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 Post subject: November 20th Tuesday TF, 6E & CL Futures $3550
PostPosted: Tue Nov 20, 2012 10:02 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 @ $1,860.00 dollars or +18.60 points, EuroFX 6E futures @ $0.00 dollars or +0.0000 ticks and Light Crude Oil CL (WTI) futures @ $1,690.00 dollars or +1.69 points. Total Profit @ $3,550.00 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=110&t=1372

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). I'm primarily a day trader because it suits my personal lifestyle but I do occasionally swing trade or position trade.

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=195&t=1654

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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 while using 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 trade decisions (day trading, swing trading, position trading)...something I can not get from my broker statements alone.

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Market Update

4:15 pm : Equities began the day on a down note after Moody's cut France's sovereign rating to ‘Aa1' from ‘Aaa.' In addition, disappointing earnings from Hewlett-Packard (HPQ 11.71, -1.59) contributed to the cautious sentiment. The major averages managed to break into positive territory by midday, but tumbled to fresh lows as Federal Reserve Chairman Ben Bernanke spoke in front of the Economic Club of New York. During his remarks, Mr. Bernanke commented on the fiscal cliff by saying that if a resolution is not reached, the economy would slide into recession. In such case, the Federal Reserve would be powerless as the Chairman does not believe the Fed has the tools necessary to deal with that eventuality. The S&P 500 followed the early afternoon slide with another climb towards the unchanged level before ending with a gain of 0.1%.

The technology sector lost 0.6% and was the weakest performer of the day. Among tech bellwethers, Apple (AAPL 561.15, -4.58) shed 0.8% after yesterday's rally resulted in a 7.2% gain. Elsewhere, Intel (INTC 19.52, -0.73) fell 3.6%.

Looking at tech earnings, Hewlett-Packard slumped 12.0% after reporting mixed results. During the fourth quarter, the computer assembler earned $1.16, which was $0.01 ahead of the Capital IQ consensus estimate. However, the company's revenue missed expectations after declining 6.7% year-over-year, to $29.96 billion. In addition to the results, investors were drawn to another point of interest in the quarterly report. The report included an $8.8 billion charge related to serious accounting improprieties and misrepresentations by Autonomy Corporation before it came under Hewlett-Packard's control. Following the earnings release, ISI Group downgraded HPQ to ‘neutral' from ‘buy.'

Elsewhere, Agilent Technologies (A 36.28, -1.23) beat on earnings and reported in-line revenue. The stock settled lower by 3.3% after the company issued cautious guidance as it sees first quarter earnings and revenue below analyst expectations.

Also of note, SanDisk (SNDK 36.84, -0.46) slid 1.2% after reports suggested the company may face antitrust claims over some of its NAND drives.

The Dow Jones Transportation Average saw a marginal loss as airlines outperformed. Delta Air Lines (DAL 9.68, +0.13) and Alaska Air (ALK 41.82, +0.29) were the top performing carriers, seeing respective gains of 1.4% and 0.7%. The relative strength in airlines was a by-product of today's action in oil. The energy component settled lower by 2.4% after early headlines out of the Middle East indicated Israel and Hamas are nearing a cease-fire.

On the downside, four railroads within the transportation average underperformed. CSX (CSX 19.52, -0.16) lost 0.8% after Avondale downgraded the stock to ‘market perform' from ‘outperform.' Meanwhile, Norfolk Southern (NSC 56.91, -1.12) was the worst performing rail operator, down 1.9%.

Quick service restaurants were in focus after reporting their quarterly results. Krispy Kreme Doughnuts (KKD 9.31, +1.77) soared 23.5% after beating on earnings and revenue. During the third quarter, the company earned $0.12, which was $0.04 ahead of the Capital IQ consensus estimate. In addition, the revenue of $107.1 million also beat expectations. The earnings report also contained upbeat guidance as the company sees its full-year 2013 and 2014 earnings ahead of analyst expectations. As a result of the strong report, shares of Krispy Kreme were bid to levels not seen since September of last year.

Meanwhile, Bob Evans (BOBE 35.06, -1.28) lost 3.5% after missing on both the top and bottom lines. In the earnings release, the company also indicated it is exploring strategic alternatives for its Mimi's Cafe business segment.

