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 Post subject: May 17th Friday Trade Results - Profit $2860
PostPosted: Fri May 17, 2013 8:07 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)
Phone: +1 708 572-4885
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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 @ $0.00 dollars or +0.00 points, Light Crude Oil CL ($CL_F) futures @ $1080.00 dollars or +1.08 points, Gold GC ($GC_F) futures @ $1780.00 dollars or +17.80 points, EuroFX 6E ($6E_F) futures @ $0.00 dollars or +0.0000 ticks and Emini ES ($ES_F) futures @ $0.00 dollars or +0.00 points. Total Profit @ $2860.00 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
Gold GC Futures: 1 tick or 0.10 = $10.00 dollars and there's more contract information @ CMEGroup
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 of my trades were posted real-time in the free ##TheStrategyLab chat room. You can read today's ##TheStrategyLab trading chat room logs for details about each one of my trades via price action trading from entry to exit (e.g. time, price, contract size) along with price action commentary as the trade traversed to its completion...all archived @ http://www.thestrategylab.com/ftchat/forum/viewtopic.php?f=117&t=1509

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. Simply, my trade method is applicable for position trading, swing trading and day trading.

Image Price Action Analysis via WRB Analysis Tutorials @ http://www.thestrategylab.com/WRBAnalysisTutorials.htm and there's a free study guide of the WRB Analysis Tutorial Chapters 1, 2 and 3 @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=119&t=718

Image Trade Signal Strategies via Volatility Trading Report (VTR) @ http://www.thestrategylab.com/VolatilityTrading.htm and there's a free trade signal strategy @ http://www.thestrategylab.com/tsl/forum/viewforum.php?f=89 so that you can freely test drive one of our price action trade strategies with support prior to purchasing the Volatility Trading Report (VTR).

Image Trading Plan Daily Routine @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=209&t=1820

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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 for price action trading 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 Finish Higher For Fourth Straight Week

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

NEW YORK (CNNMoney)
The stock market continued its march higher for a fourth week as investors focused on signs of improvement in the U.S. economy.

The Dow Jones industrial average, S&P 500 and Nasdaq all ended higher Friday, with the Dow and S&P 500 finishing at record levels. For the week, the S&P 500 added 2%, the Dow rose 1.5% and the Nasdaq advanced 1.7%.

Friday's gains came after a measure of consumer sentiment rose to its highest level in nearly six years. Separately, a report on leading economic indicators bounced back in April.

U.S. stocks took a step back Thursday amid a raft of mixed economic reports and as some Federal Reserve officials called for an end to monetary stimulus this year.

"The market is very sensitive to comments about the Fed pulling back," said Quincy Krosby, market strategist with Prudential Financial. But Friday's economic reports "helped assuage fears that the economy and consumer were going deeper into a soft patch."

All three indexes have gained around 16% so far this year on a combination of gradually improving economic data and continued support from the Fed.

But the economic outlook may not be as rosy as some would hope, said Bruce McCain, chief investment strategist at Key Private Bank.

"The euphoric reaction in the market is justified to a degree," he said. "But it may overestimate the growth we may see here and overseas."

Meanwhile, gold prices dropped 1.6% to settle firmly below $1,370 an ounce. The precious metal has taken a beating during the past few weeks as investors rotate out of safe-haven assets.

Retailers on the ropes: J.C. Penney (JCP, Fortune 500) shares slid after the ailing retailer reported another massive loss.

The losses came during a quarter in which J.C. Penney announced the departure of CEO Ron Johnson, a former Apple (AAPL, Fortune 500) retail executive hired in 2011 to revive the floundering chain.

Mike Ullman, the former CEO who took back the reins from Johnson, pledged to reemphasize the company's private brands and improve the performance of its online store.

On the higher end of the retail spectrum, Nordstrom (JWN, Fortune 500) shares sank after the company reported weaker-than-expected revenue growth and trimmed its sales outlook.

