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 Post subject: October 10th Wednesday TF, 6E & CL Futures $3212.50
PostPosted: Wed Oct 10, 2012 7:08 pm 
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Joined: Sat Jan 10, 2009 2:06 pm
Posts: 4335
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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 @ $1470.00 dollars or +14.70 points, EuroFX 6E futures @ $1162.50 dollars or +93 ticks and Light Crude Oil CL (WTI) futures @ $580.00 dollars or +0.58 points. Total Profit @ $3212.50 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=1341

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.

Stocks Tumble On Growth Worries

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

NEW YORK (CNNMoney) -- U.S. stocks fell Wednesday amid mounting concerns about global economic growth and corporate earnings.

The Dow Jones industrial average slid 0.9%, while the S&P 500 lost 0.6%. The Nasdaq declined 0.4%.

Alcoa (AA, Fortune 500) sold off sharply and weighed on the Dow after the aluminum producer cut its forecast for Chinese demand late Tuesday. Shares of fellow Dow component Chevron (CVX, Fortune 500) also sank after the oil company said its third-quarter earnings would be "substantially lower" than second quarter results.

Consumer staples were among the best performers. Walmart (WMT, Fortune 500) rose to a record high as the nation's largest retailer held its annual meeting. McDonald's (MCD, Fortune 500) was also strong. In the banking sector, shares of JPMorgan (JPM, Fortune 500) rose ahead of the bank's quarterly earnings report Friday.

Alcoa's conservative outlook for China came one day after a report showed that Japanese car sales in China fell unexpectedly -- partly due to worsening relations between the two nations over a territorial dispute concerning a band of islands.

However, the news out of China wasn't all bad. Shares of Yum Brands (YUM, Fortune 500) rose 8% after it reported earnings Tuesday that beat expectations and reassured investors that sales at its China-based restaurants were still growing at a robust pace.

In the United States, third-quarter earnings continued Wednesday morning with Costco (COST, Fortune 500)reporting better-than-expected results.

The market is in a "holding pattern" ahead of a slew of corporate reports due next week, said Art Hogan, managing director at Lazard Capital Markets. 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 since the third quarter of 2009.

"It's a normal trading pattern ahead of some very important catalysts," said Hogan, pointing to the "fiscal cliff" debate in Congress and the presidential election in November.

* Wall Street still spooked by Spain

In addition to earnings, investors took in the latest edition of the Federal Reserve's latest snapshot of economic conditions across its 12 districts. The Beige Book showed economic activity overall continued to expand at a modest pace in late September and early October.

Separately, the Mortgage Bankers Association reported mortgage applications fell 1.2% last week compared to the previous week. The Census Bureau said wholesale trade rose 2.1% in August versus the same month last year.

Asian markets ended the session mixed. The Shanghai Composite gained 0.2%, but the Hang Seng in Hong Kong shed 0.1% and Japan's Nikkei dropped 2%.

Meanwhile, European stocks fell amid fears about the area's ongoing debt crisis. Britain's FTSE 100 ended 0.6% lower, the DAX in Germany fell 0.4%, while France's CAC 40 shed 0.5%.

Fear & Greed Index

Companies: Shares of FedEx (FDX, Fortune 500) rose after the shipping company announced "profit improvement" plans worth $1.7 billion over three years. FedEx also reaffirmed its earnings outlook for the second quarter and fiscal year 2013.

Shares of gas engine manufacturer Cummins (CMI, Fortune 500) fell on news that the company would fire 1,000 to 1,500 employees to deal with a weakening global economy.

And in Europe, the expected EADS (EADSY) and BAE Systems (BAESF) merger is now on ice. The European defense companies dropped plans after failing to get enough political support for the $45 billion deal.

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

Oil for November delivery fell $1.14 to settle at $91.25 a barrel.

Gold futures for December delivery fell 10 cents to end at $1,765.10 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury rose, pushing the yield down to 1.69%.

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Market Update

4:15 pm : Equities got off to a mixed start as the key indices chopped around their respective unchanged lines during the first hour. Sellers took control after traders digested the wholesale inventories data, pushing the major averages to their worst levels. Afternoon trade was mostly quiet as the three averages hovered near session lows. As a result, the S&P 500 finished lower by 0.6%.

