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 Post subject: August 22nd Wednesday 2012 Emini TF ($TF_F) points +4.20
PostPosted: Thu Aug 23, 2012 6:02 am 
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Joined: Sat Jan 10, 2009 2:06 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: +4.20 points or $420 dollars in the Russell 2000 Emini TF ($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 #TheStrategyLab chat room. You can read today's #TheStrategyLab 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=107&t=1302.

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 Price Action Analysis via 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 Trade Signal Strategies via 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=167&t=1561

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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 (e.g. Eurozone, MarketWatch.com) that had an impact on today's price action. Simply, I'm a strong believer that key market events causes key changes in supply/demand and volatility resulting in trade opportunities (swing points and strong continuation price actions) that reach profit targets. Thus, I pay attention to these key market events via WRB Analysis from one trade to the next trade to give me the market context before the appearance of my technical analysis trade signals. Therefore, I maintain these archives to allow me to understand what was happening on any given trading day in the past involving key market events to help better understand my trading and reactions to the markets...something I can not get from my broker statements alone.

Stocks Pare Losses After Fed Minutes, Close Mixed

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

NEW YORK (CNNMoney) -- U.S. stocks trimmed losses Wednesday afternoon to close mixed after minutes from the Federal Reserve's latest meeting showed that the central bank is leaning toward taking measures to stimulate the economy.

The Dow Jones industrial average finished just 0.2% lower. Prior to the minutes, the blue chip index was off about 0.6%. The S&P 500 and Nasdaq erased earlier losses to finish the day with slim gains.

A third round of large bond purchases known as quantitative easing -- or QE3 -- is still on the table, according to minutes from the Fed's latest policy meeting. The central bank is also debating a plan to lay out more explicit guidelines for Fed policy going forward.

"It's seems like the Fed is tilting more toward easing now," said Doug Roberts, chief investment strategist at Channel Capital Research. "But since the last Fed meeting, the economic data has been coming out on the positive side, so nobody is willing to make any big bets until they know more."

Investors will be tuning into Fed chief Ben Bernanke's speech at the Jackson Hole, Wyo., symposium next week, hoping it will do more to reveal the Fed's latest take on the economy and its plans for the monetary policy meeting in September.

"Until investors get some additional confirmation about which way things will go, they'll be hanging out on the sidelines," said Roberts.

* Bernanke's Jackson Hole speech may be a letdown

Meanwhile, investors also continue to keep an eye on Greece, as Prime Minister Antonis Samaras meets with eurozone officials throughout the week. He is expected to push for a two-year extension of the country's bailout program, which would give the government more time to implement difficult reforms and help get the nation's economy back on track.

Analysts say markets will be looking for any comments out of Samaras' meetings for signs of further stimulus measures.

"We are unlikely to get any firm promises on the extension of deadlines or additional funding," said Elisabeth Afseth, fixed income analyst at Investec. "But it is more likely that we get supporting comments about 'great efforts made, difficult economic conditions', though with a warning more needs to be done."

* Trading volume at 5-year low. Don't panic

Trading has been muted for the past few weeks, with stock market participants taking summer vacations. In fact, average daily volumes on the New York Stock Exchange in August have slumped to the lowest levels since September 2007.

Stocks will likely remain in a narrow range through Labor Day as Wall Street remains in vacation mode, said Stephen Carl, head equity trading at Williams Capital Group.

* Fear & Greed Index

World Markets: European stocks closed in the red. Britain's FTSE 100 fell 1.4%, the DAX in Germany slipped 1% and France's CAC 40 shed 1.5%.

Asian markets also ended lower. The Shanghai Composite lost 0.5%, the Hang Seng in Hong Kong fell 1.1%, and Japan's Nikkei edged lower 0.3%.

Japan's trade deficit in July was wider than expected at ¥517.4 billion ($6.5 billion), as Europe's debt crisis and slower growth in China pressured the country's exports.

