TheStrategyLab.com Price Action Trading Support Forum

Forum for price action traders that want to learn WRB Analysis basic tutorial chapters 1, 2 and 3 prior to purchasing our advance trade methods. Hashtags: #wrbanalysis #wrbzone #wrbhiddengap #priceaction #trading
It is currently Thu Mar 28, 2024 4:13 pm

All times are UTC - 5 hours [ DST ]




Post new topic Reply to topic  [ 1 post ] 
Author Message
 Post subject: October 7th Monday Trade Results - Profit $2550.00
PostPosted: Mon Oct 07, 2013 11:18 pm 
Offline
Site Admin

Joined: Sat Jan 10, 2009 2:06 pm
Posts: 4335
Location: Canada
Image

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)
http://twitter.com/wrbtrader (24/7)

Attachment:
100713-wrbtrader-Price-Action-Trading-PnL-Blotter-Profit+2550.00.png
100713-wrbtrader-Price-Action-Trading-PnL-Blotter-Profit+2550.00.png [ 84.35 KiB | Viewed 313 times ]

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 @ $2550.00 dollars or +51.00 points, Light Crude Oil CL ($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 @ $2550.00 dollars.

Russell 2000 Emini TF Futures: 1 tick or 0.10 = $10.00 dollars and there's more contract information @ The ICE
S&P 500 Emini ES Futures: 1 tick or 0.25 = $12.50 dollars and there's more contract information @ CMEGroup
Light Crude Oil CL (WTI) Futures: 1 tick or 0.01 = $10.00 dollars and there's more contract information @ CMEGroup
Gold GC Futures: 1 tick or 0.10 = $10.00 dollars and there's more contract information @ CMEGroup
EuroFX 6E Futures: 1 tick or 0.0001 = $12.50 dollars and there's more contract information @ CMEGroup

In addition, all of my trades were posted real-time in the 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=1620

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

-----------------------------

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 Fall 1% As Debt Drama Continues

Attachment:
100713-Key-Price-Action-Markets.png
100713-Key-Price-Action-Markets.png [ 528.27 KiB | Viewed 305 times ]

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

NEW YORK (CNNMoney)
The debt ceiling deadlock is finally starting to rattle investors.

During the first six days of the government shutdown, investors had a relatively blasé attitude toward the drama in Washington. But as a critical Oct. 17 deadline approaches, stocks continue to fall.

The Dow Jones industrial average, the S&P 500, and the Nasdaq closed down nearly 1% Monday.

Congress waiting for a sell-off? Several analysts say that a sharp sell-off in stocks could be the one thing that pushes Congress to act swiftly.

So far, stocks have been holding up pretty well..

"A resilient stock market and a cloudy economic picture increase the risk of an extended shutdown in our view," Bank of America analysts wrote in a report over the weekend.

The government shutdown is in day 7, and lawmakers appear no closer to resolving the impasse.

* Shutdown, debt ceiling uncertainty looms

Sounding the alarm on the debt ceiling: Treasury Secretary Jack Lew said Sunday that Congress was "playing with fire," with the possibility of a U.S. default only a little over a week away.

Deutsche Bank analyst David Bianco thinks the lack of a debt resolution will drag on the S&P 500 this week, but says there's little chance that the U.S. will default.

However, if it does, Bianco says the S&P 500 could sink 45%.

That echoes the sentiment of ETX Capital market strategist Ishaq Siddiqi, who said the debt ceiling debacle could lead to a "subsequent meltdown of global asset prices."

Last week, Bank of America analysts said the government shutdown wouldn't impact fourth-quarter GDP growth. But over the weekend, they changed their tune and lowered growth estimates for the fourth quarter to a 2% annual rate from 2.5%.

Earnings kick off this week: The first corporate results for the third quarter come out Tuesday, when aluminum maker Alcoa (AA, Fortune 500) reports after the market close.

Two of the biggest banks -- Dow component JPMorgan Chase (JPM, Fortune 500)and Wells Fargo (WFC, Fortune 500) -- report Friday morning. Bank stocks, including JPMorgan, Bank of America (BAC, Fortune 500), Citigroup (C, Fortune 500), and Goldman Sachs (GZPHF), dropped nearly 2%.