Today's economic data spotlighted housing. October building permits were reported at 866,000. The reading was below the prior month's rate of 890,000, and fell short of the 870,000 expected by the Briefing.com consensus.

On the other hand, housing starts hit an annualized rate of 894,000 units. This number was well ahead of the 840,000 expected by the Briefing.com consensus, and it represented an increase from prior month's reading of 863,000.

Homebuilders and providers of building materials outperformed due to upbeat housing starts data. PulteGroup (PHM 16.75, +0.85) jumped 5.4% and Ryland Homes (RYL 34.28, +1.92) surged 5.9%. Among building material suppliers, Masco (MAS 16.31, +0.87) rose by 5.6% and NCI Building Systems (NCS 11.85, +0.64) rallied 5.7%.

In tomorrow's economic data, the weekly MBA Mortgage Index will be announced at 7:00 ET. In addition, weekly initial and continuing claims will be reported at 8:30 ET. Lastly, the final November Michigan Sentiment and October leading indicators will be reported at 9:55 ET and 10:00 ET, respectively.DJ30 -7.45 NASDAQ +0.61 SP500 +0.93 NASDAQ Adv/Vol/Dec 1159/1.53 bln/1282 NYSE Adv/Vol/Dec 1682/644.5 mln/1347

3:30 pm : Crude oil fell deeper into negative territory on reports that Hamas and Israel have agreed to a ceasefire. A stronger dollar index also put pressure on the energy component. Crude fell as low as $86.17 per barrel in afternoon pit action and settled with a 2.9% loss at $86.76 per barrel.

Precious metals were under pressure during today's pit trade as the stronger dollar index and better-than-expected housing data weighed on prices. Gold opened near the unchanged line and spent morning floor action chopping around just below that level. The yellow metal sold off further in afternoon action and brushed a session low of $1722.50 per ounce moments before settling with a 0.6% loss at $1723.70 per ounce. Silver fell off its session high of $33.19 per ounce and touched a session low of $32.86 per ounce. Like gold, it settled 0.6% lower at $32.96 per ounce.

In contrast, natural gas steadily climbed higher after coming off its session low of $3.74 per MMBtu. It closed with a 2.7% gain at $3.83 per MMBtu, just below its session high of $3.84 per MMBtu.DJ30 -27.13 NASDAQ -7.82 SP500 -2.07 NASDAQ Adv/Vol/Dec 979/1.30 bln/1462 NYSE Adv/Vol/Dec 1449/455.4 mln/1589

3:00 pm : The S&P 500 is off by 0.2% as it continues to hover near its recent levels.

Only a handful of companies remain on this week's earnings calendar. Following today's close, Salesforce.com (CRM 145.75, -1.56) and Zale (ZLC 7.37, +0.09) will announce their quarterly results. The Capital IQ consensus expects Salesforce.com to report earnings of $0.32 on $776.52 million in revenue. Meanwhile, Zale is expected to report a loss of $0.63 on revenue of $364.83 million.

Ahead of tomorrow's open, Deere (DE 85.77, -0.48) is the only notable name scheduled to report. The industrial machinery producer is expected to reveal earnings of $1.88 on $8.99 billion in revenue.DJ30 -38.43 NASDAQ -8.41 SP500 -3.01 NASDAQ Adv/Vol/Dec 994/1.16 bln/1441 NYSE Adv/Vol/Dec 1427/413.7 mln/1571

2:30 pm : The S&P 500 is off by 0.2% as it continues climbing towards its flat line.

Two steel stocks are moving in opposite directions after Goldman made changes to their ratings. AK Steel (AKS 3.71, +0.05) is higher by 1.4% after being upgraded to ‘neutral' from ‘sell.' On the other hand, Cliffs Natural Resources (CLF 30.46, -4.20) is sliding 12.2% after being downgraded to ‘sell' from ‘neutral.'

Other steelmakers are seeing mixed performance. ArcelorMittal (MT 14.59, -0.24) is off by 1.7% while Reliance Steel (RS 56.07, +0.26) is adding 0.5%.DJ30 -41.16 NASDAQ -6.41 SP500 -3.07 NASDAQ Adv/Vol/Dec 1027/1.09 bln/1386 NYSE Adv/Vol/Dec 1447/385.9 mln/1526

2:05 pm : After marking a session low near 1377, the S&P 500 has trimmed a portion of its losses and it currently trades lower by 0.4%.