Economy: Existing home sales came in at an annual rate of 4.47 million in July, up from June's 4.37 million, according to the National Association of Realtors. The results were below an economists' consensus compiled by Briefing.com.

Companies: PC giants Dell (DELL, Fortune 500) and Hewlett-Packard (HPQ, Fortune 500) were big laggards in trading Wednesday. Dell posted earnings that beat expectations, but shares slumped after the company issued a disappointing guidance. After the closing bell, rival HP reported earnings that topped expectations, but sales missed forecasts. The company's guidance for the year was also weaker than analysts were hoping. Share of HP were up about 2% in after-hours trading.

Shares of Toll Brothers (TOL) rose after the luxury home builder reported surprisingly strong earnings, signaling further momentum in the U.S. housing market.

Express (EXPR) posted earnings that beating analyst expectations, but net sales fell short of forecasts, sending shares of the apparel retailer down more than 10%.

Shares of Williams Sonoma (WSM)surged after the housewares retailer reported better-than-expected second-quarter earnings and raised its forecast for the rest of the year.

American Eagle (AEO) delivered earnings that were in line with expectations, but the company's forecast for the full year topped Wall Street's forecast, boosting shares.

* Video - Dell and HP down for the count?

Currencies and commodities: The dollar declined against the euro, the British pound and the Japanese yen following the Fed minutes.

Oil for October delivery rose 42 cents to settle at $97.26 a barrel.

Gold futures for December delivery fell $2.40 to settle at $1,640.50 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury edged higher, pushing the yield down to 1.70% from 1.81% late Tuesday.

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Market Update

4:15 pm : Equities spent the majority of today's session in the red. After a lower open, stocks traded in a tight range until the release of FOMC minutes. After breaking through the unchanged line, stocks could not push much higher as they registered a flat close. The Nasdaq outperformed and ended higher by 0.2%.

The FOMC minutes revealed a discussion between members regarding the costs and benefits of a new large-scale asset purchase program, otherwise thought of as "QE3." Members of the committee agreed that additional easing could provide support for the economic recovery by further depressing longer-term interest rates. However, few members voiced concern over the impact such easing would have on markets which deal in Treasury securities and agency mortgage backed securities. Overall, the committee appears to be maintaining their stance and will provide additional easing if general economic conditions deteriorate further.

Homebuilders saw notable strength after Toll Brothers (TOL 33.01, +1.20) reported strong quarterly results highlighted by a $0.19 earnings beat. Rivals Standard Pacific (SPF 6.49, +0.29), PulteGroup (PHM 13.29, +0.50), MDC Holdings (MDC 33.88, +0.95), and DR Horton (DHI 19.01, +0.76) were all up between 3.5% and 5.0%.

Shares of two apparel retailers headed in opposite directions after announcing earnings. Express (EXPR 15.02, -1.87) slumped 11.1% after reporting an earnings beat and a revenue miss. Meanwhile, American Eagle Outfitters (AEO 22.13, +1.30) surged 6.2% after announcing in-line earnings and issuing upside guidance.

Discover Financial (DFS 38.43, +1.43) ended higher by 3.9% after announcing a partnership which will allow PayPal subscribers to use their accounts at retail merchants who accept the Discover card as a form of payment. Discover marked a new all-time high of $39.13 following the news while shares of PayPal's parent company, EBay (EBAY 47.00, +1.15) advanced 2.5%.

Dell (DELL 11.68, -0.66) slid 5.4% after delivering mixed earnings. The personal computer manufacturer exceeded earnings estimates but missed on revenues while issuing downside guidance. Peer Hewlett-Packard (HPQ 19.20, -0.73) was lower by 3.7% ahead of its earnings release after today's close.

Stocks in the telecom space were lower as MetroPCS (PCS 9.71, -0.44) slipped 4.3%. The pay-as-you-go carrier was down after introducing an unlimited plan with a monthly fee of $55. A price battle between the wireless provider and rival T-Mobile has been ongoing. Today, T-Mobile announced their own unlimited plan with a price tag of $89.99 per month.

