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 Post subject: February 11th Tuesday Trade Results - Profit $1,270.00
PostPosted: Wed Feb 12, 2014 1:03 am 
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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 @ $1,020.00 dollars or +10.20 points, Emini ES ($ES_F) futures @ $250.00 dollars or +5.00 points, Light Crude Oil CL ($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 @ $1,270.00 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=1719

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 Soar As Investors Cheer Yellen

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

NEW YORK (CNNMoney)
Stocks got a boost Tuesday as new Fed chairwoman Janet Yellen stressed that monetary policy is unlikely to change much under her leadership. Investors clearly liked what they heard.

The Dow rose over 190 points and briefly crossed the 16,000 mark for the first time since January 24. The S&P 500 and Nasdaq advanced more than 1%. The rally picked up steam during Yellen's question and answer session with lawmakers.

Tuesday marked the Dow's fourth straight up day. The blue chip index has clawed back from a few weeks ago, but is still down 3.5% this year.

But thanks to Tuesday's rally, the S&P 500 is now less than 2% below its all-time high. And the Nasdaq inched into positive territory for 2014.

Yellen testified before the House Financial Services Committee. It was her first appearance since taking the helm of the central bank earlier this month.

Since January, the Fed has gradually been reducing the pace of that stimulus. After buying $85 billion in bonds per month since September 2012, the Fed said in December it would cut its purchases to $75 billion, and then trimmed the size of its quantitative easing program to $65 billion in January.

While the Fed appeared on course last month to taper once again at its next meeting in March, two consecutive months of tepid jobs growth have caused investors to wonder what the Fed will do next.

In prepared remarks, Yellen said the central bank plans to continue easing its stimulus program, a big driver of the 2013 stock market rally. She reiterated several times during the question and answer session that it would take a notable change in economic data for the Fed to change its plans.

And investors seem to be taking comfort in Yellen's comments. CNNMoney's Fear & Greed Index, which tracks various gauges of market sentiment, has been sitting in Extreme Fear mode over the past few weeks. But it moved up to plain old Fear levels thanks to Tuesday's move higher in stocks. That could be a reflection of a new sense of calm in the markets after recent volatility.

On the earnings front, Sprint (S, Fortune 500) shares rose after the wireless carrier reported better-than-expected revenue and decent subscriber gains. The company posted a loss, but the losses narrowed from a year earlier. Sprint has reportedly been thinking of making a bid for its rival T-Mobile (TMUS). But there are doubts about whether a deal would pass regulatory muster.

"Sprint's $S CEO declines specific comment in question about potential Sprint/T-Mobile $TMUS deal," noted StockTwits user FinancialJuice.

CVS Caremark (CVS, Fortune 500) shares gained after the drugstore chain reported quarterly increases in sales and profit. The company made waves last week when it announced it would soon stop selling cigarettes and other tobacco products. One trader noted that this could be a problem for the company going forward.

"$CVS front-end comps down...cutting tobacco won't help that..." said StockTwits user retail_guru.

Shares of cloud computing firm Rackspace Hosting tanked after CEO Lanham Napier said he would retire.

Still, one trader was bullish given the long-term prospects for cloud technology.

"$RAX...ridiculously inexpensive given that all storage and hosting will be cloud based in the future," said statspro.

ConAgra Foods (CAG, Fortune 500)shares plunged after the packaged foods company cut its full year earnings outlook. Another food company, milk producer Dean Foods (DF, Fortune 500). also fell on weak guidance.

Groupon (GRPN) shares took a dive on the news that a product management executive is leaving the daily deal site. But StockTwits trader extremelysmartguy didn't think the steep drop-off in share price was warranted.

"$GRPN what an absolutely obvious, non-issue pre-earnings flush based on a nothing news item that will soon be forgotten," he said.

Shares in British bank Barclays (BCS) fell in London after the firm reported a big fall in fourth quarter earnings and said it would cut up to 12,000 jobs. But Barclays also said it would give bigger bonuses to its investment bankers.

