TheStrategyLab.com Price Action Trading Support Forum

Trade Results of M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
Price Action Trading (no technical indicators)

click on the above image to view today's trading summary


Trade Performance for Today: +15.30 points or $1530.00 dollars in the Russell 2000 Emini TF ($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=87&t=762. 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).

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.

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).

Trading Plan Daily Routine @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=131&t=921

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

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.

CNNMoney.com - Stocks: Worst Drop Of The Year Amid Libya Turmoil

click on the above image to view today's price action of key markets

By Hibah Yousuf, staff reporter
February 22, 2011: 4:42 PM ET

NEW YORK (CNNMoney) -- Libya's escalating political crisis sparked a sharp sell-off in U.S. stocks Tuesday, with the three major indexes posting their biggest one-day drops of the year, as oil prices continued to skyrocket.

Ongoing weakness in the housing market also added pressure after a report showed that national home prices fell 4.1% during the fourth quarter of 2010.

The Dow Jones industrial average (INDU) sank 178 points, or 1.4%. That was its worst decline since November. Wal-Mart (WMT, Fortune 500) was one of the biggest losers on the Dow, with shares down 3% after the retailer reported disappointing U.S. sales figures.

The S&P 500 (SPX) dropped 28 points, or 2.1%, and the tech-heavy Nasdaq (COMP) shed 78 points, or 2.7%. Those were the biggest drops since August for both indexes.

The CBOE volatility index (VIX), which is known as the VIX and is used to gauge fear in the market,jumped almost 30% Tuesday.

Market strategists seem to agree that the market is due for a short-term pullback given its steady rise since late August, and the spike in oil prices may be the catalyst to trigger that retreat.

Libya and oil: Oil prices spiked 6% Tuesday to settle at $95.42 a barrel as the trouble in Libya entered an eighth day. Earlier, oil prices came within $2 of $100 a barrel.

The turmoil in North Africa and the Middle East has roiled world financial markets, with stocks sinking across Asia and markets in Europe under pressure.

"We're facing a fear of the unknown," said Michael Sheldon, chief market strategist at RDM Financial Group. "Investors don't know how serious the political upheaval will become, or how high oil prices may end up going over the next several weeks."

* Why the oil market is nervous

The political strife in Libya is part of a chain of uprisings that started this year in Tunisia and spread to Egypt, where protesters deposed Hosni Mubarak earlier this month.

Until Libya, the movement in the Middle East had not impacted a major exporter of crude. Now, investors are concerned that the unrest could disrupt the flow of oil from other key producing countries.

* Video - Crude soars: Eyes turn to Saudis

World markets: European stocks fell on the ongoing concerns about Libya. Britain's FTSE 100 fell 0.3%, France's CAC 40 dropped 1.2% and the DAX in Germany lost 0.1%.

Asian markets ended sharply lower. The Shanghai Composite plunged 2.6%, the Hang Seng in Hong Kong tumbled 2.1% and Japan's Nikkei sank 1.8%.

Late Monday, Moody's changed its outlook on Japan's bond rating to negative. The credit ratings agency cited difficulties facing the government and dimming prospects to stem the country's rising debt burden, according to reports.

Economy: Consumer confidence, as measured by the Conference Board's monthly index, rose to a 3-year high in February.

Companies: Shares of Hewlett-Packard Co. (HPQ, Fortune 500) tumbled more than 6% in after-hours trading. The company reported a quarterly profit that rose from year-ago results and soundly beat Wall Street's forecasts. But the company's overall sales and outlook still disappointed.

Shares of Mentor Graphics (MENT) jumped 6.5% after billionaire investor Carl Icahn offered to buy the company for $17 per share, according to a letter obtained by the Wall Street Journal. The stock closed Friday at $14.52 per share.

Chesapeake Energy (CHK, Fortune 500) was up 5.2% after Australian resources company BHP Billiton (BHP) announced plans to buy Chesapeake's shale assets in Arkansas for $4.75 billion.

Shares of Barnes & Noble (BKS, Fortune 500) fell 14.4% after the bookstore suspended its quarterly dividend of 25 cents per share. Barnes & Noble also said it has decided not to issue sales or earnings guidance for the remainder of the year due to the unknown impact of Borders Group's bankruptcy filing.

Currencies and Bonds: The dollar rose against the euro and the British pound, but was weaker versus the Japanese yen.

The price on the benchmark 10-year U.S. Treasury rose, pushing the yield down to 3.46% from 3.62% late Friday.



