Bear Radar

Style Underperformer:

• Small-Cap Value -.6%

Sector Underperformers:

• 1) Retail -2.2% 2) Oil Service -1.4% 3) Telecom-1.0%

Stocks Falling on Unusual Volume: 

• DKS, AAP, COH, ADMS, YY, EDIT, OMER, UNIT, HIBB and CAB

Stocks With Unusual Put Option Activity:

• 1) DKS 2) HPE 3) COH 4) ETFC 5) URBN

Stocks With Most Negative News Mentions:

• 1) GIII 2) CYH 3) CTL 4) GPC 5) GLW

Charts:

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

Bull Radar

Style Outperformer:

• Large-Cap Growth unch.

Sector Outperformers:

• 1) Gaming +2.7% 2) HMOs +.7% 3) Airlines +.4%

Stocks Rising on Unusual Volume:

• EXTR, MDXG, HOLI, HLNE, FBK, MED, COHR, OTIC, WYNN, CMG, GDOT, TJX, MYOK, DSLV, ASUR, TEVA, TNC, CORT, LXFT, SEAS, PRAH, ZBRA, AXDX, ECC and NUVA

Stocks With Unusual Call Option Activity:

• 1) COH 2) SLCA 3) HPE 4) DG 5) SEE

Stocks With Most Positive News Mentions:

• 1) WYNN 2) VFC 3) GPRO 4) SNAP 5) NTAP

Charts:

• ETFs Rising on Unusual Volume

• Stocks Rising on Unusual Volume

Morning Market Internals

NYSE Composite Index:

• Volume Running -5.6% Below 100-Day Average
• 6 Sectors Rising, 4 Sectors Declining
• 32.0% of Issues Advancing, 64.0% Declining
• 34 New 52-Week Highs, 94 New Lows
• 42.2% of Issues Above 200-day Moving Average
• Average 14-Day RSI 34.5%
• Vix 12.2 -.8%
• Total Put/Call 1.01 +20.2%
• TRIN/Arms .97 -15.4%

Tuesday Watch

Night Trading 

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

• Asia Ex-Japan Investment Grade CDS Index 85.0 -3.5 basis points. 

• Asia Pacific Sovereign CDS Index 22.75 +1.0 basis point.

• Bloomberg Emerging Markets Currency Index 73.69 +.06%.

• S&P 500 futures +.38%.

• NASDAQ 100 futures +.55%.

Morning Preview Links

Earnings of Note
Company/Estimate

• (AAP)/1.66

• (COH)/.49

• (DKS)/1.00

• (HD)/2.22

• (TJX)/.84

• (A)/.52

• (JKHY)/.83

• (URBN)/.36

Economic Releases 

8:30 am EST

• The Import Price Index MoM for July is estimated to rise +.1% versus a -.2% decline in June. 

• The Export Price Index MoM for July is estimated to rise +.2% versus a -.2% decline in June.

• The Empire Manufacturing Index for August is estimated to rise to 10.0 versus 9.8 in July. 

• Retail Sales Advance MoM for July are estimated to rise +.3% versus a -.2% decline in June.

• Retail Sales Ex Autos MoM for July are estimated to rise +.3% versus a -.2% decline in June.

• Retail Sales Ex Autos and Gas for July are estimated to rise +.4% versus a -.1% decline in June.

10:00 am EST

• The NAHB Housing Market Index for August is estimated at 64.0 versus 64.0 in July.

• Business Inventories for June are estimated to rise +.4% versus a +.3% gain in May.

4:00 pm EST

• Total Net TIC Flows for June.
  

Upcoming Splits

• (TAL) 6-for-1

Other Potential Market Movers

• The Eurozone GDP report, UK PPI report, weekly US retail sales reports, Wedbush PacGrow Healthcare Conference and the DA Davidson Tech Forum could also impact trading today.

BOTTOM LINE:  Asian indices are higher, boosted by industrial and technology 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 Higher into Final Hour on Diminished Geopolitical Concerns, Bargain-Hunting, Technical Buying, Tech/Transport Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Below Average

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 12.41 -20.0%

• Euro/Yen Carry Return Index 134.73 +.06%

• Emerging Markets Currency Volatility(VXY) 7.83 -2.37%

• S&P 500 Implied Correlation 34.39 -17.0%

• ISE Sentiment Index n/a
  

• Total Put/Call .82 -14.58%

• NYSE Arms 1.14 -14.04%

Credit Investor Angst:

• North American Investment Grade CDS Index 59.99 -2.77%
  

• America Energy Sector High-Yield CDS Index 446.0 -.56%

• European Financial Sector CDS Index 53.79 -2.72%

• Western Europe Sovereign Debt CDS Index 5.42 -3.39%

• Asia Pacific Sovereign Debt CDS Index 22.89 +5.17%

• Emerging Market CDS Index 189.64 -.92%
  

• iBoxx Offshore RMB China Corporate High Yield Index 141.0 +.10%

• 2-Year Swap Spread 25.50 -.5 basis point

• TED Spread 29.5 +1.75 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -29.75 -2.0 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 73.67 +.06%
• 3-Month T-Bill Yield 1.02% -1.0 basis point
  

• Yield Curve 90.0 unch.

• China Import Iron Ore Spot $74.71/Metric Tonne -.64%

• Citi US Economic Surprise Index -35.40 +1.2 points

• Citi Eurozone Economic Surprise Index 12.20 -.4 point

• Citi Emerging Markets Economic Surprise Index 14.40 -4.9 basis points

• 10-Year TIPS Spread 1.78 -2.0 basis points
  
• 15.6% chance of Fed rate hike at Nov. 1 meeting, 44.2% chance at Dec. 13 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +42 open in Japan 
• China A50 Futures: Indicating -3 open in China

• DAX Futures: Indicating +5 open in Germany

Portfolio: 

• Higher: On gains in my biotech/tech/medical 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 +.9%

Sector Underperformers:

• 1) Gold & Silver -.6% 2) Energy -.2% 3) Retail unch.

Stocks Falling on Unusual Volume: 

• CSIQ, THC, XON, CVNA and LNTH

Stocks With Unusual Put Option Activity:

• 1) WNRL 2) HPE 3) TJX 4) HPQ 5) COH

Stocks With Most Negative News Mentions:

• 1) SAVE 2) CNO 3) AMRN 4) WFC 5) PSTG

Charts:

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