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 Post subject: October 17th Thursday Trade Results - Profit $2817.50
PostPosted: Fri Oct 18, 2013 3:17 am 
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Trade Results of M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
Price Action Trading (no technical indicators)
Phone: +1 708 572-4885
Free Chat Room: http://www.thestrategylab.com/tsl/forum/viewforum.php?f=164
Business Hours: 8am - 5pm est (Mon - Fri)
questions@thestrategylab.com (24/7)
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click on the above image to view today's performance verification

Price Action Trade Performance for Today: Emini TF ($TF_F) futures @ $880.00 dollars or +8.80 points, Emini ES ($ES_F) futures @ $1937.50 dollars or +38.75 points, Light Crude Oil CL ($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 @ $2817.50 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=1628

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.

S&P 500 Hits Record High

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

NEW YORK (CNNMoney)
The S&P 500 hit a new record high Thursday, one day after lawmakers voted to reopen the government and ended a fiscal showdown that put the nation at risk of default. But a batch of lackluster corporate earnings weighed on the Dow.

The S&P 500 rose 0.7% to just above 1,733, surpassing the previous all-time high from last month. The Nasdaq also gained ground, but remains far from its record highs from 2000.

The Dow Jones industrial average ended the day flat as weakness in IBM (IBM, Fortune 500), Goldman Sachs (GS, Fortune 500) and UnitedHealth (UNH, Fortune 500) was balanced by strength in American Express (AXP, Fortune 500) and Verizon (VZ, Fortune 500).

IBM and Goldman are the second and third highest weighted components in the Dow, which is weighted by stock price as opposed to market value like the S&P 500. This means moves in these higher-priced stocks have an outsized impact on the Dow.

"IBM takes a huge bite since it's the highest priced Dow stock," said Hank Smith, chief investment officer at Haverford Trust.

Stocks surged more than 1% Wednesday following news that Congress had reached a deal to reopen the federal government and avert a potentially catastrophic default. But investors are still wondering what happens when the government bumps up against the debt ceiling again in February.

"While there's great relief that a deal was inked before the so-called deadline, the reality is that these new deadlines aren't too far away in terms of passing a budget and the next debt ceiling issue in early February," said Smith.

He added that investors should brace for more volatility as lawmakers continue to butt heads over spending. But he said there could be "more upside" for stocks if Congress can pass a budget before the end of the year.

The dollar was weaker against other major world currencies, sinking as much as 1% against the euro and the pound. European stocks were lower while Asian markets finished mixed.

* CNNMoney Fear & Greed Index shifts into neutral

Investors were also concerned about the economic toll of the impasse, which shut down large parts of the government for 16 days. The shutdown comes with a $24 billion price tag, according to Standard & Poor's.

About 70,000 federal workers filed for unemployment benefits during the first week of October, the Labor Department reported Thursday. The shutdown, which started Oct. 1, put thousands of federal employees temporarily out of work and without a paycheck.

But some investors are betting the gridlock in Washington means the Federal Reserve will maintain the pace and size of its bond buying program for longer than previously expected.

"We expect the damage will prompt the Federal Reserve to continue its full monthly dosage of quantitative easing at least into the first quarter of next year," said Jack Ablin, chief market strategist at BMO Private Bank.

* What did GOP win on Obamacare? Not much

Google shines, IBM tanks: After the market closed, Google (GOOG, Fortune 500) reported earnings and sales that topped analysts' expectations. That news sent shares above their all-time highs in extended trading.

IBM shares sank 7% after the tech giant reported quarterly sales that fell well short of expectations. Shares of eBay (EBAY, Fortune 500) fell 4% after the company offered weak guidance.

* Video - The Dow is not the market!

Shares of Goldman Sachs fell after the firm reported a year-over-year revenue decline. At the same time, Goldman's earnings per share topped forecasts and the company hiked its dividend by a nickel to 55 cents. UnitedHealth was down nearly 4% following its results.

"Today we see the problem of a price weighted index $GS $IBM," wrote StockTwits user BrianNichols.

Shares of UnitedHealth fell after the company trimmed its outlook for earnings growth this year.

"$UNH doesn't look healthy :)," quipped Partridge.

AMR Corp. (AAMRQ, Fortune 500), the parent of American Airlines that's now in bankruptcy, reported a record third-quarter operating profit. The company was also upgraded by analysts at JPMorgan, sending shares up nearly 10%. But at least one trader wasn't sure the gains would hold.

