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 12:45 pm

All times are UTC - 5 hours [ DST ]




Post new topic Reply to topic  [ 1 post ] 
Author Message
 Post subject: October 13th Wednesday 2010 Emini TF ($TF_F) points +6.60
PostPosted: Tue Oct 19, 2010 7:59 pm 
Offline
Site Admin

Joined: Sat Jan 10, 2009 2:06 pm
Posts: 4335
Location: Canada
Attachment:
101310_wrbtrader_PnL_Blotter_Profit.png
101310_wrbtrader_PnL_Blotter_Profit.png [ 31.47 KiB | Viewed 284 times ]

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

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

Stocks Rally, But Close Off Session Highs
Attachment:
chart_ws_index_dow.top[2].png
chart_ws_index_dow.top[2].png [ 16.02 KiB | Viewed 257 times ]

click on the above image to view normal size

By Ben Rooney, staff reporter
October 13, 2010: 4:48 PM ET

NEW YORK (CNNMoney.com) -- Stocks rallied Wednesday as investors bet that the Federal Reserve is moving toward a more accommodative policy.

The Dow Jones industrial average (INDU) closed up 76 points, or 0.7%, after climbing 130 points earlier in the session. The S&P 500 (SPX) gained 8 points, or 0.7%, and the Nasdaq (COMP) rose 23 points, or 0.9%.

The advance began after blue chips JPMorgan Chase and Intel reported quarterly earnings that beat Wall Street estimates. But traders said the rally was driven by speculation the Fed will announce plans next month to resume large-scale purchases of Treasurys, a strategy called quantitative easing.

"Earnings so far have been strong, and that's definitely a positive," said Abigail Doolittle, a portfolio manager at Johnson Illington Advisors. "But everything is taking a backseat to this incredible focus on QE2," she added, using Wall Street shorthand for the Fed policy.

Minutes from the Fed's September policy meeting showed Tuesday that the central bank is willing to make good on its pledge to support the economy if conditions continue to deteriorate. Investors took that as a sign the Fed will announce plans to buy more Treasurys at its next policy meeting in November.

The dollar, which would suffer if more Treasurys were purchased, continued to weaken Wednesday. Treasury prices fell, pushing yields higher, as investors transferred money into stocks.

The anemic dollar boosted commodities that are priced in the U.S. currency, such as gold and oil. Gold rose to another record high, and oil prices surged 1.6%.

Strength in commodities helped support shares of companies in the industrial and materials sector. Caterpillar (CAT, Fortune 500) and Boeing (BA, Fortune 500) both rose more than 1%.

The weak dollar also lifted shares of companies that do business overseas, since a softer greenback boosts profits for U.S. multinationals. IBM (IBM, Fortune 500), 3M (MMM, Fortune 500) and United Technology (UTX, Fortune 500) all gained significant ground.

"It's a risk on trade," said David Levy, portfolio manager at Kenjol Capital Management. "Investors are putting money into assets that will benefit from a weaker dollar."

Stocks recovered from early loses on Tuesday to close higher after the Fed minutes were released.

On Thursday, the nation's troubled job market could come to the fore when the Labor Department's weekly report on initial claims for unemployment benefits comes out. A report on inflation at the wholesale level is also due before the market opens.

After the closing bell Thursday, search giant Google (GOOG, Fortune 500) is expected to report another jump in quarterly profit.

Companies: Apple's (AAPL, Fortune 500) stock rose to $300.11 per share, climbing above $300 for the first time ever. That's an increase of about 40% year-to-date, driven by the success of its iPad and iPhone.

JPMorgan Chase (JPM, Fortune 500) reported earnings of $4.4 billion as its loan losses continued to decline.
49 states launch foreclosure probe

After rising about 2% earlier in the session, shares of JPMorgan fell 1.4% on concerns about the legal implications of potentially inaccurate foreclosure filings.

The bank acknowledged that it has found cases in which the signers of foreclosure affidavits didn't personally review underlying loan files, as they are required to. It also said affidavits weren't properly notarized in some cases.

