Mid-Day Market Internals

NYSE Composite Index:

• Volume Running -18.7% Below 100-Day Average 
• 6 Sectors Rising, 5 Sectors Declining
• 67.0% of Issues Advancing, 30.0% Declining
• 255 New 52-Week Highs, 10 New Lows
• 89.0% of Issues Above 200-day Moving Average
• Average 14-Day RSI 53.2%
  
• Bloomberg Global Risk-On/Risk-Off Index 3,266.0 +90.0 points
• Vix 16.9 +1.2%
• Total Put/Call .70 +2.9%
• TRIN/Arms .71 -39.3%

Wednesday Watch

Evening Headlines

Bloomberg:       

• Skyrocketing Metal Prices Threaten to Hinder EV Affordability.
• Asia Stocks Steady as U.S. Shrugs Off Inflation: Markets Wrap.
• Oil Rises on Signs of U.S. Inventory Drawdown, OPEC Bullishness.
• Inflation Discussion, BOE Hawk Departs, Back to Future: Eco Day.

Wall Street Journal:

• Mexico’s Televisa to Merge Content Business With Univision.
• Apple Schedules April 20 Event.
• Grab to Go Public in Record $40 Billion SPAC Merger.
• In Alabama, Black Amazon Workers Vote Their Economic Interest.
• The Shooting of Daunte Wright.
• Iran Says It Will Enrich Uranium Closer to Weapons-Grade Levels.

Fox News:

• Decision on charges in Wright death could come Wednesday, city braces for more violence.
• Pelosi, Biden, other Dems run from Tlaib 'no more policing' call.
  

CNBC.com: 

• Stitch Fix shares fall as company’s founder Katrina Lake steps down as CEO.
• Why one trader is ‘cautious’ on the Coinbase debut as bitcoin hits all-time high.

MarketWatch.com:     

• Opinion: Why Generation ‘I’ — YOLO investors who’ve never seen a bear market — should worry us all.  
• Used-car prices soar and the sticker shock may get worse .
  
• Opinion: GameStop’s stock price is down 50% from the highs — and it’s still crazy.

Zero Hedge:

• 'We Were Creating A Story -- Our Focus Was To Get Trump Out': CNN Director Busted By Undercover Veritas Operative.
• The 3 Nations Vying For Global LNG Dominance.
• China Threatens Retaliation Over Japan's Decision To Dump Radioactive Fukushima Waste Water.
• NCAA "Unequivocally Supports" Transgender Biological Male Participation In College Women's Sports.
• Coinbase Sets Reference Price At $250, Well Below Last Private Market Trade.
• Credit Suisse Still Not Done: Dumping Over 70 Million Shares Of Discovery And IQIYI.
• "There Is Significant Internal Weakness": Why The "Flight To Quality" In The Nasdaq Stinks.
• WTI Holds Gains Above $60 After Mixed Inventory Data.
• SPY Has Just Done Something It's Never Done Before.

Newsmax:

• Texas Sues Over Biden Scrapping Trump’s Stay-in-Mexico Rule.
  

TheGatewayPundit.com:

• Peter Navaro: Jerome Powell is “the Worst FED Chair in Modern History…That Is One Bad Dude on So Many Levels”.
• DEVELOPING: BLM Mob Forms Outside Brooklyn Center Police Department Chanting, “Whose Streets, Our Streets!” (VIDEO).
• Daunte Wright Had Warrant Out For His Arrest For Attempted Aggravated Robbery Charges After Choking a Woman, Holding Her at Gunpoint For Money.
• Oh Boy… Chauvin Trial Update: National Use-of-Force Expert Testifies Officer Chauvin DID NOT Use Deadly Force on George Floyd.
• Americans Aren’t Stupid: Most Americans Still Believe Democrats and Biden Cheated to Win 2020 Election.

The Epoch Times:

• China Closes Military Related Self-Media Accounts to Prevent Security Leaks.
• Hong Kong Epoch Times Vows to Never Give Up After Attack on Printing Press.

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 -.25% to +.75% on average.

• Asia Ex-Japan Investment Grade CDS Index 81.25 +8.75 basis points.

• China Sovereign CDS 39.25 +1.25 basis points.

• Bloomberg Emerging Markets Currency Index 60.60 +.05%.
• Bloomberg Global Risk-On/Risk Off Index 3,170.0 -6.0 points.
• Volatility Index(VIX) futures 20.5 +.33%.
• FTSE 100 futures +.02%.

• S&P 500 futures -.03%.

• NASDAQ 100 futures -.01%.

Morning Preview Links

Earnings of Note 
Company/Estimate 

 

Before the Open: 

• (BBBY/.31)
• (GS)/8.93
• (JPM)/2.94
• (WFC)/.65
  

After the Close:

• (SJR)/.34
  

Economic Releases

8:30 am EST

• The Import Price Index MoM for March is estimated to rise +.9% versus a +1.3% gain in Feb.
  

10:30 am EST

• Bloomberg consensus estimates call for a weekly crude oil inventory decline of -2,580,080 barrels versus a -3,522,000 barrel decline the prior week. Gasoline supplies are estimated to rise by +555,270 barrels versus a +4,044,000 barrel gain the prior week. Distillate inventories are estimated to rise by +1,510,000 barrels versus a +1,452,000 barrel gain the prior week. Finally, Refinery Utilization is estimated to rise by +.33% versus a +.1% gain prior.

