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 Post subject: February 7th Friday Trade Results - Profit $2,180.00
PostPosted: Fri Feb 07, 2014 5:50 pm 
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Joined: Sat Jan 10, 2009 2:06 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)
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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 @ $2,180.00 dollars or +21.80 points, Emini ES ($ES_F) futures @ $0.00 dollars or +0.00 points, Light Crude Oil CL ($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 @ $2,180.00 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=1717

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 End Choppy Week On A High Note

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

NEW YORK (CNNMoney)
Bad news appears to be good news again as investors shrugged off the tepid jobs report and put their faith in the Federal Reserve.

The Dow soared 160 points Friday, while the S&P 500, and Nasdaq also rose even though the government said that only 113,000 jobs were created in January. Economists surveyed by CNNMoney expected the U.S. economy to have added 178,000 jobs. The unemployment rate ticked down to 6.6%.-- its lowest level in five years.

It was the second straight day of gains in what's been a choppy week for the market. Stocks did wind up finishing the week in positive territory. But the Dow is still down almost 5% this year.

While some economists warned that a weak jobs report could be expected due to unusually cold weather in January, Friday's number follows a weak December report in which the economy added a paltry 75,000 jobs.

"Colder than normal weather was a factor but that simply does not explain two consecutive months of poor performance," said Peter Morici, an economics professor at the University of Maryland. "These sad results are consistent with a broadly underperforming economy."

But the poor job growth could mean that the Fed will pause on pulling back, or tapering, its monthly bond purchases at its next meeting in March And that may be why markets were higher Friday, according to Justin Wiggs, a trader with Stifel Nicolaus.

"The thought process now is that bad can be good in the near-term," he said.

The Fed has cut the size of its so-called quantitative easing program twice since December: first from $85 billion per month to $75 billion, and then again to $65 billion. Investors will be looking for more clues about the Fed's next moves when new Fed chair Janet Yellen appears twice before Congress to discuss the state of the economy.

Still, turmoil in emerging markets and concerns about the strength of the U.S. economy could mean more volatility in the months ahead, market strategists say.

And big investors are rotating out of stocks and into bonds. For the week ending February 5th, institutional investors pulled a record amount of money out of U.S. stock funds and shifted it into bonds funds, according to EPFR Global. That trend is significant because most Wall Street analysts predicted the opposite coming into the new year.

* CNNMoney's Tech 30

On the corporate front, shares of Apple (AAPL, Fortune 500) rose after the Wall Street Journal reported that CEO Tim Cook said the company bought back a big chunk of its own stock after its disappointing earnings report last month.

But one StockTwits user pointed out that the buyback was announced previously.

"$AAPL they bought back stock which they said they would do...nothing new here," said eddyhooks.

Another StockTwits trader thought the buyback was a ploy by Apple to save face, considering some investors are worried about the company's ability to wow the market with new products.

"$AAPL running out of ideas," said bullvsbear.

LinkedIn (LNKD) shares dropped 6% after the professional networking site reported guidance that missed forecasts. That made the stock the worst performer in CNNMoney's Tech 30 index.

StockTwits user nancefinance lamented that Linkedin is the only game in town for social career networking.

"$LNKD Everyone uses it but does anyone really like it?," she said. "It's clunky, slow, and customer support is lame."

Other chatter on StockTwits focused on the stock's high valuation compared to its earnings.

" $LNKD...this is the real bubble," said mytfine.

News Corp (NWS) shares jumped following quarterly earnings that beat expectations.

Shares of Outerwall Inc. (OUTR), which produces Redbox and Coinstar dispensers, surged 12% on news that the company plans to buy back $350 million worth of stock.

And Expedia (EXPE) spiked over 14% to a new all-time high after the travel website company posted earnings that beat analysts' forecasts. The news helped lift shares of other travel sites Priceline (PCLN, Fortune 500) and TripAdvisor (TRIP).

* Millennials invest like their grandparents

European markets finished higher. Asian markets ended the week with gains. The Nikkei in Japan was a standout performer, advancing by 2.2% Friday. The index is on the rebound after losing more than 11% since the beginning of 2014.

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4:15 pm: [BRIEFING.COM] The major averages finished a shaky week on an upbeat note. The Nasdaq led the way, climbing 1.7% while the Dow Jones Industrial Average and S&P 500 added 1.1% and 1.3%, respectively. Thanks to the broad rally, the indices managed to register weekly gains between 0.5% and 0.8% but small caps were not as fortunate. The Russell 2000 gained 1.1%, trimming its weekly loss to 1.3%.

