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 Post subject: November 23rd Tuesday 2010 Emini TF ($TF_F) points +6.80
PostPosted: Wed Nov 24, 2010 12:28 am 
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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)

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Quote:
The Russell 2000 Emini TF futures had price action to exploit via the Volatility Trading Report (VTR) until around 1425pm est when the chop showed up. That's when I remained on the sidelines (not trading) and just study the price action to see if there was anything to learn. However, the week of the U.S. Thanksgiving is always a low volatility trading week. Thus, I'm not expecting the price action to produce any trend days or strong directional price movements this week but if such shows up...it'll keep this week of trading from being boring. With that said, I spent some time studying the Hang Seng HSI futures and NIFTY futures for a few clients.

Trade Performance for Today: +6.80 points or $680 dollars in the ICE Russell 2000 Emini TF ($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=685

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 Drop on Korea Clash, Europe Debt Concerns
Nov. 23 (Bloomberg) -- Bloomberg's Deborah Kostroun reports on the performance of the U.S. equity market today. U.S. stocks dropped for a second day after fighting broke out among North and South Korea and concern grew that Europe's debt crisis and China's efforts to tame inflation will slow the global economic rebound.

Image CNNMoney.com - Stocks Skid On Korean Hostilities
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By Ben Rooney, staff reporter
November 23, 2010: 4:42 PM ET

NEW YORK (CNNMoney.com) -- Stocks ran into a wall of worry Tuesday as violence erupted on the Korean peninsula, concerns about Europe's debt crisis expanded and the Federal Reserve issued a dour economic outlook.

The Dow Jones industrial average (INDU) fell 142 points, or 1.3%, to close at 11,036. The S&P 500 (SPX) fell 17 points, or 1.4%, to 1,181. The Nasdaq (COMP) slid 37 points, or 1.4%, to 2495.

The retreat was sparked by an exchange of artillery fire along the disputed sea border between North and South Korea Tuesday morning. The skirmish, which killed two South Korean soldiers and wounded several civilians, was one of the worst since the Korean War of the 1950s ended in armistice.

Dan Cook, chief executive at IG Markets, said thin trading volumes could be amplifying the market's reaction to the Korean hostilities, "but this is still major," he added.

"The uncertainty is so great and the implications could be huge," he said. "People are getting out of risk assets and in some cases going to cash," he added

In the currency market, the U.S. dollar and the Japanese yen both rose sharply. Gold prices and U.S. Treasuries also moved higher as investors flocked to safe haven assets.

The stock declines were broad based. Hewlett Packard (HPQ, Fortune 500) was the only Dow stock in the black. Shares of the computer maker rose 0.9%, after it reported better-than-expected quarterly results.

Chevron (CVX, Fortune 500) and Exxon (XOM, Fortune 500) both fell about 2% as the stronger dollar pressured oil prices. The dollar also weighed on shares of big multinational firms such as IBM (IBM, Fortune 500), Caterpillar (CAT, Fortune 500) and 3M (MMM, Fortune 500).

* Video - Slow economic incline ahead

Concerns about long-term debt problems facing some major European economies had already been hanging over the market this week.

Investors are growing nervous about Spain and Portugal after officials in Ireland officially requested loans from the European Union and the International Monetary Fund over the weekend.

"Portugal is almost assuredly going to take a bailout," said Dan Greenhaus, chief market strategist with Miller Taback & Co. "The question then becomes how much Spain will need," he said, adding that estimates range between $300 billion and $400 billion.

Meanwhile, the Federal Reserve lowered its outlook for U.S. economic growth this year and next. The central bank also projected that unemployment would remain elevated into next year, according to meeting minutes.

But the bleak forecast was expected, and investors are more concerned about geopolitical risks, according to Greenhaus.

Traders said the market could be choppy this week, with many money managers taking time off ahead of the Thanksgiving holiday. All U.S. markets will be closed Thursday.

Wednesday brings reports on personal income and spending, as well as durable goods orders, data on weekly unemployment claims and new home sales for October.

Stocks ended mixed Monday, as shares of big banks fell after federal law enforcement officials searched the offices of three prominent hedge funds, in what is said to be a large-scale insider trading probe.

* Stock portfolio makeover: Buy, sell or hold

Economy: The Federal Reserve lowered its estimates for U.S. economic growth this year and next, and raised its outlook for unemployment.

