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 Post subject: October 8th Tuesday Trade Results - Profit $7967.50
PostPosted: Tue Oct 08, 2013 2:31 pm 
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Trade Results of M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
Price Action Trading (no technical indicators)
Phone: +1 708 572-4885
Free Chat Room: http://www.thestrategylab.com/tsl/forum/viewforum.php?f=164
Business Hours: 8am - 5pm est (Mon - Fri)
questions@thestrategylab.com (24/7)
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click on the above image to view today's performance verification

Price Action Trade Performance for Today: Emini TF ($TF_F) futures @ $830.00 dollars or +8.30 points, Emini ES ($ES_F) futures @ $7137.50 dollars or +142.75 points, Light Crude Oil CL ($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 @ $7967.50 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=1621

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.

Tech Stocks Crushed As Debt Deadline Looms

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

NEW YORK (CNNMoney)
Stocks had another bad day Tuesday as investors became increasingly nervous about a looming debt ceiling crisis.

The Dow Jones Industrial Average and the S&P 500 both ended the day down more than 1%. But tech stocks were hit particularly hard. The Nasdaq lost 2%.
What's up with the debt ceiling?
Are you better off?

Only a handful of Nasdaq stocks ended higher for the day. Meanwhile, many momentum stocks that have helped push the Nasdaq up more than 20% dropped sharply Tuesday.

Yahoo (YHOO, Fortune 500), Tesla (TSLA), Priceline (PCLN), Netflix (NFLX), Facebook (FB) and LinkedIn (LNKD) all fell between 3% and 7%.

CNNMoney's Fear & Greed Index now shows that Extreme Fear is driving the market. In another unsettling sign, yields on short-term Treasury bills have skyrocketed in the past few days. That may reflect growing worries from bond investors that the U.S. could actually default on some of its obligations.

Tuesday marked the eighth day of the government's shutdown. While the Dow has dropped more than 300 points in that time, the markets are actually performing better than many had expected. All three major indexes remain up more than 12% for the year.

Despite heated posturing, many experts think the Democrats and Republicans will be able to reach a last-minute agreement to raise the debt ceiling before October 17 and avoid a default.

Political brinksmanship is nothing new for today's markets, said Mark Luschini, chief investment strategist at Janney Montgomery Scott. For example, he noted that despite "a lot of bluster" about the fiscal cliff last year, the stock market ultimately held up well.

* 4 ways a debt ceiling crisis could affect you

Luschini expects the markets to be bumpy this week as stocks continue to move on any possible deal news, but "the real risk for the market doesn't increase until we go into the weekend." If a debt ceiling deal hasn't been reached by next week, making the prospect of a default more imminent, investors could become significantly more concerned, he said.

Traders on StockTwits had mixed feelings about the broader market sell-off though.

"$SPY $SPX $DIA $DJIA ugly market. Mr congress get your act together," wrote BiotechMoney18. But Scaletrader said that "the market is SUPPOSED to be able to go down too. I know, perma bulls don't want to hear that but that's the way it works."

Tuesday was also the start of third-quarter earnings season, with aluminum producer Alcoa (AA, Fortune 500) and Yum Brands (YUM, Fortune 500), the parent of KFC, Pizza Hut and Taco Bell, both reporting after the closing bell.

Alcoa beat analyst expectations, sending shares higher after hours.

While third quarter earnings are expected to be lackluster, investors will likely remain focused on the debt drama playing out in Washington.

Worst over for JCP? Shares of J.C. Penney (JCP, Fortune 500) rose early in the day after the embattled retailer announced that sales were up in September from August. The company also reported a surge in online purchases during September.

But it's clear J.C. Penney still has a lot to prove. It ended the day up less than 1%, but shares are down more than 50% for the year. Still, some StockTwits traders were optimistic.

"$JCP finally some GOOD news....at a time when walmart and other retailers did horrible," said ValueInvestor1 while EricSteiman added that it is "actually nice to be long $JCP today! Thanks Haters."

European markets finished broadly lower Tuesday, led by a more than 1% decline in London's FTSE 100, while Asian markets ended with gains. The Shanghai Composite index jumped 1% after investors returned from a long holiday.

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4:15 pm : It was day eight of the partial government shutdown and it was day two this week in which the major indices fell victim to broad-based selling interest. Once again, the budget/debt ceiling impasse in Washington was largely to blame.