Yahoo! Finance - Market Update

4:30 pm : Intense selling sent the S&P 500 to its worst single-session loss in six months as participants pared risk amid rising social and political tension in the Middle East and Northern Africa.

Ongoing protests and social unrest in Libya prompted the country's leader, Gaddafi, to threaten suspension of oil supplies from his country, which boasts the biggest oil reserve in Africa. Gaddafi was also defiant in the face of calls for him to step down as dictator.

Asia's major averages led an overnight sell-off that saw the Shanghai Composite drop 2.6%, the Hang Seng slide 2.1%, and the Nikkei tumble 1.8%. News that Moody's lowered its outlook on Japan to Negative darkened the tone of trade.

The overnight slide combined with concern about volatility related to rising geopolitical risk abroad stirred U.S. participants to slash their stock holdings. At first, their efforts took stocks down about 1%, but as has been the case in previous sessions some stepped in to provide support and bid up the dip. A February Consumer Confidence Index reading of 70.4, which exceeded the Briefing.com consensus of 67.0 to set a near three-year high, aided the effort.

However, in contrast to previous sessions, sellers redoubled their efforts after stocks failed to extend their morning rebound. Persistent pressure took the S&P 500 to its first 2% loss since last August.

More than 90% of the stocks in the S&P 500 ended the day in the red. The bleeding brought in plenty of participants, who sent share volume well above 1 billion on the NYSE. Among the major sectors, materials were hit the hardest. As a group, materials stocks dove to a 3.1% loss. Energy had been resilient in the early going, but weakness inevitably bled into the space as the broad market buckled. Energy stocks had been up as much as 1.5%, but ended the day with a 0.7% loss.

Early strength in the energy sector was predominately underpinned by a spike in oil prices. April crude oil finished 6% higher at $95.32 per barrel. Elsewhere in the commodity space, safety seekers sent April gold up 0.9% to $1401.10 per ounce and silver 2% higher to $32.86 per ounce. Silver prices had actually set a new 30-year high above $34 per ounce in the early morning.

Treasuries also benefited from an interest in safety, despite lackluster results from an auction of 2-Year Notes. The auction drew a bid-to-cover of 3.03 for dollar demand of $106.1 billion, and an indirect bidder participation rate of 31.2%.

The dollar did little today. It had been flat in morning trade, but mustered a gain of merely 0.2% by the end of the day.

Corporate news had no real impact on overall trade. The spike in volatility -- the Volatility Index was up about 30% at its high -- caused many to shrug off earnings from Dow components Home Depot (HD 38.09, -0.39) and Wal-Mart (WMT 53.67, -1.71). Both bested what Wall Street had expected for the bottom line, but HD complemented its report with increased guidance and an increased dividend.

Advancing Sectors: (None)
Declining Sectors: Materials (-3.2%), Financial (-3.1%), Industrials (-2.9%), Tech (-2.6%), Consumer Discretionary (-2.4%), Telecom (-1.7%), Health Care (-1.5%), Energy (-0.7%), Consumer Staples (-0.7%), Utilities (-0.3%)DJ30 -178.46 NASDAQ -77.53 NQ100 -2.9% R2K -2.6% SP400 -2.4% SP500 -27.57 NASDAQ Adv/Vol/Dec 374/2.12 bln/2306 NYSE Adv/Vol/Dec 359/1.11 bln/2701

3:30 pm : Commodities finished mixed on the session, with sizeable moves in both directions. Grains shed -5.4% to lead all decliners, while energy rallied for 2.8% to lead all advancers. Tensions in the Middle East factored in the direction of trade in numerous commodities.

May wheat shed 7% to close at $7.96 per bushel, May soybeans dropped 5.1% to end at $13.11 per bushel, while May corn settled lower by 4.2% to $6.90 per bushel. Prices were helped lower by a flight to safer asset classes amidst all the uncertainty surrounding events in the Middle East.

April crude oil finished higher by 6% to $95.32 per barrel. Again, concerns about the unrest in OPEC-member Libya and fears that protests could spread to other oil producing countries, supported prices throughout the session. Prices did, however, finish well below its overnight highs at $98.48. March natural gas shed 0.1% to finish at $3.87 per MMBtu.

