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 Post subject: June 20th Thursday Trade Results - Profit $3550
PostPosted: Fri Jun 21, 2013 12:12 am 
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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)
Phone: +1 708 572-4885
Free Chat Room: http://www.thestrategylab.com/tsl/forum/viewforum.php?f=164
Business Hours: 8am - 5pm est (Mon - Fri)
questions@thestrategylab.com (24/7)
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click on the above image to view today's performance verification

Price Action Trade Performance for Today: Emini TF ($TF_F) futures @ $1,350.00 dollars or +13.50 points, Emini ES ($ES_F) futures @ $2,750.00 dollars or +55.00 points, Light Crude Oil CL ($CL_F) futures @ $0.00 dollars or +0.00 points, Gold GC ($GC_F) futures @ ($550.00) dollars or -5.50 points and EuroFX 6E ($6E_F) futures @ $0.00 dollars or +0.0000 ticks. Total Profit @ $3,550 dollars.

Russell 2000 Emini TF Futures: 1 tick or 0.10 = $10.00 dollars and there's more contract information @ The ICE
S&P 500 Emini ES Futures: 1 tick or 0.25 = $12.50 dollars and there's more contract information @ CMEGroup
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

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=118&t=1535

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=212&t=1853

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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.

Worst Day Of The Year For Dow , S&P 500

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

NEW YORK (CNNMoney)
Wall Street suffered its worst day of the year Thursday, one day after Federal Reserve chairman Ben Bernanke raised fears the central bank may be preparing to wind down its stimulus policies this year.

The Dow Jones industrial average tumbled 353 points, or 2.3%. That marked the biggest one-day point drop since November 2011. Including Wednesday's losses, the Dow has erased more than 550 points in two days.

Despite the punishing losses, the Dow has seen much darker days. It fell 778 points on Sept. 29, 2008, after Congress rejected a $700 billion plan to rescue the banking industry. (Track the Dow 30)

The S&P 500 sank 2.5% Thursday, logging its biggest percentage drop since November 2011. The Nasdaq sank more than 2.3%.

Bernanke lays his cards on the table. The rout came after Bernanke offered some of his most explicit guidance about when the central bank might start pulling back its stimulus.

Depending on how the economy performs, Bernanke said the Fed could begin tapering its bond buying later this year and end the program some time in 2014. At the same time, he said the Fed could step up its stimulus efforts if the economy take a turn for the worse.

While this is what most economists had predicted, investors seemed surprised to hear Bernanke spell it out in such detail.

"He offered more clarity and transparency than many had expected," said Art Hogan, managing director at Lazard Capital Markets.

It's going to be a bumpy ride. Dan Greenhaus, chief market strategist at BTIG in New York, said the initial reaction to Bernanke's comments was overdone. But he said a period of choppy trading is to be expected following the strong gains stocks booked earlier this year. All three indexes are still up between 11% and 12% for the year.

The Fed has been a major driver of the bull market, and traders say the shift in policy will continue to fuel volatility in the months ahead.

The VIX (VIX), a benchmark of investor anxiety, jumped 28% Thursday. And CNNMoney's Fear & Greed Index slid back into extreme fear.

"I think volatility is the new norm as investors in all asset classes try to re-price what the world looks like in the absence of quantitative easing," said Hogan. "That's not an easy thing to do."

Meanwhile, bond yields continued to move higher, with the 10-year Treasury yield rising as high as 2.46%. (Related: Bond yields spike to 2-year high)

The dollar rose versus its main trading partners as investors sought safety in cash. The strong dollar weighed on commodities that are priced in the U.S. currency. Gold prices plunged 6% to the lowest level since September 2010. Oil prices sank 3.3% to below $95 a barrel.

* Dollar headed for 'multi-year rally'

Major European markets fell by more than 3%. Asian markets also saw hefty losses after HSBC's flash purchasing managers' index for June showed Chinese manufacturing activity at a 9-month low. Hong Kong's Hang Seng and the Shanghei Composite both shed nearly 3%.

