental Illness.
• New Hyper-Infectious "Mutant" COVID Strain May Already Be Spreading In US.
• "Sudden Stratospheric Warming" May Trigger Wild Winter Weather For Northeast.
• Nearly Half Of U.S. Voters Believe Health Officials Have Been Misleading With COVID Data.
• Insurrection.
• US Consumers Unexpectedly Paid Down Their Credit Cards In November; Have "Uncharged" $115BN In 2020.
• Emily Ratajkowski Says Facebook Banning Trump Gives Zuckerberg Too Much Power.
• California Now Wants To Tax People Who Live In Other States, Too.
• Mexico's President Blasts Twitter & Facebook For Acting Like "Holy Inquisition" In Censoring Trump.
• DC National Guard May Carry Firearms Ahead Of Inauguration: Report.
• Rabo: Amid The Hysteria, Here Are Two U.S. Coups That Already Quietly Happened.
• "The Price Will Be High": Biden Calls For "Trillions" In Fiscal Stimulus.
• The Cultural Purge Is Now In Overdrive.
• Stocks, Bond Yields, & Crypto Soar Amid Payrolls Plunge, "Damaged" Democracy, & Biden's "Trillions".

TheGatewayPundit.com:

• Biden References Nazi Propaganda Minister Joseph Goebbels as he Attacks Hawley and Cruz – Hawley Responds (VIDEO).
• Google-YouTube Terminates Steve Bannon’s War Room Podcast — One of Top Podcasts Online.
• Big Tech Launches Massive Coordinated Cyber Attack on 74,000,000 Trump Voters — GOP SILENT.
• BREAKING: Parler Goes Down After Trump Joins Social Media Platform – Apple Threatens to Remove Parler Unless it Enacts Draconian Censorship Policies.
• No Wonder They’re FREAKED! New Video and Photos Show Half a Million at “Stop the Steal” Rally and Then TENS OF THOUSANDS of Patriots Surrounding US Capitol.
• Attorney Sidney Powell Now Suspended from Twitter – Joins the Growing List of Trump Supporters Being Silenced.
• BREAKING: General Flynn Has Been Kicked Off Twitter.
• BIZARRE VIDEO Shows Police Officer Directing “Lethargic” Leader of Small Mob, Dressed In All Black, To Senate Chambers…Why??
• “You Traitor! Piece of Sh*t!” – Breaking: ANGRY MOB of TRUMP SUPPORTERS Mobs Traitor Lindsey Graham at DC Airport (VIDEO).

The Epoch Times:

• Catholic Church Is Infiltrated by Globalists: Archbishop Carlo Maria Vigano.
• Chinese Telecom Firms Lose $5.6 Billion in Value as Index Providers Drop Them.

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).

Stocks Slightly Higher into Final Hour on Stimulus Hopes, Oil Gain, Short-Covering, Transport/Restaurant Sector Strength

 Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Above Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 22.6 -1.1%
• Bloomberg Global Risk On/Risk Off Index 2,010.0 +125.0 points

• Euro/Yen Carry Return Index 131.47 -.35%

• Emerging Markets Currency Volatility(VXY) 10.5 -2.1%

• S&P 500 Implied Correlation 48.0 +.8%

• ISE Sentiment Index 96.0 -62.0 points
  

• Total Put/Call .71 +6.0%

• NYSE Arms 1.06 +19.1%

Credit Investor Angst:

• North American Investment Grade CDS Index 50.1 -.36%
  

• US Energy High-Yield OAS 523.81 -1.24%

• European Financial Sector CDS Index 58.20 -1.6%

• Italian/German 10Y Yld Spread 105.0 -3.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 57.52 -.17%
  

• Emerging Market CDS Index 153.88 -.26%
  

• iBoxx Offshore RMB China Corporate High Yield Index 184.76 -.05%

• 2-Year Swap Spread 7.75 unch.

• TED Spread 14.5 -1.0 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -3.25 -1.0 basis points
  
• MBS  5/10 Treasury Spread  68.0 +.5 basis point
  
• IHS Markit CMBX BBB- 6 73.75 +1.0 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 62.56 -.10%
• 3-Month T-Bill Yield .08% unch.
  

