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 Post subject: July 20th Tuesday 2010 Emini TF points (no trades)
PostPosted: Tue Jul 20, 2010 11:11 pm 
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Location: Canada
Trade Journal Notation: I didn't trade today due to schedule annual family physicals for the kids, spouse and I. It's an all day event with blood tests, urine tests and more in-depth tests (e.g. ekg for spouse and I). Will be back tomorrow and I know I missed a nice trend day today to the upside after reviewing the charts late this evening. :(

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U.S. Stocks Rise as Homebuilders, Materials Shares Rally
July 20 (Bloomberg) -- Bloomberg's Courtney Donohoe reports on the performance of the U.S. equity market today. Stocks rose for a second day, erasing earlier losses as speculation the Federal Reserve will take steps to spur lending and an increase in building permits sent homebuilders and commodity producers higher @ http://www.youtube.com/watch?v=yOuUmzL1jDQ

Wall Street Stages A Comeback
By Ben Rooney, staff reporter
July 20, 2010: 5:09 PM ET

NEW YORK (CNNMoney.com) -- Stocks closed higher Tuesday, recovering from steep loses earlier in the session, as investors looked forward to earnings from Apple and speculated about possible moves by the Federal Reserve.

The Dow Jones industrial average (INDU) rose 75 points, or 0.7%. The S&P 500 (SPX) index rose 12 points, or 1%, and the Nasdaq (COMP) composite gained 24 points, or 1%.

Stocks plunged at the open and struggled for most of the morning as investors digested a big drop in quarterly earnings from Goldman Sachs and a lower profit outlook from Johnson & Johnson. Weaker-than-expected revenues from IBM also weighed on the market.

But the tone improved in the afternoon on chatter that the Fed is considering additional steps to encourage bank lending. Ben Bernanke, chairman of the U.S. central bank, is scheduled to testify before Congress on Wednesday.

"That's all speculation," said Dave Rovelli, managing director of U.S. equity trading at Canaccord Adams. "I think it's more Apple and Goldman rallying and taking the market up with it."

Shortly after the market closed, Apple (APPL) reported its best quarterly results on record due to strong Macintosh sales and overwhelming demand for its iPad device.

Apple said sales rose to a record $15.7 billion in the most recent quarter, up 61% from the same period last year. Net income rose to $3.25 billion, up 78% from a year ago.

Shares of Apple continued to rally, gaining 4% in extended trading.

Also after the close, Yahoo (YHOO, Fortune 500) said its second-quarter net income rose 51% versus the same period last year. The Internet company said sales rose 2% to $1.6 billion, which beat analysts' forecast of $1.16 billion. But shares fell nearly 5% in extended trading.

Investors have been focused on quarterly results, with over 120 companies due to report this week.

While earnings have been relatively strong so far, investors are looking for sales and revenue growth to confirm that profits are due to improved economic conditions and not cost-cutting measures.

Concerns that the U.S. economy could dip back into recession later this year have kept the market range-bound since April. A dour report released Tuesday on initial construction of new homes in June added to the economic jitters.

"People are very concerned about growth in the second half," said Ryan Larson, head of U.S. equity trading at RBC Capital Markets. "That's going to be key to sustaining any rally coming out of earnings season."

Stocks ended Monday's session with gains, although economic worries tempered positive earnings results.

Companies: After the market closed, BP (BP) announced plans to sell $7 billion worth of assets to Apache Corp. The sale of assets in the United States, Canada and Egypt is part of a plan to raise money to cover costs related to the oil spill in the Gulf of Mexico.

Goldman Sachs (GS, Fortune 500) said profit fell 82% in the second quarter to $613 million, due to a slowdown in the bank's trading business. Results were also hurt by a bonus tax in the United Kingdom and the $550 million settlement Goldman reached with the Securities and Exchange Commission. Shares gained about 2%.

Drugmaker Johnson & Johnson (JNJ, Fortune 500) fell more than 2% after the company lowered its full-year earnings estimate to a range between $4.65 to $4.75 a share, compared with earlier guidance of $4.80 to $4.90 a share.

