TheStrategyLab.com Price Action Trading Support Forum

Forum for price action traders that want to learn WRB Analysis basic tutorial chapters 1, 2 and 3 prior to purchasing our advance trade methods. Hashtags: #wrbanalysis #wrbzone #wrbhiddengap #priceaction #trading
It is currently Thu Mar 28, 2024 6:30 am

All times are UTC - 5 hours [ DST ]




Post new topic Reply to topic  [ 1 post ] 
Author Message
 Post subject: March 25th Tuesday Trade Results - Profit $2040.00
PostPosted: Wed Mar 26, 2014 12:34 am 
Offline
Site Admin

Joined: Sat Jan 10, 2009 2:06 pm
Posts: 4335
Location: Canada
Image

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)

Attachment:
032514-wrbtrader-Price-Action-Trading-PnL-Blotter-Profit+2040.00.png
032514-wrbtrader-Price-Action-Trading-PnL-Blotter-Profit+2040.00.png [ 176.67 KiB | Viewed 349 times ]

click on the above image to view today's performance verification

Price Action Trade Performance for Today: Emini TF ($TF_F) futures @ $2,040.00 dollars or +20.40 points, Emini ES ($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 @ $2,040.00 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=128&t=1752

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=234&t=2257

-----------------------------

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.

Optimism Is Back On Wall Street

Attachment:
032514-Key-Price-Action-Markets.png
032514-Key-Price-Action-Markets.png [ 928.47 KiB | Viewed 342 times ]

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

NEW YORK (CNNMoney)
Confidence returned to Wall Street today. Investors shook off two days of losses as a new report showed consumer confidence reached its highest level in six years. Even some mediocre housing data didn't damper the markets much.

The Dow, S&P and Nasdaq were all solidly in the plus column with some "old tech" names like Cisco (CSCO, Fortune 500) and IBM (IBM, Fortune 500) leading the charge. Because the Dow Jones Industrial Average is a price-weighted index, IBM' (IBM, Fortune 500)s near 7 point rally to just under $200 a share was responsible for a lion's share of the Dow's 91 point gain.

Netflix (NFLX) remains one of the big talking points as it has been anything but picture perfect this week. It fell over 2% Tuesday after more than a 6% rout yesterday making some StockTwits traders like palmerwise upset, "$NFLX This is a ridiculous over reaction!"

But others like RedSoleTrading weren't buying that, "$NFLX - why anyone would buy here boggles my mind. Just give me your money!"

One commenter, bcrowe, even went so far as to suggest the popular movie streaming company could become a takeover target: "$NFLX to drop to around 300ish then $AAPL buy out? Imagine. Either way, $NFLX needs to go on a diet for the next couple weeks."

In economic news, U.S. consumer confidence hit a 6-year high, climbing to 82.3 in March from an upwardly revised 78.3 in February. That said, new home sales dropped 3.3% in February, and U.S. home prices slipped 0.1% in January from the frigid winter. This was the third month that the S&P/Case-Shiller 20-city composite index declined, although year over year, the index is up 13.2%.

In corporate news, Walgreen Co. (WAG, Fortune 500) shares gained even though the drugstore chain said that it will close 76 stores. Walgreen's also said earnings fell slightly from a year ago, but the company had positive things to say about its joint venture with European drugstore chain Alliance Boots. Hunters4meat seemed perplexed, "$WAG I'm confused, it blew top and bottom numbers and guidance not all that great, did I miss something? It's going up? Irrational."

dividenddotcom tried to clarify, "$WAG missed EPS estimates, but solid revenues and a bullish outlook has the stock popping 4% on the day."

Shares of Walt Disney (DIS, Fortune 500) were higher after it said it would buy Maker Studios, a leading producer and distributor of videos on YouTube. Its vast array of online channels total 5.5 billion YouTube views per month, according to Maker, making it one of the most successful online video companies of its kind.

In addition to "old tech" stocks, another standout today is Sonic (SONC), which is up after the drive-in restaurant operator reported earnings that beat Wall Street's expectations.

On the down side, Carnival (CCL) shares fell after the cruise company reported a first quarter loss and had a disappointing outlook for the second quarter.

European markets finished higher. Asian stock markets mostly ended lower, though the moves down were modest.

Image



4:10 pm: [BRIEFING.COM] The major indices strung together some modest gains on Tuesday on the back of some strong showings from blue-chip issues and a volatile rebound effort by the beaten-down biotechnology stocks.

