Stocks Rising into Final Hour on Earnings Optimism, Short-Covering, Technical Buying, Commodity/Biotech Sector Strength

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Most Sectors Rising
  

• Volume: Below Average

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 17.8 +2.9%
• Bloomberg Global Risk On/Risk Off Index 3,087.0 -52.0 points

• Euro/Yen Carry Return Index 135.1 +.2%

• Emerging Markets Currency Volatility(VXY) 9.8 -1.0%

• S&P 500 Implied Correlation 49.9 -.9%

• ISE Sentiment Index 130.0 +17.0 points
  

• Total Put/Call .61 -21.8%

• NYSE Arms .72 -6.5%

Credit Investor Angst:

• North American Investment Grade CDS Index 51.12 -.28%
  

• US Energy High-Yield OAS 450.42 -.46%

• European Financial Sector CDS Index 58.72 +.6%

• Italian/German 10Y Yld Spread 105.0 +1.0 basis point
  

• Asia Ex-Japan Investment Grade CDS Index 83.38 +2.74%
  

• Emerging Market CDS Index 167.43 +1.26%
  

• China Corp. High-Yield Bond USD ETF(KCCB) 39.31 +.1%.

• 2-Year Swap Spread 11.25 -.75 basis point

• TED Spread 16.75 +.75 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -3.75 unch.
  
• MBS  5/10 Treasury Spread  66.75 +2.0 basis points
  
• IHS Markit CMBX BBB- 6 71.5 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 60.89 +.16%
• 3-Month T-Bill Yield .01% -1.0 basis point
  

• Yield Curve 141.0 unch.
  

• China Iron Ore Spot 187.0 USD/Metric Tonne +3.1%

• Citi US Economic Surprise Index 38.40 -5.4 points

• Citi Eurozone Economic Surprise Index 132.1 -12.4 points
  

• Citi Emerging Markets Economic Surprise Index 35.6 -4.8 points

• 10-Year TIPS Spread 2.36 +2.0 basis points
• 89.4% chance of no change at June 16th meeting, 89.4% chance of no change at Sept. 22nd meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +153 open in Japan 
• China A50 Futures: Indicating -56 open in China

• DAX Futures: Indicating +7 open in Germany

Portfolio:

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

• Disclosed Trades: None
  

• Market Exposure: 100% Net Long
  

Bear Radar

 Style Underperformer:

• Large-Cap Value +.3%

Sector Underperformers:

• 1) Retail -.7% 2) Restaurants -.7% 3) Gold & Silver -.6%

Stocks Falling on Unusual Volume: 

• ACI, SKX, IMNM and MDXG
  

Stocks With Unusual Put Option Activity:

• 1) DKS 2) OCGN 3) EWT 4) MVIS 5) AEO
  

Stocks With Most Negative News Mentions:

• 1) ETSY 2) SAM 3) BBY 4) PII 5) KMB
  

Charts:

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

Bull Radar

Style Outperformer:

• Small-Cap Growth +1.6%

Sector Outperformers:

• 1) Shipping +3.6% 2) Alt Energy +2.7% 3) Steel +2.7%

Stocks Rising on Unusual Volume:

• PFPT, MVIS, OCGN, DNMR, RETA, CCIV, LAZR, PLBY, AMTI, AXSM, SGMS, FBC, PGNY, MUDS, NKLA, OTIS, GRA, IOVA, EAR, ADVM, SKLZ, TENB, NYCB, SEAH, NYCB, SWKS, STLD, ZNTL, TPTX, AKAM and IRTC
  

Stocks With Unusual Call Option Activity:

• 1) RRC 2) AKAM 3) PBF 4) SGMS 5) EA

Stocks With Most Positive News Mentions:

• 1) CSPR 2) OCGN 3) COUR 4) AXP 5) SLB
  

Charts:

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

Morning Market Internals

NYSE Composite Index:

• Volume Running -23.4% Below 100-Day Average 
• 8 Sectors Rising, 3 Sectors Declining
• 64.0% of Issues Advancing, 31.9% Declining
• 341 New 52-Week Highs, 11 New Lows
• 89.0% of Issues Above 200-day Moving Average
• Average 14-Day RSI 54.3%
  