Earlier, the Federal Reserve released its September Beige Book. In its report, the twelve Federal Reserve Districts reported that economic activity "expanded modestly since the last report." Residential real estate conditions as well as the nonfinancial services sector also showed modest improvement.

The manufacturing sector was described as mixed but somewhat healthier than what was observed in the last report. Meanwhile, the industrial market was also described as mixed. While the Philadelphia, New York, Cleveland, and Atlanta districts all showed strength, conditions in Richmond deteriorated slightly. The Beige Book also commented on consumer spending by saying it was mostly unchanged since the previous report.

Financials registered the slimmest losses and the SPDR Financial Select Sector ETF (XLF 15.94, -0.01) shed 0.1%. Among the majors, Citigroup (C 35.14, +0.54) and JPMorgan Chase (JPM 41.77, +0.39) were the top performers. The two names registered respective gains of 1.6% and 0.9% after Bank of America/Merrill Lynch resumed coverage of the two stocks with a ‘buy' rating. Note that JPMorgan Chase will report its third quarter earnings before Friday's open.

European financials saw mixed performance as Deutsche Bank (DB 41.17, +0.33) added 0.8% while Spanish Banco Bilbao Vizcaya Argentaria (BBVA 7.59, -0.10) slipped 1.3%.

Energy stocks were the biggest laggard of the session. Chevron (CVX 112.45, -4.91) slid 4.2% after announcing that its third quarter earnings are expected to be substantially lower than results from the previous quarter. Penn Virginia (PVA 5.10, -0.39) and Tesoro (TSO 38.70, -2.29) lost 7.1% and 5.6%, respectively.

The Dow Jones Transportation Average outperformed the broader market with a gain of 0.1%. However, the strength was largely due to FedEx (FDX 89.52, +3.94). The bellwether stock gained 5.2% after announcing a program which targets $1.7 billion in annual profit improvements by the end of fiscal year 2016. In addition, the company reaffirmed its second quarter and full-year 2012 guidance which it had revised down on September 18.

Elsewhere, Alcoa (AA 8.71, -0.42) dipped 4.6% after beating on earnings and revenues. However, the company's third quarter revenue of $5.833 billion represents a 9.1% year-over-year decrease. In addition, AA lowered its 2012 global aluminum demand growth forecast from 7.0% to 6.0%.

Engine maker Cummins (CMI 87.79, -3.05) slid 3.4% after lowering its third quarter and full-year 2012 guidance due to weak demand. Caterpillar (CAT 83.16, -1.59) slipped 1.9% in sympathy.

Ambarella (AMBA 6.06, +0.06) made its public debut today. The producer of video processing semiconductors priced its initial public offering at $6, which was well below the expected price range of $9 to $11. The stock settled higher by 1.0% after shares began trading at $6.66.

August wholesale inventories increased by 0.5%. This was slightly lower than the increase of 0.6% which had been broadly forecast.

Weekly initial and continuing jobless claims, August trade balance, September export prices ex-agriculture, and September import prices ex-oil will all be reported at 8:30 ET.

The U.S. Treasury will look to make it three strong auctions for the week with tomorrow's $13 billion, 30-yr reopening.DJ30 -128.56 NASDAQ -13.24 SP500 -8.92 NASDAQ Adv/Vol/Dec 1121/1.73 bln/1337 NYSE Adv/Vol/Dec 1144/590.8 mln/1890

3:30 pm : Crude oil retreated from its pit session high of $93.66 per barrel set in morning action despite continued tension between Turkey and Syria. The energy component brushed a session low of $91.02 per barrel moments before settling with a 1.3% loss at $91.25 per barrel.

Natural gas dipped to a floor session low of $3.43 per MMBtu but buyers stepped in and took prices as high as $3.51 per MMBtu in afternoon action. However, the momentum faded heading into the close, and natural gas settled at $3.47 per MMBtu, or just 0.3% higher.

