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 Post subject: September 12th Wednesday 2012 Emini TF ($TF_F) points +11.50
PostPosted: Wed Sep 12, 2012 9:40 pm 
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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: +11.50 points or $1150 dollars in the Russell 2000 Emini TF ($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=108&t=1319.

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=171&t=1594

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Market Summaries

The below summaries by Bloomberg, CNNMoney, Reuters 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.

U.S. Market Wrap

Sept. 12 (Bloomberg) -- Bloomberg's Deborah Kostroun reports on the performance of the U.S. equity market today. U.S. stocks rose, with benchmark indexes trading near four-year highs, as a German court cleared the way for Europe’s bailout fund and investors weighed prospects for stimulus measures from the Federal Reserve.

Stocks Edge Higher Ahead Of Fed

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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 modestly higher Wednesday, as investors look beyond the latest development in Europe to focus on the possibility that the Federal Reserve will announce another round of quantitative easing.

The Dow Jones industrial average, the Nasdaq and the S&P 500 ended the day up between 0.1% and 0.3%, following a critical decision by Germany's Constitutional Court. The court dismissed complaints on the legality of the European Stability Mechanism, a permanent bailout fund that's expected to have a maximum lending capacity of €500 billion.

Most European stocks rose on the news. The DAX in Germany was 1.9% higher at the close of trading, while France's CAC 40 rose 1%. Asian markets, which closed ahead of the German court decision, ended higher.

Investors were anxious about how the ruling would impact the European Central Bank's plans to preserve the euro, which remained at its highest level against the U.S. dollar in four months early Wednesday.

"This is good news for the EU and has certainly been reflected in the value of the euro across the board," said Chris Towner, director of foreign exchange advisory services at HiFX. "This gives a foundation for the EU leaders to start to put a proper framework in place for further integration."

As stocks around the globe reacted, investors bailed out of U.S. Treasuries, sending the yield on the benchmark 10-year note up to 1.76% from 1.69% late Tuesday. Investors are already turning their attention to the Federal Reserve, which many hope will announce more stimulus when its two-day policy meeting concludes on Thursday.

Bank stocks initially got a lift from the expectations of another round of quantitative easing, or QE3, with Citigroup (C, Fortune 500) jumping nearly 2%. Citi, JPMorgan (JPM, Fortune 500), Morgan Stanley (MS, Fortune 500) and Wells Fargo (WFC, Fortune 500) all pared their gains, closing up about 1%.

In other corporate news, Apple (AAPL, Fortune 500) unveiled the iPhone 5, a thinner, lighter version of its iconic phone at an investor event. Shares of the company closed the day up 1.4%.

Fear & Greed Index

Economy: The U.S. Bureau of Labor Statistics reported Wednesday that import prices rose 0.7% in August, after declining 0.7% the prior month. Export prices rose 0.9% in August, after rising 0.4% the prior month. The government also reported that total inventories rose 0.7% in July.

Companies: Facebook (FB) shares rose more than 7%, a day after CEO Mark Zuckerberg made his first public interview since the company's IPO. Speaking at TechCrunch Disrupt in San Francisco, Zuckerberg said he was disappointed by the stock's performance and pledged to stick to Facebook's mission.

Video - No Hoodie, No Problem!

Aerospace companies BAE Systems (BAESY)and European Aeronautic Defence & Space Co. (EADSY) are reportedly in merger talks.

Chesapeake Energy (CHK, Fortune 500)agreed to sell most of its properties in the Permian Basin in West Texas for roughly $6.9 billion. The natural gas company will sell the Delaware Basin portion to Royal Dutch Shell in a deal valued just below $2 billion. Chevron (CVX, Fortune 500) and Global Infrastructure Partners will also buy portions of the acreage.

Commodities: Oil for October delivery slipped 16 cents to $97.01 a barrel. Gold futures for December delivery fell $1.20 to $1,733.70 an ounce. Oil and gold have both rallied lately due to the rising hopes for QE3 and a weaker dollar that could come with it. Oil tends to benefit from a weaker dollar while gold is often viewed as a classic hedge against inflation.

