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 5:52 pm

All times are UTC - 5 hours [ DST ]




Post new topic Reply to topic  [ 1 post ] 
Author Message
 Post subject: October 11th Thursday TF, 6E & CL Futures $1152.50
PostPosted: Thu Oct 11, 2012 9:21 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:
101112-wrbtrader-Price-Action-Trading-PnL-Blotter-Profit+1152.50.png
101112-wrbtrader-Price-Action-Trading-PnL-Blotter-Profit+1152.50.png [ 76.84 KiB | Viewed 318 times ]

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

Price Action Trade Performance for Today: Emini TF ($TF_F) futures @ ($560.00) dollars or -5.60 points, EuroFX 6E futures @ $262.50 dollars or +0.0021 ticks and Light Crude Oil CL (WTI) futures @ $1450.00 dollars or +1.45 points. Total Profit @ $1152.50 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=1342

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. 11 (Bloomberg) -- Bloomberg's Deborah Kostroun reports on the performance of the U.S. equity market today. U.S. stocks erased gains as optimism about a drop in jobless claims faded and a slump in Apple Inc. dragged down technology shares.

Attachment:
101112-Key-Price-Action-Markets.png
101112-Key-Price-Action-Markets.png [ 552.01 KiB | Viewed 340 times ]


Image

Market Update

4:15 pm : Equities began the session on a positive note after the weekly initial claims were reported at their lowest level since January 2008. However, the number may not be entirely comparable to the prior period as one large state was not included in the total. The early bullish sentiment failed to hold as the major averages reversed during the first hour, and headed for the flat line. As a result, the S&P 500 ended flat.

The latest weekly initial claims count totaled 339,000, which was lower than the widely-expected 370,000. The tally was below the revised prior week count of 369,000. As for continuing claims, they fell to 3.273 million from 3.288 million.

With oil adding in excess of 1.3%, the energy sector outperformed all others. Within the space, coal stocks rallied broadly. Alpha Natural Resources (ANR 8.55, +1.24) and Arch Coal (ACI 7.94, +1.08) both surged near 16.0%. Meanwhile, James River Coal (JRCC 3.74, +0.58) and Peabody Energy (BTU 26.18, +2.15) added 18.4% and 9.0%, respectively. The strength in coal is likely related to the recent surge in natural gas prices as more expensive gas makes coal an attractive alternative. It should also be noted that iron ore prices have been on the rise. This is seen as bullish for coal which is used in conjunction with iron ore to make steel.

Other energy names also saw gains, albeit less robust. Oil drilling equipment supplier Schlumberger (SLB 72.42, +1.34) advanced 2.3% after Howard Weil upgraded the shares to ‘focus stock' from ‘outperform.' SLB's peer, Lufkin (LUFK 54.39, +1.84) also saw its shares upgraded by Howard Weil. The company's rating was raised to ‘outperform' from ‘market perform' and its shares settled higher by 3.5%.

The telecom space was the biggest laggard as a couple of sector components appeared in the headlines. Sprint Nextel (S 5.76, +0.72) advanced 14.3% after the company confirmed reports which indicated Softbank is looking to acquire a stake in Sprint.

MetroPCS (PCS 11.64, -0.40) slid 3.3% after separate reports suggested that Sprint has not considered making a bid to rival the one from Deutsche Telekom's T-Mobile USA unit. Other major telecom names were relatively weak as AT&T (T 36.51, -0.41) and Verizon (VZ 45.30, -0.48) ended with respective losses of 1.6% and 1.1%.

The Dow Jones Transportation Average remains in the spotlight as the bellwether group looks to recouple with the broader market. After outperforming the remaining industrials during recent sessions, the transportation average traded in-line with the Dow. Heavy vehicle lessor, Ryder Systems (R 42.40, +0.44) led the 20-stock complex with a 1.1% gain. Meanwhile, shipper Overseas Shipholding Group (OSG 5.88, -0.23) trailed the remaining transportation stocks before ending with a loss of 3.8%.

It should be noted that Overseas Shipholding Group was weaker while other oil tanker shippers like Nordic American Tankers (NAT 9.33, +0.05), Frontline (FRO 3.53, +0.01), and Teekay (TK 31.91, +0.39) all posted gains between 0.3% and 1.2%.

