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 Post subject: January 6th Monday Trade Results - Profit $1350.00
PostPosted: Mon Jan 06, 2014 10:04 pm 
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Joined: Sat Jan 10, 2009 1:06 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)
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 @ ($950.00) dollars or -9.50 points, Emini ES ($ES_F) futures @ $2,250.00 dollars or +45.00 points, Light Crude Oil CL ($CL_F) futures @ $0.00 dollars or +0.00 points, Gold GC ($GC_F) futures @ $50.00 dollars or +0.50 points and EuroFX 6E ($6E_F) futures @ $0.00 dollars or +0.0000 ticks. Total Profit @ $1,350.00 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=126&t=1691

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=229&t=2165

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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.

Stocks Start The Week With Modest Losses

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

NEW YORK (CNNMoney)
Investors returned from the holidays in a cautious mood, starting the first full week of 2014 with some light selling.

The Dow Jones industrial average, the S&P 500 and the Nasdaq all ended Monday modestly lower.

And there's a new index in town! CNNMoney's Tech 30 Index made its debut. The index is designed to give investors a snapshot of 30 tech industry leaders around the globe.

The index includes U.S. tech heavyweights such as Apple (AAPL, Fortune 500), Google (GOOG, Fortune 500), Microsoft (MSFT, Fortune 500) and Facebook (FB, Fortune 500) as well as international companies Baidu (BIDU) and SAP (SAP). The Tech 30 was up slightly.

After starting the year with a lackluster performance last week, stocks could continue to tread water in the run-up to Friday's big jobs report.

Investors are also awaiting the release of minutes from the Federal Reserve's December meeting, when it announced plans to trim its monthly bond purchases by $10 billion to $75 billion beginning this month.

Later Monday, the U.S. Senate is expected to confirm Janet Yellen to serve as the next chair of the Federal Reserve, after Ben Bernanke's second term ends in January.

* Read more about CNNMoney's new Tech 30 index

Fool's gold? Gold prices briefly plunged $30 an ounce before bouncing back. The move triggered a 10 second pause in trading after a "velocity logic event" occurred, according to a spokesman for exchange operator CME Group. Velocity logic events are relatively common in electronic markets, the spokesman said. They provide a brief window for investors to modify or cancel orders, he added.

While the CME spokesman said there were no erroneous trades, there was rampant speculation on StockTwits about what caused the drop. Some compared it to the 2010 Flash Crash in stocks, while others claimed that gold prices are being manipulated. But most were just trying to figure out what happened.

"Very erratic & unusual trades in $GLD last couple minutes - wonder what that is about - perhaps news pending" said BenCBanks.

In corporate news, Men's Wearhouse (MW) launched a hostile bid for rival suit seller Jos. A. Bank (JOSB). After a series of friendly offers and counter offers, Men's Wearhouse made a $1.6 billion cash bid and notified that it will nominate two members for its board of directors.

Liberty Media Corporation (LMCA) unveiled a complex proposal to take full control of satellite radio company Sirius XM Holdings (SIRI) by swapping stock. Liberty already owns a controlling stake in Sirius, but one analyst said the move is linked to a potential deal between cable companies Charter Communications (CHTR, Fortune 500) and Time Warner Cable (TWC, Fortune 500).

Charter, which Liberty also owns a stake in, has reportedly been in talks with major banks to borrow money to fund a possible bid for Time Warner Cable.

Shares of Twitter (TWTR) fell 4% after the stock was downgraded by several analysts. Twitter had a strong rally last month, but shares have been volatile recently as analysts have warned that the stock is overvalued.

Bearish traders on StockTwits seized on the downgrades.

"$TWTR This stock is way too overvalued. With the downgrade, Id make the wager we'll see the 50's this week," said drhee2k.

Twitter shares were trading around $66, down from a high near $75 in late December. But Twitter wasn't the only stock moving in response to an analyst report.

"I wonder what made more money today, MS downgrade of $TWTR or GS upgrade of $SCTY?," said soopy9.