Prior to the open, it was reported that only 113,000 nonfarm payrolls were added in January while the Briefing.com consensus expected an increase of 175,000. Immediately after the release, equity futures and the dollar/yen pair tumbled while gold futures and Treasuries rallied. Strikingly, the moves reversed nearly as fast after the dollar/yen pair surged off its low near the 101.50 level.

Once again, the rebound in dollar/yen occurred in conjunction with the rebound in futures and continued into the session. This suggests participants remain very sensitive to the performance of the Japanese currency due to the popularity of the yen-based carry trade that benefits from rising stocks and a falling yen.

An interesting component of today's rally in the stock market, which was presumably predicated on the belief that pent-up demand will unleash better labor market and economic data in coming months, was that the Treasury market also traded higher. The benchmark 10-yr note added four ticks, pressuring its yield to 2.68%. The growth acceleration view, therefore, did not appear to be resonating as much in the fixed income market as it did in the stock market.

In the same vein, the US Dollar Index (DXY 80.65, -0.25) slipped today in a move that didn't exactly mesh with the stock market's seeming optimism about the road ahead. Also of note, gold futures rose 0.5% to $1262.90/ozt.

Just like yesterday, cyclical sectors paced the bulk of the advance. All six growth-sensitive groups posted gains between 1.1% and 1.6% with industrials ending in the lead. The sector drew strength from the likes of Boeing (BA 127.02, +4.35) and Honeywell (HON 93.16, +2.02) while transports lagged. The Dow Jones Transportation Average surged at the open and tested its 50-day moving average (7272) before surrendering a portion of the advance. The bellwether complex ended higher by 0.8% after being up nearly 1.2% in the morning.

Elsewhere among cyclical sectors, the discretionary space advanced 1.3%, extending its weekly gain to 1.9%. The discretionary sector ended the week ahead of the remaining nine groups after losing nearly 6.0% in January.

On the defensive side, health care (+1.7%) seized the lead during the afternoon while the remaining three countercyclical groups-consumer staples (+0.9%), telecom services (+0.7%), and utilities (+0.6%)-lagged. Biotechnology contributed to the outperformance of the health care sector as the iShares Nasdaq Biotechnology ETF (IBB 246.33, +9.54) surged 4.0%.

Participation was a bit above average as 751 million shares changed hands at the NYSE.

Today's data was limited to just two reports:

Nonfarm payrolls added only 113,000 jobs in January. That was up from a 75,000 (from 74,000) gain in December, but well below the Briefing.com consensus expectation of a 175,000 gain. Even though the claims data have shown improvements in labor conditions and a clear decline in layoff trends, it has not translated into employers hiring more workers. The labor market is stuck in the mud. Many analysts will be quick to blame the poor data on extreme cold and other problematic weather conditions, but if this was the case then jobs that are directly affected by the weather-such as construction-should have fallen in January. That did not happen. The construction sector actually added 48,000 new jobs in January, which was the most new jobs since 80,000 jobs were added in March 2007. Total private payrolls added 142,000 jobs in January, up from an 89,000 gain in December. The consensus expected private payrolls to increase by 161,000. The unemployment rate fell to 6.6% from 6.7% while the consensus expected the rate to remain at 6.7%.
The consumer credit report for December showed credit growth of $18.80 billion while the Briefing.com consensus expected the reading to come in at $11.50 billion. The prior month's reading was revised higher to $12.40 billion from $12.30 billion.

There is no economic data on Monday's schedule.

Week in Review: Stocks Roundtrip

The stock market began February on a sharply lower note after enduring a rough month of January. Small caps paced the Monday retreat as the Russell 2000 tumbled 3.1% while the S&P 500 fell 2.3%. For its part, the Dow Jones Industrial Average lost 2.1%, ending below its 200-day moving average (15470). Despite the sharply lower finish, the session actually started in the green. However, sellers emerged during the opening minutes and intensified their efforts after the January ISM Manufacturing Index registered a large decline (to 51.3 from 56.6). Although the ISM report itself did not cause the aggressive selloff, it added to the global growth concerns that have been percolating under the surface after China's Manufacturing PMI (50.5) fell to a six-month low while the Non-Manufacturing reading (53.4) registered an 11-month low. Furthermore, the selloff was accompanied by another wave of yen strength. Dollar/yen traded right above the 102.00 level at the start of the session, but retreated along with equities. The pair finished the trading day right under 101.00 while yen futures added 1.4%, extending their 2014 gain to 4.3%.

