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 Post subject: October 19th Friday TF, 6E & CL Futures $3805.00
PostPosted: Fri Oct 19, 2012 2:25 pm 
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Joined: Sat Jan 10, 2009 2:06 pm
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Trade Results of M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
Price Action Trading (no technical indicators)

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

Price Action Trade Performance for Today: Emini TF ($TF_F) futures @ $1240.00 dollars or +12.40 points, EuroFX 6E futures @ $75.00 dollars or +0.0006 ticks and Light Crude Oil CL (WTI) futures @ $2490.00 dollars or +2.49 points. Total Profit @ $3805.00 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=1348

Also, posted below are direct links to information about my price action trade methodology and trading plan (there's a difference between the two) that enables me to identify key trading areas in the price action that represent changes in supply/demand and volatility along with being able to exploit these changes via WRB Analysis (wide range body/bar analysis)...regardless if I'm day trading, swing trading or position trading.

Image Price Action Analysis via WRB Analysis Tutorials @ http://www.thestrategylab.com/WRBAnalysisTutorials.htm and there's a free study guide of the WRB Analysis Tutorial Chapters 1, 2 and 3 @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=119&t=718

Image Trade Signal Strategies via Volatility Trading Report (VTR) @ http://www.thestrategylab.com/VolatilityTrading.htm and there's a free trade signal strategy @ http://www.thestrategylab.com/tsl/forum/viewforum.php?f=89 so that you can freely test drive one of our price action trade strategies with support prior to purchasing the Volatility Trading Report (VTR).

Image Trading Plan Daily Routine @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=192&t=1618

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Market Summaries

The below summaries by Bloomberg, CNNMoney, Reuters and Yahoo! Finance helps me to do a quick review of the fundamentals, FED/ECB/IMF actions or any important global economic events (e.g. Eurozone, MarketWatch.com) that had an impact on today's price action. Simply, I'm a strong believer that key market events causes key changes in supply/demand and volatility resulting in trade opportunities (swing points and strong continuation price actions) that reach profit targets. Thus, I pay attention to these key market events via WRB Analysis from one trade to the next trade to give me the market context before the appearance of my technical analysis trade signals. Therefore, I maintain these archives to allow me to understand what was happening on any given trading day in the past involving key market events to help better understand my trading (day trading, swing trading, position trading) and reactions to the markets...something I can not get from my broker statements alone.

U.S. Market Wrap

Oct. 19 (Bloomberg) -- Bloomberg's Deborah Kostroun reports on the performance of the U.S. equity market today. U.S. stocks fell, giving benchmark indexes their biggest declines since June, as Microsoft Corp. and General Electric Co. results missed estimates and euro-area leaders failed to discuss aid for Spain at a summit.

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Market Update

4:20 pm : Today's session was dominated by the sellers as disappointing third quarter earnings continued to roll in. Equities opened lower, and spent the majority of the session sliding to fresh lows. The sell-off came to an end once the S&P 500 hit the 1,430 level 90 minutes ahead of the close. The index then staged a minor bounce during the final hour before closing with a loss of 1.7%.

The technology sector was the weakest performer, Advanced Micro Devices (AMD 2.18, -0.44) reported a loss of $0.20, which was $0.04 worse than the Capital IQ consensus estimate. In addition, the company's revenue of $1.27 billion was in-line with Capital IQ analyst expectations. Also of note, the second largest manufacturer of microprocessors issued downside guidance for the fourth quarter, and announced restructuring plans in order to improve profitability. AMD shares settled lower by 16.8%.

Marvell Technology (MRVL 7.56, -1.26) slid 14.3% after lowering its third quarter guidance. The company now expects revenue to fall between $765 million and $785 million. This is down from the previous range of $800 million to $850 million, and below the Capital IQ consensus estimate of $815.58 million. The management commented on the lowered expectations by saying that "the continued slowdown in the global economy during the third quarter is resulting in a weaker PC market than previously anticipated." The guidance cut was met with a slew of downgrades as Credit Suisse, Credit Agricole, JP Morgan, Lazard, Jefferies, Deutsche Bank, and FBR Capital all lowered their rating of the semiconductor manufacturer.

On the upside, SanDisk (SNDK 44.02, +1.16) advanced 2.7% after beating on earnings and revenues. The flash memory maker reported earnings of $0.48, which was $0.14 ahead of the Capital IQ consensus estimate. Meanwhile, the company's revenue of $1.27 billion was ahead of the $1.22 billion expected by the Capital IQ consensus. Additionally, Piper Jaffray upgraded the stock to ‘overweight' from ‘neutral' following the earnings release.

Looking at industrials, General Electric (GE 22.03, -0.78) slipped 3.4% after reporting earnings and revenues below Capital IQ consensus. However, the management noted that the company is performing well, and is on track to deliver double-digit earnings growth in 2012.

