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 Post subject: February 25th Monday Trade Results - Profit $3450
PostPosted: Mon Feb 25, 2013 11:11 pm 
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Joined: Sat Jan 10, 2009 2:06 pm
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Trade Results of M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
Price Action Trading (no technical indicators)

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

Price Action Trade Performance for Today: Emini TF ($TF_F) futures @ $1770.00 dollars or +17.70 points, EuroFX 6E futures @ $0.00 dollars or +0.0000 ticks and Light Crude Oil CL (WTI) futures @ $1680.00 dollars or +1.68 points. Total Profit @ $3450.00 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=114&t=1445

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=203&t=1751

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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, EuroFX 6E futures, Gold GC futures, Light Crude Oil (WTI) CL & Brent Oil futures, Eurex DAX futures, Euronext FTSE100 futures, Emini ES futures, Emini TF futures, Treasury ZB futures and U.S. Dollar Index 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.

Dow and S&P 500 Post Worst Day of 2013

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

NEW YORK (CNNMoney)
The Dow and S&P 500 suffered their biggest one-day decline of the year Monday as U.S. stocks were whipsawed by concerns about political instability in Italy.

After opening higher on a global updraft, the Dow Jones industrial average ended the day down 216 points, or 1.5%. The S&P 500 fell 1.8% and the Nasdaq lost 1.4%. It was the worst day since Nov. 7 for both the Dow and S&P 500, and comes after both indexes logged their worst week of the year last week.

Wall Street's so-called fear gauge, the CBOE market volatility index, or VIX (VIX), surged 32%.

It was difficult to pinpoint the catalyst for the late-day sell off, said Ryan Larson, a senior equity trader at RBC Global Asset Management.

"Nothing specific, just herd mentality," he said. "People tend to not show their true hands until the final seconds of the trading day."

Overall, traders said political uncertainty in Italy was the main trigger. But many added that stocks have been vulnerable to a pullback after making a run at new all-time highs earlier this month.

"People may be using some of the overseas events as an excuse to realize that pullback," said Larson.

Initial results from Sunday's election showed the center-left party of Pier Luigi Bersani leading in both chambers of parliament. But later projections indicated that former Prime Minister SIlvio Berlusconi and his anti-austerity allies were not far behind in the Senate race, which is decided on a regional basis.

While the final outcome is still uncertain, investors are concerned that "gridlock" in the Italian Senate could undermine the progress Italy has made in overhauling its troubled economy, said Dave Rovelli, managing director of U.S. equity trading at brokerage Canaccord Adams.

"They're worried that if Berlusconi gets elected, there will be no one ruling the roost," said Rovelli. "The market is back to where it was a year ago, we're focusing on Italian and Spanish bond yields."

Indeed, the last time the VIX saw such a dramatic spike was Nov. 9 2011, notes David Lutz, head ETF trader at Stifel Nicolaus. After checking the headlines from that day, Lutz said Italy was the culprit behind that big surge in the VIX as well.

* Markets reverse as Italy deadlock looms

European markets pared earlier gains. The DAX in Germany and France's CAC40 both rose, but the FTSE 100 in London lagged. Moody's announced late Friday that it had lowered the United Kingdom's AAA credit rating, citing the country's rising debt burden and tepid growth outlook. The British pound fell versus the dollar and the euro in trading Monday.

* Fear & Greed Index no longer in extreme greed

Meanwhile, investors remain sanguine about the latest budget impasse in Washington.

Chances are slim that Congress will avert the automatic spending cuts, known as sequestration, before they take effect this Friday. It's more likely lawmakers will reach a deal to replace the cuts after they begin. But there's no telling when.

Investors are also bracing for Federal Reserve chairman Ben Bernanke's annual testimony on the U.S. economy to Congress this Tuesday and Wednesday.

The worries about Italy also overshadowed reports that Prime Minister Shinzo Abe is poised to nominate an advocate of aggressive monetary easing to head the Bank of Japan. The yen fell to its lowest point versus the dollar since May 2010, while Japan's benchmark Nikkei index added 2.4%.

Chinese shares rose modestly after a report on Chinese manufacturing fell unexpectedly. The Hang Seng increased 0.2% and the Shanghai Composite closed up 0.5%.

