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 Post subject: September 24th Friday 2010 Emini TF ($TF_F) points +2.60
PostPosted: Sat Sep 25, 2010 7:12 am 
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Special thanks to Bloomberg, CNNMoney and Yahoo! Finance for their market summaries. gm

Bloomberg Video Summary @ http://www.youtube.com/watch?v=BGXuQ-vfDyY
U.S. Stocks Rally as Durable Goods Orders Beat Forecast
Sept. 24 (Bloomberg) -- Bloomberg's Courtney Donohoe reports on the performance of the U.S. equity market today. Stocks rallied, sending the Standard & Poor's 500 Index to a four-month high, after a rebound in demand for capital goods and better-than-estimated
earnings at Nike Inc. eased concern that the economic recovery is faltering. Bloomberg Businessweek's Roben Farzad also speaks.

The Bulls Are Back: Stocks Surge 2%
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By Hibah Yousuf, staff reporter
September 24, 2010: 5:02 PM ET

NEW YORK (CNNMoney.com) -- U.S. stocks rallied right out of the gate and didn't look back Friday afternoon as investors grabbed onto a slightly stronger report on durable goods orders, and as gold touched a record high above $1,300 an ounce.

All three major indexes closed at their highest levels in four months and finished with gains for the fourth straight week, their longest winning streaks since April.

The Dow Jones industrial average (INDU) surged 198 points, or 1.9%, with all 30 components of the blue-chip index higher. The blue-chip index closed the week up 2.4%, and is on track to rally 8.4% for the month. That would make this month the Dow's best September since 1939.

The S&P 500 (SPX), which is also on track for its best September since 1939 thanks to a 9.5% rise so far, jumped 24 points, or 2.1%. A whopping 98% of its components posted gains, including Nike (NKE, Fortune 500), which rose to an all-time high near $82 a share.

The tech-heavy Nasdaq (COMP) surged 54 points, or 2.3%. Shares of Apple (AAPL, Fortune 500) and Amazon (AMZN, Fortune 500) continued to rally to all-time highs. The index is up 12.6% for the month.

"The better-than-expected report on orders for durable goods, particularly the nice rebound in goods excluding transportation, further confirms that a double-dip recession is not likely any time in the immediate future," said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research.

He added that healthy earnings from Nike and KB Home (KBH) reassured investors and helped boost enthusiasm.

Stocks climbed early in the week as the S&P 500 index crossed key technical levels, but fell into a slump in recent trading sessions.

* $1,300? Some say gold may hit $2,300!

"All this week, we've seen maybe some nervous markets, concerned about the stuttering economic recovery," said David Jones, chief market strategist at IG Markets. "But overall, I think they're still bullish. Maybe the weakness over the last couple of days was a bit overdone."

The durable goods report was driving the market Friday because investors are seizing upon "any positive sentiment for the market right now," said Hamed Khorsand, analyst at BWF Financial.

Wall Street had a rough session Thursday, ending with a late-stage slide. Investors have been fleeing risky stocks in favor of safe-haven investments like gold, fueling the precious metal's recent record run.

Economy: The government said durable goods orders, a measure of manufacturing, fell 1.3% in August after slipping 0.7% in July. That was a hair better than the 1.4% decline economists had forecast. Durable goods orders are orders on products meant to last at least three years, such as cars and computers.

New home sales remained at the second-lowest level on record in August at an annual rate of 288,000, the government reported. Economists had expected sales to bump higher. The data come a day after existing home sales came in slightly above expectations.

Companies: KB Home reported a third-quarter loss of 2 cents per share. That was much better than the 15-cent loss forecast by analysts. Revenue rose more than 9% year-over-year to $501 million, marking the first year-over-year increase in four years. The stock jumped 3.4%.

After the closing bell Thursday, Nike reported an 8% rise in quarterly revenue to more than $5 billion as new orders jumped 10%. In China, orders surged 25%, and orders in emerging markets rose 21%. The stock rose 2.5%.
0:00 /0:57Nike jumps ahead

HSBC (HBC) chief Michael Geoghegan is poised to leave the bank as part of a management shake-up, according to published reports. The company's stock climbed 1.7%.

Market breadth: On the New York Stock Exchange, winners topped losers by five to one on trading volume of 1.1 billion shares. On the Nasdaq advancers topped decliners four to one on 1.4 billion shares.

World markets: European shares recovered from their declines earlier in the day to close higher. Britain's FTSE 100 rose 0.9% while Germany's DAX and France's CAC 40 jumped by almost 2%.

