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 Post subject: October 2nd Wednesday Trade Results - Profit $2112.50
PostPosted: Wed Oct 02, 2013 9:40 pm 
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Joined: Sat Jan 10, 2009 2:06 pm
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Location: Canada
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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 @ $0.00 dollars or +0.00 points, Emini ES ($ES_F) futures @ $312.50 dollars or +6.25 points, Light Crude Oil CL ($CL_F) futures @ $0.00 dollars or +0.00 points, Gold GC ($GC_F) futures @ $1800.00 dollars or +18.00 points and EuroFX 6E ($6E_F) futures @ $0.00 dollars or +0.0000 ticks. Total Profit @ $2112.50 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=1617

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.

Debt Ceiling Fears Hurts Stocks

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

NEW YORK (CNNMoney)
It's day 2 of the government shutdown. And now investors have become more nervous about the ramifications of the political stalemate in Washington.

The Dow, the S&P 500, and the Nasdaq closed Wednesday with modest losses, pulling back from steeper drops in morning trading. Stocks rallied on Tuesday, the first day of the shutdown.

The biggest worry now: the potential for a government default on October 17. If Congress fails to raise the debt ceiling, the U.S. government will be unable to pay all of its bills later this month.

Treasury Secretary Jack Lew said Tuesday that the government has started to use the last of its "extraordinary measures" to ensure it stays below debt ceiling.

With Congress unable to agree on a deal to fund the government past Monday, more than 800,000 federal workers are being furloughed without pay this week. In addition, government agencies are curtailing their services, and federal museums, parks and monuments are closed to the public.

Quantitative strategists at Bank of America Merrill Lynch noted in a report that previous shutdowns have been mostly positive for the stock market. But the big difference this time around is the rapidly approaching debt ceiling.

Investors reacted to economic news as well. Payroll processor ADP's monthly report on private-sector jobs showed that the U.S. added 166,000 jobs in September, slightly below expectations. The report has more significance this month than usual. It appears increasingly unlikely that the U.S. government's monthly employment report will be released this Friday because of the government shutdown.

* Federal workers sound off on the shutdown

What's moving: Shares of agriculture technology firm Monsanto (MON, Fortune 500) dropped after the company missed earnings expectations.

Shares of Tesla (TSLA) fell following an analyst downgrade. The stock still remains one of the best performers of the year as individual investors have embraced the maker of the electric Model S.

Many investors and analysts are skeptical of its current value. Even after Wednesday's dip, at $190 per share, Tesla is overvalued compared to where Wall Street analysts think it should be trading.

StockTwits user RamC warned, " Read before buying," pointing to CNNMoney's article on how individual investors were cutting their exposure to the stock . "$TSLA A trap for small investors? http://stks.co/ektl.

Makisupa488 wrote: "$TSLA Has it topped? Finally? Hope so :) Bearish."

Despite a drop in the overall stock market, several Internet companies hit new 52-week highs, including Priceline (PCLN), Amazon (AMZN, Fortune 500), Netflix (NFLX) and Yahoo (YHOO, Fortune 500).

Traders on StockTwits expect Priceline to keep surging. GrapeApe wrote, "$PCLN seems like the perfect stock, the only question is how much do you want to make."

"$PCLN rich become richer here," wrote Tstrar.

IPO frenzy: The IPO boom continued this week despite the government shutdown. Three companies debuted and two of them quickly shot higher.

Real estate broker Re/Max (RMAX ) closed 22% higher, and Burlington Holdings (BURL), the owner of the Burlington Coat Factory, ended up 47%.

But the parent company of the iconic Empire State Building disappointed. Shares of the building's owner, the Empire State Reality Trust (ESRT), rose less than 1%. And that's after the company priced its offering at the low end of its range Tuesday night.

World markets: European markets ended lower, and Asian markets ended mixed.

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4:20 pm : The S&P 500 settled lower by 0.1% after spending most of the session in a steady climb off its opening low. Sellers were in control early on, but gave way to dip buyers after headlines indicated President Obama would meet with Congressional leaders at the White House early this evening in hopes of bridging some of the gaps that are preventing a budget agreement from being reached.

