Monday Watch

Today's Headlines

Bloomberg:                    

• China Accuses U.S. of ‘Unreasonable Suppression’ of Companies. 
• South Korea’s Youngest Political Boss to Fight China ‘Cruelty’.
• PBOC Adviser Sees Stable China Liquidity After Reserve Ratio Cut.  
• China’s Fading ‘First-In First-Out’ Rebound Sends Global Warning.
• French Minister Rules Out New Lockdown as Delta Spreads.   
• U.K.’s Johnson to Urge Caution as Covid Restrictions Are Lifted.
  
• ECB’s Lagarde Sees Policy Change in July, Possible 2022 Measures.  
• Asian Stocks Seen Higher; Dollar Steadies: Markets Wrap.
• Saudi Stocks Extend Slide On Reflation Trade Slowdown: Inside EM.  
• Oil Extends Gains With Investors Betting on Accelerating Demand.
• Yellen Targets Curbs on Development Bank Support for Fossil Fuel.
  
• U.S. Cases Swell; France Warns of New Wave: Virus Update.  
• United CEO Sees ‘Huge Desire’ Fueling U.S. Air Travel Rebound.  
• Microsoft Is Said to Be Buying Cybersecurity Company RiskIQ.

Wall Street Journal:

• Global Tax Deal Heads Down Perilous Path in Congress.
• Earnings Kick Off With Forecasts and Stocks Riding High.
• Hunter Biden’s Secret Art Sale.
• A Revealing ‘Gaffe’ Roils Asia.
• Binance Froze When Bitcoin Crashed. Users Want Their Money Back.
• Shipping Delays and Higher Rates Get Small Businesses Jammed Up.
• Can Robinhood Ride the Bull?
• Here Come the Climate Protectionists.
• Trump Can Win His Case Against Tech Giants.

Fox News:  

• Thousands of Cubans flood the streets demanding the end of dictatorship and socialism.
• Embattled mayor under fire over vacation revelation ahead of deadly weekend, despite vow to crack down.
• Charlottesville jams through quick removal of statue honoring explorers.

CNBC:

• Wall Street’s top analysts have turned more bullish on these stocks.
• Too soon to scale back ‘emergency’ pandemic bond buying, ECB’s Visco says.
• Future AI toys may be smarter than parents and less protective.
• Janet Yellen says tax changes for large firms may not be ready until 2022.
• Utilities can be a catch-up trade with Biden’s $579 billion infrastructure bill in sight, CEO says.
• Self-driving future looking less like Musk’s Tesla, more like Domino’s Pizza.

Zero Hedge: 

• "Down With Dictatorship" - Tens Of Thousands Of Cubans Take To Streets.
• Suspected Assassins Of Haitian President Moïse Trained By US, Linked To Pro-Coup Oligarchy.
• Volocopter's Flying Taxi Secures Production Organization Approval As Commercialization Nears.
• "Tear Up The Streets, Not The Planet" - Dodge To Unveil World's First Electric Muscle Car In 2024.
• Virgin Galactic Unity 22 Successfully Reaches Outer Space.
• Morgan Stanley: Today We Are Facing Another Growth Scare, And It Too Will Fade.
• Majority Of Americans Now Believe COVID Was Leaked From Wuhan Lab, New Poll Finds.
• Watch Kyle Bass On The "Cancer" Of China’s New Digital Currency.
• Commercial Landlords Are Throwing "Lavish Parties" To Sell NYC Office Space.
• Yields Plunge, Dollar Surges As The Reflation Trade Unravels.
• Still More Green Hypocrisy In The EU, This Time Hydrogen.
• Meet Jigsaw: Google's Intelligence Agency.
• China: Fragile Giant.
• Unfavorable Opinions About China Have Reached Historic Highs.
• Dershowitz: Trump Lawsuit Against Twitter "Will Shake Things Up Considerably".
• Rand Paul Says He Will Introduce Bill To Scrap Mask Mandate "Farce" On Planes.

MarketWatch.com:         

• Opinion: The bull market in stocks may last up to five years — here are 6 reasons why.
  
• Corporate profits are hitting record highs, but earnings expectations may still be too low.
  

NewsMax:  

• Trump to Tell the World at CPAC, You Won't Silence Us. 
• Trump Easily Wins CPAC Straw Poll in Dallas.