The move followed on the heels of a strong outing by major European bourses, which shot up largely in response to some remarks from Bundesbank head, Jens Weidmann, who suggested it was not out of the realm of possibility for the ECB to implement a QE-type program to fight deflation. It would be remiss not to add that ECB President Draghi spoke later in the day and said the ECB is not currently seeing any evidence of deflation.

Mr. Draghi's viewpoint helped the euro recover a good portion of overnight losses, but his view did not lead to a major trend reversal in the US stock market.

There were indeed bouts of trading volatility in today's session. The iShares Nasdaq Biotechnology ETF (IBB 239.44, +0.21) was the standard bearer in that respect as it saw a 4.0% range between its intraday high and intraday low. The ETF, which had dropped as much as 11% over the preceding four sessions, gained just 0.1% on Tuesday. The roller-coaster action in that closely-watched and widely-chased sector kept a lid on things for the Nasdaq Composite, which trailed the blue-chip laden Dow Jones Industrial Average and S&P 500.

Strikingly, it was Big Blue itself -- IBM (IBM 195.04, +6.79) -- that carried the day for the broader market. It surged 3.6% on a few announcements detailing new business activity, yet we suspect it was also accorded a low-beta premium in an environment of late that has featured some material hiccups for high-beta momentum stocks. IBM led all Dow components; however, the blue chip bias was also evident in fellow components like Johnson & Johnson (JNJ 97.38, +2.18), Caterpillar (CAT 98.59, +1.74), Merck (MRK 55.19, +1.41), 3M (MMM 134.06, +1.64), and United Technologies (UTX 115.20, +1.45).

Today's gains were broad-based in nature. Nine out of ten S&P 500 sectors closed the day with a gain. The lone loser was the consumer discretionary sector (-0.6%), which was held back by a relatively weak showing from the apparel and media stocks. Some disappointing second quarter and full-year earnings guidance from Carnival Corp. (CCL 38.02, -1.98) also weighed on the sector.

Notwithstanding the broad-based gains, the financial sector (+0.01%) was a notable underperformer in Tuesday's trading as JPMorgan Chase (JPM 60.93, -0.14), Goldman Sachs (GS 163.25, -2.47), Bank of America (BAC 17.21, -0.16), and Morgan Stanley (MS 31.59, -0.85) all traded lower. Leadership from the industrial (+0.9%), energy (+0.8%), and health care (0.8%) sectors, though, provided an influential offset.

There was a round of economic data today that revolved largely around the housing sector:

The January Housing Price Index from the FHFA increased 0.5%, which followed a revised uptick of 0.7% observed during the prior month. The Case-Shiller 20-city Home Price Index for January rose 13.2% while a 13.3% increase had been expected by the Briefing.com consensus. This followed the previous month's increase of 13.4%. New home sales declined 3.3% in February to 440,000 from a downwardly revised 455,000 (from 468,000) in January. The Briefing.com consensus expected sales to fall to 445,000. Commentators will likely point out that the drop in sales was the result of extreme winter conditions, but sales actually increased 36.7% in the frigid Midwest and fell 15.9% in the West. In actuality, sales are running a little ahead of the 12-month average with the drop in February resulting from normal volatility.
The Conference Board's Consumer Confidence Index strengthened in March. The index increased to 82.3 from an upwardly revised 78.3 (from 78.1) in February. The Briefing.com consensus pegged the index at 78.2. The reading put confidence levels at the highest point since January 2008. Typically, confidence levels trend with unemployment, gasoline prices, and the equity market. The increase in volatility in the equity market over the past few weeks did nothing to harm confidence. Instead, consumers relied on more favorable employment conditions.

The stock market seemed to divorce itself from the data on Tuesday, following instead the path of activity in the biotech sector and leading blue chip issues. Similarly, the Treasury market rocked back and forth between negative and positive territory before ending modestly lower at the cash settlement.

On a related note, the $32 bln 2-yr note auction went okay, drawing a high yield of 0.469% (0.471% when issued) and a 3.20 bid-to-cover ratio. The latter was below the 12-auction average, but there was strong demand from indirect bidders who accounted for 40.9% of the allotment versus a 12-auction average of 25.7%.

A $35 bln 5-yr note auction will be held on Wednesday. In addition, the economic calendar will feature the latest reading for the mortgage applications index and February data for durable goods orders (Briefing.com consensus +1.0%).