The Nasdaq (-0.1%) and the S&P were able to regain the bulk of their losses while the Dow (-0.4%) trailed throughout the session.

Six of ten sectors finished in the red with energy (+0.3%) ending in the lead as crude oil advanced 1.8% to $103.89 per barrel.

Another commodity-related sector, materials (+0.2%), also finished ahead of the broader market as steelmakers and miners contributed to the relative strength. The Market Vectors Steel ETF (SLX 45.51, +0.43) and Market Vectors Gold Miners ETF (GDX 24.49, +0.08) added 1.0% and 0.3% respectively. Underlying metals also registered gains as gold and copper futures advanced 2.4% and 1.2% to $1316.70 per troy ounce and $3.31 per pound, respectively.

The technology sector (+0.1%) was another notable outperformer with top components like Apple (AAPL 489.56, +1.60), Cisco Systems (CSCO 23.32, +0.08), and Microsoft (MSFT 33.92, +0.34) adding between 0.3% and 1.0%. The Nasdaq drew some of its strength from those names, but could not break into positive territory as biotechnology weighed. The iShares Nasdaq Biotechnology ETF (IBB 213.18, -0.60) shed 0.3%.

While most sectors were able to distance themselves from their opening lows, industrials (-0.4%) could not muster much strength as defense contractors lagged. The PHLX Defense Index tumbled 0.9% with names like Lockheed Martin (LMT 125.08, -2.42) and United Technologies (UTX 104.98, -2.40) falling 1.9% and 2.2%, respectively.

Treasuries settled near the middle of their range with the benchmark 10-yr yield down three basis points at 2.62%.

Trading volume was a bit below average as 691 million shares changed hands on the floor of the New York Stock Exchange.

In today's economic data, the ADP report indicated the addition of 166,000 new private jobs during September. That was up from August's downwardly revised 159,000 (from 176,000), but a bit below the Briefing.com consensus estimate, which expected the addition of 170,000 jobs.

The ADP report is designed to predict the final BLS private payroll levels. On that account, however, the ADP has not done a good job at predicting the initial payrolls numbers that are released in the Employment Situation Report. The fact that the ADP levels showed trends staying roughly the same over the last few months suggests that the official BLS payrolls will also continue on a flat trend line. The actual payroll gain in September is still unknown, but the ADP data do not suggest a big move up or down from last month's gain of 152,000 jobs.

Separately, the weekly MBA Mortgage Index slipped 0.4% to follow the prior week's increase of 5.5%.

In overseas news of note, Italian markets rallied after Silvio Berlusconi changed his tune and voiced support for Prime Minister Enrico Letta. It appears Mr. Berlusconi made his decision after seeing more than 20 PDL lawmakers ready to shun the party in order to preserve the current government.

Tomorrow, September Challenger Job Cuts will be released at 7:30 ET; weekly initial claims will be reported at 8:30 ET; and the September ISM Services report will cross the wires at 10:00 ET. The August factory orders report will not be released at its scheduled time due to the government shutdown.DJ30 -58.56 NASDAQ -2.96 SP500 -1.13 NASDAQ Adv/Vol/Dec 1002/1.70 bln/1523 NYSE Adv/Vol/Dec 1313/691.2 mln/1661

3:30 pm :