But the strong report could bode well for Citigroup (C, Fortune 500), Wells Fargo (WFC, Fortune 500), Bank of America (BAC, Fortune 500), Morgan Stanley (MS, Fortune 500) and Goldman Sachs (GS, Fortune 500). All are slated to report their results next week.

On Tuesday, Intel (INTC, Fortune 500), reported a rise in quarterly sales and profit. Despite the upbeat results, shares of the chipmaker fell 2.7% Wednesday.

Shares of CSX (CSX, Fortune 500) rose 4.2% after the railroad operator posted results that beat expectations after the closing bell Tuesday. Other railroad companies also gained, including Union Pacific (UNP, Fortune 500) and Norfolk Southern (NSC, Fortune 500).

Shares of MGM Resorts International (MGM, Fortune 500) fell over 11% after the casino operator warned Tuesday that it expects to suffer a loss of 70 cents per share in the third-quarter.

Chevron (CVX, Fortune 500) said Tuesday that it expects to report a drop in earnings when it releases its third-quarter results later this month. Shares of the oil giant dipped 0.2%.

Economy: The Bureau of Labor Statistics reported that U.S. import prices fell 0.3% in September, following an increase of 0.6% the prior month. The price of fuel imports led the decline, falling 3.1%.

Export prices rose in September by 0.6%, following a rise of 0.8% the prior month. This was driven by agricultural import prices, which rose 2.4%.

World markets: European markets ended sharply higher. The FTSE 100 in London, CAC 40 in Paris and Germany's DAX all gained more than 2%.

In Asia, stocks closed in positive territory. The Hang Seng in Hong Kong shot up 1.5% and the Shanghai Composite gained 0.7%. Japan's Nikkei edged higher 0.2%.

China posted a trade surplus of $16.9 billion for September, as exports climbed 25% and imports rose 24%. That's down from a $20 billion surplus in August.

But the drop was not enough to ease tensions between the China and the United States, which has been pressuring China to allow its currency to appreciate against the dollar because an undervalued yuan hurts U.S. manufacturers by undercutting their export prices.

"China's overall trade surplus may have declined slightly last month, but tensions are unlikely to do the same," said Mark Williams, senior China economist at Capital Economic.

Commodities and Currencies: The dollar slipped against the major international currencies, including the British pound, the Japanese yen and the euro.

Gold futures for December delivery surged $23.80 to settle at another record high of $1,370.50 an ounce.

The price of oil rose $1.29 to close at $82.96 per barrel.

Treasurys: The price fell on the benchmark 10-year U.S. Treasury, pushing up the yield to 2.43% from 2.42% late Tuesday.

Image

Yahoo! Finance

4:30 pm : Strong earnings and a slide in the dollar sent stocks to fresh five-month highs this session. Some of the gains were surrendered into the close, though.

Buying was initially stirred by better-than-expected earnings from bellwethers Intel (INTC 19.24, -0.53) and JPMorgan Chase (JPM 39.84, -0.56). Though neither name actually advanced, their announcements were enough to add to the stock market's recent momentum, which has seen the S&P 500 close higher for four straight sessions.

JPM wasn't the only name that was rejected among banks. Their general weakness left the financial sector to finish flat.

Tech (+0.9%) was actually led by Apple (AAPL 300.14, +1.60), which broke above the $300 mark to set a record high.

Rail carrier CSX Corp (CSX 59.66, +2.40) was one of the session's best performers, thanks to an upside earnings surprise of its own. The stock's strength helped the industrials sector advance 1.5%, but materials stocks advanced 1.7% to book the biggest gain of any sector.

Basic materials stocks, as well as the broader market, were helped by renewed weakness in the dollar. The dollar dipped 0.4% to test its eight-month lows.

Weakness in the dollar and a broadly positive mood among traders sent the CRB Commodity Index to a new two-year high. The CRB finished with a 0.6% gain, about half of what it had sported at its session high.

Positive market breadth had taken the Volatility Index (VIX) down to its lowest level since April, but the VIX rebounded as stocks drifted lower into the close.

