TheStrategyLab.com Price Action Trading Support Forum

Forum for price action traders that want to learn WRB Analysis basic tutorial chapters 1, 2 and 3 prior to purchasing our advance trade methods. Hashtags: #wrbanalysis #wrbzone #wrbhiddengap #priceaction #trading
It is currently Thu Mar 28, 2024 12:26 pm

All times are UTC - 5 hours [ DST ]




Post new topic Reply to topic  [ 1 post ] 
Author Message
 Post subject: August 18th Thursday 2011 Emini TF ($TF_F) points +37.60
PostPosted: Thu Aug 18, 2011 3:14 pm 
Offline
Site Admin

Joined: Sat Jan 10, 2009 2:06 pm
Posts: 4335
Location: Canada
Image

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

Attachment:
081811-wrbtrader-PnL-Blotter-Profit-3760.png

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

Trade Performance for Today: +37.60 points or $3760.00 dollars in the Russell 2000 Emini TF ($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=975.

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

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

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 on Global Economy, European Concerns

Aug. 18 (Bloomberg) -- Bloomberg's Deborah Kostroun reports on the performance of the U.S. equity market today. U.S. stocks tumbled, sending the Dow Jones Industrial Average down more than 400 points for the fourth time this month, on concern the global economy is slowing and speculation that European banks lack enough capital.

Stocks Get Demolished

Attachment:
081811-Key-Price-Action-Markets.png

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

By Ken Sweet, contributing writer August 18, 2011: 4:40 PM ET

NEW YORK (CNNMoney) -- Wall Street got socked on Thursday as renewed concerns about the U.S. and global economies sent major indexes plunging and pushed gold to a new high and bond yields to a record low.

Stocks were hit with bad news on multiple fronts. Morgan Stanley put out a dismal forecast for global economic growth. A key reading on U.S. housing came in worse than expected. And a report showed a significant slowdown in the domestic manufacturing sector.

Investors rushed to move their money into safe U.S. government bonds -- and the yield on the benchmark 10-year Treasury briefly fell below 2%.

"We had a couple days to stabilize and breathe, but you forget that it's a war zone out there and there's just too much uncertainty about the economy," said Frank Davis, director of sales and trading at LEK Securities.

The Dow Jones industrial average (INDU) dropped 420 points, or 3.7%, to close at 10,991. The blue chips fell as much as 528 points.

The S&P 500 (SPX) lost 53 points, or 4.5%, to 1,141; and the Nasdaq Composite (COMP) lost 131 points, or 5.2%, to 2,380.

At the center of Thursday's sell-off were renewed macroeconomic fears about a possibly slowing global economy.

In a gloomy report from Morgan Stanley, the investment bank slashed its global growth outlook for 2011 and 2012, adding that the U.S. and Europe are "hovering dangerously close to a recession."

"The fact that Morgan Stanley has downgraded its global growth forecast really highlights the concerns and problems facing the global economy," said Michael Hewson, market analyst at CMC Markets in London. "It begs investors to question where future growth will come from."

* Trading slows after week of market mayhem

Morgan Stanley's dire commentary was combined with four disappointing U.S. economic reports out Thursday, with investors putting a great deal of weight on the Philadelphia Federal Reserve's regional manufacturing index.

The closely watched index dropped to a reading of minus 30.7 in July, which indicates severe contraction in economic activity during the prior month. The number was far worse than expected, with economists looking for a reading of plus 0.5.

It was the worst figure for the Philly Fed since March 2009 -- when the U.S. economy was still in recession.

"The Philly Fed data was the punch in the stomach that bent this market over," Davis said.

Investors moved into traditional safe havens of U.S.-backed bonds and into gold. The price on the 10-year Treasury jumped, pushing the yield to a record low of 1.99% from 2.16% late Wednesday.

David Levy, portfolio manager with Kenjol Capital Management, call it a "panic move" into U.S. Treasuries.

