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 Post subject: August 8th Monday 2011 Emini TF ($TF_F) points +97.60
PostPosted: Mon Aug 08, 2011 5:40 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: +97.60 points or $9760.00 dollars in the Russell 2000 Emini TF ($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, all trades were posted real-time in the free #FuturesTrades chat room. Today's #FuturesTrades trading chat room logs provides details about each one of my trades from entry to exit along with commentary as the trade traversed...all archived @ http://www.thestrategylab.com/ftchat/forum/viewtopic.php?f=93&t=962.

To join our free chat room...registration instructions located at a different forum @ http://www.thestrategylab.com/ftchat/forum/viewtopic.php?f=5&t=630

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=142&t=1168

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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/ECB/IMF actions or any important global economic events 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 results in swing points and strong continuation price actions. 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. Just as important, these summaries becomes my archives to allow me to understand what was happening on any given trading day in the past...something I can not get from my broker statements alone.

U.S. Stocks Tumble the Most Since 2008, Gold Gains

Aug. 8 (Bloomberg) -- Bloomberg's Deborah Kostroun reports on the performance of the U.S. equity market today. U.S. stocks tumbled, extending the biggest slump for the Standard & Poor's 500 Index since 2008's bear market, amid concern that a downgrade of the nation's credit rating by S&P may worsen an economic slowdown.


Quantitative Easing (QE) - There has been more talks recently about QE3 by some of my favorite futures traders. I'll admit I didn't know what exactly was QE3 other than that it had something to do with the Federal Reserve. Yet, someone said it's basically printing more money or actually digital dollars that results in artificially boosting the markets. More dollars in the market=dollar devalues. Prices of goods cost more and you'll see it at places like your grocery stores via higher food prices. With that said, you can find an academic definition via Wikipedia @ http://en.wikipedia.org/wiki/Quantitative_easing

Dow Plunges After S&P Downgrade

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By Ken Sweet, contributing writer August 8, 2011: 4:48 PM ET

NEW YORK (CNNMoney) -- Wall Street had its worst day since the 2008 financial crisis, as fearful investors reacted to the United States losing its coveted AAA credit rating.

All three major U.S. stock indexes sank between 5% and 7%, pushing the Dow below 11,000 for the first time since last November. U.S. stocks have fallen 15% during the past two weeks. Though observers said S&P's downgrade shouldn't matter all that much, the market wasn't buying it.

"Investors are having one reaction to the downgrade: sell first and ask questions later," said Paul Zemsky, head of asset allocation with ING Investment Management. Even if investors dismissed the downgrade, they'd still have to contend with the European debt crisis and rising fears of a new U.S. recession. Those are the factors that led to a drop of more than 6% last week, the worst since the financial crisis of 2008.

The Dow Jones industrial average (INDU) sank 635 points, or 5.6%, to 10,810. The S&P 500 (SPX) lost 80 points, or 6.7%, to 1,120. And the Nasdaq Composite (COMP) dropped 175 points, or 6.9%, to 2,358. The sell-off was worse than the 512-point drop stocks experienced only three trading sessions ago.

Few companies were spared. All members of the Dow 30 and all members of the S&P 500 traded lower. Financial stocks were among the hardest hit, with Bank of America (BAC, Fortune 500) plunging 20%, and Citigroup (C, Fortune 500) and Morgan Stanley (MS, Fortune 500) dropped roughly 15%.

The VIX (VIX) -- Wall Street's so-called "fear' index -- jumped 44% to 45.98, the highest level since early 2009.

* Video - S&P rating: How to get back to AAA

S&P's downgrade of the United States' credit rating by one notch to "AA+", removed the world's largest economy from the Triple A-club for the first time in history.

Since the rating cut is unprecedented, nobody can be certain what the ultimate impact will be. One thing that concerns investors is the hundreds of downgrades that are coming as a result of S&P's action. The credit agency cut the credit ratings of government-backed mortgage financiers Fannie Mae and Freddie Mac, dozens of U.S. insurance companies, as well as several municipalities that all had AAA ratings before the U.S. downgrade.

