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 Post subject: October 5th Friday TF & 6E Futures $120.00
PostPosted: Sat Oct 06, 2012 7:07 am 
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Joined: Sat Jan 10, 2009 2:06 pm
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Location: Canada
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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: Emini TF ($TF_F) futures @ $70.00 dollars or +0.70 points and EuroFX 6E futures @ $50.00 dollars or +4 ticks. Total Profit @ $120.00 dollars.

Russell 2000 Emini TF Futures - 1 tick or 0.10 = $10.00 dollars and there's more contract information @ The ICE
Light Crude Oil CL (WTI) Futures - 1 tick or 0.01 = $10 dollars and there's more contract information @ CMEGroup
CME EuroFX 6E Futures - 1 tick or 0.0001 = $12.50 dollars and there's more contract information @ CMEGroup
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=109&t=1338

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)...regardless if I'm day trading, swing trading or position trading.

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=192&t=1618

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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 (day trading, swing trading, position trading) and reactions to the markets...something I can not get from my broker statements alone.

U.S. Market Wrap

Oct. 5 (Bloomberg) -- Bloomberg's Deborah Kostroun reports on the performance of the U.S. equity market today. U.S. stocks erased gains, after an early rally among benchmark indexes, as optimism about an unexpected drop in the American unemployment rate faded and Apple Inc. shares slumped.

Stocks End Mixed As Jobs Boost Fades

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

NEW YORK (CNNMoney) -- U.S. stocks continued to march higher this week, with the Dow and S&P 500 flirting with five-year highs. But a cloudy outlook for the global economy remains a significant drag on the market.

Despite a better-than-expected report on the U.S. job market, stocks faltered late Friday to end mixed. The Dow Jones industrial average added 0.2%, while the Nasdaq fell 0.4%. The S&P 500 ended little changed.

For the week, however, the major gauges all advanced about 1%. Following this year's gains, the Dow and S&P 500 are trading near their highest levels since 2007, while the Nasdaq continues to trade at levels that it last hit in 2000.

The Labor Department's monthly report showed employers added 114,000 jobs in September, better than the 110,000 economists surveyed by CNNMoney had expected. And the unemployment rate dropped to 7.8%, falling below 8% for the first time since early 2009.

One strategist noted that the job news was good, but not good enough to make investors forget that the economy is still growing at a sluggish pace.

* Stock correction may be coming

"The bottom line is that the economy appears to be grinding along at a pace that is universally unsatisfying, and well short of the pace needed to ramp up the still lackluster pace of job creation and promote better household income growth," said Jim Baird, chief investment strategist for Plante Moran Financial Advisors, in a note to clients.

Investors are also concerned the U.S. economy could fall off the so-called fiscal cliff of federal spending cuts and tax hikes if Congress fails to act.

In addition, the debt crisis in Europe, where Spain and Greece are facing serious challenges, is still a threat. China's economy has also shown signs of slowing down, raising worries about one of the main drivers of global growth.

Meanwhile, the U.S. government logged a $1.1 trillion deficit in fiscal year 2012 -- marking the fourth straight year of trillion-dollar shortfalls, according to the Congressional Budget Office.

The Federal Reserve said consumer credit increased $18.1 billion in August. Economists had expected consumer borrowing to have increased $5 billion, according to a survey of analysts by Briefing.com.

* Video - El-Erian: Five global risks to grasp

Companies: Shares of social gaming firm Zynga (ZNGA) plunged 12%, following the company's announcement that it was lowering its 2012 guidance.

Avon Products (AVP, Fortune 500) shares rose 6% after Andrea Jung, the company's former CEO, resigned her post as executive chairman.

Facebook (FB) shares shed nearly 5%, a day after company declared 1 billion people use Facebook.

Shares of Sprint (S, Fortune 500) rallied more than 2% following reports that the company may be seeking a competing big for MetroPCS (PCS, Fortune 500).

* Behind Iran's currency crash

World Markets: European markets ended higher. Britain's FTSE 100 rose 0.7%, the DAX in Germany added 1.3% and France's CAC 40 gained 1.6%.