Oshkosh Truck (OSK 28.89, +2.04) spiked 7.6% after Carl Icahn announced his intention to commence a tender offer for "any and all" of the outstanding shares of Oshkosh at $32.50 per share. In addition, Mr. Icahn said he plans to nominate directors to the company's board. Oshkosh responded by saying it will advise shareholders of its positioning regarding the offer and that Carl Icahn was unsuccessful in his prior attempt to elect any of his six director nominees during last year's annual meeting.

Navistar (NAV 22.61, +0.62) also surged on the news as Carl Icahn's plan includes merging the two truck makers. The stock settled higher by 2.8%.

Elsewhere, Cooper Tire (CTB 19.78, +1.09) surged 5.8% after earlier reports indicated India's Apollo Tyres is looking to acquire Cooper. Peer Goodyear Tire (GT 12.44, +0.11) added 0.9% while American Axle & Manufacturing Holdings (AXL 12.07, +0.09) added 0.8%.

The trade deficit widened to $44.2 billion during August after the prior month's reading was revised down to $42.5 billion. Economists polled by Briefing.com had expected that the deficit would come in at $43.6 billion.

Separately, export prices, excluding agriculture, increased by 0.7% in September after they had increased by 0.4% in the prior month. Excluding oil, import prices rose by 0.2%, which follows the 0.2% decrease experienced in the prior month.

Tomorrow, September PPI and core PPI will be reported at 8:30 ET. In addition, the October Michigan Sentiment will be released at 9:55 ET.DJ30 -18.58 NASDAQ -2.40 SP500 +0.28 NASDAQ Adv/Vol/Dec 1465/1.56 bln/971 NYSE Adv/Vol/Dec 1991/646.7 mln/1024

3:30 pm : Crude oil spent pit trade in positive territory as a weaker dollar index and continued tension between Turkey and Syria supported the advance. The energy component traded up to a session high of $92.94 per barrel in morning action but retreated slightly following inventory data that showed a build of 1.672 mln barrels when a build of 1.5 mln barrels was anticipated. Still, it settled with a 1.0% gain at $92.18 per barrel.

Natural gas came off its pit session low of $3.50 per MMBtu and popped to a session high of $3.63 per MMBtu on bullish inventory data that showed a build of 72 bcf when a build of 80 bcf was expected. Despite losing some steam in afternoon action, it settled 4.0% higher at $3.61 per MMBtu and hit a new high for 2012 at $3.63/MMBtu.

Gold also traded higher during today's pit session as the dollar index weakened. The yellow metal fell off its session high of $1776.60 per ounce to a session low of $1766.30 per ounce following initial unemployment data. It eventually settled with a 0.3% gain at $1770.50 per ounce. Silver touched a session high of $34.38 per ounce moments after pit trade opened but gave up gains as the session progressed. It closed 0.1% lower at $34.08 per ounce, or just above its session low of $34.04 per ounce.DJ30 +8.51 NASDAQ +6.68 SP500 +3.86 NASDAQ Adv/Vol/Dec 1536/1304.6 mln/890 NYSE Adv/Vol/Dec 2129/451 mln/892

3:00 pm : Heading into the final hour of trade, major averages are hovering just above their session lows. The S&P 500 is higher by 0.2%.

As the markets prepare for next week's avalanche of earnings, three notable names will report their results between today's close and tomorrow's open. Following today's bell, JB Hunt (JBHT 54.70, +0.08) will report its earnings. Analyst estimates call for earnings of $0.66 on $1.277 billion in revenues.

Ahead of tomorrow's open, JPMorgan Chase (JPM 41.86, +0.09) and Wells Fargo (WFC 35.15, -0.08) will announce their third quarter results. JPMorgan Chase is expected to earn $1.21 on revenues of $24.134 billion. Meanwhile, the consensus calls for Wells Fargo to report earnings of $0.87 on $21.430 billion in revenues. Looking at options activity, JPM is seeing two calls traded for each put, while WFC options are experiencing a slightly more bearish skew as the put/call ratio stands at 0.61.DJ30 -0.15 NASDAQ +1.50 SP500 +2.28 NASDAQ Adv/Vol/Dec 1459/1.18 bln/961 NYSE Adv/Vol/Dec 2061/410.8 mln/944

2:35 pm : The S&P 500 is higher by 0.3% after bouncing off its unchanged line.