On Tuesday, the stock market rebounded, erasing roughly a third of Monday's losses. The Nasdaq led the way, rising 0.9% while the S&P 500 gained 0.8%. For its part, the Dow Jones Industrial Average added 0.5%, but was unable to reclaim its 200-day moving average (15474). Equities rallied steadily throughout the session in the absence of yen strength, which has been a headwind to the market since the start of the year. In fact, the yen began retreating overnight, and continued its slide into the close. Dollar/yen finished near 101.65 after starting its rally from just below the 101.00 level. Nine of ten sectors ended in the green with the discretionary space in the lead. The sector added 1.2% after Michael Kors (KORS 94.22, +2.72) and Yum! Brands (YUM 71.73, +0.56) reported above-consensus earnings.

Equities ended the Wednesday session on a mixed note. The Nasdaq and S&P 500 settled 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 close above its 200-day moving average (15479) for the second day in a row. The trading day began on a lower note as stocks succumbed to the pressure exerted by the Japanese yen, which strengthened again overnight. 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.

Stocks rallied broadly on Thursday, placing the Dow Jones Industrial Average (+1.2%) back above its 200-day moving average (15483). The S&P 500 also gained 1.2%, ending just north of its 100-day average (1772) after flirting with that level during the afternoon. The session began on an upbeat note and equities climbed through the first 90 minutes of action. Much of the advance was paced by groups that faced aggressive selling during the recent pullback, suggesting short covering played a role in the rally. Once again, the discretionary sector finished in the lead after ending January behind eight other sectors. Yen weakness also factored into the advance as the retreat of the Japanese currency calmed fears about some participants being forced out of yen-based carry trades due to strength in the funding currency. The dollar/yen pair ended the New York session right above 102.00 after starting the day near 101.20.

Nasdaq Composite -1.2% YTD
S&P 500 -2.8% YTD
Russell 2000 -4.0% YTD
Dow Jones Industrial Average -4.7% YTD

3:35 pm: [BRIEFING.COM]

Commodities ended the day mostly higher with copper and precious metals, most grains and most components of the energy sector all posting gains today.
Natural gas futures fell again today, extending losses over the past two days. Nat gas climbed higher between Mon-Wed, but after hitting its highest level of the week at $5.73, the energy component fell over 16% and ended the week at $4.78/MMBtu.
Crude oil momentarily rose above $100/barrel today, but ended the week about $2.34/barrel higher $99.87/barrel (Mar contract).
Silver futures only rose one cent on the day, but are up 80 cents or +4.2% on the week at $19.93/oz. Gold rose 2% on the week at $1262.90/oz

3:00 pm: [BRIEFING.COM] The S&P 500 trades higher by 1.1% with one hour remaining in today's session.

The Consumer Credit report for December was just released by the Federal Reserve and it showed that consumer credit increased by $18.8 billion. That was higher than the Briefing.com consensus estimate of $11.5 billion. The prior month's credit growth was revised higher to $12.40 billion from $12.30 billion.

2:30 pm: [BRIEFING.COM] Not much has changed since our last update as the major averages remain near their highs.

This week, participants received several economic data points with today's nonfarm payrolls report receiving the most attention. Next week, however, will be pretty quiet in terms of data. Most notably, January retail sales will be announced on Thursday at 8:30 ET and the preliminary reading of the February Michigan Consumer Sentiment survey will be released on Friday at 9:55 ET.

In 30 minutes, the Federal Reserve will release the December Consumer Credit report.

2:00 pm: [BRIEFING.COM] Equities have pushed to fresh highs with industrials (+1.6%) and health care (+1.5%) maintaining their leadership. As a result of today's advance, both sectors are now green for the week. The industrial sector is higher by 0.6% so far this week while the health care sector has added 0.2% this week. Furthermore, the health care sector is one of just two groups that trade above their closing levels from 2013.

Health care has added 1.1% so far this year while the utilities sector is higher by 2.0% so far in 2014.

