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)


Trade Performance for Today: +0.00 points or $0.00 dollars in the Russell 2000 Emini TF ($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=928.

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=138&t=1058

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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 (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.

CNNMoney.com - Stocks Drop As Job Report Disappoints

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

By Ken Sweet, contributing writer July 8, 2011: 4:44 PM ET

NEW YORK (CNNMoney) -- U.S. stocks posted broad losses on Friday as Wall Street dealt with a dismal June jobs report that showed hiring crawled to a near standstill last month.

"We now have a clear indication of a stall in the U.S. economic recovery," said Frank Davis, director of sales and trading with LEK Securities.

The Dow Jones industrial average (INDU) sank 62 points, or 0.5%, to close at 12,657. The S&P 500 (SPX) fell 9 points, or 0.7%, to 1,344; and the Nasdaq Composite (COMP) fell 13 points, or 0.5%, to 2,860.

Investors focused on the Labor Department's jobs report, which showed the U.S. economy created only 18,000 jobs last month, a fraction of the 120,000 jobs that a CNNMoney survey of 27 economists had forecast.

June's unemployment rate rose to 9.2% from 9.1%, versus the decline to 9% economists had expected.

"There's no way to spin today's number into a way that's positive," said Liz Ann Sonders, chief investment strategist with Charles Schwab.

Investor reaction to the report was broadly negative. Twenty three of the 30 Dow members ended the session in the negative, with Bank of America (BAC, Fortune 500) and General Electric (GE, Fortune 500) the biggest laggards among the blue chips.

Meanwhile bond yields swooned as investors flooded into the relative safety of government bonds. Gold prices rose as well.

The yield on the benchmark 10-year note briefly fell below the 3% mark, down from Thursday's yield of 3.14%. Energy-related commodities also sold off, with oil falling more than 2.5%.

* June jobs report: Hiring slows, unemployment rises

"We have had many, many months to stimulate this economy and still not seeing businesses hire," Davis said. "It's a real concern."

The government's jobs report came as a sharp contrast to two stronger-than-anticipated reports released Thursday on the employment market, which helped U.S. stocks rise sharply yesterday.

Despite today's losses, all three indexes posted gains in this holiday-shortened week. The Dow rose 0.4% while the S&P rose 0.2% and the Nasdaq rose 1.4%.

Companies: News Corp. (NWSA, Fortune 500) was the worst performer on the S&P 500 on Friday, sinking 4%, as the company continues to deal with the fallout stemming from the "News of the World" hacking scandal. Investors expressed concern that the hacking scandal may stop regulators from approving News Corp.'s bid to purchase British TV provider BSkyB.

Shares of JDS Uniphase (JDSU) fell 4.5% after Piper Jaffray lowered its price target on the stock to $21 from $25.

Economy: The Commerce Department said May wholesale inventories rose 1.8%, better than the 0.9% that economists had expected.

U.S. consumer credit rose by a seasonally-adjusted rate of 2.5% in May, the Federal Reserve said Friday. It was the eighth-straight monthly increase for that figure.

World markets: European markets ended Friday's session solidly lower after the jobs report. Britain's FTSE 100 ticked down by 1.1%, the DAX in Germany lost 0.9% and France's CAC 40 fell 1.5%.

Asian markets finished the week with gains. The Shanghai Composite ticked up 0.1%, the Hang Seng in Hong Kong jumped 0.9% and Japan's Nikkei rose 0.7%.

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

Oil for August delivery fell $2.47, or 2.5% to $96.20 a barrel.

Gold futures for August delivery gained $11 to $1,541.60 an ounce.



Yahoo! Finance - Market Update

4:15 pm : Disappointment over the latest payrolls report drove broad selling pressure today, but stocks were able to battle back. That helped the stock market score a slight weekly gain.

Official data for June showed that nonfarm payrolls increased by 18,000 and private payrolls increased by 57,000. Respective increases of 80,000 and 110,000 had been expected, on average, among economists surveyed by Briefing.com. Participants were also surprised by an increase in the headline unemployment rate to 9.2% from 9.1%, even after some 270,000 people left the labor force. The negativity of the data seemed doubly surprising since just yesterday the ADP Employment Change Report for June had exceeded expectations.