A flight to safety helped precious metals finish higher today. April gold ended up 0.9% to $1401.10 per ounce, while March silver rallied for 2% to finish at $32.86 per ounce. DJ30 -211.72 NASDAQ -78.92 SP500 -30.38 NASDAQ Adv/Vol/Dec 400/1.8 bln/2271 NYSE Adv/Vol/Dec 939/907.4 mln/2641

3:00 pm : Only an hour remains in the session and sellers are showing few signs of letting up. Amid the wreckage, about 94% of the issues in the S&P 500 are in the red.

Expedia (EXPD 50.5, -4.33) and NVIDIA (NVDA 23.63, -2.02) are in the worst shape of any name in the S&P 500. Both stocks are down almost 8%. In contrast, V.F. Corp (VFC 98.65, +8.85) is this session's best performer; it currently boasts a gain of almost 10% after the firm posted an upside earnings surprise and issued upside guidance.

The list of companies scheduled to report earnings tonight isn't very lengthy, but it isn't that short either. Among the more familiar names, Hewlett-Packard (HPQ 48.06, -0.61), Hertz (HTZ 15.32, -0.59) and Radio Shack (RSH 15.41, -0.29) are scheduled to report after the close. DJ30 -167.79 NASDAQ -67.32 SP500 -25.56 NASDAQ Adv/Vol/Dec 412/1.65 bln/2248 NYSE Adv/Vol/Dec 404/840 mln/2612

2:30 pm : Stocks are drifting sideways along session lows. Buyers haven't shown any real sign of life since they stepped in during the first hour to bid up the broad market's dip and help trim losses. Such efforts proved futile, though, as sellers quickly redoubled their efforts. As things now stand, stocks are headed for their worst single-session slide since a 2.8% drop in August.

That kind of concerted selling effort has sent expectations for volatility up sharply. Specifically, the Volatility Index is currently up 27%. DJ30 -164.84 NASDAQ -67.10 SP500 -25.00 NASDAQ Adv/Vol/Dec 388/1.54 bln/2273 NYSE Adv/Vol/Dec 355/781 mln/2666

2:00 pm : Persistent pressure has kept stocks stuck at session lows. Financials are now off by 3.0%, which makes for the sector's worst single-session slide since a 3.6% drop in mid-August.

Energy continues to trade with a relatively modest loss of just 0.5%, but that is still well below the 1.5% gain it had sported at its session high. DJ30 -172.18 NASDAQ -68.79 SP500 -25.71 NASDAQ Adv/Vol/Dec 407/1.42 bln/2246 NYSE Adv/Vol/Dec 356/720 mln/2652

1:30 pm : Stocks continue to descend deeper into negative territory. In turn, the stock market is now down 2.0%.

Treasuries made a brief pullback in recent trade, but buying has been rekindled amid the stock market's latest leg lower. The brief slip that recently hit Treasuries followed results from an auction of 2-Year Notes that were released at 1:00 PM ET.

The auction drew a bid-to-cover of 3.03 for dollar demand of $106.1 billion, and an indirect bidder participation rate of 31.2%. For comparison, the prior auction pulled a bid-to-cover of 3.47, dollar demand of $121.5 billion, and an indirect bidder participation rate of 27.0%. An average of the past four auctions results in a bid-to-cover of 3.58, dollar demand of $125.2 billion, and an indirect bidder participation rate of 32.0%.DJ30 -172.18 NASDAQ -69.02 SP500 -25.99 NASDAQ Adv/Vol/Dec 419/1.31 bln/2228 NYSE Adv/Vol/Dec 373/665 mln/2609

1:00 pm : More than 90% of the names in the S&P 500 are in the red as participants react to ongoing social unrest in the Middle East and threats from Libya's leader.

In the face of protests in North Africa and the Middle East, Libyan dictator Gadhafi threatened to suspend oil supplies from the country, which boasts the biggest oil reserve in Africa. That scared participants of Asia's major averages, which all fell around 2% overnight. Moody's decision to downgrade its outlook on Japan to Negative certainly didn't help the tone of trade there.

Europe's major bourses were also hit with some selling, but losses there were varied since they had already endured sizable losses in the prior session.

While widespread weakness and the inclination to pare risk took the major domestic averages down to deep loses in the early going, some stepped in to provide support. Stocks started to slash losses and were even helped by a stronger-than-expected Consumer Confidence Index, which hit a near three-year high of 70.4.

However, sellers redoubled their efforts after the S&P 500 failed to break above the 1335 and Gadhafi began a speech that indicated he has no intention of resigning from his position. Stocks are now at a session low.