Existing home sales for July hit an annualized rate of 4.47 million units, which is weaker than the rate of 4.55 million units that had been generally expected among economists surveyed by Briefing.com. The pace for July is up from the prior month rate of 4.37 million units.

Treasury yields had been on a steady rise since late July. However, longer dated yields were able to hold their 200-day moving averages after rising close to 50 basis points apiece as a result of the selling. After seeing a couple days of modest gains, heavy buying throughout today's session dropped yields to their lowest levels in more than a week. Declines of close to 9 basis points in both the 10- and 30-yr yields dropped them to 1.719% and 2.825%, respectively.

Tomorrow's economic data includes initial and continuing claims at 8:30 AM ET. In addition, the FHFA Housing Price Index and new home sales will be reported at 10 AM ET.DJ30 -30.82 NASDAQ +6.41 SP500 +0.32 NASDAQ Adv/Vol/Dec 916/1.42 bln/1543 NYSE Adv/Vol/Dec 1175/600.8 mln/1830

3:35 pm : In energy, Sept crude oil Crude oil was volatile today and reached a floor session high of $97.50/barrel. Brent crude oil and WTI crude oil are both near a 3-month high as Middle East tension has helped create upside in prices. By the end of today's session, crude oil finished 0.4% higher at $97.24/barrel.

Sept natural gas recovered somewhat today, on choppy trade, after pulling back yesterday on the reports that a U.S. Court has put on hold an EPA rule over limits on sulfur dioxide and nitrogen oxide emissions. Nat gas ended 5 cents higher at $2.83/MMBtu.

In metals, Dec gold and Sept silver were trading near the unchanged line during the afternoon session, but both closed just modestly lower. Following the FOMC minutes, however, both gold and silver to new highs for the day. Sept copper rose 2 cents at $3.47/lb, just above its session low of $3.35. Gold finished pit trade about $2 lower at $1640.60, while silver rose 0.4% to $29.54.DJ30 -29.04 NASDAQ +7.07 SP500 +0.77 NASDAQ Adv/Vol/Dec 940/1190.1 mln/1506 NYSE Adv/Vol/Dec 1178/392 mln/1804

3:00 pm : Stocks are marking fresh session highs after the FOMC minutes indicated the Federal Reserve believes it has the capacity to introduce additional easing. The S&P 500 is up 0.1%.

Dell (DELL 11.56, -0.78) is sliding 6.3% after delivering mixed earnings. The personal computer manufacturer exceeded earnings estimates but missed on revenues while issuing downside guidance. Peer Hewlett-Packard (HPQ 19.21, -0.71) is lower by 3.6% ahead of its earnings release after today's close.DJ30 -20.24 NASDAQ +8.45 SP500 +1.77 NASDAQ Adv/Vol/Dec 1014/1.07 bln/1428 NYSE Adv/Vol/Dec 1208/351.1 mln/1760

2:30 pm : The S&P 500 saw a brief spike after FOMC minutes were released. The move was short-lived as the index promptly returned to its pre-release level. It is currently down 0.2%.

The Federal Open Market Committee has released the minutes from the August meeting. The minutes revealed a discussion between members regarding the costs and benefits of a new large-scale asset purchase program, otherwise thought of as "QE3." Members of the committee agreed that additional easing could provide support for economic recovery by further depressing longer-term interest rates. However, few members voiced concern over the impact such easing can have on markets which deal in Treasury securities and agency mortgage backed securities. Overall, the committee appears to be maintaining their stance and will provide additional easing if general economic conditions deteriorate further.

Gold, oil, and risk currencies all spiked following the release.DJ30 -52.11 NASDAQ -1.47 SP500 -2.96 NASDAQ Adv/Vol/Dec 855/985.5 mln/1563 NYSE Adv/Vol/Dec 880/318.1 mln/2083

2:00 pm : Stocks have lifted off their lows but they remain lower on the day. The Dow continues to underperform, down 0.5%.

