Bull Radar

 Style Outperformer:

• Small-Cap Value -.9%

Sector Outperformers:

• 1) Oil Service +1.7% 2) Energy +1.0% 3) Education +.8%

Stocks Rising on Unusual Volume:

• GOGO, UNFI, THO, LYEL, HUN, OI, WGO, LIND, WFRD, TEN, CONE, ULCC, SLB, CHPT, EDR, XLRN and WW
  

Stocks With Unusual Call Option Activity:

• 1) INDA 2) GOGO 3) ONDS 4) WW 5) ALT

Stocks With Most Positive News Mentions:

• 1) SNDA 2) UNFI 3) PLAG 4) HUN 5) THOR
  

Charts:

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

Mid-Day Market Internals

NYSE Composite Index:

• Volume Running +13.5% Above 100-Day Average 
• 1 Sector Rising, 10 Sectors Declining
• 16.0% of Issues Advancing, 81.5% Declining
• 58 New 52-Week Highs, 63 New Lows
• 63.2% of Issues Above 200-day Moving Average
• Average 14-Day RSI 46.9%
  
• Bloomberg Global Risk-On/Risk-Off Index 2,894.0 -269.0 points
• Russell 1000: Growth/Value 17,491 -1.38%
  
• Vix 23.9 +27.2%
• Total Put/Call 1.12 +40.0%
• TRIN/Arms .68 +23.6%

Tuesday Watch

Night Trading 

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

• Asia Ex-Japan Investment Grade CDS Index 87.25 +1.25 basis points.

• China Sovereign CDS 45.25 +1.0 basis point.
  

• Bloomberg Emerging Markets Currency Index 59.09 unch.
• Bloomberg Global Risk-On/Risk Off Index 3,118.0 -48.0 points.
• Volatility Index(VIX) futures 20.4 +1.2%.
• FTSE 100 futures +.%.

• S&P 500 futures -.05%

• NASDAQ 100 futures -.14%. 

Morning Preview Links

Earnings of Note 
Company/Estimate 

 

Before the Open: 

• (FDS)/2.73
• (THO)/2.86
• (UNFI)/.80
  

After the Close:

• (CALM)/-.62
• (CMTL)/.49
• (MU)/2.34
  

Economic Releases

8:30 am EST

• The Advance Goods Trade Balance report for Aug. is estimated to widen to -$87.3B versus -$86.4B in July.
• Wholesales Inventories MoM for Aug. is estimated to rise +.8% versus a +.6% gain in July.
• Retail Inventories MoM for Aug. is estimated to rise +.4% versus a +.4% gain in July.
  

9:00 am EST

• The FHFA House Price Index MoM for July is estimated to rise +1.5% versus a +1.6% gain in June.
• The S&P CoreLogic CS 20-City MoM for July is estimated to rise +1.7% versus a +1.77% gain in June.
  

10:00 am EST

• The Conference Board Consumer Confidence Index for Sept. is estimated to rise to 115.0 versus 113.8 in Aug.
• The Richmond Fed Manufacturing Index for Sept. is estimated to rise to 115.0 versus 113.8 in Aug.
  

Upcoming Splits

• (INMD) 2-for-1
  

Other Potential Market Movers

• The Fed's Powell/Treasury Secretary Yellen's testimony to Senate, Fed's Bowman speaking, German Consumer Confidence reading, 7Y T-Note auction, weekly US retail sales reports, (AMZN) product event and the (HAIN) investor day could also impact global trading today.

US Equity Market Hours

• 9:30 am - 4:00 pm EST
  

BOTTOM LINE: Asian indices are slightly lower, weighed down by technology and healthcare shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing mixed. The Portfolio is 100% net long heading into the day.

Stocks Slightly Lower into Final Hour on Labor/Product Shortage Fears, Higher Long-Term Rates, Tax Hike Worries, Tech/Medical Equipment Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Substantially Higher
  

• Sector Performance: Mixed
  

• Volume: Around Average

• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• Volatility(VIX) 18.3 +2.8%
• Bloomberg Global Risk On/Risk Off Index 3,228.0 +1.0 point

• Euro/Yen Carry Return Index 134.03 +.09%

• Emerging Markets Currency Volatility(VXY) 8.7 -.9%.

• S&P 500 Implied Correlation 55.5 +2.9%

• ISE Sentiment Index 108.0  +28.0 points
  

• Total Put/Call .80 -18.4%

• NYSE Arms .43 -48.8%

Credit Investor Angst:

• North American Investment Grade CDS Index 50.93 -.12%
  

• US Energy High-Yield OAS 373.64 -1.6%

• European Financial Sector CDS Index 55.26 -.23%

• Italian/German 10Y Yld Spread 102.0 +1.0 basis point
  

• Asia Ex-Japan Investment Grade CDS Index 87.0 +1.68%
  

• Emerging Market CDS Index 176.74 +1.2%
  

• China Corp. High-Yield Bond USD ETF(KHYB) 37.19 +.03%

• 2-Year Swap Spread 11.25 -.5 basis point
  

• TED Spread 10.75 +.75 basis point
  

• 3-Month EUR/USD Cross-Currency Basis Swap -2.5 -.25 basis point
  
• MBS  5/10 Treasury Spread  72.75 -1.5 basis points
  
• IHS Markit CMBX BBB- 6 71.75 unch.
  

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 59.12 -.07%
• 3-Month T-Bill Yield .03% unch.
  

• Yield Curve 118.0 -1.0 basis point
  

• China Iron Ore Spot 117.55 USD/Metric Tonne unch.

• Citi US Economic Surprise Index -28.8 +2.0 points

• Citi Eurozone Economic Surprise Index -63.8 -.3 point
  

• Citi Emerging Markets Economic Surprise Index -.8 -1.4 points

• 10-Year TIPS Spread 2.36 +2.0 basis points
• 98.5% chance of no change at Dec. 15th meeting, 98.5% chance of no change at Jan. 26th meeting

US Covid-19:

• 257 new infections/100K people(last 7 days total) -16/100K people
• 48% of Jan. 7th, 2021 peak(highest daily avg. new infections) -3.0 percentage points
  

Overseas Futures:

• Nikkei 225 Futures: Indicating -135 open in Japan 
• China A50 Futures: Indicating +38 open in China

• DAX Futures: Indicating +15 open in Germany

Portfolio:

• Slightly Higher: On gains in my industrial/consumer discretionary sector longs,
  

• Disclosed Trades: None
  

• Market Exposure: 100% Net Long
  

Bear Radar

 Style Underperformer:

• Mid-Cap Growth -1.1%

Sector Underperformers:

• 1) Medical Equipment -2.2% 2) Software -1.6% 3) Robotics -1.2%

Stocks Falling on Unusual Volume: 

• PRGS, ONEM, TASK, CRL, ATUS and OMER
  

Stocks With Unusual Put Option Activity:

• 1) BKLN 2) UUP 3) MJ 4) CAR 5) CLNE
  

Stocks With Most Negative News Mentions:

• 1) RWLK 2) NTZ 3) ATUS 4) APPH 5) OPK
  

Charts:

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

Bull Radar

 Style Outperformer:

• Small-Cap Value +2.5%

Sector Outperformers:

• 1) Oil Service +6.0% 2) Energy +3.3% 3) Banks +3.1%

Stocks Rising on Unusual Volume:

• SD, PBF, AMTX, REKR, GOSS, SAVA, EQT, KRA, CAR, CC, CNX, DMYI, DBI, WFRD, VZIO, CHX, RDUS, OXY, XEC, TSE, XLRN, AOSL, LNC, MRO, TCBI, MGY, BALY, LIND, VNOM, SBNY, DOW, CONN, APA, CCXI, DVN, PAGP, BBY, AAWW, CCL, EHTH, RBC, SNDX, LAUR, AFRM, RCL, ATSG, WYNN, ATKR, ENVX, CHEF, FLS, CHPT, XOM, PSN and TILE
  

Stocks With Unusual Call Option Activity:

• 1) PRTY 2) ENG 3) SEEL 4) GT 5) FLR

Stocks With Most Positive News Mentions:

• 1) SWN 2) NAKD 3) BBIG 4) PBF 5) OXY
  

Charts:

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