Facebook: One year later: A year after Facebook's (FB) disastrous stock market debut, the social network's stock is still 30% below its IPO price of $38 a share.

The company went public on May 18, 2012, in one of the most highly anticipated IPOs ever. But its stock performance has been abysmal and some investors are relieved to have missed out on the deal.

* Facebook: Winners and losers

IPO pop: Shares of Tableau Software (DATA) surged 60% in their debut on the New York Stock Exchange.

The company raised more than $254 million through an initial public offering that priced above its estimated range. Tableau, which specializes in data visualization, also raised the amount of shares it offered to 8.2 million from 7.2 million.

Separately, shares of Marketo (MKTO) rallied 67% in their debut after the business-to-business software firm raised nearly $80 million through an IPO.

Tesla's stock offering: Tesla (TSLA) raised $968 million in a secondary offering of common stock and convertible notes. The electric car maker's founder and chairman, Elon Musk, personally bought $100 million shares. Tesla's stock fell slightly but shares of another Musk-backed company, SolarCity (SCTY), surged for the second straight day. The was up more than 25%.

European markets erased earlier losses, while Asian markets ended higher.

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Market Update

4:15 pm : The S&P 500 ended this week with a bang, roaring to a new all-time high on the back of stronger-than-expected economic data, influential leadership, and an ongoing appreciation for the Fed's monetary policy support.

The bullish bias was evident in premarket action as the S&P futures pointed to a higher start without the benefit of any definitive news catalyst. Stocks indeed benefited from a blast of buying interest at the opening bell on this options expiration day that enabled the S&P 500 to reclaim all of yesterday's losses and then some in the first 30 minutes of trading.

Although things settled down, the market's bullish underpinnings were solidified by the stronger-than-expected University of Michigan Consumer Sentiment report for May and the Leading Indicators report for April. The former checked in at 83.7 versus 76.4 in the prior month and the Briefing.com consensus estimate of 78.5. In turn, the Index of Leading Indicators showed a 0.6% increase versus a 0.2% decline in March and the Briefing.com consensus estimate of 0.3%.

Today's economic news helped mitigate the disappointment of Thursday's generally underwhelming news for initial claims, housing starts, and the Philadelphia Fed Index.

After establishing its highs in the first 30 minutes, the S&P 500 traded sideways until about 2:00 p.m. ET, holding close to the 1658 level. There was never any concerted effort by sellers during that time. The market, however, broke out of its sideways stupor over the last two hours in a broad-based buying effort that was led by the cyclical sectors.

The breakout followed news that Minneapolis Fed President Kocherlakota said in a speech today that the FOMC has not lowered real interest rates sufficiently. Mr. Kocherlakota is not a voting FOMC member this year, and just as we were reluctant to assign credit for yesterday's afternoon selloff to the regurgitated views of San Francisco Fed President Williams (also a non voter) about the Fed possibly tapering its asset purchases soon, we were reluctant to suggest the afternoon rally was caused by Mr. Kocherlakota's dovish view. It didn't hurt matters, yet the breakout didn't occur until roughly 20 minutes after his remarks hit the wires.

Our sense of things is that the afternoon move was more of the same with short sellers capitulating in the face of the stock market's resilience to selling interest and bullish participants being emboldened further by the continued leadership of the sectors one would expect to see leading in a cyclical upturn: financials (+1.4%), energy (+1.6), industrials (+1.4%), materials (+1.2%), and technology (+1.2%).

There was little fixation on the disappointing earnings reports from Dell (DELL 13.40, -0.03), J.C. Penney (JCP 18.01, -0.78), Autodesk (ADSK 37.11, -2.67), and Nordstrom (JWN 60.67, -0.46) as the broader trend of capitalizing on the Fed's liquidity support continued to drown out any disappointing developments.

The upside bias in the stock market once again took the wind out of the Treasury market's sails (10-yr note -20/32 at 1.95%) and weighed further on other so-called safety trades like gold (1356.60, -30.30).