Discover Financial (DFS 38.73, +1.73) is higher by 4.7% after announcing a partnership which will allow PayPal subscribers to use their accounts at retail merchants who accept the Discover card as a form of payment. Discover is marking a new all-time high following the news. Meanwhile, shares of PayPal's parent company, EBay (EBAY 47.20, +1.35) are up 2.9%.DJ30 -72.63 NASDAQ -6.38 SP500 -5.13 NASDAQ Adv/Vol/Dec 803/870.1 mln/1594 NYSE Adv/Vol/Dec 771/270.5 mln/2183

1:30 pm : Equities continue to trade near the bottom of the afternoon range with the S&P 500 down 0.3%.

Major financials are lower ahead of the FOMC minutes. These stocks are highly sensitive to any potential easing and would stand to gain the most from additional asset purchases. After outperforming yesterday, bank shares are lower. Citigroup (C 30.29, -0.44), JPMorgan Chase (JPM 37.59, -0.44), Morgan Stanley (MS 14.72, -0.16), and Goldman Sachs (GS 104.00, -1.32) are all down in excess of 1.0%. However, European financials are not sharing the pessimism as UBS (UBS 11.39, +0.22) and Credit Suisse (CS 18.94, +0.26) are higher by 2.0% and 1.4%, respectively.DJ30 -65.05 NASDAQ -4.28 SP500 -4.42 NASDAQ Adv/Vol/Dec 801/804.6 mln/1581 NYSE Adv/Vol/Dec 755/250.2 mln/2178

1:05 pm : Equities began today's session in negative territory where they have remained throughout the day. The major indices are at their session lows as investors express caution ahead of the release of the FOMC minutes at 2 PM ET.

Homebuilders are seeing notable strength after Toll Brothers (TOL 32.94, +1.13) reported strong quarterly results highlighted by a $0.19 earnings beat. Rivals Standard Pacific (SPF 6.51, +0.31), PulteGroup (PHM 13.35, +0.56), MDC Holdings (MDC 34.10, +1.17), and DR Horton (DHI 18.99, +0.74) are all up between 3.5% and 5.5%.

Shares of two apparel retailers are going in opposite directions after announcing earnings. Express (EXPR 15.07, -1.82) is down by 10.8% after reporting an earnings beat and a revenue miss. Meanwhile, American Eagle Outfitters (AEO 22.30, +1.47) is surging 7.1% after announcing in-line earnings and issuing upside guidance.

Biotech stocks are outperforming the broader market. The SPDR S&P Biotech ETF (XBI 87.27, +0.62) is higher by 0.7% with Arena Pharmaceuticals (ARNA 8.63, +0.56) leaping 7.0% and InterMune (ITMN 7.87, +0.36) adding 4.8%. Shares of InterMune are rebounding after reaching all-time lows near $7.21 yesterday. The exact reason for the significant moves is still unknown, but the strength within the group may be traceable to the advance made by VIVUS (VVUS 21.24, +0.58) after a company director acquired 5,000 shares.

Assisted living company Sunrise Senior Living (SRZ 14.20, +5.27) will be acquired by Health Care REIT (HCN 57.63, -2.12) for $14.50 per share, representing a 62% premium to yesterday's close in SRZ. Peers Brookdale Senior Living (BKD 21.64, +1.73), Five Star Quality Care (FVE 4.14, +0.26), and Assisted Living Concepts (ALC 8.06, +0.58) are up between 6.5% and 9.0% on the acquisition news.

Stocks in the telecom space are lower with MetroPCS (PCS 9.63, -0.52) sliding 5.1%. The pay-as-you-go carrier is down after introducing an unlimited plan with a monthly fee of $55. A price battle between the wireless provider and rival T-Mobile has been ongoing. Today, T-Mobile announced their own unlimited plan with a price tag of $89.99 per month.