Gold chopped around between positive and negative territory during today's pit session. The yellow metal fell as low as $1759.10 per ounce, rallied to a session high of $1769.40 per ounce, and ultimately settled just 70 cents below the breakeven level at $1765.00 per ounce.

Silver inched higher after sliding to a session low of $33.81 per ounce in late morning action. It then closed with a 0.4% gain at $34.12 per ounce, or just below its session high of $34.19 per ounce.DJ30 -131.32 NASDAQ -16.24 SP500 -9.43 NASDAQ Adv/Vol/Dec 1032/1491.3 mln/1384 NYSE Adv/Vol/Dec 1042/410 mln/1977

3:00 pm : Equities are holding their afternoon levels as the S&P 500 trades lower by 0.6%.

Ambarella (AMBA 6.18, +0.18) made its public debut today. The producer of video processing semiconductors priced its initial public offering at $6, which was well below the expected price range of $9 to $11. Currently, the stock trades higher by 3.0% after shares opened at $6.66 this morning.DJ30 -124.10 NASDAQ -13.84 SP500 -8.72 NASDAQ Adv/Vol/Dec 1026/1.33 bln/1389 NYSE Adv/Vol/Dec 1024/367.9 mln/1992

2:30 pm : After lifting off session lows, the key indices are holding their levels. The S&P 500 is lower by 0.6%.

Looking at the recently released Beige Book, the twelve Federal Reserve Districts reported that economic activity "expanded modestly since the last report." Residential real estate conditions as well as the nonfinancial services sector also showed modest improvement.

The manufacturing sector was described as mixed but somewhat healthier than what was observed in the last report. Meanwhile, the industrial market was also described as mixed. While the Philadelphia, New York, Cleveland, and Atlanta districts all showed strength, conditions in Richmond deteriorated slightly.

The Beige Book also commented on consumer spending by saying that it was mostly unchanged since the previous report.DJ30 -116.61 NASDAQ -11.17 SP500 -7.89 NASDAQ Adv/Vol/Dec 1081/1.24 bln/1327 NYSE Adv/Vol/Dec 1078/343.2 mln/1911

2:00 pm : The major averages have ticked up off their lows after the Federal Reserve released its latest Beige Book. The S&P 500 is lower by 0.5%.

Following today's close, Ruby Tuesday (RT 7.00, +0.03) is scheduled to report its earnings. The consensus calls for $0.06 in earnings on revenues of $331.50 million.

Ahead of tomorrow's open, Safeway (SWY 16.52, +0.27) will report its third quarter results. Analysts forecast earnings of $0.42 on $10.238 billion in revenues. It should be noted that heavy call buying has been spotted in SWY options with calls outpacing puts 19-1.DJ30 -114.62 NASDAQ -11.05 SP500 -7.59 NASDAQ Adv/Vol/Dec 1094/1.16 bln/1289 NYSE Adv/Vol/Dec 1093/318.9 mln/1877

1:30 pm : After falling to fresh session lows, stocks have rebounded slightly. However, the major averages continue to hover near the bottom of the day's range as the S&P 500 trades lower by 0.6%.

The Dow Jones Transportation Average is trading flat as it outperforms the broader market. However, the outperformance is largely due to strength in FedEx (FDX 89.52, +3.94). The bellwether stock is higher by 4.6% after reaffirming its second quarter and full-year 2012 guidance. In addition, the company announced a program which targets $1.7 billion in annual profit improvement by the end of fiscal year 2016.

Meanwhile, Landstar (LSTR 48.73, +0.49) is another notable outperformer among transportation stocks. Shares of the trucking company are higher by 1.0%.DJ30 -104.61 NASDAQ -15.19 SP500 -8.37 NASDAQ Adv/Vol/Dec 1019/1.05 bln/1335 NYSE Adv/Vol/Dec 1037/286.1 mln/1907

1:00 pm : Stocks showed indecision during the first hour of trade. However, once sellers took hold, the major averages slipped to fresh session lows. Today's economic data was limited to an August wholesale inventories report which showed a 0.5% increase against an expected reading of +0.6%. At midday, the S&P 500 is lower by 0.7%.