For the second quarter, J&J said it earnings rose 7% to $1.23 a share from $1.15 a share in the same period last year.

J&J also said it has received a grand jury subpoena and is cooperating with a federal investigation stemming from multiple recalls of its popular non-prescription drugs.
What Bill Gross sees coming

Harley-Davidson (HOG, Fortune 500) soared over 13% after the motorcycle maker said it earned 59 cents a share, versus expectations for 41 cents a share.

Shares of Toyota (TM) fell 1.4% after the automaker said it was cooperating with a subpoena from a U.S. federal grand jury for documents related to steering problems in its vehicles.

IBM (IBM, Fortune 500) fell 2.5% after the company reported late Monday second-quarter earnings that beat expectations, while sales growth was weaker than expected.
0:00 /2:22Apple stock caught in 'death grip'

Economy: Housing starts fell to their lowest level of the year in June, down 5% to an annual rate of 549,000. But building permits showed surprising strength, climbing 2.1% to an annual rate of 586,000.

Economists surveyed by Briefing.com had expected starts to come in at an annual rate of 575,000, according to consensus estimates. Building permits were forecast have dipped to an annual rate of 572,000.

Separately, a monthly report from the Labor Department showed that unemployment eased in more than half of U.S. states in June.

A total of 39 states and the District of Columbia posted unemployment rate decreases in June, while jobless rates rose in five states and remained unchanged in six states.
Retiring? What to do with your 401(k)

World markets: European shares ended lower. The FTSE 100 in Britain lost 0.2%, France's CAC 40 slid 0.5% and Germany's DAX fell 0.7%.

Asian markets ended mixed. The Shanghai Composite rallied 2.2% but Japan's Nikkei tumbled 1.2%. The Hang Seng in Hong Kong added 0.9%.

Dollar and commodities: The dollar was up against the euro, the British pound and the Japanese yen.

U.S. light crude oil for August delivery edged up 78 cents to settle at $75.53 a barrel. The September contract, which becomes active Wednesday, rose 85 cents to $77.75 a barrel.

COMEX gold's August contract rose $10 to $1,192.20 per ounce.

Bonds: Treasury prices rose, pushing the yield on the 10-year note down to 2.93% from 2.96% late Monday. Bond prices and yields move in opposite directions.

Image

Yahoo! Finance

4:30 pm : The stock market turned a 1% loss into a 1% gain Tuesday. The swing wasn't inspired by any particular piece of news, but came gradually as sellers slowed their efforts in the face of technical support, which eventually gave way to short covering.

Stocks started the session under stiff pressure as another round of earnings results failed to inspire buyers. IBM (IBM 126.55, -3.24) was atop the list of disappointments as the company's top line came in lighter than many had expected and the company made an underwhelming increase to its earnings outlook. Those offenses overshadowed a better-than-expected bottom line.

In-line earnings left fellow tech outfit Texas Instruments (TXN 24.77, -0.78) without any support, though it issued upside guidance. A broadly improved tone among traders helped the rest of the semiconductor space finish flat after it had been down roughly 3% early on.

Health care stocks made up the only sector that failed to find higher ground by the session's end. Instead, the sector settled with a 0.2% loss. The group was dragged down after Dow component Johnson & Johnson (JNJ 58.58, -0.99) posted in-line earnings and issued a downside forecast.

Goldman Sachs (GS 148.91, +3.23) was able to attract renewed support after a weak start that came in response to broader market weakness and a muddled quarterly report that featured a smaller-than-expected revenue figure.

Materials stocks sprinted 2.9% higher to book the best gains. The sector was led by steel stocks and diversified metals and miners names, both of which advanced 5.6%. Such strength came after Moody's said that Japan's steel industry conditions are improving and analysts at UBS upgraded shares of Schnitzer Steel (SCHN 47.15, +4.79).

The broader market's climb spanned nearly the entire session. A base appeared to be made after the S&P 500 had retraced 50% of its move to recent highs and hit a key sloped support line.

