TheStrategyLab.com Price Action Trading Support Forum

Forum for price action traders that want to learn WRB Analysis basic tutorial chapters 1, 2 and 3 prior to purchasing our advance trade methods. Hashtags: #wrbanalysis #wrbzone #wrbhiddengap #priceaction #trading
It is currently Thu Mar 28, 2024 3:02 pm

All times are UTC - 5 hours [ DST ]




Post new topic Reply to topic  [ 1 post ] 
Author Message
 Post subject: October 9th Tuesday TF & 6E Futures $1530.00
PostPosted: Tue Oct 09, 2012 9:19 pm 
Offline
Site Admin

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

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

Attachment:
100912-wrbtrader-Price-Action-Trading-PnL-Blotter-Profit+1530.00.png
100912-wrbtrader-Price-Action-Trading-PnL-Blotter-Profit+1530.00.png [ 74.81 KiB | Viewed 290 times ]

click on the above image to view today's performance verification

Price Action Trade Performance for Today: Emini TF ($TF_F) futures @ $2430.00 dollars or +24.30 points and EuroFX 6E futures @ ($900.00) dollars or -72 ticks. Total Profit @ $1530.00 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 = $10.00 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=1340

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

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

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. 9 (Bloomberg) -- Bloomberg's Deborah Kostroun reports on the performance of the U.S. equity market today. U.S. stocks dropped, sending the Standard & Poor’s 500 Index lower for a third day, after the International Monetary Fund cut estimates for global growth and investors awaited quarterly results from Alcoa Inc.

Stocks Retreat Ahead of Earnings

Attachment:
100912-Key-Price-Action-Markets.png
100912-Key-Price-Action-Markets.png [ 527.83 KiB | Viewed 275 times ]

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

NEW YORK (CNNMoney) -- U.S. stocks fell Tuesday as investors gear up for the unofficial start of the third-quarter earnings season but despite the day's weakness, the Dow and S&P 500 continue to hover near five-year highs.

In fact, the Dow is about 5% away from its all-time closing peak of 14,164.53, reached exactly five years ago today, while the S&P 500 is about 8% away from its record closing high of 1,565.15. The Nasdaq has been trading near its highest levels since November 2000, but has a way to go before it reaches its record high above 5,000 reached in March 2000.

Stocks have made a considerable comeback after hitting lows in March 2009 following the financial crisis. The gains have been largely fueled by stimulus measures from the Federal Reserve, as well as strengthening balance sheets in Corporate America.

But slowing global growth and debt problems in Europe and the United States -- particularly the looming U.S. fiscal cliff -- are causing investors to worry that the rally has come to an end for now.

* The stock market rally is over

Corporate America will be back in the spotlight over the next few weeks as companies open up their books. Analysts are expecting third-quarter earnings for the S&P 500 to decline 1.2%, according to S&P Capital IQ. That would be the worst result for stocks since the third quarter of 2009.

Aluminum producer Alcoa (AA, Fortune 500), considered a bellwether of the economy because of its global reach, reported earnings and sales that topped forecasts after the closing bell. Shares rose about 1% after hours.

KFC and Taco Bell owner Yum Brands (YUM, Fortune 500) also reported results Tuesday. Sales missed forecasts but earnings beat estimates. Shares rose more than 3% after hours, a possible sigh of relief that the company, which has a big presence in China, reported same-store sales growth of 6% in China.

The week will culminate with the first big bank earnings: JPMorgan Chase (JPM, Fortune 500) and Wells Fargo (WFC, Fortune 500) are both set to report before the market opens on Friday.

Until investors get more clarity on both the earnings and economic front, trading will likely remain in a tight range. The Dow fell 0.8% Tuesday, while the S&P 500 declined 1% and the Nasdaq fell 1.5%.

* Fiscal cliff is 'ticking time bomb'

Tech stocks were among the biggest laggards, with Intel (INTC, Fortune 500), Microsoft (MSFT, Fortune 500), Netflix (NFLX) and Baidu (BIDU) all trading lower. Apple (AAPL, Fortune 500) shares traded down for a fourth straight day.

Some of the weakness was driven by the International Monetary Fund's discouraging forecast for global growth, said analysts at Wells Fargo Advisors. Late Monday, the IMF projected world economic growth of 3.3% this year, down 0.2% from its forecast in July. The IMF was also more pessimistic about 2013, expecting growth of only 3.6% -- down from its previous forecast of 3.9%.