European markets finished higher, while Asian markets closed with sizable gains.

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4:20 pm: [BRIEFING.COM] The stock market rallied steadily throughout the Tuesday session with the Dow Jones Industrial Average (+1.2%) providing the lead. Thanks to the advance, the Dow narrowed its 2014 loss to 3.5% while the Nasdaq (+1.0%) was able to swing from a loss to a year-to-date gain of 0.4%. The S&P 500 (+1.1%) regained its 50-day moving average with all ten sectors contributing to the climb.

Heading into the session, many participants were anxious to hear Janet Yellen's first testimony as the new Fed Chair, but the lengthy appearance before the House Financial Services Committee was largely uneventful.

Like her predecessor, Ms. Yellen indicated the Fed plans to remain data dependent in its decision making and that measured tapering will continue unless economic data takes a turn for the worse. When asked about the impact of the disappointing jobs reports for December and January on the Fed's reaction function, Ms. Yellen said it would be premature to alter policy based on a limited sample size.

In other news from Washington, all signs pointed to the House of Representatives being ready to pass an unconditional bill to raise the debt ceiling, which likely contributed to the market's sunny disposition.

All ten sectors took part in today's advance with energy (+1.4%) and materials (+1.2%) ending in the lead. The energy sector drew strength from top components like Chevron (CVX 113.58, +1.89) while crude oil ended little changed at $99.95 per barrel.

Elsewhere, the materials space received significant support from miners. Royal Gold (RGLD 65.20, +2.66) and Randgold Resources (GOLD 77.08, +2.55) posted respective gains of 4.3% and 3.4% while the broader Market Vectors Gold Miners ETF (GDX 25.65, +0.95) jumped 3.9% and regained its 200-day moving average. On a related note, gold futures rose 1.2% to $1289.70 per troy ounce.

With regard to other growth-sensitive sectors, technology (+1.2%) and industrials (+1.1%) outperformed while consumer discretionary (+0.7%) and financials (+1.0%) lagged.

On the countercyclical side, health care and telecom services both gained 1.3% while consumer staples and utilities added 1.1% and 0.9%, respectively.

Treasuries ended on their lows with the 10-yr yield up four basis points at 2.72%.

Despite the broad rally, trading volume was below average as less than 700 million shares changed hands at the NYSE.

Today's economic data was limited to December wholesale inventories, which increased 0.3% after increasing 0.5% in November. The Briefing.com consensus expected an increase of 0.6%. The BEA assumed merchant wholesaler inventories rose 0.6% in December when calculating the advance fourth quarter GDP report. The lower-than-expected increase in wholesale inventories will result in a negative revision to fourth quarter GDP growth.

Tomorrow, the weekly MBA Mortgage Index will be reported at 7:00 ET while the January Treasury budget will be released at 14:00 ET.
Related Stories

Nasdaq Leads Mixed Session; FireEye Rises Pre-Earnings Investor's Business Daily
Wall Street little changed after two-day advance Reuters
Stocks Open Higher In Firm Trade; Cigna, VeriSign Crumble Investor's Business Daily
How the major US stock indexes fared Monday Associated Press
InPlay from Briefing.com Briefing.com

Nasdaq Composite +0.4% YTD
S&P 500 -1.6% YTD
Russell 2000 -2.9% YTD
Dow Jones Industrial Average -3.5% YTD

3:35 pm: [BRIEFING.COM]

Apr gold extended gains for a third consecutive session on Janet Yellen's first testimony as the new Fed Chair. Ms. Yellen indicated that measured tapering will continue unless economic data takes a turn for the worse. The yellow metal lifted from its session low of $1275.90 per ounce set moments after floor trade opened and advanced as high as $1294.40 per ounce by late morning action. It eventually settled with a 1.2% gain at $1289.70 per ounce.
Mar silver slipped to a session low of $19.92 per ounce but recovered into positive territory in mid-morning action. It brushed a session high of $20.29 per ounce and settled at $20.15 per ounce, or 0.1% higher.
Mar crude oil fell for the first time in six sessions, with prices slipping to a session low of $99.60 per barrel in morning action. The energy component spent the remainder of the session chopping around near the unchanged level and eventually settled at $99.95 per barrel, or 0.1% lower.
Mar natural gas lifted from a session low of $4.65 per MMBtu set moments after floor trade opened and trended higher to a session high of $4.85 per MMBtu. It settled 5.0% higher at $4.81 per MMBtu, booking its first gain in five sessions.

