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 Post subject: December 20th Friday Trade Results - Profit $1165.00
PostPosted: Fri Dec 20, 2013 6:04 pm 
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Joined: Sat Jan 10, 2009 2:06 pm
Posts: 4335
Location: Canada
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Trade Results of M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
Price Action Trading (no technical indicators)
Phone: +1 708 572-4885
Free Chat Room: http://www.thestrategylab.com/tsl/forum/viewforum.php?f=164
Business Hours: 8am - 5pm est (Mon - Fri)
questions@thestrategylab.com (24/7)
http://twitter.com/wrbtrader (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 @ $290.00 dollars or +2.90 points, Emini ES ($ES_F) futures @ $875.00 dollars or +17.50 points, Light Crude Oil CL ($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 @ $1,165.00 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=124&t=1678

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 ##TheStrategyLab Chat Room is free. Members and I use the chat room to post WRB Analysis commentary, real-time trades and to post anything else related to trading. The chat room helps me tremendously in my own trading because I use it to document (journal) my thought process from trade to trade so that I can easily review at a later date my thoughts as I interacted with the markets...info I can not get from my broker statements. Also, this is not a signal calling chat room where a head trader tells you when to buy or sell. If you join the chat room and then you do not ask any questions about WRB Analysis in your own trading...the chat room will not be useful to you. Chat room access instructions @ http://www.thestrategylab.com/tsl/forum/viewforum.php?f=164

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 (answering your questions) prior to purchasing the Volatility Trading Report (VTR).

Image Trading Plan Daily Routine @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=226&t=2114

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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.

Ho! Ho! Ho! Dow, S&P End At Record Highs

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

NEW YORK (CNNMoney)
Markets got into the holiday spirit Friday after the U.S. government said economic activity ramped up significantly in the third quarter.

The Dow Jones Industrial Average, S&P 500 and Nasdaq all closed higher, with the Dow and S&P both at record highs. The Nasdaq finished up 1%, and topped the 4,100 mark for the first time since September 2000.

Gross domestic product -- the broadest measure of economic activity -- grew at a 4.1% annual pace in the third quarter, up from the 2.8% pace that was originally reported in November. The revised GDP figure shows the highest rate of growth for the economy since the last quarter of 2011, and comes just days after the Federal Reserve started pulling back on its economic stimulus by $10 billion per month.

Friday's gains put the market into positive territory for the week and month. After a bumpy start to December, stocks are finally experiencing a so-called Santa Claus rally, moving higher at the end of the year.

If stocks continue to head higher next week, it may have to do so quietly. Volume is expected to extremely light as the market is only open for a half-day trading on Tuesday (Christmas Eve) and is closed on Wednesday for Christmas.

* Federal Reserve assets now top $4 trillion

What's moving: BlackBerry (BBRY) shares jumped 15% in volatile trading, after the company reported a steeper-than-expected $4.4 billion loss and a 56% drop in quarterly sales.

The struggling smart phone maker also announced a five-year strategic partnership with electronics contract manufacturer Foxconn. Still, interim CEO John Chen was optimistic during a conference call with analysts and expressed confidence that the company could turn around.

"$BBRY Take your profits, we have had these jumps before," said StockTwits trader AKEB, who seemed skeptical that Friday's surge was justified.

But StockTwits user killer4482 was more bullish.

"$BBRY the bottom has been found and we are now on our way up," he said.

* Video - 2013 was great for stocks. Now what?

Open-source software company Red Hat (RHT)soared 14% after a strong earnings report. That made Red Hat the top gainer in the S&P 500 for the day.

But StockTwits trader ianvollmer didn't think the stock's rally could be sustained.

"$RHT has no more juice left for the day," he said.

Nike (NKE, Fortune 500) shares dipped despite reporting quarterly profits that barely beat expectations.

One StockTwits trader user is nonetheless bullish.

"$NKE Don't be afraid of the swoooooosh," said Ghost22, referring to the company's logo.

And with the Dow and S&P 500 reaching all-time highs, several notable stocks hit records too, including Amazon (AMZN, Fortune 500), which topped $400 a share for the first time.

$AMZN Moving fast," quipped StockTwits trader Johhny.

Other notable blue chip companies that hit records Friday include Google (GOOG, Fortune 500), Walt Disney (DIS, Fortune 500), Comcast (CCV), and American Express (AXP, Fortune 500).