* Wall Street CEO pay: Who gets the most

In corporate news, shares of Barnes & Noble (BKS, Fortune 500) shot higher after Chairman Leonard Riggio said he plans to buy the company's retail operations, leaving the Nook electronic book segment a separate company. No price was disclosed in his filing with the Securities and Exchange Commission.

Lowe's (LOW, Fortune 500) reported lower sales and earnings, but both results were slightly better than forecasts and the company announced a $5 billion share repurchase.

Results are due later in the week from companies including Home Depot (HD, Fortune 500), Macy's (M, Fortune 500), J.C. Penney (JCP, Fortune 500) and Groupo (GRPN)n.

Shares of 3D systems (DDD) fell after the maker of 3D printers reported quarterly results that were slightly better than expected but missed revenue forecasts. A previously announced three-for-two stock split also went into effect Monday.

Shares of Chesapeake Energy (CHK, Fortune 500) fell after the embattled natural gas producer sold some oil and gas assets to Sinopec for $1 billion.

FarmVille maker Zynga (ZNGA) shares surged on reports New Jersey will revise online gambling laws.

Oil and gold prices rose, while the U.S. dollar fell versus the euro.

The yield on the 10-year Treasury note edged up to 1.99%, from 1.97% previously.

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4:20 pm : Equities endured a broad sell off which saw the S&P 500 drop 1.8%. Bearish sentiment built into the afternoon as the likely deadlock in the Italian general election weighed on markets.

Stocks got off to a broadly higher start as early "instant polls" suggested Pier Luigi Bersani, who is a supporter of reforms started by Mario Monti, was destined for full control of the government. This was welcomed by European markets, which rallied broadly and saw Italy's MIB climb 4.0%. The risk-on bias was confirmed by the bond market where Italian bonds were bid, and the 10-yr yield slid 27 points.

However, once the initial reports were followed by exit polls indicating a much closer race, European markets surrendered the bulk of their gains. Italian yield climbed back into positive territory, and U.S. equities slid off their opening highs. As of the U.S. close, official results remain unclear.

The financial sector was the day's weakest performer due to its heightened sensitivity to sovereign debt. In addition, banks are one of the main lines of defense in the face of economic or political uncertainty. The SPDR Financial Select Sector ETF (XLF 17.26, -0.48) shed 2.7% and Morgan Stanley (MS 22.03, -1.55) was the weakest performer among the majors. Meanwhile, Goldman Sachs (GS 147.65, -6.44) lost 4.2% after Reuters reported the investment bank will begin a fresh round of job cuts later this week.

In addition to financials, other cyclical sectors underperformed as well. The materials space saw weakness for the majority of last week and today's selling caused the sector to turn negative for the year.

Overnight, China's HSBC Manufacturing PMI fell short of expectations, suggesting the country's continued economic growth may face some challenges. Combined with the upcoming implementation of automatic spending cuts known as the "sequester," these developments weighed on industrial shares. Dow component Caterpillar (CAT 89.16, -2.38) settled lower by 2.6%.

In industrial earnings, 3D Systems (DDD 34.65, -3.32) lost 8.7% after reporting mixed earnings. Although the company beat on the bottom line, its revenue fell short of analyst expectations. In addition, the company guided full-year earnings which may not compare to estimates due to the inclusion of the Geomatic acquisition.

With cyclical stocks leading to the downside, defensively-oriented sectors registered slimmer losses than the broader market, but only telecom was able to avoid losing more than 1.0%.

Today's selling caused the CBOE Volatility Index (VIX 19.18, +5.01) to jump over 35.0% and climb above its 200-day moving average. In addition, the near-term volatility measure ended at its highest level of the year.

A safe-haven bid sent the 10-yr yield lower by 10 basis points to 1.87%.

Volume was heavy, and accelerated into the close as nearly 820 million shares changed hands on the floor of the New York Stock Exchange. Today's tally marks the highest total of the year, eclipsing last Wednesday's 816 million.

In the foreign exchange market, the euro endured a busy session which saw the common currency gain as much as 100 pips versus the dollar in early trade. However, those gains were built on the expectations of a clear win by Pier Luigi Bersani. Since the initial polls came into question, the common currency has turned negative, and is now shedding 100 pips against the greenback.

