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 Post subject: October 24th Wednesday TF, 6E & CL Futures $2187.50
PostPosted: Wed Oct 24, 2012 8:00 pm 
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Joined: Sat Jan 10, 2009 2:06 pm
Posts: 4335
Location: Canada
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Trade Results of M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
Price Action Trading (no technical indicators)

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

Price Action Trade Performance for Today: Emini TF ($TF_F) futures @ $1440.00 dollars or +14.40 points, EuroFX 6E futures @ ($212.50) dollars or -0.0017 ticks and Light Crude Oil CL (WTI) futures @ $960.00 dollars or +0.96 points. Total Profit @ $2187.50 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=1351

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. 24 (Bloomberg) -- Bloomberg's Deborah Kostroun reports on the performance of the U.S. equity market today. U.S. stocks declined, sending the Standard & Poor’s 500 Index to a seven-week low, as the Federal Reserve’s call for moderate growth offset signs of improvement in Chinese factory output and America’s housing market.

Investors sidelined by cloud of uncertainty

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

NEW YORK (CNNMoney) -- U.S. stocks closed slightly lower Wednesday, after trading in a narrow range for most of the day. Investors found few reasons to place any big bets.

Corporate earnings continue to paint a mixed picture of the health of the global economy, and worries about the presidential election, the fiscal cliff and Europe's debt problems are keeping investors on edge.

"People are frozen now and not interested in adding to their portfolios until they get a clear signal on what will happen with the fiscal cliff and taxes on their investments," said Todd Morgan, senior managing director at Bel Air Investments.

Investors shrugged off the Federal Reserve's latest policy statement, which, as expected, didn't signal any major changes to interest rates or the central bank's plan to stimulate the economy through large bond-buying programs.

The Dow Jones Industrial Average, the S&P 500 and the Nasdaq closed down between 0.2% and 0.3%. All three indexes are up between 7% and 15% so far this year.

Wednesday's action (or lack thereof) is typical of the markets lately. After having their worst day since June last Friday, stocks opened the week barely changed, before another sell-off sent the Dow and S&P 500 to their lowest levels in seven weeks.

"For so much of this year, there's been a divergence between the stock market and the economy. The economy hasn't been great but the stock market moves higher," said Sam Ginzburg, head of trading at First NY. "The stock market and the economy have been converging over the past few days as people are getting jittery."

Earnings from Facebook (FB) helped counteract some of the gloom surrounding third quarter corporate results. Investors were relieved that Facebook's earnings came in as expected, with sales up 24%. Shares of the social media company shot up more than 20%, the largest one-day gain since Facebook went public in May.

Other social media sites followed suit. LinkedIn (LNKD) and Yelp (YELP) logged big gains.

Zynga (ZNGA) closed lower, but its stock moved higher after hours. Zynga's third quarter results released after the bell beat analysts' estimates.

Related: Facebook stock spikes 22%

Boeing (BA, Fortune 500) reported earnings that beat analysts' expectations and raised its profit outlook for the year. Despite that, the aircraft manufacturer's stock closed slightly lower. AT&T (T, Fortune 500), another blue chip, closed even after activating 1.3 million iPhones during the quarter.

Asian markets ended mixed after a report showed China's manufacturing sector hit a three-month high in October.

HSBC's initial purchasing manager's index for China jumped to 49.1 in October from 47.9 the previous month, the bank said Wednesday. Any reading below 50 indicates that factory growth is shrinking rather than picking up speed.

The Shanghai Composite (SHCOMP)edged up nearly 0.1% and the Hang Seng (HSI) in Hong Kong gained 0.3%, while Japan's Nikkei (N225) slid 0.6%.

Full coverage on Europe's Debt Crisis

Meanwhile, news out of Europe was less encouraging. A key survey of purchasing managers in the euro area underscored the grim economic situation in the currency zone when it fell to a 40-month low of 45.8 in October, signaling continued declines in the manufacturing and services sectors. Additionally, a gauge of business sentiment in Germany, the region's economic engine, fell to a two-and-a-half year low.

Despite the dour data, European stocks ended the day higher. Britain's FTSE 100 (UKX) and the DAX (DAX) in Germany moved up 0.1% and 0.3%, while France's CAC 40 (CAC40) edged up 0.6%.

On the U.S. economic front, new home sales for September beat economists' expectations, offering yet another sign of an improving housing market. The Census Bureau said that new home sales for September came in at an annual rate of 389,000, climbing 5.7% to hit a 2-year high.

Fear & Greed Index

Companies: Trading in shares of IAC (IACI) was briefly halted and some trades declared erroneous by Nasdaq Wednesday. The media conglomerate confused investors when it altered its forecast for one division. IAC's stock closed down more than 8%.

