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 Post subject: July 10th Tuesday 2012 Emini TF ($TF_F) points +3.90
PostPosted: Tue Jul 10, 2012 10:47 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 performance verification

Price Action Trade Performance for Today: +3.90 points or $390 dollars in the Russell 2000 Emini TF ($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. You can read today's #FuturesTrades trading chat room logs for details (e.g. time, price, contract size) about each one of my trades from entry to exit along with price action commentary as the trade traversed in comparison to what's shown in the above image...all archived @ http://www.thestrategylab.com/ftchat/forum/viewtopic.php?f=106&t=1269.

To join our free chat room...log-in 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 price action 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=119&t=718.

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 price action 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=163&t=1526

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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.

Stocks End Sharply Lower

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

NEW YORK (CNNMoney) -- U.S. stocks closed sharply lower on Tuesday as worries about corporate earnings falling short of expectations unnerved investors.

Energy, utilities and tech stocks added pressure to already-down markets after Applied Materials (AMAT, Fortune 500) and Advanced Micro Devices (AMD, Fortune 500) both warned their revenue would fall short of forecasts.

Disappointing expectations from Cummins (CMI, Fortune 500) also dragged on markets, as the engine maker's stock fell 9% after it slashed its sales forecast for the year.

Alcoa (AA, Fortune 500) was the first Dow component to report this week. The aluminum producer reported results after the close Monday that were roughly in line with analysts' expectations, but the stock still slid as investors had hoped for more.

Results are due later in the week from JPMorgan Chase (JPM, Fortune 500) and Wells Fargo (WFC, Fortune 500).

Overall, analysts are expecting underwhelming corporate results, with earnings dropping off compared to the first quarter. But some analysts say that with the bar set so low, stocks may benefit from companies beating expectations.

"Even though the expectations for earnings are pretty dour, the next couple of weeks should be good for markets," said Jack Ablin, chief investment officer at Harris Private Bank. "In a market that really is a manifestation of reality beating anticipation, it's great to have very low expectations."

The Dow Jones industrial average (INDU) slid 83 points, or 0.7%, the S&P 500 (SPX) fell 11 points, or 0.8%, and the Nasdaq (COMP) shed 29 points, or 1%.

Analysts say that trading volume is also light, which can add to market volatility.

"There's not a lot of money moving in and out of the market," said Douglas Cote, chief market strategist at ING Investment Management. "There's simply a lot of churning."

Stocks had opened with solid gains after eurozone finance ministers agreed late Monday to offer Spain an initial €30 billion by the end of the month to help bail out its troubled banks.

* Europe's stability mechanism remains elusive

"The agreement shows that the European leaders are committed to doing whatever is necessary to make sure there won't be another euro crisis," said Cote. "The market just loves that kind of certainty."

But worries remain, said Bob Phillips, co-founder of investment advisory firm Spectrum Management Group in Indianapolis.

"The fundamental issue is that Spain's spending more a year than they're taking in," Phillips said. "They can print money and buy time, but they keep spending money that can't be paid for."

Yields for the 10-year Spanish bond slid to 6.83% following the eurozone announcement. Yields have been bouncing above the 7% mark, which heightens bailout worries.

U.S. stocks ended lower Monday, as investors remained wary ahead of quarterly corporate results.

World markets: European stocks closed up for the day. Britain's FTSE 100 (UKX) added 0.7%, the DAX (DAX) in Germany gained 0.8% and France's CAC 40 (CAC40) rose 0.6%.

Meanwhile, China reported worsening year-over-year import growth early Tuesday. June growth came in at 6.3%, half of May's 12.7%, pointing to weak demand.

Asian markets closed lower. The Shanghai Composite (SHCOMP) fell 0.3%, the Hang Seng (HSI) in Hong Kong shed 0.2% and Japan's Nikkei (N225) lost 0.4%.

