Bear Radar

Style Underperformer:

• Large-Cap Value -.3%

Sector Underperformers:

• 1) Oil Service -1.3% 2) Energy -1.1% 3) Utilities -.7%

Stocks Falling on Unusual Volume: 

• AMBA, ZUO, BIG, GMS, GT and MGNX

Stocks With Unusual Put Option Activity:

• 1) CHK 2) AMBA 3) BIG 4) PSTG 5) AIMC

Stocks With Most Negative News Mentions:

• 1) ACAD 2) AMBA 3) EA 4) LCI 5) ATVI

Charts:

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

Bull Radar

Style Outperformer:

• Small-Cap Growth +.2%

Sector Outperformers:

• 1) Defense +1.1% 2) Retail +.6% 3) Networking +.4%

Stocks Rising on Unusual Volume:

• AOBC, IDTI, LULU, TLYS, ULTA, PDD, GGAL, PAGS, TGS, CGC, BOMN, SERV, CIEN, DKS, BMA, TITN, PVH, YPF, GKOS, EDN, TCX, SSTI, LN, NTB, RTRX, SMTC, EXPR and TITN

Stocks With Unusual Call Option Activity:

• 1) DNR 2) ULTA 3) YUM 4) AIMC 5) ON

Stocks With Most Positive News Mentions:

• 1) ULTA 2) CIEN 3) LULU 4) AOBC 5) VHC

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running -28.2% Below 100-Day Average
• 8 Sectors Rising, 3 Sectors Declining
• 46.3% of Issues Advancing, 49.2% Declining
• 58 New 52-Week Highs, 32 New Lows
• 55.0% of Issues Above 200-day Moving Average
• Average 14-Day RSI 49.3%
• Vix 13.0 -4.2%
• Total Put/Call 1.0 +22.0%
• TRIN/Arms 1.19 -27.7%

Friday Watch

Night Trading 

• Asian equity indices are -.5% to unch. on average.
• Asia Ex-Japan Investment Grade CDS Index 81.5 +2.75 basis points. 
• Asia Pacific Sovereign CDS Index 10.5 +.25 basis point
• Bloomberg Emerging Markets Currency Index 65.44 -.26%.
• FTSE 100 futures -.65%.
• S&P 500 futures -.11%.
• NASDAQ 100 futures -.06%.

Morning Preview Links

Earnings of Note
Company/Estimate
Before the Open:

• (BIG)/.67

After the Close:

• None of note

Economic Releases 
9:45 am EST

• The Chicago Purchasing Manager for August is estimated to fall to 63.0 versus 65.5 in July.

Upcoming Splits

• None of note

Other Potential Market Movers

• The China Manufacturing PMI report and the Eurozone CPI  report could also impact trading today.

BOTTOM LINE:  Asian indices are mostly lower, weighed down by technology and financial shares in the region. I expect US stocks to open mixed and to weaken into the afternoon, finishing modestly lower.  The Portfolio is 75% net long heading into the day.

Stocks Lower into Final Hour on Trade War Fears, European/Emerging Markets Debt Angst, Profit-Taking, Metals&Mining/Telecom Sector Weakness

 Broad Equity Market Tone:

• Advance/Decline Line: Modestly Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Below Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 13.3 +8.5%

• Euro/Yen Carry Return Index 134.69 -.99%

• Emerging Markets Currency Volatility(VXY) 12.70 +4.44%

• S&P 500 Implied Correlation 31.53 +3.6%

• ISE Sentiment Index 95.0 +13.1%
  

• Total Put/Call .83 -1.19%

• NYSE Arms 1.81 +83.6%

Credit Investor Angst:

• North American Investment Grade CDS Index 60.53 +3.29%
  

• America Energy Sector High-Yield CDS Index 405.0 +1.55%

• European Financial Sector CDS Index 83.45 +3.56%

• Italian/German 10Y Yld Spread 287.0 +15.0 basis points
  

• Asia Pacific Sovereign Debt CDS Index 10.5 +1.70%

• Emerging Market CDS Index 230.57 +7.18%
  

• iBoxx Offshore RMB China Corporate High Yield Index 151.28 +.02%

• 2-Year Swap Spread 18.5 +1.0 basis point

• TED Spread 20.0 +.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -12.0 -1.25 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 65.55 -1.02%
• 3-Month T-Bill Yield 2.10% -2.0 basis points

• Yield Curve 20.75 unch.

• China Iron Ore Spot 66.11 USD/Metric Tonne +1.71%

• Citi US Economic Surprise Index -18.40 -.5 point

• Citi Eurozone Economic Surprise Index 2.90 -.8 point

• Citi Emerging Markets Economic Surprise Index -11.0 -.7 point

• 10-Year TIPS Spread 2.11 -1.0 basis point
  
• 94.8% chance of Fed rate hike at Nov. 8th meeting, 98.2% chance at Dec. 19th meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -184 open in Japan 
• China A50 Futures: Indicating -135 open in China

• DAX Futures: Indicating -39 open in Germany

Portfolio: 

• Slightly Lower: On losses in my tech/industrial/retail sector longs

• Disclosed Trades: Added to my (IWM)/(QQQ) hedges and to my emerging market shorts

• Market Exposure: Moved to 75% Net Long

Bear Radar

Style Underperformer:

• Mid-Cap Value -.6%

Sector Underperformers:

• 1) Gold & Silver -2.1% 2) Steel -2.0% 3) Telecom -1.9%

Stocks Falling on Unusual Volume: 

• TECD, DLTR, PDCO, GGAL, EA, ANF, PVH, TGS, BMA, MIK, HOME, DVA, CGC, YPF, PDD, PAM, CJ and RES

Stocks With Unusual Put Option Activity:

• 1) EA 2) DLTR 3) CIEN 4) DG 5) PNC

Stocks With Most Negative News Mentions:

• 1) HSIC 2) DVA 3) RES 4) THG 5) BLK

Charts:

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