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 Post subject: July 17th Wednesday Trade Results - Profit $3040
PostPosted: Wed Jul 17, 2013 7:51 pm 
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Joined: Sat Jan 10, 2009 2:06 pm
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Trade Results of M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
Price Action Trading (no technical indicators)
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

Quote:
This message post (performance record) is the doorway into my trade journal (diary). It contains summaries of my trade results and a direct link to the actual chat room log for today's trading session where the details of each trade was posted in real-time from entry to exit. In addition, below you'll find today's market context that's critical in understanding what the markets were reacting too so that you'll have a better understanding of my trades and/or price action commentaries in the chat room.

Price Action Trade Performance for Today: Emini TF ($TF_F) futures @ ($380.00) dollars or -3.80 points, Emini ES ($ES_F) futures @ $3000.00 dollars or +60.00 points, Light Crude Oil CL ($CL_F) futures @ $420.00 dollars or +0.42 points, Gold GC ($GC_F) futures @ $0.00 dollars or +0.00 points and EuroFX 6E ($6E_F) futures @ $0.00 dollars or +0.0000 ticks. Total Profit @ $3040 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=119&t=1556

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=214&t=1883

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Market Context 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: Bernanke's Message Is Loud And Clear

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

NEW YORK (CNNMoney)
Chairman Ben Bernanke reiterated Wednesday that the Federal Reserve will keep its stimulus policies in place for as long as necessary, and investors are starting to get the message.

The Dow Jones industrial average rose 0.1%, while the S&P 500 and the Nasdaq both gained about 0.3%. The Dow and S&P are both a few points below from all-time highs.

The yield on the 10-year Treasury bond edged lower after Bernanke told lawmakers that the Fed's $85 billion-per-day bond buying program is "by no means on a preset course."

Overall, the subdued moves suggest that investors are beginning to accept Bernanke's core position, which is that monetary policy will remain highly accomodative, even as the Fed begins to scale back its bond buying, said Ashraf Laidi, global market strategist at City Index in London.

"Fed Chairman Bernanke's main message is finally getting through to market participants," he said.

Bernanke strikes a balance: In the first day of his semi-annual Congressional testimony, Bernanke sought to reassure lawmakers that the central bank is taking a measured approach to quantitative easing, as the bond buying program is known.

Echoing previous statements, Bernanke said the Fed could increase the pace of its bond buying if the economy falters, adding that it could also be reduced "somewhat more quickly" if the recovery accelerates.

While that's not new, Bernanke tempered fears that the Fed could begin to slow the program this year by highlighting the "downside risks" to the economy, including rising mortgage rates and tepid inflation.

Bernanke's testimony seems to be "emphasizing the 'no-imminent-tightening point' a bit more," said Jim O'Sullivan, chief U.S. economist at High Frequency Economics.

The chairman rattled global markets in May, when he said the Fed could decide to taper its bond buying at one of its next few meetings. The Fed's stimulus measures have kept the markets awash with liquidity and helped spur recent stock market highs.

* Don't 'panic-sell' bonds

In the latest edition of its Beige Book, the Fed said the economic activity across the central bank's districts continued to grow at a "modest to moderate pace."

Housing weakness: The number of new homes breaking ground in June fell 10% from May, the Commerce Department said. Meanwhile, applications for building permits, considered a leading indicator for new home construction, fell 7%. Both figures were worse than expected.

That suggests the recent surge in mortgage rates has taken a toll on the housing market, said Michael Englund, economist at Action Economics.

While the recovery in housing remains on track, Englund said there is a "greater risk of a mid-year speed-bump with weaker figures than we had previously assumed."

What's moving: IBM (IBM, Fortune 500) said after the market close that net income fell 17% in the second quarter, driven by costs linked to its "workforce rebalancing." Excluding that expense, IBM said net income rose 3% to $4.3 billion. Shares of Big Blue were up after hours.

Intel (INTC, Fortune 500) reported quarterly results that matched analysts' expectations. However, the company said it expects revenues to be flat this year, after previously forecasting a modest increase.

