Bull Radar

Style Outperformer:

• Large-Cap Value -1.2%

Sector Outperformers:

• 1) Oil Service +2.2% 2) Energy +2.0% 3) Pharma +.4%

Stocks Rising on Unusual Volume:

• CRIS, SNDX, CVI, LQDT, FUBO, NLOK, UPST, HLI, PSTH and BSY
  

Stocks With Unusual Call Option Activity:

• 1) EWJ 2) SOXS 3) ALL 4) NLOK 5) CRIS

Stocks With Most Positive News Mentions:

• 1) FUBO 2) NLOK 3) BCRX 4) LEXX 5) MESA
  

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running -11.0% Below 100-Day Average 
• 2 Sectors Rising, 9 Sectors Declining
• 24.7% of Issues Advancing, 71.3% Declining
• 51 New 52-Week Highs, 28 New Lows
• 86.7% of Issues Above 200-day Moving Average
• Average 14-Day RSI 52.3%
  
• Bloomberg Global Risk-On/Risk-Off Index 2,862.0 -40.0 points
• Vix 24.0 +10.0%
• Total Put/Call .91 -7.1%
• TRIN/Arms .66 -1.5%

Wednesday Watch

Evening Headlines

Bloomberg:               

• Israel Vows Harsher Gaza Attacks as Sides Draw Nearer to War.
• Inside the Secretive Swiss Bank for the World’s Richest People.
• U.S. Equity Futures Dip, Asia Set for Weak Open: Markets Wrap.
• Oil Edges Higher With Weak Dollar Offsetting Refiner Run Cuts.  
• April ‘Head-Scratcher,’ Inflation Brewing, Japan Spends: Eco Day.  
• Gas Flowing 5 MPH Will Take Two Weeks to Reach New York Once Pipeline Is Reopened.  
• Colonial Faces Day of Reckoning Amid Expanding Gasoline Crisis.
• Gasoline Shortages Across the U.S. East Are Creeping Northward.  
• U.S. Gulf Coast Refineries May Cut Output Due to Colonial Outage.  
• Why Lumber Remains King in American Homes Despite a 300% Surge.  
• Bezos Wraps Up His Latest Amazon Stock Sales for $6.7 Billion.  
• Tech Stock Rout Represents Opportunity, Vindication, Regret for Retail Traders.  
• The Options Market May Be Fueling the Turbulence in Tech Shares.

Wall Street Journal:

• Job Openings Reach Record as Hiring Slows.
• Americans Up and Moved During the Pandemic. Here’s Where They Went.
• Credit-Card Debt Keeps Falling. That’s a Problem for Banks.
• Xi Jinping’s Achilles Heel.
• Hamas Tests Israel—and Biden.
• Colonial Pipeline Hack Shows Ransomware Emergence as Industrial-Scale Threat.
• Google Plans to Double AI Ethics Research Staff.

Fox News:

• Israel mobilizes 5,000 reserve soldiers as Egypt trying to broker cease-fire with Gaza militants.
  

CNBC.com:

• Spot gas shortages could worsen if Colonial Pipeline doesn’t reopen by the weekend.
• As the U.S. economy restarts from the pandemic, parts are severely broken.
• Stanley Druckenmiller says the Fed is endangering the dollar’s global reserve status.
• Abbott’s CEO says it has a team of ‘virus hunters’ to stay on top of new Covid variants.
• Stocks making the biggest moves after hours: fuboTV, Opendoor Technologies, Electronic Arts & more.

MarketWatch.com:       

• Dogecoin copycats are driving up Ethereum fees and vexing parts of the crypto community.