The Dow Jones Transportation Average is slipping 0.2% as it outperforms the broader market. Nine listings within the bellwether complex are advancing, and four of them are airlines. Delta Air Lines (DAL 9.70, +0.15) and JetBlue Airways (JBLU 5.05, +0.05) are the top performing carriers as they see respective gains of 1.8% and 1.0%. The relative strength in airlines is a by-product of today's action in oil. The energy component trades lower by 2.8% after earlier headlines out of the Middle East indicated Israel and Hamas are nearing a cease-fire agreement.

On the downside, all four railroads which are part of the transportation average are underperforming. CSX (CSX 19.43, -0.25) is down 1.3% after Avondale downgraded the stock to ‘market perform' from ‘outperform.' Meanwhile, Norfolk Southern (NSC 56.58, -1.45) is the worst performing rail operator, down 2.5%.DJ30 -60.14 NASDAQ -11.87 SP500 -5.42 NASDAQ Adv/Vol/Dec 959/1.01 bln/1434 NYSE Adv/Vol/Dec 1323/357.9 mln/1647

1:30 pm : The major averages have slid to their respective lows as Federal Reserve Chairman, Ben Bernanke, wraps up his speech at the Economic Club of New York. The S&P 500 turned lower as Mr. Bernanke's speech proved more hawkish than expected. During his remarks, the Chairman said that lowering interest paid on excess reserves is still an option. However, this would be seen as a negative for banks which would be forced to lend as opposed to leaving excess reserves at the Federal Reserve.

The Chairman also commented on the fiscal cliff by saying that if a resolution is not reached, the economy would go into recession. In Mr. Bernanke's opinion, the Federal Reserve does not have the tools to offset that adequately.

Major financials have trimmed their gains in reaction to the comments from the Fed Chairman and the SPDR Financial Select Sector ETF (XLF 15.53, -0.03) is lower by 0.3%.DJ30 -89.04 NASDAQ -20.05 SP500 -8.97 NASDAQ Adv/Vol/Dec 895/929.1 mln/1486 NYSE Adv/Vol/Dec 1168/328.9 mln/1777

1:00 pm : The major averages opened the session on a negative note after Moody's cut the sovereign rating of France to ‘Aa1' from ‘Aaa.' The S&P 500 followed the lower open with a steady climb towards its flat line. After making several attempts at breaking through the unchanged mark, the benchmark index is registering marginal gains.

Consumer discretionary stocks are some of the top gainers. The sector is outperforming due to strength in homebuilders which are seeing gains after October housing starts of 894,000 exceeded expectations. PulteGroup (PHM 16.78, +0.88) and Standard Pacific (SPF 6.80, +0.35) are both adding near 5.5%.

Suppliers of building materials lead the industrial sector as they too benefit from today's housing starts data. Masco (MAS 16.09, +0.65) and NCI Building Systems (NCS 11.61, +0.40) are both advancing near 4.0% while Quanex Building Products (NX 20.09, +0.29) is adding 1.5%.

The technology sector is the weakest performer of the day as it trades lower by 0.6% and weighs on the broader market. Among tech bellwethers, Apple (AAPL 560.73, -5.00) is shedding 0.9% after yesterday's rally resulted in a 7.2% gain. Elsewhere, Intel (INTC 19.51, -0.73) is sliding 3.7%.

Looking at tech earnings, Hewlett-Packard (HPQ 11.80, -1.50) is slumping 11.2% after reporting mixed results. During the fourth quarter, the computer assembler earned $1.16, which was $0.01 ahead of the Capital IQ consensus estimate. However, the company's revenue missed expectations after declining 6.7% year-over-year, to $29.96 billion. In addition to the results, investors were drawn to another point of interest in the quarterly report. The report included an $8.8 billion charge related to serious accounting improprieties and misrepresentations by Autonomy Corporation before it came under Hewlett-Packard's control. Following the earnings release, ISI Group downgraded HPQ to ‘neutral' from ‘buy.'