It also said Italy, Spain and others will likely miss budget deficit targets this year.

* Don't panic! No worms in Apple stock

On Tuesday, European Central Bank President Mario Draghi testified before the European Parliament about Europe's debt problems. Draghi said eurozone interest rates are as low as they need to be, and he reiterated that the central bank was ready to start its new sovereign bond purchase program.

Both events put pressure on the euro, which edged below $1.30.

* Fear & Greed Index

Also Tuesday, German Chancellor Angela Merkel is due to meet with Greece Prime Minister Antonis Samaras, who has been seeking a two-year extension to implement tough austerity measures in order to secure the next round of bailout funds.

European stocks ended lower. Britain's FTSE 100 lost 0.5%, while the DAX in Germany and France's CAC 40 dropped 0.8%.

Asian markets ended mixed. The region welcomed the latest intervention by the People's Bank of China, which injected 265 billion yuan into money markets. But fears also persist over a China-Japan territorial dispute concerning a band of islands and the effect it's already starting to have on Japanese exports to China. The Shanghai Composite gained 1.97% and the Hang Seng in Hong Kong added 0.5%, while Japan's Nikkei shed 1%.

* Video - 5 years since the market's peak

Companies: Netflix (NFLX) shares tumbled following a downgrade by Bank of America (BAC, Fortune 500). Shares had risen 10% the previous day after an upgrade by Morgan Stanley (MS, Fortune 500).

Shares of Edwards Lifesciences (EW) sank a day after the medical device company revised down its quarterly sales forecast.

Shares of drugmaker Eli Lilly (LLY, Fortune 500) gained ground on news that its drug -- still in the testing phase -- could slow down memory decline in Alzheimer patients with mild symptoms.

Shares of Wells Fargo (WFC, Fortune 500) fell after the U.S. Attorney for the Southern District of New York Preet Bharara filed a civil lawsuit against the bank. The DOJ is seeking hundreds of millions of dollars in damages for what it alleges was mortgage fraud at the bank.

Commodities: Oil for November delivery rose $3.06 to $92.39 barrel.

Gold futures for December delivery fell $9.40 to settle at $1,765 an ounce.

Bonds: The price of the benchmark 10-year U.S. Treasury rose, pushing the yield down to 1.72% from 1.75% late Friday. The bond market was closed on Monday for the Columbus Day holiday.

Image

Market Update

4:15 pm : Equities started the day on a mixed note before a broad sell-off sent the major averages to their session lows. The weakness started in the technology sector where a slew of companies lowered their third quarter guidance. After reaching their worst levels of the day, the key indices traded sideways until late day selling coincided with reports the U.S. Attorney in Manhattan filed a civil mortgage fraud lawsuit against Wells Fargo (WFC 35.12, -0.68). The company has since come out and denied any wrongdoing. As a result, the S&P 500 fell 1.0% while the Nasdaq underperformed with a loss of 1.5%.

The technology sector was the biggest laggard. Early weakness resulted from Apple (AAPL 635.85, -2.32) slipping as much as 2.0% intraday. However, shares of the tech giant proved to be resilient as the stock reversed and closed with a loss of 0.4%. Despite the intraday recovery in Apple, the rest of the technology sector was unable to reclaim its losses.

Technology bellwether Intel (INTC 21.90, -0.61) slipped 2.7% after Bernstein downgraded the stock from ‘market perform' to ‘underperform.' It should be noted that today's selling dropped Intel to its 52-week low.

Netflix (NFLX 65.52, -7.99) slid 10.9% after Bank of America/Merrill Lynch downgraded the stock from ‘buy' to ‘underperform' with a $72 price target. The downgrade resulted from valuation questions following the recent rally as well as concerns over the company's domestic streaming business and its international profitability. Today's selling follows yesterday's 10.0% rally which resulted from a Morgan Stanley upgrade.

VASCO Data (VDSI 7.34, -1.60) adds to the list of technology companies who cut their third quarter outlook. The stock sank 17.9% after the company lowered its third quarter and full-year 2012 guidance below consensus. The company commented on the lowered guidance by saying that "the lower than expected order intake in Q3 requires [the company] to lower [its] estimates of full-year revenue and related operating margins."

The energy sector was the top performer as crude oil advanced 3.3%. Within the complex, Gulfport Energy (GPOR 32.65, +2.22) gained 7.3% after reaffirming its 2012 guidance. The company continues to estimate 2012 production to range from 2.9 million to 3.1 million.