Dow Jones Industrial Average -1.24% YTD
Nasdaq Composite +1.4% YTD
S&P 500 +0.9% YTD
Russell 2000 +1.3% YTD
S&P 400 Midcap Index +2.2% YTD

3:30 pm: [BRIEFING.COM]

Apr gold rose to a session high of $1316.60 per ounce after touching a session low of $1306.20 per ounce in early morning pit trade. However, the yellow metal pulled back towards the unchanged line and settled 20 cents lower at $1311.20 per ounce.
May silver see-sawed between positive and negative territory today, touching a session high of $20.17 per ounce after trading as low as $19.92 per ounce in early morning action. It eventually settled with a 0.4% loss at $19.98 per ounce.
May crude oil advanced to a session high of $100.25 per barrel after trading as low as $98.80 per barrel in morning action. However, the energy component retreated back into negative territory and settled with a 0.4% loss at $99.18 per barrel.
Apr natural gas, on the other hand, trended higher after coming off its session low of $4.36 per MMBtu. It settled 3.0% higher at $4.41 per MMBtu, just below its session high of $4.42 per MMBtu.

3:00 pm: [BRIEFING.COM] Today's trading trends remain intact going into the final hour of trading. Over the next 60 minutes, participants will be keying on two things in particular: (1) the performance of the biotech sector into the close and (2) the performance of the financial sector into the close.

How those two areas perform could very well mean the difference between a nice-sized gain for the broader market or a weak ending. Both are roughly flat at the moment.

The housing sector was front and center on today's economic calendar. Tomorrow there will be an industrial focus with the Durable Goods Orders report for February. The Briefing.com consensus estimate expects a 1.0% gain in durable orders and a 0.3% gain, excluding transportation.

2:30 pm: [BRIEFING.COM] It's shaping up to be a battle to the finish. The blue chip averages continue to outperform on some broad-based participation, yet the tech-heavy Nasdaq (+0.2%), the small-cap Russell 2000 (+0.2%), and the S&P Midcap 400 Index (+0.1% continue to trade with more reserve.

Concerns about market momentum showing signs of cracking have kept buying efforts in check, yet those concerns have been seen and denounced before, so the buy-the-dip crowd isn't walking away easily.

Strikingly, one of the big losers in today's session is the CBOE Volatility Index (VIX 14.20, -0.89). It is down 5.9% today and trading at its lowest level since March 7, which preceded the biotech sell-off by nearly two weeks.

2:00 pm: [BRIEFING.COM] The major indices are showing some resilience to selling efforts, having bounced back from repeated efforts that were persistent for most of the morning trade.

At this juncture, nine out of ten sectors are sporting a gain. The lone holdout is the consumer discretionary sector (-0.6%), which is being pressured by weakness in the media, restaurant, and apparel industry groups. Some relatively disappointing second quarter and full-year guidance from Carnival Corp. (CCL 37.87, -2.13) is also acting as a weight.

Notably, the financial sector (+0.1%) is trailing the broader action and is underperforming the S&P 500. Weakness in the investment banking group and the discount brokerages has served as a headwind.

1:30 pm: [BRIEFING.COM] It has been a bit of a roller-coaster ride for the Nasdaq today as the biotech sector has been a bastion of trading volatility. The iShares Nasdaq Biotechnology ETF (IBB 241.80, +2.57) has seen an intraday trading range of 4.0% between its high and its low. It is currently up 1.1% and has helped the Nasdaq regain a stance in positive territory.

Today, however, is pretty much a blue chip day. The Dow Jones Industrial Average is leading all indices with a 0.6% gain that has been forged on the back of none other than Big Blue itself -- IBM (IBM 194.92, +6.67) -- which is up 3.5%. There hasn't been any news to account for IBM's big gain, so it is perhaps being accorded a low-beta premium in the current environment that has featured some material hiccups for many of the high-beta momentum stocks.

In separate action, the Treasury market is firm today with little change across the yield curve. The $32 bln 2-yr note auction went okay, drawing a high yield of 0.469% (0.471% when issued) and a 3.20 bid-to-cover ratio. The latter was below the 12-auction average of 3.60x, but there was strong demand from indirect bidders who accounted for 40.9% of the allotment versus a 12-auction average of 25.7%.

12:55 pm: [BRIEFING.COM] At midday, the major averages trade near their session lows. The Nasdaq is flat while the Dow Jones Industrial Average is higher by 0.4%. For its part, the S&P 500 trades up 0.3% with eight sectors showing gains.

Equity indices began the day on an upbeat note after risk assets (including U.S. futures) received a boost from comments made by Bundesbank President and European Central Bank Governing Council member, Jens Weidmann. Mr. Weidmann said the ECB should discuss potential costs and benefits of a quantitative easing program, which was received as a signal suggesting a European QE could be on the way. The remarks helped the key European indices register gains close to 1.5% apiece while U.S. equities have retreated from their early highs amid continued weakness in biotechnology.

