Morning Market Internals

NYSE Composite Index:

• Volume Running -13.6% Below 100-Day Average 
• 6 Sectors Rising, 5 Sectors Declining
• 51.0% of Issues Advancing, 45.8% Declining
• 169 New 52-Week Highs, 2 New Lows
• 85.9% of Issues Above 200-day Moving Average
• Average 14-Day RSI 53.8% 
• Bloomberg Global Risk-On/Risk-Off Index 2,633.0 +79.0 points
• Vix 20.6 -3.3%
• Total Put/Call .80 +11.1%
• TRIN/Arms .70 -45.7%

Friday Watch

Night Trading 

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

• Asia Ex-Japan Investment Grade CDS Index 57.5 -.25 basis point.

• China Sovereign CDS 29.5 +.25 basis point.

• Bloomberg Emerging Markets Currency Index 63.02 -.02%.
• Bloomberg Global Risk-On/Risk Off Index 2,542.0 -12.0 points.
• Volatility Index(VIX) futures 26.90 +.78%.
• FTSE 100 futures -.02%.

• S&P 500 futures -.11%.

• NASDAQ 100 futures -.05%.

Morning Preview Links

Earnings of Note 
Company/Estimate 

 

Before the Open: 

• (AXL)/.26
• (D)/.84
• (MCO)/1.94
• (NWL)/.48
  

After the Close:

• None of note
  

Economic Releases

8:30 am EST

• Univ. of Mich. Consumer Sentiment for Feb. is estimated to rise to 80.8 versus 79.0 in Jan.
  

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The (AZPN) investor day and the (JNPR) investor day could also impact trading today.

Market Hours
Normal:

• 9:30 am - 4:00 pm EST
  

BOTTOM LINE: Asian indices are mostly lower, weighed down by technology and industrial shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing mixed. The Portfolio is 75% net long heading into the day.

Stocks Modestly Lower into Final Hour on Valuation Worries, Oil Decline, Technical Selling, Energy/Telecom Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Mixed
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 22.2 +.8%
• Bloomberg Global Risk On/Risk Off Index 2,485.0 +7.0 points

• Euro/Yen Carry Return Index 131.43 +.27%

• Emerging Markets Currency Volatility(VXY) 9.7 -.82%

• S&P 500 Implied Correlation 52.3 -1.5%

• ISE Sentiment Index 132.0 -5.0 points
  

• Total Put/Call .70 -6.7%

• NYSE Arms 1.34 +46.2%

Credit Investor Angst:

• North American Investment Grade CDS Index 50.41 +.06%
  

• US Energy High-Yield OAS 503.56 -.47%

• European Financial Sector CDS Index 56.36 -1.95%

• Italian/German 10Y Yld Spread 91.5 -2.5 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 57.48 -.26%
  

• Emerging Market CDS Index 159.25 -.93%
  

• iBoxx Offshore RMB China Corporate High Yield Index 185.0 -.16%

• 2-Year Swap Spread 9.25 +.25 basis point

• TED Spread 16.75 +.75 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -.25 -.25 basis point
  
• MBS  5/10 Treasury Spread  66.0 +.25 basis point
  
• IHS Markit CMBX BBB- 6 75.75 unch.

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 63.02 +.23%
• 3-Month T-Bill Yield .04% +1.0 basis point
  

• Yield Curve 104.0 unch.
  

• China Iron Ore Spot 161.90 USD/Metric Tonne +.37%

• Citi US Economic Surprise Index 60.20 -1.9 points

• Citi Eurozone Economic Surprise Index 139.3 -2.9 points
  

• Citi Emerging Markets Economic Surprise Index 61.0 +1.4 points

• 10-Year TIPS Spread 2.20 unch.
• 100.0% chance of no change at April 28th meeting, 100.0% chance of no change at June 16th meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -157 open in Japan 
• China A50 Futures: Indicating +6 open in China

• DAX Futures: Indicating -26 open in Germany

Portfolio:

• Slightly Lower: On losses in my tech/medical sector longs
  

• Disclosed Trades: None

• Market Exposure: 75% Net Long
  

Bear Radar

 Style Underperformer:

• Small-Cap Value -.4%

Sector Underperformers:

• 1) Oil Service -3.1% 2) Gaming -2.5% 3) Energy -1.8%

Stocks Falling on Unusual Volume: 

• ARCC, LESL, VIRT, AKAM, SNPR, IRDM, DCRB, XPO, PRCH, ELY, POOL, TSN, ASPN, CARA, YETI, CVLB, R, ATUS, SAVE, TRUP, ARYA, TAP, QLYS, GRWG, CLVR, ATOM, TLRY and NUS
  

Stocks With Unusual Put Option Activity:

• 1) TAP 2) CLR 3) XLY 4) NLY 5) K
  

Stocks With Most Negative News Mentions:

• 1) QLYS 2) CLSK 3) VMW 4) TCDA 5) JFU
  

Charts:

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

Bull Radar

Style Outperformer:

• Mid-Cap Growth +.5%

Sector Outperformers:

• 1) Semis +3.1% 2) Disk Drives +1.8% 3) Homebuilding +1.4%

Stocks Rising on Unusual Volume:

• MVIS, GNMK, QUOT, DMTK, SSTK, VNDA, AMKR, AOSL, SONO, KLDO, ANAB, PI, ZG, Z, GNRC, OSH, CURI, CRDF, OCGN, OPCH, KALV, MTEM, TPX, PACB, VIVO, EGAN, ZNGA, OPEN, EXPI, ECOM, AXON, TCS, REKR, PINS, TGI, MOH, KHC, FROG, SKY, PYPL, AVID, VRNS, MSTR, CDAY, VSTO, XONE, CMTL, SPNV
  

Stocks With Unusual Call Option Activity:

• 1) BK 2) INFI 3) AGTC 4) Z 5) FOXA

Stocks With Most Positive News Mentions:

• 1) QUOT 2) RIOT 3) SONO 4) TPX 5) ZG
  

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running -13.4% Below 100-Day Average 
• 4 Sectors Rising, 7 Sectors Declining
• 50.5% of Issues Advancing, 46.8% Declining
• 195 New 52-Week Highs, 3 New Lows
• 86.3% of Issues Above 200-day Moving Average
• Average 14-Day RSI 54.1% 
• Bloomberg Global Risk-On/Risk-Off Index 2,508.0 +26.0 points
• Vix 21.9 -.6%
• Total Put/Call .56 -25.3%
• TRIN/Arms 1.33 +42.9%