Coal stocks were broadly higher and the Market Vectors Coal ETF (KOL 24.35, +0.38) added 1.6%. Among individual coal producers, Alpha Natural Resources (ANR 7.28, +0.50) advanced 7.4% while CONSOL Energy (CNX 33.11, +1.38) and Peabody Energy (BTU 23.93, +1.29) saw gains between 4.3% and 5.7%.

Meanwhile, Penn Virginia (PVA 5.49, -1.04) fell 15.9% after announcing concurrent public offerings of 12 million shares of common stock and $50 million of depositary shares representing convertible preferred equity.

The Dow Jones Transportation Average slid 1.1% to break its recent streak of outperformance. Airlines were among the weakest components as they erased a portion of their recent gains. Delta Air Lines (DAL 9.89, -0.24) slipped 2.4%, while Alaska Air (ALK 36.43, -0.52) and United Continental (UAL 20.49, -0.41) fell between 1.4% and 2.0%. Out of the twenty transportation stocks, only Matson (MATX 21.36, +0.38) advanced. Shares of the shipping company settled higher by 1.8%.

Chinese internet stocks were under pressure after Credit Suisse downgraded Baidu.com (BIDU 106.48, -7.80) from ‘neutral' to ‘underperform.' In addition, the price target was lowered from $118 to $83. As a result of the downgrade, Baidu.com slid 6.8%, and traded at levels last seen in early September.

Other Chinese internet names also declined in sympathy. SINA (SINA 60.36, -0.77), Sohu.com (SOHU 39.58, -1.12), and Youku Tudou (YOKU 19.16, -0.36) all registered losses between 1.2% and 2.8%.

Tomorrow, the MBA Mortgage Index will be reported at 7:00 ET. In addition, the September Treasury Budget and Federal Reserve's September Beige Book will be released at 14:00 ET.

The U.S. Treasury will hold a $21 billion, 10-yr reopening.DJ30 -110.12 NASDAQ -47.33 SP500 -14.40 NASDAQ Adv/Vol/Dec 542/1.59 bln/1935 NYSE Adv/Vol/Dec 694/612.5 mln/2348

3:30 pm : Crude oil extended overnight gains as escalated tension between Turkey and Syria overshadowed the IMF cutting its global growth forecast. The energy component came off its pit session low of $90.08 per barrel and steadily climbed to a session high of $92.91 per barrel before settling with a 3.2% gain at $92.41 per barrel.

Natural gas dipped to a session low of $3.35 per MMBtu in morning action. However, a reversal took prices into positive territory and to a session high of $3.51 per MMBtu as investors reacted to forecasts of a slightly colder turn in computer weather projections. Natural gas lost some steam as it headed into the close but still settled 1.8% higher at $3.46 per MMBtu.

Gold fell into negative territory as a stronger dollar put pressure on the yellow metal. It tumbled to a pit session low of $1762.00 per ounce after trading as high as $1780.20 per ounce in early morning action. Gold eventually settled 0.6% lower at $1765.70 per ounce. Silver also slid to a session low of $33.57 per ounce but managed to erase most of the loss by afternoon action. It closed pit trade at $33.99 per ounce, or 0.1% lower.DJ30 -100.24 NASDAQ -47.30 SP500 -13.30 NASDAQ Adv/Vol/Dec 575/1335.6 mln/1871 NYSE Adv/Vol/Dec 745/381 mln/2294

3:00 pm : Heading into the final hour of trade, the major averages continue to trade just above their session lows. The S&P 500 is down 0.7%.

After today's close, Alcoa (AA 9.23, +0.11) will kick-off the third quarter earnings season by reporting its results. Consensus estimates call for earnings of $0.01 on revenue of $5.572 billion. YUM! Brands (YUM 66.49, -0.45) is also scheduled to report. Analysts are expecting $0.97 in earnings on revenues of $3.643 billion.

Tomorrow, before the open Costco (COST 100.05, -1.30) and Progressive (PGR 21.79, -0.03) will announce their third quarter earnings. Costco is expected to earn $1.31 on $31.732 billion in revenues. Meanwhile, consensus calls for Progressive to report earnings of $0.26 on revenues of $4.166 billion.DJ30 -78.57 NASDAQ -38.51 SP500 -9.71 NASDAQ Adv/Vol/Dec 610/1.21 bln/1827 NYSE Adv/Vol/Dec 777/334.9 mln/2222

2:30 pm : Equities continue to hover near session lows and the S&P 500 is down 0.7%.

