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 2:43 pm

All times are UTC - 5 hours [ DST ]




Post new topic Reply to topic  [ 1 post ] 
Author Message
 Post subject: May 5th Monday Trade Results - Profit $5460.00
PostPosted: Tue May 06, 2014 1:06 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:
050514-wrbtrader-Price-Action-Trading-PnL-Blotter-Profit+5460.00.png
050514-wrbtrader-Price-Action-Trading-PnL-Blotter-Profit+5460.00.png [ 175.37 KiB | Viewed 296 times ]

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

Price Action Trade Performance for Today: Emini TF ($TF_F) futures @ $5,460.00 dollars or +54.60 points, Emini ES ($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 @ $5,460.00 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 timestamp ##TheStrategyLab chat room. You can read today's price action trading information about my trades (e.g. time, price entry, contract size, price exit) as the trade traversed to its completion. Also, sometimes I'll post real-time trading tips involving WRBs, WRB Hidden GAPs, Key Market Events (KME), Tutorial Chapters 2 & 3, WRB Zones, Reaction Highs/Lows, Contracting Volatility or Expanding Volatility. Its all archived @ http://www.thestrategylab.com/ftchat/forum/viewtopic.php?f=130&t=1785

Quote:
If any of my real-time posted trades are via key concepts discussed in the WRB Analysis free study guide or the Fading Volatility Breakout (FVB) free trade signal strategy...I will discuss the reasons (trade strategy) behind those trades if/when a user of ##TheStrategyLab chat room ask questions about the trades. In contrast, real-time posted trades that are via the Advance WRB Analysis Tutorial Chapters 4 - 12 or the Volatility Trading Report (VTR) trade signal strategies...I discuss the reasons (trade strategy) behind those trades with fee-base clients in a different private chat room that's designated only for fee-base clients or discuss the strategies with fee-base clients on my Skype contact list.

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) general volatility analysis involving WRB Analysis 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 and I do not have the time/energy/resources to manage a signal calling chat room. Access instructions for chat room @ 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=238&t=2329

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

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. Further, most financial websites remove (delete) their archives after a few years to make room for new content. Therefore, I maintain my own archives of the news content so that I have it available for me when financial websites no longer archives their content.

Stocks Finish Strong After Morning Drama

Attachment:
050514-Key-Price-Action-Markets.png
050514-Key-Price-Action-Markets.png [ 897.35 KiB | Viewed 334 times ]

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

NEW YORK (CNNMoney)
It started as an ugly day on Wall Street, but the day ended with some Cinco de Mayo cheer.

The Dow closed in the green Monday -- up 0.11% -- after dropping 120 points early in the trading session. The S&P 500 and Nasdaq also recovered from early losses, and ended up slightly for the day.

The Dow hit an all-time high last week, and the S&P 500 is close to new heights.

The latest reading from the CNNMoney Fear & Greed Index suggests investors are very fearful.

Related: All eyes on Janet Yellen this week

The early pessimism might have been drive by Target's (TGT, Fortune 500) announcement Monday that Gregg Steinhafel, the chairman and CEO of Target during the retailer's massive breach of customer credit and debit card data last year, has left the company effective immediately. Chief Financial Officer John Mulligan will serve as interim CEO. Shares of the retailer slumped over 3% Monday.

Analyst Brian Sozzi of Belus Capital Advisors thought Target didn't move fast enough in removing Steinhafel.

"In truth, Mr. Steinhafel should have been pushed aside coming into the key spring selling season and before starting to set strategies for the upcoming holiday season of 2014," he said in a morning note.

One StockTwits trader pondered if Steinhafel was truly to blame.

"$TGT Is the CEO just the scapegoat for the cybersecurity problem...let's see if more problems surface," said Rayneman.

Another StockTwits trader was cautiously optimistic on the stock.

"I'm a Target fan but they need to do more before I can say it's a buy. Today's news is good, but more is needed. $TGT," said EddyElfenbein.

*Video - Target CEO falls on his sword

And Apple (AAPL, Fortune 500) is on a roll. Shares of the tech giant closed above $600 Monday for the first time since October 2012. In its latest earnings report, the company announced a seven-to-one stock split, which will take effect on June 9th and make the price of a single share significantly cheaper.

