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 Post subject: February 26th Tuesday Trade Results - Profit $3690
PostPosted: Tue Feb 26, 2013 8:39 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 @ $3690.00 dollars or +36.90 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 @ $3690.00 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=1446

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.

Stocks Close Higher On Fed Speak

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

NEW YORK (CNNMoney)
Stocks closed solidly higher Tuesday after Fed chairman Ben Bernanke gave investors reason to believe that the central bank would continue to do its part to help the economy.

"Economic activity in the United States has continued to expand at a moderate, if somewhat uneven pace," he said, explaining why the Fed's bond buying program should continue.

Bernanke's promise of continued aid, coupled with positive economic data and robust corporate earnings, helped the Dow Jones Industrial Average, the S&P 500 and the Nasdaq end the day up between 0.4% and 0.8%.

Gold prices also rallied, rising nearly 2% in the biggest one-day jump this year. "Gold looks good today on Bernanke's reassurance of continued monetary accommodation," Jeffrey Nichols, a managing director at American Precious Metals Advisors wrote in a note to investors.

The S&P Case-Shiller index for the fourth quarter showed home prices jumped 7.3%, the third straight quarter of year-over-year gains. New home sales also jumped more than 15% in January, the sharpest monthly increase since July 2008.

Home improvement retailer Home Depot (HD, Fortune 500) reported strong year-end results, providing more evidence of a housing rebound. The company reported a 7% gain in same-store sales for the fourth quarter.

Consumer confidence also increased in February. The Conference Board's index showed that confidence jumped to 69.0 from 58.6 in January.

Shares of department store chain Macy's (M, Fortune 500) rose after the company reported a 20% increase in fourth quarter profits and a 3.7% increase in sales at stores open for more than one year.

Shares of Best Buy (BBY, Fortune 500) dropped more than 3% after the troubled electronic retailer announced that it would cut 400 jobs at its headquarters as part of a plan to slash $150 million in expenses.

JPMorgan Chase (JPM, Fortune 500) announced plans to cut costs at the bank. At the bank's annual investors day, CEO Jamie Dimon said he plans to cut 4,000 positions in 2013 as part of the bank's plan to save $1 billion this year.

Shares of Priceline (PCLN) spiked after the bell following the company's fourth quarter results. The online travel site beat profit forecasts.

First Solar (FSLR)'s stock plunged in after hours trading, after the solar company's revenues missed expectations.

* Italy's election mess won't knock out Europe

On Tuesday, Italian politics took a backseat after dominating investor sentiment Monday.

An Italian election that failed to produce a clear winner whipsawed U.S. stocks late Monday, with the Dow and S&P 500 suffering their biggest one-day declines of the year.

Election results released by the Italian government late Monday showed a narrow victory for the center-left coalition headed by Pier Luigi Bersani in the lower house of parliament.

But former Prime Minister Silvio Berlusconi and other anti-austerity parties were not far behind, and the results pointed to gridlock in the Italian Senate.

* Investor fear on the rise

European markets ended the day down between 1.3% and 2.7%, following Asian markets, which also closed lower.

The Hang Seng in Hong Kong fell 1.3%, while the Nikkei in Tokyo dropped 2.3% and the Shanghai Composite lost 1.4%.

Oil prices dipped. The U.S. dollar fell versus the Japanese yen but gained against the euro and the British pound.

The yield on the 10-year Treasury note edged lower to 1.87%, from 1.97% previously.

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4:15 pm : The S&P 500 ended today's session with a gain of 0.6% despite enduring some early weakness. The benchmark average started the day on a positive note with upbeat economic data proving insufficient in staving off the early selling pressure. However, markets staged a rebound in afternoon trade with the key indices climbing to fresh highs.

Consumer discretionary stocks were among today's top performers, largely due to upbeat February consumer confidence, which was reported at 69.0. In addition, January new home sales of 437,000 were reported well ahead of the Briefing.com consensus.

The strong housing data coupled with a healthy rise in December home prices provided support for homebuilders. DR Horton (DHI 22.25, +0.88) and Lennar (LEN 38.01, +1.35) both gained near 4.0%, and the broader SPDR S&P Homebuilders ETF (XHB 27.77, +0.80) advanced 3.0%.