Nov crude oil rose for the first time in four sessions following a Bloomberg report that TransCanada (TRP) expects the expansion of its Keystone Gulf Coast pipeline to be completed by the end of the month. The company expects linefill to start shortly after completion. The move higher came despite weak inventory data that showed crude oil inventories for the week ending Sep 27th had a build of 5.47 mln barrels when a smaller build of 2.4 mln barrels was anticipated. The energy component lifted off its session low of $101.51 per barrel and settled with a 2.0% gain at $104.08 per barrel, slightly below its session high of $104.23 per barrel
Unlike crude oil, Nov natural gas trended lower after pulling back from its session high of $3.64 per MMBtu set moments after pit trade opened. It settled at its session low of $3.54 per MMBtu, or 1.9% lower
Precious metals traded higher today, gaining support from a drop in the dollar index and weaker-than-anticipated ADP employment data. The ADP report showed 166,000 new private jobs were added in September, while the Briefing.com consensus expected the report to show the addition of 170,000 new jobs
Dec gold rose for the first time in three sessions, lifting from its session high of $1297.30 per ounce. It settled 2.7% higher at $1320.70 per ounce, just below its session high of $1324.20 per ounce
Dec silver brushed a session high of $22.04 per ounce in late morning floor action and eventually settled with a 3.6% gain at $21.92 per ounce.

DJ30 -86.79 NASDAQ -8.85 SP500 -5.15 NASDAQ Adv/Vol/Dec 967/1438.7 mln/1533 NYSE Adv/Vol/Dec 1164/454 mln/1805

3:00 pm : The S&P 500 trades lower by 0.3% as today's session enters its final hour.

Economic data reporting has been affected by the ongoing government shutdown with Monday's August construction spending report being the first casualty. Tomorrow, September Challenger Job Cuts, weekly initial claims, and the September ISM Services report will be released as expected; however, the August factory orders report will not be released at its scheduled time.

The delayed reports are expected to be released once the government resumes its regular operations.DJ30 -92.41 NASDAQ -9.09 SP500 -5.61 NASDAQ Adv/Vol/Dec 966/1.31 bln/1525 NYSE Adv/Vol/Dec 1155/420.2 mln/1818

2:35 pm : The S&P 500 trades lower by 0.3% after recent action saw the benchmark index slip from its afternoon high. Meanwhile, the Dow (-0.5%) has not been able to climb above its opening levels.

At this juncture, only three sectors (energy, materials, and technology) trade in positive territory with their gains limited to no more than 0.2%. The energy sector is the top performer as the continued climb in crude oil contributed to the sector's outperformance. The energy component trades higher by 2.0% at $104.06 per barrel.

Elsewhere, Treasuries hover in the middle of their range with the 10-yr yield down three basis points at 2.62%.DJ30 -77.39 NASDAQ -3.45 SP500 -3.73 NASDAQ Adv/Vol/Dec 1017/1.22 bln/1479 NYSE Adv/Vol/Dec 1236/389.4 mln/1717

2:00 pm : Equities have continued their rebound with the Nasdaq now trading in positive territory. Meanwhile, the S&P 500 hovers less than three points below its flat line.

Nine of ten sectors have been able to distance themselves from their early lows, but the industrial space (-0.6%) continues to weigh. Defense stocks have pressured the sector as the PHLX Defense Index trades lower by 1.3% with large components like Boeing (BA 116.96, -0.79), Lockheed Martin (LMT 124.56, -2.94), and United Technologies (UTX 105.05, -2.32) down between 0.7% and 2.3%.DJ30 -87.04 NASDAQ +0.12 SP500 -2.84 NASDAQ Adv/Vol/Dec 1045/1.12 bln/1422 NYSE Adv/Vol/Dec 1297/358.4 mln/1642

1:25 pm : It wasn't a pretty start to the day, but things have gotten better as the day has progressed. The major indices are all well off their respective lows, bolstered in part by a hope that some progress will soon be evident on the budget impasse. To that end, President Obama will be providing an exclusive interview to CNBC at 4:00 p.m. ET and will then hold a meeting after the market closes with Congressional leaders to discuss the shutdown.

The market is disinclined to think it will be just another finger-pointing affair, so there has been some modest efforts to buy on the early dip.

Pretty much everything has come along for the rebound ride. It's not that any one area is particularly strong; rather, it's more a case that every area has pared its losses.