The biotech industry group was among the leaders through the first hour of action, but the early strength faded swiftly, sending the iShares Nasdaq Biotechnology ETF (IBB 240.02, +0.79) back to its 100-day moving average (235.88). Currently, the ETF trades little changed after losing 7.4% over the past two sessions.

The weakness in biotechnology has contributed to volatility in the broader health care sector (+0.7%), which remains in a position of relative strength at this time. Other top-weighted groups, however, are mixed. Technology (+0.4%) trades just ahead of the S&P 500 while consumer discretionary (-0.7%) and financials (-0.1%) lag.

Notably, the discretionary space has been affected by broad-based selling interest. Retailers lag with the SPDR S&P Retail ETF (XRT 84.31, -0.87) trading lower by 1.0%, while momentum names also display weakness. Priceline.com (PCLN 1219.80, -8.13) and Netflix (NFLX 372.13, -6.77) hold respective losses of 0.5% and 1.8%.

Elsewhere, Treasuries are little changed after retracing their morning losses. The benchmark 10-yr yield hovers at 2.73% after starting the session near 2.76%.

Today's economic data focused mostly on housing:

The January Housing Price Index from the FHFA increased 0.5%, which followed a revised uptick of 0.7% observed during the prior month.
The Case-Shiller 20-city Home Price Index for January rose 13.2% while a 13.3% increase had been expected by the Briefing.com consensus. This followed the previous month's increase of 13.4%.
New home sales declined 3.3% in February to 440,000 from a downwardly revised 455,000 (from 468,000) in January. The Briefing.com consensus expected sales to fall to 445,000. Commentators will likely point out that the drop in sales was a result of extreme winter conditions, but sales actually increased 36.7% in the frigid Midwest and fell 15.9% in the West. In actuality, sales are running a little ahead of the 12-month average with the drop in February resulting from normal volatility.
The Conference Board's Consumer Confidence Index strengthened in March. The index increased to 82.3 from an upwardly revised 78.3 (from 78.1) in February. The Briefing.com consensus pegged the index at 78.2. The reading put confidence levels at the highest point since January 2008. Typically, confidence levels trend with unemployment, gasoline prices, and the equity market. The increase in volatility in the equity market over the past few weeks did nothing to harm confidence. Instead, consumers relied on more favorable employment conditions.

12:25 pm: [BRIEFING.COM] The S&P 500 trades higher by 0.1% after making a brief appearance below its flat line during the past 30 minutes of action. Interestingly, the benchmark index is currently little changed even as seven sectors display gains.

Most notably, consumer staples (+0.4%), energy (+0.8%), and industrials (+0.5%) all trade ahead of the broader market after starting the session in a position of relative strength. However, the solid gains among the three sectors have been overshadowed by the underperformance of consumer discretionary (-1.0%) and financials (-0.2%). Two other heavily-weighted sectors-health care (unch) and technology (unch)-began the day among the leaders, but now trail the S&P 500.

12:00 pm: [BRIEFING.COM] Equity indices have slipped to new lows with the Nasdaq widening its loss to 0.4%.

In some ways today's session resembles that of yesterday when the traditional technology sector held up well despite considerable weakness among biotech (IBB -1.2%). Today, the technology sector trades higher by 0.1% with a handful of top-weighted components displaying significant strength. The top index member, Apple (AAPL 540.90, +1.71), trades up 0.3% while Cisco Systems (CSCO 21.92, +0.36) and Intel (INTC 25.44, +0.32) hold respective gains of 1.7% and 1.2%.

Elsewhere, the bond market also resembles a scene from Groundhog Day as Treasuries have mimicked yesterday's price action so far. The 10-yr note began the New York session in the red before climbing steadily off its lows. The benchmark 10-yr yield is currently near 2.73% after hovering at 2.76% at the opening bell.

Despite stocks sliding to lows, participants have not shown strong demand for volatility protection. The CBOE Volatility Index (VIX 14.95, -0.14) is lower by 0.9% after marking a session low just under the 14.00% level.

11:30 am: [BRIEFING.COM] The major averages hover just above their recently-established lows with the S&P 500 trading higher by 0.2%. The benchmark average surged out of the gate after index futures climbed overnight in reaction to comments from Bundesbank President Jens Weidmann who hinted at the potential deployment of a quantitative easing program by the European Central Bank.

Although the remarks gave a boost to risk assets, the major averages have been fading from their session highs that were established just before 10:00 ET. The biotechnology industry group, which contributed to the early strength, has since retreated from its position of strength. The iShares Nasdaq Biotechnology ETF (IBB 238.98, -0.25) holds a loss of 0.1%.

