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 Post subject: October 1st Tuesday Trade Results - Profit $3622.50
PostPosted: Wed Oct 02, 2013 12:39 am 
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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 @ $560.00 dollars or +5.60 points, Emini ES ($ES_F) futures @ $3062.50 dollars or +61.25 points, Light Crude Oil CL ($CL_F) futures @ $0.00 dollars or +0.00 points, Gold GC ($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 @ $3622.50 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=122&t=1616

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=221&t=2029

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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.

Stocks Shrug Off Shutdown, Boosted By Apple

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

NEW YORK (CNNMoney)
Congress failed to pass a budget and triggered a government shutdown for the first time in nearly two decades Tuesday. But Wall Street took Washington's latest breakdown in stride.

The Dow Jones industrial average rose 0.4%, the S&P 500 added 0.8% and Nasdaq jumped more than 1% to close above 3,800 for the first time since September 2000. World markets also rose, while the dollar slipped against other major currencies.

It may seem like a surprise that stocks were up this much. But the market had sold off during the past few days leading up to the shutdown. The Dow and S&P 500 declined for seven of the last eight trading days, including the Dow's triple-digit loss on Monday.

Many investors are expecting the shutdown to be resolved quickly, risking little damage to the overall economy, said Joe Rundle, Head of trading at ETX Capital.

* Shutdown: What happens next

Plus, the market is far more concerned about the looming debt limit deadline. If the government hits its debt ceiling in mid-October, it will not be able to pay all of its bills.

"Republicans and Democrats must find some common ground and tackle their differences in order to formulate a new budget which will raise the debt ceiling," said Rundle.

Icahn gives Apple a lift: Shares of Apple (AAPL, Fortune 500) rallied after Carl Icahn tweeted that he met with Apple CEO Tim Cook Monday and "pushed hard" for a $150 billion stock buyback. Icahn added that the two plan to continue the conversation in three weeks, which will be around the time Apple releases its fiscal fourth-quarter earnings. The activist investor also revealed that he now owns a nearly $2 billion stake in Apple.

The Icahn-Cook chat became a hot topic on StockTwits.

"$AAPL TC listens to Icahn bc he needs him to pump this stock back to life and regain momentum...simple as that Bullish," said Bizfinder.

But others said Cook should ignore Icahn's push.

"$AAPL Carl want a $150B buyback....if I were Tim Cook, I would tell him to go fly a kite...rather make a major acquisition with that money," said goldengatesings2.

Icahn first revealed that he has a large stake in Apple in August, and has been discussing his desire for a larger share repurchase program ever since. Apple currently has a plan to return $100 billion to shareholders over the next three years, mainly by buying back its own stock. Apple also pays a dividend.

Manufacturing activity picks up: Investors were also keeping a close eye on the state of the manufacturing sector Tuesday. The Institute for Supply Management's monthly report showed that manufacturing expanded more than expected in September, with the index rising to its highest level since April 2011.

Major automakers were also issuing their monthly sales reports throughout the day. Ford (F, Fortune 500) shares rose nearly 2% after reporting a 6% jump in sales for September. General Motors (GM, Fortune 500) shares slipped after the company said sales dropped 11%, compared with a year earlier. Toyota Motor (TM) also reported a decline in sales.

Some car companies cited an early Labor Day as a problem. Since the holiday fell on September 2nd, many pre-Labor Day sales took place in late August.

But traders thought that was a lame excuse.

"$GM complaining about Labor Day sales, $F isn't! Bullish," said StockTwits user simonsays452.

"$F Stronger sept than expected following great summer - Ford is crushing it!!! $F is eating $GM and $TM's lunch," added ShamanStockPicker.

What's moving: Drugstore operator Walgreen (WAG, Fortune 500) beat earnings forecasts, sending shares higher. Rivals CVS Caremark (CVS, Fortune 500) and Rite Aid (RAD, Fortune 500) were also on the rise.

Netflix (NFLX) shares climbed 5% after MKM Partners raised its price target on the stock to $370. Shares hit an all-time high of $324.70 Tuesday.

During an interview on CNBC, Icahn reiterated that he hasn't sold a single share of Netflix but also noted that given the recent run-up, he "won't say it's a no-brainer" to buy.

