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 Post subject: June 24th Monday Trade Results - Profit $6262.50
PostPosted: Mon Jun 24, 2013 9:27 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 @ $1960.00 dollars or +19.60 points, Emini ES ($ES_F) futures @ $2,812.50 dollars or +56.25 points, Light Crude Oil CL ($CL_F) futures @ $0.00 dollars or +0.00 points, Gold GC ($GC_F) futures @ $1520.00 dollars or +15.20 points and EuroFX 6E ($6E_F) futures @ $0.00 dollars or +0.0000 ticks. Total Profit @ $6262.50 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=1537

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.

Stocks Fall 1% ... But It Could Have Been Worse

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

NEW YORK (CNNMoney)
U.S. stocks shaved most of their early losses but still finished in the red Monday afternoon as worries about the Fed easing up on stimulus and credit problems in China kept investors on edge.

The Dow Jones industrial average dropped 140 points, or 0.9%, while the S&P 500 and Nasdaq lost more than 1% each. Earlier in the day, all three indexes were down between 1.5% and 2%.

Bond yields also eased back from earlier levels. The 10-year yield finished the day at 2.56% after rising to a 22-month high of 2.65%.

The stock and bond volatility came as Fed officials tried to quell concerns about the eventual end of the central bank's bond-buying program.

In an interview with the Financial Times, Dallas Federal Reserve president Richard Fisher reiterated that the central bank would not begin pulling back until "conditions were right," as they don't want to go from "Wild Turkey to 'Cold Turkey' overnight."

* Sell-off is a 'taper tantrum'

He said that the committee "fully understood" that there would be a significant reaction but warned big players in the financial markets against acting like "feral hogs" and testing the Fed.

The Fed's stimulus program has been a major driver of the bull market, and worries over its longevity will likely keep generating volatility in the months ahead.

The CBOE Market Volatility Index (VIX), a measure of fear, jumped above 21 to its highest level of the year before easing back slightly. And the CNNMoney Fear & Greed Index dropped further into Extreme Fear, clocking in at its lowest level since June 2012.

Credit crunch in China? The People's Bank of China told the country's largest banks Monday to rein in risky loans and improve their balance sheets, a warning that sent a jolt through already unsettled equity markets.

The Shanghai Composite index was hardest hit by the announcement, registering a decline of 5.3%. The Hang Seng in Hong Kong lost nearly 3%. Japan's Nikkei index declined by 1.3%.

* Video - China raises fears of another 2008 crisis

The sell-off comes after short-term borrowing costs skyrocketed last week in China, leading to fears about a credit crunch. The rate at which Chinese banks lend to each other overnight hit, which serves as a measure of liquidity in the financial markets, hit a record high above 13% last week before moderating. Another key measure of cash in the banking system -- the 7-day "repo rate" -- peaked at 25%.

Investors are worried that less liquidity in the world's second-largest economy could further slow the shaky global recovery.

* Brazilian stocks among world's worst performers

Stocks by the numbers: With the recent heavy selling, all three indexes are down about 6% from their recent highs.

But they're still holding onto healthy gains year-to-date. The Dow, S&P 500 and Nasdaq are up between 10% and 12% since the start of January.

Stocks on the move: Shares of Vanguard Health Systems (VHS, Fortune 500) surged almost 70% after inking a $1.8 billion acquisition deal with Tenet Healthcare Corp. (THC, Fortune 500)

Apple (AAPL, Fortune 500) shares briefly fell below $400 a piece for the first time since mid-April after Jefferies' Peter Misek lowered his 12-month price target to $405 from $420.

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Market Update

4:20 pm : The stock market began the week on a fitful note as rising interest rates at home and falling equity markets abroad conspired to keep the major averages in negative territory throughout today's trading. The focal points on those fronts were the 10-yr note yield, which spiked to 2.66% in early action, and China's Shanghai Composite, which plummeted 5.3% overnight.

The drop in China was attributed to a growing sense of angst that a liquidity crisis and credit crunch are brewing there. That notion is predicated on the understanding that the People's Bank of China (PBOC) is purposely backing away from injecting liquidity in an effort to curtail speculative excesses through the lending channel. The PBOC fed this notion by acknowledging today that there is sufficient liquidity in the system and by admonishing Chinese banks to do a better job of cash and risk management.

Whether the PBOC sticks to its guns remains to be seen, but the hardline stance it took today got the week started off on the wrong foot for global markets.