Asian markets posted gains for the day. The Hang Seng in Hong Kong rose 0.5%, while Japan's Nikkei ended 0.4% higher. Markets in Shanghai were closed this week for a holiday.

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

Oil for November delivery fell $1.83 to end at $89.88 a barrel.

Gold futures for December delivery dropped $15.70 to settle at $1,780.80 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury fell, pushing up the yield to 1.72% from 1.66% from late Thursday. The bond market will be closed Monday for the Columbus Day holiday.

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Market Update

4:20 pm : Equities began the day on a higher note despite mixed jobs data. After reaching session highs within the first hour, the major averages reversed and spent the remainder of the day sliding towards the unchanged level. As a result, the S&P 500 ended flat while the Dow advanced 0.3% to close at its best level in five years.

Nonfarm payrolls were reported at 114K versus the 120K Briefing.com consensus. The prior reading was revised up to 142K from 96K. Meanwhile, nonfarm private payrolls added 104K against the 130K consensus. The unemployment rate was reported at 7.8% versus the 8.1% consensus.

In addition, hourly earnings increased by 0.3% while the expectations called for an uptick of 0.2%. Lastly, average workweek ticked up to 34.5 from 34.4.

The materials sector led the way. Within the group, steel producers outperformed. AK Steel (AKS 4.87, +0.05) and Steel Dynamics (STLD 11.91, +0.18) added 1.0% and 1.5%, respectively.

Telecom stocks were the biggest laggard. However, the underperformance was due to notable weakness in a single stock. Inteliquent (IQNT 7.70, -1.36) fell 15.0% after Robert W. Baird downgraded the stock from ‘outperform' to ‘neutral' and lowered its price target from $15 to $10. Originally, Robert W. Baird upgraded the stock in the spring on the expectation of a financial engineering catalyst. Although that catalyst was achieved, the firm says results have unfortunately deteriorated more than expected and there now appears to be increased material risk to forward estimates.

Other telecom names were generally higher and the iShares Dow Jones US Telecom ETF (IYZ 25.76, +0.16) added 0.6%. Two sector components which have been in the headlines recently showed gains. Leap Wireless (LEAP 6.18, +0.33) and Sprint (S 5.20, +0.11) gained between 2.2% and 5.6%. Earlier, reports suggested that Sprint plans on holding a second meeting to discuss a possible offer for MetroPCS (PCS 12.65, -0.04).

The Dow Jones Transportation Average continued its recent streak of outperformance and settled higher by 0.7%. Within the bellwether complex, 16 out of 20 stocks advanced and trucking stocks were the top performers. Con-Way (CNW 27.98, +0.27), CH Robinson (CHRW 60.31, +0.41), JB Hunt (JBHT 55.20, +0.94), and Landstar (LSTR 48.96, +0.58) all posted gains between 0.7% and 1.7%.

Southwest Airlines (LUV 8.97, -0.13) was the main decliner among transportation stocks, down 1.4%.

Despite weakness in Southwest, other air carriers outperformed. China Eastern Airlines (CEA 16.08, +0.28) advanced 1.8% while United Airlines (UAL 21.07, +0.26) added 1.3%.

Solar stocks were under pressure after Avian Securities downgraded First Solar (FSLR 20.07, -2.48) from ‘positive' to ‘negative.' The downgrade results from reliability issues related to the junction box on modules supplied by First Solar. The company commented on the issue by saying approximately 232,000 modules may develop loose cord plates over time, but the issue is not expected to have a material impact on earnings. As a result, FSLR slid 11.0%.

Other solar stocks also showed weakness as the Guggenheim Solar ETF (TAN 16.52, -0.49) settled lower by 2.9%.

Consumer credit increased by $18.1 billion in August. This follows prior month's reading of a $3.3 billion decrease, and is higher than the $5.0 billion that had been broadly expected among economists polled by Briefing.com.

