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 Post subject: September 18th Wednesday Trade Results - Profit $9077.50
PostPosted: Wed Sep 18, 2013 7:18 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 @ $550.00 dollars or +5.50 points, Emini ES ($ES_F) futures @ $7687.50 dollars or +153.75 points, Light Crude Oil CL ($CL_F) futures @ $840.00 dollars or +0.84 points, Gold GC ($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 @ $9077.50 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 chat room. You can read today's 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=121&t=1605

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=219&t=1973

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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/BOE/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, S&P Hit Record After Fed Holds Off On Taper

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

NEW YORK (CNNMoney)
The Federal Reserve is not going to slow down the pace of its bond purchases yet. And that was just what investors wanted to hear.

The S&P 500 immediately jumped to a new record high, and the Dow quickly followed. The Nasdaq also moved up after the Fed's surprise announcement. All three indexes closed up more than 1%.

Fed chair Ben Bernanke added fuel to Wednesday's stock rally during his press conference.

Bernanke laid out plans to maintain the central bank's "highly accommodative monetary policy" for the foreseeable future, even if the Fed eventually chooses to taper.

Bond yields, which have been rising lately, slid back as well as investors bought more bonds. The 10-year Treasury yield fell to 2.71% from 2.87% earlier in the day.

The Fed's moves also pushed down the dollar and drove up commodities. Gold prices spiked more than 4% following the announcement. Oil prices rose more than 2%.

* See what will your monthly mortgage will be

Fed surprises: Many investors had expected the Fed to announce Wednesday that it was finally ready to begin cutting back -- or taper -- its stimulus measures.

The improving economy and falling unemployment rate was expected to be enough of a catalyst for the Fed to ease its so-called quantitative easing. The Fed has been buying $85 billion in Treasury bonds and other securities a month.

World reaction? European markets and Asian markets ended the day mixed, but investors around the world could rally on Thursday thanks to the Fed news.

Stocks and currencies in emerging markets such as India and Brazil have taken a big hit over the past few months on fears over potential cutbacks to the Fed's bond buying.

D.A. Davidson chief investment strategist Fred Dickson expects that emerging market currencies could rebound in the next few weeks now that the Fed has put the tapering on hold.

What housing starts? Investors received one disappointing reading on the health of the economy before the Fed meeting though. The Census Bureau's monthly reports on housing starts and building permits came in below expectations.

But corporate news was better. FedEx (FDX, Fortune 500) reported an increase in quarterly sales and net income, compared to a year-ago. Earnings topped forecasts and shares rose on the news.

FedEx gives a blah reading on the economy: Despite a relatively rosy quarter, FedEx, which is often viewed as an economic bellwether because of its global footprint, gave investors an iffy assessment on the economy.

While the stock popped on earnings, some traders were wary of FedEx's longer-term trajectory.

dachria: $FDX Cost cutting as usual helps the bottom line but for how long

retail_guru: For 'tepid' economic growth as Fedex puts it, $FDX US daily volume (inc Express + Ground) +10%. That's pretty good in any book or any macro

Soccer club Manchester United (MANU) reported a jump in quarterly revenue, compared to the prior year, and a surge in net profit, compared to a loss last year. Its stock closed up more than 2%.

Adobe Systems (ADBE) shares hit all-time highs after the software maker reported strong subscription growth for its "Creative Cloud" service on Tuesday.

flounder: $ADBE New pricing model is absolutely amazing. Never could justify high price of Photoshop to buy but can certainly run with monthly subsc Bullish

AnalystWire: Adobe ($ADBE) Target Raised to $58 at Deutsche Bank http://stks.co/bj54

Priceline hits 4 digits: The online travel company's stock surged after the Fed announcement and briefly topped $1000. Priceline (PCLN) closed at $995.09. It's only a psychological milestone. But some investors thought that Apple (AAPL, Fortune 500) (before it began its big pullback late last year) or Google (GOOG, Fortune 500) would win the race to $1,000 a share. Priceline is the first stock in the S&P 500 to ever top $1,000.