While some traders interpreted Icahn's words to be bullish, StockTwits user Tstrar noted otherwise.

"$NFLX holding not buying is what Icahn is saying, get a grip," she said.

And gemczar21 added that "when Ichan dumps you will be the last to know."

* Video - Nothing is stopping Netflix

Shares of Merck (MRK, Fortune 500) also advanced after the drug maker announced that it plans to cut 8,500 more jobs worldwide.

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4:15 pm : The S&P 500 kicked off the fourth quarter on an upbeat note, climbing 0.8%. Stocks made the bulk of their advance during the opening 90 minutes before spending most of the afternoon near their highs. Late afternoon trade saw some profit-taking, but a final-minute surge sent the indices back to their highs as equities appeared unconcerned with the first day of the government shutdown.

All ten sectors posted gains as equities drew strength from typical start-of-quarter inflows. Risk assets also benefited from the rebound in Europe where yesterday's fears of a possible collapse of the Italian government were alleviated by reports indicating about 20 PDL ministers are ready to form a breakaway party supporting Prime Minister Enrico Letta. The fluid situation is expected to become a bit clearer tomorrow when the prime minister appears in front of the parliament.

The Nasdaq was the top performing index of the third quarter (+10.8%) and its relative strength continued into today's session. The index advanced 1.2% with support from its largest component. Apple (AAPL 487.96, +11.21) rose 2.4% after activist investor Carl Icahn said, in a tweet, that he pushed for a $150 billion buyback during his dinner meeting with Chief Executive Officer Tim Cook.

The outperformance of the Nasdaq was also due in part to the relative strength of the tech sector (+1.0%) and biotechnology. The iShares Nasdaq Biotechnology ETF (IBB 213.78, +4.18) climbed 2.0%, contributing to the strength of the health care sector (+1.3%), which ended in the lead.

In the health care space, Dow component Merck (MRK 48.74, +1.13) jumped 2.4% after announcing restructuring plans that include about 8,500 layoffs.

Outside of technology and health care, the discretionary sector (+0.9%) was the only other outperformer. Retailers fared well as Amazon.com (AMZN 320.95, +8.31) advanced 2.7% and the broader SPDR S&P Retail ETF (XRT 82.93, +0.91) added 1.1%.

Elsewhere, commodity-related sectors, energy (+0.5%) and materials (+0.5%), finished in the green even as crude oil and gold registered losses. The underlying commodities fell 0.5% and 2.8% to $101.84 per barrel and $1290.00 per troy ounce, respectively.

Treasuries ended near their lows with the benchmark 10-yr yield rising three basis points to 2.64%.

Trading volume was roughly in-line with the average as 717 million shares traded hands on the floor of the NYSE. Today's economic data was limited to the September ISM Manufacturing Index, which increased to 56.2 from 55.7. This represented the strongest reading since April 2011 while the Briefing.com consensus expected the index to fall to 55.0.

Production levels improved modestly as the related index increased to 62.6 in September from 62.4. After reaching its highest point since April 2011, the new orders index fell from 63.2 in August to a still elevated 60.5 in September.

The August construction spending report was also on today's schedule, but was delayed due to the government shutdown.

Tomorrow, the weekly MBA Mortgage Index will be reported at 7:00 ET and the September ADP Employment Change report will cross the wires at 8:15 ET.DJ30 +62.03 NASDAQ +46.50 SP500 +13.45 NASDAQ Adv/Vol/Dec 1828/1.75 bln/714 NYSE Adv/Vol/Dec 2177/717.0 mln/832

3:35 pm :

Precious metals and crude oil fell today as investors reacted to the first U.S. government shutdown in 17 years. Dec gold fell below the $1300.00 level, selling off sharply in the first 20 minutes of pit trade. It traded near the $1290.00 per ounce level for the remainder of the session and settled with a 3.0% loss at $1285.70 per ounce.
Dec silver slid from its session high of $21.46 per ounce set moments after floor trade opened and brushed a session low of $20.63 per ounce. It inched slightly higher in afternoon pit action and settled at $21.16 per ounce, or 2.6% lower.
Crude oil fell for a third consecutive session, brushing a session low of $101.06 per barrel. It gained momentum as it headed into the close and touched a session high of $102.10 per barrel just before settling with a 0.3% loss at $102.02 per barrel.
Natural gas, on the other hand, spent its entire floor session in positive territory. It pulled back slightly from its session high of $3.65 per MMBtu and settled with a 1.4% gain at $3.61 per MMBtu.