Caterpillar (CAT 83.86, -2.76) slid 3.2% after reporting a 6.0% increase in retail sales of machines during September. The rate appears to be slowing as sales growth during the previous two months was reported at 13.0% in August and 14.0% in July. Note that Caterpillar will report its third quarter results before Monday's open.

On the upside, freight carrier Forward Air (FWRD 32.54, +1.93) gained 6.3% after beating Capital IQ earnings estimates by $0.01, and reporting in-line revenue at $143.5 million. In addition, the company issued in-line guidance for the fourth quarter as it expects its earnings to fall between $0.48 and $0.52. Following the report, Wolfe Trahan upgraded the stock to ‘outperform' from ‘peer perform.'

Staffing firm ManpowerGroup (MAN 39.53, +3.55) surged 9.9% after beating top and bottom line expectations. In addition, the company raised its fourth quarter guidance above Capital IQ consensus.

Quick service restaurants saw weakness following disappointing earnings from McDonald's (MCD 88.72, -4.14) and Chipotle (CMG 242.97, -42.96).

McDonald's dropped 4.5% after its earnings of $1.43 fell short of the Capital IQ consensus estimate of $1.47. Meanwhile, the company's revenues were reported at $7.15 billion, which was in-line with the Capital IQ consensus.

Meanwhile, Chipotle plunged 15.0% after missing on both earnings and revenues. The management commented on the upcoming quarter by saying they do not expect food inflation to be an issue. Following the earnings report, Wedbush downgraded the stock to ‘neutral' from ‘outperform' with a $270 price target. Peers Buffalo Wild Wings (BWLD 83.92, -2.21), Panera Bread (PNRA 161.85, -7.69), and Starbucks (SBUX 45.68, -1.72) all registered losses between 2.6% and 4.5%.

The Dow Jones Transportation Average shed 1.4%, and outperformed the remaining industrials. Kansas City Southern (KSU 78.43, +1.05) was the lone advancer among the twenty transportation stocks. The rail operator settled higher by 1.4% after reporting earnings of $0.82, which was $0.03 below Capital IQ consensus estimates. Meanwhile, the company's third quarter revenue of $577.4 million was in-line with the Capital IQ consensus. Peers CSX (CSX 21.10, -0.26), Norfolk Southern (NSC 65.64, -1.06), and Union Pacific (UNP 123.77, -1.57) all lost between 1.2% and 1.6%.

Overseas Shipholding Group (OSG 3.25, -0.29) was the weakest transportation component. The oil tanker operator slid 8.2% after trading near its all-time low of $3.13.

Existing home sales for September hit an annualized rate of 4.75 million units, which is stronger than the rate of 4.70 million units that had been generally expected by the Briefing.com consensus. The pace for September is down from the prior month rate of 4.83 million units.

Third Quarter Earnings Season Enters Full Force

The first busy week of the Q3 earnings season has concluded, featuring many bellwethers in the financial, technology and industrial sectors. As expected, earnings are down year over year. Meanwhile, last quarter's trend of most companies beating earnings expectations and missing sales estimates has held up.

Banks once again came in with relatively solid results, due in part to the Fed's accommodations. Financials have reported modest sequential improvements amid meager economic growth.

However, disappointing reports from high profile, large cap names like Intel (INTC 21.26, -0.40), IBM (IBM 193.36, -1.60), Google (GOOG 681.79, -13.21), Microsoft (MSFT 28.64, -0.85), General Electric (GE 22.03, -0.78), and McDonald's (MCD 88.72, -4.14) have since stolen the headlines and added to bearish sentiment.

So far, earnings from the 117 companies in the S&P 500 that have reported third quarter results are down approximately 4.0% year-over-year. Roughly 63.0% have beat earnings expectations while only 38.0% of companies have beat sales estimates. At the same juncture last quarter, about 68.0% of companies had beat earnings expectations while 42.0% beat sales expectations.

Looking to next week, about 700 companies covered by Briefing.com are expected to report Q3 results, including more than 150 companies in the S&P 500. Apple (AAPL 609.84, -22.80) will report on Thursday afternoon.

Weekly Recap: Stocks Rise Ahead of Friday's Sell-off

On Monday, equities got off to a slow start as the major averages spent the first 90 minutes near their respective unchanged levels. The day's economic data was mixed, and did little to move the markets. After early indecision, the three indices rose to their session highs, and maintained those levels into the afternoon. The S&P 500 saw brief afternoon weakness before late-day buying lifted the index to a gain of 0.8%. Financial stocks showed strength after Citigroup (C 37.16, -1.26) beat its earnings expectations by $0.07 and reported revenue of $19.4 billion.