President Obama sought to reassure the public and markets during a midday speech. "The markets continue to reaffirm our credit as among the world's safest," said Obama. "Our challenge is the need to tackle our deficits over the long term. But here's the good news. Our problems are emminently solvable. And we know what we have to do to solve them."

With so much uncertainty, investors were leaving little to chance. Despite the downgrade of U.S. debt, Treasury prices rose, pushing yields lower, as investors fled into the relative safety of government-backed debt. The yield on the benchmark 10-year U.S. Treasury fell to 2.34% from 2.56% late Friday.

"The Treasury market seems to be oblivious to the fact the U.S.' credit rating was downgraded," said Quincy Krosby, market strategist with Prudential Financial. Gold futures for December delivery surged $61.40, or 3.7%, to top $1,713.20 an ounce as investors sought additional safe havens.

"The downgrade just put investors on an already-heightened state of alert," said Rob Lutts, chief investment officer of Cabot Money Management. "People are exiting any equities they have, and selling off any assets that have any risk exposure."

S&P's U.S. downgrade came at the end of a tumultuous week on Wall Street, with all three indexes delivering their worst performances since the darkest months of the 2008-2009 financial crisis.

European debt crisis: The European Central Bank signaled in a statement Sunday that it was ready to begin buying Italian and Spanish government bonds -- stepping up its efforts to slow the rising panic over the eurozone's debt crisis.

In a separate announcement, finance ministers from the G-7 -- a group of significant world economies -- pledged support for troubled countries.

* Video - S&P: Why we downgraded the U.S.

Though the ECB's support relieved some concerns about Europe's ongoing debt crisis, the uncertainty of the aftermath of S&P's downgrade overwhelmed any investor optimism. "The [ECB's] steps and direction are right but investors are questioning whether officials will be able to do the breadth and depth of assistance needed," said Mike Pond, co-head of interest rate strategy with Barclays Capital.

European stocks ended the session sharply lower. Britain's FTSE 100 (FTSE) dropped 2.7%, the DAX (DAX) in Germany sank 4.7% and France's CAC 40 (CAC) dropped 4.2%.

Meanwhile, Asian markets ended deep in the red. The Shanghai Composite retreated 3.8%, the Hang Seng in Hong Kong and Japan's Nikkei each fell 2.2%.

Bonds: Currencies and commodities: The yen and the Swiss franc -- perceived to be two of the world's safest currencies -- rose against the dollar.

The U.S. dollar, also considered a safe haven, managed to gain some ground against the euro and the British pound.

Oil for September delivery dropped $5.60, or nearly 6.5%, to $81.27 a barrel.

* Video -AIG sues BofA for $10 billion

Economy: Moody's Investors Service explained Monday why it was sticking with its triple-A bond rating and negative outlook for the United States -- setting itself apart from Standard & Poor's.

Moody's said it expects the economy will improve, and that additional measures to reduce the budget deficit will be in place by 2013.

Companies: Berkshire Hathaway (BRKA, Fortune 500) joined the bidding pool for reinsurer Transatlantic Holdings (TRH), with an offer Friday. Transatlantic said they were given until Monday night to decide whether to accept Berkshire's offer. Shares of Transatlantic surged 5.4%.

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Market Update

5:00 pm : Stocks were slammed today with their worst single-session percentate loss since December, 2008. On the surface, the rout came in response to news that analysts at Standard & Poor's cut the US debt rating, but selling was really due mostly to what the downgrade suggested about macro conditions.

In an unprecedented move, analysts at S&P lowered their rating on US debt during the weekend. In turn, US debt is now rated AA+, down from the top-notch rank of AAA. Given that S&P is widely regarded as the most influential rating agency, it mattered little to market participants that Moody's affirmed their AAA rating on the US.

Although many reports may blame this session's precipitous drop on the S&P downgrade, the sell-off really came in response to what the downgrade signified, which is that the US economic outlook isn't as strong as what many had thought. Moreover, any setback in economic activity could further strain US fiscal conditions, which were only recently addressed after weeks of wrangling among legislative leaders. Of course, the threat that the tenuous fiscal and financial conditions of Europe could deteriorate and create contagion have added to concern.

Amid heightened concerns about the macro environment, many traders are dumping stocks in the interest of building liquidity. Of course, their aggressive selling has only begotten additional selling among stocks.

