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: +1.20 points or $120.00 dollars in the Russell 2000 Emini TF ($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=88&t=780.

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=135&t=965

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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 - U.S. Stocks Finish In The Red As Japan Remains In Focus

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

By Hibah Yousuf, staff reporter
March 14, 2011: 4:29 PM ET

NEW YORK (CNNMoney) -- U.S. stocks came off session lows but finished in the red Monday, after Japan's leading stock index plunged in reaction to last week's massive earthquake and tsunami.

The Dow Jones industrial average (INDU) closed down 51 points points, or 0.4%. Earlier in the session, it had lost as many at 147 points. The modest decline was led by a 2% slide in shares of General Electric (GE, Fortune 500), following news that the company designed all six of the reactors at the Fukushima Daiichi nuclear plant in Japan.

S&P 500 (SPX) fell 8 points, or 0.6%, as shares of luxury retailers Coach (COH) and Tiffany & Co. (TIF) -- which have been building their presence in Japan -- slid more than 5%. Nuclear power plant operator Entergy (ETR, Fortune 500) was also a big loser, dropping 4.9%

Meanwhile, the tech-heavy Nasdaq (COMP) lost 15 points, or 0.5%.

Tokyo's Nikkei (NKY) index finished near its lows for the day, as investors gauged the damage from the quake that devastated the island nation. The Nikkei ended down 6.2% -- the index's biggest one-day drop since late 2008.

"The situation in Japan has created a lot of uncertainty in the market," said Dave Hinnenkamp, CEO of KDV Wealth Management. "We don't know what will happen in the oil market, or the impact on the global economy if this pushes Japan into a recession. There are a lot of questions, and investors will be tentative until they figure out where things are headed."

And while the threat of a nuclear crisis seems to be largely contained, Hinnenkamp added that investors will keep a close eye on developments and any changes could "rock the markets."

Japanese officials said Monday they will backstop the country's financial system, with a cash injection of more than $180 billion, to buffer it against the economic impact of the earthquake and tsunami.

U.S. stocks ended higher Friday, but all three major indexes ended lower for the week.

World markets: Other than Tokyo, major Asian markets ended slightly higher. The Shanghai composite rose 0.1%, while the Hang Seng in Hong Kong gained 0.4%.

* Japan quake: Little impact on global markets

In Europe's trading session, Britain's FT-100 lost 1%, France's CAC-40 fell 1.3% and Frankfurt's DAX lost 1.7%.

Companies: U.S.-traded shares of some companies based in Japan were down sharply in early trading Monday.

Shares of Canon (CAJ), based in Tokyo, were down 4%. Toyota (TM) shares were off 5%, while Sony (SNE) was down 7%.

Stateside insurance companies, including Hartford Financial Services Group (HIG, Fortune 500) and Aflac (AFL, Fortune 500) -- which generates almost 75% of its revenue in Japan, also took a big hit. Shares of both insurers fell about 3%.

* Video - Investors rattled by quake

Early Monday, Warren Buffett's Berkshire Hathaway (BRKA, Fortune 500) said it would acquire Lubrizol for $135 per share in an all-cash transaction. That's a 28% premium over Lubrizol's closing price Friday. The deal, valued at approximately $9.7 billion, is one of Berkshire's biggest acquisitions ever.

Shares of Berkshire (BRKA, Fortune 500) fell more than 1%, while Lubrizol's (LZ, Fortune 500) stock jumped nearly 28%.

* Bank of Japan to pump cash into banks

Currencies and commodities: The dollar fell slightly against the yen, after Japan's central bank pledged to support the nation's financial system in the aftermath of the quake. The U.S. currency was also lower against the pound and the euro.

Oil for April delivery rose 3 cents to $101.19 a barrel. Gold futures for April delivery rose $3.10 to settle at $1,424.90 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury rose, pushing the yield down to 3.36%.



Yahoo! Finance - Market Update

4:30 pm : Stocks may have settled in the red, but the loss was only about half as bad as what it could have been.

Widespread weakness dropped the stock market to a midday loss of more than 1%. The negative bias among participants was primarily the result of selling pressure abroad. In its first full session of trade since a massive earthquake hit the country late last week, Japan's Nikkei plummeted 6% in its worst single session slide in more than two years. In order to promote liquidity, Japan's central bank announced plans to increase its asset purchase plan to 10 trillion yen from 5 trillion and to make another 15 trillion yen available for the banking system. Even though action in Japan was extremely weak, stocks in Hong Kong and Mainland China actually mustered modest gains.