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4:20 pm : The S&P 500 jumped 1.2%, closing at a record high of 1,725.52 after the Federal Open Market Committee failed to announce plans to reduce the pace of its asset purchases, as many had expected.

Although the Federal Reserve did not make a tapering announcement, the policy statement did contain updated economic projections. Notably, the forecast for 2013 and 2014 GDP was lowered with the Committee expecting this year's growth between 2.0% and 2.3% (2.3%-2.6% June forecast) and 2014 growth ranging between 2.9% and 3.1% (3.0%-3.5% June projection).

During his press conference, Mr. Bernanke said economic data received since June has not been strong enough to justify scaling back asset purchases just yet. The Fed Chairman also said that recent tightening of financial conditions, as well as the ongoing fiscal uncertainty, played a part in the decision to maintain asset purchases at a pace of $85 billion per month ($40 billion in mortgage-backed securities, $45 billion in Treasuries).

Similar to equities, Treasuries and precious metals welcomed the lack of a tapering announcement. The 10-yr note rallied more than a point, pushing its yield down 14.5 basis points to 2.71%. This marked the lowest close for the benchmark yield since August 12.

Meanwhile, gold spiked 4.4% and silver surged 6.1% to their respective $1366.30 and $23.13 per troy ounce. Miners also received an afternoon boost, and the Market Vectors Gold Miners ETF (GDX 28.25, +2.32) settled higher by 9.0%. On a related note, the materials space ended ahead of the remaining cyclical sectors, posting a gain of 2.3%.

The other commodity-related sector, energy (+1.2%), settled in-line with the S&P even as crude oil surged 2.6% to $108.12 per barrel. Transportation companies appeared largely unaffected by the sharp gain in crude as the Dow Jones Transportation Average climbed 1.5%. FedEx (FDX 116.25, +5.57) spiked 5.1% after reporting an earnings beat and announcing plans to increase its shipping rates by an average of 3.9% next year.

Five of six cyclical sectors ended ahead of the broader market while financials (+1.0%) underperformed. Although major banks fared relatively well, the sharp drop in rates pressured brokerage names like TD Ameritrade (AMTD 26.93, -1.12) and Charles Schwab (SCHW 21.36, -1.28).

Countercyclical sectors ended in mixed fashion as health care (+0.7%) and telecom services (+0.4%) lagged while consumer staples (+1.3%) and utilities (+3.0%) outperformed.

Trading volume reached a one-month high as 820 million shares changed hands on the floor of the New York Stock Exchange.

Today's economic data focused on housing. The weekly MBA Mortgage Index jumped 11.2% to follow its recent string of declines including last week's 13.5% slide.

Separately, housing starts increased 0.9% in August to a seasonally adjusted annual rate of 891,000. That was a bit below the Briefing.com consensus estimate of 910,000, yet that sting was mitigated by the understanding that single-family starts increased a solid 7.0% to 628,000. That was the highest level of single-family starts since February.

Building permits declined 3.8% from July to a seasonally adjusted annual rate of 918,000 (Briefing.com consensus 943,000). That disappointment notwithstanding, the housing starts report carried positive implications for Q3 GDP as the number of units under construction increased 2.2% to 654,000.

Tomorrow, weekly initial claims and the second quarter current account deficit will be reported at 8:30 ET while August existing home sales, August Leading Indicators, and the September Philadelphia Fed Index will all be reported at 10:00 ET.DJ30 +147.21 NASDAQ +37.94 SP500 +20.76 NASDAQ Adv/Vol/Dec 1622/1.78 bln/904 NYSE Adv/Vol/Dec 2644/819.7 mln/443

3:30 pm :