Related: Investors love the Apple iSplit

Earnings season is winding down, but a few more quarterly releases remain on the docket this week. Tyson Foods (TSN, Fortune 500) shares dove almost 10% after the company reported first quarter earnings that fell short of analyst estimates.

Pfizer (PFE, Fortune 500) sank after the pharmaceutical giant reported slightly better than expected earnings, but it's clear the company is struggling in its traditional drug business. That might explain why Pfizer is so keen to buy British pharmaceutical company AstraZeneca (AZN) despite that company's rejection of Pfizer's most recent offer of $106 billion on Friday.

Related: AstraZeneca says no to Pfizer's $106 billion bid

JP Morgan (JPBEX) shares dipped about 2.5% Monday after the nation's largest bank by assets said Friday that it expects a 20% drop in trading revenue in the second quarter. Like many of its rivals, the Wall Street behemoth has seen a sharp slowdown in its bonds, currencies, and commodities units as low interest rates and soft demand from emerging markets has put a damper on those previously lucrative businesses.

On a more positive note, shares of King Digital (KING), the maker of the hit online game Candy Crush, surged 8.5% Monday after Wall Street analysts began rating the stock. Many give it "buy" recommendations.

But King has been criticized as a one hit wonder, and StockTwits trader MackMcEnroe seemed to fall into that camp of thinking.

"$KING is Rome before the fall," he said.

But Mbrillo1 agreed with the positive ratings, and isn't a fan of the King-bashing.

"$KING Stop this 'One trick pony' sentiment. Candy Crush has plenty of room to run," he said.

Salesforce.com (CRM)also got a boost after receiving a favorable rating from an analyst at Deutsche Bank.

Chipotle (CMG) was one of the top gainers in the S&P 500 Monday after an analyst at Raymond James upgraded the rating for the stock. Disney (DIS, Fortune 500) also traded higher ahead of its quarterly results report that's due out tomorrow. Whole Foods (WFM, Fortune 500), on the other hand, was down more than 2.5% today ahead of its Tuesday earnings report.

European markets finished lower, as worries over growing tensions and lawlessness in Ukraine may be causing investors some unease. Germany, Russia's biggest European trading partner, saw its Dax index regain some lost ground after falling 1% earlier in the day.

Asian markets ended the day with mixed results, as monthly manufacturing data from China showed contraction in the world's second largest economy. Some international markets were closed Monday, including exchanges in London, Seoul and Tokyo.

Image



4:10 pm: [BRIEFING.COM] The stock market kicked off the new trading week on a sleepy note as the major averages spent the bulk of the session near their flat lines. However, a final push during the last hour of action placed the key indices at new highs into the close. The S&P 500 added 0.2%, while the Russell 2000 (-0.1%) lagged throughout the day.

Equities began the session on their lows as renewed global growth concerns, combined with continued worries about Ukraine, conspired to ensure a cautious start. In China, the HSBC Manufacturing PMI fell to 48.1 from 48.3 (expected 48.4), signifying a slowdown in manufacturing activities. Elsewhere, the European Commission warned about slower-than-expected growth by lowering its 2014 inflation forecast to 0.8%. The commission also trimmed next year's inflation forecast to 1.2%, while lowering its 2015 GDP forecast to 1.7% from 1.8%.

Strikingly, the worries that pressured index futures overnight were cast aside once the opening bell rang. The major averages returned to their flat lines during the first 90 minutes of action, but were unable to continue their rally as financials (-0.4%) acted as a wet blanket.

The second-largest sector finished the day at the bottom of the leaderboard as JPMorgan Chase (JPM 54.22, -1.36) weighed after guiding for a 20.0% year-over-year decline in Q2 markets revenue. Shares of JPM fell 2.5%, while peers Bank of America (BAC 15.08, -0.17) and Citigroup (C 47.18, -0.55) both lost near 1.2%.

Meanwhile, the remaining top-weighed sectors finished on a mixed note. Health care (+0.6%) and technology (+0.4%) outperformed, while the discretionary sector (+0.1%) lagged.

Retailers contributed to the underperformance of the discretionary space, with Target (TGT 59.87, -2.14) falling 3.5% after announcing Chief Executive Officer Gregg Steinhafel will step down from his post. Homebuilders also factored into the relative weakness of the discretionary sector after investor Jeffrey Gundlach recommended shorting the housing sector at the Ira Sohn conference. The iShares Dow Jones US Home Construction ETF (ITB 23.66, -0.29) lost 1.2%.