* Google fined $1.2 million over privacy violations

Gold extended its decline Friday, a day after hitting a three-year low. Prices have plunged 30% this year, the worst annual performance for the precious metal in decades.

European markets finished higher, while Asian markets ended mixed.

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4:15 pm: [BRIEFING.COM] The major averages capped a solid week with a broad advance. The S&P 500 added 0.5%, extending its weekly gain to 2.7%.

Equities spent the entire session in a steady climb after the final reading of third quarter GDP sparked a broad-based rally. The report pointed to growth of 4.1%, which was the strongest reading since the economy expanded by 4.9% in the fourth quarter of 2011, and well above the 2.5% gain reported in the second quarter. Real final sales, which exclude inventory growth, increased 2.5%. That was up from a 1.9% gain reported in the second estimate, and was the largest gain since a 3.4% increase was observed in Q4 2011.

Even though all the key indices rallied, the small-cap Russell 2000 (+1.9%) had the best showing. Meanwhile, the S&P 500 posted a more modest gain as nine of ten sectors finished in the green.

The largest S&P 500 sector, technology (+0.9%) played a significant part in the rally. The group received support from large-cap names like Apple (AAPL 549.02, +4.56), Google (GOOG 1100.62, +14.40), and Microsoft (MSFT 36.80, +0.55). Chipmakers also chipped in as the PHLX Semiconductor Index gained 0.8%.

On a related note, the tech sector's strength contributed to the outperformance of the Nasdaq (+1.2%), which also received noteworthy support from biotechnology. The iShares Nasdaq Biotechnology ETF (IBB 223.70, +5.71) surged 2.6%.

In turn, biotechnology gave a boost to the health care sector (+0.5%), which kept pace with the S&P 500 throughout the session.

Another influential group, financials (+0.5%) lagged for the majority of the session, but caught up to the broader market in the late afternoon.

Although most sectors had a strong showing, energy (+0.1%) and materials (+0.3%) struggled to gain traction. The energy sector underperformed as two large members, Chevron (CVX 122.78, -0.44) and Exxon Mobil (XOM 98.68, -0.75) spent the day in the red. The pair of Dow components also factored into the underperformance of the Dow Jones Industrial Average (+0.3%).

On the downside, the telecom services sector (-0.6%) was the lone decliner.

Today's participation was well above average as nearly two billion shares changed hands on the floor of the New York Stock Exchange. The final tally was aided by additional activity associated with quadruple witching and quarterly rebalancing that took place today.

Treasuries ended on their highs after staging an intraday reversal. The 10-yr yield tested resistance earlier this morning at 2.95% (September closing high). Despite the stronger-than-expected Q3 GDP revision, the 10-yr came barreling back in a surprising manner that probably stirred some short-covering activity that has exacerbated today's gains. The 10-yr note settled higher by 11 ticks with its yield down four basis points at 2.89%.

On Monday, November personal income, personal spending, and core PCE prices will all be reported at 8:30 ET while the final reading of the Michigan Consumer Sentiment Survey will be released at 9:55 ET.

Nasdaq +35.9% YTD
Russell 2000 +35.0% YTD
S&P 500 +27.5% YTD
DJIA +23.8% YTD

Week in Review: Taper Arrives But Stocks Party On

On Monday, the S&P 500 settled higher by 0.6%, snapping its four-day losing streak. The bulk of the advance occurred shortly after the open as the Dow, Nasdaq, and S&P 500 notched their highs during the initial 30 minutes. Small-caps were a notable exception as the Russell 2000 (+1.2%) climbed throughout the day, trimming its month-to-date loss to 2.0%. Nine of ten sectors registered gains with cyclical groups maintaining their lead throughout the session. The energy sector (+1.0%) displayed strength from the open after its largest component, Exxon Mobil, was upgraded to 'Buy' from 'Neutral' at Goldman Sachs. Crude oil, which added 0.9% to $97.47/bbl, also played a part in the sector's strength.