Tuesday's session opened on a higher note after reports indicated Spain may be willing to ask for access to precautionary credit. The reports were followed by comments out of Germany which suggested the country's officials believe additional hurdles remain in Spain's way. Separate reports indicated the old continent's other troubled sovereign, Greece, is far from reaching an agreement with the Troika on its next bailout tranche. The European news did little to curb optimism as buyers lifted the major averages to midday highs, which were maintained into the close. As a result the S&P 500 registered a gain of 1.0%. Citigroup (C 37.16, -1.26) advanced 1.6% after announcing Chief Executive Officer, Vikram Pandit, and President and Chief Operating Officer, John Havens, have resigned. The resignations were effective immediately and the company's board elected Michael Corbat as the new CEO.

Wednesday's session began on a negative note after two technology bellwethers reported disappointing earnings. However, the cautious sentiment was short-circuited when the housing starts report revealed its highest reading since 2008. The major averages reacted by staging a steady climb to their respective session highs. A brief afternoon stumble followed, but the move was promptly retraced as the S&P 500 returned to its prior level, and closed higher by 0.4%. The technology sector was the worst performing group in the S&P 500 and Intel (INTC 21.26, -0.40) slipped 2.5% despite beating its earnings and revenue expectations.

On Thursday, stocks opened modestly lower after the weekly initial claims report missed expectations by 28,000. The early weakness was erased before midday as the major averages rallied to their respective session highs. However, the slim gains were short-lived as disappointing quarterly results from Google (GOOG 681.79, -13.21) hit the wires early and weighed on the markets. The tech-heavy Nasdaq saw the biggest impact, as the index tumbled to fresh session lows before closing with a loss of 1.0%. Google fell 8.0% after its earnings were reported at $9.03, which fell $1.63 short of the Capital IQ consensus estimate. Meanwhile, revenues came in at $11.87 billion, which represents a shortfall of about $540 million when compared to the Capital IQ analyst forecast.DJ30 -205.43 NASDAQ -67.25 SP500 -24.15 NASDAQ Adv/Vol/Dec 474/2.15 bln/1981 NYSE Adv/Vol/Dec 673/945.8 mln/2381

3:30 pm : Crude oil and precious metals dropped today on pressure from a stronger dollar and weakness in the broader market. The energy component fell off its session high of $92.99 per barrel set in morning action and trended lower for the remainder of floor trade. It settled at $90.02 per barrel, or slightly above its session low of $89.93 per barrel, booking a loss of 2.0% for the week.

Gold slid as low as $1716.00 per ounce in morning action and was unable to recover much of the loss. It closed the week 2.0% lower at $1724.00 per ounce as action in the dollar index, various economic data, and the EU Leaders Summit weighed on prices in previous sessions. Silver brushed a session low of $31.94 per ounce and settled at $32.10 per ounce for a 4.7% weekly loss.

Natural gas chopped around in positive territory and brushed a session high of $3.65 per MMBtu just before settling at $3.62 per MMBtu. It closed higher for a third consecutive session bringing the total gain for the week to 0.3%.DJ30 -207.04 NASDAQ -66.18 SP500 -24.18 NASDAQ Adv/Vol/Dec 472/1773.4 mln/1970 NYSE Adv/Vol/Dec 596/610 mln/2435

3:00 pm : The major averages continue seeking new session lows and the S&P 500 is down 1.7%.

Next week, the third quarter earnings season will enter full force as approximately 700 companies are scheduled to report. Ahead of Monday's opening bell, Caterpillar (CAT 83.96, -2.65) will report its results. The Capital IQ consensus expects the manufacturer of industrial equipment to report earnings of $2.24 on $16.95 billion in revenue. Earlier, Caterpillar reported a 6.0% increase in retail sales of machines during September. The rate appears to be slowing as sales growth during the previous two months was reported at 13.0% in August and 14.0% in July.

Elsewhere, the Capital IQ consensus expects Philips Electronics (PHG 24.61, -0.56) to announce earnings of $0.25 on revenue of $5.96 billion.

Miner Freeport-McMoRan (FCX 41.26, -1.17) and toymaker Hasbro (HAS 38.79, -0.26) are also scheduled to report their third quarter results on Monday morning.DJ30 -213.62 NASDAQ -68.68 SP500 -24.93 NASDAQ Adv/Vol/Dec 407/1.62 bln/2012 NYSE Adv/Vol/Dec 546/564.2 mln/2477

2:30 pm : Sellers remain in control as the S&P 500 has marked a fresh session low. The index is now down 1.7%.