Analysts fear that weak third-quarter earnings could also weigh on stock prices.

* Fed taper won't cause another Asia financial crisis

What's moving: Shares of Apple (AAPL, Fortune 500) rose after the iPhone maker was upgraded by Jefferies analyst Peter Misek.

"$AAPL Haters be Damned, Peter Misek Has Been Great on Apple (AAPL) Target = $600 http://stks.co/alZL Bullish," StockTwits users TimZ wrote.

Still with Apple down nearly 30% from its all-time highs hit in 2012, many investors are still skeptical. "$AAPL "It's Tough to Get Past the Idea That Tim Cook Has 'No Clue'" http://stks.co/blUN, wrote ValTheGal.

Shares of BlackBerry (BBRY)gained nearly 4% on talk that new buyers are emerging for the troubled smartphone maker.

The buyers, according to reports, could consider buying Blackberry in parts. That's giving investors at least some hope that a deal may actually get done.

"$BBRY $BB.CA Financial Post: "BlackBerry survival seen in security not smartphones" http://stks.co/tVS7 Bullish," rgb66rgb wrote on StockTwits.

But some traders noted that looking at BlackBerry is a far cry from buying it.

"$BBRY Any Large corp looking for growth, will analyse the potential of any company, specially those with Billions in revenues," wrote i7up2001.

Image



4:10 pm : It was a poor start to the week for the equity market and the same thing could be said for politics in Washington. The two were inextricably linked today as stock market participants were put off by some revelations from House Speaker Boehner over the weekend that made it sound as if partisan positions are hardening and not easing the closer we get to the October 17 debt limit deadline.

In particular, Mr. Boehner told ABC's George Stephanopolous that:

the House does not have the votes to pass a clean continuing resolution
the votes are not in the House to pass a clean debt limit increase; and
the US is on a path to default because President Obama won't negotiate over the debt ceiling

Mr. Boehner's viewpoints were decried by his opponents as reckless rhetoric. The bottom-line for the market, however, is that nothing has been done yet with respect to the budget and debt ceiling. That understanding in turn left many participants sticking to the sidelines on concern that a deal may wait until the last minute.

Even though conventional wisdom holds that a deal will get done and that a worst-case scenario will be averted, the market is nonetheless mindful that a similarly-held position in 2011 didn't stop the S&P 500 from falling 17% between July 22 and August 8 that year.

Not surprisingly, volume was on the light side today as the incentive to participate was taken away by Washington's woes.

An absence of buyers paved a path to a sizable decline when the opening bell rang. Shortly after the start of trading, the Dow, Nasdaq, and S&P 500 dropped 152, 34, and 16 points, respectively. They would soon attract some buying interest with the S&P 500 holding support in the 1675/1674 area. The opening losses would eventually be cut in half, but the rebound effort ran out of steam. The major indices were then range-bound for the majority of today's session until they rolled over again in the final hour on a wave of late selling pressure that transpired without a specific news catalyst.

The only sector to escape today's weakness was the telecom services sector (+0.6%). All other sectors traded lower with the growth-sensitive cyclical sectors bearing the brunt of the selling pressure. The consumer discretionary (-1.4%), financial (-1.2%), and materials (-1.2%) sectors were the biggest losers.

In terms of market cap size, the small-cap Russell 2000 (-1.1%) and S&P 400 mid-cap (-1.1%) averages were the hardest hit, although the blue chip averages were not far behind, demonstrating that today's selling was broad-based.

The standout performer today was the CBOE Volatility Index (19.24, +2.50). It surged 15% to a three-month high as participants were positioning for an increase in near-term volatility.

The Consumer Credit report for August was the lone economic release today. The report, which is compiled by the Federal Reserve, showed consumer credit increased $13.6 bln (Briefing.com consensus $11.8 bln) versus a prior increase of $10.4 bln. Like most other consumer credit reports, though, this one was also glossed over given its dated nature and history of seeing large revisions.