• Bloomberg Global Risk-On/Risk-Off Index 3,110.0 -27.0 points
• Vix 17.7 +2.4%
• Total Put/Call .55 -29.5%
• TRIN/Arms .70 -9.1%

Monday Watch

Today's Headlines

Bloomberg:        

• Beijing Hopes U.S. Companies Will Push to Scrap China Tariffs.  
• Chinese Firms Are Listing in the U.S. at a Record-Breaking Pace.
• Vaccine Travel Rules Widen the Rift Between China and the West.  
• China’s Economy Continues Booming After Record First Quarter.
• Iran Says U.S. Must Lift Sanctions From 1,500 People to Fix Deal.
  
• India Asks Twitter to Block Posts Critical of Virus Handling.  
• India’s Double-Digit Growth Forecast in Peril as Virus Hits Hard. 
• EU May Allow Vaccinated U.S. Tourists This Summer, NYT Says.
• Vaccine Shortage Holds Emerging Markets Back from Global Rally.    
• Stocks in Asia Start Week Mixed With Fed in Focus: Markets Wrap.
• Most Mideast Shares Climb With Oil, Earnings Eyed: Inside EM.  
• Oil Edges Lower Near $62 With Investors Assessing Demand Outlook.
• China Boom Persists, Fed Meeting, Bail Out or Bail In?: Eco Day.
• World Pledges Aid for India as Cases Surge: Virus Update.
• Treasuries Reprieve Buoys Emerging Markets, but Buyers Are Picky.
• Behold the U.S. Economy’s Recovery as Fed Stays Course: Eco Week.
• The End of U.S. Mass Vaccination Is Coming Sooner Than Later.
  
• Stop the Vaccine ‘Finger Wagging,’ Says Top U.S. Health Official.
• Tesla’s Stock-Market Devotees Might Get an Earnings Jolt.
• GOP Senator Floats $900 Billion Trimmed Infrastructure Spending.  
• Sell Signals All but Useless in Unchartable 2021 Stock Market.   
• Exxon Investors Warned of Risk From Emissions Goals, FT Reports.  
• U.S. Wages Are About to Sink in an Odd Sign of Economic Strength.

Wall Street Journal:

• Wild Market Ride Lifts Assets From Lumber to Stocks.
• Maxine Waters’s Long History of Reckless Rhetoric.
• A Covid-19 Vaccine’s 1,500-Mile Journey Through India.
• Jack and the Bean Counters: A Woke Children’s Story.
• Restaurants Serve Up Signing Bonuses, Higher Pay to Win Back Workers.
• GameStop’s CEO Is Getting Millions on His Way Out.
• SPAC Insiders Can Make Millions as Investors Take Losses.
• ‘Donor Disclosure’ Chills Free Speech.
• The Dumbest Tax Increase.

Fox News:

• State to investigate Chauvin trial witness after controversial testimony.
• Clinton hosted Epstein, Maxwell as VIPs, new photos prove. 
• Apparently the doctor is ready to rely on ‘common sense’.

CNBC:  

• PM Modi says India shaken by coronavirus ‘storm’, U.S. readies help.
• Wall Street’s top analysts see gains in store for these stocks.
• Rent out your pool and swim in profits? Check your insurance before diving in.
• Attention shoppers: Price hikes are ahead, but consumer companies hope you won’t notice.

Zero Hedge: 