Discretionary shares also received support after Home Depot (HD 67.56, +3.64) reported better-than-expected earnings and revenue. In addition, the company hiked its quarterly dividend by 34% to $0.39/share and authorized a $17 billion share repurchase program. The Dow component jumped 5.7%, contributing to the relative strength of the blue chip average.

While discretionary shares outperformed, consumer staples finished as one of the weakest sectors. Tyson Foods (TSN 22.40, -0.86) slipped 3.7% after saying margin compression has taken a bite out of its beef and pork segments. Meanwhile, United Natural Foods (UNFI 50.45, -2.55) slid 4.8% after guiding on the low end of analyst estimates, citing rising costs.

The materials sector has been one of the weakest performers dating back to last week, but the space led today's rebound. The SPDR Materials Select Sector ETF (XLB 37.75, +0.40) gained 1.1% amid outperformance from chemical and paper producers. Monsanto (MON 99.20, +1.11) advanced 1.1% and International Paper (IP 42.75, +0.96) climbed 2.3%.

Similar to materials, the financial sector has shown notable sensitivity to the market swings of recent days. With exposure to Italian and other sovereign debt, a rise in political uncertainty runs the risk of turning into financial instability. Today, bank stocks trailed behind the broader market and the SPDR Financial Select Sector ETF (XLF 17.35, +0.09) added 0.5%.

Floor volume at the New York Stock Exchange was slightly above average as 772 million shares changed hands. Notably, today's session saw thinner volume than yesterday's sell off with the Tuesday total also running behind high volume sessions of last week.

With the focus remaining on Italy, concerns over the country's near-term future were also brought up during today's Humphrey-Hawkins Testimony. Speaking before the Senate, Fed Chairman Ben Bernanke said that a need to write-down Italian debt would not inflict serious damage on U.S. financial institutions.

The rest of Mr. Bernanke's remarks at today's testimony have struck a now-familiar tone. The Chairman highlighted the perceived benefits of current monetary policy but also acknowledged very low interest rates could push portfolio managers into a "reach for yield," thus causing them to assume outsized risk.

Regarding the March 1 implementation of automatic spending cuts known as the "sequester," the Chairman does not expect to see an immediate impact, but foresees a build-up of effects over time.

In tomorrow's economic data, the weekly MBA Mortgage Index will be reported at 7:00 ET. At 8:30 January durable goods and durable goods ex-transportation will be released. The day's economic data will be topped off with the 10:00 ET release of January pending home sales.

Also at 10:00 ET, Fed Chairman Ben Bernanke will testify before the House Financial Services Committee, concluding the two-day event. On the earnings front, Joy Global (JOY 59.96, +0.26) and Target (TGT 64.05, +1.16) are scheduled to report their quarterly results before the opening bell.

The U.S. Treasury will auction off $29 billion in 7-yr notes.DJ30 +115.96 NASDAQ +13.40 SP500 +9.09 NASDAQ Adv/Vol/Dec 1488/1.78 bln/971 NYSE Adv/Vol/Dec 1989/772.1 mln/1007

3:30 pm :

Apr crude oil rose to a floor session high of $93.44 per barrel but quickly retreated back into negative territory as concerns over the Italian elections and a stronger dollar index weighed on prices. The energy component brushed a session low of $92.17 per barrel in late morning action and settled 0.5% lower at $92.64 per barrel.
Apr natural gas spent most of the session trading below the unchanged line in choppy fashion. It touched a session high of $3.49 per MMBtu shortly after floor trade opened and later brushed a session low of $3.43 per MMBtu. Natural gas eventually settled 0.3% lower at $3.46 per MMBtu.
Apr gold rose above the $1600 per ounce level as investors digested Fed Chairman Ben Bernanke's testimony before the Senate. The yellow metal dipped to a session low of $1583.70 per ounce in mid-morning floor action but rallied to a session high of $1619.70 per ounce as Mr. Bernanke highlighted the perceived benefits of current monetary policy. It eventually settled at $1615.60 per ounce for a gain of 1.8%.
Mar silver lifted off its session low of $28.55 per ounce and broke into positive territory in mid-morning action. It climbed to a session high of $29.43 per ounce and settled at $29.25 per ounce, or 0.9% higher.