The August trade balance report and the JOLTS - Job Openings report were due to be released on Tuesday, but they will be delayed on account of the partial government shutdown which is looking like it will enter its eighth day on Tuesday.
DJ30 -136.34 NASDAQ -37.38 SP500 -14.38 NASDAQ Adv/Vol/Dec 660/1.42 bln/1885 NYSE Adv/Vol/Dec 644/595 mln/2394

3:35 pm :

Nov crude oil traded lower today as production in the Gulf of Mexico resumed after the U.S. National Hurricane Center downgraded Tropical Storm Karen to a Tropical Depression. Prices dipped as low as $101.86 per barrel in early morning pit trade and later brushed a session high of $103.74 per barrel
The energy component pulled back slightly in afternoon floor action and settled 0.7% lower at $103.03 per barrel
Nov natural gas, on the other hand, extended Friday's gains as forecasts called for warmer weather. It lifted from a session low of $3.57 per MMBtu and rose to a session high of $3.66 per MMBtu in late morning action. Natural gas eventually settled with a solid 3.4% gain at $3.63 per MMBtu
Precious metals rose on a weaker dollar index and a continued stalemate over a budget/debt ceiling deal
Dec gold popped to a session high of $1329.50 per ounce shortly after equity markets opened and settled with a 1.1% gain at $1324.90 per ounce
Dec silver came off its session low of $21.91 per ounce and touched a session high of $22.50 per ounce by late morning pit action. It booked a 1.1% gain as it closed at $22.38 per ounce.

DJ30 -95.88 NASDAQ -27.40 SP500 -9.51 NASDAQ Adv/Vol/Dec 813/1155.2 mln/1736 NYSE Adv/Vol/Dec 778/362 mln/2556

2:55 pm : Entering the final hour of trading, the major indices are near their rebound highs from the opening sell-off this morning. It will be interesting to see how the market closes, as it has not been uncommon to see a spike up, or down, in the late stages of trading that belies how the rest of the day unfolded.

The way things stand now, though, is the way things have stood since about 10:15 a.m. ET.

With the economic calendar interrupted this week, the earnings calendar will soon grab the spotlight. Alcoa (AA 7.87, -0.09) and YUM! Brands (YUM 71.49, -0.04) report their third quarter results after the close tomorrow, but the report from JPMorgan Chase (JPM 52.08, -0.59) before the open on Friday is the one that is going to attract added attention. The real rush of third quarter reports, however, begins next week.

According to FactSet, third quarter earnings per share are expected to increase 3.0% versus 6.5% on June 30. Once again, the reporting bar has been lowered leading up to the reports, thereby setting up the heightened potential for positive surprises. DJ30 -76.88 NASDAQ -20.20 SP500 -6.69 NASDAQ Adv/Vol/Dec 846/1.04 bln/1681 NYSE Adv/Vol/Dec 831/323 mln/2155

2:30 pm : The stock market hasn't been in a hurry to get anywhere this afternoon, turning a normal trading day into one that feels much longer.

With most of the world's attention focused on Washington, it is understandable that some other developments get glossed over. In particular, there hasn't been much mention to this point by us or other sources of the World Bank cutting its 2014 growth forecasts for China (to 7.7% from 8.0%) and Developing East Asia (to 7.2% from 7.6%).

Reduced growth forecasts for these areas have been in the news the past few months, yet they might have garnered more attention today if the dysfunction in Washington wasn't such a prominent news item.

In any event, these reduced forecasts could also be playing a part behind the slide in oil prices ($102.84/bbl, -$1.00) today in addition to some relief that tropical Storm Karen wasn't more disruptive in the Gulf.DJ30 -81.02 NASDAQ -20.64 SP500 -6.95 NASDAQ Adv/Vol/Dec 860/976 mln/1664 NYSE Adv/Vol/Dec 825/304 mln/2153

2:00 pm : Market is steady as she goes but not actually steady. It has reversed most of Friday's gains and appears a little aimless at the moment.