"$AAMRQ how much upside is really left here?" asked longhorn312.

Dow component Verizon (VZ, Fortune 500) jumped after the company reported a double-digit profit increase for the quarter thanks to strong gains in wireless subscribers. Verizon also said it wasn't able to meet customer demand for new iPhones because of supply constraints. Apple (AAPL, Fortune 500)shares edged higher after topping $500 a share earlier this week.

"$AAPL I think we bulls have Stockholm Syndrome. It's up 0.5% after debt ceiling resolution and good news from VZ, and we're so thankful," wrote packyM.

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4:20 pm : The major averages ended today's session on a mixed note as the Dow shed just over two points while the S&P 500 added 0.7% to notch a fresh all-time high at 1,733.45.

With the third quarter earnings season heating up, the Dow Jones Industrial Average was victimized by disappointing results from two market-moving names. Goldman Sachs (GS 158.32, -3.93) and IBM (IBM 174.83, -11.90) ended with respective losses of 2.4% and 6.4% after both reported bottom-line beats on light revenue. Goldman Sachs missed top-line estimates by roughly $500 million while IBM reported revenue $1 billion below analyst expectations.

Shares of IBM weighed on the technology sector (-0.2%) while financials (+0.9%) were able to shake off Goldman's weakness with help from American Express (AXP 80.23, +3.91). The Dow component jumped 5.1% following its earnings beat.

Among other notable Dow earnings, UnitedHealth Group (UNH 71.37, -3.82) fell 5.1% after reporting in-line results and Verizon (VZ 48.90, +1.65) gained 3.5% on above-consensus earnings.

Thanks to Verizon's strength, the telecom services sector (+1.9%) ended in the lead while other countercyclical groups-consumer staples (+1.0%), health care (+0.9%), and utilities (+1.6%)-also outperformed the broader market.

Elsewhere, the energy sector added 0.2% despite a 1.6% drop in crude oil. The energy component ended at $100.64 per barrel. Among other commodities, gold futures jumped 2.8% to $1318.60 per troy ounce.

Part of the surge in gold could be attributed to significant greenback weakness. The Dollar Index (79.66, -0.81) ended near its lowest level of the year as global investors perceived the Congressional deal to extend the debt ceiling as a temporary fix, rather than a solution to an issue that is sure to re-emerge in the first months of 2014.

In addition, the need to revisit the debt ceiling battle in a few months means the Federal Reserve will be less likely to taper its asset purchases during the early months of next year.

Treasuries finished near their highs with the 10-yr yield down seven basis points at 2.59%. Notably, the 4-week yield tumbled 12.5 basis points to 0.01% as default fears receded following the deal on Capitol Hill. The short-term yield was trading as high as 0.35% just a few days ago.

Trading volume was a bit above average as 758 million shares changed hands on the floor of the New York Stock Exchange.

On the economic front, computer problems in California kept the initial claims level elevated for a second week in a row. The weekly initial claims level fell to 358,000 from a slightly downwardly revised 373,000 (from 374,000) for the week ending October 5. The Briefing.com consensus expected the initial claims level to fall to 330,000.

Separately, the manufacturing sector in the Philadelphia region remained strong in October. The Philadelphia Fed's Business Outlook Survey fell to 19.8 from 22.3 in September. The Briefing.com consensus expected the index to fall to 7.0. Unlike what happened in the New York Fed's Empire Manufacturing Sector, the manufacturing outlook in the Philly region was not affected by the government shutdown.

There is no economic data scheduled to be reported tomorrow.

DJIA +17.3% YTD
S&P 500 +21.5% YTD
Nasdaq +27.9% YTD
Russell 2000 +29.8% YTD

DJ30 -2.18 NASDAQ +23.71 SP500 +11.61 NASDAQ Adv/Vol/Dec 1719/1.90 bln/822 NYSE Adv/Vol/Dec 2547/758.4 mln/499

3:30 pm :

