Bull Radar

Style Outperformer:

• Large-Cap Growth -.26%

Sector Outperformers:

• 1) Gold & Silver +4.19% 2) Steel +1.89% 3) Oil Service +1.08%
  

Stocks Rising on Unusual Volume:

• HME, TOUR, YOKU, USLV, TSLA, DD, JOY and PRXL

Stocks With Unusual Call Option Activity:

• 1) KSS 2) CY 3) HRB 4) NVAX 5) CLDN
  

Stocks With Most Positive News Mentions:

• 1) SCCO 2) NEM 3) HP 4) AAPL 5) F
  

Charts:

• ETFs Rising on Unusual Volume 

• Stocks Rising on Unusual Volume

Morning Market Internals

NYSE Composite Index:

• Volume Running 7.1% Below 100-day average
• 8 Sectors Rising, 2 Sectors Declining
• 68.3% of Issues Advancing, 28.3% Declining
• 90 New 52-Week Highs, 4 New Lows
• 58.9% of Issues Above 200-day Moving Average
• Average 14-Day RSI 46.2
• Vix 12.45
• Total Put/Call .68
• TRIN/Arms .98

Monday Watch

Today's Headlines 
Bloomberg: 

• Greece’s Day of Reckoning Inches Closer as Debt Payments Loom. Greece will look for ways to assemble enough cash to pay its pensioners and employees this week, after euro area finance ministers on Friday said they won’t disburse more aid until bailout terms are met. Europe’s most-indebted state will use the deposits of local governments, cities and other funds to meet end-of month payments totaling over 1.5 billion euros ($1.6 billion). By doing so, they risk straining liquidity buffers, after households and companies withdrew almost 1.3 billion euros in savings last week, according to a person who wasn’t authorized to speak publicly on the matter.  

• Fresh Tremors Hamper Nepal’s Search for Quake Survivors. The search for survivors of Nepal’s deadly earthquake entered its third day as countries rushed aid to one of Asia’s poorest economies and international relief agencies warned of the rising risk of water-borne disease. Dozens of aftershocks -- including one that reached a magnitude of 6.7 -- hindered rescue efforts with around 50 tremors logged since Saturday’s magnitude 7.8 earthquake, adding to the chaos as panicked residents avoid returning to damaged homes. The quake killed more than 2,300 people and injured as many as 5,000, with the toll still rising. 

• War Haunts Russia’s Southern Fringe, Putting Pipelines at Risk. Russia’s southern periphery is closer to open war than at any time since the 1990s. Hostilities between Azerbaijan and Armenia are mounting 21 years after a cease-fire froze a conflict that flared in the dying days of the Soviet Union. During the relative calm, companies including BP Plc poured billions of dollars into producing oil and gas in Azerbaijan and building pipelines to link the country with Turkey, Italy and the rest of Europe.

• Islamic State Seizes Dam, Kills Iraqi General, 127 Soldiers. Islamic State fighters captured a dam in Anbar province and killed 127 Iraqi troops including a top army commander in attacks that show the militant group’s resilience despite battlefield setbacks elsewhere in Iraq. Iraqi forces have begun a military operation to retake Tharthar Dam near Fallujah, the Iraqi defense ministry said Saturday in a statement on its website. The dam controls the flow of water from Tharthar and Habaniya lakes into the Tigris River and lies 98 kilometers (61 miles) west of Baghdad.  

• BOJ Shouldn’t Ease Further; Yen Fell Enough: Business Lobby Head. The Bank of Japan shouldn’t expand its record monetary stimulus, as such a move would fail to spur growth and make prospects for an eventual exit from the policy harder, the new head of a business lobby said. The yen has slumped enough on the back of the central bank’s asset purchases over the past two years and the currency should stay around 120 per dollar, said Yoshimitsu Kobayashi, who starts Monday as chairman of the Japan Association of Corporate Executives.

• Asia Stocks Extend 7-Year High After U.S. Shares Rise to Records. Asian stocks climbed, with the regional benchmark index extending a seven-year high, after U.S. equities advanced to records. Materials shares led the advance. The MSCI Asia Pacific Index rose 0.2 percent to 156.40 as of 9:01 a.m. in Tokyo after closing Friday at its highest since January 2008.

• Clinton Foundation Acknowledges Mistakes as Schweizer Calls for Investigation. The Clinton Foundation's acting CEO, Maura Pally, on Sunday admitted to some mistakes in the organization's listing of donations from foreign governments on its tax forms. In a statement, Pally wrote, "Our total revenue was accurately reported on each year's form—our error was that government grants were mistakenly combined with other donations. Those same grants have always been properly listed and broken out and available for anyone to see on our audited financial statements, posted on our website."