American Express (AXP, Fortune 500) reported better-than-expected quarterly earnings of $1.27 per share. But the stock was under pressure following reports that the European Union will impose a cap on credit card swipe fees.

Bank of America (BAC, Fortune 500) released its second-quarter results before the opening bell, reporting a 63% surge in quarterly profit to more than $4 billion.

Shares of Mattel (MAT, Fortune 500)fell after the toymaker said earnings fell in the second quarter on charges and strategic investments.

Yahoo (YHOO, Fortune 500) shares rose after the company reported a jump in profit, though quarterly sales fell slightly short of both Wall Street's expectations and its own results from a year earlier.

CSX (CSX, Fortune 500) shares rose after the rail company reported quarterly earnings that beat expectations.

Shares of Tesla (TSLA) bounced back after taking a beating Tuesday, when Goldman Sachs (GS, Fortune 500) issued a price target that was well below where the stock is currently trading.

European markets ended higher, while Asian markets closed with mixed results.

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4:15 pm : The major averages finished today's relatively quiet session with modest gains. The S&P 500 added 0.3% while the Dow Jones Industrial Average underperformed, ending little changed.

Equities began the session in the black after the prepared remarks from Ben Bernanke's testimony in front of the House Financial Services Committee provided an opening boost. Mr. Bernanke's comments were in-line with previous statements, indicating the Federal Reserve plans to base its decisions on the incoming data. The Fed Chairman expounded on this by saying asset purchases could be scaled back if economic conditions improve faster than expected, and inflation rises towards the Fed's objective. However, if financial conditions were to tighten, the current pace of purchases could be maintained or increased.

In that vein, today's housing data released concurrently with Chairman Bernanke's comments spoke in favor of leaving asset purchases unchanged.

Housing starts hit an annualized rate of 836,000 units during June. Economists polled by Briefing.com had expected for housing starts to hit an annual rate closer to 958,000. The large miss was mostly due to 26.2% decline in multi-family units while single-family starts declined by 0.8%.

Separately, today's weekly MBA Mortgage Index decreased 2.6% to follow last week's decline of 4.0%. While the weekly reading can be quite volatile, this was the fifth negative reading in a row and the ninth decline out of the past ten weeks.

Homebuilders received the news in stride, and the iShares Dow Jones US Home Construction ETF (ITB 23.26, +0.29) advanced 1.3%. However, the remainder of the discretionary sector was not as strong. Most quick service restaurants underperformed, and Dow component McDonald's (MCD 100.10, -0.78) fell 0.8% after Janney Montgomery Scott downgraded the fast food giant to 'Neutral' from 'Buy.'

Speaking of the Dow, the price-weighted index trailed behind the broader market throughout the day. American Express (AXP 76.80, -1.47) was a notable index laggard after a Financial Times report indicated the Eurozone is likely to implement limits on transaction fees.

On a related note, another major financial, Bank of America (BAC 14.31, +0.39) jumped 2.8% after delivering a solid earnings report. Bank of America's outperformance helped the financial sector end with a gain of 0.5%.

Other cyclical sectors settled in mixed fashion. Technology underperformed (+0.1%) while energy (+0.5%) and materials (+1.0%) finished ahead of the broader market.

Elsewhere, the utilities sector (-0.1%) was the weakest countercyclical group while consumer staples (+0.2%), health care (+0.2%), and telecom services (+0.5%) posted gains.

Also of note, The Federal Reserve's July Beige Book was generally in-line with reports from prior months. The Beige Book indicated that pricing pressures remain contained and housing continues on a 'moderate to strong' pace. Wage growth was also described as 'modest,' but the report did note three districts (Chicago, Philadelphia, and Richmond) indicated reluctance to hire permanent or full-time staff. Instead, Chicago and Richmond districts reported solid demand for part-time workers.