Financial stocks are trading lower, but the sector is outperforming the broader market. The SPDR Financial Select Sector ETF (XLF 16.00, -0.05) is off by 0.3%. Among the majors, Bank of America (BAC 9.25, -0.02), Citigroup (C 34.85, +0.07), and JPMorgan Chase (JPM 41.60, -0.06) are all hovering around their unchanged lines.

Meanwhile, European financials are broadly weaker. Deutsche Bank (DB 41.02, -0.80) and Banco Santander (SAN 7.47, -0.28) are down 1.9% and 3.7%, respectively.

Elsewhere in financials, Lazard (LAZ 29.28, -1.14) is down 3.8% after UBS initiated coverage of the stock with a ‘sell' rating and a price target of $25.DJ30 -78.82 NASDAQ -36.31 SP500 -9.41 NASDAQ Adv/Vol/Dec 589/1.1 bln/1841 NYSE Adv/Vol/Dec 720/306.7 mln/2260

2:00 pm : The major averages are holding their levels as the S&P 500 is down 0.7%.

Chinese internet stocks are under pressure after Credit Suisse downgraded Baidu.com (BIDU 106.62, -7.67) from ‘neutral' to ‘underperform.' In addition, the price target was lowered from $118 to $83. As a result of the downgrade, Baidu.com is sliding 6.7%, to trade at levels last seen in early September.

Other Chinese internet names are also seeing weakness. SINA (SINA 60.11, -1.02), Sohu.com (SOHU 39.62, -1.08), and Youku Tudou (YOKU 19.07, -0.45) are both down between 1.6% and 2.7%.DJ30 -81.75 NASDAQ -38.87 SP500 -10.48 NASDAQ Adv/Vol/Dec 560/1.02 bln/1843 NYSE Adv/Vol/Dec 689/279.7 mln/2285

1:30 pm : The major averages have remained range bound since falling to their session lows. The S&P 500 is off by 0.8%.

The Dow Jones Transportation Average is down 1.0% as it trails the broader market. Airlines are among the weakest components as they erase a portion of their recent gains. Delta Air Lines (DAL 9.90, -0.23) is lower by 2.3%, while Alaska Air (ALK 36.31, -0.64) and United Continental (UAL 20.53, -0.37) and both down near 1.7%. Out of the twenty transportation stocks, only Matson (MATX 21.37, +0.39) is advancing. Shares of the shipping company are higher by 1.9%.DJ30 -79.79 NASDAQ -40.53 SP500 -11.03 NASDAQ Adv/Vol/Dec 555/946.3 mln/1828 NYSE Adv/Vol/Dec 659/256.5 mln/2304

1:05 pm : Stocks got off to a quiet start before a broad-based sell-off took the major averages to their session lows. The decline was led by technology stocks which are seeing weakness ahead of the start of the third quarter earnings season. In addition, the move lower took the euro to a session low against the dollar. At midday, the S&P 500 is lower by 0.9%. Meanwhile, the Nasdaq is down 1.4% as it underperforms.

The biggest tech component, Apple (AAPL 631.76, -6.41) is down 1.0%. With today's selling, Apple has lost 10.0% since closing at its all-time high of $702.10 on September 19.

Intel (INTC 21.97, -0.53) is another tech bellwether seeing pressure. Shares of the processor maker are slipping 2.4% after Bernstein downgraded the stock from ‘market perform' to ‘underperform.' It should be noted that Intel now trades at its 52-week low.

Netflix (NFLX 67.74, -5.77) is sliding 7.9% after Bank of America/Merrill Lynch downgraded the shares from ‘buy' to ‘underperform' with a $72 price target. The downgrade results from valuation questions following the recent rally as well as concerns over the company's domestic streaming business and its international profitability. Today's weakness comes after the stock rallied over 10.0% yesterday on a Morgan Stanley upgrade.

Technology companies continue to cut their guidance ahead of reporting earnings in the upcoming weeks. VASCO Data (VDSI 6.87, -2.07) is sinking 23.2% after lowering its third quarter and full-year 2012 guidance below consensus. The company commented on the forecast cut by saying that "the lower than expected order intake in Q3 requires [the company] to lower [its] estimates of full-year revenue and related operating margins."