The Manhattan U.S. attorney filed a $1 billion lawsuit against Bank of America Corp (BAC, Fortune 500) for what it claims are the bank's fraudulent practices underwriting mortgage through Fannie Mae and Freddie Mac. Bank of America's stock closed down 0.5%.

Netflix (NFLX) shares plunged nearly 12%, after the company reported disappointing figures for new streaming subscriptions and offered weak guidance Tuesday after the bell.

Ford (F, Fortune 500) announced plans on Wednesday to restructure its European manufacturing operations, citing weak vehicle demand. The automaker's shares still ended the day higher. g

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

Oil for December delivery lost 94 cents to $85.73 a barrel.

Gold futures for December delivery fell $7.80 to $1,701.60 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury edged lower, pushing the yield up to 1.77% from 1.76% late Tuesday.

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Market Update

4:15 pm : Stocks began the session on an upbeat note, but the bullish sentiment was dispelled in the opening minutes. The S&P 500 and Nasdaq marked their respective highs minutes into the trading day, before sliding back towards the unchanged level. The Dow, however, held its gains a bit longer before recoupling with the other two indices. This afternoon's statement from the Federal Open Market Committee was met with mostly muted reaction, and the S&P 500 finished lower by 0.3%.

The Federal Open Market Committee said, "Information received since the Federal Open Market Committee met in September suggests that economic activity has continued to expand at a moderate pace in recent months. Growth in employment has been slow, and the unemployment rate remains elevated. Household spending has advanced a bit more quickly, but growth in business fixed investment has slowed. The housing sector has shown some further signs of improvement, albeit from a depressed level."

The policy statement indicated that the Committee will continue purchasing agency mortgage-backed securities at a pace of $40 billion per month, and Operation Twist will continue through the end of this year.

Looking at technology earnings, Facebook (FB 23.22, +3.72) spiked 19.1% after reporting earnings of $0.12 on $1.26 billion in revenue. Investors welcomed the results as both numbers came in ahead of the Capital IQ consensus estimates. The company also pointed to improved results from its mobile advertising. Following the earnings report, Bank of America/Merrill Lynch, Citigroup, and Stifel Nicolaus all upgraded the stock to ‘buy.'

Netflix (NFLX 60.11, -8.10) slid 11.9% after reporting mixed earnings. The company announced earnings of $0.13 which was $0.09 better than the Capital IQ consensus estimate. Meanwhile, its revenue of $905 million was in-line with Capital IQ estimates. The management commented on their expansion into Latin America by saying, "The biggest issue holding back much stronger growth is payments."

Juniper Networks (JNPR 15.99, -1.58) fell 9.0%. Yesterday, the company reported third quarter earnings of $0.22 on $1.12 billion in revenue. Both numbers were ahead of the Capital IQ consensus estimate. However, the company issued downside fourth quarter earnings and revenue guidance which gave investors cause for concern.

Restaurant stocks were in focus after a handful of industry components reported their earnings. Brinker International (EAT 30.01, -3.44) lost 10.3% after reporting mixed results. During the past quarter, the restaurant operator earned $0.37, which was just short of the $0.38 forecast by the Capital IQ consensus. However, the company's revenue of $683.5 million was ahead of Capital IQ expectations. The management also made cautious comments regarding the current quarter and said beef prices are the biggest concern.

Buffalo Wild Wings (BWLD 74.70, -8.76) fell 10.5% after missing on both earnings and revenues. The company's earnings of $0.57 fell short of the $0.61 expected by the Capital IQ consensus. Meanwhile, the restaurant operator reported revenue of $246.9 million, which was lower than the $254.57 million forecast by the Capital IQ consensus. The management cited rising input prices as the reason for disappointing earnings. Note that today's selling has dropped the stock to levels not seen since middle of August.

Panera Bread (PNRA 168.43, +8.09) advanced 5.1% after exceeding top and bottom line expectations. In addition, the company raised its fourth quarter earnings forecast above the Capital IQ consensus.

The Dow Jones Transportation Average underperformed the broader market, and ended with a loss of 2.0%. The weakness in the bellwether group was a result of disappointing earnings from three components. CH Robinson (CHRW 57.55, -3.42) shed 5.6% after its earnings of $0.72 missed Capital IQ consensus estimates by $0.01. The freight carrier's revenue of $2.88 billion also fell short of Capital IQ analyst expectations.

Delta Air Lines (DAL 10.04, -0.11) also delivered a disappointing quarterly report as its top and bottom line results fell short of the Capital IQ consensus forecast. Shares of Delta settled lower by 1.1% following the release.

Norfolk Southern (NSC 61.09, -4.92) dipped 7.5% after the rail operator's earnings of $1.24 exceeded Capital IQ consensus estimates, while its revenue of $2.69 billion was in-line with expectations. Note that the results are being compared to downside guidance which the company issued on September 19. The remaining railroads in the transportation average were mixed. Kansas City Southern (KSU 79.07, +0.51) added 0.7%, while CSX (CSX 20.59, -0.72) and Union Pacific (UNP 120.87, -2.35) shed 3.4% and 1.9%, respectively.