* N.Y. Fed asked Barclays about Libor in '08

Companies: Shares of Barclays (BCS) were higher Tuesday, after the British bank reached a deal with outgoing CEO Bob Diamond, who quit as the bank faces criticism for its role in the Libor scandal.

Although Diamond continues to receive salary and some benefits for a year or so, he declined his deferred bonus worth up to £20 million ($31 million).

Shares of Advanced Micro Devices plummeted after the company warned late Monday that it expects second-quarter revenue will drop 11% from the previous quarter because of weaker sales in China and Europe.

Applied Materials cut its outlook early Tuesday, revising third-quarter and full-year earnings and sales forecasts, citing a slowdown in demand for semiconductor manufacturing equipment.

Troubled BlackBerry-maker Research In Motion (RIMM) held its annual shareholder meeting Tuesday. Late last month, the company announced 5,000 layoffs, a giant quarterly loss and another delay to its next BlackBerry operating system. Shares were down Tuesday.

Intel (INTC, Fortune 500) has agreed to acquire a 15% stake in Dutch semiconductor equipment maker ASML Holdings (ASML) for up to $4.1 billion. Intel said the companies will work together to develop technologies that will cut costs and improve productivity.

Economy: Last year, 18.6% of youth across 34 countries were neither employed nor in school or training programs, according to the Organization for Economic Cooperation and Development's Employment Outlook 2012 report released on Tuesday. In the United States, that percentage was 14.8%.

A lack of jobs for workers ages 15 to 24 could create a "scarring effect" on their long-term career paths and future earnings prospects, the OECD said.

The OECD also predicts the unemployment rate across the United States, Europe, Japan and Mexico will stay above 7.7% by the end of 2013 -- barely better than its current 7.9%.

* Goldman Sachs: Stock picking isn't paying off

Currencies and commodities: The dollar rose against the euro and British pound but fell versus the Japanese yen.

Oil for August delivery settled down $2.08 to $83.91 a barrel.

Gold futures for August delivery lost $9.30 to $1,579.80 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury fell, pushing the yield up to 1.52% from 1.51% late Monday.

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Market Update

4:10 pm : Markets closed lower for a fourth consecutive session as a drop of 1.0% saw the Nasdaq pace the decline. Stocks shrugged off the disappointing import/export data from China and opened with solid gains after EU finance ministers announced a plan to expedite EUR30 billion for the recapitalization of Spanish banks. The major averages gave up those gains in the first hour of trading, and then dropped precipitously after engine maker Cummins lowered its full-year 2012 revenue outlook.

Shares of Cummins (CMI 86.91, -8.53) fell sharply after the company announced it expects its full-year revenue outlook for 2012 to match 2011 despite prior guidance suggesting an increase of 10%. The company also announced it anticipates second quarter revenues will come in at around $4.45 billion, well short of the Capital IQ Consensus Estimate which is calling for $5.08 billion. Not to go unnoticed was the company increasing its quarterly dividend 25% to $0.50 per share. Today’s weakness dropped the stock to levels not seen since December. Caterpillar (CAT 80.27, -2.87) moved lower in reaction to the announcement.

Alcoa (AA 8.40) slid 4.1% despite announcing in-line earnings per share results, and a revenue beat that was accompanied by the company reaffirming its aluminum outlook for the remainder of 2012.

Applied Materials (AMAT 10.71, -0.30) shed 2.7% after the company lowered its fiscal year 2012 sales guidance, and announced it expects both third quarter earnings per share and revenues to come in at the lower end of the their expected ranges.

Patriot Coal (PCXCQ.PK 0.21, -0.10) plunged more than 50% after the company confirmed plans to file for Chapter 11 reorganization. Those who follow the stock should note the ticker change from ‘PCX’ to ‘PCXCQ.PK.’ Peabody Energy (BTU 22.44, -0.87) and Arch Coal (ACI 6.11, -0.56) are names that have some exposure to the company.

Coca-Cola (KO 77.98, +0.00) finished flat after the company announced a two-for-one stock split which will increase its shares outstanding to 11.2 billion from 5.6 billion.