Commodities traded in a mixed fashion today, while the dollar index slumped as the temporary Congressional deal to extend the debt ceiling gave rise to speculation that a taper to the Federal Reserve asset purchases will be less likely. Adding to the dollar's weakness was a downgrade of U.S. debt by Chinese rating agency Dagong
Dec gold extended yesterday's gains as it got a boost from the weaker dollar index. The yellow metal hit a session high of $1324.20 per ounce and settled at $1322.60 per ounce, booking a 3.2% gain. Dec silver also traded higher, brushing a session high of $22.20 per ounce in early morning pit trade. It eventually settled with a 2.8% gain at $21.97 per ounce.
Nov crude oil, on the other hand, traded in negative territory as investors reacted to a build in stockpiles reported by the API and Genscape, an energy intelligence company. The EIA did not release its scheduled inventory report due to the government shutdown, but the API said that oil stocks at Cushing, Oklahoma rose by 0.291 mln barrels last week.
Genscape reported they rose by 0.837 mln barrels. The energy component brushed a session low of $100.03 per barrel and settled with a 1.6% loss at $100.63 per barrel
Nov natural gas fell for a third consecutive session, brushing a session low of $3.73 per MM

DJ30 -25.11 NASDAQ +15.93 SP500 +8.26 NASDAQ Adv/Vol/Dec 1603/1562.9 mln/912 NYSE Adv/Vol/Dec 2378/466 mln/651

3:00 pm : Equity indices continue to hold their recent levels as today's session heads into its final hour. With the Q3 reporting season heating up, the next three weeks will bring a full slate of quarterly reports. Today, the Dow is feeling the effects of disappointing top-line results reported by Goldman Sachs (GS 157.89, -4.36) and IBM (IBM 174.55, -12.18).

Following today's close more than 30 companies covered by Briefing.com will report their earnings with Chipotle Mexican Grill (CMG 439.28, +1.21) and Google (GOOG 887.74, -10.29) headlining the list.DJ30 -42.24 NASDAQ +10.62 SP500 +6.05 NASDAQ Adv/Vol/Dec 1506/1.40 bln/997 NYSE Adv/Vol/Dec 2303/417.5 mln/690

2:30 pm : The key indices have not moved much since our last update as the S&P 500 holds a gain of 0.3% while the Dow lags with a loss of 0.3%. Although the S&P 500 trades well-ahead of the Dow, it has retreated from its session high of 1,729.64, which was just 0.22 below its all-time high registered on September 19.

Elsewhere, the Russell 2000 has been a bit more successful in its attempt at establishing a new record high. The small cap index trades with a gain of 0.5% after notching a fresh all-time best at 1,099.45.DJ30 -52.24 NASDAQ +9.25 SP500 +5.16 NASDAQ Adv/Vol/Dec 1536/1.31 bln/959 NYSE Adv/Vol/Dec 2295/391.1 mln/699

2:00 pm : The S&P 500 has hovered near its current level for the past 90 minutes after spending the first three hours of the session in a steady climb off its opening lows. Eight of ten sectors trade ahead of the benchmark index while energy (-0.3%) and technology (-0.5%) continue to lag.

The energy sector holds a modest loss as crude oil trades near its session low. The energy component is lower by 1.8% at $100.46 per barrel.

Elsewhere, the tech sector is being pressured by IBM (IBM 174.08, -12.65) and several other top components. Google (GOOG 888.12, -9.91), Oracle (ORCL 32.80, -0.22), and Cisco Systems (CSCO 22.62, -0.38) are all down between 0.5% and 1.5%. On the earnings front, eBay (EBAY 51.49, -2.03) trades lower by 3.8% after issuing below-consensus fourth quarter guidance in conjunction with its bottom-line beat.DJ30 -56.19 NASDAQ +8.84 SP500 +4.58 NASDAQ Adv/Vol/Dec 1514/1.21 bln/986 NYSE Adv/Vol/Dec 2307/359.7 mln/693

1:30 pm : All in all, the stock market has made a good show of things today. The Dow Jones Industrial Average is down just 54 points, but if you excluded IBM (IBM 175.01, -11.72), it would be in positive territory.

Once again, market participants have shown a proclivity to buy on the dip as the other indices have all rebounded into positive territory after traversing negative territory at the open.

The underpinning factor for stocks at this juncture isn't so much that a debt deal was worked out as it is the understanding that slow growth, fiscal headwinds, and partisan politics point to the increased likelihood that the FOMC will hold off on a tapering decision until 2014 at the earliest.