3:05 pm: [BRIEFING.COM] The S&P 500 trades higher by 1.3% with one hour remaining in today's session, which has proven to be a unidirectional affair. As a result of today's advance, the Nasdaq now holds a modest 2014 gain of 0.5% while the Dow and S&P 500 remain in the red with respective losses of 3.4% and 1.4% year-to-date.

After today's closing bell, participants will receive another batch of earnings with three S&P 500 components among the reporting names-DaVita (DVA 63.58, -0.26), Fossil (FOSL 117.20, +2.19), and Western Union (WU 15.92, +0.28).

Tomorrow morning, Deere (DE 87.77, +0.41) will headline the list of reporting companies.

2:35 pm: [BRIEFING.COM] Not much has changed since our last update as the major averages remain near their highs. This week has gotten off to a quiet start in terms of economic data with only three closely-watched reports on the schedule.

On Thursday, the January retail sales report will be released at 8:30 ET with the Briefing.com consensus expecting an unchanged reading. Ex-transportation, the consensus expects an uptick of 0.1%.

Two more noteworthy reports will be released on Friday with January industrial production (Briefing.com consensus +0.3%) and the preliminary reading of the Michigan Consumer Sentiment Survey (consensus 80.2) set to cross the wires at 9:15 ET and 9:55 ET, respectively.

Tomorrow's data will be limited to the weekly MBA Mortgage Index and the January Treasury Budget but neither report is expected to move the market.

2:00 pm: [BRIEFING.COM] The S&P 500 remains near its best level of the session with seven sectors showing gains in excess of 1.0%. Meanwhile, the three underperforming sectors-consumer discretionary (+0.8%), consumer staples (+0.9%), and financials (+0.9%)-follow not far behind.

With regard to the outperformers, energy (+1.3%) and materials (+1.2%) remain in the lead. Interestingly, the energy sector displays significant strength even as crude oil trades little changed just below the $100/bbl mark.

1:25 pm: [BRIEFING.COM] There is a big squeeze taking place in the stock market today. It's not so much a short squeeze as it is a "flat squeeze." Recall that the S&P 500 traded down to 1737.92 last Wednesday after closing 2013 at 1848.36. That was a 6.0% decline, which triggered plenty of talk about a bigger 10%+ correction looming as an increasing possibility.

The correction that has been seen, though, has been one to the upside. Since that low, the S&P 500 has surged 4.6% in a move that was fueled at first by short-covering activity, but which has taken on new energy on a flat squeeze. That is, a lot of people were sidelined with the volatility in January and the lousy performance. Many were expecting more downside so they stayed out of the market. Now that the market has come roaring back with the same buy-the-dip bravado it showed throughout 2013, there is newfound concerns about missing out on further recovery gains. That is spurring some cash to come in off the sidelines and is leading to some asset rotation out of safe-haven bonds and back into stocks.

The fact that Fed Chair Yellen didn't rock the hawkish boat with her testimony today and that the GOP-led House has agreed to bring a clean debt limit bill to a vote on Wednesday has bolstered the turnaround sentiment.

Volatility is getting clobbered as evidenced by a 6.5% drop in the CBOE Volatility Index (VIX 14.27, -0.99). Including today's drop, the VIX index is down 33% from its high on February 3.

1:00 pm: [BRIEFING.COM] At midday, the major indices hover near their highs with the Dow Jones Industrial Average (+1.0%) in the lead. The Nasdaq (+0.8%) and S&P 500 (+0.8%) follow not far behind with today's gain pushing the Nasdaq into positive territory for the year. The tech-heavy index is now higher by 0.1% in 2014.