Homebuilder stocks are seeing strength despite today's broad sell-off. Even though the SPDR S&P Homebuilder ETF (XHB 26.00, -0.17) trades lower by 0.7%, individual home builder stocks are seeing gains. Beazer Homes (BZH 18.30, +0.18) is higher by 1.0%, while KB Homes (KBH 16.86, +0.13), Toll Brothers (TOL 35.03, +0.33), and Ryland Homes (RYL 32.75, +0.18) are all up between 0.5% and 0.8%.DJ30 -224.94 NASDAQ -70.31 SP500 -26.49 NASDAQ Adv/Vol/Dec 377/1.48 bln/2032 NYSE Adv/Vol/Dec 501/523.9 mln/2506

2:00 pm : The S&P 500 has marked a fresh session low and is now down 1.7%.

Financials are showing slight outperformance of the broader market and the SPDR Financial Select Sector ETF (XLF 16.09, -0.24) is sliding 1.5%. Citigroup (C 37.35, -1.06) is the weakest stock among the majors as it trades lower by 2.8%.

Elsewhere in the space, Capital One Financial (COF 60.53, +3.23) is spiking 5.6% after its third quarter earnings of $2.01 exceeded Capital IQ consensus estimates by $0.31. Meanwhile, the third quarter revenue was reported at $5.78 billion, which was ahead of the Capital IQ consensus forecast of $5.63 billion. Today's buying has lifted the stock to its best level since September 2008.DJ30 -204.12 NASDAQ -67.08 SP500 -23.97 NASDAQ Adv/Vol/Dec 385/1.39 bln/2012 NYSE Adv/Vol/Dec 528/497.4 mln/2473

1:30 pm : Stocks are holding their recent levels near session lows and the S&P 500 trades lower by 1.3%.

The Dow Jones Transportation Average is down 1.0% as it outperforms the remaining industrials. Kansas City Southern (KSU 79.68, +2.30) is the lone advancer among the twenty transportation stocks. The rail operator trades higher by 3.0% after reporting earnings of $0.82, which was $0.03 below Capital IQ consensus estimates. Meanwhile, the company's third quarter revenue of $577.4 million was in-line with the Capital IQ consensus. Peers CSX (CSX 21.24, -0.11), Norfolk Southern (NSC 66.25, -0.45), and Union Pacific (UNP 124.38, -0.96) are all registering losses between 0.5% and 0.8%.

Overseas Shipholding Group (OSG 3.24, -0.30) is the weakest transportation component. The oil tanker operator is sliding 8.5% as it trades near its all-time low of $3.13.DJ30 -169.31 NASDAQ -59.98 SP500 -20.20 NASDAQ Adv/Vol/Dec 389/1.29 bln/1995 NYSE Adv/Vol/Dec 579/465.1 mln/2403

1:00 pm : Stocks began the last session of the week on a negative note after yet another round of disappointing earnings. Sellers dominated the first half of the trading day as the major averages declined steadily. At midday, the S&P 500 is down 1.4% while Nasdaq is lower by 1.9%.

The industrial sector is one of the weakest performers. Within the space, Parker-Hannifin (PH 78.83, -6.24) is slipping 7.3%. The manufacturer of industrial equipment reported earnings of $1.57, which was $0.17 worse than the Capital IQ consensus estimate. In addition, the company's revenue declined 0.6% year-to-year to $3.21 billion, which was in-line with the Capital IQ consensus. Also of note, the company lowered its full-year 2013 guidance below Capital IQ consensus.

General Electric (GE 22.16, -0.64) is off by 2.9% after reporting earnings and revenues below Capital IQ consensus. However, the management noted that the company is performing well, and is on track to deliver double-digit earnings growth in 2012.

Caterpillar (CAT 84.03, -2.58) is down 3.0% after reporting a 6.0% increase in retail sales of machines during September. The rate appears to be slowing as sales growth during the previous two months was reported at 13.0% in August and 14.0% in July.

On the upside, freight carrier Forward Air (FWRD 33.14, +2.53) is spiking 8.3% after beating Capital IQ earnings estimates by $0.01, and reporting in-line revenue at $143.5 million. In addition, the company issued in-line guidance for the fourth quarter as it expects its earnings to fall between $0.48 and $0.52. Following the report, Wolfe Trahan upgraded the stock to ‘outperform' from ‘peer perform.'

Staffing firm ManpowerGroup (MAN 39.45, +3.47) is surging 9.6% after beating top and bottom line expectations. In addition, the company raised its fourth quarter guidance above Capital IQ consensus.

Looking at the technology sector, Advanced Micro Devices (AMD 2.24, -0.38) reported a loss of $0.20, which was $0.04 worse than the Capital IQ consensus estimate. In addition, the company's revenue of $1.27 billion was in-line with Capital IQ analyst expectations. Also of note, the second largest manufacturer of microprocessors issued downside guidance for the fourth quarter, and announced restructuring plans in order to improve profitability. Currently, the stock trades lower by 14.4%.