Gold futures for December delivery rose $28.20 to settle at $1,822 an ounce, a new closing high (not adjusted for inflation) for the precious metal.

The VIX (VIX) -- Wall Street's so-called "fear gauge" -- jumped 35% on Thursday to a reading of 42.7. Anything above 30 is considered high fear in the market.

In other economic data, the Labor Department reported that weekly jobless claims rose by a worse-than-expected 9,000 claims to 408,000 in the week ended Aug. 13.

The National Association of Realtors said existing home sales dropped by 3.5% in July, far worse than the 2% rise that the market was looking for.

To further complicate things, the government also reported that Americans paid more for consumer goods and services in July, as inflation rose more than expected over the month.

The consumer price index, increased 0.5% in the month -- led by a 4.7% jump in gas prices from month to month. Economists expected a 0.2% rise in July, according to a survey from Briefing.com.

On Wednesday, U.S. stocks ended mixed as investors weighed the latest corporate results against global economic and debt concerns.

* Euro bonds: Magic bullet for debt crisis?

World markets: European stocks plunged sharply. Britain's FTSE (FTSE) 100 fell 4.9%, the DAX (DAX) in Germany sank 6.5% and France's CAC (CAC) 40 tumbled 5.3%.

"I think we're seeing a bit of a delayed reaction to the Sarkozy and Merkel meeting earlier this week, as investors realize that policymakers are out of ideas," CMC Markets' Hewson said, noting that an unnamed bank tapped the European Central Bank's emergency liquidity fund for $500 million overnight.

Asian markets ended in the red. The Shanghai Composite fell 1.6%, the Hang Seng in Hong Kong dropped 1.3% and Japan's Nikkei shed 1.3%.

* Video - Bloodbath for tech stocks

Companies: Shares of Dow component Hewlett-Packard (HPQ, Fortune 500) dropped 8% after the company cut its full-year outlook and said it was looking to spin off its PC business. The company also said would purchase British software company Autonomy for $10.2 billion in cash.

The tech giant also reported its quarterly results, posting an adjusted profit of $1.10 a share versus the $1.09 that analysts had expected.

Shares of McGraw Hill (MHP, Fortune 500) dropped 6% after a New York Times report said the Justice Department was investigating rating agency Standard & Poor's, a subsidiary, for allegedly overrating mortgage-backed securities. The mortgage securities meltdown led to the 2008 financial crisis.

The stock price for Sears Holdings (SHLD, Fortune 500) fell more than 8% after the retailer reported a disappointing quarterly loss of $1.13 per share.

Currencies and commodities: The greenback gained strength against the euro, Japanese yen and the British pound.

Oil for September delivery fell $5.20, or 6%, to $82.38 a barrel.

Image

Market Update

4:30 pm : The major market averages dropped dramatically again today. The sell-off stemmed from heightening fears related to the macro environment.

Stocks were under pressure from the start of trade. Initial weakness was owed to the aggressive selling displayed abroad. Asia's averages all fell more than 1% overnight, but things were even more volatile in Europe, where Germany's DAX dropped 6.0%, France's CAC fell 5.4%, and Britain's FTSE finished with a 4.6% loss.

Europe's dramatic drop was driven largely by concerns about the health of the region's financial firms in the presence of tighter liquidity and ongoing macro threats. Amid such threats, an unnamed institution borrowed some $500 million from the European Central Bank. Domestic banks were implicated by that action, despite recent efforts by executives of Bank of America (BAC 7.01, -0.45), JPMorgan Chase (JPM 35.19, -1.38), and their ilk to assuage worries about their capital levels and general operational health. As a group, financials collectively fell 5.0%.

Energy stocks, industrials, and materials had even poorer performances. The energy sector (-5.7%) was hurt most by a near 6% drop in oil to $82.38 per barrel; oil's slide reflected the market's concern about economic growth. Similar concerns weighed on the industrial sector (-5.7%) and materials sector (-5.8%), given their sensitivity to the broader business cycle.

