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 Post subject: January 4th Friday (No Trades)
PostPosted: Sat Jan 05, 2013 10:26 am 
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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)

Quote:
No trades today for me due to personal family reasons although I had initially only plan to trade the last hour of the regular trading session.

Price Action Trade Performance for Today: Emini TF ($TF_F) futures @ $0.00 dollars or +0.00 points, EuroFX 6E futures @ $0.00 dollars or +0.0000 ticks and Light Crude Oil CL (WTI) futures @ $0.00 dollars or +0.00 points. Total Profit @ $0.00 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=113&t=1406

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 and 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=199&t=1715

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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 in many trading instruments I monitor during the trading day. 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, intermarket analysis (e.g. Forex EurUsd, Gold GC futures, Oil CL & Brent futures, Eurex DAX futures, Emini ES futures, Emini TF futures, Treasury ZB futures) 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

4:10 pm : The S&P 500 gained 0.5% to punctuate a week which saw the index climb over 4.0%. Today's advance was notable as it took the benchmark average to its best close since December 2007. The weeklong rally arrived after Washington lawmakers were able to avoid the fiscal cliff by agreeing to a tax plan. However, it should be noted that the country is nearing the debt ceiling, which sets up the stage for another lengthy debate during the first quarter of the year.

Today's session saw some notable moves as the SPDR Financial Select Sector ETF (XLF 17.05, +0.20) gained 1.2% and settled at its highest level since February 2011.

Elsewhere, the Dow Jones Transportation Average advanced 1.2% and saw its highest close since July 2011.

Also of note, the tech sector was the only declining space in the S&P 500 after Apple (527.00, -15.10) slid 2.8%. The weakness followed comments from Deutsche Bank's Japan unit which believes the company will report disappointing end-of-year sales. The weakness spilled over to several Apple suppliers as Cirrus Logic (CRUS 28.32, -1.03) and Skyworks Solutions (SWKS 20.95, -0.54) lost 3.5% and 2.5% respectively.

Next week, investors will turn their attention to fourth quarter earnings as Alcoa (AA 9.26, +0.19) is scheduled to kick-off the earnings season after Tuesday's close. The Capital IQ consensus expects the aluminum producer to report earnings of $0.07 on $5.64 billion in revenue.

On Monday afternoon, we published a review of the global market performance in 2012. For those who missed it, we would like to revisit the report and look back at the past year:

2012 proved to be a positive year for world equities despite a number of macroeconomic challenges. Markets across the globe registered strong gains as Germany's DAX and Greece's ASE General Index both added over 30%. Domestically, the S&P 500 registered a solid 13% gain, and was slightly outperformed by the Nasdaq and Russell 2000. The renewed worries regarding the weakening fundamentals of the Eurozone persisted into the summer and weighed on market sentiment. However, late-summer efforts from the European Central Bank and the Federal Reserve alleviated some of the fears, and propelled the markets to a strong second-half performance. The rally was cut short after the election, when the market focus turned to the budget debate, which lasted into the New Year. Below we summarize some of the key developments, which contributed to market sentiment.

Central Banks Maintained Accommodative Policy Course, With Diminishing Returns

Taking a look at past QE operations from the Fed, the first QE program saw the S&P gain nearly 70%. During QE II, the index gained 23%. So far, following the announcement of QE III--which was unveiled in September of 2012--the S&P has lost 4% as concerns over the Fiscal Cliff weighed. Taking a look at Fed's actions in 2012:
January 25th - The Fed said it would keep rates low through 2014.
June 20th - The FOMC extended its 'operation twist' program until the end of 2012.
September 13th -- The Federal Reserve announced its decision to increase policy accommodations by purchasing additional agency mortgage-backed securities at a pace of $40 bln per month.
December 12th -- The Fed announced ‘Operation Twist' will be replaced by a Treasury purchasing program with an initial rate of $45 billion per month. The key interest rate was expected to remain at exceptionally low levels until a target unemployment rate of 6.5% is reached.
Looking ahead to 2013, the Fed voters will change at the end of this year and will become slightly more dovish overall.
Incoming voters include, Charles Evans, Eric Rosengren, James Bullard, and Kansas City Fed's Esther George.
Others rotating off include Cleveland Fed President Sandra Pianalto, Atlanta Fed President Dennis Lockhart and San Francisco Fed President John Williams.

