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 Post subject: August 15th Thursday Trade Results - Profit $7255.00
PostPosted: Thu Aug 15, 2013 7:00 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

Price Action Trade Performance for Today: Emini TF ($TF_F) futures @ $570.00 dollars or +5.70 points, Emini ES ($ES_F) futures @ $6525.00 dollars or +130.50 points, Light Crude Oil CL ($CL_F) futures @ $0.00 dollars or +0.00 points, Gold GC ($GC_F) futures @ $160.00 dollars or +1.60 points and EuroFX 6E ($6E_F) futures @ $0.00 dollars or +0.0000 ticks. Total Profit @ $7255.00 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=120&t=1580

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=216&t=1913

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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.

Dow Drops 225 Points

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

NEW YORK (CNNMoney)
The Dow dropped 225 points Thursday, its biggest loss in almost two months.

U.S. stocks were dragged down by disappointing earnings from Wal-Mart and Cisco, which outweighed more encouraging economic news.

The Dow Jones industrial average, S&P 500 and Nasdaq all fell by more than 1.4%.

Wal-Mart (WMT, Fortune 500)reported lower-than-expected second-quarter U.S. sales early Thursday.

That report came on the heels of news from Cisco (CSCO, Fortune 500) that sent its shares plunging. The network equipment maker revealed plans to cut 4,000 jobs, citing difficult economic conditions.

And on a day when the broader market sell-off was the big story, it's worth noting that the exchange-traded fund for the S&P 500 (SPY) was one of the top-trending tickers on StockTwits. Traders had a lot to say about stocks and a possible market correction on the horizon.

theoptiondon: $SPY under 167 could be recipe for a mini crash to 160 Bearish

PatrickCANo1: $SPY Right about now there are 1,000 mgrs on vacation calling in sell orders Bearish

Markets in Europe and Asia closed in the red as well. But gold prices jumped. The metal often spikes in times of market turmoil as investors view it to be a safer bet in uncertain times. But prices have been down sharply this year and several well-known hedge fund managers have lowered their exposure to the metal.

On the economic front, the U.S. government said jobless claims dropped by more than expected to 320,000, a decrease of 15,000 from the previous week's revised figure. The Labor Department said the consumer price index rose 0.2%, in line with expectations. CPI is a key gauge of inflation.

Investors continue to look for more clues on when the Federal Reserve will start to tighten monetary policy.

Chris Beauchamp, analyst with IG in London, said investors are still nervous about whether or not the Fed will begin to pull back on, or taper, its bond-buying program next month.

Along those lines, the yield on the 10-year Treasury bonds jumped to a two-year high. This may be a sign that investors are expecting the Fed to scale back its stimulus efforts sooner rather than later.

* China's underdog market surges

In other corporate news, J.C. Penney (JCP, Fortune 500) shares rose after investment manager George Soros revealed the size of his stake in the embattled retailer.

Shares rose for Kohl's (KSS, Fortune 500) after the company reported a second quarter jump in revenue, despite a drop profit. The retailer also lowered its earnings forecast for the full year.

Shares of Gannett (GCI, Fortune 500) slid after Berkshire Hathaway (BRKA, Fortune 500), the investment firm run by billionaire Warren Buffett, unloaded its shares of the newspaper giant. Berkshire disclosed its holdings in a quarterly filing with the Securities and Exchange Commission, which was released Thursday.

Berkshire bought shares of Dish Network (DISH, Fortune 500), and Suncor Energy (SU) and ramped up its ownership of General Motors (GM, Fortune 500) in the second quarter.

Shares of Smith & Wesson (SWHC) fell more than 8% after KeyBanc Capital Markets downgraded the gun manufacturer's stock from Buy to Hold. But one trader on StockTwits felt the drop in price was unjustified.

zackisherenow: $SWHC 500 shares at 11.25 and 500 shares at 10.99. Got 2500 shares now at an avg of 11.68. This is THE biggest overreaction of the year.

U.S. Stocks Slammed; Dow Drops Over 200 points

By Kate Gibson, MarketWatch

NEW YORK (MarketWatch) — U.S. stocks on Thursday thudded lower for a second day, with the Dow industrials posting their first back-to-back triple-digit drop since June, as Treasury yields spiked to 2011 highs and Wal-Mart Stores Inc. and Cisco Systems Inc. cut their forecasts.

Several upbeat economic reports spurred thinking that the Federal Reserve will begin to scale back its monthly bond buys in September.

