TheStrategyLab.com Price Action Trading Support Forum

Forum for price action traders that want to learn WRB Analysis basic tutorial chapters 1, 2 and 3 prior to purchasing our advance trade methods. Hashtags: #wrbanalysis #wrbzone #wrbhiddengap #priceaction #trading
It is currently Thu Mar 28, 2024 4:52 pm

All times are UTC - 5 hours [ DST ]




Post new topic Reply to topic  [ 1 post ] 
Author Message
 Post subject: October 5th Tuesday 2010 Emini TF ($TF_F) points +10.90
PostPosted: Tue Oct 05, 2010 11:45 pm 
Offline
Site Admin

Joined: Sat Jan 10, 2009 2:06 pm
Posts: 4335
Location: Canada
Attachment:
100510_wrbtrader_PnL_Blotter_Profit.png
100510_wrbtrader_PnL_Blotter_Profit.png [ 31.99 KiB | Viewed 310 times ]


------------------------------

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

Bloomberg Video - U.S. Stocks Rise on Service-Industry Data, Bank of Japan
Oct. 5 (Bloomberg) -- Bloomberg's Courtney Donohoe reports on the performance of the U.S. equity market today. U.S. stocks climbed, sending the Standard & Poor's 500 Index to the highest level since May, after American service industries expanded more than forecast and speculation grew that the Federal Reserve will join Japan's efforts to stoke economic growth. Bloomberg's Pimm Fox also speaks.

Stocks Surge To 5-Month Highs On Japan, Services
Attachment:
chart_ws_index_sp500final.top[1].png
chart_ws_index_sp500final.top[1].png [ 15.32 KiB | Viewed 331 times ]

click on the above image to view normal size

By Hibah Yousuf, staff reporter
October 5, 2010: 4:33 PM ET

NEW YORK (CNNMoney.com) -- U.S. stocks rallied right out of the gate and continued to surge Tuesday, with all three major indexes gaining about 2% and finishing at their highest levels since May. Investors welcomed a surprise move by the Bank of Japan to cut its key lending rate, as well as improved data for the U.S. service sector.

The Dow Jones industrial average (INDU) jumped 193 points, or 1.8%, to finish at 10,945, its highest level since May 3. Gains were broad-based as 29 of 30 Dow issues closing higher, with Boeing (BA, Fortune 500), Bank of America (BAC, Fortune 500) and DuPont (DD, Fortune 500) logging the biggest increases.

The S&P 500 (SPX) added 24 points, or 2.1%, with Harley-Davidson (HOG, Fortune 500) closing up 9.1%. The tech-heavy Nasdaq (COMP) climbed 55 points, or 2.4%. Both indexes closed at their highest levels since May 12.

Early Tuesday, Japan's central bank announced a move to lower its key interest rate to between 0% and 0.1%. It previously stood at 0.1%. The bank also said it would purchase about $60 billion of government bonds and other assets, to boost the pace of the country's recovery.

The Bank of Japan downgraded its economic forecast, but investors took the monetary policy move as a hopeful sign for the world's third-largest economy.

Investors were also encouraged after the Institute for Supply Management's index measuring U.S. service sector activity rose more than economists had forecast.

"The markets are feeling reassured after Japan's move to ease monetary policy and the fact that the service sector, which accounts for 90% of our economic activity, is stronger than we were expecting," said Jack Ablin, chief investment officer at Harris Private Bank.

U.S. stocks are coming off of a big dip on Monday, when investors were feeling cautious ahead of corporate earnings season and key employment data due later in the week. Last week, they kicked off the start of October and the fourth quarter with modest gains.
Buffett hints at bond bubble

Experts said stocks will likely continue treading water, lacking day-to-day consistency, until the upcoming reports give the market a better direction.

"The lynchpin economically is still unemployment," said Erick Maronak, senior portfolio manager at Victory Capital Management. "That's what gets people off the ledge. Some improvement there would be more than welcome by investors and non-investors alike."

Economists polled by Briefing.com expect the unemployment rate to have risen to 9.7% in September, up from 9.6% in August, when the government reports the figure Friday.