New home sales in September hit an annualized rate of 389,000, which was up from August's revised rate of 368,000, and better than the rate of 385,000 that had been broadly expected by the Briefing.com consensus.

Separately, the latest Housing Price Index from the FHFA was also released. For August, the Index increased by 0.7%, which follows a 0.1% increase in the prior month.

The MBA Mortgage Index showed a 12.0% decrease in new mortgage applications during the past week. Today's number follows last week's 4.2% decline.

Tomorrow, weekly initial and continuing claims, durable orders, and durable orders --ex transportation will all be reported at 8:30 ET. In addition, September pending home sales will be announced at 10:00 ET.

The U.S. Treasury will auction off $29 billion in 7-yr notes.DJ30 -25.19 NASDAQ -8.76 SP500 -4.36 NASDAQ Adv/Vol/Dec 1082/1.90 bln/1358 NYSE Adv/Vol/Dec 1324/650.2 mln/1662

3:35 pm : Crude oil, natural gas and gold remained in negative territory almost all session. Silver spent most of today's session in the red.

Dec crude oil was weak this morning and extended losses following bearish weekly inventory data. Ultimately, following the data, Dec crude fell below the $85 level, dropping as low as $84.94 and finished the day $0.91 lower at $85.76. Nov natural gas ended the day 8 cents lower at $3.45/MMBtu.

Precious metals has a tough morning, but finished the day mostly strong as gold and silver erases most of the day's losses. Copper futures finished trading at the unchanged mark at $3.57/lb. Dec gold ended down $7.80 at $1701.60/oz and Dec silver ended $0.12 lower at $31.67/oz.DJ30 -30.67 NASDAQ -9.72 SP500 -5.01 NASDAQ Adv/Vol/Dec 1078/1646.7 mln/1366 NYSE Adv/Vol/Dec 1255/462 mln/1704

3:00 pm : The key indices are all within a point of their respective unchanged levels.

Focusing on today's after-hours earnings, Logitech (LOGI 8.71, +0.26) is expected by the Capital IQ consensus to report earnings of $0.12 on revenue of $575.5 million.

Provider of security software, Symantec (SYMC 17.47, +0.10), is also scheduled to report. The Capital IQ consensus expects the company to announce earnings of $0.38 on $1.65 billion in revenue.

Other notable names which will report after-hours include, Cliffs Natural Resources (CLF 43.40, -0.15), F5 Networks (FFIV 93.98, -1.56), and Zynga (ZNGA 2.17, -0.03).

Tomorrow, Aetna (AET 43.83, +0.17), Alaska Air (ALK 38.27, +0.05), Colgate-Palmolive (CL 106.72, +0.19), First Solar (FSLR 23.33, +0.01), Procter & Gamble (PG 68.29, +0.85), and Sprint Nextel (S 5.62, -0.03) are among the companies scheduled to report.DJ30 -0.98 NASDAQ -0.86 SP500 -0.94 NASDAQ Adv/Vol/Dec 1162/1.42 bln/1260 NYSE Adv/Vol/Dec 1429/390.1 mln/1522

2:30 pm : The major averages have shown little reaction to comments from the Federal Reserve and the S&P 500 trades higher by 0.2%.

The Federal Open Market Committee has released its latest policy statement which indicated rates are likely to remain at exceptionally low levels through mid-2015.

The Committee said that "Information received since the Federal Open Market Committee met in September suggests that economic activity has continued to expand at a moderate pace in recent months. Growth in employment has been slow, and the unemployment rate remains elevated. Household spending has advanced a bit more quickly, but growth in business fixed investment has slowed. The housing sector has shown some further signs of improvement, albeit from a depressed level."

Regarding inflation, Committee members acknowledged that prices have seen an uptick, but longer-term inflation expectations have remained stable.

Lastly, the statement indicated that the Committee will continue purchasing agency mortgage-backed securities at a pace of $40 billion per month and Operation Twist will continue through the end of this year.DJ30 +21.81 NASDAQ +3.82 SP500 +2.44 NASDAQ Adv/Vol/Dec 1195/1.31 bln/1218 NYSE Adv/Vol/Dec 1563/352.1 mln/1373

2:00 pm : The major averages are holding their afternoon levels ahead of Federal Reserve's policy statement scheduled for a 14:15 ET release.

The financial sector is outperforming the broader market and the SPDR Financial Select Sector ETF (XLF 15.92, +0.08) is higher by 0.5%. Among the majors, Goldman Sachs (GS 120.96, +1.96) and Citigroup (C 37.51, +0.62) are the top performers as they see respective gains of 1.6% and 1.7%.