The stock market's backslide has even dragged down the energy sector to a 0.5% loss after it was up as much as 1.5% earlier this morning. Energy's strength stemmed from a spike in oil prices, which actually cleared $94 per barrel in electronic trade. The energy component has since pulled back to trade with a 5.7% gain at $91.25 per barrel.

The subsequent sell off has further stoked volatility, such that the VIX is up almost 25% after it was at a multi-year low just last week. With volatility up and stocks in weak shape, precious metals have performed well. However, both gold and silver are off of their session highs. Still, gold prices are up 0.6% at $1397 per ounce while silver prices are up 1.7% at $33.85 per ounce.

Treasuries are up nicely, too. In turn, the yield on the benchmark 10-year Note is several basis points below 3.50%.

The dollar hasn't caught much of a bid, though. It is up only fractionally against a collection of competing currencies.

Dow components Home Depot (HD 38.19, -0.29) and Wal-Mart (WMT 53.18, -2.20) headlined the latest list of earnings announcements. Both posted upside earnings surprises, but their reports have been lost in the frenzy of this session's sell off. DJ30 -165.63 NASDAQ -69.67 SP500 -25.13 NASDAQ Adv/Vol/Dec 440/1.17 bln/2182 NYSE Adv/Vol/Dec 391/592 mln/2598

12:30 pm : Stocks are sitting at session lows as more than 90% of the names in the S&P 500 reside in the red. Such widespread weakness has begun to bleed into the tech sector, which has pulled back to a 0.2% gain after it had been up as much as 1.5%.

Volatility has intensified with the stock market's latest leg lower. In turn, the Volatility Index is now up more than 20%, which makes for the second sharpest single-session spike in the past six months. The sharpest spike was a 24% climb less than a month ago. DJ30 -113.90 NASDAQ -52.73 SP500 -18.63 NASDAQ Adv/Vol/Dec 485/1.03 bln/2122 NYSE Adv/Vol/Dec 461/419 mln/2484

12:00 pm : Stocks have extended their recent downturn so that the S&P 500 is now at a fresh session low. The backslide comes in the wake of comments from Libya's Gadhafi, who has stated that he has no intentions of resigning his leadership role.

Although weakness is widespread, financials have been hit the hardest this session. The sector has fallen to a 2.4% loss. Within the sector, banks and diversified financial services plays are in the worst shape -- both groups are down in excess of 3%.

As for energy, it continues to trade in positive territory. However, the sector's 0.5% gain is only a third of what it had sported at its session high. DJ30 -107.05 NASDAQ -49.64 SP500 -17.18 NASDAQ Adv/Vol/Dec 488/905 mln/2098 NYSE Adv/Vol/Dec 509/449 mln/2420

11:30 am : Renewed selling has taken the stock market below its recent trading range. The S&P 500 is now down more than 1%, but the Dow has managed to limit its loss to less than that. The Dow's relative strength stems from an impressive gain by integrated oil and gas play Chevron (CVX 101.17, +2.45), which set a fresh 52-week high in the face of this session's overall weakness.

The rest of the energy sector has pulled back along with the broader market, however. Energy stocks had been up about 1.5% at their session high, but the sector now trades with a 0.9% gain. Oil prices are still up 6.5% at $91.75 per barrel. DJ30 -94.30 NASDAQ -47.90 SP500 -15.24 NASDAQ Adv/Vol/Dec 502/770 mln/2070 NYSE Adv/Vol/Dec 534/382 mln/2397

11:00 am : The S&P 500 has spent the past hour chopping along in the 1332 to 1335 zone. Although things have become more settled since overnight trade, the Volatility Index is still up more than 12% today. Expectations for higher volatility have been underpinned by ongoing social unrest in the Middle East region. As an aside, the VIX was at a multi-year low just last week.

Treasuries have started to reclaim overnight gains. In turn, the benchmark 10-year Note is now up more than 20 ticks so that its yield is just below 3.50%. DJ30 -64.67 NASDAQ -31.29 SP500 -10.45 NASDAQ Adv/Vol/Dec 606/630 mln/1921 NYSE Adv/Vol/Dec 681/320 mln/2192

10:30 am : The crisis in Libya is currently keeping energy markets higher this morning, excluding natural gas. Despite a notable pull-back in crude oil (continuous contract), the energy component is still 6.4% higher at $91.75 per barrel.

March natural gas fell into negative territory shortly after the open of pit trade, hitting new session lows of $3.85 per MMBtu. Currently, its down 0.5% at $3.86 per MMB tu.