The Dow Jones Industrial Average (DJI:DJIA) dropped 225.47 points, or 1.5%, to end at 15,112.19, with Cisco Systems Inc. (NASDAQ:CSCO) pacing the drop, off 7.2%. Of the Dow’s 30 components, 28 fell. Wal-Mart’s shares were down 2.6%. Read more on Wal-Mart

The S&P 500 index (SNC:SPX) lost 24.07 points, or 1.4%, to 1,661.32, with all its 10 major sectors ending lower; among them, consumer discretionary and technology were slammed the hardest. The Nasdaq Composite (NASDAQ:COMP) declined 63.16 points, or 1.7%, to 3,606.12.

Around 721 million shares traded on the New York Stock Exchange. Composite volume surpassed 3.3 billion.

Ahead of Wall Street’s open, Wal-Mart (NYSE:WMT) reduced its outlooks for 2013 sales and profit, with the world’s biggest retailer saying consumers are spending less. That warning came the morning after network-equipment maker Cisco Systems (NASDAQ:CSCO) offered a less-than-expected revenue outlook.

“Cisco speaks to enterprise and service-provider spending, so that outlook is cloudy. And even more disappointing, if you look at almost two-thirds of the economy is driven by the consumer, and it looks like the consumer took the month of July off,” said Art Hogan, a market strategist at Lazard Capital Markets, noting that Wal-Mart’s results come a day after another retailer, Macy’s Inc. (NYSE:M) , reported an unexpected drop in sales and cut its full-year profit targets.

The poor performance by retailers last month is also a concern heading into a seasonally important part of the year, as “we don’t want it to extend into back-to-school and holiday spending,” said Hogan.

But the market’s steep fall should also be viewed in the context of the calendar, offered Hogan, who said: “It’s August, and volumes are still dreadfully low. Low volume leads to high volatility.”
Yields on fast track?

Thursday’s economic reports including one showing an improving labor market helped cement the belief that the Federal Reserve would cut monetary stimulus soon.

“Judging by the reaction in bond yields, the overall reaction is positive for the economy and negative for Fed asset purchases,” Dan Greenhaus, chief global strategist at BTIG LLC, wrote in emailed commentary. The 10-year Treasury yield (ICAPSD:10_YEAR) was lately up 4 basis points at 2.763%.

* Video - Jobless claims lowest since 2007

Brendan Conway joins the News Hub with a look at today's market action. Photo: Getty Images.

“The continued reduction in the pace of firings to the slowest since the fall of 2007 should point the Fed further into the camp of taper sooner rather than later, and it’s likely why the 10-year yield touched 2.80% immediately after versus 2.71% just yesterday and why the S&P futures are at the low of the morning,” said Peter Boockvar, chief market analyst at the Lindsey Group.

Stocks fell and the yield on the 10-year Treasury note surged after economic reports had consumer prices climbing 0.2% in July and the number of Americans filing for new jobless benefits falling by 15,000 to 320,000 last week.

“The 10-year Treasury market has added 120 basis points to its yield since the tapering conversation began on May 22. Is it the notional amount of 2.8% that has us nervous? No, it’s the fact that we added 120 basis points in 45 days. The world doesn’t stop turning with 3% on the 10-year, it’s the pace at which we got there,” said Hogan.

The U.S. dollar (NYE:DXY) turned lower against the currencies of major U.S. trading partners, including the euro (ICAP:EURUSD) and the yen (ICAP:USDJPY)

Gold for December delivery (CNS:GCZ3) rose $27.50, or 2%, to $1,360.90 an ounce.

The price of oil climbed, with futures for September delivery (NMN:CLU3) up 48 cents, or 0.5%, at $107.33 a barrel.

Getty Images Enlarge Image
Wal-Mart lowers forecast, reports sales slowed in second quarter.

In other economic news, the New York Fed’s “Empire State” index fell to 8.2 in August from 9.5 in July, worse than expected. And the Federal Reserve reported industrial production held steady in July, while June’s growth was revised lower.

The Philadelphia Federal Reserve’s index of regional manufacturing activity fell in August after hitting a more-than two-year high in July.

Another report had home-builder confidence in August rising to a near eight-year high.

The Dow on Wednesday posted its first triple-digit drop since June as investors fretted over a recent spike in borrowing costs.

Image



4:10 pm : The S&P 500 ended lower by 1.4% as broad-based weakness persisted throughout the session. Stocks slumped at the open after disappointing guidance from Cisco Systems (CSCO 24.48, -1.89) and Wal-Mart (WMT 74.41, -1.99) combined with a spike in Treasury yields pressured the major averages.

Networking company Cisco reported a slight earnings beat, but its cautious demand outlook coupled with news of 4,000 layoffs caused the stock to slump 7.2%.