Tomorrow, weekly initial claims will be reported at 8:30 ET while the June leading indicators and July Philadelphia Fed Survey will be released at 10:00 ET. On the earnings front, UnitedHealth Group (UNH 66.23, -0.68) and Verizon (VZ 50.74, +0.46) will report their quarterly results before the opening bell. In addition, the second half of the Humphrey Hawkins testimony will take place with Ben Bernanke appearing in front of the Senate Finance Committee.DJ30 +18.67 NASDAQ +11.50 SP500 +4.65 NASDAQ Adv/Vol/Dec 1470/1.49 bln/1020 NYSE Adv/Vol/Dec 1963/676.8 mln/1027

3:30 pm :

Aug crude oil spent most of today's pit trade chopping around near the unchanged line. It touched a session low of $105.63 per barrel but rose on better-than-anticipated inventory data that showed a draw of 6.902 mln barrels when expectations called for a much smaller draw of 2.0 mln barrels. The energy component rallied into the close and settled 0.5% higher at $106.48 per barrel, or just below its session high of $106.52 per barrel.
Aug natural gas struggled in negative territory, falling as low as $3.61 per MMBtu. It settled with a 1.4% loss at $3.63 per MMBtu.
Precious metals slipped into the red as investors digested Chairman Bernanke's testimony stating that the current pace of asset purchases would continue if financial conditions were to become "relatively less favorable".
Aug gold retreated from a session high of $1299.70 per ounce and settled 1.0% lower at $1277.40 per ounce.
Sep silver closed 2.6% lower at $19.42 per ounce after pulling back from a session high of $20.18 per ounce.

DJ30 +2.42 NASDAQ +8.15 SP500 +3.72 NASDAQ Adv/Vol/Dec 1429/1237.0 mln/1023 NYSE Adv/Vol/Dec 1950/438 mln/1034

3:00 pm : The major averages have slipped to their lows and the S&P 500 has trimmed its gain to 0.2%. Technology and discretionary shares dipped into the red during the retreat, but their losses have been limited to 0.1% so far.

Elsewhere, the industrial sector has also slipped back to its lows, but the group remains in positive territory (+0.1%). Caterpillar (CAT 86.55, -1.62) is a notable sector laggard after fund manager Jim Chanos said he has a short position in the machinery producer.DJ30 -5.60 NASDAQ +4.72 SP500 +3.17 NASDAQ Adv/Vol/Dec 1399/1.12 bln/1061 NYSE Adv/Vol/Dec 1941/399.2 mln/1057

2:25 pm : The Federal Reserve has released its July Beige Book, which was generally in-line with reports from prior months. The Beige Book indicated that pricing pressures remain contained and housing continues on a 'moderate to strong' pace. Wage growth was also described as 'modest,' but the report did note three districts (Chicago, Philadelphia, and Richmond) indicated reluctance to hire permanent or full-time staff. Instead, Chicago and Richmond districts reported solid demand for part-time workers.

The report did not have much effect on the markets as the major averages continue to hold their recent levels. The S&P 500 is higher by 0.3% while the Dow Jones Industrial Average trades with a gain of just 0.1%.

Most cyclical sectors have been able to hold their solid gains but discretionary shares and technology have underperformed the broader market throughout the session. Both sectors hold slim advances of 0.1%.DJ30 +15.82 NASDAQ +10.86 SP500 +5.75 NASDAQ Adv/Vol/Dec 1467/1.02 bln/982 NYSE Adv/Vol/Dec 2036/364.9 mln/944

2:00 pm : The major averages continue to hold their recent levels. The S&P 500 is higher by 0.4% with financials and materials outperforming the remaining cyclical sectors. Producers of basic materials finished at the bottom of yesterday's leaderboard, but today's gain of 0.7% has helped the sector erase most of yesterday's losses. Steelmakers have shown some recent strength and the Market Vectors Steel ETF (SLX 40.30, +0.56) is higher by 1.4%.