DJ30 +25.77 NASDAQ +34.93 SP500 +9.17 NASDAQ Adv/Vol/Dec 1693/1443.1 mln/825 NYSE Adv/Vol/Dec 2063/440 mln/943

3:00 pm : The S&P 500 trades higher by 0.6% as today's session enters its final hour. Almost the entire advance took place during the first 90 minutes of the session with equities spending the afternoon near their highs. Although the S&P has surrendered about five points off its best level of the day, it remains on track to register a solid gain for the session.

Today's economic data was limited to the September ISM Manufacturing Index, which increased to 56.2 from 55.7. This marked the strongest reading since April 2011 while the Briefing.com consensus expected the index to fall to 55.0.

Meanwhile, today's other economic report, construction spending, was delayed by the government shutdown. However, tomorrow's reports will be released on schedule as the weekly MBA Mortgage Index and the ADP Employment Change originate from sources in the private sector. The two reports will be released at 7:00 ET and 8:15 ET, respectively.DJ30 +26.78 NASDAQ +31.44 SP500 +9.01 NASDAQ Adv/Vol/Dec 1681/1.31 bln/830 NYSE Adv/Vol/Dec 2022/398.8 mln/975

2:35 pm : The major averages have retreated from their best levels of the day, but they continue to hold the bulk of their gains.

With regard to individual sectors, the recent retreat saw materials and utilities narrow their gains to 0.1% apiece. The two groups have lagged throughout the day and the next weakest sector (consumer staples) holds a modest gain of 0.3%.

Elsewhere, Treasuries remain near their lows with the benchmark 10-yr yield up four basis points at 2.65%.DJ30 +36.09 NASDAQ +30.86 SP500 +9.00 NASDAQ Adv/Vol/Dec 1659/1.21 bln/838 NYSE Adv/Vol/Dec 1998/368.4 mln/994

2:00 pm : The major averages continue to hold their recent levels with the Nasdaq (+1.0%) trading ahead of the remaining indices. Meanwhile, the Dow (+0.4%) underperforms as seven components trade lower. Although nearly a third of Dow components hover in the red, their losses have been contained to less than 1.0%. The weakest two components, Wal-Mart (WMT 73.60, -0.36) and United Technologies (UTX 106.99, -0.83), hold respective losses of 0.5% and 0.7%.

On the upside, health care names have displayed strength as Merck (MRK 48.74, +1.13) and UnitedHealth Group (UNH 72.61, +1.00) trade higher by 2.4% and 1.4%, respectively.DJ30 +62.77 NASDAQ +36.09 SP500 +12.02 NASDAQ Adv/Vol/Dec 1729/1.10 bln/763 NYSE Adv/Vol/Dec 2129/337.1 mln/839

1:35 pm : Little change has taken place since our midday update as the major averages continue to hover near their session highs.

Meanwhile in Washington, President Obama has recently wrapped up his remarks from the Rose Garden. Overall, the speech did not introduce anything new as the president stressed that the shutdown is taking place because a small faction of the House is making outsized demands. The president ended by urging House Republicans to reopen the government.

Participants are likely to keep an eye on the developments in Washington during the coming days as the debt ceiling battle heats up. On a related note, Treasuries trade near their lows with the benchmark 10-yr yield up four basis points at 2.65%.DJ30 +65.69 NASDAQ +38.42 SP500 +12.83 NASDAQ Adv/Vol/Dec 1739/1.03 bln/743 NYSE Adv/Vol/Dec 2137/317.4 mln/830

1:00 pm : The major averages hold solid midday gains with the S&P 500 up 0.8%. Stocks have climbed steadily through the first half of the session while showing little concern over the government shutdown. With all ten sectors trading in positive territory, some of today's advance can likely be attributed to the typical inflows that occur at the start of each quarter.

Equities have also drawn strength from the rebound in Europe where yesterday's fears of a possible collapse of the Italian government were alleviated by reports indicating about 20 PDL ministers are ready to form a breakaway party supporting Prime Minister Enrico Letta.

