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 Post subject: July 29th Friday 2011 Emini TF ($TF_F) points +22.80
PostPosted: Fri Jul 29, 2011 8:12 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

Trade Performance for Today: +22.80 points or $2280.00 dollars in the Russell 2000 Emini TF ($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=92&t=952.

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=138&t=1058

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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 (key market events) causes key changes in supply/demand and volatility that's arguably just as important as my technical analysis. Thus, I pay attention to these key market events from one trade to the next trade to give me the market context for my technical analysis.

Image Bloomberg.com (Youtube Video) - U.S. Stocks Fall on GDP Report, Debt Negotiations

July 29 (Bloomberg) -- Bloomberg's Deborah Kostroun reports on the performance of the U.S. equity market today. U.S. stocks slid, pushing the Standard & Poor's 500 Index to its biggest weekly loss in a year, as economic growth trailed forecasts and investors awaited the outcome of negotiations to avoid a federal default. Bloomberg's Pimm Fox also speaks.

Image CNNMoney.com - Stocks: Worst week in 2011
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By Ken Sweet, contributing writer July 29, 2011: 4:19 PM ET

NEW YORK (CNNMoney) -- Stocks ended Friday's session sharply lower, posting their worst weekly performance in more than a year, as investors grow increasingly worried that Washington may not reach a deal to raise the debt ceiling before the deadline.

At the preliminary close, the Dow Jones industrial average (INDU) fell 97 points, or 0.8%, to close at 12,143. Friday's selling was broad, with 28 out of the Dow's 30 members trading in the red. The blue chips were led lower by shares of drug maker Merck (MRK, Fortune 500) and technology company Hewlett-Packard (HPQ, Fortune 500).

For the week, the Dow sunk 4.2% -- its worst weekly performance since June 2010.

The S&P 500 (SPX) traded down 8 points, or 0.7%, to 1,292; and the Nasdaq Composite (COMP) lost 10 points, or 0.4%, to 2,756. The S&P 500 dropped 3.6% and the Nasdaq lost 3.9% for the week.

Along with the debt ceiling, investors had to work through a disappointing government report showing the U.S. economy grew at a 1.3% annual rate in the second quarter. The data was far worse than expected.

"The GDP number was nothing short of a disaster and worse," said Dave Rovelli, managing director of US equity trading at Canaccord Adams. "We went from little growth to no growth."

* The Triple-A debt club

America's Debt Crisis: Investors remained unnerved after House Speaker John Boehner delayed a vote late Thursday on his plan to raise the debt ceiling. However, after the initial delay, Boehner's bill now has the votes to pass the House. Republican leadership apparently agreed to attach a balanced budget amendment to Boehner's bill to help court the Tea Party.

The market's fear factor -- the CBOE Market Volatility Index (VIX), commonly called the VIX -- jumped up 8.2% in part on both the GDP and debt ceiling news. That's still below 30, which denotes high fear in the marketplace, but the index has shot up more than 46% in just the past five days.

"People are just crossing their fingers that these morons in Congress will get a deal done by Monday," Rovelli added.

But even if Boehner's plan does pass the House, Senate Majority Leader Harry Reid has promised the Democratic-controlled Senate will block it, and President Obama re-emphasized on Friday that he would veto it.

But investors are mostly positive that a deal will get done.

"There's enough ideas in all the bills that have passed in the House and the Senate, that we can cobble something together that everyone can agree to," Orlando said.

Bonds: The price on the benchmark 10-year U.S. Treasury rose, pushing the yield down to 2.83% from 2.95% late Thursday.

Short-term Treasuries saw moderate selling on Friday, as investors pulled money out of securities that would likely be the first affected by a government default. The yield one-month T-bill was up to 0.18% from 0.15% Thursday.

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

Oil for September delivery fell $1.74, or 1.8%, to $95.70 a barrel.

Gold futures for August delivery jumped $14.90, or 0.9%, to $1,628.30 an ounce. Earlier in the session, gold hit an intraday record of $1,634.90 an ounce.

