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 Post subject: January 20th Thursday 2011 Emini TF ($TF_F) points +13.80
PostPosted: Thu Jan 20, 2011 10:24 pm 
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Trade Results of M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
Price Action Trading (no technical indicators)
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click on the above image to view today's trading summary

Quote:
The last trade of the day was a Long position @ 1350pm that netted +2.10 points per contract. Also, it was my best trade of the day. This was a low risk trade for me because it tested several reaction points and a WRB Zone from the morning price action. If you have any questions about my trading, want more details about the trade signal behind a particular trade or want to reply about something stated in this message post...click here.

Trade Performance for Today: +13.80 points or $1380.00 dollars in the Russell 2000 Emini TF ($TF_F) Futures.
Russell 2000 Emini TF Futures - 1 tick or 0.10 = $10.00 dollars and there's more contract information @ The ICE.
S&P 500 Emini ES Futures - 1 tick or 0.25 = $12.50 dollars and there's more contract information @ CMEGroup.

In addition, today's #FuturesTrades trading 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=86&t=731. However, be advised that I'm frequently testing new trade signal methods or new trade management rules (e.g. stop/loss, trailing stops, profit targets, order types, time frames, workstation templates et cetera) after entry of existing profitable trade signal methods whenever market conditions change. Thus, adapting is a critical variable to my consistent profits along with preventing me from becoming complacent in my trading...this helps avoid trading account drawdowns.

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/viewtopic.php?f=5&t=180.

Image Volatility Trading Report (VTR) @ http://www.thestrategylab.com/VolatilityTrading.htm and there's a free trade signal strategy @ http://www.thestrategylab.com/tsl/forum/viewforum.php?f=89 so that you can freely test drive one of our trade strategies with support prior to purchasing the Volatility Trading Report (VTR).

Image Trading Plan Daily Routine @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=128&t=854

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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 CNNMoney.com - Stocks Trim Losses, Close Modestly Lower
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click on the above image to view today's price action of key markets

By Ben Rooney, staff writer
January 20, 2011: 6:51 PM ET

NEW YORK (CNNMoney) -- U.S. stocks recovered from early weakness Thursday to close modestly lower as technology shares remained weak and worries about the downside of China's robust economy hung over the market.

The Dow Jones industrial average (INDU) lost nearly 3 points, or less than 0.1%, to close at 11,822.8. The S&P 500 (SPX) slid over 1 point to end at 1,280. The tech-heavy Nasdaq (COMP) fell 21 points, or 0.7%, to close at 2,704.

After the market closed, Google (GOOG, Fortune 500) reported quarterly earnings and sales that topped analysts' expectations and reshuffled its management. The search giant said Eric Schmidt is stepping down as chief executive, with cofounder Larry Page taking over in April.

Google shares edged up 1% in after hours trading.

Also after the bell, Hewlett-Packard (HPQ, Fortune 500) announced that four directors are stepping down. Five new directors will join the company's board, including ex-eBay CEO Meg Whitman.

Stocks opened lower Thursday after a stronger-than-expected report on China's gross domestic product "spooked people that China has more tightening to do than we originally thought," said Paul Zemksy, head of asset allocation at ING Investment Management.

"China is a very important part of the recovery and expansion of global GDP," he said. "Until we see signs of moderation in their growth and a slowdown in inflation, I think the market is going to be a bit jittery about that."

Companies with exposure to China were among the worst performers on the Dow, including Caterpillar (CAT, Fortune 500), Du Pont (DD, Fortune 500) and Boeing (BA, Fortune 500). But consumer-linked stocks such as Wal-Mart (WMT, Fortune 500), Procter & Gamble (PNG) and Home Depot (HD, Fortune 500) were the top gainers on the blue-chip index.

Bank stocks, which have been battered by mixed earnings results, regained some ground. Bank of America (BAC, Fortune 500) and JPMorgan (JPM, Fortune 500) were both up over 1%. Morgan Stanely (MS, Fortune 500) was up 4.5% after it posted better than expected quarterly earnings, but missed on sales

In the technology sector, shares of F5 Networks (FFIV) plunged 20% after the maker of Internet networking devices issued a dour outlook for the second quarter.