Heading into today, participants were anticipating Janet Yellen's first testimony as the new Fed Chair but the appearance before the House Financial Services Committee has been largely uneventful.

Ms. Yellen's remarks indicated the Fed plans to remain data dependent in its decision making and that measured tapering will continue unless economic data takes a turn for the worse. When asked about the impact of the disappointing jobs reports for December and January on the Fed's reaction function, Ms. Yellen said it would be premature to alter policy based on a limited sample size.

The stock market has climbed steadily through the testimony with all ten sectors taking part in the rally. Small caps and financials sat out the early part of the advance, but they have since joined the party. The Russell 2000 (+0.9%) trades ahead of the S&P 500 while the financial sector (+0.6%) continues to trail the broader market. Outside of financials, the discretionary (+0.5%) sector is the only other laggard among cyclical groups.

The remaining four growth-sensitive sector display gains between 0.9% and 1.2% with energy and materials in the lead.

Notably, the materials sector has received significant support from gold miners. Royal Gold (RGLD 64.93, +2.39) trades up 3.7% while the broader Market Vectors Gold Miners ETF (GDX 25.46, +0.76) is higher by 3.1% after overtaking its 200-day moving average for the first time in more than a year. On a related note, gold futures sport an advance of 1.3% at $1291.50 per troy ounce.

In the past, the strength of the yellow metal has often translated into a Treasury bid, but that has not been the case today. Treasuries sit on their lows with the benchmark 10-yr yield up four basis points at 2.72%.

12:35 pm: [BRIEFING.COM] Equity indices remain near their best levels of the session with the Nasdaq (+0.7%) now trading flat for the year.

Elsewhere, the Russell 2000 (+0.8%) had a tough time keeping pace with the broader market in the morning, but the small-cap index has now closed the gap. Only the Dow Jones Industrial Average (+0.9%) is showing a larger gain at this juncture.

Within the Dow, 29 of 30 components hold gains while Cisco Systems (CSCO 22.76, -0.07) trades lower by 0.3%. On the upside, ten index members display gains larger than 1.0%.

12:00 pm: [BRIEFING.COM] Equity indices remain near their best levels of the session with the Nasdaq looking to turn positive for the year. At its current level, the tech-heavy index is flat for the year. Meanwhile, the Dow and S&P 500 hold year-to-date losses of 3.8% and 1.9%, respectively.

Eight of ten sectors continue to show year-to-date losses between 0.5% and 5.0% while health care and utilities have been able to buck the trend. The two sectors display respective year-to-date gains of 3.2% and 3.7%.

Elsewhere, Treasuries have slipped to new lows, pushing the 10-yr yield to 2.72%. The benchmark yield remains well below its 2013 closing high of 3.03%.

11:35 am: [BRIEFING.COM] The Dow (+0.8%), S&P 500 (+0.7%), and Nasdaq (+0.6%) have climbed to fresh highs while the Russell 2000 (+0.3%) remains near its recent levels.

In our last update we highlighted the underperformance of small caps and the financial sector to show that despite equity indices trading on their highs, a modest sense of caution persists. The relatively small group of laggards has gotten a bit bigger as discretionary shares (+0.5%) and transports have also slipped behind the broader market.

Strikingly, the Dow Jones Transportation Average has struggled to keep pace with the broader market since being rejected by its 50-day moving average (7270) on Friday. Today, the bellwether complex trades higher by 0.3%.

Meanwhile in Washington, Janet Yellen's testimony is now in the midst of the Q&A session, but so far, the appearance before the House panel has been largely uneventful.

11:00 am: [BRIEFING.COM] The major averages have built on their early gains with the Dow Jones (+0.5%) maintaining its lead. The Nasdaq and S&P 500 trade right behind the price-weighted index while small caps lag. The Russell 2000 is higher by just 0.3%.

The underperformance of the Russell 2000 suggests participants remain somewhat cautious even as all ten sectors trade in positive territory. Furthermore, the relative weakness of the financial sector (+0.1%) is also indicative of some caution among investors.