Precious metals have been in positive territory all session, but are off overnight highs. Currently, April gold is 0.9% higher at $1400.6 per ounce, while March silver is up 1.7% at $32.85 per ounce.

Cotton futures fell the exchange limit today on concerns China demand will now slow. Currently, May cotton futures are down 3.6% at $1.8793/lb. Cocoa futures are in the top three best performers in the CRB Index after pushing to a 32-year high on more supply concerns from the Ivory Coast, which arose due to escalating violence in the area.DJ30 -63.08 NASDAQ -30.65 SP500 -10.04 NASDAQ Adv/Vol/Dec 533/442.4 mln/1935 NYSE Adv/Vol/Dec 670/243.3 mln/2171

10:00 am : Stocks are doing a good job of triming losses. The latest leg higher has been helped by a stronger-than-expected Consumer Confidence number.

The Conference Board's Consumer Confidence Index for February was just released. It came in at 70.4, which is much better than the 67.0 that had been expected, on average, among economists surveyed by Briefing.com. The February reading is the highest in almost three years.

Although the broader market has responded positively to the data, energy is still the only major sector in higher ground. Energy stocks are collectively up 1.4%.DJ30 -55.59 NASDAQ -33.63 SP500 -9.97 NASDAQ Adv/Vol/Dec 359/256 mln/2073 NYSE Adv/Vol/Dec 440/162 mln/2364

09:45 am : With the exception of energy issues, widespread weakness has taken stocks sharply lower in the first few minutes of trade.

Energy is the only major sector to sport a gain in the early going. More impressive is that the sector is actually up in excess of 1%. Such an enviable bounce stems from a sharp spike in oil prices following social unreast in the Middle East and a threat that Libya will stop its oil supply -- Libya boasts the largest oil reserve in Africa. Oil prices are off of their overnight highs, but they continue to sport a 6.3% gain at $91.60 per barrel.

Amid the spike in oil prices, airline stocks have descended deeply into the red. Specifically, the Amex Airline Index is down 4.2%. DJ30 -96.64 NASDAQ -49.10 SP500 -15.79 NASDAQ Adv/Vol/Dec 366/55 mln/1908 NYSE Adv/Vol/Dec 279/60 mln/1482

09:25 am : S&P futures vs fair value: -14.30. Nasdaq futures vs fair value: -31.20. The threat that Libya will halt its supply of oil amid social unrest in the region stirred a concerted selling effort in Asia overnight. News that Moody's knocked down its outlook on Japan to Negative seemed to only exacerbate weakness. Europe's major bourses have also been undercut by those headlines, but they already experienced sizable losses in the prior session, so pressure there has been less severe.

Oil prices are still in the zone of $93 per barrel, which makes for a gain of about 8%. Precious metals have been bid sharply higher as investors seek safety -- gold prices are up 1.0% to $1402 per ounce while silver is up 2.4% at $33.07 per ounce after it had set a new 30-year high above $34 per ounce overnight.

As for the dollar, it is flat against a collection of competing currencies.

Treasuries have handed back some of their gains, but they are still up comfortably ahead of results from an auction of 2-year Notes at 1:00 PM ET.

Corporate news has been of secondary interest this morning, even though it has featured better-than-expected earnings, increased guidance, and an increased dividend from Dow component Home Depot (HD). Fellow blue chip Wal-Mart (WMT) also posted an upside earnings surprise, but its top line was a bit light.

No real reaction was made to a 0.4% slip in the S&P/CaseShiller 20-city Home Price Index for December. Coming up at 10:00 AM ET is the Consumer Confidence Survey for February.

09:10 am : S&P futures vs fair value: -14.50. Nasdaq futures vs fair value: -31.70. Futures for the S&P 500 have stopped their upward push to take a breather. They continue to trail fair value by a wide margin. Meanwhile, Germany's DAX has managed to muster a modest gain of 0.1% in the face of global selling pressure. Man SE, Volkswagen, Daimler (DAI), and Commerzbank have been primary sources of support for the German bourse. Bayer AG and Thyssenkrupp have been heavy drags, though. As for data, Germany's Gfk Consumer Confidence Survey for March came in at 6.0, which is an improvement from the 5.8 that was posted in February. France's CAC was down as much as 1.7% overnight, but it now trades with a 1.1% loss. BNP Paribas, Societe Generale, Sanofi-Aventis (SNY), and Total (TOT) have hampered action the most. Total is among those that have halted operations and evacuated workers in the region surrounding Libya, which has threatened to stop its oil supply amid social unrest. Only a handful of French issues have managed to make gains in the face of the selling effort. Essilor International and Schneider Electric are leaders in that short list. Britain's FTSE is currently off by 0.6% as about 80% of its issues trade in the red. HSBC (HBC), Vodafone (VOD), and BP Plc (BP) are having the most detrimental impact on trade. Metals and miners BHP Billiton (BHP), Rio Tinto (RIO), and Anglo American have displayed strength, though.