TheGatewayPundit.com:

• President Trump Says His Suit Against Big Tech Is to Protect Free Speech – YouTube Blocks His CPAC Speech.
• AWESOME! Crowd Chants “USA! USA!…” as President Trump Makes Appearance at UFC 264 in Las Vegas (VIDEO).
• VIDEO: Cop-Hating Democrats Call to Defund the Police – Over and Over and Over Again… Even Pelosi.
• “Do Not Count Yourself Out” – AOC Urges Illegals to Apply for Welfare in New York (VIDEO).

The Epoch Times:

• 21 Countries Demand China End Attack on Press Freedom in Hong Kong.

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 indices are +.5% to +1.25% on average.
• Asia Ex-Japan Investment Grade CDS Index 89.25 +1.0 basis point.
• China Sovereign CDS 38.25 -.25 basis point.
• Bloomberg Emerging Markets Currency Index 59.95 +.04%.
• Bloomberg Global Risk-On/Risk Off Index 3,066.0 -66.0 points.
• Volatility Index(VIX) futures 19.87 +.13%. 
• Euro Stoxx 50 futures n/a.
• S&P 500 futures +.09%.
• NASDAQ 100 futures +.15%

Morning Preview Links

Earnings of Note

Company/Estimate

Before the Open:

• None of note
  

After the Close:

• None of note
  

Economic Releases

• None of note

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The China FDI report, $58B 3Y T-Note auction, $38B 10Y T-Note auction and the (FDX) July economic update could also impact 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 100% net long heading into the week.

Today's Headlines

Bloomberg:     

• Taliban Resurgence Raises Terror Fears From Moscow to China.  
• G-20 Finance Chiefs Back Tax Deal and Vow to Clear Hurdles.  
• Fragile Global Rebound Troubles Finance Chiefs as Variants Lurk. 
  
• ECB’s Schnabel Is Sure Inflation Won’t Get ‘Excessively High’. 
• Global Boom in House Prices Becomes a Dilemma for Central Banks.
• Kaseya Failed to Address Security Before Hack, Ex-Employees Say.  
• Tokyo Cases Jump Ahead of Olympics; G20 Warning: Virus Update.
• Delta Variant Spills Out of Midwest Tourist Hub-Turned-Incubator.  
• Pelosi Husband’s Tech Stock Spotlights Law on Lawmaker Trades.  
• Fed Flags Crypto Assets for First Time in Financial Risk Review. 
• Business Trips Are Coming Back Faster Than Expected in the U.S.
• Megacap Tech Stocks Roar Back Into Vogue as Haven From Slowdown.  
• Wall Street’s Math Whizzes Are Racing to Wire Up the Bond Market.  
• Biggest Bond Rally in a Year Stalls With Short Wagers Washed Out.  
• Ripples of Fed’s Inflation Disquiet Keep Spreading: Eco Week.
• As Big Banks Report, $40 Billion Are on Tap in U.S. Credit.

Wall Street Journal:

• Biden Order Opens New Front in Battle With Big Tech.
• Companies Target a New Market: The Stressed Out.
• Viva Las Vegas? The Mega-Convention Shoots for a Comeback.
• Median Pay Shows How Companies Diverged in Their Covid-19 Response.
• Rich Americans Borrow to Live Off Their Paper Wealth.
• Strong U.S. Recovery Aids Growth in Canada, Mexico.
• Hospital Mergers, Surprise Medical Bills Targeted in Order.

CNBC:

• There’s no evidence a Covid booster shot is necessary, says Dr. Ashish Jha.
• G-20 signs off on tax crackdown, warns on virus variants.
• Earnings season begins in the week ahead with eye-popping growth set to validate market’s 2021 run.
• Tesla CEO Elon Musk goes to trial Monday to defend $2.6 billion SolarCity acquisition.
• Couples ready to ‘go all out’ as wedding industry sees surge in business, says The Knot CEO.

IG:

• Weekend Markets Trading Live.

Barron's:

• Had bullish commentary on (CLF), (X), (STLD), (EAF), (DDOG), (DT), (ESTC) and (NUE).
  

Fox News:

• After years of negotiations, crowds watch as Charlottesville topples statues. 
• Video of kid's reaction to flag goes viral as patriotic symbols come under attack.
  

Newsmax:  

• WH's Psaki: Hunter Biden's Art Buyers to Remain Anonymous.
• Matt Schlapp to Newsmax: Trump to Tell the World, You Won't Silence Us.
  

