Bull Radar

Style Outperformer:

• Small-Cap Growth +2.5%

Sector Outperformers:

• 1) Biotech +2.5% 2) Semis +2.4% 3) Gaming +2.3%

Stocks Rising on Unusual Volume:

• MDCO, ARWR, FOE, INMD, EDIT, ZS, NXTC, DTIL, MNTA, ICPT, BIG, JELD, DRNA, AMTD, TIF, LB, ALNY, INCY, SFNC, SPLK, POST, TPTX, PTCT, GBT, ZGNX, NXST, ESPR, AQUA, AXNX, CFX, EVRI, GSX, ETFC, DLTR and SERV

Stocks With Unusual Call Option Activity:

• 1) BURL 2) MDCO 3) DLTR 4) PANW 5) ICPT

Stocks With Most Positive News Mentions:

• 1) SRNE 2) MDCO 3) TIF 4) NVDA 5) ALNY

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running +5.0% Above 100-Day Average
• 9 Sectors Rising, 2 Sectors Declining
• 74.2% of Issues Advancing, 22.8% Declining
• 102 New 52-Week Highs, 10 New Lows
• 56.0% of Issues Above 200-day Moving Average
• Average 14-Day RSI 46.0%
• Vix 12.1 -1.9%
• Total Put/Call .90 -5.3%
• TRIN/Arms 1.13 +49.4%

Monday Watch

Today's Headlines

Bloomberg:   

• China to Raise Penalties on IP Theft in Trade War Compromise.  

• Hong Kong’s Pro-Democracy Candidates Poised to Win Majority.

• Boris Johnson Plays Safe With ‘Sensible’ Manifesto for U.K. Vote. 

• Stocks Rise as China Offers Compromise on Trade. Stocks in Asia rose along with American equity futures as investors monitored the latest move by China to ease trade tensions. Currencies saw muted reactions. Equities in Japan, South Korea and Australia advanced and S&P 500 futures edged up. In the latest on trade: China said over the weekend it will raise penalties on intellectual property violations as it tries to smooth over one of the sticking points in discussions with the U.S. The S&P 500 Index nudged up Friday after President Donald Trump said he was “very close” to a trade pact with China. Japan’s Topix index advanced 0.7% as of 9:05 a.m. in Tokyo. South Korea’s Kospi index added 1%. Futures on the S&P 500 Index rose 0.2%. Australia’s S&P/ASX 200 Index rose 0.7%.    

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

• China Theft Crackdown, Fed Inequality, Negative Rates: Eco Day.

• Oil Resumes Gain as Investors Monitor Back-and-Forth Trade Talks.

• Nunes Defiant as Giuliani Associate Connects Him With Biden Dirt.

Wall Street Journal:

• LVMH Nears Deal to Acquire Tiffany for $16.3 Billion.

• The Mythology of Voter Suppression.

• Winning Was Trump’s High Crime and Misdemeanor.

• Hong Kong Takes a Pause From Protests to Vote in Record Numbers.

• Stocks Run Gantlet of Bad News to Record Highs.

• Utilities Targeted in Cyberattacks Identified.

• Iran Restores Internet Access, but Threatens More Arrests of Protesters.

• Exporting the Nile: Outsiders Buy Up Vital Water Supply.

• Navy Secretary Richard Spencer Resigns Amid Controversy Over Navy SEAL.

• The Climate-Change Game.

• The Left Shrugs at Impeachment.

• ‘Idea Laundering’ in Academia.

MarketWatch.com:

• Opinion: ‘Performance chasing’ and Trump’s impeachment process could push the Dow to 30,000.

Fox News: 

• Republican on Intel Committee says chairman 'really does think that many Americans are idiots'.

• Kennedy slams Democrats, says Pelosi using impeachment inquiry as 'political weapon'.

• Nunes vows lawsuit to hold ‘corrupt’ media accountable after Ukraine report.

