Bull Radar

Style Outperformer:

• Small-Cap Growth +1.1%

Sector Outperformers:

• 1) Homebuilders +1.9% 2) Energy +1.6% 3) Networking +1.4%

Stocks Rising on Unusual Volume:

• ABIL, BWP, PBYI, BCEI, FIX, SPPI, GTN, LRN, INNT, LEN, EVRG, EXEL, PF, BBL, CBIO, GE, AGX, BHP, SJM, JCAP, ACLS, GWPH, THRM, FNHC, KTWO, SPPI and PRMW

Stocks With Unusual Call Option Activity:

• 1) LEN 2) TPX 3) AKAO 4) BBBY 5) ALLY

Stocks With Most Positive News Mentions:

• 1) PBYI 2) LEE 3) AGX 4) LEN 5) GTN

Charts:

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

Market Internals

NYSE Composite Index:

• Volume Running +4.4% Above 100-Day Average
• 9 Sectors Rising, 2 Sectors Declining
• 61.2% of Issues Advancing, 35.4% Declining
• 31 New 52-Week Highs, 47 New Lows
• 45.6% of Issues Above 200-day Moving Average
• Average 14-Day RSI 46.6%
• Vix 15 .8 -8.7%
• Total Put/Call .91 -17.3%
• TRIN/Arms 1.07 -8.4%

Tuesday Watch

Night Trading 

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

• Asia Ex-Japan Investment Grade CDS Index 85.75 +4.75 basis points. 

• Asia Pacific Sovereign CDS Index 14.0 +.25 basis point.

• Bloomberg Emerging Markets Currency Index 69.86 -.02%.

• FTSE 100 futures +.17%.

• S&P 500 futures +.06%.

• NASDAQ 100 futures -.11%.

Morning Preview Links

Earnings of Note
Company/Estimate
Before the Open:

• (FDS)/2.13

• (JKS)/.23

• (LEN)/.44

• (SCHN)/1.18

After the Close:

• (AVAV)/.52

• (SONC)/.49

Economic Releases

9:00 am EST

• S&P CoreLogic CS 20-City MoM for April is estimated to rise +.4% versus a +.53% gain in March.

10:00 am EST

• The Richmond Fed Manufacturing Index for June is estimated to fall to 15.0 versus 16.0 in May. 

• Consumer Confidence for June is estimated at 128.0 versus 128.0 in May.
  

Upcoming Splits

• (HEI) 5-for-4

Other Potential Market Movers

• The Fed's Kaplan speaking, $34B 2Y T-Note auction, Eurozone 10Y Bond auction, weekly US retail sales reports and the (AKAM) analyst day could also impact trading today.

BOTTOM LINE:  Asian indices are lower, weighed down by industrial 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 Falling Substantially into Final Hour on Trade War Worries, European/Emerging Markets/US High-Yield Debt Angst, Oil Decline, Tech/Energy Sector Weakness

 Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Almost Every Sector Declining
  

• Volume: Around Average

• Market Leading Stocks: Underperforming
  

Equity Investor Angst:

• Volatility(VIX) 18.1 +31.3%

• Euro/Yen Carry Return Index 133.31 -.12%

• Emerging Markets Currency Volatility(VXY) 9.63 -1.03%

• S&P 500 Implied Correlation 41.2 +25.9%

• ISE Sentiment Index 119.0 +.85%
  

• Total Put/Call 1.11 +30.6%

• NYSE Arms 1.19 +4.6%

Credit Investor Angst:

• North American Investment Grade CDS Index 66.81 +3.33%
  

• America Energy Sector High-Yield CDS Index 402.0 -1.17%

• European Financial Sector CDS Index 87.67 +6.64%

• Italian/German 10Y Yld Spread 249.75 +14.0 basis points
  

• Asia Pacific Sovereign Debt CDS Index 14.04 +2.33%

• Emerging Market CDS Index 188.81 +4.18%
  

• iBoxx Offshore RMB China Corporate High Yield Index 149.50 -.05%

• 2-Year Swap Spread 26.5 unch.

• TED Spread 44.75 +2.75 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -4.75 +.25 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 69.82 -.35%

• 3-Month T-Bill Yield 1.89% -1.0 basis point
  

• Yield Curve 34.75 -1.0 basis point

• China Iron Ore Spot 64.30 USD/Metric Tonne +.05%

• Citi US Economic Surprise Index 3.30 +.1 point

• Citi Eurozone Economic Surprise Index -66.0 +2.1 points

• Citi Emerging Markets Economic Surprise Index -15.60 +2.7 points

• 10-Year TIPS Spread 2.12 -1.0 basis point
  

• 77.8% chance of Fed rate hike at Sept. 26th meeting, 79.0% chance at November 8th meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -263 open in Japan 

• China A50 Futures: Indicating -129 open in China

• DAX Futures: Indicating -3 open in Germany

Portfolio: 

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

• Disclosed Trades: Added to my (IWM)/(QQQ) hedges, then covered some of them

• Market Exposure: 50% Net Long

Bear Radar

Style Underperformer:

•   Large-Cap Growth -2.0%

Sector Underperformers:

• 1) Semis -3.5% 2) Gaming -3.5% 3) Steel -3.2%

Stocks Falling on Unusual Volume: 

• COOL, CCL, CDNA, CUK, BB, SPLK, HDP, VRNS, NTNX, NFLX, CCL, SFIX and HRI

Stocks With Unusual Put Option Activity:

• 1) PF 2) RHT 3) MRO 4) KMX 5) SHAK

Stocks With Most Negative News Mentions:

• 1) ATI 2) ANW 3) EL 4) INTC 5) FLEX

Charts:

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

Bull Radar

Style Outperformer:

• Small-Cap Value -.7%

Sector Outperformers:

• 1) Utilities +1.6% 2) Foods +.4% 3) REITs -.1%

Stocks Rising on Unusual Volume:

• EDR, NTRA, LGCYO, CPB, GTN, GOOS, CRUS, AMID, HX, NEWT, ALRM, CURO, GFN, VRA, RCKY, EBF, AXP, KB, INNT, HRTX, GPK and CLUB

Stocks With Unusual Call Option Activity:

• 1) CPB 2) BWP 3) XME 4) EMB 5) CRUS

Stocks With Most Positive News Mentions:

• 1) CIEN 2) CRUS 3) VLRX 4) AP 5) LMT

Charts:

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