Morning Market Internals

NYSE Composite Index:

• Volume Running -1.3% Below 100-Day Average 
• 7 Sectors Rising, 4 Sectors Declining
• 49.3% of Issues Advancing, 46.7% Declining
• 93 New 52-Week Highs, 22 New Lows
• 62.0% of Issues Above 200-day Moving Average
• Average 14-Day RSI 52.2%
• Bloomberg Global Risk-On/Risk-Off Index 3,125.0 +153.0 points
• Russell 1000: Growth/Value 18,122 +.59%
  
• Vix 16.9 -4.3%
• Total Put/Call .76 +2.7%
• TRIN/Arms 1.36 +97.1%

Friday Watch

Night Trading 

• Asian equity indices are unch. to +1.0% on average.

• Asia Ex-Japan Investment Grade CDS Index 90.25 -.5 basis point.

• China Sovereign CDS 54.25 +.25 basis point.
  

• Bloomberg Emerging Markets Currency Index 57.80 -.06%. 
• Bloomberg Global Risk-On/Risk Off Index 2,946.0 -24.0 points.
• Volatility Index(VIX) futures 20.6 -.94%.
• Euro Stoxx 50 futures +.24%.

• S&P 500 futures +.24%

• NASDAQ 100 futures +.36%. 

Morning Preview Links

Earnings of Note 
Company/Estimate 

 

Before the Open: 

• (AZN)/1.25
• (WRBY)/-.22
  

After the Close:

• None of notge
  

Economic Releases

10:00 pm EST

• The JOLTs Job Openings report for Sept. is estimated to fall to 10300K versus 10439K in Aug.
• Univ. of Mich. Consumer Confidence for Nov. is estimated to rise to 72.5 versus 71.7 in Oct.
• Univ. of Mich. 1 Yr Inflation Expectation estimated to rise to +4.9% versus +4.8% in Oct.
  

Upcoming Splits

• (ANET) 4-for-1
  

Other Potential Market Movers

• The Eurozone Industrial Production report, (EL) analyst meeting and the (BDX) 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 higher, boosted by technology and metals/mining shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing mixed. The Portfolio is 75% net long heading into the day.

Stocks Slightly Higher into Final Hour on Diminished China Debt Bubble Bursting Angst, Stable Long-Term Rates(TLT), Short-Covering, Alt Energy/Metals & Mining Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Around Average

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 17.4 -7.0%
• Bloomberg Global Risk On/Risk Off Index 2,975.0 +171.0 points

• Euro/Yen Carry Return Index 134.66 -.11%

• Emerging Markets Currency Volatility(VXY) 9.0 +.11%

• S&P 500 Implied Correlation 50.3 -.1%

• ISE Sentiment Index 126.0  -5.0 points
  

• Total Put/Call .72 -17.2%

• NYSE Arms .67 -5.6%

Credit Investor Angst:

• North American Investment Grade CDS Index 51.43 +.56%
  

• US Energy High-Yield OAS 382.25 n/a

• European Financial Sector CDS Index 56.91 +1.35%

• Italian/German 10Y Yld Spread 119.0 +1.0 basis point
  

• Asia Ex-Japan Investment Grade CDS Index 89.53 -.2%
  

• Emerging Market CDS Index 179.72 +.15%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 33.0 +1.8%

• 2-Year Swap Spread 22.5 -.5 basis point
  

• TED Spread 10.75 +.5 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -21.5 unch.
  
• MBS  5/10 Treasury Spread  63.75 +1.5 basis points
  
• IHS Markit CMBX BBB- 6 73.0 +.25 basis point
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 57.92 -.66%
• 3-Month T-Bill Yield .05% n/a
  

• Yield Curve 103.0 n/a
  

• China Iron Ore Spot 91.60 USD/Metric Tonne +2.1%

• Citi US Economic Surprise Index 19.2 +2.3 points

• Citi Eurozone Economic Surprise Index -50.1 +.5 point
  

• Citi Emerging Markets Economic Surprise Index -23.2 -1.9 points

• 10-Year TIPS Spread 2.71 +1.0 basis point
• 95.0% chance of no change at Jan. 26th meeting, 83.0% chance of no change at March 16th meeting

US Covid-19:

• 162 new infections/100K people(last 7 days total) +3/100K people
• 31% of Jan. 7th, 2021 peak(highest daily avg. new infections) +1.0 percentage point
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +181 open in Japan 
• China A50 Futures: Indicating +74 open in China

• DAX Futures: Indicating +7 open in Germany

Portfolio:

• Slightly Higher: On gains in my tech/consumer discretionary/commodity sector longs
  

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

• Market Exposure:  Moved to 75% Net Long
  

Bear Radar

Style Underperformer:

• Large-Cap Value +.2%

Sector Underperformers:

• 1) Medical Equipment -1.1% 2) Restaurants -1.1% 3) Utilities -.8%

Stocks Falling on Unusual Volume: 

• TTCF, OGN, JAMF, SHC, APR, RRGB, DIS, YETI, DMTK, ODP, SMRT, DDD, HAIN, SDGR, FIGS, LZ, CRTX, CRCT, BYND, ESMT, BLND, BMBL and OSCR
  

Stocks With Unusual Put Option Activity:

• 1) EGHT 2) LQD 3) IMGN 4) EWH 5) DIS
  

Stocks With Most Negative News Mentions:

• 1) BHG 2) PSFE 3) BHG 4) BLND 5) BYND
  

Charts:

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

Bull Radar

 Style Outperformer:

• Small-Cap Value +1.2%

Sector Outperformers:

• 1) Alt Energy +5.9% 2) Steel +4.7% 3) Gold & Silver +3.6%

Stocks Rising on Unusual Volume:

• FOSL, EVGO, APP, SOFI, PTRA, FSR, BZH, QS, THRY, OPEN, IAS, ZIP, XMTR, SHLS, ONDS, EPC, SWIM, AFRM, LCID, AA, FCEL, INDI, ME, SBH, PLUG, RXRX, MSP, COGT, DDS, TPR, GPRO, NVCR, FCX, DASH, NEGG, BLNK, LAZR, STEM, POSH, SEAH, SCCO, BGFV, VZIO, CNR, MCS, U, AOSL, TDUP, DIBS, IONQ, ARCT, MLI, LAND, OVV, SITM, VITL, VLTA, DUOL, VUZI, INSE, LPRO, RBLX, KDNY, CRSR, EGLE and SPTN
  

Stocks With Unusual Call Option Activity:

• 1) EGHT 2) LQD 3) EWH 4) IMGN 5) DIS

Stocks With Most Positive News Mentions:

• 1) FOSL 2) SOFI 3) APP 4) ZIP 5) CGEN
  

Charts:

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

Mid-Day Market Internals

NYSE Composite Index:

• Volume Running +8.8% Above 100-Day Average 
• 6 Sectors Rising, 5 Sectors Declining
• 57.2% of Issues Advancing, 38.9% Declining
• 63 New 52-Week Highs, 40 New Lows
• 62.0% of Issues Above 200-day Moving Average
• Average 14-Day RSI 52.2%
• Bloomberg Global Risk-On/Risk-Off Index 2,969.0 +164.0 points
• Russell 1000: Growth/Value 18,037 +.27%
  
• Vix 17.7 -5.6%
• Total Put/Call .72 -17.2%
• TRIN/Arms .70 -1.4%