Elsewhere, two heavily-weighted sectors-consumer discretionary (-0.6%) and financials (-0.2%)-have slid to new lows as the broader market follows in the footsteps of momentum-less momentum names.

10:55 am: [BRIEFING.COM] Equity indices have slipped below their opening levels after notching session highs around 10:00 ET. The S&P 500 has trimmed its advance to 0.2% while the Nasdaq Composite (+0.1%) now trails the broader market.

The Nasdaq was showing relative strength earlier today after the index underperformed over the past two sessions amid notable weakness in biotechnology. Accordingly, the biotech industry group displayed relative strength over the past hour, but has retreated from its high. The iShares Nasdaq Biotechnology ETF (IBB 239.45, +0.22) is higher by 0.2% after losing 7.4% over the past two sessions.

The health care sector (+0.5%) continues showing relative strength while other heavily-weighted groups trade mixed. Technology (+0.3%) trades ahead of the broader market while consumer discretionary (-0.6%) and financials (unch) underperform. Notably, momentum names weigh on the discretionary sector with Netflix (NFLX 368.75, -10.15) and Priceline.com (PCLN 1207.47, -20.46) trading lower by 2.7% and 1.5%, respectively.

10:35 am: [BRIEFING.COM]

Natural gas futures have been slowly climbing higher all day so far and rose as high as $4.40/MMBtu
May nat gas is currently +2.3% at $4.37/MMBtu
May crude oil futures just sold and are now -0.7% at $98.94/barrel
Gold and silver sold off this morning, but have since bounced off those lows and are now higher
Apr gold is +0.3% at $1315.40/oz, while May silver is +0.3% at $20.13/oz
May copper rose above the $3/lb level this morning and is now +1.9% at $3.00/lb

10:00 am: [BRIEFING.COM] The S&P 500 trades higher by 0.7%.

Just released, the consumer confidence reading for March came in at 82.3 while economists polled by Briefing.com expected the survey to come in at 78.2. This followed the prior month's unrevised reading of 78.3.

Separately, February new home sales hit an annualized rate of 440,000, which was down from the revised January rate of 455,000 (from 468,000), and worse than the rate of 445,000 that had been broadly expected by the Briefing.com consensus.

9:40 am: [BRIEFING.COM] The major averages began the trading day on an upbeat note with small caps in the lead. The Russell 2000 is higher by 0.7% while the S&P 500 trades up 0.6% with all ten sectors showing early gains.

Yesterday's biggest laggard-health care (+1.0%)-opened ahead of the remaining nine sectors while energy (+0.7%) and industrials (+0.9%) also displayed relative strength in the early going.

Elsewhere, consumer discretionary (+0.2%) and financials (+0.4%) began the session behind the remaining groups and they continue to trail at this juncture.

Treasuries remain near their lows with the 10-yr yield up two basis points at 2.75%.

The New Home Sales report (Briefing.com consensus 445K) for February and March Consumer Confidence (consensus 78.2) will both be released at 10:00 ET.

9:12 am: [BRIEFING.COM] S&P futures vs fair value: +7.80. Nasdaq futures vs fair value: +18.00. The stock market is on track to begin today's session on a higher note as futures on the S&P 500 hover almost eight points above fair value. Futures traded near their flat lines during the Asian session before climbing to fresh highs as European markets opened for action.

Speaking of Europe, the major averages there hold gains of at least 1.0% following comments from Bundesbank President and ECB Governing Council member Jens Weidmann, who said the European Central Bank should engage in discussion regarding costs and benefits of a potential quantitative easing program.

Domestically, participants received a couple housing-related data points with one more remaining on the schedule. The January Housing Price Index from the FHFA increased 0.5% while the Case-Shiller 20-city Home Price Index for January rose 13.2% (Briefing.com consensus 13.3%).

The New Home Sales report for February (Briefing.com consensus 445K) will be released at 10:00 ET along with the Consumer Confidence (Briefing.com consensus 78.2) reading for March.

Treasuries hold modest losses with the 10-yr yield up two basis points at 2.75%.

9:02 am: [BRIEFING.COM] S&P futures vs fair value: +7.90. Nasdaq futures vs fair value: +18.50. The S&P 500 futures trade eight points above fair value.

The January Housing Price Index from the FHFA increased 0.5%, which followed a revised uptick of 0.7% observed during the prior month.

The Case-Shiller 20-city Home Price Index for January rose 13.2% while a 13.3% increase had been expected by the Briefing.com consensus. This follows the previous month's increase of 13.4%.

8:33 am: [BRIEFING.COM] S&P futures vs fair value: +7.30. Nasdaq futures vs fair value: +17.70. The S&P 500 futures trade seven points above fair value.

