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 Post subject: February 5th Wednesday Trade Results - Profit $8,250.00
PostPosted: Wed Feb 05, 2014 10:01 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 @ $0.00 dollars or +0.00 points, Emini ES ($ES_F) futures @ $8,250.00 dollars or +165.00 points, Light Crude Oil CL ($CL_F) futures @ $0.00 dollars or +0.00 points, Gold GC ($GC_F) futures @ $0.00 dollars or +0.00 points and EuroFX 6E ($6E_F) futures @ $0.00 dollars or +0.0000 ticks. Total Profit @ $8,250.00 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=127&t=1715

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 or you do not document (journal) your own thoughts from trade to trade...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=232&t=2209

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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 Flat As Investors Wait For Jobs Report

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

NEW YORK (CNNMoney)
Investors were unwilling to make any big moves Wednesday. And with an important jobs report coming at the end of the week, could you blame them?

The Dow Jones industrial average and the S&P 500 both barely budged. The Nasdaq ended the day with losses.

The Dow has fallen more than 7% since the start of 2014. The selling has fueled speculation about a so-called correction, typically defined as a drop of 10% or more.

In a sign of investors' frayed nerves, CNNMoney's Fear & Greed index continued to signal "extreme fear" in the market. But some say the selling creates an opportunity to buy stocks at a discount.

"Though nobody likes a correction, it is a normal and healthy part of the market cycle," said Ron Florance, an investment strategist at Wells Fargo Wealth Management.

Investors have been rattled by turmoil in emerging markets, where central banks have been struggling to shore up shaky currencies. Meanwhile, the Federal Reserve has been scaling back its bond-buying program.

More recently, worries about the health of the U.S. economy have weighed on stocks. Economic data for January, including a manufacturing report Monday, have been weaker than expected. While winter weather may be partly to blame, the spate of soft economic data have raised questions about the outlook for growth this year.

On Wednesday, payroll processor ADP said that 175,000 jobs were added in January. That was in line with expectations but was the slowest level of growth since August. The government will release its latest figures about job growth and the unemployment rate on Friday.

CVS kicks $2 billion habit. CVS Caremark (CVS, Fortune 500) said it will stop selling tobacco products, starting Oct. 1. Shares fell on the move, which CVS said will result in $2 billion of lost revenue.

The reaction on StockTwits was mixed. Some traders welcomed the decision to stop selling a product that CVS chief executive officer Larry Merlo said was "inconsistent with our purpose."

"Glad to hear $CVS decision to no longer sell tobacco products even if it hurts sales. I do own shares & will maintain them," said TraderMK

But others criticized CVS for eschewing tobacco while continuing to sell other unhealthy and addictive products.

"$CVS Appalled by the rows of sugary drinks. The beer & wine. THEY HAVE A CANDY AISLE! Slim jims are another kind of evil," said Billy_D_Scrillions.

Others bashed CVS for giving up a significant revenue stream.

"$CVS Tobacco and cigarettes is like the #1 customer. They now have alienated a big portion of their customer base. Bad move!" said BiopharmaPro.

3D printers crash. Shares of 3D Systems (DDD) plunged after the company warned that earnings will be below its previous forecast. Rival 3D printing companies Stratasys (SSYS), ExOne (XONE) and voxeljet (VJET) all fell sharply as well.

Related: New 3D printing fund may not print money

After a big run-up last year, 3D printing stocks have come crashing down in 2014. So far this year, 3D Systems has been the hardest hit -- shares are down 35% year to date. But some traders are still betting that 3D printing technology has long-term potential.

"$DDD Huge over reaction sell off makes a great entry point for longs!" said GaryN69.

Merck (MRK, Fortune 500) reported earnings and sales in line with forecasts, while GlaxoSmithKline (GSK) raised its dividend as it posted earnings-per-share that came in slightly below expectations.

Time Warner (TWX, Fortune 500), the parent company of CNNMoney, announced a new $5 billion share buyback program as it reported slightly better-than-expected earnings. Shares rose on the news.