Miners were under pressure as the underlying metals saw heavy selling. Gold lost more than $20 at $1568 per ounce while the selling pressure in silver has dropped it $0.65 to near $26.75 per ounce. Agnico Eagle Mines (AEM 38.74, -1.67) was one of the worst performing gold miners while pure play silver miner Silver Wheaton (SLW 26.12, -1.19) slipped 4.4% on the session. Both underperformed the broad-based Market Vectors Gold Miners ETF (GDX 42.87, -1.38).

Treasuries ended on session highs as an afternoon selloff in equities sparked a safety bid. The long bond ended the day up close to half a point as its yield slid 2.6 bps to 2.594%. A less aggressive bid in the 10-yr note lowered its yield by 1.5 bps to 1.498%. Flattening along the yield curve caused the 2-10-yr spread to narrow to 122 bps.

Data picks up tomorrow as the weekly MBA Mortgage Index, the trade balance, wholesale inventories, and the FOMC minutes are all released. Treasury will hold a $21 bln 10-yr note reopening. DJ30 -83.17 NASDAQ -29.44 SP500 -10.99 NASDAQ Adv/Vol/Dec 817/1.65 bln/1653 NYSE Adv/Vol/Dec 1024/727.3 mln/2010

3:30 pm : Crude oil struggled in the red for its entire floor session as the dollar advanced. The energy component set a session high of $85.79 per barrel in early morning action but quickly pulled-back and fell lower. The decline accelerated in afternoon pit trade as crude plummeted to a session low of $83.68 per barrel and settled with a 2.3% loss at $83.92 per barrel.

Natural gas also fell deeper into negative territory as its pit session progressed. Despite efforts to consolidate losses and brushing a session high of $2.83 per MMBtu in late morning action, nat gas slid further and closed with a 4.9% loss at $2.74 per MMBtu.

Gold rose to a pit session high of $1602.00 per ounce in early morning action on EU finance ministers' announcement that Spain would be given EUR 30 bln by the end of July to help recapitalize banks. However, the enthusiasm faded and sellers stepped in as the dollar regained strength. The yellow metal erased all of its earlier gains and slid to a session low of $1578.70 per ounce before settling floor trade with a 0.6% loss at $1579.40 per ounce.

Silver briefly broke into positive territory and brushed a pit session high of $27.53 per ounce before trending lower for the remainder of the session. It dropped as low as $26.82 per ounce before closing the session at $26.89 per ounce, or 2.0% lower.DJ30 -116.09 NASDAQ -38.69 SP500 -15.00 NASDAQ Adv/Vol/Dec 737/1358.4 mln/1722 NYSE Adv/Vol/Dec 880/485 mln/2137

2:55 pm : Stocks hold near session lows with the Nasdaq down 1.1% while the Dow and S&P 500 see respective losses of 0.8% and 0.9%.

Miners have come under recent selling pressure as the underlying metals sold off as equities dropped to session lows. Gold is now down more than $20 at $1566 per ounce while the selling pressure in silver has dropped it $0.65 to near $26.75 per ounce. Agnico Eagle Mines (AEM 38.67, -1.74) is one of the worst performing gold miners while pure play silver miner Silver Wheaton (SLW 26.10, -1.21) is down 4.4% on the session. Both are underperforming the broad-based Market Vectors Gold Miners ETF (GDX 43.00, -1.25). which is off 2.8%. DJ30 -104.52 NASDAQ -35.10 SP500 -13.06 NASDAQ Adv/Vol/Dec 782/1.19 bln/1669 NYSE Adv/Vol/Dec 931/423.7 mln/2110

2:30 pm : The major averages have deteriorated in recent minutes as selling has dropped them to session lows. A loss of 0.9% has the Nasdaq pacing the decline while both the Dow and S&P 500 see slight outperformance.

