Bull Radar

Style Outperformer:

• Small-Cap Value +1.1%

Sector Outperformers:

• 1) Banks +2.7% 2) Oil Service +2.4% 3) Steel +2.3%

Stocks Rising on Unusual Volume:

• RAMP, BYSI, SWCH, BTBT, SYNA, CNTY, GDYN, MVIS, CSOD, PRTS, JYNT, XENT, CFLT, PCTY, POST, GT, TGI, AXNX, UNIT, MGNI, PFSI, MARA, CTVA, AGFY, GDEN, MAXR, LTHM, ITRI, CARG, MNST, YELP, ONTO, BLL, ADTN, BHF, ACI, OCFC, DVAX, SEAS, EHTH, ASTR, MSTR, ORMP, MRSN, GPN, OPCH, FIS, FSLY and HLMN
  

Stocks With Unusual Call Option Activity:

• 1) PRTY 2) GRPN 3) DVAX 4) AEP 5) XLB

Stocks With Most Positive News Mentions:

• 1) ANY 2) SWCH 3) RAMP 4) GCI 5) SYNA
  

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running -12.6% Below 100-Day Average 
• 6 Sectors Rising, 5 Sectors Declining
• 54.8% of Issues Advancing, 40.5% Declining
• 131 New 52-Week Highs, 23 New Lows
• 73.9% of Issues Above 200-day Moving Average
• Average 14-Day RSI 47.8%
  
• Bloomberg Global Risk-On/Risk-Off Index 2,821.0 +155.0 points
• Russell 1000: Growth/Value 17,562 -.96%
  
• Vix 16.9 -2.4%
• Total Put/Call .74 -9.7%
• TRIN/Arms .82 +2.5%

Friday Watch

Evening Headlines

Bloomberg:           

• Japan’s Inflation Likely Below Zero as Cheaper Phones Weigh More.
• U.K. Starting Salaries Rise at Record Rate With Demand for Staff.
• Cars Fueled by Sugar in India Will Add to Food Inflation Risks.
  
• Singapore Eases Taiwan Rules; California Mandate: Virus Update.
• Asia Stocks Steady After Rally in U.S. on Earnings: Markets Wrap.
  
• Saudi Oil Challenged in Asia by Delta and Cheap Alternatives.
• Oil Heads for Biggest Weekly Loss This Year on Delta Concerns.
• BOE Turns Hawkish, Japan Deflation, U.S. Delta Slowdown: Eco Day.
• It’s Chaos on Wall Street as Delta Variant Upends Return to Work.
• Kellogg Says Pandemic-Era Supply Chain Upheaval Is Persisting.
  
• Biden Proposes Stronger Than Expected Vehicle Emission Rules.  
• Homebuilders in U.S. Ease Up on Price Hikes as Buyers Push Back.

Wall Street Journal:

• China’s Corporate Crackdown Is Just Getting Started. Signs Point to More Tumult Ahead.
• CNN Fires Three Staffers Who Came to Work Unvaccinated.
• Senate Bill to Repeal Iraq War Authorizations Draws Key Level of GOP Support.
• The Electric Vehicle Welfare State.
• Have No Illusions About the U.S. Withdrawal From Afghanistan.
• The GOP’s Bad Infrastructure Deal.
• Exxon Considers Pledging ‘Net Zero’ Carbon by 2050.
• Robinhood Stock Drops After News of Early Investors Set to Sell Shares.
  

Fox News:

• Mom says 'game on' after teachers union sues to prevent her from getting critical race theory records.
• Landlord 'drowning' in losses rips 'crazy' eviction ban after Biden backtracks.

NY Post: 

• US companies riddled with members of Chinese Communist Party: Devine. Boeing(BA), Qualcomm(QCOM) and Pfizer(PFE) are just three US companies that have employed dozens of CCP members in their Chinese facilities, the database reveals. 
  