Though stocks finished off of their session highs, advancing issues still outnumbered advancers by 4-to-1 in the S&P 500. Share volume was also strong, in that nearly 1.3 billion shares were traded on the NYSE today. Outside of the final session of the third quarter, today's total is the greatest of the past month.

Treasuries retraced their slide as stocks eased lower into the close. In turn, the benchmark 10-year Note finished a few ticks for the better even though dollar demand at a $21 billion auction of 10-year Notes was the lowest since December 2009.

Advancing Sectors: Materials (+1.7%), Industrials (+1.5%), Energy (+1.1%), Tech (+0.9%), Consumer Staples (+0.8%), Health Care (+0.7%), Utilities (+0.3%), Consumer Discretionary (+0.2%)
Declining Sectors: Telecom (-0.1%)
Unchanged: FinancialsDJ30 +75.68 NASDAQ +23.31 SP500 +8.33 NASDAQ Adv/Vol/Dec 1946/2.31 bln/707 NYSE Adv/Vol/Dec 2289/1.27 bln/712

3:30 pm : The CRB Commodity Index ended the session with a 0.6% gain, about half of what it had sported at its session high. The CRB's best level of the day also made for a fresh two-year high.

Precious metals prices pushed sharply higher. The continuous gold contract hit a new record of $1374 per ounce before pit traded ended with gold priced at $1370.50 per ounce with a 1.8% gain. Silver prices set a fresh 30-year high at $23.98 per ounce before they settled with a 3.4% gain at $23.93 per ounce.

As for energy, oil prices finished the day at $83.01 per barrel with a 1.6% gain. Natural gas prices climbed 1.9% to $3.70 per MMBtu. DJ30 +102.70 NASDAQ +28.65 SP500 +10.51 NASDAQ Adv/Vol/Dec 2003/1.91 bln/642 NYSE Adv/Vol/Dec 2365/805 mln/626

3:00 pm : Stocks continue to gradually ease off of their session highs. Overall gains are still strong, though.

Amid the broader market's pullback, financials have seen their gains more than halved. The sector is now up just 0.4%. Regional bank stocks continue to hamper the sector; they are down 0.6%.

Treasuries have retraced their slide. In turn, the yield on the benchmark 10-year Note is now down to 2.43% after it had been as high as 2.48%. DJ30 +114.96 NASDAQ +29.36 SP500 +11.60 NASDAQ Adv/Vol/Dec 2011/1.71 bln/627 NYSE Adv/Vol/Dec 2402/702 mln/587

2:30 pm : The stock market recently slipped slightly from its session high. It is still up a bit more than 1% as all 10 major sectors sport gains -- half of them are up by more than 1%.

Gains are even more impressive among small-cap stocks. More specifically, the Russell 2000 is up 2.1%. Such strength has spanned the course of this year. In turn, the Small-Cap Index is up almost 14% year to date while the S&P 500 is up 6% for the year. DJ30 +124.08 NASDAQ +32.53 SP500 +13.26 NASDAQ Adv/Vol/Dec 2023/1.58 bln/589 NYSE Adv/Vol/Dec 2449/650 mln/540

2:00 pm : The major equity averages continue to trade at session highs. This is shaping up to be the stock market's fourth straight gain and its best single-session advance in a week. Stocks are already up almost 4% month to date.

Volatility is down a bit amid this session's advance. Specifically, the Volatility Index is off by 1.5%, which is enough to take it to its lowest level since April. DJ30 +117.58 NASDAQ +30.85 SP500 +12.72 NASDAQ Adv/Vol/Dec 1987/1.44 bln/616 NYSE Adv/Vol/Dec 2429/594 mln/547

1:30 pm : Results from a $21 billion auction of 10-year Notes proved to be rather disappointing as its dollar demand came in at its lowest level since December 2009.

