Bear Radar

Style Underperformer:

• Large-Cap Growth -.1%

Sector Underperformers:

• 1) Medical Equipment -1.2% 2) Pharma -1.0% 3) Utilities -.8%

Stocks Falling on Unusual Volume: 

• VRM, BGS, PSAC, IIPR, AMBA, NOVA, SCHN, THCB, THS, LMND, SO, QELL, LLY, NVRO, LSXMK, RIDE, DDS, GNMK, SLP, ICPT, ATOM, SSYS, DDD and BDTX
  

Stocks With Unusual Put Option Activity:

• 1) ICLN 2) O 3) FOLD 4) EPD 5) WW
  

Stocks With Most Negative News Mentions:

• 1) IQ 2) BSX 3) LL 4) GRWG 5) TWTR
  

Charts:

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

Bull Radar

Style Outperformer:

• Small-Cap Value +1.6%

Sector Outperformers:

• 1) Oil Service +5.8% 2) Steel +2.7% 3) Retail +2.6%

Stocks Rising on Unusual Volume:

• VOXX, INOV, DMTK, FUBO, TREE, PLUG, MP, ETSY, AOSL, QTRX, MARA, PRVB, NGA, CCIV, APXT, GBIO, GES, USCR, ALDX, WW, UBER, STPK, X, STTK, STAA, BLUE, QS, GM, GSAH and SKLZ
  

Stocks With Unusual Call Option Activity:

• 1) O 2) ICLN 3) ACIA 4) FOLD 5) WW

Stocks With Most Positive News Mentions:

• 1) FUBO 2) F 3) CTRN 4) ZS 5) AFL
  

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running +19.1% Above 100-Day Average 
• 5 Sectors Rising, 6 Sectors Declining
• 63.4% of Issues Advancing, 34.0% Declining
• 266 New 52-Week Highs, 8 New Lows
• 84.2% of Issues Above 200-day Moving Average
• Average 14-Day RSI 53.2% 
• Bloomberg Global Risk-On/Risk-Off Index 2,069.0 +167.0 points
• Vix 23.3 -3.1%
• Total Put/Call .58 -26.6%
• TRIN/Arms .58 -6.5%

Tuesday Watch

Evening Headlines

Bloomberg:        

• China Stocks Slump Most in Three Weeks on Valuation Concerns.  
• China’s Record $30 Billion Bond Defaults Seen Rising This Year.
• WHO Set to Begin China Trip; Malaysia Lockdown: Virus Update   
• As Polar Vortex Stirs, Deep Freeze Threatens U.S. and Europe.  
• Morgan Stanley Abandons Weak Dollar Call on Shift in U.S. Rates.  
• Asia Stocks Mixed After U.S. Drop; Dollar Steady: Markets Wrap.  
• Oil Steady Near $52 With IEA Signaling Possible U.S. Shale Boost.  
• China Trade War Win, Biden’s Trillions, Hot Planet GDP: Eco Day.
• Trump and Pence Signal President Won’t Resign or Be Removed.  
• Former Democratic Leader Daschle Warns Against Trump Impeachment.
• Trump Issues Emergency Declaration for Event: Inaugural Update.
• Verizon Teams Up With UPS to Deliver Packages With 5G Drones.  
• Democrats to Introduce Bill to Ban Federal Death Penalty.  
• Parler Sues Amazon Over Removal From Servers After Protest.   
• Fed Officials See Strong U.S. Rebound, Fanning Talk of Taper.  
• PayPal Blocks Website That Helped Send Protesters to Capitol.

Wall Street Journal:

• U.S. Stocks Finish Lower on New Risks.
• House Plans Impeachment Vote on Trump for Wednesday.
• Why I’m Taking a Social-Media Sabbatical.
• National Guard Bolsters D.C. Troop Levels to at Least 10,000.
• More Companies Halt Political Donations. 
• TikTok, Discord Are the New Wall Street Trading Desks.
• January Virus Surge Keeps School Schedules in Flux.