Four stocks are advancing on their first day of trading. Shutterstock (SSTK 21.61, +4.61) is a company which specializes in web hosting of stock images. After pricing the initial public offering at $17.00, Shutterstock opened for trade at $22.50. Currently, the stock is higher by 27.1%.

Realogy (RLGY 33.70, +6.70) is a franchisor of prominent real estate brokerages like Century 21, Coldwell Banker, and ERA. The company priced its IPO at $27.00 which was at the upper end of the expected range. The stock is higher by 24.8% after it began trading at $32.85.

Biopharmaceutical producer Kythera (KYTH 19.22, +0.76) is adding 4.1% after starting the session at $18.49. The opening price was above the IPO price of $16.00 per share.

Lastly, Intercept Pharma (ICPT 19.00, +4.00) is advancing 26.9% after the stock began trading at $19.40. The opening price was ahead of the IPO price of $15.00.DJ30 +13.53 NASDAQ +3.66 SP500 +3.74 NASDAQ Adv/Vol/Dec 1525/1.11 bln/906 NYSE Adv/Vol/Dec 2154/386.8 mln/848

2:00 pm : The major averages continue declining while the Nasdaq has turned negative. The tech-heavy index is off by 0.1%.

Oshkosh Truck (OSK 30.01, +3.16) is spiking 11.7% after Carl Icahn announced his intention to commence a tender offer for "any and all" of the outstanding shares of Oshkosh at $32.50 per share. In addition, Mr. Icahn said he plans to nominate directors to the company's board. Oshkosh responded by saying it will advise shareholders of its positioning regarding the offer and that Carl Icahn was unsuccessful in his prior attempt to elect any of his six director nominees during last year's annual meeting.

Navistar (NAV 22.98, +0.99) also surged on the news as Carl Icahn's plan includes merging the two truck makers. Currently, NAV trades higher by 4.5%.DJ30 +4.92 NASDAQ -2.90 SP500 +2.00 NASDAQ Adv/Vol/Dec 1430/1.02 bln/976 NYSE Adv/Vol/Dec 2033/355.9 mln/943

1:30 pm : The S&P 500 is higher by 0.3% while Nasdaq is approaching its unchanged line.

The Dow Jones Transportation Average remains in the spotlight as the bellwether group looks to recouple with the broader market. After outperforming the rest of the industrials during recent sessions, the transportation average is trading in-line with the Dow. Heavy vehicle lessor, Ryder Systems (R 42.53, +0.57) is higher by 1.4% as it leads the 20-stock complex. Meanwhile, shipping stocks are mixed. Matson (MATX 21.32, +0.15) is adding 0.7% while Overseas Shipholding Group (OSG 6.00, -0.12) is lower by 1.9%.

It should be noted that OSG is weaker while other oil tanker shippers like Nordic American Tankers (NAT 9.32, +0.04), Frontline (FRO 3.56, +0.04), and Teekay (TK 31.86, +0.34) are all showing modest gains.DJ30 +19.24 NASDAQ +1.19 SP500 +3.75 NASDAQ Adv/Vol/Dec 1521/939.9 mln/861 NYSE Adv/Vol/Dec 2137/328.5 mln/834

1:05 pm : Stocks got off to a strong start after initial unemployment claims were reported at their lowest level since January 2008. However, after rallying to session highs thirty minutes into the trading day, the major averages reversed and began retracing their early gains. At midday, the S&P 500 is higher by 0.4%.

The latest weekly initial jobless claims count totaled 339,000, which was lower than the widely-expected 370,000. The tally was below the revised prior week count of 369,000. As for continuing claims, they fell to 3.273 million from 3.288 million.

With oil adding in excess of 1.0%, the energy sector is showing relative strength. Within the space, coal stocks are rallying broadly. As natural gas trades at a multi-month high of $3.58/btu, coal is becoming a more attractive alternative. Alpha Natural Resources (ANR 8.47, +1.16) and Arch Coal (ACI 7.88, +1.02) are both surging near 15.0%. Meanwhile, James River Coal (JRCC 3.53, +0.37) and Peabody Energy (BTU 26.07, +2.04) are adding 12.0% and 8.4%. It should also be noted that iron ore prices have been on the rise. This is seen as bullish for coal which is used in conjunction with iron ore to make steel.