Politics Added Volatility to Markets

U.S. Presidential Election
Key indices rallied into the election and the S&P 500 advanced nearly 1% on Election Day, only to fall 6% in the two weeks following.
The loss of optimism post-election was attributed to questions whether a Democratic president and a split Congress can strike a budget deal to avoid going over the fiscal cliff.
Fiscal Cliff Arrived at Year's End
Following the U.S. presidential election, the attention turned to the budget debate. The automatic spending cuts and tax hikes scheduled to take place if no budget agreement is reached became known as the 'Fiscal Cliff.'
The markets maintained their upward bias through the bulk of the debate, but the final week of the year resulted in a sell-off as the likelihood of a timely compromise diminished.

U.S. Stocks Led by Homebuilders and Financials

Housing was a bright spot in the broader economy; as such homebuilders saw robust returns and the SPDR S&P Homebuilders ETF (XHB) surged 53%.
Among major individual builders, Lennar (LEN, +93%), PulteGroup (PHM, +181%), D.R. Horton (DHI, +53%), Standard Pacific (SPF, +126%) all saw outsized gains.
Despite the observed uptrend in housing data, it should be noted that housing starts, new, and pending home sales remain below historical averages entering 2013. In addition, foreclosure rates remain elevated.
Financials Outperformed Despite Debt Worries and some notable trading issues
Financial shares beat the market with the XLF ETF gaining 24% for the year versus a 13% gain in the S&P 500. The better than expected recovery that we discussed in housing contributed to the gains. The financial sector saw strong returns despite a handful of challenges.
JP Morgan London Whale Trade: After the bell on May 10, the U.S. financials were rattled by the news indicating JPMorgan Chase (JPM) had significant mark-to-market losses in its synthetic credit portfolio. It took nearly 5 months for JPM to recover.
Knight Capital (KCG) Trading Glitch and Sale: On August 1st, a trading glitch at KCG caused nearly 150 stocks to behave erratically. Just before the end of the year, KCG and GETCO Holding announced a merger at $3.75 per share in cash. Knight Capital (KCG) shares finished the year lower by 71%.
Investors Focused on the Largest Tech Stock - Apple
With years of strong performance and solid fundamentals, Apple (AAPL) was favored by investors in early 2012, and it had become a top hedge fund holding.
Apple surged nearly 65% through the first three quarters of the year, and marked its all-time high in the $705 area.
After climbing to its all-time high, the stock tumbled 30%, but still managed to finish the year 30% higher.
The notable slide came amid numerous factors including disappointing product launch, stepped up competition and the once-rich profit margins have compressed through the year.

European Markets Saw Strongest Overall Performance

Despite continued uncertainty and ongoing debt problems, broad Euro region equity averages returned more than 15% this year.
The spring reignited worries regarding Greek solvency. Despite the mid-summer uncertainty, the Greek ASE returned 33%, and was the best performing global index.
Concerns about Spain followed Greece; Spain's IBEX fared much worse with a 5% loss on the year.
The country's heavily-strained banking system caused the 10-yr benchmark yield to cross above 7.00% before a bank recapitalization package was approved by the European Central Bank.
The approval of the bank recapitalization combined with ECB's Outright Monetary Transactions helped ease the pressure on yields, which slipped back below 7.00%.

Asian Region Fared Well With Strength in India (+31%), Japan (+22%) and Hong Kong (+23%)

In Japan, Shinzo Abe was elected prime minister on the platform of promoting economic growth and bringing the country out of its economic malaise.
Mr. Abe had previously held the post in 2006. The country's new prime minister vowed to defeat inflation and promised to increase government spending. The Japanese market cheered the plans and the Nikkei registered the bulk of its gains in the final six weeks of the year.

