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 Post subject: November 16th Tuesday 2010 Emini TF (No Trades)
PostPosted: Wed Nov 17, 2010 10:25 pm 
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Joined: Sat Jan 10, 2009 2:06 pm
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Trade Results of M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
Price Action Only Trading (no indicators)

Quote:
No trades today due to personal reasons and I'll return to trading on Wednesday November 17th.

Trade Performance for Today: +0.00 points or $0 dollars in the ICE Russell 2000 Emini TF ($TF_F) Futures.
1 tick or 0.10 = $10 dollars and to find out more contract information about the Russell 2000 Emini TF...click here.

In addition, today's #FuturesTrades chat room logs provides details about each trade from entry to exit along with commentary as the trade traversed...all archived @ http://www.thestrategylab.com/ftchat/forum/viewtopic.php?f=83&t=680

Also, posted below are direct links to information about my trade methodology and trading plan (there's a difference between the two) that enables me to identify key trading areas in the price action that represent changes in supply/demand and volatility along with being able to exploit these changes via WRB Analysis (wide range body/bar analysis).

Image WRB Analysis Tutorials @ http://www.thestrategylab.com/WRBAnalysisTutorials.htm and there's a free study guide of the WRB Analysis Tutorial Chapters 1, 2 and 3 @ http://www.thestrategylab.com/tsl/forum/viewforum.php?f=119. However, you must join the TSL Support Forum to access the free study guide. To register...click here.

Image Volatility Trading Report (VTR) @ http://www.thestrategylab.com/VolatilityTrading.htm

Image Trading Plan Daily Routine @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=125&t=825

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Image Market Summaries

The below summaries by Bloomberg, CNNMoney and Yahoo! Finance helps me to do a quick review of the fundamentals, FED actions, global economics that had an impact on today's price action. Simply, I'm a strong believer that many variables causes key changes in supply/demand and volatility that's arguably just as important as my technical analysis.

Image Bloomberg Video - U.S. Stocks Sink Amid Concern About Ireland, China
Nov. 16 (Bloomberg) -- Bloomberg's Deborah Kostroun reports on the performance of the U.S. equity market today. U.S. stocks sank, sending the Standard & Poor's 500 Index to the biggest slump since August, amid concern that the debt crisis in Ireland and Greece is worsening and that China will act to slow its economy. Bloomberg's Pimm Fox also speaks.

Image CNNMoney.com - Stocks Plunge: Worst Day In Months
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By Hibah Yousuf, staff reporter
November 16, 2010: 4:49 PM ET

NEW YORK (CNNMoney.com) -- U.S. stocks tumbled Tuesday, with all three major indexes down nearly 2%, as investors cast a worried eye at economic developments in Europe and China.

The Dow Jones industrial average (INDU) finished 178 points lower, or 1.6%, with Alcoa (AA, Fortune 500) and Travelers Companies (TRV, Fortune 500) leading the blue chip index's decline. Earlier in the session, the Dow fell more than 200 points.

The S&P 500 (SPX) fell 19 points, or 1.6%. The tech-heavy Nasdaq (COMP) lost 44 points, or 1.8%.

The Dow and the S&P posted the biggest one-day losses since Aug. 11 and Aug. 19, respectively. The Nasdaq's drop was the largest since Oct. 19.

The day's sell-off also puts all three indexes on track to post a decline for the month of November, erasing the gains logged after the Republican victory in the midterm elections and the Federal Reserve's announcement to pump $600 billion in to the economy.

Traders on Wall Street have been holding back on buying recently, as they await more clarity on the economic outlook for the United States, Europe and China.

As a result, investors have been taking their cues from daily economic indicators, and have been keeping a close eye on debt auctions in fiscally challenged countries such as Ireland.

"The concerns about the global economy, with the fiscal situation in Ireland, are clearly back on the table," said Peter Tuz, president at Chase Investment Counsel. "There's a little bit of nervousness out there."

Irish prime minister Brian Cowen outlined in a speech on Tuesday the steps that his government has been taking to stabilize the Irish economy and reduce the deficit. Most importantly, as far as investors are concerned, he said that his country will not be seeking a bailout.

