Bear Radar

Style Underperformer:

• Large-Cap Growth -.2%

Sector Underperformers:

• 1) Internet -1.3% 2) Retail -1.3% 3) Papers -1.1%

Stocks Falling on Unusual Volume: 

• PTC, EHC, WGO, ARLP, TREX, PSNL, CR, W, GVA, IPGP, BTU, BYND and GRUB

Stocks With Unusual Put Option Activity:

• 1) SWN 2) GRUB 3) W 4) MDLZ 5) FIZZ

Stocks With Most Negative News Mentions:

• 1) GRUB 2) OSTK 3) BYND 4) TEUM 5) AIG

Charts:

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

Bull Radar

Style Outperformer:

• Small-Cap Growth +.7%

Sector Outperformers:

• 1) Oil Service +3.0% 2) Healthcare Providers +1.7% 3) Medical Equipment +1.4%

Stocks Rising on Unusual Volume:

• AMKR, TXRH, TALO, NOV, MRTX, VRNS, XRX, SHOO, NEO, LEG, VSH, SSD, CNXM, HCA, ZBRA, AXNX, INCY, THC, PRFT, GM, TBI, WDR, CAKE, BRO, K, MRK, CURO, CVA, ROCK and INST

Stocks With Unusual Call Option Activity:

• 1) SWN 2) GRUB 3) HCA 4) W 5) XPO

Stocks With Most Positive News Mentions:

• 1) TXRH 2) SHOO 3) MRTX 4) MRK 5) HCA

Charts:

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

Mid-Day Market Internals

NYSE Composite Index:

• Volume Running +10.8% Above 100-Day Average
• 8 Sectors Rising, 3 Sectors Declining
• 55.8% of Issues Advancing, 41.2% Declining
• 127 New 52-Week Highs, 34 New Lows
• 57.1% of Issues Above 200-day Moving Average
• Average 14-Day RSI 49.8%
• Vix 13.2 +.6%
• Total Put/Call .95 +17.3%
• TRIN/Arms .88 -12.9%

Tuesday Watch

Evening Headlines

Bloomberg:

• Johnson Bid for Election Defeated in Parliament: Brexit Update.

• Cracks in China Bonds Have Traders Watching $35 Billion Maturity.

• China Tech, at Center of Trade War, Is Best Place to Be in Bonds.

• Stocks Gain in Asia After U.S. Record; Bonds Drop. Stocks in Asia advanced on Tuesday after U.S. equities climbed to a record, propelled by optimism for a trade deal, encouraging earnings and expectations for another Federal Reserve interest-rate cut. Ten-year Japanese government-bond yields hit the highest in more than two months, following gains in Treasury yields overnight. Equity benchmarks rose in Japan and South Korea, with more modest gains in Australia. U.S. futures were flat after the S&P 500 Index took out its July record high, with President Donald Trump saying the U.S. is ahead of schedule to sign part of a China trade deal. Japan’s Topix index rose 0.7% as of 9:05 a.m. in Tokyo. Australia’s S&P/ASX 200 Index rose 0.2%. South Korea’s Kospi index added 0.5%. Hong Kong’s Hang Seng Index contracts rose 0.6% earlier. S&P 500 futures were flat. The S&P 500 Index advanced 0.6%.

• Five Things You Need to Know to Start Your Day.   

• Stretched Americans, Trade War 2020, Singapore Strains: Eco Day.

• Rubio Plans Bill to Block Federal Pensions Investing in China.

• Paul Tudor Jones Warns of Stocks Tanking 25% on Warren Victory.

Wall Street Journal:

• Islamic State Spokesman Killed in U.S. Airstrike.

• Pelosi Concedes on Inquiry Vote.

• Tens of Thousands Flee Los Angeles Blaze.

• Johnson Loses Bid for Early Election but Takes New Tack to Get One.

• S&P 500 Rises to a Record on Tech Rally.

Fox News:

• GOP hits back at House Dems for announcing impeachment inquiry vote: 'like un-ringing a bell'.

CNBC:

• Mirati drug shrinks tumors in some cancer patients in early-stage trial.

• After new record, these are the stocks Wall Street thinks will lead the next market leg higher.

• US considers extending tariff exclusions on Chinese imports.

• House Democrats set vote on impeachment procedure amid Republican criticism.

• Juul plans to cut about 500 jobs by the end of the year, report says.

• Beyond Meat turns its first profit, topping estimates, but shares sink.

• Jim Cramer says performances of these luxury brand names show the ‘consumer’s in great shape’.

• Alphabet(GOOG) tumbles on earnings, but traders see a buy.

• Stocks making the biggest moves after hours: Beyond Meat, GrubHub, Alphabet and more.

Zero Hedge:   

• 'We Will Not Legitimize The Sham Impeachment': House Minority Leader Responds To Pelosi Announcement.

