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 Post subject: February 12th Friday Trade Results - Profit $1,290.00
PostPosted: Thu Feb 13, 2014 12:30 am 
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Joined: Sat Jan 10, 2009 2:06 pm
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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 @ $540.00 dollars or +5.40 points, Emini ES ($ES_F) futures @ $750.00 dollars or +15.00 points, Light Crude Oil CL ($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 @ $1,290.00 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=1720

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 Hit Pause After The Yellen Rally

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

NEW YORK (CNNMoney)
Stocks ended mixed Wednesday, as investors took a breather following a four-day winning streak.

The S&P 500 finished just below the breakeven line, while the Dow also closed in the red, as a slump in shares of Procter & Gamble (PG, Fortune 500) weighed on the blue chip index. The company cut its sales and earnings guidance for the year due to the devaluation of emerging market currencies.

The Nasdaq managed a fifth up day, but the gain was slim.

The modest moves follow Tuesday's huge rally, sparked by the realization that the Federal Reserve's monetary policy is unlikely to change much under new Fed chair Janet Yellen.

In testimony before the House, Yellen said the Fed will continue reducing its stimulus as the economy gradually improves. She added that recent emerging market turmoil posed no real risk to the economic outlook for the United States.

"Janet Yellen managed both to make it clear that the Fed intends to stick to its current path of gradually slowing the pace of bond-buying, and to sound suitably dovish about the outlook for wages, inflation, and monetary policy overall," wrote Kit Juckes of Societe Generale, in a report.

Concerns about emerging markets have also begin to fade a bit thanks to surprisingly robust January trade data from China.

Progress towards a debt ceiling deal in Washington helped lift sentiment as well. The House voted late Tuesday to raise the limit on U.S. borrowing for a year, and the Senate also approved the measure Wednesday.

Related: Fear & Greed Index no longer feeling extreme fear

On the corporate front, Cisco (CSCO, Fortune 500) was in focus as investors anticipated the company's quarterly earnings. After the bell, Cisco reported profits and sales that were slightly higher than Wall Street's expectations, and also raised its quarterly dividend.

Leading up to the earnings release, Cisco shares finished the day slightly higher after being the only Dow component to end in the red Tuesday, despite the market's broad rally. The stock was flat in early trading after hours. Shares are likely to move more dramatically once CEO John Chambers offers guidance during the company's conference call.

Some traders on StockTwits warned that Wednesday's gains may be unwarranted, as the company was expected to report a drop in earnings and revenue.

"$CSCO don't fall for pre-ER hype," said Eldoctoro. "Go to sidelines."

But StockTwits user sh34 thought that any bad news was already priced into the stock.

"$CSCO Earnings expectations are so low that any good news could be a pop...Bullish," he said.

In other earnings news after the bell, Whole Foods (WFM, Fortune 500) shares fell after the company reported earnings and sales that missed forecasts and lowered its outlook.

Amazon (AMZN, Fortune 500) shares ended sharply lower after UBS downgraded the stock to "neutral" from "buy." The online retailer also announced that it would hire 2,500 full-time workers at its fulfillment centers, in addition to the 20,000 that it hired last year. Amazon was the second-worst performer in CNNMoney's Tech 30 index.

The reaction among traders was mixed. Some predicted that Amazon, currently trading around $350, is headed even lower.

"$AMZN Blood is on the floor and everyone is smelling it," said Sammm1777. "Next stop $325?? Bearish."

But others wondered if the pullback makes Amazon a good buy.

"I've been wanting to own $AMZN for quite some time and am looking for a good entrance point," said websShawn. "Should I get aboard now or wait for lower lows?"

Trader commonsensegenius seemed to think so: "Big loss today $AMZN, great company, fat stock. The more it dives the longer it'll run, probably, so accumulate away."

Social networking site LinkedIn (LNKD) fell 5% and was the worst performer in the Tech 30 index. The stock has slumped since announcing earnings and guidance last week that underwhelmed investors.