The Fed now expects 2010 gross domestic product to increase between 2.4% and 2.5% this year, compared with an earlier projection of growth between 3% and 3.5%. In 2010, the Fed predicts GDP in the range of 3% to 3.6%, down from the last forecast in June.

Earlier, government data showed the U.S. economy grew at a better than expected 2.5% annual rate in the third quarter, faster than 2% rate previously reported.

The Fed also said the unemployment rate will be between 9.5% and 9.7% for all of 2010. Next year, the bankers believe joblessness could be as high as 9.1%, compared with a previous estimate of between 8.3% and 8.7%.

Minutes from the Fed's most recent policy meeting showed that officials were divided over the central bank's recent plan to boost the economy by purchasing $600 billion in U.S. Treasuries.

On the housing front, existing home sales declined 2.2% to a seasonally adjusted annual rate of 4.43 million in October from 4.53 million in September, according to the National Association of Realtors. Economists had expected a sales rate of 4.42 million in the month.

* Dollar soars as euro crisis deepens

Companies: Clothing retailer J. Crew (JCG) agreed to be acquired by buyout firms TPG Capital and Leonard Green & Partners for $2.8 billion. Shares of J. Crew rose about 16% shares had been halted most of the morning after rallying as much as 22% in premarket trading.

Blackstone Group's pursuit of electric power provider Dynegy (DYN) has come to an end after activist shareholders objected to the takeover, Dynegy said in a statement.

World markets: The tensions in Korea dragged stock prices lower around the world.

Britain's FTSE 100 and the DAX in Germany both slipped 1.5%, while France's CAC 40 lost 2.3%.

In Asia, South Korea's Kospi index ended 0.7% lower. The Shanghai Composite lost 1.9% and the Hang Seng in Hong Kong dropped 2.7%. Japan's market was closed for a holiday.

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

Oil for January delivery slipped 49 cents to $81.25 a barrel.

Gold futures for January delivery rose $19.80 to close at $1,377.60 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury rose, pushing the yield down to 2.76% from 2.81% late Friday.

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Image Yahoo! Finance - Market Update

4:30 pm : Participants kept stiff and steady pressure on stocks all session. Their efforts came amid news that military tension has intensified between North Korea and South Korea, and ongoing contagion concerns for Europe.

Each of the major equity averages tumbled more than 1% today. Downside momentum took the Dow below the 11,000 before it settled on its 50-day moving average and the S&P 500 moved below 1180 before it recovered to that point. Sell-offs of a similar degree were made abroad. Collective weakness left the Dow Jones World Index to drop 1.9% in its worst single-session slide since August.

The push to dump stocks came in response to news that artillery fire was exchanged overnight between North Korea and South Korea. Though tension between the two nations has been persistent, the latest episode marks a dramatic escalation of the tone between them.

That development added to the distress of market participants, who have long held concern for the fragile state of finances among countries in the European Union periphery. Even Ireland remains a point of worry as it has yet to completely structure a bailout package and implement austerity measures.

Distress and uncertainty moved many into the relative safety of the dollar, which was up 1.3% against competing currencies at the close of trade. The advance marked its biggest one-day bounce in a month and put the currency at its best level in almost two months.

Only a few pockets of strength were seen this session. Hewlett-Packard (HPQ 44.19, +0.94) was the only blue chip in the Dow to post a gain. Its strength was owed to better-than-expected earnings and upside guidance.

J.Crew (JCG 43.99, +6.34) registered a big gain in response to news that it will be taken private for $43.50 per share, a premium of about 15% relative to the prior session's closing price. It helped limit pressure against other retailers, but the group still booked a 0.8% loss.

Upward revisions to third quarter GDP failed to provide fodder for buyers. The data indicated that GDP grew 2.5% from July through September. Advance data had initially indicated that GDP had increased 2.0% in that time. Economists polled by Briefing.com had expected the revised data to reflect growth of 2.4%.

Reflective of the GDP data, minutes from the most recent FOMC meeting generally indicated that the economic recovery has proceeded at a modest rate in recent months. However, there has been only a gradual improvement in labor market conditions. Also, inflation remains low.

Among meeting members, most saw the risks to growth as broadly balanced, but some saw the risks as tilted to the downside. A majority saw the risks to inflation as balanced, but some saw downside risks. Members also differed in their assessments of the likely benefits and costs associated with the latest program of quantitative easing.