Shares of Cummins (CMI 87.89, -7.55) are down sharply after the company lowered its full-year revenue outlook for 2012 to match 2011 after prior guidance suggested an increase of 10%. The company also announced it expects second quarter revenues to come in at around $4.45 billion despite the Capital IQ Consensus Estimate calling for $5.08 billion. Not to go unnoticed was the company increasing its quarterly dividend 25% to $0.50 per share. Meanwhile, today’s weakness has dropped the stock to levels not seen since December. Caterpillar (CAT 79.87, -3.27) is piggybacking the move lower.DJ30 -91.23 NASDAQ -27.60 SP500 -11.17 NASDAQ Adv/Vol/Dec 819/1.09 bln/1622 NYSE Adv/Vol/Dec 1006/380.7 mln/2007

2:00 pm : All the major averages are in the red following midday tumble to new lows. No broad market headlines seem to be driving this leg lower. Worth noting that large cap engine manufacturer Cummins (CMI 90.42, -5.04) cut guidance intraday and is weighing on heavyweight machinery peers.DJ30 -33.30 NASDAQ -17.46 SP500 -6.21 NASDAQ Adv/Vol/Dec 903/991 mln/1498 NYSE Adv/Vol/Dec 1219/341 mln/1804

1:30 pm : Treasuries have seen little reaction to this afternoon’s $32 billion 3-yr note auction. The auction drew 0.366% and saw results that were mostly in-line with expectations as dealers gobbled up 59% of the offering. Maturities across the complex hold near their respective flat lines with all yields within one basis point of yesterday’s close. The quiet session has the 10-yr yield holding at 1.515%. Meanwhile, little change along the yield curve has the 2-10-yr spread holding at 124.5 basis points.DJ30 -0.75 NASDAQ -14.26 SP500 -3.55 NASDAQ Adv/Vol/Dec 962/895.7 mln/1426 NYSE Adv/Vol/Dec 1300/303.1 mln/1678

1:00 pm : Stocks opened with solid gains, but slipped into negative territory as the dollar climbed to session highs. Markets were able to shrug off the cooler than expected import/export data out of China after EU finance ministers announced a plan to expedite EUR30 billion to recapitalize Spanish banks. However, the early excitement was short-lived with markets sliding into negative territory after the first hour of trading. Currently, the major averages are mixed with the Dow up 0.2% while the Nasdaq is down 0.3%.

Shares of Alcoa (AA 8.48, -0.28) are off 3.2% despite the company announcing in-line earnings per share results, and a revenue beat that was accompanied by the company reaffirming its aluminum outlook for the remainder of 2012.

Applied Materials (AMAT 10.83, -0.18) is down 1.6% after the company lowered its fiscal year 2012 sales guidance, and announced it expects both third quarter earnings per share and revenues to come in at the lower end of the their expected ranges.

Patriot Coal (PCXCQ.PK 0.29, -0.02) is lower by more than 50% after the company confirmed plans to file for Chapter 11 reorganization. Those who follow the stock should note the ticker change from ‘PCX’ to ‘PCXCQ.PK.’ Peabody Energy (BTU 23.01, -0.30) and Arch Coal (ACI 6.34, -0.33) are names that have some exposure to the company.

Coca-Cola (KO 78.22, +0.24) is up 0.3% after the company announced a two-for-one stock split which will increase its shares outstanding to 11.2 billion from 5.6 billion.

A quiet session in the Treasury complex has maturities holding flat with the 10-yr yield stuck near 1.515%. Treasury will auction $32 billion 3-yr notes at 1 pm ET. DJ30 +17.03 NASDAQ -10.35 SP500 -2.02 NASDAQ Adv/Vol/Dec 1054/828.2 mln/1317 NYSE Adv/Vol/Dec 1444/279.5 mln/1532

12:30 pm : The major averages are mixed as the tech-heavy Nasdaq trades down 0.4% while the Dow holds a 0.1% gain.