Elsewhere, the two commodity-related sectors-energy (+0.5%) and materials (+0.5%)-finished among the leaders. The energy space rallied even as crude oil shed 0.4% to $99.46/bbl, while producers of basic materials drew strength from miners. The Market Vectors Gold Miners ETF (GDX 24.41, +0.09) gained 0.4%, while gold futures climbed 0.5% to $1309.60/ozt.

On the fixed income side, Treasuries finished in the red after sliding from their overnight highs. The benchmark 10-yr yield rose two basis points to 2.61%.

Participation was well below average with less than 600 million shares changing hands at the NYSE.

Economic data was limited to just one report:
Related Stories

InPlay from Briefing.com Briefing.com
S&P 500 Rises for Fourth Session; Dow Drops The Wall Street Journal
Nasdaq, S&P 500 On Track For Sixth Straight Gain Investor's Business Daily
Tech leads slide as stocks erase their weekly gains: Stock market live blog recap MarketWatch
[$$] Big Week for Stocks Closes With Whimper The Wall Street Journal

The ISM Non-manufacturing Index increased to 55.2 in April from 53.1 in March. That was the strongest reading since August 2013, while the Briefing.com consensus expected the index to increase to 54.0. Business activities/production levels improved to 60.9 in April from 53.4 in March. The increase in production was predicated on a large increase in new orders (58.2 from 53.4). There is some concern that production may not be sustainable without another influx of new orders growth. Order backlogs slipped into a contraction in April (49.0 from 51.5). The Employment Index fell to 51.3 in April from 53.6 in March, which was unusual considering the April Employment Situation Report showcased a large increase in payrolls that month.

Tomorrow, the Trade Balance for March (Briefing.com consensus -$42.50 billion) will be released at 8:30 ET.

S&P 500 +2.0% YTD
Dow Jones Industrial Average -0.3% YTD
Nasdaq Composite -0.9% YTD
Russell 2000 -3.0% YTD

3:30 pm: [BRIEFING.COM]

June gold traded higher as it got a boost from a slightly weaker dollar index and escalating tension in Ukraine. The yellow metal brushed a session high of $1315.80 per ounce in early morning action and eventually settled with a 0.5% gain at $1309.40 per ounce.
July silver pulled back from its session high of $19.75 per ounce set moments after floor trade opened. Although it remained in positive territory, silver cut gains for the day to 0.1% as it settled at $19.57 per ounce.
June crude oil fell into the red as a disappointing Chinese HSBC Final Manufacturing PMI reading that came in at 48.1 (down from the flash reading of 48.4) weighed on prices. The energy component retreated from its session high of $100.06 per barrel and dipped as low as $98.91 per barrel. It eventually settled at $99.46 per barrel, or 0.4% lower.
June natural gas traded in positive territory, touching a session high of $4.73 per MMBtu. It pulled back heading into the close and settled with a 0.4% gain at $4.69 per MMBtu.

2:55 pm: [BRIEFING.COM] The S&P 500 trades higher by 0.2% with one hour remaining in the session. The benchmark index enters the closing hour at its best level of the day after spending the better part of the past four hours near its flat line.

Elsewhere, the Nasdaq Composite (+0.3%) trades a bit ahead of the benchmark index thanks to the relative strength of biotechnology. The iShares Nasdaq Biotechnology ETF (IBB 232.70, +3.65) hovers at its session high with a gain of 1.6%.

Lastly, the Russell 2000 (-0.1%) has returned to its best level of the day, but has yet to climb out of the red.

2:30 pm: [BRIEFING.COM] The S&P 500 remains flat as the uneventful session continues. Since last week was filled with noteworthy economic data, this week will not be as busy.

Tomorrow's data will be limited to the Trade Balance report for March, which will be released at 8:30 ET. The Briefing.com consensus expects the report to reveal a deficit of $42.50 billion to follow a February deficit of $42.30 billion.

Even though this week will essentially be free of domestic data, participants will look to other markets as the Reserve Bank of Australia will release its latest policy statement tonight, while the Bank of England and the European Central Bank will make their own announcements later in the week.

1:55 pm: [BRIEFING.COM] Equity indices continue drifting near their recent levels. In fact, the S&P 500, which trades flat, has been hovering within points of its flat line since 10:45 ET.