Elsewhere, Bank of America (BAC 9.38, +0.02) is tacking on 0.2% after the U.S. Attorney in New York sued the financial giant for more than $1 billion on allegations of mortgage fraud related to Countrywide loans. Earlier, Atlantic Equities upgraded Bank of America to ‘overweight' from ‘neutral.'

Meanwhile, European financials are seeing mixed performance. Barclays (BCS 14.74, -0.16) is off by 1.1%, while UBS (UBS 13.17, +0.11) trades higher by 0.8% as it begins cutting up to 400 investment bank and trading jobs.DJ30 +17.45 NASDAQ +2.01 SP500 +1.86 NASDAQ Adv/Vol/Dec 1167/1.20 bln/1228 NYSE Adv/Vol/Dec 1553/315.9 mln/1369

1:30 pm : The major averages are holding their afternoon levels as the S&P 500 trades higher by 0.1%.

The Dow Jones Transportation Average is sliding 1.3% as it lags the broader market. The weakness in the bellwether group is a result of disappointing earnings from three components. CH Robinson (CHRW 58.40, -2.58) is lower by 4.2% after its earnings of $0.72 missed Capital IQ consensus estimates by $0.01. The freight carrier's revenue of $2.88 billion also fell short of Capital IQ analyst expectations.

Delta Air Lines (DAL 9.86, -0.29) also reported disappointing quarterly results as its top and bottom line fell short of the Capital IQ consensus forecast. Delta stock trades lower by 2.9% following the release.

Norfolk Southern (NSC 61.15, -4.86) is down 7.4% as it trades at levels last seen in October 2011. The rail operator's earnings of $1.24 exceeded Capital IQ consensus estimates, while its revenue of $2.69 billion was in-line with Capital IQ analyst expectations. Note that the results are being compared to downside guidance which the company issued on September 19. The remaining railroads in the transportation average are mixed. Kansas City Southern (KSU 79.26, +0.70) is adding 0.9%, while CSX (CSX 20.68, -0.63) and Union Pacific (UNP 121.69, -1.53) are off by 3.0% and 1.2%, respectively.DJ30 +23.10 NASDAQ +0.53 SP500 +1.93 NASDAQ Adv/Vol/Dec 1144/1.12 bln/1247 NYSE Adv/Vol/Dec 1566/292.9 mln/1354

1:00 pm : Equities opened the session on a positive note. However, the bullish sentiment did not hold as the S&P 500 and Nasdaq marked their highs during the opening minutes, and headed lower since. Today’s in-line new home sales report did little to move the markets as investors await the Federal Reserve’s policy statement. At midday, the S&P 500 is higher by 0.2%.

The health care sector is outperforming the broader market. Within the group, Gilead Sciences (GILD 68.91, +4.00) is higher by 6.2% after its earnings of $1.00 and revenue of $2.43 billion beat Capital IQ consensus estimates.

NuVasive (NUVA 14.10, +1.45) is advancing 11.5% after beating Capital IQ earnings and revenue consensus estimates. It should be noted that the company issued downside full-year 2012 guidance and said "Market challenges led third quarter results to fall short of our expectations. We provided early warning of the shortfall and have implemented a plan to address the issues. We are re-engaging with our sales force on a deeper level, accelerating the pace of sales force hiring to more than compensate for losses in the quarter, and increasing executive engagement with our top customers."

Elsewhere, Molina Healthcare (MOH 25.00, +2.27) is surging 10.0% after its third quarter earnings and revenues exceeded Capital IQ estimates. Company management commented on the quarterly results by saying, ""The growth in our Washington revenue in the third quarter was more than enough to replace the revenue we lost as a result of the termination of our contract in Missouri. The developments in Washington are an example of the growth that is happening in our industry even without the impetus of federal legislation."

On the downside, United Therapeutics (UTHR 46.11, -7.17) is sliding 13.5% after the Food and Drug Administration denied approval of the company's NDA treatment in its current form.

Restaurant stocks are in focus after a handful of industry components reported their earnings. Brinker International (EAT 30.00, -3.44) is sliding 10.3% after reporting mixed results. During the past quarter, the restaurant operator earned $0.37, which was just short of the $0.38 forecast by the Capital IQ consensus. However, the company's revenue of $683.5 million was ahead of Capital IQ expectations. The management also made cautious comments regarding the current quarter and said beef prices are the biggest concern.

Buffalo Wild Wings (BWLD 73.46, -10.00) is falling 12.0% after missing on both earnings and revenues. The company's earnings of $0.57 fell short of the $0.61 expected by the Capital IQ consensus. Meanwhile, the restaurant operator reported revenue of $246.9 million, which was lower than the $254.57 million forecast by the Capital IQ consensus. The management blamed rising input prices on the disappointing earnings. Today's selling has dropped the stock to levels not seen since middle of August.