DJ30 +103.05 NASDAQ +9.50 SP500 +7.19 NASDAQ Adv/Vol/Dec 1459/1505.9 mln/980 NYSE Adv/Vol/Dec 1876/526 mln/1057

2:55 pm : Heading into the final hour of trade, the major averages continue to hover near their highs. The Dow is the best performing index as the blue-chip average benefits from upbeat earnings reported by Home Depot (HD 67.32, +3.40).

The price-weighted Dow Jones has spent the duration of the day in positive territory as the 5.5% gain in Home Depot accounts for a considerable portion of the Dow's advance. Meanwhile, remaining Dow components saw increased buying interest in afternoon trade.

With equities rallying into the afternoon, the CBOE Volatility Index (VIX 16.84, -2.15) is lower by 11.3%. The near-term volatility measure has slipped off its highest level of the year after soaring 34% into yesterday's close.DJ30 +107.98 NASDAQ +12.67 SP500 +8.32 NASDAQ Adv/Vol/Dec 1510/1.34 bln/945 NYSE Adv/Vol/Dec 1906/467.9 mln/1028

2:30 pm : The S&P 500 is adding 0.6% as the index continues to trade near its session highs. Stocks have climbed back into positive territory after seeing morning weakness resulting from the inconclusive vote in Italy's general election.

Because of their exposure to European debt, financials led the markets to the downside in early trade, and the sector remains as one of the weakest performers. The SPDR Financial Select Sector ETF (XLF 17.33, +0.07) is adding 0.4%.

Meanwhile, consumer discretionary shares have provided considerable support to the market. Upbeat January new home sales, strong February consumer confidence, and better-than-expected earnings from Home Depot (HD 67.32, +3.40) have all contributed to the outperformance from the sector.DJ30 +117.38 NASDAQ +13.77 SP500 +9.30 NASDAQ Adv/Vol/Dec 1541/1.26 bln/901 NYSE Adv/Vol/Dec 1962/437.2 mln/982

2:00 pm : The S&P 500 is higher by 0.5% after notching a fresh afternoon high. The recent wave of buying has lifted the materials sector to its best level of the day.

Basic materials are outperforming in today's trade after displaying notable weakness dating back to last week. Due to the outsized losses seen by the sector, the space is now the weakest performer year-to-date.

In addition to materials, discretionary shares are also hovering near their session highs. Upbeat February consumer confidence as well as strong January new home sales data have provided support to discretionary stocks. The SPDR S&P Homebuilders ETF (XHB 27.76, +0.79) is higher by 2.9%.DJ30 +101.37 NASDAQ +9.99 SP500 +6.70 NASDAQ Adv/Vol/Dec 1466/1.16 bln/963 NYSE Adv/Vol/Dec 1799/400.7 mln/1139

1:30 pm : The S&P 500 is hovering near its opening levels as caution remains front-of-mind. Looking at the S&P 500 sector performance can often provide a good sense of a trading sentiment, but today's trade is seeing mixed leadership from both cyclical and defensive sectors.

Consumer discretionary shares are trading higher amid strength in homebuilders. This comes after December home prices saw a steady rise and January new home sales exceeded expectations. Additionally, strong earnings from Home Depot (HD 67.48, +3.56) and Cracker Barrel (CBRL 72.90, +5.95) have helped support the sector.

On the downside, consumer staples are underperforming. United Natural Foods (UNFI 49.98, -3.02) is down 5.6% after reporting earnings and guiding full-year bottom line expectations on the low end of analyst forecasts. In addition, Tyson Foods (TSN 21.90, -1.36) is lower by 5.8% after the company said it expects to see margin compression during the second half of the year in its beef and pork segments.DJ30 +93.66 NASDAQ +0.86 SP500 +4.85 NASDAQ Adv/Vol/Dec 1406/1.08 bln/1003 NYSE Adv/Vol/Dec 1713/376.1 mln/1209

1:05 pm : At midday, the S&P 500 is adding 0.4% as the index trades near the middle of its range. Equities opened the session on an upbeat note with the major averages poised to rebound from yesterday's selling. However, the initial strength was short lived as the index retreated back to yesterday's closing levels.

The release of upbeat January new home sales along with strong February consumer confidence did not ignite a fresh round of buying. Instead, the reports were met with a sell-the-news reaction in the major averages.