With regard to financials, the sector trades higher by 0.7% and Bank of America (BAC 14.36, +0.44) is the top performing major after reporting above-consensus earnings this morning. Also of note, American Express (AXP 76.83, -1.44) will announce its quarterly results after today's closing bell.DJ30 +18.69 NASDAQ +10.43 SP500 +6.09 NASDAQ Adv/Vol/Dec 1469/949.9 mln/990 NYSE Adv/Vol/Dec 2013/340.1 mln/945

1:30 pm : After an extended period of questioning that was preceded by a lengthy delay to fix some microphone issues, day one of Fed Chairman Bernanke's two-day testimony on monetary policy has concluded. In brief, there were no policy surprises in his prepared text or in his responses in the Q&A part of the testimony. The biggest surprise perhaps was that the questions posed by House members were not all that hard-hitting on the Fed's policy choices and economic projections. There seemed to be more divergence this time around into issues such as GSE reform and Basel III proposals. The lack of surprises effectively kept the major averages hog-tied in a narrow trading range during the testimony. That makes sense in that outsized moves are reserved for surprises and there were no surprises in the testimony today. The Senate Banking Committee gets its turn tomorrow with the Fed chairman. Same time (10:00 a.m. ET), slightly different place, and hopefully better microphones.

In other developments, Dow component Caterpillar (CAT 86.91, -1.26) has been branded today as a short-selling idea by influential investor Jim Chanos, who called CAT his best idea at CNBC's Delivering Alpha Conference citing concerns about the end of the commodity supercycle and Caterpillar's accounting. The views espoused by Mr. Chanos knocked CAT back sharply. It has since rebounded some, but remains underwater and a drag on the Dow at this juncture. DJ30 +10.23 NASDAQ +10.38 SP500 +5.62 NASDAQ Adv/Vol/Dec 1434/864 mln/1008 NYSE Adv/Vol/Dec 1982/314 mln/955

1:00 pm : At midday, the major averages trade in mixed fashion. The Nasdaq and S&P 500 hold slim gains of 0.3% each while the Dow Jones Industrial Average adds 0.1%.

Stocks saw an opening boost after the prepared remarks from Chairman Bernanke's testimony in front of the House Financial Services Committee reiterated the Fed's intent to remain data dependent. Mr. Bernanke said asset purchases could be scaled back if economic conditions improve faster than expected, and inflation rises towards the Fed's objective. However, the Fed Chairman also said if financial conditions were to tighten, the current pace of purchases could be maintained for longer.

The Dow trails behind the two broader indices as American Express (AXP 76.79, -1.48) and McDonald's (MCD 100.11, -0.77) pressure the price-weighted index. American Express is lower by 1.9% after a report in the Financial Times indicated the Eurozone may implement caps on card transaction fees. In addition, American Express is scheduled to report its quarterly results after today's closing bell.

For its part, McDonald's trades down 0.8% after Janney Montgomery Scott downgraded the stock to 'Neutral' from 'Buy.' Meanwhile, other quick service restaurants haven't fared much better, and their underperformance has weighed on the discretionary sector.

However, discretionary shares have been kept afloat by homebuilders. The iShares Dow Jones US Home Construction ETF (ITB 23.29, +0.32) sports a gain of 1.4% even after today's housing data proved to be a disappointment.

Housing starts hit an annualized rate of 836,000 units during June. Economists polled by Briefing.com had expected for housing starts to hit an annual rate closer to 958,000. The large miss was mostly due to 26.2% decline in multi-family units while single-family starts declined by 0.8%.

On a related note, today's weekly MBA Mortgage Index decreased 2.6% to follow last week's decline of 4.0%. While the weekly reading can be quite volatile, this was the fifth negative reading in a row and the ninth decline out of the past ten weeks.DJ30 +11.11 NASDAQ +11.71 SP500 +5.45 NASDAQ Adv/Vol/Dec 1469/792.4 mln/961 NYSE Adv/Vol/Dec 1979/291.8 mln/942

12:35 pm : The major averages remain confined to narrow ranges as Ben Bernanke's testimony before the House Financial Services Committee enters its final 30 minutes. The testimony hasn't produces many surprises and Mr. Bernanke reiterated the Fed's intent to rely on data when it comes to making decisions regarding the pace of its asset purchases.