Companies: Drugmaker Merck (MRK, Fortune 500) said it plans reduce its workforce by 12% to 13% from 2009 levels by the end of 2015, as the next phase of a restructuring program. Shares fell 2%

Shares of Newell Rubbermaid (NWL, Fortune 500) rose 8% after the company said it earned 46 cents a share in the second quarter, beating forecasts by four cents. The household products company also lowered its full-year guidance, citing higher commodity costs and weaker sales.

Shares of online travel site Expedia (EXPE) jumped 9%, after the company reported better-than-expected earnings.

Economy: The Chicago purchasing managers index fell to a reading of 58.8 in July. Economists had expected a reading of 58, according to Briefing.com. The level still indicates an expansion in the region's manufacturing activity.

World markets: European stocks fell moderately on Friday. Britain's FTSE 100 lost 1%, the DAX in Germany was off 0.4% and France's CAC 40 slid 0.9%.

In a widening of Europe's debt crisis, Moody's said it may downgrade Spanish debt. The credit rating agency said that while the country's sovereign rating was being placed under review, any downgrade would most likely be "limited to one notch."

Asian markets ended lower. The Shanghai Composite edged down 0.3%, the Hang Seng in Hong Kong fell 0.6% and Japan's Nikkei declined 0.7%

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Image Yahoo! Finance - Market Update

4:05 pm : The S&P 500 lost 4% this week, and that move is primarily attributable to growing concerns about lawmakers ability to come to an agreement on the U.S. debt ceiling, and the subsequent downgrade of U.S. credit by one of the ratings agencies, which could materialize even if a debt agreement is reached.

We saw this uncertainty play out in various markets throughout the week, and the most striking result was the 45% increase in the VIX Volatility Index, which measures volatility expectations. The increase in the VIX illustrates a much greater degree of uncertainty about the market, and represents an increased cost of downside protection in the form of put options.

The flow of money into safer assets has also resulted in a 1.6% gain in gold prices to fresh all-time highs, as gold could be the ultimate safety shelter if things deteriorate elsewhere. Additionally, and perhaps surprisingly, U.S. treasuries found a bid this week, sending 10-year yields lower by 16 bps to 2.80% (yes, this is the debt that is at risk of being downgraded!). The bid in treasuries is another safety trade, because despite the current situation, there is little fear that treasuries will lose their standing as one of the most risk-free returns in the world.

There could be an extension of these moves in equities, volatility and gold if some sort of deal isn't reached by the August 2 deadline. As we've seen in the past, further selling in the stock market could become the catalyst to a compromise if one is not reached in due time. As such, this weekend will be a very important one in Washington, as the two sides of the aisle will presumably be working toward some sort of compromise.

Looking more closely at today's action, we're closing out the week on more negative headlines, with little concrete progress on the debt limit negotiations and a weak Q2 GDP reading, which came on top of a negative revision to Q1.

Despite the negativity, there were a few factors that have allowed the market to rebound from its pre-market lows. First, as the S&P 500 futures sold off in reaction to the GDP data, they managed to hold their 200-day moving average, which is a positive from a technical standpoint. Then, after holding onto to a modest recovery from the lows, the markets extended their bounce as headlines crossed newswires suggesting more Republican representatives are supporting the House bill, along with some details of a revised plan calling for short-term extension with a 2nd increase contingent on a Balanced Budget Amendment. The early bounce in the market likely involved some short-covering after the S&P 500 held its 200-day moving average, ahead of the possibility for a weekend deal.

Earnings season progressed this week, and roughly 2/3 of the S&P 500 companies have now reported their results. Overall, the earnings results are surpassing consensus expectations, with about 2/3 of companies beating bottom-line earnings estimates, and a slightly higher proportion of companies beating the top-line sales expectations. One of today's biggest movers on earnings is storage company STEC (STEC 10.17, -6.53), which is -39% after reporting a disappointing quarter and issuing guidance that was well below expectations.