Equities spent the bulk of the Tuesday session in the red, but afternoon buying interest helped the major averages end just below their respective flat lines. The S&P 500 shed 0.3% as eight of ten sectors registered losses. Meanwhile, the Dow (-0.1%) traded ahead of its peers all session long as some of its top components provided support. 3M (MMM 136.72, +0.31) and Boeing (BA 136.67, +1.50) posted respective gains of 2.9% and 0.9% after both increased their quarterly dividends. The price-weighted index also received notable support from its top member, Visa (V 215.97, -0.11), which advanced 2.7%.

Wednesday saw equities settle on their highs after dovish forward guidance from the Federal Reserve offset the immediate impact of a tapering announcement. Although the Federal Open Market Committee reduced the size of its monthly asset purchases from $85 billion to $75 billion, it pledged to keep the target Fed Funds Rate near its current levels 'well past the time that the unemployment rate declines below 6.5%.' The dovish guidance was also the likely reason for Treasuries retracing all of their post-announcement losses. The benchmark 10-yr yield ended with a five basis point gain at 2.89%, which is essentially where it traded before the afternoon announcement.

The stock market followed the Wednesday surge with a quiet Thursday session, which featured the added news that the Senate passed the two-year budget agreement. After some early gyrations, the major indices held to pretty tight trading ranges throughout the session and ended the day little changed. All in all, it was a pretty good showing given the scope of Wednesday's advance and considering the yield on the 10-yr note went as high as 2.95% before settling back down to 2.93%. A lack of concerted leadership and some buying exhaustion were to blame for the inability to log another record closing high for the S&P 500. It challenged Wednesday's high on two occasions, but each time it was greeted with renewed selling interest that held it in check. The Dow, though, eked out another record close.

3:30 pm: [BRIEFING.COM] Precious metals and crude oil rose today, gaining support from a slight decline in the dollar index. Feb gold rose back above the $1200 level today as it lifted from its session low of $1990.40 per ounce set in early morning pit trade.

It touched a session high of $1206.90 per ounce and eventually settled with a 0.9% gain at $1203.80 per ounce. Today's advance shaved losses for the week to 2.5%. Mar silver also advanced in morning pit trade after trading as low as $19.15 per ounce earlier in the session. It brushed a session high of $19.52 per ounce and settled with a 1.4% gain at $19.45 per ounce, booking a 0.8% weekly loss.

Feb crude oil slipped to a session low of $98.54 per barrel but recovered into positive territory in afternoon floor trade. It settled 0.3% higher at $99.33 per barrel, bringing gains for the week to 2.6%.

Jan natural gas spent most of today's session in negative territory. Although rices rose to a session high of $4.48 per MMBtu, they promptly reversed back into the red. Natural gas closed 1.1% lower at its session low of $4.41per MMBtu, booking a 1.1% gain for the week.

3:00 pm: [BRIEFING.COM] The major averages hover near their highs with one hour remaining in today's session. Afternoon action has not generated too much excitement with stocks inching higher after a sharp morning rally.

Given its current standing, the S&P 500 is on track to end the week with an impressive gain of 2.7%. Furthermore, the solid weekly gain has helped the benchmark index swing from a December loss to a 1.0% gain. Should the advance hold through the rest of the month, the index will register its 10th monthly increase of the year.

2:30 pm: [BRIEFING.COM] Equities remain near their best levels of the day with the S&P 500 trading higher by 0.8%.

Participants received a handful of quarterly reports today ahead of the upcoming holiday-shortened week. Most notably, Nike (NKE 77.32, -0.94) beat its earnings estimates by one cent, but the stock trades lower by 1.2%, which weighs on the Dow Jones Industrial Average.

Since below-average participation is expected next week, investors will receive just three quarterly reports. Following Monday's close, CalAmp (CAMP 27.83, +1.53) and Piedmont (PNY 33.27, +0.74) will report their results while Cooper Tire (CTB 22.36, +0.01) will release its earnings ahead of Thursday's opening bell.

2:00 pm: [BRIEFING.COM] The major averages remain near their best levels of the session.

Today's economic data was limited to the final revision of third quarter GDP. The better-than-expected report was cheered by participants as stocks rallied steadily following the morning release.

Next week's data will be limited to just a handful of noteworthy reports. On Monday, November personal income, personal spending, and core PCE prices will all be reported at 8:30 ET. However, the reports are not expected to have as much trading impact as the final reading of the Michigan Consumer Sentiment Survey, which will be released at 9:55 ET.

