Bull Radar

Style Outperformer:

• Small-Cap Growth +.4%

Sector Outperformers:

• 1) Steel +2.8% 2) Alt Energy +1.1% 3) Video Gaming +1.0%

Stocks Rising on Unusual Volume:

• SOLY, PLAN, TSS, SEAS, MOMO, QTNT, RGNX, FCAU, SPLK, AMD, FATE, PAYS, STAR, APLS and CYRX

Stocks With Unusual Call Option Activity:

• 1) KSA 2) SEAS 3) DKS 4) BMRN 5) CL

Stocks With Most Positive News Mentions:

• 1) PLAN 2) AMD 3) AQSP 4) TRXC 5) ATVI

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running -14.6% Below 100-Day Average
• 10 Sectors Rising, 1 Sector Declining
• 60.4% of Issues Advancing, 35.3% Declining
• 78 New 52-Week Highs, 47 New Lows
• 48.5% of Issues Above 200-day Moving Average
• Average 14-Day RSI 43.1%
• Vix 16.0 +.8%
• Total Put/Call .86 -10.4%
• TRIN/Arms 1.17 -7.9%

Tuesday Watch

Today's Headlines

Bloomberg: 

• U.S. ‘Not Ready’ to Make a Trade Deal With China, Trump Says. 

• China's April Industrial Profits Fall as Trade Standoff Worsens.

• No-Deal Brexit Looks More Likely, But Could a Tory Leader Pull It Off?  

• President Trump Eyes August for a U.S.-Japan Deal on Trade.

• Italy Risks $4 Billion EU Penalty Over Failure to Rein In Debt.

• Europe Stocks Advance With Bonds After EU Election: Markets Wrap. 

• Asia Stocks Set for Muted Open; Dollar Edges Up. Asia stocks were set for a muted open as investors mulled comments from President Donald Trump that the U.S. was “not ready” to reach a trade deal with China. The dollar edged higher. Futures on Japanese and Australian equities were steady, with those in Hong Kong modestly lower. U.S. contracts were little changed in early Asian trading with markets shut Monday for Memorial Day. Earlier, European stocks advanced with bonds after EU elections. A holiday in the U.K. kept volumes low. Futures on the Nikkei 225 were little changed in Singapore. Contracts on Australia’s S&P/ASX 200 Index were flat. Hong Kong’s Hang Seng Index futures fell 0.3% earlier.

• Bitcoin Jumps Toward $9,000 in Best-Performing Month Since 2017.

Wall Street Journal:

• Amid Tensions, Iran’s Crude Buyers Jump Ship.

• Drug Giant Tries New Tactic to Fight Cancer.

• U.S. Is Learning That China Likes Its Own Model.

• European Elections Deepen Divisions in National Capitals.

• Risky Municipal Bonds Are on a Hot Streak.

• A Europe Still Divided.

• Trade Tensions Further Hurt Tractor Makers.

Fox News:

• Trump seizes on NYU professor's false tweet about him to push change of libel laws.

• DANIEL TURNER: Stealth AOC 'Green New Deal' now the law in this state.

CNBC:

• China is indicating it’ll never give in to US demands to change its state-run economy.

• Trump says he hopes to announce a trade deal with Japan soon.

• Blue-state House members try to reclaim higher SALT deductions that were cut in Trump’s tax overhaul.

• US and China aren’t facing ‘enough pain’ right now for them to strike a quick trade deal: UBS.

Zero Hedge:      

• Italian Bond Yields Spike After EU Threatens Huge Fine Over Excessive Debt.

• "A Big Wake Up Call": Chinese Bond Market Roiled By First Ever Bank Failure.

• Some Tesla Superchargers Now Limit Your Car's Charge To 80%.

• "The Most Destructive Breach In History": Hackers Use NSA Code To Grind Baltimore To A Halt.

• "Pig Ebola" Epidemic Threatens To Unleash Stagflation Across China.

• The Worst 2020 Election Interference Will Be Perfectly Legal.

• "This Is A Major Move For China": Beijing Prepares Cyberscurity Rule In Retaliation Against US.

• Most Americans Want Congress To Drop 'Witch Hunt' In Favor Of 'More Serious Issues': CBS Survey.

• California Is Shaken By More Than 80 Tremors, Chile Struck By Largest Quake In 12 Years.