Other energy names are also showing gains, albeit less robust. Supplier of oil drilling equipment, Schlumberger (SLB 72.71, +1.63) is advancing 2.3% after Howard Weil upgraded the shares to ‘focus stock' from ‘outperform.' Peer Lufkin (LUFK 54.39, +1.84) also saw its shares upgraded by Howard Weil. The company's rating was raised to ‘outperform' from ‘market perform' and its shares are trading higher by 3.5%.

The telecom space is the biggest laggard, and a couple of sector components were in the news earlier. Sprint Nextel (S 5.71, +0.67) is advancing 13.3% after the company confirmed reports which indicated Softbank is looking to acquire a stake in Sprint.

MetroPCS (PCS 11.54, -0.50) is down 4.2% after separate reports suggested that Sprint has not considered making a bid to rival the one from Deutsche Telekom's T-Mobile USA unit.

Other major telecom names are showing weakness as AT&T (T 36.51, -0.41) and Verizon (VZ 45.30, -0.48) are both down 1.1%.

Elsewhere, Cooper Tire (CTB 20.00, +1.31) is spiking 7.0% after earlier reports indicated India's Apollo Tyres is looking to acquire CTB. Peer Goodyear Tire (GT 12.71, +0.38) is adding 3.1% while American Axle & Manufacturing Holdings (AXL 12.16, +0.18) is higher by 1.6%.

The trade deficit widened to $44.2 billion during August after the prior month's reading was revised down to $42.5 billion. Economists polled by Briefing.com had expected that the deficit would come in at $43.6 billion.

Separately, export prices, excluding agriculture, increased by 0.7% in September after they had increased by 0.4% in the prior month. Excluding oil, import prices rose by 0.2%, which follows the 0.2% decrease experienced in the prior month.DJ30 +36.48 NASDAQ +7.90 SP500 +6.35 NASDAQ Adv/Vol/Dec 1613/855.7 mln/761 NYSE Adv/Vol/Dec 2232/303.7 mln/712

12:30 pm : The key indices are holding their levels near the middle of the day's range, and the S&P 500 is higher by 0.4%.

The telecom space is the biggest laggard, and a couple of sector components were in the news earlier. Sprint Nextel (S 5.70, +0.66) is advancing 13.1% after the company confirmed reports which indicated Softbank is looking to acquire a stake in Sprint.

MetroPCS (PCS 11.44, -0.60) is down 5.0% after separate reports suggested that Sprint has not considered making a bid to rival the one from Deutsche Telekom's T-Mobile USA unit.

Other major telecom names are showing weakness as AT&T (T 36.46, -0.46) and Verizon (VZ 45.19, -0.58) are both down 1.3%.DJ30 +23.39 NASDAQ +7.33 SP500 +5.25 NASDAQ Adv/Vol/Dec 1621/776.5 mln/751 NYSE Adv/Vol/Dec 2218/277.8 mln/721

12:00 pm : The major averages continue slipping off their highs. The S&P 500 is currently up 0.4%.

For-profit education stocks are showing broad strength today. Earlier, Apollo Group (APOL 28.69, +0.59) announced that its University of Phoenix unit will implement an immediate tuition freeze for all new and currently-enrolled students. APOL shares traded lower before reversing to trade in-line with other education stocks. Currently, the stock is higher by 2.1%.

Other for-profit education names are also showing strength. Bridgeport Education (BPI 11.32, +0.60), New Oriental Education (EDU 17.88, +0.94), and DeVry (DV 24.52, +0.96) are all up between 3.5% and 5.6%.DJ30 +19.82 NASDAQ +5.76 SP500 +5.01 NASDAQ Adv/Vol/Dec 1596/689.1 mln/744 NYSE Adv/Vol/Dec 2241/252.1 mln/698

11:30 am : Equities have slipped from their session highs back near their opening levels. The S&P 500 is higher by 0.6%.