Lastly, networking stocks are broadly lower. F5 Networks (FFIV 102.00, -1.88), JDS Uniphase (JDSU 10.58, -0.30), and Juniper Networks (JNPR 16.49, -0.12) are all down between 0.7% and 2.8%.

The energy sector is the top performer as crude oil gains 3.2%. Within the complex, Gulfport Energy (GPOR 32.00, +1.57) is higher by 5.2% after reaffirming its 2012 guidance. The company continues to estimate 2012 production to range from 2.9 million to 3.1 million.

Coal stocks are broadly higher and the Market Vectors Coal ETF (KOL 24.17, +0.20) is adding 0.8%. Among individual coal producers, Alpha Natural Resources (ANR 7.12, +0.34) is advancing 5.1% while CONSOL Energy (CNX 32.63, +0.90) and Peabody Energy (BTU 23.35, +0.71) are showing gains between 2.8% and 3.2%.

Meanwhile, Penn Virginia (PVA 5.53, -1.00) is falling 15.3% after announcing concurrent public offerings of 12 million shares of common stock and $50 million of depositary shares representing convertible preferred equity.

Steel and iron ore stocks are showing strength as a group. This follows yesterday's news that iron ore prices in China rose 6% to $110.40/ton. Separately, Daily News & Analysis reported late yesterday that iron ore prices are expected to rise moderately due to the recent Indian Supreme Court order banning complete mining activities in Goa from Friday. Also, Bloomberg reported on Monday that China may demand an additional 45-55 million metric tons of iron ore in 2013. AK Steel (AKS 5.29, +0.19) and United States Steel (X 20.92, +0.55) are adding between 2.7% and 3.7% while Rio Tinto (RIO 48.35, +0.18) is higher by 0.4%.DJ30 -88.70 NASDAQ -42.25 SP500 -12.99 NASDAQ Adv/Vol/Dec 551/888.1 mln/1836 NYSE Adv/Vol/Dec 676/239.6 mln/2277

12:30 pm : The key indices are holding their recent levels and the S&P 500 is down 0.8%.

Looking at health care stocks, the SPDR Health Care Select Sector ETF (XLV 40.66, -0.48) is lower by 1.2% as it trails the broader market.

Edwards Lifesciences (EW 87.30, -20.11) is sliding 18.7% after the medical equipment supplier lowered its third quarter revenue expectations below consensus. The lower revenue forecast was attributed to slowing European demand.

AngioDynamics (ANGO 11.21, -1.61) is sinking 12.6% after the medical supply provider reported mixed earnings. While first quarter earnings and revenues were in-line, the full-year 2013 earnings forecast was lowered below consensus. Meanwhile, the company raised its full-year 2013 revenue expectations.

On the upside, Eli Lilly (LLY 52.16, +1.38) is gaining 2.7% after Goldman upgraded the stock from ‘sell' to ‘neutral.'DJ30 -81.72 NASDAQ -39.82 SP500 -10.66 NASDAQ Adv/Vol/Dec 530/800.5 mln/1819 NYSE Adv/Vol/Dec 694/215.5 mln/2226

12:00 pm : The major averages are holding their levels with the S&P 500 lower by 0.8%.

Steel and iron ore stocks are showing strength as a group. This follows yesterday's news that iron ore prices in China rose 6% to $110.40/ton. Separately, Daily News & Analysis reported late yesterday that iron ore prices are expected to rise moderately due to the recent Indian Supreme Court order banning complete mining activities in Goa from Friday. Also, Bloomberg reported on Monday that China may demand an additional 45-55 million metric tons of iron ore in 2013. AK Steel (AKS 5.28, +0.18) and United States Steel (X 20.87, +0.50) are adding between 2.4% and 3.5%, while Rio Tinto (RIO 48.52, +0.35) is higher by 0.7%.DJ30 -91.05 NASDAQ -45.22 SP500 -12.32 NASDAQ Adv/Vol/Dec 510/707.1 mln/1821 NYSE Adv/Vol/Dec 640/193.1 mln/2248

11:30 am : Equities are holding their levels after marking fresh session lows. The S&P 500 is down 0.9%.

The energy sector is the top performer as crude oil gains 2.1%. Within the complex, Gulfport Energy (GPOR 31.74, +1.31) is higher by 4.3% after reaffirming its 2012 guidance. The company continues to estimate 2012 production to range from 2.9 million to 3.1 million.