Zero Hedge:

• "Ignore No Soliciting Signs, Use Your Script": Vaccine Door-Knocking Documents Revealed.
• Goldman: Here's Why The Shorts Will Have To Cover This Week.
• The Millennials Who Swore Off Cars Pre-COVID Are Now Buying Them.
• The S&P Hasn't Closed Below Its 200 DMA Since June 2020: What Does This Mean For The Second Half.
• Bond Yields Send An Economic Warning.
• California Grid Strained As Power Shortfalls Loom.
• Just 25 'Under 18s' Died From COVID In England, 100s Died From Suicide And Trauma.
• Russia Ready To Activate Tajikistan Military Base Over Fighting In Afghanistan.
• High Cost But Useless Master's Degrees And Who's Offering Them.
• The Weaponization Of January 6.
• Darryl Cooper: Why Trump Supporters Are Pissed Off And Don't Trust Anything. 
• People Who Recover From COVID-19 At "Very Low Risk" Of Re-Infection: Study.
  

TheGatewayPundit.com:

• “Every Institution Is Run By People Who Will Use Any Means to Disclude Them” – Tucker Carlson on Why Americans Believe the 2020 Election Was Stolen.
• Creepy Andrew Weissmann Slips Up and Inadvertently Shares that the Feds are Spying on Whoever They Want and Sharing Results within the DOJ.
• Stanford Dr. Jay Bhattacharya Calls US COVID Response “Single Biggest Public Health Mistake in History” (VIDEO).
• This Explains All the Gaslighting: Clyburn Says ‘Defund the Police’ Is Killing Democrats at the Polls as Crime Surges Across the Country Thanks to Their Constant Attacks on Police (VIDEO). 
• All Big Cities Should Have Their 2020 Election Results Forensically Audited Now – Detroit, Milwaukee, Las Vegas, Minneapolis, St. Louis, Houston, Orlando, etc.
• Update on 10,300 Illegal Votes Found in Georgia.
• Vernon Jones: “Brian Kemp and Brad Raffensperger Failed to Conduct a Secure Election” – Calls For Statewide Audit in GA.

The Epoch Times:  

•  US ‘Deeply Concerned’ by Repression of Falun Gong in Russia: State Department.

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).

Evening Headlines

Bloomberg:          

• China’s Easing Forces Traders to Rethink How They Label Markets.  
• China Tech’s Trillion-Dollar Stock Slump Signals Buyer Beware.
• G-20 to Warn of Virus Risks Amid ‘Great Divergences’ in Recovery.
• EU to Urge 2035 Goal to End Combustion-Engine Era in Autos.
• Bitcoin ‘Crash’ Risks Taking Its Price Down to $10,000, Minerd Says.
• Diaper Inflation Wrecks Already-Strained Family Budgets in U.S.
• Stocks Climb to All-Time Highs While Bonds Retreat: Markets Wrap.  
• CDC Eases School Guidance; Florida Cases Surge: Virus Update.   
• Top U.S. Stainless Steel Maker Roiled by Supply Chain Woes.  
• Charting the Global Economy: Chip Shortage Restraining Factories.
• Oil Posts First Weekly Loss Since May on OPEC+ Volatility.

Wall Street Journal:

• The Hunter Biden Laptop Is Real.
• Joe Biden, 20th Century Trustbuster.
• How Much Are Prices Up? Here’s One Family’s Day-to-Day Expenses.
• Didi Tried Balancing Pressure From China and Investors. It Satisfied Neither.
• Why Aren’t Millions of Unemployed Americans Finding Jobs?
• CDC Urges Schools to Welcome Kids Back, Vaccinated or Not.
• Fed Says Shortages, Hiring Difficulties Hold Back Brisk Growth.
• American Frackers Show Restraint as Oil Tops $70.

CNBC:

• Earnings season begins in the week ahead with eye-popping growth set to validate market’s 2021 run.
• Biden fires Social Security boss Andrew Saul, a Trump appointee who refused to leave.
• Sen. Elizabeth Warren slams Wells Fargo for causing potential credit score hit to its customers.
• Value inflows outpaced growth in 2021′s first half. Where the money is going and why.
• Biogen stock falls after FDA calls for federal investigation into Alzheimer’s drug approval.

IG:

• Weekend Markets Trading Live.

MarketWatch.com:       

• It’s Houston, not Austin, that’s winning the competition to establish tech hubs in Texas.
  
• Opinion: The bull market in stocks may last up to five years — here are six reasons why.

Fox News:

• Video shows inconvenient truth about Dems' GOP defund the police claims.
• CNN's downward spiral continues, lineup fails to crack 1M viewers.
• PERGRAM: Olympics, politics intertwined from almost beginning.
  