Elsewhere, Agilent Technologies (A 36.87, -0.64) beat on earnings and reported in-line revenue. The stock trades lower by 1.7% after the company issued cautious guidance as it sees first quarter earnings and revenue below analyst expectations.

Also of note, SanDisk (SNDK 38.97, -0.32) is down 0.8% after reports suggested the company may face antitrust claims over some of its drives.

Yesterday, three quick service restaurant operators reported their earnings. Krispy Kreme Doughnuts (KKD 9.20, +1.66) is spiking 22.0% after beating on earnings and revenue. During the third quarter, the company earned $0.12, which was $0.04 ahead of the Capital IQ consensus estimate. In addition, the revenue of $107.1 million also beat expectations. The earnings report also contained upbeat guidance as the company sees its full-year 2013 and 2014 earnings ahead of analyst expectations.

Meanwhile, Bob Evans (BOBE 34.82, -1.52) is down 4.2% after missing on both the top and bottom lines. In the earnings release, the company also indicated it is exploring strategic alternatives for its Mimi's Cafe business segment.

Lastly, Jack in the Box (JACK 26.03, -0.23) is slipping 0.9% after missing on earnings.

In today's economic data, building permits decreased from the prior month's rate of 890,000 to 866,000 for October. That was below the pace of 870,000 building permits that had been expected among economists polled by Briefing.com.DJ30 -9.02 NASDAQ -3.11 SP500 +0.12 NASDAQ Adv/Vol/Dec 1043/801.3 mln/1316 NYSE Adv/Vol/Dec 1515/287.8 mln/1430

12:30 pm : The key indices are holding near their respective unchanged levels and the S&P 500 is higher by 0.1%.

Suppliers of building materials are enjoying a strong day as they lead the industrial sector. The strength comes after this morning's October housing starts report exceeded expectations. Masco (MAS 16.22, +0.78) and NCI Building Systems (NCS 11.77, +0.56) are both higher by 5.0% while Quanex Building Products (NX 20.14, +0.34) is rising by 1.9%.

Elsewhere among industrials, Dycom Industries (DY 17.49, +2.10) is surging 13.7% after reporting upbeat earnings. In addition to strong earnings, Dycom announced the acquisition of Quanta Services' (PWR 25.19, -0.10) domestic telecom infrastructure subsidiaries for approximately $275 million in cash.DJ30 -14.65 NASDAQ -3.42 SP500 +0.87 NASDAQ Adv/Vol/Dec 1022/717.1 mln/1314 NYSE Adv/Vol/Dec 1470/261.6 mln/1460

12:00 pm : The S&P 500 has marked a fresh high as it adds 0.2%.

The major averages are attempting to build on yesterday's strength. However, the technology sector is lower by 0.4% as it weighs on the broader market. Among tech bellwethers, Apple (AAPL 563.30, -2.43) is lower by 0.4% after yesterday's rally resulted in a 7.2% gain in the stock. Meanwhile, Intel (INTC 19.55, -0.70) is sliding 3.4%.

Looking at tech earnings, Hewlett-Packard (HPQ 11.90, -1.40) is slumping 10.5% after reporting mixed results. During the fourth quarter, the computer assembler earned $1.16, which was $0.01 ahead of the Capital IQ consensus estimate. However, the company's revenue missed expectations after declining 6.7% year-over-year, to $29.96 billion. In addition to the results, investors were drawn to another point of interest in the quarterly report. The report included an $8.8 billion charge related to serious account improprieties and misrepresentations by Autonomy Corporation before it came under Hewlett-Packard's control. Following the earnings release, ISI Group downgraded HPQ to ‘neutral' from ‘buy.'

Elsewhere, Agilent Technologies (A 36.88, -0.63) beat on earnings and reported in-line revenue. The stock trades lower by 1.9% after the company issued cautious guidance as it sees first quarter earnings and revenue below analyst expectations.

Lastly, SanDisk (SNDK 38.68, -0.62) is down 1.5% after reports suggested the company may face antitrust claims over some of its drives.DJ30 +9.42 NASDAQ +3.22 SP500 +2.46 NASDAQ Adv/Vol/Dec 1117/650.1 mln/1213 NYSE Adv/Vol/Dec 1625/238.2 mln/1294

11:30 am : The S&P 500 has managed to break through the flat line, and is currently registering marginal gains. The major indices are holding their levels after headlines out of the Middle East indicated Israel and Hamas have agreed to a cease-fire set to go in effect at 22:00 GMT. Crude oil reacted to the news by losing nearly one point. The energy component now trades at $87.50, which represents a 2.0% decline on the session.