Europe's major bourses all fell on sharply as participants there considered that a weekend vote by Europe's officials to increase the bailout package for fiscally strained eurozone countries to 440 billion euros from 250 billion euros would be footed mostly by the continent's major economies. However, Greece's Athex rallied 5%.

The idea of a more fiscally stable eurozone overall helped euro advance against the greenback. It was quoted with a 0.7% gain at about $1.400 at the end of the trading day.

There weren't any real broad market drivers for domestic participants today, but even as stocks were beaten down to fresh one-month lows they still fought off some of the selling pressure in afternoon trade. That helped the major averages finish the day with relatively modest losses.

Energy stocks stood out as the only sector that settled in higher ground. Their 0.4% gain was led by refiners, which were initially pushed higher amid another pullback in oil prices. Oil prices managed to overcome a 2% loss to settle the day flat modestly above $101 per barrel.

Solar energy stocks booked some of the best performances for the day. Their gains were underpinned by notions that demand will be spurred amid the challenge facing Japan following explosions at many of the country's nuclear facilities in the wake of the earthquake.

Such consideration kept pressure on electric utilities stocks, which finished trade with a 1.4% loss.

Advancing Sectors: Energy (+0.4%)
Declining Sectors: Utilities (-1.4%), Telecom (-1.1%), Consumer Discretionary (-1.1%), Financial (-1.0%), Industrials (-0.8%), Consumer Staples (-0.8%), Health Care (-0.5%), Tech (-0.4%), Materials (-0.2%)DJ30 -51.24 NASDAQ -14.64 NQ100 -0.4% R2K -0.6% SP400 -0.5% SP500 -7.89 NASDAQ Adv/Vol/Dec 782/1.78 bln/1837 NYSE Adv/Vol/Dec 952/963 mln/2021

3:30 pm : It was a mixed session for commodities. Grains (+0.3%) led all advancers, while industrials (-1.4%) led all decliners.

April crude oil finished just above unchanged at $101.19 per barrel. It successfully erased overnight losses, where it put in lows at $98.47. The Middle East was once again the focus of the market today after reports that Saudi Arabia, as well as the UAE, were sending troops into Bahrain. April natural gas closed up 0.7% to $3.91 per MMBtu. Futures sold off in afternoon trade and closed off close to 15 cents off its highs.

It was an uneventful session for the precious metals. April gold ended higher by 0.3% to $101.19 per ounce, while May silver shed 0.2% to finish at $35.84 per ounce. DJ30 -84.24 NASDAQ -18.25 SP500 -11.02 NASDAQ Adv/Vol/Dec 781/1.4 bln/1814 NYSE Adv/Vol/Dec 890/661.4 mln/2077

3:00 pm : Stocks are drifting off of afternoon highs. That has left the S&P 500 to continue trading with a 1% loss.

The many negative headlines of the past week have compelled many investors and traders to take action. In turn, share volume is strong this session.

With only an hour left in today's regular session, attention starts to turn to tomorrow's agenda. Economic items slated for tomorrow include the Empire Manufacturing Survey for March, February import prices, and Treasury International Capital Flows for January. The headline item will be the FOMC rate decision, which is expected to remain unchanged, but participants will surely comb over the verbiage of the accompanying statement for insight into the latest economic developments and plans from the Fed. DJ30 -99.04 NASDAQ -21.02 SP500 -12.58 NASDAQ Adv/Vol/Dec 720/1.31 bln/1878 NYSE Adv/Vol/Dec 765/600 mln/2173

2:30 pm : Stocks have resumed their climb from session lows. The effort has the major equity averages at their best levels since this morning.

Oil prices have also continued to trim losses. The energy component recently turned positive, but it is now back to $101.20 per barrel to trade flat. Buying in both oil and the broader market has been enough to help the energy sector poke into positive territory so that it now trades with a 0.1% gain.

Not only do energy stocks make up this session's best performing sector, but they also represent the best performing sector for the year. So far, the energy sector is up almost 10% in 2011. A 4.0% year-to-date gain by industrials makes it the next best performing sector of 2011. DJ30 -84.01 NASDAQ -18.49 SP500 -11.06 NASDAQ Adv/Vol/Dec 747/1.19 bln/1818 NYSE Adv/Vol/Dec 762/550 mln/2173

2:00 pm : The stock market's recent attempt to lift off of session lows has run into resistance. That has left stocks to continue trading with sizable losses, although the stock market is still above its worst level of the day.