Twitter (TWTR) reported a surprise quarterly profit for the fourth quarter after the close. It was Twitter's first earnings report since its IPO. Sales topped forecasts as well. But guidance, while strong, was not as rosy as expected and shares tumbled in after hours trading.

Shares of mobile chip company ARM Holdings (ARMH) rebounded a bit after posting a sharp drop Tuesday. ARM's stock has fallen by 20% since the start of 2014, making it one of the worst performers on the CNNMoney Tech 30 index.

European markets ended little changed following the release of positive economic data.

Meanwhile, Asian markets closed with mixed results. Indonesia's economy grew by 5.7% in the fourth quarter, compared with the same period the previous year. That was better than expected and may calm fears about its ability to weather the storm battering it and the other so-called "Fragile Five" emerging markets.

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4:20 pm: [BRIEFING.COM] Equities ended the Wednesday session on a mixed note. The Nasdaq and S&P 500 finished with respective losses of 0.5% and 0.2% while the Dow Jones Industrial Average ended flat. Despite its outperformance, the Dow was unable to settle above its 200-day moving average (15479) for the second day in a row.

Today's affair began on a lower note as stocks succumbed to the pressure exerted by the Japanese yen, which strengthened again overnight. Yen strength has been a considerable headwind for equities since the start of the year as many professionals who borrow in yen to fund their equity positions have found themselves in a bit of a pickle. In 2013, when the yen weakened steadily while equities rallied, the carry trade yielded strong results. This year, however, with the yen climbing and equities sliding, the losses have been compounding.

The dollar/yen pair marked its session low right below the 100.80 level this morning, but rallied sharply off that low. The pair then notched a high of 101.65 after today's better-than-expected ISM Services report before giving up a portion of its gain. Dollar/yen wasn't able to overtake the morning high and finished the New York Session right below the 101.40 level. Meanwhile, yen futures added 0.2%, extending their 2014 gain to 3.8%.

Overall, the lack of defined sector leadership and the presence of some mixed signals made for a sloppy session.

Out of the four top-weighted sectors, consumer discretionary (+0.2%), financials (-0.1%), and technology (+0.01%) outperformed while health care (-0.6%) lagged.

The discretionary sector drew strength from modest gains among retailers. The SPDR S&P Retail ETF (XRT 78.12, +0.25) added 0.3%, but remains down 11.3% so far in 2014. Elsewhere, technology displayed relative strength with some help from large-cap components like Apple (AAPL 512.59, +3.80) and Google (GOOG 1143.20, +5.04).

On the downside, health care (and Nasdaq Composite) struggled to keep pace with the S&P 500 as biotechnology lagged. The iShares Nasdaq Biotechnology ETF (IBB 236.95, -4.06) lost 1.7%, but remains higher by 4.4% this year.

Also of note, the industrial sector finished in-line with the S&P 500, but transports struggled. The Dow Jones Transportation Average lost 0.8% after CH Robinson (CHRW 53.16, -5.48) reported disappointing earnings.

The mixed performance pushed some participants in the direction of volatility protection as the CBOE Volatility Index (VIX 19.58, +0.47) rose 2.5%. Interestingly, the bond market did not reflect a safety bid as Treasuries ended on their lows with the 10-yr yield up four basis points at 2.67%.

Trading volume was a bit above average as 740 million shares changed hands at the NYSE.

Today's economic data included three reports:
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The weekly MBA Mortgage Index ticked up 0.4% to follow last week's 0.2% decline.
According to today's ADP National Employment Report, employment in the nonfarm private business sector increased 175K in January. This was slightly below the increase of 178K expected by the Briefing.com consensus. The December reading was revised down to 227,000 from 238,000.
The ISM Non-manufacturing Index for January increased to 54.0 from 53.0. The Briefing.com consensus expected the index to increase to 53.8. Weather conditions, which were blamed for the poor manufacturing report, seemed to have no impact on services sector. Business Activities accelerated in January. The index increased to 56.3 from 54.3.

Tomorrow, Challenger Job Cuts for January will be announced at 7:30 ET while weekly initial claims, December trade deficit, and fourth quarter productivity data will be released at 8:30 ET.