With today's gain, the S&P increased 2.0% for the week; and it is now up 4.3% for the month, clearly decoupling itself from the "sell in May and go away" couplet.DJ30 +121.18 NASDAQ +33.72 SP500 +15.65 NASDAQ Adv/Vol/Dec 1711/1.78 bln/755 NYSE Adv/Vol/Dec 2168/848 mln/797

3:30 pm :

June crude oil advanced for a third consecutive session despite strength in the dollar index. The energy component briefly dipped into the red and to a session low of $95.00 per barrel in mid-morning floor trade. However, it regained momentum and recovered most of its earlier gains. It settled at $96.03 per barrel, slightly below its session high of $96.45 per barrel, or just three cents above last Friday's closing price.
June natural gas spent the earlier portion of today's pit trade trading slightly above the unchanged line. Prices rallied sharply to a session high of $4.10 per MMBtu in afternoon action and settled at $4.06 per MMBtu, booking a 3.3% gain. The late-session advance brought gains for the week to 3.8%.
June gold fell for a seventh consecutive session as the dollar index soared following San Fran Fed President John Williams' comments yesterday stating that the Fed could somewhat reduce the pace of its securities purchases as early as this summer. The yellow metal pulled back from its session high of $1379.80 per ounce and dipped to a session low of $1357.60 per ounce by late morning action. It settled today's session 1.6% lower at $1365.30 per ounce, bringing losses for the week to 5.0%.
July silver also struggled in negative territory during today's floor trade. It touched a session low of $22.18 per ounce despite trading as high as $22.64 per ounce in early morning action. It eventually settled 1.3% lower at $22.36 per ounce, booking a 5.5% loss for the week.

DJ30 +116.80 NASDAQ +31.41 SP500 +16.26 NASDAQ Adv/Vol/Dec 1737/1479.5 mln/833 NYSE Adv/Vol/Dec 2143/520 mln/819

3:00 pm : There isn't a final resolution to today's trading yet, but in the last hour participants have resolved to push the envelope and take the market to new session highs.

It wouldn't be any surprise to hear that some short covering has aided today's gains considering that yesterday's weak finish probably spurred some people to set up for a larger pullback. Hasn't happened -- not yet anyway.

The market has remained set in its bullish ways and, arguably, has gotten even more so in recent weeks with the outperformance of the cyclical sectors.

Last year the S&P 500 increased 13.4%. In the last one month alone, the S&P 500 is up 7.2%. DJ30 +88.58 NASDAQ +24.28 SP500 +13.01 NASDAQ Adv/Vol/Dec 1634/1.27 bln/819 NYSE Adv/Vol/Dec 2063/465 mln/888

2:30 pm : The market has perked up a bit and is re-testing its best levels of the day with a move above 1660. Perhaps the dovish remarks from Minneapolis Fed President Kocherlakota have helped sway the action -- or perhaps not.

The market doesn't waste time discounting supportive remarks from Fed officials. Accordingly, we would have expected a more instantaneous reaction if Kocherlakota's comments were the catalyst that pushed things further along here. It doesn't hurt the bulls' cause, though, that Mr. Kocherlakota sounded dovish and that thought may have been just enough to justify another buying attempt after the market has done very little outside the first 30 minutes of trading.

Still, it is very much more of the same with the cyclical sectors providing today's leadership. To that point, the energy sector (+1.3%) has broken out to a new intraday high in the last 30 minutes. Crude futures are up $0.90 at $96.06/bbl.

DJ30 +75.33 NASDAQ +20.35 SP500 +10.77 NASDAQ Adv/Vol/Dec 1580/1.17 bln/863 NYSE Adv/Vol/Dec 2013/431 mln/931

2:00 pm : Sideways continues to be the prevailing direction for the broader market. Interestingly, there has not been much reaction thus far to some policy-related headlines that hit in the last 30 minutes.