Looking Ahead to 2013

As mentioned in Briefing.com's Market View (published 12/17/2012), A year has made a lot of difference for equity investors in a good way. Unfortunately, we are not as hopeful about the market outlook entering 2013. Once again, we can point to three factors in particular driving our perspective:
Economic growth is decelerating
Fiscal austerity is just beginning in the US and there is too much complacency about its outcome
Earnings growth estimates are too high

Those factors may not conspire to produce a negative return for the stock market in 2013, yet they present real obstacles for achieving another strong gain and raise the importance of managing against downside risk. Fiscal austerity will bite, as we have seen in the eurozone, political friction will persist both here and abroad, and earnings growth is unlikely to measure up to currently high expectations.

2013 is loaded with potential to be a fundamentally disappointing year. That might not translate directly in terms of stock market returns given the Fed's influence, yet investors should take care nonetheless to manage against downside risk.

DJ30 +43.85 NASDAQ +1.09 SP500 +7.10 NASDAQ Adv/Vol/Dec 1600/1.72 bln/868 NYSE Adv/Vol/Dec 2314/651.2 mln/703

3:30 pm : Commodities mostly trended higher in afternoon activity as the dollar index remained on its downtrend. However, metals still ended up in negative territory and gold and silver did end the day near their session highs.

Feb gold finished 1.5% lower at $1648.80/oz today, while Mar silver declined 2.7% to $29.91/oz.

In the energy space, natural gas traded around the breakeven mark overnight, but gained steam and began to trend higher. This morning, inventory data was released, which gave nat gas more price support. By the end of the session, nat gas rose 3.1% to $3.29/MMBtu.

Crude oil was in the red almost all session. After declining to today's LoD of $91.52, Feb crude oil trended higher at $93.06/barrel, about $0.16/barrel higher.DJ30 +50.14 NASDAQ +6.69 SP500 +8.36 NASDAQ Adv/Vol/Dec 1684/1446.8 mln/772 NYSE Adv/Vol/Dec 2324/436 mln/684

3:00 pm : The S&P 500 is adding 0.4% as trade enters the final hour.

Starting next week, companies will begin announcing their fourth quarter results. Tuesday will mark an unofficial start to the earnings season when Alcoa (AA 9.19, +0.12) reports the results of its operations after the closing bell. The Capital IQ consensus expects the economic bellwether to announce earnings of $0.07 on $5.64 billion in revenue.

Additionally, Monsanto (MON 95.92, +0.58), SUPERVALU (SVU 3.08, +0.49), and Wells Fargo (WFC34.68, -0.08) are scheduled to report next week as well.DJ30 +26.95 NASDAQ +3.46 SP500 +5.38 NASDAQ Adv/Vol/Dec 1637/1.25 bln/816 NYSE Adv/Vol/Dec 2230/366.6 mln/772

2:30 pm : The key averages are holding their recent levels, and the S&P 500 is adding 0.4%.

The volatility index, or VIX, has been in focus recently. As the budget debate took center stage in December, the VIX climbed steadily and crossed above 20.00 for the first time in over five months. The volatility measure peaked at 23.23, and fell sharply once Washington lawmakers agreed to a tax deal. Today, the VIX is shedding nearly 5.0%, and is down almost 40% since Monday's open.DJ30 +26.14 NASDAQ +2.09 SP500 +5.23 NASDAQ Adv/Vol/Dec 1610/1.17 bln/832 NYSE Adv/Vol/Dec 2212/339.9 mln/770

2:00 pm : The S&P 500 is firmer by 0.3% after notching a fresh session high just below 1465.