Given that job growth isn't what it was expected to be during June, many called into question the trajectory of the economy. Suspicion of anemic growth put participants on the defensive and drove broad selling pressure that took all 10 major sectors into the red and each of the three major equity averages down more than 1%.

Financials felt the brunt of the selling effort after they had outperformed in the prior session. As a group, financials fell 1.3%, but regional banks generally represented the sector's worst performers.

In the face of widespread weakness, stocks were able to attract some buying interest into the close. That helped the stock market moderate its loss and secure a modest weekly gain of 0.3%, which comes on top of last week's 5.6% climb. The stock market last scored back-to-back weekly gains in April.

Although pressure eased in late afternoon trade, defensive-oriented plays were still the top performers. Specifically, consumer staples slipped just 0.3%, while telecom stocks, health care stocks, and utilities stocks declined only 0.4%.

Treasuries traded with heady gains all session. At the closing bell the benchmark 10-year Note was quoted with a gain of more than a full point. That dropped the Note's yield back to within a couple of basis points of 3.0% after it had traded narrowly below 3.2% in the prior session.

Among commodities, gold prices gained 0.7% to close pit trade at $1541.90 per ounce. Silver only gained an incremental 0.1% to close the week at $36.56 per ounce. Oil grappled with aggressive selling all session. The cyclically sensitive commodity was clipped for a 2.5% loss as it settled at $96.20 per barrel.

Concerns about the U.S. economy caused the dollar to surrender an early gain that came in response to a weaker euro, which was cut down in response to concerns about the financial systems of countries in the eurozone periphery, but it was able to rebound for a 0.3% gain against a basket of major foreign currencies.

Advancing Sectors: (None)
Declining Sectors: Consumer Staples -0.3%, Health Care -0.4%, Utilities -0.4%, Telecom -0.4%, Tech -0.5%, Consumer Discretionary -0.6%, Energy -0.7%, Materials -0.7%, Industrials -1.2%, Financials -1.3%DJ30 -62.29 NASDAQ -13.77 NQ100 -0.3% R2K -0.7% SP400 -0.7% SP500 -9.42 NASDAQ Adv/Vol/Dec 836/1.50 bln/1725 NYSE Adv/Vol/Dec 849/630 mln/2126

3:30 pm : Trade in commodities today was largely driven by this morning's dismal jobs data. That data caused for a sharp pullback in the dollar. Energy: August crude oil finished lower by 2.5% to $96.20 per barrel. Crude oil futures dropped approximately 2.5 points following the release of the data, and extend that sell off another point, later in the morning, to session lows at $95.60. It spent the remainder of the session pushing slowly lower off those lows to end around $96 per barrel. August natural gas finished higher by 1.8% to $4.21 per MMBtu, recouping some of its losses from yesterday's inventory induced sell off.

A pullback in the dollar, coupled with a flight to safety, on the back of the jobs data sent precious metals higher today. August gold finished higher by 0.7% to $1541.90 per ounce, while Sept silver ended up 0.1% to $36.56 per ounce. Gold futures put highs, at $1546, early in the session and spent the remainder of the day trading in a small range. Silver gave back most of its gains to trade near the flat line for the remainder of the session. DJ30 -100.92 NASDAQ 22.79 SP500 -13.35 NASDAQ Adv/Vol/Dec 712/1.3 bln/1828 NYSE Adv/Vol/Dec 764/527.8 mln/2215

3:00 pm : Stocks head into the final hour with substantial losses, although the major equity averages have managed to hold steady above their lows for the day. For the week, though, the S&P 500 is flat. That makes for a rather lackluster follow up to last week's climb, which saw the stock market ascend almost 6% for its best weekly performance in about two years.

