Bear Radar

Style Underperformer:

•   Large-Cap Value -1.6%

Sector Underperformers:

• 1) Banks -3.6% 2) Steel -2.5% 3) Insurance -2.5%

Stocks Falling on Unusual Volume: 

• EUFN, CVI, YRD, RVNC, PBR, MELI, ING, DB, ITUB, DXC, BPT, MS, CARA and TNDM

Stocks With Unusual Put Option Activity:

• 1) FEZ 2) GGP 3) ALXN 4) BK 5)MS

Stocks With Most Negative News Mentions:

• 1) INFN 2) MELI 3) GCO 4) BWA 5) AXP

Charts:

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

Bull Radar

Style Outperformer:

• Small-Cap Growth -.2%

Sector Outperformers:

• 1) Coal +.8% 2) Disk Drives +.5% 3) Education +.5%

Stocks Rising on Unusual Volume:

• ZTO, MOMO, CVRR, OLED, SVRA, WMS, PRAH, AMWD, JP, MON, HSTM, HEI, TUR, TUSK, PI, CGC, IEF, KMG, CYD, EOLS, SCVL, SAFM, BAH, COHR, LXFT and STAA

Stocks With Unusual Call Option Activity:

• 1) PZZA 2) DNR 3) SIG 4) DKS 5) OLED

Stocks With Most Positive News Mentions:

• 1) MOMO 2) TUSK 3) WMS 4) LABL 5) OLED

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running +1.1% Above 100-Day Average
• 1 Sector Rising, 10 Sectors Declining
• 40.9% of Issues Advancing, 56.0% Declining
• 27 New 52-Week Highs, 53 New Lows
• 47.0% of Issues Above 200-day Moving Average
• Average 14-Day RSI 49.0%
• Vix 15.0 +12.7%
• Total Put/Call .93 +3.3%
• TRIN/Arms 1.4 -3.0%

Tuesday Watch

Today's Headlines

Bloomberg: 

• Italy Heads for Fresh Elections, and Europe’s the Faultline. 

• The Six Essential Questions About Italy's Political Crisis, Answered.

• ECB Rate Hike 'Far Away Still,' Danske Bank's Olsen Says. (video)

• China's $10 Trillion Shadow Bank Crackdown Has a Long Way to Go.  

• Brazil Takes Stock of a Week-Long Strike and It's Not Pretty.

• Asian Stocks Set for Lower Open; Oil Declines: Markets Wrap. Nikkei 225 futures fell 0.3 percent in Singapore. S&P/ASX 200 fell 0.2 percent. The Stoxx Europe 600 Index dipped 0.3 percent. Italy’s FTSE MIB Index fell 2.1 percent. Futures on the S&P 500 Index rose 0.2 percent.  

• Five Things You Need to Know to Start Your Day.

• Russia Loses Its Edge as Oil Drop Spurs Worst ETF Flows in Year.  

• Goldman Stays Oil Bull, Undaunted by Saudi-Russia Crude Plan.

• Traders Look for Clues About the Emerging-Market Currency Bounce.

Wall Street Journal:

• U.S., North Korea Meet to Try to Salvage Summit.

• As Global Growth Loses Steam, U.S. Investors Find There’s No Place Like Home.

• Fresh Elections in Sight for Italy After Political Crisis.

• Democrats Look to Shift Blame on Health-Care Costs to GOP.

• Trump Talks Tough on Trade but Often Settles for Less.

MarketWatch.com:

• Floodwaters tear through town near Baltimore, while Deep South braces for Alberto.

Fox News:

• MICHAEL GOODWIN: Trump rollercoaster better than Clinton chaos.

• Trump administration holds off on new North Korea sanctions amid talks for potential summit: report.

CNBC:

• The U.S. needs 50,000 truck drivers to avoid a shipping squeeze.

• Traders are worried this could be the 'big unwinding' of Italian bond markets.

• 10 entry-level jobs that new graduates can do from home.

• Italy's president refuses to certify minister, denying prime minister's ability to form a government. 

Zero Hedge:     

• Key Events This Week: Payrolls, PCE And Politics.

• Caged Migrant Children Photo Goes Viral As Left Rages At Trump; Except It Happened Under Obama.

• Scottish "Crypto Clinic" Now Treating Bitcoin Trading Addicts.

• In The UK... You're Not Allowed To Talk About It. About What? Don't Ask!

• Italian Bonds, Stocks Crash In Furious Reversal As Political Drama Explodes.

• Russia Unveils Soldier Of The Future Equipped With "Predator" Gun And Electrified Shield.

• Turkish Lira Soars After Central Bank Changes Monetary Policy, But Reserves Emerge As Biggest Concern.

• As New Privacy Rules Hit Europe, Google And Facebook Hit With $8.8 Billion In Lawsuits.