Recent trade saw SUPERVALU (SVU 2.86, +0.27) spike in excess of 10.0% after Bloomberg reported that Cerberus is nearing a deal which would include all of the assets of SUPERVALU. Following the report, peers Safeway (SWY 18.27, -0.07) and Kroger (KR 26.30, -0.09) ticked higher.DJ30 +26.53 NASDAQ +0.80 SP500 +4.82 NASDAQ Adv/Vol/Dec 1596/1.08 bln/844 NYSE Adv/Vol/Dec 2196/314.5 mln/777

1:25 pm : Equities are holding their recent levels and the S&P 500 is firmer by 0.3%.

The Dow Jones Transportation Average is rising by 1.0% as the bellwether complex continues its recent run. Since the start of Monday's session, the 20-stock average has added nearly 6.0%. In addition, the index currently sits just 100 points beneath its all-time high established on July 7, 2011.

Railroads are among the top performers as Norfolk Southern (NSC 65.62, +2.16) and Kansas City Southern (KSU 88.83, +1.20) trade higher by 3.4% and 1.4% respectively. Note that today's buying has lifted Kansas City Southern to a fresh all-time high.

Though most transportation stocks are registering broad gains, freight carriers are seeing relative weakness. Con-way (CNW 29.27, -0.04) and Ryder System (R 51.81, -0.15) are both shedding near 0.2%.DJ30 +14.23 NASDAQ -0.39 SP500 +3.90 NASDAQ Adv/Vol/Dec 1545/987.8 mln/882 NYSE Adv/Vol/Dec 2128/283.4 mln/823

1:00 pm : Equities began today's session on a positive note after the nonfarm payrolls report pointed to the addition of 155,000 jobs during December. The S&P 500 followed the slightly higher open with a steady climb to its session high in the 1464 area. At midday, the benchmark index is higher by 0.3% as it trades just two points below its 52-week high established on September 14, 2012.

Financials are outperforming the broader market as most majors register gains. The SPDR Financial Select Sector ETF (XLF 16.97, +0.12) is higher by 0.7% as the ETF trades at its best level since February 2011. Looking at notable sector movers, Citigroup (C 42.06, +0.67) is rising by 1.6% after Goldman Sachs added the stock to its Conviction Buy list.

On the downside, Wells Fargo (WFC 34.57, -0.19) is shedding 0.5% after Goldman Sachs downgraded the stock to ‘Neutral' from ‘Buy.'

The technology sector is the weakest performer, and the SPDR Technology Select Sector ETF (XLK 29.53, -0.09) is shedding 0.3%. The tech space is a notable underperformer as Apple (AAPL 530.84, -11.25) trades lower by 2.1%. In addition, several Apple suppliers are declining as well. Broadcom (BRCM 34.22, -0.40), Cirrus Logic (CRUS 28.16, -1.18), Skyworks Solutions (SWKS 20.97, -0.52), and Qualcomm (QCOM 63.52, -0.92) are all down between 1.2% and 4.0%. The relative weakness follows cautious comments from Deutsche Bank's Japan team, which expects the largest tech company to report disappointing end-of-year sales.

Though Apple and its suppliers are trading lower, other technology stocks are largely in-line with the broader market. Progress Software (PRGS 22.20, +1.31) is rising by 6.3% after reporting its fourth quarter earnings. Though the company missed on earnings and revenue, the stock is seeing strength due to the upside first quarter revenue guidance issued by the company.

As previously mentioned, December nonfarm payrolls came in at 155K versus the 150K expected by the Briefing.com consensus. The prior reading was revised up to 161K from 146K. Nonfarm private payrolls added 168K against the 145K consensus. The unemployment rate was reported at 7.8%, slightly worse than the Briefing.com consensus which expected the rate to remain at 7.7%.

Hourly earnings rose by 0.3% while the expectations called for an uptick of 0.2%. Lastly, average workweek was reported at 34.5, which was in-line with the Briefing.com consensus.

November factory orders were unchanged, which fell below the +0.5% expected by the Briefing.com consensus. Today's reading followed last month's uptick of 0.8%.

