Friday, June 29, 2018

Bear Radar

Style Underperformer:
  •   Small-Cap Value -.1%
Sector Underperformers:
  • 1) Retail -.3% 2) Internet unch. 3) Telecom +.1%
Stocks Falling on Unusual Volume: 
  • GLPG, SNX, CGC, BFR, FTSI, SUPV, ELF, STZ and PRGS
Stocks With Unusual Put Option Activity:
  • 1) GT 2) STZ 3) NKE 4) EPD 5) KBH
Stocks With Most Negative News Mentions:
  • 1) SNX 2) FTSI 3) ENDP 4) THC 5) TAL
Charts:

Bull Radar

Style Outperformer:
  • Large-Cap Value +.9%
Sector Outperformers:
  • 1) Gold & Silver +2.5% 2) Biotech +2.1% 3) Gaming +1.8%
Stocks Rising on Unusual Volume:
  • GEMP, XLRN, XON, NKE, ENB, VRTX, KBH, OSTK, GMS, EEP, GBX, ACAD, NVS, AVAV, INNT, GBX, SEP, GMS, WFC, MSG, COHU, BC and EGAN
Stocks With Unusual Call Option Activity:
  • 1) DPS 2) TROX 3) STZ 4) NKE 5) VRTX
Stocks With Most Positive News Mentions:
  • 1) GEMP 2) VRTX 3) NKE 4) XLRN 5) KBH
Charts:

Morning Market Internals

NYSE Composite Index:

Thursday, June 28, 2018

Friday Watch

Evening Headlines
Bloomberg:
  • Asia Stocks to Gain, Dollar Slips With Treasuries. Asian stocks looked set to advance on the final day of what’s been the worst quarter in nearly three years characterized by trade tensions between the U.S. and China. Treasuries retreated alongside the dollar. Equity futures in Japan, Hong Kong and Australia pointed to gains after technology stocks drove the S&P 500 Index higher. A gauge of emerging market stocks sank to the lowest level in 10 months, while West Texas Intermediate crude pushed above $73 a barrel. Futures on Japan’s Nikkei 225 rose 0.3 percent in Singapore. Futures on Hong Kong’s Hang Seng added 0.1 percent
Business Insider:
Night Trading 
  • Asian equity indices are -.25% to +.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 95.5 +.75 basis point. 
  • Asia Pacific Sovereign CDS Index 14.75 +.5 basis point.
  • Bloomberg Emerging Markets Currency Index 69.33 +.05%.
  • FTSE 100 futures +.45%.
  • S&P 500 futures +.10%.
  • NASDAQ 100 futures +.04%.
Morning Preview Links

Earnings of Note
Company/Estimate

Before the Open:
  • (STZ)/2.44
  • (GBX)/115
Economic Releases
8:30 am EST
  • Personal Income for May is estimated to rise +.4% versus a +.3% gain in June.
  • Personal Spending for May is estimated to rise +.4% versus a +.6% gain in June.
  • The PCE Core MoM for May is estimated to rise +.2% versus a +.2% gain in April.
9:45 am EST
  • The Chicago Purchasing Manager for June is estimated to fall to 60.0 versus a reading of 62.7 in May.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Eurozone CPI report could also impact trading today.
BOTTOM LINE:  Asian indices are mostly 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 50% net long heading into the day.

Stocks Slightly Higher into Afternoon on Bargain-Hunting, Oil Gain, Yen Weakness, Tech/Pharma Sector Strength

 Broad Equity Market Tone:
  • Advance/Decline Line: Modestly Lower
  • Sector Performance: Mixed
  • Volume: Above Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 17.9 -.11%
  • Euro/Yen Carry Return Index 133.01 +.31%
  • Emerging Markets Currency Volatility(VXY) 9.89 unch.
  • S&P 500 Implied Correlation 41.07 +2.27%
  • ISE Sentiment Index 72.0 +14.3%
  • Total Put/Call 1.57 +45.37%
  • NYSE Arms .74 -19.13%
Credit Investor Angst:
  • North American Investment Grade CDS Index 68.37 +1.15%
  • America Energy Sector High-Yield CDS Index 402.0 +.34%
  • European Financial Sector CDS Index 94.23 +5.97%
  • Italian/German 10Y Yld Spread 246.0 -2.75 basis points
  • Asia Pacific Sovereign Debt CDS Index 14.83 +3.67%
  • Emerging Market CDS Index 191.0 -.52%
  • iBoxx Offshore RMB China Corporate High Yield Index 148.75 -.42%
  • 2-Year Swap Spread 26.5 +.75 basis point
  • TED Spread 42.0 +.25 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -6.5 -1.25 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 69.03 -.02%
  • 3-Month T-Bill Yield 1.92% unch.
  • Yield Curve 32.5 -.25 basis point
  • China Iron Ore Spot 64.85 USD/Metric Tonne +.82%
  • Citi US Economic Surprise Index -2.30 -3.4 points
  • Citi Eurozone Economic Surprise Index -60.40 +1.7 points
  • Citi Emerging Markets Economic Surprise Index -11.90 +.6 point
  • 10-Year TIPS Spread 2.12 unch.
  • 77.3% chance of Fed rate hike at Sept. 26th meeting, 78.5% chance at November 8th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -60 open in Japan 
  • China A50 Futures: Indicating -50 open in China
  • DAX Futures: Indicating -10 open in Germany
Portfolio: 
  • Slightly Higher: On gains in my tech/medical sector longs
  • Disclosed Trades: None
  • Market Exposure: 50% Net Long

Bear Radar

Style Underperformer:
  •   Small-Cap Value -.1%
Sector Underperformers:
  • 1) Restaurants -1.5% 2) Healthcare Providers -1.5% 3) Coal -.9%
Stocks Falling on Unusual Volume: 
  • WBA, GMS, CALM, BBBY, CVS, GPRE, ABC, CMG, MCK, PDCO, CAH, ARRY, FORM, LEA, ITT, BECN, VYGR, CASA, WOR and DPLO
Stocks With Unusual Put Option Activity:
  • 1) DXJ 2) WBA 3) CYH 4) KMB 5) CI
Stocks With Most Negative News Mentions:
  • 1) PIR 2) ASNS 3) BECN 4) DPLO 5) MAT
Charts: