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 Post subject: April 20th Tuesday 2010 Emini TF ($TF_F) points +8.20
PostPosted: Wed Apr 21, 2010 6:41 pm 
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Dow Tumbles 126, But Clings To 11,000
Stocks rise on earnings
By Alexandra Twin, senior writer
April 20, 2010: 6:18 PM ET

NEW YORK ( -- A surge in energy prices and better-than-expected profit reports from Goldman Sachs and others helped stocks Tuesday.

The Dow Jones industrial average (INDU) added 25 points, or 0.2%. The S&P 500 index (SPX) gained 10 points, or 0.8%. The Nasdaq composite (COMP) gained 20 points, or 0.8%.

After the close, Apple (AAPL, Fortune 500) reported quarterly sales and earnings that easily trounced expectations, thanks to strong sales of its iPods and iPhones. The company also issued a current-quarter profit forecast that surpasses analysts' estimates. Shares gained nearly 6% in extended-hours trading.

Also after the close, Yahoo (YHOO, Fortune 500) reported higher quarterly earnings that topped estimates and higher quarterly sales that missed estimates. Shares fell nearly 4% in extended-hours trading.

Stocks seesawed Tuesday morning as investors mulled Goldman Sachs (GS, Fortune 500)' improved earnings and analysts grilled the firm over SEC charges that it defrauded investors in a deal involving the marketing of subprime mortgages.

But stocks turned higher as investors focused on better-than-expected reports from Coca-Cola, Johnson & Johnson and others, as well as a rally in energy, mining and metal prices and stocks.

Investors took a "sell the news" approach to IBM's improved results released late Monday, with weakness in that stock limiting the Dow's gains. IBM is the Dow's most heavily weighted component.

Stocks ended mostly higher Monday as worries about Goldman Sachs eased and Citigroup's strong earnings soothed investors. Concerns about the potential fallout from Goldman Sachs dragged on stocks at the end of last week. But investors took comfort Monday from reports that said that regulators decided to pursue charges against the firm by just a narrow majority.

"The Goldman risk has been built into the market, along with some of the fear about financial reform regulation," said David Chalupnik, head of equities at First American Funds. "Now earnings are back in the driver's seat."

Goldman: The company reported a better-than-expected first-quarter profit of $3.5 billion on strength in its investment banking business and improved trading volume.

But Goldman Sachs (GS, Fortune 500) stock lost 2% as investors also listened to the testimony from its executives, who denied that the company misled investors.

Quarterly results: IBM (IBM, Fortune 500) posted higher quarterly sales and earnings that topped estimates late Monday. The company also boosted its full-year 2010 earnings forecast. But shares fell nearly 2% Tuesday as investors worried about a surprise decline in the backlog, Chalupnik said.

Johnson & Johnson (JNJ, Fortune 500) reported higher quarterly earnings that beat estimates on higher revenue that met estimates as strong sales of medical devices overshadowed weaker sales of prescription drugs and consumer products.

The Dow component also trimmed its full-year 2010 earnings forecast due to currency rate fluctuations and the impact of the U.S. health care bill. Shares were little changed.

S&P 500 earnings are currently on track to have risen 45% versus a year ago, according to the latest from Thomson Reuters. Revenues are on track to have risen 11%.
20 biggest money losers

World markets: In overseas trading, European markets rose, with London's FTSE gained 1%, France's CAC 40 gained 1.3% and Germany's DAX gained 1.5%. Asian markets were mixed, with Hong Kong's Hang Seng index up 1% and Japan's Nikkei down 0.1%.

Bonds: Treasury prices rose, lowering the yield on the 10-year note to 3.80% from 3.81% late Monday. Treasury prices and yields move in opposite directions.

The dollar and commodities: The dollar fell versus the euro and gained against the yen.

COMEX gold for June delivery rose $3.40 to settle at $1,139.20 per ounce.

U.S. light crude oil for May delivery rose $2 to settle at $83.45 a barrel on the New York Mercantile Exchange, the last day of the May contract. The June contract settled at $83.85 a barrel, up 72 cents from Monday's closing price.

Market breadth was positive. On the New York Stock Exchange, winners beat losers four to one on volume of 1.14 billion shares. On the Nasdaq, advancers topped decliners three to one on volume of 2.11 billion shares.


Yahoo! Finance

4:35 pm : Blue chips managed modest gains amid a bevy of better-than-expected earnings, but the results acted as a positive catalyst for the broader market, which settled with a strong gain.

The S&P 500 extended its rebound from the prior session so that it is now less than 1% below the 52-week high that it tumbled from late last week. Its strength in the latest session was broad based with all 10 major sectors booking gains.