Notably, the financial sector underperformed in early action, but has been able to pick up some gains since. Bank of America (BAC 14.29, +0.37) is higher by 2.7% after beating on earnings. Meanwhile, American Express (AXP 76.73, -1.54) has climbed off its lows. The stock fell at the open after a Financial Times story indicated the Eurozone may cap card transaction fees. Also of note, AXP will report its quarterly results after today's close.DJ30 +9.24 NASDAQ +13.01 SP500 +5.52 NASDAQ Adv/Vol/Dec 1521/730.1 mln/912 NYSE Adv/Vol/Dec 2000/272.1 mln/911

12:00 pm : The Nasdaq and S&P 500 continue to hold their slim gains of 0.2% each while the Dow trades flat line as two major components, American Express (AXP 74.92, -3.35) and McDonald's (MCD 99.88, -0.99) pressure the price-weighted index.

With regard to individual sectors, the utilities space has widened its loss to 0.4% while another defensively-oriented group, consumer staples, underperforms with a slim gain of 0.1%. The remaining countercyclical groups, health care (+0.3%) and telecom services (+0.5%), trade ahead of the broader market.DJ30 -0.34 NASDAQ +7.15 SP500 +3.59 NASDAQ Adv/Vol/Dec 1415/622.8 mln/985 NYSE Adv/Vol/Dec 1893/241.4 mln/1004

11:30 am : The S&P 500 is higher by 0.2% while the Dow has returned to its flat line. The price-weighted index has been pressured by the relative weakness of American Express (AXP 74.89, -3.38) and McDonald's (MCD 99.77, -1.11).

American Express trades lower by 4.2% after a Financial Times story indicated the Eurozone may begin capping card transaction fees. Meanwhile, McDonald's trades down 1.1% after Janney Montgomery Scott downgraded the stock to 'Neutral' from 'Buy.'

On a related note, other quick service restaurants also hover in the red while the discretionary sector trades flat.DJ30 +6.14 NASDAQ +6.95 SP500 +4.23 NASDAQ Adv/Vol/Dec 1469/548.5 mln/905 NYSE Adv/Vol/Dec 1988/215.1 mln/893

11:00 am : Recent action saw the S&P 500 notch its session high in the 1684 area before the index slipped back to its opening level. The utilities sector now holds a slim loss of 0.2% while the remaining nine groups continue to hold gains.

Although nine groups can be found in positive territory, discretionary shares, technology, and consumer staples trail behind the broader market.

Elsewhere, Treasuries have slipped from their highs, but the benchmark 10-yr yield remains lower by four basis points at 2.49%.DJ30 +13.90 NASDAQ +9.86 SP500 +5.12 NASDAQ Adv/Vol/Dec 1527/445.6 mln/812 NYSE Adv/Vol/Dec 2021/179.6 mln/832

10:40 am : Crude oil prices were in the red all session before two recent and temporary moves into positive territory. The Aug contract fell as low as $105.12/barrel earlier this morning, and temporarily erased all of those losses.

Just ahead of the weekly inventory data, crude oil was flat at $106.00/barrel. Following the inventory data, which showed a large draw all crude oil, gasoline and distillates inventory, crude oil ticked lower. In current activity, Aug crude is -0.08% at $105.92/barrel.

Natural gas prices have been in the red all session so far as well. Aug natural gas has been inching lower this morning and hit a new session low of $3.64/MMBtu at 8am EST. Following that LoD, nat gas rallied back to the unchanged line, but lost steam and fell to a new LoD of $3.63/MMBtu and is now at $3.64/MMBtu, down 1.1%.

Metals were lower this morning, including gold, silver, copper, palladium and platinum. Overnight, on the London Metals Exchange, aluminum futures rose 0.3% at $1780.00/ton. Meanwhile, iron ore prices are up 2.8% this morning at $126.75/ton.

However, comments from Federal Reserve Chairman Ben Bernanke sent the dollar index straight down, into negative territory, causing gold and silver futures to spike to new session highs (Gold popped about $15/oz to almost $1299.00/oz and silver popped almost $0.50/oz to over $20.00/oz). Aug gold is now +0.4% at $1294.90/oz and Sept silver is +0.6% at $20.05/oz.DJ30 +47.20 NASDAQ +16.42 SP500 +8.34 NASDAQ Adv/Vol/Dec 1658/370.6 mln/665 NYSE Adv/Vol/Dec 2210/153 mln/620

10:00 am : The major averages have taken a step back from their early highs amid relative weakness in financials, technology, and the two consumer sectors.