World markets: Japan's Nikkei rallied 1.5% after the Bank of Japan's decision, and the Hang Seng in Hong Kong ended the session up 0.1%. The Shanghai Composite was closed for the week-long Golden Week holiday.

European stocks also finished higher. The CAC 40 in France climbed 2.3%, while Britain's FTSE 100 rose 1.5% and Germany's DAX advanced 1.3%.

European investors welcomed better-than-expected data on the euro-zone services sector, but gains were limited by fears about Ireland's debt crisis. Moody's said Tuesday that it was considering a possible downgrade for the country.

Economy: The Institute for Supply Management's index -- measuring the nation's non-manufacturing business activity -- rose to 53.2 in September, from 51.5 the previous month. Economists were expecting the gauge to inch up to 51.8. Any number above 50 indicates growth in the sector.

Currencies and commodities: The dollar fell sharply against major currencies Tuesdays, with the dollar index touching its lowest levels since January.

The greenback sank to an 8-month low against the euro, and also slipped versus the British pound and the Japanese yen.

"There's a very bearish tone toward the U.S. dollar regardless of the broader economic conditions around the globe," said Gareth Sylvester, senior currency strategist at HIFX in San Francisco. "The market is largely fixated on the story of a weak domestic economy and therefore a weak dollar."

The dollar has been under pressure since the Federal Reserve announced it may buy long-term U.S. Treasurys to boost the economy. While the Japanese central bank announced a similar move for its economy, it didn't help curb the strength of the yen.
Currency fears drive commodities higher

Rather, the dollar fell to the lowest level against the yen since the Japanese government announced intervention, a 15-month low. News of fiscal woes in Ireland have been largely ignored as well, Sylvester said.

"The currency market has a blinkered attitude at the moment" he said. "But if upcoming economic data consistently shows that the worst of the U.S. economy has been seen, investors may start to shift focus."
0:00 /4:04Corn prices high, N.J. farmer is dry

The buck's softness has helped boost prices of commodities priced in U.S. dollars, including gold and oil.

Gold futures for December continued to run in record territory. Prices spiked $23.50 to settle at an all-time high of $1,340.30 an ounce, after reaching a fresh intraday record trading high of $1,342.60 an ounce earlier Tuesday.

The price of crude oil for November delivery rose $1.35 to settle at $82.82 per barrel.

Bonds: Prices for U.S. Treasurys rose, pushing the yield on the 10-year note down to 2.47% from 2.48% late Monday. Bond prices and yields move in opposite directions.

Image

Yahoo! Finance

4:30 pm : Stocks set fresh four-month highs as buyers provided broad support amid a steep drop by the dollar, which was sunk by speculation of further quantitative easing.

Participants first appeared uninspired by news that Australia's reserve bank left its cash rate unchanged at 4.5% after a series of rate hikes and that Japan's central bank cut its key interest rate to near zero. However, Japan's plans for a 5 trillion yen fund to purchase bonds and other asset backed securities forged the idea that the U.S. may also have in place plans for further quantitative easing.

Such a prospect weighed heavily on the dollar, which dropped 0.8% to a new eight-month low, but spurred higher almost 98% of the names in the S&P 500. The broad index settled at its best level since May.

The stock market's move to that mark was gradual. It had hesitated near key resistance levels, but got some additional support after the release of the September ISM Service Index. The Index came in at 53.2, up from the prior month and above the 51.8 that had been widely expected among economists polled by Briefing.com.

The materials sector benefited the most from this session's buying. It rallied 2.8% for its best single session advance in one month. Support for natural resource plays and basic materials stocks was augmented by a jump in commodities, which sent the CRB Commodity Index up 1.6%. Precious metals outshined as the continuous gold contract climbed close to 2% to set a new all-time high of $1340.60 per ounce and the continuous silver contract spiked more than 3% to a fresh 30-year high at $22.92 per ounce.

Adding to the impressiveness of this session's strength was robust share volume. More than 1.2 billion shares traded hands this session. That's close to what was traded during the portfolio rebalancing and window dressing at the end of the third quarter.