1:30 pm: [BRIEFING.COM] The major indices are posting some solid gains in a reflection perhaps of some early Christmas cheer. Next week volume should tail off noticeably as trading desks thin out due to vacation schedules. That leaves today as the final business day until after Christmas, or even the new year, for many participants.

Whatever the case may be, there has clearly been a bullish bias so far on this options expiration day. One of the factors that looks to be helping the stock market is the turn at the back end of the Treasury yield curve.

Specifically, the 10-yr yield tested resistance earlier this morning at 2.95% (September closing high). Despite the stronger-than-expected Q3 GDP revision, the 10-yr came barreling back in a surprising manner that probably stirred some short-covering activity that has exacerbated today's gains. The 10-yr note is currently up 12 ticks with its yield down to 2.88%.

The drop in yield looks to be helping the rate-sensitive utilities sector (+1.3%), which is today's best-performing sector in the S&P 500.

1:00 pm: [BRIEFING.COM] The stock market began the session on an upbeat note, and has climbed throughout the session, after the final reading of third quarter GDP surprised to the upside. The report pointed to growth of 4.1%, which was the strongest reading since the economy expanded by 4.9% in the fourth quarter of 2011, and well above the 2.5% gain reported in the second quarter. Real final sales, which exclude inventory growth, increased 2.5%. That was up from a 1.9% gain reported in the second estimate, and was the largest gain since a 3.4% increase was observed in Q4 2011.

Emboldened by the strong GDP report, equity indices have rallied steadily through the first half of the trading day with the small-cap Russell 2000 (+1.4%) providing leadership. At this juncture, the Russell 2000 remains in the lead while yesterday's laggard, Nasdaq (+1.1%), follows not far behind. For its part, the S&P 500 displays a more modest gain of 0.7% as all nine of ten sectors hover in the green.

Fittingly, with the tech-heavy Nasdaq trading ahead of the broader market, the technology sector outperforms (+1.1%). Large-cap components have contributed to the strength as Apple (AAPL 549.97, +5.51), Google (GOOG 1097.60, +11.38), and Microsoft (MSFT 36.70, +0.45) display gains between 1.0% and 1.3%.

The Nasdaq has also received support from biotechnology as the iShares Nasdaq Biotechnology ETF (IBB 223.30, +5.31) trades higher by 2.4%. In turn, this has buoyed the health care sector, which displays a gain of 0.8%.

Although the broader market has been boosted by the relative strength of its two top-weighted sectors, another influential group, financials (+0.6%), has struggled to keep pace. Similarly, energy (+0.3%) and materials (+0.5%) have also been a bit tentative in their advance.

Notably, the energy sector has been contending with losses among two large members-Chevron (CVX 122.57, -0.65) and Exxon Mobil (XOM 98.74, -0.69). The two Dow components trade lower by 0.5% and 0.7%, respectively, which helps explain the underperformance of the price-weighted Dow Jones Industrial Average.

12:30 pm: [BRIEFING.COM] Stocks remain near their best levels of the session with the S&P 500 on track to break its streak of two consecutive weekly losses.

The technology sector (+1.1%) continues to trade ahead of the remaining cyclical groups, and the industrial sector (+0.8%) has joined technology in the lead. Industrials have received all around support from defense contractors and transports. The PHLX Defense Index is higher by 1.1% while the Dow Jones Transportation Average trades up 0.9%.

11:55 am: [BRIEFING.COM] The major averages have continued marching ahead with the Russell 2000 (+1.4%) maintaining its leadership. The tech-heavy Nasdaq (+1.0%) has also pushed its advance past the 1.0% mark while the Dow and S&P 500 trade higher by 0.6% and 0.7%, respectively.

The price-weighted Dow lags with Chevron (CVX 122.82, -0.40), Exxon Mobil (XOM 98.85, -0.58), and Nike (NKE 76.79, -1.47) exerting pressure. Notably, Nike (-1.9%) has slipped below its 50-day moving average (77.14) despite beating earnings estimates by one cent.

With the major averages on their highs, the CBOE Volatility Index (VIX 13.21, -0.94) is on track to end the session at its lowest level since late November.

11:30 am: [BRIEFING.COM] Recent action saw the key indices continue their rally. Furthermore, today's advance has placed the Nasdaq back in positive territory for the month. The tech-heavy index now sports a December gain of 0.9% versus a 0.8% increase for the S&P 500.