The auction drew a bid-to-cover ratio of 2.99 on dollar demand of $62.8 billion and an indirect bidder participation rate of 41.5%. The prior auction had a bid-to-cover ratio of 3.21 on dollar demand of $67.4 billion and an indirect bidder participation rate of 54.7%. The average for the four past auctions had a bid-to-cover ratio of 3.15, dollar demand of $68.3 billion, and an indirect bidder participation rate of 45.6%.

Following the release of the auction results, the 10-year Note has modestly extended its retreat. It is now down about a dozen ticks. Its yield is at 2.48%. DJ30 +118.14 NASDAQ +28.95 SP500 +12.55 NASDAQ Adv/Vol/Dec 1991/1.32 bln/599 NYSE Adv/Vol/Dec 2412/541 mln/550

1:00 pm : Stocks are at their best levels in five months following upbeat earnings from a couple of bellwethers, a weaker dollar, and strength among overseas markets.

Better-than-expected earnings from Dow components Intel (INTC 19.58, -0.19) and JPMorgan Chase (JPM 40.24, -0.16) have supported a positive sentiment to broader market trade, but the results haven't done anything to support the shares themselves. Instead, sellers are hitting the stocks to lock in the gains that were made ahead of the reports.

Carrier CSX Corp (CSX 59.73, +2.47) is at a new multi-month high after it posted an upside earnings surprise of its own. Its strength has helped send the broader industrials sector 1.9% higher. That makes it the best performing sector of the session.

Defensive-oriented utilities stocks are up a relatively tame 0.4% at the moment, but sector member Williams Companies (WMB 21.40, +1.79) is among this session's biggest gainers following news of the company's succession plan.

Continued weakness in the dollar has further supported this session's positive tone. The dollar is currently down 0.3%, which puts it back near its eight-month lows.

The dollar's decline has also benefited commodities, such that the CRB Commodity Index is up 0.5%. The CRB had been up as much as 1.2%, which made for a new two-year high.

Positive sentiment has also been seen among many overseas markets. That helped Germany's DAX set a two-year high, China's Shanghai Composite break above its 200-day average, and Hong Kong's Hang Seng hit a new 28-month high.

Results from the latest auction of 10-year Notes are due at any moment.DJ30 +118.26 NASDAQ +27.54 SP500 +12.12 NASDAQ Adv/Vol/Dec 1966/1.21 bln/605 NYSE Adv/Vol/Dec 2398/504 mln/554

12:30 pm : Coming up at the top of the hour are results from a $21 billion auction of 10-year Notes. The yield on the Note is up to 2.47% from its recent low of 2.33%, which was set this past Friday, but it can hardly be considered a bargain at the current yield level considering that it was as high as 2.70% just three weeks ago. The relatively low yield may cause demand to be tepid at best, especially in light of the low dollar demand that chased yesterday's 3-year Note auction. However, hopes that the Fed might enlarge its Treasury purchases in the 10-year range under possible plans for further quantitative easing may encourage some buyers to step in to the fold.DJ30 +122.57 NASDAQ +28.03 SP500 +12.39 NASDAQ Adv/Vol/Dec 1939/1.09 bln/622 NYSE Adv/Vol/Dec 2377/461 mln/553

12:00 pm : Stocks have eased off of their session highs, but the overall tone of trade remains decidedly upbeat as advancing issues outnumber decliners by 4-to-1 in the S&P 500.

Utilities stocks make up the worst performing sector. As a group, they are up just 0.2%. However, natural gas play Williams Companies (WMB 21.46, +1.85) is up more than any other company in the broader market following the announcement of the company's succession plan. Despite today's spike in shares of WMB, the stock is still down about 7% year to date. Utilities, as a group, are up little more than 2% in 2010.DJ30 +102.02 NASDAQ +24.94 SP500 +10.32 NASDAQ Adv/Vol/Dec 1892/977 mln/637 NYSE Adv/Vol/Dec 2340/417 mln/585

11:30 am : Shares of diversified domestic banks were collectively down as much as 0.9% in the early going, but they recently rallied to a 1.0% gain. However, foreign banks are a bit more mixed as HSBC (HBC 53.22, +0.62) climbs to a 1% gain and Deutsche Bank (DB 58.25, +2.35) rallies from four straight losses to a new monthly high that is within striking distance of its 50-day moving average, but Barclays (BCS 18.55, -0.28) and Royal Bank of Scotland (RBS 15.01, -0.09) are both down markedly. DJ30 +99.56 NASDAQ +23.67 SP500 +9.92 NASDAQ Adv/Vol/Dec 1858/841 mln/630 NYSE Adv/Vol/Dec 2307/367 mln/589

11:00 am : With all 10 major sectors showing strength the stock market has successfully extended its gradual morning advance.