Coca-Cola (KO 78.21, +0.23) is up 0.3% after the company announced a two-for-one stock split which will increase its shares outstanding to 11.2 billion from 5.6 billion. A record date of July 27, 2012 is in effect with new shares likely to be dispersed on August 10, 2012. The announcement comes as the stock trades at levels not seen since September 1998.DJ30 +11.17 NASDAQ -11.00 SP500 -2.30 NASDAQ Adv/Vol/Dec 970/752.2 mln/1385 NYSE Adv/Vol/Dec 1395/256.2 mln/1577

12:00 pm : The Dow remains barely in positive territory while the S&P 500 is marginally lower and the Nasdaq is down modestly.

Strength is the dollar has resulted in the energy and materials sectors lagging the broader market, down 0.8% and 0.5%, respectively.

The technology sector is also a laggard this session. Semiconductor companies Advanced Micro Devices (AMD 5.05 -0.57) and Applied Materials (AMAT 10.84 -0.17) are both down after lowering guidance. Research In Motion (RIMM 7.31 -0.36) is trading lower as the company addresses its issues at its Annual Meeting.DJ30 +22.07 NASDAQ -10.24 SP500 -1.37 NASDAQ Adv/Vol/Dec 987/696 mln/1339 NYSE Adv/Vol/Dec 1416/237 mln/1532

11:30 am : An early look at earnings suggests that it will be a weak quarter for companies, as expected. Alcoa (AA 8.52, -0.24) officially kicked off earnings season last night with what can be called an 'upward' surprise. That has to be taken in context as an upward surprise this quarter constitutes in-line earnings per share results, and a revenue beat that was accompanied by the company reaffirming its aluminum outlook for the remainder of 2012. However, seven of the remaining eight companies on the Briefing.com calendar have seen bottom line misses. Schulman (SHLM 1.55, +0.00) is the only company to outperform on the bottom line. Top line performance has been a little better as five of the nine companies beat expectations, but again, this is against low barriers and year/year performance has been underwhelming. Looking ahead to this evening, the market will anticipate results from tech plays Adtran (ADTN 27.79, +0.04) and OCZ Technologies (OCZ 5.80, -0.19). But the focus remains on J.P. Morgan (JPM 34.10, +0.14) and Wells Fargo (WFC 33.19, -0.07) due out Friday morning. DJ30 +7.50 NASDAQ -12.75 SP500 -2.68 NASDAQ Adv/Vol/Dec 962/600.0 mln/1325 NYSE Adv/Vol/Dec 1411/208.6 mln/1532

11:00 am : Stocks have given up their early gains with the Nasdaq now down 0.4% while both the Dow and S&P 500 are off 0.2%.

Shares of Patriot Coal (PCXCQ.PK 0.29, -0.02) are down more than 50% after the company confirmed plans to file for Chapter 11 reorganization. Today’s selling is the third session in a row with steep losses as the stock closed at $2.26 just last Thursday. Those who follow the stock should note the ticker change from ‘PCX’ to ‘PCXCQ.PK.’ Peabody Energy (BTU 23.28, -0.03) and Arch Coal (ACI 6.59, -0.08) are names that have some exposure to the company.DJ30 -22.85 NASDAQ -9.41 SP500 -2.28 NASDAQ Adv/Vol/Dec 1062/473.8 mln/1172 NYSE Adv/Vol/Dec 1478/170.0 mln/1407

10:35 am : In energy, Aug crude oil dropped earlier this morning by almost $1/barrel (from ~$86 to ~$85) on a rally in the dollar index. Crude attempted to erase its losses and ran as high as $85.50, but after another rally in the dollar index, oil again pulled back by about $1 again, dropping crude oil back near its overnight low of $84.68. It's now back at $85.03, down 1.1%

July natural gas has sold off sharply since hitting a morning high of $2.92. In the last couple of hours, nat gas sold off as much as 4.5% to a new low of $2.79. It's now back on session lows near $2.82/MMBtu, or down 2.4%

In the metals space, August gold and July silver gained steam earlier this morning, pushing gold to a high near $1602/oz, but silver barely moved into positive territory. Both gold and silver have since sold off due to additional strength in the dollar index. Gold is now +0.05% at $1589.90/oz and silver is -1.0% at $27.18/oz.