The Nasdaq Composite was the biggest loser today, sliding 2.0% on the back of pronounced weakness in many of the market's favorite momentum stocks. The cracks in leading names like LinkedIn (LNKD 222.59, -14.62), Priceline.com (PCLN 997.60, -44.08), Tesla (TSLA 174.70, -8.37) and Facebook (FB 47.14, -3.38) provided an added cue for buyers to stick mostly to the sidelines.

There were efforts during the day to forge a rebound effort, but they were all short-lived as another day of back-and-forth remarks between Republicans and Democrats that amounted to more of the same entrenched views on reaching a budget agreement and raising the debt limit provided little incentive to commit new money.

Briefly, House Speaker Boehner said he would like the president to sit down and negotiate with the GOP before passing a continuing resolution and raising the debt limit while President Obama said he is open to negotiating after Congress passes a continuing resolution and raises the debt limit.

The major indices finished at their lows for the day as a final wave of selling interest in the last ten minutes completed today's damage.

The utilities (+0.6%) sector was the only sector in the S&P 500 to finish in positive territory. It was only fitting perhaps that the low beta sector outperformed as high beta stocks got hit hard.

Even so, there wasn't a full-on safety trade today. Longer-dated Treasuries and gold prices ended with modest losses while the US Dollar Index was little changed to the upside.

In terms of the Treasury market, the real point of interest was at the front end of the curve. The 4-week bill surged nearly 14 basis points to 0.29% as traders remained leary of the paper with the October 17 debt limit deadline on the near horizon. The 4-week yield is at its highest level since October 2008.

Wal-Mart (WMT 72.89, +1.02), Procter & Gamble (PG 76.35, +0.70), and Coca-Cola (KO 37.28, +0.23) were the only Dow components to finish higher. That helped the Dow Jones Industrial Average show some relative strength versus its counterparts, most of which fell between 1.2% and 2.0%.

The continued weakness in the stock market and the continued impasse in Washington continued to benefit the CBOE Volatility Index (20.48, +1.07), which tacked on another 5.5% after gaining 16% on Monday.

Volume picked up on today's sell-off. 733 mln shares traded at the NYSE versus just 595 mln on Monday. DJ30 -159.71 NASDAQ -75.54 SP500 -20.67 NASDAQ Adv/Vol/Dec 505/2.03 bln/2040 NYSE Adv/Vol/Dec 566/733 mln/2421

3:30 pm :

Nov crude oil traded higher today despite the dollar index recovering into positive territory. It advanced to a session high of $104.08 per barrel in morning floor action and spent the remainder of the session chopping around slightly below that level. It settled at $103.52 per barrel, booking a gain of 0.5%
Nov natural gas rose for a third consecutive session, climbing as high as $3.73 per MMBtu in afternoon pit trade. It settled 2.2% higher at $3.71 per MMBtu
Dec gold climbed to a session high of $1330.80 per ounce after lifting from its session low of $1315.40 per ounce set moments after pit trade opened. The yellow metal pulled-back as the dollar index gained momentum, and settled the session unchanged at $1324.90 per ounce
Dec silver slipped to a session low of $22.11 per ounce in early morning pit trade but erased the early loss and spent the remainder of the session trading slightly above the break-even line. It settled at $22.45 per ounce, booking a gain of 0.3%

DJ30 -99.09 NASDAQ -63.53 SP500 -13.93 NASDAQ Adv/Vol/Dec 597/1690.0 mln/1935 NYSE Adv/Vol/Dec 695/480 mln/2307

3:00 pm : With an hour to go, the stock market is holding pretty true to its form today. The major indices are sitting near their lows, unable to mount a concerted rebound try.

President Obama is currently answering questions for the press, but again, he isn't saying anything the market hasn't heard before from him. On a related note, a headline just crossed that Senator Reid will introduce a debt ceiling bill later today. For what it's worth, Speaker Boehner said over the weekend that the House doesn't have the votes to pass a clean debt limit bill.

The telecom services sector (-2.0%) remains the biggest loser today, but it has plenty of company with the technology (-1.4%), consumer discretionary (-1.5%), materials (-1.4%), and health care (-1.2%) sectors all sporting losses greater than 1.0%.
DJ30 -112.64 NASDAQ -69.10 SP500 -15.67 NASDAQ Adv/Vol/Dec 556/1.56 bln/1968 NYSE Adv/Vol/Dec 626/438 mln/2359

2:30 pm : President Obama stepped to the podium and said one word that said it all for the market. That word was... BUT.