Wall Street Journal: 

• Glut of Capital and Labor Challenge Policy Makers. Global oversupply extends beyond commodities, elevating deflation risk. The global economy is awash as never before in commodities like oil, cotton and iron ore, but also with capital and labor—a glut that presents several challenges as policy makers struggle to stoke demand. “What we’re looking at is a low-growth, low-inflation, low-rate environment,” said Megan Greene, chief economist of John Hancock Asset Management, who added that the global economy could spend the next decade “working this off.”

• How History Haunts Shinzo Abe’s Vision for Japan. When Japanese Prime Minister Shinzo Abe visits Washington, he must sell Americans on his vision of a newly vibrant Japan while quelling doubts about his views on World War II.

• Pharmaceutical Companies Buy Rival’s Drugs, Then Jack Up the Prices. List prices soar on Valeant’s heart medications and other firm’s drugs, driving up costs.

• Millennium Hedge Fund, Quant Trader Plan Venture. First time Izzy Englander is creating a business with one of his portfolio managers.

• The Peculiar Uses of a Taxpayer Bank. A look at the Export-Import Bank’s beneficiaries suggests that sometimes it works against U.S. interests abroad.

Fox News:

• Global relief effort underway after Nepal earthquake leaves 2,500 dead, thousands injured. (video) Governments and charities from the United States to the Middle East rushed personnel and aid to Nepal Sunday after Saturday’s 7.8 magnitude earthquake and ensuing aftershocks rattled the Himalayan nation, leaving 2,500 dead and thousands injured according to Nepalese authorities. U.N. spokeswoman Orla Fagan, who is heading to Nepal, said preventing the spread of disease is one of the most important tasks facing aid workers who are arriving.

MarketWatch.com: 

• What to watch for in Apple’s(AAPL) earnings. 

CNBC: 

• The S&P 500 has a serious revenue problem. (video) The bottom line of earnings season adds up to this: companies are running into big trouble with their top lines. While companies generally tend to beat both earnings and revenue expectations, this year more have missed their first-quarter top-line estimates than beaten.

Zero Hedge:

• The "War On Cash" Migrates To Switzerland.

• 2000x Normal Radiation Found In Tokyo Playground, Officials Deny Any Link To Fukushima.

• When QE Leads To Deflation: A Look At The "Confounding" Global Supply Glut. 

• Dramatic Images From The Mount Everest Avalanche. (pics)

• Why A Chinese Developer's Default Means Trouble For New York Real Estate. (graph)

• The Clinton Global 'Graft' Initiative (Summarized In 1 Chart).

• Goldman Gets Cold Feet:"It Is Difficult To Predict How Negative The Market Reaction To Grexit Would Be".

• New Highs To Nowhere On Nothing. (graph)

• How The Fed "Engineered A Massive Squeeze In The Markets"? With The Help Of 683x Leverage. (graph)

• Boston Fed Admits There Is No Exit, Suggests QE Become "Normal Monetary Policy". 

Business Insider:

• Scientists are scrambling to understand three highly pathogenic avian flu viruses in the US.

• The market is getting nervous about something experts are struggling to define.

• Obama took a dig at Hillary Clinton at the White House Correspondents' Dinner. Obama's comedy routine at the annual White House Correspondents' Dinner included a sly dig at Hillary Clinton, the current front-runner to be the Democratic candidate in the 2016 presidential election. Noting that some Americans are living in a time of uncertainty, Obama said, "For example, I have one friend just a few weeks ago, she was making millions of dollars a year and she's now living out of a van in Iowa."

• Expect the Fed to have a more 'somber' outlook on the economy this week.

• Why Hillary Clinton's cash scandal matters.

• Putin says 'no regrets' over Crimea annexation.

• The most troubling thing about Russian hackers reading Obama's unclassified emails.

• NBC: Brian Williams may have exaggerated ten other times.

Reuters:

• For-profit Corinthian Colleges to shut down remaining campuses. For-profit college operator Corinthian Colleges Inc said it will immediately shut down all its remaining campuses and cease substantially all other operations. It is working to find other schools for the roughly 16,000 students affected by the shutdown, the company said in a statement on Sunday. 

• Deutsche Bank Q1 profit falls by half as legal charges bite. Deutsche Bank's earnings fell by half in the first quarter, a greater-than-expected drop as hefty legal charges eroded gains in investment banking revenue, while it prepares to unveil details of a strategic overhaul. Quarterly net profit sank to 559 million euros ($608 million) versus a year ago, despite a 24 percent rise in revenue driven primarily by an increase in client trading activity. 