Existing home sales for July hit an annualized rate of 4.47 million units, which is weaker than the rate of 4.55 million units that had been generally expected among economists surveyed by Briefing.com. The pace for July is up from the prior month rate of 4.37 million units.DJ30 -69.55 NASDAQ -8.16 SP500 -5.51 NASDAQ Adv/Vol/Dec 777/753.1 mln/1592 NYSE Adv/Vol/Dec 710/234.8 mln/2216

12:30 pm : After a brief rise off session lows, stocks promptly returned to their worst levels of the day. The S&P 500 is down 0.3%.

Biotech stocks are outperforming the broader market. The SPDR S&P Biotech ETF (XBI 87.47, +0.82) is higher by 1.0% with Arena Pharmaceuticals (ARNA 8.64, +0.57) leaping 6.8% and InterMune (ITMN 7.94, +0.43) adding 5.7%. Shares of InterMune are rebounding after reaching all-time lows near $7.21 yesterday.

The exact reason for the significant moves is still unknown, but the strength within the group may be traceable to the advance made by VIVUS (VVUS 21.33, +0.67) after a company director acquired 5,000 shares.DJ30 -62.63 NASDAQ -5.15 SP500 -4.22 NASDAQ Adv/Vol/Dec 776/675.1 mln/1570 NYSE Adv/Vol/Dec 758/208.2 mln/2141

12:00 pm : Stocks are lifting off session lows as the Dow underperforms, down 0.4%.

Shares of two apparel retailers are going in opposite directions after announcing earnings. Express (EXPR 15.19, -1.71) is down by 10.1% after reporting an earnings beat and a revenue miss. Meanwhile, American Eagle Outfitters (AEO 22.25, +1.41) is surging 6.8% after announcing in-line earnings and issuing upside guidance.DJ30 -50.30 NASDAQ -1.55 SP500 -2.83 NASDAQ Adv/Vol/Dec 835/615.2 mln/1489 NYSE Adv/Vol/Dec 845/190.4 mln/2031

11:30 am : Equities continue to hover near session lows with the S&P 500 off by 0.3%.

Stocks in the telecom space are lower with MetroPCS (PCS 9.68, -0.46) sliding 4.6%. The pay-as-you-go carrier is down after introducing an unlimited plan with a monthly fee of $55. A price battle between the wireless provider and rival T-Mobile has been ongoing. Today, T-Mobile announced their own unlimited plan with a price tag of $89.99 per month.DJ30 -59.48 NASDAQ -6.31 SP500 -4.29 NASDAQ Adv/Vol/Dec 798/526.2 mln/1492 NYSE Adv/Vol/Dec 798/166.9 mln/2053

11:00 am : Stocks made an attempt at breaking into positive territory but slipped into the red after a brief stay at the unchanged line. Recent selling has dropped the S&P 500 to session lows, down 0.3%.

Homebuilders are seeing notable strength after Toll Brothers (TOL 33.17, +1.35) reported strong quarterly results highlighted by a $0.19 earnings beat. Rivals Standard Pacific (SPF 6.57, +0.37), PulteGroup (PHM 13.37, +0.58), MDC Holdings (MDC 34.25, +1.32), and DR Horton (DHI 19.02, +0.77) are all up between 4.5% and 6.0%.DJ30 -49.75 NASDAQ -6.05 SP500 -4.06 NASDAQ Adv/Vol/Dec 800/436.6 mln/1460 NYSE Adv/Vol/Dec 797/140.3 mln/2011

10:35 am : The dollar index fell sharply a short while ago, which initially gave a boost to select commodities such as gold, copper, oil and natural gas. Later on, the FOMC will release its FOMC minutes, which will be of great interest to the commodities markets.

Oct crude oil has been in the red almost all morning and fell as low as $96.19/barrel. Ahead of inventory data, crude was modestly lower, right around $96.65. Following the bullish inventory data, crude spike to a new HoD of $97.18 and is now +0.1% at $96.94/barrel.

Natural gas futures has been in positive territory all session and rallied again in recent activity, hitting a new session high of $2.85. Nat gas is now at +2.2% at $2.84/MMBtu.