Conversely, the Treasury market has come off its highs of the session as the comeback effort in the stock market has unfolded. The 10-yr note, up nearly a half point earlier, is now up nine ticks with its yield at 2.62%.
DJ30 -68.10 NASDAQ -5.87 SP500 -3.46 NASDAQ Adv/Vol/Dec 1033/1.02 bln/1430 NYSE Adv/Vol/Dec 1262/326 mln/1665

1:00 pm : The major averages have spent the first half of the session in a steady climb off their opening lows. The S&P 500 (-0.3%) and Nasdaq (-0.2%) have erased the bulk of their early losses while the Dow (-0.5%) has only been able to return to its opening level.

Two influential sectors-energy and technology-have fueled the recovery, and both groups now trade in positive territory. The technology sector (+0.1%) has drawn strength from some of its top components as Apple (AAPL 490.03, +2.04), Microsoft (MSFT 33.89, +0.31), and SAP (SAP 74.65, +0.78) trade with gains between 0.3% and 1.1%.

Elsewhere, the energy space (+0.2%) sits atop today's leaderboard as crude oil trades higher by 1.6% at $103.71 per barrel. Other commodities have also displayed strength with gold and copper futures holding gains of 2.3% and 1.2% at $1314.70/ozt and $3.31/lb, respectively.

On the downside, consumer staples (-0.6%), health care (-0.5%), and industrials (-0.6%) continue to weigh on the broader market. Notably, the industrial sector has been pressured by transportation-related companies. The Dow Jones Transportation Average trades lower by 0.7% as 19 of its 20 components register losses. Delta Air Lines (DAL 24.42, +0.21) is the lone advancer after reporting solid September traffic figures.

Treasuries hold solid gains as the 10-yr note trades higher by 10 ticks with its yield down four basis points at 2.62%.

In today's economic data, the ADP report showed 166,000 new private jobs were added in September. That was up from a downwardly revised 159,000 (from 176,000) in August. The Briefing.com consensus expected the ADP report to show the addition of 170,000.

The ADP report is designed to predict the final BLS private payroll levels. On that account, however, the ADP has not done a good job at predicting the initial payrolls numbers that are released in the Employment Situation Report. The fact that the ADP levels showed trends staying roughly the same over the last few months suggests that the official BLS payrolls will also continue on a flat trend line. The actual payroll gain in September is still unknown, but the ADP data do not suggest a big move up or down from last month's gain of 152,000 jobs.

Separately, the weekly MBA Mortgage Index slipped 0.4% to follow the prior week's increase of 5.5%.

In overseas news of note, Italian markets rallied after Silvio Berlusconi changed his tune and voiced support for Prime Minister Enrico Letta. It appears Mr. Berlusconi made the decision after seeing more than 20 PDL lawmakers ready to shun the party in order to preserve the current government.DJ30 -73.24 NASDAQ -6.93 SP500 -4.38 NASDAQ Adv/Vol/Dec 998/943.7 mln/1456 NYSE Adv/Vol/Dec 1173/304.3 mln/1758

12:30 pm : The Nasdaq (-0.3%) and S&P 500 (-0.4%) have continued their rebound, distancing themselves from the first-hour lows. Meanwhile, the Dow (-0.5%) has also ticked up off its lows, but has yet to rise above its opening levels.

The price-weighted index is being pressured by some of its top components as IBM (IBM 185.18, -1.20), McDonald's (MCD 94.87, -1.25), United Technologies (UTX 104.95, -2.43), and Visa (V 192.02, -1.20) trade with losses between 0.6% and 2.2%.

On the upside, only six Dow components trade in positive territory with JPMorgan Chase (JPM 52.30, +0.72) up 1.4%.DJ30 -77.89 NASDAQ -9.13 SP500 -5.61 NASDAQ Adv/Vol/Dec 943/855.2 mln/1478 NYSE Adv/Vol/Dec 1057/282.9 mln/1885

12:00 pm : The major averages remain in negative territory, but the Nasdaq (-0.3%) has been climbing steadily off its first-hour low. After opening the session with a 30 point loss, the tech-heavy index has already reclaimed more than 20 points.