The utilities sector (+0.8%) remains ahead of the other nine groups, while the second-best performing group of the day, energy, has narrowed its gain to 0.4%. The growth-sensitive sector trades in the green even as crude oil sports a loss of 0.7% at $99.08/bbl.

Meanwhile, the other commodity-related sector, materials, also trades ahead of the broader market with a slim gain of 0.2%. Mining shares have provided a measure of support as the Market Vectors Gold Miners ETF (GDX 24.40, +0.08) trades higher by 0.3%, while gold futures trade up 0.5% at $1309.70/ozt.

1:30 pm: [BRIEFING.COM] Little change in the broader action since the last update. Following a roller-coaster start, the major indices have settled into narrow trading ranges that haven't taken them too far past the unchanged mark.

Trading volume is on the lighter side of things today, which isn't too surprising as participants try to get a handle on the disconnect between the stock and bond markets. The recognition that Fed Chair Yellen will be providing testimony before the Joint Economic Committee on Wednesday and Thursday, and that both the Bank of England and ECB will make interest rate announcements on Thursday, has provided another cause to pause.

On a similar note, the inability of the S&P 500 to clear technical resistance at the 1883/1885 area has been another halting factor.

12:55 pm: [BRIEFING.COM] The Dow (-0.1%), Nasdaq (unch), and S&P 500 (unch) are little changed, while the Russell 2000 (-0.4%) lags following a subdued first half of the session. Equity indices opened the new trading week on the defensive as continued worries about Ukraine, combined with global growth concerns, weighed on the early sentiment.

News from China factored into the cautious posture after the HSBC Manufacturing PMI fell to 48.1 from 48.3 (expected 48.4), signifying a slowdown in manufacturing activities. Elsewhere, the European Commission primed the market for slower growth by lowering its 2014 inflation forecast to 0.8%. The commission also trimmed next year's inflation forecast to 1.2%, while lowering its 2015 GDP forecast to 1.7% from 1.8%.

The warnings regarding the pace of global growth pressured the major averages at the open, while the financial sector (-0.5%) also contributed to the weakness after JPMorgan Chase (JPM 54.25, -1.33) said it expects second quarter markets revenue to come in about 20.0% below last year's results.

Despite the lower start, equity indices have been able to battle back to their flat lines, but the continued underperformance of the financial sector has acted as a limiting factor for the broader market. Outside of financials, other top-weighed sectors like consumer discretionary, industrials, and technology trade flat, while health care (+0.2%) outperforms thanks to gains within the biotech space. The iShares Nasdaq Biotechnology ETF (IBB 231.57, +2.52) is higher by 1.1%.

Health care notwithstanding, another countercyclical sector-utilities (+0.7%)-sits atop today's leaderboard after finishing Friday's session behind the other nine groups. Including today's gain, the utilities sector is now up 12.5% year-to-date.

Treasuries displayed gains going into the New York open, but they now trade lower. The benchmark 10-yr yield is up one basis point at 2.60%.

Today's economic data was limited to just one report:

The ISM Non-manufacturing Index increased to 55.2 in April from 53.1 in March. That was the strongest reading since August 2013, while the Briefing.com consensus expected the index to increase to 54.0. Business activities/production levels improved to 60.9 in April from 53.4 in March. The increase in production was predicated on a large increase in new orders (58.2 from 53.4). There is some concern that production may not be sustainable without another influx of new orders growth. Order backlogs slipped into a contraction in April (49.0 from 51.5). The Employment Index fell to 51.3 in April from 53.6 in March, which was unusual considering the April Employment Situation Report showcased a large increase in payrolls that month.

12:30 pm: [BRIEFING.COM] The S&P 500 continues hovering just north of its flat line as the quiet session continues. In fact, the benchmark index has been confined to a three-point range for the past 90 minutes.

The benchmark average trades little changed, which is a by-product of the lacking sector leadership. The countercyclical utilities sector (+0.7%) is followed by the growth-sensitive energy space (+0.6%), while most of the remaining sectors are essentially bunched together.

On the downside, the financial sector (-0.4%) continues weighing on the broader market.

11:55 am: [BRIEFING.COM] The Dow, Nasdaq, and S&P 500 remain near their flat lines, while the Russell 2000 (-0.4%) has slipped away from its unchanged level.