Additionally, online travel company Expedia (EXPE 31.69, +2.70) released earnings of $0.55 per share which topped the Capital IQ Consensus Estimate by $0.06, and hit an all-time high on today's pop of more than 12%. Revenues also beat forecasts, climbing 22.7% year over year to $1.02 billion. Gross bookings surged 19% versus the previous year with domestic bookings jumping 10% and international bookings surging 37%.

Shares of Starbucks (SBUX 40.09, +0.11) are one of the bright spots today after reporting better than expected earnings following yesterday's close. The company announced earnings per share of $0.36 which topped the Capital IQ Consensus Estimate by $0.02. Revenues for the third quarter rose 12.3% year over year to $2.9 billion ($2.84 billion consensus) while consolidated same store sales climbed 8%. In-line guidance for full year 2011 shows earnings per share of $1.50-1.51. The company plans to accelerate growth by opening approximately 800 net new stores globally in 2012.

Gold miner Newmont Mining (NEM 55.61, -2.12) is down close to 3.0% after earnings for second quarter fell short of estimates. The company announced earnings of $0.90 per share, excluding non-recurring items, which were $0.09 worse than the Capital IQ Consensus Estimate. Revenues rose 10.7% year over year to $2.38 billion, but missed the Capital IQ Consensus Estimate of $2.51 billion. The company's outlook for gold production during 2011 remains on track for the previously announced 5.1 to 5.3 million ounces. DJ30 -96.80 NASDAQ -9.87 SP500 -8.38 NASDAQ Adv/Vol/Dec 1120/2.22 bln/1458 NYSE Adv/Vol/Dec 1055/1.20 bln/1981

3:30 pm : Trade in the commodities markets this week was largely based around the ongoing negotiations between Democrats and Republicans in an attempt to come to some sort of agreement on how to fix the countries debt problem. While commodities certainly focused on the shrinking timeline that the government has to negotiate today, this morning's worse than expected GDP data was the main focus. On the back of that number, precious metals rallied and crude oil futures dropped. Dec gold finished higher by 0.8% to $1629.20 per ounce. The continuous gold contract traded to a new all time high today at $1634.90, and rallied for almost 20 points on the week. Sept silver finished up 0.7% to $40.08 per ounce. Silver futures shed close to 30 cents on the week.

Sept crude oil settled lower by 1.8% to $95.70 per barrel, its lowest close since July 18. Crude oil was able to hold the key $95 support area after notching lows at $94.95 earlier this morning. On the week crude oil shed over $4 (4.2%), and on the month futures gained a modest 28 cents. Sept natural gas settled down 9 cents to $4.15 per MMBtu, trading to its worst levels since July 8. DJ30 -71.52 NASDAQ -5.00 SP500 -5.70 NASDAQ Adv/Vol/Dec 1110/1.8 bln/1464 NYSE Adv/Vol/Dec 1018/739.5 mln/2026

3:00 pm : The dollar index has been stuck near the 73.80 level for most of the U.S. session as the disappointing GDP reading weighed on the greenback. The euro has run back up to the 1.44 area despite the ongoing debt problems that have plagued any of the peripheral countries in the region. The single currency rallied today despite Moody's placing Spain on negative review, and Italian yields climbing 15 basis points. The yen is just off its record high of 76.46 per, but is on pace for its best close ever as it trades 77.06. Authorities at the Bank Japan and Ministry of Finance may soon need to take action to prevent a further strengthening of the currency from hampering the nation's economic recovery. The Swiss franc moved rallied to another record high today, almost touching .7850 per dollar. The franc has been the safe-haven of choice throughout the financial crisis and has gained more than 30% against the greenback over the past 14 months.DJ30 -39.01 NASDAQ +3.63 SP500 -1.56 NASDAQ Adv/Vol/Dec 1255/1.62 bln/1304 NYSE Adv/Vol/Dec 1201/671.4 mln/1838

2:30 pm : The major indices continue their mixed trade as the Nasdaq holds onto fractional gains while the S&P and Dow trade lower.