Though the broader market slipped after the release of today's economic data, this was not the case with homebuilders. The industry welcomed strong January sales which pushed individual builders to fresh highs. DR Horton (DHI 22.16, +0.79) and PulteGroup (PHM 18.98, +0.96) are seeing respective gains of 3.7% and 5.3% while the broader SPDR Homebuilders ETF (XHB 27.70, +0.73) is adding 2.7%.

Discretionary shares have received additional support from Dow component, Home Depot (HD 67.66, +3.74), after the company beat on earnings and revenue. Furthermore, Home Depot guided its full-year 2014 earnings below consensus and hiked its quarterly dividend by 34% to $0.39/share.

Several restaurant operators were boosted by the upbeat consumer confidence report. In addition, Cracker Barrel (CBRL 73.16, +6.21) is surging 9.3% following a top and bottom line beat.

As equities shed their early gains, financials weighed on the markets amid concerns political instability in Italy could spill over into the financial markets. Today, Italy's benchmark 10-yr yield is adding 41 basis points to 9.07%. In addition, heavy selling of Italian BTPs has pushed the cost of insuring Italian debt past that of Spain.

Concerns over Italy were also brought up during Ben Bernanke's testimony before the Senate where the Chairman said a need to write-down Italian debt would not inflict serious damage on U.S. financial institutions.

The rest of Mr. Bernanke's remarks at today's testimony before the Senate have struck a generally familiar tone. The Chairman highlighted the perceived benefits of current monetary policy but also acknowledged very low interest rates could push portfolio managers into a "reach for yield," thus causing them to assume outsized risk.DJ30 +108.01 NASDAQ +3.76 SP500 +6.66 NASDAQ Adv/Vol/Dec 1439/990.1 mln/957 NYSE Adv/Vol/Dec 1778/345.7 mln/1132

12:30 pm : The S&P 500 is registering slim gains as cautious sentiment remains palpable. Financials and technology are among the weakest groups while consumer discretionary shares are trading notably higher. The sector is benefitting from an upbeat quarterly report delivered by Home Depot (HD 67.64, +3.72). Shares of the home improvement store operator are adding 5.8% after beating on earnings and revenue.

In addition, today's economic data pointed to better-than-expected January new home sales. The strong report was received well by homebuilders as they trade broadly higher. The SPDR S&P Homebuilders ETF (XHB 27.50, +0.53) is firmer by 2.0%.DJ30 +79.77 NASDAQ -3.30 SP500 +2.72 NASDAQ Adv/Vol/Dec 1297/887.2 mln/1083 NYSE Adv/Vol/Dec 1515/312.2 mln/1368

12:00 pm : The S&P 500 continues to trade flat after notching fresh lows in the 1485 area. The benchmark average has spent the past hour near its unchanged level as market participants continue showing caution.

Elsewhere, the Nasdaq is off by 0.3%. The tech-heavy index is lagging as its largest component, Apple (AAPL 439.28, -3.52) trades lower by 0.8%. Although tech shares are underperforming, microprocessor manufacturers are seeing some relative strength as the PHLX Semiconductor Index adds 0.1%.

Lastly, the Dow is trading near its opening levels. The 30-stock index is holding onto the bulk of its gains as Home Depot (HD 67.42, +3.50) trades higher by 5.5% after beating on earnings and revenue. However, the company guided full-year 2014 bottom line below consensus expectations.DJ30 +65.32 NASDAQ -7.58 SP500 +0.28 NASDAQ Adv/Vol/Dec 1250/803.7 mln/1103 NYSE Adv/Vol/Dec 1461/288.8 mln/1420

11:30 am : Equities continue to trade in cautious fashion with the S&P 500 registering little change at the moment. The upbeat sentiment of this morning was dispelled shortly after the open when the key indices began sliding off their respective highs. Though the market received news of upbeat January new home sales and strong February consumer confidence, those data points did not ignite buying interest. Instead, the upbeat data was met with a sell-the-news reaction.

At the moment, the markets appear to be more focused on the uncertainty surrounding the Italian election. The question was also brought up during Ben Bernanke's testimony before the Senate where the Chairman said a write-down of Italian debt would not inflict serious damage on U.S. financial institutions.

