Bull Radar

Style Outperformer:

• Large-Cap Growth +.7%

Sector Outperformers:

• 1) Software +1.8% 2) Networking +1.2% 3) Healthcare Providers +.9%

Stocks Rising on Unusual Volume:

• ORCL, EPAY, LWLG, CORT, HALO, CXM, WEAV, ASO, AVGO, F, COST, JBL, DMTK, CDNA, CCK, LCID, CNC, AI, S, LH, JNPR and LESL
  

Stocks With Unusual Call Option Activity:

• 1) AVCT 2) AVGO 3) CWH 4) ORCL 5) COST

Stocks With Most Positive News Mentions:

• 1) ORCL 2) ASO 3) F 4) AVGO 5) COST
  

Charts:

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

Mid-Day Market Internals

NYSE Composite Index:

• Volume Running -10.9% Below 100-Day Average 
• 7 Sectors Rising, 4 Sectors Declining
• 39.1% of Issues Advancing, 56.7% Declining
• 30 New 52-Week Highs, 51 New Lows
• 52.6% of Issues Above 200-day Moving Average
• Average 14-Day RSI 48.1%
• Bloomberg Global Risk-On/Risk-Off Index 2,685.0 +104.0 points
• Russell 1000: Growth/Value 18,515 +.39%
  
• Vix 19.8 -8.1%
• Total Put/Call 1.01 +14.8%
• TRIN/Arms 1.15 +19.8%

Friday Watch

Night Trading 

• Asian equity indices are -.75% to -.25% on average.

• Asia Ex-Japan Investment Grade CDS Index 87.5 -1.5 basis points. 

• China Sovereign CDS 45.5 -2.5 basis points.
  

• Bloomberg Emerging Markets Currency Index 53.52 -.06%. 
• Bloomberg Global Risk-On/Risk Off Index 2,570.0 -10.0 points.
• Volatility Index(VIX) futures 23.7 +.4%.
• Euro Stoxx 50 futures -.48%.

• S&P 500 futures unch.

• NASDAQ 100 futures +.02%. 

Morning Preview Links

Earnings of Note 
Company/Estimate 

 

Before the Open: 

• (ASO)/1.11

After the Close:

• None of note
  

Economic Releases 

8:30 am EST

• The CPI MoM for Nov. is estimated to rise +.7% versus a +.9% gain in Oct.
• The CPI Ex Food and Energy MoM for Nov. is estimated to rise +.5% versus a +.6% gain in Oct.
• Real Avg. Weekly Earnings YoY for Nov.
  

10:00 am EST

• Univ. of Mich. Consumer Sentiment for Dec. is estimated to rise to 68.0 versus 67.4 in Nov.

2:00 pm EST

• The Monthly Budget Deficit for Nov. is estimated at -$193.0B versus -$143.3B in Oct.

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The UK Manufacturing Report, (HPE) fireside chat, (CNC) investor day and the (ADM) investor day could also impact global trading today.

US Equity Market Hours

• 9:30 am - 1:00 pm EST
  

BOTTOM LINE: Asian indices are modestly lower, weighed down by energy and consumer 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 Final Hour on Geopolitical Worries, Global Virus Lockdown Fears, Oil Decline, Alt Energy/Tech Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Mixed
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 20.6 +3.5%
• Bloomberg Global Risk On/Risk Off Index 2,650.0 -92.0 points

• Euro/Yen Carry Return Index 132.22 -.57%

• Emerging Markets Currency Volatility(VXY) 10.9 -.4%

• CBOE S&P 500 Implied Correlation Index 28.9 +4.0% 

• ISE Sentiment Index 138.0  -28.0 points
  

• Total Put/Call .81 -6.9%

• NYSE Arms .89 -4.3%

Credit Investor Angst:

• North American Investment Grade CDS Index 54.36 +1.4%
  

• US Energy High-Yield OAS 415.86 +1.9%

• European Financial Sector CDS Index 61.47 -1.5%

• Italian/German 10Y Yld Spread 135.0 +1.0 basis point
  

• Asia Ex-Japan Investment Grade CDS Index 86.56 -.95%
  

• Emerging Market CDS Index 192.62 +2.0%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 33.26 +.26%

• 2-Year Swap Spread 20.75 +1.0 basis point
  

• TED Spread 14.25 +.25 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -12.0 +2.5 basis points
  
• MBS  5/10 Treasury Spread  70.25 +.5 basis point
  
• IHS Markit CMBX BBB- 6 72.75 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 53.54 -.48%
• 3-Month T-Bill Yield .06% unch.
  

• Yield Curve 82.25 +4.75 basis points
  

• China Iron Ore Spot 110.5 USD/Metric Tonne -.3%

• Citi US Economic Surprise Index 31.6 -.2 point

• Citi Eurozone Economic Surprise Index 7.7 +3.9 points
  

• Citi Emerging Markets Economic Surprise Index -12.4 -.1 point

• 10-Year TIPS Spread 2.50 -5.0 basis points
• 92.6%(-1.4 percentage points) chance of no change at Jan. 26th meeting, 64.2%(-.7 percentage point) chance of no change at March 16th meeting

US Covid-19:

• 260 new infections/100K people(last 7 days total) +4/100K people
• 49% of Jan. 7th, 2021 peak(highest daily avg. new infections) +1.0 percentage point
  

Overseas Futures:

• Nikkei 225 Futures: Indicating -10 open in Japan 
• China A50 Futures: Indicating +33 open in China

• DAX Futures: Indicating -9 open in Germany

Portfolio:

• Slightly Lower: On losses in my tech/consumer discretionary sector longs
  

• Disclosed Trades:  Added to my (IWM)/(QQQ) hedges
  

• Market Exposure:  Moved to 75% Net Long
  

Bear Radar

Style Underperformer:

• Small-Cap Growth -1.8%

Sector Underperformers:

• 1) Alt Energy -2.9% 2) Gold & Silver -2.9% 3) Video Gaming -2.4%

Stocks Falling on Unusual Volume: 

• DOCU, ALXO, CORT, ACI, CFLT, LH, WMG, LWLG, ADC, CHTR, FUBO, ROKU, SPWH, CONN, LZ, CFVI, GTLB, NCR, SUMO, RNG, PHR, CURV and RETA
  

Stocks With Unusual Put Option Activity:

• 1) BHC 2) SPHB 3) CIEN 4) CKPT 5) CVNA
  

Stocks With Most Negative News Mentions:

• 1) TGLS 2) RETA 3)  4) CURV 5) PHR
  

Charts:

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

Bull Radar

Style Outperformer:

• Large-Cap Value +.1%

Sector Outperformers:

• 1) Networking +2.7% 2) Homebuilding +1.2% 3) Road & Rail +.7%

Stocks Rising on Unusual Volume:

• CIEN, ARHS, RH, CBAH, PI, SFIX, EVGO, HRL, INGN, GTN, TYRA, ACAD, XMTR, LOVE, MP, LITE, AOSL, CVS, BSIG, SWBI, CCS, CADE, JAMF and RAD
  

Stocks With Unusual Call Option Activity:

• 1) HTA 2) NCR 3) CVNA 4) RH 5) DOCU

Stocks With Most Positive News Mentions:

• 1) AVCT 2) HOV 3) CIEN 4) ANET 5) RH
  

Charts:

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