Panera Bread (PNRA 171.33, +10.99) is advancing 6.9% after exceeding top and bottom line expectations. In addition, the company raised its fourth quarter earnings forecast above Capital IQ consensus.

Looking at technology earnings, Facebook (FB 23.63, +4.13) is spiking 21.2% after reporting earnings of $0.12 on $1.26 billion in revenue. Investors welcomed the results as both numbers came in ahead of the Capital IQ consensus estimates. The company also pointed to improved results from its mobile advertising. Following the earnings report, Bank of America/Merrill Lynch, Citigroup, and Stifel Nicolaus all upgraded the stock to ‘buy.'

Netflix (NFLX 59.79, -8.43) is sliding 12.3% after reporting mixed earnings. The company announced earnings of $0.13 which was $0.09 better than the Capital IQ consensus estimate. Meanwhile, its revenue of $905 million was in-line with Capital IQ estimates. The management commented on their expansion into Latin America by saying "The biggest issue holding back much stronger growth is payments."

Juniper Networks (JNPR 16.50, -1.06) is down 6.1%. Yesterday, the company reported third quarter earnings of $0.22 on $1.12 billion in revenue. Both numbers were ahead of the Capital IQ consensus estimate. However, the company issued downside fourth quarter earnings and revenue guidance which is giving investors cause for concern.

New home sales in September hit an annualized rate of 389,000, which was up from August's revised rate of 368,000, and better than the rate of 385,000 that had been broadly expected by the Briefing.com consensus.

Separately, the latest Housing Price Index from the FHFA was also released. For August, the Index increased by 0.7%, which follows a 0.1% increase in the prior month.

Note that the Federal Reserve will issue a policy statement as well as an interest rate decision at 14:15 ET.DJ30 +28.42 NASDAQ +2.20 SP500 +2.35 NASDAQ Adv/Vol/Dec 1145/1.03 bln/1225 NYSE Adv/Vol/Dec 1563/269.9 mln/1341

12:30 pm : The S&P 500 is hovering near its flat line.

The materials sector is the one of the top performers of the day. Earlier, Dow Chemical (DOW 30.21, +1.66) announced third quarter earnings of $0.42 on $13.64 billion in revenue. The results were mixed as the company beat bottom line Capital IQ expectations, while missing on the top line. In addition, the chemical manufacturer announced a restructuring program which includes 2,400 job cuts, as well as plans to shutter approximately 20 manufacturing facilities. Currently, the stock trades higher by 5.8%.

Chemical producer PolyOne (POL 18.09, +1.25) beat on earnings, but missed Capital IQ revenue expectations. However, the stock is trading higher by 7.4% after the company said it expects double-digit fourth quarter earnings growth.

Elsewhere in the space, paper stocks are seeing some strength. Louisiana-Pacific (LPX 15.67, +0.37) and Neenah Paper (NP 26.55, +0.15) are adding 2.5% and 0.6%, respectively.DJ30 +13.86 NASDAQ -3.79 SP500 +0.41 NASDAQ Adv/Vol/Dec 1059/949.4 mln/1300 NYSE Adv/Vol/Dec 1470/248.3 mln/1431

12:00 pm : The three averages are all near their respective session lows and the S&P 500 is currently off by 0.1%.

Looking at technology earnings, Facebook (FB 23.47, +3.97) is spiking 20.4% after reporting earnings of $0.12 on $1.26 billion in revenue. Investors welcomed the results as both numbers came in ahead of the Capital IQ consensus estimates. The company also pointed to improved results from its mobile advertising. Following the earnings report, Bank of America/Merrill Lynch, Citigroup, and Stifel Nicolaus all upgraded the stock to ‘buy.'

Netflix (NFLX 58.07, -10.15) is sliding 14.9% after reporting mixed earnings. The company announced earnings of $0.13 which was $0.09 better than the Capital IQ consensus estimate. Meanwhile, its revenue of $905 million was in-line with Capital IQ estimates. The management commented on their expansion into Latin America by saying "The biggest issue holding back much stronger growth is payments."

Juniper Networks (JNPR 16.12, -1.45) is down 8.3%. Yesterday, the company reported third quarter earnings of $0.22 on $1.12 billion in revenue. Both numbers were ahead of the Capital IQ consensus estimate. However, the company issued downside fourth quarter earnings and revenue guidance which is giving investors cause for concern.DJ30 +10.15 NASDAQ -6.93 SP500 -1.06 NASDAQ Adv/Vol/Dec 1053/857.8 mln/1273 NYSE Adv/Vol/Dec 1408/221.1 mln/1476

11:30 am : The S&P 500 has returned near its unchanged level as the index trades higher by 0.1%.