The major Asian markets finished mostly lower. Hong Kong's trade deficit exploded to HKD53.70 billion from HKD20.00 billion while the Philippines' trade deficit widened to $1.38 billion from $695 million.

Japan's Nikkei lost 0.4%, slipping on low volume as sellers flexed their muscles into the end of the business year. Heavyweight Softbank weighed, shedding 3.2%.
Hong Kong's Hang Seng pulled back 0.5% after two days of solid gains. Casino-related names were weak as Sands China and Galaxy Entertainment gave up 1.5% and 1.8%, respectively.
China's Shanghai Composite eked out a gain of 0.1%. Financials led some late-day weakness with China Citic Bank sliding 2.5% to lead the sector's decline.

Major European indices trade higher across the board with Germany's DAX +1.6% in the lead. Participants received several data points. Germany's Ifo Business Climate Index slipped to 110.7 from 111.3 (consensus 111.0) as Business Expectations declined to 106.4 from 108.3 (expected 107.6) while Current Assessment improved to 115.2 from 114.4 (forecast 114.6). Great Britain's CPI increased 1.7% year-over-year (expected 1.7%, prior 1.9%) while the month-over-month reading rose 0.5% (consensus 0.5%, last -0.6%). Separately, input PPI slipped 0.4% month-over-month (forecast 0.3%, previous -0.9%) while the CBI Distributive Trades Survey fell to 13 from 37 (expected 28). French Business Survey held at 100, as expected. Spain's PPI fell 2.9% year-over-year (consensus -1.9%, prior -1.9%). Italy's non-EU trade balance swung from a deficit of EUR900 million to a surplus of EUR1.42 billion.

Among news of note, Bundesbank President Jens Weidmann said that a discussion about the costs and benefits of a bond-buying program is needed, indicating the ECB Governing Council member may be open to a quantitative easing program.

Great Britain's FTSE is higher by 1.2% with consumer names trading mixed. EasyJet, Kingfisher, and Travis Perkins hold gains between 2.9% and 6.7% while British Sky Broadcasting, J Sainsbury, and WM Morrison Supermarkets display losses between 0.5% and 1.3%.
In France, the CAC trades up 1.5% as consumer stocks outperform. Danone, Sanofi, and L'Oreal are all up close to 1.7% apiece. On the downside, hotel operator Accor is the lone decliner, down 0.3%.
Germany's DAX sports an advance of 1.6% with health care in the lead. Bayer, Henkel, Fresenius Medical Care, and Merck hold gains between 1.6% and 3.7%. Steelmaker ThyssenKrupp lags, trading lower by 0.5%.

7:57 am: [BRIEFING.COM] S&P futures vs fair value: +5.70. Nasdaq futures vs fair value: +13.70. U.S. equity futures hover near their pre-market highs amid upbeat action overseas. The S&P 500 futures trade almost six points above fair value.

Reviewing overnight developments:

Asian markets ended mixed. Hong Kong's Hang Seng -0.5%, Japan's Nikkei -0.4%, and China's Shanghai Composite +0.1%.
Economic data was limited:
Hong Kong's trade deficit has widened to HKD53.70 billion from HKD20.00 billion (expected deficit HKD39.00 billion).
In news:
The leader of Japan's pension fund GPIF reiterated the fund's ability to lower its domestic bond holdings while increasing the allocation to equities.

Major European indices trade higher across the board. Great Britain's FTSE +1.1%, France's CAC +1.4%, and Germany's DAX +1.6%.
Participants received several data points:
Germany's Ifo Business Climate Index slipped to 110.7 from 111.3 (consensus 111.0) as Business Expectations declined to 106.4 from 108.3 (expected 107.6) while Current Assessment improved to 115.2 from 114.4 (forecast 114.6).
Great Britain's CPI increased 1.7% year-over-year (expected 1.7%, prior 1.9%) while the month-over-month reading rose 0.5% (consensus 0.5%, last -0.6%). Separately, input PPI slipped 0.4% month-over-month (forecast 0.3%, previous -0.9%) while the CBI Distributive Trades Survey fell to 13 from 37 (expected 28).
French Business Survey held at 100, as expected.
Spain's PPI fell 2.9% year-over-year (consensus -1.9%, prior -1.9%).
Italy's non-EU trade balance swung from a deficit of EUR900 million to a surplus of EUR1.42 billion.
Among news of note:
Bundesbank President Jens Weidmann said that a discussion about the costs and benefits of a bond-buying program is needed, indicating the ECB Governing Council member may be open to a quantitative easing program.