In ag: Watch corn futures too today. The USDA released a bullish weekly crop progress report at the close yesterday due to continued dry/hot weather in the U.S. As a result of these unfavorable growing conditions, corn futures are up 42% since mid-June. Also note that the USDA is going to release its monthly supply/demand report tomorrow morning at 8:30am EST, which should certainly be market moving for corn, wheat, soybeans and related agriculture stocks. This morning, however, corn futures are -1.4% at $7.20/bushel following the open of floor trading just a few minutes ago.DJ30 +33.42 NASDAQ +2.15 SP500 +2.43 NASDAQ Adv/Vol/Dec 1207/661.9 mln/976 NYSE Adv/Vol/Dec 1682/134 mln/1116

10:00 am : The major averages have trimmed a portion of their early gains, but continue to hold gains of close to 0.5%.

Applied Materials (AMAT 10.89, -0.12) is down 1.0% in the opening minutes of trade after the company lowered its fiscal year 2012 sales guidance, and announced it expects both third quarter earnings per share and revenues to come in at the lower end of the their expected ranges. The stock slumped to the $10.40 level early in the session where it was able to find support, and now trades near session highs.DJ30 +74.55 NASDAQ +18.29 SP500 +7.28 NASDAQ Adv/Vol/Dec 1442/181.4 mln/653 NYSE Adv/Vol/Dec 1995/82.3 mln/782

09:45 am : Stocks hold solid gains at the open as all three of the major averages trade up close to 0.7%. Financials, materials, and industrials are the top performing sectors in early action. The strength in equities has had little impact on Treasuries as light selling has the 10-yr yield up just more than one basis point at 1.528%. DJ30 +79.70 NASDAQ +20.15 SP500 +8.01 NASDAQ Vol 111.6 mln NYSE Vol 61.9 mln

09:15 am : [BRIEFING.COM] S&P futures vs fair value: +6.00. Nasdaq futures vs fair value: +12.30. Futures point to a modest advance at the open as markets take their cues from the strong gains in Europe after European Union finance ministers announced plans to expedite EUR30 billion to begin the recapitalization of the Spanish banking system. In corporate news, Applied Materials (AMAT) will be in focus after the company lowered its fiscal year 2012 sales guidance, and said it expects both third quarter earnings per share and revenues to come in at the lower end of their ranges. There is no data today. Treasury will auction $32 billion 3-yr notes.

08:58 am : [BRIEFING.COM] S&P futures vs fair value: +5.40. Nasdaq futures vs fair value: +13.50. Some recent buying has lifted the Dollar Index to session highs near 83.30 as it searches for its best print in almost two years. The small gains in the euro following the plan to recapitalize Spanish banks have been erased with single currency now down 35 pips near 1.2280. Yesterday’s session low of 1.2235 in the euro will be watched closely as bears look to test the June 2010 lows near 1.1900. The yen is seeing a safety bid with today’s 20 pip gain running the currency to 79.30 per dollar. Traders continue to monitor the pair’s 200-day moving average which lies near 79.00. The Australian dollar is up 20 pips against the greenback at 1.0225 following the better than expected Chinese trade balance number, but has come off its best levels. The 1.0250/1.0300 area provides resistance with help from both the 100- and 200-day moving averages.

08:28 am : [BRIEFING.COM] S&P futures vs fair value: +2.50. Nasdaq futures vs fair value: +4.50. Global markets are seeing a mixed session following the Chinese trade balance and European finance ministers’ plan to expedite EUR30 bln to Spanish banks. Asian markets closed lower after the release of China’s trade balance. While the country’s surplus widened to $31.7 billion, imports disappointed with a gain of 6.3% (12.7% expected). Meanwhile, in Europe, markets are higher following the new plan to expedite aid to Spanish banks. Spanish yields have eased significantly after the announcement with the 10-yr dropping 24 basis points to 6.74%.