Annaly Capital Management (NLY 16.68, -0.59) was down more than 18% in the opening minutes of trade, but has recovered a substantial portion of its losses. The REIT saw heavy selling as bet ceiling uncertainty and the possibility of a U.S. downgrade has created significant volatility among agency REITS. Capstead Mortgage Corp. (CMO 126.61, -0.40) and Hatteras Financial Corp. (HTS 26.56, -1.12) are other names in the space that have seen an uptick in volatility today.DJ30 -55.78 NASDAQ +1.62 SP500 -3.39 NASDAQ Adv/Vol/Dec 1207/1.52 bln/1327 NYSE Adv/Vol/Dec 1086/624.0 mln/1936

2:00 pm : Treasuries hover near their best levels of the session as this morning's disappointing GDP reading dropped some yields to their lowest levels since the end of November. Maturities across the complex are boasting solid gains as the 30-yr bond leads today's advance with a gain of 1.5%. The heavy buying in all maturities has had the biggest impact on yields in the belly of the curve as the 5-yr is down more than 13 basis points at 1.396%. Meanwhile, the closely followed 10-yr yield hit its lowest level since November 30 as buying dropped it to 2.838%. Bull flattening is taking place along the yield curve with the 2-10-yr spread tightening to 246.4.DJ30 -54.41 NASDAQ +3.00 SP500 -2.79 NASDAQ Adv/Vol/Dec 1235/1.43 bln/1317 NYSE Adv/Vol/Dec 1128/579.9 mln/1891

1:30 pm : As mentioned throughout the day, we're closing out the week on more negative headlines, with little concrete progress on the debt limit negotiations and a weak Q2 GDP reading, which came on top of a negative revision to Q1.

Despite the negativity, there were a few factors that have allowed the market to rebound from its pre-market lows. First, as the S&P 500 futures sold off in reaction to the GDP data, they managed to hold their 200-day moving average, which is a positive from a technical standpoint. Then, after holding onto to a modest recovery from the lows, the markets extended their bounce as headlines crossed newswires suggesting more Republican representatives are supporting the House bill, along with some details of a revised plan calling for short-term extension with a 2nd increase contingent on a Balanced Budget Amendment. Additional headlines indicated there could be a vote on the new plan later today. Regardless, the bill would still face a likely defeat in the Senate, but it may be seen as a step toward further negotiation, after President Obama indicated earlier in the day that the two sides were not that far apart.

The early bounce in the market likely involved some short-covering after the S&P 500 held its 200-day moving average, ahead of the possibility for a weekend deal. After a 4% drop in the S&P 500 on the week, this type of thinking could become more evident as the day progresses, depending on the headline flow.DJ30 -59.52 NASDAQ -3.17 SP500 -4.40 NASDAQ Adv/Vol/Dec 1063/1.34 bln/1476 NYSE Adv/Vol/Dec 963/540.7 mln/2035

1:00 pm : The major averages saw heavy selling in the opening minutes of trade after the first look at second quarter GDP disappointed. Stocks then rebounded on a mid-morning announcement that Rep. Boehner had enough votes to pass his bill in the House. The momentum was short lived as stock soon began to turn lower. Problems in Europe remain front and center as Moody's announced it was placing Spain on review for a possible downgrade, and reports linking Italian Finance Minister Tremonti to the mafia continue to surface. Italian yields surged by 15 basis points across most of the curve today. Corporate earnings continue to top forecasts with Starbucks and Expedia trading higher following their results.

Online travel company Expedia (EXPE 32.46, +3.47) released earnings of $0.55 per share which topped the Capital IQ Consensus Estimate by $0.06, and hit an all-time high on today's pop of more than 12%. Revenues also beat forecasts, climbing 22.7% year over year to $1.02 billion. Gross bookings surged 19% versus the previous year with domestic bookings jumping 10% and international bookings surging 37%.