In U.S. corporate news:

AT&T (T 34.25, -0.21): -0.6% following an HSBC downgrade to 'Neutral' from 'Overweight.'
Rackspace (RAX 33.84, +1.12): +3.4% after Morgan Stanley upgraded the stock to 'Overweight' from 'Equal-Weight.'
Walgreen (WAG 63.80, -0.51): -0.8% after missing earnings estimates by one cent on revenue that was in line with the March 5 warning.

The Case-Shiller 20-city Index (Briefing.com consensus 13.3%) for January and the January FHFA Housing Price Index will be released at 9:00 ET while March Consumer Confidence (consensus 78.2) and New Home Sales for February (consensus 445K) will be reported at 10:00 ET.

6:30 am: [BRIEFING.COM] S&P futures vs fair value: +2.00. Nasdaq futures vs fair value: +8.50.

6:30 am: [BRIEFING.COM] Nikkei...14423.19...-52.10...-0.40%. Hang Seng...21723.32...-114.10...-0.50%.

6:30 am: [BRIEFING.COM] FTSE...6590.68...+70.30...+1.10%. DAX...9295.67...+106.90...+1.20%.

Euro Weakens Versus Most Peers on Economic Concern; Real Climbs

By John Detrixhe Mar 25, 2014 5:09 PM ET

The euro fell against most of its 16 major counterparts as below-forecast European business data fueled speculation that the region’s economy may struggle further to recover.

The shared currency pared losses versus the dollar as European Central Bank President Mario Draghi didn’t signal additional monetary stimulus. The euro slid earlier as a German report showed business confidence fell more than forecast. Reuters reported European Commission official Antonio Tajani as saying the euro was too strong. Brazil’s real climbed on bets yesterday’s credit-rating cut will be the only one this year.

“It seems to be building up a composite story of weaker trend in the business surveys for Germany in March, and that on its own was enough to send euro lower,” Richard Franulovich, chief currency strategist for the northern hemisphere at Westpac Banking Corp., said in a phone interview. “The market got itself very short of euro, and it didn’t quite see the dramatic talking down of the euro by Draghi some might have thought would happen.” A short position is a bet a currency will fall.

The 18-nation currency declined 0.1 percent to $1.3826 at 5 p.m. New York time after dropping as much as 0.6 percent earlier. It touched $1.3967 on March 13, the highest since October 2011. The euro fell 0.1 percent to 141.39 yen. Japan’s currency was little changed at 102.26 per dollar.

ECB policy makers, who lowered their benchmark interest rate to 0.25 percent in November, meet next week.

Real Strengthens

The real gained versus most major peers. While Standard & Poor’s cut Brazil to its lowest investment grade of BBB-, it shifted the outlook on the nation to stable from negative.

The Brazilian currency climbed as much as 1 percent to 2.2988 per dollar, the strongest intraday level since Nov. 27, before trading at 2.3113, up 0.5 percent.

An equally weighted basket of the so-called BRICS emerging-market currencies, those of Brazil, Russia, India, China and South Africa, rallied against the dollar to the highest level since Jan. 10. The gain took place amid growing investor optimism toward riskier assets. The Standard & Poor’s 500 Index of stocks rose 0.4 percent.

India’s rupee advanced for a third day amid optimism a new government will spur growth. The opposition Bharatiya Janata Party is leading in opinion polls before elections due to start next month. Exchange data showed overseas investors boosted their holdings of the nation’s stocks and bonds by $3.5 billion this month.

‘Positive Time’

“Overall fundamentals are improving for India, and there’s a market perception that a BJP win could be good for inflows,” said Hamish Pepper, a strategist at Barclays Plc in Singapore. “This is a very positive time for the rupee.”

The Indian currency rose 0.5 percent to 60.48 per dollar after appreciating to 60.4275, the strongest since Aug. 1.

Australia’s dollar advanced as a measure of currency volatility was at almost the lowest level in 15 months, underpinning demand for higher-yielding assets.

Deutsche Bank AG’s Currency Volatility Index, based on three-month implied volatility on nine major currency pairs, was at 7.12 percent, after closing yesterday at 7.02 percent, the least since Dec. 17, 2012. The average over the past year is 8.58 percent.

The Aussie gained 0.4 percent to 91.66 U.S. cents and reached 91.74 cents, the highest level since Nov. 26.

German Economy

The euro dropped earlier after the Ifo Institute’s German business climate index, based on a survey of 7,000 executives, fell to 110.7 in March after increasing to 111.3 the previous month, the highest level since July 2011. Economists predicted a decline to 110.9, according to a Bloomberg News survey. Germany is Europe’s biggest economy.