Financials were hit especially hard this session. The sector slumped to a 10% loss so that it is now down 29% from its February high. Bank of America (BAC 6.51, -1.66) was one of the sector's worst performers. It set a two-year low on its way to a 20% loss as some investment funds liquidated their positions in the stock. It didn't help that the bank was hit with a $10 billion mortgage suit by AIG.

Widespread weakness caused the Volatility Index, often euphemistically dubbed the Fear Gauge, to surge 50% to 48.0 for the first time May 2010. Given the fearfulness exhibited by investors, it wasn't such a surprise that gold continued its climb. Still, it was impressive that the yellow metal surged 4% then extended the climb in after-hours trade to a new record high above $1720 per ounce.

Both the dollar and Treasuries benefited from an interest in safety, too. The greenback was up about 0.5% against a basket of major foreign currencies at the end of the trading day. Meanwhile, the yield on the benchmark 10-year Note settled only a couple of basis points above 2.3%.

Advancing Sectors: (None)
Declining Sectors: Consumer Staples -3.8%, Health Care -5.3%, Telecom -5.4%, Utilities -5.5%, Tech -5.8%, Consumer Discretionary -6.7%, Industrials -6.9%, Materials -7.3%, Energy -8.3%, Financials -10.0%DJ30 -634.76 NASDAQ -174.72 NQ100 -6.1% R2K -8.9% SP400 -8.3% SP500 -79.92 NASDAQ Adv/Vol/Dec 114/3.98 bln/2535 NYSE Adv/Vol/Dec 42/2.54 bln/3030

3:30 pm : The S&P downgrade of US sovereign debt, to AAA+ to AA+, sent a shockwave through the markets today. The flight to safety was in full-effect , as the precious metals closed with large gains, while riskier commodities like crude oil finished the session sharply lower... Dec gold finished up 3.7% to $1713.50 per ounce, while Sept silver ended up 3% to $39.37 per ounce. Gold futures have extended their move higher in afterhours trade, notching new all-time highs at $1723.40 per ounce.

Sept crude oil finished lower by 6.4% to $81.31 per barrel. Futures sold off sharply into the close, dropping around two points to fresh lows around $81 per barrel -a sell-off that coincided with fresh lows in the equity markets. That sell-off has extended into afterhours trade, with futures notching new lows at $80.55, their lowest levels since Nov 22. Sept natural gas finished near flat at $3.94 per MMBtu.DJ30 -461.60 NASDAQ -125.59 SP500 -60.45 NASDAQ Adv/Vol/Dec 180/3.2 bln/2463 NYSE Adv/Vol/Dec 64/1.8 bln/3002

3:00 pm : Only one hour remains in today's trade. At its current level, the stock market is at its worst level since September. During the course of the past 11 sessions, the S&P 500 has fallen 16%.

Although every sector is down sharply today, none has suffered as much as financials. Financials are collectively down nearly 9%. There isn't a single stock in the sector that has been able to limit its loss to less than 3%. Bank of America (BAC 6.74, -1.43), down more than 17%, is at its worst level in more than two years. DJ30 -522.41 NASDAQ -148.55 SP500 -68.69 NASDAQ Adv/Vol/Dec 168/2.76 bln/2534 NYSE Adv/Vol/Dec 54/1.55 bln/3094

2:30 pm : Another wave of aggressive selling pressure sent stocks to new session lows. The effort had the Dow down 600 before it was able to make a bounce. In a matter of just a few minutes the Dow has recovered about 60 points, but that move appears very modest when compared with the overall size of today's drop.

Even though stocks recently descended to new session lows, Treasuries didn't really budge. In turn, the yield on the benchmark 10-year Note remains just a few basis points below 2.40%. DJ30 -541.33 NASDAQ -155.23 SP500 -70.63 NASDAQ Adv/Vol/Dec 186/2.39 bln/2493 NYSE Adv/Vol/Dec 61/1.34 bln/3081

2:00 pm : Stocks have eased down to new session lows. Neither the stock market, Treasuries, nor the dollar has showed a real response to recent comments from President Obama, who said that the downgrade of US debt by S&P came because of doubts about the political system. He also said that the problem is not because of confidence in US credit, but the long-term deficit.DJ30 -418.53 NASDAQ -120.60 SP500 -57.27 NASDAQ Adv/Vol/Dec 206/2.17 bln/2476 NYSE Adv/Vol/Dec 68/1.21 bln/3070