Marvell Technology (MRVL 7.58, -1.25) is sliding 14.3% after lowering its third quarter guidance. The company now expects revenue to fall between $765 million and $785 million. This is down from the previous range of $800 million to $850 million, and below the Capital IQ consensus estimate of $815.58 million. The management commented on the lowered expectations by saying that "the continued slowdown in the global economy during the third quarter is resulting in a weaker PC market than previously anticipated." The guidance cut was met with a slew of downgrades as Credit Suisse, Credit Agricole, JP Morgan, Lazard, Jefferies, Deutsche Bank, and FBR Capital all lowered their rating of the semiconductor manufacturer.

On the upside, SanDisk (SNDK 44.81, +1.95) is advancing 4.6% after beating on earnings and revenues. The flash memory maker reported earnings of $0.48, which was $0.14 ahead of the Capital IQ consensus estimate. Meanwhile, the company's revenue of $1.27 billion was ahead of the $1.22 billion expected by the Capital IQ consensus. Additionally, Piper Jaffray upgraded the stock to ‘overweight' from ‘neutral' following the earnings release.

Quick service restaurants are seeing weakness following disappointing earnings from McDonald's (MCD 89.22, -3.64) and Chipotle Mexican Grill (CMG 241.23, -44.70).

McDonald's is sliding 3.9% after its earnings of $1.43 fell short of the Capital IQ consensus estimate of $1.47. Meanwhile, the company's revenues were reported at $7.15 billion, which was in-line with the Capital IQ consensus.

Elsewhere, Chipotle is falling 15.8% after missing on both earnings and revenues. The management commented on the upcoming quarter by saying they do not expect food inflation to be an issue. Following the earnings report, Wedbush downgraded the stock to ‘neutral' from ‘outperform' with a $270 price target.

Peers Buffalo Wild Wings (BWLD 83.88, -2.25), Panera Bread (PNRA 160.80, -8.74), and Starbucks (SBUX 45.68, -1.73) are all down between 2.7% and 5.2%.

Existing home sales for September hit an annualized rate of 4.75 million units, which is stronger than the rate of 4.70 million units that had been generally expected by the Briefing.com consensus. The pace for September is down from the prior month rate of 4.83 million units.

Note that October options expire today.DJ30 -172.71 NASDAQ -61.79 SP500 -20.37 NASDAQ Adv/Vol/Dec 370/1.21 bln/1980 NYSE Adv/Vol/Dec 522/440.2 mln/2460

12:35 pm : Equities continue marking fresh session lows and the S&P 500 is down 1.4%.

Steel producers are broadly weaker as the materials sector comes under pressure. AK Steel (AKS 5.47, -0.32) is slumping 5.5% while Cliffs Natural Resources (CLF 44.54, -1.25), Steel Dynamics (STLD 12.68, -0.32), and United States Steel (X 22.24, -0.62) are all down between 2.4% and 3.0%.

Meanwhile, chemical producers are also among the weakest performers. Earlier, Calgon Carbon Corporation (CCC 12.88, -1.10) announced that it expects third quarter sales of $135 million, which is below the Capital IQ consensus of $144.97 million. The stock is sliding 7.9% in reaction.DJ30 -168.41 NASDAQ -61.04 SP500 -19.87 NASDAQ Adv/Vol/Dec 368/1.12 bln/1966 NYSE Adv/Vol/Dec 515/420.1 mln/2446

12:00 pm : The key indices continue pushing to fresh lows as the S&P 500 now trades lower by 1.2%.

Technology firms continue to report disappointing earnings coupled with cautious guidance. Earlier, Advanced Micro Devices (AMD 2.22, -0.40) reported a loss of $0.20, which was $0.04 worse than the Capital IQ consensus estimate. In addition, the company's revenue of $1.27 billion was in-line with Capital IQ analyst expectations. Also of note, the second largest manufacturer of microprocessors issued downside guidance for the fourth quarter, and announced restructuring plans in order to improve profitability. Currently, the stock trades lower by 15.3%.

Marvell Technology (MRVL 7.60, -1.23) is sliding 13.9% after lowering its third quarter guidance. The company now expects revenue to fall between $765 million and $785 million. This is down from the previous range of $800 million to $850 million, and below the Capital IQ consensus estimate of $815.58 million. The management commented on the lowered expectations by saying that "the continued slowdown in the global economy during the third quarter is resulting in a weaker PC market than previously anticipated." The guidance cut was met with a slew of downgrades as Credit Suisse, Credit Agricole, JP Morgan, Lazard, Jefferies, Deutsche Bank, and FBR Capital all lowered their rating of the semiconductor manufacturer.