Zero Hedge:

• "His Womanizing Was Well Known": Flood-'Gates' Open As Biographer Details Microsoft Founder's Salacious Past.
• "Lines Down The Street" - People Wait Five Hours To Fill Up Amid Gas Shortages.
• Professor Explains Flaw In Many Models Used For COVID-19 Lockdown Policies.
• Hedge Funds Descend On Puerto Rico As Biden Tax Threat Looms.
• "I Hope We All Survive It" - Dave Chappelle Warns About Cancel Culture.
• NYT Calls Out CDC Over Disingenuous COVID Guidance.
• Dissenters, Unite!
• All Hell Breaks Loose: Hamas Fires 130 Rockets On Tel Aviv, Israel Collapses 13-Story Building In Gaza.
• The Psychology Of QE Is Far More Important Than The Amount Of It.
• WTI Dips After Big Surprise Build In Gasoline Inventory.
• The Worker Shortage In New Jersey Is Getting Ridiculous.
• Satellite Imagery Captures Thousands Of Unfinished Ford Trucks Stashed At Kentucky Speedway.
• Big-Tech Bloodbath Continues After Biggest Sell-Program In History.

Newsmax: 

• Biden Facing Bipartisan Blowback Over Mideast Flareup.
  

TheGatewayPundit.com:

• Rand Paul is Right! There is Ample Evidence that Dr. Fauci Supported COVID-19 Research In China – As Gateway Pundit Has Reported Since LAST MAY.
• Rand Paul Rips Into Dr. Fauci About Funding the Wuhan Virology Institute Lab – Arrogant Fauci Hits Back! (VIDEO).
• Gov. DeSantis Leads the Way: “These Kids Do Not Need to Be Wearing Masks… We Need to Let Them Be Kids and Let Them Act Normally” (VIDEO).
• FLASHBACK: CDC Uses Faulty COVID Transmission Data to Push for Mail-in Voting in Attempt to Get Rid of Trump.
• It’s Only Been 4 Months: Keystone Pipeline is Shut Down, Gas Prices Are Highest in 6 Years, Gas Stations Are Out of Gas, And Gas Lines in Several States – Nice Work, Joe!
• Bombshell Report Reveals CDC Risk of Covid Transmission Outdoors Greatly Exaggerated.

The Epoch Times: 

• Beijing’s Solar Panel Plan Plunges Chinese Farmers Into Heavy Debt. 
• The CCP’s Economic Coercion Tactics Against Australia Meet Its Waterloo.

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 +.5% on average.

• Asia Ex-Japan Investment Grade CDS Index 79.75 +.75 basis point.

• China Sovereign CDS 37.0 +1.0 basis point.

• Bloomberg Emerging Markets Currency Index 61.52 -.02%.
• Bloomberg Global Risk-On/Risk Off Index 2,857.0 -53.0 points.
• Volatility Index(VIX) futures 22.88 +.14%.
• FTSE 100 futures +.4%.

• S&P 500 futures -.04%.

• NASDAQ 100 futures -.12%.

Morning Preview Links

Earnings of Note 
Company/Estimate 

 

Before the Open: 

• (LITE)/1.40
• (TSEM)/.31
• (WEN)/.14
• (WWW)/.38
  

After the Close:

• (DOX)/1.13
• (BOOT)/.43
• (JACK)/1.25
• (PAAS)/.50
  

Economic Releases

8:30 am EST

• The CPI MoM for April is estimated to rise +.2% versus a +.6% gain in March.
• The CPI Ex Food and Energy MoM for April is estimated to rise +.3% versus a +.3% gain in March.
• Real Average Weekly Earnings YoY for April.
  

10:30 am EST

• Bloomberg consensus estimates call for a weekly crude oil inventory decline of -2,142,000 barrels versus a -7,990,000 barrel decline the prior week. Gasoline supplies are estimated to rise by +152,630 barrels versus a +737,000 barrel gain the prior week. Distillate inventories are estimated to fall by -1,545,630 barrels versus a -2,896,000 barrel decline the prior week. Finally, Refinery Utilization is estimated to rise by +.16% versus a +1.1% gain prior.

2:00 pm EST

• The Monthly Budget Deficit for April is estimated at -$207.9B versus -$738.0B in March.

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The Fed's Clarida speaking, UK GDP report, German Inflation data report, 10Y T-note outlook, weekly MBA Mortgage Applications report and the Citi Car of teh Future Symposium 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 consumer and technology shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing mixed. The Portfolio is 50% net long heading into the day.