U.S. investors were also rattled by the lackluster reports out of China, noted Hogan. "The reaction to the Fed is not happening in a vacuum," he said.

* Bernanke's power over your money

In economic news, the government said the number of jobless claims rose more than expected in the latest week. A measure of manufacturing activity in the Philadelphia area surged to a two year high in June. Meanwhile, the National Association of Realtors said existing home sales in May rose 4.2% to an annual rate of 5.18 million, slightly better than expected.

Shares of major homebuilders were among the worst performers as investors fear rising mortgage rates will hurt the housing market. Toll Brothers (TOL), D.R. Horto (DHI)n and Lennar (LEN) were all down sharply.

The sharp drop in gold prices weighed on shares of mining companies, including Newmont Mining (NEM, Fortune 500) and Freeport-McMoRan (FCX, Fortune 500).

On the corporate front, drugstore chain Rite Aid (RAD, Fortune 500) swung to a profit but revenue declined in the latest quarter.

Tech giant Oracle (ORCL, Fortune 500) reported earnings in line with forecasts but sales fell short of expectations. The company also doubled its dividend and announced a $12 billion stock buyback. Oracle also said it plans to move its listing to the New York Stock Exchange as of July 15.

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Market Update

4:20 pm : Equities ended with sharp losses across the board as yesterday's selling persisted into today's trade, and dragged global shares into the fray. The S&P 500 fell 2.5% after losing its 50-day moving average at the open.

Markets across the globe sold off after yesterday's comments from Federal Reserve Chairman Ben Bernanke were interpreted as a warning of an impending modification to the Fed's asset purchase program. Although the Fed Chairman qualified his statement by saying the economy must continue showing improvement before modifications can be made, investors looked past this condition and chose to focus on the potential timeframe instead.

Concerns regarding possible tapering, as well as worries about the Fed losing control over the situation, have caused a significant spike in interest rates. Since yesterday, the yield on the 10-yr note has jumped 25 basis points to 2.414%, with ten of those coming during today's session.

Elevated Treasury yields have contributed to selling in high-yielding, defensively oriented sectors. To that end, the consumer staples sector led to the downside with a loss of 3.0%. Health care (-2.6%) and utilities (-2.9%) also saw significant selling while the fourth countercyclical group, telecom services, outperformed with a loss of 2.3% after leading yesterday's decline with a 2.7% slide.

Meanwhile, commodity-related names saw the heaviest selling among cyclical sectors with energy and materials dropping 2.7% and 2.6%, respectively. On a related note, crude oil slumped 3.6% to $94.98 per barrel while copper tumbled 3.0% to $3.05 per pound. Precious metals had a flashback to mid-April as gold sank 6.8% to $1280.10 per ounce while silver dropped 9.4% to $19.59 per ounce. Softness in those metals pressured the Market Vectors Gold Miners ETF (GDX 24.55, -1.96), sending it lower by 7.4%.

The sharp losses in metals were rivaled by homebuilders as PulteGroup (PHM 18.87, -1.89) and Ryland Group (RYL 38.65, -4.35) both plunged more than 9.0% while the broader iShares Dow Jones US Home Construction (ITB 22.34, -1.36) sank 5.7%.

Today's weakness caused investors to adjust their near-term volatility expectations. As a result, the CBOE Volatility Index (VIX 20.47, +3.83) ended at its highest level of the year.

Interestingly, this month's weakest group, financials, finished ahead of the remaining sectors with a loss of 2.2%.

The initial claims level increased from an upwardly revised 336,000 (from 334,000) for the week ending June 8 to 354,000 for the week ending June 15. The Briefing.com consensus expected the initial claims level to increase to 340,000.

The Conference Board's Index of Leading Indicators increased 0.1% in May, down from an upwardly revised 0.8% (from 0.6%) gain in April. The Briefing.com consensus expected the index to increase 0.2%.

