Bull Radar

 Style Outperformer:

• Small-Cap Value +.1%

Sector Outperformers:

• 1) Digital Health +1.8% 2) Alt Energy +1.4% 3) Education +1.2%

Stocks Rising on Unusual Volume:

• CURI, SEER, OSUR, LCID, TMO, MTTR, VLTA, CHRS, ORIC, TRHC, LYEL, BLI, ZUMZ, NABL, APPS, BLDE, IVZ, SBTX, CRC, BYND, SATS, OSCR, CNC, SFIX, HLF, REKR, SLQT, TASK, FIVN, AN, JOAN, FANG and SNDX
  

Stocks With Unusual Call Option Activity:

• 1) CRVS 2) RGS 3) TMO 4) ENG 5) SWCH

Stocks With Most Positive News Mentions:

• 1) FORG 2) SDC 3) RKLY 4) TMO 5) ZUMZ
  

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running +8.2% Above 100-Day Average 
• 1 Sector Rising, 10 Sectors Declining
• 33.3% of Issues Advancing, 61.9% Declining
• 47 New 52-Week Highs, 16 New Lows
• 61.7% of Issues Above 200-day Moving Average
• Average 14-Day RSI 44.7%
  
• Bloomberg Global Risk-On/Risk-Off Index 3,000.0 -14.0 points
• Russell 1000: Growth/Value 18,001 -.30%
  
• Vix 19.8 +5.7%
• Total Put/Call .88 +6.0%
• TRIN/Arms 1.22 -.96%

Friday Watch

Night Trading 

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

• Asia Ex-Japan Investment Grade CDS Index 67.5 +.75 basis point.

• China Sovereign CDS 34.5 +1.25 basis points.
  

• Bloomberg Emerging Markets Currency Index 59.91 -.04%.
• Bloomberg Global Risk-On/Risk Off Index 2,901.0 -111.0 points.
• Volatility Index(VIX) futures 20.8 +1.1%.
• FTSE 100 futures unch.

• S&P 500 futures -.16%

• NASDAQ 100 futures -.20%. 

Morning Preview Links

Earnings of Note 
Company/Estimate 

 

Before the Open: 

• (MANU)/-.16
  

After the Close:

• None of note
  

Economic Releases

10:00 am EST

• Univ. of Mich. Consumer Confidence for Sept. is estimated to rise to 72.0 versus 70.3 in Aug.
  

Upcoming Splits

• (RJF) 3-for-2
  

Other Potential Market Movers

• The Eurozone CPI report, FDA meeting on booster shots and the (MOH) investor day could also impact global trading today.

US Equity Market Hours

• 9:30 am - 4:00 pm EST
  

BOTTOM LINE: Asian indices are modestly lower, weighed down by commodity and industrial 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 Slightly Lower into Afternoon on Tax Hike Fears, China Debt Bubble Worries, Labor/Product Shortage Concerns, Commodity/Alt Energy Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Below Average

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 18.7 +3.0%
• Bloomberg Global Risk On/Risk Off Index 2,993.0 -14.0 points

• Euro/Yen Carry Return Index 133.12 -.22%

• Emerging Markets Currency Volatility(VXY) 8.54 +.95%.

• S&P 500 Implied Correlation 54.44 +2.5%

• ISE Sentiment Index 135.0  +28.0 points
  

• Total Put/Call .80 -4.8%

• NYSE Arms 1.11 +33.7%

Credit Investor Angst:

• North American Investment Grade CDS Index 46.37 +.12%
  

• US Energy High-Yield OAS 377.10 -.94%

• European Financial Sector CDS Index 50.57 -1.0%

• Italian/German 10Y Yld Spread 99.5 -.5 basis point
  

• Asia Ex-Japan Investment Grade CDS Index 67.19 +.46%
  

• Emerging Market CDS Index 154.09 +.90%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 37.8 -.62%

• 2-Year Swap Spread 10.75 +.25 basis point
  

• TED Spread 8.25 unch.
  

• 3-Month EUR/USD Cross-Currency Basis Swap -4.5 unch.
  
• MBS  5/10 Treasury Spread  74.25 +1.25 basis points
  
• IHS Markit CMBX BBB- 6 72.25 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 59.90 -.56%
• 3-Month T-Bill Yield .03% -1.0 basis point
  

• Yield Curve 109.0 +1.0 basis point
  

• China Iron Ore Spot 103.0 USD/Metric Tonne -8.3%

• Citi US Economic Surprise Index -44.6 +17.1 points

• Citi Eurozone Economic Surprise Index -18.5 -.6 point
  

• Citi Emerging Markets Economic Surprise Index 6.3 +1.6 points

• 10-Year TIPS Spread 2.36 +1.0 basis point
• 100.0% chance of no change at Nov. 3rd meeting, 100.0% chance of no change at Dec. 15th meeting

US Covid-19:

• 328 new infections/100K people(last 7 days total) -4/100K people
• 62% of Jan. 7th, 2021 peak(highest daily avg. new infections) unch.
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +17 open in Japan 
• China A50 Futures: Indicating +13 open in China

• DAX Futures: Indicating +45 open in Germany

Portfolio:

• Higher: On gains in my biotech/consumer discretionary sector longs, index hedges and emerging market shorts
  

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

• Market Exposure: Moved to 100% Net Long
  

Bear Radar

 Style Underperformer:

• Large-Cap Value -.3%

Sector Underperformers:

• 1) Gold & Silver -5.3% 2) Oil Service -2.4% 3) Steel -2.1%

Stocks Falling on Unusual Volume: 

• WYNN, AMR, SIL, BYND, FSR, BLI, SBTX, AERI and MGNX
  

Stocks With Unusual Put Option Activity:

• 1) DELL 2) LIFE 3) FIVN 4) URA 5) URI
  

Stocks With Most Negative News Mentions:

• 1) AERI 2) BLI 3) PLL 4) BYND 5) FSR
  

Charts:

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

Bull Radar

Style Outperformer:

• Mid-Cap Growth +.3%

Sector Outperformers:

• 1) Homebuilding +2.4% 2) Airlines +2.1% 3) Retail +1.4%

Stocks Rising on Unusual Volume:

• OPAD, IRNT, LWLG, GWB, CAR, RSI, ANGI, DNMR, LCID, AFRM, HAYW, TGNA, MTTR, DASH, INVE, TASK, PLTR, PRCH, FIGS, WFRD, APG, DOCN, AGC, APG and LAUR
  

Stocks With Unusual Call Option Activity:

• 1) NRG 2) APRN 3) LIFE 4) CAR 5) TMUS

Stocks With Most Positive News Mentions:

• 1) LPTX 2) RSI 3) ONON 4) CWPE 5) CAR
  

Charts:

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