Bear Radar

Style Underperformer:

• Mid-Cap Growth -.4%

Sector Underperformers:

• 1) Restaurants -2.9% 2) Social Media -1.5% 3) Insurance -1.5%

Stocks Falling on Unusual Volume: 

• SNAP, SNV, MCD, WBS, NOW, ZM, CHRS, KMB, AYX, TRV, CVA, HAS and SERV

Stocks With Unusual Put Option Activity:

• 1) BIIB 2) UTX 3) PHM 4) CNC 5) MDLZ

Stocks With Most Negative News Mentions:

• 1) TEUM 2) DEST 3) HHC 4) MAT 5) AAOI

Charts:

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

Bull Radar

Style Outperformer:

• Small-Cap Value +.6%

Sector Outperformers:

• 1) Oil Service +2.7% 2) Biotech +2.1% 3) Healthcare Providers +2.1%

Stocks Rising on Unusual Volume:

• BIIB, STMP, CISN, ATNX, PII, INMD, LYFT, HOG, CNC, AERI, CSOD, UBER, JBLU, MTDR, UAA, IDCC, FBP, ZION, ARWR, PETS, DNLI, ARCH, KMT, GOSS, EAF, GPK, ANTM, MTG, SHW, BMY, LPX, YEXT, AAN, X, MTR, NOV, PG, IGT, POL, SLB, SFNC, EOG and DRQ

Stocks With Unusual Call Option Activity:

• 1) EUFN 2) HOG 3) OKE 4) BIIB 5) UPS

Stocks With Most Positive News Mentions:

• 1) STMP 2) PII 3) HOG 4) LYFT 5) JBLU

Charts:

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

Mid-Day Market Internals

NYSE Composite Index:

• Volume Running +5.0% Above 100-Day Average
• 7 Sectors Rising, 4 Sectors Declining
• 64.2% of Issues Advancing, 32.5% Declining
• 170 New 52-Week Highs, 23 New Lows
• 56.1% of Issues Above 200-day Moving Average
• Average 14-Day RSI 49.8%
• Vix 13.8 -1.7%
• Total Put/Call .90 -4.3%
• TRIN/Arms .80 -4.8%

Tuesday Watch

Night Trading 

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

• Asia Ex-Japan Investment Grade CDS Index 70.0 -.5 basis point.

• China Sovereign CDS 39.5 -1.5 basis points.

• Bloomberg Emerging Markets Currency Index  65.91 +.01%.
• FTSE 100 futures +.08%.

• S&P 500 futures +.15%.

• NASDAQ 100 futures +.25%.

Morning Preview Links

Earnings of Note 
Company/Estimate

Before the Open:

• (BIIB)/8.22
• (CIT)/1.21
• (FITB)/.73
• (HOG)/.67
• (HAS)/2.17
• (JBLU)/.54
• (KMB)/1.79
• (LMT)/5.06
• (MCD)/2.21
• (NUE)/.80
• (PCAR)/1.64
• (PII)/1.58
• (PG)/1.24
• (PHM)/.92
• (DGX)/1.71
• (RF)/.39
• (SHW)/6.50
• (TRV)/2.35
• (UTX)/2.03
• (UPS)/2.06

After the Close:

• (BYD)/.39
• (CMG)/3.21
• (IRBT)/.65
• (TER)/.70
• (TXN)/1.44
• (WHR)/3.90

Economic Releases
10:00 am EST

• The Richmond Fed Manufacturing Index for Oct. is estimated to rise to -7 versus -9 in Sept.
• Existing Home Sales for Sept. is estimated to fall to 5.45M versus 5.49M in Aug.

Upcoming Splits

• None of note

Other Potential Market Movers

• The $40B 2Y T-Note auction, weekly US retail sales reports, BIO investor forum and  Mobile World Congress could also impact trading today.

BOTTOM LINE: Asian indices are higher, boosted by technology and financial shares in the region. I expect US stocks to open mixed and to rally into the afternoon, finishing modestly higher. The Portfolio is 100% net long heading into the day.

Stocks Rising into Final Hour on Brexit Deal Hopes, China Trade Deal Optimism, Diminishing Global Growth Worries, Energy/Transport Sector Strength

 Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Around Average

• Market Leading Stocks: Outperforming

Equity Investor Angst:

• Volatility(VIX) 14.2 -.4%

• Euro/Yen Carry Return Index 125.63 -.06%

• Emerging Markets Currency Volatility(VXY) 7.75 -.26%

• S&P 500 Implied Correlation 31.85 -4.47%

• ISE Sentiment Index 112.0 +32.8%
  

• Total Put/Call .93 -5.1%

• NYSE Arms .97 unch.

Credit Investor Angst:

• North American Investment Grade CDS Index 54.02 -1.93%
  

• America Energy Sector High-Yield CDS Index 487.0 +.35%

• European Financial Sector CDS Index 57.32 -4,43%

• Italian/German 10Y Yld Spread 132.75 +2.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 70.07 -.91%
  

• Emerging Market CDS Index 201.25 -.17%
  

• iBoxx Offshore RMB China Corporate High Yield Index 166.83 +.08%

• 2-Year Swap Spread 2.5 -2.25 basis points

• TED Spread 29.75 -2.75 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -22.75 -2.5 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 65.90 -.21%
• 3-Month T-Bill Yield 1.65% -1.0 basis point

• Yield Curve .18 +1.0 basis point

• China Iron Ore Spot 82.67 USD/Metric Tonne +.5%

• Citi US Economic Surprise Index 7.2 -.8 point

• Citi Eurozone Economic Surprise Index -57.2 +9.8 points

• Citi Emerging Markets Economic Surprise Index -20.10 -.5 basis point

• 10-Year TIPS Spread 1.61 +1.0 basis point
• 91.7% chance of Fed rate cut at Dec. 11th meeting, 94.1% chance of cut at Jan. 29th meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +152 open in Japan 
• China A50 Futures: Indicating +23 open in China

• DAX Futures: Indicating -3 open in Germany

Portfolio:

• Higher: On gains in my industrial/tech/retail/biotech 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 -1.1%

Sector Underperformers:

• 1) Gold & Silver -1.7% 2) Homebuilding -.7% 3) Medical Equipment -.2%

Stocks Falling on Unusual Volume: 

• BA, LTM, CRL, KMT and SPR

Stocks With Unusual Put Option Activity:

• 1) SKT 2) COTY 3) HPE 4) HOG 5) PLUG

Stocks With Most Negative News Mentions:

• 1) DEST 2) SPR 3) BA 4) SNDL 5) SSYS

Charts:

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