The major Asian bourses (Nikkei -0.4%, Hang Seng -0.2%, Shanghai -0.3%) ended lower as the Chinese trade balance figures weighed. Real estate shares were under pressure in Shanghai with Poly Real Estate and China Vanke falling 3.6% and 1.2% respectively. In Hong Kong, oil refiner Sinopec slipped 1.2% to close at its lowest level in 2012. Nikon Corp. was the notable loser in Japan, tumbling 7.0% following Intel’s announcement it would purchase a 15% stake in competitor ASML.

European markets (FTSE +0.8%, CAC +1.1%, DAX +1.3%) are higher this morning following the latest European plan to recapitalize Spanish banks and after production data in the region mostly topped estimates. Financials are bid across the region with Barclays, Commerzbank, and Societe Generale all up close to 2.5%. Steelmakers lead the advances in both France and Germany with ArcelorMittal up 3.0% and ThyssenKrupp higher by 4.7%.

07:56 am : [BRIEFING.COM] S&P futures vs fair value: +6.20. Nasdaq futures vs fair value: +10.50. U.S. futures are higher by 0.3% this morning, helped by an improved sentiment in Europe after euro-area leaders agreed to support Spanish banks with an initial 30 billion euro bailout. Spanish bond yields have moved lower on that news, with the 10-year yield down 24 basis points at 6.75%. Additionally, better than expected manufacturing data in the UK and Italy helped the tone in Europe. As such, the major European equity markets are holding gains at their mid-day, with Germany's DAX up 1.5%, the UK's FTSE up 1.0% and France's CAC up 1.3%. Spain's IBEX is again the biggest mover, up 1.7%.

Asian stocks finished lower overnight, prior to the positive sentiment shift out of Europe. Japan's Nikkei closed lower by 0.4%, while China's Shanghai Composite and Hong Kong's Hang Seng fell 0.3% and 0.2%, respectively. China posted better than expected headline trade surplus, but imports were lower than expected. There were also renewed rumors that China's central bank could announce further easing in the form of a reserve requirement cut in the coming days.

In U.S. news, Alcoa (AA 8.83, +0.07) kicked off earnings season last night, reporting in-line EPS and better than expected revenue. Alcoa also reaffirmed its forecast for 2012. Overall, the Alcoa report beat relatively low expectations, and the stock is slightly higher this morning... On the other hand, chipmaker Advanced Micro Devices (AMD 5.06, -0.56) is lower by 10% after it issued downside Q2 guidance. AMD preannounced Q2 revenue to be down 11% from last quarter, vs. prior expectations for flat to a 6% quarterly increase in revenue. The guidance suggests AMD will report revenue of around $1.4 billion, which would fall below the $1.6 bln Capital IQ Consensus Estimate... MAKO Surgical (MAKO 15.16, -9.45) is another mover to the downside this morning, trading lower by nearly 40% after it reduced guidance for its RIO systems sales. MAKO now expects to sell 42-48 RIO systems in 2012, down from prior guidance of 52-58... Finally, Patriot Coal (PCX 0.36, -0.25) shares are down 41% after confirming it will restructure under Chapter 11 Bankruptcy protection.

Looking at the calendar, there is no economic data scheduled for today. There are a few earnings reports scheduled, but none that are considered to be market-moving reports.

06:31 am : [BRIEFING.COM] S&P futures vs fair value: +7.50. Nasdaq futures vs fair value: +13.00.

06:31 am : Nikkei...8857.73...-39.20...-0.40%. Hang Seng...19396.36...-31.70...-0.20%.

06:31 am : FTSE...5677.40...+49.40...+0.90%. DAX...6469.29...+81.30...+1.30%.

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)
Image@ http://twitter.com/wrbtrader, http://stocktwits.com/wrbtrader and http://chart.ly/users/wrbtrader

http://www.thestrategylab.com
Phone: +1 708 572-4885
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