The tech sector (-0.1%) has also enjoyed a solid rebound with top components like Apple (AAPL 490.85, +2.89), Microsoft (MSFT 33.78, +0.20) and Oracle (ORCL 33.64, +0.14) pacing the recovery.

Interestingly, the Nasdaq rebound is taking place without the participation of biotech names as the iShares Nasdaq Biotechnology ETF (IBB 212.92, -0.86) trades lower by 0.4%.DJ30 -81.50 NASDAQ -9.31 SP500 -6.36 NASDAQ Adv/Vol/Dec 915/762.8 mln/1496 NYSE Adv/Vol/Dec 1011/258.4 mln/1928

11:35 am : Recent action saw the Nasdaq (-0.3%) and the S&P 500 (-0.4%) climb off their lows while the Dow (-0.6%) has clawed its way back to its opening level. Technology (-0.2%) continues to outperform the broader market, but the sector has been overtaken by energy and materials.

The materials space trades with modest loss of 0.1% while the energy sector hovers just below its flat line as crude oil trades higher by 1.5% at $103.55 per barrel.

With the major averages trading in the red, the CBOE Volatility Index (VIX 16.25, +0.71) is higher by 4.6%.DJ30 -78.06 NASDAQ -10.21 SP500 -6.35 NASDAQ Adv/Vol/Dec 901/671.1 mln/1488 NYSE Adv/Vol/Dec 970/232.2 mln/1929

10:55 am : The major averages remain pressured as the Dow (-0.8%) and S&P 500 (-0.7%) trade near their lows while the Nasdaq (+0.5%) hovers close to its rebound high.

Individual sectors have not displayed much strength outside of the technology space, which outperforms with a loss of 0.3%. Meanwhile, the next-best performing sector, materials, trades lower by 0.5%.

One pocket of strength can be found among commodities where crude oil and precious metals recently jumped to fresh session highs. Crude oil trades up 0.8% at $102.90 and gold futures hold a gain of 2.8% at $1321.60 per troy ounce. Also of note, silver futures are higher by 3.5% at 21.92 per troy ounce.DJ30 -120.21 NASDAQ -17.37 SP500 -11.82 NASDAQ Adv/Vol/Dec 788/524.3 mln/1566 NYSE Adv/Vol/Dec 768/191.2 mln/2090

10:35 am : Commodities are certaintly seeing some volatility this morning. In recent action, gold, silver and crude oil has rallied higher, all of which hit new session highs.

Crude oil was sitting as its HoD just ahead of the weekly inventory data. Following the data, Nov crude oil dropped and is now +0.3% at $102.37/barrel.

Natural gas was flat overnight, rallied this morning to a new HoD of $3.65/MMBtu, but couldn't hold gains, sold off and hit a new LoD in recent trade. Nov nat gas is now -0.9% at $3.58/MMBtu.

Precious metals have rallied in recent action with both gold and silver hitting new session highs just now. Dec gold is now +2.6% at $1319.90/oz, while Dec silver is +.9% at $22.00/oz.DJ30 -138.71 NASDAQ -22.89 SP500 -13.66 NYSE Adv/Vol/Dec 675/162 mln/2193

10:00 am : The S&P 500 remains near its early low as most sectors continue to weigh on the broader market. Meanwhile, the Nasdaq has climbed off its opening low as the tech sector (-0.3%) trades ahead of the remaining nine economic groups. Biotechnology has also made a contribution to the outperformance of the Nasdaq as the iShares Nasdaq Biotechnology ETF (IBB 213.38, -0.40) trades lower by 0.2%.

Also of note, Treasuries have returned to their best levels of the day. The benchmark 10-yr yield is now lower by five basis points at 2.61%.DJ30 -108.21 NASDAQ -16.31 SP500 -10.30 NASDAQ Adv/Vol/Dec 709/217.6 mln/1518 NYSE Adv/Vol/Dec 639/104.4 mln/2128

09:45 am : The S&P 500 trades lower by 0.6% with all ten sectors registering opening losses. Cyclical groups have paced the early decline with consumer discretionary (-0.6%), financials (-0.6%), and materials (-0.8%) seeing largest drops off the open.

