Morning Market Internals

NYSE Composite Index:

• Volume Running +1.7% Above 100-Day Average 
• 7 Sectors Rising, 4 Sectors Declining
• 51.6% of Issues Advancing, 45.0% Declining
• 175 New 52-Week Highs, 12 New Lows
• 87.3% of Issues Above 200-day Moving Average
• Average 14-Day RSI 51.9%
  
• Bloomberg Global Risk-On/Risk-Off Index 3,308.0 +93.0 points
• Vix 19.3 -2.0%
• Total Put/Call .72 -20.0%
• TRIN/Arms 1.11 +73.4%

Tuesday Watch

Evening Headlines

Bloomberg:               

• The World Economy Is Suddenly Running Low on Everything.  
• Korea Retail Trading Boom Reaches New Heights With Record Buying.  
• Asia Stocks Set for Muted Open; Dollar Steady: Markets Wrap.
• GOP ‘Getting There’ on Infrastructure Counteroffer to Biden.
• Biden Pledges to Export Millions of FDA-Authorized Vaccines.  
• Elon Musk Is Now Blowing Up the Wall Street Case for Bitcoin.
• Amazon in Talks to Buy Film Studio MGM, According to Reports.  
• California Farmers Facing Drought Are Choosing Empty Fields.  
• New Jersey Residents Will Pay Most in Taxes Over a Lifetime.  
• Builders Scour for Cheaper Lumber as Futures Prices Tumble.  
• The U.S. Travel Rebound Is Leading Jet Fuel’s Summer Surge.

Wall Street Journal:

• Did Biden Peak on Inauguration Day?
• China’s Economic Recovery Slowed in April.
• Despite Lumber Boom, Few New Sawmills Coming.
• Andrew Cuomo Was Paid $5.1 Million for Covid-19 Memoir, Tax Filings Show.

Fox News:

• Biden has stern warning for the unvaccinated as he urges Americans to get COVID shots.
  

CNBC.com:

• Ahead of Walmart earnings, Oppenheimer says another big-box retailer looks best.
• EV start-up Fisker will not accept or invest in bitcoin, CEO says.
• Stocks making the biggest moves after the bell: Fisker, Aon, Twilio & more.

MarketWatch.com:             

• These growth companies may be primed for massive stock buybacks.

Zero Hedge:

• GOP Chair Elise Stefanik: Justice Department Is "Trying To Block" Maricopa County Audit.
• Michael Burry Reveals Massive Tesla Short, Huge Inflationary Bet.
• Biden Voices Support For Gaza Ceasefire In Netanyahu Call As More Rockets Fired From Lebanon.
• MGM Spikes On Report Amazon Wants To Buy It.
• Port Of LA Volumes Are "Off The Charts".
• Supreme Court Unanimously Rebuffs Biden Administration On Warrantless Searches For Handguns.
• A Tesla Reportedly "Runs Over 2 Traffic Cops In Zhejiang": Weibo Post.
• Space Force Officer's Book On Marxism In The Military Reaches No. 1 On Amazon After Being Fired.
• Gates And Epstein Traded Advice On Bill's 'Toxic' Marriage, Jeff's Pedo Image Rehab During Secretive "Men's Club" Gatherings.
• Plunging Coinbase Steamrolls Shareholders Even More With $1.25BN Convertible Offering.
• Foreigners Bought The Most Long-Term US Assets In March Ever.
• Gold Glows As Cryptos Collapse After Musknado; Dollar, Bonds, & Stocks Sink.

Newsmax: 

• Embattled Biden's Approval Rating Dips Below 50 Percent.
  

TheGatewayPundit.com:

• Matt DePerno BOMBSHELL: Michigan Attorney Says Anyone with Access to Voting Machine Tabulators Can Change an Election, Backdate Their Cheating (VIDEO).
• BREAKING EXCLUSIVE: TGP Reporter Confronts Soros-Backed Maricopa County Sheriff After His Meltdown Over Router Request (VIDEO).
• Dreams of Adolf: CNN Contributor Tweets Out His Support for Hitler’s Genocide – Wishes He Was Here Today.
• Live-Stream Video: Panicked Maricopa County Board of Supervisors Hold Monday Meeting Before Tuesday’s Senate Grilling — Starting at 4 PM ET.

The Epoch Times: 

• Full-Blown Boycott Pushed for Beijing Olympics.
• Communist Ideology Delivered in China’s Christian Churches.

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 84.5 unch.

• China Sovereign CDS 38.25 +.5 basis point.

• Bloomberg Emerging Markets Currency Index 61.43 +.02%.
• Bloomberg Global Risk-On/Risk Off Index 3,228.0 +13.0 points.
• Volatility Index(VIX) futures 21.6 -2.33%.
• FTSE 100 futures +.54%.

• S&P 500 futures +.18%.

• NASDAQ 100 futures +.25%.