Oil prices have been paring losses this afternoon. The energy component had been just beneath $99.50 per barrel in electronic trade this morning, but contracts are now quoting oil prices at $100.80 per barrel, which makes for only a 0.4% loss.

Oil's rebound is helping the energy sector make a push toward the neutral line. The energy sector is now down just 0.2%. Tech, down 0.7%, makes up the next best performing sector. DJ30 -106.87 NASDAQ -22.40 SP500 -13.54 NASDAQ Adv/Vol/Dec 671/1.12 bln/1893 NYSE Adv/Vol/Dec 678/510 mln/2260

1:30 pm : Stocks recently made a modest move up from their session lows, but they still have a long way to go before they can fully offset this session's loss. Even more ground has to be made up before the stock market can get back above its 50-day moving average.

Nonetheless, the stock market's recent uptick has caused Treasuries to slip some. In turn, the yield on the benchmark 10-year Note is now at 3.35% after it had been down to about 3.33%, which made for a new one-month low. DJ30 -125.34 NASDAQ -24.67 SP500 -15.08 NASDAQ Adv/Vol/Dec 697/1.05 bln/1849 NYSE Adv/Vol/Dec 691/475 mln/2233

1:00 pm : Despite a positive finish to trade last week, the tone of today's trade has been decidedly negative. That has caused the stock market to drop to a new one-month low.

Stocks staggered a bit in the early going, but eventually rolled over as participants opted to pull some of their money. The negative bias comes after many major foreign markets moved lower. Japan's Nikkei was by far the worst performer; it dropped 6% in its first full session of trade since the massive earthquake that rocked the country late last week.

In order to promote liquidity, Japan's central bank announced plans to increase its asset purchase plan to 10 trillion yen from 5 trillion and to make another 15 trillion yen available for the banking system.

Following news that the earthquake has compromised many of Japan's nuclear facilities alternative energy plays, like solar energy stocks MEMC Electronic Materials (WFR 13.64, +1.62) and First Solar (FSLR 146.55, +6.81), are up sharply. They are some of the few stocks that have managed to make gains this session.

Widespread weakness in the broader market has left the three major U.S. equity averages to trade at new monthly lows. Buyers have been largely unwilling to step back in, thus far.

The dollar recently fell to fresh session lows, where it trades with a 0.5% loss against competing currencies. Rather trade as a safe haven, the greenback is down against the euro following a weekend vote by Europe's officials to increase the bailout package for fiscally strained eurozone countries to 440 billion euros from 250 billion euros. DJ30 -118.22 NASDAQ -26.23 SP500 -15.73 NASDAQ Adv/Vol/Dec 557/960 mln/1980 NYSE Adv/Vol/Dec 597/440 mln/2323

12:30 pm : Semiconductor stocks had been up with a collective gain of 1% in the early going, but broader market weakness has since dragged down the group so that it trades with a 0.2% loss. Still, that is considerably less than the broader market's 1.2% loss.

Energy stocks have also managed to limit losses. As a group, energy stocks are down a relatively tame 0.4%. The sector's relative strength stems from favor for refiners as oil prices continue to trade lower. Refiners are collectively up 1.9%.DJ30 -128.48 NASDAQ -28.91 SP500 -15.61 NASDAQ Adv/Vol/Dec 539/875 mln/2000 NYSE Adv/Vol/Dec 561/401 mln/2340

12:00 pm : The stock market continues to trade near its session low, but a few stocks have successfully staged strong gains. This session's best performers carry a common theme: alternative energy. As such, MEMC Electronic Materials (WFR 13.54, +1.52) and First Solar (FSLR 145.66, +5.92) are up sharply. Their strength comes as participants consider the potential for companies engaged in activities related to solar energy following the problems at Japan's nuclear facilities, which were compromised by the massive earthquake that hit the country late last week.DJ30 -116.98 NASDAQ -28.48 SP500 -15.09 NASDAQ Adv/Vol/Dec 585/775 mln/1926 NYSE Adv/Vol/Dec 571/355 mln/2295

11:30 am : About 90% of the names in the S&P 500 are now in negative territory. That has left stocks to drop another leg lower, so that the S&P 500 at its worst level in more than one month.