Specifically, Treasury Secretary Jack Lew said a short time ago that the debt ceiling will last until Labor Day; meanwhile, Minneapolis Fed President Kocherlakota said in a speech today that he does not think the FOMC has lowered real interest rates sufficiently.

Kocherlakota's remarks can be construed as dovish, but since he was already known to be a dove and considering he is not a voting FOMC member this year, it appears the market is choosing not to get too wrapped up in the remarks. DJ30 +51.37 NASDAQ +16.97 SP500 +7.96 NASDAQ Adv/Vol/Dec 1563/1.08 bln/859 NYSE Adv/Vol/Dec 1962/403 mln/962

1:25 pm : The S&P 500 has been straddling the 1658 line for the last two hours as neither buyers nor sellers have been able to dictate things with any success. Buyers of course had success early, but the market has held in a narrow range following the opening run in the first 30 minutes of trading.

Looking at the Dow Jones Industrial Average, 18 of its 30 components are trading higher. Higher-priced stocks IBM (IBM 207.34, +2.65), United Technologies (UTX 96.70, +1.53), and Boeing (BA 98.76, +2.18) are making a difference that has helped offset weakness in Chevron (CVX 122.43, -0.33) and Travelers (TRV 86.26, -0.61).DJ30 +51.93 NASDAQ +16.38 SP500 +7.78 NASDAQ Adv/Vol/Dec 1572/1.0 bln/835 NYSE Adv/Vol/Dec 1946/379 mln/953

1:00 pm : When the opening bell rang, it took about 30 minutes for the S&P 500 to recoup yesterday's losses as the familiar buy-the-dip trade was back in action. The positive leaning of foreign markets, which was aided by an encouraging machine tool orders report out of Japan and a bounceback in new car registrations in the eurozone, helped contribute to the positive tone.

By and large, though, there wasn't a defining news catalyst for the bullish bias before the bell (which is why we default to the thinking that it was in fact just a buy-the-dip trade). Dell (DELL 13.44, +0.01), J.C. Penney (JCP 18.33, -0.46), Autodesk (ADSK 36.96, -2.82), and Nordstrom (JWN 60.64, -0.49) all disappointed with their earnings results for the March quarter and the economic calendar didn't feature any releases prior to the open.

After the open, however, the University of Michigan Consumer Sentiment report for May and the Leading Indicators report for April helped solidify the favorable price action at the opening bell on this options expiration day when they both checked in much better than expected.

Consumer sentiment ticked up to 83.7 from 76.4 in April while the Index of Leading Indicators jumped 0.6% on the heels of a 0.2% decline in March. The major averages moved to session highs shortly after these releases, but have been locked in a narrow trading range ever since.

Today's gains have been paced once again by the cyclical sectors, with some notable outperformance among the transportation and financial stocks.

The safety trade has essentially been turned off at this point, evidenced by the underperformance of gold (1362.00/oz, -24.90), the 10-yr note (-19/32 at 1.95%), and the countercyclical sectors.

While large-cap stocks have fared relatively well today, the small-cap and mid-cap stocks are outlegging their larger counterparts. The S&P 500 is currently up 0.4% while the Russell 2000 and S&P 400 Midcap Index are up 0.8% and 0.6%, respectively.DJ30 +54.10 NASDAQ +14.38 SP500 +7.03 NASDAQ Adv/Vol/Dec 1553/932 mln/843 NYSE Adv/Vol/Dec 1947/358 mln/949

12:25 pm : The major average are trading near their best levels of the day while the benchmark 10-year note (-16/32 at 1.94%) is trading near its worst levels. In general, today's trading has the feel of the market turning off the risk-off trade.

Aside from the weakness in the Treasury market, there is also some notable weakness in gold prices ($1361.70/oz, -$25.20) and some relative weakness in counteryclical sectors. In turn, the US Dollar Index (84.28, +0.8%) has continued its run, more so on the notion that the US is the place to be as opposed to a place simply to take safe harbor.