Oct crude oil advanced for the first time in four sessions, gaining support from strong inventory data and the Federal Reserve decision to maintain its current monetary stimulus. The Dept. of Energy reported that for the week ending Sep 13, crude oil inventories had a draw of 4.368 mln barrels when consensus called for a draw of 1.2-1.4 mln barrels. The energy component trended higher after lifting from its session low of $105.60 per barrel. It pushed above the $108.00 per barrel level moments before closing at $108.14 per barrel, or 2.6% higher
Oct natural gas, however, spent its entire session in the red. It slipped to a session low of $3.67 per MMBtu in morning pit action and eventually settled with a 0.8% loss at $3.71 per MMBtu
Dec gold spent most of today's floor trade in negative territory as many investors speculated that the Federal Reserve would announce a modest tapering to the stimulus program. The yellow metal dipped below the $1300 per ounce level but rallied to a session high of $1313.40 per ounce ahead of the close. Unable to hold the gain, it settled 0.1% lower at $1307.40 per ounce
Dec silver also chopped around in the red, slumping to a session low of $21.23 per ounce in late morning action. It managed to inch slightly higher in afternoon pit trade and settled with a 0.9% loss at $21.58 per ounce. The precious metals rallied sharply on the lack of a tapering announcement in electronic trade and continue to push to new HoDs.

DJ30 +148.38 NASDAQ +39.81 SP500 +20.14 NASDAQ Adv/Vol/Dec 1707/1456.5 mln/800 NYSE Adv/Vol/Dec 2612/512 mln/441

3:00 pm : The major averages remain near their highs as Chairman Bernanke continues addressing the media.

During his press conference, Mr. Bernanke said that underlying economic data has not been strong enough to justify pulling back on asset purchases just yet. The Fed Chairman also said that recent tightening of financial conditions as well as the ongoing fiscal uncertainty played a part in the decision to maintain asset purchases at $85 billion per month.

The lack of a tapering announcement has weighed on the dollar, sending the Dollar Index lower by 1.0% to 80.36. The greenback is registering largest losses against currencies like the Australian dollar (-1.4%), British pound (-1.2%), and the Swiss franc (-1.1%).DJ30 +153.24 NASDAQ +35.61 SP500 +21.46 NASDAQ Adv/Vol/Dec 1685/1.26 bln/793 NYSE Adv/Vol/Dec 2557/434.2 mln/466.2 mln

2:30 pm : The S&P 500 holds a gain of 1.1% after notching a fresh all-time high at 1723.33. The major averages surged after the FOMC policy statement did not announce plans to taper.

Although the Federal Reserve did not make a tapering announcement as many had expected, the policy statement did contain updated economic projections. Notably, the forecast for 2013 and 2014 GDP was lowered with the Committee expecting this year's growth between 2.0% and 2.3% (2.3%-2.6% June forecast) and next year's growth falling between 2.9% and 3.1% (3.0%-3.5% June projection).

Treasuries remain near their highs with the benchmark 10-yr yield down ten basis points at 2.75%.DJ30 +115.23 NASDAQ +25.58 SP500 +16.10 NASDAQ Adv/Vol/Dec 1574/1.15 bln/899 NYSE Adv/Vol/Dec 2417/385.8 mln/586

2:05 pm : The major averages spiked to fresh highs in reaction to the latest FOMC policy statement, which indicated no plans to taper in the immediate term. In its statement, the Committee noted that persistent inflation below the 2.0% target could present a risk.

In addition to the surge in equities, Treasuries received significant buying interest that pushed the benchmark 10-yr yield lower by ten basis points to 2.76%. Precious metals also rallied on the news. Gold and silver futures hold respective gains of 2.3% and 2.7% at $1339.50 and $22.36 per troy ounce.

The Fed's decision to maintain its current policy stance has weighed on the dollar. The Dollar Index is lower by 0.8% at 80.50.

The Federal Reserve will remain in focus with Chairman Bernanke scheduled to begin his press conference at 14:30 ET.DJ30 +76.56 NASDAQ +16.96 SP500 +11.22 NASDAQ Adv/Vol/Dec 1346/1.01 bln/1096 NYSE Adv/Vol/Dec 1995/320.6 mln/975

1:25 pm : The final countdown to the FOMC decision draws nearer and the major indices are attempting to pare larger losses that seemed to be fed (no pun intended) by a mix of profit taking and concerns about the specter of yet another nasty negotiation over the budget and the debt limit.