• Yield Curve 96.0 +5.25 basis points
  

• China Iron Ore Spot 166.30 USD/Metric Tonne -1.2%

• Citi US Economic Surprise Index 62.40 -1.8 points

• Citi Eurozone Economic Surprise Index 171.20 +5.8 points
  

• Citi Emerging Markets Economic Surprise Index 69.0 -1.3 points

• 10-Year TIPS Spread 2.04 -5.0 basis points
• 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 -11 open in Japan 
• China A50 Futures: Indicating -52 open in China

• DAX Futures: Indicating -20 open in Germany

Portfolio:

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

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

• Market Exposure: Moved to 50% Net Long

Morning Market Internals

NYSE Composite Index:

• Volume Running +10.3% Above 100-Day Average 
• 6 Sectors Rising, 5 Sectors Declining
• 48.2% of Issues Advancing, 48.9% Declining
• 288 New 52-Week Highs, 0 New Lows
• 85.2% of Issues Above 200-day Moving Average
• Average 14-Day RSI 55.6% 
• Bloomberg Global Risk-On/Risk-Off Index 2,029.0 +144.0 points
• Vix 22.1 -1.3%
• Total Put/Call .68 +1.49%
• TRIN/Arms 1.20 +34.8%

Friday Watch

Evening Headlines

Bloomberg:              

• MSCI Cuts China Telcos From Indexes After Trump Ban; Shares Fall.
• Hyundai Shares Jump Most Since 1988 After Report on Apple Tie-Up.
• Asian Stocks Follow U.S. Higher; Dollar Holds Gain: Markets Wrap.  
• Oil Heads for Weekly Gain on Saudi Cuts and Democratic Sweep.  
• More U.S. States Find Variant; Hebei Cases Jump: Virus Update.
• Goldman-Backed Tuhu Seeks Funding at $4 Billion Value.  
• Democratic Sweep Sets Stage for $2,000 Stimulus Checks and Higher Taxes.

Wall Street Journal:

• Covid-19 Vaccines Are Elusive for Many Doctors.
• SolarWinds Hack Likely Affected Federal Judiciary.
• Live Coverage | Tensions Simmer After Biden Certification.
• Covid Keeps Thousands of Australians Stranded Overseas.
• Jobless Claims and Imports Show U.S.’s Uneven Recovery.
• Samsung Expects 25% Rise in 4th-Quarter Operating Profit.
  

Fox News:    

• Biden, Harris ripped for suggesting BLM, Capitol riots double standard.
• CNN's Cooper mocks Trump supporters, restaurant chain during Capitol riots.

CNBC.com:

• New York Gov. Cuomo warns Covid variant discovered in UK could strain hospitals, force shutdown.

MarketWatch.com:       

• Opinion: Electric vehicles aren’t going to take over any time soon.  
• Micron stock rises after earnings, outlook easily exceed expectations. 
• Bitcoin price surges to $40,000, doubling in just about 3 weeks.

Zero Hedge:

• Why Was Founder Of Far-Left BLM Group Filming Inside Capitol As Police Shot Protester?
• Trump Tweets For The First Time Since Suspension, Says "New Administration Will Be Inaugurated On Jan 20".
• "We'll See You In Court": Sen. Josh Hawley Blasts 'Orwellian' Simon & Schuster Over Canceled Book.
• Chicago Schools Chief: Half Of Teachers Pressured By Teachers’ Union Didn’t Show Up For Work.
• A Bizarre Discrepancy Is Blowing Up The Trade "Data" Between US And China.
• Matt Gaetz Destroys Democrats' Hypocrisy On Contesting Elections And Violence.
• Why Trump Voters Don't Trust The People Who Count The Votes.
• Biotech Bloodbath: Hedge Fund Hotel Sarepta Collapses After Study Disappoints.
• The Coming "Woke" American Theocracy.
• Robinhood May Sell Shares To Its Own Clients In Upcoming IPO.
• Boeing Pays $2.5BN Criminal Penalty Tied To 737 MAX Crashes That Killed 350.
• Stocks, Crypto, & Bond Yields Soar After "Darkest Moment In American History".

Newsmax:

• Capitol Police Probe Death of Woman Killed in Riots, Family Speaks.
• Gaetz, Other Republicans Suggest Antifa Behind Breach.

TheGatewayPundit.com:

• BREAKING: Capitol Police Officer Has Died From Medical Emergency Suffered During Capitol Protest, Chief Resigns.
• Michelle Obama Calls For Tech Companies to Permanently Ban President Trump From Their Platforms.
• FBI Has Already Put Together a List of “MAGA Most Wanted” From Yesterday – Considering Adding President Trump.
• Biden Fans the Flames, Labels Trump Supporters “Domestic Terrorists” (VIDEO).
• Deep State’s Color Revolution Executed to Perfection – Now They’re After Red Meat.
• Project Veritas Identifies the Exact Moment Ralph Jones is Ordered by a Judge to Stop Preventing Poll Watchers Access to Activities Going on in Atlanta.
• Pelosi Calls for Trump to be Impeached or Removed By 25th Amendment as House Democrats Draft Articles of Impeachment to Remove Trump and Ban Him From Second Term.