Over on the commodity side, crude oil future are little changed just north of the $100/bbl level while gold futures trade higher by 1.1% at $1289.00/ozt. This has given a boost to gold miners, pushing the Market Vectors Gold Miners ETF (GDX 25.50, +0.80) above its 200-day moving average for the first time in more than a year.

10:30 am: [BRIEFING.COM]

Overnight, crude oil futures rallied and rose as high as $100.49/barrel. About 10 min ahead of pit trade. crude sold off and is now -0.1% at $92.92/barrel (Mar)
Gold began the overnight session and has remained just under that high all session in overnight and early morning trade. Gold went on to sell-off this morning, but remained in positive territory. Apr gold is now +0.8% at $1284.20.
Silver sold off into negative territory and is now -0.1% at $20.09/oz (Mar contract)
Natural gas futures rallied this morning and rose as high as $4.70/MMBtu. Mar natural gas is now +2.6% at $4.70/MMBtu.
Copper hit its session low early in the overnight session copper went on to slowly climbing higher off that low. In more recent trade, copper slid lower and is now -0.4% at $3.21/lb.

10:00 am: [BRIEFING.COM] The S&P 500 trades higher by 0.3% with nine sectors sporting gains.

Just reported, December wholesale inventories rose 0.3% while the Briefing.com consensus expected an increase of 0.6%. Today's report follows last month's increase of 0.5%.

9:40 am: [BRIEFING.COM] Equity indices began the trading day on a modestly higher note with the Dow Jones Industrial Average (+0.3%) in the lead. Meanwhile, the S&P 500 holds a more modest gain of 0.1% as six of ten sectors display gains.

Technology (+0.3%) and industrials (+0.4%) paced the opening advance while financials, health care, and utilities have yet to find their way into the green.

Treasuries remain near their lowest levels of the trading day with the 10-yr yield at 2.72%.

The wholesale inventories report for December will be released at 10:00 ET. Also at 10:00 ET, Janet Yellen will begin her testimony before the House Financial Services Committee.

9:16 am: [BRIEFING.COM] S&P futures vs fair value: +0.50. Nasdaq futures vs fair value: +5.70. Equity indices are on track to begin today's session near their flat lines as futures on the S&P 500 trade less than one point above fair value.

Today, all eyes will be turned to Washington where Janet Yellen's testimony before the House Financial Services Committee will begin at 10:00 ET with a Q&A session to follow. Ms. Yellen's prepared remarks were released 45 minutes ago and indicated the Fed intends to maintain its current pace for tapering of asset purchases.

The comments saw little immediate reaction in the futures market, but the foreign exchange market was a bit more active. Dollar/yen jumped from 102.30 to a session high below the 102.70 level, but gave up the entire gain and now trades below 102.30. Many participants will be keeping an eye on the performance of the currency pair throughout the day as yen strength is likely to translate into weakness for equities.

Treasuries hover near their lows with the 10-yr yield up almost four basis points at 2.71%.

8:55 am: [BRIEFING.COM] S&P futures vs fair value: +2.40. Nasdaq futures vs fair value: +9.00. The S&P 500 futures have trimmed their gain and now trade less than three points above fair value.

Markets across Asia saw gains. Australian data was mixed as NAB Business Confidence (8 actual versus 6 previous) and Home Price Index (3.4% quarter-over-quarter actual versus 3.2% expected) impressed while home loans fell short (-1.9% month-over-month actual versus 0.5% expected). Elsewhere, India's trade deficit narrowed to $9.92 billion from $10.14 billion.

Japan's Nikkei was closed for National Founding Day.
Hong Kong's Hang Seng jumped 1.8%, seeing its biggest gain in over two months. Insurers led as Ping An and China Life both surged 5.1%.
China's Shanghai Composite gained 0.8%, finishing at its best level in six weeks. Financials posted strong gains as China Citic Bank rose the limit, 10%, and China Minsheng Bank climbed 3.5%.