Utilities did the best job of limiting losses. Their relatively tame 1.3% loss is owed to an increased preference among participants for companies with stable businesses, healthy balance sheets, and relatively rich dividend yields.

Data was generally underwhelming and, in one case, downright dour. Participants first digested news that the latest initial jobless claims tally increased to 408,000, which narrowly exceeds the 400,000 claims that had been broadly expected, after the first dip below 400,000 since April during the prior week.

Consumer prices for July showed a monthly increase of 0.5%, which is a sharper rise than the 0.2% increase that had been expected. Core consumer prices increased by 0.2%, as had been anticipated, however.

Sentiment among participants soured drastically with the release of the August Philadelphia Fed Survey, which dropped to -30.7. It had been expected to trend down to only 1.0 from 3.2 in the prior month.

Existing home sales for July fell to an annualized rate of 4.67 million, which is less than the rate of 4.87 million units that had been broadly expected. Existing home sales for the prior month were revised upward to reflect an annualized clip of 4.84 million.

Leading Indicators for July were the lone bright spot, but rarely do they have much of an impact on broad market trade, especially in the context of such widespread weakness. Nonetheless, they increased by 0.5%, which exceeds the 0.2% increase that had been anticipated.

While many investors and traders have been concerned about macro conditions for some time, underlying sentiment this session suggested that participants are turning more fearful. To little surprise, then, the Volatility Index, which is often euphemistically referred to as the Fear Gauge, surged more than 35% to trade back above 40.

Traders favored the safety of gold and Treasuries amid the action. That drove gold up 1.6% to $1822.00 per ounce after it set a new all-time high of almost $1830 per ounce, which was actually cleared after the close of pit trade. Among Treasuries, the benchmark 10-year Note also settled off of its high, but along the way its yield dropped to a record low just beneath 2.0%.

Share volume on the NYSE failed to crack 1 billion yesterday, but this session's dramatic swing lower pulled in droves of participants from the sidelines. In turn, about 1.6 billion shares were traded on the Big Board. About 97% of that was related to declining volume.

Advancing Sectors: (None)
Declining Sectors: Utilities -1.3%, Consumer Staples -1.8%, Telecom -2.5%, Health Care -3.3%, Consumer Discretionary -5.0%, Financials -5.0%, Tech -5.3%, Industrials -5.7%, Energy -5.7%, Materials -5.8%DJ30 -419.63 NASDAQ -131.05 NQ100 -5.0% R2K -5.9% SP400 -5.5% SP500 -53.23 NASDAQ Adv/Vol/Dec 240/2.77 bln/2400 NYSE Adv/Vol/Dec 178/1.62 bln/2916

3:30 pm : Concerns about capital levels at euro-zone banks dominated the markets today, spurring a flight to safety in the precious metals, while pressuring other commodities like crude oil and copper. Dec gold settled higher by 1.6% to $1822.00 per ounce. Futures traded to a new all-time high, at $1829.70, shortly after the open of equities and spent the remainder of the day chopping around just below that high. Sept silver, which finished up 0.9% to $40.69 per ounce, traded to its best levels in ten sessions, at $40.95, before pulling back and trading sideways for the remainder of the session.

Those concerns pressured Sept crude oil, which settled lower by 5.9% to $82.38 per barrel. Futures pushed lower throughout the session to notch lows at $81.66, its worst levels in a week, heading into the close. Sept natural gas settled lower by 1% to $3.89 per MMBtu, weighed on by this morning's inventory data which showed a slightly larger build than was expected. DJ30 -464.92 NASDAQ -138.02 SP500 -58.89 NASDAQ Adv/Vol/Dec 206/2.6 bln/2405 NYSE Adv/Vol/Dec 172/1.1 bln/2944

3:00 pm : Stocks continue to crawl along their lows. That has left many market watchers on edge as they wonder whether stocks will break down to a new low in the final hour of trade.