Restaurant stocks are in focus after a handful of industry components reported their earnings. Brinker International (EAT 30.16, -3.28) is sliding 9.8% after reporting mixed results. During the past quarter, the restaurant operator earned $0.37, which was just short of the $0.38 forecast by the Capital IQ consensus. However, the company's revenue of $683.5 million was ahead of Capital IQ expectations. The management also made cautious comments regarding the current quarter and said beef prices are the biggest concern.

Buffalo Wild Wings (BWLD 73.64, -9.82) is falling 11.8% after missing on both earnings and revenues. The company's earnings of $0.57 fell short of the $0.61 expected by the Capital IQ consensus. Meanwhile, the restaurant operator reported revenue of $246.9 million, which was lower than the $254.57 million forecast by the Capital IQ consensus. The management blamed rising input prices on the disappointing earnings.

Panera Bread (PNRA 170.20, +9.86) is advancing 6.2% after exceeding top and bottom line expectations. In addition, the company raised its fourth quarter earnings forecast above Capital IQ consensus.DJ30 +36.70 NASDAQ +0.32 SP500 +2.01 NASDAQ Adv/Vol/Dec 1141/771.1 mln/1162 NYSE Adv/Vol/Dec 1570/195.3 mln/1285

11:00 am : The major averages are showing some divergence as the Dow trades near its session high, the Nasdaq is near its session low, while the S&P 500 hovers in the middle of its range.

The health care sector is outperforming the broader market. Within the group, Gilead Sciences (GILD 69.07, +4.16) is higher by 6.4% after its earnings of $1.00 and revenue of $2.43 billion beat Capital IQ consensus estimates.

NuVasive (NUVA 13.89, +1.24) is advancing 10.0% after beating Capital IQ earnings and revenue consensus estimates. It should be noted that the company issued downside full-year 2012 guidance and said "Market challenges led third quarter results to fall short of our expectations. We provided early warning of the shortfall and have implemented a plan to address the issues. We are re-engaging with our sales force on a deeper level, accelerating the pace of sales force hiring to more than compensate for losses in the quarter, and increasing executive engagement with our top customers."

Elsewhere, Molina Healthcare (MOH 25.90, +3.17) is surging 14.0% after its third quarter earnings and revenues exceeded Capital IQ estimates. Company management commented on the quarterly results by saying, ""The growth in our Washington revenue in the third quarter was more than enough to replace the revenue we lost as a result of the termination of our contract in Missouri. The developments in Washington are an example of the growth that is happening in our industry even without the impetus of federal legislation."

On the downside, United Therapeutics (UTHR 46.23, -7.04) is sliding 13.2% after the Food and Drug Administration denied approval of the company's NDA treatment in its current form.DJ30 +41.48 NASDAQ +2.16 SP500 +2.36 NASDAQ Adv/Vol/Dec 1143/632.9 mln/1108 NYSE Adv/Vol/Dec 1563/164.1 mln/1267

10:35 am : The dollar index has been pulling back after an overnight rally. In more recent action, the index staged a small rally, which put it back near the unchanged line and also added selling pressure on commodities.

Separately, Nov crude oil was around $86.50 just ahead of today's weekly oil inventory data out of the EIA. Following the report, which showed a notable build of 5.896 mln barrels, well above the consensus of a build of 1.8 mln, Nov crude dropped sharply to a new session low of $85.55. In current action, oil is now -1.3% at $85.58/barrel.

Natural gas has been volatile, again, this morning and has pulled back sharply after its morning rally. Nov nat gas just hit a new LoD of $3.44/MMBtu after falling 3.3% off of its session high. Currently, the Nov contract is -2.4% at $3.45/MMBtu.

Precious metals are also in the red and just hit new session lows. Dec gold just fell to $1703.50 and Dec silver hit $31.75. In current activity, gold is -0.2% at $1706.80/oz and silver is +0.1% at $31.81/oz. Dec copper is -0.4% at $3.56/lb.DJ30 +32.33 NASDAQ +3.48 SP500 +1.43 NASDAQ Adv/Vol/Dec 1086/514.7 mln/1117 NYSE Adv/Vol/Dec 1515/139 mln/1284

10:05 am : Equities are holding their levels following the release of new home sales data.

New home sales in September hit an annualized rate of 389,000, which is up from August's revised rate of 368,000, and better than the rate of 385,000 that had been broadly expected by the Briefing.com consensus.

The SPDR S&P Homebuilders ETF (XHB 25.94, +0.05) held steady following the data's release.

Separately, the latest Housing Price Index from the FHFA was also just released. For August, the Index increased by 0.7%, which follows a 0.1% increase in the prior month.DJ30 +17.35 NASDAQ +5.87 SP500 +1.35 NASDAQ Adv/Vol/Dec 1094/353.6 mln/1042 NYSE Adv/Vol/Dec 1452/95.1 mln/1261

09:45 am : Stocks have retreated slightly off their opening highs. Currently, the S&P 500 is firmer by 0.2%.