On that note, gold prices ($1322.80, +$40.60) are up sharply today, the US Dollar Index (79.71, -0.76) is down sharply, and longer-dated Treasury securities are rallying. The benchmark 10-yr note is up 18 ticks, dropping its yield to 2.60%. DJ30 -54.01 NASDAQ +11.92 SP500 +5.34 NASDAQ Adv/Vol/Dec 1587/1.12 bln/903 NYSE Adv/Vol/Dec 2362/331 mln/623

12:55 pm : At midday, the major averages trade in mixed fashion. The S&P 500 holds a modest gain of 0.4% while the Dow Jones Industrial Average (-0.3%) underperforms.

The price-weighted Dow lags after being hit with a one-two punch of disappointing quarterly results. Goldman Sachs (GS 157.14, -11.59) and IBM (IBM 175.14, -11.59) trade with respective losses of 2.6% and 6.2% after both names reported bottom-line beats on revenues well-below consensus estimates. Goldman Sachs' revenue was roughly $500 million below expectations while IBM missed analyst expectations by $1 billion.

Among other earnings from Dow components, UnitedHealth Group (UNH 71.28, -3.91) is lower by 5.2% following its in-line report while Verizon (VZ 48.85, +1.60) trades higher by 3.4% after beating on earnings. Thanks to Verizon's outperformance, the telecom sector (+1.7%) trades ahead of the remaining nine groups.

Outside of telecom services, seven other sectors trade in the green with consumer staples (+0.8%), financials (+0.6%), and materials (+1.0%) contributing to the broader market's rebound.

On the downside, energy (-0.1%) and technology (-0.3%) trade with modest losses.

Treasuries are on their highs with the 10-yr yield down six basis points at 2.60%. More notably, the 4-week yield is lower by 13.5 basis points at 0.01% as default fears have receded following the deal on Capitol Hill. The yield was trading as high as 0.35% just a few days ago.

Although equities have climbed off their lows, the Dollar Index (79.70, -0.77) sits near its lowest level of the year as global investors perceive the Congressional deal to extend the debt ceiling as a temporary fix, rather than a solution to an issue that will re-emerge in the first months of 2014. Having to revisit the debt ceiling battle in a few months means the Federal Reserve will be less likely to taper its asset purchases during the early months of next year. The Dollar Index has been in a steady decline since mid-June and today's 1.0% loss puts it at its lowest level since February.

In today's economic data, computer problems in California kept the initial claims level elevated for a second week in a row. The weekly initial claims level fell to 358,000 from a slightly downwardly revised 373,000 (from 374,000) for the week ending October 5. The Briefing.com consensus expected the initial claims level to fall to 330,000.

Separately, the manufacturing sector in the Philadelphia region remained strong in October. The Philadelphia Fed's Business Outlook Survey fell to 19.8 from 22.3 in September. The Briefing.com consensus expected the index to fall to 7.0. Unlike what happened in the New York Fed's Empire Manufacturing Sector, the manufacturing outlook in the Philly region was not affected by the government shutdown.DJ30 -37.00 NASDAQ +17.49 SP500 +7.70 NASDAQ Adv/Vol/Dec 1619/1.02 bln/852 NYSE Adv/Vol/Dec 2373/300.8 mln/589

12:35 pm : The S&P 500 has continued its climb, and the benchmark index now trades less than three points below its all-time high of 1,729.86. Although the index began the session with a six point loss, it has been climbing steadily since the opening minutes.

Countercyclical sectors have been mixed as of late, but today all four defensive groups trade ahead of the broader market. Consumer staples, health care, telecom services, and utilities hold gains between 0.4% and 1.7% with the telecom sector in the lead after Verizon (VZ 48.78, +1.53) posted better-than-expected earnings.DJ30 -49.96 NASDAQ +15.09 SP500 +5.96 NASDAQ Adv/Vol/Dec 1619/956.9 mln/856 NYSE Adv/Vol/Dec 2357/282.4 mln/597

12:00 pm : The major averages have continued their rebound, but the Dow has yet to climb into positive territory. Even though 18 of 30 index components trade in the green, the significant losses in the shares of Goldman Sachs (GS 158.39, -3.86) and IBM (IBM 175.59, -11.14) have prevented a more robust recovery from taking place.