Fox News:    

• Cuomo's tone on COVID lockdowns shifts in big way.
• Why one ex-White House press secretary believes Big Tech's attempts to cancel Trump will backfire.
• Bill Belichick declines to accept Medal of Freedom, citing riots.

CNBC.com:

• $150 billion wiped off cryptocurrency market in 24 hours as bitcoin pulls back.

MarketWatch.com:       

• No more Marriott money for Ted Cruz, Josh Hawley or any Senate Republican who voted against certifying Joe Biden’s election.
  
• Walmart to launch fintech company with Robinhood, Affirm backer.

Zero Hedge:

• Germany And France 'Shocked' Over Twitter Decision To Ban Trump.
• The COVID Depression And "Food Insecurity".
• Supreme Court To Take A Second Look At Case Involving "Insider Trading" On Government Healthcare Tip.
• Air Force Brass Order Removal Of All Offensive, Non-Inclusive Patches, Mottos And Emblems.
• Socialists Claim Their System Is Morally Superior. They're Wrong!
• Taibbi: We Need A New Media System.
• Goldman Warns Of "Short Term Indigestion" In Stocks, Expects European Double-Dip On Mutant Virus Surge.
• "Very Incriminating": Hacker Archives Every Deleted Parler Post.
• WHO Warns Herd Immunity Won't Bring World "Back To Normal" Quickly.
• LA Converts Dodgers Stadium To Vaccination Center As 3 California Gorillas Test Positive For COVID.
• A Nursing Home Had Zero COVID Deaths. Then, It Vaccinates Residents And The Deaths Begin.
• The "Crisis" Is Corporate Liberal Authoritarianism.
• Bitcoin Bloodbaths, Big-Tech Battered As Buck Bounce-Back Builds.

Newsmax:

• Facebook Has 'No Plans' to End Trump Ban; Platform Cracks Down on 'Stop the Steal'.
  

TheGatewayPundit.com:

• DISSENT IS NOT ALLOWED: Twitter Will No Longer Allow Any Questioning of Fraudulent Election …Updated.
• WARNING: DO NOT ATTEND Armed Protests at State Capitols Before Inauguration! – POSSIBLE SINISTER PLOT HATCHED BY RADICAL LEFT TO TAKE AWAY GUN RIGHTS!
• Texas Lawmakers Consider Secession Over Life Under Democrat Marxism — Several States Interested in Movement (Video).
• Pelosi and Schumer Accused Trump of Turning DC Into ‘Oppressive Militarized Zone’ After Antifa and Black Lives Matter Insurrectionists Torched City, Tried to Storm White House Last Year.
• Democrats Are Drafting Legislation to Criminalize Trump Rallies — Classify Them as “Domestic Terrorism”.
• ‘A Terrorist is a Terrorist’ – Democrat House Homeland Security Chair Wants GOP Senators Ted Cruz and Josh Hawley on Federal No-Fly List (AUDIO).
• Sick Of Communist-Like Censorship? Here’s A List Of Popular Uncensored Media Options.
• Biden Mocked Trump for ‘Hiding in His Bunker’ After Antifa and Black Lives Matter Insurrectionists Tried to Storm the White House Last Year, Injuring Dozens of Cops.
• North Idaho Internet Provider Stands Up to Big Tech, Blocks Facebook and Twitter on its Service For Some Customers.
• As President Trump Attempts to Protect the US from Foreign Entities – Democrats, Big Tech, Big Media and Big Finance Are Aligning with These Entities Against President Trump.

The Epoch Times: 

• Investigator of China’s Forced Organ Harvesting Wins First Global Humanitarian Leader Award.
• China Develops Helmets for Soldiers With Self-Destruct Button: Report.
• Chinese City Bracing for Dire COVID-19 Surge During Lunar New Year: Leaked Documents.

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 60.75 +3.75 basis points.

• China Sovereign CDS 30.0 +.25 basis point.

