Bear Radar

Style Underperformer:

• Small-Cap Value -.3%

Sector Underperformers:

• 1) Steel -1.8% 2) Retail -.9% 3) Tobacco -.8%

Stocks Falling on Unusual Volume: 

• ARLP, RGNX and PE

Stocks With Unusual Put Option Activity:

• 1) DISCA 2) HOG 3) TUR 4) EMB 5) UNG

Stocks With Most Negative News Mentions:

• 1) CRWD 2) SDC 3) CGC 4) IPGP 5) PCG

Charts:

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

Bull Radar

Style Outperformer:

• Large-Cap Growth +.1%

Sector Outperformers:

• 1) Shipping +1.6% 2) Gold & Silver +1.1% 3) Biotech +.8%

Stocks Rising on Unusual Volume:

• RVNC, INMD, SLDB, RETA, HGV, FLXN, GH, LPG, ACM, DSSI, ABMD, SGMS, TSLA, PPL, APA and PLNT

Stocks With Unusual Call Option Activity:

• 1) PPL 2) ALXN 3) PE 4) PG 5) APC

Stocks With Most Positive News Mentions:

• 1) HPE 2) REPR 3) PLNT 4) WDC 5) CCL

Charts:

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

Mid-Day Market Internals

NYSE Composite Index:

• Volume Running -21.7% Below 100-Day Average
• 6 Sectors Rising, 4 Sectors Declining
• 42.8% of Issues Advancing, 54.2% Declining
• 52 New 52-Week Highs, 43 New Lows
• 52.5% of Issues Above 200-day Moving Average
• Average 14-Day RSI 47.3%
• Vix 14.9 -4.6%
• Total Put/Call 1.18 +19.2%
• TRIN/Arms 1.22 +96.8%

Monday Watch

Today's Headlines

Bloomberg:

• Hunter Biden Steps Down From Chinese Board as Trump Attacks.  

• Syria’s Assad Sends Troops North As Turkish Offensive Escalates.

• Goldman Sees Pound Rallying Further as Hopes of Brexit Deal Rise. 

• Trump’s Sanction Threat May Give Lira Bears License to Go All In.

• Trump Says U.S. Treasury ‘Ready to Go’ With Sanctions on Turkey.   

• Global Hunt for Yield Prompts Fresh Surveillance by Regulators.

• Ukraine Aid Delay Didn’t Harm U.S. National Security, Defense Secretary Says.

• Stocks in Asia to Advance After Trade Progress. Asian stocks looked set to start the week higher after signs of progress in U.S.-China trade negotiations lifted U.S. equities Friday and sent Treasury yields higher, though sentiment may be capped as investors voiced skepticism on the accord. Equity futures pointed higher across Asia -- Japan will be shut for a holiday. On Friday, the S&P 500 Index climbed to within 1.8% of a record after President Donald Trump said the two sides agreed to the outlines of a deal that could be signed as early as next month. The yuan edged down after Friday’s advance. Futures on the S&P 500 Index rose 0.1% as of 6:10 a.m. in Hong Kong. The underlying gauge added 1.1% on Friday. Futures on Hong Kong’s Hang Seng Index rose 0.7%. Futures on Australia’s S&P/ASX 200 Index gained 0.5%.

• As One Massive Blackout Ends, California Is Bracing for Next.

Wall Street Journal:

• Trump Orders U.S. Forces to Withdraw From Northern Syria.

• Stocks’ Path Toward Records Led by Defensive Plays.

• Beto O’Rourke’s Progressive Tolerance.

• Democrats Push Warren for Plan to Pay for Medicare for All.

• SoftBank Seeking to Take Control of WeWork Through Financing Package. 

• Trump Wins Every Democratic Debate.

• The China Trade Truce.

• U.S. Military to Withdraw From Northern Syria.

• Hong Kong Protesters Maintain Pressure Ahead of Speech by City’s Leader.