Manufacturing activity improved in the Philadelphia region as the Philadelphia Fed's Business Outlook Survey increased from -5.2 in May to 12.5 in June. That was the highest reported Philly Fed Index since April 2011. The Briefing.com consensus expected the Philly Fed Index to increase to -0.2.

Existing home sales jumped above the 5.00 million mark for the first time since the homebuyer tax credit temporarily boosted sales in late 2009. Home sales rose from 4.97 million in April to 5.18 million in May. The Briefing.com consensus expected existing home sales to increase to 5.00 million. Future sales are still supply constrained. Only 2.2 million homes are currently on the market, representing a 5.1-month supply, which is down 10.1% from a year ago. There is usually a 6-month supply during normal selling conditions. Anything below that level signals upward pricing pressures.DJ30 -353.87 NASDAQ -78.57 SP500 -40.74 NASDAQ Adv/Vol/Dec 364/1.98 bln/2160 NYSE Adv/Vol/Dec 148/1.07 bln/2994

3:30 pm :

The commodities space was under significant pressure today as investors reacted to statements from Federal Reserve Chairman Ben Bernanke that signaled a potential reduction to the Fed's asset purchase program in 2014 if the economy continues to improve. A stronger dollar index also contributed to weakness.
Aug crude oil slid further into negative territory after pulling-back from its session high of $96.55 per barrel that was set at pit trade open. The energy component eventually settled 3.4% lower at $95.09 per barrel.
July natural gas also spent its entire floor session in the red as inventory data for the week ending June 14 showed a build of 91 bcf when a slightly smaller build of 89 bcf was anticipated. Prices initially popped to a session high of 3.95 per MMBtu and quickly slipped ot a session low of $3.84 on the data. However, natural gas quickly corrected to price levels seen during early morning action and ultimately settled at $3.88 per MMBtu, or 2.0% lower.
Precious metals tumbled to their lowest levels since September 2010.
Aug gold extended overnight losses as it slipped below the $1300 per ounce level. It settled at its session low of $1285.90 per ounce, booking a 6.4% loss.
July silver fell for a fourth consecutive session with prices plummeting below the $20 per ounce level. It settled 8.3% lower at $19.82 per ounce, slightly above its session low of $19.70 per ounce.

DJ30 -340.43 NASDAQ -80.32 SP500 -39.89 NASDAQ Adv/Vol/Dec 318/1605.4 mln/2180 NYSE Adv/Vol/Dec 129/693 mln/2990

3:05 pm : The S&P 500 trades lower by 2.4% as today's session enters its final hour.

In the foreign exchange market, the Dollar Index has slipped off the 82.00 level, but still holds solid gains near 81.90. Early buying interest wasn't enough to push the Index to its 100-day average, but support has developed around the 81.80 level.

Much of today's dollar strength came at the expense of the euro and the Canadian dollar.

Euro/dollar is lower by 100 pips near 1.3200 after slipping close to 200 pips off yesterday's 14-month high around 1.3400. The pair was able to withstand an earlier test of 1.3200, but has returned to that level amid recent selling.

Elsewhere, U.S. dollar/Canadian dollar is higher by 120 pips at 1.0395. A close above 1.0410 would put the pair at its best level since November 2011. The Canadian dollar is likely to display volatility tomorrow as investors receive data with regards to CPI, core CPI, retail sales, and core retail sales.DJ30 -354.61 NASDAQ -80.00 SP500 -40.49 NASDAQ Adv/Vol/Dec 353/1.42 bln/2143 NYSE Adv/Vol/Dec 132/622.5 mln/2981

2:30 pm : Recent action saw the S&P 500 slip to a fresh session low at 1595 as buying interest remains scarce. Market breadth has improved slightly, but continues pointing to significant selling pressure as NYSE decliners outpace advancers by a 16:1 ratio.

The ongoing selloff has battered emerging markets. To that end, a recent story from the Financial Times indicates the International Monetary Fund will suspend its aid payments to Greece if the country does not find a way to plug a EUR1.2 billion budget hole, which recently came to light.