Despite the stockmarket's downturn, the dollar really hasn't caught much of a bid from safety seekers. Instead, the greenback is trailing a basket of major foreign currencies by about 0.3%, which is where it has been for virtually the entire session. DJ30 -126.32 NASDAQ -31.56 SP500 -16.14 NASDAQ Adv/Vol/Dec 516/650 mln/1967 NYSE Adv/Vol/Dec 539/295 mln/2327

11:00 am : Stocks have fallen to session lows as weakness becomes increasingly widespread. Half of the major sectors in the S&P 500 are now down with losses in excess of 1%.

Utilities made up the worst performing sector in the early going, but they have managed to pare some of their losses so that the sector is now down 1.4% for the day. Still, that ties the financial sector's current 1.4% loss -- no other sector is down as much.

Volatility has heated up amid this session's stiff selling. Specifically, the Volatility Index is up almost 9%. DJ30 -92.56 NASDAQ -22.80 SP500 -12.52 NASDAQ Adv/Vol/Dec 657/495 mln/1776 NYSE Adv/Vol/Dec 659/225 mln/2156

10:35 am : Despite weakness in the dollar index, broad weakness continues in commodities as the CRB Commodity Index is down for a fifth consecutive session from recent highs hit on March 7.

Crude oil is extending losses for a fifth day and the most active contract (April) has pulled back almost 5% from contract highs of $105.44 per barrel, also hit on Mar 7. In current activity, crude has erased most of its losses, but remains modestly lower and is now down 0.9% at $100.30 per barrel.

April natural gas is extending gains for a second straight session, up over 4% in two days. In current trade, the energy component is showing gains of 2.8% at $4.00/per MMBtu.

Precious metals are higher in today's session, but are mixed from last Monday (April gold -0.4% since last Monday, May silver +0.2%). Currently, April gold is up 0.4% at $1428.30 per ounce, while May silver is slightly higher at $35.97 per ounce.

In the CRB Index, 14 of its 19 components are trading lower, led by sugar (-4.6%), cotton (-3.4%) and lean hogs (-1.6%).DJ30 -87.49 NASDAQ -19.71 SP500 -10.97 NASDAQ Adv/Vol/Dec 806/347.3 mln/1563 NYSE Adv/Vol/Dec 773/164.2 mln/1960

10:00 am : Semiconductor stocks have extended the advance that they made this past Friday. Prior to last Friday's trade the Philadelphia Semiconductor Index had been on pace for a weekly loss of almost 8%, but it bounced 1% on Friday. The Semiconductor Index is up another 1.0% today.

Renewed strength among semiconductor stocks has helped the Nasdaq cut its loss so that it now sits just below the neutral line. Meanwhile, the broader market remains under stiffer pressure. DJ30 -36.41 NASDAQ -1.29 SP500 -4.86 NASDAQ Adv/Vol/Dec 634/165 mln/1643 NYSE Adv/Vol/Dec 660/94 mln/2019

09:45 am : Stocks are under pressure in the early going. They had started to pare their opening gap down, but pressure has picked back up to take the broader market another leg lower.

Utilities stocks are under the most pressure at the moment. The sector's 1.8% loss has been led by weakness among electric utilities (-2.0%), which have been implicated by concerns about Japan's nuclear plants, which have been compromised by the massive earthquake that hit the country late last week. DJ30 -50.33 NASDAQ -9.51 SP500 -6.17 NASDAQ Adv/Vol/Dec 434/52 mln/1753 NYSE Adv/Vol/Dec 426/44 mln/2009

09:15 am : S&P futures vs fair value: -7.30. Nasdaq futures vs fair value: -12.10. Stock futures continue to suggest that today's session will start with a sizable loss. The weak mood among morning traders mostly stems from concerns about the implications of a massive earthquake in Japan late last week, as well as the consequences of demolished nuclear facilities in the wake of the quake. Those themes left Japan's Nikkei to plummet 6.1% in its worst single session slide in more than two years, even though Japan's central bank made the decision to increase its asset purchase plan to 10 trillion yen from 5 trillion and to make another 15 trillion yen available for the banking system, so as to promote liquidity. Europe's major bourses have also mostly moved lower. Officials voted to increase the bailout package for fiscally strained eurozone countries to 440 billion euros from 250 billion euros. Stocks in countries that are most likely to benefit from this decision have benefited from the news, though.