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Market Update

4:20 pm : Stocks started the day higher but were only able to hold a portion of their gains in a session which saw two pullbacks to the unchanged line. After spending most of the day in the black, the S&P 500 ended higher by 0.2%.

Telecoms were broadly higher as indicated by the iShares Dow Jones US Telecom ETF (IYZ 25.22, +0.29), which added 1.2%. MetroPCS (PCS 10.31, +0.25) advanced 2.5% on rumors regarding a possible merger with another major carrier. Meanwhile, Sprint (S 5.10, +0.10) and Verizon (VZ 44.89, +0.65) settled higher by 2.0% and 1.5%, respectively.

The Dow Jones Transportation Average has been on a steady rise over the past week, and it added another 0.8% today. Airline stocks showed strength as Delta (DAL 9.50, +0.22), Southwest (LUV 9.18, +0.23), and United Continental (UAL 20.31, +0.51) all posted gains between 2.3% and 2.6%. Shipping and trucking stocks were also higher as Overseas Shipholding Group (OSG 6.72, +0.34) and Landstar (LSTR 49.62, +0.94) advanced 5.3% and 1.9%, respectively.

Financial stocks outperformed the broader market as banks continued adding to their recent gains. Goldman Sachs (GS 118.24, +1.55), JPMorgan Chase (JPM 39.92, +0.32), and Citigroup (C 33.05, +0.39) all gained near 1.0%. Meanwhile, Bank of America (BAC 8.97, -0.06) lagged the other majors with a 0.7% loss. European financials were also on the rise with Credit Suisse (CS 22.55, +1.06) and UBS (UBS 12.82, +0.26) ending higher by 4.9% and 2.1%, respectively. On the downside, Deutsche Bank (DB 42.43, -0.19) slipped 0.5% after rallying more than 55.0% since July 25th.

Chinese internet stocks were on the move after Citigroup initiated coverage of three names. Youku (YOKU 18.79, +0.94) and Sohu.com (SOHU 42.50, +1.50) received a ‘buy' rating and gained 5.3% and 3.7%, respectively. Meanwhile, Renren (RENN 3.81, +0.04) added 1.1% despite receiving a ‘sell' rating. Elsewhere, Yahoo! (YHOO 15.40, +0.24) rose by 1.6% as the company is expected to acquire the assets of online business-to-business trading platform, Alibaba, by the end of the week.

Shares of Facebook (FB 20.93, +1.50) jumped 7.7% after Chief Executive Officer Mark Zuckerberg participated in a Q&A session at an event in San Francisco last evening. At the event, Mr. Zuckerberg commented on mobile ads, saying that they are performing better than the ones which appear on the desktop platform. In addition, Zuckerberg called Zynga (ZNGA 3.07, +0.28) a "fundamentally strong company." Shares of ZNGA spiked 10.0% in response to the comments.

Export prices, excluding agriculture, increased by 0.4% in August after they had decreased by 1.4% in the prior month. Excluding oil, import prices were down in August by 0.2%, which follows a 0.3% decrease experienced in the prior month.

Separately, wholesale inventories were up 0.7% in July. That is higher than the increase of 0.3% which had been broadly forecast.

Tomorrow's key economic events include the Federal Open Market Committee announcing its statement and rate decision at 12:30 ET, and its economic projections at 14:00 ET. Finally, Federal Reserve Chairman Ben Bernanke will hold a press conference at 14:15 ET.

A handful of economic data points are scheduled to be released tomorrow. Initial and continuing claims, as well as PPI and core PPI will be released at 8:30 ET while the U.S. Treasury will report its budget at 14:00 ET.

The U.S. Treasury will hold a $13 billion, 30-yr reopening.DJ30 +9.99 NASDAQ +9.78 SP500 +3.00 NASDAQ Adv/Vol/Dec 1467/1.65 bln/990 NYSE Adv/Vol/Dec 1965/663.7 mln/1043

3:30 pm : Crude oil touched a session high of $97.49 per barrel in morning action but slid to a session low of $96.30 per barrel following weaker-than-anticipated inventory data that showed a build of 1.994 mln barrels when a draw of 2.8 mln barrels was expected. The energy component then chopped around slightly below the breakeven line and settled just 3 cents lower at $97.01 per barrel.