The S&P 500 has traded in a four-point range for the better part of the last four hours. The telecom services sector (+0.9%), which has been a pocket of relative strength all day, is now the only S&P sector sporting a gain at this time.

Strikingly, the Treasury market has seen its early strength fade. The 10-year note, which is up five ticks, has seen its gain cut in half. DJ30 -79.81 NASDAQ -20.49 SP500 -7.21

1:30 pm : The same sideways action persists with the indices confined to narrow ranges, much to the chagrin of many traders.

Notably, the consumer discretionary sector (-1.1%) is the biggest laggard today due in large part to broad-based weakness in the retail sector.

It's a sea of red in the apparel space with individual losses ranging primarily from 1.0% to 3.0%. The underperformance there could be a nod to the market's concerns about consumer confidence taking a hit on the shutdown and consumer spending specifically being held back due to furloughed workers and the overriding sense of uncertainty about the goings-on in Washington.

On a related note, the Retail Sales report for September is supposed to be released on Friday, but that report will be delayed unless an agreement is worked out soon to re-open the government.
DJ30 -87.28 NASDAQ -24.02 SP500 -8.35 NASDAQ Adv/Vol/Dec 824/824 mln/1686 NYSE Adv/Vol/Dec 742/257 mln/2224

1:00 pm : For the most part, there has been one current running through the stock market today and it has caused an electric shock that stymied Friday's advance. The jolt came from the consideration that no progress was made over the weekend in Washington on a budget and/or debt ceiling deal.

If anything, market participants have been left with an impression that the partisan resolve has stiffened and that any deal that gets done may not get struck until the last minute.

House Speaker Boehner has been the point person of interest today following a weekend appearance on ABC's "This Week with George Stephanopolous" in which Speaker Boehner said: (a) the House does not have the votes to pass a clean continuing resolution (b) the votes are not in the House to pass a clean debt limit increase and (c) it is his position that the US is on the path to default on its debt because of President Obama's stance that he won't negotiate over the debt ceiling.

Those political tidbits have cast a pall on stock markets around the globe as investors have grown a bit more anxious about the economic impact of a prolonged government shutdown in the US and, more importantly, the specter of the US playing with default fire.

Shortly after the opening bell, the Dow, Nasdaq and S&P 500 were down 152, 34, and 16 points, respectively. The early drop found a floor in the 1675/1674 area for the S&P 500, which served as a rebound springboard that helped the major indices cut their losses by more than half. However, a lack of concerted sector leadership and the tiring nature of focusing on the drama unfolding in Washington has interfered with a full-on recovery effort.

Today's pockets of relative strength are found mostly in defensive-oriented areas like the utilities (+0.02%), telecom services (+0.7%), and consumer staples (-0.3%) sectors, as well as in gold ($13.23.70/oz., +$13.70) and Treasury securities. AT&T (T 34.06, +0.30) and Verizon (VZ 47.36, +0.26) lead a short list (six to be exact) of Dow components trading with a gain at this juncture.

There hasn't been any market-moving corporate news of note and the economic calendar has been mostly an afterthought given the government shutdown. The Consumer Credit report for August (Briefing.com consensus $11.8 bln; prior $10.4 bln), which is released by the Federal Reserve, will be published at 3:00 p.m. ET.
DJ30 -95.50 NASDAQ -26.20 SP500 -8.90 NASDAQ Adv/Vol/Dec 779/743 mln/1710 NYSE Adv/Vol/Dec 730/231 mln/2223

12:30 pm : After a roller-coaster start, the major indices have been moving in fits and starts for the better part of the last two hours on relatively light volume.

With what's going on in Washington (or not going on), participants can certainly be excused for wanting to remain on the sidelines. There could ultimately be a strong relief rally when a deal gets worked out, but anxiousness over the potential damage that could get done before then is certainly detracting from buying interest.

In 2011, a debt limit deal was struck on August 2. Nevertheless, the S&P 500 declined 17% between July 22 and August 8. The start date of that correction coincided with the news that House Speaker Boehner ended talks with President Obama due to an impasse over the level of revenue increases that would be attached to a deficit-cutting deal. The end date coincided with a 6.7% plunge in a single session after Standard & Poor's cut its AAA rating for the US.