Shares of ING Group (IDG) jumped after the Dutch bank reported significant quarterly increases in earnings. French bank Societe Generale (SCGLF) also reported a quarterly jump in profit.

S&P 500 companies DaVita HealthCare Partners (DVA, Fortune 500) and retailer Fossil (FOSL) were also big gainers after reporting quarterly earnings that beat expectations.

European markets finished the day higher, following gains on Asian markets. The Shanghai Composite added 0.3%, while Hong Kong's Hang Seng advanced 1.5% and the Nikkei rose 0.6%.

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4:15 pm: [BRIEFING.COM] Equity indices took a bit of a breather on Wednesday after the S&P 500 surged nearly 4.5% in the six sessions since February 3. The benchmark index shed less than a point while the Dow Jones Industrial Average slipped 0.2%.

Overall, the session was very quiet as the key averages respected narrow ranges. The S&P 500 spent the bulk of the trading day near its flat line while the Nasdaq (+0.2%) outperformed.

Similar to the major averages, most individual sectors never deviated too far from their unchanged levels. The largest S&P 500 sector, technology (+0.3%), finished in the lead thanks to chipmakers. Intel (INTC 24.55, +0.08) added 0.3% while the broader PHLX Semiconductor Index rose 0.9%.

Outside of technology, consumer discretionary (+0.1%) and industrials (+0.2%) were the only other advancers among cyclical groups. Defense contractors outperformed (PHLX Defense Index +0.5%) while Deere (DE 86.90, -0.56) fell 0.6% despite beating on earnings and revenue.

Also of note, two of yesterday's leaders-energy (-0.4%) and materials (-0.3%)-finished among today's laggards. However, the pair still fared a bit better than the consumer staples sector, which lost 0.5% as tobacco names lagged after Lorillard (LO 47.47, -2.48) reported disappointing earnings.

Other countercyclical groups were little changed with telecom services (+0.3%) ending modestly higher while health care (-0.1%) and utilities (-0.1%) finished in the red.

Treasuries posted their third day of losses as the 10-yr yield rose three basis points to 2.76%. Interestingly, the retreat in one safe-haven asset was accompanied by an increase in another. Gold futures saw their fourth day of gains, climbing 0.4% to $1294.90/ozt.

Today's participation was well below average as less than 630 million shares changed hands at the NYSE.

Economic data was limited to just two reports:
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InPlay from Briefing.com Briefing.com

The weekly MBA Mortgage Index slipped 2.0% to follow last week's uptick of 0.4%.
January Treasury Budget showed a deficit of $10.40 billion, which followed the prior month's surplus of $2.90 billion. The Briefing.com consensus expected the deficit to hit $10.00 billion.

Among overseas news of note, Italian Prime Minster Enrico Letta held a press conference amid increasing calls for his resignation, making way for the leader of the Democratic Party, Matteo Renzi. In his remarks, Mr. Letta asked for 'clarity,' saying, 'He who wants to replace me must be clear about his intentions.' Even though the political future of Italy remains uncertain, Italian stocks appeared unconcerned with the situation as the MIB gained 1.3%.

Tomorrow, weekly initial claims and January retail sales will be reported at 8:30 ET while the December Business Inventories report will cross the wires at 10:00 ET. Also of note, Fed Chair Janet Yellen was scheduled to appear before the Senate Banking Committee for the second part of the semiannual testimony on monetary policy, but the hearing has been postponed due to weather.