Separately, Wal-Mart fell 2.6% after reporting in-line results, and saying current quarter same-store sales are expected to be essentially flat.

In addition, the 10-yr yield spiked to its highest level in two years after today's jobless claims, in-line inflation, and the better-than-expected Empire Manufacturing data were perceived as supportive of the Fed cutting back on its asset purchases as early as September. The benchmark 10-yr yield ended higher by six basis points at 2.78% after climbing as high as 2.82%. Although yields ended off their highs, stocks settled on their lows.

All ten sectors finished in the red with seven of ten groups posting losses larger than 1.0% while, energy (-0.7%), materials (-0.8%), and telecom services (-0.9%) outperformed.

Of the three sectors, the materials space staged a notable partial recovery off its opening lows as gold miners contributed to the rebound. The Market Vectors Gold Miners ETF (GDX 30.43, +1.73) jumped 6.0% as gold futures advanced 2.2% to $1362.50 per troy ounce. Despite today's decline, the materials sector continues to hold an August gain of 1.4%.

Outside of materials, only the technology sector remains in positive territory for the month (+0.6%). However, the group led to the downside today as all top components registered losses. High-beta chipmakers underperformed as well with the PHLX Semiconductor Index falling 2.2%.

The technology sector was followed closely by the discretionary space. Although the sector tumbled 1.8%, homebuilders registered broad gains. The iShares Dow Jones US Home Construction ETF (ITB 21.30, +0.49) gained 2.4% after declining steadily through the first half of the month. Despite today's advance, the home builders ETF remains lower by 4.4% in August, and essentially flat for the year. The industry group rallied today after the August NAHB Housing Market Index rose to 59 from 56.

Today's opening sell off caused the CBOE Volatility Index (VIX 14.55, +1.51) to break out of its recent range after spending the entire month between 11.83% and 13.91%. The near-term volatility measure ended at its best level since mid-July as participants scrambled in search of protection.

Economic data was plentiful. The initial claims level fell to 320,000 for the week ending August 10 from an upwardly revised 335,000 (from 333,000) for the week ending August 3. That was the lowest initial claims reading since October 2007. The Briefing.com consensus expected the initial claims level to increase to 339,000. More importantly, the Department of Labor announced that there was nothing unusual in the claims data. The large drop in layoffs was a result of improvement in labor conditions and not from statistical anomalies.

Industrial production was flat in July after increasing a downwardly revised 0.2% (from 0.3%) in June. The Briefing.com consensus expected industrial production to increase 0.4%. The report serves as a prime example of why we do not follow the ISM and regional manufacturing surveys very closely.

According to the surveys, production levels in July increased to their highest point since May 2004 and had the largest one-month gain since June 2009. If these surveys accurately portrayed the manufacturing sector, then the manufacturing component of industrial production should have risen by at least 1.0% in July. In actuality, manufacturing production declined 0.1% in July after rising a downwardly revised 0.2% (from 0.3%) in June.

Moving on, the Philadelphia Fed's Business Outlook dropped from 19.8 in July to 9.3 in August. The consensus expected the index to fall to 10.0.

Also of note, consumer prices rose 0.2% in July. That was down from a 0.5% gain in June and exactly what the Briefing.com consensus expected. Energy prices were up 0.2% after increasing 3.4% in June. Gasoline costs increased 1.0%, but much of that gain was offset by a 2.8% decline in residential natural gas prices. Food prices rose 0.1%. Excluding food and energy, core prices rose 0.2% for a third consecutive month, which is what the consensus expected.

Tomorrow, July housing starts, building permits, second quarter productivity, and unit labor costs will all be reported at 8:30 ET. In addition, the preliminary reading of the August Michigan Consumer Sentiment Survey will cross the wires at 9:55 ET.DJ30 -225.47 NASDAQ -63.16 SP500 -24.07 NASDAQ Adv/Vol/Dec 479/1.68 bln/2069 NYSE Adv/Vol/Dec 456/721.2 mln/2638

3:35 pm :

Sep crude oil rose for a fifth consecutive session as supply concerns increased over the escalating violence in Egypt. The energy component traded as high as $107.85 per barrel and settled with a 0.4% at $107.34 per barrel.
Sep natural gas gained support on inventory data that showed a build of 65 bcf when a larger build of 69-70 bcf was anticipated. Prices rose as high as $3.43 per MMBtu from a session low of $3.31 per MMBtu.
Natural gas settled 2.4% higher at $3.42 per MMBtu.
Dec gold and Sep silver slipped to their respective session lows of $1317.90 and $21.70 per ounce following numerous economic data released this morning that included Initial Claims and CPI. However, both metals found buying support and lifted into positive territory.
Gold surged in a late rally to a session high of $1367.90 per ounce as chatter circulated that a tier 1 firm was buying gold and while the dollar index sold off sharply. It settled with a 0.4% gain at $1359.70 per ounce.
Silver popped to a session high of $23.19 per ounce and settled with a solid 5.2% gain at $22.91 per ounce.