Advancing Sectors: Materials (+2.8%), Industrials (+2.7%), Financials (+2.4%), Tech (+2.3%), Energy (+2.3%), Consumer Discretionary (+2.1%), Health Care (+1.8%), Telecom (+1.7%), Utilities (+1.1%), Consumer Staples (+1.1%)
Declining Sectors: (None)DJ30 +193.45 NASDAQ +55.31 NQ100 +2.5% R2K +3.0% SP400 +2.1% SP500 +23.72 NASDAQ Adv/Vol/Dec 2146/2.24 bln/491 NYSE Adv/Vol/Dec 2448/1.24 bln/561

3:30 pm : Strength in commodities was largely based on the weakness in the dollar, which sold off on talks about additional quantitative easing. Precious metals (+2.8%), grains (+2.8%), and soft commodities (+1.9%) posted the best gains this session.

It was another record setting session for gold and silver, as the continuous gold contract rallied to a new all-time high at $1340.60 per ounce, while the continuous silver contract put in a fresh 30-year high at $22.92 per ounce. December gold rallied for 1.9% to finish at $1340.60 per ounce while December silver settled higher by 3.7% at $22.74 per ounce. Both metals traded to their best levels in the afternoon session and closed just shy of those highs.

Talk of more quantitative easing and the dollar's resulting weakness combined with strength in equities to support oil throughout the session. November crude oil finished higher by 2.2% at $82.82 per barrel. Crude traded to highs at $82.99 per barrel, its best levels in about one month. November natural gas ended higher by 0.5% at $3.74 per MMBtu after it stumbled midmorning. DJ30 +213.62 NASDAQ +57.59 SP500 +25.69 NASDAQ Adv/Vol/Dec 2143/1.77 bln/487 NYSE Adv/Vol/Dec 2464/826 mln/538

3:00 pm : The stock market has spent the past couple of hours moving sideways as it consolidates its gains. Volume remains strong, which suggests plenty of participation and improved conviction on the part of traders and investors.

Gains are even richer among small-cap stocks. Specifically, the Russell 2000 is up 2.9%. Its gains are also bigger on a year-to-date basis -- it is up more than 10% in 2010 while the S&P 500 is up just over 4% this year. DJ30 +198.29 NASDAQ +54.59 SP500 +23.71 NASDAQ Adv/Vol/Dec 2122/1.63 bln/496 NYSE Adv/Vol/Dec 2446/751 mln/529

2:30 pm : American Express (AXP 38.12, -0.93) is the only name in the 30-member Dow Jones Industrial Average that has fallen to a loss. The slide comes amid continued downward momentum following the stock's slump in the prior session, when the company announced it would challenge an antitrust suit from the government.

As for the rest of the financial sector, it is up 2.4%. That makes it the third best performing sector behind materials (+2.9%) and industrials (+2.8%). DJ30 +195.45 NASDAQ +52.35 SP500 +23.35 NASDAQ Adv/Vol/Dec 2118/1.50 bln/490 NYSE Adv/Vol/Dec 2448/684 mln/514

2:00 pm : The stock market is now up 2%, which makes for both a fresh session high and a fresh four-month high.

The tone of trade has been positive since the open. Early buying came largely in response to a drooping dollar, which is now down 0.9% to a new eight-month low against competing currencies.

The dollar's downturn comes as some start to question whether the Fed will implement additional quantitative easing measures now that Bank of Japan has lowered its target lending rate to near zero and has stated plans to purchase Japan's bonds and other asset backed securities. DJ30 +188.72 NASDAQ +51.52 SP500 +23.04 NASDAQ Adv/Vol/Dec 2102/1.39 bln/498 NYSE Adv/Vol/Dec 2451/635 mln/522

1:30 pm : Stocks continue their steady ascent, which has put the S&P 500 at its best level since May. The stock market is now up 4.0% year-to-date. DJ30 +178.46 NASDAQ +50.13 SP500 +22.25 NASDAQ Adv/Vol/Dec 2103/1.29 bln/474 NYSE Adv/Vol/Dec 2460/592 mln/499

1:00 pm : Broad-based buying on strong volume has helped stocks rebound from a sizable slide in the prior session to new multi-month highs.

