Bear Radar

Style Underperformer:

• Small-Cap Growth -1.2%

Sector Underperformers:

• 1) Retail -2.8% 2) Drugs -1.9% 3) Oil Service -1.8%

Stocks Falling on Unusual Volume: 

• ANF, GOOS, HLI, PLAN, DKS, WDAY, EVH, CPRI, PPC, YPF, GIS, CAMP, PDCE, ESTC, JNJ, CALM, PAA, CATM, PAGP, KEM, ENR, CLVS, SAFM, TSN, AGN, AEO, LB, PPC, YETI and ELF

Stocks With Unusual Put Option Activity:

• 1) GLUU 2) CRZO 3) KKR 4) DVA 5) AET

Stocks With Most Negative News Mentions:

• 1) CAMP 2) GIS 3) JNJ 4) NIO 5) TEAM

Charts:

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

Bull Radar

Style Outperformer:

• Mid-Cap Growth -.6%

Sector Outperformers:

• 1) Telecom +.7% 2) Semis +.4% 3) Gaming +.2%

Stocks Rising on Unusual Volume:

• SOLY, CARA, CY, BLMN, HEI, AMRN, YY, ROKU, ARMK, MOMO, ON, WUBA and NTNX

Stocks With Unusual Call Option Activity:

• 1) GPOR 2) GNW 3) CARA 4) DKS 5) CY

Stocks With Most Positive News Mentions:

• 1) CARA 2) BYND 3) ROKU 4) BZUN 5) HEI

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running +6.6% Above 100-Day Average
• 1 Sector Rising, 10 Sectors Declining
• 27.1% of Issues Advancing, 69.6% Declining
• 49 New 52-Week Highs, 179 New Lows
• 46.7% of Issues Above 200-day Moving Average
• Average 14-Day RSI 41.6%
• Vix 18.3 +4.5%
• Total Put/Call 1.25 +17.9%
• TRIN/Arms 1.55 -2.5%

Wednesday Watch

Night Trading 

• Asian equity indices are -1.0% to -.5% on average.

• Asia Ex-Japan Investment Grade CDS Index 76.0 +1.5 basis points.

• China Sovereign CDS 54.5 +2.0 basis points.

• Bloomberg Emerging Markets Currency Index 65.59 -.03%.

• S&P 500 futures -.29%.

• NASDAQ 100 futures -.49%.

Morning Preview Links 

Earnings of Note 
Company/Estimate

Before the Open:

• (ANF)/-.43

• (BMO)/2.33

• (GOOS)/.05

• (DKS)/.59 

After the Close:

• (GES)/-.26

• (KEYS)/.99

• (PANW)/1.25

• (PVH)/2.45

• (SMTC)/.33

• (VRNT)/.62

Economic Releases
10:00 am EST

• The Richmond Fed Manufacturing Index for May is estimated to rise to 7.0 versus 3.0 in April.
  

Upcoming Splits

• (FFIN) 2-for-1

Other Potential Market Movers

• The French GDP report, $32B 7Y T-Note auction, weekly MBA Mortgage Applications report, US weekly retail sales reports, Raymond James Defense/Govt Services Conference, Cowen Tech/Media/Telecom Conference and the (PBI) investor day  could also impact trading today.

BOTTOM LINE: Asian indices are lower, weighed down by technology and industrial shares in the region. I expect US stocks to open modestly lower and to maintain losses into the afternoon. The Portfolio is 25% net long heading into the day.

Stocks Reversing Lower into Final Hour on China Trade Deal Worries, European Debt Angst, Technical Selling, Biotech/Energy Sector Weakness

 Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 16.7 +5.4%

• Euro/Yen Carry Return Index 127.04 -.22%

• Emerging Markets Currency Volatility(VXY) 8.38 -.71%

• S&P 500 Implied Correlation 41.3 +3.7%

• ISE Sentiment Index 68.0 -1.45%
  

• Total Put/Call 1.03 +7.3%

• NYSE Arms 1.31 +3.15%

Credit Investor Angst:

• North American Investment Grade CDS Index 66.32 +2.21%
  

• America Energy Sector High-Yield CDS Index 567.0 +.73%

• European Financial Sector CDS Index 89.35 +2.6%

• Italian/German 10Y Yld Spread 284.50 +17.5 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 74.87 +1.02%
  

• Emerging Market CDS Index 208.35 +.61%
  

• iBoxx Offshore RMB China Corporate High Yield Index 163.13 +.01%

• 2-Year Swap Spread 3.25 -.25 basis point

• TED Spread 19.0 +.75 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -18.75 -.5 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 65.62 -.3%
• 3-Month T-Bill Yield 2.34% unch.

• Yield Curve 13.75 -2.0 basis points

• China Iron Ore Spot 102.75 USD/Metric Tonne -.38%

• Citi US Economic Surprise Index -35.0 +5.1 points

• Citi Eurozone Economic Surprise Index -14.40 +7.3 points

• Citi Emerging Markets Economic Surprise Index -24.20 +3.2 points

• 10-Year TIPS Spread 1.74 -3.0 basis points
• 19.4% chance of Fed rate cut at July 31st meeting, 52.1% chance of cut at Sept. 18th meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -175 open in Japan 
• China A50 Futures: Indicating -144 open in China

• DAX Futures: Indicating -21 open in Germany

Portfolio:

• Slightly Higher: On gains in my tech sector longs and index hedges

• Disclosed Trades: Added to my (IWM)/(QQQ) hedges and to my emerging market shorts

• Market Exposure: Moved to 25% Net Long

Bear Radar

Style Underperformer:

• Large-Cap Value -.3%

Sector Underperformers:

• 1) Tobacco -2.8% 2) Foods -1.2% 3) Disk Drives -.7%

Stocks Falling on Unusual Volume: 

• FAF, INS, ASGN, AMWD, YNDX, PHI, EC, KHC, BTI, CBAY, FIZZ, NTNX, ROKU, ARGX, HOV and MYL

Stocks With Unusual Put Option Activity:

• 1) HPQ 2) TIF 3) GPS 4) AMTD 5) DKS

Stocks With Most Negative News Mentions:

• 1) NTNX 2) DF 3) FAF 4) GILD 5) MYL

Charts:

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