With the S&P on fresh lows, the weakest sector of the day, consumer staples, has widened its loss to 2.7%.DJ30 -283.70 NASDAQ -68.28 SP500 -33.44 NASDAQ Adv/Vol/Dec 419/1.26 bln/2066 NYSE Adv/Vol/Dec 160/547.5 mln/2931

2:00 pm : Afternoon action has not produced much excitement so far as the major averages remain near their lows. The S&P 500 has spent the past 3.5 hours within a five point range.

Notably, the consumer staples sector has widened its loss to 2.1% while the remaining sectors continue to hold their levels. Similarly, gold futures have been the subject of more selling and the yellow metal now trades with a loss of 6.6% at $1283.40 per ounce.DJ30 -227.71 NASDAQ -54.11 SP500 -25.82 NASDAQ Adv/Vol/Dec 442/1.15 bln/2022 NYSE Adv/Vol/Dec 206/497.2 mln/2876

1:25 pm : The major averages continue to languish in the face of higher interest rates that have yet to attract any "bargain hunters." Notably, two of the market's best-known "bond kings" -- Bill Gross of Pimco and Jeffrey Gundlach of DoubleLine Capital -- both made a bullish case for long-term Treasuries yesterday.

Mr. Gross said he sees the 10-year yield ending the year at 2.0% or lower while Mr. Gundlach said he expected a rally in the 10-year to happen fairly quickly. They could of course eventually be proven right, but at the moment, bonds continue to get clobbered and that is acting as a major restraint on the stock market.

The 10-year yield rose 14 basis points yesterday to 2.33% and it is up another 11 basis points today at 2.44%. The 10-year is back re-testing its high yield of the morning and that has pulled the S&P 500 back to its lows for the day at 1600. DJ30 -242.52 NASDAQ -59.46 SP500 -28.65 NASDAQ Adv/Vol/Dec 683/1.04 bln/1809 NYSE Adv/Vol/Dec 466/451 mln/2625

1:00 pm : Equities began the session with sharp losses amid significant weakness in markets across the globe.

Global shares sold off after yesterday's comments from Federal Reserve Chairman Ben Bernanke were interpreted as a warning of an impending modification to the Fed's asset purchase program. Although the Fed Chairman's statement was qualified with a caveat stipulating that the economy must continue showing improvement before modifications can be made, investors looked past this condition and chose to focus on the potential timeframe instead.

Contributing to the selling was the ongoing Chinese liquidity crunch as the People's Bank of China elected not to intervene in the overnight lending market. In addition, the HSBC Manufacturing PMI slipped further into contraction with a 48.3 print (49.4 expected, 49.2 prior).

The S&P 500 fell below its 50-day moving average at the open as all ten sectors registered significant losses.

At midday, all ten groups are down more than 1.0% with consumer discretionary and staple stocks leading to the downside. In addition, declining issues have outpaced advancers by a ratio of 15:1.

The discretionary sector trades with a loss of 1.8% as homebuilders weigh. Most major builders hold losses of more than 5.0% while the iShares Dow Jones US Home Construction ETF (ITB 22.47, -1.23) is lower by 5.2%. Retailers have also pressured the discretionary space as the Market Vectors Retail ETF (XRT 76.29, -1.58) sports a loss of 2.0%.

Commodity-related sectors can also be found among the laggards as energy and materials hold losses near 1.5% while the underlying commodities display even wider declines. Crude oil is lower by 2.8% at $95.70 per barrel while copper trades down 2.4% to $3.06 per pound. Gold has also shown notable softness with the yellow metal tumbling 6.1% to $1290.10 per ounce.

Interestingly, this month's weakest group, financials, is the top performing sector today as it holds a loss of 1.1%.

Also of note, the rate-sensitive telecom sector began the day among the laggards after registering sharp losses amid yesterday's selling. The high-yielding sector has since climbed off its lows, but remains down 1.2%.