Nasdaq Composite +0.6% YTD
S&P 500 -1.6% YTD
Russell 2000 -2.5% YTD
Dow Jones Industrial Average -3.7% YTD

3:30 pm: [BRIEFING.COM]

Precious metals traded higher despite a slightly stronger dollar index. Apr gold rose for a fourth consecutive session, advancing to a three month session high of $1296.40 per ounce in early afternoon pit trade. It settled with a 0.4% gain at $1294.90 per ounce.
Mar silver rose to a session high of $20.39 per ounce in morning action. It eventually settled at $20.33 per ounce, booking a gain of 0.9%.
Mar crude oil traded in positive territory but pulled back from its session high of $101.38 per barrel following inventory data that showed a build of 3.267 mln barrels for the week ending Feb 7. Consensus called for a smaller build of 2.6-3.0 mln barrels. The energy component trended lower for the remainder of the session and settled with a 0.4% gain at $100.38 per barrel.
Mar natural gas rose to a session high of $5.01 per MMBtu in morning action after trading as low as $4.78 per MMBtu earlier in the session. However, prices reversed in the last hour of floor trade, leaving natural gas to settle just 0.4% higher at $4.83 per MMBtu.

3:00 pm: [BRIEFING.COM] The S&P 500 trades lower by 0.2% with one hour remaining in today's session. The benchmark index enters the last hour of action after spending the vast majority of the trading day near its flat line. The index rallied at the open, but notched a session high during the initial 30 minutes. The S&P 500 then slid into the red before regaining its flat line. The last hour saw the S&P 500 return to its low in the 1815 area while the Nasdaq (+0.1%) continues to outperform.

The tech-heavy Nasdaq Composite remains supported by chipmakers and biotechnology. The PHLX Semiconductor Index is higher by 0.8% while iShares Nasdaq Biotechnology ETF (IBB 256.13, +1.46) trades up 0.6%.

2:35 pm: [BRIEFING.COM] Recent action saw the S&P 500 slip back below its flat line with the move reportedly taking place in reaction to Derek Jeter's announcement that 2014 will be his last season in Major League Baseball.

Of course, we jest when it comes to the attributing the S&P 500's inability to break away from its flat line to the announcement, but Mr. Jeter did state his intentions on his Facebook (FB 64.41, -0.44) page not long ago.

Meanwhile, Facebook is among several momentum names that have fallen behind the broader market today. The stock trades lower by 0.7% while other widely-followed names like Tesla (TSLA 195.10, -1.52), Netflix (429.15, -4.84), and LinkedIn (LNKD 193.53, -9.27) display losses between 0.7% and 4.5%.

2:00 pm: [BRIEFING.COM] Quiet afternoon action continues with the S&P 500 trading just north of its flat line.

Just reported, the January Treasury Budget showed a deficit of $10.40 billion, which followed the prior month's surplus of $2.90 billion. The Briefing.com consensus expected the deficit to hit $10.00 billion.

1:30 pm: [BRIEFING.COM] "Continuity" was the buzz word of the day yesterday as Janet Yellen conducted her economic and monetary policy testimony before the House Financial Services Committee. Today the buzz word is "consolidation," as the market has been somewhat slow to go about its business today after rallying nearly 5.0% between its low last Wednesday and yesterday's close.

The Nasdaq, though, remains a relative strength leader, helped in part by Cisco (CSCO 22.82, +0.11), which will report its quarterly results after the close today. According to Capital IQ, Cisco is expected to post a profit of $0.46 per share, versus $0.51 per share a year ago, on revenue of $11.02 bln.

In other developments, the weather has turned downright nasty again in the South, which is getting a helping of winter conditions seen regularly north of the Mason-Dixon line. The Mid-Atlantic and Northeast, however, are due to get slammed tomorrow by winter storm Pax, which is packing a snowy and icy punch that we suspect will spark a few buzz words in those regions not suitable for printing. That storm, however, could mean that trading conditions are relatively thin on Thursday.

1:00 pm: [BRIEFING.COM] At midday, the major indices trade near their respective flat lines. The Dow Jones Industrial Average (-0.2%) lags while the Russell 2000 (+0.3%) outperforms. For its part, the S&P 500 has been anchored to its unchanged level for the past hour.

Equities began the day on a quiet note with the S&P 500 making a brief run at the 1830 level. However, the opening rally stalled 30 minutes into the session when the index notched a high just north of 1826. The benchmark average then slipped into the red, but has been able to shake off that loss.