The December ISM Services Index was reported at 56.1, which was ahead of the 53.5 forecast by the Briefing.com consensus, and up from November's reading of 54.7.

European markets ended the week on a positive note despite starting the day in the red. The key indices were able to shake off the morning weakness after the U.S. nonfarm payrolls report came in slightly ahead of expectations. The United Kingdom's FTSE gained 0.7%, Germany's DAX added 0.3%, and France's CAC tacked on 0.2%.

In the United Kingdom, BP gained 2.7% and was the top performer. The stock saw strength after the Transocean settlement of the charges resulting from the Deepwater Horizon spill was received as a positive for BP. On the downside, miners underperformed. Fresnillo and Randgold Resources both lost near 4.0%.

Germany's DAX was supported by financials. Commerzbank finished higher by 1.7% and Deutsche Bank (DB 45.42, +0.31) added 0.5%. Chemical producer Lanxess was among the biggest laggards, down 1.7%.

France's CAC was led by Gemalto, which recently replaced Alcatel-Lucent (ALU 1.59, +0.13) in the CAC. The technology stock gained 2.5%. On the downside, industrials saw relative weakness and Renault slipped 1.0%.DJ30 +12.36 NASDAQ -0.20 SP500 +3.64 NASDAQ Adv/Vol/Dec 1568/917.3 mln/850 NYSE Adv/Vol/Dec 2123/263.6 mln/809

12:25 pm : The S&P 500 is higher by 0.3% as the index holds its recent levels.

European markets ended the week on a positive note despite starting the day in the red. The key indices were able to shake off the morning weakness after the U.S. nonfarm payrolls report came in slightly ahead of expectations. The United Kingdom's FTSE gained 0.7%, Germany's DAX added 0.3%, and France's CAC tacked on 0.2%.

In the United Kingdom, BP gained 2.7% and was the top performer. The stock saw strength after the Transocean settlement of the charges resulting from the Deepwater Horizon spill was received as a positive for BP. On the downside, miners underperformed. Fresnillo and Randgold Resources both lost near 4.0%.

Germany's DAX was supported by financials. Commerzbank finished higher by 1.7% and Deutsche Bank (DB 45.39, +0.28) added 0.5%. Chemical producer Lanxess was among the biggest laggards, down 1.7%.

France's CAC was led by Gemalto, which recently replaced Alcatel-Lucent (ALU 1.59, +0.13) in the CAC. The technology stock gained 2.5%. On the downside, industrials saw relative weakness and Renault slipped 1.0%.DJ30 +17.89 NASDAQ +2.34 SP500 +4.13 NASDAQ Adv/Vol/Dec 1597/829.2 mln/793 NYSE Adv/Vol/Dec 2106/240.2 mln/800

12:00 pm : The S&P 500 is higher by 0.3% after marking a fresh session high.

Financials are outperforming the broader market as most majors register gains. The SPDR Financial Select Sector ETF (XLF 16.94, +0.09) is higher by 0.5% as the ETF trades at its best level since February 2011. Looking at notable sector movers, Citigroup (C 41.97, +0.58) is rising by 1.4% after Goldman Sachs added the stock to its Conviction Buy list.

On the downside, Wells Fargo (WFC 34.56, -0.20) is shedding 0.6% after Goldman Sachs downgraded the stock to ‘Neutral' from ‘Buy.'DJ30 +19.85 NASDAQ +2.30 SP500 +3.92 NASDAQ Adv/Vol/Dec 1620/757.5 mln/762 NYSE Adv/Vol/Dec 2138/223.1 mln/768

11:30 am : Equities are holding their recent levels and the S&P 500 is adding 0.2%.

The materials sector is the top performer as chemical producers lead the space. Mosaic (MOS 58.27, +1.50) is advancing 2.6% after the company's earnings were reported ahead of the Capital IQ consensus estimate. Elsewhere, A. Schulman (SHLM 30.35, +1.25) is rising by 4.3% after beating on top and bottom lines.