CNBC:

• A Bloomberg 2020 run could take big donors off the board for Biden, other Dems.

• Hong Kong vote hits record amid calls for democracy.

• Doctors are turning to YouTube to learn how to do surgical procedures, but there’s no quality control.

• ‘Frozen II’ nabs $127 million in its debut, becomes third-highest animated opening of all time.

• Bloomberg News will not investigate Mike Bloomberg or his Democratic rivals during primary.

• Top economist lowers recession risk for 2020 but says hurdles remain.

Zero Hedge:           

• Hong Kong Election: Pro-Democracy Candidates Surge Amid Record Turnout; Protest Organizer Wins Seat.

• Navy Secretary Fired Over SEAL Controversy.

• China Today Is Like Japan In 1989.

• Thanks To Trump, The Mullahs Are Going Bankrupt.

• Bloomberg Officially Enters 2020 Presidential Race To "Defeat Trump And Rebuild America".

• State Department Releases Detailed Accounts Of Biden-Ukraine Corruption.

• Democrats Getting 'Cold Feet' As Impeachment Support Evaporates.

• Negative-Rates Bite: Bundesbank Fears Financial Stability Risks, Moody's Downgrades Outlook For German Banks.

• China's Skyscraper Boom Comes Crashing Down Amid Developer Default.

• 6 Reasons Why The 'Most-Hated Politician' In Latin America Became President Of Brazil.

• China Would Pay A Catastrophic Price Should There Be A Hong Kong Massacre.

• Republicans & Democrats Agree: Give Vast Snooping Powers To The US Government.

• Japanese Hotel Offers $1 Stay If Guests Livestream Their Every Moment.

Business Insider:

• Medical experts say China is falsifying organ donation data, after it was accused of harvesting body parts from Uighur Muslims in prison camps.

Night Trading

• Asian indices are unch. to +1.0% on average.

• Asia Ex-Japan Investment Grade CDS Index 65.0 -.25 basis point.

• China Sovereign CDS 39.50 unch.

• Bloomberg Emerging Markets Currency Index 65.49 +.03%.

• FTSE 100 futures +.36%.

• S&P 500 futures +.30%.

• NASDAQ 100 futures +.40%.

Morning Preview Links

Earnings of Note

Company/Estimate

Before the Open:

• (JEC)/1.31

After the Close:

• (A)/.86

• (AMBA)/.21

• (HPE)/.46

• (NTNX)/-.75

• (PANW)/1.04

• (PVH)/2.99

Economic Releases
8:30 am EST

• The Chicago Fed National Activity Index for Oct. is estimated to rise to -.2 versus -.45 in Sept.

10:30 am EST

• The Dallas Fed National Activity Index for Nov. is estimated to rise to -3.5 versus -5.1 in Oct.
  

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The $40B 2Y T-Note auction, German IFO report and the (PTC) investor meeting could also impact trading today.

BOTTOM LINE: Asian indices are mostly higher, boosted by technology and industrial shares in the region. I expect US stocks to open modestly higher and to maintain gains into the afternoon.  The Portfolio is 100% net long heading into the week.

Weekly Outlook

• Wall St. Week Ahead by Reuters.

• Global Economy Week by Bloomberg. 

• The Week Ahead by Yahoo. (video)

• Stocks to Watch Next Week by Seeking Alpha.

• Weekly Economic Calendar by Briefing.com.

BOTTOM LINE: I expect US stocks to finish the week modestly higher on China trade deal hopes, fewer global growth concerns, earnings optimism, technical buying, seasonal strength and short-covering. My intermediate-term trading indicators are giving neutral signals and the Portfolio is 100% net long heading into the week.

Today's Headlines

Bloomberg: 

• Pence Makes Surprise Iraq Visit to Reassure Kurdish Allies

• A Breakthrough on Trade Can Push Treasury Yields Only So High.

• S&P 500 Melt-Up to 3,400 Is Likely But Unsustainable, SocGen Says.