In Asia, Japan's Nikkei index tumbled nearly 1%. The Shanghai Composite and Hang Seng in Hong Kong ended the day with slight gains.

Currencies and commodities: The dollar fell against other currencies, including the British pound, the Japanese yen and the euro.

Gold futures for December delivery reached a record trading high Friday morning, fueled by recovery jitters and currency market volatility. Prices reached an intraday trading high of $1,301.60 an ounce before backing off. Gold prices settled up $1.80 at $1,298.10 an ounce.

The price of oil for November delivery rallied 1.31 cents, or 1.7%, to settle at $76.49 per barrel.

Bonds: The price of the 10-year note fell, pushing up the yield to 2.61%.

Image

Yahoo! Finance

4:30 pm : The week ended on a high note as broad-based buying gave stocks their biggest single-session bounce in two weeks. Despite the heady hike higher, the S&P 500 only added fractionally to its four-month high.

A positive had already permeated trade ahead of the open, but the morning mood improved further with the release of August durable goods orders. Overall orders fell 1.3% for the worst monthly drop in one year, but that is actually less severe than the 1.4% decline that had been expected, on average, among economists polled by Briefing.com. Excluding transportation, orders spiked 2.0%, which is much better than the 0.6% increase that had been widely anticipated.

New home sales numbers for August came in at an annualized rate of 288,000 units, or unchanged month-over-month, as had been widely expected.

The broader market was generally unmoved by the in-line home sales numbers, but homebuilders were able to add to gains that had already by supported by better-than-expected earnings from KB Home (KBH 12.11, +0.40).

Nike (KNE 79.57, +1.90) was also out with an upside earnings surprise. The company complemented that with news of strong futures orders.

Shares of NKE and KBH helped drive the consumer discretionary sector to a 2.6% gain, which made it one of the session's strongest sectors. Of course, every sector benefited from a broad-based bid helped collectively lift the overall market, such that 97% of the names in the S&P 500 staged gains.

Even amid such broad strength the stock market couldn't do anything more than fractionally extend its four-month high past the levels that were set when the FOMC issued its latest policy statement earlier this week.

The FOMC statement pledged to provide additional accommodation if it is needed to keep the economy from relapsing into another recession, but continued concern about macro threats and the idea that the Fed has run out of tools has kept many on the sidelines. In turn, trading volume remains unimpressive as it barely broke 1 billion shares on the NYSE for the fourth time this month.

While stocks were strong the dollar dropped 1.1% to set a new seven-month low against competing currencies. Most of its weakness is owed to renewed support for the euro, which rallied on the back of Germany's latest IFO Business Climate Survey. The Survey was essentially unchanged month-over-month at two-year highs.

Advancing Sectors: Industrials (+2.8%), Financials (+2.8%), Consumer Discretionary (+2.6%), Materials (+2.4%), Energy (+2.2%), Tech (+2.1%), Utilities (+1.6%), Health Care (+1.4%), Consumer Staples (+1.3%), Telecom (+0.9%)
Declining Sectors: (None)DJ30 +197.84 NASDAQ +54.14 NQ100 +2.1% R2K +3.4% SP400 +2.5% SP500 +23.84 NASDAQ Adv/Vol/Dec 2147/2.01 bln/509 NYSE Adv/Vol/Dec 2510/1.07 bln/540

3:30 pm : Commodities generally had a strong session, which saw the CRB Commodity Index climb 1.3% to a new eight-month high.

Silver was among the best performers. The precious metal ascended to a new 30-year high of $21.48 per ounce before easing back to $21.42 per ounce to settle with a 1.0% gain.

Gold prices pushed to a new record higher of $1299.70 per ounce, but eased back to close pit trade at $1297.70 per ounce with a 0.1% gain.

Crude oil prices spiked 1.7% to settle pit trade at $76.44 per barrel, which marks its weekly closing high.

In contrast to many other commodities, natural gas was weak. The energy component dropped 3.4% to close the day at $3.88 per MMBtu. DJ30 +18.41 NASDAQ +48.85 SP500 +22.40 NASDAQ Adv/Vol/Dec 2110/1.60 bln/522 NYSE Adv/Vol/Dec 2491/732 mln/525

3:00 pm : The S&P 500 recently added to its gains to fractionally extend its four-month high. Still, stocks have yet to make any real attempt to push through upside resistance.