Although this session's loss is shaping up to be very severe, it still isn't as dramatic as the 6.7% drop that was endured last week. That particular retreat was the worst single-session slide since December 2008.

As was the case that day, though, the Volatility Index, which is often euphemistically referred to as the Fear Gauge surged above 40. The VIX is currently up 35% to 42.6. DJ30 -483.34 NASDAQ -138.44 SP500 -58.28 NASDAQ Adv/Vol/Dec 230/1.88 bln/2373 NYSE Adv/Vol/Dec 168/932 mln/2920

2:30 pm : Stocks recently encroached upon session lows, but those levels have held. Stocks haven't exactly bounced off of that mark, though. Instead, they continue to crawl along in a narrow range only marginally above their intraday lows.DJ30 -410.92 NASDAQ -119.50 SP500 -49.96 NASDAQ Adv/Vol/Dec 225/1.74 bln/2365 NYSE Adv/Vol/Dec 149/850 mln/2922

2:00 pm : The market's afternoon drift has left stocks to trade near the lows they set earlier this morning.

With stocks under such sharp, steady pressure, Treasuries have started to tick higher again. The benchmark 10-year Note remains off of its session high, however. At its best level of the day, the yield on the 10-year Note actually slipped below 2.0% to set a new record low.

The dollar has also moved higher in recent action. Its strength over competing currencies has helped the Dollar Index put together a 0.6% gain. Just yesterday the Dollar Index was at a three-week low. DJ30 -439.99 NASDAQ -123.57 SP500 -55.42 NASDAQ Adv/Vol/Dec 210/1.60 bln/2371 NYSE Adv/Vol/Dec 138/775 mln/2930

1:30 pm : Stocks have drifted down to afternoon lows. Weakness remains deep and widespread.

Although almost the entire market is in the red, some stocks are suffering more than others. Among those that have managed to limit losses, telecom stocks are down 2.6%, consumer staples stocks are down 2.3%, and utilities stocks are down 1.9%. Their ability to avoid the 4% drop suffered by the broad market comes as many investors move cash into stable businesses with healthy balance sheets and relatively rich dividend yields. DJ30 -433.25 NASDAQ -118.00 SP500 -52.13 NASDAQ Adv/Vol/Dec 212/1.48 bln/2349 NYSE Adv/Vol/Dec 154/718 mln/2900

1:00 pm : Sharp losses abroad and some ugly data have aroused an aggressive selling effort that has left the market to contend with a 4% loss.

Europe's bourses dropped precipitously this morning as traders there reacted to news that an unnamed financial institution borrowed some $500 million from the European Central Bank, likely because of tighter liquidity conditions in the region. Of course, the news followed an underwhelming outcome to a meeting between officials from France and Germany earlier this week. Pronounced weakness in Europe -- Germany's DAX ended the day down 6.0%, France's CAC was cut by 5.4%, and Britain's FTSE fell 4.6% -- led to a negative posture for stocks this morning.

Weakness was only exacerbated by data. Ahead of the open, weekly initial jobless claims increased slightly more than expected to 408,000, overall CPI increased at a sharper than expected clip of 0.5% for July, but core CPI for July increased by an in-line 0.2%. Once the session was underway, stocks were knocked another leg lower by news that the Philly Fed Survey unexpectedly sank to -30.7. Existing home sales also slowed more than expected to an annualized rate of 4.67 million. Leading indicators provided a positive surprise with a 0.5% increase, however.

Sentiment has been so negative this session that nearly 99% of the names in the S&P 500 are in negative territory. Most of the attention today has been on the weakness of the financial sector, but industrials are actually in the worst shape overall. As a group, industrials are down 5.5% while financials are collectively down 5.2%.

Pessimism has helped gold extend its climb. The yellow metal is currently up 1.6% to $1822 per ounce, but it had been near $1830 per ounce for a new record high. Gold's gain has helped a few gold mining stocks attract support, but many have been imbued by broad market weakness.