Commodities have been a mixed bag in early action with crude oil trading lower by 0.5% at $101.55/bbl and gold futures sporting a gain of 1.3% at $1303.10/ozt. Meanwhile, copper futures are little changed at $3.283/lb.

Elsewhere, Treasuries jumped to highs in reaction to today's slightly softer-than-expected ADP Employment report before giving up some of their early gain. Currently, the 10-yr note is up nine ticks with its yield down four basis points at 2.62%.DJ30 -102.61 NASDAQ -16.30 SP500 -10.22 NASDAQ Adv/Vol/Dec 641/147.9 mln/1536 NYSE Adv/Vol/Dec 535/75.2 mln/2201

09:15 am : [BRIEFING.COM] S&P futures vs fair value: -9.70. Nasdaq futures vs fair value: -19.00. The major averages are set to begin today's session in negative territory and index futures suggest the S&P 500 will surrender most of yesterday's gain at the open. Despite yesterday's late-afternoon speculation, lawmakers in Washington have not made much progress in their quest to reopen the government. As such, the shutdown is now in its second day.

Overseas, most European indices are on the defensive while Italy's MIB (+1.0%) outperforms after Silvio Berlusconi changed his tune and voiced support for Prime Minister Enrico Letta. It appears Mr. Berlusconi made the decision after seeing more than 20 PDL lawmakers ready to shun the party in order to preserve the current government.

In today's economic news, the weekly MBA Mortgage Index slipped 0.4% to follow the prior week's increase of 5.5%. Separately, the September ADP report showed that employment in the nonfarm private business sector rose 166K in September. This was a bit below the increase of 170K expected by the Briefing.com consensus. While the report indicated steady employment growth, the gains were not robust enough to speak in favor of tapering in the near term.

08:57 am : [BRIEFING.COM] S&P futures vs fair value: -11.60. Nasdaq futures vs fair value: -19.80. The S&P 500 futures trade down 0.8% after returning to their overnight lows.

Markets across most of Asia piggybacked yesterday's gains on Wall Street as traders gobbled up shares on signs its business as usual despite the U.S. government shutdown. The region's advance was paced by Indonesia's Jakarta Composite (+1.0%) while Japan's Nikkei (-2.2%) lagged. Markets on mainland China remained closed for Golden Week, and India's Sensex was shuttered for Mahatma Gandhi's birthday. Data out of the region was limited to Australia as building approvals disappointed (-4.7% month-over-month actual versus -0.7% expected) and trade deficit posted a wider than expected miss ($815 million actual versus $450 million expected, $1.38 billion previous).

In Japan, the Nikkei closed lower by 2.2% as trade nears a test of the 50- and 100-day moving averages. The strong yen lead to underperformance from exporters as Kyocera sank 5.2% and Fanuc shed 2.8%. Heavyweight Fast Retailing was also under pressure, giving up 4.2%.
Hong Kong's Hang Seng added 0.6% as trade rebounded off a three-week low. Casino operator Galaxy Entertainment rose 2.7% as traders moved into the name ahead of its monthly revenue release. Meanwhile, aluminum maker Chalco slipped 1.4% as materials lagged.
In China, the Shanghai Composite was closed.

Most major European indices trade in negative territory while Italy's MIB (+1.0%) outperforms after Silvio Berlusconi changed his tune and voiced support for Prime Minister Enrico Letta's government. It appears Mr. Berlusconi made the decision after seeing more than 20 PDL lawmakers ready to shun the party in order to preserve the current government. Economic data was limited as Great Britain's Construction PMI slipped to 58.9 from 59.1 (59.2 expected) and Housing Equity Withdrawal came in at -GBP15.4 billion (-GBP7.2 billion expected, -GBP13.4 billion prior). In Spain, the number of unemployed increased by 25,600 (12,300 expected, 0 previous).

