Mid-Day Market Internals

NYSE Composite Index:

• Volume Running -.1% Below 100-Day Average 
• 8 Sectors Rising, 3 Sectors Declining
• 52.6% of Issues Advancing, 42.7% Declining
• 323 New 52-Week Highs, 4 New Lows
• 88.3% of Issues Above 200-day Moving Average
• Average 14-Day RSI 54.6%
  
• Bloomberg Global Risk-On/Risk-Off Index 3,323.0 -89.0 points
• Vix 17.2 +.7%
• Total Put/Call .61 -6.2%
• TRIN/Arms .91 -32.6%

Wednesday Watch

Night Trading 

• Asian equity indices are -.25%. to +.50% on average.

• Asia Ex-Japan Investment Grade CDS Index 83.25 unch.

• China Sovereign CDS 36.5 unch.
  

• Bloomberg Emerging Markets Currency Index 61.71 +.01%.
• Bloomberg Global Risk-On/Risk Off Index 3,372.0 -37.0 points.
• Volatility Index(VIX) futures 20.20 -.16%.
• FTSE 100 futures +.04%.

• S&P 500 futures +.04%.

• NASDAQ 100 futures +.12%. 

Morning Preview Links

Earnings of Note 
Company/Estimate 

 

Before the Open: 

• (BF/B)/.33
• (CPB)/.66
• (UNFI)/.92
• (VRA)/-.19
  

After the Close:

• (GME)/-.84
• (OXM)/1.06
• (RH)/4.12
• (VRNT)/.36
  

Economic Releases

10:00 am EST

• Wholesale Trade Sales MoM for April.

10:30 am EST

• Bloomberg consensus estimates call for a weekly crude oil inventory decline of -2,892,000 barrels versus a -5,079,000 barrel decline the prior week. Gasoline supplies are estimated to rise by +820,560 barrels versus a +1,499,000 barrel gain the prior week. Distillate inventories are estimated to rise by +1,450,780 barrels versus a +3,720,000 barrel gain the prior week. Finally, Refinery Utilization is estimated to rise by +.61% versus a +1.7% gain prior.

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The German Balance of Trade report, $38B 10Y T-Note auction, weekly MBA Mortgage Applications report, Deutsche Bank Basic Materials Conference and the BofA Tech Conference could also impact global trading today.

US Equity Market Hours

• 9:30 am - 4:00 pm EST
  

BOTTOM LINE: Asian indices are mostly higher, boosted by commodity and industrial 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 Reversing Higher into Final Hour on Lower Long-Term Rates, Oil Gain, Short-Covering, Commodity/Consumer Discretionary Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Mixed
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 16.7 +1.6%
• Bloomberg Global Risk On/Risk Off Index 3,413.0 -110.0 points

• Euro/Yen Carry Return Index 137.8 +.12%

• Emerging Markets Currency Volatility(VXY) 8.6 -1.3%

• S&P 500 Implied Correlation 48.0 -4.1%

• ISE Sentiment Index 137.0  +18.0 points
  

• Total Put/Call .63 -7.4%

• NYSE Arms 1.4 +8.7%

Credit Investor Angst:

• North American Investment Grade CDS Index 50.31 +.08%
  

• US Energy High-Yield OAS 413.03 -.44%

• European Financial Sector CDS Index 57.24 -.30%

• Italian/German 10Y Yld Spread 109.0 -2.0 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 83.19 -.66%
  

• Emerging Market CDS Index 153.57 -2.3%
  

• China Corp. High-Yield Bond USD ETF(KCCB) 39.37 +.38%

• 2-Year Swap Spread 7.0 -.25 basis point

• TED Spread 11.75 +.25 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -3.0 -.25 basis point
  
• MBS  5/10 Treasury Spread  68.0 +1.0 basis point
  
• IHS Markit CMBX BBB- 6 74.5 +.25 basis point
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 61.70 +.04%
• 3-Month T-Bill Yield .02% unch.
  

• Yield Curve 141.0 -1.0 basis point
  

• China Iron Ore Spot 203.0 USD/Metric Tonne +6.6%

• Citi US Economic Surprise Index 13.6 +.6 point

• Citi Eurozone Economic Surprise Index 130.5 -9.8 points
  

• Citi Emerging Markets Economic Surprise Index 63.10 +3.0 points

• 10-Year TIPS Spread 2.38 -3.0 basis points
• 95.0% chance of no change at Sept. 22nd meeting, 95.0% chance of no change at Nov. 3rd meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +51 open in Japan 
• China A50 Futures: Indicating -65 open in China

• DAX Futures: Indicating +33 open in Germany

Portfolio:

• Slightly Higher: On gains in my tech/industrial/commodity sector longs
  

• Disclosed Trades: None
  

• Market Exposure: 100% Net Long
  

Bear Radar

 Style Underperformer:

• Large-Cap Value +.1%

Sector Underperformers:

• 1) Gold & Silver -1.0% 2) Paper -1.0% 3) Utilities -.7%

Stocks Falling on Unusual Volume: 

• HARP, REVG, ATHA, KDP, CMS, LESL, DM, COUP, LBRT, ACRS and HOOK
  

Stocks With Unusual Put Option Activity:

• 1) COUP 2) SFIX 3) EWJ 4) APO 5) CLNE
  

Stocks With Most Negative News Mentions:

• 1) CAN 2) TR 3) HARP 4) SAIC 5) HZAC
  

Charts:

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

Bull Radar

Style Outperformer:

• Small-Cap Value +1.1%

Sector Outperformers:

• 1) Steel +2.6% 2) Alt Energy +2.4% 3) Retail +1.7%

Stocks Rising on Unusual Volume:

• CLOV, GOEV, VLDR, WKHS, WEN, NAPA, FUV, RIDE, SFIX, HYLN, EXPI, APPN, AEVA, GPRO, SLQT, BBBY, HA, MILE, PLAY, RDNT, MP, GNRC, PETS, ROOT, GME, SPCE, REV, FSLY, EAT, HOL, OPEN, NKLA, RHP, AI, FCEL, CSPR, DSP, MRVL, SVC, CLNC, SHAK, BIG, SYNG, ETWO, MSP, PZZA, OSUR, NESR, ASAN and ASO
  

Stocks With Unusual Call Option Activity:

• 1) WEN 2) DISCK 3) COUP 4) SFIX 5) BIIB

Stocks With Most Positive News Mentions:

• 1) SFIX 2) WEN 3) CLOV 4) NEXT 5) TELL
  

Charts:

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

Mid-Day Market Internals

NYSE Composite Index:

• Volume Running -.4% Below 100-Day Average 
• 7 Sectors Rising, 4 Sectors Declining
• 59.6% of Issues Advancing, 35.9% Declining
• 328 New 52-Week Highs, 9 New Lows
• 88.8% of Issues Above 200-day Moving Average
• Average 14-Day RSI 53.5%
  
• Bloomberg Global Risk-On/Risk-Off Index 3,429.0 -95.0 points
• Vix 16.5 +.7%
• Total Put/Call .64 -5.9%
• TRIN/Arms 1.28 +.8%