Bear Radar

Style Underperformer:

• Mid-Cap Growth -1.0%

Sector Underperformers:

• 1) Homebuilding -2.0% 2) Alt Energy -1.8% 3) Education -1.6%

Stocks Falling on Unusual Volume: 

• TGTX, JBLU, VLDR, PEN, SPCE, MOS, APXT, MAS, FBHS, HYLN, FOUR, GPS, FMTX, ZS, HCAC, TNDM, VRM, BCOV, MCRB, ACEL, SAGE, BEAT, FSR, SYNH, RMG, ALLK, SWAV, AQUA, RIDE, OM, BOX, MEG, CRM, APPS, GMHI, UPLD, CVNA, CRNC, ACCD, ZI, MRSN, ROOT, RETA, SQZ, ALT, CRSR, PLTR, IRTC and WKHS
  

Stocks With Unusual Put Option Activity:

• 1) CLVS 2) XME 3) CRM 4) NTAP 5) OKTA
  

Stocks With Most Negative News Mentions:

• 1) PLTR 2) OVID 3) CRSR 4) LRN 5) BKD
  

Charts:

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

Bull Radar

Style Outperformer:

• Large-Cap Value +.2%

Sector Outperformers:

• 1) Oil Service +4.2% 2) Energy +4.0% 3) Disk Drives +1.8%

Stocks Rising on Unusual Volume:

• CPE, PDCO, NTAP, ACIW, VNDA, SI, NTLA, AMBA, RNG, AIV, MRNA and PI
  

Stocks With Unusual Call Option Activity:

• 1) NTAP 2) QEP 3) CEMI 4) CRM 5) AAP

Stocks With Most Positive News Mentions:

• 1) NTAP 2) ENDP 3) DVN 4) XOM 5) KSS
  

Charts:

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

Mid-Day Market Internals

 NYSE Composite Index:

• Volume Running +24.0% Above 100-Day Average
• 4 Sectors Rising, 7 Sectors Declining
• 50.8% of Issues Advancing, 46.4% Declining
• 79 New 52-Week Highs, 4 New Lows
• 83.7% of Issues Above 200-day Moving Average
• Average 14-Day RSI 55.9% 
• Bloomberg Global Risk-On/Risk-Off Index 1,517.0 +73.0 points
• Vix 20.6 -.6%
• Total Put/Call .62 -4.6%
• TRIN/Arms .58 -45.8%

Wednesday Watch

Night Trading 

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

• Asia Ex-Japan Investment Grade CDS Index 58.0 -2.0 basis points.

• China Sovereign CDS 29.25 -1.25 basis points.

• Bloomberg Emerging Markets Currency Index 61.64 -.02%.
• Bloomberg Global Risk-On/Risk Off Index 1,464.0 +20.0 points.
• Volatility Index(VIX) futures 24.51 +.35%
• FTSE 100 futures -.41%.

• S&P 500 futures -.32%.

• NASDAQ 100 futures -.23%.

Morning Preview Links

Earnings of Note 
Company/Estimate 

 

Before the Open: 

• (PDCO)/.39
• (RY)/2.07
  

After the Close:

• (CMTL)/.09
• (CRWD)/.00
• (FIVE)/.19
• (GES)/.05
• (OKTA)/-.01
• (PVH)/.18
• (SMTC)/.46
• (SNOW)-.26
• (SPLK)/.09
• (SNPS)/1.57
• (VRNT)/.79
• (ZS)/.06
  

Economic Releases 

8:15 am EST

• The ADP Employment Change for Nov. is estimated to rise to 430K versus 365K in Oct.

10:30 am EST:

• Bloomberg consensus estimates call for a weekly crude oil inventory decline of -1,900,000 barrels versus a -754,000 barrel decline the prior week. Gasoline supplies are estimated to rise by +1,554,820 barrels versus a +2,180,000 barrel gain the prior week. Distillate inventories are estimated to fall by -1,092,090 barrels versus a -1,441,000 barrel decline the prior week. Finally, Refinery Utilization is estimated to rise by +.63% versus a +1.3% gain prior.
  

2:00 pm EST

• US Fed Beige Book release. 

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The Treasury's Mnuchin/Fed Chairman Powell testifying to House, Fed's Quarles speaking, Eurozone Unemployment Rate, weekly MBA Mortgage Applications report, Credit Suisse Industrials Conference and the (COHU) investor conference could also impact trading today.

Market Hours
Normal:

• 9:30 am - 4:00 pm EST
  

BOTTOM LINE: Asian indices are mostly higher, boosted by technology and consumer shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing mixed. The Portfolio is 50% net long heading into the day.

Stocks Surging into Final Hour on Stimulus Hopes, Vaccine Optimism, US Dollar Weakness, Financial/Commodity Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Higher
  

• Sector Performance: Almost Every Sector Rising
  

• Volume: Above Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 20.3 -1.2%
• Bloomberg Global Risk On/Risk Off Index 1,469.0 +144.0 points

• Euro/Yen Carry Return Index 130.19 +1.1%

• Emerging Markets Currency Volatility(VXY) 10.1 +.1%

• S&P 500 Implied Correlation 47.0 -1.2%

• ISE Sentiment Index 133.0 +12.0 points
  

• Total Put/Call .58 -26.6%

• NYSE Arms 1.05 -36.4%

Credit Investor Angst:

• North American Investment Grade CDS Index 49.05 -2.62%
  

• US Energy High-Yield OAS 667.41 -1.32%

• European Financial Sector CDS Index 57.22 -5.65%

• Italian/German 10Y Yld Spread 120.0 unch.
  

• Asia Ex-Japan Investment Grade CDS Index 58.94 -1.76%
  

• Emerging Market CDS Index 161.53 -1.92%
  

• iBoxx Offshore RMB China Corporate High Yield Index 181.25 +.13%

• 2-Year Swap Spread 7.0 -1.25 basis points

• TED Spread 14.75 -.5 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -21.25 -.25 basis point
  
• MBS  5/10 Treasury Spread  69.5 -3.25 basis points
  
• IHS Markit CMBX BBB- 6 71.25 unch.

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 61.21 +.73%
• 3-Month T-Bill Yield .08% unch.

• Yield Curve 69.75 +1.0 basis point
  

• China Iron Ore Spot 127.96 USD/Metric Tonne +.58%

• Citi US Economic Surprise Index 75.30 -2.5 points

• Citi Eurozone Economic Surprise Index 126.8 +3.1 points
  

• Citi Emerging Markets Economic Surprise Index 66.9 +1.8 points

• 10-Year TIPS Spread 1.82 +4.0 basis points
• 100.0% chance of no change at Jan. 27th meeting, 100.0% chance of no change at March 17th meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +118 open in Japan 
• China A50 Futures: Indicating +21 open in China

• DAX Futures: Indicating +3 open in Germany

Portfolio:

• Higher: On gains in my tech/biotech/industrial/consumer staple sector longs
  

• Disclosed Trades: None
  

• Market Exposure: 75% Net Long

Mid-Day Market Internals

NYSE Composite Index:

• Volume Running +35.9% Above 100-Day Average
• 11 Sectors Rising, 0 Sectors Declining
• 69.3% of Issues Advancing, 28.5% Declining
• 136 New 52-Week Highs, 3 New Lows
• 82.9% of Issues Above 200-day Moving Average
• Average 14-Day RSI 54.2% 
• Bloomberg Global Risk-On/Risk-Off Index 1,479.0 +154.0 points
• Vix 20.4 -.7%
• Total Put/Call .58 -26.6%
• TRIN/Arms 1.11 -32.7%