There is no economic data of note scheduled to be released on Monday or Tuesday of next week. Note that the bond market will be closed on Monday in observance of Columbus Day. The stock market, however, will be open.

Week in Review: Stocks Climb Higher Despite Macroeconomic Headwinds

Monday's session started with an extension of the bullish sentiment observed in overseas action. Following a higher open, U.S. equities got an additional boost from the ISM Index which was reported at 51.5 against the expectations of a 49.7 reading. After rallying to session highs, the Dow held the bulk of its gains, while the S&P 500 and Nasdaq spent the remainder of the session in a slow retreat towards the unchanged line. As a result, the Dow climbed 0.6%, the S&P 500 added 0.3%, and the Nasdaq slipped 0.1%. Healthcare Services Group (HCSG 23.76, +0.22) gained 4.2% after UBS initiated coverage of the stock with a ‘buy' rating.

On Tuesday, the major averages got off to a strong start, but the bullish bias faded shortly after the open. Headlines out of Europe provided another risk-off signal as reports suggested that a Spanish aid request is not imminent. After marking their session highs during the first five minutes of trade, the key indices spent most of the session trending lower. However, a rally in the final hour of trading lifted the S&P 500 and Nasdaq into positive territory while the Dow closed with a small loss of 0.2%. Biotech stocks showed strength and the iShares Nasdaq Biotechnology ETF (IBB 147.18, +0.36) added 1.1%.

Wednesday's session began lower as the major averages showed indecision in the early going. After chopping around the flat line during the first hour of trade, the key indices reached their session highs at the midway point. Unable to hold those levels, stocks returned to the middle of the day's range before buyers re-emerged in the final hour. As a result, the S&P 500 added 0.4%. Netflix (NFLX 66.56, -0.11) jumped 10.8% after Citigroup pointed to a survey which showed an improvement in customer satisfaction.

On Thursday, stocks began the day with a bullish bias. The rally reached session highs 30 minutes after the open when the August factory orders report indicated a 5.2% decrease. The number was not positive in itself, posting its worst reading since January 2009. However, it was better-than-feared as expectations called for a 6.0% pullback. After marking session highs, stocks spent the remainder of the day hovering near those levels. As a result, the S&P 500 closed with a gain of 0.7%. The financial sector was the top performer, and the SPDR Financial Select Sector ETF (XLF 16.06, 0.00) settled higher by 1.5%.DJ30 +34.79 NASDAQ -13.27 SP500 -0.47 NASDAQ Adv/Vol/Dec 1121/1.57 bln/1330 NYSE Adv/Vol/Dec 1700/606.0 mln/1288

3:30 pm : Crude oil fell deeper into the red in today's floor trade despite a quick pop in electronic trade following this morning's mixed jobs report. It slid from its session high of $91.20 per barrel and touched a session low of $89.01 per barrel in afternoon action. The energy component settled the week 2.5% lower at $89.87 per barrel following volatile swings in previous sessions that were fueled by inventory and output data, weak economic reports out of Europe and China, and escalated tensions between Turkey and Syria.

Natural gas fell to a session low of $3.34 per MMBtu, but a rally heading into the close helped push prices up to close at $3.40 per MMBtu. Despite today's weakness, natural gas booked a 2.4% gain for the week.

Precious metals struggled in negative territory during today's pit trade despite a drop by the dollar following the jobs data. Both gold and silver plunged to their respective session lows of $1774.50 per ounce and $34.31 per ounce moments after the report was released. Both metals then inched slightly higher but gave up momentum in afternoon action and settled just above their session lows. Despite today's loss as it settled at $1780.80 per ounce, gold managed to book a 0.4% gain for the week after getting a boost during yesterday's session from the ECB's decision to leave rates unchanged . Silver closed the week 0.1% lower at $34.56 per ounce.DJ30 +5.90 NASDAQ -15.32 SP500 -2.64 NASDAQ Adv/Vol/Dec 1131/1312.8 mln/1315 NYSE Adv/Vol/Dec 1614/400 mln/1348

3:05 pm : Entering the final hour of trade, the key indices are hovering around their respective unchanged levels. The S&P 500 is down 0.1% while the Dow is higher by 0.1%.