Nasdaq Composite -4.0% YTD
S&P 500 -5.2% YTD
Russell 2000 -5.8% YTD
Dow Jones Industrial Average -6.9% YTD

3:30 pm: [BRIEFING.COM]

Apr gold rallied sharply to a session high of $1274.50 per ounce at pit trade open on today's January ADP Employment Change reading of 175K. TheBriefing.com consensus expected an increase of 178K. However, the precious metal gave up the earlier gains and fell to a session low of $1251.80 per ounce when data showed that the ISM Non-manufacturing Index increased to 54.0 in January from 53.0 in December (Briefing.com consensus was 53.8). Gold eventually settled with a 0.4% gain at $1257.00 per ounce.
Mar silver also popped to a session high of $20.33 per ounce in early morning pit trade but pulled back as the session progressed. It traded in a consolidative pattern near the $19.80 per ounce level and settled at $19.81 per ounce, or 2.0% higher.
Mar crude oil pulled back from its session high of $98.14 per barrel set at floor trade open and dipped to a session low of $96.80 per barrel following inventory data that showed a build of 0.44 mln barrels when a build of 2.3-2.6 mln barrels was anticipated. Distillate inventories fell by 2.36 mln while consensus called for a draw of 1.5-1.6 mln. The energy component traded slightly above the unchanged line in afternoon action and settled 0.1% higher at $97.38 per barrel.
Mar natural gas rose as high as $5.74 per MMBtu in overnight trade, a new four-year high, but reversed course when floor trade opened. It fell into negative territory and brushed a session low of $4.99 per MMBtu moments before settling with a 6.1% loss at $5.04 per MMBtu.

3:00 pm: [BRIEFING.COM] The S&P 500 trades lower by 0.3% with one hour remaining in today's session.

Since the start of the year, we have been highlighting moves in the Japanese yen as the currency began showing significant strength after weakening throughout 2013. The newfound yen strength has been a concern for global equity investors since many professionals who borrow in yen to fund equity positions have found themselves feeling added stress due to the increased cost of borrowing.

Today's rebound in equities has been accompanied by a rally in the dollar/yen pair (dollar strengthening at the expense of the yen), but recent action saw a modest retreat. Currently, dollar/yen hovers near 101.40 after marking a session high just below 101.80. Meanwhile, yen futures trade higher by 0.3%, extending their 2014 gain to 3.9%.

2:35 pm: [BRIEFING.COM] The S&P 500 has inched away from its flat line, but remains inside of a three-point range that has been in place since our midsession update.

Earlier, we mentioned that sector leadership has been lagging, and that continues to be the case. Two of the four largest sectors-consumer discretionary (+0.1%) and technology (+0.2%)-outperform while the other two-financials (-0.1%) and health care (-0.5%)-remain in the red.

Also of note, although tomorrow's economic data is not expected to lead to broad moves, the foreign exchange market could be affected by policy statements from the Bank of England and the European Central Bank. Although both central banks are expected to maintain their policy, their statements could result in some volatility among currencies.

2:00 pm: [BRIEFING.COM] The S&P 500 remains near its flat line after returning to this level during the past hour. It remains to be seen whether the index can extend further considering sector leadership has been lacking. The largest S&P 500 sector, technology, trades higher by 0.4%, but the group has held its level for the better part of the past 90 minutes.

The second-strongest sector, materials, displays a gain of just under 0.3%, but the group's influence over the broader market is limited considering it represents a bit over 3.0% of the entire S&P 500.

On the downside, energy (-0.7%) and telecom services (-0.8%) represent the two weakest sectors of the day.

1:30 pm: [BRIEFING.COM] The stock market has made a nice rebound from earlier lows in a move that has mirrored action in the dollar/yen cross. The greenback is still down (-0.1%) against the yen, but is much improved from earlier, lessening some of the angst surrounding the notion that yen-based carry trades were being unwound in a risk reduction effort (professional traders will borrow in yen and invest in higher-yielding currencies, but it gets more costly to repay those loans when the funding currency strengthens).