For what it's worth, Coca-Cola (KO 37.28, +0.08) was the best-performing Dow component during that tumultuous period with a decline of 6.6% while PepsiCo (PEP 79.22, -0.40) was the best-performing S&P 500 member with a decline of 4.2%. DJ30 -98.68 NASDAQ -27.22 SP500 -9.02 NASDAQ Adv/Vol/Dec 769/685 mln/1710 NYSE Adv/Vol/Dec 738/213 mln/2192

11:55 am : It ain't over yet. The recovery stalled, but now the major averages are at recovery highs.

There hasn't been a news catalyst for the latest uptick, which has been a blanket trade covering most sectors. That is, buying interest has been broad-based, enabling most sectors to pare larger losses. There are just two sectors - utilities (+0.2%) and telecom services (+0.8%) - trading in positive territory, but everything else is moving off the lows from earlier.

Small caps are underperforming the broader action today, but not to a large degree (no pun intended). The Russell 2000 is down 0.7% versus a 0.4% decline for the S&P 500.DJ30 -62.99 NASDAQ -19.69 SP500 -6.30

11:30 am : The recovery bid off the opening lows has run out of gas and the major averages have pulled in for a pit stop, only it is uncertain if they'll get out of the pits with enough gas to make another concerted run at cutting today's losses.

Relative strength has been seen in the utilities (+0.2%), telecom services (+0.9%), and consumer staples (-0.2%) sectors, which are defensively-oriented. Similarly, gold ($1325.70/oz., +$16.00) and Treasury prices have caught a safety bid amid the uncertainty swirling in Washington.

The big winner thus far today is volatility. The CBOE Volatility Index (18.30, +1.56) is up 9.3% as participants position for increased volatility in the near-term on the presumption the debt ceiling debate could possibly go down to the last minute before a deal gets done.DJ30 -91.64 NASDAQ -22.77 SP500 -8.43 NASDAQ Adv/Vol/Dec 766/527 mln/1680 NYSE Adv/Vol/Dec 795/168 mln/2105

11:00 am : The major indices have cut their opening losses roughly in half. The first rebound catalyst was holding technical support in the 1675/1674 area. The second catalyst came from a vague debt ceiling agreement rumor (emphasis on the word rumor).

In any event, the roller coaster action is consistent with the market activity of late as investors seize on any optimistic-sounding headline pertaining to the debate in Washington and seize up on any pessimistic-sounding headlines pertaining to the debate in Washington.

The end result is that there just isn't a lot of conviction on either the buy side or the sell side to sustain any significant move. To that end, the S&P 500 entering today was up 0.5% since the start of the government shutdown on October 1. It is currently down 0.4% today and is just two points above its closing level on September 30.DJ30 -78.86 NASDAQ -14.95 SP500 -6.85 NASDAQ Adv/Vol/Dec 792/445 mln/1624 NYSE Adv/Vol/Dec 815/143 mln/2043

10:35 am : Commodities are mixed this morning. The dollar index has been in the red all session, but began to rally higher in recent action, which helped weigh on commodity prices.

Gold and silver prices spiked to new session highs earlier this morning. Both precious metals erased some of its gains and have been trading in a consolidated fashion. Dec gold is now, Dec silver is now

Natural gas prices rallied this morning, rising as high as $3.62/MMBtu. Its held its gains and is now +2.7% at $3.60/MMBtu.

Crude oil prices sold off late in the weekend after Tropical Storm Karen was downgraded. The storm catalysts in addition to the govt shutdown nicely weighed on crude oil prices. Nov crude oil is now -1.3% at $102.48/barrel. DJ30 -75.91 NASDAQ -9.83 SP500 -6.09 NASDAQ Adv/Vol/Dec 791/346.2 mln/1581 NYSE Adv/Vol/Dec 768/121 mln/2050

10:00 am : A selling flush hit stocks at the open, dropping the S&P 500 to a technical support zone at 1675/1674. That support held and the major averages have subsequently pared a slice of their opening losses.