1:30 pm : Stocks are stuck near their session lows. The steady selling effort has come amid strong share volume, which has already surpassed 1 billion on the NYSE. The spike in share volume ultimately suggests that today's sell-off has been ushered in by an increase in the number of participants looking to get out of the market after they watched stocks suffer their worst weekly performance in more than two years.DJ30 -323.89 NASDAQ -98.48 SP500 -45.13 NASDAQ Adv/Vol/Dec 231/1.95 bln/2446 NYSE Adv/Vol/Dec 88/1.09 bln/3046

1:00 pm : News that Standard & Poor's downgraded US debt has kept stocks under heavy pressure. In turn, the major market averages are now at new 2011 lows.

The threat that analysts at S&P might downgrade the US debt rating factored into last week's sell-off, which was the worst weekly slide since 2008. That threat became a reality during the weekend, when S&P made the unprecedented move of lowering the US debt rating to AA+ from AAA. Stocks responded with another sharp drop.

Stocks got some relief from news that Moody's reaffirmed its AAA rating on the US. However, the bounce that followed that announcement proved unsustainable. As such, stocks are now back at session lows.

Financials are in the worst shape. As a group, they are down 6.0%. In addition to broad market weakness, the sector has been hurt by news that some investment funds are exiting their positions in different bank stocks. Bank of America (BAC 6.87, -1.30), one of the poorest performers of the session, has also had to deal with news that AIG (AIG 22.63, -2.47) has filed a $10 billion mortgage suit against the company.

The continuation of broad, aggressive selling has prompted a flight to safety that has gold prices up 4% to trade at a new record high near $1720 per ounce.

Despite the US downgrade, Treasuries have also pushed higher, such that the yield on the benchmark 10-year Note is now at a new 52-week low beneath 2.40%.

A weaker euro has helped the Dollar Index trade higher today, although the greenback has been weaker against the yen. The yen, which is also considered a safety play, is up 0.9% against the dollar. DJ30 -328.13 NASDAQ -98.81 SP500 -45.06 NASDAQ Adv/Vol/Dec 232/1.83 bln/2434 NYSE Adv/Vol/Dec 90/1.02 bln/3040

12:30 pm : Stocks have been gradually grinding lower. In turn, the stock market is now back near its session low. At its current level, the S&P 500 is down 14% in just 11 sessions. It is down almost 16% from its May high.

As for overseas action, China's Shanghai Composite fell almost 4% in its latest round of trade. That has the Composite deeper into bear market territory, since it is now down by about 25% from its November high. Japan's Nikkei fell 2.2% overnight so that it is now down almost 17% from its February high. In Europe, Britain's FTSE fell 3.4% on Monday. It is now down 17% from its February high. Germany's DAX dropped 5.0% today, leaving it 22% below its May high so that it is now in bear market territory. DJ30 -332.37 NASDAQ -98.98 SP500 -44.55 NASDAQ Adv/Vol/Dec 222/1.67 bln/2372 NYSE Adv/Vol/Dec 83/923 mln/2954

12:00 pm : Stocks failed to extend their recent rebound attempt. Instead, they have been hit with renewed selling pressure that has left the S&P 500 to continue trading with a loss of more than 3%.

The dollar has encountered some additional selling pressure in recent activity. It had been up solidly this morning, but has since pulled back to the neutral line. Most of the dollar's downturn is due to increased interest in Japan's yen. The yen, which is also considered a safe haven, is now up 1.0% against the greenback. DJ30 -306.33 NASDAQ -88.00 SP500 -39.76 NASDAQ Adv/Vol/Dec 280/1.46 bln/2294 NYSE Adv/Vol/Dec 99/820 mln/2932

11:30 am : News that analysts at Moody's have reiterated their AAA rating for the U.S. has helped lift stocks off of their session lows.