DJ30 -224.66 NASDAQ -64.38 SP500 -24.08 NASDAQ Adv/Vol/Dec 463/1455.7 MLN/2052 NYSE Adv/Vol/Dec 438/525 MLN/2647

3:05 pm : The S&P 500 trades lower by 1.4% as today's session enters its final hour. The equity market saw an active open before spending the remainder of the day within a seven point range.

Meanwhile, the foreign exchange market was relatively subdued in morning action before notable dollar weakness took hold two hours ago. The Dollar Index saw a tight range for most of the session, but the recent drop has action on track to post a loss of 0.6%. The afternoon slide has pushed the index onto the 81.20 level with trade holding just above a two-month closing low. The greenback surrendered some ground to the British pound and the Japanese yen.

Pound/dollar is higher by 0.9% at 1.5646 with today's bid catapulting trade above the 200-day moving average. Sterling bulls took charge following today's solid British retail sales number, and now have their sights set on the June highs near 1.5750.

Elsewhere, dollar/yen is lower by 0.5% at 97.35. The pair saw a morning spike in reaction to better-than-expected data before reversing just above the 98.50 level.DJ30 -214.01 NASDAQ -59.38 SP500 -23.28 NASDAQ Adv/Vol/Dec 478/1.31 bln/2037 NYSE Adv/Vol/Dec 450/471.6 mln/2626

2:30 pm : The S&P 500 has slipped to a fresh low as buying interest remains scarce. At its current level, the S&P is just three points above its 50-day moving average, with the index poised to slip below this key level for the first time since July 5.

The discretionary sector has widened its loss to 2.0%, but home builders continue to hover near their highs. The iShares Dow Jones US Home Construction ETF (ITB 21.17, +0.36) is higher by 1.7%.

Interestingly, Treasuries have received some intraday interest after selling off early in the session. The benchmark 10-yr yield is higher by three basis points at 2.75% after crossing above 2.80% at the open.DJ30 -198.30 NASDAQ -57.64 SP500 -21.86 NASDAQ Adv/Vol/Dec 470/1.20 bln/2036 NYSE Adv/Vol/Dec 423/430.1 mln/2644

2:00 pm : The S&P 500 remains near its lows after the late-morning rebound attempt faltered and the benchmark index returned to its lows during early afternoon action.

As the broader market slipped back to its lows, the CBOE Volatility Index (VIX 14.50, +1.46) returned near its highest level of the day.

Notably, while the broader market was pressured back to its lows, the materials sector continued its steady climb off the morning lows. Gold miners have made a contribution to the rebound as the Market Vectors Gold Miners ETF (GDX 30.03, +1.33) adds 4.8%. On a related note, gold futures are higher by 2.1% at $1361.40 per troy ounce while silver futures have surged 5.3% to $22.93 per troy ounce.DJ30 -215.91 NASDAQ -59.93 SP500 -23.46 NASDAQ Adv/Vol/Dec 508/1.11 bln/1979 NYSE Adv/Vol/Dec 407/389.2 mln/2662

1:25 pm : The major indices have been beaten back toward their lows for the day as sellers have remained in control of the action. From an economic sector standpoint, there isn't anything that is strong; rather, sector positioning is couched in terms of relative strength. On that note, the telecom services (-0.7%) and energy (-0.7%) sectors are down the least and are outperforming the broader market.

The energy complex is being watched closely these days with the political uprising in Egypt that has grown increasingly violent. Thus far, there aren't any reports that suggest there has been difficulty moving oil through the Suez Canal. Oil prices, nonetheless, have perked up some. Brent crude futures are up 0.8% today at $109.69/bbl.