Tomorrow, December Case-Shiller 20-city Index and the FHFA Housing Price Index will both be reported at 9:00 ET. In addition, January new home sales and February consumer confidence will be announced at 10:00 ET.

Another event on the horizon is tomorrow's Humphrey-Hawkins testimony. This is the two day bi-annual testimony held by the Fed Chairman. Mr. Bernanke will testify in front of the Senate on Tuesday and the House on Wednesday.DJ30 -216.40 NASDAQ -45.57 SP500 -27.75 NASDAQ Adv/Vol/Dec 468/1.86 bln/2044 NYSE Adv/Vol/Dec 677/818.8 mln/2403

3:30 pm :

Apr crude oil gave up all of its early morning gains as the dollar index gained strength. The energy component pulled-back from its session high of $93.94 per barrel and oscillated between positive and negative territory in afternoon action. It dipped to a session low of $92.69 per barrel as it headed into the close and settled just four cents below the unchanged line at $93.10 per barrel.
Apr natural gas extended last session's gains as it gained support from near-term forecasts of colder, below average temperatures. Prices temporarily dipped to a session low of $3.42 per MMBtu in mid-morning action but eventually settled 3.6% higher at $3.47 per MMBtu, or just below the session high of $3.48 per MMBtu.
Apr gold traded higher during today's floor trade despite a climb by the dollar index on uncertainly over Italian elections. Investors also await Fed Chairman Bernanke's testimony to the Senate and the House tomorrow and Wednesday. The yellow metal brushed a session high of $1591.60 per ounce and settled with a 0.9% gain at $1587.00 per ounce.
Mar silver also held on to firm gains as it traded in a fairly consolidative pattern for most of its pit session. It brushed a session high of $29.11per ounce in late morning action and eventually settled 1.9% higher at $28.98 per ounce.

DJ30 -114.23 NASDAQ -24.58 SP500 -16.70 NASDAQ Adv/Vol/Dec 668/1535.6 mln/1823 NYSE Adv/Vol/Dec 812/517 mln/2217

3:00 pm : Heading into the final hour of trade, the major averages continue to trade near their lows. The S&P 500 is down 0.7% and the financial sector remains as the weakest performer. Stocks have spent the duration of today's trade in a steady decline fueled by mounting indications suggesting the Italian election may produce a deadlock. The official results from the Lower House are expected to come through at any minute, with an official tally of the Senate vote expected around 18:00 ET.

In the foreign exchange market, the euro has endured a busy session which saw the common currency gain as much as 100 pips versus the dollar in early trade. However, those gains were built on the expectations of a clear win by Pier Luigi Bersani. Since the initial polls came into question, the common currency has turned negative, and is now shedding 100 pips against the greenback. The CurrencyShares Euro Trust ETF (FXE 130.12, -0.68) trades lower by 0.5%.DJ30 -67.18 NASDAQ -12.21 SP500 -10.13 NASDAQ Adv/Vol/Dec 815/1.35 bln/1671 NYSE Adv/Vol/Dec 955/458.3 mln/2044

2:30 pm : The S&P 500 is off by 0.7% as the index remains near its recently-established lows. The benchmark index saw further weakness during the past 30 minutes as additional polls out of Italy suggested the final count might result in a hung parliament.

Financials have shown the most sensitivity to today's headlines as the sector carries exposure to sovereign debt. With the increased possibility of a market-negative result, the sector stands to lose the most from uncertainty. The SPDR Financial Select Sector ETF (XLF 17.51, -0.23) is down 1.3% and Morgan Stanley (MS 22.70, -0.88) is the weakest performer among the majors.

Also of note, the CBOE Volatility Index (VIX 17.04, +2.87) is now climbing over 20.0% after starting the session in negative territory.DJ30 -82.47 NASDAQ -12.80 SP500 -10.72 NASDAQ Adv/Vol/Dec 838/1.25 bln/1633 NYSE Adv/Vol/Dec 977/421.1 mln/2027

2:00 pm : The S&P 500 has notched fresh lows amid reports out of Italy suggesting a Senate majority is unlikely given the current results. However, official word regarding results of the Lower House vote is not expected until 15:00 ET. In addition, Senate results are expected three hours later, at 18:00 ET.

With the S&P 500 slipping to fresh lows, financials have extended their losses. On the upside, the telecom sector is the only remaining advancer.