Consumer credit data for May was just posted. A $5.1 billion increase for the month exceeded the $3.5 billion jump that had been broadly expected. It also marked the eighth straight period of growth in the series. DJ30 -101.15 NASDAQ -25.94 SP500 -13.52 NASDAQ Adv/Vol/Dec 657/1.18 bln/1880 NYSE Adv/Vol/Dec 735/465 mln/2235

2:30 pm : Although the broad market has managed to remain off of its session low, shares of Google (GOOG 529.85, -16.75) are stuck near their worst levels of the day. The stock's loss, which currently stands at about 3%, is largely the result of a downgrade by analysts at Morgan Stanley.

In other analyst action, estimates for Goldman Sachs (GS 134.11, -0.90) have been cut at a couple of different firms, but the stock has managed to limit its loss to less than 1%, even though the rest of the financial sector is down 1.5%. Meanwhile, shares of retailer TJX Co's. (TJX 55.13, +0.14) were upgraded by analysts at Citigroup. That has helped win the stock favor in the face of this session's weakness. DJ30 -101.75 NASDAQ -28.70 SP500 -13.81 NASDAQ Adv/Vol/Dec 645/1.09 bln/1870 NYSE Adv/Vol/Dec 722/428 mln/2249

2:00 pm : Stocks head into the middle of the afternoon with sizable losses. Still, weakness isn't quite as widespread as what it was a couple of hours ago.

Financials and industrials remain the worst performers. Both sectors are down 1.5%. Among financials, Charles Schwab (SCHW 15.50, -0.62) is the worst performer. Robert Half International (RHI 26.79, -1.01) is the worst performing name among industrial issues. DJ30 -103.23 NASDAQ -23.20 SP500 -13.91 NASDAQ Adv/Vol/Dec 670/1.01 bln/1845 NYSE Adv/Vol/Dec 730/390 mln/2220

1:30 pm : Stocks have inched up to an incrementally improved afternoon high. The move comes more as a result of softer selling pressure in the broad market than any actual buying. That said, a few large-cap tech stocks are making more pronounced upward pushes; Microsoft (MSFT 26.75, -0.02) is threatening to turn positive for the first time since this morning while Apple (AAPL 358.21, +1.01) is up to a modest gain.DJ30 -108.04 NASDAQ -28.50 SP500 -14.38 NASDAQ Adv/Vol/Dec 605/920 mln/1895 NYSE Adv/Vol/Dec 665/355 mln/2265

1:00 pm : Stocks are working their way up from session lows, but losses remain prevalent in the wake of a surprisingly weak monthly payrolls report.

An upbeat ADP Employment Change Report on Thursday built up expectations for a strong official payrolls report this morning, but neither nonfarm payrolls nor private payrolls were what had been anticipated. Specifically, nonfarm payrolls increased in June by only 18,000, which is far less than the 80,000 that had been expected, on average, among economists surveyed by Briefing.com. Economists generally expected that private payrolls would increse by 110,000, but they increased by 57,000 instead.

The underwhelming payroll growth coupled with downwardly revised data for the prior month put the headline unemployment rate at 9.2%, up from 9.1%. The increase came even though the labor force actually narrowed by about 270,000 people.

The notion that sluggish job growth is the result of an anemic economic recovery has stoked selling interest. Few stocks have been able to escape the effort; as such, all 10 major sectors are in the red.

Questions about the pace of economic recovery have pressure on oil prices. The cyclically sensitive commodity was last quoted with a 2.5% loss at $96.20 per barrel, and had actually been as low as $95.60 per barrel earlier.

Gold and Treasuries, traditional safe havens, have found favor among market participants amid this session's negativity. Steady buying has kept the benchmark 10-year Note up by about a full point, while gold prices are up 0.7% to $1541.30 per ounce.