Broader market strength coupled with a 0.9% increase in crude oil prices to $83.91 per barrel to take energy stocks to a 1.9% gain. That was the best of the major indices.

Financials were next in line. The sector settled 1.3% higher with regional banks up 3.5% following better-than-expected bottom line results from Marshal & Isley (MI 9.31, +0.90), Regions Financial (RF 8.80, +0.47), and Zions Bank (ZION 27.42, +1.99).

Goldman Sachs (GS 159.98, -3.34) reported an upside earnings surprise of its own on the heels of fraud charges by the SEC. As for the latter matter, Britain's financial regulator started a formal enforcement investigation into the firm.

IBM (IBM 129.69, -2.54) and Johnson & Johnson (JNJ 65.99, -0.04) also bested Wall Street's expectations for the latest quarter, but a lowered forecast from Johnson & Johnson and dissatisfaction with IBM's margins dampened enthusiasm over the reports.

Market participants also showed little interest in upbeat earnings from Coca-Cola (KO 54.47, -0.85) and a dividend hike from Procter & Gamble (PG 63.19, -0.03). Their subsequent weakness hampered the consumer staples sector, which closed just 0.1% for the better.

Still, buying in the broader market was impressive as stocks climbed for the eighth time in nine sessions and the Volatility Index dropped by 9.3%. The VIX is now just 3% above the multiyear low that it hit last week.

Advancing Sectors: Energy (+1.9%), Financials (+1.3%), Utilities (+1.1%), Consumer Discretionary (+1.1%), Industrials (+0.7%), Telecom (+0.7%), Tech (+0.4%), Health Care (+0.3%), Materials (+0.2%), Consumer Staples (+0.1%)
Declining Sectors: (None) DJ30 +25.01 NASDAQ +20.20 NQ100 +0.5% R2K +1.4% SP400 +1.3% SP500 +9.65 NASDAQ Adv/Vol/Dec 2045/2.08 bln/651 NYSE Adv/Vol/Dec 2499/1.13 bln/556

3:30 pm : Commodities advanced nearly 1% this session.

The move to the upside was led by grains. July wheat futures rose 4%. July Corn futures rose over 2%.

Meanwhile, the energy complex traded about 1% higher this session. June crude oil closed 0.9% higher at $83.91 per barrel. June natural gas futures closed 0.8% higher at $3.97 per MMBtu. June gasoline and heating oil futures closed about 1% higher.

Gold and silver futures ended higher this session despite the mild strength in the dollar index. June gold closed 0.3% higher at $1139.20 per ounce; May silver closed 0.5% higher at $17.82 per ounce. DJ30 +30.38 NASDAQ +17.98 SP500 +9.19 NASDAQ Adv/Vol/Dec 1874/1.72 bln/778 NYSE Adv/Vol/Dec 2387/837 mln/629

3:00 pm : Stocks head into the final hour of this session with solid, broad-based gains. Both the Nasdaq and the S&P 500 have even attempted to make a move back toward their session highs.

As for the Dow, it is also up, but less impressively than its counterparts. It has lagged for most of the session despite better-than-expected earnings from a bevy of blue chips. DJ30 +39.30 NASDAQ +19.91 SP500 +10.04 NASDAQ Adv/Vol/Dec 1898/1.56 bln/773 NYSE Adv/Vol/Dec 2414/767 mln/613

2:30 pm : Stocks continue to drift sideways in a narrow trading range. Though that has made for rather lackluster action, gains remain healthy as stocks head toward their second straight gain since they slumped this past Friday.

Amid the steady gains, Treasuries have remained flat. In turn, the yield on the benchmark 10-year Note stands at 3.80%.

The greenback has also had a relatively quiet session, though it has gradually made its way to a 0.2% gain against competing currencies. DJ30 +28.72 NASDAQ +17.59 SP500 +8.81 NASDAQ Adv/Vol/Dec 1889/1.44 bln/764 NYSE Adv/Vol/Dec 2400/712 mln/610

2:00 pm : Large-cap tech outfits Apple (AAPL 245.62, -1.45) and Yahoo! (YHOO 18.49, +0.10) are on deck to report earnings after the closing bell, but in contrast to recent sessions the pair hasn't found the same type of support that participants had shown for other stocks ahead of their announcements. Instead, AAPL and YHOO are caught up in some rather lackluster action, which has actually weighed a bit on the Nasdaq 100 (+0.5%).

The consensus forecast for Apple calls for earnings of $2.45 per share, which is up considerably from the $1.33 per share that the company earned during the same period one year ago. Apple's quarterly earnings per share one year ago exceeded the consensus forecast by $0.24.