• Traders alarmed oil glut is a strain on West Texas storage tanks. Four-hundred miles from the near overflowing tanks at the U.S. oil hub in Cushing, Oklahoma, a second glut in the Permian Basin of West Texas is pressuring oil prices once again as pipeline disruptions strand millions of barrels in the region. The Permian, the fastest-growing shale play, accounts for about a fifth of the country's total oil production, and is expected to produce about 2 million barrels of crude a day in May. The region houses over 20 million barrels of crude storage.

Telegraph:

• US to launch blitz of gas exports, eyes global energy dominance. The US Energy Department prepares a wave of LNG gas permits in the latest move to redraw the world's oil and gas landscape.

Handelsblatt: 

• European Banks Still Have Problems, Liikanen Says. European  banks haven't done enough to separate proprietary trading and traditional banking business, Bank of Finland Governor and European Central Bank Governing Council Member Erkki Liikanen said in an interview. Regulators must ensure that banks with implied government backing don't take excessive risks. Lower interest rates create risks of bubbles in financial markets. Central banks may need tougher or broader tools to fight bubbles.

• EU to Cut Greece Economic Growth Forecast. EU Commission will "significantly" reduce its 2015 economic growth forecast for Greece from the current 2.5%, citing an interview with EU Commissioner Valdis Dombrovskis. 

Singapore's Business Times:

• BOJ Signals Concern on Japan Banks' Overseas Lending Rise. Bank of Japan sees surge in lending by Japanese banks in Asia, elsewhere as a major concern, citing a BOJ official.

People's Daily:

• China Strong Stimulus Not Needed, PBOC's Ma Says. China's employment situation is good and economic restructuring has made "positive progress" amid downward pressure, citing PBOC research bureau chief economist Ma Jun.

Night Trading

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

• Asia Ex-Japan Investment Grade CDS Index 106.0 -.5 basis point.

• Asia Pacific Sovereign CDS Index 60.75 +1.0 basis point.

• S&P 500 futures +.03%.

• NASDAQ 100 futures +.09%.

Morning Preview Links

Earnings of Note
Company/Estimate

• (LH)/1.63

• (SOHU)/-.88

• (TEN)/1.04

• (ADVS)/.36

• (AAPL)/2.16

• (ABX)/.09

• (BXP)/1.24

• (CHRW)/.74

• (RE)/5.86

• (JLL)/.51

• (PCL)/.22

• (SWFT)/.27

Economic Releases
8:30 am EST

• Preliminary Markit US Services PMI for April is estimated to fall to 58.8 versus 59.2 in March.

10:30 am EST

• Dallas Fed Manufacturing Activity for April is estimated to rise to -12.0 versus -17.4 in March.

Upcoming Splits

• None of note

Other Potential Market Movers

• The China Leading Index could also impact trading today.

BOTTOM LINE: Asian indices are mostly higher, boosted by real estate and industrial shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing mixed. The Portfolio is 50% net long heading into the week.

Weekly Outlook

Week Ahead by Bloomberg. 
Wall St. Week Ahead by Reuters.
Stocks to Watch Monday by MarketWatch.com.
Weekly Economic Calendar by Briefing.com.

BOTTOM LINE: I expect US stocks to finish the week mostly lower on earnings concerns, global growth fears, technical selling, rising Eurozone/Emerging Markets debt angst, yen strength and profit-taking. My intermediate-term trading indicators are giving neutral signals and the Portfolio is 50% net long heading into the week.

Today's Headlines

Bloomberg:    

• Euro Ministers Alarmed as Bloc Shuts Down Greece Plan B. Europe’s refusal to draw up contingency plans to prepare for the failure of negotiations with Greece is alarming some euro-area finance ministers. Slovenian finance chief Dusan Mramor led the calls at a meeting of the bloc’s 19 finance chiefs on Friday to consider a “plan B” to mitigate the fallout if negotiations with Greece fail. Several others raised similar concerns during official talks and in private conversations at a meeting in Riga, Latvia, on Friday, two people with knowledge of the discussions said. “What my discussion was about was what we will do if no new program will be achieved in time for Greece to be able to refinance itself or improve liquidity,” Mramor told reporters on Saturday. “A plan B can be anything.”

• What Next Two Weeks Hold in Store in the Greek Crisis Saga. A euro area finance ministers meeting over the disbursement of bailout funds ended in acrimony on Friday, as creditors expressed frustration with the country’s refusal to comply with the terms attached to its emergency loans. While focus now turns on a May 6 interest repayment to the International Monetary Fund and the next Eurogroup meeting on May 11 in Brussels, the country has a number of funding hurdles to clear before then and beyond.  

