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 Post subject: October 11th Monday 2010 Emini TF (No Trades)
PostPosted: Mon Oct 11, 2010 5:33 pm 
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No trades today for me due to a schedule personal day off from the markets so that I can have an extended 4 day rest from the markets (Friday, Saturday, Sunday and Monday).

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

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

Dow Holds Above 11,000
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By Ben Rooney, staff reporter
October 11, 2010: 5:13 PM ET

NEW YORK (CNNMoney.com) -- Stocks ended with slight gains Monday as investors shifted their focus towards corporate financial results.

The Dow Jones industrial average (INDU) gained nearly 3 points, or less than 0.1%, to close at 11,010 points. The S&P 500 (SPX) edged up 2 points, while the Nasdaq (COMP) gained about half a point.

The U.S. government and Treasury market were closed for Columbus Day, but all other financial markets were open. Trading volumes were light because of the holiday, and stocks traded in a narrow range for most of the session.

Stocks were supported earlier by ongoing speculation that the Federal Reserve will take additional steps to boost the economy.

But the market reversed course late Monday afternoon, as investors look ahead to quarterly financial statements due later this week from several major U.S. companies, including Intel, (INTC, Fortune 500) which reports after the closing bell Tuesday.

JPMorgan (JPM, Fortune 500) and General Electric (GE, Fortune 500) are also scheduled to release third-quarter results this week, as well as Google (GOOG, Fortune 500) and Mattel (MAT, Fortune 500).

"There's a lot ahead of us this week and not much news today to set the tone," said Nick Kalivas, vice president of financial research at MF Global. "I think people are waiting for direction."

A disappointing jobs report on Friday raised bets the Fed will announce plans to resume large-scale purchases of U.S. Treasurys when the central bank meets early next month, sending the Dow above 11,000 for the first time since May.

Economy: No major economic reports were on the agenda Monday, but a survey of leading economists showed that the outlook for growth remains dim.

Gross domestic product, the broadest measure of the economy, is expected to grow at a pace of 2.6% in both 2010 and 2011, according to a survey of 46 economists by the National Association for Business Economics. That's down from the group's previous prediction of 3.2%.

Given the lackluster prospects for growth, many investors expect the Fed to expand its policy of buying U.S. Treasurys. The goal is to pressure long-term interest rates and support the faltering economic recovery, a strategy known as quantitative easing, or QE for short.

The central bank bought billions of U.S. bonds and notes two years ago, but there has been some debate among Fed policymakers over whether to resume large-scale purchases. In August, the Fed said it would reinvest certain proceeds into the Treasury market.

Economy stinks. Why are stocks happy?

On Tuesday, the Fed will release minutes from its September meeting, but investors don't expect any announcement about additional stimulus measures until the policy makers meet November 3.

Art Hogan, chief market analyst at Jefferies & Co., said 70% of market participants are expecting the Fed to announce another round of asset purchases next month. But in the meantime, the day-to-day focus will be on corporate earnings.

Earnings: A total of 15 S&P 500 companies will open up their books this week. According to Thomson Reuters, third-quarter results are expected to be up almost 24% from the same period a year ago, while revenues are forecast to gain 7%.

Hogan said investors are particularly eager to hear what companies plan to do with their cash, which has been piling up over the last several months.

"Cash levels remain historically high," he said. "If dividends and buybacks are announced, I think that will be applauded."

Companies: Shares of Gymboree (GYMB) surged 22% after buyout firm Bain Capital announced plans to acquire the children's apparel retailer for $1.8 billion.

The New York Times Company (NYT), which has been the subject of takeover rumors this year, rose 8%.

* Video - Microsoft's latest smartphone move

Microsoft (MSFT, Fortune 500) unveiled a new line of phones running the Windows Phone 7 operating system, as the software company looks to compete with the iPhone, Android and BlackBerry smartphones.

Microsoft CEO Steve Ballmer said that Windows Phone 7 smartphones would be available in the United States on AT&T's (T, Fortune 500) network.

Apple (APPL) rose to a record high of $297.74 a share before ending the day at $295.36. The stock has been supported by ongoing enthusiasm over products such as the iPad and iPhone, as well as strong sales of Mac computers. IBM (IBM, Fortune 500) also hit an all-time trading high.