"Ireland has made no application for external support," he said.

Investors had braced themselves for news of an Irish bailout and its potential threat to economic stability.

The persisting global economic woes have helped lift the dollar. The dollar index, which measures the buck against a basket of foreign currencies, rallied 0.9%. Earlier, the index touched 79.46, the highest level since Sept. 28.

The stronger buck weighed on commodity prices and the energy sector, Tuz said.

Exxon Mobil (XOM, Fortune 500) fell more than 2% Tuesday and was among the biggest losers in the Dow. Massey Energy Company (MEE), Peabody Energy (BTU, Fortune 500) and Valero Energy Corp. (VLO, Fortune 500) all shed about 3%, while Consol Energy (CNX, Fortune 500) dropped almost 5%. They were among the biggest laggards on the S&P 500.

The companies also lost traction as investors worried that China's efforts to curb the nation's growth would add stiff pressure on energy prices and future earnings, Tuz said.

Meanwhile, retail stocks moved higher after major players posted healthy profits and strong forecasts for the fourth quarter, which includes the all-important holiday shopping period, with Wal-Mart (WMT, Fortune 500), Home Depot (HD, Fortune 500) and Urban Outfitters (URBN) leading the advance.

Stocks ended mixed Monday, after an early advance on merger news gave way to jitters about the economy.

Companies: Wal-Mart (WMT, Fortune 500), the world's largest retailer, reported earnings per share of 95 cents. Excluding charges, Wal-Mart met forecasts. But the retailer missed on sales, reporting net sales of $101.2 billion versus forecasts of $102.3 billion. Wal-Mart also hiked its outlook for the year. Shares rose about 0.6%.

* Buffett dumps Home Depot

Home Depot (HD, Fortune 500) reported third-quarter earnings of 51 cents per share, topping forecasts by three cents. But the home improvement company lowered its full-year sales outlook. Shares of Home Depot jumped 1%.

General Motors announced an increase in the target price and size of its initial public offering. The target share price for common stock moved to $32 to $33 from its previous estimate of between $26 and $29 per share. As a result, the total size of GM's IPO is now expected to be close to $16 billion.

Clothing retailer Abercrombie & Fitch (ANF) announced third-quarter earnings per share of 56 cents, topping analyst expectations by 5 cents per share. Shares rose 0.8%.
0:00 /1:02Retailers rally head of holidays

Economy: A government report on the latest Producer Price Index was delivered before the bell. The report is considered an important reading on the price of goods at the wholesale level. A report on industrial production is also expected Tuesday.

Producer prices rose 0.4% in October, matching the growth rate for the previous two months, but falling short of analyst expectations. The measure had been forecast to have risen 0.8% for October, according to a consensus of economists surveyed by Briefing.com.

Excluding energy prices, the so-called core PPI decreased by 0.6%. It had been expected to be flat at 0.1%.

Economists expect industrial production rose 0.3% in October, after a 0.2% decline in output the month before, according to the consensus estimate from Briefing.com.

World markets: European stocks fell after a report showed consumer prices in the eurozone rose at their fastest pace in two years, hiking inflation fears. Britain's FTSE 100 ended 2.4% lower, the DAX in Germany lost 1.9% and France's CAC 40 declined by 2.6%.

Asian markets ended lower. The Shanghai Composite suffered heavy losses, closing down nearly 4% on continued inflation worries. The Hang Seng in Hong Kong edged 1.4% lower, and Japan's Nikkei slid 0.3%.

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

The dollar index, which measures the buck against a basket of foreign currencies, rose 0.9%. The stronger dollar has weakened commodity prices.

* Bonds: All eyes on inflation

Oil for December delivery fell $2.52, or 3%, to $82.34 a barrel. Gold futures for December delivery fell $28.50 to $1,340 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury rose, pushing the yield down to 2.84% from 2.91% late Friday.