Speaking of runs, the Dow Jones Transportation Average (6526.60, +0.9%) is continuing its own, bolstered by gains today across the industry board (truckers, shippers, delivery services, railroads, and airlines).DJ30 +56.07 NASDAQ +15.68 SP500 +7.73 NASDAQ Adv/Vol/Dec 1562/847 mln/825 NYSE Adv/Vol/Dec 1991/332 mln/905

12:00 pm : With today's gain, the S&P 500 is essentially back to where it started yesterday. However, it is definitely not where it started the month. To be sure, there has been a decoupling from the "sell in May and go away" couplet.

Month-to-date the S&P 500 is up 3.8%. That strong gain has been forged on the back of cyclical sectors, too, as market participants have seemingly tabled their concerns about the growth outlook and have increased their hope about a growth acceleration in the back half of the year.

The latter idea remains debatable, but with the financial (+6.1%), industrials (+5.8%), consumer discretionary (+4.9%), and information technology (+4.4%) sectors registering some heady gains in May, it is clear what the prevailing viewpoint currently is. Conversely, the only two sectors showing losses for the month are the countercyclical utilities (-3.7%) and telecom services (-0.3%) sectors. DJ30 +58.80 NASDAQ +16.39 SP500 +7.98 NASDAQ Adv/Vol/Dec 1588/774 mln/767 NYSE Adv/Vol/Dec 1984/312 mln/886

11:25 am : The stock market continues to hold its ground in positive territory as sellers have yet to make any concerted effort to change the course of things.

Relative pockets of weakness are found in the market's defensive-oriented areas, namely the consumer staples (-0.4%), health care (-0.2%), and telecom services (-0.1%) sectors. Their weakness is not really impinging on the broader market, though, which is creating a sense that money is moving between sectors as opposed to moving out of the stock market altogether.

Blue chips are doing well, but it is the small-cap and mid-cap stocks that are doing the best at this juncture. The Russell 2000 is up 0.7% while the S&P 400 Midcap Index is up 0.6%. DJ30 +61.54 NASDAQ +16.38 SP500 +7.89 NASDAQ Adv/Vol/Dec 1583/662 mln/756 NYSE Adv/Vol/Dec 2012/280 mln/837

11:00 am : The major averages are holding near their best levels of the session, underpinned by the familiar buy-the-dip trade and stronger-than-expected economic news in the form of the University of Michigan Consumer Sentiment and Leading Indicators reports.

The latter releases have seemingly erased the memory of yesterday's weak batch of data that included the weekly initial claims, Philadelphia Fed Index, Housing Starts, and Industrial Production reports. The ongoing liquidity support provided by the Federal Reserve, of course, allows for the market to have a short memory. To that end, it is safe to say, given how quickly the market made up yesterday's losses, that many sources were overreaching when attributing Thursday's afternoon selloff to the regurgitated remarks from San Francisco Fed President Williams about possibly tapering the Fed's asset purchases this summer.

The financial sector (+0.8%), led by its banking components, continues to be a trendsetter today on the leadership front.DJ30 +55.87 NASDAQ +17.87 SP500 +7.10 NASDAQ Adv/Vol/Dec 1578/552 mln/709 NYSE Adv/Vol/Dec 2058/248 mln/777

10:35 am : Commodities are mixed today with precious metals lower and gold lower for its seventh consecutive session. Copper is trading higher and near its current session high.

Crude oil rallied this morning and ran as high as $96.45/barrel. It has since been on a downtrend and is now +0.8% at $95.89/barrel. Natural gas has been in positive territory for most of today's session and is now back near session highs. June nat gas is now +0.9% at $3.97/MMBtu.