On a related note, Treasuries hover near their overnight levels with the 10-yr yield higher by ten basis points at 2.413%.

The initial claims level increased from an upwardly revised 336,000 (from 334,000) for the week ending June 8 to 354,000 for the week ending June 15. The Briefing.com consensus expected the initial claims level to increase to 340,000.

The Conference Board's Index of Leading Indicators increased 0.1% in May, down from an upwardly revised 0.8% (from 0.6%) gain in April. The Briefing.com consensus expected the index to increase 0.2%.

Manufacturing activity improved in the Philadelphia region as the Philadelphia Fed's Business Outlook Survey increased from -5.2 in May to 12.5 in June. That was the highest reported Philly Fed Index since April 2011. The Briefing.com consensus expected the Philly Fed Index to increase to -0.2.

Existing home sales jumped above the 5.00 million mark for the first time since the homebuyer tax credit temporarily boosted sales in late 2009. Home sales rose from 4.97 million in April to 5.18 million in May. The Briefing.com consensus expected existing home sales to increase to 5.00 million.DJ30 -220.51 NASDAQ -56.22 SP500 -25.71 NASDAQ Adv/Vol/Dec 423/972.5 mln/2032 NYSE Adv/Vol/Dec 191/423.3 mln/2877

12:30 pm : Little change has taken place during the past 30 minutes. The S&P 500 has tried to stage a rebound off session lows, but those attempts have been limited to slim bounces.

The rate-sensitive telecom sector began the day among the laggards after registering sharp losses amid yesterday's selling. The high-yielding sector has since climbed off its lows, but remains down 1.0%.

On a related note, Treasuries trade near their overnight levels with the 10-yr yield higher by five basis points at 2.410%.DJ30 -191.31 NASDAQ -46.80 SP500 -22.18 NASDAQ Adv/Vol/Dec 452/890.2 mln/1984 NYSE Adv/Vol/Dec 204/390.7 mln/2860

12:00 pm : After a steady slide out of the gate, the S&P 500 has spent the past hour near its current levels. All ten sectors continue to trade with losses of more than 1.4% while consumer stocks lead to the downside.

The discretionary sector is lower by 1.7% as homebuilders display significant weakness. Most major builders hold losses of more than 5.0% while the iShares Dow Jones US Home Construction ETF (ITB 22.57, -1.13) sports a loss of 4.8%. Retailers have also pressured the discretionary sector as the Market Vectors Retail ETF (XRT 76.34, -1.53) trades lower by 2.0%.

Meanwhile, the consumer staples sector has matched the performance of its cyclical counterpart as the group trades lower by 1.7%.DJ30 -190.51 NASDAQ -49.56 SP500 -22.87 NASDAQ Adv/Vol/Dec 414/805.9 mln/2002 NYSE Adv/Vol/Dec 175/355.4 mln/2879

11:35 am : Equities continue to languish near their lows as the European session ends with losses of more than 3.0% in France, Germany, and Great Britain.

While U.S. stocks remain near their lows, the Treasury market has climbed off its worst level of the day. However, the 10-yr yield remains elevated by four basis points at 2.397%.

Notably, small cap stocks have registered wider losses than the broader market. The Russell 2000 trades lower by 2.1% versus a 1.7% loss in the S&P.DJ30 -220.11 NASDAQ -53.13 SP500 -26.39 NASDAQ Adv/Vol/Dec 399/715.8 mln/1988 NYSE Adv/Vol/Dec 139/316.3 mln/2904

11:00 am : The S&P 500 has continued its slide with the energy sector leading to the downside. The growth-sensitive group trades lower by 1.9% with crude oil showing significant weakness as well. The energy component is lower by 2.8% at $95.75 per barrel.

Another commodity-related sector, materials, can also be found among the laggards as steelmakers and gold miners weigh. The Market Vectors Steel ETF (SLX 38.44, -1.12) is lower by 2.8% while the Market Vectors Gold Miners ETF (GDX 25.19, -1.32) trades down 5.0%. On a related note, gold futures are down 5.6% to $1297.00 per ounce while copper holds a loss of 2.6% at $3.06 per pound.