Commodity prices were also under pressure. Oil prices sank after the government reported a surprise jump in U.S. crude supplies. Gold and silver prices fell as the dollar strengthened.

The retreat came despite better-than-expected reports on U.S. home sales and weekly claims for unemployment benefits. Some traders said the market appears to be entering a "correction" phase, although any retreat is expected to be modest.

"With so much bullishness in the market, it's not surprising to see a bit of a pullback," said Brian Gendreau, market strategist at advisory firm Financial Network.

On Wednesday, stocks ended lower, with tech stocks getting hammered and the Nasdaq suffering its biggest one-day loss in nearly two months.

Economy: The number of Americans filing for first-time unemployment insurance eased by 37,000 to 404,000 last week. The number was lower than forecast.

The National Association of Realtors said sales of existing homes rose 12% in December to a seasonally adjusted annual rate of 5.28 million. The total was much larger than expected.

The Philadelphia Fed index, a regional reading on manufacturing, edged down in December. And the index of Leading Economic Indicators increased more than expected in December.

World markets: Asian markets ended sharply lower following China's GDP report. The Shanghai Composite tumbled 2.9%, the Hang Seng in Hong Kong lost 1.7% and Japan's Nikkei fell 1.1%.
0:00 /01:10China growth: Ouch!

China's gross domestic product, the broadest measure of economic output, expanded at an annual rate of 9.8% in the fourth quarter of 2010. The rate was faster than the 9.6% rate reported in the prior quarter, according to the National Bureau of Statistics.

Meanwhile, inflation cooled -- with the nation's consumer price index rising 4.6% last month, compared to 5.1% in November.

China's rapid growth has sparked fears that its economy may overheat, and many economists are expecting China to further tighten its monetary policy and hike interest rates.

European stocks also slumped. Britain's FTSE 100 slid 1.8%, the DAX in Germany fell 0.8% and France's CAC 40 edged down 0.3%.

Companies: Google said its net income in the fourth quarter rose to $2.5 billion, up 29% from a year earlier.

The results included one-time charges of 94 per share. Without the charges, Google said it earned $8.76 per share. Analysts polled by Thomson Reuters, who typically exclude one-time items from their estimates, forecasted earnings of $8.10 per share.

Sales for the company rose 26% to $8.4 billion. Excluding advertising sales that Google shares with partners, the company reported revenue of $6.3 billion, which topped analysts' forecasts of $6.1 billion.

Morgan Stanley (MS, Fortune 500) posted fourth-quarter earnings of $1.1 billion, or 43 cents a share. Revenue rose 14% from a year earlier to $7.8 billion. Analysts expected the investment bank to report earnings per share of 35 cents on revenue of $7.35 billion. Shares of Morgan Stanley rose 4%.
0:00 /3:50BullHorn: China looks YUM-my

Wendy's/Arby's Group shares spiked 9% after the fast food giant announced it may sell its struggling Arby's roast beef sandwich chain to focus resources exclusively on the Wendy's brand.

F5 Networks said it expects to report second-quarter sales in the range of $275 million to $280 million. Wall Street analysts surveyed by Thomson Financial were expecting revenues between $272 million and $308 million.

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

Oil for March delivery fell $2.22 to close at $89.59 a barrel.

Gold futures for February delivery fell $23.70 to settle at $1,346.50 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury fell, pushing the yield up to 3.45% from 3.34% late Wednesday.

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Image Yahoo! Finance - Market Update

4:30 pm : Stocks tried to rally back from another stiff selling effort, but the broader market's inability to extend beyond the neutral line led stocks to waver into the close.

Sellers attempted to take control of trade right away. Their efforts were motivated by worries that China might have to tighten monetary policy to contain inflation after the country reported that its economy expanded at a torrid clip of 9.8% in the fourth quarter. Some stepped in with a bid that took the S&P 500 and the Dow back to the neutral line, but resistance there encouraged sellers to redouble their efforts.