Shares of Starbucks (SBUX 40.40, +0.42) are one of the bright spots today after reporting better than expected earnings following yesterday's close. The company announced earnings per share of $0.36 which topped the Capital IQ Consensus Estimate by $0.02. Revenues for the third quarter rose 12.3% year over year to $2.9 billion ($2.84 billion consensus) while consolidated same store sales climbed 8%. In-line guidance for full year 2011 shows earnings per share of $1.50-1.51. The company plans to accelerate growth by opening approximately 800 net new stores globally in 2012.

Not all earnings reports came in better than expected as gold miner Newmont Mining (NEM 56.12, -1.61) is down close to 3.0% after earnings for second quarter fell short of estimates. The company announced earnings of $0.90 per share, excluding non-recurring items, which were $0.09 worse than the Capital IQ Consensus Estimate. Revenues rose 10.7% year over year to $2.38 billion, but missed the Capital IQ Consensus Estimate of $2.51 billion. The company's outlook for gold production during 2011 remains on track for the previously announced 5.1 to 5.3 million ounces.

Shares of Yahoo! (YHOO 13.12, -0.38) have tumbled to their worst levels of the session after trading up more than 9.0% in pre-market trade following the company announcing an agreement with Alibaba Group and Softbank regarding Alipay. The new deal will allow Alibaba to receive between $2 and $6 billion for an initial public offering of Alipay, and will give them the opportunity to license some technology and intellectual property to Alipay. In exchange, Alibaba will then receive royalties from Alipay. Yahoo! owns approximately 40% of Alibaba.

A flight to Treasuries has pushed the 10-yr yield down to 2.841%, its lowest level since the end of November. Recent strength in the dollar index has faded and the euro now trades up more than 60 pips near 1.4390.DJ30 -66.82 NASDAQ -4.04 SP500 -5.14 NASDAQ Adv/Vol/Dec 985/1.26 bln/1549 NYSE Adv/Vol/Dec 909/508.0 mln/2089

12:30 pm : Stocks have slipped off their morning highs and are now decidedly in the red as the Dow leads the major averages lower with a loss of 0.5%. The S&P and Nasdaq are faring a little better, trading down 0.3% and 0.2% respectively.

Online travel company Expedia (EXPE 32.60, +3.61) released earnings of $0.55 per share which topped the Capital IQ Consensus Estimate by $0.06, and hit an all-time high on today's pop of more than 12%. Revenues also beat forecasts, climbing 22.7% year over year to $1.02 billion. Gross bookings surged 19% versus the previous year with domestic bookings jumping 10% and international bookings surging 37%. DJ30 -62.66 NASDAQ -3.87 SP500 -3.70 NASDAQ Adv/Vol/Dec 977/1.17 bln/1526 NYSE Adv/Vol/Dec 898/470.4 mln/2086

12:00 pm : Stocks continue their recent mixed trade as the Nasdaq holds a small gain while the S&P and Dow are seeing modest losses.

Shares of Yahoo! (YHOO 13.18, -0.32) have tumbled to their worst levels of the session after trading up more than 9.0% in pre-market trade following the company announcing an agreement with Alibaba Group and Softbank regarding Alipay. The new deal will allow Alibaba to receive between $2 and $6 billion for an initial public offering of Alipay, and will give them the opportunity to license some technology and intellectual property to Alipay. In exchange, Alibaba will receive royalties from Alipay. Yahoo! owns approximately 40% of Alibaba. DJ30 -43.10 NASDAQ +2.86 SP500 -1.28 NASDAQ Adv/Vol/Dec 1092/1.06 bln/1385 NYSE Adv/Vol/Dec 1044/425.4 mln/1931

11:30 am : The major averages have erased all of this morning's losses and now mixed with the Nasdaq and S&P holding respective gains of 0.5% and 0.2% while the Dow trades down 0.1%. The recent turnaround comes on news that the Boehner bill will be voted on later this afternoon, and will likely pass in the House.