It was the pregnant conjunction that was the seque for President Obama to reiterate his position on the budget and debt ceiling issues. He wants the House to hold a vote on a clean continuing resolution and when that bill passes, as he believes it will, discussions can be held on all budget issues. He then went on to summarize why Congress must then vote to raise the debt limit before the deadline is reached.

In brief, he said more of the same.

The major indices slipped to new session lows as he was speaking, but are in the midst of a rebound try with technical support holding in the 1657 area for the S&P 500.DJ30 -108.73 NASDAQ -68.15 SP500 -15.20 NASDAQ Adv/Vol/Dec 577/1.44 bln/1934 NYSE Adv/Vol/Dec 650/396 mln/2312

2:00 pm : With President Obama due shortly to give his statement on the latest goings-on in Washington, participants should have a good sense by the end of the day of what impact his statement made. That's because the major indices are basically sitting at their session lows.

The follow-through selling today has continued to benefit the CBOE Volatility Index (20.31, +0.90), which is up 4.6% after gaining 16% yesterday.

Nonetheless, there hasn't necessarily been a "flight to safety" today considering the 10-yr note is unchanged while gold prices and the US Dollar Index are basically flat.DJ30 -100.68 NASDAQ -65.35 SP500 -14.78 NASDAQ Adv/Vol/Dec 616/1.32 bln/1877 NYSE Adv/Vol/Dec 676/354 mln/2280

1:30 pm : Thus far, any effort to rebound has been short-lived. The market made a half-hearted attempt in the past 30 minutes, but was ultimately beaten back to session lows.

President Obama is due to make a statement at the top of the hour. If it goes anything like House Speaker Boehner's press conference did earlier this morning, which was simply a rehashing of the same criticisms the GOP-led House has had all along, then it would be little surprise to see the market get hit with additional selling interest.

To be sure, more of the same here does not equal more.

Separately, the 10-yr note has peaked its head into positive territory after suffering modest losses earlier in the day. In the wake of the $30 bln 3-yr note auction, the 10-year note is currently up one tick with its yield at 2.63%. DJ30 -89.59 NASDAQ -60.44 SP500 -12.97 NASDAQ Adv/Vol/Dec 605/1.24 bln/1867 NYSE Adv/Vol/Dec 688/331 mln/2255

1:00 pm : There isn't a whole lot to say with the New York lunch hour winding down that hasn't been said already. The stock market is on the defensive for the second straight day with the budget/debt ceiling standoff in Washington serving as the primary basis for keeping buyers sidelined.

Other factors playing a contributing part today include:

The loss of momentum among the momentum stocks
A violation of technical support levels
Earnings concerns linked to the effects of the government shutdown
The underperformance of the influential technology (-1.3%) and consumer discretionary (-1.3%) sectors

The brief summation is that causality is open for interpretation today, but no matter the cause, it has not been a buyer's market.

There are pockets of relative strength in the defensive-oriented consumer staples (+0.5%) and utilities (+1.3%) sectors; otherwise, there hasn't been much interest in putting new money to work. 27 of the 30 Dow components are in negative territory. Procter & Gamble (PG 76.91, +1.26), which was upgraded to Outperform from Market Perform at Wells Fargo Securities, Coca-Cola (KO 37.30, +0.25), and Wal-Mart (WMT 72.96, +1.09) are the lone gainers.

The Nasdaq Composite has been the loss leader among the major indices due to weakness in the large-cap technology stocks in general and specifically in momentum names like LinkedIn (LNKD 221.99, -15.22), Netflix (NFLX 302.58, -15.58), Priceline.com (PCLN 998.00, -43.68), and Facebook (FB 47.63, -2.88).

On the flip side, J.C. Penney (JCP 7.93, +0.22), which has been a momentum stock to the downside, is a winning standout today after providing a relatively encouraging same-store sales update for September.

The major indices are off their lows at the moment, but not by much. Reports indicate President Obama is due to make a statement at 2:00 p.m. ET. Based on what he says, expect the market to make a statement that either improves or worsens their standing.
DJ30 -88.17 NASDAQ -61.27 SP500 -12.69 NASDAQ Adv/Vol/Dec 609/1.15 bln/1878 NYSE Adv/Vol/Dec 686/301 mln/2227

12:30 pm : The major indices continue to be pinned to their lows as buyers are few and far between today. Breadth favors decliners by a 3-to-1 margin at both the NYSE and Nasdaq.

