Morning Market Internals

NYSE Composite Index:

• Volume Running -11.1% Below 100-Day Average
• 10 Sectors Rising, 0 Sectors Declining
• 67.2% of Issues Advancing, 29.2% Declining
• 20 New 52-Week Highs, 24 New Lows
• 46.5% of Issues Above 200-day Moving Average
• Average 14-Day RSI 43.7%
• Vix 18.5 -1.1%
• Total Put/Call 1.27 +14.4%
• TRIN/Arms .92 +5.0%

Friday Watch

Night Trading 

• Asian equity indices are +.25% to +.75% on average.
• Asia Ex-Japan Investment Grade CDS Index 70.25 -.25 basis point. 
• Asia Pacific Sovereign CDS Index 12.75 unch.
• Bloomberg Emerging Markets Currency Index 75.64 +.07%.
• FTSE 100 futures -.37%.
• S&P 500 futures +.18%.
• NASDAQ 100 futures +.04%.

Morning Preview Links

Earnings of Note
Company/Estimate

• (COG)/.11
• (DFRG)/.43
• (HUN)/.66
• (TDS)/-.09

Economic Releases

• None of note

Upcoming Splits

• None of note

Other Potential Market Movers

• The Fed's Dudley speaking, Fed's Rosengren speaking, Fed's Mester speaking, Fed's Williams speaking and the German GDP report could also impact trading today.

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

Stocks Higher into Final Hour on Lower Long-Term Rates, Oil Gain, Earnings Optimism, Energy/REIT Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Around Even
  

• Sector Performance: Mixed
  

• Volume: Above Average

• Market Leading Stocks: Underperforming
  

Equity Investor Angst:

• Volatility(VIX) 19.19 -4.2%

• Euro/Yen Carry Return Index 137.10 -.57%

• Emerging Markets Currency Volatility(VXY) 8.55 +.94%

• S&P 500 Implied Correlation 41.15 -6.01%

• ISE Sentiment Index 74.0 -37.82%
  

• Total Put/Call 1.10 +5.77%

• NYSE Arms .81 -62.5%

Credit Investor Angst:

• North American Investment Grade CDS Index 56.64 +1.67%
  

• America Energy Sector High-Yield CDS Index 407.0 +9.04%

• European Financial Sector CDS Index 55.67 +5.37%

• Italian/German 10Y Yld Spread 136.75 +4.0 basis points
  

• Asia Pacific Sovereign Debt CDS Index 12.72 -.31%

• Emerging Market CDS Index 124.18 -.68%
  

• iBoxx Offshore RMB China Corporate High Yield Index 147.64 +.18%

• 2-Year Swap Spread 25.5 -1.25 basis points

• TED Spread 26.0 +1.0 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -30.75 +3.5 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 75.59 +.24%
• 3-Month T-Bill Yield 1.64% unch.
  

• Yield Curve 66.75 -.75 basis point

• China Iron Ore Spot 76.66 USD/Metric Tonne +.22%

• Citi US Economic Surprise Index 51.90 +1.9 points

• Citi Eurozone Economic Surprise Index -5.0 -4.8 points

• Citi Emerging Markets Economic Surprise Index 5.50 +.2 point

• 10-Year TIPS Spread 2.12 -1.0 basis point
  
• 100.0% chance of Fed rate hike at May 2 meeting, 100.0% chance at June 13 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -6 open in Japan 
• China A50 Futures: Indicating +56 open in China

• DAX Futures: Indicating -15 open in Germany

Portfolio: 

• Slightly Lower: On losses in my index hedges and emerging markets shorts

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges and some of my (EEM) short

• Market Exposure: Moved to 50% Net Long

Bear Radar

Style Underperformer:

• Small-Cap Value +.3%

Sector Underperformers:

• 1) Social Media -1.4% 2) Tobacco -1.4% 3) Gaming -1.0%

Stocks Falling on Unusual Volume: 

• MIC, AAOI, HASI, W, SRCL, TSEM, TYPE, TPX, SPTN, RPXC, ROKU, CLR, MMLP, SAM, TREE, CJ, APA, IDCC, DMRC, JELD, GWPH, TREX, UCTT, SNPS, UTHR, CLI, QDEL, TRHC, CCOI, PRAH, SNAP, IDCC, TFX, HASI, SM, SRCL and SPTN

Stocks With Unusual Put Option Activity:

• 1) JACK 2) W 3) MBI 4) ROKU 5) AAOI

Stocks With Most Negative News Mentions:

• 1) MIC 2) AAOI 3) ALKS 4) SNAP 5) WYNN

Charts:

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

Bull Radar

Style Outperformer:

• Large-Cap Value +.4%

Sector Outperformers:

• 1) Oil Service +2.7% 2) Disk Drives +1.8% 3) Energy +1.8%

Stocks Rising on Unusual Volume:

• SGMO, QUAD, ECPG, STMP, ZBRA, GDOT, AYX, BLMN, MANT, LDL, TUSK, AIG, CRESY, ASND, CAR, NHF, WLL, FIVN, AAWW, SAIL, MB, EIG, CAKE, HSC, HTZ, CECO, GTLS, CLVS, LOPE, SAIL, STML, PODD, RCKT, ACIW, IOVA, EVTC, DRNA, AKR, SSTK and CAKE

Stocks With Unusual Call Option Activity:

• 1) HLT 2) STI 3) ILG 4) RF 5) WLL

Stocks With Most Positive News Mentions:

• 1) STMP 2) CHK 3) ZBRA 4) CAR 5) SGMO

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running +18.6% Above 100-Day Average
• 10 Sectors Rising, 0 Sectors Declining
• 70.6% of Issues Advancing, 25.4% Declining
• 16 New 52-Week Highs, 40 New Lows
• 46.1% of Issues Above 200-day Moving Average
• Average 14-Day RSI 43.2%
• Vix 19.7 -1.5%
• Total Put/Call 1.04 unch.
• TRIN/Arms .93 -57.2%