The remaining pockets of actual strength today are gold ($1366.10/oz., +$32.70), which has been helped by a weaker dollar, home builders (ITB 21.13, +0.32), which have been helped by the encouraging NAHB Housing Market Index report and volatility (VIX 14.27, +1.23), which has been helped by a heightened sense of uncertainty about the near-term outlook for the market.
DJ30 -223.40 NASDAQ -59.85 SP500 -24.07 NASDAQ Adv/Vol/Dec 497/1.03 bln/1973 NYSE Adv/Vol/Dec 358/358 mln/2694

12:55 pm : Equities have spent the entire first-half of the session in negative territory as broad-based weakness continues into the afternoon. A confluence of factors has stocks on the defensive:

Networking company Cisco Systems (CSCO 24.75, -1.63) issued cautious guidance, and announced cutting 4,000 jobs or 5.0% of its workforce.
Retailer Wal-Mart (WMT 74.60, -1.80) also sounded warning bells regarding the strength of consumer spending, and said it expects current quarter same-store sales to be relatively flat.
Treasury yields climbed to a two-year high in reaction to better-than expected jobless claims, in-line inflation, and the better-than-expected Empire Manufacturing data, suggesting participants believe the Federal Reserve is on track to dial down the pace of its asset purchases at the September meeting. The benchmark 10-yr yield is higher by six basis points at 2.78%.

All ten sectors hold midday losses with eight of ten groups sporting declines larger than 1.0%.

The consumer discretionary (-1.6%) sector has displayed significant weakness, but homebuilders trade higher across the board. The iShares Dow Jones US Home Construction ETF (ITB 21.13, +0.32) holds a gain of 1.0% after declining steadily through the first-half of the month. Despite today's advance, the home builders ETF remains lower by 5.2% in August. The rate-sensitive industry group has rallied today after the August NAHB Housing Market Index rose to 59 from 56, and despite Treasury yields climbing to their highest level in two years.

Elsewhere, the technology sector (-1.4%) also trails behind the broader market, but its top component, Apple (AAPL 501.71, +3.21) trades up 0.6%.

The opening sell off has caused the CBOE Volatility Index (VIX 14.10, +1.06) to break out of its recent range after spending the entire month of August between 11.83% and 13.91%. Currently, the near-term volatility measure sits at its best level since mid-July.

Today's economic data was plentiful. The initial claims level fell to 320,000 for the week ending August 10 from an upwardly revised 335,000 (from 333,000) for the week ending August 3. That was the lowest initial claims reading since October 2007. The Briefing.com consensus expected the initial claims level to increase to 339,000. More importantly, the Department of Labor announced that there was nothing unusual in the claims data. The large drop in layoffs was a result of improvement in labor conditions and not from statistical anomalies.

Industrial production was flat in July after increasing a downwardly revised 0.2% (from 0.3%) in June. The Briefing.com consensus expected industrial production to increase 0.4%. The report serves as a prime example of why we do not follow the ISM and regional manufacturing surveys very closely.

According to the surveys, production levels in July increased to their highest point since May 2004 and had the largest one-month gain since June 2009. If these surveys accurately portrayed the manufacturing sector, then the manufacturing component of industrial production should have risen by at least 1.0% in July. In actuality, manufacturing production declined 0.1% in July after rising a downwardly revised 0.2% (from 0.3%) in June.

Separately, the Philadelphia Fed's Business Outlook dropped from 19.8 in July to 9.3 in August. The consensus expected the index to fall to 10.0.

Also of note, consumer prices rose 0.2% in July. That was down from a 0.5% gain in June and exactly what the Briefing.com consensus expected. Energy prices were up 0.2% after increasing 3.4% in June. Gasoline costs increased 1.0%, but much of that gain was offset by a 2.8% decline in residential natural gas prices. Food prices rose 0.1%. Excluding food and energy, core prices rose 0.2% for a third consecutive month, which is what the consensus expected.
DJ30 -188.91 NASDAQ -50.58 SP500 -20.37 NASDAQ Adv/Vol/Dec 543/943.9 mln/1921 NYSE Adv/Vol/Dec 390/323.6 mln/2654

12:30 pm : The S&P 500 trades lower by 1.1% as the slow rebound continues. The discretionary sector (-1.5%) is the weakest performer of the day, but home builders trade broadly higher. The iShares Dow Jones US Home Construction ETF (ITB 21.00, +0.19) is higher by 0.9% after declining steadily through the first-half of the month. Despite today's gain, the home builders ETF remains lower by 5.8% in August.

The rate-sensitive industry group has rallied today after the August NAHB Housing Market Index rose to 59 from 56, and despite Treasury yields climbing to their highest level in two years. The benchmark 10-yr yield is up six basis points at 2.78%.DJ30 -179.80 NASDAQ -46.81 SP500 -19.09 NASDAQ Adv/Vol/Dec 513/872.1 mln/1930 NYSE Adv/Vol/Dec 388/298.1 mln/2658

12:05 pm : Recent action saw the major averages continue their slow grind back from the early lows. So far, the S&P 500 has been able to reclaim just seven points, and the index has 19 more to go before returning to its flat line.