Once stocks pushed into positive territory, many bets against the market had to be covered. Such short covering acted as a catalyst for the stock market's last leg higher.

A pullback by the greenback also provided some support to the broader market. It had been up 0.5% before it pulled back to the neutral line. However, it never did dip into negative territory and settled with a 0.2% gain against a basket of competing currencies.

The only data for the day featured a 5.0% month-over-month decline in housing starts for June. That took starts to an annualized rate of 549,000 units, which is below the annualized rate of 575,000 units that had been widely expected. In contrast, building permits for June increased 2.1% month-over-month to an annualized rate of 586,000, which is above the annualized rate of 572,000 units that had been widely expected.

Advancing Sectors: Materials (+2.9%), Energy (+1.9%), Industrials (+1.6%), Consumer Discretionary (+1.5%), Consumer Staples (+1.5%), Financials (+1.2%), Utilities (+0.8%), Tech (+0.8%), Telecom (+0.3%)
Advancing Sectors: Health Care (-0.2%) DJ30 +75.53 NASDAQ +24.26 NQ100 +1.2% R2K +1.8% SP400 +1.5% SP500 +12.23 NASDAQ Adv/Vol/Dec 1841/1.95 bln/765 NYSE Adv/Vol/Dec 2458/1.13 bln/559

3:30 pm : Energy lead all sectors of the CRB Commodities Index higher today, with a 0.9% move to the upside. A reversal in the equity markets helped Sept crude oil futures extend their rally into the late afternoon session. They closed higher by 0.8% to $77.52 per barrel. Aug natural gas finished up 1.8% to $4.591 per MMBtu, after it traded back towards highs in an afternoon rally of its own.

Aug gold closed higher by 0.8% to $1191.70 per ounce, while Sept silver finished up 0.9% to $17.693 per ounce. Both precious metals traded to their best levels in morning trade and spent the remainder of the session chopping around just shy of their respective highs DJ30 +51.85 NASDAQ +14.37 SP500 +9.43 NASDAQ Adv/Vol/Dec 1495/1.5 bln/1086 NYSE Adv/Vol/Dec 2254/778.3 mln/720

3:00 pm : The stock market has entered into a relatively narrow trading range. Though that has kept stocks in positive terrtiroy, it has made for rather lackluster action.

Heading into the final hour of trade, Wal-Mart (WMT 50.82, +1.29), Caterpillar (CAT 66.35, +1.55), and General Electric (GE 14.90, +0.28) are the three best performers by percent gained in the Dow. IBM (IBM 126.05, -3.74), Johnson & Johnson (JNJ 58.16, -1.41), and Pfizer (PFE 14.55, -0.18) are the three worst performers by percent lost in the blue chip index. DJ30 +20.97 NASDAQ +4.11 SP500 +5.22 NASDAQ Adv/Vol/Dec 1278/1.38 bln/1294 NYSE Adv/Vol/Dec 2015/705 mln/943

2:30 pm : Stocks have eased off their session highs. The downturn momentarily put the Nasdaq back into negative territory, but it has since rejoined the Dow and S&P 500 to trade with varied gains.

Trading volume has been rather unimpressive. The lack of volume, suggests a lack of participation and, in turn, a lack of conviction among investors. DJ30 +16.54 NASDAQ +0.96 SP500 +4.33 NASDAQ Adv/Vol/Dec 1238/1.26 bln/1308 NYSE Adv/Vol/Dec 1948/633 mln/1000

2:00 pm : Stocks have not only successfully broken into higher ground, but they now sport solid gains. The move has been broad based, such that eight of the 10 major sectors in the S&P 500 now sport a gain. That comes in contrast to early action, when eight of the 10 sectors were in negative territory.

Materials stocks continue to outperform. The sector is now up 2.0%. With a 1.4% gain, energy is the next best performing sector.

Health care stocks (-0.5%) and tech stocks (-0.1%) continue to lag. DJ30 +33.45 NASDAQ +4.97 SP500 +6.25 NASDAQ Adv/Vol/Dec 1276/1.13 bln/1259 NYSE Adv/Vol/Dec 2028/567 mln/897

1:30 pm : The stock market is near its best levels of the day, but it can't quite come within reach of higher ground. Still, volatility continues to cool, such that the Volatility Index is now down almost 3% after it had been up in excess of 5% in the early going.