Like yesterday, big moves today have been mostly reserved for individual stocks like FedEx (FDX 113.32, +2.64), which delivered a reassuring earnings report and outlook. From a sector standpoint, losses/gains have been limited to less than 1.0%.

The telecom services sector (-0.9%) leads the list of laggards while the materials sector (+0.8%) heads the list of winners.

The latter list is a short one as 7 out of 10 sectors are trading to the downside at this point. That distribution is apt to change in the wake of the FOMC decision at 2:00 p.m. ET and Fed Chairman Bernanke's press conference at 2:30 p.m. ET.DJ30 -39.49 NASDAQ -3.06 SP500 -1.77 NASDAQ Adv/Vol/Dec 869/839 mln/1569 NYSE Adv/Vol/Dec 1041/255 mln/1889

1:00 pm : The first half of today's session has been very quiet with most participants electing to stand pat ahead of the 14:00 ET release of the FOMC minutes and Chairman Bernanke's subsequent press conference where many expect a modest tapering announcement ($10-$15 billion) to take place.

Trading volume reflects light participation as only 237 million shares have changed hands so far on the floor of the New York Stock Exchange.

Although the major averages trade in the red, their losses have been limited to no more than 0.6%. The small cap Russell 2000 leads to the downside while the S&P 500 is lower by just 0.2%.

Seven of ten sectors trade in the red while technology (+0.3%), materials (+0.6%), and utilities (+0.1%) outperform.

The tech sector has displayed strength from the open with the largest component, Apple (AAPL 462.38, +7.06), contributing to the gain. Other major tech names trade mixed as Intel (INTC 23.68, -0.06) holds a loss of 0.3% while Microsoft (MSFT 32.98, +0.05) adds 0.2%.

Elsewhere, the materials sector sports a modest gain as the relative strength of Monsanto (MON 106.24, +1.81) and major steelmakers like ArcelorMittal (MT 14.17, +0.08) and Nucor (NUE 50.20, +0.73) overshadows the underperformance of miners. The Market Vectors Gold Miners ETF (GDX 25.62, -0.31) is lower by 1.2%.

Other cyclical sectors can be found in the red as discretionary shares (-0.3%) lag while energy (-0.2%), financials (-0.2%), and industrials (-0.2%) trade in-line with the S&P.

Interestingly, the energy sector has been unaffected by a recent surge in oil prices. At this juncture, crude oil trades higher by 1.8% at $107.33 per barrel.

Countercyclical sectors have had a mixed showing as consumer staples (-0.4%), health care (-0.5%), and telecom services (-0.9%) lag while utilities (+0.1%) outperform.

Treasuries hold modest losses with the benchmark 10-yr yield up one basis point at 2.87%.

Today's economic data focused on housing. The weekly MBA Mortgage Index jumped 11.2% to follow its recent string of declines including last week's 13.5% slide.

Separately, housing starts increased 0.9% in August to a seasonally adjusted annual rate of 891,000. That was a bit below the Briefing.com consensus estimate of 910,000, yet that sting was mitigated by the understanding that single-family starts increased a solid 7.0% to 628,000. That was the highest level of single-family starts since February.

Building permits declined 3.8% from July to a seasonally adjusted annual rate of 918,000 (Briefing.com consensus 943,000). That disappointment notwithstanding, the housing starts report carried positive implications for Q3 GDP as the number of units under construction increased 2.2% to 654,000.DJ30 -47.47 NASDAQ -4.14 SP500 -2.83 NASDAQ Adv/Vol/Dec 840/792.9 mln/1580 NYSE Adv/Vol/Dec 986/237.2 mln/1939

12:30 pm : Recent action saw the S&P 500 continue its slow retreat as buying interest remains scarce. Even though the benchmark index has been slipping since the opening bell, its loss has been limited to less than five points. Small caps, however, have faced more aggressive selling pressure as the Russell 2000 trades lower by 0.7%.