It didn't help matters either that follow-through selling efforts persisted in the Treasury market. The 10-yr note fell more than a point at its worst levels of the morning, sending its yield up to 2.66% or nearly 50 basis points above its cash settlement last Tuesday. Contributing to that selling effort was a warning from the Bank for International Settlements that central banks should end their bond purchases and focus on inflation while letting governments spearhead the economic recovery effort.

Traders wasted little time getting the US stock market on track with its foreign counterparts. Things never got as bad as they did in China, but the Dow, Nasdaq, and S&P 500 were down as many as 248, 62, and 32 points, respectively, at their lows in the morning session. That equated to a 2.0% decline for the S&P 500.

The stock market, however, did show some fight when the Treasury market got off the mat. Remarkably, the 10-year note recouped everything it lost early and traded with modest gains in the afternoon before getting some pushback late in the day. That rebound effort saw the 10-yr yield drop back to 2.53% before it faded into the cash close and settled at 2.55%.

The recovery effort in the stock market seemed to mirror that move. The S&P 500 cuts its losses to single digits and the Dow reclaimed more than 200 points of its early losses by mid-afternoon; however, the market rolled over in the final hour as bonds faded and sellers renewed their profit-taking efforts.

The global growth concerns linked to China and rising interest rates weighed heavily on the cyclical sectors throughout the day. Financials (-1.8%) led the losses and were joined by materials (-1.7%), industrials (-1.7%), energy (-1.5%), and technology (-1.4%) as the worst-perfroming areas. Every sector ended lower today, although the countercyclical sectors were not impacted as much by the selling interest. The utilities sector, for instance, ended with only a negligible loss.

Industrial metals also fared poorly. Copper prices fell 1.8% to $3.04/lb. Crude prices were a notable standout in the commodity complex, rising 1.3% to $94.93/bbl.

The roller-coaster action today left the CBOE Volatility Index on its own roller-coaster ride. It was up 10% at one point, gave that entire gain back, and then finished up 5.6% at 19.96 with the late selloff in stocks.

There wasn't any economic data to trade off today, but that will change tomorrow with a full lineup that includes the April Case-Shiller Home Price Index, May Durable Goods, May New Home Sales, and June Consumer Confidence reports.

Volume was heavy today with 968 mln shares traded at the NYSE. The A/D line reflected the market's negative disposition. Declining issues at the NYSE outnumbered advancing issues by a 7-to-1 margin while at the Nasdaq they led by a 3-to-1 margin. DJ30 -139.84 NASDAQ -36.49 SP500 -19.34 NASDAQ Adv/Vol/Dec 594/1.95 bln/1951 NYSE Adv/Vol/Dec 393/968 mln/2711

3:30 pm : Commodities mostly remained lower in today's session. Crude oil, however, was the outperformer as the energy component rallied back into positive territory and as high as $95.59/barrel. At the end of today's floor trading session, Aug crude oil ended $1.43 higher (or +1.5%) at $95.15/barrel.

Natural gas futures slid lower in today's afternoon session, pulling off its HoD, ending the session one penny lower at $3.76/MMBtu.

Precious metals remained in negative territory for the day with gold falling as low as $1275.10 and silver hitting a LoD of $19.38. Aug gold ended the day $15.30 lower at $1276.90/oz, July silver finished the day $0.45 lower at $19.50/oz. July copper lost eight cents at $3.02/lb.DJ30 -65.08 NASDAQ -22.66 SP500 -11.54 NASDAQ Adv/Vol/Dec 672/1639.8 mln/1861 NYSE Adv/Vol/Dec 561/665 mln/2536

3:00 pm : The final hour should prove interesting as the market flirts with staging a total reversal of this morning's substantive losses. Strikingly, the CBOE Volatility Index has rolled over as stocks have progressed through the afternoon. The VIX Index, euphemistically referred to as a "fear gauge," was up more than 10% earlier, but is now down 1.0% at 18.71.

The Dow had reclaimed more than 200 points of its earlier 248-point decline, led by Johnson & Johnson (JNJ 84.95, +1.75), Wal-Mart (WMT 74.53, +1.02), and UnitedHealth (UNH 64.95, +1.05).

The market didn't have any economic data to trade off today, but that will change tomorrow with the release of the April Case-Shiller Home Price Index, May Durable Goods, May New Home Sales, and June Consumer Confidence reports.