Premarket trade was initially a bit subdued as participants appeared unimpressed by news that Japan's central bank cut its key interest rate to near zero and made plans for a 5 trillion yen fund to further ease monetary policy, and Australia's reserve bank left its cash rate unchanged at 4.5% after a series of rate hikes.

However, a drop by the dollar stirred buying, which gradually gained momentum. Stocks hesitated near key resistance levels, but successfully broke through to set fresh four-month highs following the September ISM Service Index. The ISM came in at 53.2, up more than expected from the prior month.

Buying has been wide ranging with nearly 98% of the stocks in the S&P 500 in higher ground.

Materials stocks, up 2.6%, have benefited the most from this session's bounce after they endured outsized losses in the prior session. Mosaic (MOS 61.83, +3.04) is a leader in the group, despite disappointment over the company's bottom line in the latest quarter.

Diversified metals and miners shares are up more than 4%, collectively, amid broader market support and big gains by precious metals prices. Gold prices set a new record high of $1340 per ounce and silver set a 30-year high of $22.75 per ounce.

More than a half billion shares have already traded hands on the NYSE this session. Such robust share volume hasn't been seen in a non options-expiration session for several months.

Volatility has cooled amid such strong support for stocks. The Volatility Index is currently down almost 7%. DJ30 +173.05 NASDAQ +50.08 SP500 +21.49 NASDAQ Adv/Vol/Dec 2067/1.17 bln/468 NYSE Adv/Vol/Dec 2450/540 mln/511

12:30 pm : The major averages are consolidating their gains at their session highs.

Meanwhile, precious metals continue to climb so that gold recently set a new record high of $1340 per ounce, up about 2%, and silver moved up more than 3% to set a new 30-year high of $22.75 per ounce. Amid the climb in precious metals prices and the stock market's bounce, diversified metals and miners stocks have surged 4.3% higher.

Treasuries are mixed at the moment. The benchmark 10-year Note has held tight to the neutral line so that its yield remains near 2.48%, but the 30-year Bond has fallen 20 ticks so that its yield is up to 3.74%.DJ30 +162.34 NASDAQ +47.23 SP500 +20.08 NASDAQ Adv/Vol/Dec 2051/1.07 bln/479 NYSE Adv/Vol/Dec 2442/499 mln/490

12:00 pm : Following a bit of a breather near the 1155 line, the S&P 500 has moved another leg higher. In doing so, the stock market set a fresh four-month high.

Marshal & Isley (MI 7.64, +0.53), Harley-Davidson (HOG 31.59, +2.17), and Fifth Third Bancorp (FITB 12.57, +0.67) lead the list of biggest gainers by percent. In contrast, Iron Mountain (IRM 20.74, -1.63), Colgate-Palmolive (CL 74.67, -1.75), and American Express (AXP 37.80, -1.25) are down the most. Weakness in AXP comes after the stock suffered in the prior session its worst single-session slide by percent since January. DJ30 +162.95 NASDAQ +47.71 SP500 +20.24 NASDAQ Adv/Vol/Dec 2046/980 mln/452 NYSE Adv/Vol/Dec 2442/456 mln/477

11:30 am : Stocks have paused to take a breather from their recent climb. That has left the major averages at session highs. Should the gains hold, stocks will book their best single-session advance in little more than a week.

Amid such strength, volatility has taken a dive. Specifically, the Volatility Index is down 6% in its sharpest slide since a 9% drop that came when the stock market climbed some 2% on September 24. DJ30 +131.88 NASDAQ +41.36 SP500 +17.60 NASDAQ Adv/Vol/Dec 2002/825 mln/457 NYSE Adv/Vol/Dec 2395/388 mln/499

11:00 am : Stocks have extended their rally, but the multi-month intraday high of 1157 still remains a couple of points away from the S&P 500.