The Nasdaq (+1.0%) trades ahead of the S&P with its largest component, Apple (AAPL 488.45, +11.70), holding a gain of 2.5% after activist investor Carl Icahn said, in a tweet, that he pushed for a $150 billion buyback during his meeting with Chief Executive Officer Tim Cook. In addition, the combined strength of technology and biotechnology has contributed to the outperformance of the index. The tech sector trades higher by 0.9% while the iShares Nasdaq Biotechnology ETF (IBB 212.83, +3.23) sports an advance of 1.5%.

On a related note, the health care sector (+1.1%) is the top midday performer as Dow component Merck (MRK 48.88, +1.27) trades with a gain of 2.7% after announcing restructuring plans that include layoffs of about 8,500 employees.

Elsewhere, the materials sector (+0.3%) trails behind the remaining nine groups as miners weigh. The Market Vectors Gold Miners ETF (GDX 24.35, -0.67) is lower by 2.7% amid significant losses in precious metals. Gold and silver futures trade lower by 3.2% and 3.8% at their respective $1284.50 and $20.90 per troy ounce.

Meanwhile, the energy sector (+0.7%) trades in-line with the S&P even as crude oil holds a loss of 1.0% at $101.31 per barrel.

Today's economic data was limited to the September ISM Manufacturing Index, which increased to 56.2 from 55.7. This represented the strongest reading since April 2011 while the Briefing.com consensus expected the index to fall to 55.0.

Production levels improved modestly as the related index increased to 62.6 in September from 62.4. After reaching its highest point since April 2011, the new orders index fell from 63.2 in August to a still elevated 60.5 in September.

The August construction spending report was also on today's schedule, but has been delayed due to the government shutdown.DJ30 +59.72 NASDAQ +37.33 SP500 +12.54 NASDAQ Adv/Vol/Dec 1728/941.5 mln/733 NYSE Adv/Vol/Dec 2162/289.7 mln/797

12:35 pm : The major indices have spent the past 45 minutes near their current levels. Similarly, most individual sectors have held their highs while consumer staples, materials, and utilities slipped from their best levels of the day. However, the three sectors continue to hold gains between 0.4% and 0.5%.

Overall, market breadth remains tilted to the bullish side with advancing issues on the NYSE outpacing decliners by a 3:1 margin. On the Nasdaq, there are 2.6 advancers for each decliner.

Also note President Obama's statement from the Rose Garden has now been pushed back to 13:30 ET.DJ30 +69.16 NASDAQ +40.95 SP500 +13.52 NASDAQ Adv/Vol/Dec 1762/880.1 mln/681 NYSE Adv/Vol/Dec 2202/272.1 mln/742

12:00 pm : The major indices have climbed to new session highs in the past half hour. In some circles, today's positive bias is being attributed to an underlying sense that all will end well soon enough with the budget impasse and the debt ceiling debate. There is historical precedent to suggest as much considering this is the 18th government shutdown (albeit partial) since 1977.

While the budget fight is the topic du jour, the debt ceiling is the bigger issue that it is still unresolved. The longer the budget impasse persists, the greater the market's sense of angst will be with regard to pushing the debt ceiling issue to the brink. There is precedent for that, too. When things got really dicey in 2011, the S&P 500 dropped 17% between July 22 and August 8 -- a slide that was punctuated by Standard & Poor's downgrading the nation's debt rating on August 5.

In our estimation, today's gains aren't so much a case of pricing in a favorable outcome on the budget impasse as they are a function of support being provided by new money that often flows into the market on the first day of a new month (and new quarter in this instance). Fittingly, today's gains are broad-based with comparable gains seen across most sectors. The health care sector (+1.2%) is the notable standout and has been aided by Merck's (MRK 48.73, +1.12) restructuring announcement.DJ30 +72.01 NASDAQ +39.70 SP500 +13.78 NASDAQ Adv/Vol/Dec 1750/760 mln/667 NYSE Adv/Vol/Dec 2188/241 mln/723

11:30 am : The key indices continue to hover near their highs with the Nasdaq (+0.9%) pacing the advance. Meanwhile, the S&P 500 sports a gain of 0.7% as all ten sectors trade in positive territory.