Only three sectors trade in the green at this juncture with technology (+0.4%) in the lead. Interestingly, the sector outperforms even as two of its top components, Apple (AAPL 535.54, -0.43) and Google (GOOG 1184.60, -5.58) hover in the red. Chipmakers have picked up some of the slack as the PHLX Semiconductor Index trades higher by 0.7%.

Outside of technology, industrials (+0.1%) and telecom services (+0.1%) are the only other groups trading in the green.

Meanwhile, six of seven declining sectors display losses of no more than 0.2% while consumer staples (-0.6%) lag notably. Tobacco names trade lower across the board following disappointing quarterly results from Lorillard (LO 46.61, -3.34).

For the second day in a row, gold and Treasuries are heading in opposite directions. Gold futures trade higher by 0.4% at $1295.00/ozt while the 10-yr note is lower by 11 ticks with its yield up four basis points at 2.77%. Although the reason for this divergence remains a bit of a mystery to us, it is a bit unusual to see this dynamic playing out in two safe-haven assets.

Among overseas news of note, Italian Prime Minster Enrico Letta recently held a press conference amid increasing calls for his resignation, making way for the leader of the Democratic Party, Matteo Renzi.

In his remarks, Mr. Letta asked for 'clarity,' saying 'He who wants to replace me must be clear about his intentions.' Even though the political future of Italy remains uncertain, Italian stocks appeared unconcerned with the situation as the MIB gained 1.3%.

12:30 pm: [BRIEFING.COM] Equity indices remain near their flat lines as the quiet session continues. Despite the mixed performance among the major averages, participants have not shown much demand for downside protection. The CBOE Volatility Index (VIX 14.45, -0.06) is lower by 0.4%, which puts it on track for its fifth consecutive loss.

Elsewhere, Treasuries are also not seeing a safety bid as the 10-yr note trades lower by 10 ticks with its yield up three basis points at 2.76%. Strikingly, gold futures trade at their best levels of the session (+0.4% at $1295.40/ozt).

12:00 pm: [BRIEFING.COM] The major averages have continued their retreat, dragging the Nasdaq and Russell 2000 into the red. The two indices hover near their flat lines while the Dow Jones Industrial Average (-0.4%) continues to lag.

The price-weighted index underperforms as 18 of its 30 components trade in the red. Procter & Gamble (PG 77.23, -1.61) is the weakest index member, trading lower by 2.0%. Furthermore, the Dow is also being pressured by its third-largest component. Goldman Sachs (GS 163.31, -1.08) trades down 0.7% while the broader financial sector holds a loss of 0.2%.

11:30 am: [BRIEFING.COM] Equity indices continue to trade in mixed fashion with the Nasdaq (+0.1%) and Russell 2000 (+0.1%) holding modest gains while the Dow Jones Industrial Average (-0.3%) and S&P 500 (-0.1%) remain in the red.

Since our last update, the consumer discretionary (-0.1%) sector has slipped into negative territory, leaving industrials (+0.1%), technology (+0.2%), and telecom services (+0.1%) as the only three advancers. On the downside, the consumer staples sector (-0.5%) remains at the bottom of the leaderboard while energy (-0.3%) and materials (-0.2%) follow not too far behind.

Elsewhere, Treasuries remain on their lows with the benchmark 10-yr yield up four basis points at 2.76%. Similar to yesterday, weakness in Treasuries is being accompanied by strength among gold futures, which is a bit of an unusual dynamic. Currently, gold futures trade higher by 0.2% at $1292.30 per troy ounce.

11:00 am: [BRIEFING.COM] The major averages have retreated from their early highs, pushing the Dow Jones (-0.2%) and the S&P 500 into the red.

Individual sectors are currently split with four groups trading higher while six display losses. The consumer staples sector (-0.5%) is the weakest performer as tobacco names weigh after Lorillard (LO 47.18, -2.78) reported disappointing quarterly results. Outside of consumer staples, losses among other declining sectors have been limited to no more than 0.2% so far.