Hewlett-Packard (HPQ 31.13, -0.26) had surged out of the red to a gain of about 8% when it was reported that the company will spin off its personal computer business. However, amid the negativity surrounding today's trade, participants were quick to sell the pop.

Losses today have the stock market facing its fourth straight weekly loss. During that time the S&P 500 has shed about 15% of its value. DJ30 -102.22 NASDAQ -110.03 SP500 -48.58 NASDAQ Adv/Vol/Dec 218/137 bln/2340 NYSE Adv/Vol/Dec 163/663 mln/2890

12:30 pm : Despite the prevalence of such sharp selling pressure, shares of Hewlett-Packard (HPQ 32.12, +0.73) have swung out of negative territory to a gain of about 2% in recent trade. The stock's spike comes in response to reports that the company plans to spinoff its personal computer business. Reports also suggest that the company is close to acquiring the London-traded outfit Autonomy. Every other member of the Dow remains in the red.DJ30 -382.62 NASDAQ -102.49 SP500 -45.78 NASDAQ Adv/Vol/Dec 200/1.24 bln/2345 NYSE Adv/Vol/Dec 156/595 mln/2900

12:00 pm : Stocks are slowly working their way up from morning lows. Losses remain deep, though, as the major equity averages continue to contend with widespread weakness.

With today's retreat, the S&P 500 is on track for a weekly loss of 2.5%. That would stand as the stock market's fourth straight weekly decline. While that may sound like an overextended stretch of selling, the stock market actually endured six straight weekly losses from May to June. One difference, though, is that those six weeks of declines added up to a cumulative loss of almost 7%, whereas the latest string of weekly losses has the stock market down almost 15%. DJ30 -392.00 NASDAQ -101.68 SP500 -44.52 NASDAQ Adv/Vol/Dec 190/1.12 bln/2350 NYSE Adv/Vol/Dec 105/540 mln/2910

11:30 am : The want for safety continues to drive gold prices higher. In fact, the yellow metal was last quoted with a 1.8% gain at $1825.50 per ounce. It approached a new record high near $1830 per ounce earlier. In the backdrop, the World Gold Council reported that gold demand actually declined during the second quarter, but is still expected to increase for the full year. Also, Venezuela President Chavez has made it known that he wants to nationalize the country's gold industry.DJ30 -417.58 NASDAQ -107.72 SP500 -46.38 NASDAQ Adv/Vol/Dec 185/965 mln/2330 NYSE Adv/Vol/Dec 96/465 mln/2912

11:00 am : Stocks have made a minor move up from their morning lows, but amid the widespread weakness many participants are keeping an eye on the stock market's recent low. For the S&P 500, that low was set 1101 last week.

Share volume on the NYSE during the prior session failed to break above 1 billion, but this morning's havoc has pulled participants off of the sidelines. It is obvious that their interest has been to sell. Their effort has been so concerted that declining share volume outunumbers advancing share volume on the Big Board by more than 30-to-1. DJ30 -450.13 NASDAQ -112.66 SP500 -49.65 NASDAQ Adv/Vol/Dec 164/805 mln/2326 NYSE Adv/Vol/Dec 89/385 mln/2902

10:30 am : Commodities remain weak across the board, excluding gold, silver and aluminum, which are in positive territory. The dollar index is near its recently hit session high of 74.39 and equity markets are just above session lows.

Natural gas futures is in the red, but by far the best performing energy commodity. Ahead of weekly inventory data, natural gas was near its session low of $3.89/MMBtu. Following the data, which showed a build of 50 bcf versus consensus that called for a build of 48 bcf, natural gas fell to new session lows of $3.86/MMBtu; now at $3.87, down 1.7%.

Crude oil has trended lower all morning and fell as far as $82.54/barrel. In current activity, crude is just above its session low and is down 5.0% at $83.22/barrel.