SolarCity (SCTY) shares jumped after being upgraded by Goldman Sachs (GS, Fortune 500). SolarCity's chairman is Tesla (TSLA) CEO Elon Musk. Meanwhile, First Solar (FSLR) shares tumbled after Goldman downgraded the stock in the same report. But one trader quipped about how the two big moves canceled each other. The Guggenheim Solar (TAN)exchange-traded fund barely budged.

"Goldman cuts First Solar to Sell (down 9%), raises Solar City to Buy (up 9%). Investors in the solar ETF yawn (flat). $FSLR $SCTY $TAN," said reformedbroker.

European markets ended mixed after the latest purchasing managers' survey showed the euro zone services sector lost some momentum in December. Many Asian markets ended lower. The latest report from HSBC on China's services sectors showed a slower rate of growth in December, adding to the downbeat tone.

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4:10 pm: [BRIEFING.COM] Despite staging an afternoon rally, the S&P 500 was unable to log its first gain of 2014. The benchmark index registered its third consecutive loss, shedding 0.3% as six of ten sectors finished in the red.

Equities began the day on a modestly higher note, but the early gains evaporated during the opening hour as the broader market followed the Nasdaq Composite into the red. The tech-heavy index was hit with widespread selling pressure that weighed on many top components and biotechnology. Both Apple (AAPL 543.93, +2.95) and eBay (EBAY 51.78, -1.48) received downgrades, but Apple was able to stage an intraday reversal after dipping below its 50-day moving average. For its part, eBay settled lower by 2.8%.

Furthermore, biotechnology also pressured the Nasdaq after Goldman Sachs downgraded Celgene (CELG 162.62, -7.19) to 'Sell.' The stock tumbled 4.2% while the broader iShares Nasdaq Biotechnology ETF (IBB 223.82, -2.21) lost 1.0%.

Even though the tech-heavy Nasdaq paced the early weakness, the technology sector ended in-line with the broader market. Other cyclical groups were mixed with respect to the broader market as energy (+0.1%) and financials (+0.1%) outperformed while consumer discretionary (-0.6%), industrials (-0.6%) and materials (-0.6%) lagged.

Notably, the financial sector spent the entire session in the green as Bank of America (BAC 16.66, +0.25) posted its third consecutive gain. The stock jumped 1.5% to extend its 2014 price return to 7.0%.

On the downside, the industrial sector finished near its lows as transports weighed. The Dow Jones Transportation Average lost 1.3% as 19 of its 20 components ended lower. Delta Air Lines (DAL 29.29, +0.06) was the lone advancer, adding 0.2%.

Similar to cyclical groups, countercyclical sectors ended in mixed fashion. Telecom services (+0.5%) and utilities (+0.1%) outperformed while consumer staples (-0.4%) and health care (-0.4%) lagged.

Once again, participation was on the light side as only 656 million shares changed hands on the floor of the New York Stock Exchange.

Treasuries rallied throughout the trading day, sending the 10-yr yield lower by four basis points to 2.96%.

Today's economic data was limited to a pair of reports:

The ISM Non-manufacturing Index for December fell to 53.0 from 53.9 while the Briefing.com consensus expected the index to increase to 54.6. Business activities and production levels decelerated slightly as the respective index fell to 55.2 from November's 55.5.
November factory orders rose 1.8% after falling an upwardly revised -0.5% (from -0.9%). The Briefing.com consensus expected orders to increase 1.7%. As the advance report already hinted at, nearly the entire gain in factory orders resulted from strong demand for durable goods orders. Durable goods orders rose 3.4%, which was down slightly from the 3.5% gain reported in the advance report. Excluding transportation, durable goods orders rose a solid 1.2%.

Tomorrow's economic data will be limited to the November trade balance, which will be reported at 8:30 ET.

DJIA -0.9% YTD
S&P 500 -1.2% YTD
Russell 2000 -1.4% YTD
Nasdaq -1.5% YTD

3:35 pm: [BRIEFING.COM]

Commodities ended the day mixed with WTI crude oil ending below $94 and gold below $1240
Crude oil remained in the red all session and trading just above the LoD, finishing down -1.9% at $93.67/barrel
Feb natural gas futures slid lower in early morning trade and closed unchanged at $4.30/MMBtu
Gold lost $0.20 in today's session, closing at $1238.20/oz, while silver fell $0.09 to $20.11/oz. Mar copper gained one cent to $3.36/lb

3:00 pm: [BRIEFING.COM] The S&P 500 hovers right at its flat line with one hour remaining in today's session. Earlier today, the benchmark index appeared to be headed for its third day of losses, but dip-buyers have made their presence known over the past three hours. Elsewhere, the Dow has also returned to its flat line while the Nasdaq continues holding a modest loss of 0.2%.