Currently, the materials sector (+0.5%) is the top performer while the other commodity-related sector, energy (-0.2%), trades in-line with the S&P. Interestingly, the sector has not moved much despite a recent surge in crude oil. The energy component trades higher by 2.0% at $107.52 per barrel.DJ30 -55.39 NASDAQ -6.66 SP500 -3.99 NASDAQ Adv/Vol/Dec 791/721.6 mln/1603 NYSE Adv/Vol/Dec 927/215.5 mln/1984

12:00 pm : The S&P 500 has continued its slow retreat amid some profit taking ahead of this afternoon's FOMC statement. While many expect the Fed to announce a $10-$15 billion reduction in the size of its asset purchases, others are favoring the wait-and-see approach.

Cautious participation is being reflected by today's trading volume as only 195 million shares have changed hands on the floor of the NYSE so far.

The Treasury market will be watched closely after the release of the FOMC policy statement. Currently, the 10-yr note is lower by seven ticks with its yield up three basis points at 2.88%.DJ30 -42.51 NASDAQ -6.52 SP500 -3.41 NASDAQ Adv/Vol/Dec 806/648.3 mln/1566 NYSE Adv/Vol/Dec 922/192.7 mln/1973

11:30 am : The major averages continue to hover near their lows with the S&P 500 off 0.1%. While the benchmark index trades little changed, small caps have endured some more selling pressure as the Russell 2000 holds a loss of 0.5%.

Individual sectors remain locked in a battle to determine the direction of the broader market. Technology (+0.3%), materials (+0.3%), and utilities (+0.1%) have climbed since the open while consumer staples (-0.3%), health care (-0.4%), and discretionary shares (-0.3%) continue pushing to fresh lows.

Treasury yields remain elevated with the benchmark 10-yr yield up three basis points at 2.88%.DJ30 -37.93 NASDAQ -1.96 SP500 -2.02 NASDAQ Adv/Vol/Dec 858/566.5 mln/1495 NYSE Adv/Vol/Dec 973/171.7 mln/1884

11:00 am : The S&P 500 (-0.1%) hovers on its lows while the Nasdaq (+0.03%) continues to trade with a slim gain. Like the Nasdaq, the technology sector remains in positive territory, but has slipped from its best level of the day.

Outside of technology, only the materials (+0.3%) sector trades with a modest gain as the largest component, Monsanto (MON 105.86, +1.43), sports an advance of 1.4%.

With only two sectors trading higher, the remaining groups hold losses between 0.1% and 0.7% with the telecom services space leading to the downside.

Also of note, Treasury yields spiked to highs after House Speaker Boehner said that his party will seek to defund Obamacare. Speaker Boehner also said the G.O.P. is willing to raise the debt ceiling as long as Obamacare is postponed one year. The comments served as a reminder of a contentious budget battle looming. The benchmark 10-yr yield is higher by four basis points at 2.89%.DJ30 -41.51 NASDAQ +1.14 SP500 -2.17 NASDAQ Adv/Vol/Dec 870/458.9 mln/1417 NYSE Adv/Vol/Dec 988/144.2 mln/1837

10:30 am : Commodities are mixed ahead of the FOMC decision late today.

Copper rallied earlier this morning to as high as $3.28/lb and has been the best performing commodity so far in morning action.

Crude was in positive territory all day ahead of the EIA weekly inventory release, which just came out. Following the report, crude oil futures spikes back above $106/barrel and is now +0.7% at $106.13/barrel.

Oct crude oil Natural gas futures have been sliding lower and lower this morning and just hit a new LoD of $3.67/MMBtu a short while ago.

Precious metals gained some steam in recent trade, but lost is just as quickly. Dec gold is currently -0.7% at $1300.40/oz, while Dec silver is -1.2% at $21.52/oz/DJ30 -34.91 NASDAQ +0.52 SP500 -1.88 NASDAQ Adv/Vol/Dec 883/344.8 mln/1376 NYSE Adv/Vol/Dec 990/113 mln/1773

10:00 am : The Nasdaq (+0.2%) continues to lead while the Dow (-0.1%) and S&P 500 (-0.1%) remain within an earshot of their respective flat lines. As mentioned earlier, the first half of today's session is expected to be generally quiet with volatility picking up once the latest FOMC policy statement is made public at 14:00 ET.