For the second straight session the Nasdaq was hit the hardest. At its session low, the tech-rich Index was down 1.4%. The S&P 500 was down 0.8% and the Dow was down 0.7% at their worst levels of the day. Selling pressure began to ease midsession, though there wasn't any headline to account for the shift in sentiment. Amid the improved tone stocks staged a gradual climb in afternoon action, but neither the Dow nor the S&P 500 could do more than briefly poke into positive territory before drifting into the close.

eBay (EBAY 30.78, +1.68) was one of the few strong performers in the Nasdaq today. Its near 6% surge followed better-than-expected earnings and strong guidance. Fell Nasdaq component Google (GOOG 626.77, -4.98) was weak ahead of its latest report.

Morgan Stanley (MS 29.02, +1.27) was a standout in the broader market, thanks to an upside earnings surprise. It led the financial sector to a 0.5% gain, even though regional lenders like FifthThird (FITB 14.22, -0.39) and PNC Financial (PNC 61.00, -0.81) lagged following strong results of their own.

Freeport McMoRan (FCX 110.90, -4.26) also tumbled after it reported better-than-expected earnings. It was caught up in a push against basic materials stocks, which collectively fell to a 1.5% loss.

There was a substantial dose of data to digest this morning. It included news that initial jobless claims for the week ended January 15 came in at 404,000, which is below the 425,000 initial claims that had been widely expected. The week-over-week decline took the four-week moving average down to 411,750. As for continuing claims, they fell to 3.86 million from 3.89 million.

Existing home sales for December spiked 12.3% to an annualized rate of 5.28 million units. Not only is that better than the rate of 4.80 million units that had been widely expected, but it was also the highest rate since Spring.

Leading indicators for December increased by 1.0%. That bested the 0.6% increase that was widely expected, but it remained on level with what had been recorded for the prior month.

The Philadelphia Fed Index for January was a bit disappointing. It came in at 19.3, which is both shy of the 20.0 that had been anticipated and below the downwardly revised reading of 20.8 for the prior month.

The dollar scored only its second gain in nine sessions with a 0.2% advance against a basket of major foreign currencies. Most of that move came against the yen, which was down 1.2% to 83.0 yen per dollar at the closing bell.

Treasuries turned sharply lower in the face of a weaker equity market. They had already been under pressure, but their slide steepened with the release of results from a $13 billion auction of 10-year TIPS. Weak demand at the auction caused the benchmark 10-year Note to drop to a loss of about a full point. It settled off of that low so that its yield was just shy of 3.45%.

Tomorrow's economic calendar is empty so most of the market's attention will be on the latest from Dow components General Electric (GE 18.43, +0.10) and Bank of America (BAC 14.54, +0.17).

Advancing Sectors: Utilities (+0.6%), Financials (+0.5%), Consumer Staples (+0.4%), Consumer Discretionary (+0.2%), Health Care (+0.2%)
Declining Sectors: Telecom (-0.2%), Industrials (-0.4%), Tech (-0.7%), Energy (-0.7%), Materials (-1.5%)DJ30 -2.49 NASDAQ -21.07 NQ100 -0.8% R2K -1.1% SP400 -0.8% SP500 -1.66 NASDAQ Adv/Vol/Dec 731/2.33 bln/1908 NYSE Adv/Vol/Dec 1124/1.19 bln/1845

3:30 pm : Commodities finished mixed, once again, on the session, with grains (+1.1%) leading the way higher and precious metals (-2.7%) leading the decliners.

Precious metals sold off today on concerns about continued tightening in China following better-than-expected GDP data. Feb gold finished lower by 1.5% to $1345.60 per ounce, while March silver dropped 4.2% to close at $27.47 per ounce. Gold's lows, at $1342.40, represent its lowest levels in 2 months, while silver's low at $27.37 represent its lowest levels in over 1.5 months.