Even though Goldman Sachs and IBM act as bellwethers, their respective sectors have held up relatively well. The financial space outperforms with a gain of 0.4% while technology sports a loss of 0.3% after erasing the bulk of its opening decline.DJ30 -48.29 NASDAQ +12.08 SP500 +4.66 NASDAQ Adv/Vol/Dec 1555/861.3 mln/885 NYSE Adv/Vol/Dec 2273/254.2 mln/657

11:30 am : The Nasdaq (+0.2%) and S&P 500 (+0.1%) have climbed to fresh highs while the Dow (-0.5%) remains in negative territory.

Although equities have climbed off their lows, the Dollar Index (79.70, -0.77) trades near its lowest level of the year as global investors view the Congressional deal to extend the debt ceiling as a Band-Aid, rather than a solution to an issue that will re-emerge in the first months of 2014. The Dollar Index has been in a steady decline since mid-June and today's 1.0% loss puts it at its lowest level since February. The British pound and Swiss franc have displayed some notable strength against the greenback with the pound holding a 1.4% gain while the franc has added 1.2% versus the dollar.

Elsewhere, Treasuries have risen to fresh highs. The 10-yr note is up 17 ticks with its yield down seven basis points at 2.60%.DJ30 -71.06 NASDAQ +6.98 SP500 +1.52 NASDAQ Adv/Vol/Dec 1481/731.4 mln/945 NYSE Adv/Vol/Dec 2094/215.8 mln/787

10:55 am : The Nasdaq (-0.1%) and S&P 500 (-0.1%) have erased the bulk of their opening losses while the Dow (-0.6%) remains pressured by the shares of Goldman Sachs (GS 157.92, -4.33) and IBM (IBM 175.45, -11.28) after the two reported disappointing top-line results.

Meanwhile, the broader market has been able to recover, drawing strength from the outperformance among consumer staples (+0.4%), materials (+0.6%), utilities (+0.3%), and telecom services (+1.4%).

The financial sector (unch) also trades ahead of the broader market. The relative weakness of Goldman Sachs has been overshadowed by the 3.9% gain in American Express (AXP 79.31, +2.99) after the company reported a bottom-line beat.

Treasuries continue to hold their highs with the 10-yr yield down six basis points at 2.60%.DJ30 -89.81 NASDAQ -2.44 SP500 -0.82 NASDAQ Adv/Vol/Dec 1241/603.1 mln/1108 NYSE Adv/Vol/Dec 1869/179.4 mln/978

10:30 am : Commodities are mixed this morning with energy lower and metals higher.

Precious metals are higher following weakness in the dollar index and a following a deal to open the govt again, which seems to have created to idea that the Fed would delay tapering given the effects of the shutdown.

Dec gold is currently +2.7% t $1316.80/oz, Dec silver is -2.0% at $21.79/oz.

Crude oil has been lower all day so far and hit a new LoD in recent trade.

Late yesterday, the American Petroleum Institute reported that crude oil supplies in the U.S. rose 5.9 mln barrels at the Cushing, OK hub, coming in well above expectations.

Crude oil prices are trading lower this morning and just hit a new LoD, despite weakness in the dollar index, following this data. We expect that traders/investors are placing more importance into these numbers than usual since the weekly EIA crude oil inventory data won't be released today due to the govt shutdown (Maybe they will begin to release it again next week following the re-opening of the govt?).

Nov crude oil is now -1.3% at $100.95/barrel, while Nov natural gas is -0.8% at $3.74/MMBtu.DJ30 -89.54 NASDAQ -1.36 SP500 -0.50 NASDAQ Adv/Vol/Dec 1190/484.5 mln/1115 NYSE Adv/Vol/Dec 1758/147 mln/1057

10:00 am : The S&P 500 trades lower by 0.3%.

The October Philadelphia Fed Survey fell to 19.8 from 22.3. Economists polled by Briefing.com had expected that the Survey would decline to 7.0.DJ30 -108.70 NASDAQ -10.00 SP500 -4.41 NASDAQ Adv/Vol/Dec 980/308.8 mln/1253 NYSE Adv/Vol/Dec 1358/101.3 mln/1389

09:45 am : As expected, the major averages registered opening losses with the Dow Jones Industrial Average (-0.7%) leading to the downside. Meanwhile, the S&P 500 trades lower by 0.2%. Eight of ten sectors hover in the red while materials (+0.4%) and telecom services (+1.0%) outperform.

The price-weighted Dow is being pressured by two of its top three components as Goldman Sachs (GS 158.75, -3.50) and IBM (IBM 174.31, -12.35) trade with respective losses of 2.3% and 6.6%. The two names are selling off after both reported bottom-line beats on revenues that were well below analyst expectations.