Buying has been broad based since the session's open. In turn, all 10 sectors are in higher ground. Of them, eight are up by at least 1% (consumer staples and utilities are relative laggards with gains of 0.9% and 0.8%, respectively).

Materials remain out in front. The sector currently sports a 2.3% gain as natural resource plays and basic materials issues attract strong support. DJ30 +137.90 NASDAQ +42.90 SP500 +17.79 NASDAQ Adv/Vol/Dec 1973/683 mln/416 NYSE Adv/Vol/Dec 2367/327 mln/497

10:30 am : The CRB Commodity Index is up 0.7%, which has helped it recover a bit of its prior session slide. Strength in the space is broad based.

Oil prices are up 1.1% to $82.40 per barrel. The commodity was as high as $82.58 per barrel earlier.

Natural gas prices have slipped since the start of pit trade. The energy component had been as high as $3.77 per MMBtu, but it is now at $3.72 per MMBtu with a 0.2% loss.

Gold prices recently hit a new record high of $1331.50 per ounce. They were last quoted at $1330.60 per ounce with a 1.2% gain.

Silver prices are up 1.4% to $22.33 per ounce. They set a 30-year high of $22.38 per ounce earlier this morning. DJ30 +122.08 NASDAQ +37.76 SP500 +16.02 NASDAQ Adv/Vol/Dec 1883/517 mln/454 NYSE Adv/Vol/Dec 2303/253 mln/506

10:00 am : Stocks recently pushed through resistance to fresh session highs following the release of the September ISM Service Index, which came in at 53.2 amid expectations for a reading of 51.8. The S&P 500 is still several points shy of its multi-month intraday high of 1157, which was set last week.

The dollar hasn't shown much of a response to the latest bit of data, though. It is still down 0.6% to trade near multi-month lows against a basket of competing currencies.

Share volume is strong in the early going. In fact, the current pace of trade hasn't been seen on a non-options expiration session for a few months. DJ30 +104.82 NASDAQ +32.17 SP500 +13.58 NASDAQ Adv/Vol/Dec 1752/300 mln/485 NYSE Adv/Vol/Dec 2231/162 mln/492

09:45 am : Strong, broad buying in the first few minutes of trade drove the S&P 500 up to the 1150 line, but continued resistance at that point has caused stocks to pull back a bit. Gains remain solid, though.

Materials stocks, which were the worst performers in the prior session, have rallied ahead to a 1.4% gain. Mosaic (MOS 61.00, +2.21) is a leader in the group, even though the company's disappointed on its bottom line. DJ30 +77.08 NASDAQ +24.26 SP500 +9.88 NASDAQ Adv/Vol/Dec 1614/162 mln/534 NYSE Adv/Vol/Dec 2071/101 mln/556

09:15 am : S&P futures vs fair value: +10.70. Nasdaq futures vs fair value: +22.80. Stock futures have rallied during the past hour. Europe's major bourses have bounded, too. The advances coincide with a drop in the dollar and a climb by the euro - the dollar has fractionally extended its eight-month low with a 0.7% decline while the euro is now up 0.9% to trade near its six-month high relative to the greenback. The euro's advance comes in the face of mixed data from Europe, but after Australia's reserve bank left its target interest rate unchanged after a series of increases and Japan's central bank lowered its interest rate. The Bank of Japan also announced plans to purchase bonds and other asset backed securities so as to further ease monetary policy. The only piece of U.S. data due today is the ISM Service Index for September at 10:00 AM ET.

09:05 am : S&P futures vs fair value: +10.80. Nasdaq futures vs fair value: +23.30. Stock futures continue to improve their position. A positive tone has also surrounded commodities, such that the CRB Commodity Index is up 0.6%. Among the more widely watched commodities, oil prices are up 0.9% to $82.15 per barrel in the first few minutes of pit trade. Natural gas prices are up 0.6% to $3.75 per MMBtu. As for precious metals, prices for the continuous gold contract are up 1.1% to $1330 per ounce, which marks a new record high. Silver prices are up 1.3% to a fresh 30-year high of $22.33 per ounce. The big moves among precious metals come amid a drop by the dollar, which is currently down 0.6% to a new eight-month low.