Natural gas dipped to a session low of $2.95 per MMBtu in morning floor trade but rallied back into positive territory in afternoon action. It settled with a 2.3% gain at $3.06 per MMBtu, or just below its session high of $3.07 per MMBtu.

Precious metals traded higher in overnight action as the dollar index fell following the German Constitutional Court's ruling rejecting the injunction against the ESM. However, the momentum faded and both gold and silver fell into negative territory in morning pit action.

Gold dipped to a session low of $1728.50 per ounce and spent the remainder of its session trading in a consolidative pattern just below the unchanged line. It eventually settled 0.1% lower at $1733.40 per ounce. Silver attempted to erase losses after it fell to a session low of $32.51 per ounce. Despite inching higher, the metal settled with a 1.0% loss at $33.26 per ounce.DJ30 +12.24 NASDAQ +1.67 SP500 +1.86 NASDAQ Adv/Vol/Dec 1235/1391.6 mln/1203 NYSE Adv/Vol/Dec 1801/452 mln/1196

3:00 pm : Stocks are probing the lower end of the afternoon range as the major averages give back some of their gains. The S&P 500 is up 0.2%.

Apparel retailer Abercrombie & Fitch (ANF 37.15, +1.18) is higher by 3.3% after a CNBC report indicated ANF has hired Goldman Sachs as an advisor. The SPDR S&P Retail ETF (XRT 63.62, +0.42) spiked on the news, but has retraced that move since. The retail sector ETF is currently higher by 0.7%.DJ30 +11.58 NASDAQ +1.28 SP500 +1.83 NASDAQ Adv/Vol/Dec 1274/1.27 bln/1163 NYSE Adv/Vol/Dec 1842/407.1 mln/1148

2:30 pm : Heading into the final 90 minutes of the session, stocks are holding their afternoon levels. The S&P 500 is up 0.3%.

The Dow Jones Transportation Average has been on a steady rise over the past week and is adding another 0.6% today. Airline stocks are showing strength as Delta (DAL 9.50, +0.22), Southwest (LUV 9.19, +0.24), and United Continental (UAL 20.35, +0.55) are all up between 2.0% and 3.0%. Shipping and trucking stocks are also higher with Overseas Shipholding Group (OSG 6.66, +0.28) and Landstar (LSTR 49.35, +0.66) advancing by 4.4% and 1.4%, respectively.DJ30 +19.44 NASDAQ +8.81 SP500 +3.53 NASDAQ Adv/Vol/Dec 1361/1.18 bln/1071 NYSE Adv/Vol/Dec 1867/374.7 mln/1104

2:00 pm : The major averages are maintaining their afternoon range with the S&P 500 up 0.3%.

Financial stocks are outperforming the broader market as banks continue adding to their recent gains. Goldman Sachs (GS 118.14, +1.45), JPMorgan Chase (JPM 39.96, +0.36), and Citigroup (C 32.98, +0.32) are all up near 1.0%. Meanwhile, Bank of America (BAC 8.89, -0.14) lags the other majors, down 1.6%.

European financials are also rising with Credit Suisse (CS 22.57, +1.08) and UBS (UBS 12.84, +0.28) higher by 5.0% and 2.3%, respectively. Meanwhile, Deutsche Bank (DB 42.43, -0.19) is lower after rallying more than 55.0% since July 25th.DJ30 +23.86 NASDAQ +9.11 SP500 +3.67 NASDAQ Adv/Vol/Dec 1382/1.09 bln/1024 NYSE Adv/Vol/Dec 1851/344.7 mln/1106

1:30 pm : Stocks saw a brief spike back near session highs in a move which coincided with the beginning of the Apple (AAPL 660.45, -0.14) event where the new iPhone is being unveiled. AAPL got bid as the major averages lifted, but the move was reversed promptly. Currently, shares of the tech giant are flat.DJ30 +26.10 NASDAQ +6.75 SP500 +3.70 NASDAQ Adv/Vol/Dec 1354/1.00 bln/1040 NYSE Adv/Vol/Dec 1843/318.8 mln/1101

1:00 pm : Stocks began the session on a positive note, but the major averages have seen some selling pressure since setting session highs during the first fifteen minutes. After sliding to lows at the flat line, major indices made partial recovery as they now hover in the middle of the day's range. The S&P 500 is up 0.2%.