Major European indices hold gains across the board with Germany's DAX (+1.3%) in the lead. There was no economic data of note reported today.

In news, Germany's Finance Minister Wolfgang Schaeuble commented on the region, saying there is no danger of deflation in Europe. Elsewhere, Spain's Finance Minister Luis de Guindos said the country's government is likely to hike its GDP forecast in April. Currently, Spain is expected to see growth of 1.0% in 2014.

In France, the CAC is higher by 0.5% with Publicis Groupe in the lead. The advertiser trades higher by 3.6%. On the downside, L'Oreal trades lower by 3.6%.
Great Britain's FTSE trades up 0.7%. Miners are showing strength while financials lag. Fresnillo and Randgold Resources are both up near 3.0% apiece while Barclays and RSA Insurance hold respective losses of 5.1% and 3.7%. Notably, Barclays reported disappointing results and announced up to 12,000 job cuts.
Germany's DAX is higher by 1.3% as 28 of its 30 components register gains. Exporters are in the lead with Daimler and BMW both up near 2.4%. On the downside, steelmaker ThyssenKrupp is lower by 1.1%.

8:33 am: [BRIEFING.COM] S&P futures vs fair value: +4.30. Nasdaq futures vs fair value: +13.20. Equity index futures continue to hold gains with the S&P 500 futures trading roughly four points above fair value. There wasn't much in terms of news overnight and nearly all major global markets climbed ahead of Janet Yellen's upcoming testimony in front of the House Financial Services Committee.

Ms. Yellen's prepared remarks were just released, and met with a muted reaction in the futures market. Most notably, the remarks indicated that the Fed intends to continue tapering quantitative easing in 'measured steps.'

Today's testimony will begin at 10:00 ET with a Q&A set to follow.

7:56 am: [BRIEFING.COM] S&P futures vs fair value: +5.90. Nasdaq futures vs fair value: +13.20. U.S. equity futures hold modest gains amid upbeat overseas action. The S&P 500 futures trade almost six points above fair value.

Reviewing overnight developments:

Asian markets ended higher. China's Shanghai Composite +0.8%, Hong Kong's Hang Seng +1.8%, and Japan's Nikkei was closed for National Founding Day.
Economic data was limited:
Australia's home loans decreased 1.9% month-over-month (0.9% forecast, 1.4% prior) while the House Price Index increased 3.4% quarter-over-quarter (3.0% expected, 2.4% previous). Separately, NAB Business Survey ticked up to 4 from 3 and NAB Business Confidence improved to 8 from 6.
India's trade deficit narrowed to $9.92 billion from $10.14 billion (deficit of $12.63 billion expected).
Among news of note:
In China, money market rates retreated even as the People's Bank of China chose not to inject liquidity into the system. Most notably, the overnight SHIBOR fell nearly 17 basis points to 4.137%.

Major European indices hold gains across the board. France's CAC +0.6%, Great Britain's FTSE +0.8%, and Germany's DAX +1.4%. Elsewhere, Italy's MIB +0.5% and Spain's IBEX +0.7%.
There was no economic data of note reported today.
In news:
Germany's Finance Minister Wolfgang Schaeuble commented on the region, saying there is no danger of deflation in Europe.
In Spain, Finance Minister Luis de Guindos said the country's government is likely to hike its GDP forecast in April. Currently, Spain is expected to see growth of 1.0% in 2014.

In U.S. corporate news:

comScore (SCOR 31.99, +4.19): +15.1% after beating earnings estimates by one cent on above-consensus revenue.
ConAgra Foods (CAG 29.35, -1.70): -5.5% after the company issued a profit warning for fiscal year 2014.
CVS Caremark (CVS 67.70, +0.76): +1.1% following its one-cent beat on in-line revenue. The company guided first quarter earnings above analyst expectations.
Rackspace Hosting (RAX 36.25, -4.11): -10.2% following its in-line report.
Sprint (S 8.15, +0.46): +6.0% after beating on earnings and revenue.