1:30 pm: [BRIEFING.COM] The major indices keep moving higher in a broad-based rally that is long on technical underpinnings. After hitting 1737 on Wednesday and holding, the S&P 500 has come storming back, fueled by short-covering activity and the buy-the-dip inculcation that served it so well in 2013.

An interesting component of today's rally in the stock market, which is presumably predicated on the belief that pent-up demand will unleash better labor market and economic data in coming months, is that the Treasury market is also trading higher. In fact, the benchmark 10-yr note continues to trade near its best levels of the day (+9/32, yielding 2.66%) as the major stock indices hit their best levels of the day.

The growth acceleration view, therefore, doesn't appear to be resonating as much in the fixed income market as it is in the stock market. In the same vein, the US Dollar Index (DXY 80.75, -0.16) is down today in a move that doesn't exactly mesh with the stock market's seeming optimism about the road ahead.

12:55 pm: [BRIEFING.COM] At midday, the major averages sit at their best levels of the session. The Nasdaq leads with a gain of 1.2% while the Dow and S&P 500 trade higher by 0.6% and 0.8%, respectively. Including today's advance, the three indices are back in the green for the week, displaying modest gains between 0.1% and 0.3%. Small caps have not enjoyed an equally robust rebound as the Russell 2000 remains down 1.7% for the week.

Stocks rallied from the opening bell despite a disappointing nonfarm payrolls report for January, which pointed to the addition of just 113,000 jobs (Briefing.com consensus 175,000). The immediate reaction saw a drop in equity futures while Treasuries rallied. The dollar/yen pair also tumbled (yen strength) following the report, but managed a sharp rebound off the 101.50 level.

Strikingly, the rebound in dollar/yen occurred in conjunction with the rebound in futures, suggesting participants remain very sensitive to the performance of the Japanese currency. This is due to the popularity of the yen-based carry trade that benefits from rising stocks and a falling yen.

The dollar/yen pair has held near the 102.20 level since the morning rebound while the Treasury market has been inching higher. Currently, the 10-yr note is higher by 11 ticks with its yield down four basis points at 2.66%.

Similar to yesterday, cyclical sectors have paced today's rally with industrials (+1.1%) and technology (+1.1%) in the lead. Interestingly, even though the industrial sector outperforms, transports lag. The Dow Jones Transportation Average surged at the open and tested its 50-day moving average (7272) before surrendering a good portion of the advance. The bellwether complex trades higher by 0.3% after being up nearly 1.2% this morning.

Elsewhere, the health care sector has also done some heavy lifting with help from biotechnology. The health care sector trades up 1.2% while the iShares Nasdaq Biotechnology ETF (IBB 244.22, +7.43) is higher by 3.1%.

Taking a closer look at today's data:

Nonfarm payrolls added only 113,000 jobs in January. That was up from a 75,000 (from 74,000) gain in December, but well below the Briefing.com consensus expectation of 175,000 gain. Even though the claims data have shown improvements in labor conditions and a clear decline in layoff trends, it has not translated into employers hiring more workers. The labor market is stuck in the mud. Many analysts will be quick to blame the poor data on extreme cold and other problematic weather conditions, but if this was the case then jobs that are directly affected by the weather -- such as construction -- should have fallen in January. That did not happen. The construction sector actually added 48,000 new jobs in January, which was the most new jobs since 80,000 jobs were added in March 2007. Total private payrolls added 142,000 jobs in January, up from an 89,000 gain in December. The consensus expected private payrolls to increase by 161,000. The unemployment rate fell to 6.6% from 6.7% while the consensus expected the ate to remain at 6.7%.

12:30 pm: [BRIEFING.COM] The major averages sit at their best levels of the session with the Nasdaq (+1.2%) maintaining its lead. Following today's rally, the Dow, Nasdaq, and S&P 500 are now back in the green for the week.

The S&P 500 is now higher by 0.3% so far this week while the Dow and Nasdaq are both higher by 0.1% week-to-date. Small-caps have not seen an equally robust rebound as the Russell 2000 remains lower by 1.6% for the week.

Individual sectors are showing mixed performance for the week with four groups down and six holding gains. The telecom services sector (-2.7%) is the weakest performer since last Friday while the consumer discretionary sector (+1.3%) has outperformed the remaining groups. In all likelihood the sector has benefitted from some short covering after losing nearly 6.0% in January.