• "Biden Is An Idiot" - Fmr Police Officer Blasts Democrats For "Riding The Wave Of Dead Black People". 
• "This Is Massive": Shadowy DARPA-Linked Company Took Over 'Chunk' Of Pentagon's Internet In Inauguration Day Mystery. 
• QQQ ETF Sees Biggest Outflows Since Bursting Of Dot Com Bubble.
• Home Prices Soar 18% To An All Time High; A Record 58% Of Houses Sell Within Two Weeks Of Listing.
• MIT Study Suggests Six Foot Social Distancing, Limited Occupancy Rules Are Completely Pointless.
• "I'm Not A Roadblock" Says Moderate Dem Blocking Road To Socialist 'Utopia'.
• "The Problem Is That Your Ideas Are Stupid" - Bill Maher Blasts "Gullible" Millennials.
• 12 Myths Fueling Government Overreach In Times Of Crisis.
• Fire At Baghdad COVID Hospital Sparked By Oxygen Explosion Kills 82 People.
• Harvard Admits 1,968 To Class Of 2025 Amidst 43% Surge In Applications.
• Gold & The Coming Oil Shortage - Part II.
• Who Benefitted From The Euro And Who Pays The Piper Now?
• Scientists Are Now Growing Human-Monkey Chimeric Embryos.
• Turkey Summons US Ambassador, Says Armenian Genocide Statement "Alienating" A NATO Ally.
• These Are The Most Polluted Cities In America.
• The United States Has Declared Defeat In Two More Wars.
• Jim Bovard: The Feds Are Coming For Libertarians.
• Dozens Arrested After CEO Of Turkish Crypto Exchange Flees With $2 Billion.
• NJ Deli With $100 Million Market Cap Linked To Shell Company Whose Stock Also Recently Exploded.
  

NewsMax:    

• Poll: Majority Disapprove of Biden's Border Crisis Handling.
• Wuhan Lab Helped Chinese Army in Secret Project to Find Animal Viruses. 
• Newt Gingrich: Biden Administration Most Anti-American Presidency in History.
  

TheGatewayPundit.com:

• Senator Rand Paul: Dr. Fauci Must Answer Questions on Why He Continued to Fund Dangerous Human-Virus Studies after they were Banned in US (VIDEO).
• Big Tech Giants From Twitter, Facebook and Netflix Donated $7.5 Million to BLM Cofounder — Then Censored Stories About Her Real Estate Spree. 
• REPORT: California National Guard Put Fighter Jet on Alert For ‘Possible Domestic Mission’ to Terrify and Disperse Anti-Lockdown Protesters.
• Biden Admin Stops Fining Illegal Aliens Who Refuse to Leave America and Cancels Their Debts.
• Former Virginia Tech Women’s Soccer Player Sues Coach After She Was Forced Off College Soccer Team For Refusing to Kneel.
• AZ Election Worker: “I Was on the List for the AZGOP and They Just Told Me Google Eliminated the List – They’re Trying to Keep the Public Out” (VIDEO).
• Joe Biden Hops on Marine One to Spend Another Weekend at His Delaware Home After Lecturing Americans on Carbon Emissions (VIDEO). 
• The Number of State Employees in Illinois Who Were Paid More than $100,000 Increased to All-Time High in 2020.

The Epoch Times:

• Hundreds of Taxpayer-Funded US Scientists Likely Compromised by China: NIH.
• EU Says Communist Party of China Endangering Peace in South China Sea.

Digital Blackboard:

• Daily New Cases by Region.

Worldometer:

• New Cases/Deaths by state.

Rt Covid-19:

• How fast virus is growing by state.

KFF:

• State Data(Tests/Hospitalizations).

Night Trading

• Asian indices are -.25% to +.5% on average.
• Asia Ex-Japan Investment Grade CDS Index 83.25 +.75 basis points.
• China Sovereign CDS 38.25 unch.
• Bloomberg Emerging Markets Currency Index 60.81 +.02%.
• Bloomberg Global Risk-On/Risk Off Index 3,165.0 +26.0 points.
• Volatility Index(VIX) futures 20.45 +.09%. 
• Euro Stoxx 50 futures -.15%.
• S&P 500 futures -.03%.
• NASDAQ 100 futures +.02%

Morning Preview Links

Earnings of Note

Company/Estimate

Before the Open:

• (AMG)/4.21
• (ACI)/.46
• (OTIS)/.63
• (CHKP)/1.50
  

After the Close:

• (BRO)/.56
• (CNI)/1.26
• (NXPI)/2.21
• (TSLA)/.73
• (UHS)/2.26
  

Economic Releases

8:30 am EST

• Durable Goods Orders for March is estimated to rise +2.3% versus a -1.2$ decline in Feb.
• Durables Ex Transports for March is estimated to rise +1.6% versus a -.9% decline in Feb.
• Cap Goods Orders Non-Defense Ex Air for March is estimated to rise +1.5% versus a -.9% decline in Feb.