Yesterday, three quick service restaurant operators reported their earnings. Krispy Kreme Doughnuts (KKD 9.02, +1.48) is spiking 19.6% after beating on earnings and revenue. During the third quarter, the company earned $0.12, which was $0.04 ahead of the Capital IQ consensus estimate. In addition, the revenue of $107.1 million also beat expectations. The earnings report also contained upbeat guidance as the company sees its full-year 2013 and 2014 earnings ahead of analyst expectations.

Meanwhile, Bob Evans (BOBE 34.96, -1.38) is down 3.8% after missing on both the top and bottom lines. In the earnings release, the company also indicated it is exploring strategic alternatives for its Mimi's Cafe business segment.

Elsewhere, Jack in the Box (JACK 26.11, -0.15) is slipping 0.6% after missing on earnings.DJ30 -13.11 NASDAQ -1.26 SP500 +0.15 NASDAQ Adv/Vol/Dec 997/547.5 mln/1319 NYSE Adv/Vol/Dec 1415/204.6 mln/1466

11:05 am : After rallying off its lows, the S&P 500 is shedding 0.1% as it attempts to break through the unchanged line.

Utility stocks are underperforming the remaining S&P 500 sectors as the SPDR Utilities Sector ETF (XLU 34.18, -0.21) trades lower by 0.6%. Today's weakness extends the recent softness which caused the ETF to lose more than 8.0% since October 31. The slide to the lowest levels of the year came as electricity providers are expected to face tougher regulation, which would result in increased costs. Exelon (EXC 28.82, -0.37), Southern Company (SO 42.30, -0.46), and other major electricity providers are seeing losses in the neighborhood of 1.0%.DJ30 -33.14 NASDAQ -5.79 SP500 -1.90 NASDAQ Adv/Vol/Dec 898/463.5 mln/1375 NYSE Adv/Vol/Dec 1249/178.1 mln/1615

10:30 am : Commodities were mostly in the red this morning following a sharp rise in the dollar index. Off that session high of 81.03, the dollar index has pulled back to 80.93, which has given a little boost to select commodities.

Copper futures just pushed back into positive territory and are now unchanged at $3.53/lb.

Dec crude oil put in a new session of $88.28 about an hour ago and just now put in another new session low of $88.21/barrel. In current trade, Dec crude is -1.2% at $88.25/barrel.

Dec natural gas futures, however, have been in positive territory all session and are now +1.2% at $3.77/MMBtu.

Precious metals remain in the red with Dec gold now -0.2% at $1731.10/oz and Dec silver -0.3% at $33.08/oz. Dec copper is now flat at $3.53/lb.

10:00 am : The S&P 500 has lifted off its session low and it currently trades lower by 0.2%.

The consumer discretionary sector is the strongest performer in the early going. The group is managing to stay positive due to strength in homebuilders which are seeing gains after October housing starts exceeded expectations. PulteGroup (PHM 16.45, +0.55) and Standard Pacific (SPF 6.64, +0.19) are hoth adding 3.0%.

Sturm, Ruger & Co (RGR 50.90, +2.07) is another advancer which is helping support the discretionary sector. Shares of the gunsmith are adding 4.4% after the company declared a special dividend of $4.50 per share.DJ30 -36.51 NASDAQ -3.97 SP500 -2.26 NASDAQ Adv/Vol/Dec 833/206.4 mln/1317 NYSE Adv/Vol/Dec 1082/92.9 mln/1659

09:50 am : After opening the session on a negative note, the S&P 500 trades lower by 0.3%.

Looking at stocks reacting to this morning's earnings, Best Buy (BBY 12.44, -1.31) is sliding 9.5% after the company reported disappointing results. During the third quarter, the electronics store operator earned $0.03 on $10.75 billion in revenue. The bottom line was $0.09 short of expectations while the revenue was in-line with forecasts.