Defensively-oriented sectors haven't fared much better as rising Treasury yields pressure the income-oriented consumer staples, utilities, telecom, and, to an extent, health care.

As a result of the continued selling, the CBOE Volatility Index (VIX 19.07, +2.43) has spiked to its highest level of the year at 19.33% before retreating off its highs.DJ30 -212.71 NASDAQ -45.73 SP500 -23.99 NASDAQ Adv/Vol/Dec 395/583.1 mln/1954 NYSE Adv/Vol/Dec 150/261.1 mln/2868

10:35 am : Global weakness is hitting commodities this morning, especially gold and silver (July contracts), which are down 5.4% at $1300.40 and 7.8% at $19.95, respectively. The dollar index is showing strong gains, now up 0.6% at 81.95, which continues to pressure commodities.

July natural gas sold off following the weekly EIA inventory data and is now -2.1% at $3.88/MMBtu. U.S. crude oil fell as low as $95.25/barrel and remains down near its recently-hit session low. July crude is currently -2.9% at $95.38/barrel.

July copper is trading down near its LoD in a rather consolidated manner and is now -2.9% at $3.05/lb. DJ30 -229.24 NASDAQ -46.30 SP500 -25.96 NASDAQ Adv/Vol/Dec 357/413.5 mln/1953 NYSE Adv/Vol/Dec 123/203 mln/2858

10:05 am : The S&P 500 trades lower by 1.0%.

May existing home sales hit an annualized rate of 5.18 million units, which was stronger than the rate of 5.00 million units that had been generally expected by the Briefing.com consensus. The pace for May was up from the prior month's unrevised rate of 4.97 million units.

Separately, the Leading Indicators report for May was up 0.1%. That followed a 0.6% increase in April and was worse than the 0.2% increase expected by the Briefing.com consensus.

June Philadelphia Fed Survey jumped to 12.5. This comes after the May reading of -5.2. Economists polled by Briefing.com had expected that the Survey would improve to -0.2.DJ30 -152.61 NASDAQ -31.24 SP500 -15.52 NASDAQ Adv/Vol/Dec 337/280.6 mln/1923 NYSE Adv/Vol/Dec 135/142.6 mln/2794

09:45 am : The major averages hover near their early lows with the S&P 500 down 1.1%. The benchmark index fell through its 50-day moving average at the start of the session as all ten sectors opened in the red.

Cyclical groups are among the early laggards as energy and materials trade with losses near 1.8%. The technology sector has been able to outperform its cyclical counterparts with a loss of 0.7%.

A pair of yesterday's biggest decliners, telecom and utilities, are the two top performers so far today as they hold respective losses of 0.6% and 0.8%.

Also of note, declining issues have outpaced advancers by a hefty 32:1 ratio through the first 15 minutes of action.DJ30 -141.91 NASDAQ -36.15 SP500 -15.53 NASDAQ Adv/Vol/Dec 270/181.8 mln/1948 NYSE Adv/Vol/Dec 99/102.4 mln/2799

09:18 am : [BRIEFING.COM] S&P futures vs fair value: -15.60. Nasdaq futures vs fair value: -28.00. With 15 minutes to go before the start of today's session, equity futures remain near their lows. The S&P 500 futures are lower by 1.0% amid global weakness.

Yesterday's comments from Federal Reserve Chairman Ben Bernanke were interpreted as a hawkish warning of an impending modification to the Fed's asset purchase program. The Fed Chairman's statement was coupled with a caveat, saying the economy must continue showing improvement before modifications can be made, but it appears global markets have looked past this stipulation and chose to focus on the potential timeframe instead.

Contributing to the weakness was the ongoing Chinese liquidity crunch as the People's Bank of China elected not to intervene in the market. In addition, the HSBC Manufacturing PMI slipped further into contraction territory (48.3 actual, 49.4 expected, 49.2 prior).