On the upside, the largest S&P 500 sector, technology (+0.3%), leads despite spotty performance among top-weighted components. Apple (AAPL 537.23, +1.27) is higher by 0.2% while Facebook (FB 64.43, -0.42) and Google (GOOG 1182.78, -7.40) are both down near 0.6%.

10:35 am: [BRIEFING.COM]

Crude oil and copper futures have been in positive territory all session, so far (overnight/morning).
Natural gas futures sold off this morning, but have since recovered and are now +1% at $4.88/MMBtu
Crude oil futures rose as high as $101.36/barrel ahead of the weekly EIA inventory data and was about +1.3% at $101.36/barrel
Following the inventory data, crude oil showed a muted reaction, but is now selling off a little. Mar crude oil is now +1.1% at $101.08/barrel.
Gold and silver futures rallied in recent action. Apr gold is now +0.3% at $1293.70/oz and Mar silver is +0.9% at $20.33/oz.

10:00 am: [BRIEFING.COM] The S&P 500 has extended its gain to 0.4% while the Nasdaq (+0.5%) outperforms.

Yesterday's leaders-energy (+0.3%) and materials (+0.3%)-are among the early laggards while the remaining four cyclical sectors display gains close to 0.4% apiece.

On the countercyclical side, health care (+0.5%) is continuing its recent strength with help from biotechnology. The iShares Nasdaq Biotechnology ETF (IBB 257.34, +2.67) is higher by 1.1%. Including today's gains, the health care sector had added 4.2% this year while the biotech ETF is up 13.5% year-to-date.

9:50 am: [BRIEFING.COM] The major averages climbed out of the gate with small caps leading the charge. The Russell 2000 trades higher by 0.6% while the S&P 500 sports a slimmer gain of 0.3% with seven of ten sectors trading in the green.

Industrials (+0.4%) and technology (+0.4%) are pacing the opening gains while financials (+0.3%) and health care (+0.3%) follow not far behind.

Treasuries are continuing their retreat from yesterday and the benchmark 10-yr yield is higher by three basis points at 2.75%.

9:16 am: [BRIEFING.COM] S&P futures vs fair value: +1.50. Nasdaq futures vs fair value: +4.70. Equities are on track for a quiet start to the session as the S&P 500 futures trade less than two points above fair value. Index futures climbed overnight, but reversed course shortly after the European session kicked off. The retreat could be attributed to concerns about the future of the Italian government as PM Enrico Letta faces mounting pressure to resign, but it should be noted Italian equities sport solid gains while the country's benchmark 10-yr yield is unchanged at 3.69%.

Mr. Letta is expected to address the media sometime after 11:00 ET, which should provide a bit more clarity regarding Italy's political future.

Back in the U.S., participants received a fair dose of quarterly earnings with Deere (DE 88.70, +1.24) headlining today's list. The machinery manufacturer holds a pre-market gain of 1.4% after beating earnings estimates on above-consensus revenue.

In terms of economic data, pre-market news was limited to the weekly MBA Mortgage Index, which fell 2.0% to follow last week's uptick of 0.4%. The January Treasury Budget is the last data point on today's schedule, and is expected to cross the wires at 14:00 ET.

8:56 am: [BRIEFING.COM] S&P futures vs fair value: -1.00. Nasdaq futures vs fair value: -1.00. The S&P 500 futures trade one point below fair value.