Gold futures hit new all-time highs of $1829.40/oz. about 30 minutes ago after showing gains all morning. Silver has been more choppy, but has been in positive territory this morning. Silver is showing just modest gains, currently up 0.5% at $40.57, while gold is 1.7% higher at $1825.10/oz.DJ30 -437.79 NASDAQ -110.71 SP500 -48.55 NASDAQ Adv/Vol/Dec 157/730 mln/2316 NYSE Adv/Vol/Dec 85/354 mln/2891

10:05 am : Stocks have dropped another leg lower in response to an ugly Philadelphia Fed Survey. Now, nearly 99% of the names in the S&P 500 are in the red. Treasuries have responded by spiking, such that the yield on the benchmark 10-year Note is now at a record low of almost 2.0%.

The Philadelphia Fed Survey for August dropped to -30.7, which is far worse than the reading of 1.0 that had been expected, on average, among economists polled by Briefing.com. The latest Survey reading marks a precipitous drop from the 3.2 that was posted in the prior month.

Existing home sales numbers for July were also just posted. They hit an annualized rate of 4.67 million, which is less than the pace of 4.87 million units that had been anticipated. Existing home sales for the prior month were revised upward to reflect an annualized clip of 4.84 million.

Leading Indicators showed improvement, however. They increased by 0.5% during July. The consensus had called for a 0.2% increase. DJ30 -445.36 NASDAQ -121.28 SP500 -52.02 NASDAQ Adv/Vol/Dec 144/278 mln/2264 NYSE Adv/Vol/Dec 75/140 mln/2888

09:45 am : Stocks are getting dumped. The aggressiveness of the sell-off has left the S&P 500 down more than 3%.

As is currently the case in Europe, financials are in the worst shape. The sector has slumped to a loss of more than 4% as shares of diversified financial services and bank stocks like Bank of America (BAC 6.83, -0.63) and Citigroup (C 27.16, -2.69) slump.

Just as they did in the prior session, defensive-oriented stocks are finding the most support. That has helped consumer staples, telecom, and utilities limit their losses to little more than 1%. DJ30 -337.13 NASDAQ -100.59 SP500 -40.41 NASDAQ Adv/Dec 136/2188 NYSE Adv/Dec 71/2834

09:15 am : S&P futures vs fair value: -33.30. Nasdaq futures vs fair value: -60.30. A sell-off among the major global averages has weighed heavily on premarket trade, such that the stock market is expected to open with a loss in excess of 2%. Data hasn't done anything to sway sentiment -- initial jobless claims moved back above 400,000 and overall CPI increased at a sharper-than-expected clip during July -- and meaningful corporate announcements have been lacking. The latest Philly Fed Survey, Leading Indicators, and existin home sales numbers are due at 10:00 AM ET, however. The negativity has taken told prices up 1.5% to a new record above $1820 per ounce, but oil prices have dropped 3.5% to $84.50 per barrel. Want for safety has also favored Treasuries and the US dollar.

09:05 am : S&P futures vs fair value: -33.30. Nasdaq futures vs fair value: -60.30. Europe's bourses are being slammed by sellers, but bank stocks have been hit especially hard. The sell-off comes as concerns related to the health of the region's fiscal condition and financial system return to focus after they had cooled in response to hopes that recent meetings between officials from Germany and France would produce solutions to stabilizing the tenuous conditions of the eurozone contingent. Those outcome of those meetings, which were delivered earlier this week, generally underwhelmed. Aggressive selling in Germany has caused the DAX to drop 3.9%. Fresenius SE is the only name in the 30-member bourse that has managed to muster any kind of a gain. Commerzbank is at the opposite end of the spectrum; it is currently contending with a near 6% loss. In France, the CAC has fallen to a 3.1% loss as all 40 of its components reside in the red. Societe Generale is in the worst shape; it is down 8% at the moment. Britain's FTSE 100 is presently off by 2.8%. Associated British Foods and Randgold Resources are the only two stocks in the entire collection that are currently in positive territory. Barclays (BCS), Lloyds Group (LYG), and Royal Bank of Scotland (RBS) are weighing most heavily on action -- they are all down in excess of 6%. In a small dose of data, United Kingdom retail sales increased by 0.2% during July, but that is actually a softer pace than the 0.7% increase registered for the prior month.