Coal stocks are broadly higher and the Market Vectors Coal ETF (KOL 24.10, +0.13) is adding 0.5%. Among individual coal producers, Alpha Natural Resources (ANR 7.11, +0.33) is advancing 4.9% while CONSOL Energy (CNX 32.68, +0.95) and Peabody Energy (BTU 23.39, +0.75) are showing gains between 3.0% and 3.3%.

Meanwhile, Penn Virginia (PVA 5.55, -0.98) is sinking 15.0% after announcing concurrent public offerings of 12 million shares of common stock and $50 million of depositary shares representing convertible preferred equity.DJ30 -90.92 NASDAQ -45.66 SP500 -12.03 NASDAQ Adv/Vol/Dec 505/602.1 mln/1794 NYSE Adv/Vol/Dec 633/168.9 mln/2256

11:00 am : The major averages have slipped to fresh session lows. The S&P 500 is down 0.7% while the Nasdaq is underperforming. The tech-heavy index is lower by 1.4%.

Technology stocks continue to show notable weakness as the earnings season nears. The biggest tech component Apple (AAPL 626.40, -11.77) is slipping 1.9%. With today's selling, Apple has lost 10.0% since closing at its all-time high of $702.10 on September 19.

Intel (INTC 21.93, -0.58) is another tech bellwether seeing pressure. Shares of the processor maker are sliding 2.6% after Bernstein downgraded the stock from ‘market perform' to ‘underperform.' It should be noted that Intel now trades at its 52-week low.

Netflix (NFLX 67.33, -6.18) is down 8.5% after Bank of America/Merrill Lynch downgraded the shares from ‘buy' to ‘underperform' with a $72 price target. The downgrade results from valuation questions following the recent rally as well as concerns over the company's domestic streaming business and its international profitability. Today's weakness comes after the stock rallied over 10.0% yesterday on a Morgan Stanley upgrade.

Technology companies continue to cut their guidance ahead of reporting earnings in the upcoming weeks. VASCO Data (VDSI 7.05, -1.89) is sinking 21.5% after lowering its third quarter and full-year 2012 guidance below consensus. The company commented on the guidance cut by saying that "the lower than expected order intake in Q3 requires [the company] to lower [its] estimates of full-year revenue and related operating margins."

Lastly, networking stocks are broadly lower. F5 Networks (FFIV 100.80, -3.08), JDS Uniphase (JDSU 10.58, -0.30), and Juniper Networks (JNPR 16.42, -0.19) are all down between 1.0% and 2.8%.DJ30 -69.01 NASDAQ -43.16 SP500 -10.04 NASDAQ Adv/Vol/Dec 553/481.2 mln/1701 NYSE Adv/Vol/Dec 719/139.1 mln/2115

10:35 am : Crude oil is rallying on concerns over Turkey/Syria tension after a pipeline blast halts gas flow from Iran to Turkey according to Balkans.com business news.

Despite cuts in economic growth expectations by the IMF, crude oil is trading higher this morning as tension between Turkey and Syria escalate. The concern is supply disruption from pipelines that are basically in the line of fire such as the pipeline blast that recently occurred. Crude rallied to a new HoD of $90.88/barrel a moment ago and is now +1.6% at $90.76/barrel.

Natural gas futures, on the other hand, are trading lower and have been in a downtrend all session. Natural gas just hit a new session low of $3.35 and is now -1.2% at $3.36/MMBtu.

Precious metals have been chopping around the unchanged line today. Dec gold is now +0.1% at $1776.80/oz and Dec silver is +0.2% at $34.08/oz. Dec copper is +0.5% at $3.74/lb.DJ30 -0.17 NASDAQ -21.35 SP500 -1.90 NASDAQ Adv/Vol/Dec 825/326.7 mln/1318 NYSE Adv/Vol/Dec 1247/103 mln/1515

10:00 am : After a failed rally to breakeven, the key indices have slipped back near their session lows. The S&P 500 is off by 0.2%.