Financials have been unable to peel off of their session lows, however. As a result, the sector continues to contend with a loss of almost 5%. Bank stocks have been a big drag on the space; collectively they are down about 5.5%, as measured by the KBW Bank Index. Among banking plays, Bank of America (BAC 6.93, -1.24) is one of the hardest hit. Its stock has dropped 15%. According to reports, AIG (AIG 23.45, -1.65) filed a mortgage suit seeking more than $10 bilion in damages. DJ30 -295.93 NASDAQ -85.45 SP500 -39.09 NASDAQ Adv/Vol/Dec 273/1.25 bln/2294 NYSE Adv/Vol/Dec 90/710 mln/2925

11:00 am : Stocks recently registered fresh session lows that translate to losses of almost 4% for both the Nasdaq and S&P 500. The Dow is down little more than 3%.

Consumer staples giant Procter & Gamble (PG 60.92, +0.33) is the only name in the 30-member Dow that has managed to put together any kind of a gain. The stock has been helped by some positive analyst commentary following its quarterly report late last week. Meanwhile, fellow blue chip Bank of America (BAC 7.32, -0.84) has dropped 10% amid news that some investment funds have liquidated their position in the diversified financial services giant. DJ30 -330.13 NASDAQ -94.20 SP500 -41.90 NASDAQ Adv/Vol/Dec 260/965 mln/2283 NYSE Adv/Vol/Dec 87/542 mln/2919

10:35 am : Commodities are trading lower this morning on today's broad market weakness. The CRB Commodity Index hasn't been too volatile this morning, but it's remained near session lows. Meanwhile, the dollar index has been in a general uptrend this morning and is back near session highs of 74.94.

In the energy markets, crude oil futures have been sharply lower all session. The energy component fell as far as $82.52/barrel, which occurred about one minute after floor trading began. Crude attempted to run higher and initially recovered as much as $2.00/barrel, but its lose steam and is now down 3.9% at $83.48 barrel.

Natural gas is the best performer in the energy space, but is still showing losses. This energy component has been in the red all session as well, but has erased a sizable portion of its losses and is now 0.9% lower at $3.90.

Gold futures rallied to new all-time highs again, hitting $1718.20/oz in the overnight session. For the majority of the session, gold has remained near those session highs and is currently up 3.2% at $1704.60/oz. Silver has shown strong gains as well all session and are now up 3.3% at $39.47/oz.DJ30 -366.20 NASDAQ -102.01 SP500 -44.94 NASDAQ Adv/Vol/Dec 223/864 mln/2373 NYSE Adv/Vol/Dec 68/495 mln/3007

10:00 am : Stocks had started to pare losses in the opening minutes of trade, but another wave of selling has cut the major equity averages.

There really isn't much support for stocks this morning. In turn, defensive-oriented assets are making the most meaningful gains. As such, gold prices are up 2.6% to $1695 per ounce, which is actually down from the record high near $1720 per ounce that was set in overnight trade. Meanwhile, the dollar is up a strong 0.4% against a basket of major foreign currencies. Treasuries are up, too. DJ30 -175.29 NASDAQ -55.17 SP500 -23.49 NASDAQ Adv/Vol/Dec 412/260 mln/2075 NYSE Adv/Vol/Dec 148/180 mln/2810

09:45 am : Stocks are trying to trim their opening losses, but they still have a long way to go before the gap down can be fully offset.

Consumer staples stocks make up the only major sector that has successfully limited its loss to less than 1% -- as a group, they are down 0.8%. Consumer staples stocks also outperformed last Friday, when they swung to a 1.6% gain.

Energy stocks are at the opposite end of the spectrum. The sector's slide to a 3.0% loss makes it the worst performing sector this morning. A 3.0% drop in crude oil prices to $84.28 per barrel amid rekindled concerns about slower global growth have further undermined the sector. DJ30 -201.25 NASDAQ -51.51 SP500 -24.09 NASDAQ Adv/Dec 403/1985 NYSE Adv/Dec 186/2655

09:15 am : S&P futures vs fair value: -26.70. Nasdaq futures vs fair value: -56.00. The stock market is expected to open with a loss of more than 2%. The premarket sell-off has been driven by news that analysts at Standard & Poor's made the unprecedented move of downgrading the US debt rating, which has gone from AAA to AA+. Many pundits have responded to the announcement with the opinion that the reasons underpinning the downgrade were already known. Additionally, a CNBC headline indicated that famed billionaire investor Warren Buffett believes that US debt is still AAA rated. While news of the debt downgrade has dominated headlines, concerns about the pace of the global recovery and the fiscal and financial stability of countries in the eurozone periphery remain ongoing. Such threats have sent the price of gold up sharply to a new record high above $1700 per ounce. Despite the ding to the US debt rating, Treasuries and the dollar are also up, too.