Stocks Substantially Lower into Final Hour on Inflation Worries, Rising Mid-East Tensions, Technical Selling, Homebuilding/Energy Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Abvove Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 21.5 +9.6%
• Bloomberg Global Risk On/Risk Off Index 2,958.0 -110.0 points

• Euro/Yen Carry Return Index 136.50 +.04%

• Emerging Markets Currency Volatility(VXY) 9.3 -.4%

• S&P 500 Implied Correlation 54.0 +1.0%

• ISE Sentiment Index 102.0 +5.0 points
  

• Total Put/Call 1.01 +13.5%

• NYSE Arms .49 -51.0%

Credit Investor Angst:

• North American Investment Grade CDS Index 52.3 +1.2%
  

• US Energy High-Yield OAS 429.79 +.92%

• European Financial Sector CDS Index 60.93 +2.06%

• Italian/German 10Y Yld Spread 115.0 unch.
  

• Asia Ex-Japan Investment Grade CDS Index 79.66 +1.2%
  

• Emerging Market CDS Index 159.77 +1.4%
  

• China Corp. High-Yield Bond USD ETF(KCCB) 39.36 +.15%

• 2-Year Swap Spread 9.5 -.25 basis point

• TED Spread 15.5 unch.
  

• 3-Month EUR/USD Cross-Currency Basis Swap -2.0 -.25 basis point
  
• MBS  5/10 Treasury Spread  63.5 -1.75 basis points
  
• IHS Markit CMBX BBB- 6 71.75 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 61.52 -.04%
• 3-Month T-Bill Yield .01% unch.
  

• Yield Curve 144.0 -1.0 basis point
  

• China Iron Ore Spot 220.95 USD/Metric Tonne +3.1%

• Citi US Economic Surprise Index 19.4 -1.3 points

• Citi Eurozone Economic Surprise Index 165.60 +4.4 points
  

• Citi Emerging Markets Economic Surprise Index 62.80 +1.6 points

• 10-Year TIPS Spread 2.54 -1.0 basis point
• 91.0% chance of no change at Sept. 22nd meeting, 91.0% chance of no change at Nov. 3rd meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -11 open in Japan 
• China A50 Futures: Indicating -91 open in China

• DAX Futures: Indicating +9 open in Germany

Portfolio:

• Slightly Lower: On losses in my commodity/medical/industrial sector longs
  

• Disclosed Trades:  None
  

• Market Exposure: 50% Net Long
  

Bear Radar

 Style Underperformer:

• Large-Cap Value -1.4%

Sector Underperformers:

• 1) Homebuilders -4.1% 2) Shipping -2.4% 3) Computer Hardware -2.4%

Stocks Falling on Unusual Volume: 

• BSY, ABNB, BFAM, RETA, SDGR, CSQ, ACTC, NSTG, MGNI, HTGC, IR, LXP, CCS, CRL, CUE, IBP, FND, KOD, LB, LPX, AFRM, BGFV, BTX, PCT, NSA, BCC, KREF, PXD, LGIH, ORGO, HZO, OXY, RCKT, ARCT, MUDS, PLBY, PAR, NVAX, HBI, REAL, RXT and REKR
  

Stocks With Unusual Put Option Activity:

• 1) IEF 2) JCI 3) HPQ 4) COMM 5) AGNC
  

Stocks With Most Negative News Mentions:

• 1) REAL 2) RMNI 3) SPCE 4) VRM 5) LYB
  

Charts:

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

Bull Radar

Style Outperformer:

• Mid-Cap Growth +.1%

Sector Outperformers:

• 1) Digital Health +1.2% 2) Steel +1.2% 3) Internet +1.2%

Stocks Rising on Unusual Volume:

• DDD, SWAV, FOE, UFS, RBLX, PLUG, ELY, EVBG, LQDT, NLOK, AVNS, FSLY, PRTS, TFSL, PLTR, AZPN, ORMP, EFC, SUM, ROKU and BEAM
  

Stocks With Unusual Call Option Activity:

• 1) SOXS 2) IGT 3) PUMP 4) JCI 5) COMM

Stocks With Most Positive News Mentions:

• 1) SWAV 2) RBLX 3) IGT 4) PLTR 5) ATVI
  

Charts:

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