Bull Radar

Style Outperformer:

• Small-Cap Growth +.7%
  

Sector Outperformers:

• 1) Alt Energy +2.8% 2) Healthcare Providers +1.9% 3) AI/Robotics +1.4%

Stocks Rising on Unusual Volume:

• QUBT, SKYT, SOUN, AAOI, ARQQ, WOR, XMTR, FORM, NTGR, ACHR, XPRO, CAMT, SEDG, JBL, OUST, AZTA, ENS, SNAP, AOSL, OKLO, RCKT, CLSK, RPD, BIRK, AMSC, BTDR, BNED, UPWK,  EVER, ONTO, CI, MESO, WK, PRAA, CVS, GFL, SMWB, TEVA, PLTR, ASO, DLO, HII, JBT, VFC, EBAY, GWRE, UBER, AI, UNH and TM
  

Stocks With Unusual Call Option Activity:

• 1) SKYT 2) DLO 3) GCI 4) CRVS 5) MNKD

Stocks With Most Positive News Mentions:

• 1) QUBT 2) VUZI 3) WOR 4) BIRK 5) JBL
  

Sector ETFs With Most Positive Money Flow:

• 1) XLF 2) FXO 3) XLV 4) XLE 5) SOXX
  

Charts:

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

Tomorrow's Earnings/Economic Releases of Note; Market Movers

Earnings of Note 
Company/Estimate 

Before the Open:

• (ACN)/3.42
• (KMX)/.62
• (CTAS)/1.01
• (CAG)/.67
• (DRI)/2.02
• (FDS)/4.28
• (LW)/1.01
• (PAYX)/1.12
  

After the Close: 

• (BB)/-.01
• (FDX)/4.02
• (NKE)/.63
  

Economic Releases

8:30 am EST

• Revised 3Q GDP readings.
• The Philly Fed Business Outlook Index for Dec. is estimated to rise to 2.8 versus -5.5 in Nov.
• Initial Jobless Claims for last week is estimated to fall to 230K versus 242K the prior week.
• Continuing Claims is estimated to rise to 1890K versus 1886K prior.
  

10:00 am EST

• The Leading Index for Nov. is estimated to fall -.1% versus a -.4% decline in Oct.
• Existing Home Sales for Nov. is estimated to rise to 4.09M versus 3.96M in Oct.
  

11:00 am EST

• The Kansas City Fed Manufacturing Activity Index for Dec. is estimated to rise to -1 versus -2 in Nov.
  

4:00 pm EST

• Net Long-Term TIC Flows for Oct.
  

Upcoming Splits

• (TSCO) 5-for-1

Other Potential Market Movers

• The BOJ meeting, weekly EIA natural gas inventory report, (AGCO) analyst meeting, (FDS) annual meeting, (GNRC) mgmt meeting with CL King and the (THO) annual meeting could also impact global trading tomorrow.

US Equity Market Hours

• 9:30 am - 4:00 pm EST

Mid-Day Market Internals

NYSE Composite Index:

• Volume Running +6.6% Above 100-Day Average 
• Nasdaq/NYSE Volume Ratio 19.4 +2.3
  
• 4 Sectors Declining, 7 Sectors Rising
• 51.5% of Issues Advancing, 46.2% Declining 
• TRIN/Arms .87 +22.5%
  
• Non-Block Money Flow +$6.1M
  
• 34 New 52-Week Highs, 71 New Lows
• 58.3% (+.3%) of Issues Above 200-day Moving Average
• Average 14-Day RSI 34.0 -6.0
  

Other:

• Bloomberg Global Risk-On/Risk-Off Index 68.4 +.2%
• Bloomberg Cyclicals/Defensives Index 254.8 +.2%
  
• Russell 1000: Growth/Value 22,102.8 +.04%
• CNN Fear & Greed Index 53.0 (NEUTRAL) -3.0
  
• 1-Day Vix 12.3 -7.7%
  
• Vix 15.2 -4.2%
  
• Total Put/Call .68 -15.0%

Wednesday Watch

Night Trading 

• Asian equity indices are -.25% to +.5% on average.

• Asia Ex-Japan Investment Grade CDS Index 72.75 +2.0 basis points.

• China Sovereign CDS 62.75 +1.0 basis point.
  
• China Iron Ore Spot 103.8 USD/Metric Tonne -.8%

• Bloomberg Emerging Markets Currency Index 37.3 -.03%.
• Bloomberg Global Risk-On/Risk Off Index 68.0 -.3%.
• Volatility Index(VIX) futures 17.1 +.6%.
• Euro Stoxx 50 futures -.02%

• S&P 500 futures -.09%.