Small-cap stocks have hardly had to slow their ascent this session. Strong buying among those issues has the Russell 2000 up 3.1% at the moment. Tibco Software (18.25, +1.88) is one of the best performers in the Russell 2000 following its better-than-expected earnings announcement. The stock is also one of the most actively traded by volume within the Small-Cap Index. DJ30 +194.24 NASDAQ +49.50 SP500 +23.10 NASDAQ Adv/Vol/Dec 2092/1.45 bln/536 NYSE Adv/Vol/Dec 2506/667 mln/506

2:30 pm : Stocks continue to move steadily along session highs with robust gains, but share volume remains unimpressive. The lack of participation in recent weeks suggests that retail investors remain uninspired and even leery of the stock market, which remains vulnerable to both corporate headllines and macro events, which have been of primary concern since the 18-month recession that ended in June 2009. DJ30 +188.22 NASDAQ +46.95 SP500 +22.27 NASDAQ Adv/Vol/Dec 2076/1.34 bln/549 NYSE Adv/Vol/Dec 2503/610 mln/500

2:00 pm : Broad-based strength has failed to benefit for-profit education providers and services stocks. The group had garnered support earlier in the session as news circulated that U.S. lawmakers have delayed their ruling on gainful employment. Many of the names have since retreated, though. As such, Corinthian Colleges (COCO 6.38, -0.12) and Career Education (CECO 20.87, -0.89) are in the red while Apollo Group (APOL 50.87, +0.08) clings to a slight gain.

Despite recent weakness among education services plays, the consumer discretionary sector is up 2.5%, which not only puts it out in front of the broader market, but also makes it one of the strongest sectors this afternoon. DJ30 +183.68 NASDAQ +46.28 SP500 +22.37 NASDAQ Adv/Vol/Dec 2060/1.23 bln/541 NYSE Adv/Vol/Dec 2501/562 mln/501

1:30 pm : Shares of retailers are up a collective 2.8%. The spike comes amid leadership from Office Depot (ODP 4.63, +0.24), which has been a topic of takeover speculation. In contrast to many of other retailers, Bed Bath & Beyond (BBBY 43.39, -0.01) has failed to stage a gain. Its weakness comes after better-than-expected earnings and strong guidance helped the stock outperform in the prior session. DJ30 +188.00 NASDAQ +47.08 SP500 +22.39 NASDAQ Adv/Vol/Dec 2044/1.11 bln/535 NYSE Adv/Vol/Dec 2492/512 mln/492

1:00 pm : Stocks fell for three straight sessions, but buyers have stepped in to provide a broad-based bid. Better-than-expected data has helped the tone of trade, but the stock market has had a hard time pushing past resistance at its weekly high.

The S&P 500 fell in the three previous sessions for a cumulative loss of about 1.6%, but buyers showed an early willingness to get back into the action. Their support even preceded the latest dose of domestic data, which featured both durable goods orders and new home sales.

August durable goods orders fell 1.3% for the worst monthly drop in one year, but the downturn was actually less severe than the 1.4% decline that had been widely expected among economists polled by Briefing.com. Excluding transportation, orders made a surprisingly strong 2.0% increase - the consensus had called for a pickup of just 0.6%.

A positive response to the durable goods orders helped stocks start the session on a strong note. A flurry of early buying quickly drove the major indices up more than 1%.

New home sales for August were released shortly after the open. They hit an annualized rate of 288,000 units, unchanged from the prior month. That essentially matched expectations.

Though the broader market was generally unmoved by the in-line home sales data, homebuilders extended their advance and are now up 3.6%. Better-than-expected earnings from KB Home (KBH 12.15, +0.44) have also bolstered support for the sector.

The stock market has since made its way toward the 1148 line, which marks the four-month high that was set earlier this week when the FOMC issued its latest policy statement. However, stocks have had difficulty pushing through that level, though broad support has about 98% of the names in the S&P 500 in higher ground.

While the stock market is up 2%, Treasuries haven't endured too much selling. In fact, the benchmark 10-year Note is down just 13 ticks, which has been enough to take its yield back to 2.60% after it was at a three-week low of less than 2.50% just yesterday morning.

