Morning Market Internals

NYSE Composite Index:

• Volume Running +27.5% Above 100-Day Average 
• 0 Sectors Rising, 11 Sectors Declining
• 13.0% of Issues Advancing, 83.7% Declining
• 31 New 52-Week Highs, 74 New Lows
• 87.6% of Issues Above 200-day Moving Average
• Average 14-Day RSI 55.4%
  
• Bloomberg Global Risk-On/Risk-Off Index 2,864.0 -204.0 points
• Vix 23.2 +18.2%
• Total Put/Call .78 -12.4%
• TRIN/Arms .78 -22.0%

Tuesday Watch

Evening Headlines

Bloomberg:                        

• Top India Stock Fund Warns of ‘Correction’ as Virus Runs Amok.
• Colonial Pipeline Reopens Section of Pipeline on ‘Limited’ Basis.  
• Asia Stocks Track U.S. Slide on Inflation Angst: Markets Wrap.
• Bali Closer to Vaccine Goal; New Malaysia Curbs: Virus Update.
• Gas Stations Running Dry as Hacked Pipeline Tries to Restart.
• CEO of Hacked Pipeline Company Warns States of Fuel Shortages.  
• Cathie Wood’s Ark ETF Sees 91% of Holdings Tumble in Tech Rout.
• Apple Faces U.K. Class Action for Overcharging 20 Million Users.  
• NBC Is Dropping Golden Globes After Criticism Over Diversity.  
• An Acid Squeeze Is the Latest Obstacle Facing Giant Copper Mines.
• Bitcoin ETF Approval Odds Grow Longer After Gensler Critique.  
• Rout Lands on Nasdaq Where Shorts Are Massing, Bulls Getting Out.

Wall Street Journal:

• Israel Strikes Hamas Targets After Rockets Fired at Jerusalem.
• Robert Mueller’s Revenge.
• States Urge Facebook to Abandon Plan for Children’s Instagram.
• The Fed Is Playing With Fire.
• California Governor Proposes Tripling Spending on Stimulus Checks.
• Kids’ Weight Gain in the Pandemic Is Alarming Doctors.

Fox News:

• MacCallum spars with teachers union president over critical race theory.
• Microsoft co-founder wasn't 'choir boy,' liked 'naked parties' in early days.

CNBC.com:

• FDA permits use of the Pfizer-BioNTech Covid vaccine in kids ages 12 to 15.
• WHO classifies triple-mutant Covid variant from India as global health risk.
• Cloud stocks plunge to six-month low as investors hasten rotation out of recent top performers.
• Cathie Wood’s ARK Innovation ETF falls to new low for the year, off nearly 35% from recent high.

MarketWatch.com:        

• Roblox stock pares regular-session losses following first public earnings.

Zero Hedge:

• 71% Of Eligible Gen-Zers Don't Qualify For Military Due To Obesity, Criminal Records And Other Reasons.
• It's Official: McCarthy Sets Wednesday Vote For Liz Cheney Ouster.
• US Ship Fires 30 Warning Shots After 13 Iranian IRGC Boats Approach Fleet.
• Shocking Chart Shows Most Workers Now Make More On Unemployment Than From Their Jobs.
• Watch: Blaze Erupted On Temple Mount As Jerusalem Unrest Intensifies
• COVID-19 Rewired Our Brains.
• "Leadership Is Shifting": Goldman Says Business Sentiment, Job Growth And QE Have Peaked - What Happens Next.
• "This Must Stop!" One Father's Fight Against Pervasive Entrenchment Of Critical Race Theory In America's Schools.
• Amazon Bond Offering Upsized To $18.5BN, Its Largest Ever, Ahead Of Buyback Frenzy
• Crypto Markets Just Got Monkeyhammered.
• Tech Wrecks, Ether Erupts, Commodities Crumble As Dollar Gives Up 2021 Gains.

Newsmax:  

• Sen. Rick Scott: Biden's Agenda to Blame For Low Jobs Report.
• Mick Mulvaney: Biden's Spending, Tax Plans 'Very Dangerous'.
  

TheGatewayPundit.com:

• And There It Is… AG Bill Barr Threatened to Quit Over Trump’s Attempts to Fire Chris Wray.
• “This is a Private Sector Decision” – WH Officials Say They Have Not Offered Advice to Colonial Pipeline on Whether to Pay Ransom to Hackers (VIDEO).
• Joe Biden Claims Workers Aren’t Being Paid to Stay Home, Gets Confused, Then Says the Exact Opposite (VIDEO).
• NEW: Man Who Shot Three Random People in Times Square in Broad Daylight Identified as Farrakhan Muhammad.

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 -1.25% to -.5% on average.

• Asia Ex-Japan Investment Grade CDS Index 79.0 unch.

• China Sovereign CDS 36.0 unch..

• Bloomberg Emerging Markets Currency Index 61.53 -.02%.
• Bloomberg Global Risk-On/Risk Off Index 3,046.0 -22.0 points.
• Volatility Index(VIX) futures 21.35 +.01%.
• FTSE 100 futures -.89%.

• S&P 500 futures -.14%.

• NASDAQ 100 futures -.28%.

Morning Preview Links

Earnings of Note 
Company/Estimate 

 

Before the Open: 

• (HBI)/.26
• (IGT)/-.01
• (PRGO)/.57
• (TDG)/2.54
  

After the Close:

• (BGS)/.57
• (COHR)/1.14
• (EA)/1.05
• (LMND)/-1.25
• (QS)/-.06
  

Economic Releases

6:00 am EST

• The NFIB Small Business Optimism Index for April is estimated to rise to 101.0 versus 98.2 in March.
  