Stanley Black & Decker (SWK 74.39, +0.16) has entered into a definitive agreement to sell its Hardware & Home Improvement Group to Spectrum Brands (SPB 46.10, +4.94) for $1.4 billion in cash. With 90% of HHI's revenue from North America and more than 50% of its revenue coming through U.S. home centers, the divestiture of HHI is a meaningful step in the continued diversification of Stanley Black & Decker's revenue streams and geographic footprint. As a result, SWK is showing little change while SPB is higher by 12.0%.DJ30 -13.94 NASDAQ -19.07 SP500 -2.61 NASDAQ Adv/Vol/Dec 777/193.7 mln/1281 NYSE Adv/Vol/Dec 1161/67.8 mln/1519

09:45 am : Equities did not extend their pre-market sentiment into the open. Instead, the key indices opened lower, and are currently attempting to return to the unchanged level. The S&P 500 is off by 0.1%.

Looking at the early sector alignment, energy, industrials, and materials are outperforming slightly. Meanwhile, the health care sector is the biggest laggard in the early going.

Note that Intel (INTC 22.12, -0.39) is down 1.7% as it trades at a fresh 52-week low. Earlier, the shares of the tech bellwether were downgraded by Bernstein from ‘market perform' to ‘underperform.'DJ30 -3.15 NASDAQ -8.50 SP500 -1.16 NASDAQ Adv/Vol/Dec 895/120.6 mln/1086 NYSE Adv/Vol/Dec 1324/51.8 mln/1294

09:16 am : [BRIEFING.COM] S&P futures vs fair value: +1.30. Nasdaq futures vs fair value: -5.80. As the start of the session nears, equity futures are pointing to a marginally higher open.

The traditionally risky sectors are poised to open on a positive note. In materials, Alpha Natural Resources (ANR 6.86, +0.08) and Cliffs Natural Resources (CLF 41.30, +0.72) are up between 1.2% and 1.8%.

Energy stocks also appear set to begin the session on a positive note. Consol Energy (CNX 32.20, +0.47) and EOG Resources (EOG111.39, +1.57) are both up near 1.4%.

09:01 am : [BRIEFING.COM] S&P futures vs fair value: +2.00. Nasdaq futures vs fair value: -4.00. Equity futures are hovering near their best pre-market levels as they point towards a slightly higher open.

A handful of technology stocks are moving on analyst comments. Netflix (NFLX 70.74, -2.78) is down 3.6% after Bank of America/Merrill Lynch downgraded the stock from ‘buy' to ‘underperform.' Note that Netflix rallied over 10.0% yesterday after being upgraded by Morgan Stanley.

Juniper Networks (JNPR 16.25, -0.36) is sliding 2.2% after Buckingham analysts initiated coverage of the stock with a ‘neutral' rating.

Intel (INTC 22.24, -0.27) is off by 1.2% after Bernstein downgraded the shares from ‘market perform' to ‘underperform.'

08:31 am : [BRIEFING.COM] S&P futures vs fair value: +2.10. Nasdaq futures vs fair value: -3.30. U.S. equity futures are pointing to a flat open.

European markets are mixed after retreating from their highs set around the open. Greece is back in the headlines as German Chancellor Angela Merkel visits the country for the first time since the onset of its debt crisis. Meanwhile, the Troika is projecting Greek debt to reach 150% of GDP in 2020, which is well above its target of 120%. Elsewhere, European Central Bank President Mario Draghi spoke to the European Parliament Panel in Brussels. His comments were mostly focused on articulating and defending the use of Outright Monetary Transactions. Mr. Draghi stated that the European Stability Mechanism and International Monetary Fund involvement would be sought before tapping the new program. He also mentioned the Central Bank is considering releasing the minutes from its meetings. Also of note, the Eurogroup approved Portugal's next tranche of aid.

France's CAC is adding 0.2% as industrial stocks pace the advance. Lafarge and Vinci are showing gains between 1.9% and 2.1%. On the downside, Alcatel-Lucent is sliding 6.4% after Credit Suisse reiterated its underperform recommendation. Today's selling has dropped Alcatel-Lucent to its lowest price since October 1989.

In Germany, the DAX is down 0.4% and utility stocks are showing weakness. E.ON and RWE are down 1.1% and 1.5%, respectively. Meanwhile, car makers are generally stronger as BMW and Volkswagen are advancing between 0.5% and 1.1%.

In the United Kingdom, the FTSE is off by 0.2% with consumer stocks showing weakness. Aggreko and Capita are both down near 3.0%. On the upside, miners are broadly stronger. Vedanta, Kazakhmys, Rio Tinto, and Anglo American are all up between 2.1% and 3.4%.