Although the Dow, Nasdaq, and S&P 500 have been able to erase their month-to-date losses over the past three sessions, the Russell 2000 remains in the red. The small-cap index holds a December loss of 0.5%.

Elsewhere, Treasuries have added to their morning gains. The benchmark 10-yr yield is lower by three basis points at 2.90%.

11:00 am: [BRIEFING.COM] The major averages hover at their best levels of the session as the broad-based rally continues. The S&P 500 has extended its gain to 0.5% while the small-cap Russell 2000 outperforms with an advance of 0.8%.

Influential sectors like health care (+0.5%) and technology (+0.9%) continue setting pace for the broader market, but another top-weighted sector, financials (+0.3%), is struggling to keep up.

Elsewhere, energy (+0.4%) and materials (+0.2%) have also had a difficult time keeping pace with other cyclical groups. The energy sector lags as crude oil trades flat at $99.02 per barrel. Meanwhile, the materials space is being pressured by steelmakers as the Market Vectors Steel ETF (SLX 49.12, -0.07) displays a modest loss of 0.1%.

10:30 am: [BRIEFING.COM]

Commodities are volatile this morning. Gold and silver sold off in early morning trading, but recovered.
Gold and silver have been extending gains in recent trade and gold just hit a new HoD
Feb gold is now +0.7% a $1202.30/oz
Silver is currently +0.9% at $19.37/oz
Crude oil futures have been modestly lower all session so far (both overnight and morning session), right around the $99 level.
Natural gas futures are taking a breather from yesterday's gains and are now down 0.8% at $4.43/MMBtu (Jan contract)

9:55 am: [BRIEFING.COM] Equity indices are building on their early gains with the Dow (+0.4%) and S&P 500 (+0.4%) climbing to fresh all-time highs.

Generally speaking, all ten sectors are participating in the advance, but energy (+0.3%), industrials (+0.2%), and materials (+0.2%) have been a bit tentative so far.

Elsewhere, the technology sector (+0.6%) is providing leadership with top components like Apple (AAPL 548.72, +4.26), Google (GOOG 1093.36, +7.13) contributing to the advance. On a related note, the tech-heavy Nasdaq (+0.5%) trades ahead of its peers as biotechnology provides the index with an added boost. The iShares Nasdaq Biotechnology ETF (IBB 221.38, +3.39) is higher by 1.6%.

9:40 am: [BRIEFING.COM] As expected, the major averages began the session on an upbeat note. The S&P 500 trades higher by 0.4% with all ten sectors moving higher.

Sector leadership appears to be concentrating among the top three S&P 500 groups. Technology (+0.4%) and health care (+0.4%) trade just ahead of the broader market while financials (+0.3%) trade in-line with the S&P 500.

Elsewhere, Treasuries have retraced all of their losses, and now sit at their best levels of the session. The benchmark 10-yr yield is lower by one basis point at 2.92%.

9:15 am: [BRIEFING.COM] S&P futures vs fair value: +2.40. Nasdaq futures vs fair value: +8.50. After enduring an uneventful session yesterday, equity indices are poised to start today's affair on a modestly higher note. The S&P 500 futures trade two points above fair value as the benchmark index will look to build on its 1.9% week-to-date gain.

Yesterday saw below-average participation as only 688 million shares changed hands on the floor of the New York Stock Exchange. Today, however, is expected to be a bit more active with quadruple witching and quarterly rebalancing taking place.

This morning's economic data was limited to the final reading of third quarter GDP, which pointed to growth of 4.1%. That was the strongest reading since the economy expanded by 4.9% in Q4 2011, and well above the 2.5% gain reported in the second quarter. Real final sales, which exclude inventory growth, increased 2.5%. That was up from a 1.9% gain reported in the second estimate, and was the largest gain since a 3.4% increase was observed in Q4 2011.

Treasuries hover near their lows with the 10-yr yield up two basis points at 2.95%.

8:59 am: [BRIEFING.COM] S&P futures vs fair value: +2.50. Nasdaq futures vs fair value: +7.50. The S&P 500 futures (+0.2%) have returned to their pre-market highs following a better-than-expected Q3 GDP report.