The rebound bid, though, doesn't have a lot of mojo behind it at this point as sector leadership (and many might say Washington leadership) is lacking. The budget/debt ceiling debate is going to be a focal point for the market until a deal gets worked out. That should lead to increased volatility and choppy trading action.

Every Dow component is trading lower at the moment, with the exception of AT&T (33.81, +0.06) and Verizon (VZ 47.19, +0.09), which have helped push the telecom services sector (+0.4%) into a position of relative strength today. DJ30 -120.70 NASDAQ -22.16 SP500 -11.63 NASDAQ Adv/Vol/Dec 588/213 mln/1745 NYSE Adv/Vol/Dec 505/83 mln/2264

09:45 am : The cash market stuck to the script written for it by the futures market and opened decidedly lower. Selling pressure is broad-based and currently features the cyclical sectors leading the losses.

The underperformance of the cyclical sectors is consistent with what transpired in the face of the debt ceiling drama in 2011. We looked at that tumultuous period in our latest installment of The Big Picture, Debt Ceiling Deja Vu?, and examined what's at stake this time around.

The weakest sector at this point is the financial sector (-1.1%), which is due to grab the spotlight at the end of the week when JPMorgan Chase (JPM 52.10, -0.57) and Wells Fargo (WFC 40.69, -0.61) report their third quarter earnings before the open on Friday. DJ30 -125.94 NASDAQ -26.78 SP500 -12.71 NASDAQ Adv/Vol/Dec 463/122 mln/1814 NYSE Adv/Vol/Dec 382/59 mln/2347

09:16 am : [BRIEFING.COM] S&P futures vs fair value: -13.00. Nasdaq futures vs fair value: -23.00. The table has been set for a lower open with all conversations pointing to the shutdown drama in Washington as the basis for the negative disposition.

Some of the risk-on positioning is getting a little less risky as participants wait for the next chapter to be written in Washington. There is still a strong underlying belief that a deal will get done before the doomsday clock hits the midnight hour, yet the mere thought that the budget/debt ceiling battle is going to come down to the last minute is offputting and is providing an excuse to take some money off the table in a market that is up 18.5% year-to-date.



09:00 am : S&P futures vs fair value: -13.00. Nasdaq futures vs fair value: -22.80. Equity futures point to a heavy open as the weekend budget/debt ceiling negotiations failed to make any meaningful progress. The overnight weakness has the major averages on track to erase virtually all of Friday's gains with the S&P 500 likely to see yet another test of 1680 support that is aided by the 50-day moving average.

Markets across Asia were broadly lower as the lack of progress in U.S. budget/debt ceiling negotiations weighed. Japan's Nikkei (-1.2%) lagged the rest of the region thanks to the lack of clarity in U.S. budget negotiations, and the stronger yen. Only the Philippines' PSEi (+0.8%) saw a gain as shares continued their recent strength following last week's sovereign upgrade by Moody's. Chinese banks remained shuttered for Golden Week, but will reopen tomorrow.

In Japan, the Nikkei closed -1.2% as shares fell for the fifth time in seven days. Real estate shares were under pressure as Mitsui Fudosan and Sumitomo Realty & Development gave up 2.0% and 2.8%, respectively.
In Hong Kong, the Hang Seng finished -0.7% as shares slipped for a second day. Real estate names were weak with Sun Hung Kai giving up 2.6%.
In China, the Shanghai Composite was closed.

In Europe, all of the major bourses trade in the red as Germany's DAX (-1.0%) paces the decline. Interestingly, debt markets across the region are firm with the core slightly outperforming the periphery. A modest bid has the 10-yr Bund and Gilt yields off 4 bps apiece at 1.800% and 2.700%, respectively.