DJ30 -70.96 NASDAQ -19.54 SP500 -10.57 NASDAQ Adv/Vol/Dec 720/1.47 bln/1806 NYSE Adv/Vol/Dec 590/601 mln/2505

2:30 pm : In Briefing.com's Page One article, which was published before the start of trading, it was noted that interest rates and the behavior of the stock market in the face of early selling pressure would be the things to watch today since there wasn't any corporate or economic news of note. It was said, in turn, that the path of interest rates could make a difference for the stock market.

Sure enough, that seems to be holding true. The major averages have cut their losses by a significant amount as the benchmark 10-yr note has rallied back in a big way from earlier losses. After being down more than a point earlier, the 10-yr note is now up two ticks and its yield stands at 2.53%.

The drop in rates has provided a bargain hunting bid in stocks, yet it can be said that effort is being played somewhat tenatively given that the utilities (+0.5%), consumer staples (+0.3%) and telecom services (+0.1%) sectors are the top-performing areas at the moment.

Broader buying efforts have helped the Dow, Nasdaq and S&P 500 recover from earlier losses of 248, 62, and 32 points, respectively. DJ30 -46.23 NASDAQ -19.55 SP500 -9.03 NASDAQ Adv/Vol/Dec 651/1.35 bln/1864 NYSE Adv/Vol/Dec 578/550 mln/2511

1:55 pm : It was a tough morning for the stock market, but the afternoon trade has brought some better fortune. The major averages have cut their losses by a decent amount, yet the S&P 500 has recently run into resistance around the 1575 level, which was a support level that got violated earlier. The Dow Jones Industrial Average, which was down 248 points at its low today, was down just 105 points a short time ago before getting some push back.

Notably, during the stock recovery effort, there has also been a pickup in buying interest in the Treasury market. The 10-yr note, which was down more than a point earlier today, is now down just seven ticks and its yield has dropped to 2.56% versus 2.66% at its high today.

The symbiotic rebound try fits the notion that both markets are finding some renewed buying interest on the notion that they have gotten oversold on a near-term basis.

Every sector in the stock market has pared larger losses. The utilities sector (-0.3%) is the best-performing sector on a relative basis.DJ30 -137.40 NASDAQ -39.74 SP500 -19.90 NASDAQ Adv/Vol/Dec 516/1.21 bln/2001 NYSE Adv/Vol/Dec 272/488 mln/2816

1:25 pm : So far, the predominant tendency has been to sell into strength today. Over the last hour or so, the stock market has put in its most concerted rebound attempt of the day with the S&P 500 jumping approximately 12 points from session lows reached shortly before 12:30 p.m. ET.

The 1575/1577, which was an initial support level that got violated earlier, has now pivoted to a point of intraday resistance.

There hasn't been a news catalyst behind the recent uptick, but underlying thoughts that the market is near-term oversold are likely playing a part in the rebound try.

Separately, Dallas Fed President Fisher is speaking at the moment on monetary policy and the US economy. The salient headline in the world of Fed watching is that he agrees fully with what Fed Chairman Bernanke announced regarding the tapering timeline and he thinks it would be appropriate to dial back stimulus (this was already a known view of Mr. Fisher, who is a noted hawk and will be an FOMC voting member in 2014).DJ30 -133.07 NASDAQ -38.08 SP500 -19.75 NASDAQ Adv/Vol/Dec 546/1.12 bln/1975 NYSE Adv/Vol/Dec 238/448 mln/2847

1:00 pm : The stock market has struggled to get off the mat today, having been pinned down by a combination of rising interest rates and a bearish wave of selling that knocked China's stock market for a 5.3% loss.

The latter was driven by liquidity concerns as the People's Bank of China has taken a hardline stance in rejecting calls for liquidity injections. Instead, the PBOC has defended its position, saying there are sufficient levels of liquidity in the system and that banks in China need to do a better job of cash and risk management.

Consequently, worries about China's growth outlook have risen and were given attention today by Goldman Sachs, which downgraded its second quarter GDP (to 7.5% from 7.8%) and full-year GDP (to 7.4% from 7.8%) forecasts for China.

The weakness in China and other Asian markets spilled over to Europe, which also had a tough outing. Most major bourses fell between 1.0% and 2.0%.

The sledding hasn't been much better for major averages in the US. They are off their lows at the moment, yet they are still down between 1.2% (Dow Jones Industrial Average) and 2.0% (Russell 2000).

Aside from the troublesome showing in foreign stock markets, rising interest rates have acted as a major headwind. The yield on the 10-yr note spiked to 2.66% earlier this morning and currently sits at 2.59%, which is up 40 basis points from the cash settlement last Tuesday.