Germany's DAX is lower by 0.5% with Deutsche Lufthansa (-2.6%) leading to the downside after receiving a downgrade from Deutsche Bank. Financials are holding up despite the broader weakness as Commerzbank and Deutsche Bank hold respective gains of 2.2% and 0.8%.
In Great Britain, the FTSE holds a loss of 0.7%. Food retailer Tesco is the weakest performer (-3.2%) after reporting disappointing results. Utilities are among the outperformers with National Grid and Severn Trent up 1.9% and 0.9% respectively.
France's CAC trades down 0.7% as consumer names weigh. LVMH Moet Hennessy Louis Vuitton and Pernod Ricard sport respective losses of 1.7% and 1.3%. Meanwhile, bank shares trade higher with BNP Paribas and Credit Agricole up 1.0% and 1.7%, respectively.
In Italy, the MIB is higher by 1.0%. Construction company Finmeccanica and financial Mediobanca lead with gains close to 6.0%.

08:26 am : [BRIEFING.COM] S&P futures vs fair value: -10.70. Nasdaq futures vs fair value: -17.00. The S&P 500 futures trade lower by 0.7%.

According to today's ADP National Employment Report, employment in the nonfarm private business sector rose by 166K in September. This was a bit below the increase of 170K expected by the Briefing.com consensus.

07:56 am : [BRIEFING.COM] S&P futures vs fair value: -7.00. Nasdaq futures vs fair value: -10.50. U.S. equity futures hover near their lows with the S&P 500 futures down 0.5% as the government shutdown enters its second day.

Reviewing overnight developments:

Asian markets ended mixed. Japan's Nikkei -2.2%, Hong Kong's Hang Seng +0.6%, and China's Shanghai Composite remained closed for the Golden Week.
In regional economic data:
Japan's monetary base grew 46.1% year-over-year (45.3% forecast, 42.0% prior).
Australia's ANZ Commodity Price Index rose 0.9% month-over-month (0.7% previous), building approvals fell 4.7% month-over-month (-2.0% expected, 10.2% prior), and the trade deficit narrowed to $820 million from $1.38 billion (-$450 million expected).
Looking at news:
Japan's Nikkei endured a notable decline as participants expressed disappointment over the government's decision to raise the sales tax without including a widely-expected corporate tax cut in the package.

Most major European indices trade in negative territory. Germany's DAX -0.4%, Great Britain's FTSE -0.5%, and France's CAC -0.6%. Elsewhere, Italy's MIB +1.5% and Spain's IBEX is unchanged.
Economic data was limited:
Great Britain's Construction PMI slipped to 58.9 from 59.1 (59.2 expected) and Housing Equity Withdrawal came in at -GBP15.4 billion (-GBP7.2 billion expected, -GBP13.4 billion prior).
In Spain, the number of unemployed increased by 25,600 (12,300 expected, 0 previous).
In news:
Italy's MIB trades well ahead of the remainder of the region amid indications Prime Minister Enrico Letta will survive today's confidence vote. In addition, recent reports indicate Silvio Berlusconi himself will support the premier after trying to convince his party to withdraw from government.

In U.S. corporate news:

Alcoa (AA 7.97, -0.21) is -2.6% following a Deutsche Bank downgrade to 'Sell' from 'Hold.'
Baxter (BAX 65.00, -0.58) is -0.9% after Credit Suisse downgraded the stock to 'Neutral' from 'Outperform.'
Tesoro (TSO 43.49, +0.39) is +0.9% in reaction to a Citigroup upgrade to 'Buy' from 'Neutral.'

The weekly MBA Mortgage Index slipped 0.4% to follow the prior week's increase of 5.5%.

The September ADP Employment Change report will cross the wires at 8:15 ET.

07:03 am : [BRIEFING.COM] S&P futures vs fair value: -11.00. Nasdaq futures vs fair value: -18.00.

07:03 am : Nikkei...14170.49...-314.20...-2.20%. Hang Seng...22984.48...+124.60...+0.60%.

07:03 am : FTSE...6040.15...-55.90...-0.90%. DAX...8638.03...-51.40...-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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