• Navy Pilots Describe Stunning UFO Sightings; Hypersonic Speeds, No Exhaust Plume.

• PBOC Panics: Threatens Yuan Shorts With "Huge Loss".

• Auto Shares Surge As Fiat, Renault Confirm Merger Talks.

• Futures Fade After Trump Says "Not Ready For Deal With China", Autos Jump On Fiat Deal.

• Macron Suffers Huge Blow With Defeat To Le Pen.

• The ECB's Monetary Trap.

• Which U.S. States Have The Worst Roads?

Night Trading

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

• Asia Ex-Japan Investment Grade CDS Index 74.25 -.25 basis point.

• China Sovereign CDS 52.5 unch.

• Bloomberg Emerging Markets Currency Index 65.81 unch.

• FTSE 100 futures unch.

• S&P 500 futures +.05%.

• NASDAQ 100 futures +.12%.

Morning Preview Links

Earnings of Note

Company/Estimate

Before the Open:

• (AMWD)/1.89

• (BAH)/.62

• (MOMO)/.54

After the Close:

• (WDAY)/.41

• (YY)/.36

Economic Releases
9:00 am EST

• The House Price Purchase Index for 1Q.

• The S&P CoreLogic CS 20-City MoM for March is estimated to rise +.2% versus a +.3% gain in February.

10:00 am EST

• The Conference Board Consumer Confidence report for May is estimated to rise to 130.0 versus 129.2 in April.
  

10:30 am EST

• The Dallas Fed Manufacturing Activity Index for May is estimated to rise to 6.6 versus a reading of 2.0 in April.
  

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The China Industrial Profits report, Eurozone Industrial Production report, Eurozone Consumer Confidence report, Deutsche Bank Financial Services Conference and the KeyBanc Industrials/Basic Materials Conference could also impact trading today.

BOTTOM LINE: Asian indices are mostly higher, boosted by technology and commodity 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 week.

Weekly Outlook

• Wall St. Week Ahead by Reuters. 

• 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 China trade deal concerns, global growth fears and European/Emerging Markets/US High-Yield Debt Angst offset bargain-hunting, technical buying and more dovish FOMC commentary. My intermediate-term trading indicators are giving neutral signals and the Portfolio is 50% net long heading into the week.

Today's Headlines

Bloomberg: 

• Macron Chastened as French Exit Polls Show Narrow Le Pen Win.

• Belgian Establishment Suffers Election Loss as Far Right Surges.

• Live Blog: Final Voting in EU Elections.  

• European Parliament Vote Has Highest Turnout in 20 Years.

• EU Voting in Real-Time Graphics.

• Xi Seeks Global Tech Cooperation After U.S. Blocks Huawei.

• Billionaire Huawei Founder Defiant in Face of Existential Threat.  

• China Warns Traders of ‘Huge Loss’ If They Short the Yuan.

• Asia Stocks Set for Mixed Start; Euro Steadies: Markets Wrap. Asian stocks looked set for a mixed start following three weeks of declines on U.S.-China trade tensions. The euro steadied as mainstream European Union parties held their ground against populists in elections for the bloc’s Parliament. Futures on Japan equity indexes nudged higher, with Hong Kong poised for modest declines and Australian shares set to open flat. The S&P 500 Index eked out a gain Friday and the 10-year Treasury yield held steady. With holidays in the U.K. and U.S. Monday, trading volumes could be lighter than usual. The dollar ended last week on the back foot over concerns that the U.S.-China trade spat will hurt global growth. Futures rose 0.2% on the Nikkei 225 late Friday. Hang Seng Index contracts slid 0.3%. Futures on Australia’s S&P/ASX 200 Index were little changed.

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

• Barr Likely to ‘Consult’ With Intel Community on Probe: Sanders.  

• Starting Gun May Fire on Replacing Draghi: Global Economy Week.

Wall Street Journal:

• Franchisees Like Me Are in Union Crosshairs

• I Didn’t Earn Slavery Reparations, and I Don’t Want Them 

• Trump’s Japan Visit: Golf, Burgers and a Provocative TweetA

• Convertible-Bond Boom in China Isn’t All Good News for Shareholders.

• Investors Try Stock Picking as Volatility Rises.

• European Voters Look Set to Boost Skeptics’ Power.

• FAA Broadens Boeing Probe, Delaying 737 MAX’s Return.

