Bull Radar

Style Outperformer:

• Small-Cap Value +2.1%

Sector Outperformers:

• 1) Steel +3.9% 2) Banks +3.3% 3) Retail +3.2%

Stocks Rising on Unusual Volume:

• STMP, CCXI, GBX, BTU, MATX, FLR, NEGG, ASTR, SNOW, AMEH, QSI, AVXL, KSU, FLS, GM, PGTI, SABR and KPLT
  

Stocks With Unusual Call Option Activity:

• 1) PBI 2) FLR 3) RAIL 4) LEVI 5) XRT

Stocks With Most Positive News Mentions:

• 1) CHKP 2) TAL 3) KSU 4) GM 5) DFS
  

Charts:

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

Mid-Day Market Internals

NYSE Composite Index:

• Volume Running -21.4% Below 100-Day Average 
• 10 Sectors Rising, 1 Sector Declining
• 74.1% of Issues Advancing, 21.5% Declining
• 98 New 52-Week Highs, 4 New Lows
• 79.9% of Issues Above 200-day Moving Average
• Average 14-Day RSI 43.8%
  
• Bloomberg Global Risk-On/Risk-Off Index 3,124.0 +237.0 points
• Russell 1000: Growth/Value 17,451 -.47%
  
• Vix 16.3 -14.3%
• Total Put/Call .80 -7.0%
• TRIN/Arms .36 -75.2%

Friday Watch

Evening Headlines

Bloomberg:              

• China’s Dovish Switch Ignites Fears Over Global Recovery Trade.  
• China's Didi Crackdown Is All About Controlling Big Data.  
• Aging China Relies on ‘Young Old’ to Take Care of Oldest Seniors.
• Stocks Extend Drop on Growth Risk, Bonds Pare Gain: Markets Wrap.  
• Oil Extends Gain as Slump in Stockpiles Shows Robust U.S. Demand.
• De-Trumping Economic Order, Policy Rethink, India Redux: Eco Day.
• Five Things You Need to Know to Start Your Day.  
• Very Few Kids Need to Shield From Covid, Large U.K. Study Finds.
• Melvin Can’t Shake Reddit Attack With 46% Loss in First Half.  
• U.S. Hotels Finally Surpass Pre-Covid Levels as Travel Surges.

Wall Street Journal:

• Biden Defends Afghan Pullout, Sets Exit for Interpreters.
• Donald J. Trump: Why I’m Suing Big Tech.
• The Culture War Is a Leftist Offensive.
• Biden’s Monkeywrencher.
• ‘Financially Hobbled for Life’: The Elite Master’s Degrees That Don’t Pay Off.
• Biden to Target Railroads, Ocean Shipping in Executive Order.
• Covid-19 Death Risk Is Extremely Low in Children, Studies Find.

Fox News:

• EXCLUSIVE: Liberal senator should brace for big hits during MLB events.
• Geraldo: Look back at 'foolish' media moments as Avenatti cries his way to jail.

CNBC.com:

• Online thrift store Poshmark CEO sees fashion shift as consumers ‘purge’ closets.
• Americans will need masks indoors as U.S. heads for ‘dangerous fall’ with surge in delta Covid cases.
• Pfizer says it is developing a Covid booster shot to target the highly transmissible delta variant.
• Levi earnings crush estimates, retailer raises 2021 forecast, citing strong denim sales.
• As bitcoin breaks down, two traders share key levels to watch.

 MarketWatch.com:      

• This key Tesla rival has a $36 billion plan to win the electric-vehicle race. Here’s what you need to know.  
• Why aren’t more Americans working? Do they plan to get a job soon?

Zero Hedge:

• Inflation Bombshell: A Market-Based PCE House Rent Measure May Be Coming.
• Fauci Defends Vaccines As Research Shows Antibodies Don't Protect Against Delta.
• Biden Health Secretary: "Absolutely The Government's Business" To Know Who Gets Vaccinated.
• Pfizer To Seek Authorization For "Booster" Dose To Protect Against Delta Variant.
• Ford Secures Chips To Finish "Thousands" Of Incomplete F-150.
• Progressives Demand Biden Leave China Alone Over Muslim Detention Camps, Hong Kong... To Avoid Climate Collapse.
• "This Is About Misuse Of Government Power": Judge Quickly Denies CDC's Appeal To Keep COVID-19 Cruise Restrictions.
• Consumer Credit Soars Most On Record As Credit Card Borrowings Explode.
• Retail, Quants, CTAs, Dealers: Who Bought And Who Sold Today.Bonds Bid, 
• Bonds Bid, Breakevens Breakdown, As Dollar, Crypto, & Stocks Skid.

TheGatewayPundit.com:

• Speaker Pelosi’s Husband Made Millions in Transactions Related to Recent House Bills – Democrats Claim She Had No Involvement – Move Along.
• Former Dem Rep Accidentally Tells the Truth: Election Integrity “Could Really Cost Democrats Seats” (VIDEO).
• Now We Know Why Wisconsin’s Speaker Vos Does Not Want the 2020 Election Forensically Audited.