Overnight action in Asia was decidedly weak. Japan's Nikkei fell to a 1.3% loss. Fuji Electric, Advantest, Mazda Motor, and Okuma Corp were among the worst performers. Pioneer, Fast Retailing, and Chubu Electric managed to stage strong gains, though. Analysts and economists at Goldman Sachs trimmed their 2012 GDP forecast for Japan to 2.5% from 2.7%. Hong Kong's Hang Seng also sank to a 1.3% loss. Weakness was also widespread there. Sharp losses among real estate stocks undercut mainland China's Shanghai Composite, which closed with a 1.6% loss. China Mobile (CHL) announced its latest financial results after the close; they featured stronger-than-expected earnings on in-line revenue.

08:35 am : S&P futures vs fair value: -30.30. Nasdaq futures vs fair value: -56.30. Stock futures have fallen another leg lower in the wake of the latest dose of data. Initial jobless claims for the week ended August 13 totaled 408,000, which narrowly exceeds the 400,000 claims that had been expected, on average, among economists polled by Briefing.com. The latest tally also marks an uptick in initial claims from the upwardly revised 399,000 claims that were posted for the prior week. Last week's initial claims count was actually the first time since April that claims fell below 400,000. Separately, consumer prices increased by 0.5% in July. The consensus among economists surveyed by Briefing.com had called for a 0.2% increase. However, core consumer prices increased by a relatively tame 0.2%, as had been broadly anticipated.

08:05 am : S&P futures vs fair value: -24.50. Nasdaq futures vs fair value: -48.30. Aggressive selling abroad has weighed heavily on premarket sentiment, such that the cash market is currently expected to open with a loss on the order of 2%. Weakness in Europe is even more pronounced than what was experienced in Asia overnight, leaving Germany's DAX to drop nearly 4% and both France's CAC and Britain's FTSE to fall almost 3%. Bank stocks in Europe are especially weak. The macro picture has been further tainted by another downward revision to the global GDP forecast, this time by analysts and economists at Morgan Stanley. Pessimism has stoked strong buying interest in gold. As such, the precious metal was last quoted with a 1.0% gain at $1812 per ounce; it set a new record high near $1820 per ounce earlier this morning. Treasuries are trading sharply higher, too. In fact, the yield on the benchmark 10-year Note is down to a little less than 3.10%, but that is still a few basis points above the record low that it set last week. There are several items on today's economic calendar that could act as potential catalysts for trade. The first offering features weekly jobless claims data and monthly CPI numbers are due at 8:30 AM ET. That is followed by monthly existing home sales numbers, the latest Philadelphia Fed Survey, and Leading Indicators at 10:00 AM ET.

06:55 am : [BRIEFING.COM] S&P futures vs fair value: -26.90. Nasdaq futures vs fair value: -53.00.

06:55 am : Nikkei...8943.76...-113.50...-1.30%. Hang Seng...20016.27...-272.80...-1.30%.

06:55 am : FTSE...5219.09...-112.50...-2.10%. DAX...5736.84...-212.10...-3.60%.

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
Go Back To TheStrategyLab.com Homepage


Top
 Profile  
 
Display posts from previous:  Sort by  
Post new topic Reply to topic  [ 1 post ] 

All times are UTC - 5 hours [ DST ]


Who is online

Users browsing this forum: No registered users and 3 guests


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot post attachments in this forum

Search for:
Jump to:  
cron
Powered by phpBB © 2000, 2002, 2005, 2007 phpBB Group
Translated by Xaphos © 2007, 2008, 2009 phpBB.fr