• NYC Secretly Shipping Homeless People To Over 350 Cities Including Honolulu, Houston.

• Hillary Will Run In 2020 Because "She Feels She Was Put On Earth To Be President," Clinton Ally Says.

• 7 In 10 Millennials Say They Will Likely Vote Socialist.

• We Now Have Mass Public Unrest In France, Spain, Algeria, Iraq, Lebanon, Egypt, Hong Kong, Venezuela, Chile, Ecuador And Bolivia.

• EU Approves Brexit Delay Until Jan. 31 As Johnson Hopes To Trigger General Election.

• Stocks Squeeze To Record High On Trade & Brexit Hope (Again).

Night Trading 

• Asian equity indices are +.25% to +.75% on average.

• Asia Ex-Japan Investment Grade CDS Index 66.5 -1.0 basis point.

• China Sovereign CDS 38.25 -.5 basis point.

• Bloomberg Emerging Markets Currency Index  66.38 +.01%.

• FTSE 100 futures +.25%.

• S&P 500 futures +.08%.

• NASDAQ 100 futures +.24%.

Morning Preview Links

Earnings of Note 
Company/Estimate

Before the Open:

• (AGCO)/.80

• (AN)/1.13

• (BP)/.09

• (COP)/.74

• (GLW)/.40

• (CMI)/3.84

• (DBD)/.24

• (ETN)/1.51

• (GM)/1.38

• (HCA)/2.13

• (IR)/1.91

• (K)/.91

• (MLM)/3.49

• (MA)/2.01

• (MRK)/1.23

• (PFE)/.61

• (R)/1.49

• (SHOP)/.10

• (WAT)/2.13

• (WH)/1.00

After the Close:

• (AMD)/.18

• (ALL)/2.57

• (AMGN)/3.53

• (CHRW)/1.14

• (CAKE)/.55

• (CB)/2.61

• (TCS)/.09

• (EA)/.86

• (MXIM)/.49

• (MDLZ)/.60

• (PSA)/2.75

• (SYK)/1.90

• (YUMC)/.54

• (ZEN)/.06

Economic Releases
9:00 am EST

• The S&P CoreLogic CS 20-City MoM for Aug. is estimated to fall -.1% versus a +.02% gain in July.
  

10:00 am EST

• The Conference Board Consumer Confidence Index for Oct. is estimated to rise to 128.0 versus 125.1 in Sept. 

• Pending Home Sales MoM for Sept. is estimated to rise +.7% versus a +1.6% gain in Aug.
  

Upcoming Splits

• None of note

Other Potential Market Movers

• The Japan Retail Trade report, US weekly retail sales reports, loT Solutions World Congress and the (BA) CEO's testimony to Senate 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 mixed and to rally into the afternoon, finishing modestly higher. The Portfolio is 100% net long heading into the day.

Stocks Rising into Final Hour on Earnings Optimism, China Trade Deal Hopes, Technical Buying, Tech/Biotech Sector Strength

 Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Around Average

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 13.0 +3.0%

• Euro/Yen Carry Return Index 125.60 +.5%

• Emerging Markets Currency Volatility(VXY) 7.2 +.14%

• S&P 500 Implied Correlation 30.0 -1.1%

• ISE Sentiment Index 105.0 +29.0
  

• Total Put/Call .76 -8.4%

• NYSE Arms 1.05 +52.2%

Credit Investor Angst:

• North American Investment Grade CDS Index 52.78 -1.79%
  

• America Energy Sector High-Yield CDS Index 502.0 +1.12%

• European Financial Sector CDS Index 57.52 -.46%

• Italian/German 10Y Yld Spread 133.75 +2.25 basis points
  

• Asia Ex-Japan Investment Grade CDS Index 67.20 -1.62%
  

• Emerging Market CDS Index 191.27 +.09%
  

• iBoxx Offshore RMB China Corporate High Yield Index 167.08 +.11%

• 2-Year Swap Spread 3.0 +.25 basis point

• TED Spread 26.75 -.75 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -22.75 -.25 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 66.41 +.28%
• 3-Month T-Bill Yield 1.64% -2.0 basis points

• Yield Curve .18 unch.

• China Iron Ore Spot 81.50 USD/Metric Tonne -.29%

• Citi US Economic Surprise Index 3.0 -1.9 points

• Citi Eurozone Economic Surprise Index -52.50 +3.6 points

• Citi Emerging Markets Economic Surprise Index -16.60 +2.9 basis points

• 10-Year TIPS Spread 1.65 unch.
• 94.0% chance of Fed rate cut at Dec. 11th meeting, 95.7% chance of cut at Jan. 29th meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +118 open in Japan 
• China A50 Futures: Indicating +60 open in China

• DAX Futures: Indicating +10 open in Germany

Portfolio:

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

• Disclosed Trades: None

• Market Exposure: 100% Net Long