Eight of ten sectors continue to hold losses of more than 1.0% while energy (-0.4%) and telecom services (-0.5%) outperform. The energy sector is among the top-weighted groups and its afternoon performance may have an impact over the direction of the broader market.

Meanwhile, the yield-sensitive telecom services sector trades ahead of the broader market, but remains the weakest performer this quarter (-2.9%).DJ30 -194.50 NASDAQ -49.31 SP500 -20.41 NASDAQ Adv/Vol/Dec 483/808.2 mln/1943 NYSE Adv/Vol/Dec 356/274.5 mln/2671

11:35 am : Equities remain near their lows as the major averages try to stage a sustainable rebound effort after the first effort was met with resistance. The technology sector (-1.5%) remains as the weakest performer of the day with nearly all of its components trading in the red after Cisco Systems (CSCO 24.43, -1.94) shared its cautious demand outlook. In addition, Wal-Mart (WMT 74.93, -1.47) also made similar-sounding remarks to provide a one-two punch.

Today's aggressive selling has caused the CBOE Volatility Index (VIX 14.18, +1.14) to break out of its recent range after spending the entire month of August between 11.83% and 13.91%. Currently, the near-term volatility measure sits at its best level since mid-July.DJ30 -172.80 NASDAQ -51.36 SP500 -19.43 NASDAQ Adv/Vol/Dec 464/713.4 mln/1940 NYSE Adv/Vol/Dec 330/242.2 mln/2676

11:00 am : The major averages halted their opening slide 40 minutes into the session, but the subsequent rebound effort has been limited so far with the S&P 500 trading just two points above its lowest level of the day. Market breadth continues to reflect a strong negative bias as declining issues on the NYSE outpace advancers by a 9.8:1 ratio.

Eight of ten sectors now trade with losses of more than 1.0% as technology (-1.8%) continues leading to the downside. Cisco Systems (CSCO 24.43, -1.95) remains near its lows while other large cap names also register losses. In addition, chipmakers are broadly lower with the PHLX Semiconductor Index down 2.0%.

With all 10 sectors in the red, only energy (-0.8%), telecom services (-0.7%), and utilities (-1.0%) trade ahead of the broader market.DJ30 -213.40 NASDAQ -59.34 SP500 -23.63 NASDAQ Adv/Vol/Dec 406/603.5 mln/1975 NYSE Adv/Vol/Dec 251/206.9 mln/2728

10:35 am : The dollar index was been in negative territory during today's session before spiked into the black following this morning's CPI/Initial Claims data. The spike caused precious metals to drop to new session lows, but really didn't affect energy.

Dec gold is now -0.6% at $1325.10/oz, while Sept silver is +0.4% at $21.87/oz.

Crude oil was in positive territory all session, before just dropping into the red. Crude began to slide lower shortly after the open of pit trading and fell as low as $106.63/barrel. Sept crude oil is now +0.1% at $106.94/barrel.

Natural gas futures gained steam this morning, continued to extend gains heading into the 10:30am ET EIA weekly natural gas inventory data and then spiked to new session highs following the data (build came in smaller-than-expected). Sept nat gas is now +1.4% at $3.39/MMBtu.
DJ30 -192.23 NASDAQ -54.75 SP500 -21.96 NASDAQ Adv/Vol/Dec 407/484.6 mln/1915 NYSE Adv/Vol/Dec 248/170 mln/2700

10:00 am : The major averages have continued their opening slide and the S&P 500 now trades lower by 1.3%. Technology and discretionary shares continue leading to the downside with both sectors off 1.7% apiece.

Just reported, the August NAHB Housing Market Index rose to 59 from 56. Today's report was ahead of the 57 expected by the Briefing.com consensus.

Separately, the August Philadelphia Fed Survey fell to 9.3 from 19.8. Economists polled by Briefing.com had expected that the Survey would slip to 10.0.DJ30 -202.00 NASDAQ -58.17 SP500 -22.26 NASDAQ Adv/Vol/Dec 384/289.7 mln/1888 NYSE Adv/Vol/Dec 231/114.3 mln/2677

09:45 am : The S&P 500 began the session in the red as all ten sectors registered opening losses. The early sell off followed cautious guidance from Cisco Systems (CSCO 24.36, -2.02) and Wal-Mart (WMT 74.15, -2.25). In addition, better-than-expected initial claims, in-line inflation data, and above-consensus Empire Manufacturing Index can all be viewed as strengthening the Fed's case to begin tapering as early as September.