Telecoms are broadly higher as indicated by the iShares Dow Jones US Telecom ETF (IYZ 25.15, +0.22), which is up 0.9%. MetroPCS (PCS 10.26, +0.20) is firmer by 1.9% as speculation heats up regarding a possible merger with another major carrier. Meanwhile, Sprint (S 5.08, +0.08) and Verizon (VZ 44.58, +0.34) are up 1.6% and 0.8%, respectively.

Utility stocks are trailing the broader market as sector rotation appears to be underway. Exelon (EXC 34.64, -0.85) is down 2.4% while AES Corporation (AES 11.28, -0.22) and Integrys (TEG 53.35, -0.90) are both down near 1.8%. Brazilian utility companies are especially weak after reports suggested the country's government will impose price controls on electricity rates. Cia Energetica de Minas Gerais (CIG 12.49, -3.28) and Companhia Paranaense de Energia (ELP 14.40, -2.70) are both slumping near 20.0%.

Chinese internet stocks are on the move after Citigroup initiated coverage of three names. Youku (YOKU 18.72, +0.87) and Sohu.com (SOHU 42.60, +1.60) received a ‘buy' rating and are up 4.9% and 3.9%, respectively. Meanwhile, Renren (RENN 3.72, -0.05) trades down 1.3% after receiving a ‘sell' rating. Elsewhere, Yahoo! (YHOO 15.39, +0.23) is higher by 1.5% as the company is expected to acquire the assets of online business-to-business trading platform, Alibaba, by the end of the week.

Shares of Facebook (FB 20.59, +1.16) are healthier by 5.9% after Chief Executive Officer Mark Zuckerberg participated in a Q&A session at an event in San Francisco last evening. At the event, Mr. Zuckerberg commented on mobile ads, saying that they are performing better than the ones which appear on the desktop platform. In addition, Zuckerberg called Zynga (ZNGA 2.90, +0.11) a "fundamentally strong company." Shares of ZNGA are higher by 3.9% in response to the comments.

Export prices, excluding agriculture, increased by 0.4% in August after they had decreased by 1.4% in the prior month. Excluding oil, import prices were down in August by 0.2%, which follows a 0.3% decrease experienced in the prior month.

Separately, wholesale inventories were up 0.7% in July. That is higher than the increase of 0.3% which had been broadly forecast.DJ30 +21.66 NASDAQ +6.97 SP500 +3.47 NASDAQ Adv/Vol/Dec 1375/911.1 mln/997 NYSE Adv/Vol/Dec 1842/294.1 mln/1100

12:30 pm : Stocks are maintaining their levels as the three major averages all trade in-line, up 0.2%.

Utility stocks are trailing the broader market as sector rotation appears to be underway. Exelon (EXC 34.60, -0.89) is down 2.5%, while AES Corporation (AES 11.29, -0.21) and Integrys (TEG 53.33, -0.92) are both down near 1.7%.

Brazilian utility companies are especially weak after reports suggested the country's government will impose price controls on electricity rates. Cia Energetica de Minas Gerais (CIG 12.49, -3.27) and Companhia Paranaense de Energia (ELP 14.25, -2.85) are both slumping near 20.0%.DJ30 +25.21 NASDAQ +6.23 SP500 +3.68 NASDAQ Adv/Vol/Dec 1351/838.9 mln/1019 NYSE Adv/Vol/Dec 1836/270.9 mln/1072

12:00 pm : Equities continue to hover near the middle of the day's range as the S&P 500 is higher by 0.2%.

Chinese internet stocks are on the move after Citigroup initiated coverage of three names. Youku (YOKU 18.54, +0.69) and Sohu.com (SOHU 42.81, +1.81) received a ‘buy' rating and are up 3.9% and 4.4%, respectively. Meanwhile, Renren (RENN 3.69, -0.08) trades down 2.1% after receiving a ‘sell' rating.