Fox News:

• MICHAEL KNOWLES: Tim Cook gives terrible advice to graduates.

• Lindsey Graham: Those against releasing Russia probe details 'worried about being exposed'.

CNBC: 

• Here’s how Bernie Sanders made his millions — and why it matters in the 2020 election

• Tax delays and canceled home sales: Cyberattacks are taking a big personal toll on people’s lives.

• There’s a swine flu spreading in China that Wall Street analysts fear could hit these stocks.

• There’s no real evidence Beyond Meat products are healthier than meat: Former US agriculture chief.

Zero Hedge:

• Macron Suffers Huge Blow With Defeat To Le Pen. 

• How To Prevent Debate While Claiming To Be In Favor Of It.

• Visualizing How Much Oil Is In An Electric Vehicle?

• Watch: DHL Launches First Fully-Automated Drone Delivery Service In China.

• Morgan Stanley: If The Trade War Doesn't End Soon, It Will Cause Enough Economic Erosion To Crash Markets.

• Former CNN Contributors Slam 'Hate Trump' Network That 'Openly Despises Conservatives' .

• "The Fund Went Seriously Wrong This Month" - The World's Most Bearish Hedge Fund Suffers Spectacular Loss.

• London Plans 15mph Speed Limit To "Cut Air Pollution".

Today's Headlines

Bloomberg: 

• Trump’s ‘Easy’ Trade War Hits Snags as China Plays the Long Game.

• China Commits to Trade Talks Amid ‘Groundless’ Huawei Suspicions.   

• ECB’s Weidmann Sees No New Stimulus Need Amid Price Pressure.

• Markets Show They're Finally Waking Up to Global Wall of Worry.

• Fiat Chrysler in Advanced Talks to Forge Ties With Renault.

• Florida Is the Big Winner as the Wealthy Move Out of Northern States.  

• U.S. Military to Trawl Through 350 Billion Social Media Messages.

Wall Street Journal:

• Wall Street Isn’t Buying What Silicon Valley Is Selling.

• Huawei’s Yearslong Rise Is Littered With Accusations of Theft and Dubious Ethics.

• Haggling Begins Over Who Will Succeed ECB’s Mario Draghi.

• Trump’s Border-Wall Plans Blocked by Federal Judge.

• Trump Preparing Executive Order on Health-Cost Disclosure.

MarketWatch.com:

• Memorial Day 2019: Everything investors need to know about trading hours, market closures.

• People spent $1.9 billion last year on apps to keep their brains sharp as they age.

Fox News:

• Trump 'smiled' when North Korea called Biden 'low IQ,' suggests critical editorial was a 'signal'.

• Trump slams ‘activist Obama appointed judge’ over border wall ruling.

CNBC:

• The stock market would be much lower if it weren’t for companies buying back their own shares.

• Trump takes dig at Japan for ‘substantial’ trade advantage and calls for more investment in US.

• Microsoft(MSFT), once considered a boring software maker, has outperformed tech unicorns since 2015.

Zero Hedge:

• Trump Targets UK, Australia And Ukraine Over 'Greatest Hoax In The History Of Our Country'.

• Latest Gillette Ad Features Dad Teaching Transgender Son To Shave For The First Time.

• Global Elites Started The Russia Nonsense.

• Delivery By Skynet: Ford Testing Headless Robots In Driverless Cars For Home Delivery.

• Facebook Bans CrossFit Group For Advocating Low-Carb, High-Fat Diets.

• How Times Change: 2014 Mainstream Media Demands Obama Fire Brennan, Fix Intel Agencies.

• Huawei "Spent All Their Resources Stealing", Stunning New Exposé Shows.

• After Reading This, You'll Probably Never Want To Eat Genetically-Modified Food Again.

• CNN Lays Off Staffers After Massive Ratings Drop.

• Negative Interest Rates Spread To Mortgage Bonds.

• Nigel Farage Takes Down Another Tory Government, Bye Bye Theresa May.

• Oxford University Dumbs-Down Admissions Process For 'Disadvantaged' Applicants.

• EU Establishment Set For Popular Rebuke In Elections.

• Academic Elitists Have Invented A New Way To Rig Voting In The Future.

• San Francisco: An Expensive, Shit-Coverd Cesspool Marked By Crime And Depression.

• Stocks Suffer Worst Streak In 8 Years As Trade Tempest Sparks Rates Rout.