In Britain, the FTSE is -0.8% as just a handful of names trade in the green. Commodity-related names are under pressure with Lonmin and Royal Dutch Shell off 2.6% and 1.5%, respectively.
In France, the CAC is -0.6% as trade continues to climb off its worst levels. Consumer goods and financials are lagging as LVMH Louis Vuitton Hennessy and Credit Agricole both trade down 1.4% to lead their respective sectors lower.
In Germany, the DAX is -0.9% as only a couple of names are seeing gains. Financials are the worst performers with Commerzbank and Deutsche Bank both down 1.9%. Utilities lead as RWE and E.ON sport gains of 5.0% and 3.6%, respectively.

08:33 am : [BRIEFING.COM] S&P futures vs fair value: -13.70. Nasdaq futures vs fair value: -24.00. The S&P futures have moved off their lows, but not by much as the weight of Washington's budget impasse is acting as a prominent drag this morning.

There was a small measure of hope leading into the weekend that some progress would be made on budget negotiations, yet that belief was dispelled following remarks from House Speaker Boehner over the weekend that suggested no progress has been made. The one comment that has caught everyone's attention is Mr. Boehner's view that the US is headed on a path to default if President Obama maintains his "no negotiating" stance on the debt limit.

With the shutdown entering its seventh day, many government reports will again be delayed. The Consumer Credit report for August (Briefing.com consensus $11.8 bln; prior $10.4 bln), however, will be released at 3:00 p.m. ET today as originally scheduled.

08:04 am : [BRIEFING.COM] S&P futures vs fair value: -12.90. Nasdaq futures vs fair value: -23.50. The futures market is presaging a decidedly lower start for the cash market with concerns about the budget/debt ceiling showdown in Washington behind the selling. Over the weekend, House Speaker Boehner said there are not enough votes in the House to pass a clean continuing resolution and that the US is on a path to default given that the president refuses to negotiate.

Reviewing overnight developments:

In Asia, Japan's Nikkei -1.2%, Hong Kong's Hang Seng -0.7%, and the Shanghai Composite remained closed for Golden Week (it will reopen on Tuesday).
Regional economic data was limited:
Japan's Leading Index checked in at 106.5 (106.9 expected) versus 107.7 in the previous reading
In news:
Tokyo Electric Power fell sharply after a power failure disrupted efforts to cool nuclear reactors at Fukushima
Airbus reportedly struck a deal with Japan Airlines

In Europe, major bourses are on the defensive: Germany's DAX -1.0%, France's CAC-40 -0.9%, England's FTSE 100 -0.8%
Economic data was limited
Norway manufacturing production -0.7% 0.4% expected) versus a 0.1% increase in the previous reading
Eurozone investor confidence at 6.1 (10.6 expected) versus prior 6.5
In news:
Greece introduced a draft budget for 2014 in which it projected 0.6% growth

In US corporate news:

Blackberry (BBRY 8.09, +0.39): Trading 5.0% higher on reports SAP, Google, and Cisco are looking at all or part of Blackberry
Toll Brothers (TOL 30.38, -0.68): Down 2.0% following Goldman Sachs downgrade to Neutral from Buy
IBM (IBM 181.50, -2.60): Off 1.4% with Barclays downgrading to Equal Weight from Overweight

07:22 am : [BRIEFING.COM] S&P futures vs fair value: -15.00. Nasdaq futures vs fair value: -27.00.

07:22 am : Nikkei...13853.32...-171.00...-1.20%. Hang Seng...22973.95...-164.60...-0.70%.

07:22 am : FTSE...6394.23...-59.60...-0.90%. DAX...8530.20...-92.90...-1.00%.

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

http://www.thestrategylab.com
Phone: +1 708 572-4885
Business Hours: 8am - 5pm est (Mon - Fri)
Skype Messenger: kebec2002
questions@thestrategylab.com
Go Back To TheStrategyLab.com Homepage
Market Update


Top
 Profile  
 
Display posts from previous:  Sort by  
Post new topic Reply to topic  [ 1 post ] 

All times are UTC - 5 hours [ DST ]


Who is online

Users browsing this forum: No registered users and 1 guest


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot post attachments in this forum

Search for:
Jump to:  
cron
Powered by phpBB © 2000, 2002, 2005, 2007 phpBB Group
Translated by Xaphos © 2007, 2008, 2009 phpBB.fr