Precious metals have been choppy this morning, trading in a relatively narrow range. Dec gold touched as low as $1638.60 earlier this morning and is now trading around the unchanged line. Sept Silver is showing the same pattern this morning and is also near the unchanged line.DJ30 -26.00 NASDAQ +0.42 SP500 -1.03 NASDAQ Adv/Vol/Dec 937/344.3 mln/1242 NYSE Adv/Vol/Dec 1056/114 mln/1699

10:00 am : Existing home sales for July hit an annualized rate of 4.47 million units, which is weaker than the rate of 4.55 million units that had been generally expected among economists surveyed by Briefing.com. The pace for July is up from the prior month rate of 4.37 million units.DJ30 -13.86 NASDAQ -3.22 SP500 -1.67 NASDAQ Adv/Vol/Dec 766/204.1 mln/1322 NYSE Adv/Vol/Dec 914/75.7 mln/1766

09:45 am : Equities have remained in the red during the first few minutes of trade. The S&P 500 is down 0.3%.

Assisted living company Sunrise Senior Living (SRZ 14.26, +5.33) will be acquired by Health Care REIT (HCN 58.71, -1.04) for $14.50 per share, representing a 62% premium to yesterday's close in SRZ. Peer Brookdale Senior Living (BKD 21.46, +1.55) is up 7.7% while Five Star Quality Care (FVE 4.04, +0.16) and Assisted Living Concepts (ALC 7.80, +0.32) are up near 4.0% each on the acquisition news.

Existing home sales data will be released in 15 minutes.DJ30 -14.33 NASDAQ -10.13 SP500 -2.51 NASDAQ Adv/Vol/Dec 746/120.8 mln/1269 NYSE Adv/Vol/Dec 876/53.6 mln/1746

09:20 am : S&P futures vs fair value: -3.30. Nasdaq futures vs fair value: -4.80. Heading into the open, futures remain lower by 0.3%.

With today's economic data limited to existing home sales at 10 AM ET, a quiet morning is expected as investors anticipate the 2 PM ET release of the FOMC minutes. The minutes will be dissected for signs of easing in the near future, possibly as soon as the Jackson Hole symposium next week.

09:02 am : [BRIEFING.COM] S&P futures vs fair value: -2.30. Nasdaq futures vs fair value: -2.50. It was a sea of red across Asia as all of the major averages finished in negative territory after Japan's trade deficit came in at JPY 0.33 trillion. The number was slightly wider than the JPY 0.32 trillion reading that was expected as exports to Europe tumbled 25% year-over-year while shipments to China fell 12%.

In Japan, the Nikkei shed 0.3% as manufacturers declined after the U.S. International Trade Commission announced it was launching an investigation into 24 manufacturers. Kyocera and Nintendo were among the named, falling 1.2% and 0.6% respectively. Tokyo Electron was the biggest decliner, sliding 2.8% after being downgraded at Deutsche Securities.

In Hong Kong, the Hang Seng slid 1.1% as commodity-related names were under pressure. PetroChina lost 1.9% ahead of its earnings while aluminum maker Chalco gave up 2.4% ahead of Friday's results. Computer maker Lenovo shed 2.9% after U.S. peer Dell Computer lowered its full-year outlook.

China's Shanghai Composite slipped 0.5% as real estate stocks were weak on talk of Hubei province proposing property tax rules (which was denied). Poly Real Estate led the decline with a loss of 3.5% while rivals Gemdale and China Vanke fared little better with respective losses of 2.7% and 2.2%.

European markets are firmly in the red and near their session lows. With no economic data released today, the markets lacked a bullish catalyst. The Spanish 10-year yield is holding steady around 6.15% and Italy's 10-year yield is slightly lower, at 5.61%.

In the UK, the FTSE is down 1.1% as few names are staying positive. Distiller Diageo is leading the session, up 0.6%. Miners are under pressure after rallying briefly. Fresnillo, Eurasian Natural Resources, and Vedanta Resources are all down near 1.0%.