Image

Image Yahoo! Finance - Market Update

4:35 pm : More than 95% of the names in the S&P 500 logged losses today. Their weakness was underpinned by renewed concerns about a rate hike in China, the state of finances in Ireland, and Greece's ability to tighten its fiscal practices.

Stocks opened trade in the red as the prior session's late slide extended into premarket trade with help from a 4% plunge by China's Shanghai Composite. Selling there was stoked by speculation that a rate hike may be in the offing since Korea raised its target rate. Many are fearful that tighter monetary policy in China would not only soften demand in the country, but also stymie global growth.

Also in the backdrop was worry about the financial health of Ireland and its banks. The country's prime minister stated in a CNBC report that the country's banks are meeting European Central Bank funding requirements and that the country has not had to ask for aid.

The tone of trade further weakened with word that Austria has opted to withhold bailout funds for Greece because it may miss its deficit reduction target.

The dollar was helped by that headline. Buying in the currency was strong enough to take the greenback more than 1% higher to its best level since September before it eased back to end the trading day with a gain of about 0.9%. However, the greenback's gain only exacerbated weakness among stocks.

Selling was so sharp that the S&P 500 was pushed through initial support levels to the 1173 line, which was last touched in October. Even though it finished off of its low, the S&P 500 still suffered its worst single-session percentage loss since August.

The Dow had dropped more than 200 points to violate the 11,000 line before it attempted to pare its loss. Among its 30-members, only WalMart (WMT 54.26, +0.31) and Home Depot (HD 31.71, +0.32) booked gains. Home Depot satisfied investors with an upside earnings surprise and a strong outlook.

WalMart's latest quarter was not too inspiring, but the company did issue a strong forecast. Strength in the pair, along with solid results from a handful of smaller retailers, helped limit losses among retailers to 0.6%, collectively.

In addition to stocks, traders also cut down commodities. That left the CRB Commodity Index to lose 3.2% after it lost 3.6% this past Friday. The CRB is now down 7.6% from the two-year high that it set last week.

Treasuries attracted support after they fell under a concerted midday selling effort. Their slide coincided with the dollar's initial bounce. In the end, though, the benchmark 10-year Note gained a full point to take its yield down to 2.84% after it hit 2.9%, its highest level since August, in the prior session. The 30-year Bond pushed up more than two points so that its yield slid to 4.27% after it was at a six-month high of about 4.42% just yesterday.

Data for today did nothing to offer support to stocks. The October Producer Price Index increased 0.4%, which is more tepid than the 0.8% increase that had been expected among economists polled by Briefing.com. Core prices actually fell 0.6%, which contrasts with the consensus call for a 0.1% increase.

Additionally, industrial production was unchanged in October. It had been expected to increase 0.3% after a 0.2% decline in the prior month. Capacity utilization remained steady at 74.8%, as generally expected.

Headlines of the day brought plenty of participants into the fold. In turn, trading volume on the NYSE totaled more than 1.3 billion shares. That is far more than the paltry tally of 880 million shares that exchanged hands on the Big Board in the prior session.

Advancing Sectors: (None)
Declining Sectors: Materials (-2.2%), Energy (-2.1%), Tech (-1.9%), Financials (-1.8%), Telecom (-1.6%), Industrials (-1.6%), Health Care (-1.3%), Consumer Discretionary (-1.3%), Utilities (-1.2%), Consumer Staples (-1.1%)DJ30 -178.47 NASDAQ -43.98 NQ100 -1.8% R2K -2.0% SP400 -1.8% SP500 -19.41 NASDAQ Adv/Vol/Dec 548/2.25 bln/2103 NYSE Adv/Vol/Dec 405/1.35 bln/2642

3:30 pm : Commodities were clipped for deep losses today. That left the CRB Commodity Index to lose 3.2%. That makes for its fourth loss in five sessions and its second loss of more than 3% in that time. That streak of weakness has the CRB down 7.6% from the two-year high that it set last week.

A resurgent dollar had a hand in undercutting commodities. The greenback was last quoted with a 0.9% gain. Concerns about the financial health of Ireland and Greece acted as the primary catalyst for the greenback's gain. Of course, concerns about slower global growth resulting from the possibility of tighter monetary policy in China didn't help.