World markets: European stocks moved higher. Britain's FTSE 100 gained 0.2%, France's CAC 40 rose 0.1% and the DAX in Germany rose 0.3%.

Asian markets ended the session with solid gains. The Shanghai Composite soared about 2.5% and the Hang Seng in Hong Kong jumped nearly 1.2%. Japanese markets were closed.

Currencies and commodities: The dollar rose against the Japanese yen, the British pound and the euro.

Oil for November delivery slid 43 cents to $82.23 a barrel.

Gold futures for December delivery gained $9.10 to settle at a fresh record high of $1,354.40 an ounce.

Corn prices surged for the third straight day on the back of an unexpectedly weak crop report.

Image

Yahoo! Finance

4:30 pm : Stocks spent most of the session chopping along listlessly with modest gains until a flurry of late selling led to a flat finish.

A lack of headlines left stocks with few drivers this morning, but a modest bid helped keep the major averages in positive territory. Still, conviction appeared lacking as there was little support when stocks were tested with resistance near last week's highs. Stocks were also backed down by the greenback's gains -- the dollar advanced 0.4% against competing currencies after the yen set another new 15-year high against it overnight.

Natural resource plays showed some strength in the first few minutes of trade, but that proved fleeting when the dollar was bid higher. Energy stocks settled with a 0.1% gain and materials stocks finished with a 0.2% loss.

Tech stocks had looked strong in afternoon trade. The sector was propped up by a mix of large-cap tech plays and semiconductor stocks. Broadcom (BRCM 36.38, +0.64) was a leader in the bunch after analysts at Goldman Sachs added the name to its Conviction Buy List. The overall tech sector still finished with a fractional gain, though.

Trade was quiet for most of the session. For some stretches it even became rather boring -- for more than three hours the S&P 500 was confined to a two-point range.

Despite that, the Volatility Index (VIX) dropped more than 8% to its lowest level since late April. However, that was mostly because of a mechanical shift in the options used to calculate the VIX, rather than a calming among market participants.

The VIX was virtually unmoved by some late selling that undercut the major averages and actually took the Dow back below 11,000. A very modest bid in the final minutes helped blue chips reclaim the psychologically significant mark and made for an overall flat finish.

Trading volume on the NYSE dropped to its lowest level in one month as barely 800 million shares exchanged hands this session. That is likely owed to the combination of few trading catalysts and some traders leaving their desks for Columbus Day -- The U.S. Treasury market was closed for its observance.

Advancing Sectors: Telecom (+0.3%), Energy (+0.2%), Tech (+0.1%), Consumer Discretionary (+0.1%), Consumer Staples (+0.1%)
Declining Sectors: Industrials (-0.3%), Materials (-0.2%), Financials (-0.1%)
Unchanged: Health Care, UtilitiesDJ30 +3.63 NASDAQ +0.42 SP500 +0.15 NASDAQ Adv/Vol/Dec 1233/1.55 bln/1416 NYSE Adv/Vol/Dec 1638/824 mln/1317

3:30 pm : Strength in dollar did little of slow commodities down today, as the CRB Commodity Index finished the day higher by +0.4%. Industrials led the charge, rallying for 2.4%. The grains sector finished with a 1.8% move to the upside, with Dec corn settling higher by 5.2% to $5.56 per bushel. Friday's bullish USDA report helped corn futures extend their recent rally.

It was a quiet Monday for Nov crude oil, which settled lower by 0.5% to $82.21 per barrel. Nov natural gas closed off 0.9% to $3.61 per MMBtu, as it sold off into the close to end near its lows.

Dec gold gained 0.7% to finish at $1354.40 per ounce, while Dec silver rallied for 1% to close at $23.35 per ounce. DJ30 -5.04 NASDAQ +2.38 SP500 -0.31 NASDAQ Adv/Vol/Dec 1405/1.3 bln/1216 NYSE Adv/Vol/Dec 1711/633.5 mln/1237

3:00 pm : The S&P 500 is still up less than two points on this quiet Columbus Day. However, the Volatility Index (VIX) is down a sharp 9% to its lowest level in several months. The apparent outsized slide by the VIX comes amid a mechanical shift in the options used to calculate the VIX, rather than a drastic change in market sentiment.