Germany's DAX is lower by 0.9% with Allianz and Commerzbank as the only two advancers. The two financials are up 0.5% and 0.1%, respectively. Medical equipment maker Fresenius SE is down 2.7% and athletic apparel producer Adidas is lower by 1.4%.

France's CAC is outperforming other regional indices slightly, but the index is down 0.7%. As has been the case recently, financials are making an advance. AXA and Credit Agricole are leading the session with respective advances of 0.9% and 0.6%. Utility stocks are lower with Schneider Electric down 2.4%. Elsewhere, car maker Peugeot is said to be close to losing its spot in the CAC 40 index.

08:29 am : [BRIEFING.COM] S&P futures vs fair value: -1.50. Nasdaq futures vs fair value: -1.80. Futures are near their pre-market lows as they indicate a lower open by 0.2%.

Homebuilder Toll Brothers (TOL 33.15, +1.34) is up 4.2% after beating earnings estimates by $0.19. Revenues were in-line and management was cautious about future economic conditions in their guidance.

Existing home sales data, scheduled for a 10 AM ET release, will provide additional details on the condition of the housing market.

08:02 am : [BRIEFING.COM] S&P futures vs fair value: -2.20. Nasdaq futures vs fair value: -3.80. U.S. equity futures are pointing to a mildly lower open with the S&P futures off by 0.3%.

The overseas equity markets are trading lower this morning. With few headlines driving market action, the selling could partly be due to profit taking ahead of upcoming key events such as the release of the FOMC minutes later today or the latest round of meetings between Eurozone leaders.

However, the initial event which added pressure to markets was Japan's Trade Balance, which widely missed estimates. The data showed weak export data, with a 25.0% decrease in exports to Europe. This weighed on Asian markets, which all closed in negative territory. In addition, Standard & Poor's suggested China could afford additional stimulus. The firm cited a significant rise in unemployment as a potential catalyst.

European markets opened lower and they remain near session lows. The Spanish 10-year yield is holding steady around at 6.15% and Italy's 10-year yield is slightly lower is at 5.61%. Core European indices are all down in the neighborhood of 1.0%. UK's FTSE is down 1.2%, while Germany's DAX and France's CAC are lower by 1.0% and 0.9%, respectively.

Despite the quiet trading conditions, there were a few noteworthy earnings reports that have been reported since yesterday's close.

Dell (DELL 11.72, -0.62) is sliding 5.0% after delivering mixed earnings. The personal computer manufacturer exceeded earnings estimates but missed on revenues and issued downside guidance.

Williams-Sonoma (WSM 42.17, +3.94) is surging 10.2% after beating on earnings and revenues. The company also issued in-line guidance for the fiscal year.

Express (EXPR 14.77, -2.13) is down by 12.6% after reporting an earnings beat and a revenue miss.

The MBA Mortgage Index decreased by 7.4% over the past week. This comes after a prior reading of a 4.5% decrease. The purchase index showed a 0.9% improvement over last week, while the refinance index was lower by 9.0% compared to the prior week.

Existing home sales will be reported at 10 AM ET. More importantly, the latest FOMC minutes will be released at 2 PM ET, which will be dissected as participants try to gauge where the Fed stands on further easing.

06:06 am : [BRIEFING.COM] S&P futures vs fair value: -2.00. Nasdaq futures vs fair value: -4.00.

06:06 am : Nikkei...9131.74...-25.20...-0.30%. Hang Seng...19887.78...-212.30...-1.10%.

06:06 am : FTSE...5796.10...-61.40...-1.00%. DAX...7034.83...-54.50...-0.80%.

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 and http://stocktwits.com/wrbtrader

http://www.thestrategylab.com
Phone: +1 708 572-4885
Business Hours: 8am - 5pm est (Mon - Fri)
Skype Messenger: kebec2002
questions@thestrategylab.com
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