According to recent reports, consumer credit increased by $18.1 billion in August. This follows prior month's reading of a $3.3 billion decrease, and is higher than the $5.0 billion that had been broadly expected among economists polled by Briefing.com.DJ30 +15.53 NASDAQ -12.23 SP500 -1.65 NASDAQ Adv/Vol/Dec 1195/1.18 bln/1243 NYSE Adv/Vol/Dec 1684/358.1 mln/1265

2:30 pm : Equities are continuing their retreat towards the unchanged line. The S&P 500 is up 0.2%.

Provider of cloud-based truck-fleet intelligence Fleetmatics (FLTX 22.67, +5.67) made its public debut today. After pricing the initial public offering at $17 per share, the stock opened for trading at $22.85. Currently, shares of FLTX are trading higher by 33.4%.DJ30 +40.55 NASDAQ -2.65 SP500 +2.18 NASDAQ Adv/Vol/Dec 1355/1.08 bln/1091 NYSE Adv/Vol/Dec 1928/324.1 mln/1019

2:00 pm : Equities continue to trend lower and the S&P 500 is up 0.2%. Meanwhile, the Nasdaq is trading flat as it underperforms.

Solar stocks are under pressure after Avian Securities downgraded First Solar (FSLR 20.12, -2.42) from ‘positive' to ‘negative.' The downgrade results from reliability issues related to the junction box on modules supplied by First Solar. The company commented on the issue by saying approximately 232,000 modules may develop loose cord plates over time, but the issue is not expected to have a material impact on earnings. As a result, FSLR is down 10.8%.

Other solar stocks are also showing weakness as the Guggenheim Solar ETF (TAN 16.57, -0.43) trades lower by 2.3%.DJ30 +43.50 NASDAQ -0.43 SP500 +2.83 NASDAQ Adv/Vol/Dec 1378/1.01 bln/1047 NYSE Adv/Vol/Dec 1956/301.1 mln/977

1:30 pm : The major averages are headed for fresh session lows as the S&P 500 is up 0.2%.

The Dow Jones Transportation Average is higher by 1.2% as it extends its recent streak of outperformance. Within the bellwether complex, 19 out of 20 stocks are advancing and trucking stocks are the top performers. Con-Way (CNW 28.09, +0.38), CH Robinson (CHRW 60.67, +0.77), JB Hunt (JBHT 55.21, +0.95), and Landstar (LSTR 49.20, +0.82) are all up between 1.2% and 1.7%.

Southwest Airlines (LUV 8.93, -0.17) is the only decliner among transportation stocks, down 1.9%.DJ30 +48.34 NASDAQ -0.79 SP500 +3.37 NASDAQ Adv/Vol/Dec 1382/934.1 mln/1016 NYSE Adv/Vol/Dec 2018/280.1 mln/942

1:00 pm : Stocks got off to a strong start after markets responded favorably to this morning's mixed jobs data. The key indices reached their session highs within the first hour of trade, before slipping back to their opening levels. At midday, the S&P 500 is higher by 0.3%.

Nonfarm payrolls were reported at 114K versus the 120K Briefing.com consensus. The prior reading was revised up to 142K from 96K. Meanwhile, nonfarm private payrolls added 104K against the 130K consensus. The unemployment rate was reported at 7.8% versus the 8.1% consensus.

Also of note, hourly earnings increased by 0.3% while the expectations called for an uptick of 0.2%. Lastly, average workweek ticked up to 34.5 from 34.4.

The materials sector is leading the way. Within the group, companies specializing in construction materials are outperforming. Texas Industries (TXI 42.56, +0.74) and Vulcan Materials (VMC 48.59, +0.63) are showing respective gains of 1.7% and 1.3%. Steel and aluminum producers are also advancing. AK Steel (AKS 4.91, +0.09) and Steel Dynamics (STLD 11.91, +0.18) are adding between 1.5% and 2.0%.

