Bear Radar

Style Underperformer:

• Mid-Cap Growth -1.7%

Sector Underperformers:

• 1) Airlines -4.6% 2) Gold & Silver -4.0% 3) Computer Hardware -3.6%

Stocks Falling on Unusual Volume: 

• HSBC, MT, RCUS, HMY, SOFI, GKOS, CEG, JKS, STM, CROX, ENSG, PHYS, MAMA, MRVL, ARCB, XP, AVGO, LMB, CELC, SWBI, TFII, BLD, GM, TOYO, AEM, UMC, XPO, BILL, AAL, AGI, GFI, AKR, TLN, NET, PPTA, SLM, NXT, ODFL, GLXY, FCEL, CAT, OMDA, FLNC, VSH, GEV, DMRA, TNGX, AU, FLNC, SW, INSM, SKM, CCJ, METC, GNRC, DRUG, FPS, SAIL, PRE, DNTH, PRIM, SA, ADUR, QXO, HIMX, CGEM, WOLF, BE, SMMT, EZPW, LAZ and SMCI

Stocks With Unusual Put Option Activity:

• 1) EWG 2) EQT 3) BNY 4) EOSE 5) MMM

Stocks With Most Negative News Mentions:

• 1) UNFI 2) CRM 3) DBI 4) CRNC 5) MRVL

Sector ETFs With Most Negative Money Flow:

• 1) ITA 2) RAAX 3) BAI 4) KWEB 5) SKYY

Charts:

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

Bull Radar

Style Outperformer:

• Small-Cap Value -.2%

Sector Outperformers:

• 1) Energy +2.3% 2) Oil Service +1.0% 3) Telecom +1.0%

Stocks Rising on Unusual Volume:

• FAC, CBRL, VELO, CASY, HROW, UNFI, ALOY, MUSA, TGTX, AAOI, CHA, APPS, DXYZ, TTI, OFRM, BJRI, HOOD, ELF, CAVA, BKH, NWE, DKNG, TLK, FUN, PENN, ZLAB, BILI, NP, GLIBK, BROS, NTES, CNK, LMND, RNR, AMRX, ICHR, CPB, RYAN, VPG, AVO, DQ, RSI, TEM, OOMA, YUMC, TEO, CRDO and PTRN

Stocks With Unusual Call Option Activity:

• 1) HPP 2) SGML 3) NRG 4) CBRL 5) CRK 

Stocks With Most Positive News Mentions:

• 1) CBRL 2) CASY 3) CLOV 4) FRMI 5) SJM

Sector ETFs With Most Positive Money Flow:

• 1) SMH 2) IGV 3) ESML 4) CHAT 5) XLK

Charts: 

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

Tomorrow's Earnings/Economic Releases of Note; Market Movers

Earnings of Note 
Company/Estimate 

Before the Open:

• (DRVN)/.24

After the Close: 

• (ADBE)/5.82
• (LEN)/1.24
• (RH)/-2.12 

Economic Releases 

8:30 am EST

• Initial Jobless Claims for last week is estimated to fall to 220K versus 225K the prior week. 
• Continuing Claims is estimated to rise to 1785K versus 1777K prior. 
• PPI Final Demand MoM for May is estimated to rise +.7% versus a +1.4% gain in April.
• PPI Ex Food and Energy MoM for May is estimated to rise +.5% versus a +1.0% gain in April. 

12:00 am EST

• Household Change in Net Worth for 1Q. 

Upcoming Splits

• KLAC 10-for-1

Other Potential Market Movers

• The ECB Meeting, 30Y T-Bond auction, OPEC Monthly Report, WASDE report, weekly EIA natural gas inventory report. (ENS) investor day, (WFRD) annual meeting, (GNRC) annual meeting, (OLLI) annual meeting, (IR) annual meeting, (CMG) annual meeting, (LYV) annual meeting, (ASTS) annual meeting, (CPNG) annual meeting, (ZM) annual meeting, (HON) investor day, (HIMS) annual meeting and the Davidson Tech/Consumer Conference could also impact global trading tomorrow.