• Bloomberg Emerging Markets Currency Index 62.0 -.08%.
• Bloomberg Global Risk-On/Risk Off Index 1,963.0 +60.0 points.
• Volatility Index(VIX) futures 25.9 -1.05%.
• FTSE 100 futures -.03%.

• S&P 500 futures +.03%.

• NASDAQ 100 futures +.08%.

Morning Preview Links

Earnings of Note 
Company/Estimate 

 

Before the Open: 

• (ACI)/.28
  

After the Close:

•  (KBH)/.93
  

Economic Releases

6:00 am EST

• Small Business Optimism for Dec. is estimated to fall to 100.2 versus 101.4 in Nov.
  

10:00 am EST

• JOLTS Job Openings for Nov. is estimated to fall to 6400 versus 6652 in Oct .

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The Fed's Brainard speaking, UK Trade Balance report, $38B 10Y T-Note auction, US weekly retail sales reports, UBS Infrastructure/Energy Conference, JPMorgan Tech/Auto Forum at CES and the Goldman Tech/Internet Conference 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 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 day.

Stocks Lower into Final Hour on Divisive Political Rhetoric/Actions, Free Speech Worries, Valuation Concerns, Tech/Telecom Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Mixed
  

• Volume: Around Average

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 24.1 +11.8%
• Bloomberg Global Risk On/Risk Off Index 1,895.0 -160.0 points

• Euro/Yen Carry Return Index 131.14 -.34%

• Emerging Markets Currency Volatility(VXY) 10.92 +2.6%

• S&P 500 Implied Correlation 48.5 +3.2%

• ISE Sentiment Index 100.0 -9.0 points
  

• Total Put/Call .73 +1.4%

• NYSE Arms .56 -52.1%

Credit Investor Angst:

• North American Investment Grade CDS Index 50.77 +2.22%
  

• US Energy High-Yield OAS 510.67 -.15%

• European Financial Sector CDS Index 59.90 +2.94%

• Italian/German 10Y Yld Spread 106.0 +1.0 basis point
  

• Asia Ex-Japan Investment Grade CDS Index 59.58 +3.62%
  

• Emerging Market CDS Index 161.90 +5.31%
  

• iBoxx Offshore RMB China Corporate High Yield Index 184.88 +.06%

• 2-Year Swap Spread 7.25 -.5 basis point

• TED Spread 15.5 +1.0 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -4.75 -1.5 basis points
  
• MBS  5/10 Treasury Spread  69.75 +1.75 basis points
  
• IHS Markit CMBX BBB- 6 73.25 -.5 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 62.11 -.72%
• 3-Month T-Bill Yield .08% unch.
  

• Yield Curve 96.0 unch.
  

• China Iron Ore Spot 164.80 USD/Metric Tonne -1.5%

• Citi US Economic Surprise Index 60.0 -2.4 points

• Citi Eurozone Economic Surprise Index 167.20 -4.0 points
  

• Citi Emerging Markets Economic Surprise Index 65.70 -3.3 points

• 10-Year TIPS Spread 2.06 +2.0 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 -100 open in Japan 
• China A50 Futures: Indicating -52 open in China

• DAX Futures: Indicating -23 open in Germany

Portfolio:

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

• Disclosed Trades: None
  

• Market Exposure: 50% Net Long
  

Mid-Day Market Internals

NYSE Composite Index:

• Volume Running -.6% Below 100-Day Average 
• 5 Sectors Rising, 6 Sectors Declining
• 37.6% of Issues Advancing, 63.0% Declining
• 132 New 52-Week Highs, 4 New Lows
• 85.1% of Issues Above 200-day Moving Average
• Average 14-Day RSI 54.0% 
• Bloomberg Global Risk-On/Risk-Off Index 1,924.0 -130.0 points
• Vix 23.6 +9.3%
• Total Put/Call .75 +4.2%
• TRIN/Arms .59 -48.7%