Also of note, steelmakers are mixed after a December surge in steel stocks sent the Market Vectors Steel ETF (SLX 49.88, -0.08) higher by 14.0%. Among major producers, Cliffs Natural Resources (CLF 37.47, -0.70) is shedding 1.8% and Reliance Steel (RS 64.05, +0.68) is advancing 1.1%.DJ30 +6.49 NASDAQ -3.06 SP500 +2.72 NASDAQ Adv/Vol/Dec 1517/630.4 mln/828 NYSE Adv/Vol/Dec 2071/193.8 mln/798

11:00 am : The major averages are trading near their opening levels and the S&P 500 is firmer by 0.1%.

The technology sector is the weakest performer, and the SPDR Technology Select Sector ETF (XLK 29.43, -0.19) is shedding 0.6%. The tech space is a notable underperformer as Apple (AAPL 527.99, -14.10) trades lower by 2.7%. In addition, several Apple suppliers are declining as well. Broadcom (BRCM 34.15, -0.48), Cirrus Logic (CRUS 28.39, -0.95), Skyworks Solutions (SWKS 20.67, -0.81), and Qualcomm (QCOM 63.46, -0.98) are all down between 1.2% and 4.0%. The relative weakness follows cautious comments from Deutsche Bank's Japan team, which expects the largest tech company to report disappointing end-of-year sales.

Though Apple and its suppliers are trading lower, other technology stocks are largely in-line with the broader market. Progress Software (PRGS 22.01, +1.12) is rising by 5.4% after reporting its fourth quarter earnings. Though the company missed on earnings and revenue, the stock is seeing strength due to the upside first quarter revenue guidance issued by the company.DJ30 -3.44 NASDAQ -7.70 SP500 +1.08 NASDAQ Adv/Vol/Dec 1421/507.1 mln/881 NYSE Adv/Vol/Dec 1998/163.1 mln/856

10:30 am : The dollar index has been in positive territory all session and has been weighing on the commodity complex. Even following this recent pullback in the index, precious metals, copper and oil remain in negative territory.

The dollar index has pulled back notably off of its HoD, but has been reversing in more recent activity, weighing on select commodities.

Natural gas just spiked following inventory data, which showed a larger-than-expected draw. Nat gas spiked about 3 cents to $3.28 and is now trading +2.0% at $3.26/MMBtu.

Crude oil has been in the red almost all session. It fell as low as $91.52, but after hitting that low, oil climbed higher and ultimately recovered $1.44/barrel to move about 1 cent into positive territory. Crude is now back in the red and is -0.2% at $92.71/barrel.

Precious metals have been in the red all session. Feb gold is currently -1.7% at $1646.00/oz and Mar silver is -3.0% at $29.81/oz. In base metals, Mar copper is -0.6% at $3.70/lb.DJ30 -1.04 NASDAQ -5.95 SP500 +1.77 NASDAQ Adv/Vol/Dec 1416/441.4 mln/827 NYSE Adv/Vol/Dec 2002/138 mln/823

10:05 am : The major averages have ticked slightly higher following the latest factory orders and ISM services data. The S&P 500 is adding 0.2%.

November factory orders were unchanged, which fell below the +0.5% expected by the Briefing.com consensus. Today's reading follows last month's uptick of 0.8%.

The December ISM Services Index was reported at 56.1, which was ahead of the 53.5 forecast by the Briefing.com consensus, and up from November's reading of 54.7.DJ30 +2.30 NASDAQ -4.60 SP500 +2.75 NASDAQ Adv/Vol/Dec 1285/247.5 mln/901 NYSE Adv/Vol/Dec 1877/93.8 mln/847

09:45 am : The major averages have slipped off their opening highs and the S&P 500 is adding 0.1%.