The technology sector (+0.6%) continues to display early strength and the group has been joined in positive territory by financials (+0.1%) and industrials (+0.1%).

On the downside, consumer staples (-0.3%) and health care (-0.3%) weigh on the broader market.DJ30 -20.26 NASDAQ +3.37 SP500 -0.43 NASDAQ Adv/Vol/Dec 987/197.8 mln/1171 NYSE Adv/Vol/Dec 1157/76.2 mln/1512

09:45 am : As expected, the major averages began the session near their flat lines. The Dow and S&P 500 spent the initial minutes alternating between gains and losses while the Nasdaq (+0.1%) climbed out of the gate.

The tech-heavy index has been supported by the technology sector (+0.5%), which is the only group trading with a gain at this point. Apple (AAPL 462.61, +7.29) has contributed to the early strength as it trades higher by 1.6%. Outside of technology, the remaining cyclical sectors trade with slim losses. Similarly, countercyclical sectors trade in negative territory, but their losses have been limited to no more than 0.2%.

Treasuries hold slim losses and the benchmark 10-yr yield is higher by one basis point at 2.86%.DJ30 -23.35 NASDAQ +4.18 SP500 -0.16 NASDAQ Adv/Vol/Dec 969/125.5 mln/1097 NYSE Adv/Vol/Dec 1197/55.5 mln/1444

09:16 am : [BRIEFING.COM] S&P futures vs fair value: -0.10. Nasdaq futures vs fair value: +8.20. The S&P 500 is poised to start today's session near its flat line. The first half is expected to be relatively quiet as participants await the afternoon release of the FOMC policy statement and Chairman Bernanke's subsequent press conference. The statement will be released at 14:00 ET and the press conference will follow at 14:30 ET with the Fed Chairman expected to announce that the central bank will reduce the size of its asset purchases by roughly $10-$15 billion.

Treasury yields have been on the rise since the possibility of tapering was first brought up by Chairman Bernanke following the June 19 FOMC meeting. The benchmark 10-yr yield has added 68 basis points since then, and it currently hovers at 2.86%.

Meanwhile, the stock market slumped immediately following the June 19 press conference, but has climbed to fresh all-time highs since. The S&P 500 ended yesterday's session 3.2% above its level at the start of trading on June 19.

08:55 am : S&P futures vs fair value: +0.70. Nasdaq futures vs fair value: +7.00. The S&P 500 futures hover just above their flat line.

Major Asian markets ended mixed with Japan's Nikkei (+1.4%) in the lead. Sentiment was bolstered by indications that members of the cabinet have softened their opposition to lowering corporate tax rates to counterbalance the effects of the planned sales tax increase. Elsewhere, Standard & Poor's has cut Western Australia's credit rating to 'AA+' from 'AAA.' Economic data was limited. China's house prices increased 8.3% month-over-month (7.5% last). Australia's CB Leading Index came in at 0.3% (-1.1% prior) while the MI Leading Index rose 0.6% (0.0% previous). New Zealand's trade deficit widened to NZD1.25 billion from NZD0.66 billion (-NZD1.80 billion expected).

In Japan, the Nikkei advanced 1.4% with consumer names providing support. Fast Retailing and Pioneer jumped 3.3% and 9.7%, respectively. Industrial companies underperformed with Ebara and Taisei both losing near 1.8%.
Hong Kong's Hang Seng slipped 0.3% as energy names lagged for a second day in a row. China Coal Energy and CNOOC lost 1.4% and 0.4%, respectively. Property names displayed strength once again as Henderson Land Development rose 1.2% and New World Development climbed 2.6%.
In China, the Shanghai Composite added 0.3% with financials contributing to the gains. China Vanke tacked on 0.3%. Growth-sensitive names lagged as Anhui Expressway and Zhejiang Xinan Chemical Industrial both lost near 3.8%.

Major European indices trade with modest gains as the largely uneventful session continues. In news of note, the minutes from the latest Bank of England policy meeting revealed a unanimous vote to leave the key interest rate and the purchasing program unchanged at their respective 0.5% and GBP375 billion. Economic data was limited as Spanish industrial new orders climbed 1.8% year-over-year (-3.3% expected, -8.1% prior) and Swiss ZEW Expectations improved to 16.3 from 7.2 (20.0 expected).