As for Yahoo!, it is expected to post a profit of $0.09 per share for its latest quarter. That would actually be down from the $0.15 per share that was brought in during the same period one year ago, when it beat the consensus estimate by $0.07 per share. DJ30 +35.06 NASDAQ +18.65 SP500 +9.24 NASDAQ Adv/Vol/Dec 1862/1.33 bln/771 NYSE Adv/Vol/Dec 2411/655 mln/602

1:30 pm : Volatility has dropped even more in recent trade, such that the Volatility Index is now down 7.2% this session.

Meanwhile, stocks recently eased back a bit and entered into a sideways drift. However, gains remain broad with all 10 major sectors still in positive territory.

Gains also remain healthy among commodities. As such, the CRB Commodity Index is up 1.0%, DJ30 +38.39 NASDAQ +18.10 SP500 +9.42 NASDAQ Adv/Vol/Dec 1873/1.21 bln/755 NYSE Adv/Vol/Dec 2427/613 mln/579

1:00 pm : Better-than-expected earnings continue to keep buyers in the market, such that stocks currently trade with broad-based gains and have almost recovered completely from the selloff that hit late last week.

Goldman Sachs (GS 161.36, -1.96) triggered a selloff last week when it was learned that the firm was charged with fraud by the SEC, but the company came back into focus this morning. Though the company bested earnings expectations with ease, concern about fallout from fraud charges was stoked by news that Britain's financial regulator started a formal enforcement investigation into the firm.

There were a bevy of other blue chips out with better-than-expected results, too, including IBM (IBM 129.57, -2.66) and Johnson & Johnson (JNJ 65.80, -0.23) were among them, but a lowered forecast from Johnson & Johnson and dissatisfaction with IBM's margins and have acted as an overhang on the pair and caused the health care sector (+0.2%) and tech sector (+0.5%) to lag the broader market.

Among other widely-held names, Coca-Cola (KO 54.48, -0.84) topped the consensus earnings estimate and Procter & Gamble (PG 63.26, +0.04) hiked its dividend.

While blue chips have found mixed interest among market participants, their results continue to support a picture of an improved earnings environment. That has helped to inspire buyers in the broader market and drive higher some 80% of the components in the S&P 500.

Though this session's broad-based move has brought the stock market back toward its 52-week high and may be suggestive of a resilience among stocks, many market pundits caution that resistance stands at existing highs and at technical levels closer to 1225. DJ30 +38.09 NASDAQ +17.98 SP500 +9.51 NASDAQ Adv/Vol/Dec 1881/1.14 bln/742 NYSE Adv/Vol/Dec 2418/572 mln/563

12:30 pm : Financials have come into sharper focus as they extend their advance to sport a 1.1% gain. The sector is currently led by regional lender Marshal & Isley (MI 9.13, +0.72), which posted this morning earnings results that exceeded Wall Street's expectations. Regions Financial (RF 8.46, +0.13) also bested expectations, as did Zions Bank (ZION 26.29, +0.86). The upside surprises have helped the group assemble a collective gain of 1.8%.

The financial sector has also gained amid strength in government-owned financial entities Freddie Mac (FRE 1.50, +0.07), and AIG (AIG 41.06, +1.97), which are both up in excess of 4%. Fannie Mae (FNM 1.24, +0.03) had been up with a similar gain, but it has since pulled back. DJ30 +43.68 NASDAQ +17.42 SP500 +9.80 NASDAQ Adv/Vol/Dec 1848/1.03 bln/755 NYSE Adv/Vol/Dec 2398/524 mln/559

12:00 pm : The S&P 500 recently set a fractionally improved session high. The move has put the stock market less than 1% below the 52-week high that it set last week.

Consumer staples stocks (unch.) and health care stocks (+0.2%), traditionally defensive oriented, are acting as laggards this session. Within the two sectors, consumer staples giant Procter & Gamble (PG 63.16, -0.06) has failed to inspire even though it announced a 9.5% increase to its quarterly dividend ahead of its end-of-month earnings release. Meanwhile, Johnson & Johnson (JNJ 65.88, -0.15) fell out of favor when its lowered earnings forecast overshadowed its better-than-expected bottom line results. DJ30 +33.78 NASDAQ +14.37 SP500 +8.36 NASDAQ Adv/Vol/Dec 1760/906 mln/806 NYSE Adv/Vol/Dec 2348/469 mln/594

11:30 am : The broader market has extended its midmorning rebound, but the move has stalled a bit near this morning's highs. Energy remains a primary source of strength; the sector is now up 1.8%.