The upward adjustment in interest rates hasn't been limited to the US. Global bond markets have come under pressure with participants adjusting to the idea that central banks are increasingly showing reluctance to do more with monetary policy to stimulate growth. The PBOC's position on injecting liquidity stands out in that regard.

On a related note, the Bank for International Settlements said central banks should end their bond purchases, focus on inflation, and let governments spearhead growth. That communique has arguably played a part behind the selling in bond markets today.

Cyclical sectors have understandably been the weakest link in the stock market today; however, there aren't any pockets of true strength. Every sector is down at this juncture, although losses in the countercyclical sectors are less pronounced.

Market internals are decidedly negative with declining issues at the NYSE outlegging advancing issues by a 17-to-1 margin. Thus far, the predominant tendency has been to sell into strength with few signs yet of any bargain hunting in the Treasury market that would help bring down interest rates. DJ30 -174.48 NASDAQ -45.93 SP500 -23.95 NASDAQ Adv/Vol/Dec 443/1.03 bln/2056 NYSE Adv/Vol/Dec 179/416 mln/2912

12:25 pm : The major indices continue to trade near their lows for the day, which isn't surprising seeing that the number of advancing issues at the NYSE (122) continue to get thumped by the number of declining issues (2959). The ratio is better -- but it isn't good -- at the Nasdaq (342 to 2153).

In the last half hour, some remarks from Minneapolis Fed President Kocherlakota hit the wires. Mr. Kocherlakota is not a voting FOMC member this year but he is regarded as a dovish Fed official. He stirred the pot today, however, not with hawkish remarks but with a comment that he thinks the Fed needs to communicate policy better.

Kocherlakota's thoughts follow on the heels of the very public dissent published last week by St. Louis Fed President Bullard. The understanding that Mr. Kocherlakota is also not pleased with the communication signaling is a negative in the sense that it highlights dissension in the Fed ranks. The market, in turn, isn't too keen on the thought of infighting at the Fed at such a delicate policy juncture as it suggests the Fed might not have the firm grip it professes to have on managing monetary policy.
DJ30 -233.32 NASDAQ -59.02 SP500 -30.97 NASDAQ Adv/Vol/Dec 342/925 mln/2153 NYSE Adv/Vol/Dec 122/377 mln/2959

11:55 am : There hasn't been a great deal of change since the last update as the major averages continue to languish near their lows for the day. There has been a modest recovery effort in the Treasury market.

The 10-yr note yield, which hit 2.66% earlier this morning, has dropped back to 2.59% with the benchmark instrument down a half point for the day. A further move lower here could be the tonic for an ailing stock market.

The move in the 10-yr note since last week's FOMC meeting has been nothing short of astonishing. Notably, though, the jump in sovereign bond rates has been a global phenomenon. Germany's bund, for instance, has risen 65 basis points since early May to 1.81%.DJ30 -211.84 NASDAQ -52.21 SP500 -27.77 NASDAQ Adv/Vol/Dec 366/809 mln/2115 NYSE Adv/Vol/Dec 129/335 mln/2930

11:25 am : A half-hearted rebound effort has been met with resistance as the buy-the-dip crowd is running into a growing sell-the-strength trade. That may not last the entire session, but for the time being, the S&P 500 is at a new low for the day while the other averages are retesting their worst levels of the session.

The S&P 500 is down 1.8% at this juncture. Relative strength leaders are found in the lower beta, and defensive-oriented, sectors.

Specifically, the telecom services (-0.8%), consumer staples (-1.2%), utilities (-1.2%), and health care (-1.6%) sectors are all outperforming the broader market, which is small consolation for many owners considering they are still incurring decent-sized losses. DJ30 -239.10 NASDAQ -58.61 SP500 -30.69 NASDAQ Adv/Vol/Dec 336/697 mln/2122 NYSE Adv/Vol/Dec 108/293 mln/2934

11:00 am : The major averages are trying to claw their way back from larger losses. So far, though, it has been difficult to gain upside traction.

The S&P 500 hit a new low of 1563.37 a little more than 30 minutes ago, at which point some "buy-the-dippers emerged. At the aforementioned low, the S&P 500 was down 5.5% from its intraday high on June 18.

With today's large price decline, and the goings-on in China, it is little surprise to see the CBOE Volatility Index moving higher again. The VIX Index is trading at 20.82, +10.2%, and has risen 38% since its close on June 7.