Also of note, the CBOE Volatility Index (VIX 15.77, +1.60) is adding over 10.0% as the near-term volatility measure trades at its session highs.DJ30 -75.80 NASDAQ -9.66 SP500 -10.45 NASDAQ Adv/Vol/Dec 860/1.14 bln/1606 NYSE Adv/Vol/Dec 1001/380.8 mln/1981

1:30 pm : The S&P 500 continues to trade in the red as investors appear to be favoring the wait-and-see approach amid frequent updates from Italy. It should be noted official word is not expected until 15:00 ET when the results of the Lower House vote are scheduled to be released. Meanwhile, Senate results are expected to come through around 18:00 ET.

Little change has been observed in sector leadership during recent trade. Financials remain as the weakest sector due to its exposure to European debt. On the upside, defensively-oriented health care, telecoms, and utilities are outperforming.

The SPDR Utilities Select Sector ETF (XLU 37.30, +0.12) is adding 0.5%, and is the best performing sector ETF.DJ30 -44.06 NASDAQ -2.29 SP500 -6.27 NASDAQ Adv/Vol/Dec 966/1.07 bln/1483 NYSE Adv/Vol/Dec 1117/348.9 mln/1839

1:00 pm : At midday, the key indices trade in mixed fashion with the S&P 500 off by 0.1%.

Today's session began with all eyes turned to the Italian election where early 'instant polls' suggested Pier Luigi Bersani's center-left party was destined to take outright control of the government. Mr. Bersani is viewed as a supporter of the reforms started by Mario Monti, and his lead was painted as a positive development for the Eurozone.

European markets welcomed the early reports with Italy's MIB climbing as much as 4.0%. However, the subsequent exit polls have pointed to a much closer race with some predicting a Senate victory for former Prime Minister Silvio Berlusconi. These reports were met with a risk-off reaction which saw Italy's MIB surrender the bulk of its gains.

The sudden weakness across Europe was followed with a similar reaction in the U.S. market. Shortly after an upbeat open, the S&P 500 began a steady slide to its lows.

The financial sector is the day's weakest performer and the SPDR Financial Select Sector ETF (XLF 17.62, -0.12) is down 0.7%. With financials carrying exposure to European debt, the sector is likely to continue showing heightened sensitivity until more concrete results are announced.

Elsewhere, materials and industrials are underperforming amid reignited growth concerns. This comes as the United States nears the March 1 implementation of automatic spending cuts known as the "sequester." In addition, China's HSBC Manufacturing PMI fell short of expectations. With increased sensitivity to global growth, Caterpillar (CAT 90.94, -0.60) is shedding 0.7%.

In Washington, President Obama spoke briefly about the sequester and pointed to negative implications from going forward with automatic cuts. Meanwhile, House Speaker John Boehner will also discuss the sequester at 16:00 ET.

As cyclical sectors weigh on the broader market, the defensive trade is contributing to the outperformance from health care, telecoms, and utilities.DJ30 -11.28 NASDAQ +4.97 SP500 -1.59 NASDAQ Adv/Vol/Dec 1042/981.8 mln/1377 NYSE Adv/Vol/Dec 1266/321.8 mln/1668

12:25 pm : Recent trade has seen the major averages continue to hover near their session lows. The S&P 500 is down 0.3% and financials are leading the benchmark index to the downside. In addition, energy, materials, and industrials are also pressuring the index.

Notably, the materials sector saw broad weakness for the bulk of last week, causing it to slip into the red for 2013. Materials rebounded on Friday, but today's underperformance has taken the sector's 2013 return back below 1.0%. Since December 31, materials have gained 0.7% to register the slimmest advance among all 10 S&P 500 sectors.

Among industrial stocks, Caterpillar (CAT 90.76, -0.78) is down 0.9% after Chinese growth concerns were reignited with a disappointing HSBC Manufacturing PMI report.DJ30 -41.03 NASDAQ -2.32 SP500 -4.80 NASDAQ Adv/Vol/Dec 937/890.8 mln/1464 NYSE Adv/Vol/Dec 1152/294.3 mln/1772

12:00 pm : The major averages have continued their recent weakness. As a result, the S&P 500 has notched fresh lows and is now off by 0.5%. Key indices notched their respective lows amid further indications the Italian vote may end in a deadlock with some officials from the center left already calling for a fresh round of voting.