• IRS Says Millionaires Can Keep Estate Tax Benefits After 2025.  

• Bloomberg Makes Record $33 Million Ad Buy: Campaign Update.

• In a Class By Itself: How Target Became the Model in U.S. Retail.  

• Elon Musk Says ‘Funding Secured’ Has No Universal Meaning.  

• Populism Is Being Driven by Automation. 

• Giuliani Says Biden Documents to Be Released ‘If I Disappear’.

• Justice Ginsburg Hospitalized With Fever, May Be Released Sunday.

Wall Street Journal:

• Mayor Pete’s South Bend Record.

• Winning Was Trump’s High Crime and Misdemeanor.

• The Best-Managed Companies of 2019.

• Millions of Hong Kongers to Take to the Streets Again—This Time to Vote.

• Your Health Data Isn’t as Safe as You Think.

CNBC:

• What’s on kids’ wish lists? Here are 12 of the hottest toys for the holidays.

• Mike Bloomberg is buying at least $31 million in TV ads ahead of potential 2020 run.

• China attacks US at G20 as the world’s biggest source of instability.

• Wall Street’s stock forecasters see just a 5% gain in 2020.

• Here’s how online scammers prey on older Americans, and what they should know to fight back.

• Elon Musk says Tesla has received 146,000 orders for its Cybertruck after botched debut.

• US wants China trade deal but won’t turn blind eye to Hong Kong, Trump national security advisor says. 

• Novartis reportedly nears deal to buy cholesterol drugmaker Medicines Company(MDCO) for $7 billion.

• Hong Kong protests simmer ahead of local elections: ‘I don’t feel optimistic about the outcome’.

Barron's:

• Had bullish commentary on (PFE), (SCHW), (BTI), (FTI), (BHP), (HPE), (AAPL), (TSN), (UNH), (CI), (CNC), (ANTM), (NLSN), (DAL), (UAL), (RIO), (LYB) and (DD).

Zero Hedge:

• John Stossel Exposes The "Climate Myths".

• Did Joe Biden Just Threaten Lindsey Graham For Investigating Him? 

• "A Conundrum": 2019 Equity Outflows Are The Biggest Ever, Yet Stocks Are At All Time Highs - What Happens Next?

• Not The Onion - Ivy League Students Push To Abolish Prisons.

• Liberal 'Dark Money' Operation Behind Ads Urging Republicans To Support Impeachment.

• NYT Names FBI "Resistance" Lawyer Under Criminal Investigation For Fabricating FISA Docs.

• John Solomon Drops 28 Uncomfortable Facts Crushing The 'Debunked Conspiracy Theory' Narrative.

• 'Bombshells Upon Explosions': Watch How The Media Primed The Public With Impeachment Narrative.

• Friday Humor: Democratic Candidates Clash Over Most Effective Plan To Destroy Economy.

• Did Schiff Turn Trump Into Billionaire Martyr With Ill-Advised Impeachment Gambit?

• Doctors Have Officially Frozen And Reanimated A Human Being For The First Time.

• China Pops Electric Car Bubble By Slashing Subsidy Program, Weighs On Lithium Prices.

• Taylor Swift's Army Of Ride-Or-Die Fans Sent A Flurry Of Death Threats To Music Manager And Family.

• "More Eco-Friendly" Meets "Horrors Of Capitalism": $34 Toilet Paper 'With A Conscience'.

• Analysts Eviscerate Musk's Cybertruck: "0% Of Responses Felt It Will Be A Success".

• Trudeau "Open" To Handing Out Taxpayer-Funded Heroin To Vancouver Addicts.

• Impeachment Theater Offers Americans Glimpse Of The Unseen-Unelected Who Actually Rule Over Us.

• Stocks Suffer 'Shocking' Down Week As Fed Balance Sheet Unexpectedly Shrinks. 

Business Insider:  

• Facebook(FB) built a facial-recognition app that let employees identify people by pointing a phone at them.