Notably, the underperformance of homebuilders has put the discretionary sector under pressure after today's housing starts and building permits report missed expectations. The iShares Dow Jones US Home Construction ETF (ITB 22.84, -0.13) is lower by 0.6%.

Elsewhere, the financial sector is little changed even after Bank of America (BAC 14.09, +0.17) delivered a solid earnings report. Meanwhile, Dow component American Express (AXP 75.60, -2.67) trades lower by 3.4% following Financial Times reports indicating the Eurozone may cap card transaction fees.DJ30 +15.76 NASDAQ +7.00 SP500 +3.98 NASDAQ Adv/Vol/Dec 1438/194.9 mln/806 NYSE Adv/Vol/Dec 1891/96.6 mln/811

09:50 am : The S&P 500 holds an early gain of 0.3% as all ten sectors trade in positive territory. The health care space has received some early support from Abbott Labs (ABT 36.24, +0.54) after the drug maker reported and earnings beat on below-consensus revenue.

In addition, two of yesterday's laggards, energy and materials, have shown strength in early action. Both sectors sport gains of 0.6%.

At 10:00 ET, Chairman Bernanke will begin his testimony in front of the House Financial Services Committee. Mr. Bernanke's prepared remarks reiterated the Fed's intent to remain data dependent by saying asset purchases could be scaled back if economic conditions improve faster than expected, and inflation rises towards the Fed's objective. However, the Fed Chairman also said if financial conditions were to tighten, the current pace of purchases could be maintained for longer.DJ30 +18.90 NASDAQ +9.20 SP500 +4.78 NASDAQ Adv/Vol/Dec 1444/137.2 mln/754 NYSE Adv/Vol/Dec 1928/73.3 mln/740

09:30 am : Crude oil prices were in the red all session before two recent and temporary moves into positive territory. The Aug contract fell as low as $105.12/barrel earlier this morning, and temporarily erased all of those losses.

Just ahead of the weekly inventory data, crude oil was flat at $106.00/barrel. Following the inventory data, which showed a large draw all crude oil, gasoline and distillates inventory, crude oil ticked lower. In current activity, Aug crude is -0.08% at $105.92/barrel.

Natural gas prices have been in the red all session so far as well. Aug natural gas has been inching lower this morning and hit a new session low of $3.64/MMBtu at 8am EST. Following that LoD, nat gas rallied back to the unchanged line, but lost steam and fell to a new LoD of $3.63/MMBtu and is now at $3.64/MMBtu, down 1.1%.

Metals were lower this morning, including gold, silver, copper, palladium and platinum. Overnight, on the London Metals Exchange, aluminum futures rose 0.3% at $1780.00/ton. Meanwhile, iron ore prices are up 2.8% this morning at $126.75/ton.

However, comments from Federal Reserve Chairman Ben Bernanke sent the dollar index straight down, into negative territory, causing gold and silver futures to spike to new session highs (Gold popped about $15/oz to almost $1299.00/oz and silver popped almost $0.50/oz to over $20.00/oz). Aug gold is now +0.4% at $1294.90/oz and Sept silver is +0.6% at $20.05/oz.DJ30 +25.38 NASDAQ +11.68 SP500 +6.08 NASDAQ Adv/Vol/Dec 1618/339.7 mln/698 NYSE Adv/Vol/Dec 2186/142 mln/642

09:15 am : S&P futures vs fair value: +6.30. Nasdaq futures vs fair value: +8.50. The S&P 500 futures trade higher by 0.4%, signaling an upbeat start to the session. Index futures jumped to their highs after the release of Chairman Bernanke's prepared remarks from today's testimony in front of the House Financial Services Committee.

Mr. Bernanke reiterated the Fed's intent to remain data dependent by saying asset purchases could be scaled back if economic conditions improve faster than expected, and inflation rises towards the Fed's objective. However, the Fed Chairman also said if financial conditions were to tighten, the current pace of purchases could be maintained for longer.