The materials sector (+0.3%) trails behind the remaining nine groups as miners weigh with the Market Vectors Gold Miners ETF (GDX 24.41, -0.61) down 2.4%. On a related note, precious metals trade sharply lower with gold down 2.6% and silver lower by 4.0% at their respective $1292.10 and $20.84 per troy ounce.

Even though the materials sector underperforms, the other commodity-related groups (energy and industrials) trade in-line with the S&P. Interestingly, the energy sector is higher by 0.7% even with crude oil trading lower by 1.0% at $101.29 per barrel.DJ30 +47.07 NASDAQ +33.07 SP500 +11.19 NASDAQ Adv/Vol/Dec 1676/669.2 mln/719 NYSE Adv/Vol/Dec 2139/213.8 mln/751

11:00 am : The major averages have continued their climb and the S&P 500 now trades higher by 0.7%. Meanwhile the Nasdaq holds a gain of 0.9% with technology and biotechnology providing support. The tech sector trades higher by 0.9% while the iShares Nasdaq Biotechnology ETF (IBB 212.12, +2.52) holds an advance of 1.2%.

The Nasdaq has also received a boost from its largest component, Apple (AAPL 485.25, +8.50), after activist investor Carl Icahn said, in a tweet, that he pushed for a $150 billion buyback during his meeting with Apple Chief Executive Officer Tim Cook.

While stocks have been climbing steadily for the past 90 minutes, Treasuries are little changed from their opening levels. The 10-yr note is down eight ticks with its yield up three basis points at 2.64%.DJ30 +69.29 NASDAQ +32.35 SP500 +12.08 NASDAQ Adv/Vol/Dec 1645/556.3 mln/729 NYSE Adv/Vol/Dec 2073/178.7 mln/796

10:30 am : Commodities are mostly lower this morning, with only a few trading higher such as natural gas, aluminum and some agriculture futures.

Crude oil futures sold off earlier this morning off its HoD at $102.58/barrel. Crude has continued to slid lower and in recent trade the Nov contract hit a new LoD of $101.42/barrel and is now -0.8% at $101.52/barrel.

Natural gas, on the other hand, has been pushing higher all morning. Nov nat gas just hit a new HoD of $3.65/MMBtu and is now +2.1% at $3.64/MMBtu.

Metals are ugly this morning. Gold, silver and copper sold off this morning and recent strength in the dollar index continues to weigh in metals prices. Dec gold is now -2.8% at $1290.30/oz and Dec silver is -4.5% at $20.73/oz.DJ30 +48.42 NASDAQ +25.16 SP500 +9.21 NASDAQ Adv/Vol/Dec 1519/418.5 mln/793 NYSE Adv/Vol/Dec 1983/143 mln/851

10:00 am : The S&P 500 hovers near its opening high, but the Dow has dipped into the red as 18 of 30 index components register losses. Meanwhile, small caps continue to outperform with the Russell 2000 up 0.3%.

The September ISM Index rose to 56.2 from 55.7 while the Briefing.com consensus expected the reading to slip to 55.0.DJ30 -10.92 NASDAQ +11.59 SP500 +3.82 NASDAQ Adv/Vol/Dec 1370/250.8 mln/849 NYSE Adv/Vol/Dec 1830/95.6 mln/935

09:45 am : The S&P 500 trades higher by 0.4% after opening the session in positive territory. All ten sectors registered gains during the opening minutes with health care (+0.6%), financials (+0.4%), and technology (+0.4%) providing leadership.

Treasuries continue to hold modest losses with the benchmark 10-yr yield up three basis points at 2.64%.

The August construction spending report will not be released at its regularly scheduled time due to the government shutdown. However, the ISM Index will be reported at 10:00 ET. Also of note, President Obama will speak from the Rose Garden around 12:25 ET.DJ30 +26.59 NASDAQ +19.14 SP500 +6.65 NASDAQ Adv/Vol/Dec 1393/142.8 mln/722 NYSE Adv/Vol/Dec 1806/66.9 mln/901

09:15 am : [BRIEFING.COM] S&P futures vs fair value: +1.80. Nasdaq futures vs fair value: +5.70. The major averages are poised to register modest gains at the start of today's session as the S&P 500 futures trade higher by 0.2%. As expected, the U.S. government suspended its nonessential functions at midnight. The shutdown will have an effect on this week's economic data, and today's August construction spending report will be delayed. However, the September ISM Index remains scheduled for a 10:00 ET release.