March crude oil ended lower by 2.3% to $89.61 per barrel. It too sold off on concerns about continued tightening in China. In fact, this morning's inventory data had little effect on prices. Crude oil's lows, at $88.90, marked its worst levels in about two weeks. Feb natural gas rallied for 2.5% to close at $4.69 per MMBtu, following bullish inventory data. It notched highs at $$4.703, its best level since early Jan.DJ30 -4.92 NASDAQ -18.57 SP500 -1.39 NASDAQ Adv/Vol/Dec 797/1.9 bln/1798 NYSE Adv/Vol/Dec 1232/878.9 mln/1725

3:00 pm : The Dow and S&P 500 have struggled to turn their rebound into any kind of a material gain. Instead, they both remain mired near the neutral line. The Nasdaq has also been slow to extend its move beyond its morning high.

Outside of stocks, the dollar has turned lower in recent trade. It is still up 0.2% against a basket of major foreign currencies, though.

Treasuries are still trading near their session lows so that the yield on the benchmark 10-year Note remains above 3.45%. DJ30 +7.27 NASDAQ -13.98 SP500 +0.34 NASDAQ Adv/Vol/Dec 1206/719 mln/1752 NYSE Adv/Vol/Dec 793/1.60 bln/1798

2:30 pm : The Dow has poked into positive territory, but resistance at the neutral line has kept the S&P 500 from joining it there. As for the Nasdaq Composite, it is still down markedly on the day, but its loss is now only half of what it was at its session low.

JPMorgan Chase (JPM 44.97, +1.26) and Wal-Mart (WMT 55.99, +0.96) are primary leaders among blue chips. Meanwhile, eBay (EBAY 30.54, +1.44) has been a leader in both the S&P 500 and the Nasdaq. DJ30 +7.99 NASDAQ -18.08 SP500 -0.65 NASDAQ Adv/Vol/Dec 701/1.53 bln/1892 NYSE Adv/Vol/Dec 1087/678 mln/1866

2:00 pm : Stocks have resumed their rebound. The Dow is now near the neutral line while the S&P 500 is close behind.

Treasuries have turned lower in recent trade. Part of their sell-off comes in response to results from a $13 billion auction of 10-year TIPS. The benchmark 10-year Note is now down nearly a full point so that its yield is at a weekly high of 3.46%. Farther out on the yield curve, the 30-year Bond is down 50 ticks so that its yield is up to 4.63%. DJ30 -5.71 NASDAQ -25.50 SP500 -2.46 NASDAQ Adv/Vol/Dec 743/1.40 bln/1811 NYSE Adv/Vol/Dec 1104/616 mln/1832

1:30 pm : Shares of Visa (V 70.05, +0.93) and MasterCard (MA 236.50, +1.14) have made a nice jump out of the red in recent trade. The move has been attributed to headlines indicating that Representative Frank supports changes the Dodd-Frank interchange provision.

However, the broader market has slowed its recent rebound effort to take a bit of a breather -- the move saw the S&P 500 climb from a session low of 1271 to almost 1279 in a matter of 90 minutes. DJ30 -23.00 NASDAQ -28.46 SP500 -4.62 NASDAQ Adv/Vol/Dec 739/1.40 bln/1812 NYSE Adv/Vol/Dec 1105/613 mln/1830

1:05 pm : A broad-based sell-off sank stocks earlier this session, but they have spent the past 90 minutes cutting their losses. The Dow and S&P 500 are now approaching the neutral line, but the Nasdaq is still down deeply for the day.

The prior session's slide fed overnight selling interest in Asia. Weakness there was exacerbated by concern that China might need tighter monetary policy, given that the country's rapid growth has some worried about the threat of inflation. Losses among Asia's averages ranged from 1% to more than 2%.

The dour tone abroad and concern about the implications of tighter policy in China provided an excuse for sellers to pressure stocks in the early going. Half-hearted buying broad the broader market back to the neutral line, but it was met with resistance there.

Stocks really didn't attract any support until the S&P 500 came within a couple of points of last week's closing low and the Nasdaq approached last week's intraday low, which is also in line with its 25-day moving average. The Nasdaq is still down about 1% amid weakness in semiconductor stocks and large-cap tech issues, but eBay (EBAY 30.50, +1.40) has been a bright spot in the Index. The company complemented a better-than-expected earnings report with a strong forecast.