Treasuries displayed strength in the early going as participants sought their relative safety, but they gave up a chunk of their gains following results from an auction of 5-year Notes. The auction attracted a bid-to-cover ratio of 2.65, dollar demand of $92.8 billion, and an indirect bidder participation rate of 31.5%.

Advancing Sectors: (None)
Declining Sectors: Energy (-1.9%), Materials (-1.7%), Financials (-1.6%), Tech (-1.5%), Consumer Discretionary (-1.4%), Industrials (-1.3%), Health Care (-1.3%), Utilities (-1.1%), Consumer Staples (-1.1%), Telecom (-0.9%)DJ30 -142.21 NASDAQ -37.07 NQ100 -1.6% R2K -1.0% SP400 -1.1% SP500 -17.11 NASDAQ Adv/Vol/Dec 662/1.90 bln/1994 NYSE Adv/Vol/Dec 671/1.02 bln/2356

3:30 pm : Commodities were mixed for a second straight session. Grains (+1.2%) were the largest advancing group, while industrials (-1.6%) was the largest declining group. March cotton fell 5.1% to its lowest levels in a month.

Dec gold rallied for 1..3% to finish at $1377.60 per ounce. Gold posted its biggest gains in over two weeks on the back of heighted tensions between North and South Korea. Dec silver ended up 0.2% to $27.57 per ounce. It was a rather uneventful session for silver.

Jan crude oil finished lower by 0.3% to $81.25 per barrel, while Dec natural gas ended off 0.2% to $4.26 per MMBtu. DJ30 -153.51 NASDAQ -40.13 SP500 -17.67 NASDAQ Adv/Vol/Dec 604/1.5 bln/2039 NYSE Adv/Vol/Dec 600/712.9 mln/2391

3:00 pm : Minutes from the most recent FOMC meeting were released at 2:00 PM ET. A summary of the minutes indicates that the economic recovery proceeded at a modest rate in recent months, with only a gradual improvement in labor market conditions, and was accompanied by a continued low rate of inflation.

Meeting members generally agreed that the most likely economic outcome would be a gradual pickup in growth with slow progress toward maximum employment. However, most saw the risks to growth as broadly balanced while many saw the risks as tilted to the downside. A majority saw the risks to inflation as balanced, but some saw downside risks.

Pertaining to further quantitative easing measures, voting members differed in their assessments of the likely benefits and costs associated with the program. Most participants judged that a program of purchasing additional longer-term securities would put downward pressure on longer-term interest rates and boost asset prices. Some observed that it could also lead to a reduction in the foreign exchange value of the dollar. Still, most expected these changes in financial conditions to help promote a somewhat stronger recovery in output and employment while also helping return inflation, over time, to levels consistent with the Committee's mandate. DJ30 -150.69 NASDAQ -38.35 SP500 -16.97 NASDAQ Adv/Vol/Dec 604/1.39 bln/2022 NYSE Adv/Vol/Dec 601/650 mln/2390

2:30 pm : The S&P 500 continues to trade along the 1180 line and the Dow remains slightly above the 11,000 line as this session's slide consolidates.

Meanwhile, the dollar has pushed up to a fresh session high. It is now up 1.3% against a basket of major foreign currencies. DJ30 -171.20 NASDAQ -42.31 SP500 -19.25 NASDAQ Adv/Vol/Dec 569/1.29 bln/2051 NYSE Adv/Vol/Dec 571/606 mln/2426

2:00 pm : Stocks are still under stiff pressure and remain within a couple of points of their session lows. The negative tone has been present since the open.

Given the scope of losses in the U.S., as well as those abroad, the Dow Jones World Index is down 1.9%. That makes for its worst single-session performance of the past three months. DJ30 -144.48 NASDAQ -37.00 SP500 -16.79 NASDAQ Adv/Vol/Dec 616/1.19 bln/1975 NYSE Adv/Vol/Dec 624/550 mln/2346

1:30 pm : Treasuries have given up some of their gains in the wake of a 5-year Note auction that featured rather weak demand. In fact, dollar demand was the weakest since July 2009. Specific to the auction, it attracted a bid-to-cover ratio of 2.65, dollar demand of $92.8 billion, and an indirect bidder participation rate of 31.5%. For comparison, the prior auction attracted a bid-to-cover ratio of 2.82, dollar demand of $98.7 billion, and an indirect bidder participation rate of 39.5%. The average for the past three auctions features a bid-to-cover ratio of 2.87, dollar demand of $101.4 billion, and an indirect bidder participation rate of 46.8%. DJ30 -137.90 NASDAQ -37.14 SP500 -15.36 NASDAQ Adv/Vol/Dec 606/1.09 bln/1992 NYSE Adv/Vol/Dec 615/500 mln/2337

1:05 pm : Sellers are control this session. Their efforts have been underpinned by concerns of contagion in Europe and escalated military tension between North Korea and South Korea.