Markets rallied across Asia, supported by yesterday's strong gains on Wall Street. Participants received a full slate of economic news. China's trade surplus expanded to $31.86 billion from $25.60 billion ($23.65 billion forecast) as imports grew 10.0% (3.0% expected, 8.3% prior) and exports increased 10.6% (2.0% consensus, 4.3% previous). Japan's Core Machinery Orders plunged 15.7% month-over-month (-4.1% expected, 9.3% previous) while the year-over-year reading increased 6.7% (17.6% consensus, 16.6% prior). Separately, Tertiary Industry Activity Index slipped 0.4% month-over-month (-0.2% expected, 0.8% previous) and M2 money stock rose 4.4% year-over-year (4.2% consensus, 4.3% prior). India's industrial production fell 0.6% year-over-year (-1.0% expected, -2.1% previous) while CPI decreased to 8.8% from 9.9% (9.4% expected). Elsewhere, Australia's Westpac Consumer Sentiment fell 3.0% (-1.7% last) and New Zealand's electronic card retail sales increased 6.1% year-over-year (5.5% previous).

Among news of note, Nikkei news quoted Bank of Japan member Takahide Kiuchi, who said additional easing would lead to costs outweighing the benefits. Separately, BoJ Governor Haruhiko Kuroda said the central bank needs to take action if inflation appears to be slowing.

Japan's Nikkei climbed 0.6%, rising to its best level in one and a half weeks. Nissan Motor added 3.6% as its earnings topped estimates. Exporters benefitted from the weak yen with Panasonic adding 1.7%.
Hong Kong's Hang Seng rallied 1.5% to a three-week high. Property developers posted strong gains after a Shanghai Securities News report suggested land sales revenues in major Chinese cities were up +140% year-over-year. China Overseas Land and China Resources Land surged 7.5% and 4.7%, respectively.
China's Shanghai Composite added 0.3% and recaptured its 50-day moving average. Financials lagged with Shanghai Pudong Development Bank shedding 0.4%.

European indices trade higher with Italy's MIB (+1.0%) in the lead. Interestingly, Italian equities display solid gains despite Prime Minister Enrico Letta facing increasing pressure to resign, making way for the leader of the Democratic Party, Matteo Renzi. Mr. Letta is expected to hold a press conference after 11:00 ET. Elsewhere, Bank of England Governor Mark Carney delivered the latest inflation report and said the central bank sees the potential to keep its key interest rate at 0.50% even after the 7.0% unemployment threshold is hit.

Participants received several economic data points. Eurozone Industrial production fell 0.7% month-over-month (-0.3% consensus, 1.6% prior) while the year-over-year reading increased 0.5% (1.8% expected, 2.8% previous). Great Britain's CB Leading Index slipped 0.1% month-over-month (0.5% last). French current account deficit narrowed to EUR1.20 billion from EUR1.90 billion (EUR1.60 billion prior).

Great Britain's FTSE is higher by 0.1% as miners outperform. Antofagasta, Glencore Xstrata, and Rio Tinto are up between 1.7% and 2.2%. Energy names lag with Royal Dutch Shell and Tullow Oil down 1.4% and 4.9%, respectively.
In France, the CAC trades up 0.5% with financials in the lead. BNP Paribas, Credit Agricole, and Societe Generale display gains between 1.7% and 5.4%. Publicis Groupe is the weakest performer, down 1.8%.
Germany's DAX holds an advance of 0.7%. Fresenius Medical Care leads with a gain of 2.1% while utilities E.ON and RWE lag. The two hold respective losses of 0.2% and 0.7%.
Italy's MIB is higher by 1.0% amid broad strength. Banca Popolare di Milano Scarl and Unicredit are both up near 2.0%.

8:28 am: [BRIEFING.COM] S&P futures vs fair value: -3.00. Nasdaq futures vs fair value: -4.00. U.S. equity futures hover near their lows after surrendering their modest overnight gains. Futures climbed through the start of the European session, but reversed course shortly thereafter.

Participants received a fair dose of quarterly reports since yesterday's close, but none are holding much sway over the broader market. Most notably, Deere (DE 89.40, +1.94) holds a pre-market gain of 2.2% after beating on earnings and revenue.

With regard to economic data, pre-market news was limited to the weekly MBA Mortgage Index, which fell 2.0% to follow last week's uptick of 0.4%. The January Treasury Budget is the last data point on today's schedule, and is expected to cross the wires at 14:00 ET.