Morgan Stanley (MS 28.83, +1.08) has been a standout in the S&P 500. The stock is up more than 4% following its latest quarterly report, but the broader financial sector remains mired near the neutral line, unable to provide leadership to the broader market.

Natural resource plays have been under particularly stiff pressure this session. As such, energy stocks are down 1.3% and materials stocks are down 1.6%. They make up the two worst performing sectors.

Domestic data did little for participants this morning. The first dose included news that the latest initial jobless claims tally fell more than expected to 404,000 from 425,000. Continuing claims fell to 3.86 million from 3.89 million.

Existing home sales for December increased a stronger-than-expected 12.3% to an annualized rate of 5.28 million units, which is the highest level since May.

The Philadelphia Fed Index for January came in at 19.3, which is down more than expected from the prior month.

Leading Indicators for December increased a stronger-than-expected 1.0%, but that is in step with the November's increase. DJ30 -25.54 NASDAQ -25.89 SP500 -4.74 NASDAQ Adv/Vol/Dec 700/1.23 bln/1834 NYSE Adv/Vol/Dec 1009/529 mln/1882

12:30 pm : Despite the weakness in stocks today, Treasuries have failed to attract buyers. Though the benchmark 10-year Note is off of its low, it still remains down markedly for the day. As such, its yield stands just above 3.40%, which is a high for this week. As an aside, results from an auction of 10-year TIPS are due at the top of the hour.

The dollar has caught a bid after falling to losses in seven of the past eight sessions. Relative to a basket of competing currencies it is up 0.4%, but still near the two-month low that it set in the prior session. DJ30 -32.24 NASDAQ -27.53 SP500 -5.30 NASDAQ Adv/Vol/Dec 696/1.19 bln/1832 NYSE Adv/Vol/Dec 1052/514 mln/1830

12:00 pm : Stocks are trying to trim their losses, but considerable weakness continue to undercut the Nasdaq. Heavyweights Apple (AAPL 331.26, -7.58), Amazon.com (AMZN 182.26, -4.61), and Microsoft (MSFT 28.25, -0.22) have hampered the Nasdaq, but eBay (EBAY 30.32, +1.22) has been a bright spot following its better-than-expected earnings and strong forecast.

Natural resource plays have been drags on the broader market. Specifically, energy stocks are down 1.5% and materials stocks are down 1.8%. They are the worst two performing sectors in the S&P 500. DJ30 -39.69 NASDAQ -30.46 SP500 -6.71 NASDAQ Adv/Vol/Dec 598/1.04 bln/1890 NYSE Adv/Vol/Dec 890/453.5 mln/1976

11:30 am : After a brief breather, sellers have redoubled their efforts to take the Nasdaq to a new session low. Given the steepness of its slide both today and yesterday, the Nasdaq is on pace for its worst back-to-back performance since August.

The magnitude of the back-to-back selling suggests that something more than profit taking might be going on in the market. Stocks registered new two-year highs only two days ago, but in the stock market's ascent to that point pull backs were met with subsequent support. DJ30 -76.21 NASDAQ -38.57 SP500 -10.51 NASDAQ Adv/Vol/Dec 623/920 mln/1832 NYSE Adv/Vol/Dec 919/401 mln/1906

11:00 am : About an hour ago stocks attempted to rebound from an opening slide, but the broader market was met with resistance at the neutral line. Renewed selling pressure has since sent stocks to fresh session lows.

Materials stocks are in the worst shape. The sector has slumped to a 2.3% loss. Weakness in the commodity space has exacerbated pressure against basic materials plays and other members of the sector.

Utilities stocks have managed to hold on to a gain, though. The sector is up an enviable 0.5%. DJ30 -77.80 NASDAQ -33.23 SP500 -9.82 NASDAQ Adv/Vol/Dec 693/778 mln/1697 NYSE Adv/Vol/Dec 994/362 mln/1784

10:35 am : Most commodities are trading lower this morning along with today's broad market weakness. Strength in the dollar index is also adding to selling pressure.