Markit Economics said yesterday its gauge of German manufacturing dropped to 53.8 this month, from 54.8 in February. Economists predicted a reading of 54.5 in the purchasing managers’ index, according to a Bloomberg survey.

Draghi said in a speech in Paris the ECB’s accommodative monetary policy should be increasingly felt throughout the euro-region economy.

“I expect monetary policy to regain influence over the economic cycle, and our accommodative stance to support a gradual closing of the output gap in the coming years,” Draghi said. “If any downside risks to this scenario appear, we stand ready to take additional monetary policy measures that ensure our mandate is fulfilled. In other words, we will do what is needed to maintain price stability.”

Bundesbank President Jens Weidmann said the exchange rate doesn’t warrant policy action. He told foreign reporters in Berlin the risk of deflation in Europe is “very low” even as it’s too early to say that the region’s debt crisis is over.

Not Strong

“Draghi’s comments were lacking in dovish delivery,” said Sebastien Galy, a senior currency strategist at Societe Generale SA in New York. “Not really strong stuff.”

The euro trading at almost $1.40 hurts the economies of Spain, Italy, France and, in the long run, Germany, Reuters quoted European Commission vice-president for industry Tajani as saying earlier at a conference in Milan

The 18-nation currency has strengthened 8.2 percent in the past year, according to Bloomberg Correlation-Weighted Indexes that track 10 developed-nation currencies. The dollar fell 0.2 percent, and the yen tumbled 8.9 percent.

Russia’s currency gained for a third day as companies bought it to meet a tax deadline and amid bets Western nations won’t increase sanctions over the country’s annexation of Ukraine’s Crimea region.

The ruble climbed 1.5 percent to 41.6649 against Bank Rossii’s target basket of dollars and euros.

To contact the reporter on this story: John Detrixhe in New York at jdetrixhe1@bloomberg.net

To contact the editors responsible for this story: Dave Liedtka at dliedtka@bloomberg.net Greg Storey, Paul Cox

Wheat Climbs as U.S. Crop Conditions Deteriorate on Dry Weather

By Ranjeetha Pakiam Mar 25, 2014 10:57 PM ET

Wheat advanced for the second time in three days on concern that dry weather may hurt crops coming out of dormancy in the U.S., the world’s biggest exporter.

The contract for May delivery increased as much as 0.5 percent to $7.1175 a bushel on the Chicago Board of Trade. Futures were at $7.115 by 10:48 a.m. in Singapore, climbing 18 percent this year.

Moisture shortages are reported to cover two-thirds of the Plains wheat belt, Commodity Weather Group said in a report dated yesterday. The chances of showers are focused on northern and eastern quarters of the belt over the next two weeks, the forecaster said. With “only very limited’” improvement, crop conditions may continue to worsen, it said.

“Wheat is coming out of dormancy so it’s a crucial time for crop development at the moment,” Graydon Chong, an analyst at Rabobank International in Sydney, said by phone. “The hard red winter-wheat areas particularly Kansas, Texas, Oklahoma, continue to struggle. There’s quite a large portion of the hard red winter-wheat crop rated poor to very poor and that’s going to put pressure on the U.S. domestic prices.”

About 21 percent of the crop in Kansas was in poor or very-poor condition as of March 23, compared with 20 percent a week earlier, while in Texas conditions were rated 55 percent poor or very poor, up from 52 percent, the U.S. Department of Agriculture said on March 24.

Soybeans for May delivery climbed for a third day, rising 0.2 percent to $14.3025 a bushel. Corn was unchanged at $4.865 a bushel after declining 0.7 percent yesterday for the first time in three days.

To contact the reporter on this story: Ranjeetha Pakiam in Kuala Lumpur at rpakiam@bloomberg.net

To contact the editors responsible for this story: Jake Lloyd-Smith at jlloydsmith@bloomberg.net Ovais Subhani, Thomas Kutty Abraham

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

http://www.thestrategylab.com
Phone: +1 708 572-4885
Business Hours: 8am - 5pm est (Mon - Fri)
Skype Messenger: kebec2002
questions@thestrategylab.com
Go Back To TheStrategyLab.com Homepage


Top
 Profile  
 
Display posts from previous:  Sort by  
Post new topic Reply to topic  [ 1 post ] 

All times are UTC - 5 hours [ DST ]


Who is online

Users browsing this forum: No registered users and 1 guest


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot post attachments in this forum

Search for:
Jump to:  
cron
Powered by phpBB © 2000, 2002, 2005, 2007 phpBB Group
Translated by Xaphos © 2007, 2008, 2009 phpBB.fr