Consumer staples are leading the broader market. Among the names which reported earnings between yesterday's close and today's open, Costco (COST 102.83, +3.18) is advancing 3.2% after beating on the bottom line. The company preannounced in-line revenues last week.

On the downside, Monster Beverage (MNST 53.66, -3.08) is slumping 5.4% after Stifel Nicolaus downgraded the stock from ‘buy' to ‘hold.' The downgrade took place as the investment bank sees a greater-than-expected deceleration in sales growth through the first quarter.

Darling International (DAR 16.40, -1.14) is down 6.5% after announcing mixed quarterly results. The company missed on earnings, but reported in-line revenues. After announcing earnings, BMO Capital downgraded the stock from ‘outperform' to ‘market perform.'

Elsewhere, Wal-Mart (WMT 76.68, +2.54) is higher by 3.4% as it trades at a fresh all-time high. Note that Wal-Mart's annual investor meeting is taking place today.

Energy stocks are the biggest laggard of the session. Chevron (CVX 112.40, -4.96) is sliding 3.6% after announcing that its third quarter earnings are expected to be substantially lower than results from the previous quarter. Penn Virginia (PVA 5.18, -0.31) and Tesoro (TSO 38.34, -2.65) are down 5.7% and 6.6%, respectively.

It was a busy morning for OCZ Technology (OCZ 1.93, -1.22) which is sinking 38.7%. Earlier, the company announced the appointment of Ralph Schmitt as the President and Chief Executive Officer. In addition, the maker of solid state drives lowered its second quarter guidance and said that the company's cash position has worsened and its credit facility has been tapped. OCZ was originally scheduled to report its earnings after today's close. However, the earnings release was postponed indefinitely.

FedEx (FDX 89.28, +3.70) is higher by 4.3% after reaffirming its second quarter and full-year 2012 guidance. In addition, the company announced a program which targets $1.7 billion in annual profit improvement by the end of fiscal year 2016.

Alcoa (AA 8.70, -0.43) is slipping 4.7% after beating on earnings and revenues. However, the company's third quarter revenue of $5.833 billion represents a 9.1% year-over-year decrease. In addition, AA lowered its 2012 global aluminum demand growth forecast from 7.0% to 6.0%. Wholesale inventories increased by 0.5% in August. The reading was slightly lower than the increase of 0.6% which had been broadly forecast.

The Federal Reserve will release its September Beige Book at 14:00 ET.DJ30 -101.9 NASDAQ -15.99 SP500 -9.86 NASDAQ Adv/Vol/Dec 987/962.3 mln/1346 NYSE Adv/Vol/Dec 953/263.2 mln/2015

12:30 pm : The major averages are hovering near their session lows and the S&P 500 is lower by 0.4%.

It was a busy morning for OCZ Technology (OCZ 1.92, -1.23) which is sinking 39.1%. Earlier, the company announced the appointment of Ralph Schmitt as the President and Chief Executive Officer. In addition, the maker of solid state drives lowered its second quarter guidance and said that the company's cash position has worsened which necessitated access to its credit facility. OCZ was originally scheduled to report its earnings after today's close. However, the earnings release was postponed indefinitely.DJ30 -76.82 NASDAQ -8.09 SP500 -5.93 NASDAQ Adv/Vol/Dec 1055/870.3/1289 NYSE Adv/Vol/Dec 1086/232.6 mln/1843

12:00 pm : Equities have fallen to session in a move which coincided with weakness in oil and the euro. Currently, the S&P 500 is lower by 0.4%.

Financial stocks are outperforming the broader market as the SPDR Financial Select Sector ETF (XLF 15.94, -0.01) trades flat. Among the majors, Citigroup (C 34.98, +0.38) and JPMorgan Chase (JPM 41.58, +0.20) are the top performers. The two names are showing respective gains of 1.1% and 0.5% after Bank of America/Merrill Lynch resumed coverage of the two stocks with a ‘buy' rating. Note that JPMorgan Chase will report its third quarter earnings before Friday's open.