Notably, the VIX measures 30-day expected volatility of the S&P 500 Index, implied by near- and next-term put and call options. Since "near-term" options must have at least one week to expiration, VIX "rolls" to the second and third SPX contract monthsand when the near-term options have less than a week to expiration. This likely explains today's move since rolling out of the October contracts, which exhibit elevated implied volatility that accounts for the third quarter earnings reports prior to this week's expiration, and into November contracts. DJ30 +8.93 NASDAQ +9.06 SP500 +1.90 NASDAQ Adv/Vol/Dec 1494/1.17 bln/1109 NYSE Adv/Vol/Dec 1859/496 mln/1072

2:30 pm : The stock market continues to chop along listlessly. That has kept it confined to a rather narrow trading range in that the S&P 500 has spent the past three hours in a two-point ban from 1166 to 1168. Though it presently makes for some rather unexciting trade, it does offer the stock market the opportunity to consolidate last week's gain, which sent the Dow above 11,000 for the first time in about five months. DJ30 +15.32 NASDAQ +9.84 SP500 +2.17 NASDAQ Adv/Vol/Dec 1462/1.07 bln/1127 NYSE Adv/Vol/Dec 1872/545 mln/1059

2:00 pm : The Nasdaq has gradually made its way to a fresh session high and its best level since mid-May. The steady advance also gives it a nice lead over its counterparts, the Dow and S&P 500.

Gains by the Nasdaq are currently led by large-cap tech plays like Apple (AAPL 296.74, +2.67), Google (GOOG 541.69, +5.34), and Intel (INTC 19.67, +0.15). DJ30 +14.03 NASDAQ +10.13 SP500 +2.10 NASDAQ Adv/Vol/Dec 1433/982 mln/1147 NYSE Adv/Vol/Dec 1883/500 mln/1053

1:30 pm : Stocks are still stuck in choppy, listless trade. Despite that, the Dow, Nasdaq Composite, and S&P 500 are still in higher ground with narrow gains.

Small-cap and mid-cap stocks are up more impressively, though. Both groups currently sport 0.5% gains, as measured by the S&P 400 and the Russell 2000. Aeropostale (ARO 26.00, +1.69) is a primary leader among mid-caps while Gymboree (GYMB 64.94, +11.99) is a leader among small-caps after it was announced that the company will be taken private by Bain Capital for $65.40 per share, which makes for a premium of close to 25% over where the stock finished last week. DJ30 +12.82 NASDAQ +9.62 SP500 +2.04 NASDAQ Adv/Vol/Dec 1387/917 mln/1166 NYSE Adv/Vol/Dec 1819/467 mln/1092

1:00 pm : Resistance and a stronger dollar have restrained buying this session, but stocks are still up with modest gains.

An absence of catalysts this morning made for a rather quiet start to the session, but stocks were still able to attract some support. However, the early bid ran into resistance when the stock market came in contact with last week's intraday high.

Stocks successfully rebounded to fractionally extend their multi-month highs, but the move proved short lived as a near simultaneous bounce by the greenback brought about some renewed selling. With the dollar up 0.4% against competing currencies, stocks have been left to chop along listlessly.

Tech, up 0.4%, has shown some strength in the face of the largely lackluster action, though. Most of the move is owed to sharp gains by semiconductor stocks, which are collectively up 1.5% ahead of tomorrow's report from Intel (INTC 19.72, +0.20). News that Broadcom (BRCM 36.87, +1.13) was placed on the Conviction Buy List at Goldman Sachs has also helped the space.

Even though there really hasn't been much leadership this session, advancing issues outnumber decliners by 2-to-1 in the broader market. That has helped take the Volatility Index (VIX) down about 8% to its lowest level since late April.

As a reminder, the U.S. Treasury market is closed in observance of Columbus Day. DJ30 +10.94 NASDAQ +8.54 SP500 +1.82 NASDAQ Adv/Vol/Dec 1324/840 mln/1213 NYSE Adv/Vol/Dec 1730/435 mln/1185

12:30 pm : Trade in the broader market remains rather unexciting as the major averages chop along with limited gains.