Great Britain's FTSE holds a slim gain of 0.1% as financials outperform. HSBC Holdings, Lloyds Banking Group, and Standard Chartered are all up between 1.1% and 2.1%. Most miners trade in the red with Antofagasta and Fresnillo both down near 2.8%.
In Germany, the DAX trades up 0.4% after notching a fresh all-time high. Daimler and Volkswagen have provided some support as the two automakers sport respective gains of 0.4% and 0.5%.
France's CAC is higher by 0.5% as cyclical names outperform Air Liquide and EADS are both up near 2.0%. Food retailer Carrefour underperforms with a loss of 0.7%.

08:32 am : [BRIEFING.COM] S&P futures vs fair value: +0.70. Nasdaq futures vs fair value: +8.20. The S&P 500 futures have slipped to their flat line.

Housing starts hit an annualized rate of 891,000 units during August, which was below the 910,000 expected by the Briefing.com consensus. Prior month figures were revised down to reflect an annualized rate of 883,000 starts (from 896,000). As for building permits, they fell to 918,000 from the prior month's upwardly revised rate of 954,000 (from 943,000). That was below the pace of 943,000 that had been expected among economists polled by Briefing.com.

07:55 am : [BRIEFING.COM] S&P futures vs fair value: +1.50. Nasdaq futures vs fair value: +8.70. U.S. equity futures trade modestly higher with the S&P 500 futures up 0.1%.

Looking at overnight developments:

Asian markets ended mixed. Hong Kong's Hang Seng -0.3%, China's Shanghai Composite +0.3%, and Japan's Nikkei +1.4%.
In regional economic data:
China's house prices increased 8.3% month-over-month (7.5% last).
Australia's CB Leading Index came in at 0.3% (-1.1% prior) while the MI Leading Index rose 0.6% (0.0% previous).
New Zealand's trade deficit widened to NZD1.25 billion from NZD0.66 billion (-NZD1.80 billion expected).
Looking at news:
Japan's Nikkei outperformed amid indications members of the cabinet have softened their opposition to lowering corporate tax rates to counterbalance the effects of the planned sales tax increase.
Standard & Poor's has cut Western Australia's credit rating to 'AA+' from 'AAA.'

Major European indices trade with modest gains. Great Britain's FTSE +0.1%, Germany's DAX +0.5%, and France's CAC +0.5%.
Economic data was limited:
Spanish industrial new orders climbed 1.8% year-over-year (-3.3% expected, -8.1% prior).
Swiss ZEW Expectations improved to 16.3 from 7.2 (20.0 expected).
In news:
The minutes from the latest Bank of England policy meeting revealed a unanimous vote to leave the key interest rate and the purchasing program unchanged at their respective 0.5% and GBP375 billion.

In U.S. corporate news:

Adobe Systems (ADBE 50.25, +2.11) is +4.4% despite missing on earnings and revenue. The company also issued downside fourth quarter guidance, but reported above-consensus user growth.
Cracker Barrel (CBRL 108.00, +1.00) is +0.9% after beating on earnings.
FedEx (FDX 113.94, +3.26) is +3.0% after reporting an earnings beat on in-line revenue. In addition, the company announced plans to increase its shipping rates by an average of 3.9% starting in 2014.

The weekly MBA Mortgage Index rose 11.2% to follow its recent string of declines including last week's 13.5% slide.

August housing starts and building permits will be reported at 8:30 ET while the FOMC will release its latest policy statement at 14:00 ET. In addition, Chairman Bernanke will hold a press conference at 14:30 ET.

07:07 am : [BRIEFING.COM] S&P futures vs fair value: +1.50. Nasdaq futures vs fair value: +8.50.

07:07 am : Nikkei...14505.36...+193.70...+1.40%. Hang Seng...23117.45...-63.10...-0.70%.

07:07 am : FTSE...6582.87...+12.70...+0.20%. DAX...8638.41...+41.50...+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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