Elsewhere, Yahoo! (YHOO 15.37, +0.21) is higher by 1.4% as the company is expected to acquire the assets of online business-to-business trading platform, Alibaba, by the end of the week.DJ30 +27.26 NASDAQ +5.87 SP500 +3.23 NASDAQ Adv/Vol/Dec 1341/760.2 mln/1010 NYSE Adv/Vol/Dec 1797/247.9 mln/1112

11:30 am : The major averages have rebounded after testing session lows at the unchanged line. The S&P 500 is up 0.3% as it trades near the middle of the day's range.

Shares of Facebook (FB 20.48, +1.05) are firmer by 5.4% after Chief Executive Officer Mark Zuckerberg participated in a Q&A session at an event in San Francisco last evening. At the event, Mr. Zuckerberg commented on mobile ads, saying that they are performing better than the ones which appear on the desktop platform. In addition, Zuckerberg called Zynga (ZNGA 2.87, +0.08) a "fundamentally strong company." Shares of ZNGA are higher by 2.9% in response to the comments.DJ30 +33.92 NASDAQ +3.01 SP500 +3.76 NASDAQ Adv/Vol/Dec 1301/664.9 mln/1004 NYSE Adv/Vol/Dec 1817/220.1 mln/1063

11:00 am : The major averages have slipped to their respective unchanged lines in a broad sell-off which saw all sectors turn lower except for telecom stocks. After a slight bounce off session lows, the S&P 500 is up 0.1%.

Telecoms are broadly higher as indicated by the iShares Dow Jones US Telecom ETF (IYZ 25.10, +0.17), which is up 0.7%. MetroPCS (PCS 10.36, +0.30) is firmer by 3.0% as speculation heats up regarding a possible merger with another major carrier. Meanwhile, Sprint (S 5.04, +0.04) and Verizon (VZ 44.70, +0.46) are both up near 1.0%.DJ30 +18.84 NASDAQ +2.36 SP500 +2.24 NASDAQ Adv/Vol/Dec 1177/547.7 mln/1078 NYSE Adv/Vol/Dec 1636/189.3 mln/1217

10:35 am : The dollar index is trading lower this morning, which was helping select commodities show gains.

Oct crude oil was trading modestly higher ahead of the weekly oil inventory data. Following the data, which showed a build of 1.994 mln barrels, well above the expectations of a draw of 2.8 mln barrels, crude tanked by about $1.10/barrel into negative territory and to a new session low of $96.30/barrel. Oil is now -0.04% at $97.13/barrel.

Oct natural gas has been trending lower during today's session and just recently hit a new LoD of $2.95/MMBtu. However, since Monday's session low, nat gas is just over 12% higher. In current action, the energy component is -0.2% at $2.99/MMBtu.

Silver and gold have been selling off in recent minutes, especially silver. Silver fell about $0.60/oz in the last 20 minutes to a new LoD of $33.01/oz, while gold has hit its own new LoD of $1730.70. Dec silver is now -1.8% at $32.96/oz and Dec gold is now -0.1% at $1733.10/oz.DJ30 +14.12 NASDAQ +0.23 SP500 +1.46 NASDAQ Adv/Vol/Dec 1187/409.3 mln/1031 NYSE Adv/Vol/Dec 1631/153 mln/1189

10:00 am : Stocks continue to hover near their opening levels. The S&P 500 is up 0.3%.

Wholesale inventories were up 0.7% in July. That's higher than the increase of 0.3% which had been broadly forecasted.DJ30 +27.65 NASDAQ +8.10 SP500 +4.28 NASDAQ Adv/Vol/Dec 1330/266.5 mln/815 NYSE Adv/Vol/Dec 1841/104.5 mln/910

09:45 am : Equities are building on their early gains as the S&P 500 is up 0.4%.

Looking at the early sector performance, financials and industrial stocks are showing early outperformance. Consumer staples, utilities, and healthcare are all weaker in what appears to be sector rotation out of traditionally safer stocks and into the riskier ones.