In any event, the S&P 500 is now little changed after being down 1.0% around 10:30 a.m. ET. That move has been aided by most sectors paring larger losses than it has been by any one sector flexing some real muscle. To wit, the information technology sector is the best-performing sector at the moment with a modest 0.3% gain.

In other developments, Philadelphia Fed President Plosser (an FOMC voter) and Atlanta Fed President Lockhart (not an FOMC voter) have disucess their economic outlooks today and neither one of them left the impression that the tapering process should be halted. In fact, Mr. Plosser said he wants a faster taper.

The stock market has handled the aforementioned remarks rather well, probably reserving some policy judgment until the January Employment Report on Friday.

1:00 pm: [BRIEFING.COM] Halfway through the session, the major averages trade in mixed fashion. The Dow Jones Industrial Average hovers right above its flat line while the S&P 500 (-0.2%), Nasdaq (-0.4%) and Russell 2000 (-0.8%) remain in the red.

Equities began the day on shaky ground as another wave of yen strength pressured risk assets. The dollar/yen pair notched a session low just under the 100.80 level in pre-market before heading higher. Currently, the pair hovers near 101.40 while yen futures hold a modest gain of 0.2%.

The rebound in dollar/yen has been a supportive factor for equities as they try to extend their bounce off the morning lows. Nine of ten sectors continue to hover in the red, but the largest S&P 500 group, technology, trades higher by 0.2%. Top sector components are playing a part in the outperformance with Apple (AAPL 514.20, +5.41), Google (GOOG 1147.41, +9.25), and Oracle (ORCL 36.13, +0.17) up between 0.5% and 1.1%.

Another tech name, Twitter (TWTR 66.65, +0.33), trades little changed ahead of its first earnings report as a public company. Twitter will release its results after the bell with the Capital IQ consensus expecting a loss of $0.01 on $218.45 million in revenue.

With regard to other sectors, energy (-0.8%), health care (-0.5%), utilities (-0.5%), and telecom services (-0.7%) lag while the remaining groups trade largely in-line with the S&P 500.

Treasuries are near their lows with the 10-yr yield up three basis points at 2.67%.

Today's economic data included three reports:

The weekly MBA Mortgage Index ticked up 0.4% to follow last week's 0.2% decline.
According to today's ADP National Employment Report, employment in the nonfarm private business sector increased 175K in January. This was slightly below the increase of 178K expected by the Briefing.com consensus. The December reading was revised down to 227,000 from 238,000.
The ISM Non-manufacturing Index for January increased to 54.0 from 53.0. The Briefing.com consensus expected the index to increase to 53.8. Weather conditions, which were blamed for the poor manufacturing report, seemed to have no impact on services sector. Business Activities accelerated in January. The index increased to 56.3 from 54.3.

12:30 pm: [BRIEFING.COM] The Dow (unch), Nasdaq (-0.4%), and S&P 500 (-0.2%) have put noteworthy dents in their losses while the small-cap Russell 2000 remains lower by 0.9%.

So far this year, the Russell 2000 has given up nearly 6.0% after surging 37.0% in 2013. Of the other major indices, only the Dow has endured a weaker start to the year. The price-weighted average is down 6.8% year-to-date.

With the Dow and S&P 500 back near their flat lines, volatility protection is seeing a bit less interest than before. The CBOE Volatility Index (19.43, +0.32) hovers near the bottom of today's range.

Elsewhere, Treasuries have slipped to fresh lows. The 10-yr yield is higher by three basis points at 2.67%.

12:00 pm: [BRIEFING.COM] The S&P 500 has returned to its opening level, but that leaves the benchmark index another four points below its flat line. Meanwhile, the Dow trades flat after making a brief appearance in the green.

The price-weighted Dow has yet to retake its 200-day moving average (15478) after falling below that level on Monday. Today, the index outperforms as 17 of its 30 components register gains. Of the 17 advancers, only two display gains of 1.0% or more.

3M (MMM 128.15, +1.43) and Johnson & Johnson (JNJ 87.48, +0.86) hold respective gains of 1.1% and 1.0% with 3M's strength coming after the company authorized a $12 billion share repurchase program.