MarketWatch.com:

• Semiconductor stocks are poised to benefit as industry sales growth resumes in 2020.

• Democratic debate on Tuesday features a surging Elizabeth Warren and a recuperating Bernie Sanders.

Fox News:

• GOP accuses Cummings of violating bipartisan agreement with latest inquiry.

• Actress pulls support for Hillary Clinton, rips her connection to disgraced mogul Weinstein.

• KIMBERLEY STRASSEL: Media waging relentless crusade to destroy Trump.

CNBC:

• Investors are flocking to money markets at the highest rate since the financial crisis.

Zero Hedge:    

• The CIA Versus Donald J. Trump.

• Turkey Warns Of War As Syrian Army Heads To Turkish Border.

• Schiff's CIA 'Whistleblower' May Not Testify In Impeachment Probe After All.

• Any Attempt To Divide China Will End In "Shattered Bones", China's Xi Warns.

• Matt Taibbi: "We're In A Permanent Coup".

• Bill Gates Was Much Closer To Jeffrey Epstein Than He Initially Let On.

• Kansas Girl, 13, Charged With Felony For Making "Gun-Like Hand Gesture" Toward Classmates.

• Central Bank Issues Stunning Warning: "If The Entire System Collapses, Gold Will Be Needed To Start Over".

• "Anarchy" As 750 ISIS Prisoners Escape Syria Camp After Turkish Shelling.

• China's Modern Blueprint For Global Power

• Hunter Biden Emerges; Quits Board Of Chinese Private-Equity Firm

• US Troops Can Fire Back If Turkey Attacks Positions Again, Pentagon Says

• Trump Orders 1,000 Troops To Evacuate Syria, Warns Sanctions On Turkey "Ready To Go".

• American STD Cases Rise To Record High.

• Retail Investors Are Acting As If A Financial Crisis Is Just Around The Corner.

• The World's Least-Free Countries Reveal Just How Much "Socialism Sucks".

• The "Safe Drivers Act" Is A Real-Time National Driver Surveillance Program.

Night Trading

• Asian indices are +.5% to +1.0% on average.

• Asia Ex-Japan Investment Grade CDS Index 75.25 -2.75 basis points.

• China Sovereign CDS 44.25 -2.25 basis points.

• Bloomberg Emerging Markets Currency Index 65.64 -.01%.

• FTSE 100 futures +.63%.

• S&P 500 futures +.32%.

• NASDAQ 100 futures +.38%.

Morning Preview Links

Earnings of Note

Company/Estimate

Before the Open:

• None of note

After the Close:

• None of note

Economic Releases

• None of note

Upcoming Splits

• (ELS) 2-for-1
  

Other Potential Market Movers

• The Eurozone Industrial Production report, WTO meeting regarding EU tariffs and the (THO) investor day could also impact trading today.

BOTTOM LINE: Asian indices are 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 technical buying, diminished China trade tensions, fewer global growth concerns, less European/Emerging Markets/US High Yield debt angst, oil strength and yen weakness. My intermediate-term trading indicators are giving neutral signals and the Portfolio is 100% net long heading into the week.

Today's Headlines

Bloomberg:  

• Trump Touts U.S.-China Phase One Trade Deal, Delays Tariffs.

• Trump Says China to Boost Farm Spending to Up to $50 Billion.  

• Trump Says U.S.-China Deal May Spur $20 Billion in Boeing Sales.

• Historic Slump in China Car Market Continues as Sales Drop 6.6%.

• China Needs Even Trump’s Mini-Deal on Trade as Economy Suffers.  

• EU Could Hit Turkey With Arms Embargo as Germany Halts Exports.

• Here Are Some of the Big Stock Winners If Brexit Deal Gets Done.

• Trump’s Fixation on Buttressing $1.5 Trillion in Company Profits.  

• LeBron James Gives Shenzhen a Show but No Words in Nets Matchup.