The notable underpeformance of the momentum stocks remains a key theme today and a storyline that is keeping buyers sidelined.

LinkedIn (LNKD 219.08, -18.13), Priceline.com (PCLN 1042.00, -41.26), Tesla (TSLA 173.87, -9.20) and Facebook (FB 47.41, -3.10) to a name a few are all down between 3-8%.

The Dow Jones Industrial Average, which isn't exactly a bastion of momentum stocks, is down 0.6%, which qualifies it as holding a position of relative strength among the major indices. DJ30 -90.13 NASDAQ -66.47 SP500 -14.15 NASDAQ Adv/Vol/Dec 578/1.03 bln/1879 NYSE Adv/Vol/Dec 660/273 mln/2231

12:00 pm : If the stock market could be thought of earlier as suffering the equivalent of a flat tire, then it can be thought of now as having suffered another blowout.

Losses were extended in the past 30 minutes and new session lows for the Dow, Nasdaq, and S&P 500 were established at -97, -63, and -14, respectively.

The utilities and consumer staples sectors are pockets of relative strength, but the weightier issue is that the technology sector (-1.3%) is showing little sign of lift as some its highflyers are among today's biggest laggards.

The move to take some money off the table in the momentum stocks, and most stocks in general, has been precipitated by several factors:

The acrimonious standoff in Washington regarding the budget and debt ceiling
A spike in the 4-week T-bill that is reflecting concerns about a debt limit deal not getting done in time
Violation of technical support levels
The lack of buyers in the market that, consequently, has lessened the motivation to buy on dips; and
Concerns that fourth quarter earnings guidance will prove disappointing

DJ30 -86.34 NASDAQ -58.03 SP500 -12.68 NASDAQ Adv/Vol/Dec 648/899 mln/1796 NYSE Adv/Vol/Dec 729/242 mln/2128

11:30 am : Plodding along near session lows with the influential technology sector (-1.0%) acting as a heavy drag on the proceedings.

Notable in today's decline is the underperformance of many of the darling momentum stocks. For example, Tesla (TSLA 178.66, -4.41), Netflix (NFLX 307.59, -10.57), Priceline.com (PCLN 1015.78, -25.90) and Facebook (FB 48.15, -2.36) are all underperforming the Nasdaq and the S&P 500.

Separately, the consumer discretionary sector (-0.7%) continues to underperform. J.C. Penney (JCP 8.08, +0.37) is an exception following a relatively encouraging update on same-store sales trends in September, but the retail group overall -- and the apparel companies in particular -- is under pressure this morning.

The SPDR S&P Retail ETF (XRT 80.55, -0.77) is down 1.0%.DJ30 -61.88 NASDAQ -43.23 SP500 -8.32 NASDAQ Adv/Vol/Dec 784/728 mln/1606 NYSE Adv/Vol/Dec 906/199 mln/1913

11:00 am : Selling pressure has picked up in the last 15 minutes, driving the major indices to new session lows. It is uncertain if the air pocket is due to technical selling pressure or technicalities pertaining to Washington as the latest headline says Democrats would reject a GOP plan that requires a new negotiating panel to reduce deficits.

Whatever the case may be, it is clear that buyers continue to stick to the sidelines for the most part and that has impeded a sustainable rebound effort.

The telecom services sector (-1.7%) continues to be the biggest loser based on percentage decline, but it is the technology sector (-1.0%), which has the heaviest weighting in the S&P 500, that is today's biggest loss leader for the broader market.

Pacing the Nasdaq decline are the likes of Google (GOOG 855.13, -10.61), Amazon.com (AMZN 303.33, -6.70), Apple (AAPL 485.04, -2.71), and Cisco (CSCO 22.74, -0.15). The Nasdaq 100 is down 1.1%. DJ30 -55.68 NASDAQ -38.41 SP500 -7.35 NASDAQ Adv/Vol/Dec 809/559 mln/1535 NYSE Adv/Vol/Dec 1000/162 mln/1781

10:30 am : The dollar has been gradually sliding lower in today's session and hit a new session low in recent action. This has all provided some price support to commodities.

Gold, silver, crude oil and natural gas all hit new session highs in recent action. All four are currently pulling off those session highs now. Crude oil is back below $104/barrel now and gold and silver are almost flat.