The wholesale inventories report for December will be released at 10:00 ET. Also at 10:00 ET, Fed Chair Janet Yellen will appear before the House Financial Services Committee to deliver her testimony on monetary policy. Ms. Yellen's prepared remarks will be released at 8:30 ET.

6:45 am: [BRIEFING.COM] S&P futures vs fair value: +6.00. Nasdaq futures vs fair value: +12.00.

6:44 am: [BRIEFING.COM] Nikkei...Holiday......... Hang Seng...21962.98...+383.70...+1.80%.

6:44 am: [BRIEFING.COM] FTSE...6650.14...+58.60...+0.90%. DAX...9412.19...+122.20...+1.30%.

U.S. Stocks Rally as Yellen Speech Fuels Bets on Economy

By Callie Bost and Jeff Sutherland Feb 11, 2014 4:45 PM ET

U.S. stocks rose, giving benchmark indexes the biggest four-day rally in more than a year, as comments by Federal Reserve Chairman Janet Yellen fueled bets the economy is strong enough to weather further stimulus cuts.

Cliffs Natural Resources Inc. (CLF) and Mosaic Co. increased more than 2.4 percent to pace a rally among commodity shares. Boeing Co. and Goldman Sachs Group Inc. jumped at least 2.1 percent, leading gains in the Dow Jones Industrial Average. Sprint Corp. rose 2.7 percent after fourth-quarter revenue topped estimates. CVS Caremark Corp. climbed 2.7 percent as pharmacy sales rose on new medicines and new customers.

The Standard & Poor’s 500 Index gained 1.1 percent to 1,819.75 at 4 p.m. in New York. The gauge advanced 3.9 percent over four days, and climbed above its average level over the past 50 sessions for the first time in more than two weeks. The Dow rose 192.98 points, or 1.2 percent, to 15,994.77. The Nasdaq Composite Index added 1 percent, erasing a loss for the year. About 7 billion shares changed hands on U.S. exchanges, 11 percent higher than the 30-day average.

Related: Yellen Says Recovery in Labor Market Far From Complete

“The market likes consistency and what we’ve heard this morning has been consistent with what we’ve heard for months,” Steven Rees, head of U.S. equities at JPMorgan Private Bank, which oversees $977 billion in assets, said in a phone interview. “Tapering continues, but it continues to be the result of an economic situation that’s slowly improving. The economy is still on track to have a good year.”

Yellen, 67, delivered her first public remarks as Fed policy makers pursue plans to gradually scale back the unprecedented bond-purchase program she helped put in place. Economic growth has strengthened and there is “broad improvement” in the labor market,’’ the chairman said. She repeated the Fed’s outlook for further reductions in “measured steps” and that asset purchases, known as quantitative easing, are not on a “pre-set course.”

‘Dual Mandate’

While growth has picked up, “the recovery in the labor market is far from complete,” Yellen said in remarks to the House Financial Services Committee. “I am committed to achieving both parts of our dual mandate: helping the economy return to full employment and returning inflation to 2 percent while ensuring that it does not run persistently above or below that level.”

Federal Open Market Committee officials have twice reduced the size of the monthly asset-purchase program, lowering bond buying to $65 billion in February from $85 billion last year. Three rounds of stimulus under previous Chairman Ben S. Bernanke have helped push the S&P 500 as much as 173 percent higher from a 12-year low in 2009.

‘Very Methodical’

“Yellen will be very careful to create a degree of stability,” Stephen Wood, New York-based chief market strategist at Russell Investments, said by phone. His firm oversees over $256 billion. “No genius ideas out of left field, just very methodical. The market is not only going to like the message but they’re going to like the messenger. The Fed will be accommodative and the Fed will maintain credibility the bond market and equity market will appreciate.”

Yellen said financial-market turmoil doesn’t pose a major risk to the outlook for the U.S. economy. Asset prices aren’t at “worrisome levels” even after the S&P 500 soared 30 percent last year, Yellen said, although the Fed is on the lookout for any threat of a bubble.