European financials are seeing mixed performance as Deutsche Bank (DB 41.09, +0.25) is adding 0.6% while Spanish Banco Bilbao Vizcaya Argentaria (BBVA 7.57, -0.12) trades lower by 1.6%.DJ30 -74.92 NASDAQ -8.18 SP500 -5.40 NASDAQ Adv/Vol/Dec 1060/783.5 mln/1254 NYSE Adv/Vol/Dec 1101/209.8 mln/1801

11:30 am : Stocks continue to hold their recent levels as the S&P 500 trades lower by 0.2%.

Energy stocks are the biggest laggard of the session. Chevron (CVX 113.14, -4.21) is sliding 3.6% after announcing that its third quarter earnings are expected to be substantially lower than second quarter results. Penn Virginia (PVA 5.25, -0.23) and Tesoro (TSO 38.87, -2.12) are both down near 4.7%.

Coal stocks are continuing to outperform as Peabody Energy (BTU 24.38, +0.45) and Arch Coal (ACI 6.89, +0.04) trade higher by 1.9% and 0.7%, respectively.DJ30 -51.64 NASDAQ -1.71 SP500 -2.45 NASDAQ Adv/Vol/Dec 1134/664.1 mln/1149 NYSE Adv/Vol/Dec 1283/177.9 mln/1572

11:00 am : After failing to hold above the unchanged line, stocks have slipped back into the middle of the morning range. The S&P 500 is off by 0.1%.

Consumer staples are leading the broader market. Among the names which reported earnings between yesterday's close and today's open, Costco (COST 104.27, +4.62) is advancing 4.6% after beating on earnings. The company preannounced in-line revenues last week.

On the downside, Monster Beverage (MNST 53.92, -2.82) is slumping 5.0% after Stifel Nicolaus downgraded the stock from ‘buy' to ‘hold.' The downgrade took place as the investment bank sees a greater-than-expected deceleration in sales growth through the first quarter.

Darling International (DAR 16.64, -0.91) is down 5.2% after announcing mixed quarterly results. The company missed on earnings, but reported in-line revenues. After announcing earnings, BMO Capital downgraded the stock from ‘outperform' to ‘market perform.'

Elsewhere, Wal-Mart (WMT 76.55, +2.41) is higher by 3.3% as it trades at a fresh all-time high. Note that Wal-Mart's annual investor meeting is taking place today.DJ30 -42.85 NASDAQ -0.28 SP500 -1.09 NASDAQ Adv/Vol/Dec 1187/550.9 mln/1061 NYSE Adv/Vol/Dec 1379/151.5 mln/1447

10:35 am : November crude oil prices have soared in recent action to a new session high of $93.43 as Middle Eastern tensions escalate. It is currently inching off of that HoD and is now +0.9% at $93.19/barrel.

Nov natural gas prices have been choppy this morning, but have spent the majority of the session trading higher. In current action, natural gas is -0.1%at $3.47/MMBtu.

Precious metals rallied in recent activity, pushing silver to a new session high. Gold moved back into positive territory in recent action and the December contract is now trading +0.1% at $1767.10/oz. December silver is +0.4% at $34.13. Dec copper is +0.2% at $3.73/lb.DJ30 -32.45 NASDAQ +3.94 SP500 -0.15 NASDAQ Adv/Vol/Dec 1188/432.6 mln/995 NYSE Adv/Vol/Dec 1415/129 mln/1355

10:00 am : The major averages are showing little change following the latest wholesale inventories data.

Wholesale inventories increased by 0.5% in August. That is slightly lower than the increase of 0.6% which had been broadly forecast.DJ30 -38.40 NASDAQ +0.52 SP500 -1.85 NASDAQ Adv/Vol/Dec 1067/227.9 mln/1075 NYSE Adv/Vol/Dec 1085/87.7 mln/1615

09:45 am : After a flat open, stocks spent a few minutes chopping around the unchanged line before ticking lower. Currently, the S&P 500 is off by 0.2%.

Looking at the sector alignment, consumer staples are showing early gains. Meanwhile, materials and energy stocks are weaker in the early going.

Elsewhere, FedEx (FDX 88.69, +3.11) is higher by 3.6% after reaffirming its second quarter and full-year 2012 guidance. In addition, the company announced a program which targets $1.7 billion in annual profit improvement by the end of fiscal year 2016.