US Equity Market Hours

• 9:30 am - 4:00 pm EST

Afternoon Market Internals

NYSE Composite Index:

• Volume Running -6.0% Below 100-Day Average 
• Nasdaq/NYSE Volume Ratio 12.8 -2.5
• 4 Sectors Rising, 7 Sectors Declining
• 49.4% of Issues Advancing, 48.3% Declining 
• TRIN/Arms .88 -3.3%
• Non-Block Money Flow -$34.6M
  
• 105 New 52-Week Highs, 44 New Lows
• 53.4% (-.9%) of Issues Above 200-day Moving Average
• Average 14-Day RSI 52.1 +1.4

Polymarket: 

• Will China invade Taiwan by end of 2026? 7.0% unch.
• Trump announces US blockade of Hormuz lifted by June 30th 33.0% -5.0 percentage points
• US x Iran permanent peace deal by June 30th 17.0% -3.0 percentage points 
• US announces new Iran agreement/ceasefire extension by June 30th 36.0% -9.0 percentage points
• US Invades Iran before 2027 18.0% -1.0 percentage point

Other:

• Bloomberg Global Risk-On/Risk-Off Index 119.5 -.4%
• Global Monitor Iran Instability Index 65.0 -7.0
• Strait of Hormuz Oil Tanker Traffic Curtailed Estimate 97.0% +14.0 percentage points
• US High-Yield Tech Sector OAS Index 445.75 +5.75 basis points
• Bloomberg Cyclicals/Defensives Index 252.5 -2.0%
• Morgan Stanley Growth vs Value Index 152.3 -2.6%
• CNN Fear & Greed Index 29.0 (FEAR) unch.
• 1-Day Vix 20.7 +.4%
• Vix 21.8 +9.5%
  
• Total Put/Call .87 -9.4%

Mid-Day Market Internals

NYSE Composite Index:

• Volume Running -6.0% Below 100-Day Average 
• Nasdaq/NYSE Volume Ratio 12.8 -2.5
• 4 Sectors Rising, 7 Sectors Declining
• 49.4% of Issues Advancing, 48.3% Declining 
• TRIN/Arms .88 -3.3%
• Non-Block Money Flow -$34.6M
  
• 105 New 52-Week Highs, 44 New Lows
• 53.4% (-.9%) of Issues Above 200-day Moving Average
• Average 14-Day RSI 52.1 +1.4

Polymarket: 

• Will China invade Taiwan by end of 2026? 7.0% unch.
• Trump announces US blockade of Hormuz lifted by June 30th 33.0% -5.0 percentage points
• US x Iran permanent peace deal by June 30th 17.0% -3.0 percentage points 
• US announces new Iran agreement/ceasefire extension by June 30th 36.0% -9.0 percentage points
• US Invades Iran before 2027 18.0% -1.0 percentage point

Other:

• Bloomberg Global Risk-On/Risk-Off Index 119.5 -.4%
• Global Monitor Iran Instability Index 65.0 -7.0
• Strait of Hormuz Oil Tanker Traffic Curtailed Estimate 97.0% +14.0 percentage points
• US High-Yield Tech Sector OAS Index 445.75 +5.75 basis points
• Bloomberg Cyclicals/Defensives Index 252.5 -2.0%
• Morgan Stanley Growth vs Value Index 152.3 -2.6%
• CNN Fear & Greed Index 29.0 (FEAR) unch.
• 1-Day Vix 20.7 +.4%
• Vix 21.8 +9.5%
  
• Total Put/Call .87 -9.4%

Wednesday Watch

Night Trading 

• Asian equity indices are -1.0% to unch. on average. 
• Asia Ex-Japan Investment Grade CDS Index 73.0 -.5 basis point. 
• China Sovereign CDS 40.25 -.25 basis point.
• China Iron Ore Spot 100.9 USD/Metric Tonne +.2%. 
• Crude Oil 89.0/bbl. +.9% 
• Gold 4,215.60 USD/t oz. -1.6%. 
• Swiss Franc/Offshore Chinese Renminbi Cross 8.48 -.15%.
• Bloomberg Emerging Markets Currency Index 35.0 -.03%.
• Bloomberg Global Risk-On/Risk Off Index 120.5 +.5%.
• US 10-Year Yield 4.54% +2.0 basis points.
• Japan 30-Year Yield 3.87% -2.0 basis points. 
• Volatility Index(VIX) futures 20.5 -.3%.
• Euro Stoxx 50 futures +.31%. 
• S&P 500 futures -.20%.
• NASDAQ 100 futures -.30%.

Morning Preview Links

BOTTOM LINE: Asian indices are mostly lower, weighed down by technology and financial shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing mixed.  The Portfolio is 50% net long heading into the day.