Asian markets ended on a mixed note. Japan's Nikkei (+0.1%) eked out a gain after the Bank of Japan held its key interest rate unchanged at 0-0.10%, as expected. Meanwhile Hong Kong's Hang Seng (-0.3%) and China's Shanghai Composite (-2.0%) lagged as money market rates were on the rise again. The one-week Shanghai Interbank Offered Rate (SHIBOR) saw the largest increase, jumping more than 118 basis points to 7.654%.

Economic data was limited to a couple points out of New Zealand. Visitor arrivals increased 2.8% month-over-month (-1.9% prior) while credit card spending rose 6.9% year-over-year (3.3% last).

Japan's Nikkei (+0.1%) closed at a six-year high following the BoJ decision to stand pat. Heavyweight Fast Retailing provided support, adding 2.7%.
China's Shanghai Composite lost 2.0%, falling for the ninth consecutive session as overnight borrowing costs spiked on liquidity concerns. Financials were among the hardest hit as China Citic Bank tumbled 8.7% and China Construction Bank sank 6.2%.
Hong Kong's Hang Seng shed 0.3%, but managed to avoid the heavy selling that developed in the Shanghai Composite. Insurance names were the weakest performers as Ping An and China Life gave up 4.6% and 2.7%, respectively. Elsewhere, Wal-Mart supplier Li & Fung outperformed with a 1.8% gain.

Most major European indices display modest gains, but France's CAC (unch) and Spain's IBEX (-0.3%) underperform. The weakness in Spain comes after last evening's police raid on the main offices of Mariano Rajoy's People's Party. This was a part of an investigation into alleged party-wide graft that dates back to last year. Spanish debt is on the defensive with the benchmark 10-yr yield higher by four basis points at 4.16%. Elsewhere, Italy's confidence vote on the 2014 budget law has passed the Lower House and will now head to the Senate for a Monday vote. This vote is also being seen as a test of support for Prime Minister Enrico Letta. Italian yields are on their highs with the 10-yr yield up four basis points at 4.12%.

Investors received several economic data points. Germany's GfK Consumer Climate ticked up to 7.6 from 7.4 (7.4 expected) while PPI ticked down 0.1% month-over-month, as expected. In addition, the annualized PPI pointed to a decrease of 0.8%, in-line with expectations. Great Britain's GDP rose 0.8% quarter-over-quarter (0.8% expected, 0.8% prior) while the year-over-year reading pointed to growth of 1.9% (1.5% consensus, 1.5% last). Separately, the current account deficit widened to GBP20.70 billion from GBP6.20 billion (-GBP13.9 billion expected) and business investment increased 2.0% quarter-over-quarter (1.6% consensus, 1.4% prior). Also of note, the Index of Services rose 0.8% (0.4% expected, 0.8% last) and public sector net borrowing came in at GBP14.80 billion (GBP13.40 billion consensus, GBP7.40 billion prior). Italy's industrial new orders fell 2.5% month-over-month (1.1% expected, 1.7% prior) while the year-over-year reading increased 1.2% (7.3% last). Retail sales ticked down 0.1% month-over-month (0.2% expected, -0.3% prior) while the year-over-year reading fell 1.6% (-2.8% last). French Business Survey improved to 100 from 98 (99 expected).

France's CAC is little changed. Industrials are among the laggards with Alstom and Bouygues down 1.2% and 2.5%, respectively. On the upside, financials AXA and BNP Paribas hold respective gains of 0.6% and 0.4%.
Great Britain's FTSE is higher by 0.2%. Carnival leads with a gain of 4.7% after receiving a pair of upgrades. On the downside, miners Anglo American, Antofagasta, and Fresnillo trade with losses between 1.4% and 1.8%.
In Germany, the DAX trades up 0.5%. Deutsche Boerse is continuing its recent outperformance. The stock leads the index with a solid gain of 2.4%. Defensive stocks lag as Beiersdorf and Fresenius Medical trade lower by 0.2% and 0.8%, respectively.

8:32 am: [BRIEFING.COM] S&P futures vs fair value: +2.10. Nasdaq futures vs fair value: +5.50. The S&P 500 futures trade two points above fair vale.

The third estimate of third quarter GDP indicated growth of 4.1%, which was higher than the 3.6% that had been expected by the Briefing.com consensus. Meanwhile, the third quarter GDP Deflator was left unchanged at 2.0%, as expected.