11:35 am: [BRIEFING.COM] Equities remain near their recent levels as participants show caution amid some mixed signals.

Although the S&P 500 sits roughly six points above its lows, Treasuries are not showing much of a safety bid. The 10-yr note is down four ticks with its yield up two basis points at 2.65%. Treasuries fell to lows following the above-consensus ISM Services reading before erasing a portion of their losses over the next 90 minutes.

Elsewhere, downside protection remains in demand as indicated by the CBOE Volatility Index (VIX 20.03, +0.92), which is higher by 4.8%. The near-term volatility measure currently hovers in the middle of Monday's range.

10:55 am: [BRIEFING.COM] The major averages find themselves near their lows after retracing the brief spike that took place following the above-consensus reading of the ISM Services Index. Small caps are leading the weakness with the Russell 2000 trading lower by 1.6%. Meanwhile, the S&P 500 holds a loss of 0.7% with all ten sectors trading in the red.

Top-weighted sectors trade mixed with respect to the broader market. The two largest groups-financials (-0.5%) and technology (-0.5%)-outperform while the next two-consumer discretionary (-0.9%) and health care (-1.0%)-lag. Together, the four sectors represent nearly 60% of the entire S&P 500.

Notably, the underperformance of health care is linked to broad losses in biotechnology. The iShares Nasdaq Biotechnology ETF (IBB 234.57, -6.44) is lower by 2.7%, which also weighs on the Nasdaq Composite (-1.2%).

10:35 am: [BRIEFING.COM]

Gold and silver futures rallied notably higher earlier this morning, which began just before floor trading opened. Both precious metals have since sold off with gold erasing all of those gains and silver erasing most.
ADP and ISM data contributed to weakness in gold and silver this morning.
Apr gold is now +0.7% at $1260.30/oz, Mar silver is +2.3% at $19.88/oz.
Crude oil was rallying just ahead of today's EIA weekly oil inventory data, but showed a muted reaction just after the numbers were released. Mar crude is now +0.4% at $97.60/barrel.
Natural gas futures have been plunging lower this morning. The energy component sold off about 8% from its HoD. Mar nat gas is now -0.1% at $5.37/MMBtu.

10:00 am: [BRIEFING.COM] The S&P 500 has trimmed its loss to 0.3% following a better-than-expected ISM Services report.

Just released, the ISM Services Index for January rose to 54.0 from 53.0 while the Briefing.com consensus expected an uptick to 53.8.

9:45 am: [BRIEFING.COM] The major averages began the session on a lower note with the Nasdaq (-0.5%) seeing the largest early decline. The S&P 500 trades lower by 0.4% with all ten sectors showing losses.

Looking at individual sectors, consumer discretionary (-0.6%), energy (-0.5%), and materials (-0.7%) are among the early laggards while financials (-0.2%) and technology (-0.1%) outperform.

Also of note, the industrial sector trades in-line with the broader market but transports lag after CH Robinson (CHRW 53.09, -5.55) reported disappointing quarterly results. The stock has tumbled 9.4% while the Dow Jones Transportation Average trades down 1.0%.

Elsewhere among industrials, 3-D printing stocks are under pressure after 3D Systems (DDD 55.43, -20.44) issued a profit warning. The stock is down 26.9%.

The January ISM Services report will be released at 10:00 ET.

9:11 am: [BRIEFING.COM] S&P futures vs fair value: -7.80. Nasdaq futures vs fair value: -12.00. Equities are on track for a lower open as the S&P 500 futures trade eight points below fair value. Futures retreated after yesterday's closing bell and held their losses until just before the European session got underway. After making a brief appearance in positive territory, futures reversed and headed to new lows while the yen began strengthening once again. Currently, the dollar/yen pair sits near 101.20 after notching a session low just below 100.80. Yen futures, meanwhile, trade higher by 0.5%.

In today's economic data, the ADP National Employment Report showed that employment in the nonfarm private business sector rose by 175K in January. This was slightly below the increase of 178K expected by the Briefing.com consensus. Interestingly, the ADP reading matches the Briefing.com consensus for the January nonfarm payrolls report, which will be released on Friday morning. Even though the two figures are in-line, it should be noted the correlation doesn't always hold. For instance, the December ADP reading of 200,000+ was well above the 74,000 indicated in the nonfarm payrolls report.