Buying has been helped by a recent dip in the Dollar Index. The Index had pared some of its overnight losses ahead of the open, but renewed weakness has sent it back down to a 0.3% loss. The slide puts it near the multi-month lows that have been probed during the past week or so.

The dollar's decline also continues to bolster buying in the commodities pits. In turn, the CRB Commodity Index is up 0.8% to a new two-year high. DJ30 +95.29 NASDAQ +22.74 SP500 +9.35 NASDAQ Adv/Vol/Dec 1793/700 mln/638 NYSE Adv/Vol/Dec 2267/300 mln/597

10:35 am : Most commodities are trading higher this morning due to weakness in the dollar index.

Gold futures (continuous and the most active contract) hit all-time highs again this morning. The continuous gold contract hit $1367.70 per ounce, while the most active futures contract (Dec) hit new all-time highs of $1368.90 per ounce. December gold is currently at $1368.50 per ounce, up 1.6%.

December silver hit new 30-year highs at $23.71 per ounce and is currently $23.67 per ounce, up 2.2%.

November crude oil has been trending higher since the overnight session. It hit morning highs of $83.10 per barrel and is now 1.3% higher at $82.73 per barrel. November natural gas began to rally around 6:30am ET and is trading near session highs of $3.75 per MMBtu now at $3.745 per MMBtu, up 3.2%.DJ30 +84.92 NASDAQ +18.34 SP500 +7.87 NASDAQ Adv/Vol/Dec 1750/538.9 mln/612 NYSE Adv/Vol/Dec 2213/240.9 mln/601

10:00 am : After a brief pullback from their opening gap up, stocks have regrouped to climb another leg higher. The latest move has taken the S&P 500 above the 1175 line, which was last crossed five months ago.

Financials continue to trail the broader market, but they have recovered from an early slip. The sector is now up 0.4%. Industrials, now collectively up 1.2%, remain in the best shape.

The stock market's early strength has put Treasuries under considerable pressure. In turn, the yield on the benchmark 10-year Note is up to 2.46%, which is its highest level in one week. Results from an auction of 10-year Notes will be released at 1:00 PM ET. DJ30 +72.58 NASDAQ +14.99 SP500 +7.07 NASDAQ Adv/Vol/Dec 1709/335 mln/557 NYSE Adv/Vol/Dec 2242/158 mln/507

09:45 am : Stocks started trade at fresh five-month highs, but have since pulled back a bit.

Financials are lagging after leading in the prior session. Coming off of a 1.3% gain, the sector is down 0.1% at the moment. It is currently the only sector in the red as regional banks slide 0.6% and diversified banks drop 0.5%. Bellwether JPMorgan Chase (JPM 40.39, -0.01) has struggled to find direction, despite stronger-than-expected earnings.

CSX Corp (CSX 59.84, +2.58) is up big in the first few minutes of the session. Its strength has push the broader industrials sector to a 0.8% gain, which puts it out in front of the broader market. DJ30 +60.13 NASDAQ +13.45 SP500 +6.19 NASDAQ Adv/Vol/Dec 1411/215 mln/759 NYSE Adv/Vol/Dec 2052/115 mln/602

09:15 am : S&P futures vs fair value: +6.30. Nasdaq futures vs fair value: +11.80. The dollar has trimmed its loss so that it now trails competing currencies by just 0.2%. That improved position has caused stock futures to ease off of their morning highs. Still, a positive tone continues to permeate premarket trade, thanks to a batch of upbeat earnings from industry bellwethers Intel (INTC) and JPMorgan Chase (JPM). Carrier CSX (CSX) has also contributed to the strong start of earnings season. Robust gains among several of the major overseas markets have also helped drive buying. Their moves have been partly induced by upbeat data. Domestic data remains sparse and largely inconsequential at this point. However, tomorrow will bring the release of the latest in trade, producer prices, and weekly jobless claims.