7:58 am: [BRIEFING.COM] S&P futures vs fair value: +0.70. Nasdaq futures vs fair value: +3.70. U.S. equity futures hold modest gains amid cautious overseas action. The S&P 500 futures trade less than one point above fair value.

Looking at overnight developments:

Asian markets ended mixed. Japan's Nikkei +0.1%, Hong Kong's Hang Seng -0.3%, and China's Shanghai Composite -2.0%.
Economic data was limited:
The Bank of Japan held its key interest rate unchanged at 0-0.10%, as expected.
New Zealand's visitor arrivals increased 2.8% month-over-month (-1.9% prior) while credit card spending rose 6.9% year-over-year (3.3% last).
In news:
In China, money market rates were on the rise once again with the one-week Shanghai Interbank Rate (SHIBOR) posting the largest increase. The rate jumped more than 118 basis points to 7.654%.

Major European indices are little changed. France's CAC -0.1%, Great Britain's FTSE +0.1%, and Germany's DAX +0.4%. Elsewhere, Italy's MIB +0.4% and Spain's IBEX -0.3%.
Investors received several economic data points:
Germany's GfK Consumer Climate ticked up to 7.6 from 7.4 (7.4 expected) while PPI ticked down 0.1% month-over-month, as expected. In addition, the annualized PPI pointed to a decrease of 0.8%, in-line with expectations.
Great Britain's GDP rose 0.8% quarter-over-quarter (0.8% expected, 0.8% prior) while the year-over-year reading pointed to growth of 1.9% (1.5% consensus, 1.5% last). Separately, the current account deficit widened to GBP20.70 billion from GBP6.20 billion (-GBP13.9 billion expected) and business investment increased 2.0% quarter-over-quarter (1.6% consensus, 1.4% prior). Also of note, the Index of Services rose 0.8% (0.4% expected, 0.8% last) and public sector net borrowing came in at GBP14.80 billion (GBP13.40 billion consensus, GBP7.40 billion prior).
Italy's industrial new orders fell 2.5% month-over-month (1.1% expected, 1.7% prior) while the year-over-year reading increased 1.2% (7.3% last). Retail sales ticked down 0.1% month-over-month (0.2% expected, -0.3% prior) while the year-over-year reading fell 1.6% (-2.8% last).
French Business Survey improved to 100 from 98 (99 expected).
Among news of note:
Last evening, Spanish police raided the main offices of Mariano Rajoy's People's Party as part of an investigation into alleged party-wide graft. Spanish debt is on the defensive with the benchmark 10-yr yield higher by four basis points at 4.16%.
The Italian government is currently undertaking a confidence vote over the 2014 budget law. The vote is also being seen as a test of support for Prime Minister Enrico Letta. Italian yields are on their highs with the 10-yr yield up four basis points at 4.12%.

In U.S. corporate news:

BlackBerry (BBRY 5.90, -0.35): -5.6% after the company reported disappointing quarterly results.
Carnival (CCL 39.41, +1.36): +3.6% after receiving upgrades from Credit Suisse and UBS.
Finish Line (FINL 28.30, +2.16): +8.3% following its bottom-line beat on above-consensus revenue.
Nike (NKE 78.30, +0.04): +0.1% after the company beat earnings estimates by one cent.
Red Hat (RHT 55.80, +6.80): +13.9% after UBS upgraded the stock to 'Buy' from 'Neutral.'
Walgreens (WAG 58.00, +1.06): +1.9% after reporting results in-line with its December 4th preannouncement.

Today's economic data will be limited to the third estimate of third quarter GDP, which will be released at 8:30 ET.

6:59 am: [BRIEFING.COM] S&P futures vs fair value: +0.80. Nasdaq futures vs fair value: +3.80.

6:59 am: [BRIEFING.COM] Nikkei...15870.42...+11.20...+0.10%. Hang Seng...22812.18...-76.60...-0.30%.

6:59 am: [BRIEFING.COM] FTSE...18500.50...+46.50...+0.30%. DAX...9368.50...+32.80...+0.40%.

Wall Street Gains On GDP Data; Euro Firm After EU Downgrade

(Reuters) - U.S. stocks jumped on Friday after the U.S. government said the economy grew at its briskest pace in nearly two years, while the euro held steady, paring early losses after Standard & Poor's stripped the European Union of its triple-A credit rating.