On the upside, the materials sector has received support from shares of PPG Industries (PPG 168.70, +2.48) after the company reported a bottom-line beat.

Elsewhere, the telecom sector outperforms as Verizon (VZ 48.36, +1.11) trades higher by 2.4% after beating on earnings.

The October Philadelphia Fed survey will be released at 10:00 ETDJ30 -101.51 NASDAQ -7.58 SP500 -3.84 NASDAQ Adv/Vol/Dec 888/176.9 mln/1241 NYSE Adv/Vol/Dec 1193/68.4 mln/1462

09:15 am : [BRIEFING.COM] S&P futures vs fair value: -8.60. Nasdaq futures vs fair value: -16.00. The major averages are poised to begin today's session in the red as disappointing quarterly results from market-moving names weigh on index futures. The Dow futures trade lower by 0.7% as Goldman Sachs (GS 156.66, -5.60) and IBM (IBM 172.40, -14.34) hold pre-market losses of 3.5% and 7.7%, respectively. Both companies surpassed their respective earnings estimates while top-line results disappointed. Goldman Sachs reported third quarter revenue roughly $500 million below consensus expectations while IBM missed sales estimates by $1 billion.

Looking at other earnings from Dow components, UnitedHealth Group (UNH 71.00, -4.22) is lower by 5.6% following its in-line report and Verizon (VZ 48.20, +1.00) trades up 2.1% after reporting better-than-expected results.

In today's economic data, computer problems in California kept the initial claims level elevated for a second week in a row. The weekly initial claims level fell to 358,000 from a slightly downwardly revised 373,000 (from 374,000) for the week ending October 5. The Briefing.com consensus expected the initial claims level to fall to 330,000.

Treasuries sit near their overnight highs with the 10-yr yield down five basis points at 2.63%.

08:56 am : [BRIEFING.COM] S&P futures vs fair value: -6.00. Nasdaq futures vs fair value: -12.50. The S&P 500 futures trade lower by 0.2%.

Markets across Asia ended mixed after Congress announced an eleventh-hour deal that kicks the can down the road into early 2014. Japan's Nikkei (+0.8%) was among the leaders while India's Sensex (-0.6%) lagged as traders returned to work. Data out of the region saw China's foreign direct investment up 6.2% so far this year, Australia's NAB Quarterly Business Confidence improve to 3 (-1 previous), Hong Kong's unemployment rate hold steady at 3.3% (3.3% expected), and Singapore's trade surplus widen to SGD4.5 billion (SGD3.9 billion previous).

In Japan, the Nikkei closed higher by 0.8% as trade rallied for the seventh straight day. Real estate and financials outperformed as Sumitomo Realty & Development gained 1.7% and Mitsubishi UFJ Financial added 1.1% to end among the leaders of their respective sectors.
Hong Kong's Hang Seng shed 0.6% as trade slipped off the October highs. Energy shares were mixed as coal-based China Shenhua Energy surged 4.7% and PetroChina gave up 1.1%.
In China, the Shanghai Composite slipped 0.2% as trade posted its lowest close of October. Stocks that have benefitted from the recently announced free-trade zone led the way lower as Shanghai Lujiazui tumbled 6.2% and Shanghai Oriental Pearl plunged the limit, 10%.

Major European indices trade lower across the board with Italy's MIB (-0.7%) leading to the downside after Moody's commented on the country's banking system, saying the outlook remains 'Negative.' Regional economic news was limited. Eurozone current account surplus expanded to EUR17.40 billion from EUR15.50 billion (EUR17.70 billion forecast). Great Britain's retail sales rose 0.6% month-over-month (0.4% expected, -0.8% prior) while the year-over-year reading increased 2.2% (2.1% forecast, 2.1% previous). Meanwhile, core retail sales rose 0.7% month-over-month (0.3% expected, -0.8% last) and improved 2.8% on a year-over-year basis (2.1% forecast, 2.3% prior).