Grains collectively endured some of the worst losses by falling 5.5%. Wheat contracts for March fell 6.3% to settle at $6.68 per bushel.

As for precious metals, gold prices dropped 2.3% to $1332.00 per ounce while silver shed 2.7% to settle at $25.23 per ounce. Gold's session low of $1329.00 per ounce marked its lowest level in two weeks. Silver's session low of $24.98 per ounce made for its worst levels in about the same time. Copper prices plummeted 5.1% to $3.73 per pound. Its session low of just under $3.69 per pound represented its lowest level since October 8. As an aside, the CME's new margin requirements in gold and silver went into effect at the close of pit trade.

Among energy contracts, December crude oil prices settled lower by 2.9% at $82.34 per barrel. It traded to its lowest levels of the month, at $82.26 per barrel, in afternoon trade. December natural gas prices fell a relatively more modest 0.7% to settle at $3.82 per MMBtu.DJ30 -202.23 NASDAQ -48.08 SP500 -22.40 NASDAQ Adv/Vol/Dec 475/1.84 bln/2179 NYSE Adv/Vol/Dec 308/914 mln/2738

3:00 pm : Stocks recently slipped amid renewed selling pressure. That took the broad-based S&P 500 to a fractionally extended session low just beneath 1175. Support there prevented the move from gaining momentum, however.

Treasuries continue to climb after succumbing to a midday selling effort. The 10-year Note is now up a point and the 30-year Bond has extended its advance to a gain of about 2.5 points. Their yields stand at 2.85% and 4.26%, respectively.

Trading volume has been fairly strong this session, but not quite robust. Still, total share volume on the NYSE is already quickly approaching the paltry total of only 880 million shares that exchanged hands on the Big Board in the prior session. DJ30 -184.63 NASDAQ -42.67 SP500 -20.43 NASDAQ Adv/Vol/Dec 491/1.67 bln/2156 NYSE Adv/Vol/Dec 300/828 mln/2744

2:30 pm : Though the broader market has managed to stabilize itself, the financial sector has extended its slide so that it is now at a fresh session low with a 2.3% loss. That ties the sector with energy as the worst performing sectors of the session (materials remain close behind with a 2.2% loss).

Just released, investment services and financial advisory firm Blackstone Group (BX 13.04, -0.62) has increased its offer for Dynegy (DYN 5.00, +0.37) to $5.00 per share from $4.50 per share. DJ30 -192.77 NASDAQ -43.10 SP500 -20.92 NASDAQ Adv/Vol/Dec 472/1.54 bln/2163 NYSE Adv/Vol/Dec 308/760 mln/2719

2:00 pm : Stocks are slowly working their way up from session lows, but losses remain both steep and broad.

In the meantime, Treasuries have reclaimed some of their gains. The benchmark 10-year Note is now up 23 ticks and the 30-year Bond is up close to two points. Their yields stand at 2.87% and 4.30%, respectively.

The action in the past 30 minutes coinceds with the dollar's drift off of its session high. The greenback is now up slightly less than 0.9% for the day. DJ30 -164.84 NASDAQ -36.95 SP500 -17.63 NASDAQ Adv/Vol/Dec 512/1.42 bln/2116 NYSE Adv/Vol/Dec 303/690 mln/2713

1:30 pm : The major averages are stuck at session lows with steep losses.

Commodities remain under sharp pressure, too. As such, the CRB Commodity Index is down 3.1%. Its slide today marks its fourth loss in five sessions -- a rather weak follow up to the nine-session streak of gains that took it to a two-year high.

The weak tone of trade has stoked volatility, such that the Volatility Index is up about 14%. DJ30 -188.76 NASDAQ -40.62 SP500 -19.75 NASDAQ Adv/Vol/Dec 477/1.32 bln/2118 NYSE Adv/Vol/Dec 222/640 mln/2790

1:05 pm : The stock market is at its lowest level in almost three weeks in what is shaping up to be its worst single-session drop in three months. The selloff comes as the dollar bounds and participants pare risk.