Telecom stocks are the biggest laggard. However, the underperformance is due to notable weakness in a single stock. Inteliquent (IQNT 7.82, -1.24) is down 13.7% after Robert W. Baird downgraded the stock from ‘outperform' to ‘neutral' and lowered its price target from $15 to $10. Originally, Robert W. Baird upgraded the stock in the spring on the expectation of a financial engineering catalyst. Although that catalyst was achieved, the firm says results have unfortunately deteriorated more than expected and there now appears to be increased material risk to forward estimates.

Other telecom names are generally higher and the iShares Dow Jones US Telecom ETF (IYZ 25.86, +0.26) is adding 1.0%. Two sector components which have been in the headlines recently are displaying strength. Leap Wireless (LEAP 6.16, +0.31) and Sprint (S 5.21, +0.12) are showing gains between 2.3% and 5.5%. Earlier, reports suggested that Sprint plans on holding a second meeting to discuss a possible offer for MetroPCS (PCS 12.70, +0.01).

Homebuilders are broadly stronger as demonstrated by the SPDR S&P Homebuilders ETF (XHB 26.00, +0.43) which is up 1.7%. Among individual builder stocks, Standard Pacific (SPF 7.39, +0.19) and Ryland Group (RYL 32.26, +0.59) are higher by 2.6% and 1.9%, respectively.

Home improvement stores are also showing similar strength. Home Depot (HD 62.92, +1.18) is adding 1.9% while Lowe's (LOW 31.93, +0.98) is advancing 3.2%.

One more economic report remains on this week's calendar as consumer credit will be released at 15:00 ET.DJ30 +60.54 NASDAQ +4.85 SP500 +5.47 NASDAQ Adv/Vol/Dec 1503/860.9 mln/901 NYSE Adv/Vol/Dec 2119/259.8 mln/821

12:30 pm : The key averages continue to trend lower while setting fresh session lows. The S&P is up 0.3%.

With crude oil sliding 2.9%, airline stocks are moving higher. China Eastern Airlines (CEA 16.24, +0.44) is higher by 2.8% while US Airways (LCC 11.78, +0.11) and United Airlines (UAL 21.05, +0.24) are both adding near 1.0%. Meanwhile, Southwest Airlines (LUV 8.99, -0.10) is missing out on the rally as the stock trades lower by 1.1%.DJ30 +60.21 NASDAQ +3.25 SP500 +5.40 NASDAQ Adv/Vol/Dec 1507/188.3 mln/887 NYSE Adv/Vol/Dec 2157/240.8 mln/761

12:00 pm : The major averages are probing their session lows as the S&P trades up 0.4%.

Telecom stocks are the biggest laggard. However, the underperformance is due to notable weakness in a single stock. Inteliquent (IQNT 7.75, -1.31) is down 14.5% after Robert W. Baird downgraded the stock from ‘outperform' to ‘neutral' and lowered its price target from $15 to $10. Originally, Robert W. Baird upgraded the stock in the spring on the expectation of a financial engineering catalyst. Although that catalyst was achieved, the firm says results have unfortunately deteriorated more than expected and there now appears to be increased material risk to forward estimates.

Other telecom names are generally higher and the iShares Dow Jones US Telecom ETF (IYZ 25.85, +0.25) is adding 1.0%. Three sector components which have been in the headlines recently are all showing gains. MetroPCS (PCS 12.85, +0.16) is higher by 1.3% while Leap Wireless (LEAP 6.20, +0.35) and Sprint (S 5.24, +0.15) are showing gains between 3.0% and 6.0%. Earlier, reports suggested that Sprint plans on holding a second meeting to discuss a possible offer for MetroPCS.DJ30 +54.91 NASDAQ +4.74 SP500 +5.03 NASDAQ Adv/Vol/Dec 1503/708.4 mln/857 NYSE Adv/Vol/Dec 2160/216.3 mln/748

11:30 am : Stocks continue to hold their morning levels as the S&P 500 trades higher by 0.4%.