• QE, or Not QE? Impact of Fed Bond-Buying Will Depend on Treasury.

Wall Street Journal:

• U.S., China Move Forward on Trade.

• Whistleblowers and the Real Deep State.

• The Electric-Vehicle Subsidy Racket.

• Social-Justice Warriors Won’t Listen, but You Should.

• Blackstone Talked With Citadel About Buying Stake.

• Hong Kong Protesters to Trump: We’re Not Done Yet.

• Turkish Troops Appear to Seize Syrian Town in Fourth Day of Invasion.

• PG&E’s Big Blackout Is Only the Beginning.

• Marijuana Madness Turns Into a Cannabis Crash.

Barron's:

• Had bullish commentary on (AEP), (FISV), (GWW), (PNR), (ITW), (NUE), (JNJ), (CRI), (BBBY), (EQIX), (AMT), (SBAC), (SLG), (EQR), (K) and (GE).

• Had bearish commentary on (VIAB).

MarketWatch.com:

• This chart shows the biggest driver for the Dow and it’s not Trump or China trade war.

• Mortgage rates drop once again — sparking more interest in loan refinancing.

• Fed plan to buy T-Bills may open door to more stimulus.

Fox News:

• Hard Rock hotel under construction crashes down, leaving at least 1 dead, 18 injured; 2 others missing.

CNBC:

• These stocks could be the biggest winners if the US completes this phased trade deal with China.

• Trump says the US has come to a substantial phase one deal with China.

• This is the ‘dry tinder’ that could set off explosive growth, top investor says.

• CDC says almost all vaping illness patients end up hospitalized.

Zero Hedge:

• Rep. Jim Jordan Asks 17 Awkward Questions About Pelosi's "Impeachment Inquiry".

• "The CNN Tapes Are Coming": Project Veritas Teases A Coming "CNN Whistleblower".

• Trump Could Be Impeached Based On A Parade Of "Whistleblowers" That Won't Even Testify In Person.

• IRS Adds Question On Crypto Usage To New Income Tax Form Draft.

• Arrest Of 750 Child Protesters In Hong Kong Sparks Outrage.

• Federal Prosecutors Said To Be Investigating Rudy Giuliani.

• Did Everything Just Change?

• Which Cities Have The Highest Risk Of A Housing Bubble?

• 40% Of Hongkongers Want To Flee City Amid Protests And Imminent Recession.

• These Are The Richest People In China.

• "Rip The Mask Off Anonymous LLCs:" NYC Billionaires Set To Be Exposed In New Housing Law.

• "Never Seen This Before" - Protester Spits In Face Of Trump Supporter During VICE Interview.

• Trump Says "Phase One" Of China Trade Deal Reached, Tariff Hike Delayed, Enforcement Plan 'Still Being Worked Out'.

• Pompeo Trolls Value-$ignaling NBA Over China's Treatment Of Muslims.

• US Special Forces In Syria 'Mistakenly' Bombed By Turkey.

• High Taxes Are Top Reason Illinoisans Want To Leave State.

• Libra Is Dead: eBay, Stripe, Visa And MasterCard All Abandon Facebook's Cryptocurrency.

• Global Stocks Soar Ahead Of Yet-To-Be-Written, "Almost Complete" Trade Deal "That Could Still Fail".

Business Insider:

• Wall Street giants Blackstone and Citadel have reportedly held talks about a massive deal to combine their powers.

• Baby boomers are the most prosperous generation in history. Here are 10 stocks millennials can buy to get in on the action, according to Bank of America. 

• These stocks could be the biggest winners if the US completes this phased trade deal with China. 

• Investors are flocking to money markets at the highest rate since the financial crisis. 

• Warren trolls Facebook(FB) election ad policy with a ‘false’ ad that says company endorsed Trump. 

• Blizzard reduces ban and gives back prize money to gamer it punished for backing Hong Kong protests.