Treasuries are still in positive ground, but they have given up part of their gains. For instance, the benchmark 10-year Note has eased back to trade with only a gain of just a few ticks. DJ30 -47.44 NASDAQ -11.35 SP500 -3.21 NASDAQ Adv/Vol/Dec 896/990 mln/1631 NYSE Adv/Vol/Dec 1570/502 mln/1360

1:00 pm : The major market averages have spent the entire session in negative territory as earnings reports continue leave buyers uninspired.

Since earnings season made its unofficial start just over a week ago stocks have struggled to attract any sustainable support. Keeping with that theme, the major market averages have been in the red all day.

The latest round of losses stems from disappointment over a light top line and an underwhelming forecast from blue chip IBM (IBM 124.54, -5.25), even though the company beat on the bottom line. Fellow tech play Texas Instruments (TXN 24.69, -0.86) had in-line earnings and issued upside guidance, but semiconductor stocks have had to grapple with stiff selling since the start of trade. Altogether, tech stocks are down 0.9%.

Health care stocks have also been hit hard. The sector has shed 1.1% following lowered guidance from Dow component Johnson & Johnson (JNJ 58.18, -1.40).

Leading investment bank Goldman Sachs (GS 147.63, +1.95) had a slow start, but it has since rallied to a healthy gain following a somewhat muddled quarterly report that featured light revenue.

Materials stocks have been strong for the past few hours. The sector is up 1.1% as steel stocks rise in response to word from Moody's that Japan's steel industry conditions are improving and analysts at UBS upgraded shares of Schnitzer Steel (SCHN 45.11, +2.75). Even Steel Dynamics (STLD 14.05, +0.05) is in higher ground, despite an earnings miss last evening.

Strength among materials stocks has helped the broader market pare its opening loss - all three major equity averages were down in excess of 1% in the early going.

A pullback by the greenback also helped stocks lift off of their lows. The dollar is now up just 0.1% against a basket of competing currencies.

Data also did nothing to inspire buyers. Generally, housing starts for June fell more than expected, but building permits made a surprisingly strong increase. DJ30 -59.33 NASDAQ -14.39 SP500 -3.16 NASDAQ Adv/Vol/Dec 823/942 mln/1693 NYSE Adv/Vol/Dec 1422/462 mln/1492

12:30 pm : Stocks continue to drift lower in midday trade. Technology stocks and health care stocks are under the most pressure -- the sectors are down 1.1% and 1.2%, respectively. Moreover, they are two of the three heaviest sectors by market weight in the S&P 500, combining for 30% of the broader market's capitalization. DJ30 -84.61 NASDAQ -21.78 SP500 -1065.53 NASDAQ Adv/Vol/Dec 738/850 mln/1763 NYSE Adv/Vol/Dec 1253/430 mln/1635

12:00 pm : Stocks are starting to drift off of their morning highs. There doesn't appear to be any direct cause for the pullback, other than a loss of momentum.

Nonetheless, the improved tone since the start of trade has caused the Volatility Index to turn negative and trade with a 1% loss after it had been up more than 5% in the early going. DJ30 -79.77 NASDAQ -20.33 SP500 -6.16 NASDAQ Adv/Vol/Dec 721/749 mln/1757 NYSE Adv/Vol/Dec 1286/386 mln/1579

11:30 am : The stock has extended its climb so that it is now down modestly for the day. Materials stocks are out in front with an impressive 1.3% gain, which is more than twice the gain of the next best performing sector (energy, +0.6%).

The materials sector's strength continues to come from steel and metals plays, but the sector's climb has been augmented by a swing in dollar-sensitive stocks amid the dollar's downturn. The greenback now trades with only a fractional gain after it had been up as much as 0.5%. DJ30 -61.07 NASDAQ -15.74 SP500 -4.16 NASDAQ Adv/Vol/Dec 775/676 mln/1670 NYSE Adv/Vol/Dec 1368/349 mln/1454

11:00 am : Action has become rather choppy, but the stock market has made its way up to a morning high. There are still sizable losses in the broader market, though.