As for other natural resource plays, materials stocks are up 0.6%, in-line with the broader market. Steel plays are mixed, though, following comments from Steel Dynamics (STLD 17.29, -0.23) that current consensus estimates are too high. Meanwhile, AK Steel (AKS 19.76, -1.07) is down sharply for the fourth straight session, despite in-line quarterly earnings. DJ30 +26.45 NASDAQ +12.05 SP500 +7.24 NASDAQ Adv/Vol/Dec 1690/785 mln/834 NYSE Adv/Vol/Dec 2265/414 mln/640

11:00 am : The Dow recently dipped into negative territory and the Nasdaq came in contact with the unchanged market, but stocks have since made a modest rebound to trade with varied gains.

Energy stocks continue to outperform. The sector is up 1.6% as oil and gas drillers (+2.9%) and oil and gas equipment plays (+3.4%) attract the attention of buyers. Their strength comes as oil extends its rebound from three straight losses; oil prices are now up 2.2% to $83.20 per barrel.

Treasuries are a bit mixed at the moment. Accordingly, the benchmark 10-year Note is down just a couple of ticks, but the 30-year Bond is up five ticks. DJ30 +15.26 NASDAQ +7.40 SP500 +5.90 NASDAQ Adv/Vol/Dec 1605/628 mln/881 NYSE Adv/Vol/Dec 2150/354 mln/686

10:30 am : Crude and precious metals hit new session highs in recent trade, with little help from the dollar index, which is sitting just above the unchanged line.

May crude oil has been in positive territory all session. After pulling back a little after the open, crude rallied to fresh session highs of $83.04 per barrel. Currently, it's trading at $82.85 per barrel, up 1.8%.

May natural gas fell in the red for the first time in today's session just before 8:00ET. The energy component has chopped around since then in and out of negative territory. It hit session lows of $3.91 per MMBtu an hour ago and is currently down 0.6%, at $3.92 per MMBtu.

June gold began gaining momentum in the middle of the overnight session. Gold set morning highs at $1146.80 per ounce around 30 minutes ago and is currently just under that level at $1142.5 per ounce, up 0.6%. May silver has been in positive territory all session. Silver hit its own new session high of $18.04 per ounce around the same time gold did. Currently, silver is up 1.3% at $17.97 per ounce. DJ30 -1.06 NASDAQ +4.31 SP500 +4.45 NASDAQ Adv/Vol/Dec 1518/456.4 mln/897 NYSE Adv/Vol/Dec 2011/277.2 mln/793

10:00 am : Stocks recently steadied their slide from the open, but tech has lagged a bit during the early going. The sector is presently up just 0.1% as shares of IBM (IBM 128.56, -3.67) drag along. The stock had actually traded with strength ahead of its quarterly earnings report, which was released after the prior session's close, but it has since succumbed to a bout of selling pressure that has stemmed partly from disappointment over the company's margins.

Volatility has taken an early tumble. That has the Volatility Index (VIX) down 3.5%. The VIX is now up roughly 10% from its multiyear low, which was reached last week.

Early movers: Trading up -- ARRY +34.1%, CPY +17.9%, UNIS +13.6%, ACUR +12.7%, INTT +10.6%, ASTE +9.3%, SMTX +8.9%, CPBY +8.9%; Trading down -- BDSI -11.4%, ENCO -10.1%, ATAX -9.3%, RBPAA -9.1%, BIOC -8.9%, MTG -8.4%, FALC -8%, PRAN -7.5%, NIV -7.2%

Advancing Sectors: Energy (+1.3%), Industrials (+0.9%), Consumer Discretionary (+0.9%), Financials (+0.8%), Utilities (+0.6%), Materials (+0.4%), Telecom (+0.2%), Consumer Staples (+0.2%), Health Care (+0.2%), Tech (+0.1%)
Declining Sectors: (None) DJ30 +23.20 NASDAQ +10.22 SP500 +6.80 NASDAQ Adv/Vol/Dec 1628/260 mln/677 NYSE Adv/Vol/Dec 2160/185 mln/555

09:45 am : Stocks have given up a small portion of their opening gains, but the early tone to trade remains broadly positive as all 10 major sectors in the S&P 500 continue to sport gains.