The dollar continues to contend with stiff selling, though. It was last quoted with a 0.9% loss against competing currencies. DJ30 +192.42 NASDAQ +47.52 SP500 +22.42 NASDAQ Adv/Vol/Dec 2041/1.04 bln/530 NYSE Adv/Vol/Dec 2480/480 mln/487

12:30 pm : Stocks are drifting sideways in a tight range along their session highs. The steady action comes as participants show an interest in moving back into stocks following three straight sessions of losses, but a bit of shyness has caused the broader market to pause in the face of resistance near four-month highs. Nonetheless, the tone of trade remains strong as some 98% of the names in the S&P 500 sport gains. DJ30 +177.25 NASDAQ +44.31 SP500 +21.28 NASDAQ Adv/Vol/Dec 2029/920 mln/523 NYSE Adv/Vol/Dec 2465/435 mln/491

12:00 pm : A gradual climb by stocks recently stalled just shy of the S&P 500's weekly peak around 1148, which also marks a four-month high. Stocks set the high earlier this week when the FOMC issued its latest policy statement, which included a pledge to provide additional accommodation if it is needed to keep the economy from relapsing into another recession. DJ30 +175.36 NASDAQ +44.33 SP500 +21.18 NASDAQ Adv/Vol/Dec 2017/840 mln/500 NYSE Adv/Vol/Dec 2458/395 mln/473

11:30 am : Broad-based strength continues to support the major equity averages. As has been the case all session, the 10 major sectors that make up the S&P 500 are in higher ground. Only telecom (+0.8%) has failed to make a gain of at least 1%.

Consumer discretionary stocks make up the best performing sector. Collectively, they are up 2.5%. The sector's strength is broad as 80 of its 81 members sport gains. Office Depot (ODP 4.61, +0.22) and DeVry (DV 47.00, +2.26) are currently leaders in the space, while International Game Tech (IGT 13.98, -0.20) is the only name that has failed to stage a gain. DJ30 +175.32 NASDAQ +43.83 SP500 +21.18 NASDAQ Adv/Vol/Dec 2025/730 mln/470 NYSE Adv/Vol/Dec 2474/350 mln/426

11:00 am : Stocks have moved another leg higher to set fresh session highs. In doing so they are approaching the multi-month highs that were set earlier this week amid the latest FOMC policy statement.

Even amid impressive, broad-based gains, semiconductor stocks are outperforming for the second straight session. As such, the Philadelphia Semiconductor Index is up 3.2% today. That move puts it at a one-month high and above its 50-day moving average for the first time since early August.

Volatility is down sharply amid this session's advance. Specifically, the Volatility Index is down 8% in its sharpest drop in three weeks. DJ30 +177.67 NASDAQ +14.99 SP500 +20.63 NASDAQ Adv/Vol/Dec 2002/590 mln/447 NYSE Adv/Vol/Dec 2468/295 mln/415

10:35 am : November natural gas is trading lower this morning after falling sharply a few hours ago. Currently, the energy component is the worst performing commodity in the CRB Commodities Index and is down 2.6% at $4.05 per MMBtu.

Also, natural gas is only one of two commodities that are trading lower of the 19 components of the CRB Index, while the rest of the group is trading higher due to weakness in the US Dollar Index, which is trading near session lows of 79.33.

November crude oil moved back into positive territory at 7:00am ET and has remained there since. Crude rallied approx. $1 an hour ago and pushed to new session highs of $76.35 per barrel and is currently just below that level at 76.26 per barrel, up 1.4%.

Precious are also trading higher with December gold, the most active gold futures contract, hitting new all-time highs of $1301.60 per ounce. Currently, Dec gold is just above the unchanged line at $1300.00 per ounce. December silver is currently 1.1% higher at $21.44 per ounce.DJ30 +185.54 NASDAQ +39.09 SP500 +21.00 NASDAQ Adv/Vol/Dec 1962/442.6 mln/421 NYSE Adv/Vol/Dec 2486/230.0/362

10:00 am : The stock market recently paused to take a bit of a breather from its opening climb. It hasn't shown any real reaction to the release of the latest new home sales numbers.

New home sales for August were unchanged from the prior month. That put them at an annualized rate of 288,000 units, which is in stride with the rate of 291,000 units that had been widely expected.

Shares of homebuilders have seen an uptick with the data's release. The space is now up 2.2%. Initial strength stemmed from better-than-expected earnings from KB Home (KBH 12.15, +0.44) . DJ30 +152.99 NASDAQ +33.58 SP500 +17.02 NASDAQ Adv/Vol/Dec 1906/270 mln/366 NYSE Adv/Vol/Dec 2440/150 mln/318

09:45 am : The major equity averages are climbing sharply higher in the first few minutes of trade. The charge has been broad based with all 10 major sectors in positive territory -- seven of them are up by at least 1%. However, the stock market isn't quite at the highs that it set earlier this week.