CNBC.com: 

• Friday’s jobs report is a wild card, with economists’ estimates all over the map.
• Fauci warns more severe Covid variant could emerge as U.S. cases near 100,000 daily.
• Cloud stocks soar to fresh records as Datadog’s results help boost Cloudflare and Asana.
• Cramer’s list of cheap stocks to buy in a market trading at record highs.
• Beyond Meat says delta variant fears and labor challenges prompt fewer restaurant orders.
• Novavax delays Covid vaccine emergency authorization submission to FDA until fourth quarter.
• Levi Strauss to buy apparel brand Beyond Yoga, launching into activewear

Zero Hedge:

• FDA Reportedly Planning For COVID Vaccine Booster Shot Approval By September.
• 'Privacy Company' Apple Plans To Monitor All US iPhones For Evidence Of Child Porn.
• Quiet Roads In China Are Concern For Oil Markets.
• Iran's New Hardline President Sworn In, Vows 'Resistance' To "Arrogant" West.
• Vaccinations 'No Silver Bullet' - Aussie Senator Admits Restrictions Would Remain For Long Time.
• Biden DOJ Intervenes In Saudi Spymaster Case Over 'Damage To US National Security'.
• Howard Marks: "We Are In An Everything Bubble".
• Here Comes The Fear Campaign To Vaccinate All Of America's Minors.
• Beijing Walks Back Crackdown On Video Games, But Promises To Protect Teens From "Internet Dangers".
• Illinois' Gov. Pritzker Strips School Districts, Parents Of Control Over Masks With New Mandate.
• CBO Sees Infrastructure Bill Adding $250 Billion To Deficit Over 10 Years.
• Vaccine Success, Media Misery: Taibbi Asks - Is Good News Taboo In The Trump Age?
• Cryptos & Small Caps Surge As 'Hard' Data's Hammered To 2-Year Lows.

TheGatewayPundit.com:

• Psaki Admits Biden Admin is Dumping COVID-Positive Illegal Aliens Into McAllen, Texas (VIDEO).
• Information from Code Monkey Z Provides Additional Proof that Michigan Election Leaders ABSOLUTELY Destroyed Evidence When Changing Batteries in Voting Machines.
• WOW: Moderna Calls for 3rd Shot of Vaccine to Protect Against New Strains — On Same Day Company Posts $4 Billion 2nd Quarter Profit on Vaccine.
• “Conspiracy Theory” Over Aborted Babies For Organ Harvesting Leads To Be True And Government-Funded.
• WOW! After 7 Months FBI Stalks and Arrests Trump Supporter and “Insurrectionist” Dressed as George Washington for Walking into US Capitol on Jan. 6.

The Epoch Times:

• US Offers Temporary ‘Safe Haven’ to Hongkongers Amid Beijing’s Suppression.

Covid-19(Data, Maps, Graphs):

• Our World in Data:  New Global Covid-19 Cases(7-day rolling average graphs). New Covid Hospital Admissions/ICU Admissions/Deaths
  
• FT.com:  Fully Vaccinated by Country(graph). Global Lockdown Stringency Index(map).
  
• NYTimes.com:  County Trends and Clusters.
  
• Brown School of Public Health:  Covid Severity by State/County(map).  US Hospital Capacity.
  
• CovidActNow:  Covid Severity/Infection Rate by Metro Area.
  
• KFF:  US Vaccinations by Race/Ethnicity.
  
• Carnegie Mellon: Covid-Like Symptoms in Community. Covid Symptom Searches on Google. Covid-Related Dr.Visits.  Restaurant Visits. Wearing Masks. (graphs)
  
• Safegraph.com:  Commerce Patterns(graphs).

Night Trading 

• Asian equity indices are -.25% to +.5% on average.

• Asia Ex-Japan Investment Grade CDS Index 89.0 unch.

• China Sovereign CDS 38.75 -.25 basis point.
  

• Bloomberg Emerging Markets Currency Index 59.84 -.03%.
• Bloomberg Global Risk-On/Risk Off Index 2,621.0 -45.0 points.
• Volatility Index(VIX) futures 21.4 +.43%.
• FTSE 100 futures -.01%.

• S&P 500 futures -.06%.

• NASDAQ 100 futures unch. 

Morning Preview Links

Earnings of Note 
Company/Estimate 

 

Before the Open: 

• (D)/.77
• (DKNG)/-.58
• (FLR)/.08
• (GT)/.17
• (LEA)/2.47
• (MGA)/1.41
• (NCLH)/-2.00
• (NUAN)/.18
• (SRCL)/.67

After the Close:

• None of note
  

Economic Releases

8:30 am EST

• The Change in Non-Farm Payrolls for July is estimated to rise to 870K versus 850K in June.
• The Unemployment Rate for July is estimated to fall to 5.7% versus 5.9% in June.
• Average Hourly Earnings MoM for July is estimated to rise +.3% versus a +.3% gain in June.
  

10:00 am EST

• Wholesale Trade Sales MoM for June.
  

3:00 pm EST

• Consumer Credit for June is estimated to fall to $23.0B versus $35.28B in May.

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The China Trade Data report could also impact global trading today.