Looking at the early S&P 500 performance, materials and health care stocks are displaying relative strength. On the downside, the technology space is the weakest performer. Apple (AAPL 535.81, -6.28) is down 1.1% as the largest sector component weighs on other tech shares.

November factory orders and December ISM services will be reported in 15 minutes.DJ30 +7.91 NASDAQ -3.15 SP500 +1.50 NASDAQ Adv/Vol/Dec 1246/133.8 mln/853 NYSE Adv/Vol/Dec 1750/62.3 mln/901

09:17 am : [BRIEFING.COM] S&P futures vs fair value: +3.10. Nasdaq futures vs fair value: +1.80. Heading into the open, equity futures are pointing to a modestly higher start. The S&P 500 futures are adding 0.2%.

Looking at pre-market movers, Apple (AAPL 537.38, -4.72) is shedding 0.9%.

Major financials are seeing early strength as Citigroup (C 41.90, +0.51) and Morgan Stanley (MS 19.69, +0.11) trade higher by 1.2% and 0.6% respectively.

November factory orders and December ISM services will hit the wires at 10:00 ET.

09:02 am : [BRIEFING.COM] S&P futures vs fair value: +2.80. Nasdaq futures vs fair value: +1.00.

U.S. equity futures continue to trade near their pre-market highs and the S&P 500 futures are adding 0.2%.

The major Asian bourses saw a mixed session after yesterday's release of the December FOMC Minutes showed several members "thought that it would probably be appropriate to slow or to stop purchases well before the end of 2013, citing concerns about financial stability or the size of the balance sheet." Japan's Nikkei (+2.8%) outperformed as traders returned to work following their extended holiday. The advance ran the index to its best level since March 2011. Meanwhile, China's Shanghai Composite (+0.4%) ticked up as it reopened following an extended holiday. The gains came despite China's HSBC Services PMI slumping to 51.7 (52.1 previous). Data from the rest of the region saw India's HSBC Services PMI climb to 55.6 (52.1 previous), Australia's AIG Services slide to 43.2 (47.1 previous), the Philippines CPI cool to -0.1% month-over-month (0.2% expected, 0.1% previous).
In Japan, the Nikkei closed higher by 2.8% as exporters fueled the strong advance on the first trading day of the year. Suzuki Motor surged 7.9% and Nikon jumped 5.2% as traders continued to move into exporters on yen weakness.
In Hong Kong, the Hang Seng shed 0.3% as financials and real estate were a drag. Bank of China slipped 0.3% and Evergrande Real Estate Group gave up 0.9%.
In China, the Shanghai Composite added 0.4% with outperformance coming from rail stocks. China Railway Construction and China Railway Group jumped 8.7% and 5.9% respectively.

Key European indices opened lower, but have reclaimed the bulk of their losses since. Looking at economic data, services PMI reports were released across the Eurozone. Most notably, France's reading of 45.2 fell short of the 46.0 expected by the general consensus. Elsewhere, Spain's services PMI came in at 44.3, ahead of the 42.8 expected by the market. Though the reading was better-than-feared, it remained below 50, indicating contraction. The mixed regional reports resulted in an overall Eurozone services PMI reading of 47.8, in-line with expectations. Also of note, Germany's retail sales declined 0.9% year-over-year, which was slightly better than the 1.2% contraction forecast by the general consensus. In regional news, Spain's El Pais reported that 79% of Spanish citizens believe the country's economy will remain in its current position or worsen during 2013. In Italy, opinion polls indicated Mario Monti, who recently resigned as the country's Prime Minister, would receive less than 15% of the vote, if the election took place today.
France's CAC is shedding 0.2% as materials and industrials weigh. ArcelorMittal is slipping 1.0% and Schneider Electric is off by 0.5%. Among the advancers, Gemalto is rising by 2.0% as it leads the 40-stock index.
Germany's DAX is adding 0.1% and financials are contributing to the relative strength. Deutsche Bank and Commerzbank are seeing respective gains of 0.4% and 1.1%.
The United Kingdom's FTSE is higher by 0.3%. BP is advancing 2.0% after Transocean's settlement of the charges stemming from the Deepwater Horizon spill was viewed as a positive for BP.