10:00 am EST

• JOLTS Job Openings for March is estimated to rise to 7500K versus 7367K in Feb.

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The Fed's Brainard speaking, German ZEW Index, weekly US retail sales report, 3Y T-Note auction, BofA Healthcare Conference, Citi Energy/Utilities Conference, Goldman Industrials/Materials Conference, (LSCC) investor day and the (HBI) investor day could also impact global trading today.

US Equity Market Hours

• 9:30 am - 4:00 pm EST
  

BOTTOM LINE: Asian indices are modestly lower, weighed down by consumer and technology 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 Falling into Afternoon on Rising Inflation Worries, Escalating Mid-East Tensions, Less Dovish Fed Commentary, Alt Energy/Tech Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Mixed
  

• Volume: Around Average

• Market Leading Stocks: Underperforming
  

Equity Investor Angst:

• Volatility(VIX) 18.0 +7.6%
• Bloomberg Global Risk On/Risk Off Index 3,214.0 -61.0 points

• Euro/Yen Carry Return Index 136.70 +.17%

• Emerging Markets Currency Volatility(VXY) 9.4 +1.4%

• S&P 500 Implied Correlation 51.0 +.5%

• ISE Sentiment Index 108.0 -8.0 points
  

• Total Put/Call .78 -7.1%

• NYSE Arms .83 +1.2%

Credit Investor Angst:

• North American Investment Grade CDS Index 50.6 +.1%
  

• US Energy High-Yield OAS 426.36 -.51%

• European Financial Sector CDS Index 59.74 -.07%

• Italian/German 10Y Yld Spread 115.0 -3.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 78.55 -1.18%
  

• Emerging Market CDS Index 157.384 +.17%
  

• China Corp. High-Yield Bond USD ETF(KCCB) 39.40 +.06%

• 2-Year Swap Spread 9.75 -.75 basis point

• TED Spread 15.5 +.25 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -1.75 +.75 basis point
  
• MBS  5/10 Treasury Spread  61.75 -1.25 basis points
  
• IHS Markit CMBX BBB- 6 71.75 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 61.55 +.11%
• 3-Month T-Bill Yield .01% unch.
  

• Yield Curve 145.0 +4.0 basis points
  

• China Iron Ore Spot 215.45 USD/Metric Tonne +5.5%

• Citi US Economic Surprise Index 20.7 +1.5 points

• Citi Eurozone Economic Surprise Index 161.20 -1.1 points
  

• Citi Emerging Markets Economic Surprise Index 61.20 -1.5 points

• 10-Year TIPS Spread 2.55 +5.0 basis points
• 93.0% chance of no change at Sept. 22nd meeting, 93.0% chance of no change at Nov. 3rd meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -133 open in Japan 
• China A50 Futures: Indicating -119 open in China

• DAX Futures: Indicating -77 open in Germany

Portfolio:

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

• Disclosed Trades:  Added to my (IWM)/(QQQ) hedges and to my emerging market shorts
  

• Market Exposure: Moved to 50% Net Long
  

Bear Radar

Style Underperformer:

• Small-Cap Growth -1.9%

Sector Underperformers:

• 1) Alt Energy -4.5% 2) Semis 3.6% 3) Social Media -3.2%

Stocks Falling on Unusual Volume: 

• BYND, USFD, PODD, AVID, DBD, SVC, DKNG, QRVO, INSP, SCPL, KOD, PCT, RVLV, INSM, TTD and REKR
  

Stocks With Unusual Put Option Activity:

• 1) EA 2) ASHR 3) MGI 4) BGFV 5) NLS
  

Stocks With Most Negative News Mentions:

• 1) CAN 2) RIDE 3) EBON 4) DDD 5) GOOG
  

Charts:

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

Bull Radar

Style Outperformer:

• Large-Cap Value +.7%

Sector Outperformers:

• 1) Shipping +3.4% 2) Steel +2.6% 3) Telecom +1.8%

Stocks Rising on Unusual Volume:

• CUE, SOLY, TMST, LPI, BGFV, TEN, HRTX, BCC, VTRS, HEAR, W, LL, CCXI, BCEI, SCCO, CPE, HZO, QRTEA, FSLY, GATO, NUE, DUK, PTON, IHRT, X, AFRM, LZB and RUTH
  

Stocks With Unusual Call Option Activity:

• 1) WU 2) PRTY 3) LYV 4) DUK 5) XLI

Stocks With Most Positive News Mentions:

• 1) PRTY 2) TGLS 3) DTRS 4) DFFN 5) MTZ
  

Charts:

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

Mid-Day Market Internals

NYSE Composite Index:

• Volume Running -5.8% Below 100-Day Average 
• 8 Sectors Rising, 3 Sectors Declining
• 50.3% of Issues Advancing, 46.2% Declining
• 636 New 52-Week Highs, 35 New Lows
• 88.4% of Issues Above 200-day Moving Average
• Average 14-Day RSI 56.8%
  
• Bloomberg Global Risk-On/Risk-Off Index 3,244.0 -34.0 points
• Vix 17.4 +4.3%
• Total Put/Call .78 -7.1%
• TRIN/Arms .98 +19.5%