Around the open of pit trading, February natural gas was at session lows of $4.53 per MMBtu, then rallied in to positive territory and new session highs of $4.60 per MMBtu shortly after. Ahead of the inventory data, February natural gas was only one of two commodities trading in positive territory in the CRB Commodity Index. Cocoa was the best performer with 1.4% in gains. Following inventory data, which showed a draw of 243 bcf compared to consensus of a draw down of 233 bcf, natural gas spiked to session highs of $4.65 per MMBtu and is now 1.8% higher at $4.64 per MMBtu.

February crude oil has been in the red all session. It began to fall more sharply about 30 minutes before pit trading began and went on to lose over $2 per barrel over the next two hours of trade. It just hit new session lows of $88.10 per barrel and is currently at $88.34 per barrel, down 2.8%. Due to the holiday on Monday, crude inventory data will be released today at 11:00am ET and current consensus calls for a draw of 500K.

Precious metals have been weak all session. Both February gold and March silver hit new session lows (gold $ 1343.10, Silver $27.51) within the last hour. Silver futures are by far the worst performing commodity in the CRB Index this morning and is currently trading at $27.43 per ounce, down 4.8%. Gold is 1.9% lower at $1344.10 per ounce.DJ30 -12.64 NASDAQ -40.49 SP500 -13.10 NASDAQ Adv/Vol/Dec 711/608.2 mln/1634 NYSE Adv/Vol/Dec 1008/285.0 mln/1748

10:05 am : Stocks have extended their rebound from an opening slide at the open. The upward push has been helped by the latest dose of data.

Existing home sales for December increased 12.3% from the prior month to an annualized rate of 5.28 million units, which is the highest level since May. The rate was also better than the annualized rate of 4.80 million units that had been widely expected.

The Philadelphia Fed Index for January came in at 19.3, which is below the downwardly revised prior month reading of 20.8. It is also below the 20.0 that had been anticipated among economists polled by Briefing.com.

The December Leading Indicators reading increased by 1.0%, which is in step with the November increase of 1.1%, but stronger than the 0.6% increase that was widely expected.

Advancing Sectors: Financials (+0.9%), Utilities (+0.6%), Consumer Discretionary (+0.5%), Consumer Staples (+0.3%), Health Care (+0.1%)
Declining Sectors: Materials (-1.3%), Tech (-0.9%), Energy (-0.9%), Industrials (-0.2%)
Unchanged: TelecomDJ30 -7.91 NASDAQ -12.38 SP500 -1.16 NASDAQ Adv/Vol/Dec 915/427 mln/1357 NYSE Adv/Vol/Dec 1262/214 mln/1458

09:45 am : Stiff selling has hit the Nasdaq Composite for the second straight session. The tech-rich Index now sits at its 20-day moving average, but it isn't quite down to last week's low.

Semiconductor stocks continue to be a considerable source of weakness for the Nasdaq. Semiconductor stocks are collectively down 1.3% this morning and down 4.0% for the week.

eBay (EBAY 30.34, +1.24) has offered some support to the Nasdaq in the early going. Its 4% bounce takes it to a one-month high. DJ30 -22.97 NASDAQ -19.64 SP500 -4.56 NASDAQ Adv/Vol/Dec 572/260 mln/1628 NYSE Adv/Vol/Dec 827/141 mln/1839

09:15 am : S&P futures vs fair value: -2.00. Nasdaq futures vs fair value: -11.00. Stocks fell sharply in the prior session, but a supportive bid has yet to surface. Lingering weakness comes amid concern that rapid economic growth in China could prompt tighter monetary policy in order to stave off inflation. That concern caused Asia's major averages to tumble overnight. Less attention has been paid to the latest round of earnings results, which features upside surprises from Morgan Stanley (MS), eBay (EBAY), and UnitedHealth (UNH). The latest initial jobless claims tally was also shrugged off, even though it moved closer to 400,000. Still to come are the latest monthly figures for existing home sales, leading indicators, and the Philadelphia Fed Index at 10:00 AM ET. Natural gas inventory data is due at 10:30 AM ET, followed by oil inventory data at 11:00 AM ET. Results from an auction of 10-year TIPS will be posted at 1:00 PM ET.