12:00 pm: [BRIEFING.COM] The Dow (+0.6%) and S&P 500 (+0.8%) have returned to their opening highs while the Nasdaq (+1.2%) has extended to a fresh session best.

At this juncture, only four sectors-consumer staples, energy, telecom services, and utilities-continue to trail the broader market while the remaining six groups outperform. The health care sector (+1.2%) has seized the lead while industrials (+1.1%) follow not far behind.

The industrial sector has received considerable support from the likes of Boeing (BA 125.77, +3.10) and United Technologies (UTX 110.47, +1.02) while transports lag. The Dow Jones Transportation Average surged at the open and tested its 50-day moving average (7272) before surrendering a good portion of its advance. The bellwether complex trades higher by 0.5% after being up nearly 1.2% shortly after the open.

11:30 am: [BRIEFING.COM] The Dow (+0.4%) and S&P 500 (+0.7%) hover near the middle of their respective trading ranges while the Nasdaq (+1.0%) hovers not far from its best level of the session.

The tech-heavy index has drawn significant support some of its top components and biotechnology. Apple (AAPL 519.06, +6.55), Google (GOOG 1166.18, +6.22), Oracle (ORCL 36.97, +0.25), and Qualcomm (QCOM 73.69, +0.45) display gains between 0.6% and 1.4% while the iShares Nasdaq Biotechnology ETF (IBB 243.78, +6.99) trades up 3.0%. The biotech ETF has recently jumped to highs, which also gave a boost to the health care sector. The largest countercyclical group now trades ahead of the broader market with a solid gain of 0.9%.

Interestingly, even though several large tech components trade higher, the gains are not widespread among other components. Cisco Systems (CSCO 22.52, +0.03), eBay (EBAY 54.55, +0.18), Microsoft (MSFT 36.20, +0.02), and Intel (INTC 23.93, -0.06) all trade little changed.

11:05 am: [BRIEFING.COM] The major averages have continued their retreat from the early highs, trimming the S&P 500's gain to 0.5%. The Dow, meanwhile, is higher by 0.3% after making a brief appearance in the red.

The recent retreat from highs has been accompanied by the Japanese yen ticking up off its session low. The performance of the dollar/yen pair deserves close attention as yen strength can pressure stocks considering many professionals fund their equity positions with the Japanese currency. When the funding currency strengthens, the cost of borrowing increases. Currently, dollar/yen hovers just below 102.30 after notching a session high just north of 102.50.

The retreat in equities that has been observed over the past hour has also coincided with strength among Treasuries. The 10-yr note is now higher by nine ticks with its yield down four basis points at 2.67%.

10:35 am: [BRIEFING.COM] Gold and silver futures spiked to new session highs following employment data earlier, but most gains have been erased. Apr gold is now +0.6% at $1264.70/oz, while Mar silver is +0.2% at $19.97/oz.

Natural gas has extended yesterday's losses and fell as low as $4.74/MMBtu. Mar nat gas has been recovering this morning, however, and has erased a large portion of its losses. Mar nat gas is now +0.1% at $4.94/MMBtu.

Crude oil futures rallied out of negative territory to a new session high of $987.43/barrel, which was hit about 40 minutes ago. Mar crude oil is now +0.4% at $98.05/barrel.

10:00 am: [BRIEFING.COM] The major averages have taken a step back from their opening highs, but they continue to hold the bulk of their gains.

Most growth-sensitive sectors remain in the lead while countercyclical groups lag. The telecom sector has slipped into the red while consumer staples, health care, and utilities display gains between 0.2% and 0.6%.

Elsewhere, the bond market has seen some inflows over the past 30 minutes. The 10-yr note is higher by six ticks with its yield down two basis points at 2.68%. The benchmark yield started the New York session at 2.70%.

9:40 am: [BRIEFING.COM] Equities began the session with broad gains after the disappointing January nonfarm payrolls report contributed to pre-market volatility.

The S&P 500 trades higher by 0.6% with all ten sectors showing early gains. Similar to yesterday, cyclical sectors are providing the early leadership with financials, industrials, and materials displaying gains between 0.8% and 1.1%.

Three out of four defensive sectors lag while consumer staples trade in-line with the broader market. Meanwhile, health care, telecom services, and utilities are up between 0.1% and 0.3%.

With stocks off to a strong start, there hasn't been too much interest in volatility protection as the CBOE Volatility Index (VIX 16.04, -1.19) trades lower by 6.9%.