8:00 am: [BRIEFING.COM] S&P futures vs fair value: -1.80. Nasdaq futures vs fair value: -3.30. U.S. equity futures trade little changed amid upbeat overseas action. The S&P 500 futures hover two points below fair value.

Reviewing overnight developments:

Asian markets ended higher. China's Shanghai Composite +0.3%, Japan's Nikkei +0.6%, and Hong Kong's Hang Seng +1.5%.
In economic data:
China's trade surplus expanded to $31.86 billion from $25.60 billion ($23.65 billion forecast) as imports grew 10.0% (3.0% expected, 8.3% prior) and exports increased 10.6% (2.0% consensus, 4.3% previous).
Japan's Core Machinery Orders plunged 15.7% month-over-month (-4.1% expected, 9.3% previous) while the year-over-year reading increased 6.7% (17.6% consensus, 16.6% prior). Separately, Tertiary Industry Activity Index slipped 0.4% month-over-month (-0.2% expected, 0.8% previous) and M2 money stock rose 4.4% year-over-year (4.2% consensus, 4.3% prior).
India's industrial production fell 0.6% year-over-year (-1.0% expected, -2.1% previous) while CPI decreased to 8.8% from 9.9% (9.4% expected).
Australia's Westpac Consumer Sentiment fell 3.0% (-1.7% last).
New Zealand's electronic card retail sales increased 6.1% year-over-year (5.5% previous).
Among news of note:
Nikkei news quoted Bank of Japan member Takahide Kiuchi, who said additional easing would lead to costs outweighing the benefits. Separately, BoJ Governor Haruhiko Kuroda said the central bank needs to take action if inflation appears to be slowing.

Core European indices sport gains. Great Britain's FTSE +0.1%, France's CAC +0.4%, and Germany's DAX +0.8%. Elsewhere, Italy's MIB +0.8% and Spain's IBEX -0.3%.
Participants received several economic data points:
Eurozone Industrial production fell 0.7% month-over-month (-0.3% consensus, 1.6% prior) while the year-over-year reading increased 0.5% (1.8% expected, 2.8% previous).
Great Britain's CB Leading Index slipped 0.1% month-over-month (0.5% last).
French current account deficit narrowed to EUR1.20 billion from EUR1.90 billion (EUR1.60 billion prior).
In news:
In Italy, Prime Minister Enrico Letta is under pressure to resign, making way for Matteo Renzi who leads the Democratic Party. Mr. Letta is expected to hold a press conference later today.
Bank of England Governor Mark Carney delivered the latest inflation report and said the central bank sees the potential to keep its key interest rate at 0.50% even after the 7.0% unemployment threshold is hit.

In U.S. corporate news:

Amazon.com (AMZN 354.98, -6.81): -1.9% after UBS downgraded the stock to 'Neutral' from 'Buy.'
DaVita (DVA 68.50, +4.17): +6.5% after reporting in-line results.
Deere (DE 89.50, +2.04): +2.3% after in reaction to its earnings beat on above-consensus revenue.
Fossil (FOSL 121.10, +4.14): +3.5% after beating the Capital IQ consensus estimate by $0.25. The company issued mixed guidance, expecting below-consensus Q1 earnings on better-than-expected revenue.
Lorillard (LO 49.01, -0.94): -1.9% after missing on earnings and revenue.
TripAdvisor (TRIP 87.75, +3.55): +4.2% following its in-line earnings on below-consensus revenue.

The weekly MBA Mortgage Index slipped 2.0% to follow last week's uptick of 0.4%.

The January Treasury budget will be released at 14:00 ET.

6:34 am: [BRIEFING.COM] S&P futures vs fair value: -1.00. Nasdaq futures vs fair value: -1.00.

6:34 am: [BRIEFING.COM] Nikkei...14800.06...+81.70...+0.60%. Hang Seng...22285.79...+322.80...+1.50%.