As U.S. equities surrender their early gains, financials are among the weakest performers. With exposure to European debt, the sector is expected to continue showing sensitivity to headlines out of Italy for the remainder of the day. Currently, the SPDR Financial Select Sector ETF (XLF 17.57, -0.17) is down 1.0% and Morgan Stanley (MS 22.85, -0.73) is the weakest performer among the majors, off by 3.1%.DJ30 -65.22 NASDAQ -6.72 SP500 -7.07 NASDAQ Adv/Vol/Dec 957/805.6 mln/1451 NYSE Adv/Vol/Dec 1136/265.1 mln/1775

11:30 am : Equities continue to trade near their lows as market participants await further updates from Italy where votes continue to be counted. Some time may still pass before more concrete results are revealed, but the possibility of reaching a hung parliament should not be discounted just yet. This would be similar to the outcome of last year's Greek election where the first vote resulted in a split decision, and was followed by a second round.

U.S. equities are trading in cautious fashion with financials as the biggest laggard. Having exposure to European financials, this sector may exhibit further volatility as additional headlines out of Europe continue pouring in.

On the upside, utilities are leading the broader market and the SPDR Utilities Select Sector ETF (XLU 37.40, +0.22) is rising 0.6%.DJ30 +15.33 NASDAQ +10.46 SP500 +2.15 NASDAQ Adv/Vol/Dec 1202/711.1 mln/1206 NYSE Adv/Vol/Dec 1471/232.7 mln/1403

11:05 am : The major averages have slid off their early highs after Italian exit polls portrayed a much tighter race than what was originally indicated by the "instant polls." While certain outlets are projecting Pier Luigi Bersani as the leader, others have pointed to Silvio Berlusconi as receiving the majority of senate votes. With mixed results across the country, the possibility of a hung parliament is becoming more likely. In such event, another vote would take place at a later date.

In reaction to the news, Italy's MIB, which was up over 4.0%, has now turned negative. Likewise, Italian bonds saw a sharp end to their rally, with yields retracing the bulk of their earlier losses. Similarly, the euro has surrendered the majority of its earlier gains versus the dollar.

With the uncertainty surrounding the Italian election results, energy, financials, materials, and industrials have slipped into the red in U.S. trade. The financial sector is now the weakest performer on the session with the SPDR Financial Select Sector ETF (XLF 17.66, -0.08) down 0.5%.DJ30 -7.71 NASDAQ +5.41 SP500 -0.39 NASDAQ Adv/Vol/Dec 1081/601.5 mln/1292 NYSE Adv/Vol/Dec 1363/199.6 mln/1493

10:35 am : Major commodities such as oil, gold, silver, copper and nat gas were all trading in positive territory this morning. Overall, energy and metals are higher, but the majority of the agriculture space is in the red.

Overnight, the dollar index slid into negative territory, which provided today's price support to the commodity space. The index hit its LoD just after 8am EST, but has since erased most of its losses, which has begun to weigh on many commodities.

In fact, crude oil just sold off all the way back to the flat line, ultimately falling about $1.30/barrel off its early morning high. In current trade. Apr crude oil is up 2 cents at $93.15/barrel.

Natural gas has been in positive territory all session and has only modestly pullback on the uptick in the dollar index. Mar nat gas is now +2.5% at $3.37/MMBtu.

Gold and silver have been in positive territory all session, but have been inching lower in recent trade driven by the strength here in the dollar index. Apr gold is now +0.8% at $1585.60/oz and Mar silver is +1.8% at $28.96/oz. Mar copper is +0.5% at $3.55/lb.

In the ag space, corn futures are now just slightly higher, up 1 cent at $6.91/bushel. Wheat is down 0.4% at $7.16/bu and soybean futures are down 0.4% at $14.39/bu.DJ30 +34.42 NASDAQ +14.55 SP500 +3.99 NASDAQ Adv/Vol/Dec 1171/438.7 mln/1155 NYSE Adv/Vol/Dec 1597/157 mln/1217

10:00 am : Major averages continue to trade near their early highs with the S&P 500 up 0.6%. Stocks opened broadly higher amid indications Pier Luigi Bersani's center-left will be victorious in the Italian general election. Though early "instant polls" suggested Mr. Bersani has won, more official exit polls are expected to start crossing the wires at any moment.