9:17 am: [BRIEFING.COM] S&P futures vs fair value: +9.10. Nasdaq futures vs fair value: +20.20. The stock market is on track for an upbeat open as the S&P 500 futures trade nine points above fair value. Despite their current gain, futures fell to lows after it was reported that only 114,000 nonfarm payrolls were added in January (Briefing.com consensus 175,000).

The drop in futures was accompanied by a surge in the yen and the subsequent reversal was supported by a wave of yen weakness. The dollar/yen pair fell from 102.50 to 101.50 immediately following the number, and now trades back above the 102.00 level.

The yen bears watching throughout the day as a return of yen strength would likely pressure the yen-based carry trade and weigh on equities.

Treasuries trade little changed with the 10-yr yield at 2.69%.

8:58 am: [BRIEFING.COM] S&P futures vs fair value: +8.30. Nasdaq futures vs fair value: +15.70. The S&P 500 futures have returned to their pre-market highs and now trade eight points above fair value.

It was a sea of green across Asia as all of the major bourses saw gains. The region returned to full strength as China's Shanghai Composite reopened after the week-long Lunar New Year celebration. The Reserve Bank of Australia upped its growth forecast through June to 2.75% (2.5% previous) and through 2014 to 2.25%-3.25% (2.0%-3.0% previous). The central bank also raised its FY 2014 CPI forecast to 2.75% (2.5% previous). In economic data, China's HSBC Services PMI slipped to 50.7 (50.9 previous) and Japan's Leading Index rose to 112.1 from 111.1 (111.9 expected).

Japan's Nikkei jumped 2.2%, regaining its 200-day moving average. A weaker yen provided a boost to exporters as Nikon added 5.5% and Toyota Motor climbed 2.0%.
Hong Kong's Hang Seng gained 1.0% as action continued to climb off seven-month lows. Property developers saw robust gains as Sun Hung Kai Properties rallied 3.3% and Henderson Land Development spiked 3.1%.
China's Shanghai Composite rallied 0.6% to start the New Year. Technology shares paced the advance while financials lagged.

Major European indices trade near their flat lines after the release of several economic data points. Germany's industrial production fell 0.6% month-over-month (0.5% expected, 2.4% prior). Great Britain's industrial production rose 0.4% month-over-month (0.6% forecast, -0.1% previous) while the year-over-year reading climbed 1.8% (2.3% expected, 2.1% last). Manufacturing production ticked up 0.3% month-over-month (0.6% consensus, -0.1% prior) while the year-over-year reading increased 1.5% (2.3% expected, 2.2% last). Separately, the trade deficit narrowed to GBP7.72 billion from GBP9.78 billion (deficit of GBP9.30 expected). French trade deficit narrowed to EUR5.20 billion from EUR5.70 billion (deficit of EUR5.0 billion expected) while the government budget deficit narrowed to EUR74.90 billion from EUR87.00 billion (EUR80.00 billion forecast). Spain's industrial production increased 1.7% year-over-year (0.5% consensus, 2.4% previous). Swiss retail sales rose 2.3% year-over-year (3.9% expected, 4.2% prior).

In news, the German Constitutional Court, which was tasked with determining the legality of ECB's Outright Monetary Transactions (OMTs), has deferred the decision to the European Court of Justice. Also of note, the National Bank of Ukraine has placed limits on foreign exchange transactions. Following the decision, companies will need to go through a waiting period before conducting transactions while individuals will face a monthly limit of UAH50,000 in addition to other restrictions.

Great Britain's FTSE trades up 0.2%. Consumer names outperform with Persimmon and TUI Travel up 3.5% and 2.4%, respectively. Tullow Oil is the weakest performer, down 3.1%.
Germany's DAX is higher by 0.2% with chemical producer Lanxess in the lead. The stock trades up 3.1%. Financials lag with Commerzbank, Deutsche Bank, and Muenchener Re down between 0.2% and 1.4%.
In France, the CAC sports an advance of 0.3%. ArcelorMittal is the top performer, up 3.7% after reporting better-than-expected earnings. Software company Gemalto is the weakest performer, down 1.4%.

8:33 am: [BRIEFING.COM] S&P futures vs fair value: -8.90. Nasdaq futures vs fair value: -11.50. The S&P 500 futures fell to lows following a below-consensus nonfarm payrolls report. Futures on the S&P 500 currently trade nine points below fair value.