With oil adding in excess of 1.4%, the energy sector is showing relative strength. Within the space, coal stocks are rallying broadly. As natural gas trades at a multi-month high of $3.61/btu, coal is becoming a more attractive alternative. Alpha Natural Resources (ANR 8.17, +0.86) and James River Coal (JRCC 3.50, +0.34) are both surging near 11.0%. Meanwhile, Arch Coal (ACI 7.62, +0.76) and Peabody Energy (BTU 25.80, +1.77) are adding between 7.4% and 11.1%. It should also be noted that iron ore prices have been on the rise. This is seen as bullish for coal which is used in conjunction with iron ore to make steel.

Other energy names are also showing gains, albeit less robust. Schlumberger (SLB 72.72, +1.64) is advancing 2.3% after Howard Weil upgraded the shares to ‘focus stock' from ‘outperform.' Lufkin (LUFK 54.21, +1.66) also saw its shares upgraded by Howard Weil. The company's rating was raised to ‘outperform' from ‘market perform' and its shares are trading higher by 3.2%.DJ30 +44.27 NASDAQ +14.66 SP500 +7.59 NASDAQ Adv/Vol/Dec 1737/585.2 mln/593 NYSE Adv/Vol/Dec 2358/220.1 mln/565

11:00 am : After rising to fresh session highs, the major averages are holding their levels and the S&P 500 trades higher by 0.7%.

The materials sector is the top performer of the day. Among companies which reported earnings, Zep (ZEP 15.58, +1.14) is spiking 7.9% despite missing earnings estimates by $0.01. The company also fell about $4 million short of their revenue expectations.

Paper stocks are showing broad strength. The top performer among the group, Louisiana Pacific (LPX 13.89, +0.39) is adding 2.9%. There doesn't appear to be any news related to paper stocks. Instead, the group is rebounding after recent weakness.

Meanwhile, steel producers are also seeing strength. United States Steel (X 21.53, +0.75) is advancing 3.6%, while A.M. Castle (CAS 12.70, +0.47) and Cliffs Natural Resources (CLF 41.70, +1.17) are showing respective gains of 3.8% and 2.9%.DJ30 +74.19 NASDAQ +23.30 SP500 +10.59 NASDAQ Adv/Vol/Dec 1806/472.4 mln/488 NYSE Adv/Vol/Dec 2427/181.9 mln/473

10:35 am : Commodities continue trading higher this morning as the dollar index stays under water. Crude oil is showing gains again as tension in Turkey/Syria escalates. Nov crude is now back near its HoD of $92.77/barrel, which was hit earlier this morning. In current action, the Nov contract is +1.4% at $92.53/barrel.

Nov natural gas continues to be volatile and was also back near its HoD of $3.53/MMBtu ahead of today's weekly inventory data. Following this data, nat gas is +3.3% at $3.59/MMBtu.

Precious metals are in positive territory again after a recent rally. Dec gold is +0.4% at $1772.80/oz and Dec silver is +0.4% at $34.23/oz.

Grains continues trading higher following this morning USDA report. Dec corn is now +4.1% at $7.67/bu, Dec wheat is +1.8% at $8.86/bu and Nov soybeans are +1.9% at $15.52/bu.DJ30 +54.19 NASDAQ +21.41 SP500 +8.89 NASDAQ Adv/Vol/Dec 1726/346.2 mln/514 NYSE Adv/Vol/Dec 2359/147 mln/487

10:00 am : Equities are holding the majority of their early gains and the S&P 500 is firmer by 0.5%.

Cooper Tire (CTB 20.14, +1.45) is spiking 7.8% after earlier reports out of the Economic Times indicated India's Apollo Tyres is looking to acquire CTB. Peer Goodyear Tire (GT 12.63, +0.30) is adding 2.4% while American Axle & Manufacturing Holdings (AXL 12.13, +0.15) is higher by 1.3%.DJ30 +37.98 NASDAQ +22.86 SP500 +8.55 NASDAQ Adv/Vol/Dec 1690/213.1 mln/456 NYSE Adv/Vol/Dec 2210/105.8 mln/535

09:45 am : Stocks built on their pre-market sentiment as the major indices followed the open with a surge to session highs. The S&P 500 is higher by 0.6%.