09:05 am : S&P futures vs fair value: -7.00. Nasdaq futures vs fair value: -12.90. Oil prices remain under pressure. As such, generic futures contracts currently price the energy component at $99 per barrel in the first few minutes of pit trade. That translates to a 2.1% loss. In contrast, natural gas prices are up a sharp 2.3% to $3.98 per MMBtu. Precious metals are also mixed. Specifically, gold prices were last quoted 0.2% higher at $1425 per ounce, but silver is off by 0.1% at $35.89 per ounce. General weakness in the commodity complex has the CRB Commodity Index down 0.7%, which puts it on pace for its fifth straight loss. During the course of those five sessions, the CRB has fallen almost 4%.

08:35 am : S&P futures vs fair value: -6.70. Nasdaq futures vs fair value: -12.10. Premarket trade continues to be characterized with weakness. There is also pressure in Europe. During the weekend leaders of the European Union agreed to expand their bailout program to a full 440 billion euros, up from 250 billion. The revised plan is intended to allow the purchase of bonds on the primary market and also provide easier credit terms to Greece. Greece's ASE has rallied about 6% in response to the news. Spain's IBEX has bounced 1.7%. However, Germany's DAX is down 1.3% as its declining issues outnumber its advancers by 4-to-1. RWE AG, Muenchener Rue, and Allianz (AZ) have been the heaviest drags. Deutsche Bank (DB) has put together a nice bounce after trading downward during recent sessions. France's CAC is currently down 0.6% as energy giant Total (TOT) becomes imbued by weakness associated with falling oil prices. Discretionary play LVMH Moet Hennessey has also been a source of weakness. Financial outfits BNP Paribas, Societe Generale, and Credit Agricole have been strong performers, though. Britain's FTSE is off by 0.3%. Vodafone (VOD) has been under heavy pressure. BP Plc (BP), BHP Billiton (BHP), and HSBC (HBC) have also been hit hard, but related issues like Rio Tinto (RIO), Xstrata, and Standard Charter have put together gains.

Overnight action in Asia was highlighted by a 6.1% drop in Japan's Nikkei -- its worst single-session loss in more than two years. The Bank of Japan announced plans to inject 15 trillion yen, or a bit more than $180 billion, into the Japanese banking system so as to promote liquidity in the wake of the earthquake crisis. The country's central bank also held its benchmark interest rate at 0.10% and raised its asset buying program to 10 trillion yen from 5 trillion yen. Only a handful of stocks managed to put together gains. Housing related plays like Daiwa House and Sekisui House were atop that short list. Mainland China's Shanghai Composite mustered a 0.1% gain in the face of Japan's drop. It was led by China Shenhua and Inner Mongolia. PetroChina (PTR) and Bank of China proved to be sources of weakness. In Hong Kong, the Hang Seng advanced 0.4%. It was led by Tencent Holdings, which spiked more than 3%. Industrial & Commercial Bank and CNOOC (CEO) also offered leadership. Sun Hung Kai Properties was weak, though, as were China Mobile and Cheung Kong.

08:05 am : S&P futures vs fair value: -7.20. Nasdaq futures vs fair value: -14.90. Stock futures are under stiff pressure this morning. Stocks had actually headed into the weekend on a positive note as the major equity averages shook off news of a massive earthquake in Japan, but sentiment has soured as the death toll in Japan climbs and the country reports problems with its nuclear facilities. Japan's Nikkei plummeted 6.2% in its first full session since the events took place. In its latest meeting, Japan's central bank left its target lending rate unchanged, but increased its asset buying program to 10 trillion yen from 5 trillion yen. Although Japan's market was extremely weak, Asia's other major averages mustered gains. Europe's major bourses are down amid varied pressure. Oil prices continue to come under selling pressure; the energy component is currently down 1.5% to $99.65 per barrel in electronic trade. Corporate news flow is light this morning, but there have been a couple of noteworthy merger and acquisition items, including the purchase of Lubrizol (LZ) by Berkshire Hathaway (BRK.A) for $135 per share. Kirby (KEX) will acquire K-Sea Transportation (KSP) for $8.15 per share. The bids reflect premiums of about 28% and 26%, respectively, over last week's closing prices.

06:46 am : [BRIEFING.COM] S&P futures vs fair value: -2.00. Nasdaq futures vs fair value: -5.60.

06:46 am : Nikkei...9620.49...-633.90...-6.20%. Hang Seng...23345.88...+96.10...+0.40%.

06:46 am : FTSE...5829.48...+0.80...0.00. DAX...6934.31...-47.20...-0.70%.

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
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