Great Britain's FTSE is off 0.3% as industrials lag. Meggitt and Weir Group trade lower by 1.5% and 2.9%, respectively. On the upside, media names trade among the leaders with ITV higher by 2.1% and British Sky Broadcasting holding a gain of 6.2%.
In France, the CAC trades lower by 0.6% with utilities leading to the downside. GDF Suez is lower by 3.0% and Veolia Environnement trades with a loss of 1.9%. Food retailer Carrefour outperforms with a gain of 2.2%.
Germany's DAX holds a loss of 0.7% as electricity provider E.ON leads to the downside with a loss of 2.3%. Chemical producers outperform with Lanxess and Linde up 1.7% and 0.2%, respectively.

08:30 am : S&P futures vs fair value: -5.90. Nasdaq futures vs fair value: -11.80. The S&P 500 futures trade lower by 0.2%.

The latest weekly initial jobless claims count totaled 358,000, which was higher than the 330,000 that had been expected by the Briefing.com consensus. Today's tally was below the prior week count of 373,000. As for continuing claims, they fell to 2.859 million from 2.902 million.

08:00 am : S&P futures vs fair value: -4.00. Nasdaq futures vs fair value: -9.50. U.S. equity futures hover in the red with the S&P 500 futures off 0.1%. Meanwhile, Dow futures trade lower by 0.4% as Goldman Sachs (GS 158.31, -3.94) and IBM (IBM 173.28, -13.35) weigh. The two top-weighted index components reported bottom-line beats, but both reported significant revenue misses. Goldman reported third quarter revenue $500 million below analyst expectations while IBM missed revenue estimates by $1 billion.

Looking at overnight developments:

Asian markets ended mixed. China's Shanghai Composite -0.2%, Hong Kong's Hang Seng -0.6%, and Japan's Nikkei +0.8%.
In regional economic data:
China's Foreign Direct Investment narrowed to 6.20% from 6.37%.
Australia's NAB Quarterly Business Confidence improved to 3.0 from -1.0.
Hong Kong's unemployment rate remained unchanged at 3.3%, as expected.
South Korea's PPI slipped 0.1% month-over-month (0.3% prior) while the year-over-year reading fell 1.8% (-1.3% previous).
Looking at news:
China's Dagong rating agency cut the U.S. sovereign debt rating to 'A-' from 'A' while maintaining a negative outlook.
In Japan, the Nikkei outperformed even as the yen strengthened, sending USDJPY below the 98.00 level. The pair currently trades near 97.90.

Major European indices trade lower across the board. Great Britain's FTSE -0.1%, France's CAC -0.3%, and Germany's DAX -0.4%. Elsewhere, Italy's MIB -0.7% and Spain's IBEX -0.1%.
Regional economic news was limited:
Eurozone current account surplus expanded to EUR17.40 billion from EUR15.50 billion (EUR17.70 billion forecast).
Great Britain's retail sales rose 0.6% month-over-month (0.4% expected, -0.8% prior) while the year-over-year reading increased 2.2% (2.1% forecast, 2.1% previous). Meanwhile, core retail sales rose 0.7% month-over-month (0.3% expected, -0.8% last) and improved 2.8% on a year-over-year basis (2.1% forecast, 2.3% prior).
In news:
Moody's commented on the Italian banking system, saying its outlook remains 'Negative.' On that note, Italy's MIB trails behind other regional indices with bank shares leading to the downside.

In U.S. corporate news:

American Express (AXP 76.20, -0.12): -0.2% despite beating on earnings on in-line revenue.
Baxter (BAX 65.00, -2.56): -3.8% following its in-line earnings and revenue.
eBay (EBAY 50.70, -2.82): -5.3% after its below-consensus fourth-quarter earnings and revenue guidance overshadowed its third-quarter earnings beat.
Select Comfort (SCSS 17.26, -6.94): -28.7% after missing on earnings, revenue, and guiding fourth-quarter earnings below consensus.
Supervalu (SVU 8.96, +0.56): +6.7% after beating on earnings and revenue.
UnitedHealth (UNH 73.00, -2.19): -2.9% following its in-line earnings report.
Verizon (VZ 48.99, +1.74): +3.7% following its bottom-line beat.

Weekly initial claims will be reported at 8:30 ET while the October Philadelphia Fed survey will be released at 10:00 ET.

07:02 am : Nikkei...14586.51...+119.40...+0.80%. Hang Seng...23094.88...-133.50...-0.60%.

07:02 am : FTSE...6561.43...-10.20...-0.20%. DAX...8801.31...-44.60...-0.50%.

07:00 am : S&P futures vs fair value: -4.0. Nasdaq futures vs fair value: -12.00.

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

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