Participants received a fair dose of quarterly reports since yesterday's close, but they have not done much to change the general direction of the futures market. Notably, Dow Transports component, CH Robinson (CHRW 53.88, -4.76), holds a pre-market loss of 8.1% after missing the Capital IQ consensus estimate by six cents on below-consensus revenue.

Treasuries trade little changed with the 10-yr yield at 2.63%.

8:58 am: [BRIEFING.COM] S&P futures vs fair value: -8.90. Nasdaq futures vs fair value: -12.50. The S&P 500 futures have trimmed their losses and now trade nine points below fair value.

Markets across Asia finished mixed amid a mostly uneventful session. Regional data was limited to a handful of reports including Japan's average cash earnings, which rose 0.8% year-over-year (0.7% expected, 0.6% prior). Elsewhere, Australia's AIG Services Index improved to 49.3 from 46.1 and New Zealand's employment increased 1.1% quarter-over-quarter (0.6% forecast, 1.2% prior) while the unemployment rate ticked down to 6.0% from 6.2%, as expected. Separately, Labor Cost Index increased 0.6% quarter-over-quarter, as expected (0.4% prior). Also of note, Indonesia's GDP increased 5.72% (5.30% expected, 5.62% prior).

A report in Nikkei News questioned the legitimacy of Chinese labor data, suggesting the country's decision to stop announcing jobless figures likely means unemployment is on the rise.

Japan's Nikkei gained 1.2%, climbing off four-month lows. Despite the higher close, the index endured a shaky session, nearly surrendering its opening gain during the first half of action. Panasonic and Toyota surged 19% and 6%, respectively, after posting strong quarterly reports.
Hong Kong's Hang Seng lost 0.6%, slumping to a seven-month low. Macau casino stocks were hit hard after gaming revenues fell well short of estimates. Sands China led the group lower, tumbling 7.5%.
China's Shanghai Composite remained closed in celebration of the Lunar New Year.

Major European indices trade little changed after the release of several regional PMI readings. Eurozone Services PMI slipped to 51.6 from 51.9 (51.9 consensus). Separately, retail sales fell 1.6% month-over-month (-0.5% consensus, 0.9% previous) while the year-over-year reading decreased 1.0% (+1.5% forecast, 1.3% prior). Germany's Services PMI decreased to 53.1 from 53.6 (53.6 forecast). Great Britain's Services PMI slipped to 58.3 from 58.8 (59.0 expected). French Services PMI rose to 48.9 from 48.6 (48.6 forecast). Italian Services PMI increased to 49.4 from 47.9 (48.6 expected). Spain's Services PMI improved to 54.9 from 54.2 (54.8 forecast).

According to Reuters, Greece is likely to avoid a fiscal gap this year, but is still expected to need EUR10-20 billion in bailout funds for next year's needs.

Germany's DAX is lower by 0.3% with ThyssenKrupp pacing the retreat. The steelmaker holds a loss of 2.2%. Exporters trade in mixed fashion with BMW down 0.8% and Volkswagen up 0.9%.
In France, the CAC holds a loss of 0.1% as industrials weigh. Airbus Group and Alstom are both down near 1.5%. Financials are showing relative strength with BNP Paribas, Credit Agricole, and Societe Generale up between 0.2% and 1.1%.
Great Britain's FTSE outperforms with a modest gain of 0.2%. Associated British Foods leads, trading higher by 5.3%, following upbeat commentary at Morgan Stanley. On the downside, broker Hargreaves Lansdown trades down 7.6% following disappointing results.

8:27 am: [BRIEFING.COM] S&P futures vs fair value: -13.80. Nasdaq futures vs fair value: -23.00. The S&P 500 futures have dropped to fresh lows in a move that coincided with the yen climbing to highs. The S&P 500 futures trade almost 14 points below fair value while the dollar/yen pair hovers just below the 101.00 level.