Looking at sector alignment, technology and financials are outperforming in the early going. Meanwhile, telecoms and consumer discretionary stocks are in the red.

AT&T (T 34.67, -0.33) is off by 0.9% after reporting mixed quarterly results. The telecom giant announced third quarter earnings of $0.62 which was $0.02 better than the Capital IQ consensus. Meanwhile, the company's revenue of $31.46 billion was in-line with Capital IQ expectations.

September new home sales and the August FHFA Housing Price Index will be released at 10:00 ET. In addition, the Federal Reserve will release a policy statement at 14:15 ET.DJ30 +24.46 NASDAQ +12.46 SP500 +2.68 NASDAQ Adv/Vol/Dec 1228/238.3 mln/836 NYSE Adv/Vol/Dec 1541/70.4 mln/1101

09:18 am : [BRIEFING.COM] S&P futures vs fair value: +6.20. Nasdaq futures vs fair value: +16.80. Heading into the open, equity futures are near pre-market highs. The S&P 500 futures are firmer by 0.5%.

The traditionally risky sectors are poised for a higher open. Among financials, Bank of America (BAC 9.46, +0.10), Morgan Stanley (MS 17.26, +0.15), and Wells Fargo (WFC 34.17, +0.30) are all up near 1.0%. Meanwhile, in materials, Cliffs Natural Resources (CLF 44.10, +0.55) and AK Steel (AKS 5.25, +0.06) are both higher by 1.2%.

Elsewhere, Lumber Liquidators (LL 56.50, +6.38) is advancing 12.7% after beating on earnings and revenues. The home improvement store operator reported top and bottom line results ahead of the Capital IQ consensus, and raised its full-year earnings forecast.

September new home sales and the August FHFA Housing Price Index will be released at 10:00 ET. In addition, the Federal Reserve will release a policy statement at 14:15 ET.

09:03 am : [BRIEFING.COM] S&P futures vs fair value: +4.80. Nasdaq futures vs fair value: +12.30. Equity futures continue to trade near their pre-market highs, up 0.4%.

Looking at earnings, Dow Chemical (DOW 30.26, +1.71) announced third quarter earnings of $0.04 on $13.64 billion in revenue. The results were mixed as the company beat bottom line Capital IQ expectations, while missing on the top line. In addition, the chemical manufacturer announced a restructuring program which includes 2,400 job cuts, as well as plans to shutter approximately 20 manufacturing facilities.

Buffalo Wild Wings (BWLD 74.75, -8.71) is falling 10.4% after missing on both earnings and revenues. The company's earnings of $0.57 fell short of the $0.61 expected by the Capital IQ consensus. Meanwhile, the restaurant operator reported revenue of $246.9 million, which was lower than the $254.57 million forecast by the Capital IQ consensus. The management blamed rising input prices on the disappointing earnings.

Gilead Sciences (GILD 68.20, +3.29) is higher by 5.1% after its earnings of $1.00 and revenue of $2.43 billion beat Capital IQ consensus estimates.

08:33 am : [BRIEFING.COM] S&P futures vs fair value: +4.50. Nasdaq futures vs fair value: +10.80. U.S. equity futures are adding 0.4% as they trade near their pre-market highs.

The major Asian averages ended mostly lower, but Hong Kong's Hang Seng (+0.3%) and China's Shanghai Composite (+0.1%) outperformed following the improvement in China's HSBC Flash Manufacturing PMI number (49.1 actual v. 47.9 previous). The number continued to point to a contracting sector, but did register its best reading in three months. Hong Kong's Monetary Authority was once again forced into the foreign exchange market to defend its HK$7.75 peg. The overnight action represents the fourth such occasion in the last week. Data across the rest of the region was light as Australia's CPI (1.4% quarter-over-quarter actual v. 0.9% expected) and trimmed mean CPI (0.7% quarter-over-quarter actual v. 0.6% expected) came out hotter than anticipated.

In Japan, the Nikkei closed lower by 0.7% with today's losses snapping its seven-day winning streak. Export names were under pressure as traders booked profits following strong gains for much of the past two weeks. Honda Motor slid 2.2% and Komatsu shed 2.5%. Elsewhere, Kawasaki Heavy Industries slumped 5.7% after lowering its outlook.

Hong Kong's Hang Seng finished higher by 0.3% as the index ended at a 14-month high. Property stocks were strong with many names climbing to fresh 52-week highs. Cheung Kong jumped 4.4% and SHK Properties climbed 3.6%. Meanwhile, China Mobile added 2.2% after topping quarterly estimates.

China's Shanghai Composite added 0.1% as the index eked out a small gain. Airlines stocks saw solid gains ahead of their earnings reports as China Eastern, China Southern, and Air China all advanced between 1.2% and 2.4%. Elsewhere, Yanzhou Coal Mining slipped 1.6% after being downgraded at Barclays.