January nonfarm payrolls came in at 113,000 while the Briefing.com consensus expected a reading of 175,000. Nonfarm private payrolls added 142,000 against the 161,000 expected by the consensus. The unemployment rate fell to 6.6% while the consensus expected a reading of 6.7%.

Hourly earnings increased 0.2%, in-line with expectations. The average workweek was reported at 34.4 against the 34.5 expected by the consensus.

8:00 am: [BRIEFING.COM] S&P futures vs fair value: +4.80. Nasdaq futures vs fair value: +13.50. U.S. equity futures hold modest gains with the S&P 500 futures trading five points above fair value. Some volatility is expected at 8:30 ET when the January nonfarm payrolls report crosses the wires. The Briefing.com consensus expects the reading to come in at 175,000 to follow the 74,000 from December.

Reviewing overnight developments:

Asian markets posted gains. China's Shanghai Composite +0.6%, Hong Kong's Hang Seng +1.0%, and Japan's Nikkei +2.2%.
In economic data:
China's HSBC Services PMI fell to 50.7 from 50.9.
Japan's Leading Index rose to 112.1 from 111.1 (111.9 expected).
Australia's AIG Construction Index fell to 48.2 from 50.8.
Among news of note:
China's HSBC Services PMI came in just above a record low level as a soft manufacturing growth weighed on the survey.

Major European indices trade little changed. Great Britain's FTSE +0.2%, France's CAC +0.2%, and Germany's DAX +0.2%. Elsewhere, Italy's MIB +0.1% and Spain's IBEX +0.3%.
Participants received several economic data points:
Germany's industrial production fell 0.6% month-over-month (0.5% expected, 2.4% prior).
Great Britain's industrial production rose 0.4% month-over-month (0.6% forecast, -0.1% previous) while the year-over-year reading climbed 1.8% (2.3% expected, 2.1% last). Manufacturing production ticked up 0.3% month-over-month (0.6% consensus, -0.1% prior) while the year-over-year reading increased 1.5% (2.3% expected, 2.2% last). Separately, the trade deficit narrowed to GBP7.72 billion from GBP9.78 billion (deficit of GBP9.30 expected).
French trade deficit narrowed to EUR5.20 billion from EUR5.70 billion (deficit of EUR5.0 billion expected) while the government budget deficit narrowed to EUR74.90 billion from EUR87.00 billion (EUR80.00 billion forecast).
Spain's industrial production increased 1.7% year-over-year (0.5% consensus, 2.4% previous).
Swiss retail sales rose 2.3% year-over-year (3.9% expected, 4.2% prior).
In news:
The German Constitutional Court, which was tasked with determining the legality of ECB's Outright Monetary Transactions (OMTs), has deferred the decision to the European Court of Justice.
The National Bank of Ukraine has placed limits on foreign exchange transactions. Following the decision, companies will need to go through a waiting period before conducting transactions while individuals will face a monthly limit of UAH50,000 in addition to other restrictions.

In U.S. corporate news:

Activision Blizzard (ATVI 18.79, +1.62): +9.4% after beating on earnings and revenue. However, the company guided Q1 earnings below consensus.
Apple (AAPL 522.22, +9.71): +1.9% after Reuters reported that the company has bought back $14 billion in shares since the January 27 earnings report.
ArcelorMittal (MT 17.46, +0.41): +2.4% following its better-than-expected results.
Cigna (CI 84.23, -1.14): -1.3% after reporting a bottom-line miss on above-consensus revenue.
Expedia (EXPE 74.15, +9.01): +13.8% following its earnings beat on better-than-expected revenue.
LinkedIn (LNKD 209.10, -14.35): -6.4% after its below-consensus guidance overshadowed its one-cent beat on above-consensus revenue.

In addition to the aforementioned nonfarm payrolls, hourly earnings and average workweek for January will also be announced at 8:30 ET while the December Consumer Credit report will cross the wires at 15:00 ET.

6:29 am: [BRIEFING.COM] S&P futures vs fair value: +3.00. Nasdaq futures vs fair value: +11.00.

6:29 am: [BRIEFING.COM] Nikkei...14462.41...+307.30...+2.20%. Hang Seng...21636.85...+213.70...+1.00%.

6:29 am: [BRIEFING.COM] FTSE...6561.39...+3.10...+0.10%. DAX...9268.98...+14.80...+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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