Gold and silver are both back near session lows in current trade. June gold is now -1.4% at $1367.70/oz amd July silver is -1.2% at $22.39/oz. July copper is +1% at $3.33/lb.DJ30 +62.76 NASDAQ +17.43 SP500 +9.01 NASDAQ Adv/Vol/Dec 1717/495.4 mln/843 NYSE Adv/Vol/Dec 2095/223 mln/721

10:00 am : The preliminary University of Michigan Consumr Sentiment report for May was reported at 83.7, which was much higher than the prior month's reading of 76.4. The Briefing.com consensus expected a reading of 78.5 for May.

Separately, the Leading Indicators report for April was up 0.6%. That followed a 0.2% decline in March and was better than the 0.3% increase expected by the Briefing.com consensus.

The market, which had been fading a bit from its opening highs, got going again after the Michigan number and pushed to new session highs.

Buyers thus far are favoring growth-sensitive sectors. The Dow Jones Transportation Average (+0.7%) has been an early beneficiary of the buying interest. Not surprisingly, Treasuries are on the defensive at this point. DJ30 +56.97 NASDAQ +17.91 SP500 +8.72 NASDAQ Adv/Vol/Dec 1484/298 mln/689 NYSE Adv/Vol/Dec 2044/174 mln/690

09:40 am : It's not up, up and away for the stock market, but it is up and away from yesterday's weakness. The early burst of buying interest has nearly eliminated all of yesterday's 8.31 point decline in the S&P 500.

The buying interest is broad-based ahead of the University of Michigan Consumer Sentiment report for May at 9:55 a.m. ET (Briefing.com consensus 78.5; prior 76.4). Every sector is in the green, although the strongest performers are the influential energy (+0.8%), financial (+0.6%), technology (+0.6%) and industrials (+0.6%) sectors.

The consumer staples sector (+0.1%) is the early laggard, as buyers continue to concentrate their efforts on the cyclical sectors.DJ30 +48.23 NASDAQ +17.87 SP500 +7.41 NASDAQ Adv/Vol/Dec 1529/160 mln/522 NYSE Adv/Vol/Dec 2059/137 mln/572

09:17 am : [BRIEFING.COM] S&P futures vs fair value: +6.00. Nasdaq futures vs fair value: +9.00. A last look at the futures before the open reveals little change in the opening bias. With the S&P futures 0.4% above fair value, the cash market is on track for a higher start. What traders are apt to be keying on today is whether there is another head fake with the buy-the-dip trade. That is, will we see stocks move up early only to roll over late in the session on profit taking in front of a Saturday speech from Fed Chairman Bernanke on long-term economic prospects?

09:02 am : [BRIEFING.COM] S&P futures vs fair value: +6.80. Nasdaq futures vs fair value: +10.00.

U.S. equity futures suggest solid gains at the open as S&P futures are higher by 0.4%

The major Asian bourses ended mostly higher with China's Shanghai Composite (+1.4%) leading the way on hopes Beijing will provide some stimulus for the slowing Chinese economy. Elsewhere, Japan's Nikkei (+0.7%) managed to erase early losses to post its best close since December 2007. Meanwhile, S&P affirmed India's 'BBB-' rating with its outlook remaining negative as a high fiscal deficit and government debt burden remain the biggest drag on the Indian economy. Markets in Hong Kong and South Korea were closed for Buddha's Birthday. Data from the region was limited to the stronger than expected Japanese core machinery orders (14.2% MoM actual v. 3.1% MoM expected).

In Japan, the Nikkei closed +0.7% as trade climbed to five and a half-year high. Real estate names saw solid gains after some recent weakness as Mitsui Fudosan and Sumitomo Realty & Development gained 2.4% and 4.2% respectively.
In Hong Kong, the Hang Seng was closed for Buddha's Birthday.
In China, the Shanghai Composite settled +1.4% to close at its best level in seven weeks. Real estate stocks were strong with Vanke climbing 4% and Poly Real Estate adding 2.5%. Financials were also in favor with Bank of Communications and Bank of Nanjing adding 1.5% and 2.3% respectively.