Avnet (AVT 25.76, -2.81) is sliding 9.8% after lowering its first quarter guidance well below consensus. The company cited "uncertain macroeconomic conditions" as a reason for the lowered expectations. Peer Arrow Electronics (ARW 31.47, -2.21) is down 6.6% in sympathy.DJ30 -34.44 NASDAQ +0.69 SP500 -1.57 NASDAQ Adv/Vol/Dec 1054/145.1 mln/1027 NYSE Adv/Vol/Dec 1112/68.4 mln/1534

09:15 am : [BRIEFING.COM] S&P futures vs fair value: +0.40. Nasdaq futures vs fair value: +0.30. As the start of the U.S. session nears, equity futures are pointing to a flat open.

The materials sector is poised for a higher open. AK Steel (AKS 5.21, +0.02), Cliffs Natural Resources (CLF 41.80, +0.15) are both higher by 0.4%.

Elsewhere, insurer Progressive (PGR 21.91, +0.21) is adding 1.0% after beating on earnings and revenues.

09:03 am : [BRIEFING.COM] S&P futures vs fair value: -0.30. Nasdaq futures vs fair value: -0.50. U.S. equity futures are showing little change as they point to a flat open.

It was a sea of red across Asia as all of the major averages, with the exception of China's Shanghai Composite finished in negative territory. Global growth fears were once again the story as investors sold shares in response to the International Monetary Fund downgrading its forecast. The Fund now predicts the slowest global growth in three years. S&P announced India still faces a one in three chance of a downgrade despite the recent reforms. The rating agency said, "A downgrade is likely if the country's economic growth prospects dim, its external position deteriorates, its political climate worsens, or fiscal reforms slow." Data out overnight showed Australia's Westpac Consumer Sentiment rise 1.0% and South Korea's unemployment rate hold at 3.1%.

In Japan, the Nikkei closed lower by 2.0% as automakers remained under pressure on worries the Sino-Japanese relations will remain a problem for Japanese auto sales in China. Toyota Motor, which announced a 7.4 million vehicle recall, shed 1.9% while rival Honda Motor slipped 1.1%. Elsewhere, Toyota Electron gained 0.5% after announcing orders of JPY75 billion which exceeds the JPY50-60 billion that had been expected.

Hong Kong's Hang Seng shed 0.1% as financials on the mainland led the way. Industrial & Commercial Bank of China rallied 1.5% after Hujin Investment (part of China's sovereign wealth fund) upped its stake in the company. Rival Bank of China saw a 1.4% gain, responding to similar news.

China's Shanghai Composite added 0.2% as automakers surged on reports Beijing will announce subsidies to promote the purchases of automobiles in rural areas. Stocks across the sector saw strong gains as Tianjian FAW Xilai Automobile jumped the daily limit 10.0% while FAW Car and BYD saw respective gains of 7.9% and 4.9%.

In Europe, notable economic data points were limited. France saw a 1.5% increase in industrial production, which was ahead of the expected 0.2% decrease. Italy also exceeded expectations as its industrial production increased by 1.7% month-over-month. The reading was ahead of the expected 0.4% decline. Meanwhile, Germany's Finance Minister Wolfgang Schaeuble is reportedly unsatisfied with the progress of Greek reforms. In Greece, Finance Minister Yannis Stournaras reaffirmed the country's deficit target of 120% of GDP by 2020. Elsewhere, reports out of Spain are indicating that the nation will struggle to achieve its 6.3% budget deficit-to-GDP target.

In the United Kingdom, the FTSE is slipping 0.3% as miners lag. Fresnillo and Polymetal International are down 3.4% and 2.4%, respectively. Financials are among the top performers with Lloyds Banking Group and Royal Bank of Scotland advancing between 2.2% and 3.1%. The strength in financials comes after the Financial Services Authority eased capital rules for British banks.

France's CAC is off by 0.1% and advertiser Publicis Groupe is the biggest laggard, down 2.9%. European Aeronautic Defence and Space is up 3.8% as it leads the index. Earlier, reports indicated that merger talks between the defense contractor and BAE Systems have broken down.