• Author Alleges Bill Clinton Just Quit Education Company Because of 'Clinton Cash'. Former president Bill Clinton stepped down from his position at Laureate International Universities, part of Laureate Education Inc., on Friday. His five-year term as "honorary chancellor," the company and Clinton's staff said, had expired. But Peter Schweizer, the conservative author of a forthcoming book examining the Clintons’ financial dealings, suggests a different explanation: Clinton actually resigned in order to avoid a wave of negative publicity. Bloomberg Politics has obtained a chapter of the book describing what Schweizer presents as a “troubling” co-mingling of official State Department business with the private financial affairs of Bill Clinton and a nonprofit run by Laureate’s chairman, Douglas Becker.

• U.S. Bird Flu Spreads to Egg-Laying Chickens in Minnesota County. Bird flu has spread to egg-laying hens in Minnesota, the top U.S. turkey producer that’s been battling the disease since early last month. A flock of 175,000 birds in Clay County was confirmed to have the highly contagious variety of avian influenza, the U.S. Department of Agriculture said in a statement Friday. This is the first case in the state for chickens, data from the agency show. The USDA also confirmed additional cases for turkey flocks in Minnesota and one in Wisconsin.

Fox News:

• At least 1,180 killed as 7.8 magnitude earthquake hits Nepal; search for survivors. (video) A powerful earthquake struck Nepal Saturday, killing hundreds of people across a swath of four countries as the violently shaking earth collapsed houses, leveled centuries-old temples and triggered avalanches on Mt. Everest. It was the worst temblor to hit the poor South Asian nation in over 80 years. At least 1,180 people were confirmed dead in Nepal, including 181 in the capital, Kathmandu alone, according to the police. Another 34 were killed in India, 10 in Tibet and two in Bangladesh. Two Chinese citizens died at the Nepal-China border.

ZeroHedge:

• One Last Look At The Real Economy Before It Implodes - Part 6: Solutions.

• China Could Face "Sharp" Rise In Capital Outflows If Stocks, Economy Lose Momentum.

• 11 Signs That We Are Entering The Next Phase Of The Global Economic Crisis.

• Are You Faster Than A Stock Market Spoofer?

• 8 Recessionary Charts. (graph)

• 5 Things To Ponder: Market Soup. (graph)

• Nasdaq Soars To Record Highs On Dismal Data & Vapid Volume. (graph)

• Number Of Companies Beating Revenue Estimates Hits Lowest Level In Two Years. (graph)

• Germany Prepares For "Plan B", Says Greece Would "Need Not Only A Third Bailout, But Fourth, Fifth Or Even More".

• Just 6 Charts. (graph)

• Overseas Investors Have "Little Appetite" For Chasing Chinese Mania: JPM. (graph)

Business Insider:

• Trucking industry labor dispute may cripple West Coast ports again.

• The Canadian consumer is falling off a cliff.

• There is a growing disconnect in the stock market. (graph)

• The billionaire linked to the 'Clinton Cash' scandals once said something amazing about doing business with Bill Clinton.

• Chris Christie is ramping up his campaign, but this chart shows why he's in real trouble.

• Wall Street can't stop talking about the 'ridiculous' arrest of the 'Flash Crash' trader. It's been almost five years since the "Flash Crash" and regulators are suddenly blaming Navinder "Nav" Sarao, a 36-year-old who trades S&P futures from his mom and dad's house in a London suburb. Yep, regulators think a guy in saggy sweatpants and Nike Airs trading from his parents' basement did it.

Neue Zuercher Zeitung:

• Greek Default Would Be Manageable, UBS Chairman Weber Says. Consensus at IMF meeting was increasingly that a Greek default would be manageable systemically, UBS Chairman Axel Weber said.

Hindustan Times:

• In pics: Earthquake strikes Nepal, rocks India, brings panic and destruction.

ISIS has built near-impregnable base and mass appeal: New book - See more at: http://www.straitstimes.com/news/world/europe/story/isis-has-built-near-impregnable-base-and-mass-appeal-new-book-20150205#sthash.TSyXsl7s.dpuf

ISIS has built near-impregnable base and mass appeal: New book - See more at: http://www.straitstimes.com/news/world/europe/story/isis-has-built-near-impregnable-base-and-mass-appeal-new-book-20150205#sthash.TSyXsl7s.dpuf

Market Week in Review

• S&P 500 2,117.69 +1.75%*

The Weekly Wrap by Briefing.com.

*5-Day Change