Gold miner Newmont Mining (NEM 55.94, -1.79) is down close to 3.0% after earnings for second quarter fell short of estimates. The company announced earnings of $0.90 per share, excluding non-recurring items, which were $0.09 worse than the Capital IQ Consensus Estimate. Revenues rose 10.7% year over year to $2.38 billion, but missed the Capital IQ Consensus Estimate of $2.51 billion. The company's outlook for gold production during 2011 remains on track for the previously announced 5.1 to 5.3 million ounces. DJ30 -7.42 NASDAQ +13.06 SP500 +2.95 NASDAQ Adv/Vol/Dec 1353/919.8 mln/1113 NYSE Adv/Vol/Dec 1337/375.5 mln/1615

11:00 am : The major averages have pushed to their best levels on reports that more members are supporting the House bill. The Nasdaq has crossed into positive territory while the Dow and S&P hold small losses.

Starbucks (SBUX 40.40, +0.42) is one of the bright spots today after reporting better than expected earnings following yesterday's closing bell. The company announced earnings per share of $0.36 which topped the Capital IQ Consensus Estimate by $0.02. Revenues for the third quarter rose 12.3% year over year to $2.9 billion ($2.84 billion consensus) while consolidated same store sales climbed 8%. In-line guidance for full year 2011 shows earnings per share of $1.50-1.51. The company plans to accelerate growth by opening approximately 800 net new stores globally in 2012. DJ30 -42.38 NASDAQ +0.95 SP500 -1.62 NASDAQ Adv/Vol/Dec 1412/746.4 mln/1102 NYSE Adv/Vol/Dec 1524/314.1 mln/1472

10:30 am : Trade in commodities, thus far this Friday morning, has largely been based around this morning's GDP number -which came in worse-than-expected. This caused Dec gold, currently higher by 1% to $1632.50 per pounce, and Sept silver, currently higher by 1.1% to $40.22 per ounce, to rally. Both metals have recently extended their moves to the upside, with gold recently notching highs at $1637.50 per ounce, and silver at $40.41 per ounce.

Sept crude oil futures, currently lower by 1.6% at $95.85 per barrel, sold off on the worse-than-expected data, notching session lows at $94.95. Futures have since rebounded off that $95 level, a key support level, to trade back to around $95.50. Sept natural gas futures are extending their sell-off following yesterday's inventory data and are currently lower by 1.1% to $4.20 per MMBtu. DJ30 -107.05 NASDAQ -20.87 SP500 -8.46 NASDAQ Adv/Vol/Dec 552/550.6 mln/1861 NYSE Adv/Vol/Dec 433/235.7 mln/2485

10:00 am : The major averages have seen a small bounce off their worst levels of the session, but still hold large losses as all three trade down 0.8%. The Nasdaq is pacing today's decline with a loss of 1.1%. The final July Consumer Sentiment Survey from the University of Michigan came in at 63.7, down slighlty from the preliminary reading of 63.8. The consensus among economists polled by Briefing.com had been pegged at 63.8. Also out moments ago was Chicago PMI. The report's reading of 58.8 exceeded the 58.0 that had been widely expected.DJ30 -91.61 NASDAQ -21.89 SP500 -9.90 NASDAQ Adv/Vol/Dec 1412/341.1 mln/1102 NYSE Adv/Vol/Dec 1524/155.4 mln/1472

09:45 am : The major market averages are all holding losses of close to 1.0% in early action. Today's Selling has dropped the S&P 500 to its 200-day moving average, a technically important level. This morning's downdraft has pushed the Volatility Index (VIX) to a four-month high. Energy, IT, and materials are seeing the biggest declines as all three trade down roughly 1.3%. Chicago PMI and Michigan Sentiment - Final will be releases at 9:45 a.m. ET and 9:55 a.m. ET respectively.DJ30 -118.82 NASDAQ -33.30 SP500 -14.22 NASDAQ Vol 202.2 mln NYSE Vol 103.0 mln

09:15 am : [BRIEFING.COM] S&P futures vs fair value: -11.10. Nasdaq futures vs fair value: -15.50. Equity futures are pointing to a sharply lower open after the disappointing GDP reading. The poor GDP number has put a bid into Treasuries with the 10-yr yield lower by almost seven basis points at 2.884%. Meanwhile, Selling has pushed the dollar index into negative territory as it trades near 74.10 after hitting 74.50 earlier this morning. In corporate news, coffee giant Starbucks (SBUX) topped expectations following yesterday's closing bell while pharmas Amgen (AMGN) and Merck (MRK) both beat forecasts this morning. Today's data calendar still has Chicago PMI at 9:45 a.m. ET, and Michigan Sentiment - Final at 9:55 a.m. ET.