According to today's ADP National Employment Report, employment in the nonfarm private business sector rose by 175K in January. This was a bit below the increase of 178K expected by the Briefing.com consensus. Also of note, the December reading was revised down to 227,000 from 238,000.

Although some like to use the ADP figures as an early gauge of the nonfarm payrolls report, it should be noted the two are not always closely correlated. For instance, last month's reading of 200,000+ was well above the 74,000 indicated in the nonfarm payrolls report.

8:00 am: [BRIEFING.COM] S&P futures vs fair value: -11.30. Nasdaq futures vs fair value: -19.30. U.S. equity futures hover near their lows amid cautious overseas action. The S&P 500 futures trade 11 points below fair value.

Reviewing overnight developments:

Asian markets ended mixed. Japan's Nikkei +1.2%, Hong Kong's Hang Seng -0.6%, and China's Shanghai Composite -0.8%.
In economic data:
Japan's average cash earnings rose 0.8% year-over-year (0.7% expected, 0.6% prior).
Australia's AIG Services Index improved to 49.3 from 46.1.

New Zealand's employment increased 1.1% quarter-over-quarter (0.6% forecast, 1.2% prior) while the unemployment rate ticked down to 6.0% from 6.2%, as expected. Separately, Labor Cost Index increased 0.6% quarter-over-quarter, as expected (0.4% prior).
India's HSBC Services PMI rose to 48.3 from 46.7.
Indonesia's GDP increased 5.72% (5.30% expected, 5.62% prior).
Among news of note:
Japan's Nikkei endured a shaky session, nearly surrendering its opening gain during the first half of action; however, the index returned to its opening levels into the close.
A report in Nikkei News questioned the legitimacy of Chinese labor data, suggesting the country's decision to stop announcing jobless figures likely means unemployment is on the rise.

Major European indices trade little changed. Germany's DAX -0.2%, Great Britain's FTSE +0.3%, and France's CAC is flat. Elsewhere, Italy's MIB +0.1% and Spain's IBEX +0.1%.
Participants received several economic data points:
Eurozone retail sales fell 1.6% month-over-month (-0.5% consensus, 0.9% previous) while the year-over-year reading decreased 1.0% (+1.5% forecast, 1.3% prior). Separately, Services PMI slipped to 51.6 from 51.9 (51.9 consensus).
Germany's Services PMI decreased to 53.1 from 53.6 (53.6 forecast).
Great Britain's Services PMI slipped to 58.3 from 58.8 (59.0 expected).
French Services PMI rose to 48.9 from 48.6 (48.6 forecast).
Italian Services PMI increased to 49.4 from 47.9 (48.6 expected).
Spain's Services PMI improved to 54.9 from 54.2 (54.8 forecast).
In news:
According to Reuters, Greece is likely to avoid a fiscal gap this year, but is still expected to need EUR10-20 billion in bailout funds for next year's needs.

In U.S. corporate news

Gilead Sciences (GILD 82.10, +0.08): +0.1% after beating on earnings and revenue.
GlaxoSmithKline (GSX 51.79, +0.89): +1.8% after reporting in-line results.
Merck (MRK 55.03, +1.52): +2.8% despite missing the Capital IQ consensus estimate by one cent.
Time Warner (TWX 63.25, +0.85): +1.4% after beating earnings estimates on above-consensus revenue. In addition, the company raised its quarterly dividend 10% and authorized a new $5 billion share repurchase program.

The weekly MBA Mortgage Index ticked up 0.4% to follow last week's 0.2% decline.

The ADP Employment Change report for January will be released at 8:15 ET while January ISM Services will be released at 10:00 ET.

6:30 am: [BRIEFING.COM] S&P futures vs fair value: -9.00. Nasdaq futures vs fair value: -17.50.

6:30 am: [BRIEFING.COM] Nikkei...14180.38...+171.90...+1.20%. Hang Seng...21269.38...-128.40...-0.60%.

6:30 am: [BRIEFING.COM] FTSE...6465.97...+16.70...+0.20%. DAX...9112.05...-15.40...-0.20%.

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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