In earnings news, Home Depot (HD 67.32, +3.40) beat on the top and bottom lines. However, the company guided full-year 2014 earnings below consensus expectations. Home Depot is adding 5.4%, and its relative strength is contributing to the outperformance of the Dow.DJ30 +61.74 NASDAQ -3.22 SP500 +0.26 NASDAQ Adv/Vol/Dec 1313/684.9 mln/1005 NYSE Adv/Vol/Dec 1509/249.1 mln/1370

11:00 am : Recent trade has seen the major averages slip off their session highs. The S&P 500 remains in the black, but the index is now registering a gain of just 0.3%.

With the broader market retreating off its best level of the day, financials have led to the downside. The notable weakness in the cyclical sector suggests market participants continue pricing-in risk associated with possible financial and political instability in Italy. The SPDR Financial Select Sector ETF (XLF 17.24, -0.02) is off by 0.1% after registering gains in early trade.

Also of note, Federal Reserve Chairman Ben Bernanke is currently addressing the Senate as part of the bi-annual Humphrey-Hawkins Testimony. During his remarks, the Chairman has struck a generally familiar tone highlighting the perceived benefits of current monetary policy. However, Mr. Bernanke also acknowledged very low interest rates could push portfolio managers into a "reach for yield," thus causing them to take on more risk.DJ30 +85.29 NASDAQ +6.24 SP500 +4.40 NASDAQ Adv/Vol/Dec 1420/543.5 mln/864 NYSE Adv/Vol/Dec 1731/203.7 mln/1107

10:35 am : Commodities continue to display a lot of volatility this morning and currently, Bernanke is giving a semi-annual testimony before Senate Banking Committee, which continues to be a notable catalyst in the commodities space right now.

Crude oil has been in the red almost all session. Around 830am ET, buyers stepped in and crude rally just over $1.30/barrel, pushing the commodity into positive territory. However, it has since sold off and is now -0.4% at $92.77/barrel. Apr natural gas has moved lower and is now -0.3% at $3.46/MMBtu.

Precious metals sold off in recent trade, but are now on their way higher again, further displaying the volatility this morning. Apr gold is now +0.6% at $1595.70/oz and Mar silver is now -0.6% at $28.83/oz.DJ30 +62.57 NASDAQ -0.67 SP500 +1.33 NASDAQ Adv/Vol/Dec 1266/451.0 mln/977 NYSE Adv/Vol/Dec 1456/175 mln/1355

10:05 am : The S&P 500 has climbed to fresh highs following the latest set of economic data. The benchmark index is currently higher by 0.7%.

New home sales in January hit an annualized rate of 437,000, which was up from December's revised rate of 378,000, and better than the rate of 383,000 that had been broadly expected by the Briefing.com consensus. The SPDR S&P Homebuilders ETF (XHB 27.50, +0.53) moved to fresh highs in reaction to the data.

The latest consumer confidence reading for February came in at 69.6, while economists polled by Briefing.com expected a reading of 62.0. This follows the prior month's revised reading of 58.6.DJ30 +116.46 NASDAQ +16.83 SP500 +9.70 NASDAQ Adv/Vol/Dec 1566/246.5 mln/605 NYSE Adv/Vol/Dec 1974/112.1 mln/755

09:45 am : The major averages have climbed to notch their early highs after an upbeat open. Currently, the S&P 500 is adding 0.5% while the Nasdaq is higher by 0.3%.

All 10 S&P 500 sectors are trading higher out of the gate with consumer discretionary and telecom shares in the lead. On the downside, consumer staples and technology are registering slimmer gains than the broader market.

Among names reacting to earnings, Home Depot (HD 67.11, +3.11) is rising 4.9% following strong quarterly results. The company beat on earnings and revenue, but guided full-year 2014 earnings below consensus expectations. In addition, Home Depot hiked its quarterly dividend by 34% to $0.39/share and authorized a $17 billion share repurchase program.

Today's economic data revealed an uptick in December home prices and the market still awaits January new home sales as well as February consumer confidence. Both reports will be released at 10:00 ET. Also at 10:00 ET, Federal Reserve Chairman Ben Bernanke will appear before the Senate as part of the bi-annual Humphrey-Hawkins Testimony.DJ30 +83.93 NASDAQ +9.00 SP500 +7.82 NASDAQ Adv/Vol/Dec 1458/137.5 mln/615 NYSE Adv/Vol/Dec 1924/76.2 mln/733

09:16 am : [BRIEFING.COM] S&P futures vs fair value: +8.70. Nasdaq futures vs fair value: +11.00. Heading into the open, equity futures are pointing to a higher start to the cash session. The S&P 500 futures are adding 0.5% as the benchmark index will look to rebound from yesterday's 1.8% drop.