While the release of the statement received much of the attention, it coincided with the June housing starts report, which came in well below expectations. Housing starts hit an annualized rate of 836,000 units during June while economists polled by Briefing.com had expected for housing starts to hit an annual rate closer to 958,000. Prior month figures were revised upward to reflect an annualized rate of 928,000 starts. Building permits also disappointed, falling from the prior month's rate of 985,000 to 911,000 for June. That was below the pace of 1,000,000 building permits that had been expected among economists polled by Briefing.com.

On a related note, today's weekly MBA Mortgage Index declined 2.6% to follow last week's 4.0% decrease. This was the fifth negative reading in a row and the ninth decline out of the past ten weeks.

Similar to futures, Treasuries are on their highs with the benchmark 10-yr yield lower by five basis points at 2.48%.

08:59 am : [BRIEFING.COM] S&P futures vs fair value: +4.50. Nasdaq futures vs fair value: +7.50. The S&P 500 futures hover near their highs with a gain of 0.3%.

Asian markets ended in mixed fashion as South Korea's Kospi led with a gain of 1.1% while China's Shanghai Composite underperformed with a loss of 1.0% after the spokesperson for China's ministry of commerce commented on the strengthening Yuan, saying the appreciation of the currency has lowered the country's cost advantage. In addition, the present trade conditions were described as 'severe.' Elsewhere, Japan's ruling LDP party is expected to win 70 seats in the upcoming upper house elections, scheduled for July 21. Regional economic data was limited. China's FDI rose 4.9% to follow the prior increase of 1.0%. South Korea's PPI was unchanged month-over-month (-0.4% prior) while the year-over-year reading declined 1.4% (-2.6% previous). Australia's MI Leading Index ticked up 0.2% month-over-month (0.7% previous).

In Japan, the Nikkei ended higher by 0.1% as Mitsubishi and Softbank led the way with respective gains of 11.1% and 4.9%. On the downside, Tokyo Electric Power fell 3.8%.
Hong Kong's Hang Seng added 0.3% with energy names in the lead. China Shenhua Energy and China Coal Energy gained 5.3% and 3.0%, respectively. Li & Fung was among the laggards, sliding 1.4%.
In China, the Shanghai Composite closed lower by 1.0% as industrial names lagged. Hualing Xingma Automobile and Shanghai Diesel Engine both lost near 6.0%. Property names fared well as Shandong Tyan Home and Wolong Real Estate both jumped 10.0%.

Major European indices hold slim gains after seeing early losses. The Bank of England released the minutes from its latest meeting, revealing a unanimous vote to maintain the key interest rate and the asset purchase program at their respective 0.5% and GBP375 billion. Elsewhere, reports out of German press suggested Greece may face a funding gap of as much as EUR10 billion. The European Commission has since challenged those reports by saying a much smaller gap could emerge next year. Reviewing economic data, Great Britain's claimant count changed surprised to the upside with a decline of 21,200 (-8,000 expected, -16,200 prior). However, the unemployment rate held steady at 7.8%, as expected. In addition, average earnings ex-bonus ticked up 1.0% (1.1% expected, 0.9% prior) while average earnings index with bonus rose 1.7% (1.4% forecast, 1.3% previous). Elsewhere, Spain's industrial new orders declined 1.3% year-over-year (1.0% consensus, 5.3% previous). Also of note, Swiss ZEW Expectations survey came in at 4.8 (6.0 expected, 2.2 previous).

Great Britain's FTSE is higher by 0.1% with miners in the lead. Anglo American, Fresnillo, and Glencore Xstrata are all up between 1.6% and 3.3%. On the downside, Smiths Group is lower by 2.7% after the company issued a profit warning.
In Germany, the DAX holds a gain of 0.4% as ThyssenKrupp leads with a gain of 2.3%. Commerzbank is among the laggards, trading lower by 2.4%.
France's CAC trades up 0.5%. Technology companies are among the leaders with STMicroelectronics and Cap Gemini both up near 1.8%. Energy company Technip leads to the downside with a loss of 2.5%.

