Bear Radar

Style Underperformer:

• Small-Cap Growth unch.

Sector Underperformers:

• 1) Steel -1.9% 2) Disk Drives -1.6% 3) Gaming -1.4%

Stocks Falling on Unusual Volume: 

• CHTR, LBRDK, FLEX, CAMP, LBRDA, CYOU, CNE, ATUS, INT, ATHN, FII, NATI, LOGM, X, ALV, REGN, WDC, MRCY, IMPV, AQ and DRQ

Stocks With Unusual Put Option Activity:

• 1) CBL 2) BYD 3) SYMC 4) HSY 5) CL

Stocks With Most Negative News Mentions:

• 1) FLEX 2) FORM 3) GNC 4) ATNI 5) SYMC

Charts:

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

Bull Radar

Style Outperformer:

• Mid-Cap Value +.2%

Sector Outperformers:

• 1) REITs +1.6% 2) Airlines +1.5% 3) Healthcare Providers +1.3%

Stocks Rising on Unusual Volume:

• BOOM, TZOO, PAR, ENVA, CUK, GDI, EHTH, KN, LKQ, BJRI, AZUL, MNTA, EXAS, CHGG, ELLI, SIVB, BIDU, BGG, BMA, AMZN, EXPE, ELY, FSLR, ACAD, SGEN, ATRC, SKYW, AKRX, FSLR, COLM, HZO, BANC and CLGX

Stocks With Unusual Call Option Activity:

• 1) FLEX 2) FDC 3) S 4) EA 5) EXPE

Stocks With Most Positive News Mentions:

• 1) EXPE 2) ACRX 3) FSLR 4) BIDU 5) AMZN

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running +3.9% Above 100-Day Average
• 7 Sectors Rising, 4 Sectors Declining
• 48.7% of Issues Advancing, 47.3% Declining
• 46 New 52-Week Highs, 21 New Lows
• 43.0% of Issues Above 200-day Moving Average
• Average 14-Day RSI 48.5%
• Vix 15.9 -1.9%
• Total Put/Call .85 +2.4%
• TRIN/Arms 1.02 -5.1%

Friday Watch

Night Trading 

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

• Asia Ex-Japan Investment Grade CDS Index 75.0 -1.25 basis point. 

• Asia Pacific Sovereign CDS Index 12.5 -.25 basis point

• Bloomberg Emerging Markets Currency Index 73.41 unch.

• FTSE 100 futures +.20%.

• S&P 500 futures -.14%.

• NASDAQ 100 futures +.21%.

Morning Preview Links

Earnings of Note
Company/Estimate

• (ALV)/1.83

• (B)/.68

• (CVX)/1.51

• (CL)/.73

• (D)/1.05

• (XOM)/1.12

• (HTLD)/.17

• (LYB)/2.77

• (PSX)/.89

• (COL)/1.76

• (SPG)/2.83

• (TEN)/1.69

• (VFC)/.65

• (WY)/.34

Economic Releases

8:30 am EST

• The 1Q Employment Cost Index is estimated to rise +.7% versus a +.6% gain in 4Q.

• Advance 1Q GDP is estimated to rise +2.0% versus a +2.9% gain in 4Q. 

• Advance 1Q Personal Consumption is estimated to rise +1.1% versus a +4.0% gain in 4Q. 

• Advance 1Q GDP Price Index is estimated to rise +2.2% versus a +2.3% gain in 4Q.

• Advance 1Q Core PCE QoQ is estimated to rise +2.6% versus a +1.9 gain in 4Q.

10:00 am EST

• Final Univ. of Mich. Consumer Sentiment for April is estimated to rise to 98.0 versus a prior estimate of 97.8.
  

Upcoming Splits

• None of note

Other Potential Market Movers

• The Australia PPI report, China Industrial Profits report, Eurozone GDP report, Eurozone Services PMI report and the North/South Korean Summit could also impact trading today.

BOTTOM LINE:  Asian indices are higher, boosted by industrial and technology 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 Surging into Close on Lower Long-Term Rates, Earnings Optimism, Less European/Emerging Markets/US High-Yield Debt Angst, Tech/Biotech Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Above Average

• Market Leading Stocks: Underperforming
  

Equity Investor Angst:

• Volatility(VIX) 16.51 -7.5%

• Euro/Yen Carry Return Index 137.79 -.57%

• Emerging Markets Currency Volatility(VXY) 8.56 -.7%

• S&P 500 Implied Correlation 40.7 +5.8%

• ISE Sentiment Index 109.0 +19.8%
  

• Total Put/Call .83 -13.5%

• NYSE Arms 1.07 +34.24%

Credit Investor Angst:

• North American Investment Grade CDS Index 60.62 -1.83%
  

• America Energy Sector High-Yield CDS Index 409.0 -1.17%

• European Financial Sector CDS Index 55.99 -2.51%

• Italian/German 10Y Yld Spread 115.5 +1.25 basis points
  

• Asia Pacific Sovereign Debt CDS Index 12.37 -2.79%

• Emerging Market CDS Index 142.45 -.81%
  

• iBoxx Offshore RMB China Corporate High Yield Index 149.27 +.02%

• 2-Year Swap Spread 26.0 -1.25 basis points

• TED Spread 53.25 +2.25 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -10.25 -2.5 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 73.43 +.01%
• 3-Month T-Bill Yield 1.81% -4.0 basis points
  

• Yield Curve 50.0 -4.0 basis points

• China Iron Ore Spot 67.20 USD/Metric Tonne +1.01%

• Citi US Economic Surprise Index 39.30 -2.4 points

• Citi Eurozone Economic Surprise Index -84.40 +.2 point

• Citi Emerging Markets Economic Surprise Index 9.1 +.4 point

• 10-Year TIPS Spread 2.18 unch.
  
• 92.0% chance of Fed rate hike at June 13 meeting, 92.5% chance at August 1 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +111  open in Japan 
• China A50 Futures: Indicating +116 open in China

• DAX Futures: Indicating +63 open in Germany

Portfolio: 

• Higher: On gains in my tech/industrial/retail/medical/biotech sector longs

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges and some of my emerging market shorts

• Market Exposure: Moved to 75% Net Long

Morning Market Internals

NYSE Composite Index:

• Volume Running +18.7% Above 100-Day Average
• 8 Sectors Rising, 3 Sectors Declining
• 63.2% of Issues Advancing, 32.7% Declining
• 31 New 52-Week Highs, 41 New Lows
• 41.7% of Issues Above 200-day Moving Average
• Average 14-Day RSI 46.9%
• Vix 17.5 -2.2%
• Total Put/Call .83 -13.5%
• TRIN/Arms 1.18 +51.8%