As U.S. markets look to open higher, European indices are trading broadly lower with Italy's MIB down 4.3%. The weakness overseas comes as yesterday's vote in the Italian general election failed to produce a clear-cut winner. While Silvio Berlusconi has conceded the lower house to Pier Luigi Bersani and his party, the Senate vote remains deadlocked. An official update is expected later in the day, but recent reports have indicated Silvio Berlusconi has said he would be open to a coalition.

Today's economic data revealed an uptick in December home prices and the market still awaits January new home sales as well as February consumer confidence. Both reports will be released at 10:00 ET. Also at 10:00 ET, Federal Reserve Chairman Ben Bernanke will appear before the Senate as part of the bi-annual Humphrey-Hawkins Testimony.

09:02 am : [BRIEFING.COM] S&P futures vs fair value: +7.30. Nasdaq futures vs fair value: +9.00. U.S. equity futures saw little change in reaction to the latest set of housing data. The S&P 500 futures are currently firmer by 0.4%.

The December Case-Shiller 20-city Home Price Index rose 6.8%, while a 6.5% increase had been expected by the Briefing.com consensus. This follows the previous month's increase of 5.5%.

Meanwhile, December Housing Price Index from the FHFA increased by 0.6%, which follows a 0.6% increase observed during the prior month.

08:29 am : [BRIEFING.COM] S&P futures vs fair value: +4.10. Nasdaq futures vs fair value: +4.70.

U.S. equity futures continue to trade modestly higher with the S&P 500 futures up 0.2%.

European markets are broadly lower as the results of yesterday's Italian election remain inconclusive. While Pier Luigi Bersani's party won the Lower House, there appears to be a deadlock in the Senate. If the current results stand following the official update, Pier Luigi Bersani will look to form a 'grand coalition.' However, given the track record of the other top vote getters (Berlusconi, Grillo), a coalition appears unlikely at this time. Elsewhere, Spanish authorities have confiscated the passport of the former treasurer of the People's Party, Luis Barcenas, who is one of the main players at the center of the corruption scandal recently uncovered by daily newspaper El Pais.

Regional economic data was limited to the United Kingdom's CBI Distributive Trade Survey, which was reported at 8, well below the reading of 16 expected by the market.

The United Kingdom's FTSE is down 1.3% with financials among the weakest performers. Barclays and Royal Bank of Scotland are down 4.1% and 3.4% respectively. Auto and aircraft parts manufacturer GKN is adding 3.1% after the company's recently acquired aerospace unit from Volvo was profitable in the fourth quarter.
Germany's DAX is slipping 1.6% as 27 of 30 components trade down. With the uncertainty surrounding Italy, financials are feeling the brunt of the pressure. Deutsche Bank and Commerzbank are seeing respective losses of 1.3% and 2.2%. On the upside, Fresenius SE is climbing 2.9% following an upbeat profit forecast.
In France, the CAC is lower by 1.8% with all 40 stocks registering losses. BNP Paribas, Credit Agricole, and Societe Generale are all down between 3.8% and 5.4%.
Spain's IBEX is down 2.4% as all 35 index components trade in the red. Banco Bilbao Vizcaya Argentaria is sliding 3.7% and Banco Santander is off by 3.2%.
In Italy, the MIB is falling 4.2% with financials suffering broad losses. Banco Popolare, Intesa Sanpaolo, and UniCredit are all down between 7.7% and 8.6%.

It was a sea of red across Asia after all of the major bourses ended lower due to the uncertainty of the Italian election. Selling was most severe in Japan where the Nikkei fell 2.3%, largely due to the strength of the yen. The currency rallied to better than 91.00 per dollar during yesterday's panic, its strongest of February. Elsewhere, more reports surfaced in China, suggesting Beijing is looking to tighten property measures. Overnight comments from Reserve Bank of Australia Assistant Governor suggested the central bank is ready to cut rates if necessary. This was somewhat of a reversal from recent comments from RBA head Glenn Stevens who said the rate cut cycle was likely over. Data from the region saw Singapore's industrial production slip 0.4% year-over-year (+4.0% expected) and the Philippines trade deficit narrow to $1.28 billion ($1.22 billion expected, $1.59 billion previous).