DJ30 -169.56 NASDAQ -40.04 SP500 -21.71 NASDAQ Adv/Vol/Dec 432/583 mln/2013 NYSE Adv/Vol/Dec 151/250 mln/2866

10:35 am : Commodities are mostly lower this morning following weakness in China, which is led by the metals complex. In recent trade, the energy space has shown some strength, which has pushed natural gas and crude oil back into positive territory. The move in crude oil has been short-lived, however.

In the metals space, gold, silver, copper, platinum, palladium and aluminum prices are all lower. Without any additional weakness from Asia, a number of metals are already feeling enough pressure due to oversupply issues.

Steel, aluminum copper and molybdenum are seen in oversupply globally and China is the largest user, or one of the largest users of numerous metals, which is why the country has such a large influence on global commodity prices.

Overall, China is the largest user of copper, iron ore, zinc and natural rubber. China currently uses about 40% of the world's copper produced each year.

In current trade, Aug gold is -0.5% at $1285.00/oz, July silver is -1.7% at $17.62/oz, July copper is -2.6% at $3.01/lb, Aug crude oil is -0.1% at $93.56/barrel, nat gas is flat at $3.79/MMBtu.DJ30 -186.36 NASDAQ -45.72 SP500 -24.24 NASDAQ Adv/Vol/Dec 323/469.7 mln/2092 NYSE Adv/Vol/Dec 125/218 mln/2880

10:00 am : It has been a rough start for the equity market with buyers shying away from the action. Their hesitancy is rooted in the sense major central banks are growing increasingly reluctant to do more than they already have with their monetary policy. That thought is unsettling because there are enough signs still that suggest the global economy hasn't established upside growth traction.

Separately, there are some seeds of confusion that have been planted with interest rates continuing to go up as stocks sell off. The lack of a defensive outlet, other than cash, has been an added source of concern.

Every sector is down at least 1.0% at the moment with the exception of the telecom services sector (-0.8%). Declining issues at the NYSE are outpacing advancing issues by a whopping 26-to-1 ratio.DJ30 -211.54 NASDAQ -51.63 SP500 -26.29 NASDAQ Adv/Vol/Dec 276/267 mln/2081 NYSE Adv/Vol/Dec 110/138 mln/2825

09:40 am : The major averages opened sharply lower as expected. Every sector is down at the moment, but it is the cyclical sectors that are pacing the declines. That is not surprising in light of the escalating concerns about China's growth being curtailed as banks there are forced to take fewer risks.

The basic materials sector (-2.2%) leads the way with many of the industrial metals under fire. Copper prices are currently off 2.2% at $3.03/lb.

The 10-year note yield (2.62%) has steadied somewhat from earlier weakness, yet there still hasn't been any rush to go bargain hunting there.DJ30 -160.73 NASDAQ -47.86 SP500 -22.50

09:14 am : [BRIEFING.COM] S&P futures vs fair value: -12.20. Nasdaq futures vs fair value: -20.80. The futures market has gotten a near 10-point boost off its lows of the morning without any clear news catalyst. The bounce has coincided with the 10-yr note yield coming off its highs of the morning, although it's not unreasonable to think some participants have developed a sense that the market is near-term oversold. The latter is open for debate, but what remains clear is that it will be an uphill battle today.

While the S&P futures have bounced, they are still trading 0.8% below fair value, so stocks will begin the day at least on a downward note.

08:56 am : [BRIEFING.COM] S&P futures vs fair value: -11.80. Nasdaq futures vs fair value: -16.50.

It was a sea of red across Asia as all of the major averages finished with losses. Selling was heaviest in China's Shanghai Composite (-5.3%) as shares plunged to their lowest close since December due to ongoing credit concerns. Over the weekend, the PBOC tried to calm fears, suggesting liquidity levels are appropriate, but the comments did little to restore confidence as shares saw their biggest drop in almost four years. In response, emerging markets were hit hard with the Philippines (-3.4%) and Thailand (-2.6%) seeing notable declines.

In Japan, the Nikkei closed -1.3% as names with strong China ties weighed. Komatsu shed 4.6% and Fanuc gave up 2.3% were among the laggards in the space. Elsewhere, Softbank outperformed with a 0.7% advance after the co's CEO suggested its deal to buy Sprint Nextel would likely be completed in July.
In Hong Kong, the Hang Seng finished -2.2% as mainland financials were a drag. China Minsheng Bank tumbled 8.1% as mid-sized lenders were hit hard on worries the recent spike in SHIBOR will weigh heaviest on mid0sized banks. However, the largest financial institutions were unable to escape the selling as Agricultural Bank of China shed 2.9%.
In China, the Shanghai Composite settled -5.3% as financials were hit hard. Industrial & Commercial Bank of China plunged limit-down 10% while Pudong Development Bank tumbled 9%.