Elsewhere, Apple (AAPL 662.70, +2.11) is higher by 0.3% as it trades in-line with the market ahead of the expected unveiling of iPhone 5 at an event in San Francisco later today.

Wholesale inventories will be reported at 10:00 ET.DJ30 +47.62 NASDAQ +14.68 SP500 +5.60 NASDAQ Adv/Vol/Dec 1437/157.6 mln/636 NYSE Adv/Vol/Dec 1978/77.6 mln/705

09:15 am : [BRIEFING.COM] S&P futures vs fair value: +4.20. Nasdaq futures vs fair value: +10.50. Heading into the open, futures continue to trade higher by 0.4%.

Financial stocks bear watching as today's decision by the German Constitutional Court cleared another hurdle to full activation of the European Stability Mechanism. Bank of America (BAC 9.10, +0.07) and Citigroup (C 32.95, +0.29) are higher by 1.0% in pre-market. Meanwhile, European financials are on the rise as National Bank of Greece (NBG 2.52, +0.28) and Credit Suisse (CS 22.31, +0.82) trade up 12.5% and 3.8%, respectively.

09:00 am : [BRIEFING.COM] S&P futures vs fair value: +4.00. Nasdaq futures vs fair value: +9.30. U.S. equity futures remain elevated as they point to a higher open by 0.3%.

European markets are welcoming today's decision by the German Court which paves the way for a conditional launch of the ESM. Among these conditions, Germany's liability must be limited to EUR190 billion, the parliament must be informed on all ESM decisions, and any increase in exposure is to be decided by the parliament. The moments prior to the actual release saw a quick sell-off in the DAX and the euro, but both snapped back quickly once the official word was released. It should be noted that this ruling was on the injunction and not the "final" verdict. The commentary in the release seems to indicate that the ESM is likely not in violation of the German constitution, though the final decision will be made in December. Elsewhere, the European Commission President, Jose Manuel Barroso attempted to rally support around the Eurozone banking union plan, while Spain's Prime Minister, Mariano Rajoy said he would monitor bond yields over the coming days to determine if a bailout is necessary.

In Germany, the DAX is higher by 0.6% as Commerzbank leads all advancers, up 4.4%. Car makers are also higher with Volkswagen and BMW both posting gains near 2.0%. Consumer stocks are generally lower with Beiersdorf and Fresenius SE both down near 1.0%.

France's CAC is adding 0.3% as Credit Agricole leads, up 6.0%. Car makers are also outperforming as Peugeot and Renault trade higher by 3.5% and 2.4% respectively. Defense stocks are weaker with Safran and European Aeronautic Defence & Space Co down near 1.5% each.

UK's FTSE started higher but has slipped into negative territory since. The index is off by 0.1% as financial stocks appear on both ends of the spectrum. Hargreaves Lansdown and Admiral Group are both down near 2.7% while Royal Bank of Scotland and Lloyds Banking Group trade up 3.6% and 3.4% respectively.

It was a sea of green across Asia as all of the major averages, with the exception of Vietnam's Ho Chi Minh Index, finished in positive territory. Markets rallied ahead of the German High Court ruling on the constitutionality of the European Stability Mechanism, and after Chinese Premier Wen suggested there is room for more stimulus to spur consumption. Data in the region was heavy as Japan's core machinery orders climbed 4.6% month-over-month against expectations of a 2.7% increase, and its tertiary industry activity fell 0.8% on a monthly basis, while a decrease of 0.4% was expected. Elsewhere, Australia's Westpac Consumer Sentiment rose 1.6% while India's industrial production edged up 0.1% year-over-year. Finally, South Korea's unemployment rate ticked down to 3.1%.

In Japan, the Nikkei ended higher by 1.7% to close at its best level in two weeks. Steelmakers were strong after China's Baosteel announced it was holding prices steady after three straight monthly declines. This aided shares of Nippon Steel which rallied 2.5%. Telecom heavyweight Softbank supported the index, trading up 0.8%.