The best gains this morning come from the energy sector and industrials sector. Both are up 1.0%. Energy's gain has been underpinned by a rebound in oil prices, which were last quoted at $82.30 per barrel, up 1.1%. As for industrials, they are currently led by Illinois Tool Works (ITW 50.50, +1.69), which posted an upside earnings surprise for its latest quarter. DJ30 +21.01 NASDAQ +11.1 SP500 +6.38 NASDAQ Adv/Vol/Dec 1613/165 mln/632 NYSE Adv/Vol/Dec 2121/135 mln/532

09:15 am : S&P futures vs fair value: +6.20. Nasdaq futures vs fair value: +7.80. Earnings have dominated newswires. Results have been generally strong since, on average, only 1 in 4 of the companies that has covered since the prior session's close came short of the consensus estimate. Better-than-expected results were led by a battery of blue chips, including IBM (IBM), Coca-Cola (KO), Johnson & Johnson (JNJ), and Goldman Sachs (GS). Meanwhile, Procter & Gamble (PG) declared a 9.5% increase to its quarterly dividend, though the company doesn't report until the end of the month. In addition to the broad range of upbeat announcements, sentiment has been helped by strong gains among Europe's major bourses, which have rallied amid news of a jump in investor confidence in Germany and a healthy appetite for short-term Greek debt. As for other catalysts, the dollar is quiet and there's no data on deck.

09:00 am : S&P futures vs fair value: +5.70. Nasdaq futures vs fair value: +6.50. Stock futures are off of their premarket highs, but they continue to point to a strong start for the session.

Commodities have also attracted the interest of buyers. That has helped the CRB Commodity Index rebound to a 0.5% gain after broad losses in the prior session. At the moment, oil prices are up a strong 1.2% to $82.40 per barrel in early pit trade. Meanwhile, gold was last quoted with a 0.6% gain at $1141.90 per ounce and silver was last seen 1.0% higher at $17.91 per ounce.

Those gains come even though the dollar recently made a slight advance against competing currencies so that the Dollar Index is now up 0.1%.

08:35 am : S&P futures vs fair value: +5.20. Nasdaq futures vs fair value: +6.30. U.S. stock futures continue to trade with moderate strength. Meanwhile, Europe's bourses are up with strong gains amid news that Greece successfully sold nearly 2 billion euros worth of three-month bills in an auction that garnered strong demand and an interest rate that was below some of the more pessimistic expectations. News of a stronger-than-expected German investor confidence reading for April has also helped sentiment. Germany's DAX is up 1.3% at the moment. Of its 30 members, only Henkel AG I is in the red, while Daimler (DAI) is up nearly 8% in its best single-session percentage advance in months following strong earnings for its latest quarter. In France, the CAC is up 1.2%. Its gains have also been broad based. Dexia SA and Lagardere are the only two names in the 40-member index that have failed to find higher ground; they are down fractionally. With help from an upgrade by analysts at Citigroup, Total (TOT) currently sports one of the most impressive gains. In Britain, the FTSE is up 0.9%. Natural resource plays BP PLC (BP) and Rio Tinto (RTP) are leaders, but SABMiller is also strong after reports suggested that the company said its financial performance for the year remains in-line with expectations. As for data, the UK inflation rate for March climbed 3.4%, which was sharper than expected.

In Asia, Japan's Nikkei slipped 0.1% as strength in DAI Nippon Print and Fast Retailing was undermined by Softbank, which was a primary source of weakness. Hong Kong's Hang Seng finished 1.0% higher as banking issues of HSBC (HBC), China Construction Bank, and Industrial & Commercial Bank showed leadership. Li & Fung was a bit of a drag, however. Meanwhile, mainland China's Shanghai Composite finished flat.

08:00 am : S&P futures vs fair value: +6.10. Nasdaq futures vs fair value: +7.80. Participants have picked up where the prior session left off to give stock futures an upward push. The effort has been helped by a raft of strong quarterly reports, which have included better-than-expected earnings from IBM (IBM), Coca-Cola (KO), and Johnson & Johnson (JNJ). Though those particular names are mixed in premarket trade, their results support a positive earnings picture for the quarter.

Goldman Sachs (GS) also surpassed expectations for the latest quarter, but a Reuters report that indicated Britain's financial regulator started a formal enforcement investigation into the firm has acted as a reminder that there is some near-term uncertainty in the stock.

There is no official economic data scheduled for release today, but Fed Chairman Bernanke and Treasury Secretary Geithner will appear before the House Financial Services Committee to testify about the bankruptcy of Lehman Brothers at 11:00 AM ET. Prepared comments from the speech have already been released.

06:20 am : S&P futures vs fair value: +6.10. Nasdaq futures vs fair value: +7.50.

06:20 am : Nikkei...10900.68...-8.10...-0.10%. Hang Seng...21623.28...+218.20...+1.00%.

06:20 am : FTSE...5756.31...+28.40...+0.50%. DAX...6200.10...+37.80...+0.60%.

Special thanks to Yahoo! Finance and CNNMoney for their market summaries. gm

Best Regards,
M.A. Perry
Trader and Founder of WRB Analysis (wide range body analysis)
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