The major Asian bourses saw a mixed close as Chinese shares outperformed after the People's Bank of China added more liquidity into the system. China's Shanghai Composite surged 2.0% as traders rushed into shares on hopes Beijing will add more stimulus to ignite the slowing economy. Data in the region showed Japan's current account surplus widen to JPY0.72 trillion (JPY0.52 trillion expected) and Australia's NAB Business Confidence survey tick up to 0 from its previous reading of -3.

In Japan, the Nikkei slipped 1.1% as automakers were under pressure following their dismal Chinese sales. Suzuki Motor shed 2.1% after reports showed Chinese sales were down 42.5% year-over-year as Chinese consumers continue to avoid Japanese products. Nissan Motor and Toyota Motor were also weak, falling 2.1% and 1.9% respectively.

Hong Kong's Hang Seng added 0.5% as mainland financials and property names led the way. Bank of Communications jumped 3.4% and Henderson Land advanced 1.4% to lead their respective sectors.

China's Shanghai Composite settled higher by 2.0% as commodity-related names paced the advance. Siopec rallied 3.2% and Chalco tacked on 3.3%.

08:00 am : S&P futures vs fair value: +0.70. Nasdaq futures vs fair value: -6.00. U.S. equity futures are showing little change amid quiet pre-market trade.

Overnight, the global equity markets were mixed. The notable winner of the night was China, with the Shanghai Composite gaining 2.0% as traders bid up equities in anticipation of new government stimulus measures. Asian investors are once again hopeful to see the government intervene after the International Monetary Fund lowered its Chinese GDP growth forecast to 7.8% from 8.0%. In addition, reports that market regulators would intensify efforts to allow more qualified foreign institutional investors access to Chinese markets also helped support the regional markets. Lastly, the People's Bank of China made another CNY265 billion cash injection through reverse repurchase operations.

In Japan, the Nikkei was down 1.1%, mostly playing catch-up to the global risk-off sentiment seen yesterday while its market was closed. As the earnings season nears, concerns over corporate profitability are starting to plague Japanese companies. Car maker Toyota will likely be affected as September vehicles sales in China fell 49% year-over-year. Hong Kong's Hang Seng added 0.5%.

In Europe, markets have retreated from highs set around the open. Greece is back in the headlines as German Chancellor Angela Merkel visits the country. Meanwhile, the Troika is projecting Greek debt to reach 150% of GDP in 2020, which is well above its target of 120%. Elsewhere, European Central Bank President Mario Draghi spoke to the European Parliament Panel in Brussels. His comments were mostly focused on articulating and defending the use of Outright Monetary Transactions as he stated ESM and IMF involvement would be sought before tapping the new program. He also mentioned the Central Bank is considering releasing the minutes from its meetings. Also of note, the Eurogroup approved Portugal's next tranche of aid. Nearing midday, France's CAC is adding 0.2%, Germany's DAX is down 0.4%, and UK's FTSE is off by 0.2%.

In U.S. corporate news, RadioShack (RSH 2.29, +0.21) is higher by 10.1% after Bank of America/Merrill Lynch upgraded the shares from ‘underperform' to ‘buy.'

Questcor Pharma (QCOR 21.35, +1.06) is advancing 5.2% after shares of the biotech company were upgraded from ‘hold' to ‘buy' at Jefferies. In addition, the company gave a business update, noting it shipped a total of 1,740 vials of Acthar in September, but noted it has not bought back any shares since it authorized a repurchase program on September 7. The company also indicated it is cooperating fully with United States Attorney's investigation of QCOR's promotional practices.

Edwards Lifesciences (EW 92.00, -15.41) is sliding 14.4% after the medical equipment supplier lowered its third quarter revenue expectations below consensus. The slumping demand was attributed to slowing European demand.

There is no data scheduled to be released today. However, Alcoa (AA 9.20, +0.08) will report its third quarter earnings after the close, kicking off the Q3 earnings reporting season. Consensus estimates call for the aluminum producer to earn $0.01 on revenue of $5.572 billion.

06:33 am : [BRIEFING.COM] S&P futures vs fair value: -1.00. Nasdaq futures vs fair value: -10.00.

06:33 am : Nikkei...8769.59...-93.70...-1.10%. Hang Seng...20937.36...+84.40...+0.50%.

06:33 am : FTSE...5829.37...-12.40...-0.20%. DAX...7260.58...-30.70...-0.40%.

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

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


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

All times are UTC - 5 hours [ DST ]


Who is online

Users browsing this forum: No registered users and 3 guests


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

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