Although markets have not displayed much concern over the shutdown, they are likely to show some angst when the U.S. approaches its debt ceiling during the second half of October. Currently, Treasuries hold modest losses with the benchmark 10-yr yield up two basis points at 2.63%.

08:57 am : [BRIEFING.COM] S&P futures vs fair value: +2.90. Nasdaq futures vs fair value: +7.70. The S&P 500 futures trade higher by 0.2%.

It was a sea of green across Asia as all of the major averages aside from Australia's ASX (-0.2%) advanced. Japan's Nikkei (+0.2%) eked out a gain after Prime Minister Abe moved towards hiking the sales tax to 8% from 5%, beginning in April, and also announcing the consideration of monetary stimulus that may include cash handouts. Meanwhile, Australia's ASX was the laggard after the Reserve Bank of Australia held its key rate steady at a record low 2.50% while also leaving open the possibility of further rate cuts. Markets in China and Hong Kong were closed for Golden Week, but that did not stop the release of the disappointing Chinese Manufacturing PMI (51.1 actual v. 51.6 expected, 51.0 previous). Data from the rest of the region showed Japan's Tankan Manufacturing (12 actual versus 7 expected, 4 previous) and Non-Manufacturing Indices in-line to better than expected while average cash earnings missed (-0.6% year-over-year actual versus -0.2% expected). Elsewhere, Australia's retail sales beat (0.4% month-over-month actual versus 0.3% expected) and Indonesia's trade deficit swung to a surplus ($0.13 billion actual versus -$0.89 billion expected, -$2.31 billion previous).

In Japan, the Nikkei added 0.2% as trade ticked higher for the first time in three days. Heavyweight Softbank posted a 2.5% advance while Honda Motor added 0.9%.
Hong Kong's Hang Seng was closed.
In China, the Shanghai Composite was closed.

Major European indices trade in mixed fashion with Great Britain's FTSE underperforming (-0.3%) while other indices rebound from yesterday's weakness. In Italy, Prime Minister Enrico Letta is scheduled to address the parliament on Wednesday at 16:00 ET local time. It is currently unclear whether Mr. Letta will seek a confidence vote. Separate reports indicate up to 20 PDL Senators have looked into forming a breakaway party after Silvio Berlusconi called for his party's resignation from government. Investors received a fair share of data. Eurozone Manufacturing PMI slipped to 56.7 from 57.1 (57.3 expected) and the unemployment rate held steady at 12.0% (12.1% forecast). Germany reported a 25,000 increase in the number of unemployed (-5,000 expected, 9,000 prior) and the unemployment rate ticked up to 6.9% from 6.8% (6.8% consensus). Separately, Manufacturing PMI slipped to 51.1 from 51.3 (51.3 forecast). Great Britain's Manufacturing PMI fell to 56.7 from 57.1 (57.3 forecast). French Manufacturing PMI improved to 49.8 from 49.5 (49.5 expected). Italy's Manufacturing PMI slipped to 50.8 from 51.3 (51.0 consensus) and the monthly unemployment rate rose to 12.2% from 12.1% (12.0% expected).

Great Britain's FTSE is lower by 0.3%. Producer of consumer goods Unilever leads to the downside with a loss of 3.7% after making cautious remarks about its most recent quarter. On the upside, financials Aviva and Barclays trade higher by 2.3% and 1.3%, respectively.
In Germany, the DAX trades up 0.6% as financials display strength. Commerzbank and Deutsche Boerse hold respective gains of 2.0% and 2.7%.
France's CAC is higher by 0.7% with banks contributing to the strength as BNP Paribas, Credit Agricole, and Societe Generale sport gains between 0.9% and 1.3%. Beverage producer Pernod Ricard is the worst index performer, down 1.5%.

08:30 am : [BRIEFING.COM] S&P futures vs fair value: +3.60. Nasdaq futures vs fair value: +8.50. The S&P 500 futures trade higher by 0.3% as global equity markets rebound from yesterday's weakness. In Washington, nonessential functions of the federal government were suspended at midnight, but the markets have not displayed much concern over these developments. Due to the shutdown, today's construction spending report will be delayed while the September ISM Index will be reported at 10:00 ET as originally scheduled.