Tech stocks have managed to make their way to a 0.5% gain, though. The sector is currently led by Intel (INTC 19.72, +0.20), which is scheduled to report its latest quarterly results tomorrow after the close. The consensus on Wall Street calls for earnings of $0.50 per share after the company posted a profit of $0.33 per share for the same period one year ago. DJ30 +11.46 NASDAQ +7.95 SP500 +1.75 NASDAQ Adv/Vol/Dec 1277/770 mln/1261 NYSE Adv/Vol/Dec 1657/399 mln/1212

12:00 pm : Airline stocks have slipped to a 0.7% loss, as measured by the Amex Airline Index. In contrast, trucking stocks are up 1.0% and railroad stocks are up 0.7%. Strength in the latter two groups has the Dow Jones Transportation Average up 0.2%. For comparison, blue chips represented by the Dow Jones Industrial Average are up less than 0.1%. DJ30 +9.83 NASDAQ +7.19 SP500 +1.59 NASDAQ Adv/Vol/Dec 1265/698 mln/1251 NYSE Adv/Vol/Dec 1640/365 mln/1230

11:30 am : Natural resource plays like materials stocks and energy stocks had shown strength in the early going, but both sectors have since pulled back to trade with fractional gains. That has left the broader market without leadership. As such, stocks continue to lack any clear direction.

Despite the listlessness of the first couple of hours of trade, semiconductor stocks have managed to attract considerable support. As a group, semiconductor stocks and semiconductor equipment stocks are up 1.2%. Among semiconductor plays, Broadcom (BRCM 36.75, +1.01) is one of the biggest movers by percent gained; the stock was assigned to a Conviction Buy List by analysts at Goldman Sachs. DJ30 +4.88 NASDAQ +4.95 SP500 +1.04 NASDAQ Adv/Vol/Dec 1139/605 mln/1334 NYSE Adv/Vol/Dec 1558/320 mln/1283

11:00 am : The stock market recently pushed to a fresh session high, but the move proved short lived as stocks are now back at the flat line. The slip among stocks comes amid a swing higher by the greenback, which is now up 0.3% against a basket of competing currencies.

Despite the choppy action of the first leg of trade, the Volatility Index (VIX) is down more than 7%. That puts the VIX at its lowest level since late April. DJ30 +0.75 NASDAQ +2.73 SP500 +0.29 NASDAQ Adv/Vol/Dec 1027/488 mln/1397 NYSE Adv/Vol/Dec 1402/262 mln/1397

10:30 am : The tone of trade around commodities has improved alongside that of the stock market. In turn, the CRB Commodity Index is now up 0.4%, which puts it at a fresh two-year high.

Precious metals have done the most to prop up the CRB. Specifically, gold prices are up 0.4% to $1349.80 per ounce. The continuous contract had priced gold as high as $1351.50 per ounce. Meanwhile, silver prices are up 0.9% to $23.31 per ounce. The metal had been priced as high as $23.68 per ounce.

Among energy components, oil prices are still in the red. The commodity was last quoted with a fractional loss at $82.65 per barrel. Natural gas prices have improved, though; it was last quoted with a 0.1% gain at $3.65 per MMBtu after it started pit trade with a loss of its own. DJ30 +21.79 NASDAQ +9.26 SP500 +3.53 NASDAQ Adv/Vol/Dec 1198/363 mln/1169 NYSE Adv/Vol/Dec 1705/204 mln/1038

10:00 am : Resistance at last week's intraday highs caused stocks to reverse off of their opening advance. The major equity averages are now just above the flat line.

Defensive stocks had appeared to be laggards in the first few minutes of trade, but financials have since faltered to trade with a loss of their own. The sector is down just 0.1%, but its slide still makes it an underperformer. The financial sector's weakness is largely owed to losses among diversified banks (-0.5%) and investment banks and brokerages (-0.5%).DJ30 +5.22 NASDAQ +2.30 SP500 +0.41 NASDAQ Adv/Vol/Dec 1021/210 mln/1221 NYSE Adv/Vol/Dec 1319/130 mln/1318

09:45 am : Stocks are up slightly in the first few minutes of trade. The advance has the major averages at last week's intraday highs, which also coincide with multi-month highs for the market.