2:00 pm EST 

• US Fed Beige Book release.
  

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The Fed's Powell speaking, Fed's Clarida speaking, Eurozone Industrial Production report and the MBA Mortgage Applications report could also impact global trading today.

US Equity Market Hours

• 9:30 am - 4:00 pm EST
  

BOTTOM LINE: Asian indices are mostly higher, boosted by technology and consumer shares in the region. I expect US stocks to open mixed and to rally into the afternoon, finishing modestly higher. The Portfolio is 100% net long heading into the day.

Stocks Rising into Final Hour on Sector Rotation, Oil Gain, Short-Covering, Tech/Biotech Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Mixed
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 16.7 -1.4%
• Bloomberg Global Risk On/Risk Off Index 3,131.0 +2.0 points

• Euro/Yen Carry Return Index 134.69 unch.

• Emerging Markets Currency Volatility(VXY) 10.2 -1.9%

• S&P 500 Implied Correlation 48.3 -.5%

• ISE Sentiment Index 147.0 +26.0 points
  

• Total Put/Call .66 -9.6%

• NYSE Arms 1.0 -15.3%

Credit Investor Angst:

• North American Investment Grade CDS Index 51.24 +.51%
  

• US Energy High-Yield OAS 460.68 +.78%

• European Financial Sector CDS Index 58.99 +.77%

• Italian/German 10Y Yld Spread 105.0 +2.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 80.67 +11.6%
  

• Emerging Market CDS Index 177.64 -.85%
  

• iBoxx Offshore RMB China Corporate High Yield Index 189.32 +.02%

• 2-Year Swap Spread 11.75 unch.

• TED Spread 17.25 -.75 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -3.5 -.25 basis point
  
• MBS  5/10 Treasury Spread  66.0 +.25 basis point
  
• IHS Markit CMBX BBB- 6 72.5 -.75 basis point
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 60.60 +.28%
• 3-Month T-Bill Yield .02% +1.0 basis point
  

• Yield Curve 152.0 +3.0 basis points
  

• China Iron Ore Spot 166.20 USD/Metric Tonne +.04%

• Citi US Economic Surprise Index 39.70 +4.3 points

• Citi Eurozone Economic Surprise Index 146.50 -3.6 points
  

• Citi Emerging Markets Economic Surprise Index 20.2 -2.8 points

• 10-Year TIPS Spread 2.33 unch.
• 94.4% chance of no change at June 16th meeting, 94.4% chance of no change at Sept. 22nd meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +83 open in Japan 
• China A50 Futures: Indicating +9 open in China

• DAX Futures: Indicating +29 open in Germany

Portfolio:

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

• Disclosed Trades: None
  

• Market Exposure: 100% Net Long
  

Bear Radar

 Style Underperformer:

• Small-Cap Value -1.0%

Sector Underperformers:

• 1) Steel -1.5% 2) Oil Service -1.3% 3) Banks -1.3%

Stocks Falling on Unusual Volume: 

• REVG, BXS, OSH, GSBD, BCAB, BALY, GBOX and AHCO
  

Stocks With Unusual Put Option Activity:

• 1) NUAN 2) CTSH 3) FAST 4) JNJ 5) SNCR
  

Stocks With Most Negative News Mentions:

• 1) AHCO 2) PLUG 3) EBIX 4) EH 5) CADE
  

Charts:

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

Bull Radar

Style Outperformer:

• Large-Cap Growth +1.0%

Sector Outperformers:

• 1) Gold & Silver +1.7% 2) Video Gaming +1.5% 3) Medical Equipment +1.2%

Stocks Rising on Unusual Volume:

• VNCR, PLBY, MSTR, ANGI, RIOT, IHRT, RILY, NVAX, MUDS, SUPN, INTZ, OSTK, RBLX, NET, ZNTL, SUMO, CGEM, LUNG, GRUB, TSLA, MRNA, IAC, ZM, IRTC, CRWD, OKTA, DDOG, NLS, PLAN, DOCU, CENX, DHR, NKTX, SSTK, OMP, PCT and MARA
  

Stocks With Unusual Call Option Activity:

• 1) CTSH 2) ISRG 3) DBC 4) WDAY 5) ITB

Stocks With Most Positive News Mentions:

• 1) DHR 2) NVDA 3) UGRO 4) BA 5) FDX
  

Charts:

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

Mid-Day Market Internals

NYSE Composite Index:

• Volume Running -25.3% Below 100-Day Average 
• 8 Sectors Rising, 3 Sectors Declining
• 39.5% of Issues Advancing, 56.9% Declining
• 150 New 52-Week Highs, 14 New Lows
• 88.5% of Issues Above 200-day Moving Average
• Average 14-Day RSI 53.4%
  
• Bloomberg Global Risk-On/Risk-Off Index 3,137.0 +8.0 points
• Vix 17.0 +.2%
• Total Put/Call .71 -2.7%
• TRIN/Arms .86 -27.1%