The S&P 500 has rallied 4.5 percent over the past six sessions, trimming its decline for the year to 1.6 percent. The benchmark gauge closed at a record on Jan. 15 and then dropped 5.8 percent through Feb. 3 on signs of slowing growth in China and a rout in emerging-market currencies.

Debt Talks

Equities extended gains amid speculation Congress was nearing an agreement on debt talks in Washington. The House of Representatives will vote tonight on suspending the U.S. debt limit, with a snowstorm forecast for the U.S. East Coast tomorrow, a Republican leadership aide said.

House Speaker John Boehner, an Ohio Republican, said Democrats will need to back the measure suspending the debt ceiling until March 15, 2015, which he said will get minimal Republican support. A suspension of the U.S. debt limit enacted by Congress in October expired Feb. 7. Treasury Secretary Jacob J. Lew said last week that borrowing authority may not last past Feb. 27.

Sixteen companies in the S&P 500 were scheduled to release earnings results today. Of the index members to have reported this season, 76 percent beat analysts’ profit estimates, while 66 percent exceeded sales forecasts, data compiled by Bloomberg show.

Earnings Season

Profit for the benchmark’s stocks rose by 8.3 percent in the fourth quarter of 2013 and revenue by 2.7 percent, according to analyst estimates compiled by Bloomberg.

The Chicago Board Options Exchange Volatility Index, the gauge of S&P 500 (SPX) options known as the VIX, dropped 4.9 percent to 14.51 today, for its fourth straight decline.

All 10 main industries in the S&P 500 advanced, with energy companies increasing 1.4 percent and raw-materials shares rising 1.2 percent. The Morgan Stanley Cyclical Index gained 1.4 percent, while the Dow Jones Transportation Average increased 1.2 percent. Boeing added 2.4 percent to $130.16 and Goldman Sachs jumped 2.1 percent to $164.39. Newmont Mining Corp. climbed 3.2 percent as gold prices surged 1.2 percent.

Phone shares rose 1.3 percent as a group. Sprint jumped 2.7 percent to $7.90 after saying fourth-quarter sales rose to $9.14 billion, beating the average analyst estimate calling for $8.99 billion in a Bloomberg survey.

Mosaic jumped 2.4 percent to $47.96. The largest U.S.-based potash producer expects record global shipments of the crop nutrient this year as customers become more confident that prices are unlikely to extend declines.

Cliffs Natural

Cliffs Natural Resources climbed 4.5 percent to $21.50. Cliffs has gained 11 percent this month after shareholder Casablanca Capital LP urged the biggest U.S. iron-ore producer to spin off its international assets, double its dividend and cut expenses. Cliffs was the second-worst performer in the S&P 500 last year, plunging 32 percent.

CVS Caremark added 2.7 percent to $68.77. The largest provider of prescription drugs in the U.S. posted fourth-quarter profit that topped analysts’ estimates. The new drugs and an expanded roster of clients for specialty pharmaceuticals, along with higher prices, boosted revenue from pharmacy services to $19.6 billion, the company said.

General Motors Co. gained 1 percent to $35.25 as sales in China rose 12 percent to a record 348,061 units last month. Buick monthly deliveries gained 16 percent to surpass 100,000 units for the first time.

InvenSense Rises

InvenSense Inc. climbed 11 percent to $21.69 after saying it has settled pending patent litigation proceedings with STMicroelectronics NV. The two companies entered into a patent cross-license agreement, resolving lawsuits over infringement.

ConAgra Foods Inc. dropped 6.3 percent to $29.08, the lowest level since November 2012. ConAgra cut its year-end profit forecast, reflecting a longer time frame to restore its private brands segment to planned levels of operating profit, as well as weaker-than-anticipated volumes in consumer foods.

Urban Outfitters Inc. (URBN) slipped 2.8 percent to $35.61. The clothing retailer reported fourth-quarter preliminary sales of $906 million, less than analysts’ estimates of $925.97 million. Urban Outfitters will release its fourth-quarter earnings on March 10.

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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