European markets hold slim gains as Britain's FTSE and France's CAC both hld gains of 0.4% to lead the regional advance. News flow and data out of the region have been rather quiet with the only meaningful headline being Spain posting its first ever monthly surplus (EUR634.9 mln). More notable are moves taking place in European debt markets where Spanish yields are off as much as 11 basis points with the 10-yr tumbling to 4.124%. Also of interest is the easing of Italian yields as a nine basis point decline has the benchmark 10-yr yield down to 3.877%, just above a two and a half-year low.

In Britain, the FTSE is +0.4% amid a volatile session. Financial and miners are among the leaders with Royal Bank of Scotland and Anglo American gaining 4.2% and 2.3% respectively to lead their respective sectors higher.
In France, the CAC is +0.4% as financials lead the way. Societe Generale, BNP Paribas, and Credit Agricole are all higher by at least 0.8%.
In Germany, the DAX is +0.3% led by a strong bid in automakers after European car sales gained for the first time in 19 months. Daimler is higher by 3.2% while Volkswagen and Bayerische Motorenwerke (BMW) are up 2.9% and 1.4% repsectively.

08:35 am : S&P futures vs fair value: +6.20. Nasdaq futures vs fair value: +7.80. No real letup in the bullish bias this morning, as the S&P futures have extended their early gains on this options expiration day. There isn't any specific catalyst driving things. Foreign markets were mostly higher. Meanwhile, Dell (DELL), Autodesk (ADSK), Nordstrom (JWN), and JC Penney (JCP) all reported earnings last night that fell short of consensus expectations. Probably can chalk things up to an expectation that a buy-the-dip trade will unfold following yesterday's 0.5% decline.

08:08 am : [BRIEFING.COM] S&P futures vs fair value: +4.70. Nasdaq futures vs fair value: +8.50.

The S&P futures are up close to five points and are trading 0.3% above fair value. The current disposition is pointing to a modestly higher start for the cash market when trading begins.

Reviewing overnight developments:

Asian markets ended mostly higher... Japan's Nikkei +0.7%, China's Shanghai Composite +1.4%, and Hong Kong's Hang Seng was closed for Buddha's birthday.
Regional economic data was limited:
Japan's core machinery orders rose 14.2% month-over-month (3.0% expected, 7.5% prior)
In New Zealand, input PPI increased 0.8% quarter-over-quarter (0.0% forecast, -0.1% prior) while output PPI also increased 0.8%.
In news:
China's Shanghai Compiste hit a 7-week high following news that regulators relaxed restrictions on refinancing for firms that have real estate investments
European indices are generally higher, sporting modest gains ... FTSE +0.3%, CAC +0.4%, DAX +0.2%
There was no economic news of note today.
Looking at headlines:
Beppe Grillo, leader of the Five-Star Movement in Italy, said he will win the next election and that he thinks the government of Prime Minister Enrico Letta will fall within four months
Spain reported a trade surplus of EUR 634.9 mln in March that was its first monthly trade surplus ever

In U.S. corporate news:

Dell (Dell) is little changed in premarket action after reporting a Q1 profit of $0.21 per share that was $0.14 worse than the Capital IQ consensus estimate
J.C. Penney (JCP) is down 3.8% in premarket action after posting a loss of $1.31 per share that was $0.35 worse than the Capital IQ consensus estimate

The preliminary May Michigan Consumer Sentiment Survey and April leading indicators will be released at 9:55 ET and 10:00 ET.

06:58 am : [BRIEFING.COM] S&P futures vs fair value: +5.00. Nasdaq futures vs fair value: +6.00.

06:58 am : Nikkei...15138.12...+100.90...+0.70%. Hang Seng...Holiday.........

06:58 am : FTSE...6712.77...+25.00...+0.40%. DAX...8382.47...+12.60...+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 Image@ http://stocktwits.com/wrbtrader

http://www.thestrategylab.com
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