Stocks have been under pressure since the open. Their weakness initially marked an extension of the prior session's late slide and rekindled concern about how an interest rate hike in China could slow global growth following news that Korea raised its target rate.

Concern also continues to surround the state of finances in Ireland. CNBC reported that the country's prime minister stated that his country's banks are meeting European Central Bank funding requirements. It was added that the country has not asked for aid, although it has been known that aid has been available for months.

Greece was brought back into the center of sovereign debt concerns by news that Austria has opted to withhold bailout funds for Greece because Greece may miss its deficit reduction target.

Those themes have stirred support for the dollar, which is now up 1.0% after it had been flat ahead of the open.

With participants looking for protection stocks have fallen out of favor. The selling effort dropped the Dow more than 200 points back to the 11,000 line and took the S&P 500 through initial support levels to the 1175 line.

Such sharp selling has all 10 major sectors are down by at least 1%, but natural resource plays are under the most pressure. That has both energy and materials stocks down 2.5%.

Retailers have managed to limit losses, though. They are down just 0.4% following solid results from a handful of names in that space. Heavyweight Home Depot (HD 32.06, +0.67) had both an upside surprise and a strong outlook while WalMart (WMT 54.49, +0.54) posted tepid earnings, but issued a strong forecast.

The preference for cash has also prompted participants to pare positions in Treasuries, such that the benchmark 10-year Note is only up fractionally with a yield of 2.94%. Stronger buying in the early going had the yield below 2.90%.

Data hasn't done anything to stem selling. It was reported this morning that overall producer prices saw a tepid 0.4% increase and core prices actually fell 0.6% month-over-month for October. Industrial production for October was flat. DJ30 -193.00 NASDAQ -42.65 SP500 -20.66 NASDAQ Adv/Vol/Dec 482/1.20 bln/2120 NYSE Adv/Vol/Dec 196/598 mln/2806

12:30 pm : According to reports from CNBC, Ireland's Prime Minister stated that his country's banks are meeting European Central Bank funding requirements and that the country has not asked for aid. He also stated that the country needs to reduce its deficit by 2% to 3% of GDP by 2014.

Stocks have shown no real reaction to those comments. In turn, they remain mired near session lows with the Dow down 200 points to 11,000. DJ30 -201.93 NASDAQ -43.54 SP500 -20.82 NASDAQ Adv/Vol/Dec 477/1.12 bln/2101 NYSE Adv/Vol/Dec 178/540 mln/2820

12:00 pm : Stocks recently moved another leg lower. The move took the S&P 500 all the way down to the 1175 line, which is its lowest level since October 27.

According to headlines, Ireland is expected to issue an official statement at any moment. The expected comments come amid continued speculation about a potential bailout plan for Ireland's banks. Despite such speculation, market participants remain jittery and inclined to sell. That has helped keep the dollar near its session high. DJ30 -188.53 NASDAQ -42.42 SP500 -19.19 NASDAQ Adv/Vol/Dec 428/998 mln/2151 NYSE Adv/Vol/Dec 184/485 mln/2800

11:30 am : Volatility has spiked with the stock market's recent slide. That has the Volatility Index up 8% at the moment.

The dollar has pushed to its best level of the day. It is now up 0.8% against a basket of foreign currencies. The dollar had only been moderately higher in the early going, but extended its climb amid various reports that Austria is withholding funds from a bailout package for Greece. Concern about the implications from such a decision or the implications of Greece's failure to secure loans has garnered support for the greenback.

The preference for cash has also prompted participants to further pare positions in Treasuries. That has the benchmark 10-year Note back near the neutral line with only a fractional gain. The Note's yield now stands at 2.94%. DJ30 -171.53 NASDAQ -43.43 SP500 -18.89 NASDAQ Adv/Vol/Dec 419/810 mln/2108 NYSE Adv/Vol/Dec 179/400 mln/2768

11:00 am : Stocks have extended their retreat below initial support levels. The move has been broad with declining issues outnumbering advancers by close to 12-to-1 on the NYSE.