In the face of relatively persistent weakness airline shares have ascended to a 0.8% gain. The move follows the latest quarterly report from UAL Corp (UAUA 22.22, +1.04). Not only was the bottom line better than expected, but it marked the company's first profit since 2007. Additionally, UAL Corp and Continental (CAL 23.79, +1.01) have reached an agreement in principle regarding the transition of pilots. DJ30 -80.45 NASDAQ -20.22 SP500 -5.95 NASDAQ Adv/Vol/Dec 695/545 mln/1691 NYSE Adv/Vol/Dec 1080/280 mln/1724

10:30 am : Despite strength in the dollar index, precious metals are modestly higher, while natural gas is almost up 2%.

August crude oil, on the other hand, was seeing selling pressure partially due to today's strength in the index. Crude fell into negative territory around 6:00am ET and hit session lows of $75.65 per barrel a couple of hours ago. Crude rallied approx. $0.60 back near the unchanged line in recent trade and is currently modestly lower at $76.42 per barrel.

August natural gas traded right around the unchanged line overnight before slipping into negative territory and to morning lows of $4.48 per MMBtu. After touching that low, the energy component rallied into positive territory and new session highs of $4.60 per MMBtu and is currently 1.8% higher at $4.60 per MMBtu.

Precious metals were trading in the red this morning, but gained steam a couple of hours ago and rose into positive territory despite strength in the dollar index. August gold is currently 0.4% higher at $1187.00 per ounce, while September silver is 0.6% higher at $17.66 per ounce. DJ30 -91.95 NASDAQ -27.30 SP500 -7.83 NASDAQ Adv/Vol/Dec 595/399.3 mln/1748 NYSE Adv/Vol/Dec 838/211.7 mln/1911

10:00 am : Stocks have made a move up from their opening lows, but losses remain steep and broad. The stock market's upturn has helped the materials sector extend its advance to 0.3%. Within the materials sector, steel stocks are up an impressive 1.8% amid news that Moody's said Japan's steel industry conditions are improving and analysts at UBS upgraded shares of Schnitzer Steel (SCHN 44.53, +2.17). Even Steel Dynamics (STLD 14.21, +0.21) is in higher ground, despite an earnings miss last evening.

Advancing Sectors: Materials (+0.3%), Consumer Staples (+0.1%)
Declining Sectors: Tech (-2.1%), Financial (-1.2%), Consumer Discretionary (-1.0%), Utilities (-1.0%), Industrials (1.0%), Health Care (-1.0%), Telecom (-0.7%), Energy (-0.2%) DJ30 -99.37 NASDAQ -25.70 SP500 -7.50 NASDAQ Adv/Vol/Dec 509/250 mln/1733 NYSE Adv/Vol/Dec 678/140 mln/1988

09:45 am : Stocks are down sharply in the opening minutes of action. Weakness is widespread, but tech stocks (-2.2%) are under the most pressure as semiconductor plays slump to a loss of more than 3% even though Texas Instruments (TXN 24.23, -1.32) issued upside guidance amid in-line earnings.

Meanwhile, consumer staples stocks and basic materials stocks have managed to muster modest gains. Both sectors are up 0.1% and are the only sectors in the S&P 500 to currently sport gains. DJ30 -122.68 NASDAQ -34.08 SP500 -11.26 NASDAQ Adv/Vol/Dec 380/162 mln/1798 NYSE Adv/Vol/Dec 506/95 mln/2125

09:15 am : S&P futures vs fair value: -14.10. Nasdaq futures vs fair value: -29.10. The stock market remains on track for a sharply lower start. The weakness is largely a response to a light top line from Dow component IBM (IBM) and the tech bellwether's underwhelming increase to its outlook. Fellow blue chip Johnson & Johnson (JNJ) failed to win favor for stocks with its in-line earnings results and lowered outlook. Goldman Sachs (GS) further disappointed premarket participants with its latest quarterly report, which featured light revenue. Data has done nothing to introduce an element of support to early trade - housing starts for June fell more than expected, but building permits made a surprisingly strong increase. The euro has fallen to a 0.6% loss against the greenback, despite a series of successful debt auctions from Greece, Spain, and Ireland. Europe's major bourses have also fallen, but overnight trade in Asia was mixed as the Shanghai Composite climbed more than 2% and Japan's Nikkei was knocked to a loss of more than 1%.