On the upside, SanDisk (SNDK 44.68, +1.82) is advancing 4.3% after beating on earnings and revenues. The flash memory maker reported earnings of $0.48, which was $0.14 ahead of the Capital IQ consensus estimate. Meanwhile, the company's revenue of $1.27 billion was ahead of the $1.22 billion expected by the Capital IQ consensus. Additionally, Piper Jaffray upgraded the stock to ‘overweight' from ‘neutral' following the earnings release.DJ30 -147.81 NASDAQ -51.36 SP500 -16.76 NASDAQ Adv/Vol/Dec 464/978.1 mln/1849 NYSE Adv/Vol/Dec 559/384.1 mln/2367

11:30 am : The major averages continue to hover near their respective session lows. The S&P 500 is down 1.0%.

The industrial sector is the weakest performer of the day. Within the space, Parker-Hannifin (PH 78.00, -7.08) is slipping 8.3%. The manufacturer of industrial equipment reported earnings of $1.57, which was $0.17 worse than the Capital IQ consensus estimate. In addition, the company's revenue declined 0.6% year-to-year to $3.21 billion, which was in-line with the Capital IQ consensus. Also of note, the company lowered its full-year 2013 guidance below Capital IQ consensus.

General Electric (GE 22.22, -0.59) is off by 2.6% after reporting earnings and revenues below Capital IQ consensus. However, the management noted that the company is performing well and is on track to deliver double-digit earnings growth in 2012.

Caterpillar (CAT 84.27, -2.34) is down 2.7% after reporting a 6.0% increase in retail sales of machines during September. The rate appears to be slowing as sales growth during the previous two months was reported at 13.0% in August and 14.0% in July.

On the upside, freight carrier Forward Air (FWRD 33.35, +2.74) is spiking 9.0% after beating Capital IQ earnings estimates by $0.01 and reporting in-line revenue at $143.5 million. In addition, the company issued in-line guidance for the fourth quarter as it expects its earnings to fall between $0.48 and $0.52. Following the report, Wolfe Trahan upgraded the stock to ‘outperform' from ‘peer perform.'

Staffing firm ManpowerGroup (MAN 39.68, +3.70) is surging 10.3% after beating top and bottom line expectations. In addition, the company raised its fourth quarter guidance above Capital IQ consensus.DJ30 -134.21 NASDAQ -43.74 SP500 -14.57 NASDAQ Adv/Vol/Dec 507/847.1 mln/1760 NYSE Adv/Vol/Dec 597/354.9 mln/2292

11:00 am : The major averages trade near their respective session lows and the S&P 500 is off by 0.7%.

Quick service restaurants are seeing weakness following disappointing earnings from McDonald's (MCD 89.94, -2.92) and Chipotle Mexican Grill (CMG 247.61, -38.32).

McDonald's is sliding 3.2% after its earnings of $1.43 fell short of the Capital IQ consensus estimate of $1.47. Meanwhile, the company's revenues were reported at $7.15 billion, which was in-line with the Capital IQ consensus. Meanwhile, Chipotle is falling 13.3% after missing on both earnings and revenues. The management commented on the upcoming quarter by saying they do not expect food inflation to be an issue. Following the earnings report, Wedbush downgraded the stock to ‘neutral' from ‘outperform' with a $270 price target.

Peers Buffalo Wild Wings (BWLD 84.35, -1.78), Panera Bread (PNRA 162.07, -7.47), and Starbucks (SBUX 45.82, -1.59) are all down between 2.1% and 4.5%.

Note that today is October options expiration.DJ30 -102.10 NASDAQ -29.44 SP500 -10.27 NASDAQ Adv/Vol/Dec 594/675.9 mln/1617 NYSE Adv/Vol/Dec 756/317.9 mln/2072

10:35 am : The dollar index has been in positive territory all morning, which has weighed on commodities this morning. Crude oil just sold off sharply, while precious metals remain in the red.

Nov crude oil was just below $93 about 30 min ago and dropped about $1.30/barrel to a new LoD of $91.63. In current action, crude oil is -0.1% at $92.00/barrel. Nov natural gas is +0.8% at $3.61/MMBtu.

Precious metals have been in negative territory all session, but have been inching higher. In current trade Dec gold is -0.4% at $1737.00/oz and Dec silver is -1.2% at $32.48/oz.DJ30 -103.94 NASDAQ -27.62 SP500 -9.83 NASDAQ Adv/Vol/Dec 586/587.6 mln/1604 NYSE Adv/Vol/Dec 745/297 mln/2069

10:05 am : Stocks are holding their levels following the latest existing home sales data. The S&P 500 is lower by 0.6%.

Existing home sales for September hit an annualized rate of 4.75 million units, which is stronger than the rate of 4.70 million units that had been generally expected by the Briefing.com consensus. The pace for September is down from the prior month rate of 4.83 million units.