The materials sector is the top performer. Within the group, companies specializing in construction materials are outperforming. Texas Industries (TXI 42.93, +1.11) and Vulcan Materials (VMC 49.36, +1.40) are showing respective gains of 2.7% and 2.9%.

Steel and aluminum producers are also rallying. AK Steel (AKS 4.91, +0.09) and Century Aluminum (CENX 7.50, +0.11) are adding between 1.5% and 2.3%. Meanwhile, United States Steel (X 19.81, +0.09) is up 0.5% and its gains are coinciding with renewed takeover chatter.DJ30 +54.60 NASDAQ +9.40 SP500 +5.64 NASDAQ Adv/Vol/Dec 1585/619.6 mln/730 NYSE Adv/Vol/Dec 2197/191.3 mln/670

11:00 am : The major averages are hovering near their opening levels. The S&P 500 is up 0.5%.

Homebuilders are broadly stronger as demonstrated by the SPDR S&P Homebuilders ETF (XHB 26.08, +0.52) which is up 2.1%. Among individual builder stocks, Standard Pacific (SPF 7.47, +0.27) and PulteGroup (PHM 16.95, +0.37) are higher by 3.9% and 2.2%, respectively.

Home improvement stores are also showing similar strength. Home Depot (HD 62.74, +1.00) is adding 1.6% while Lowe's (LOW 31.86, +0.91) is advancing 3.0%.DJ30 +65.14 NASDAQ +11.49 SP500 +6.87 NASDAQ Adv/Vol/Dec 1651/522.3 mln/646 NYSE Adv/Vol/Dec 2253/165.1 mln/594

10:35 am : Commodities are trading mostly lower despite this downtrend we are seeing in the dollar index. Nov crude oil futures have been in the red all session and just hit a new session low of $90.01/barrel. In current trade, oil is -1.7% at $90.20/barrel.

Nov natural gas is more choppy this morning and is currently -0.5% at $3.39/MMBtu.

Precious metals have been in negative territory all session so far, selling off sharply earlier following the jobs numbers. Both gold and silver have just about recovered all of those losses since they tanked. Dec gold is now -0.4% at $1788.80/oz and Dec silver is -0.5% at $34.93/oz.DJ30 +84.53 NASDAQ +21.82 SP500 +9.40 NASDAQ Adv/Vol/Dec 1673/413.2 mln/560 NYSE Adv/Vol/Dec 2317/136 mln/497

10:00 am : The major averages are hovering just beneath their respective session highs. The S&P 500 is up 0.5%.

The financial sector is one of the top performers as high-beta stocks benefit from the broad market advance. The SPDR Financial Select Sector ETF (XLF 16.21, +0.14) is higher by 0.8% with most major names showing strength. Bank of America (BAC 9.60, +0.19) and Citigroup (C 35.64, +0.68) are both up near 2.0%. Meanwhile, American Express (AXP 58.50, +0.13) is adding 0.2% as it underperforms its peers.

European financials are also higher across the board. Barclays (BCS 14.77, +0.35) and Banco Bilbao Vizcaya Argentaria (BBVA 8.00, +0.17) are showing respective gains of 2.4% and 2.2%.DJ30 +58.90 NASDAQ +14.77 SP500 +7.19 NASDAQ Adv/Vol/Dec 1509/247.6 mln/661 NYSE Adv/Vol/Dec 2092/95.8 mln/620

09:45 am : Stocks have held their opening gains and the S&P 500 trades higher by 0.4%.

High beta sectors are leading the way as materials, industrials and financials outperform.

The telecom sector is the biggest laggard, down 0.6%. Meanwhile, utilities, and consumer staples are also showing relative weakness in the early going.

Owens-Illinois (OI 20.51, +1.15) is up 6.0% as it leads the S&P 500. The strength comes after Goldman upgraded the shares from ‘neutral' to ‘buy.'DJ30 +44.00 NASDAQ +9.37 SP500 +5.46 NASDAQ Adv/Vol/Dec 1390/165.4 mln/712 NYSE Adv/Vol/Dec 1991/75.7 mln/655

09:16 am : [BRIEFING.COM] S&P futures vs fair value: +8.40. Nasdaq futures vs fair value: +16.30. Heading into the open, equity futures are higher by 0.5%.