Financials, which have lagged in the past couple of sessions, are early leaders. The sector has rallied ahead to a 2.0% gain. Most of that move is owed to strength in diversified banks (+2.3%) and regional banks (+2.2%). DJ30 +165.90 NASDAQ +36.79 SP500 +18.27 NASDAQ Adv/Vol/Dec 1910/161 mln/273 NYSE Adv/Vol/Dec 2447/102 mln/242

09:15 am : S&P futures vs fair value: +13.00. Nasdaq futures vs fair value: +24.00. Better-than-expected durable goods orders data for August have helped support a strong relief bid following three straight losses, the stock market's longest losing streak in about a month. Still to come are new home sales numbers for August (10:00 AM ET) and speeches from regional Fed Presidents Jeffrey Lacker (1:00 PM ET) and Charles Plosser (2:00 PM ET). Pressure against the greenback has the Dollar Index down 0.9% to a new seven-month low. Most of the latest loss is owed to strength in the euro, which bounced with the release of Germany's IFO Business Climate Index. The Index held steady near 106.8 for September. Despite the data's positive impact on the euro, Europe's bourses had been mixed until U.S. stocks started to show strength. Asia's major averages already settled with mixed results overnight, while the yen is flat against the dollar following some speculation about more intervention.

09:05 am : S&P futures vs fair value: +13.10. Nasdaq futures vs fair value: +24.00. Futures for the S&P 500 are at morning highs. The strength of premarket action has helped improve tone of trade in Europe, where Germany's DAX is now up 1.0% after it was in the red for most of the morning. Advancing issues now outnumber decliners by 2-to-1 with Adidas, Daimler (DAI), and BMW out in front of the action. As for data, Germany's Import Price Index for August increased 0.2% after a 0.2% decline in July. The German IFO Business Climate reading for September came in at 106.8, virtually unchanged month-over-month. France's CAC is up 1.1% at the moment. Societe Generale, BNP Paribas, and Credit Agricole are leaders at the moment. Second quarter GDP data was revised upward to reflect 0.7% growth after growth of 0.2% in the first quarter. In Britian, the FTSE is up 0.6%. HSBC (HBC) and Standard Chartered are leaders at the moment. Rio Tinto (RTP) is also strong, but Anglo American is under pressure following a downgrade by analysts at UBS.

Japan's Nikkei reopened from holiday to some whipsaw trade before it settled with a 1.0% loss. Kyocera (KYO) and Fast Retailing led the slide, but action seemed to follow the yen, which was recently flat against the greenback. The yen's swings came amid speculation that Japanese authorities intervened in the currency for a second time, though there has been no confirmation. Hong Kong's Hang Seng advanced 0.3%. Hong Kong Exchange and Industrial & Commercial Bank were leaders. HSBC hampered action. China's Shanghai Composite remained closed, but the China MNI Business Condition Survey for September improved to 69.5 from 62.2 in the prior month.

08:35 am : S&P futures vs fair value: +10.00. Nasdaq futures vs fair value: +19.50. Stock futures had added to their gains in the minutes leading up to August durable goods orders data, which were just released at the bottom of the hour, then climbed another leg higher with the data's release. Overall durable goods orders for August fell 1.3%, but that is actually softer than the consensus call for a 1.4% decrease among economists polled by Briefing.com. Excluding transportation, orders actually increased 2.0%, which is much stronger than the expected increase of 0.6%.

08:00 am : S&P futures vs fair value: +5.10. Nasdaq futures vs fair value: +12.30. Stock futures are up nicely this morning. Corporate news flow remains light, though Nike (NKE) reported better-than-expected earnings and impressive growth in futures orders. Coming up at 8:30 AM ET are durable goods orders figures for August. New home sales numbers for August follow at 10:00 AM ET. Richmond Fed President Lacker is scheduled to speak at 1:00 PM ET. Philadelphia Fed President Plosser speaks at 2:00 PM ET. The dollar is down markedly against the euro, but Europe's major bourses are mixed at the moment. The latest data out of Europe showed that import prices in Germany increased 0.2% in August and the German IFO Business Climate Index held steady near 106.8 for September. France's second quarter GDP was revised slightly higher to reflect 0.7% growth. Asia's major averages were also mixed overnight. China's MNI Business Condition Survey for September increased to 69.5.

06:50 am : S&P futures vs fair value: +3.30. Nasdaq futures vs fair value: +10.30.

06:50 am : Nikkei...9471.67...-94.70...-1.00%. Hang Seng...22119.43...+71.70...+0.30%.

06:50 am : FTSE...5529.36...-17.70...-0.30%. DAX...6158.16...-26.60...-0.40%.

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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