Despite the early weakness, the financial sector (+0.4%) never turned red and the group remains in the lead into today's final hour. Two other growth-sensitive sectors have joined financials in positive territory as energy (+0.2%) and technology (+0.1%) display modest gains.

2:25 pm: [BRIEFING.COM] The major averages remain in the red, but the Dow and S&P 500 have trimmed their losses to less than 0.1% apiece. Meanwhile, the Nasdaq, which paced the morning selloff, continues to lag with a loss of 0.3%.

Despite the continued underperformance of the Nasdaq, its top component, Apple (AAPL 544.50, +3.52) has staged a noteworthy reversal. The largest tech stock slipped below its 50-day moving average at the open, but has clawed its way back into the green after finding support in the $534 area.

Also of note, biotechnology remains weak with the iShares Nasdaq Biotechnology ETF (IBB 224.06, -1.97) trading lower by 0.9%.

2:05 pm: [BRIEFING.COM] Recent action saw the S&P 500 climb off its low, but despite the move, equity indices remain in the red.

Not much has changed among individual sectors as financials (+0.4%), telecom services (+0.6%) and utilities (+0.1%) remain ahead of the other seven groups. Elsewhere, energy (+0.1%) has climbed into positive territory even as crude oil trades lower by 0.6% at $93.42 per barrel.

Interestingly, today's losses have not sparked a rush for volatility protection as the CBOE Volatility Index (VIX 13.40, -0.36) hovers in the red.

1:30 pm: [BRIEFING.COM] The major averages remain near their lows as the quiet afternoon continues. Prior to the open we speculated that the arctic cold that has enveloped much of the continental United States may keep today's trading volume on the light side. Although the first hour of action produced volume largely in-line with longer-term averages, activity has slowed since this morning. At this juncture, only 277 million shares have changed hands on the floor of the New York Stock Exchange.

Market breadth remains tilted to the downside as declining issues on the NYSE outpace advancers by a 1.1:1 ratio. Meanwhile, sellers have been a bit more active at the Nasdaq where there are 1.6 decliners for each advancing issue.

1:00 pm: [BRIEFING.COM] At midday, the major averages trade broadly lower with the Nasdaq (-0.5%) pacing the retreat.

Stocks displayed slim gains at the start of today's session, but the tech-heavy Nasdaq quickly slid into the red as top index components and biotechnology weighed. Apple (AAPL 543.50, +2.52) contributed to the early weakness, but the stock has since climbed into positive territory after testing its 50-day moving average. Other large Nasdaq components have not been as fortunate as Amazon.com (AMZN 390.29, -6.15), eBay (EBAY 51.66, -1.60), and Intel (INTC 25.55, -0.23) hold losses between 0.9% and 3.0%.

In addition, the tech-heavy index has had to contend with the underperformance of biotechnology after Celgene (CELG 162.66, -7.15) was downgraded to 'Sell' at Goldman Sachs. Celgene trades lower by 4.2% while the broader iShares Nasdaq Biotechnology ETF (IBB 223.18, -2.75) displays a loss of 1.3%. In turn, this has weighed on the health care sector, which trades lower by 0.3%.

Although technology paced the early selling, the sector now trades in-line with the broader market. Meanwhile, the remaining growth-sensitive sectors trade in mixed fashion with regard to the S&P. Energy (-0.1%) and financials (+0.2%) outperform while consumer discretionary (-0.7%), industrials (-0.5%) and materials (-0.7%) lag. Notably, the industrial sector is being pressured by transports as the Dow Jones Transportation Average trades lower by 1.2%.

Elsewhere, Treasuries sit on their highs after climbing steadily since the start of the overnight session. The 10-yr yield is lower by five basis points at 2.95%.