6:34 am: [BRIEFING.COM] FTSE...6658.34...+13.70...+0.20%. DAX...9563.74...+85.00...+0.90%.

Dollar Near One-Month Low Before U.S. Retail Sales; Aussie Drops

By Kevin Buckland and Kristine Aquino Feb 12, 2014 11:13 PM ET

The dollar headed for its biggest drop in more than a week versus the yen before a report today forecast to show U.S. retail sales stalled.

Australia’s dollar fell as much as 1.1 percent versus the greenback after the government said showed unemployment jumped to a 10-year high. The yen strengthened versus its most-traded counterparts as declines in Asian equities boosted demand for the perceived safety of Japan’s currency. Federal Reserve Chair Janet Yellen’s testimony to the Senate Banking Committee, scheduled for today, will be postponed because of a storm forecast to dump heavy snow on the U.S. East Coast.

“The bad weather is affecting the U.S. data, it’s affecting sentiment, and it’ll put pressure on the dollar,” said Kazuo Shirai, a trader at Union Bank NA in Los Angeles. “The trend for dollar buying we’ve seen up to now seems to have hit a wall.”

The dollar fell 0.4 percent to 102.13 yen as of 1:08 p.m. in Tokyo from yesterday. It slipped 0.2 percent to $1.3614 per euro. The shared currency weakened 0.2 percent to 139.04 yen. The Bloomberg Dollar Spot Index, which monitors the greenback against 10 major counterparts, lost 0.1 percent to 1,023.40 after touching 1,021.55 in New York, the lowest since Jan. 13.

U.S. retail sales stagnated in January, according to the median estimate of economists surveyed by Bloomberg News before the U.S. Commerce Department reports the data today. That follows a 0.2 percent gain the month before, when winter clothing sales increased while auto demand dropped owing to the harsh weather.

Retail Stagnation

“Unfortunately for the USD, a relatively flat outcome for sales will provide little rationale to buy the currency,” Mitul Kotecha, the Hong Kong-based global head of foreign-exchange strategy at Credit Agricole Corporate & Investment Bank SA, wrote in a research note today. “In the near term, this implies little potential for a USD rebound.”

The latest storm has left thousands without electricity across the U.S. South, snarled ground and air traffic from Atlanta to New York, and spurred weather alerts from Louisiana to Maine. Washington may get 8 inches (20 centimeters) of snow, according to the National Weather Service.

Yellen told the House Financial Services Committee on Feb. 11 that policy makers would continue to scale back stimulus in “measured steps,” and repeated the Fed’s statement that asset purchases aren’t on a “pre-set course.” The recovery in the U.S. labor market is “far from complete,” she said.

The Federal Open Market Committee said in January it will cut its monthly bond purchases by $10 billion to $65 billion, citing labor-market indicators that “were mixed but on balance showed further improvement.”

Aussie Jobs

In Australia, employment unexpectedly shrank by 3,700 last month. Economists polled by Bloomberg forecast a 15,000 gain. The jobless rate rose to 6 percent, the highest since July 2003, according to a Bloomberg economist poll.

“The Australian labor market has been the weak spot in the economy in the past year and this has not changed today,” said Joseph Capurso, a Sydney-based strategist at Commonwealth Bank of Australia, the nation’s biggest lender. “The Aussie is likely to continue drifting lower today.”

Australia’s currency fell 0.9 percent to 89.45 U.S. cents, extending a 0.1 percent decline from yesterday, when it touched 90.67, the highest since Jan. 13.

The yen advanced as a slide in regional stocks boosted demand for haven assets.

The MSCI Asia Pacific Index of shares dropped 0.7 percent. The Topix index in Tokyo retreated 1.4 percent after climbing 4.9 percent over the previous three days.

“When markets are not doing overly well, dollar-yen will drift lower,” said Sacha Tihanyi, a senior currency strategist at Scotiabank in Hong Kong. “To get dollar-yen higher, we’ll probably need to see a big leg up in U.S. yields and the greenback.”

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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