09:05 am : S&P futures vs fair value: +6.40. Nasdaq futures vs fair value: +12.00. All 30 members of Germany's DAX are currently in higher ground. Such broad support has the German bourse up 1.8% to a new two-year high. Infineon Tech currently boasts the biggest gain, which has made it a primary leader. France's CAC is up 1.8% amid broad-based support, which has taken every one of its components higher except Credit Agricole. Broad support has boosted Britain's FTSE up 1.4% to a new five-month high. Natural resource plays like Rio Tinto (RTP), BHP Billiton (BHP), Anglo American, and BP Plc (BP) have been the biggest drivers. But banking plays Standard Chartered and Barclays (BCS) have fallen out of favor in the face of upbeat quarterly results from diversified financial giant JPMorgan Chase (JPM). Jobless claims in the United Kingdom climbed 5,300 in September after an upwardly revised 3,800 claims count in August. Broader data indicated that industrial production for the eurozone increased 1.0% in August. No change was made in July.

In Asia, Japan's Nikkei advanced 0.2%, though declining issues narrowly edged out advancers. Fanuc LTD and Kyocera (KYO) provided some of the most support while Fast Retailing extended its retreat to a new 52-week low. Data indicated that machine orders for August climbed 10.1%, which is sharper than the 8.8% increase registered for July. Mainland China's Shanghai Composite climbed to a 0.7% gain that took it to a five-month high above its 200-day moving average. Strength was most pronounced among financial plays like China Merchants Bank, Industrial & Commercial Bank, Industrial Bank, and China Life Insurance. Energy plays like PetroChina (PTR) and China Petroleum (SNP) fell out of favor. Data out of China showed that the trade balance there eased back to $16.88 billion in September from $20.03 billion in August. Foreign exchange reserves spiked to $2.65 trillion. China Construction Bank, HSBC (HBC), and Ping An Insurance helped lead Hong Kong's Hang Seng 1.5% higher to a new 28-month high. Energy plays lagged as CNOOC (CEO) logged a loss.

08:35 am : S&P futures vs fair value: +7.80. Nasdaq futures vs fair value: +14.50. Stock futures continue to trade with strength, but they have shown no real reaction to the only item on today's economic calendar. Import prices for September decreased 0.3% from the prior month. That makes for a sharp downturn from the 0.6% monthly increase that had been recorded in August. Excluding oil, import prices for September actually increased 0.3% month-over-month. That increase is consistent with what was seen in the prior month.

08:05 am : S&P futures vs fair value: +6.80. Nasdaq futures vs fair value: +14.30. Stock futures are up solidly on the back of better-than-expected earnings from chip bellwether Intel (INTC) and diversified financial giant JPMorgan Chase (JPM). Shares of the two companies are up about 1.4% and 0.7%, respectively, ahead of the open. Renewed weakness in the dollar has also helped equities. The dollar is currently down 0.3%, which puts it near eight-month lows. Overseas markets are also showing strength, though Europe's current gains are greater than those registered in Asia overnight. Following a rather disappointing auction of 3-year Notes yesterday, results from an auction of 10-year Notes are due today at 1:00 PM ET. The economic calendar is still sparse. Only import price data for September are on it. That report is due at the bottom of the hour.

06:39 am : S&P futures vs fair value: +6.40. Nasdaq futures vs fair value: +14.00.

06:39 am : Nikkei...9403.51...+14.90...+0.20%. Hang Seng...23457.49...+336.00...+1.50%.

06:39 am : FTSE...5730.56...+69.00...+1.20%. DAX...6391.48...+86.90...+1.40%.

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)
Price Action Only Trading (no indicators)
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 1 guest


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