Markets are lower across Europe with all of the major averages down at least 1%. Today's selling comes in response to the overnight weakness in Asia, and amid a slow day for news and data. German Ifo Business Climate ticked up to 105.9 (105.7 previous), but the number fell short of the 106.0 that had been anticipated. Elsewhere, Italian consumer confidence topped expectations, climbing to 95.7 (86.3 expected, 86.4 previous).

In Britain, the FTSE is -1.3% as miners lead to the downside. Kazakhmys and Vedanta Resources are the worst performers, trading down 8.6% and 5.1% respectively. However, other names in the space are also being hit hard as Lonmin trades down 3.1% and Fresnillo is off 3.0%.
In France, the CAC is -2.0% as all but one listing trades in the red. Financials are all down at least 2.0% with Societe Generale's 3.0% drop pacing the decline. Lafarge is the lone gainer, sporting a 0.3% advance.
In Germany, the DAX is -1.3% with most names in negative territory. Metro AG is the worst performer, trading down 6.5%, after receiving a downgrade. Meanwhile, Allianz and Daimler are the lone names in the green, holding gains of 0.2% and 0.9% respectively.

08:32 am : [BRIEFING.COM] S&P futures vs fair value: -18.00. Nasdaq futures vs fair value: -28.30. The S&P futures have moved off their worst levels of the morning, but not by much. Accordingly, the cash market remains on course for a noticeably lower open with the futures trading 1.1% below fair value.

The performance in China (-5.3%) overnight has gotten everyone's attention along with the continued rise in long-term rates in the US. The 10-year note yield has spiked to 2.64% as equity futures have weakened, showing the safe-haven rotation into Treasuries is not in play like it used to be.

The US Dollar Index (82.66, +0.34) is the reflection of safe-haven buying, yet strength in the greenback and broader worries about global economic activity continue to apply pressure to commodity prices.

08:02 am : [BRIEFING.COM] S&P futures vs fair value: -19.50. Nasdaq futures vs fair value: -26.00.

The S&P futures are trading 1.2% below fair value, indicating a sharply lower open for the cash market. The downside pressure follows in the wake of large losses in overseas markets, highlighted by a 5.3% decline in China's Shanghai Composite that was attributed to liquidity concerns and worries about a credit crunch in China. A continued rise in long-term interest rates in the US (10-yr at 2.64%), and a warning from the Bank of International Settlements that central bank policies essentially won't be effective and should end have also been negative focal points.

Reviewing overnight developments:

Asian markets ended lower across the board. Japan's Nikkei fell 1.3%, China's Shanghai Composite dropped 5.3%, and Hong Kong's Hang Seng declined 2.2%
There was no economic data of note.
Looking at news:
The People's Bank of China continues to walk a firm line on providing more liquidity, warnings banks instead to do a better job of cash management
Goldman Sachs cut its Q2 GDP growth forecast to 7.5% from 7.8%, citing tighter financial conditions. The bank lowered its full-year growth estimate to 7.4% from 7.8%
European indices are also down across the board. The United Kingdom's FTSE has dropped 1.4% %, Germany's DAX is off 1.5%, and France's CAC is lower by 2.0%.
Economic data was limited:
German Ifo Business Climate Index rose to 105.9 from 105.7 (105.9 expected). The Business Expectations component increased to 102.5 from 101.6 (102.0 consensus ) while Current Assessment ticked udown to 109.4 from 110.0 (109.6 forecast).
Italian Consumer Confidence rose to 95.7 from 86.4 (86.3 forecast). Meanwhile, the country's non-EU trade balance was reported at EUR 2.97 bln (EUR1.46 billion prior).
In news:
Vodaphone (VOD) has made a EUR 7.7 bln offer to acquire Germany's Kabel Deutschland
In U.S. corporate news:
Pfizer (PFE) was resumed with an Ovwerweight at JPMorgan
Coca-Cola (KO) was started with a Buy at SunTrust Robinson Humphrey
Charles Schwab (SCHW) was upgraded to Buy from Sell at Citigroup

06:43 am : [BRIEFING.COM] S&P futures vs fair value: -14.00. Nasdaq futures vs fair value: -23.00.

06:43 am : Nikkei...13062.78...-167.40...-1.30%. Hang Seng...19813.98...-449.30...-2.20%.

06:43 am : FTSE...6064.31...-95.20...-1.60%. DAX...7709.34...-79.90...-1.00%.

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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