Zero Hedge:

• Taliban Boasts It's Already Taken 85% Of Afghanistan Day After Biden Declared "US Objectives Achieved".
• Japan "Digging Its Own Grave" & Its "Survival" On The Line: China Warns Over Taiwan Stance. 
• In Many Cities In America, The Criminals Are Starting To Gain Firm Control Of The Streets. 
• "Remarkable Decision" - Court Rules Air Force Is More At Fault For Mass Shooting Than The Shooter. 
• "Biggest Demand Ever" - Americans Spend Big Money On Backyard Pools.
• Biden Inc.: Hunter, Joe, & The Mexican Oligarchs.
• Federal Government Does Not Have Database Of Who Has Received COVID-19 Vaccine: White House.
• "Choose Another Living": Cantor CEO Howard Lutnick Slams Junior Bankers Complaining About Long Hours.
• Alleged Cyberattack Creates "Unprecedented Chaos" For Iran's National Rail Network.
• Steve Cohen Lost $500 Million From Melvin Capital Meltdown.
• Pentagon Offered National Guard Troops 2 Days Before Jan. 6, Former Chief Of Staff Confirms.
• Did A Korean Research Team Just Find The "Holy Grail" Of Water Desalinization.
• Stocks Soar To All Time High As Bonds, Bullion And Bitcoin Bounce.
  

TheGatewayPundit.com:

• Dozens of School Districts are Using Book that Claims ‘Whiteness’ is the Devil and That White Children Sell Their Soul for “Stolen Land and Stolen Riches”.
• NEW VIDEO: Black-Clad Hoodlums Were First Up the Stairs, First to Smash Windows at US Capitol — But FBI Refuses to Look for Them – Weird, Huh?
• Arizona Audit Would Be FINISHED Already If Maricopa County Complied – Why Are They Stalling?!

The Epoch Times:  

• US Blacklists Over a Dozen Chinese Entities for Aiding Xinjiang Abuses and Military Modernization.

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).

Stocks Surging into Final Hour on China Rate Cut, Dovish Fed Commentary, Oil Gain, Commodity/Financial Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Below Average

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 16.2 -14.7%
• Bloomberg Global Risk On/Risk Off Index 3,139.0 +250.0 points

• Euro/Yen Carry Return Index 135.14 +.67%

• Emerging Markets Currency Volatility(VXY) 8.8 -1.5%

• S&P 500 Implied Correlation 46.4 -4.0%

• ISE Sentiment Index 131.0  +25.0 points
  

• Total Put/Call .84 -2.3%

• NYSE Arms .43 -70.3%

Credit Investor Angst:

• North American Investment Grade CDS Index 48.09 -1.6%
  

• US Energy High-Yield OAS 381.43 -1.6%

• European Financial Sector CDS Index 54.17 -2.0%

• Italian/German 10Y Yld Spread 106.0 -1.0 basis point
  

• Asia Ex-Japan Investment Grade CDS Index 89.17 +.33%
  

• Emerging Market CDS Index 159.22 -1.9%
  

• China Corp. High-Yield Bond USD ETF(KCCB) 38.71 unch.

• 2-Year Swap Spread 8.25 unch.

• TED Spread 8.0 -1.0 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -5.75 +.5 basis point
  
• MBS  5/10 Treasury Spread  70.25 +.25 basis point
  
• IHS Markit CMBX BBB- 6 73.5 -.25 basis point
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 59.94 +.28%
• 3-Month T-Bill Yield .05% unch.
  

• Yield Curve 112.0 +2.0 basis points
  

• China Iron Ore Spot 206.65 USD/Metric Tonne +1.2%

• Citi US Economic Surprise Index -.3 -.7 point

• Citi Eurozone Economic Surprise Index 87.10 -4.5 points
  

• Citi Emerging Markets Economic Surprise Index 70.9 +3.0 points

• 10-Year TIPS Spread 2.29 +5.0 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 +635 open in Japan 
• China A50 Futures: Indicating +99 open in China

• DAX Futures: Indicating -3 open in Germany

Portfolio:

• Higher: On gains in my commodity/industrial/tech/biotech sector longs
  

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  

• Market Exposure: Moved to 100% Net Long
  

Bear Radar

 Style Underperformer:

• Large-Cap Growth +.8%

Sector Underperformers:

• 1) Shipping -1.2% 2) Utilities -.1% 3) Medical Equipment +.1%

Stocks Falling on Unusual Volume: 

• SGH, EVGO and SAVA
  

Stocks With Unusual Put Option Activity:

• 1) PBF 2) CLDX 3) SAVA 4) ARKG 5) VOO
  

Stocks With Most Negative News Mentions:

• 1) CPOP 2) EAR 3) SGH 4) XL 5) ARRY
  

Charts:

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