Market participants remain concerned about the tenuous state of finances among countries in the European Union periphery, as well as the challenge of structuring a bailout package and implementing austerity measures in Ireland. Also alarming to investors is news that bilateral military tensions have escalated between North Korea and South Korea.

Distress over those developments sent Germany's DAX down 1.7%, France's CAC to a 2.5% loss, and Britain's FTSE 1.8% lower. The Shanghai Composite fell 1.9% and the Hang Seng sank 2.7%.

Meanwhile, domestic equities have been hit hard with broad-based selling, such that all 10 major sectors are in the red. Of them, only telecom has managed to limit its loss to less than 1% -- it is currently down 0.6%.

This session's sell-off has stocked volatility, such that the Volatility Index is up more than 13% so that it is above its 50-day moving average of 20.7.

Amid the increase in volatility and the move to pare risk, the dollar has bounced to a one month high against competing currencies. It currently sports a 1.1% gain.

Participants paid little attention to news that third quarter GDP was revised higher to reflect growth of 2.5%, which is richer than the 2.4% growth that had been expected among economists polled by Briefing.com.

Existing home sales for October were less pleasing, though generally in step with what had been expected. They fell 2.2% month-over-month to an annualized rate of 4.43 million units.

Corporate news has had absolutely no effect on overall trade. Still, news that Hewlett-Packard (HPQ 43.76, +0.53) had better-than-expected earnings and issued upside guidance has made the stock one of the few blue chips in the Dow to stage a gain.

However, a handful of retailers have been helped by news that J.Crew (JCG 43.84, +6.19) will be taken private for $43.50 per share, a premium of about 15% relative to the prior session's closing price.

Treasuries remain in strong shape ahead of results from an auction of 5-year Notes at 1:00 PM ET. DJ30 -143.43 NASDAQ -37.82 SP500 -15.85 NASDAQ Adv/Vol/Dec 597/1.04 bln/1983 NYSE Adv/Vol/Dec 609/465 mln/2342

12:30 pm : The Dow recently dipped below the 11,000 line, but it has since recovered from its session low. Among blue chips, Hewlett-Packard (HPQ 43.65, +0.40), Pfizer (PFE 16.70, +0.07), and Verizon (VZ 32.54, +0.04) are the only three that have mustered gains. In contrast, tech issues like IBM (IBM 143.02, -2.37) and Microsoft (MSFT 25.17, -0.56) are among the worst performing blue chips. DJ30 -147.89 NASDAQ -42.16 SP500 -16.96 NASDAQ Adv/Vol/Dec 486/925 mln/2084 NYSE Adv/Vol/Dec 510/425 mln/2420

12:00 pm : Stocks recently moved down another leg to set a new session low. The selling has stoked volatility, sending the Volatility Index up more than 15% so that it is above its 50-day moving average of 20.7. Volatility had heated up in the prior session as stocks were hit with selling, but it cooled as stocks rebounded into the prior session's close.

The combination of stiff selling among stocks and a spike in volatility has prompted a bid for Treasuries. As such, the benchmark 10-year Note is up a healthy 15 ticks so that its yield is just below 2.75%. Meanwhile, the 5-year Note is up seven ticks so that its yield is down to 1.37% ahead of its auction results at 1:00 PM ET. DJ30 -161.96 NASDAQ -44.36 SP500 -18.10 NASDAQ Adv/Vol/Dec 473/830 mln/2082 NYSE Adv/Vol/Dec 486/388 mln/2431

11:30 am : The dollar has extended its rally so that it is now up 1.2%, which puts it at a session high and its best level in almost two months. Most of the greenback's gain has come against the euro, which has fallen 1.8% relative to the dollar. Not only does that precipitous drop mark the euro's worst single-session retreat in more than three months, but it also puts the currency near its worst level in two months.