Gold rebounded from a six-month low, but was on track for its biggest annual loss in more than three decades, as investors dumped the precious metal after the U.S. Federal Reserve decided to reduce its bond purchases.

The Fed's decision on Wednesday to begin tapering its $85-billion monthly bond purchases in January has hurt medium-dated U.S. government debt but supported longer-dated U.S. government debt.

Since then, the yield gap between medium- and long-dated Treasuries contracted to its tightest level in more than three months, signaling that some traders reckon the Fed might raise interest rate sooner than they had expected and the tapering would reduce the risk of a long-term inflation surge when U.S. growth accelerates.

The Commerce Department reported that the U.S. economy grew at a 4.1 percent annual rate in the third quarter, a sharp upward revision from the prior growth estimate of 3.6 percent. The data made investors more optimistic about the prospects for corporate profit growth and about owning stocks and other risky assets for 2014.

"The global economy is showing signs of improvement. We are seeing that in the U.S. with the GDP data today," said Terry Sandven, chief investment strategist at U.S. Bank Wealth Management in Minneapolis, which oversees $113 billion.

The S&P 500 index and the Dow Jones Industrial average posted record highs, while the Nasdaq composite advanced to its highest since 2000. The FTSEurofirst 300 .FTEU3 index of top European shares booked its biggest rise in eight months.

Investors appeared more comfortable with the Fed's modest cut in stimulus as the U.S. central bank had signaled interest rates were likely to stay low for longer.

"Despite the cut, the Fed is still injecting $75 billion a month in liquidity, which will continue to support equities going forward," said David Thebault, head of quantitative sales trading at Global Equities in Paris.

MSCI's all-country world equity index .MIWD00000PUS rose 0.4 percent to 400.40, 3 points below its year high.

On Wall Street, the Dow Jones industrial average .DJI ended up 42.06 points, or 0.26 percent, at 16,221.14. The Standard & Poor's 500 Index .SPX closed up 8.71 points, or 0.48 percent, at 1,818.31. The Nasdaq Composite Index .IXIC finished up 46.61 points, or 1.15 percent, at 4,104.74. .N

Europe's broad FTSEurofirst 300 index .FTEU3 closed 0.45 percent higher at 1,287.61, bringing its weekly gain to 3.6 percent, its biggest since late April. .EU

Earlier, Toyko's Nikkei index .N225 closed up 0.07 percent, bringing its weekly gain to 3.03 percent.

In contrast to the run-up in stocks, most commodity prices melted down following the Fed's tapering decision, though they showed signs of stabilizing.

Gold rebounded after hitting a six-month low. It was still on course for its largest annual loss in 32 years. Gold was last up 1 percent at $1,201.54 an ounce, shaving its weekly decline to 2.93 percent but still on track to lose 28 percent on the year.

The oil market has held up against the broader pessimism on commodities.

Brent crude oil rose $1.48 or 1.5 percent to settle at $111.77 a barrel for a 2.7 percent gain on the week, boosted by a positive outlook for fuel demand in the United States and reduced Libyan supply. U.S. oil futures settled up 28 cents or 0.28 percent at $99.32, which was up 2.6 percent on the week. <O/R>

In the currency market, the euro was up 0.1 percent against the dollar at $1.3671 after hitting an early low of $1.3626. The single currency fell 0.5 percent versus the greenback on the week. <FRX/>

Standard & Poor's on Friday cut its supranational long-term rating on the European Union to AA-plus from AAA, citing rising tensions on budget negotiations and following cuts to the ratings of member states in recent months.

Rival rating agency Fitch later affirmed France's AA-plus rating.

The dollar weakened against the Japanese yen on lower U.S. bond yields. It was last down 0.2 percent at 104.03 yen after touching a five-year high against the Japanese currency earlier on the upbeat U.S. growth data.

The yield on the benchmark 10-year Treasuries note fell 4 basis points to 2.89 percent after flirting with its year high of 3 percent earlier.

The spread between five-year and 30-year Treasuries, which some analysts see as a gauge of investors' view on changes in the Fed's interest rate policy and its bond purchase program, shrank to 2.15 percent, its tightest level since mid-September.

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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