08:35 am : S&P futures vs fair value: +2.30. Nasdaq futures vs fair value: +6.80. Equity futures have risen to their pre-market highs following the latest jobs data. The S&P 500 futures are higher by 0.2%.

December nonfarm payrolls came in at 155K versus the 150K expected by the Briefing.com consensus. The prior reading was revised up to 161K from 146K. Nonfarm private payrolls added 168K against the 145K consensus. The unemployment rate was reported at 7.8%, slightly worse than the Briefing.com consensus which expected the rate to remain at 7.7%.

Hourly earnings rose by 0.3% while the expectations called for an uptick of 0.2%. Lastly, average workweek was reported at 34.5, which was in-line with the Briefing.com consensus.

08:04 am : [BRIEFING.COM] S&P futures vs fair value: -0.70. Nasdaq futures vs fair value: +1.30.

U.S. equity futures are mixed amid mixed overseas trade. However, some volatility is expected to coincide with the 8:30 ET release of the December nonfarm payrolls report. The Briefing.com consensus expects the reading to point to the addition of 150,000 jobs. Meanwhile, the unemployment rate is expected to remain at 7.7%.

Looking at overseas markets:

Asian markets finished mixed. Hong Kong's Hang Seng shed 0.3%, China's Shanghai Composite added 0.4%, and Japan's Nikkei surged 2.8% in its first session of 2013.
In regional economic data:
China's HSBC services PMI was reported at 51.7, which was a slight decline from the prior month's 52.1.
Australia's AIG Services Index came in at 43.2, below last month's reading of 47.1.
In news:
The South Korean government is planning to prohibit foreign shippers from being awarded contracts in the nationalized energy sector.

European indices are mixed as trade nears midday. France's CAC is shedding 0.4%, Germany's DAX is off by 0.2%, and the United Kingdom's FTSE is adding 0.1%.
Looking at economic data:
Services PMI reports were released across the Eurozone. Most notably, France's reading of 45.2 fell short of the 46.0 expected by the general consensus. Elsewhere, Spain's services PMI came in at 44.3, ahead of the 42.8 expected by the market. Though the reading was better-than-feared, it remained below 50, indicating contraction. The mixed regional reports resulted in an overall Eurozone services PMI reading of 47.8, in-line with expectations.
Germany's retail sales declined 0.9% year-over-year, which was slightly better than the 1.2% contraction forecast by the general consensus.
In news:
Spain's El Pais reported that 79% of Spanish citizens believe the country's economy will remain in its current position or worsen during 2013.
Italian opinion polls indicated Mario Monti, who recently resigned as the country's Prime Minister, would receive less than 15% of the vote, if the election took place today.

In U.S. corporate news:

Finish Line (FINL 17.83, -1.20) is slumping 6.3% after reporting its third quarter earnings. The retailer reported a net of breakeven on the bottom line, while the company's revenue was in-line with the Capital IQ consensus. In addition, the company cut its fourth quarter guidance below consensus.
First Solar (FSLR 33.08, -1.03) is down 3.0% after Raymond James downgraded the stock to ‘Underperform' from ‘Market Perform.'

In addition to the previously mentioned December nonfarm payrolls and the unemployment rate, nonfarm private payrolls, hourly earnings, and average workweek will all be reported at 8:30 ET. Lastly, November factory orders and December ISM services will hit the wires at 10:00 ET.

06:33 am : [BRIEFING.COM] S&P futures vs fair value: flat. Nasdaq futures vs fair value: flat.

06:33 am : Nikkei...10688.11...+292.90...+2.80%. Hang Seng...23331.09...-67.50...-0.30%.

06:33 am : FTSE...6042.95...-4.40...-0.10%. DAX...7740.89...-15.60...-0.20%.

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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