Treasuries have lost support in the face of the slide, however. More specifically, gains by the benchmark 10-year Note have been halved so that the yield on the Note is now back above 2.9%. DJ30 -127.99 NASDAQ -29.11 SP500 -13.59 NASDAQ Adv/Vol/Dec 468/628 mln/1994 NYSE Adv/Vol/Dec 235/320 mln/2668

10:30 am : The dollar index is up 0.8% so far this week, extending the 2% gains from last week. As a result, this is creating selling pressure in most commodities.

However, despite this strength, December natural gas is up for a second straight session, In morning activity, the energy component rallied to session highs of $3.92 per MMBtu and is currently 0.7% higher at $3.87 per MMBtu.

Meanwhile, December crude oil has been in the red all session. Lows of $83.05 per barrel were hit at the top of the hour and it is currently just above those lows at $83.26 per barrel, down 1.9%.

Both December gold and December silver have been in negative territory all session. Silver is one of the worst performers in the CRB Commodity index and is 2.6% lower at $25.425 per ounce. Gold is down 1.2% at $1351.50 per ounce.DJ30 -100.81 NASDAQ -20.31 SP500 -9.42 NASDAQ Adv/Vol/Dec 504/431.0 mln/1899 NYSE Adv/Vol/Dec 341/232.6 mln/2482

10:00 am : Stocks had started to pare their losses, but relief proved brief as sellers have redoubled their efforts to take stocks back to their early lows.

Though stocks mostly traded independently of the dollar in the prior session, the greenback's current 0.3% gain probably hasn't helped the case for stocks this morning.

With the broader market under stiff pressure, Treasuries have attracted strong support, such that the yield on the 10-year Note is down to 2.89% after it had been up near a three-month high of 2.95% at the close of the prior session.

Advancing Sectors: (None)
Declining Sectors: Energy (-1.6%), Materials (-1.6%), Telecom (-1.2%), Financials (-0.9%), Tech (-0.8%), Industrials (-0.8%), Utilities (-0.6%), Health Care (-0.6%), Consumer Staples (-0.2%), Consumer Discretionary (-0.1%)DJ30 -99.45 NASDAQ -18.93 SP500 -9.55 NASDAQ Adv/Vol/Dec 447/270 mln/1888 NYSE Adv/Vol/Dec 325/165 mln/2468

09:45 am : For the second straight session natural resource plays are being hit with the brunt of sellers' efforts. That has the materials sector down 1.3% and the energy sector down 1.6% after they already fell 0.9% and 0.5%, respectively, in the prior session.

Retailers have caught a bid, however. As a group their shares are up 1.2%. Their strength comes amid pleasing reports from the likes of Saks (SKS 11.87, +0.55), Dick's Sporting Goods (DKS 32.35, +2.43), and Home Depot (HD 32.37, +0.98).DJ30 -70.47 NASDAQ -13.55 SP500 -7.53 NASDAQ Adv/Vol/Dec 511/169 mln/1713 NYSE Adv/Vol/Dec 380/115 mln/2353

09:15 am : [BRIEFING.COM] S&P futures vs fair value: -5.70. Nasdaq futures vs fair value: -14.50. Futures suggest that a markedly lower start to trade is in order. The weak tone comes partly from carryover selling seen late in the prior session. Steep losses abroad -- linked to concerns rising interest rates in China and tenuous eurozone sovereign debt -- have further supported selling ahead of the open. Meanwhile, the dollar has moved off of the flat line so that it is now up 0.2% against a basket of competing currencies. Data has done nothing to turn positive the tone of premarket trade; overall producer prices for October saw only a tepid 0.4% increase and core prices actually fell 0.6% month-over-month. Net long-term Treasury Investment Capital for September totaled $81.0 billion, down from $128.7 billion in the prior month. Industrial production was unchanged in October, which is weaker than the 0.3% increase that had been expected after a 0.2% decline in the prior month. Capacity utilization remained steady at 74.8%, as generally expected. A strong outlook from both WalMart (WMT) and Home Depot (HD) has been shrugged off by the broader market.