09:05 am : S&P futures vs fair value: -1.60. Nasdaq futures vs fair value: -10.30. Futures for the S&P 500 continue to trail fair value by a relatively modest margin. Action in Germany is also a bit dim. That has Germany's DAX down 0.3%. Automaker Volkswagen is under some of the most pressure; its shares have dropped to a two-month low. Daimler (DAI) is also down. According to data, producer prices in Germany increased 0.7% in December after a more tepid 0.2% increase in November. France's CAC has moved out of the red to a 0.1% gain. Still, LVMH Moet Hennessey remains a heavy drag. It's 2% drop today comes on top of a 3% tumble in the prior session. The stock now sits at its lowest level since October. About 80% of the issues in Britain's FTSE have fallen to a loss; such widespread weakness has the FTSE down 1.2%. Rio Tinto (RIO) and GlaxoSmithKline (GSK) are two of the heaviest weights. HSBC (HBC) has also hampered action, but fellow banking plays Lloyds Group (LYG) and Barclays (BCS) have managed to muster gains.

In Asia, Japan's Nikkei fell overnight to a 1.1% loss. Pressure was broad in that declining issues outnumbered advancers by 6-to-1. Tokyo Electron, Fanuc Corp, TDK, and Canon (CAJ) were primary sources of weakness. Honda Motor (HMC) and Dentsu scored slight gains in the face of broad weakness, though. According to data, Japan's final Leading Indicator Index for November came in at 100.6, down slightly from the 101.0 reading previously published. Data was the big story in China, which reported that its fourth quarter GDP surged 9.8% from the prior year. The rapid rate of expansion has caused concern that tighter policy may be implemented to stave off inflation. December inflation data showed a 4.6% increase in consumer prices and a 5.9% increase in producer prices. Both were actually down from the same period one year ago. Market participants turned pessimistic and sent 90% of the names in the the Shanghai Composite to a loss. The concerted selling effort resulted in a 2.9% loss for the Index. PetroChina (PTR), China Petroleum (SNP), and Industrial & Commercial Bank were a few of the hardest hit names. Hong Kong's Hang Seng sank to a 1.7% loss. Banking issues were among the poorest performers. Li & Fung, China Unicom, and Belle International were the only three issues in the 45-member Index to stage gains.

08:35 am : S&P futures vs fair value: -1.60. Nasdaq futures vs fair value: -10.80. Stock futures remain under moderate pressure and generally unchanged by the latest weekly jobless claims count. Initial jobless claims for the week ended January 15 totaled 404,000, which is down 37,000 from the previous week and below the 425,000 initial claims that had been expected, on average, among economists polled by Briefing.com. The four-week moving average fell by 4,000 to 411,750. Continuing claims were also down from the prior week. They came in at 3.86 million after they totaled 3.89 million in the prior week.

08:05 am : S&P futures vs fair value: -3.20. Nasdaq futures vs fair value: -12.30. Stocks suffered their worst percentage loss in almost two months during the prior session. Weakness lingers ahead of today's open, despite upside earnings surprises from Morgan Stanley (MS), eBay (EBAY), UnitedHealth (UNH), PNC Financial (PNC), and FifthThird (FITB). The downbeat tone follows stiff selling in Asia after reports indicated that China's economy continues to expand a torrid clip. Rapid growth there has raised concerns about inflation, but China's consumer prices and producer prices for the fourth quarter were both down from the prior year. U.S. participants get their own dose of data at the bottom of the hour, when the latest weekly jobless claims tally is due. Existing home sales figures for December are due at 10:00 AM ET, along with December leading indicators and the January Philadelphia Fed Index. Results from an auction of 10-year TIPS are scheduled to be released at 1:00 PM ET.

06:43 am : [BRIEFING.COM] S&P futures vs fair value: -1.70. Nasdaq futures vs fair value: -10.50.

06:43 am : Nikkei...10437.31...-119.80...-1.10%. Hang Seng...24003.70...-415.90...-1.70%.

06:43 am : FTSE...5890.13...-86.50...-1.50%. DAX...7029.00...-53.80...-0.80%.

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

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