Mainland China's Shanghai Composite dove to a 2.6% loss in response to concerns about rising geopolitical tensions and the threat of restricted oil supply from Libya. In turn, declining issues outnumbered advancers by more than 8-to-1 there. China Petroleum (CEO) and PetroChina (PTR) drove the downside move. Zijin Mining and Yantai Wanhua displayed strength. Hong Kong's Hang Seng fell 2.1%. HSBC, China Construction Bank, Tencent Holdings, and China Mobile weighed most on trade. Of the 45 names that make up the Hang Seng, CNOOC (CEO), CLP Holdings, and MTR Corp were the only three to put together any kind of a gain. Japan's Nikkei fell to a 1.8% loss overnight. Weakness was only exacerbated by news that Moody's lowered its outlook on Japan to Negative. Softbank, Fast Retailing, and Honda Motor (HMC) were the biggest names among declining issues, which included more than 90% of the Nikkei's components. East Japan Rail and Central Japan Railway were able to make gains. JX Holdings also moved higher.

08:35 am : S&P futures vs fair value: -15.00. Nasdaq futures vs fair value: -33.70. Stock futures continue to try to fight through premarket selling pressure, but widespread weakness persists. Oil prices in the continuous contract had been above $94 per barrel overnight, but they have pulled back in the last few hours. Still, oil futures prices sport a 7.9% gain at $93 per barrel following threats from Libya to halt oil production -- Libya has the largest oil reserve in Africa. Concerns about the potential for geopolitical instability have sent some investors to seek safety in precious metals. That has sent the price of gold up 0.7% to $1398.30 per ounce, but silver is up a much sharper 3.0% to $33.26 per ounce. Silver prices had actually eclipsed $34 per ounce earlier for a fresh 30-year high. As for the dollar, it is currently flat against a basket of competing currencies. Treasuries have pulled back from their overnight highs so that they trade with relatively modest gains. The initial flight to safety had sent the yield on the benchmark 10-year Note below 3.50% to its lowest level in about three weeks.

08:10 am : S&P futures vs fair value: -14.60. Nasdaq futures vs fair value: -31.20. Stock futures have worked their way off of overnight lows, but they still point toward an opening loss of roughly 1% or more. Weakness comes amid concerns about potential geopolitical implications related to renewed social unrest in the Middle East region and a threat by Lybia to stop supplying oil. In response, oil futures prices spiked; they currently trade more than 7% higher at $92.55 per barrel ahead of pit trade. Such themes sent Asia's major averages sharply lower overnight -- China's Shanghai Composite logged a 2.6% loss and Hong Kong's Hang Seng shed 2.1%. Japan's Nikkei fell 1.8% as news that Moody's lowered its rating outlook for Japan to Negative dampened sentiment further. Europe's major bourses are down with varied losses in the wake of Asia's sell-off. Corporate news has been largely overshadowed. Both Wal-Mart (WMT) and Home Depot (HD) posted this morning better-than-expected earnings for the latest quarter. HD complemented its report with an increased outlook and an increased dividend. In merger and acquisition activity, Frontier Oil (FTO) and Holly Corp. (HOC) announced an all-stock merger of equals, but FTO will pay a special dividend of $0.28 per share. Data for today features S&P/CaseShiller home price figures for December and the Conference Board's consumer confidence number for February. Those reports are due at 9:00 AM ET and 10:00 AM ET, respectively.

07:00 am : S&P futures vs fair value: -17.10. Nasdaq futures vs fair value: -36.50.

07:00 am : Nikkei...10664.70...-192.80...-1.80%. Hang Seng...22990.81...-494.60...-2.10%.

07:00 am : FTSE...5949.24...-65.60...-1.10%. DAX...7290.37...-31.70...-0.40%.

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

Best Regards,
M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
Price Action Trading (no technical indicators)
@ 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