The traditionally risky sectors are leading the way in the early going. Financials, materials, and energy are all outperforming the broader market. Meanwhile, utilities, consumer staples, and telecoms are all underperforming.

Safeway (SWY 15.37, -0.92) is sliding 5.7% after reporting mixed earnings. The grocery store operator beat on earnings, but fell short of top line estimates. In addition, the company reaffirmed full-year 2012 earnings guidance.DJ30 -41.81 NASDAQ -19.24 SP500 -8.23 NASDAQ Adv/Vol/Dec 1708/137.8 mln/384 NYSE Adv/Vol/Dec 2192/74.4 mln/493

09:15 am : S&P futures vs fair value: +9.50. Nasdaq futures vs fair value: +22.00. Heading into the open, equity futures are higher by 0.7%.

MetroPCS (PCS 10.90, -1.14) is down 9.5% after earlier reports indicated Softbank will purchase a stake in Sprint Nextel (S 5.91, +0.87). MetroPCS is trading lower as the deal makes a potential Sprint-MetroPCS merger unlikely.

Meanwhile, Clearwire (CLWR 1.69, +0.39) is spiking 30.0% as the company is also said to be included in the Softbank-Sprint deal. Note that Sprint is a majority owner of CLWR.

08:59 am : [BRIEFING.COM] S&P futures vs fair value: +6.70. Nasdaq futures vs fair value: +17.50. U.S. equity futures are up 0.5% as they continue to trade near their pre-market highs.

The major Asian averages ended mostly lower after S&P downgraded Spain's credit rating to BBB-, leaving it one notch above junk. Markets came off their lows as the day progressed as only Taiwan's Taiex (-1.9%) saw a loss in excess of 1.0%. The latest Bank of Japan Minutes were released, showing some members voiced concerns over a weakening of price trends in recent months. The central bank decided to eliminate its minimum bidding rate (0.1%) to invite more bidding and prevent auctions from being undersubscribed. South Korea's central bank cut its key rate 25 basis points to 2.75%, and trimmed its growth forecast to 2.4% (3.2% previous) in 2012 and 3.2% (3.8% previous) in 2013. Data from the region showed the Australian economy added 14.5K jobs (5.1K expected) while seeing its unemployment rate tick up to 5.4% (5.3% expected, 5.1% previous). Elsewhere, Japanese core machinery orders were weak at -3.3% month-over-month.

In Japan, the Nikkei closed lower by 0.6% to end at a two-month low. Automakers and parts suppliers were under pressure after yesterday's 7.4 million vehicle recall announced by Toyota. Toyota shed another 1.4% during today's session with rival Nissan falling 1.2%. Auto parts maker Tokai Rika tumbled 9.6%. Elsewhere, KDDI Corp. added 1.6% after receiving an upgrade at JP Morgan.

Hong Kong's Hang Seng finished higher by 0.4% as mainland financials continued their strong performance. Industrial & Commercial Bank of China jumped another 4.3% on news China's sovereign wealth fund is buying shares of the company. The stock jumped 1.5% during yesterday's session in initial reaction to the news.

China's Shanghai Composite settled lower by 0.8% despite outperformance by the financials. Agricultural Bank of China and Bank of China both rallied 0.4% on the news China's sovereign wealth fund was actively buying shares in the space. Steel stocks were weak as Angang Steel fell 2.0%.

European markets are currently mixed. Spain's IBEX sold off on the S&P downgrade, but it has since recovered from the lows and is now down 0.5%. While Spain's market is an underperformer relative to the rest of Europe, the modest 0.5% decline in response suggests that while the timing of the downgrade may have been a surprise, the reasoning was not. Of course, Spanish authorities disagreed with the assessment. Meanwhile, the euro responded by tumbling over 50 pips against the dollar in a move which was promptly retraced, also suggesting the downgrade didn't raise any new concerns. In addition, Greece officials hope they can settle a deal with the Troika within the next couple of days. Regional data was limited as Germany's CPI was reported in-line with expectations, while France's CPI reading showed a 0.3% month-over-month decrease.

In Germany, the DAX is up 1.0% and 29 out of 30 index components are on the rise. Basic material producers are outperforming with Lanxess and ThyssenKrupp higher by 2.5% and 1.6%, respectively. Manufacturer Siemens is the weakest DAX component, down 0.9%.