The 10-yr note has climbed off its early lows, but its yield remains higher by four basis points at 2.400%.

08:58 am : [BRIEFING.COM] S&P futures vs fair value: -14.00. Nasdaq futures vs fair value: -23.50.

U.S. equity futures continue to hover near their lows with the S&P 500 futures down 0.9%.

Major Asian indices ended lower across the board with Hong Kong's Hang Seng (-2.9%) and China's Shanghai Composite (-2.8%) leading to the downside after the People's Bank of China remained on the sidelines, choosing not to intervene in a liquidity-starved banking system. As a result, the overnight repurchase rate spiked as high as 25%. In addition, a disappointing HSBC Manufacturing PMI reading (48.3 actual, 49.4 expected, 49.2 prior) contributed to the selloff. In other regional data, New Zealand's GDP rose 0.3% quarter-over-quarter (0.6% expected, 1.5% prior) while Japan continued to be a net seller of foreign bonds with a weekly outflow of JPY402.50 billion (-JPY394.40 billion prior).

In Japan, the Nikkei closed lower by 1.7% despite the strengthening of dollar/yen. Isuzu Motors, Nikon, and Suzuki Motor ended with losses between 5.4% and 6.2%. On the upside, GS Yuasa and Sumitomo Electric gained 5.9% and 5.6%, respectively.
Hong Kong's Hang Seng slid 2.9% as 49 of 50 components registered losses. China Construction Bank, China Resources Land, and CNOOC led to the downside with declines between 4.4% and 6.9%. The lone advancer, China Merchants Holdings International, ticked up 0.4%.
In China, the Shanghai Composite lost 2.8% as growth-oriented names lagged. CCS Supply Chain Management and North Electro-Optic both fell near 8.6%. On the upside, Grinm Semiconductor Materials rose 10.0%.

Major European indices hover near their lows following the release of a full slate of economic news. The Eurozone Manufacturing PMI ticked up to 48.7 from 48.3 (48.6 expected) while Services PMI rose to 48.6 from 47.2 (47.5 forecast). Germany's Manufacturing PMI fell to 48.7 from 49.4 (49.8 expected) while Services PMI rose to 51.3 from 49.7 (50.0 forecast). In addition, PPI declined 0.3% month-over-month (-0.1% expected, -0.2% prior). French Manufacturing PMI rose to 48.3 from 46.4 (47.0 expected) while Services PMI ticked up to 46.5 from 44.3 (44.8 forecast). Italian industrial orders rose 0.6% month-over-month (1.1% forecast, 1.8% previous). Great Britain's retail sales rose 2.1% month-over-month (0.8% expected, -1.1% prior) while core retail sales also increased 2.1% month-over-month (0.9% forecast, -1.2% prior). In addition, CBI Industrial Trends Orders ticked up to -18 from -20 (-15 expected).

Also of note, the Bank of England said five of eight banks had an aggregate capital shortfall of GBP27.1 billion at the end of 2012.

Great Britain's FTSE trades lower by 2.2% as 99 of 101 members register losses. Miners are among the weakest index members as Fresnillo, Randgold Resources, and Rio Tinto sport losses between 3.8% and 5.7%. The only two advancers, Carnival and Lloyds Banking, trade with slim respective gains of 0.1% and 0.4%.
In Germany, the DAX is lower by 2.5% with 29 of 30 components in the red. Exporters BMW and Volkswagen lead to the downside with losses near 4.0%. On the upside, Fresenius Medical is higher by 0.3%.
France's CAC trades down 2.6% as Renault leads to the downside with a loss of 5.0%. Financials have also shown weakness as BNP Paribas sheds 3.2% while Societe Generale trades lower by 3.6%.

08:32 am : [BRIEFING.COM] S&P futures vs fair value: -11.70. Nasdaq futures vs fair value: -20.80. The S&P 500 futures continue to trade lower by 0.8%.