European markets are seeing modest gains after France, Germany, and Italy all reported PMI below expectations. Germany saw more disappointing data as business expectations (93.2 actual, 93.7 forecast), current assessment (107.3 actual, 109.8 forecast), and the Ifo Business Climate Index (100.0 actual, 101.5 forecast) all missed expectations. In addition, the Eurozone Services and Manufacturing PMI readings also came in worse-than-expected. The disappointing data sent European bourses into the red, but they have all rebounded since.

In the United Kingdom, the FTSE is adding 0.2% and miners are showing strength. Antofagasta, Eurasian Natural Resources, and Kazakhmys are all up between 1.7% and 2.7%. Meanwhile, financials are seeing general weakness. Old Mutual, Barclays, and Resolution are all down near 1.0%.

France's CAC is higher by 0.4% as technology stocks lead the way. Cap Gemini is rising by 2.9% and STMicroelectronics is advancing 2.7% after announcing plans to cut costs. On the downside, financials are seeing weakness. AXA and Societe Generale are both down 0.5%.

In Germany, the DAX is advancing 0.3%. Producer of business management software SAP is leading the way with a 4.1% gain after raising its full-year revenue forecast. Car maker Volkswagen is adding 3.1% after reaffirming its full-year forecast. Meanwhile, EON is sliding 1.0% after announcing plans to withdraw from a Finnish nuclear project.

08:01 am : [BRIEFING.COM] S&P futures vs fair value: +3.40. Nasdaq futures vs fair value: +8.80. U.S. equity futures are modestly higher ahead of today's Federal Reserve policy statement and rate decision scheduled for a 14:15 ET release. The Central Bank is expected to leave the Federal Funds Rate and the asset purchasing program unchanged at their respective 0.00-0.25% and $40 billion.

Overnight, the global equity markets moved mostly higher. After Asia opened up in the red, markets got a boost once the HSBC Chinese Manufacturing PMI was reported at 49.10. The unexpected improvement from prior month's reading of 47.9 gave markets a brief sigh of relief. The improvement in the PMI comes after analysts from Barclays, UBS, and Bank of America have all said they believe the trough in the Chinese slowdown is currently taking place. Asian markets finished mixed as Hong Kong's Hang Seng added 0.3%, China's Shanghai Composite tacked on 0.1%, and Japan's Nikkei slid 0.7%.

In Europe, the positive sentiment was tested when France, Germany, and Italy all reported PMI below expectations. In addition, the Eurozone Services and Manufacturing PMI readings also came in worse-than-expected. The disappointing data sent European bourses into the red, but they have all rebounded since. Meanwhile, reports out of Germany indicate Greece may receive an additional 2 years to meet its fiscal objectives. Nearing midday, France's CAC is higher by 0.4%, while Germany's DAX and UK's FTSE are both adding 0.2%.

In U.S. corporate news, Netflix (NFLX 57.05, -11.17) is sliding 16.4% after reporting mixed earnings. The company announced earnings of $0.13 which was $0.09 better than the Capital IQ consensus estimate. Meanwhile, its revenue of $905 million was in-line with Capital IQ estimates. The management commented on their expansion into Latin America by saying "The biggest issue holding back much stronger growth is payments."

Facebook (FB 22.87, +3.37) is spiking 17.3% after reporting earnings of $0.12 on $1.26 billion in revenue. Investors welcomed the results as both numbers came in ahead of the Capital IQ consensus estimates. The company also pointed to improved results from its mobile advertising. Following the earnings report, Citigroup and Bank of America/Merrill Lynch both upgraded the stock to ‘buy.'

Boeing (BA 75.03, +2.21) is adding 3.0% after announcing earnings of $1.35 on revenue of $20.01 billion. The company's earnings exceeded Capital IQ consensus estimates while the revenue fell in-line with expectations. The management commented on the quarter by saying "Strong core operating performance drove increased earnings in both our major businesses, along with higher overall revenues, improved cash flow, and solid earnings per share even as pension headwinds rose."

Amarin (AMRN 12.15, +0.44) is higher by 3.8% after reports indicated AstraZeneca may submit a bid for Amarin.

The MBA Mortgage Index showed a 12.0% decrease in new mortgage applications during the past week. Today's number follows last week's 4.2% decline.

September new home sales and the August FHFA Housing Price Index will be released at 10:00 ET. Lastly, the Federal Reserve will release a policy statement at 14:15 ET.

06:29 am : [BRIEFING.COM] S&P futures vs fair value: +4.00. Nasdaq futures vs fair value: +8.00.

06:29 am : Nikkei...8954.30...-60.00...-0.70%. Hang Seng...21763.78...+66.20...+0.30%.

06:29 am : FTSE...5800.49...+2.60...0.00. DAX...7175.35...+1.70...0.00.

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
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