The swings among the currencies come amid continued concern about the tenuous state of finances among countries in the European Union periphery, and the challenge that Ireland faces in structuring a bailout package and implementing austerity measures. Those concerns have only been exacerbated by reports of bilateral military tensions between North Korea and South Korea. DJ30 -179.75 NASDAQ -46.22 SP500 -20.20 NASDAQ Adv/Vol/Dec 449/718 mln/2084 NYSE Adv/Vol/Dec 438/342 mln/2474

11:00 am : Stocks continue to chop along their lows for the day. While pressure remains broad based, energy stocks are under the most pressure as they contend with a 2.2% loss.

The energy sector's outsized slide hasn't left any of its members unscathed. In fact, all 39 of its components are in the red. However, losses are especially pronounced among oil and gas drillers (-2.6%), oil and gas equipment issues (-2.3%), and oil and gas exploration plays (-2.3).

Lower oil prices certainly haven't helped the case for energy stocks, although the price of the energy commodity has improved a bit so that it is now at $81.05 per barrel with a 0.8% loss. DJ30 -125.90 NASDAQ -29.96 SP500 -15.46 NASDAQ Adv/Vol/Dec 536/568 mln/1920 NYSE Adv/Vol/Dec 513/280 mln/2349

10:35 am : The dollar index is trading 1% higher and near session highs currently at 79.476, which is pressuring commodities.

The energy market is weak with all related commodities (Crude, nat gas, RBOB and heating oil) over 1% lower. January crude oil has been in the red since the overnight session and is currently 1.4% lower at $80.63 per barrel. December natural gas is 1.7% lower at $1.20 per MMBtu.

Despite today's strength in the dollar index, precious metals are the best performing commodities in the CRB index. December gold is the best performer with 1.7% in gains, trading at $1378.10 per ounce. December silver is 0.6% higher at $27.63 per ounce.

In industrial commodities, cotton futures fell the exchange limit for a second session in a row. Cotton is currently down 6 cents (or 5.1%), to $1.1179/lb, which extends losses that have been seen since it hit new contract highs of $1.4711 on November 9. Since then, cotton is 24% lower, but is still 45% higher Yo. DJ30 -143.65 NASDAQ -33.25 SP500 -16.07 NASDAQ Adv/Vol/Dec 418/438.7 mln/1979 NYSE Adv/Vol/Dec 406/224.3 mln/2416

10:00 am : Sellers have redoubled their efforts in the early going to push the S&P 500 through support levels in the 1184 to 1186 zone. The effort has been broad based in that all 10 major sectors are in the red with losses of at least 1.0%.

Existing home sales for October were just released. They fell 2.2% month-over-month to an annualized rate of 4.43 million units, which is essentially on par with the 4.42 million units that had been expected among economists polled by Briefing.com. DJ30 -137.74 NASDAQ -31.68 SP500 -16.22 NASDAQ Adv/Vol/Dec 326/255 mln/1970 NYSE Adv/Vol/Dec 331/151 mln/2435

09:45 am : Stocks are under stiff, broad-based pressure, but the opening slide has steadied with the S&P 500 probing its prior session lows in the 1184 to 1186 zone.

Though also in the red, retailers have managed to limit their collective loss to just 0.5%, which is less than half of what the broader market has suffered so far. Retailers have been helped by news that J.Crew Group (JCG, halted) will be taken private by TPG and the firm's CEO for $43.50 per share, a premium of about 15% over the prior session's closing price. Peers like Gap (GPS 20.89, +0.30) are up sharply in conjunction with the announcement.

Meanwhile, buying among Treasuries has the yield on the benchmark 10-year Note down to 2.75%, which makes for its lowest level in just over a week. DJ30 -102.14 NASDAQ -22.19 SP500 -11.56 NASDAQ Adv/Vol/Dec 331/154 mln/1879 NYSE Adv/Vol/Dec 373/100 mln/2333

09:15 am : S&P futures vs fair value: -11.00. Nasdaq futures vs fair value: -15.30. Stocks look like they're headed for a sharply lower start, such that the S&P 500 will likely probe the prior session's lows. The weak tone of trade comes in response to news of escalated military tension between North Korea and South Korea. There are also continued concerns about contagion among the countries in the Eurozone periphery. In turn, a strong quarterly report from Hewlett-Packard (HPQ) has been overshadowed, as has news that J.Crew (JCG) will be taken private for $43.50 per share. Little has been made of a sharper-than-expected upward revision to third quarter GDP, which registered a 2.5% increase. With global participants looking to pare risk, the dollar has been bid higher to a 0.7% gain and Treasuries are up strongly ahead of results from an auction of 5-year Notes at 1:00 PM ET. Also on the docket for today are monthly existing home sales numbers at 10:00 AM ET and minutes from the latest FOMC meeting at 2:00 PM ET.