09:05 am : S&P futures vs fair value: -14.10. Nasdaq futures vs fair value: -28.80.

Futures for the S&P 500 continue to trail fair value by a considerable amount. Meanwhile, Europe's major bourses are already on their way to sizable losses. Specifically, Germany's DAX is down 1.2% at the moment. Materials stocks (-1.9%) and consumer services plays (-1.7%) are under the most pressure. Adidas is currently the only name in the 30-component bourse that has managed to stage a gain. France's CAC has fallen to a 1.3% loss. Tech plays (-3.0%) have been hit with the brunt of the selling effort. In Britain, the FTSE trades with a 0.7% loss. Telecom (-2.0%) plays are down sharply, but basic materials (+0.8%) have managed to garner support. The euro has also been targeted by sellers. In turn, the currency was last quoted with a 0.6% loss against the dollar. The euro's weakness comes in the face of a few successful debt auctions from the likes of Greece, Spain, and Ireland.

In Asia, Japan's Nikkei was dropped for a 1.2% loss. The move lower was led by oil and gas plays (-3.8%). Utilities stocks (+0.5%) showed strength in the face of the slide, however. China's Shanghai Composite climbed to a 2.2% gain. There are more than 900 names in the index, but only seven of them logged losses. PetroChina (PTR) was a primary leader. In Hong Kong, the Hang Seng put together a 0.9% gain. It was led by materials plays (+3.7%), while tech plays (-1.2%) stood out for their weakness.

08:35 am : S&P futures vs fair value: -14.10. Nasdaq futures vs fair value: -29.80. Stock futures remain near their morning lows following a few mixed figures from the latest Housing Starts and Building Permits Report. Housing starts for June decreased 5.0% month-over-month to an annualized rate of 549,000 units, which is below the annualized rate of 575,000 units that had been expected, on average, by a sample of economists polled by Briefing.com. In contrast, building permits for June increased 2.1% month-over-month to an annualized rate of 586,000, which is above the annualized rate of 572,000 units that had been widely expected.

08:05 am : S&P futures vs fair value: -14.20. Nasdaq futures vs fair value: -29.30. Dow component IBM (IBM) beat earnings expectations on light revenue, and despite an increased forecast the company's outlook is still short of what Wall Street has projected. Fellow Dow component Johnson & Johnson (JNJ) reported in-line earnings and lowered its outlook. Elsewhere, Texas Instruments (TXN) reported in-line results and issued upside guidance; Whirlpool (WHR) beat expectations and raised its outlook; PepsiCo (PEP) beat earnings expectations and reaffirmed its outlook, and; United Health (UNH) beat the consensus earnings estimate and raised its outlook above what Wall Street has projected. Goldman Sachs (GS) just released its results, but its shares have slipped in premarket trade as early participants assess the report. As for broader market futures, they are under pressure and point to a lower start to trade. Still to come, though, are data on housing starts and building permits for June (8:30 AM ET).

06:56 am : S&P futures vs fair value: -12.40. Nasdaq futures vs fair value: -27.60.

06:56 am : Nikkei...9300.46...-107.90...-1.20%. Hang Seng...20264.59...+173.60...+0.90%.

06:56 am : FTSE...5113.42...-34.80...-0.70%. DAX...5943.43...-65.70...-1.10%.

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

Best Regards,
M.A. Perry
Trader and Founder of WRB Analysis (wide range body analysis)
Image@ http://twitter.com/wrbtrader and http://stocktwits.com/wrbtrader

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