Elsewhere, Hewlett-Packard (HPQ 11.62, -1.68) is slumping 12.6% after reporting mixed earnings. During the fourth quarter, the computer assembler earned $1.16, which was $0.01 ahead of the Capital IQ consensus estimate. However, the company's revenue missed expectations after declining 6.7% year-over-year, to $29.96 billion. In addition to the results, investors were drawn to another point of interest in the quarterly report. The report included an $8.8 billion charge related to serious account improprieties and misrepresentations by Autonomy Corporation before it came under Hewlett-Packard's control. Following the earnings release, ISI Group downgraded HPQ to ‘neutral' from ‘buy.'DJ30 -49.63 NASDAQ -4.92 SP500 -3.65 NASDAQ Adv/Vol/Dec 718/137.9 mln/1365 NYSE Adv/Vol/Dec 926/70.7 mln/1773

09:16 am : [BRIEFING.COM] S&P futures vs fair value: -1.50. Nasdaq futures vs fair value: -1.80. As we near the start of the session, equity futures are pointing to a mixed start. The Nasdaq futures are higher by 0.3% while Dow futures are off by 0.1%.

Homebuilder stocks are garnering pre-market interest after October housing starts were reported ahead of expectations. KB Home (KBH 14.34, +0.26), PulteGroup (PHM 16.27, +0.37), and Standard Pacific (SPF 6.60, +0.15) are all up between 1.8% and 2.3%.

Elsewhere, Best Buy (BBY 13.02, -0.73) is sliding 5.9% after the company reported disappointing earnings. During the third quarter, the electronics store operator earned $0.03 on $10.75 billion in revenue. The bottom line was $0.09 short of expectations while the revenue was in-line with forecasts.

09:00 am : S&P futures vs fair value: -1.10. Nasdaq futures vs fair value: -2.50. The S&P 500 futures are marginally higher while Dow futures are off by 0.1%.

The major Asian averages ended mixed as markets took a breather following their recent rally. Markets saw little reaction to Moody's downgrade of France's government bond rating to ‘Aa1' from ‘Aaa.' The Bank of Japan kept both its key rate and asset purchase program unchanged. The central bank noted, "Japan's economy is expected to remain relatively weak for the time being" and that "there remains a high degree of uncertainty." In other central bank news, the latest Reserve Bank of Australia minutes suggested the central bank considered more easing while also noting some stabilization in China. Data from the region was light as Chinese year-to-date foreign direct investment slid 3.5% as compared to last year and Australia's CB Leading Index fell 0.3% month-over-month.

In Japan, the Nikkei closed lower by 0.1% after the Bank of Japan failed to take action. Exporters saw some profit-taking following their recent gains as Honda Motor and Cannon both fell close to 1.0%. Elsewhere, Panasonic shed 3.8% after Deutsche Bank cut its price target.

Hong Kong's Hang Seng shed 0.2% as trade consolidated. HSBC rallied 0.5% as traders continue to price in the possibility the banking giant will sell its 15.6% stake in insurer Ping An. Meanwhile, internet gaming company Tencent Holdings jumped 2.3% as traders moved back into the name after seeing a nearly 10% haircut following last week's disappointing earnings.

In China, the Shanghai Composite slipped 0.4% as action holds near a 45-month low. Insurer Ping An lost 3.2% as worries persist following news of the potential HSBC sale of its stake. Financials were also under pressure as China Construction Bank gave up 1.2%.

The major European indices are mixed after Moody's downgrade of France. In response to the rating change, France's 10-yr benchmark yield added five basis points, to 2.11%. However, France's CAC appears to be taking the news in stride, and is only off by 0.1%. Moody's also mentioned that the outlook for Italy's banking system remains negative as adverse trends persist. Elsewhere, reports out of Brussels indicated that the Eurozone Finance Ministers have agreed in principle on unfreezing loans to Greece, though timing and total debt reductions are still up in the air. Notable economic data was limited to German PPI. The year-over-year reading indicated a 1.5% increase, while the index showed no change month-over-month. Both numbers were slightly lower than expected. In the Middle East, Israel has reportedly postponed a potential invasion of Gaza for 24 hours.

In the United Kingdom, the FTSE is off by 0.2% and financials are seeing weakness after yesterday's rally. Old Mutual and Royal Bank of Scotland are both down 1.6%. On the upside, InterContinental Hotels is adding 2.3% after being upgraded by Barclays.