Financial stocks are poised for a higher open. Bank of America (BAC 9.58, +0.17), Citigroup (C 35.38, +0.42), and Morgan Stanley (MS 17.80, +0.33) are adding between 1.2% and 1.9%.

Likewise, producers of basic materials are broadly higher in pre-market. Alpha Natural Resources (ANR 6.84, +0.11), AK Steel (AKS 4.90, +0.08), and Cliffs Natural Resources (CLF 38.50, +0.65) are all up near 1.6%.

Consumer credit will be reported at 15:00 ET.

09:00 am : [BRIEFING.COM] S&P futures vs fair value: +7.00. Nasdaq futures vs fair value: +13.80. U.S. equity futures are higher by 0.5% after the release of the latest jobs data.

In Europe, a handful of data points crossed the wires. Germany reported a 1.3% decrease in last month's factory orders which was worse than the expected 0.5% decline. Spain's industrial production shrunk by 3.2% on a yearly basis. The negative reading was better-than-feared as expectations called for a 5.5% contraction. Lastly, the Eurozone second quarter final GDP remained unrevised, indicating a 0.2% contraction in the region's economy. Elsewhere, global growth forecasts continue to come down as the IMF lowered its expectations for worldwide growth in 2012 by 10 basis points, to +3.3%. In addition, the 2013 forecast was trimmed by 30 basis points to +3.6%.

Reports out of the region are giving some color on the European Central Bank's Outright Monetary Transactions program. The Central Bank is expected to engage in purchasing sovereign debt for a period of 1-2 months before pausing to reassess the situation. Signs also point to Bundesbank participation, despite its opposition. However, both the European Central Bank and Germany's Bundesbank declined to comment. Spain's 10-yr yield responded favorably to the reports by slipping 15 basis points, to 5.760%.

France's CAC is up 1.5% with financials outperforming. Societe Generale and BNP Paribas are higher by 3.4% and 3.0%, respectively. Meanwhile, consumer stocks are lagging. Cie Generale d'Optique and Accor are both down 0.4%.

Germany's DAX is higher by 1.2% as car makers show relative strength. BMW, Daimler, and Volkswagen are all adding between 1.6% and 2.3%. Only five DAX components are declining and chemical producer Lanxess is the biggest laggard, down 1.5%.

In the United Kingdom, the FTSE is adding 0.7% and miners are rallying broadly. Eurasian Natural Resources is spiking 6.9% while Kazakhmys, Vedanta Resources, and Evraz are all up between 3.8% and 5.2%. On the downside, consumer stocks are showing weakness. Tesco and Next are down 2.9% and 1.1%, respectively.

The major Asian bourses were mostly higher as markets took their cue from yesterday's solid gains on Wall Street. The Bank of Japan opined overnight, opting to keep both its key rate and asset purchase programs unchanged at their respective less than 0.10% and JPY80 trillion. India's Nifty 50 was halted for 15 minutes after a flash crash of 15% occurred in a matter of seconds. Several heavyweights were down as much as 20% before trading was halted. The Index reopened, and finished with a loss of 0.7%. Data from the region showed Taiwan's CPI climb 3.0% year-over-year (3.4% previous) and the Philippines CPI slip 0.1% month-over-month (0.8% previous). Elsewhere, Malaysia's trade surplus widened to $7.1 billion ($6.2 billion expected, $3.6 billion previous).

In Japan, the Nikkei closed up 0.4% to end at a one-week high. Auto shares were under pressure as worries over Chinese sales mount. Toyota Motor and Honda Motor fell 1.6% and 0.5% respectively. Elsewhere, retailer Seven & I Holdings shed 4.2% after lowering its annual growth outlook.

Hong Kong's Hang Seng gained 0.5% to close at its best level in five months. Large cap Chinese companies paced the advance as Citic Pacific surged 5.2% and aluminum marker Chalco jumped 3.1%.