Great Britain's FTSE is advancing 0.9%. Luxury retailer Burberry is spiking 12.9% after reporting an increase in second quarter same-store sales. Consumer stocks are showing some weakness as WM Morrison trades lower by 1.1%.

France's CAC is adding 0.9% and LVMH Moet Hennessy Louis Vuitton is leading the way. The luxury goods producer is higher by 4.3% as it benefits from Burberry's strength. Alcatel-Lucent is down 2.2% as it continues its recent weakness.

08:34 am : [BRIEFING.COM] S&P futures vs fair value: +6.50. Nasdaq futures vs fair value: +17.00. Equity futures have lifted to fresh pre-market highs following the release of a handful of economic data points. The S&P 500 futures are higher by 0.5%.

The latest weekly initial jobless claims count totaled 339,000, which is lower than the 370,000 that had been expected. The tally is below the revised prior week count of 369,000. As for continuing claims, they fell to 3.273 million from 3.288 million.

The trade deficit widened to $44.2 billion during August after a downwardly revised prior month deficit of $42.5 billion. Economists polled by Briefing.com had expected that the deficit would come in at $43.6 billion.

Separately, export prices, excluding agriculture, increased by 0.7% in September after they had increased by 0.4% in the prior month. Excluding oil, import prices rose by 0.2%, which follows the 0.2% decrease experienced in the prior month.

08:03 am : [BRIEFING.COM] S&P futures vs fair value: +3.60. Nasdaq futures vs fair value: +11.00. U.S. equity futures are modestly higher as the major indices look to break their three-day losing streak.

The overnight trade was generally mixed as Asian indices opened lower shortly after Standard & Poor's downgraded Spain. South Korea and Brazil both cut their respective key interest rates by 25 basis points, though Brazil's move came as a surprise. In addition, the forecast for South Korean growth was reduced to 2.4% from 3.6%. Elsewhere, Japan saw weakness as Machine Orders fell 3.3% month-over-month, which was below the expected decline of 2.5%. Looking at Asian indices, China's Shanghai Composite lost 0.8%, Japan's Nikkei slipped 0.6%, while Hong Kong's Hang Seng added 0.4%.

In Europe, Spain's market sold off on the S&P downgrade, but it has since recovered from the lows and is now down 0.4%. While Spain's IBEX is an underperformer relative to the rest of Europe today, the modest 0.4% decline in response suggests that while the timing of the downgrade may have been a surprise, the reasoning isn't. Of course, Spanish authorities disagreed with the assessment. Meanwhile, the euro responded by tumbling over 50 pips against the dollar in a move which was promptly retraced, also suggesting the downgrade didn't raise any new concerns. In addition, Greece officials hope they can settle a deal with the Troika within the next couple of days. Regional data was limited as Germany's CPI was reported in-line with expectations, while France's CPI reading showed a 0.3% month-over-month decrease. Nearing midday, Germany's DAX is higher by 0.8%, while France's CAC and UK's FTSE are both rising by 0.6%.

In U.S. corporate news, Sprint Nextel (S 5.65, +0.61) is higher by 12.1% after reports indicated that the company is in discussions with Softbank on a potential $12.8 billion stake in the company.

Ruby Tuesday (RT 6.80, -0.22) is down 3.1% after reporting in-line revenues and earnings slightly below consensus. The company issued in-line earnings guidance as it expects same-restaurant sales to be flat or show a slight uptick.

Dragonwave (DRWI 2.69, +0.49) is spiking 22.7% after beating on revenues. In addition, the networking equipment producer also issued in-line guidance for the third quarter. Sprint is a major customer of DRWI.

Looking at the econ calendar, 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 today's $13 billion, 30-yr reopening.

06:28 am : [BRIEFING.COM] S&P futures vs fair value: +4.00. Nasdaq futures vs fair value: +12.00.

06:28 am : Nikkei...8546.78...-49.50...-0.60%. Hang Seng...20999.05...+79.50...+0.40%.

06:28 am : FTSE...5802.90...+26.20...+0.40%. DAX...7254.89...+49.70...+0.70%.

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 1 guest


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