The Epoch Times: 

• Xi Jinping Vows to Shape Mankind’s Common Future.

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 88.25 +1.5 basis points.

• China Sovereign CDS 38.5 +1.0 basis point.
  

• Bloomberg Emerging Markets Currency Index 59.77 -.01%.
• Bloomberg Global Risk-On/Risk Off Index 2,771.0 -119.0 points.
• Volatility Index(VIX) futures 21.1 +.6%.
• FTSE 100 futures -.09%.

• S&P 500 futures -.24%.

• NASDAQ 100 futures -.28%. 

Morning Preview Links

Earnings of Note 
Company/Estimate 

 

Before the Open: 

• (AZZ)/.62
• (GBX)/.13
  

After the Close:

• None of note
  

Economic Releases

10:00 am EST

• Wholesale Trade Sales MoM for May.
  

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The UK GDP report and the Bloomberg July US Economic Survey 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 financial and industrial shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing mixed. The Portfolio is 75% net long heading into the day.

Stocks Lower into Afternoon on Global Shutdown Worries, Fed Taper Concerns, Technical Selling, Road & Rail/Homebuilding Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Almost Every Sector Declining
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 18.3 +12.8%
• Bloomberg Global Risk On/Risk Off Index 2,940.0 -202.0 points

• Euro/Yen Carry Return Index 134.25 -.34%

• Emerging Markets Currency Volatility(VXY) 9.03 +2.3%

• S&P 500 Implied Correlation 47.4 -.04%

• ISE Sentiment Index 102.0  -6.0 points
  

• Total Put/Call .85 +1.2%

• NYSE Arms 1.31 -13.2%

Credit Investor Angst:

• North American Investment Grade CDS Index 49.03 +2.4%
  

• US Energy High-Yield OAS 387.50 +2.0%

• European Financial Sector CDS Index 55.3 +2.6%

• Italian/German 10Y Yld Spread 107.0 +6.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 88.94 +2.6%
  

• Emerging Market CDS Index 161.63 +2.8%
  

• China Corp. High-Yield Bond USD ETF(KCCB) 38.71 +.14%

• 2-Year Swap Spread 8.25 +.5 basis point

• TED Spread 9.0 -.5 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -6.25 -1.25 basis points
  
• MBS  5/10 Treasury Spread  70.0 +1.75 basis points
  
• IHS Markit CMBX BBB- 6 73.75 +.25 basis point
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 59.79 -.19%
• 3-Month T-Bill Yield .05% +1.0 basis point
  

• Yield Curve 110.0 +1.0 unch.
  

• China Iron Ore Spot 205.5 USD/Metric Tonne -.23%

• Citi US Economic Surprise Index .4 -.7 point

• Citi Eurozone Economic Surprise Index 91.60 -1.5 points
  

• Citi Emerging Markets Economic Surprise Index 67.9 -.9 point

• 10-Year TIPS Spread 2.24 -3.5 basis points
• 100.0% chance of no change at Nov. 3rd meeting, 100.0% chance of no change at Dec. 15th meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -278 open in Japan 
• China A50 Futures: Indicating -207 open in China

• DAX Futures: Indicating -6 open in Germany

Portfolio:

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

• Disclosed Trades: None
  

• Market Exposure: 75% Net Long
  

Bear Radar

 Style Underperformer:

• Large-Cap Value -.7%

Sector Underperformers:

• 1) Road & Rail -4.3% 2) Gold & Silver -3.2% 3) Homebuilding -2.3%

Stocks Falling on Unusual Volume: 

• SEMR, RCUS, TTD, SHAK, LLY, MGNI, AACQ, LAZR, PSAC, RAMP, ARCH, ATHA, SAVA, FSLR, AOSL, FRX, GRUB, SCS, AVXL, MRC and VMC
  

Stocks With Unusual Put Option Activity:

• 1) PAGS 2) CSX 3) TPH 4) RIOT 5) SCHW
  

Stocks With Most Negative News Mentions:

• 1) ADS 2) EWT 3) PVH 4) KRE 5) CSX
  

Charts:

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

Bull Radar

Style Outperformer:

• Small-Cap Value -.2%

Sector Outperformers:

• 1) Biotech +.4% 2) Networking +.2% 3) Retail +.1%

Stocks Rising on Unusual Volume:

• GAN, SPCE, GNOG, OTRK, SAVA, QSI and BLL
  

Stocks With Unusual Call Option Activity:

• 1) DBGI 2) GAN 3) SPNE 4) TESS 5) ARPO

Stocks With Most Positive News Mentions:

• 1) NMTR 2) OSTK 3) FGEN 4) OTRK 5) KSU
  

Charts:

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