In current trade:

Dec gold is +0.2% at $1327.30/oz
Dec silver +0.2% at $22.44/oz
Nov crude oil +0.6% at $103.63/barrel
Nov natural gas +2.2% at $3.71/MMBtu
Dec copper +0.6% at $3.32/lb

DJ30 -16.97 NASDAQ -10.80 SP500 -1.31 NASDAQ Adv/Vol/Dec 1186/363.4 mln/1059 NYSE Adv/Vol/Dec 1410/121 mln/1310

10:00 am : It has been a sluggish start for the major indices, yet sellers haven't been able to gain any notable traction. Accordingly, the major indices are staring at slight losses after the first thirty minutes of trading.

There isn't much to be said for sector performance. The telecom services sector (-1.6%), which has a small weighting in the S&P 500, is the only sector that has moved more than 1.0%; otherwise, gains and/or losses for the other nine sectors have been less than 0.4%.

After yesterday's 16% spike, the CBOE Volatility Index is backpedaling slightly this morning with a decline of just 0.5%.

In other developments, the 4-week bill yield of 0.22% has reached its highest point since February 2009. The yield on that instrument has spiked 20 basis points since the government shutdown began and it is being viewed as a proxy for the market's concerns about the debt limit showdown. With that in mind, the $30 bln 4-week bill auction at 11:00 a.m. ET should garner more attention than usual. DJ30 -10.08 NASDAQ -4.27 SP500 -0.18 NASDAQ Adv/Vol/Dec 1188/205 mln/964 NYSE Adv/Vol/Dec 1370/82 mln/1278

09:40 am : Right on cue, the cash market took the stage in a relatively flat fashion when the opening bell rang. Not a lot of conviction from buyers at the moment, which is understandable given the uncertainty generated by budget/debt ceiling dealings in Washington.

The telecom services sector (-1.4%), which was the only gainer yesterday, is the biggest laggard today due to weakness in both AT&T (T 33.48, -0.07) and Verizon (VZ 46.53, -0.23), which were leaders yesterday. The quick turnaround there is a reflection of the lack of conviction among buyers in the current environment.

The defensive-oriented consumer staples and utilities sectors, which are basically flat, are the initial standouts in terms of showing relative strength.DJ30 -41.55 NASDAQ -6.85 SP500 -3.77 NASDAQ Adv/Vol/Dec 1017/91 mln/968 NYSE Adv/Vol/Dec 1047/51 mln/1514

09:16 am : [BRIEFING.COM] S&P futures vs fair value: flat. Nasdaq futures vs fair value: +1.20. The futures market could be offering a glimpse of not only what's to come at the start of trading, but throughout the day. The overnight trading action has been choppy and confined to a relatively narrow range.

Currently, the S&P futures are trading in-line with fair value, which is pointing to a relatively flat start for the cash market.

Trading volume was light yesterday with just 595 mln shares traded at the NYSE. The prospect of another day of limited participation is there, because so far it still looks like there is going to be limited participation in Washington on ending the budget impasse and settling the debt ceiling issue.

Everything is subject to change of course, but the capital markets have been reduced to a wait-and-see mode that keeps cash on the sideline.

08:59 am : [BRIEFING.COM] S&P futures vs fair value: -1.00. Nasdaq futures vs fair value: +2.50. Equity futures point to little change at the open as trade looks to get back on track after yesterday's slide. Traders will continue to watch the 1680 area as support at the level is helped by the 50-day moving average.

It was a sea of green across Asia as all of the major bourses, aside from Australia's ASX (-0.2%), ended in positive territory. China's Shanghai Composite (+1.1%) saw solid gains as traders returned to work following the Golden Week holiday, but it was emerging markets like Indonesia's Jakarta Composite (+1.3%) and Thailand's SET (+1.4%) that led the way. Japan's Nikkei (+0.3%) lagged after its current account surplus widened to JPY0.35 trln (JPY0.33 trln previous), but fell well short of the JPY0.65 trln that was expected.

In Japan, the Nikkei closed +0.3% as trade advanced for the first time in five days. The weaker yen provided a lift to exporters as Honda Motor added 0.7%. Elsewhere, real estate stocks firmed, with Sumitomo Realty & Development climbing 2.0%.
In Hong Kong, the Hang Seng finished +0.9% as shares saw a boost from the mainland returning to work. Retailer Esprit ended at its best level in six-weeks after Tiger Management announced it has upped its stake in the co to 5.09% (5.0%) previous.
In China, the Shanghai Composite settled +1.1% as action regained the 200-day moving. Environmental stocks were among the leaders as heavy smog rolled into Beijing over the weekend, prompting speculation the government would look to take action on the matter. Filtration product maker Xiamen Savings Environmental climbed 4.7%.