09:05 am : S&P futures vs fair value: -27.80. Nasdaq futures vs fair value: -56.00. Oil prices are under heavy pressure in the first few minutes of pit trade. Specifically, the energy component is down 4.0% to $83.40 per barrel, which makes for a new intraday low for 2011. Natural gas prices are down 1.2% to $3.89 per MMbtu. A downgrade of US debt by S&P and rekindled concerns about global growth have helped precious metals benefit from a flight to safety. Gold is currently up 3.0% to $1702 per ounce, but off of the record high of almost $1720 per ounce that it set in overnight trade. As for silver, it was last quoted with a 3.3% gain at $39.48 per ounce, but still shy of the multi-month high above $42 per ounce that was set last week. Overall, general weakness in the commodity complex has the CRB Commodity Index down 1.5%.

08:35 am : S&P futures vs fair value: -24.50. Nasdaq futures vs fair value: -51.80. After a weekend that was spent assessing the worst weekly performance for the S&P 500 since November 2008 and news that analysts at Standard & Poor's have downgraded US debt for the first time ever, global participants are dumping stocks. The effort has already taken Japan's Nikkei to a 2.2% loss. Credit Saison, Bridgestone, and Nippon Suisan made up the handful of names on the 225-member index that managed to muster gains. Hong Kong's Hang Seng shed 2.2% amid widespread weakness. Meanwhile, mainland China's Shanghai Composite closed with a 3.8% loss. The Composite is now down 25% from its November high. That makes for bear market territory.

Trade in Europe has left Germany's DAX to trade with a 2.2% loss. BMW, Commerzbank, and Thyssenkrupp are in the worst shape. Allianz (AZ), Deutsche Telekom, and Merck KGAA have successfully made marked advances, however. France's CAC is off by 1.7% at the moment. Of its 40 components, GDF Suez, L'Oreal, France Telecom, and BNP Paribas are the only four names that have found higher ground. Peugeot, Renault, and Alcatel Lucent are the poorest performers. Britain's FTSE is fighting a 1.6% loss. Weakness is also broad there, but Weir Group, Xstrata, and Rio Tinto (RIO) have been hit the hardest. Meanwhile, Lloyds Group (LYG) is leading a short list of advancing issues.

08:15 am : S&P futures vs fair value: -22.70. Nasdaq futures vs fair value: -48.30. An unprecedented downgrade of U.S. debt has prompted a precipitous drop in stock futures, such that the cash market is expected to open with a loss of at least 2%. The news has also driven aggressive selling abroad, where many of the major bourses of Europe are down in excess of 1% and most of Asia's averages fell more than 2%. The global sell-off has spurred strong buying in precious metals. In turn, gold prices are up more than 3% to a new record high above $1700 per ounce, while silver is up about 4% to $39.74 per ounce. Silver is still shy of the multi-month high above $40 per ounce that it set last week, though. Want for safety has sent traders into Treasuries, too, despite the US debt downgrade. The action has taken the yield on the 2-year Note to a new record low closer to 0.24% and the yield on the benchmark 10-year Note back below 2.50%. The dollar has maintained a buying bid this morning; after easing off of its morning high, the greenback is clinging to a 0.2% gain against a collection of competing currencies. Outside of the downgrade headline, there isn't much news for traders to digest -- the economic calendar is empty and the pace of quarterly earnings announcements has begun to slow.

06:51 am : [BRIEFING.COM] S&P futures vs fair value: -27.90. Nasdaq futures vs fair value: -60.00.

06:51 am : Nikkei...9097.56...-202.30...-2.20%. Hang Seng...20490.57...-455.60...-2.20%.

06:51 am : FTSE...5148.98...-98.00...-1.90%. DAX...6056.24...-179.90...-2.90%.

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

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

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