Natural resource plays are offering leadership once again. As such, both the materials sector and the energy sector are up 0.5%. That comes on top of respective gains of 2.0% and 1.1% this past Friday.

In contrast, defensive-oriented plays like consumer staples (-0.1%) and health care (-0.1%) are in the red. DJ30 +19.37 NASDAQ +5.31 SP500 +2.22 NASDAQ Adv/Vol/Dec 1035/121 mln/1065 NYSE Adv/Vol/Dec 1455/81 mln/1112

09:15 am : S&P futures vs fair value: +0.70. Nasdaq futures vs fair value: -1.00. Given the complete absence of economic data and any major corporate announcement, a quiet tone continues to surround premarket trade. Stock futures have eased back a bit, but they still point to a slightly higher start for the session. Such a move would build on last week's advance, which closed with the Dow Jones Industrial Average above 11,000 for the first time since May. Commodities are also quiet this morning, but the CRB Commodity Index is flat. Currencies like the dollar, euro, and yen are also largely unchanged. Lastly, the U.S. Treasury market is closed for observance of Columbus Day.

09:00 am : S&P futures vs fair value: +1.30. Nasdaq futures vs fair value: -0.30. Morning trade among commodities has been lackluster since the CRB Commodity Index set a near two-year high this past Friday. The CRB is currently flat as oil prices slide 0.4% to $82.35 per barrel and natural gas prices fall 0.8% to $3.62 per MMBtu in early pit trade. As for precious metals, the gold under the continuous contract is unchanged at $1344 per ounce and continuous contracts for silver have prices up 0.2% to $23.15 per ounce.

08:30 am : S&P futures vs fair value: +2.00. Nasdaq futures vs fair value: +0.50. Futures for the S&P 500 continue to trade with a narrow lead over fair value. Not much more impressive, Germany's DAX is up 0.2% at the moment. It is currently led by Volkswagen, which is up about 8% since it set a monthly low just four sessions ago. The automaker's strength has inspired buying in peer Daimler (DAI). Undermining the pair are Merck and Deutsche Post. In France, the CAC has mustered a 0.2% gain, which has been led by Schneider Electric and Carrefour. Danone and EADS have acted as a drag, though. Britain's FTSE is up 0.3% amid strength in banking plays Standard Chartered and HSBC (HBC). Royal Dutch Shell (RDS.A) is also in strong shape, but BP Plc (BP) is under pressure. The integrated energy play was recently hit with an analyst downgrade.

As for Asia, Japan's Nikkei was closed for holiday observance, but the yen made its way to a new 15-year best against the greenback. It recently pulled back a bit so that it now trades with only a fractional gain. The Shanghai Composite of Mainland China spiked 2.5% amid strength in property stocks and commodity plays. Following the close tightening measures were announced with the intent of cooling the real estate market. Hong Kong's Hang Seng advanced 1.2% overnight. It was led by the likes of PetroChina (PTR), China Construction Bank, and CNOOC (CEO), which announced a cooperation agreement with Chesapeake Energy (CHK) whereby CNOOC will purchase a one-third interest in a south Texas project. Belle International was atop the list of laggards.

08:00 am : S&P futures vs fair value: +2.50. Nasdaq futures vs fair value: +1.00. Neither data nor major earnings announcements are scheduled for this morning, and the U.S. Treasury market is closed for Columbus Day observance. Amid the quiet, stock futures have made a modest gain. Europe's major bourses reflect similar sentiment as they trade with modest strength. Overnight action in Asia was far stronger as the Shanghai Composite climbed 2.5% and Hong Kong's Hang Seng advanced 1.2% after the Dow Jones Industrial Average finished last week above 10,000 for the first time since May. Participants in Japan sat out as the Nikkei was closed for holiday. As for currencies, the dollar, euro, and yen are all flat at the moment.

06:30 am : S&P futures vs fair value: +2.30. Nasdaq futures vs fair value: +1.00.

06:30 am : Nikkei...Holiday......... Hang Seng...23207.31...+263.10...+1.20%.

06:30 am : FTSE...5671.24...+13.60...+0.20%. DAX...6304.23...+12.50...+0.20%.

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)
Price Action Only Trading (no indicators)
Image@ http://twitter.com/wrbtrader and http://stocktwits.com/wrbtrader

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