08:35 am : S&P futures vs fair value: +7.70. Nasdaq futures vs fair value: +18.30. Futures for the S&P 500 are up to their best levels of the morning. Europe's major bourses have also bounced after a recent pullback. Germany's DAX is up 0.4%, which puts it back near its session high. Declining issues now have a modest edge over advancers as RWE AG tops the list of laggards and Deutsch Boerse leads the latter group. Germany's PMI Service Index for September came in at 54.9, which is down from the 57.2 that was recorded for August. France's CAC has made it to a 1.2% gain amid strong support from Total (TOT), Sanofi-Aventis (SNY), and BNP Paribas. Alstom has been a drag, however. Britain's FTSE was up 0.7%, but now it trades with a 0.4% gain. Banks like HSBC (HBC) and Standard Chartered remain leaders, along with GlaxoSmithKline (GSK) and Anglo American, but BP Plc (BP) and Prudential Plc are under pressure. Britain's PMI Services Index for September improved to 52.8 from 51.4 in August. Under a broader view, eurozone PMI Service Index for September slipped to 54.1 from 55.9 in August. Retail sales in the eurozone fell 0.4% in August after a 0.1% increase in July.

In Asia, the Nikkei climbed 1.5% after the Bank of Japan cut its benchmark overnight lending rate from 0.1% to a range of 0.0% to 0.1% and created a 5 trillion yen fund to boost liquidity via bond and asset backed securities purchases. While many had expected steps to further ease monetary policy, the announcement still stimulated buying in Japan's bonds and sent the yen lower against the dollar. The yen has since rebounded so that it is up slightly versus the greenback. Fast Retailing and Kyocera (KYO) were leaders in the latest round of trade. Hong Kong's Hang Seng advanced 0.1%, even though declining issues outnumbered advancers by almost 3-to-1. Strength in China Life Insurance, HSBC, and Hong Kong Exchange offset losses among Sun Hung Kai Properties, Cheung Kong, and Tencent Holdings, but the overall gain still wasn't enough to take the Index back to the 52-week intraday high that was set in the prior session. The Shanghai Composite remained closed for holiday observance.

08:05 am : S&P futures vs fair value: +4.80. Nasdaq futures vs fair value: +12.00. Broad-based selling sank stocks in the prior session, but a moderate bid has surfaced with the new day. Support is moderate so far, though. Corporate news remains light ahead of earnings season and the ISM Service Index for September is the only major item on today's economic calendar (10:00 AM ET). A rather mixed dose of data out of Europe has the major bourses there up with varied gains. However, Japan's Nikkei spiked 1.5%. The country's central bank cut its key interest rate to near zero and stated plans to set up a 5 trillion yen fund to purchase Japanese government bonds and other asset backed securities. Though further easing had been expected by many, buying of Japan's 10-year Bond has dropped its yield to below 0.91%. Additionally, Australia's reserve bank left its cash rate unchanged at 4.5% after a series of rate hikes.

06:50 am : S&P futures vs fair value: +4.30. Nasdaq futures vs fair value: +10.50.

06:50 am : Nikkei...9518.76...+137.70...+1.50%. Hang Seng...22639.14...+20.50...+0.10%.

06:50 am : FTSE...5566.68...+10.70...+0.20%. DAX...6135.15...+1.00...0.00.

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

Phone: +1.708.572.4885
Business Hours: 8am - 5pm est (Mon - Fri)
Skype Messenger: kebec2002
questions@thestrategylab.com
Go Back To TheStrategyLab.com Homepage


Top
 Profile  
 
Display posts from previous:  Sort by  
Post new topic Reply to topic  [ 1 post ] 

All times are UTC - 5 hours [ DST ]


Who is online

Users browsing this forum: No registered users and 3 guests


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot post attachments in this forum

Search for:
Jump to:  
cron
Powered by phpBB © 2000, 2002, 2005, 2007 phpBB Group
Translated by Xaphos © 2007, 2008, 2009 phpBB.fr