08:58 am : [BRIEFING.COM] S&P futures vs fair value: -13.00. Nasdaq futures vs fair value: -15.50.

Overseas markets have trended lower today as debts worries in both the U.S. and Europe continue to put pressure on equities. A vote on Rep. Boehner's debt plan was cancelled after appeared it would not pass in the House. A comment from Moody's showed the rating agency put Spain on review for downgrade, and that has yields on the rise across the periphery.

The major Asian indices (Nikkei -0.7%, Hang Seng -0.6%, Shanghai -0.3%) closed mostly lower with only stocks in the Philippines ending in positive territory. A strengthening yen continues to weigh on Japanese exporters as Nintendo plunged 12% after cutting its profit forecast by 82%. Shares on the Hang Seng and Shanghai Composite were under pressure as toymaker Li & Fung lost 5.5% in Hong Kong while Yunnan Aluminum sank 3.3% in Shanghai.

European bourses (FTSE -1.4%, CAC -1.5%, DAX -1.0%) tumbled to their worst levels of the session following the disappointing GDP number in the U.S. Financials are seeing heavy selling across the region as the debt problems refuse to go away. Lloyds Banking Group (-4.2%) and Barclays (-3.5%) are the worst performers in London. French banks Societe Generale and Credit Agricole are off 3.7% and 3.3% respectively, but the worst performer on the CAC is Veolia Environnement which is down 9.4% after issuing a profit warning. German automakers are among the worst performers on the DAX as Daimler and Volkswagen are both off close to 2.0%.

08:32 am : [BRIEFING.COM] S&P futures vs fair value: -13.10. Nasdaq futures vs fair value: -14.50. The second quarter GDP report has pushed futures lower. Growth of 1.3% from April through June is weaker than the 1.9% growth recorded for the first quarter, but economists had generally expected more in the second quarter. As for earnings, they continue to be of little motivation to the broader market. Pharmas Merck (MRK) and Amgen (AMGN) both announced top and bottom line beats this morning. Data still to be released today includes Chicago PMI at 9:45 a.m. ET, and Michigan Sentiment - Final at 9:55 a.m. ET.

07:59 am : [BRIEFING.COM] S&P futures vs fair value: -6.00. Nasdaq futures vs fair value: -6.20. Equity futures are pointing to a lower open this morning after yesterday's vote on Rep. Boehner's debt plan failed to get off the ground as it appeared he didn't have enough support. Politicians on both sides of the aisle will work through the weekend as the August 2 deadline is just four days away. Contagion fears in Europe remain front and center as Moody's put Spain on review for a downgrade. The announcement has yields higher across the periphery with Italian yields up close to 15 basis points along the entire curve. Corporate earnings continue to come out generally better than expected with coffee giant Starbucks topping estimates following yesterday's close. Data today includes GDP-Adv., GDP Deflator, and the Employment Cost Index which will all be released at 8:30 a.m. ET, as well as Chicago PMI at 9:45 a.m. ET, and Michigan Sentiment - Final at 9:55 a.m. ET.

07:00 am : [BRIEFING.COM] S&P futures vs fair value: -7.10. Nasdaq futures vs fair value: -6.50.

07:00 am : Nikkei...9833.03...-68.30...-0.70%. Hang Seng...22440.25...-130.50...-0.60%.

07:00 am : FTSE...5821.27...-51.90...-0.90%. DAX...7118.91...-71.20...-1.00%.

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 Trading (no technical indicators)
Image@ 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
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