US Equity Market Hours

• 9:30 am - 4:00 pm EST
  

BOTTOM LINE: Asian indices are mostly higher, boosted by industrial and financial shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing mixed. The Portfolio is 100% net long heading into the day.

Stocks Higher into Final Hour on Diminished Virus Lockdown Fears, Earnings Optimism, Oil Gain, Gaming/Transport Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Around Average

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 17.3 -3.6%
• Bloomberg Global Risk On/Risk Off Index 2,668.0 +100.0 points

• Euro/Yen Carry Return Index 134.18 +.26%

• Emerging Markets Currency Volatility(VXY) 8.8 +.5%

• S&P 500 Implied Correlation 49.1 -.7%

• ISE Sentiment Index 108.0  -21.0 points
  

• Total Put/Call .80 -3.6%

• NYSE Arms 1.7 +114.1%

Credit Investor Angst:

• North American Investment Grade CDS Index 49.39 -1.5%
  

• US Energy High-Yield OAS 440.22 -.31%

• European Financial Sector CDS Index 53.94 -.31%

• Italian/German 10Y Yld Spread 103.0 -2.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 90.13 +.01%
  

• Emerging Market CDS Index 163.25 +.83%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 38.0 -.55%

• 2-Year Swap Spread 8.5 +.5 basis point

• TED Spread 7.75 unch.
  

• 3-Month EUR/USD Cross-Currency Basis Swap -2.75 unch.
  
• MBS  5/10 Treasury Spread  74.25 unch.
  
• IHS Markit CMBX BBB- 6 73.5 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 59.93 -.20%
• 3-Month T-Bill Yield .05% unch.
  

• Yield Curve 101.0 unch.
  

• China Iron Ore Spot 165.50 USD/Metric Tonne -5.74%

• Citi US Economic Surprise Index -3.4 -.6 point

• Citi Eurozone Economic Surprise Index 32.8 +2.0 points
  

• Citi Emerging Markets Economic Surprise Index 40.0 +2.3 points

• 10-Year TIPS Spread 2.32 -3.0 basis points
• 100.0% chance of no change at Nov. 3rd meeting, 100.0% chance of no change at Dec. 15th meeting

US Covid-19:

• 202 new infections/100K people(last 7 days total) +10/100K people
• 38% of Jan. 7th, 2021 peak(highest daily avg. new infections) +2.0 percentage points
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +92 open in Japan 
• China A50 Futures: Indicating -155 open in China

• DAX Futures: Indicating -3 open in Germany

Portfolio:

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

• Disclosed Trades: None
  

• Market Exposure: 100% Net Long
  

Bear Radar

Style Underperformer:

• Large-Cap Value +.5%

Sector Underperformers:

• 1) Healthcare Providers -2.7% 2) Steel -1.6% 3) Gold & Silver -1.0%

Stocks Falling on Unusual Volume: 

• AMD, GPRE, FMC, UPWK, FSLY, OCDX, XRAY, FTCV, LESL, ETSY, THS, ATEC, FTDR, MAXR, TVTY, LMND, CI, GDDY, CAH, SWIM, CCMP, RVLV, MOD, COMM, CENX, BYSI, PETQ, AMED, NVRO and ITRI
  

Stocks With Unusual Put Option Activity:

• 1) BYSI 2) XOP 3) ETSY 4) GPRE 5) CLR
  

Stocks With Most Negative News Mentions:

• 1) NVRO 2) HOOD 3) AMED 4) INGN 5) FVRR
  

Charts:

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

Bull Radar

Style Outperformer:

• Small-Cap Growth +1.6%

Sector Outperformers:

• 1) Gaming +5.3% 2) Airlines +3.7% 3) Oil Service +2.2%

Stocks Rising on Unusual Volume:

• ZY, ASTR, CCRN, ARCT, MVIS, SRPT, AHCO, HMHC, EDIT, DDOG, GOGO, BXC, SSSS, NTLA, ORMP, SEAS, HUBS, DFIN, W, PING, NVAX, BTBT, PENN, SQ, WYNN, ZI, HBI, VREX, ATCX, ELF, ALB, BOOT, OPCH, AES, BCRX, ATQT, CUTR, VG, NEWT, DVAX, CDLX, UBER, VIR, XLNX, BPMP, NLS, REGN and GM
  

Stocks With Unusual Call Option Activity:

• 1) IGV 2) XLNX 3) KKR 4) HBI 5) PENN

Stocks With Most Positive News Mentions:

• 1) SITM 2) MELI 3) HUBS 4) PING 5) BKNG
  

Charts:

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