Today's economic data was limited to just two releases.

The ISM Non-manufacturing Index for December fell to 53.0 from 53.9 while the Briefing.com consensus expected the index to increase to 54.6. Business activities and production levels decelerated slightly as the respective index fell to 55.2 from November's 55.5.
November factory orders rose 1.8% after falling an upwardly revised -0.5% (from -0.9%). The Briefing.com consensus expected orders to increase 1.7%. As the advance report already hinted at, nearly the entire gain in factory orders resulted from strong demand for durable goods orders. Durable goods orders rose 3.4%, which was down slightly from the 3.5% gain reported in the advance report. Excluding transportation, durable goods orders rose a solid 1.2%.

12:30 pm: [BRIEFING.COM] The S&P 500 trades lower by 0.3% as eight of ten sectors hover in the red. Interestingly, while the tech-heavy Nasdaq (-0.4%) remains near its low, the technology sector has trimmed its loss to 0.2%. As a result, only the financial sector (+0.2%) is having a better showing among cyclical groups.

Other growth-sensitive sectors trade broadly lower with consumer discretionary (-0.6%) and materials (-0.7%) pacing the retreat. Elsewhere, the industrial sector lags with a loss of 0.4% as transports weigh. The Dow Jones Transportation Average is lower by 1.2%.

Also of note, Treasuries have built on their gains and the 10-yr yield is now lower by five basis points at 2.96%.

11:55 am: [BRIEFING.COM] Not much change has taken place since our last update as the major averages remain pinned to their lows. The Nasdaq (-0.5%) continues leading the decline while the Dow Jones Industrial Average (-0.2%) outperforms.

The price-weighted Dow trades ahead of its peers as eight of its 30 components display modest gains. Notably, Boeing (BA 138.10, +0.48), Johnson & Johnson (JNJ 92.35, +0.50), and Goldman Sachs (GS 179.88, +1.73) are up between 0.4% and 1.0%. On a related note, Goldman Sachs contributes to the relative strength of the financial sector (+0.2%).

11:30 am: [BRIEFING.COM] The S&P 500 trades lower by 0.4% as steady selling persists. Meanwhile, the Nasdaq displays a loss of 0.7% with several top components and biotechnology pressuring the index. On that note, Amazon.com (AMZN 390.17, -6.27), eBay (EBAY 51.68, -1.58), and Intel (INTC 25.51, -0.27) all trade with losses between 1.1% and 2.9%.

In addition, biotechnology trades broadly lower after Goldman Sachs downgraded Celgene (CELG 160.81, -9.00) to 'Sell' from 'Neutral.' Shares of Celgene trade lower by 5.3% while the broader iShares Nasdaq Biotechnology ETF (IBB 222.71, -3.32) holds a loss of 1.5%. Furthermore, the underperformance of biotech weighs on the health care sector, which trades lower by 0.5%.

11:00 am: [BRIEFING.COM] The major averages have spent the past hour near their lows. The Nasdaq (-0.5%) and S&P 500 (-0.2%) display modest losses while the Dow Jones Industrial Average sits right on its flat line.

With regard to individual sectors, financials (+0.5%) continue trading well ahead of remaining groups while the next best sector, utilities, holds a slim gain of 0.1%.

On the downside, consumer discretionary (-0.3%), consumer staples (-0.2%), and materials (-0.4%) have joined the technology sector (-0.3%) among the laggards.

Elsewhere, Treasuries have inched to fresh highs as the 10-yr yield slipped to 2.97% (-4 bps).

10:35 am: [BRIEFING.COM] Commodities are mostly higher this morning, while the dollar index is modestly lower.

Feb crude oil has been in the red all day so far and is currently near its LoD. Feb natural gas sold off in early morning trade and is now flat. In current trade, crude oil is -1.5% at $93.97/barrel. Feb nat gas is -0.1% at $4.32/MMBtu.

Gold and silver tanked earlier, but it appears that the price action came from a fat finger after prices quickly rebounded to original levels. Feb gold is +1.2% at $1239.50/oz, Mar silver is +0.4% at $20.20/oz.