• Crude Capitulation Continues: WTI Hits 6-Week Lows After Russia, Saudi Comments.

• How Identity Politics Is Changing Universities.

• Trump All But Confirms Historic Summit With Kim Is Back On As US Officials Enter North Korea.

Business Insider:

• 'Truly just devastating stories': The bleak outlook from inside Venezuela's deepening crises.

Night Trading

• Asian indices are -.25% to unch. on average.

• Asia Ex-Japan Investment Grade CDS Index 75.5 -.5 basis point.

• Asia Pacific Sovereign CDS Index 12.0 -.25 basis point.

• Bloomberg Emerging Markets Currency Index 71.10 +.01%.

• FTSE 100 futures n/a.

• S&P 500 futures +.17%.

• NASDAQ 100 futures +.48%.

Morning Preview Links

Earnings of Note

Company/Estimate
Before the Open:

• (AMWD)/1.20

• (BAH)/.46

After the Close:

• (HPQ)/.48

• (CRM)/.46 

Economic Releases
9:00 am EST

• S&P CoreLogic CS 20-City Home Price Index MoM for March is estimated to rise +.7% versus a +.83% gain in February.
  

10:00 am EST

• The Conference Board Consumer Confidence Index for May is estimated to fall to 128.0 versus 128.7 in April.
  

10:30 am EST

• Dallas Fed Manufacturing Activity for May is estimated to rise to 24.5 versus 21.8 in April.
  

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The Fed's Bullard speaking, Japan Retail Sales report, Deutsche Bank Financial Services Conference, KeyBanc Industrials/Basic Materials Conference and the Craig-Hallum Institutional Investor Conference could also impact trading today.

BOTTOM LINE: Asian indices are mostly lower, weighed down by commodity and consumer 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 week.

Weekly Outlook

• Wall St. Week Ahead by Reuters. 

• Weekly Market Outlook by Yahoo. (video)

• Week Ahead by TheStreet.

• Stocks to Watch Next Week by Seeking Alpha.

• Weekly Economic Calendar by Briefing.com.

BOTTOM LINE: I expect US stocks to finish the week mixed as less less trade war rhetoric, diminishing geopolitical tensions and lower long-term rates offset European/Emerging Markets/US High-Yield debt angst, lower energy prices and yen strength. My intermediate-term trading indicators are giving neutral signals and the Portfolio is 75% net long heading into the week.

Today's Headlines

Bloomberg:

• Saudi-Russia Oil Policy Shift Sets Stage for Tense OPEC Meeting.

• Cheap Pork Means More Ribs on U.S. Grills.

• Italy May Be Cut by Moody's on Concerns Over New Government.

• S&P 500 ‘Pressure Gauge’ Suggests Relief Rally Still Going.

Wall Street Journal:

• Cheers! Coca-Cola Launches Its First Alcoholic Drink.

• China Set to Approve Qualcomm-NXP Deal, a Sign of Easing Trade Tensions.

• Kim Jong Un Reaffirms Korean Denuclearization Push. 

• Turkish Press Pay a Price for Independence.

Barron's:

• Had bullish commentary on (XLF), (CIT), (ZION), (CFG), (SMLF), (VFMO), (EES), (KHC), (QCOM), (MRK), (SBUX), (LULU) and (KO).

Fox News:

• Trump meets with Utah man who's finally back in US after long captivity in Venezuela.

CNBC: 

• Google(GOOGL) employees are spending heavily to elect Democrats in California and to flip the House.

• These drones can haul a 20-pound load for 500 miles and land on a moving target.

• China’s secret goal is to crush Silicon Valley.

Zero Hedge:  

• Kim Jong-Un Holds Surprise Second Summit With South Korea President Moon.

• "Massacre" As Caribbean Pirate Attacks Up 160%.

• Visualizing U.S. Energy Consumption In One Chart.

• The Story Behind $17 Billion Booty Found In 300-Year-Old "Holy Grail Of Shipwrecks".

• Nebraska Troopers Seize Enough Fentanyl To Kill 26 Million Americans.

• 20 Years Of Socialist Utopia In Venezuela Summed Up In 20 Dramatic Seconds.

• Mother And Daughter Shot In Oklahoma Restaurant, Suspect Killed By "Good Guy" With A Gun.

• Erdogan Urges Turks To Stick With Collapsing Lira, Warns Financial Speculators "Will Pay A Heavy Price".

• Socialism Is No Longer A Dirty Word.

• This Is How Amazon's Alexa Records And Shares Private Conversations Without Your Permission.

• Moody's Puts Italy On Downgrade Review, Junk Rating Possible. 

• Weekend Reading: Everyone Is Passive Until The Selling Begins.  

Business Insider:

• The US banking system is increasingly exposed to toxic risk. 

• North Korea is committed to a summit with Trump and 'complete denuclearization,' South Korea's president says.