08:35 am : S&P futures vs fair value: +1.80. Nasdaq futures vs fair value: +5.00. The S&P 500 futures are higher by 0.1%.

Housing starts hit an annualized rate of 836,000 units during June. Economists polled by Briefing.com had expected for housing starts to hit an annual rate closer to 958,000. Prior month figures were revised upward to reflect an annualized rate of 928,000 starts. As for building permits, they fell from the prior month's rate of 985,000 to 911,000 for June. That was below the pace of 1,000,000 building permits that had been expected among economists polled by Briefing.com.

07:57 am : [BRIEFING.COM] S&P futures vs fair value: -0.30. Nasdaq futures vs fair value: +2.20. U.S. equity futures are little changed after climbing out of the red. The S&P 500 futures are holding their flat line. Market participants are anticipating today's testimony by Ben Bernanke in front of the House Financial Services Committee. Mr. Bernanke's prepared remarks are set to be released at 8:30 ET and the testimony is expected to begin at 10:00 ET.

Looking at overnight developments:

Asian markets ended in mixed fashion. China's Shanghai Composite -1.0%, Japan's Nikkei +0.1%, and Hong Kong's Hang Seng +0.3%.
In regional economic data:
China's FDI rose 4.9% to follow the prior increase of 1.0%.
South Korea's PPI was unchanged month-over-month (-0.4% prior) while the year-over-year reading declined 1.4% (-2.6% previous).
Australia's MI Leading Index ticked up 0.2% month-over-month (0.7% previous).
Looking at news:
The spokesperson for China's ministry of commerce commented on the strengthening Yuan, saying the appreciation of the currency has lowered the country's cost advantage. In addition, the present trade conditions were described as 'severe.'
In Japan, the ruling LDP party is expected to win 70 seats in the upcoming upper house elections, scheduled for July 21.

Major European indices hold modest gains after seeing early losses. Great Britain's FTSE +0.1%, Germany's DAX +0.4%, and France's CAC +0.6%.
Reviewing economic data:
Great Britain's claimant count changed surprised to the upside with a decline of 21,200 (-8,000 expected, -16,200 prior). However, the unemployment rate held steady at 7.8%, as expected. In addition, average earnings ex-bonus ticked up 1.0% (1.1% expected, 0.9% prior) while average earnings index with bonus rose 1.7% (1.4% forecast, 1.3% previous).
Spain's industrial new orders declined 1.3% year-over-year (1.0% consensus, 5.3% previous).
Swiss ZEW Expectations survey came in at 4.8 (6.0 expected, 2.2 previous).
In news:
The Bank of England released the minutes from its latest meeting, revealing a unanimous vote to maintain the key interest rate and the asset purchase program at their respective 0.5% and GBP375 billion.
Reports out of German press suggested Greece may face a funding gap of as much as EUR10 billion. The European Commission has since challenged those reports by saying a much smaller gap could emerge next year.

In U.S. corporate news:

ASML (ASML 89.74, +2.00) is higher by 2.3% after beating on earnings and revenue. In addition, the company issued mixed guidance, expecting third quarter revenue to come in below consensus and full-year revenue to surpass analyst estimates.
Bank of America (BAC 13.95, +0.03) holds a slim gain of 0.2% after reporting an earnings beat on in-line revenue.
Novartis (NVS 72.47, -1.00) is lower by 1.4% after missing on earnings and revenue.

The weekly MBA Mortgage Index declined 2.6% to follow last week's 4.0% decrease. This was the fifth negative reading in a row and the ninth decline out of the past ten weeks.

June housing starts and building permits will be announced at 8:30 ET and the Federal Reserve will release its Beige Book for July at 14:00 ET.

06:50 am : [BRIEFING.COM] S&P futures vs fair value: -3.00. Nasdaq futures vs fair value: -2.00.

06:50 am : Nikkei...14615.04...+15.90...+0.10%. Hang Seng...21371.87...+59.50...+0.30%.

06:50 am : FTSE...6530.50...-25.90...-0.40%. DAX...8162.23...-38.80...-0.50%.

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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