In China, the Shanghai Composite was closed.

08:33 am : [BRIEFING.COM] S&P futures vs fair value: +7.00. Nasdaq futures vs fair value: +11.80. Futures have seen a positive initial reaction to the September employment data, which was mixed. The S&P 500 futures are up 0.5%.

Nonfarm payrolls came in at 114K versus the 120K Briefing.com consensus. The prior reading was revised up to 142K from 96K. Nonfarm private payrolls added 104K against the 130K consensus. The unemployment rate was reported at 7.8% versus the 8.1% consensus.

Hourly earnings increased by 0.3% while the expectations called for an uptick of 0.2%. Lastly, average workweek ticked up to 34.5 from 34.4.

08:02 am : [BRIEFING.COM] S&P futures vs fair value: +3.80. Nasdaq futures vs fair value: +7.00. U.S. equity futures are modestly higher ahead of this morning's nonfarm payrolls report. The highly-anticipated set of data will be released at 8:30 ET. The Briefing.com consensus calls for nonfarm payrolls to increase by 120K, up from last month's increase of 96K.

Overnight, the global equity markets continued to drift higher, albeit on low volumes. In Asia, the Bank of Japan held off on making additional moves to boost asset purchases. However, speculation regarding a possible move at the Central Bank's next meeting later this month is already mounting. Also of note, today marks the last day that the Shanghai Composite will be closed for the Golden Week. Asian indices posted modest gains as Japan's Nikkei gained 0.4% and Hong Kong's Hang Seng settled higher by 0.5%.

In Europe, a handful of data points crossed. Germany reported a 1.3% decrease in last month's factory orders. This number was worse than the expected 0.5% decline. In addition, Spain's industrial production shrunk by 3.2% on a yearly basis. The negative reading was better-than-feared as expectations called for a 5.5% contraction. Lastly, the Eurozone second quarter final GDP remained unrevised, indicating a 0.2% contraction in the region's economy. Elsewhere, global growth forecasts continue to come down as the IMF lowered its expectations for worldwide growth in 2012 by 10 basis points, to +3.3%. In addition, the 2013 forecast was trimmed by 30 basis points to +3.6%.

Reports out of Europe are giving some color on the European Central Bank's Outright Monetary Transactions program. The ECB is expected to engage in purchasing sovereign debt for a period of 1-2 months before pausing to reassess the situation. Signs also point to Bundesbank participation, despite its opposition. However, both the European Central Bank and Germany's Bundesbank declined to comment. At midday, France's CAC is up 1.1%, Germany's DAX is higher by 0.8%, and UK's FTSE is adding 0.5%.

In U.S. corporate news, technology companies continue to lower their third quarter guidance.

Zynga (ZNGA 2.20, -0.61) is sliding 21.9% after cutting its third quarter earnings and revenue estimates. In addition, the company also cut its full-year 2012 outlook. Following the guidance update, Robert W. Baird downgraded the shares to ‘neutral' and lowered the price target from $6 to $3. Peer, Facebook (FB 21.30, -0.65) is down 3.0% in sympathy.

Datalink (DTLK 7.35, -1.23) is another victim of sluggish demand. The stock is down 14.3% after the network infrastructure provider lowered its third quarter guidance due to customers remaining "cautious regarding large capital expenditures, especially with the uncertainty surrounding the current economic environment."

In addition to nonfarm payrolls, nonfarm private payrolls, the unemployment rate, hourly earnings, and average workweek will all be released at 8:30 ET. Lastly, consumer credit data will be reported at 15:00 ET.

06:20 am : [BRIEFING.COM] S&P futures vs fair value: +1.50. Nasdaq futures vs fair value: +4.00.

06:20 am : Nikkei...8863.30...+38.70...+0.40%. Hang Seng...21012.38...+104.40...+0.50%.

06:20 am : FTSE...5852.81...+28.00...+0.40%. DAX...7345.63...+45.20...+0.50%.

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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