France's CAC is slipping 0.1% and industrial stocks are seeing relative weakness. Alstom is down 1.9% and Bouygues is lower by 2.1%. Meanwhile, Accor is rising by 3.3% after BNP Paribas said it expects the hotel operator's margins to expand in the coming years.

Germany's DAX is adding 0.3%. The index is outperforming on the strength of carmakers. BMW and Volkswagen are up 0.5% and 0.9%, respectively. Financials are among the top decliners as Deutsche Bank and Commerzbank see respective losses of 2.2% and 1.2%.

08:33 am : [BRIEFING.COM] S&P futures vs fair value: -0.70. Nasdaq futures vs fair value: -2.30. Equity futures have shown little change in response to the latest round of housing data.

Housing starts hit an annualized rate of 894,000 units during October. Economists polled by Briefing.com had expected for housing starts to hit an annual rate closer to 840,000. Prior month figures were revised downward to reflect an annual rate of 863,000 housing starts.

As for building permits, they decreased from the prior month's rate of 890,000 to 866,000 for October. That is below the pace of 870,000 building permits that had been expected among economists polled by Briefing.com.

08:01 am : [BRIEFING.COM] S&P futures vs fair value: -3.40. Nasdaq futures vs fair value: -9.50.

U.S. equity futures are modestly lower amid downbeat overseas trade.

Overnight, the global markets took a breather following yesterday's rally. In Asia, the Bank of Japan made no change to its interest rate and the purchasing program. In addition, the Central Bank assessed the Japanese economy is somewhat weakening. The Reserve Bank of Australia released the minutes from its last meeting. The document included discussion of encouraging signs in China's economy. Meanwhile, China's Foreign Direct Deposits declined by 3.5%, which was short of expectations. Looking at Asian indices, China's Shanghai Composite lost 0.4%, Hong Kong's Hang Seng slipped 0.2%, and Japan's Nikkei shed 0.1%.

The major European indices are mixed after Moody's downgraded France to AA1 from AAA. In response to the rating change, France's 10-yr benchmark yield added five basis points, to 2.11%. However, France's CAC appears to be taking the news in stride, and is only off by 0.2%. Moody's also mentioned that the outlook for Italy's banking system remains negative as adverse trends remain evident. Elsewhere, reports out of Brussels indicated that the Eurozone Finance Ministers have agreed in principle on unfreezing loans to Greece, though timing and total debt reductions are still up in the air. In the Middle East, Israel has reportedly postponed a potential invasion of Gaza for 24 hours. As the regional indices near midday, Germany's DAX is adding 0.2% and UK's FTSE is off by 0.1%.

In U.S. corporate news, Hewlett-Packard (HPQ 11.98, -1.32) is sliding 10.2% after reporting mixed earnings. During the fourth quarter, the computer company earned $1.16, which was $0.01 ahead of the Capital IQ consensus estimate. Meanwhile, the company's revenue declined 6.7% year-over-year, to $29.96 billion. In addition to the results, investors found another point of interest in the earnings report. The report included an $8.8 billion charge related to serious account improprieties and misrepresentations by Autonomy Corporation before it came under Hewlett-Packard's control.

Cliffs Natural Resources (CLF 33.64, -1.02) is lower by 2.9% after Goldman downgraded the stock to ‘sell' from ‘neutral.' In addition, Goldman also changed its rating on another steel producer. AK Steel (AKS 3.80, +0.14) is adding 3.8% after Goldman upgraded the stock to ‘neutral' from ‘sell.'

Sturm Ruger & Company (RGR 52.00, +3.17) is higher by 6.5% after declaring a special dividend of $4.50 per share.

In today's economic data, October housing starts and building permits will both be announced at 8:30 ET.

06:40 am : [BRIEFING.COM] S&P futures vs fair value: -1.50. Nasdaq futures vs fair value: -6.00.

06:39 am : Nikkei...9142.64...-10.60...-0.10%. Hang Seng...21228.28...-33.80...-0.40%.

06:39 am : FTSE...5735.03...-2.60...-0.10%. DAX...7148.93...+25.10...+0.30%.

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

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

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