10:00 am: [BRIEFING.COM] Equity indices have retreated from their early highs with the Nasdaq (-0.3%) leading the slide. With the tech-heavy index under pressure, the technology sector (-0.4%) is the weakest performing group of the session so far.

On an unrelated note, the just-released factory orders report for November indicated orders increased 1.8%, which was a bit better than the Briefing.com consensus estimate that called for an increase of 1.7%.

Separately, the December ISM Services Index fell to 53.0 from 53.9 while the Briefing.com consensus expected an uptick to 54.6.

9:40 am: [BRIEFING.COM] As expected, the major averages posted opening gains. The S&P 500 trades higher by 0.2% as eight of ten sectors hover in the green. The financial sector (+0.7%) has climbed into an early lead while industrials (+0.5%) follow not far behind.

On the downside, technology and utilities are both down near 0.2% apiece. Apple (AAPL 535.12, -5.86) and eBay (EBAY 52.19, -1.07) weigh on the technology sector after both received downgrades this morning. Apple is lower by 1.1% while eBay sports a loss of 2.0%.

Treasuries remain near their highs with the 10-yr yield down two basis points at 2.98%.

9:12 am: [BRIEFING.COM] S&P futures vs fair value: +5.20. Nasdaq futures vs fair value: -0.80. Equity indices are poised to begin today's session on a positive note as the S&P 500 futures trade five points above fair value.

There aren't any market-moving developments this morning and it remains to be seen whether arctic temperatures across the country keep some participants frozen out of today's action. For the past two weeks, NYSE trading volume has been on the light side with daily totals (between 410 and 620 million) coming in well below the long-term average of 715 million.

Among company-specific news of note, Twitter (TWTR 64.81, -4.19) holds a pre-market loss of 6.0% after CRT Capital downgraded the stock to 'Fair Value' from 'Buy.'

Treasuries hover near their highs with the 10-yr yield down two basis points at 2.98%.

November Factory Orders and the December ISM Services Index will both be reported at 10:00 ET.

8:57 am: [BRIEFING.COM] S&P futures vs fair value: +3.30. Nasdaq futures vs fair value: -2.30. The S&P 500 futures continue to hover near their pre-market highs.

Markets across Asia ended mostly lower as sellers have had their way so far in 2014. A disappointing HSBC Services PMI (50.9 from 52.5) was the latest evidence of a slowdown in China with a warning from Moody's also being a focal point of sellers. The rating agency warned local government debt "will be a burden on and carry risks to central government finances."

Japan's Nikkei lost 2.4% after being met with heavy selling during its first trading day of the New Year. Blue chips paced the decline with Fast Retailing tumbling 5.8% and Softbank giving up 3.5%.
Hong Kong's Hang Seng lost 0.6%, pressing lower for a second day as trade nears a test of the 200-day moving average. Financials led the way lower as China Merchants Bank gave up 3.4% while Bank of Communications and Industrial & Commercial Bank of China lost 2.3% and 2.0%, respectively.
China's Shanghai Composite fell 1.8%, ending at its lowest level since the beginning of August. Coal stocks weighed as pollution across much of the country remains at hazardous levels. Yanzhou Coal Mining and China Shenhua Energy both lost at least 3.5%.

Core European indices trade little changed while markets in Italy (+0.8%) and Spain (+0.9%) outperform. Investors received several regional PMI readings this morning. Eurozone Services PMI held steady at 51.0, as expected. Separately, Sentix Investor Confidence rose to 11.9 from 8.0 (9.5 forecast). Elsewhere, Germany's Services PMI ticked down to 53.5 from 54.0 (54.0 expected), Great Britain's Services PMI fell to 58.8 from 60.0 (60.0 forecast), and French Services PMI increased to 47.8 from 47.4 (47.4 consensus). Also of note, Italy's Services PMI improved to 47.9 from 47.2 (48.7 expected) and Spain's Services PMI jumped to 54.2 from 51.5 (51.5 forecast).

Among news of note, according to reports out over the weekend, Bank of England Governor Mark Carney plans to introduce changes to the BoE's forward guidance, reducing the unemployment target to 6.5% from 7.0%.