Five of ten sectors trade with losses of more than 1.0% with technology (-1.4%) and consumer discretionary (-1.4%) leading to the downside. Meanwhile, energy (-0.7%) and telecom services (-0.4%) outperform.

Treasuries have ticked up off their lows, but the benchmark 10-yr yield remains elevated by seven basis points at 2.79% after jumping to its highest level since August, 2011.

August NAHB Housing Market Index and the Philadelphia Fed Survey will both be reported at 10:00 ET.DJ30 -153.20 NASDAQ -42.83 SP500 -16.34 NASDAQ Adv/Vol/Dec 382/183.1 mln/1818 NYSE Adv/Vol/Dec 239/83.4 mln/2595

09:19 am : [BRIEFING.COM] S&P futures vs fair value: -14.30. Nasdaq futures vs fair value: -34.80. The S&P 500 futures trade lower by 0.8% as the major averages look to begin today's session in the red. The futures market began showing weakness after the close of yesterday's session when Cisco Systems (CSCO 24.40, -1.99) issued cautious guidance along with its slight earnings beat. In addition, the company announced it is cutting 5.0% of its workforce.

The weakness has continued into the morning with Wal-Mart (WMT 74.48, -1.92) adding to the pressure after the retailer reported in-line results and lowered its full-year 2014 earnings and revenue guidance below consensus.

Futures fell to their lows in reaction to better-than expected jobless claims data, which combined with in-line inflation data and the better-than-expected Empire Manufacturing reading, strengthens the argument for the potential tapering of stimulus.

Just reported, July industrial production was unchanged while the Briefing.com consensus expected an uptick of 0.4%. Meanwhile, capacity utilization hit 77.6%, which was worse than the 78.0% expected by the Briefing.com consensus.

Treasuries are near their lows with the benchmark 10-yr yield higher by six basis points at 2.77%.

09:00 am : S&P futures vs fair value: -14.50. Nasdaq futures vs fair value: -36.30. The S&P 500 futures trade lower by 0.8%. Equity futures fell to morning lows on the heels of the better-than-expected jobless claims data, which combined with in-line inflation data and the better-than-expected Empire Manufacturing reading, strengthens the argument for the potential tapering of stimulus.

Asian markets ended lower with Japan's Nikkei leading to the downside (-2.1%) after chief cabinet secretary Yoshihide Suga said reports of Prime Minister Shinzo Abe calling for lower corporate tax rate are erroneous. In addition, finance minister Taro Aso said lowering the tax rate would have a minimal impact. Regional economic data was limited to just a handful of releases. Japan's weekly foreign bonds buying report indicated net purchases of JPY1.61 trillion to follow last week's net purchases of JPY690.30 billion. Australia's MI inflation expectations declined to 2.3% from 2.6%. New Zealand's Business PMI rose to 59.5 from 54.7. Lastly, Singaporean retail sales fell 4.0% year-over-year (3.8% expected, 3.1% prior). Looking at the currencies: USDCNY slipped to 6.1125; USDINR ticked up to 61.317; USDJPY is higher near 98.09; AUDUSD is up near .9154.

In Japan, the Nikkei closed lower by 2.1% as producers of basic materials led to the downside. Kuraray, Nissan Chemical Industries, and Pacific Metals all lost between 4.1% and 6.2%. On the upside, Nikon advanced 1.9%.
Hong Kong's Hang Seng ended little changed as energy names lagged. China Coal Energy and China Shenhua Energy lost 4.3% and 2.2%, respectively. Distributor Li & Fung surged 11.6% on strong guidance.
In China, the Shanghai Composite shed 0.9% as financials and health care underperformed. China Vanke fell 1.8% and Jiangsu Kanion Pharmaceutical slumped 6.3%.

Major European indices trade near their lows in an otherwise quiet session with many participants away from trading desks for Assumption Day. Economic data was to a handful of data points from Great Britain as retail sales rose 1.1% month-over-month (0.6% expected, 0.2% previous) while the year-over-year reading increased 3.0% (2.5% forecast, 1.9% prior). Core retail sales increased 1.1% month-over-month (0.6% consensus, 0.3% previous) while the year-over-year reading indicated growth of 3.1% (2.7% expected, 1.8% prior).

Great Britain's FTSE is lower by 1.4% as consumer discretionary names lag. EasyJet and TUI Travel are both down near 3.7%. On the upside, Imperial Tobacco Group is higher by 3.3% after the company said it will launch an alternative nicotine product in 2014.
In Germany, the DAX trades down 0.8% as 25 of 30 components register losses. Utilities are among the laggards with E.ON and RWE lower by 0.4% and 3.7%, respectively. Commerzbank is the top performer with a gain of 1.2%.
France's CAC is off by 0.7% as materials underperform. ArcelorMittal, Lafarge, and Vallourec are all down between 1.2% and 2.0%.