The latest weekly initial jobless claims count totaled 354,000, which was higher than the 340,000 that had been expected by the Briefing.com consensus. Today's tally was above the revised prior week count of 336,000. As for continuing claims, they fell to 2.951 million from 2.991 million.

07:59 am : [BRIEFING.COM] S&P futures vs fair value: -13.30. Nasdaq futures vs fair value: -24.50.

U.S. equity futures trade sharply lower amid cautious overseas action after yesterday's comments from Federal Reserve Chairman Ben Bernanke were interpreted as a hawkish warning of an impending modification to the Fed's asset purchase program. The Fed Chairman's statement was coupled with a caveat, saying the economy must continue showing improvement before modifications can be made, but it appears global markets have looked past this stipulation and focused on the potential timeframe instead. The S&P 500 futures trade lower by 0.9%.

Looking at overnight developments:

Asian markets ended broadly lower. Japan's Nikkei fell 1.7%, China's Shanghai Composite dropped 2.8%, and Hong Kong's Hang Seng lost 2.9%.
In regional economic data:
China's HSBC Manufacturing PMI fell to 48.3 from 49.2 (49.4 expected).
Japan continued to be a net seller of foreign bonds with a weekly outflow of JPY402.50 billion (-JPY394.40 billion prior).
New Zealand's GDP rose 0.3% quarter-over-quarter (0.6% expected, 1.5% prior).
Looking at news:
The ongoing liquidity crunch in China caused the overnight interbank rate to spike all the way to 25% as the People's Bank of China chose not to inject liquidity into the system.
Japan's Nikkei settled in the red despite the strengthening of dollar/yen. The Nikkei declined 1.7% while dollar/yen climbed over 1.0% to 97.00 by the end of the Asian session. Currently, the pair trades just above 98.00.

Major European indices hover near their lows as midday nears. Great Britain's FTSE is lower by 2.3% while Germany's DAX and France's CAC are both down near 2.5%.
Regional economic data was plentiful:
The Eurozone Manufacturing PMI ticked up to 48.7 from 48.3 (48.6 expected) while Services PMI rose to 48.6 from 47.2 (47.5 forecast).
Germany's Manufacturing PMI fell to 48.7 from 49.4 (49.8 expected) while Services PMI rose to 51.3 from 49.7 (50.0 forecast). In addition, PPI declined 0.3% month-over-month (-0.1% expected, -0.2% prior).
French Manufacturing PMI rose to 48.3 from 46.4 (47.0 expected) while Services PMI ticked up to 46.5 from 44.3 (44.8 forecast).
Italian industrial orders rose 0.6% month-over-month (1.1% forecast, 1.8% previous).
Great Britain's retail sales rose 2.1% month-over-month (0.8% expected, -1.1% prior) while core retail sales also increased 2.1% month-over-month (0.9% forecast, -1.2% prior). In addition, CBI Industrial Trends Orders ticked up to -18 from -20 (-15 expected).
In news:
The Bank of England said five of eight banks had an aggregate capital shortfall of GBP27.1 billion at the end of 2012.

In U.S. corporate news:

Ebix (EBIX 12.00, -7.72) has plunged 39.2% after the company agreed to terminate its merger agreement with an affiliate of Goldman Sachs (GS 161.56, -2.59).
Red Hat (RHT 47.78, +1.56) trades higher by 3.4% after beating on earnings and revenue.

Weekly initial claims will be reported at 8:30 ET while May existing home sales, leading indicators, and June Philadelphia Fed Survey will cross the wires at 10:00 ET.

06:41 am : [BRIEFING.COM] S&P futures vs fair value: -13.00. Nasdaq futures vs fair value: -26.00.

06:41 am : Nikkei...230.64...+13014.60...-1.70%. Hang Seng...20382.87...-604.00...-2.90%.

06:41 am : FTSE...6200.57...-148.30...-2.30%. DAX...7991.50...-205.60...-2.50%.

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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