10:30 am EST

• Dallas Fed Manufacturing Activity for April is estimated to rise to 30.0 versus 28.9 in March.

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The BoJ interest rate decision, German IFO Climate Index, $60B 2Y T-Note auction and the $61B 5Y T-Note auction could also impact trading today.

US Equity Market Hours

• 9:30 am - 4:00 pm EST

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 100% net long heading into the week.

Today's Headlines

Bloomberg:

• India’s Urban Affluent Hit by Virus Wave After Earlier Dodge.   
• Virus Surge and China Are Muddying the Bullish Asian Stock Story.
  
• Biden Tells Erdogan He’ll Brand Armenian Massacres as Genocide.
• Roaring Reopening Trade Threatened With Boom Nearing Peak.
• Rich Americans Who Were Warned on Taxes Hunt for Ways Around Them. 
• Traders Reach Crucial Moment in Timing of Fed Rate-Hike Cycle.   
• U.S. States Relaunch J&J Shot After 10-Day Halt: Virus Update.
• Biden Exploring Border Adjustment Tax to Fight Climate Change.
  
• Anger, Denial and Grief Greet Biden Tax Hike.
• What Rotation? Some Winning Covid Stocks Thrive Amid Reopening.  
• Hedge Fund Manager Accused of Bilking Clients for Race Car Hobby.
• Largest Bitcoin Fund Dives to Record Discount Amid Crypto Swoon.
• Biggest QQQ Exodus Since 2000 Ups the Ante on Big Tech Earnings.  
• Charting the Global Economy: Central Banks Seen Holding the Line. 
• U.S. Corporates Ready $30 Billion of Bond Sales After Earnings.

Wall Street Journal:

• Covid Unemployment Relief Makes Help Impossible to Find.
• How Electric, Self-Driving Cars and Ride-Hailing Will Transform the Car Industry.
• How to Have More Police Shootings.
• A Dad Fights to Bring Back School Sports. His Son Moves On.
• Biden’s Pledge to Slash Emissions Would Require Big U.S. Changes.
• Behind Bitcoin’s Slide: Imploding Bets, Forced Liquidations.
• SPAC Surge Boosts Junk Debt. 
• Apartment Rents Rise, Ending Many Perks for Renters.
• Signs Emerge of Slowing Demand for Covid-19 Vaccines.
• Tesla, Apple, Amazon Headline a Heavy Earnings Week.
• How a Wave of Electric Trucks Could Create Millions of ‘Accidental Environmentalists’. 
• History Offers Only Rough Guide to the Coming Economic Boom.

CNBC:

• Over $200 billion wiped off cryptocurrency market in a day as bitcoin plunges below $50,000.
• Nucor CEO expects strong 2021 after posting record quarterly profit.
• Taxes and inflation will be key themes for markets in the week ahead.
• Cramer’s week ahead: The market is creating ‘unbelievable buying opportunities’.
• Cushman & Wakefield CEO expects growing economy to make up for remote work-related office declines. 
• Two SpaceX crew spacecraft are now docked to the space station, as the Crew-2 mission arrives.
• India’s daily coronavirus cases climb to new world record as hospitals buckle. 
• More than 30 colleges now say Covid vaccines will be mandatory — here’s a running list.

IG:

• Weekend Markets Trading Live.

Barron's:

• Had bullish commentary on (MRNA), (MDLZ), (HSY), (CAG), (PRGO) and (NFLX).

MarketWatch.com:         

• CDC, FDA lift pause, allowing Johnson & Johnson COVID-19 vaccinations to resume.

Fox News:

• California National Guard put F-15 on high alert in 2020 fearing outrage over Newsom lockdowns.

Newsmax:  

• Dems Divided: Manchin Says Biden Should Focus on 'Conventional' Infrastructure.
• Blinken to Allow Pride Flag to Fly at US Embassies.
• Dems Call GOP Opposition to DC Statehood ‘Bigotry’.  
• Trump Calls on Arizona Gov. Ducey to Provide Security for Election Audit.
• Where's Harris? VP Slammed for Going 30 Days Without Border Visit.
  