In France, the CAC trades flat. Consumer names lag while financials outperform. Danone and Pernod Ricard trade lower by 0.5% and 1.5%, respectively. On the upside, BNP Paribas and Credit Agricole are both up near 1.0% apiece.
Great Britain's FTSE is higher by 0.2%. RSA Insurance Group leads with a gain of 7.2% after the company said its Irish unit will not need any more capital injections. Miners lag with Anglo American, Randgold Resources, and Rio Tinto down between 1.5% and 1.8%.
Germany's DAX holds an advance of 0.2% as 19 of 30 components display gains. Commerzbank and Deutsche Bank are higher by 2.3% and 0.7%, respectively. Exporters lag with BMW lower by 0.6% and Volkswagens down 0.9%.
Spain's IBEX outperforms its regional peers with a gain of 0.9%. Banks are showing strength with Bankinter, Bankia, and Banco Santander up between 1.2% and 3.0%.

8:30 am: [BRIEFING.COM] S&P futures vs fair value: +3.00. Nasdaq futures vs fair value: -1.50. After surrendering ten points last week, the S&P 500 is on track to begin the first session of this week on an upbeat note. The S&P 500 futures trade three points above fair value.

With no market-moving news, investors are reacting to company-specific developments. Apple (AAPL 539.10, -1.88) is seeing early pressure after ending Friday's session just above its 50-day moving average. The stock holds a pre-market loss of 0.3% following a Standpoint Research downgrade to 'Sell' from 'Hold.'

On the flip side, a handful of financials are showing early strength. Genworth Financial (GNW 15.75, +0.38) holds a pre-market advance of 2.3% after UBS upgraded the stock to 'Buy' from 'Neutral.' Also of note, Bank of America (BAC 16.57, +0.16) is higher by 1.0% in pre-market action.

8:00 am: [BRIEFING.COM] S&P futures vs fair value: +2.70. Nasdaq futures vs fair value: +1.20. U.S. equity futures are little changed amid subdued overseas action. The S&P 500 futures hover three points above fair value.

Reviewing overnight developments:

Asian markets ended on a lower note following another disappointing PMI reading out of China. Hong Kong's Hang Seng -0.6%, China's Shanghai Composite -1.8%, and Japan's Nikkei -2.4%.
In regional economic data:
China's HSBC Services PMI fell to 50.9 from 52.5.
Australia's AIG Services Index decreased to 46.1 from 48.9.
India's HSBC Services PMI ticked down to 46.7 from 47.2.
In news:
Moody's commented on Chinese debt, saying the high local government debt poses risks to the stability of the central government.

Core European indices trade little changed. Great Britain's FTSE +0.1%, France's CAC +0.2%, and Germany's DAX +0.3%. Elsewhere, Italy's MIB +0.8% and Spain's IBEX +0.9%.
Investors received a handful of economic data points:
Eurozone Services PMI held steady at 51.0, as expected. Separately, Sentix Investor Confidence rose to 11.9 from 8.0 (9.5 forecast).
Germany's Services PMI ticked down to 53.5 from 54.0 (54.0 expected).
Great Britain's Services PMI fell to 58.8 from 60.0 (60.0 forecast).
French Services PMI increased to 47.8 from 47.4 (47.4 consensus).
Italy's Services PMI improved to 47.9 from 47.2 (48.7 expected).
Spain's Services PMI jumped to 54.2 from 51.5 (51.5 forecast).
Among news of note:
According to reports out over the weekend, Bank of England Governor Mark Carney plans to introduce changes to the BoE's forward guidance, reducing the unemployment target to 6.5% from 7.0%.

In U.S. corporate news:

Apple (AAPL 536.70, -4.28): -0.8% after Standpoint Research downgraded the stock to 'Sell' from 'Hold.'
eBay (EBAY 52.40, -0.86): -1.6% after Morgan Stanley downgraded the stock to 'Equal-Weight' from 'Overweight.'
First Solar (FSLR 54.49, -2.25): -4.0% following a Goldman Sachs downgrade to 'Sell' from 'Buy.'
Major financials are showing notable pre-market strength with AIG (AIG 51.42, +0.50) and Bank of America (BAC 16.64, +0.23) up 1.0% and 1.4%, respectively.