Overseas, European indices trade mostly higher amid indications the collapse of the Italian government may be prevented after 20 PDL members began looking into forming a breakaway party. In reaction, Italy's benchmark 10-yr yield has retreated four basis points to 4.53%.

07:59 am : [BRIEFING.COM] S&P futures vs fair value: +4.50. Nasdaq futures vs fair value: +8.70. U.S. equity futures hold modest pre-market gains with the S&P 500 futures up 0.3%.

Reviewing overnight developments:

In Asia, the Nikkei added 0.2% while China's Shanghai Composite and Hong Kong's Hang Seng were closed for Golden Week.
In regional economic data:
China's Manufacturing PMI ticked up to 51.1 from 51.0 (51.5 forecast).
Japan's unemployment rate increased to 4.1%% from 3.8% (3.8% expected) and average cash earnings fell 0.6% year-over-year (-0.2% forecast, 0.1% last). Separately, the Tankan Large Manufacturers Index rose to 12 from 4 (7 consensus) and the Large Non-Manufacturers Index ticked up to 14 from 12, as expected. Also of note, the Small Manufacturing Index rose to -9 from -14 (-12 forecast).
South Korea's CPI rose 0.2% month-over-month (0.5% expected, 0.3% prior) while the year-over-year reading came in at 0.8% (1.2% forecast, 1.3% previous). In addition, the trade surplus narrowed to $3.71 billion from $4.85 billion ($4.65 billion consensus).
The Reserve Bank of Australia held its key interest rate steady at 2.50%, as expected. Meanwhile, retail sales rose 0.4% month-over-month (0.3% expected, 0.1% prior) and the AIG Manufacturing Index climbed to 51.7 from 46.4.
India's HSBC Manufacturing PMI rose to 49.6 from 48.5.
Looking at news:
In Japan, Prime Minister Shinzo Abe has decided to follow through with the sales tax increase from 5.0% to 8.0%. Along with the tax increase, a fiscal stimulus in the amount of JPY5 trillion will also be introduced.

Major European indices trade in mixed fashion. Great Britain's FTSE -0.3%, Germany's DAX +0.6%, and France's CAC +0.7%. Elsewhere, Italy's MIB +0.8% and Spain's IBEX +0.6%.
Investors received a fair share of data:
Eurozone Manufacturing PMI slipped to 56.7 from 57.1 (57.3 expected) and the unemployment rate held steady at 12.0% (12.1% forecast).
Germany reported a 25,000 increase in the number of unemployed (-5,000 expected, 9,000 prior) and the unemployment rate ticked up to 6.9% from 6.8% (6.8% consensus). Separately, Manufacturing PMI slipped to 51.1 from 51.3 (51.3 forecast).
Great Britain's Manufacturing PMI fell to 56.7 from 57.1 (57.3 forecast).
French Manufacturing PMI improved to 49.8 from 49.5 (49.5 expected).
Italy's Manufacturing PMI slipped to 50.8 from 51.3 (51.0 consensus) and the monthly unemployment rate rose to 12.2% from 12.1% (12.0% expected).
In news:
In Italy, Prime Minister Enrico Letta is scheduled to address the parliament on Wednesday at 16:00 ET local time. It is currently unclear whether Mr. Letta will seek a confidence vote. Separate reports indicate up to 20 PDL Senators have looked into forming a breakaway party after Silvio Berlusconi called for his party's resignation from government.

In U.S. corporate news:

Buffalo Wild Wings (BWLD 109.50, -1.67) is -1.5% after Raymond James downgraded the stock to 'Outperform' from 'Strong Buy.'
Merck (MRK 47.70, +0.09) is +0.2% after reaffirming its 2013 full-year earnings guidance and announcing plans to lay off 8,500 employees.

Today's August construction spending report will be delayed due to the government shutdown. Meanwhile, the September ISM Index will be reported at 10:00 ET.

07:23 am : [BRIEFING.COM] S&P futures vs fair value: +5.50. Nasdaq futures vs fair value: +11.00.

07:22 am : Nikkei...14484.72...+28.90...+0.20%. Hang Seng...Holiday.........

07:22 am : FTSE...6447.63...+14.90...-0.20%. DAX...8644.27...+49.90...+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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