Zero Hedge:

• Buchanan: Is America Led Today By Anti-Americans?
• Border-Area Hotels Bail On Biden Admin To House Migrant Overflow.
• Make No Mistake: Programmable Digital Currencies Are Weaponizable Money.
• 'Patient Zero' Of The Bubble Pandemic: Alan Greenspan.
• Tampa McDonald's Exposes America's Systemic Labor Shortage, Forced To Pay People $50 To Interview. 
• "The Stock Market Has Gone Crazy And Will Likely Go Even Crazier".
• Entire B-1B Bomber Fleet Grounded For Potential Fuel Leak.
• "Taking A Knee" Banned By International Olympic Committee. 
• Gold & The Coming Oil Shortage – Part I.
• Euroscepticism Grows In Germany As 63% Say EU Is Excessively Bureaucratic. 
• The Reasons Why Leftists Will Never Successfully Disarm Americans.
• Robo-Dogs Spotted At SpaceX's Texas Launch Facility. 
• The State-Corporate Convergence In Our State Of Emergency.
• Crypto Investors Are Spending Millions Buying NFTs On Virtual Real Estate.
• The United States Of 2 Americas.
• DARPA's Aerial Dragnet Hunts Drones With Drones.
• The Rising Threat Of Nuclear War Is The Most Urgent Matter In The World.
• "Pathetic Appeal To Hysterical Media, Frightened Voters" - Aussie TV Anchor Unloads On "Loopy-Left Era Of Joe Biden".
• Top Twelve Political Donors Give $1 Out Of Every $13.
• Used Car Prices Continue To Soar, Smashing Records Amid "Decimated Supply".
• "Bubble Markets... If Only There Were Signs": Here Are BofA's Bull, Bear And Base Cases For 2021.
• Biden's Global Climate Summit Kicks Off Full-Tilt Wealth Redistribution.
• CDC Panel Recommends Resumption Of J&J Vaccine As "Benefits Outweigh Risks".
• "Shame On Us" - Emotional Georgia Mom Begs School Board: "Take These Masks Off My Child".
• The Worrisome 1999 Vibe To Markets.
• 21 Remarkable Stats For '21.
• Stocks & Bonds Shrug Off Biden Battering, Dollar & Cryptos Tumble.
  

TheGatewayPundit.com:

• BREAKING – HUGE UPDATE IN AZ: Democrats in Arizona Won’t Post $1 Million Bond So Election Audit Continues.
• Washington State Department of Health Allows Vaccination Sites to Deny Vaccines to White People to ‘Address Inequities’.
• Kamala Harris Ignores Reporter Asking When She Will Visit Southern Border (VIDEO).
• “Democrats Sent 73 Lawyers to AZ – THEY KNOW WHAT THEY DID!” – BREAKING: President Trump Releases Statement on Forensic Audit in Maricopa, County Arizona.
• What Happened to $16 Million Georgia’s Secretary of State’s Office Received Before the 2020 Election?
• Movement Growing For Constitutional Amendment To Keep Supreme Court At Nine Justices. 
• Pixar Animation House Releases Casting Call for ’14-Year-Old Transgender Female’ Cartoon Character.
• BREAKING – IT’s HAPPENING! Arizona Election Workers are Running Ultra-Violet Ballot Testing on Maricopa Ballots (VIDEO). 
• War Room: Rachel Maddow Is Worried about what AZ Election Audit will Find — She Knows Georgia Is Next (VIDEO). 
• Feds Identify 500 “Scientists Of Concern” Tied To China And Other Foreign Influences.

The Epoch Times:

• West Faces ‘Moment of Reckoning’ Over Chinese Tech Threat: UK Intelligence Chief.
• Former Coca-Cola Employee Convicted of Stealing $120 Million Worth of Trade Secrets to Sell in China. 
• Texas Senate Passes Resolution to Curb China’s Forced Organ Harvesting: ‘There Needs to Be a Global Outcry’.

Daily Mail:

• How Biden's climate plan could limit you to eat just one burger a MONTH, cost $3.5K a year per person in taxes, force you to spend $55K on an electric car and 'crush' American jobs.

Digital Blackboard:

• Daily New Cases by Region.

Worldometer:

• New Cases/Deaths by state.

Rt Covid-19:

• How fast virus is growing by state.

KFF:

• State Data(Tests/Hospitalizations).