In domestic economic news, the June net long-term TIC flows report indicated a $66.9 billion outflow of foreign capital from U.S. denominated assets. This follows the prior month's $27.0 billion outflow.

08:35 am : [BRIEFING.COM] S&P futures vs fair value: -15.00. Nasdaq futures vs fair value: -37.00. The S&P 500 futures trade lower by 0.8%.

The latest weekly initial jobless claims count totaled 320,000, which was lower than the 339,000 that had been expected by the Briefing.com consensus. Today's tally was below the revised prior week count of 335,000. As for continuing claims, they fell to 2.969 million from 3.023 million.

July consumer prices rose 0.2%, in-line with the Briefing.com consensus. In addition, core prices rose 0.2%, also in line with the Briefing.com consensus.

Lastly, the Empire Manufacturing Survey for August registered a reading of 8.2, which was down from the prior month's reading of 9.46. Economists polled by Briefing.com had expected that the survey would slip to 6.0.

07:55 am : [BRIEFING.COM] S&P futures vs fair value: -10.70. Nasdaq futures vs fair value: -27.80. U.S. equity futures hover near their lows with the S&P 500 futures down 0.6%. Meanwhile, Nasdaq futures underperform with a loss of 0.7% after Cisco Systems (CSCO 24.31, -2.07) issued cautious guidance.

Reviewing overnight developments:

Asian markets ended mostly lower. China's Shanghai Composite -0.9%, Japan's Nikkei -2.1%, and Hong Kong's Hang Seng ended unchanged.
In regional economic data:
Japan's weekly foreign bonds buying report indicated net purchases of JPY1.61 trillion to follow last week's net purchases of JPY690.30 billion.
Australia's MI inflation expectations declined to 2.3% from 2.6%.
New Zealand's Business PMI rose to 59.5 from 54.7.
Singaporean retail sales fell 4.0% year-over-year (3.8% expected, 3.1% prior)
Looking at news:
Japan's chief cabinet secretary Yoshihide Suga said reports of Prime Minister Shinzo Abe calling for lower corporate tax rate are erroneous. In addition, finance minister Taro Aso said lowering the tax rate would have a minimal impact.

Major European indices trade near their worst levels of the session. France's CAC -0.5%, Germany's DAX -0.7%, and Great Britain's FTSE -1.2%.
Economic data was limited:
Great Britain's retail sales rose 1.1% month-over-month (0.6% expected, 0.2% previous) while the year-over-year reading increased 3.0% (2.5% forecast, 1.9% prior). Core retail sales increased 1.1% month-over-month (0.6% consensus, 0.3% previous) while the year-over-year reading indicated growth of 3.1% (2.7% expected, 1.8% prior).
In news:
Today's participation in the European session is limited with many participants away due to Assumption day.
Great Britain's retail sales report posted its best reading since January 2011, but the FTSE trails behind the remaining indices.

In U.S. corporate news:

Cisco Systems (CSCO 24.31, -2.07) is -7.8% after beating its earnings expectations by one cent and guiding first quarter revenue below consensus. In addition, the company said it will reduce its workforce by about 5.0%.
NetApp (NTAP 40.01, -2.32) is -5.5% after reporting better-than-expected earnings on below-consensus revenue.
Kohl's (KSS 51.20, +0.36) is +0.7% after reporting in-line earnings and revenue and guiding third quarter earnings below consensus.
Wal-Mart (WMT 75.00, -1.40) is -1.8% following its in-line earnings on below-consensus revenue. The retailer also lowered its full-year 2014 earnings and revenue guidance below analyst expectations.

Weekly initial claims, July CPI, core CPI, and August Empire Manufacturing will all be reported at 8:30 ET. June net long-term TIC flows will be released at 9:00 ET while July industrial production and capacity utilization will be reported at 9:15 ET. The busy day of data will be topped off with the 10:00 ET release of the August Philadelphia Fed Survey and the NAHB Housing Market Index.

06:45 am : [BRIEFING.COM] S&P futures vs fair value: -9.00. Nasdaq futures vs fair value: -25.00.

06:45 am : Nikkei...13752.94...-297.20...-2.10%. Hang Seng...22539.25...-1.90...0.00.

06:45 am : FTSE...6542.40...-45.00...-0.70%. DAX...8388.78...+49.30...-0.60%.

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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