• NASDAQ 100 futures -.02%.  

Morning Preview Links

BOTTOM LINE: Asian indices are mostly higher, boosted by technology 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 75% net long heading into the day.

Stocks Lower into Final Hour on US Policy-Induced Stagflation Fears, Profit-Taking, Technical Selling, Financial/Healthcare Sector Weakness

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 37.3 -.20%
• 3-Month T-Bill Yield 4.31% -2.0 basis points
  

• China Iron Ore Spot 103.9 USD/Metric Tonne -.6%
• Dutch TTF Nat Gas(European benchmark) 42.1 euros/megawatt-hour +4.4%

• Citi US Economic Surprise Index 9.0 -7.1 points
  

• Citi Eurozone Economic Surprise Index -9.9 -1.8 points

• Citi Emerging Markets Economic Surprise Index -2.9 +1.1 points
• S&P 500 Current Quarter EPS Growth Rate YoY(4 of 500 reporting) +9.7% unch.
  
• S&P 500 Blended Forward 12 Months Mean EPS Estimate 271.24 -.04:  Growth Rate +13.6% -.1 percentage point, P/E 22.3 -.1
  
• S&P 500 Current Year Estimated Profit Margin 12.55% -1.0 basis point
  
• NYSE FANG+ Current Quarter EPS Growth Rate YoY(0 of 10 reporting) n/a
  
• NYSE FANG+ Blended Forward 12 Months Mean EPS Estimate 386.10 +.07: Growth Rate +23.1% unch., P/E 35.4 -.1
  
• Bloomberg US Financial Conditions Index .87 -3.0 basis points
  
• Bloomberg Euro-Zone Financial Conditions Index .97 -1.0 basis point
  
• US Yield Curve 14.5 basis points (2s/10s) -.25 basis point
  
• US Atlanta Fed Q4 GDPNow Forecast +3.33% unch.
  
• US Recession Within 6 Months Probability(3M/18M Forward Yld Curve Spread) 26.5% -.4 percentage point
  

• Cleveland Fed Inflation Nowcast Core PCE YoY +2.97% unch.: CPI YoY +2.86% unch.
  
• 10-Year TIPS Spread 2.31 -2.0 basis points
  
• Highest target rate probability for Jan. 29th FOMC meeting: 79.9%(-3.9 percentage points) chance of 4.25%-4.5%. Highest target rate probability for March 19th meeting: 49.4%(-2.6 percentage points) chance of 4.0%-4.25%. (current target rate is 4.5-4.75%)
  

Overseas Futures:

• Nikkei 225 Futures: Indicating +51 open in Japan 
• China A50 Futures: Indicating +40 open in China

• DAX Futures: Indicating +12 open in Germany

Portfolio:

• Lower:  On losses in my tech/industrial/financial/consumer discretionary/utility sector longs
  

• Disclosed Trades: Added to my (IWM)/(QQQ) hedges
  

• Market Exposure: Moved to 75% Net Long
  

Tomorrow's Earnings/Economic Releases of Note; Market Movers

Earnings of Note 
Company/Estimate 

Before the Open:

• (ABM)/.87
• (BIRK)/.26
• (GIS)/1.22
• (JBL)/1.88
• (TTC)/.95
  

After the Close: 

• (LEN)/4.15
• (MU)/1.76
• (SCS)/.22
• (WS)/.56
  

Economic Releases

8:30 am EST

• Housing Starts for Nov. is estimated to rise to 1345K versus 1311K in Oct.
• Building Permits for Nov. is estimated to fall to 1419K versus 1430K in Oct.
• The Current Account Deficit for 3Q is estimated to widen to -$287.1B versus -$266.8B in 2Q.
  

10:30 am EST

• Bloomberg consensus estimates call for a weekly crude oil inventory decline of -1,597,290 barrels versus a -1,425,000 barrel decline the prior week. Gasoline supplies are estimated to rise by +1,439,860 barrels versus a +5,086,000 barrel gain the prior week. Distillate inventories are estimated to rise by +1,002,140 barrels versus a +3,235,000 barrel gain the prior week. Finally, Refinery Utilization is estimated to fall by -.07% versus a -.9% decline prior.
  

2:00 pm EST

• The FOMC is expected to lower the benchmark Fed Funds rate to 4.25-4.5%.
  

Upcoming Splits

• (TSCO) 5-for-1

Other Potential Market Movers

• The FOMC press conference, Atlanta Fed GDPNow 4Q update, weekly MBA Mortgage Applications report and the (AZO) annual meeting could also impact global trading tomorrow.

US Equity Market Hours

• 9:30 am - 4:00 pm EST