In Germany, the DAX is slipping 0.1%. Software vendor SAP is down 1.6% after Barclays downgraded the stock from ‘overweight' to ‘equal weight.' On the upside, defensive names are showing strength. Fresenius SE and Bayer are both up near 0.7%.

08:31 am : [BRIEFING.COM] S&P futures vs fair value: +0.20. Nasdaq futures vs fair value: +0.80. Equity futures are mixed with the Nasdaq futures higher by 0.1%.

Home Depot (HD 60.50, -0.45) is down 0.7% after Oppenheimer downgraded the stock from ‘outperform' to ‘perform' with a $67 price target. The downgrade occurred due to Home Depot's recent run and Oppeheimer analysts believe the stock is now at a near-term valuation top.

Elsewhere, Cleantech (CLNT 3.00, +0.46) is spiking 18.1% after announcing $2.2 million in new and follow-on purchase orders for its airflow dyeing machines and related components.

08:00 am : [BRIEFING.COM] S&P futures vs fair value: +1.00. Nasdaq futures vs fair value: -0.30. U.S. equity futures are flat as the third quarter earnings season gets under way.

Overnight, the global equity markets showed little change. Japan was an exception, where the Nikkei fell 2.0%. Recent trade has been confined to tight ranges as traders await the next catalyst. In its earnings report, Alcoa (AA 9.06, -0.07) called out China as the major factor in the reduction of aluminum demand for 2012. Meanwhile, the financial press reports China might increase subsidies for some farming equipment. In addition, the Shanghai Daily thinks copper consumption in China will contract this year, which would be the first time since 2008. However, the report anticipates a recovery will take place in 2013. Due to the increased regional tensions, JPMorgan is forecasting Japanese auto exports to China could fall as much as 70% during the fourth quarter. China's Shanghai Composite added 0.2% while Hong Kong's Hang Seng slipped 0.1%.

In Europe, notable economic data points were limited. France saw a 1.5% increase in industrial production, which was ahead of the expected 0.2% decrease. Meanwhile, Germany's Finance Minister Wolfgang Schaeuble is reportedly unsatisfied with Greece's progress. In Greece, Finance Minister Yannis Stournaras reaffirmed the country's deficit target of 120% of GDP by 2020. Elsewhere, reports out of Spain are indicating that the nation will struggle to achieve its 6.3% budget deficit-to-GDP target. Nearing midday, UK's FTSE is lower by 0.5% while France's CAC and Germany's DAX are both down 0.4%.

In U.S. corporate news, Alcoa (AA 9.06, -0.07) is slipping 0.8% after beating on earnings and revenues. However, the company's third quarter revenue of $5.833 billion represents a 9.1% year-over-year decrease. In addition, AA lowered its 2012 global aluminum demand growth forecast from 7.0% to 6.0%.

YUM! Brands (YUM 68.52, +2.82) is higher by 4.3% following a mixed quarterly report. The restaurant operator beat on earnings but missed revenue expectations by $70 million. Additionally, the company raised its full-year earnings expectations in-line with analyst estimates.

Costco (COST 101.70, +2.05) is advancing 2.1% after beating on earnings.

True Religion (TRLG 26.26, +5.25) is spiking 25.0% after reports indicated the company will put itself up for sale. In addition, Standpoint recommended buying the stock at any price below $25 as it anticipates a deal to be struck.

Cummins (CMI 86.00, -4.84) is sliding 5.3% after lowering its third quarter and full-year 2012 guidance due to weak demand. Caterpillar (CAT 83.78, -0.97) is down 1.1% in sympathy.

The MBA Mortgage Index showed a 1.2% decrease in new mortgage applications during last week.

August wholesale inventories will be announced at 10:00 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.

06:26 am : [BRIEFING.COM] S&P futures vs fair value: -1.50. Nasdaq futures vs fair value: -7.00.

06:26 am : Nikkei...8596.23...-173.40...-2.00%. Hang Seng...20919.60...-17.70...-0.10%.

06:26 am : FTSE...5784.18...-26.20...-0.40%. DAX...7210.24...-24.30...-0.30%.

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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