Morning Market Internals

NYSE Composite Index:

• Volume Running -10.8% Below 100-Day Average 
• 4 Sectors Rising, 7 Sector Declining
• 25.5% of Issues Advancing, 71.1% Declining
• 156 New 52-Week Highs, 32 New Lows
• 88.8% of Issues Above 200-day Moving Average
• Average 14-Day RSI 53.5%
  
• Bloomberg Global Risk-On/Risk-Off Index 3,053.0 -223.0 points
• Vix 19.0 +10.0%
• Total Put/Call .81 -10.0%
• TRIN/Arms 1.36 +79.0%

Tuesday Watch

Night Trading 

• Asian equity indices are -1.25% to -.25% on average.

• Asia Ex-Japan Investment Grade CDS Index 75.25 -3.5 basis points.

• China Sovereign CDS 36.25 -1.75 basis points.

• Bloomberg Emerging Markets Currency Index 61.07 unch.
• Bloomberg Global Risk-On/Risk Off Index 3,265.0 -6.0 points.
• Volatility Index(VIX) futures 20.55 -.73%.
• FTSE 100 futures -.08%.

• S&P 500 futures +.18%.

• NASDAQ 100 futures +.18%.

Morning Preview Links

Earnings of Note 
Company/Estimate 

 

Before the Open: 

• (ABT)/1.27
• (AN)/1.82
• (BMI)/.42
• (CMA)/1.38
• (FITB)/.68
• (HTLD)/.21
• (JNJ)/2.33
• (KEY)/.47
• (LMT)/6.32
• (MAN)/.67
• (NTRS)/1.49
• (OMC)/1.12
• (PM)/1.40
• (PG)/1.20
• (TRV)/3.01
  

After the Close:

• (CSX)/.98
• (EW)/.48
• (IBKR)/.75
• (ISRG)/2.66
• (NFLX)/2.94
• (THC)/.69

Economic Releases

• None of note
  

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The China rate decision, German GFK Consumer Confidence report weekly US retail sales reports, (AAPL) special event and the (AAP) analyst update could also impact global trading today.

US Equity Market Hours

• 9:30 am - 4:00 pm EST
  

BOTTOM LINE: Asian indices are mostly lower, weighed down by technology and industrial shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing mixed. The Portfolio is 75% net long heading into the day.

Stocks Lower into Final Hour on Virus Variant Worries, Escalating Russia/Ukraine Tensions, Valuation Concerns Tech/Alt Energy Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Almost Every Sector Declining
  

• Volume: Below Average

• Market Leading Stocks: Underperforming
  

Equity Investor Angst:

• Volatility(VIX) 167.9 +10.2%
• Bloomberg Global Risk On/Risk Off Index 3,235.0 -68.0 points

• Euro/Yen Carry Return Index 134.51 -.2%

• Emerging Markets Currency Volatility(VXY) 9.92 -.3%

• S&P 500 Implied Correlation 48.7 -2.0%

• ISE Sentiment Index 81.0 -25.0 points
  

• Total Put/Call .87 +10.1%

• NYSE Arms .82 +39.0%

Credit Investor Angst:

• North American Investment Grade CDS Index 50.72 +.93%
  

• US Energy High-Yield OAS 449.0 -.01%

• European Financial Sector CDS Index 58.10 +1.0%

• Italian/German 10Y Yld Spread 101.0 unch.
  

• Asia Ex-Japan Investment Grade CDS Index 75.5 -8.3%
  

• Emerging Market CDS Index 163.47 +1.3%
  

• China Corp. High-Yield Bond USD ETF 39.08 unch.

• 2-Year Swap Spread 11.5 -.25 basis point

• TED Spread 17.75 -.25 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -3.25 unch.
  
• MBS  5/10 Treasury Spread  66.25 +.5 basis point
  
• IHS Markit CMBX BBB- 6 72.25 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 61.07 +.05%
• 3-Month T-Bill Yield .02% +1.0 basis point
  

• Yield Curve 141.0 -1.0 basis point
  

• China Iron Ore Spot 178.25 USD/Metric Tonne +3.7%

• Citi US Economic Surprise Index 35.50 -5.7 points

• Citi Eurozone Economic Surprise Index 136.20 -5.5 points
  

• Citi Emerging Markets Economic Surprise Index 35.3 -1.5 points

• 10-Year TIPS Spread 2.36 -1.0 basis point
• 90.1% chance of no change at June 16th meeting, 90.1% chance of no change at Sept. 22nd meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -345 open in Japan 
• China A50 Futures: Indicating -183 open in China

• DAX Futures: Indicating +20 open in Germany

Portfolio:

• Slightly Lower: On losses in my tech/biotech/industrial sector longs
  

• Disclosed Trades: None
  

• Market Exposure: 75% Net Long
  

Bear Radar

 Style Underperformer:

• Small-Cap Growth -2.4%

Sector Underperformers:

• 1) Alt Energy -4.4% 2) Semis -3.0% 3) Disk Drives -2.2%

Stocks Falling on Unusual Volume: 

• PAR, LSCC, WBS, VCEL, PGNY, CLM, OPEN, CRF, UCTT, HRZN, TTCF, SKLZ, PTON, PLBY, EBS, MLHR, INTZ and HAE
  

Stocks With Unusual Put Option Activity:

• 1) CDEV 2) XLY 3) DISCK 4) HOG 5) ABT
  

Stocks With Most Negative News Mentions:

• 1) PTON 2) RIDE 3) EH 4) DDD 5) CAN
  

Charts:

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

Bull Radar

Style Outperformer:

• Large-Cap Value -.5%

Sector Outperformers:

• 1) Shipping +2.8% 2) Paper +.5% 3) Pharma +.3%

Stocks Rising on Unusual Volume:

• KNL, CRCT, HOG, PETQ, HONE, CLNE, GNK, LTHM, STL, EVLO, TPGY, VVV, AEO, VMW and RAD
  

Stocks With Unusual Call Option Activity:

• 1) FLEX 2) DISCK 3) DRI 4) CLNE 5) GT

Stocks With Most Positive News Mentions:

• 1) HOG 2) CLNE 3) KNL 4) ALB 5) LTHM
  

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running -23.7% Below 100-Day Average 
• 3 Sectors Rising, 8 Sector Declining
• 28.3% of Issues Advancing, 67.7% Declining
• 188 New 52-Week Highs, 24 New Lows
• 89.7% of Issues Above 200-day Moving Average
• Average 14-Day RSI 55.5%
  
• Bloomberg Global Risk-On/Risk-Off Index 3,248.0 -55.0 points
• Vix 17.7 +8.8%
• Total Put/Call .82 +3.8%
• TRIN/Arms .95 +61.0%