09:05 am : S&P futures vs fair value: -4.50. Nasdaq futures vs fair value: -13.80. Domestic stock futures remain in the red. Action hasn't been any better abroad. Europe's major bourses are presently under stiff pressure. Eurozone data indicated that consumer prices increased 0.4% in October, following a 0.2% increase in September. The eurozone ZEW Survey on economic sentiment for November improved to 13.8 from 1.8 in October. Meanwhile, the German ZEW Survey on economic sentiment improved to 1.8 in November from -7.2 in October. Still, Germany's DAX is down 0.7% at the moment. Weakness is widespread there as declining issues outnumber advancers by 5-to-1. Thyssenkrupp has been one of the heaviest drags. France's CAC has fallen to a 1.4% loss. Energy giant Total (TOT) has been the biggest burden in the French bourse. BNP Paribas and ArcelorMittal (MT) have only added weight to the slide. Carrefour has shown resilience, however. In Britain, the FTSE is off by 1.3% as its declining issues outnumber its advancers by nearly 9-to-1. Rio Tinto (RIO), BHP Billiton (BHP), HSBC (HBC), and Standard Charter are having the most damaging impact on action. AstraZeneca (AZN) has attracted support after it faltered in the prior session, however. As for data out of the United Kingdom, consumer prices increased 3.2% in October after a 3.1% increase in September.

Action in Asia was weak overnight. Concern that China will increase its benchmark lending rate was further stoked amid the decision by the Bank of Korea to hike its benchmark rate to 2.5%. China's Shanghai Composite responded with a 4.0% drop. That came after it booked a decline of some 5% this past Friday. Weakness was widespread, but energy plays (-6.1%) and materials stocks (-5.4%) were hit the hardest. PetroChina (PTR) was among the worst performing individual names. It tumbled 6.5%. In Hong Kong, the Hang Seng fell 1.4%. Heavyweights HSBC, China Construction Bank, Industrial & Commercial Bank of China, and China Mobile had the most detrimental impact on trade. As for Japan, its Nikkei actually set a five-month intraday high in the early going, eventually faltered to log a 0.3% loss. Fanuc Ltd was a big drag on trade. Fast Retailing caught a strong bid in the face of broader weakness.

08:35 am : S&P futures vs fair value: -4.90. Nasdaq futures vs fair value: -14.30. Neither stock futures nor the dollar have shown much of a reaction to the latest dose of data. The October Producer Price Index increased 0.4%, which is more tepid than the 0.8% increase that had been commonly expected among economists polled by Briefing.com. The rate of increase was steady with that of the prior month. As for core prices, or those that exclude food and energy, they actually fell 0.6%, which contrasts with the consensus call for a 0.1% increase among surveyed economists. Core prices had increased 0.1% in the prior month.

08:05 am : S&P futures vs fair value: -5.00. Nasdaq futures vs fair value: -14.50. The prior session's late slide has extended into this morning. As such, stock futures point to a markedly lower start to trade. Weakness has been somewhat exacerbated by a sizable slide among Europe's major bourses and a 4.0% plunge by the Shanghai Composite. The Chinese Index already logged a 5% drop last week. Also in the backdrop are ongoing concerns about the health of sovereign debt in Europe and the health of Ireland's banks. As for corporate news, WalMart (WMT) posted lackluster numbers for the latest quarter, but issued strong guidance. Home Depot (HD) had both an upside earnings surprise and strong guidance. A handful of other retail outfits had solid results of their own. Producer price data for October is due at the bottom of the hour. Treasury International Capital Flow data for September follows at 9:00 AM ET. Shortly thereafter industrial production and capacity utilization data for October will be posted (9:15 AM ET). The dollar is up fractionally ahead of those reports.

06:44 am : S&P futures vs fair value: -7.90. Nasdaq futures vs fair value: -20.00.

06:44 am : Nikkei...9797.10...-30.40...-0.30%. Hang Seng...23693.02...-334.20...-1.40%.

06:44 am : FTSE...5729.47...-91.00...-1.60%. DAX...6730.40...-59.90...-0.90%.

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

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