The dollar has had a rather volatile session. It had initially traded with strength as participants put pressure on the euro in response to rekindled concerns about the health of banks and broader fiscal conditions of countries in the eurozone's periphery. The jobs report then drove down the dollar to the neutral line, but it has since rebounded to trade with a 0.4% gain against a basket of major foreign currencies. DJ30 -113.03 NASDAQ -27.13 SP500 -14.55 NASDAQ Adv/Vol/Dec 600/859 mln/1892 NYSE Adv/Vol/Dec 646/330 mln/2772

12:30 pm : Stocks have managed to move up from session lows, but they continue to contend with stiff selling pressure that has the three major equity averages down by about 1% or more. Amid the selling, the Volatility Index is up almost 4%, but shy of its weekly high.DJ30 -120.90 NASDAQ -32.71 SP500 -16.10 NASDAQ Adv/Vol/Dec 580/795 mln/1900 NYSE Adv/Vol/Dec 600/309 mln/2300

12:00 pm : Oil prices have been on the retreat all session. The commodity came under pressure immediately after the June jobs report was posted. Given the underwhelming number of payroll increases, participants have questioned the pace of economic recovery and, as a result, sold the cyclically sensitive commodity. Oil prices were last quoted with a 2.5% loss at $96.20 per barrel. Oil was actually as low as $95.60 per barrel only a few minutes ago.DJ30 -107.96 NASDAQ -30.41 SP500 -14.96 NASDAQ Adv/Vol/Dec 510/700 mln/1950 NYSE Adv/Vol/Dec 553/270 mln/2340

11:30 am : Stocks continue to descend deeper into negative territory. That has left the S&P 500 just a few points above its weekly low, which was set at the 1331 line on Wednesday. This session's slide has come amid aggressive selling. In fact, declining volume outweighs advancing volume on the NYSE by more than 13-to-1.

Given the negative tone to today's trade, participants have sought the safety of Treasuries. Their interest has been so strong that the benchmark 10-year Note is up more than a full point. That has taken the Note's yield back near 3.0% after it had been at almost 3.2% yesterday. DJ30 -142.43 NASDAQ -39.21 SP500 -18.83 NASDAQ Adv/Vol/Dec 439/615 mln/2012 NYSE Adv/Vol/Dec 475/235 mln/2392

11:00 am : Stocks slipped some more in recent trade. Strength remains limited.

Financials and industrials -- two of the prior session's top performing sectors -- continue to suffer the worst of this session's selling efforts. Sharp pressure has taken them down to losses of 1.7% and 1.5%, respectively.

The dollar has managed to reclaim some of its morning gain. It had been up about 0.6% against a collection of competing currencies prior to the release of the latest jobs report, but dropped to the flat line after the data proved disappointing. It has since worked its way back up to a 0.4% gain. DJ30 -133.20 NASDAQ -30.82 SP500 -17.03 NASDAQ Adv/Vol/Dec 445/490 mln/1955 NYSE Adv/Vol/Dec 450/180 mln/2395

10:35 am : The dollar index remains close to session lows after falling sharply earlier after the poor jobs figures.

Crude oil continues to trade sharply lower and hit new session lows of $95.71/barrel in recent activity. In current activity, the energy component is down 2.8% at $95.95/barrel. Natural gas futures have been in positive territory all session and are now up 0.9% at $4.18/MMBtu.

Gold and silver both rallied just after floor trading began. Gold hit session highs of $1545.40/oz following the rally, while silver is holding a session high of $36.87. However, gold has been able to hold its gains this morning, while silver lost steam and fell into negative territory a short while ago. Currently, gold is 0.8% higher at $1542.70/oz and silver is down 0.4% at $36.41/oz.DJ30 -133.50 NASDAQ -29.32 SP500 -16.72 NASDAQ Adv/Vol/Dec 430/442.9 mln/1963 NYSE Adv/Vol/Dec 427/173.6 mln/2418

10:00 am : Telecom stocks have managed to limit their losses in the face of broad market selling pressure. The sector has shed only 0.4%, which is less than half of what the overall market has endured, so far, today.