As equities trade near their highs, utilities, energy, and technology are pacing the advance.DJ30 +70.38 NASDAQ +23.17 SP500 +9.27 NASDAQ Adv/Vol/Dec 1485/277.8 mln/795 NYSE Adv/Vol/Dec 1967/107.1 mln/777

09:50 am : The major averages have followed an upbeat open with a climb to their respective highs. The S&P 500 is currently adding 0.4% with mixed performance from its 10 sectors.

Energy, telecoms, and utilities are among the strongest early performers. Meanwhile, consumer discretionary and staple shares as well as industrials are underperforming slightly.

In the foreign exchange market the dollar index is modestly lower with notable weakness seen against the euro. The common currency is adding about 70 pips versus the greenback as the victory by Pier Luigi Bersani's center-left party is being priced-in. However, since voting ended, the euro has slipped off its highs, thus suggesting a sell-the-news reaction may be taking place.DJ30 +35.45 NASDAQ +16.52 SP500 +6.26 NASDAQ Adv/Vol/Dec 1428/190.1 mln/791 NYSE Adv/Vol/Dec 1919/84.2 mln/765

09:16 am : [BRIEFING.COM] S&P futures vs fair value: +7.80. Nasdaq futures vs fair value: +16.50. Heading into the open, U.S. equity futures are signaling a higher start to the session with the S&P 500 futures up 0.5%. Equity indices are poised to register gains at the start amid upbeat European trade where early returns from the Italian election are suggesting a victory for Pier Luigi Bersani's center-left party.

With no U.S. economic data, investors are looking to corporate news. Barnes & Noble (BKS 14.90, +1.39) is jumping 10.8% after the company confirmed plans to evaluate the sale of its retail business.

09:00 am : [BRIEFING.COM] S&P futures vs fair value: +7.20. Nasdaq futures vs fair value: +16.50.

U.S. equity futures have slipped off their pre0market highs but they remain in positive territory. The S&P 500 futures are adding 0.4%.

European indices are trading broadly higher as voting in the Italian general election ends. With polls now officially closed, exit results are expected to begin pouring in shortly. However, due to the close nature of the race, the initial polls may not be entirely accurate. Regional economic data was limited to the United Kingdom's BBA mortgage approvals, which were reported at 32.3K, slightly worse than the 34.2K expected by the market.

In news, shortly after the U.S. close on Friday, Moody's stripped the United Kingdom of its 'AAA' credit rating. The rating agency downgraded the country's government bond rating by one notch to 'AA1' due to expected medium-term weakness.

In the United Kingdom, the FTSE is adding 0.6% with financials advancing despite the sovereign downgrade. Barclays and Royal Bank of Scotland are up between 2.4% and 2.7%. On the downside, media company Pearson is down 5.8% after guiding flat 2013 earnings due to difficult market conditions.
France's CAC is firmer by 1.6% and financials are outperforming as well. Credit Agricole and Societe Generale are higher by 3.6% and 4.0% respectively.
In Germany, the DAX is rising 2.2% as 29 of 30 components trade with gains. Producers of basic materials are outperforming with K+S and ThyssenKrupp adding 3.1% and 2.8% respectively.
Italy's MIB is rising 2.1% amid speculation low turnout may not bode well for former Prime Minister Silvio Berlusconi and his People of Freedom Party. Meanwhile, the Italian 10-yr yield is slipping 12 basis points to 4.33%.

It was a sea of green across Asia as all of the major bourses aside from Taiwan's Taiex (-0.5%) and South Korea's Kospi (-0.5%) ended in the green. Japan's Nikkei (+2.4%) rallied as the yen weakened to a fresh 33-month low of 94.75 on reports Haruhiko Kuroda has emerged as the favorite to take over the Bank of Japan. Mr. Kuroda is viewed as a candidate who would continue Prime Minister Abe's view that aggressive easing is needed. Meanwhile, data out overnight showed China's HSBC Flash Manufacturing PMI (50.4 actual v. 52.2 expected) miss estimates and Hong Kong's trade deficit shrink to HKD27.5 billion (HKD 29.0 billion expected, HKD48.0 billion previous).