Morning Preview Links

Earnings of Note 
Company/Estimate 

 

Before the Open: 

• (BIDU)/10.75
• (DY)/.23
• (HD)/2.93
• (M)/-.47
• (NTES)/6.27
• (SE)/-.56
• (WMT)/1.21
  

After the Close:

• (STE)/1.79
• (TTWO)/.68
  

Economic Releases

8:30 am EST

• Housing Starts for April is estimated to fall to 1702K versus 1739K in March.
• Building Permits for April is estimated to rise to 1770K versus 1766K in March.
  

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The UK Unemployment Conference, Eurozone GDP report, weekly US retail sales reports, BofA Metals/Mining/Steel Conference, Berenberg Conference, RBC Healthcare Conference, Bernstein Ag Conference and the (RTX) investor day could also impact global trading today.

US Equity Market Hours

• 9:30 am - 4:00 pm EST
  

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

Stocks Lower into Final Hour on Inflation Worries, Valuation Concerns, Technical Selling, Tech/Alt Energy Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Modestly Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 20.9 +11.3%
• Bloomberg Global Risk On/Risk Off Index 3,128.0 -94.0 points

• Euro/Yen Carry Return Index 137.10 -.19%

• Emerging Markets Currency Volatility(VXY) 9.3 +.3%

• S&P 500 Implied Correlation 52.7 +4.4%

• ISE Sentiment Index 97.0 -32.0 points
  

• Total Put/Call .88 -2.2%

• NYSE Arms .60 +7.1%

Credit Investor Angst:

• North American Investment Grade CDS Index 51.51 +1.35%
  

• US Energy High-Yield OAS 432.64 -.02%

• European Financial Sector CDS Index 59.62 +.66%

• Italian/German 10Y Yld Spread 123.0 +3.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 84.0 -.08%
  

• Emerging Market CDS Index 162.11 +1.65%
  

• China Corp. High-Yield Bond USD ETF(KCCB) 39.31 +.03%

• 2-Year Swap Spread 10.0 -1.0 basis point

• TED Spread 15.75 +.75 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -.5 -.5 basis point
  
• MBS  5/10 Treasury Spread  63.25 unch.
  
• IHS Markit CMBX BBB- 6 71.5 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 61.44 +.10%
• 3-Month T-Bill Yield .00% -1.0 basis point
  

• Yield Curve 147.0 -3.0 basis points
  

• China Iron Ore Spot 213.5 USD/Metric Tonne +7.1%

• Citi US Economic Surprise Index 12.4 -11.5 points

• Citi Eurozone Economic Surprise Index 149.60 -8.4 points
  

• Citi Emerging Markets Economic Surprise Index 50.10 -21.6 points

• 10-Year TIPS Spread 2.55 +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 -114 open in Japan 
• China A50 Futures: Indicating -27 open in China

• DAX Futures: Indicating +17 open in Germany

Portfolio:

• Slightly Higher: On gains in my commodity sector longs, index hedges and emerging market shorts
  

• Disclosed Trades:  None
  

• Market Exposure: 75% Net Long
  

Bear Radar

 Style Underperformer:

• Mid-Cap Growth -1.2%

Sector Underperformers:

• 1) Gaming -2.7% 2) Semis -1.8% 3) Robotics -1.7%

Stocks Falling on Unusual Volume: 

• CRCT, UGI, DISCA, CVNA, ABNB, ESPR and NOVA
  

Stocks With Unusual Put Option Activity:

• 1) NEE 2) BTU 3) XOP 4) DISCA 5) QRVO
  

Stocks With Most Negative News Mentions:

• 1) LFMD 2) CAN 3) SEEL 4) COIN 5) DDD
  

Charts:

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

Bull Radar

Style Outperformer:

• Small-Cap Value unch.

Sector Outperformers:

• 1) Gold & Silver +5.6% 2) Steel +2.4% 3) Oil Service +1.6%

Stocks Rising on Unusual Volume:

• APLS, DDS, PLCE, GATO, LPI, CDE, FF, CEIX, HOG, LGF/B, AMC, WDC, M, LEGN, PTVE, PCT and VRS
  

Stocks With Unusual Call Option Activity:

• 1) FTNT 2) BTU 3) AES 4) CVNA 5) WDC

Stocks With Most Positive News Mentions:

• 1) PLCE 2) LEV 3) APLS 4) OXY 5) UAL
  

Charts:

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

Mid-Day Market Internals

NYSE Composite Index:

• Volume Running -14.4% Below 100-Day Average 
• 4 Sectors Rising, 7 Sectors Declining
• 41.8% of Issues Advancing, 53.8% Declining
• 110 New 52-Week Highs, 21 New Lows
• 87.4% of Issues Above 200-day Moving Average
• Average 14-Day RSI 52.3%
  
• Bloomberg Global Risk-On/Risk-Off Index 3,104.0 -105.0 points
• Vix 20.9 +10.9%
• Total Put/Call .83 -7.8%
• TRIN/Arms .49 -12.5%