Wholesale inventory data were just released. Inventories increased during May by 1.8%, which is double what had been expected, on average, by economists polled by Briefing.com. The data do not appear to be having any immediate impact on trade. DJ30 -105.73 NASDAQ -22.02 SP500 -12.85 NASDAQ Adv/Vol/Dec 391/175 mln/1870 NYSE Adv/Vol/Dec 369/70 mln/2338

09:45 am : Stocks are down markedly this morning, but the S&P 500 has managed to remain above its weekly low, which was set just above the 1330 line on Wednesday.

Selling pressure is broad in that there isn't a single sector in positive territory. Financials have been the heaviest drags on trade, so far. The sector's 1.4% slide hasn't yet fully offset its 1.6% advance in the prior session, though. DJ30 -93.01 NASDAQ -28.32 SP500 -9.26

09:15 am : S&P futures vs fair value: -15.30. Nasdaq futures vs fair value: -22.00. An encouraging ADP Employment Change Report helped send stocks up sharply to new monthly highs during the prior session, but a surprisingly weak official jobs report released earlier this morning has soured the mood among traders. A firmly lower start to the final session of the week now looks to be in order. If broad market futures offer an accurate picture of the open, all of this week's gain will be erased. Renewed negativity has prompted many participants to push into defensive plays. In turn, the benchmark 10-year Treasury Note is up nearly one full point so that its yield is back near 3.0%, while gold prices have gained 0.8% to trade at $1543 per ounce. The dollar has seen its morning gain dashed, though. It had been up markedly earlier this morning, but now it is up only fractionally. Initial strength in the dollar had come amid a weaker euro, which was weighed down by concerns about the health of banks and finances among countries in the eurozone's periphery.

09:05 am : S&P futures vs fair value: -17.40. Nasdaq futures vs fair value: -25.00. A surprisingly weak jobs report for June has undercut both stock futures prices and crude oil prices. In turn, the equity market is expected to open with a sharp loss. Meanwhile, oil prices are down 1.6% to $97.05 per barrel in the early minutes of pit trade. Natural gas prices are up an enviable 0.9% to $4.17 per MMBtu, though. Precious metals have caught a bid as traders turn to defensive-oriented assets. Specifically, gold prices are up 1.0% to $1545.50 per ounce. Meanwhile, silver was recently quoted with a 0.7% gain at $36.77 per ounce. In the backdrop, the dollar has suffered a marked drop so that it now trades near the neutral line after it had been up about 0.6% an hour ago.

08:35 am : S&P futures vs fair value: -12.00. Nasdaq futures vs fair value: -13.00. Stock futures have reversed sharply into the red with the release of the latest official payrolls report. According to data, nonfarm payrolls increased by only 18,000 during June. They had been expected to increase by 80,000. As for private payrolls, they increased by 57,000, which is considerably less than the increase of 110,000 that had been expected, on average, among economists polled by Briefing.com. The headline unemployment rate increased to 9.2% from 9.1%. Moreover, hourly earnings in June declined by 0.1%, which contrasts with the consensus call for a 0.2% increase. The average workweek during June eased down to 34.3 hours. It had been widely expected to remain at 34.4 hours.

08:05 am : S&P futures vs fair value: +1.00. Nasdaq futures vs fair value: +7.00. A concerted buying effort in the prior session took stocks to their highest level in more than a month after participants got their hands on a surprisingly strong ADP Employment Change Report. A more neutral tone has taken over this morning's premarket trade as participants prepare for the official nonfarm payrolls report, which is due at the bottom of the hour. Consumer credit data, due at 3:00 PM ET, are of secondary concern, and there is little else in the backdrop, given the dearth of corporate announcements and mixed action abroad. However, the dollar is trading with renewed strength after it slipped in the prior session. The greenback was last quoted with a 0.6% gain against a basket of major foreign currencies.

07:22 am : [BRIEFING.COM] S&P futures vs fair value: +2.00. Nasdaq futures vs fair value: +8.00.

07:22 am : Nikkei...10137.73...+66.60...+0.70%. Hang Seng...22726.43...+196.30...+0.90%.

07:22 am : FTSE...6062.52...+8.00...+0.10%. DAX...7499.54...+28.10...+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
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