The SPDR S&P Homebuilders ETF (XHB 26.06, -0.11) was little changed following the release of the data.DJ30 -99.18 NASDAQ -20.67 SP500 -8.77 NASDAQ Adv/Vol/Dec 543/382.1 mln/1551 NYSE Adv/Vol/Dec 730/250.8 mln/2002

09:45 am : The markets have maintained their bearish pre-market sentiment. Currently, the Dow is the weakest index as it trades lower by 0.8%.

Looking at the weakest Dow components, Caterpillar (CAT 84.93, -1.68) is down 2.0% after reporting a 6.0% September increase in retail sales of machines. The growth rate appears to be slowing as sales growth during the previous two months was reported at 13.0% in August and 14.0% in July.

General Electric (GE 22.18, -0.63) is off by 2.6% after reporting earnings and revenues below Capital IQ consensus. However, the management noted that the company is performing well and is on track to deliver double-digit earnings growth in 2012.

McDonald's (MCD 89.80, -3.06) is sliding 3.3% after its earnings of $1.43 fell short of the Capital IQ consensus estimate of $1.47. Meanwhile, the company's revenues were reported at $7.15 billion, which was in-line with the Capital IQ consensus.

September existing home sales will be announced at 10:00 ET.DJ30 -99.86 NASDAQ -21.02 SP500 -8.73 NASDAQ Adv/Vol/Dec 374/278.3 mln/1672 NYSE Adv/Vol/Dec 622/226.1 mln/2069

09:15 am : S&P futures vs fair value: -3.70. Nasdaq futures vs fair value: -10.00. Heading into the open, equity futures continue pointing to a lower start to the session.

Looking further at pre-market movers, Honeywell (HON 60.64, -0.78) is down 1.3% after the company reported mixed earnings. HON's third quarter earnings were reported at $1.20 which was $0.07 better than the Capital IQ consensus estimate. Meanwhile, the company's revenues came in at $9.34 billion, which was below the Capital IQ consensus estimate of $9.51 billion. In addition, the company lowered its full-year 2012 revenue guidance below Capital IQ consensus.

Elsewhere, Caterpillar (CAT 84.90, -1.72) is slipping 2.0% after reporting a 6.0% September increase in retail sales of machines. The growth rate appears to be slowing as sales growth during the previous two months was reported at 13.0% in August and 14.0% in July.

September existing home sales will be announced at 10:00 ET.

09:00 am : [BRIEFING.COM] S&P futures vs fair value: -4.20. Nasdaq futures vs fair value: -9.30. U.S. equity futures have lifted off their pre-market lows, but they remain firmly in the red. The S&P 500 futures are down 0.2%.

The major Asian bourses ended mixed as tech-heavy indices like Taiwan's Taiex (-0.8%) and South Korea's Kospi (-0.8%) were notable laggards. Bank of Japan Governor Masaaki Shirakawa spoke overnight, suggesting the global slowdown may delay capital spending plans by corporations and that the Bank of Japan may consider further easing. Data in the region was light with China's foreign direct investment falling 3.8% since the start of the year. This is below the 3.4% decrease observed during the same period last year.

Japan's Nikkei added 0.2% as the index saw its best weekly advance of 2012. Exporters gained as the yen continued to weaken. Robotics maker Fanuc rallied 3.9% and automaker Honda Motor jumped 1.1%.

In Hong Kong, the Hang Seng finished higher by 0.2% to end at its best level in more than seven months. Property stocks pulled back as Sun Hung Kai slipped 0.9% and Sino Land gave back 0.7%. Elsewhere, MGM China climbed 4.3% after receiving a lease from the Macau government to develop a resort and casino on the Cotai Strip.

China's Shanghai Composite slipped 0.2% as investors remained cautious ahead of earnings season which begins next week. Cement maker Anhui Conch outperformed, posting a 1.9% advance.

In Europe, the latest Eurozone Summit came to an end with an agreement to have the legal framework on a Banking Union structured by year's end and finalized by 2014. No decision has been made on a Spanish bailout, though France's President Francois Hollande said that if Spain does request aid, no further conditions should be imposed. Meanwhile, German Chancellor Angela Merkel said that joint Euro-area debt is out of the question.

France's CAC is slipping 0.5% as financials lag. BNP Paribas, Credit Agricole, and Societe Generale are all down between 1.8% and 2.3%. Meanwhile, industrial stocks are generally stronger. Safran and Vallourec are higher by 0.9% and 1.7%, respectively.

In Germany, the DAX is down 0.5%. Financials are the biggest laggards as Commerzbank and Deutsche Bank are seeing respective losses of 2.8% and 2.4%. Car and tire makers are among the advancers. BMW and Volkswagen are both up near 1.2% while Continental is firmer by 1.6%.