In Japan, the Nikkei gained 2.4% to end at its best level in four and a half years. Exporters led the way as Sony jumped 3.4% and Toyota Motor tacked on 1.4%. Meanwhile, financials were also strong as Mitsubishi UFJ Financial added 2.7%.
Hong Kong's Hang Seng added 0.2% despite weakness in property developers. Sun Hung Kai Properties gave up 1.3% and Cheung Kong slipped 0.6% after Friday's announcement to curb real estate prices. Elsewhere, insurer AIA gained 1.1% as traders await Wednesday's earnings release.
In China, the Shanghai Composite advanced 0.5% with brokerage firms leading the way on reports a pilot program will begin for short-selling and margin-trading. Citic Securities and GF Securities led the space with gains of 1.0% and 1.5% respectively.

08:30 am : [BRIEFING.COM] S&P futures vs fair value: +8.40. Nasdaq futures vs fair value: +20.00. U.S. equity futures are trading firmly higher as European markets register gains across the board. The upbeat sentiment across the ocean comes as voting in Italy heads into final stages. While the initial exit polls may not be fully accurate, low voter turnout has been portrayed as a positive for Pier Luigi Bersani and his center-left party. That expectation is also being reflected in the markets with Italy's MIB higher by 2.3% and the 10-yr yield lower by 12 basis points to 4.33%.

Domestically, there is no economic data on today's schedule. Instead the markets will look to continue their gains from Friday in an attempt to push to fresh highs for the year. Currently, the S&P 500 futures are suggesting a higher open by about six points.

08:00 am : S&P futures vs fair value: +8.40. Nasdaq futures vs fair value: +20.00.

U.S. equity futures are firmly higher amid bullish European trade with the S&P 500 futures up 0.5%. The upbeat sentiment takes place as final votes are cast in this year's Italian general election. The polls are set to close in one hour (15:00 local time, 9:00ET) with early results likely to follow shortly after.

Looking at overseas developments:

Asian markets finished higher. Hong Kong's Hang Seng added 0.2%, China's Shanghai Composite gained 0.5%, and Japan's Nikkei advanced 2.4%.
In regional economic data:
Japan's Corporate Services Price Index slipped 0.2% year-over-year, as expected.
China's HSBC manufacturing PMI was reported at 50.40, worse than the 52.20 expected by the general consensus. Today's reading was a four-month low for the measure.
Looking at news:
Although the next head of the Bank of Japan has not yet been named, weekend reports suggested the Asian Development Bank President, Haruhiko Kuroda, may be the favorite to get the nod. Members of the opposition have already voiced their likely support for Mr. Kuroda.
Reports out of Hong Kong indicate China will take specific steps in order to address rising home prices.

European indices are trading broadly higher near midday. The United Kingdom's FTSE is adding 0.6%, France's CAC is firmer by 1.9%, and Germany's DAX is rising 2.5%.
Regional economic data was limited:
The United Kingdom's BBA mortgage approvals were reported at 32.3K, slightly worse than the 34.2K expected by the market.
In news:
Shortly after the U.S. close on Friday, Moody's stripped the United Kingdom of its 'AAA' credit rating. The rating agency downgraded the country's government bond rating by one notch to 'AA1' due to expected medium-term weakness.
Markets in Italy are rallying amid speculation low turnout may not bode well for former Prime Minister Silvio Berlusconi and his People of Freedom Party.

In U.S. corporate news:

Barnes & Noble (BKS 16.00, +2.49) is jumping 18.4% after the company confirmed plans to evaluate the sale of its retail business.
Lowe's (LOW 38.45, +0.78) is adding 2.1% following a top and bottom line beat. However, the company issued mixed guidance, expecting its full-year 2014 earnings to fall below analyst expectations on better-than-expected revenue.

There is no notable economic data scheduled for today's release. However the U.S. Treasury will auction off $32 billion in 2-yr notes.

06:47 am : [BRIEFING.COM] S&P futures vs fair value: +8.00. Nasdaq futures vs fair value: +17.00.

06:47 am : Nikkei...11662.52...+276.60...+2.40%. Hang Seng...22820.08...+37.60...+0.20%.

06:47 am : FTSE...6375.40...+83.70...+1.30%. DAX...7839.41...+177.50...+2.30%.

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 Image@ http://stocktwits.com/wrbtrader

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