November Factory Orders and the December ISM Services Index will both be reported at 10:00 ET.

6:45 am: [BRIEFING.COM] S&P futures vs fair value: +1.80. Nasdaq futures vs fair value: flat.

6:45 am: [BRIEFING.COM] Nikkei...15908.88...-382.40...-2.40%. Hang Seng...22684.15...-133.10...-0.60%.

6:45 am: [BRIEFING.COM] FTSE...6829.65...-1.00...0.00. DAX...9457.86...+22.70...+0.20%.

Euro Snaps Gain Versus Pound Before Inflation Data; Aussie Falls

By Masaki Kondo and Kristine Aquino Jan 6, 2014 9:42 PM ET

The euro snapped a gain versus the pound before data today forecast to show the region’s inflation approached the slowest level in four years.

The European Central Bank will hold a policy meeting on Jan. 9 amid speculation decelerating price growth will prompt the ECB to consider adding to monetary stimulus. The yen fell after Bank of Japan data showed progress in monetary stimulus and currency volatility plunged the most in 1 1/2 years. Australia’s dollar declined against most of its 16 major peers, halting a three-day advance versus the dollar.

“I see the euro lower in the medium to longer term,” said Yuki Sakasai, a currency strategist at Barclays Plc. in New York. “Any surprise from euro-area inflation data would spur investors to price in further monetary easing.”

The euro was little changed at 83.07 pence as of 11:37 a.m. in Tokyo after rising 0.4 percent yesterday, the biggest advance since Dec. 11. It held at $1.3630. The yen fell 0.1 percent to 104.33 per dollar following a 0.6 percent jump, the most since Oct. 23. Japan’s currency weakened 0.1 percent to 142.19 per euro.

The European Union’s statistics office may say today that inflation slowed 0.1 percentage point to 0.8 percent last month from November, according to the median estimate of economists surveyed by Bloomberg News. It slid to 0.7 percent in October, the lowest since November 2009.

In the U.S., companies probably added 200,000 jobs in December, compared with 215,000 the prior month, a separate poll of economists shows. The ADP Research Institute will release the figure tomorrow, followed by a Jan. 10 government report on non-farm payrolls.

Yellen Confirmation

Janet Yellen won U.S. Senate confirmation to become the 15th chairman of the Federal Reserve, replacing Ben S. Bernanke after his second term expires on Jan. 31.

Fed officials said Dec. 18 they would trim monthly bond purchases by $10 billion to $75 billion starting this month. The central bank will probably scale down its quantitative easing program at the same pace in increments over the next seven meetings, before ending it in December, economists forecast in a Dec. 19 survey.

The dollar has risen 1.7 percent in the past three months in a basket of the 10 developed-market currencies tracked by Bloomberg Correlation-Weighted Indexes. The euro has appreciated 2.1 percent during the period, while the yen dropped 6.5 percent.

BOJ Easing

Japan’s monetary base, which measures the supply of money by the central bank, soared 47 percent in December from a year earlier to a record 193.5 trillion yen ($1.9 trillion). The BOJ switched its policy target from interest rates to the gauge in April, planning to double it to 270 trillion yen by the end of this year from December 2012.

Deutsche Bank AG’s three-month implied volatility index for major nine currency pairs tumbled 69 basis points to 7.84 percent, the biggest drop since June 2012. The 12-month average is 8.85 percent.

“In a low-volatility environment, that’s usually good for carry trades” and positive for dollar-yen, said Divya Devesh, the Singapore-based foreign-exchange analyst at Standard Chartered Plc. “There’s definitely a very strong monetary policy divergence, which will also be a very powerful driver of dollar-yen.”

Carry trade is a strategy in which an investor uses a currency with low interest rates to fund purchases of higher-yielding assets.

The Aussie weakened 0.3 percent to 89.37 U.S. cents following a three-day, 0.9 percent gain.

“It’s notable that speculators continue to punish the Aussie dollar even though there seems to be no fresh reason to do so,” said Sean Callow, the Sydney-based senior currency strategist at Westpac Banking Corp. “It provides us a reminder that 90 U.S. cents look as though it is hard work near term.”

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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