In the United Kingdom, the FTSE is slipping 0.2%. Aggreko is down 8.1% after the company said its full-year profit will be 2.5% lower than previously expected. Producers of basic materials are outperforming. Johnson Matthey is rising by 2.9% and Polymetal International is adding 1.2%.

08:31 am : [BRIEFING.COM] S&P futures vs fair value: -5.10. Nasdaq futures vs fair value: -10.00. Equity futures are near their pre-market lows as the S&P 500 futures trade down 0.3%.

McDonald's (MCD 90.26, -2.51) is down 2.7% after its earnings of $1.43 fell short of the Capital IQ consensus estimate of $1.47. Meanwhile, the company's revenues were reported at $7.15 billion, which was in-line with the Capital IQ consensus.

Marvell Technology (MRVL 7.60, -1.23) is sliding 13.9% after lowering its third quarter guidance. The company now expects revenue to fall between $765 million and $785 million. This is down from the previous range of $800 million to $850 million, and below the Capital IQ consensus estimate of $815.58 million. The management commented on the lowered expectations by saying that "the continued slowdown in the global economy during the third quarter is resulting in a weaker PC market than previously anticipated." The guidance cut was met with a slew of downgrades as Credit Suisse, Credit Agricole, JP Morgan, Lazard, Jefferies, Deutsche Bank, and FBR Capital all lowered their rating of the semiconductor manufacturer.

Riverbed Technology (RVBD 22.86, +2.17) is jumping 10.5% after beating on earnings and reporting revenues in-line with the Capital IQ consensus. Following the earnings release, Northland Securities raised their price target on the stock to $23 from $17.

08:00 am : S&P futures vs fair value: -4.20. Nasdaq futures vs fair value: -10.00. U.S. equity futures are near their pre-market lows following disappointing earnings from technology firms.

Overnight, the global equity markets were mixed as weak earnings and weaker-than-expected Chinese Foreign Direct Investing weighed on the markets. The tech heavy indices in South Korea and Taiwan were noticeable laggards to the region. South Korea's Kospi and Taiwan's TAIEX both lost 0.8%. Generally speaking, Asian macroeconomic data was light. In Japan, the All Industries Activity Index showed a month-over-month increase of 0.1% which was slightly lower than the expected 0.2% uptick. Looking at regional indices, Japan's Nikkei and Hong Kong's Hang Seng both added 0.2% while China's Shanghai Composite slipped 0.2%.

In Europe, the latest Eurozone Summit came to an end with an agreement to have the legal framework on a Banking Union structured by year end and finalized by 2014. No decision has been made on a Spanish bailout, though France's President Francois Hollande said that if Spain does request aid, no further conditions should be imposed. Meanwhile, German Chancellor Angela Merkel said that joint Euro-area debt is out of the question. European indices are generally lower as they near midday. France's CAC and Germany's DAX are both lower by 0.6% while UK's FTSE is slipping 0.2%.

In U.S. corporate news, AMD (AMD 2.63, +0.01) is adding 0.4% despite reporting mixed earnings. The second-largest microprocessor manufacturer reported a $0.20 loss per share, which was $0.04 worse than the Capital IQ consensus estimate. Meanwhile, the company’s revenue of $1.27 billion fell in-line with Capital IQ consensus. Lastly, the company issued downside guidance for the fourth quarter and announced restructuring plans in order to improve profitability.

Microsoft (MSFT 28.94, -0.55) is lower by 1.9% after its earnings of $0.65 exceeded Capital IQ consensus estimates by $0.02. However, the company's revenue was reported at $16.01 billion, which fell short of the Capital IQ consensus estimate of $16.42 billion.

Chipotle Mexican Grill (CMG 253.00, -32.93) is sliding 11.5% after missing on both earnings and revenues. The management commented on the upcoming quarter by saying they do not expect food inflation to be an issue. Following the earnings report, Wedbush downgraded the stock to ‘neutral' from ‘outperform' with a $270 price target.

General Electric (GE 22.40, -0.41) is off by 1.8% after reporting earnings and revenues below Capital IQ consensus. However, the management noted that the company is performing well and is on track to deliver double-digit earnings growth in 2012.

Today's economic data is limited to September existing home sales which will be announced at 10:00 ET.

06:34 am : [BRIEFING.COM] S&P futures vs fair value: -5.00. Nasdaq futures vs fair value: -13.50.

06:34 am : Nikkei...9002.68...+19.80...+0.20%. Hang Seng...21551.76...+33.10...+0.20%.

06:34 am : FTSE...5907.79...-9.30...-0.20%. DAX...7402.92...-34.30...-0.50%.

Special thanks to Bloomberg, CNNMoney, Reuters and Yahoo! Finance for their market summaries. gm

Best Regards,
M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
Image@ http://twitter.com/wrbtrader and http://stocktwits.com/wrbtrader

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