Bear Radar

Style Underperformer:

• Small-Cap Value +.4%

Sector Underperformers:

• 1) Gold & Silver -2.2% 2) Steel -.7% 3) Road & Rail -.5%

Stocks Falling on Unusual Volume: 

• TLRY, GT, SHW, FND, CTRL, MSGN, EIX, ALLK and CTB

Stocks With Unusual Put Option Activity:

• 1) AET 2) STLD 3) NLSN 4) ARNC 5) PCG

Stocks With Most Negative News Mentions:

• 1) PCG 2) MAXR 3) GT 4) EIX 5) ALB

Charts:

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

Bull Radar

Style Outperformer:

• Large-Cap Growth +1.4%

Sector Outperformers:

• 1) Internet +2.5% 2) Papers +2.4% 3) Medical Equipment +2.4%

Stocks Rising on Unusual Volume:

• MBOT, ACIU, APTX, CDLX, SSYS, ARNC, FRC, ATTU, TENB, IGV, IPHI, ASMB, PLAY, C, CRNX, BMY, ATHM, INSP, VC, NFLX, JPM, SPOT, ARGX and AXL

Stocks With Unusual Call Option Activity:

• 1) LQD 2) VHC 3) KBE 4) PCG 5) ALLY

Stocks With Most Positive News Mentions:

• 1) LXRP 2) THC 3) FRC 4) BSX 5) UNH

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running +11.3% Above 100-Day Average
• 8 Sectors Rising, 3 Sectors Declining
• 53.5% of Issues Advancing, 43.1% Declining
• 9 New 52-Week Highs, 10 New Lows
• 22.2% of Issues Above 200-day Moving Average
• Average 14-Day RSI 51.1%
• Vix 18.8 -2.0%
• Total Put/Call .92 -10.7%
• TRIN/Arms 1.38 +82.0%

Tuesday Watch

Night Trading 

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

• Asia Ex-Japan Investment Grade CDS Index 90.0 +.75 basis point. 

• China Sovereign CDS 63.5 +.25 basis point.

• Bloomberg Emerging Markets Currency Index 67.97 +.07%.

• FTSE 100 futures -.96%.

• S&P 500 futures +.04%.

• NASDAQ 100 futures +.02%.

Morning Preview Links

Earnings of Note
Company/Estimate

Before the Open:

• (DAL)/1.28

• (JPM)/2.19

• (SNV)/.93

• (UNH)/3.22

• (WFC)/1.18

After the Close:

• (PNFP)/1.23

• (UAL)/1.99

Economic Releases

8:30 am EST

• Empire Manufacturing for Jan. is estimated to fall to 10.0 versus 10.9 in Dec.

• PPI Final Demand MoM for Dec. is estimated to fall -.1% versus a +.1% gain in Nov.

• PPI Ex Food and Energy MoM for Dec. is estimated to rise +.2% versus a +.3% gain in Nov.
  

Upcoming Splits

• None of note

Other Potential Market Movers

• The UK Brexit vote, Eurozone GDP report, weekly US retail sales reports, Deutsche Bank Auto Conference and the Needham Growth Conference could also impact trading today.

BOTTOM LINE:  Asian indices are slightly lower, weighed down by technology and healthcare shares in the region. I expect US stocks to open modestly lower and to strengthen into the afternoon, finishing modestly higher.  The Portfolio is 75% net long heading into the day.

Stocks Lower into Final Hour on Global Growth Worries, Oil Decline, Profit-Taking, Gaming/Utility Sector Weakness

 Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Most Sectors declining
  

• Volume: Around Average

• Market Leading Stocks: Outperforming

Equity Investor Angst:

• Volatility(VIX) 18.9 +4.0%

• Euro/Yen Carry Return Index 128.94 -.32%

• Emerging Markets Currency Volatility(VXY) 9.49 -.63%

• S&P 500 Implied Correlation 47.51 -1.78%

• ISE Sentiment Index 72.0 -35.7%
  

• Total Put/Call 1.05 -1.87%

• NYSE Arms .66 -28.3%

Credit Investor Angst:

• North American Investment Grade CDS Index 78.30 +1.10%
  

• America Energy Sector High-Yield CDS Index 735.0 +3.61%

• European Financial Sector CDS Index 104.63 +.03%

• Italian/German 10Y Yld Spread 261.25 -.25 basis point
  

• Asia Ex-Japan Investment Grade CDS Index 90.0 +.65%
  

• Emerging Market CDS Index 195.0 -.54%
  

• iBoxx Offshore RMB China Corporate High Yield Index 153.32 -.13%

• 2-Year Swap Spread 16.0 +.25 basis point

• TED Spread 37.25 -.5 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap 1.5 +1.75 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 67.95 +.06%

• 3-Month T-Bill Yield 2.41% unch.

• Yield Curve 17.25 +1.5 basis point

• China Iron Ore Spot 70.72 USD/Metric Tonne -1.08%

• Citi US Economic Surprise Index -5.50 +.6 point

• Citi Eurozone Economic Surprise Index -86.7 +1.9 points

• Citi Emerging Markets Economic Surprise Index -19.7 +.6 point

• 10-Year TIPS Spread 1.82 unch.

• .5% chance of Fed rate hike at March 20th meeting, 8.7% chance at May 1st meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -179 open in Japan 

• China A50 Futures: Indicating +12 open in China

• DAX Futures: Indicating +3 open in Germany

Portfolio: 

• Slightly Lower: On losses in my biotech/tech sector longs

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

• Market Exposure: Moved to 100% Net Long

Bear Radar

Style Underperformer:

• Small-Cap Growth -.5%

Sector Underperformers:

• 1) Utilities -2.9% 2) Gaming -2.2% 3) Disk Drives -1.7%

Stocks Falling on Unusual Volume: 

• NEM, PBH, CWEN, VCRA, NEP, ATHM, WDC, SNX, TLRD, SGH and CVNA

Stocks With Unusual Put Option Activity:

• 1) AET 2) RRC 3) ADNT 4) NEM 5) PCG

Stocks With Most Negative News Mentions:

• 1) PCG 2) XPO 3) PPDF 4) VCRA 5) PPL

Charts:

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