Markets across Europe are mostly lower as Britain's FTSE (-0.7%) paces the decline. Slight outperformance can be found in Italy's MIB (+0.1%) despite a notable increase in peripheral yields. Both the Italian and Spanish 10-yr yields are up a handful of basis points to 4.185% and 4.275%, respectively.

In Britain, the FTSE is -0.7% as financials and miners lag. Lloyds Banking Group and BHP Billiton lead their respective sectors to the downside with losses of 2.1% and 1.8%.
In France, the CAC is -0.1% as the financials trade mixed. Credit Agricole (+2.8%) is among today's leaders while Societe Generale (-1.0%) underperforms.
In Germany, the DAX holds little changed as shares have recovered their early losses. Utilities lead for a second session in a row as RWE and E.ON sport gains of 1.4% and 1.0%, respectively.

08:32 am : [BRIEFING.COM] S&P futures vs fair value: +1.20. Nasdaq futures vs fair value: +3.80. The S&P futures are now trading slightly above fair value following a min-spike in the futures on no news. The ability to hold trendline support overnight is perhaps feeding a belief that the market will try to rebound following Monday's broad-based sell-off.

There aren't any breakthrough developments out of Washington on the budget/debt ceiling impasse as of yet, but there is a sense that yesterday's poor showing by the stock market could get some stalled conversations going.

On a related note, the continuation of the partial government shutdown means the Trade Balance and JOLTs - Job Opening reports scheduled to be released today will be delayed.

08:03 am : [BRIEFING.COM] S&P futures vs fair value: -1.70. Nasdaq futures vs fair value: -0.50. Like the state of politics in Washington, the futures market is little changed at the moment. That is setting the stage for a relatively flat start for the cash market as the partial government shutdown in the US enters its eighth day.

Reviewing overnight developments:

Asian markets faltered early in the wake of the weak showing by the US on Monday, but rebounded late and finished mostly higher. Japan's Nikkei +0.3%; China's Shanghai Composite +1.1%; Hong Kong's Hang Seng +0.9%; and Thailand's SET Index +1.4%.
Economic data was limited:
The Chinese HSBC Services PMI ticked down to 52.4 from 52.8
Japan's adjusted current account 0.35 tln (0.65 tln expected) versus prior 0.33 tln
Japan's Economy Watchers Current Index rose to 52.8 from 51.2.
Australia's NAB Business Confidence climbed to 12 from 4 and the NAB Business Survey improved to -4 from -7.
In news:
Reports suggest retail sales were strong during China's "Golden Week" holiday

European indices are mostly lower with modest losses for the major bourses. Germany's DAX Index -0.1%; France's AC 40 -0.4%; and the UK's FTSE 100 -0.7%.
In economic data:
Germany's trade surplus widened to EUR 15.6 billion from EUR 15.0 billion (EUR 15.1 billion forecast) and factory orders fell 0.3% month-over-month (1.2% expected, -1.9% prior).
France's trade deficit narrowed to EUR 4.9 billion (-EUR5.0 billion expected, -EUR 5.1 billion prior) and the government budget deficit expanded to EUR 93.6 billion from EUR 80.8 billion.
Spain's industrial production fell 2.0% year-over-year (-2.0% expected, -1.2% prior).
Looking at news:
A Financial Times report said EU regulators are looking at penalizing banks that are still overly reliant on the ECB's LTRO facility
Retail sales growth was reported as being softer by the British Retail Consortium

In U.S. corporate news:

J.C. Penney (JCP 8.20, +0.49): Trading up 6.4% in premarket after reporting a 4.0% decline in September sales, which is a 580 bp improvement over August 2013
Wolverine World Wide (WWW 59.80, +1.95): Up 3.4% after beating the Q3 consensus EPS estimate by $0.13

07:15 am : [BRIEFING.COM] S&P futures vs fair value: -2.00. Nasdaq futures vs fair value: -1.50.

07:15 am : Nikkei...13894.61...+41.30...+0.30%. Hang Seng...23178.85...+204.90...+0.90%.

07:15 am : FTSE...6387.75...-49.50...-0.80%. DAX...8579.32...-12.30...-0.10%.

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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