The Epoch Times: 

• Chinese Regime Uses Noodle Dish to Promote Its Agenda Overseas: Leaked Documents.
• Chinese City of 11 Million Issues Travel Ban as CCP Virus Outbreak Worsens.

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 +.5% to +1.5% on average.

• Asia Ex-Japan Investment Grade CDS Index 57.0 -.75 basis point.

• China Sovereign CDS 28.25 -.25 basis point.

• Bloomberg Emerging Markets Currency Index 62.57 -.08%.
• Bloomberg Global Risk-On/Risk Off Index 1,886.0 +2.0 points.
• Volatility Index(VIX) futures 24.9 -.5%.
• FTSE 100 futures +.08%.

• S&P 500 futures +.36%.

• NASDAQ 100 futures +.33%.

Morning Preview Links

Earnings of Note 
Company/Estimate 

 

Before the Open: 

• None of Note
  

After the Close:

•  None of note
  

Economic Releases

8:30 am EST

• The Change in Non-Farm Payrolls for Dec. is estimated to fall to 50K versus 245K in Nov.
• The Unemployment Rate for Dec. is estimated to rise to 6.8% versus 6.7% in Nov.
• Average Hourly Earnings MoM for Dec. is estimated to rise +.2% versus a +.3% gain in Nov.
  

3:00 pm EST

• Consumer Credit for Nov. is estimated to rise to $9.0B versus $7.228B in Oct.

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The Fed Vice Chair Clarida speaking and the Eurozone Trade Balance 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 industrial shares in the region. I expect US stocks to open mixed and to rally into the afternoon, finishing modestly higher. The Portfolio is 75% net long heading into the day.

Stocks Higher into Final Hour on Stimulus Hopes, Short-Covering, Oil Gain, Alt Energy/Homebuilding Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Above Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 22.6 -10.0%
• Bloomberg Global Risk On/Risk Off Index 1,862.0 +282.0 points

• Euro/Yen Carry Return Index 132.0 +.33%

• Emerging Markets Currency Volatility(VXY) 10.7 +1.5%

• S&P 500 Implied Correlation 47.7 -3.1%

• ISE Sentiment Index 176.0 +61.0 points
  

• Total Put/Call .66 -15.4%

• NYSE Arms .74 +60.9%

Credit Investor Angst:

• North American Investment Grade CDS Index 5-.14 -3.34%
  

• US Energy High-Yield OAS 532.67 -1.71%

• European Financial Sector CDS Index 59.14 +1.98%

• Italian/German 10Y Yld Spread 108.0 -6.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 57.63 -.83%
  

• Emerging Market CDS Index 154.21 +.06%
  

• iBoxx Offshore RMB China Corporate High Yield Index 184.86 +.07%

• 2-Year Swap Spread 7.75 +.5 basis point

• TED Spread 15.5 -.75 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -2.25 -2.75 basis points
  
• MBS  5/10 Treasury Spread  67.5 -3.25 basis points
  
• IHS Markit CMBX BBB- 6 72.75 -.5 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 62.58 -.93%
• 3-Month T-Bill Yield .08% unch.
  

• Yield Curve 90.75 +.75 basis point
  

• China Iron Ore Spot 168.10 USD/Metric Tonne +3.24%

• Citi US Economic Surprise Index 64.20 +5.4 points

• Citi Eurozone Economic Surprise Index 166.40 -13.1 points
  

• Citi Emerging Markets Economic Surprise Index 70.20 -1.8 points

• 10-Year TIPS Spread 2.09 +5.0 basis points
• 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 +130 open in Japan 
• China A50 Futures: Indicating +122 open in China

• DAX Futures: Indicating +13 open in Germany

Portfolio:

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

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  

• Market Exposure: Moved to 75% Net Long

Bear Radar

Style Underperformer:

• Mid-Cap Value +.7%

Sector Underperformers:

• 1) Utilities -1.3% 2) Steel -1.1% 3) Defense -.6%

Stocks Falling on Unusual Volume: 

• LGIH, CAG, NVRO, BTBT, BBBY, FOX, PLCE, X, APAM, STOR, WLL, IIPR, CAG, ADS, DEA, PCVX. DEA, MRCY, UNFI, MSTG, NUVA, SRG, URBN, AYI, ECPG, PRAA  and MGNI
  

Stocks With Unusual Put Option Activity:

• 1) DDD 2) MGNI 3) VIAC 4) USB 5) LVS
  

Stocks With Most Negative News Mentions:

• 1) VNE 2) FLOW 3) TWTR 4) KO 5) AAL
  

Charts:

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