In Hong Kong, the Hang Seng advanced 1.1% as markets responded favorably to Premier Wen's comments. Real estate names were the top performers as Henderson Land and Cheung Kong gained 3.1% and 2.0% respectively. Meanwhile, luxury goods maker Prada fell 1.9% as selling continued following Burberry's profit warning.

China's Shanghai Composite added 0.3% despite underperformance in financials. Concerns continue to mount over bad loans in the sector with Industrial & Commercial Bank of China sliding 1.1% and Agricultural Bank of China falling 0.4%. Those names most sensitive to infrastructure spending outperformed as Jiangxi Copper and China Nonferrous Metal added 3.3% and 2.9% respectively.

08:34 am : [BRIEFING.COM] S&P futures vs fair value: +4.20. Nasdaq futures vs fair value: +10.30. Equity futures have slipped off their best pre-market levels, but they continue pointing to a higher open by 0.4%.

Export prices, excluding agriculture, increased by 0.4% in August after they had decreased by 1.4% in the prior month. Excluding oil, import prices were down in August by 0.2%, which follows the 0.3% decrease experienced in the prior month.

08:00 am : S&P futures vs fair value: +3.50. Nasdaq futures vs fair value: +7.30. U.S. equity futures are modestly higher after the German Constitutional Court rejected the injunction against the European Stability Mechanism.

The global equity markets are welcoming today's decision by the German Court which paves the way for a conditional launch of the ESM. Among these conditions, Germany's liability must be limited to EUR190 billion, parliament must be informed on all ESM decisions, and any increase in exposure is to be decided by the parliament. The moments prior to the actual release saw a quick sell-off in the DAX and the euro, but both snapped back quickly once the official word was released. It should be noted that this ruling was on the injunction and not the "final" verdict. The commentary in the release seems to indicate that the ESM is likely not in violation of the German constitution, though the final decision will be made in December. Elsewhere, the European Commission President, Jose Manuel Barroso attempted to rally support around the Eurozone banking union plan, while Spain's Prime Minister, Mariano Rajoy said he would monitor bond yields over the coming days to determine if a bailout is necessary. At midday, Germany's DAX is higher by 0.8%, France's CAC is firmer by 0.6%, and UK's FTSE is flat.

In Asia, Japan got a boost when its July machine orders exceeded expectations. China hinted at more stimulus spending to boost consumption at the Economic forum, but the Shanghai underperformed tonight. This was primarily due to the property sector, which got hit when reports surfaced that many banks have cut discounts to first time home buyers. Looking at the regional indices, Japan's Nikkei advanced 1.7%, Hong Kong's Hang Seng gained 1.1%, while China's Shanghai Composite added 0.3%.

In U.S. corporate news, Chesapeake Energy (CHK 20.88, +0.78) is higher by 3.9% after the company announced further asset sales. CHK will use part of the proceeds to fully repay its $4.0 billion of term loans during the fourth quarter.

Financial shares are seeing interest in pre-market as Bank of America (BAC 9.14, +0.11), Citigroup (C 33.00, +0.34), Morgan Stanley (MS 17.46, +0.21) are all making advances near 1.0%.

Facebook (FB 20.07, +0.64) is up 3.3% after its Chief Executive Officer Mark Zuckerberg spoke at the TechCrunch Disrupt Conference in San Francisco last evening.

The weekly MBA Mortgage Applications showed an increase of 11.1% versus last week's 2.5% decrease.

Today's economic data includes export prices ex-agriculture and import prices ex-oil, which will be reported at 8:30 ET. Meanwhile, wholesale inventory data will be released at 10:00 ET. In addition, the U.S. Treasury will auction off $21 billion in 10-yr notes.

06:28 am : [BRIEFING.COM] S&P futures vs fair value: +5.50. Nasdaq futures vs fair value: +13.00.

06:28 am : Nikkei...8959.96...+152.60...+1.70%. Hang Seng...20075.39...+217.50...+1.10%.

06:28 am : FTSE...5805.21...+13.00...+0.20%. DAX...7376.79...+66.70...+0.90%.

Special thanks to Bloomberg, CNNMoney, Reuters 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

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