09:05 am : S&P futures vs fair value: -11.00. Nasdaq futures vs fair value: -15.30. Futures for the S&P 500 remain under sharp pressure. Similar weakness continues to be seen in Europe, where the major bourses are down sharply for the second straight session. The slide there comes amid continued contagion concerns about sovereign debt and tenuous financial conditions among countries along the periphery of the European Union. Conflict between North Korea and South Korea has only exacerbated the weak tone. Germany's DAX is down 1.0% at the moment. Volkswagen is among the weaker performers after it set a three-year high yesterday. Fellow automaker BMW has shown some resilience in the face of broader market weakness, however. As for data, Germany's third quarter GDP increased 0.7%, just as it did in the second quarter. The country's PMI for November improved to 58.9 from 56.6 in October, and the PMI Services Index for November improved to 58.6 from 56.0 in October. France's CAC has fallen to a 1.8% loss as declining issues take a 7-to-1 edge over advancers. BNP Paribas, Societe Generale, and Total (TOT) have led the slide. Data indicated that France's PMI Index for November increased to 57.5 from 55.2 in October and the PMI Services Index increased to 55.7 from 54.8 in October. As for Britain's FTSE, it has fallen to a 1.1% loss. Rio Tinto (RIO), HSBC (HBC), and Standard Charter have had the most adverse effect on trade. BP Plc (BP) has shown strength in the face of broader weakness, however. As an aside, eurozone data indicated that the Manufacturing PMI for November increased to 55.5, up from 54.6 in October.

Action in Asia was weak overnight. News that tension between North Korea and South Korea escalated to the point of military fire prompted selling. The Shanghai Composite closed with a 1.9% loss. Heavyweights PetroChina (PTR), China Petroleum (SNP), and China Life Insurance caused the most damage. In Hong Kong, the Hang Seng fell 2.7% as all 45 of its stocks finished lower. Industrials were collectively the worst performing group; they tumbled 3.7%. China Construction Bank was among the worst individual performers. Its shares fell 2.5% so that they are now down nearly 10% for the past five sessions. Japan's Nikkei was closed for holiday observance.

08:35 am : S&P futures vs fair value: -10.00. Nasdaq futures vs fair value: -13.00. Stock futures remain under pressure and have been generally unfazed by revisions to third quarter GDP data. The updated data indicate that overall economic activity expanded at an annualized clip of 2.5%, which is more robust than the 2.0% that had been reported in the preliminary reading and more heady than the 2.4% growth that had been expected among economists polled by Briefing.com. The stronger-than-expected GDP reading was helped by the personal consumption component, which was revised upward to reflect a 2.8% increase after it had been initially reported as a 2.6% increase. The GDP Price Index increased 2.3%, as expected and unchanged from the first estimate.

08:05 am : S&P futures vs fair value: -12.10. Nasdaq futures vs fair value: -18.00. Stocks rebounded in the prior session for a mixed finish, but sellers have renewed their efforts amid news that military tensions have intensified between North Korea and South Korea. Such geopolitical strain has stirred support for the dollar, which is currently up 0.5% against competing currencies. The news has also overshadowed a few positive developments from the corporate space, including better-than-expected earnings and upside guidance from Hewlett-Packard (HPQ) and a bottom line beat by Medtronic (MDT) and news that it will acquire the rest of Ardian. However, there could be some catalysts for change on the way with third quarter GDP revisions due at 8:30 AM ET, existing home sales numbers for October due at 10:00 AM ET, results from an auction of 5-year Notes due at 1:00 P ET, and minutes from the latest FOMC meeting to follow at 2:00 PM ET.

06:27 am : S&P futures vs fair value: -5.50. Nasdaq futures vs fair value: -5.80.

06:27 am : Nikkei...Holiday......... Hang Seng...22896.14...-627.90...-2.70%.

06:27 am : FTSE...5659.93...-20.60...-0.40%. DAX...6823.25...+2.50...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/bar analysis)
Price Action Only Trading (no indicators)
Image@ http://twitter.com/wrbtrader and http://stocktwits.com/wrbtrader

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