In Japan, the Nikkei lost 2.3% to post its biggest decline in over a month. Exporters were hit hard thanks to the strong yen with Sony shedding 3.7% and Nissan Motor giving up 2.6%. Meanwhile, Japan Tobacco slipped 0.7% after the Ministry of Finance announced a 333.3 million share offering.
Hong Kong's Hang Seng slid 1.3% as developments out of both Europe and China weighed. Retailer Esprit lost 1.4% as traders dumped stocks with European ties. Elsewhere, China Construction Bank and Evergrande Real Estate Group gave up 2.4% and 4.3% respectively as concerns over further tightening by Beijing weighed.
In China, the Shanghai Composite slipped 1.4% as property shares and commodity-related names underperformed. China Vanke and Jiangxi Copper lost 1.7% and 2.6% respectively to finish among the worst performers in their sectors.

07:59 am : [BRIEFING.COM] S&P futures vs fair value: +5.60. Nasdaq futures vs fair value: +8.00.

U.S. equity futures are modestly higher despite downbeat overseas trade. The S&P 500 futures are higher by 0.3% as the index will look to rebound from yesterday's 1.8% loss, which took place in large part due to an inconclusive result in Italy's general election. After the official count, Pier Luigi Bersani and his party have the most votes in the Lower House, but there appears to be a deadlock in the Senate. Due to the unlikelihood of a coalition being formed between Bersani and either Berlusconi or Grillo, another round of voting is a possibility at this time.

Looking at overseas developments:

Asian markets finished lower. Hong Kong's Hang Seng shed 1.3%, China's Shanghai Composite lost 1.4%, and Japan's Nikkei fell 2.3%.
Regional economic data was mixed:
Singaporean industrial production slipped 0.4% year-over-year while growth of 4.0% was expected to follow the prior reading of 1.3%.
In news:

Sankei News reported a rise in support for the cabinet of Prime Minister Shinzo Abe. The poll showed 69.6% support the administration. European markets are broadly lower. The United Kingdom's FTSE is down 1.3%, Germany's DAX is shedding 1.6%, and France's CAC is lower by 2.0%. On the periphery, Spain's IBEX is sliding 2.5% and Italy's MIB is diving 4.2%.

Only one notable economic data point was reported:
The United Kingdom's CBI Distributive Trade Survey was reported at 8, well below the reading of 16 expected by the market.

In news:
With the lack of a clear winner in the Italian election, the winner of the lower house vote, Pier Luigi Bersani, will look to form a 'grand coalition.' However, given the track record of the other top vote getters, a coalition appears unlikely at this time.

In Spain, authorities have confiscated the passport of the former treasurer of the People's Party, Luis Barcenas, who is one of the main players at the center of the corruption scandal recently uncovered by daily newspaper El Pais.

In U.S. corporate news:

Autodesk (ADSK 35.85, -0.77) is lower by 2.1%. Although the company beat on earnings and revenue, its guidance for the upcoming quarter was below analyst expectations.
AutoZone (AZO 369.95, -8.59) is down 2.4% after reporting mixed earnings. The auto parts store operator beat on the bottom line, but its revenue fell short of the Capital IQ consensus.
Home Depot (HD 64.95, +1.03) is rising 1.5% following strong quarterly results. The company beat on earnings and revenue, but guided full-year 2014 earnings below consensus expectations. In addition, Home Depot hiked its quarterly dividend by 34% to $0.39/share and authorized a $17 billion share repurchase program.

Looking at today's economic data, 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.

Also today, Federal Reserve Chairman Ben Bernanke will take part in the two-day Humphrey-Hawkins testimony. Today's remarks will take place before the Senate, with tomorrow's address scheduled to take place before the House of Representatives.

The U.S. Treasury will auction off $35 billion in 5-yr notes.

06:56 am : [BRIEFING.COM] S&P futures vs fair value: +4.00. Nasdaq futures vs fair value: +7.00.

06:56 am : Nikkei...11398.81...+263.70...-2.30%. Hang Seng...22519.69...-300.40...-1.30%.

06:56 am : FTSE...6270.52...-84.50...-1.30%. DAX...7626.13...-147.10...-1.90%.

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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