Seven of ten sectors trade in the green with the utilities space (+0.8%) setting the pace. The sector trades ahead of the remaining groups after finishing Friday's session at the bottom of the leaderboard with a loss of 2.0%. Today, however, the sector is rebounding from Friday's underperformance, and the energy sector (+0.5%) is the only other group that trades with a gain larger than 0.2%.

Elsewhere, Treasuries are pinned to their lows with the 10-yr yield at 2.61%.

11:30 am: [BRIEFING.COM] The S&P 500 remains at its flat line, while the Nasdaq Composite has also returned to its unchanged level after showing a slim gain not long ago.

Equity indices have been able to climb off their early lows, but their ability to continue the rally is likely to hinge on the performance of financials (-0.5%). The second largest sector remains weak with three influential components-Bank of America (BAC 15.07, -0.18), Citigroup (C 47.20, -0.54), and JPMorgan Chase (JPM 54.53, -1.05)-holding losses of more than 1.0% apiece.

Outside of financials, the consumer discretionary sector (-0.2%) is another noteworthy laggard.

11:00 am: [BRIEFING.COM] The major averages have erased their opening losses after climbing steadily through the first 90 minutes of the session. The S&P 500 hovers right at its flat line, while the Nasdaq Composite (+0.1%) outperforms.

The tech-heavy Nasdaq has drawn strength from biotechnology (IBB +0.9%) and the traditional technology sector (+0.2%). Some top-weighted tech components are showing strength as Apple (AAPL 597.55, +4.97), Oracle (ORCL 41.17, +0.36), and Qualcomm (QCOM 79.55, +0.56) hold gains between 0.7% and 0.8%.

On the downside, the financial sector (-0.5%) remains at the bottom of the leaderboard, while no other sector displays a loss larger than 0.1%.

10:35 am: [BRIEFING.COM]

The dollar index has been in the red all morning, which has provided some price support to select commodities
Crude oil slowly climbed higher overnight and rose as high as $100.44.barrel. It has since been sliding lower and is currently -0.2% at $99.55/barrel.
Natural gas, on the other hand, slide lower overnight to as low as $4.65. The energy component found some buying interest after hitting that LoD, pushing June nat gas to as high as $4.72/MMBtu in morning trade. Nat gas is now +0.9% at $4.72/MMBtu.
Metals are mixed this morning with June gold +0.7% at $1311.60/oz, July silver +0.3% at $19.60/oz, July copper -0.4% at $3.06/lb

10:00 am: [BRIEFING.COM] Equity indices have inched off their lows, with the S&P 500 trimming its decline to 0.4%. Nine sectors remain in the red with financials (-0.9%) pressuring the broader market.

Just released, the ISM Services Index for April rose to 55.2 from 53.1 while the Briefing.com consensus expected an uptick to 54.0.

9:40 am: [BRIEFING.COM] The major averages slumped out of the gate with small caps leading the retreat. The Russell 2000 trades lower by 1.2%, while the S&P 500 holds a loss of 0.7% with all ten sectors in the red.

As expected, the financial sector (-1.2%) is a noteworthy laggard due to the pressure exerted by the shares of JPMorgan Chase (JPM 54.00, -1.58), which trades lower by 2.9% after issuing disappointing guidance.

Other top-weighted sectors are not faring much better as consumer discretionary, health care, and technology hold losses between 0.6% and 0.9%.

The ISM Services report for April will be released at 10:00 ET (Briefing.com consensus 54.0).

9:11 am: [BRIEFING.COM] S&P futures vs fair value: -10.40. Nasdaq futures vs fair value: -25.00. The stock market is on track for a cautious start to the trading week as futures on the S&P 500 hover ten points below fair value. Outside of the continued uncertainty surrounding Ukraine, global growth concerns have returned to the forefront overnight.

In Asia, China's HSBC Manufacturing PMI fell to 48.1 from 48.3, suggesting the contraction in the country's manufacturing sector has accelerated. Meanwhile in Europe, the European Commission has lowered its 2014 inflation forecast to 0.8%, while also lowering next year's GDP forecast to 1.7% from 1.8%.

Domestically, the early sentiment has not been helped by disappointing guidance issued by JPMorgan Chase (JPM 53.98, -1.60) on Friday evening. The financial giant holds a pre-market loss of 2.9% after saying Q2 markets revenue is expected to contract 20.0% year-over-year. The stock will pressure the financial sector in the early going, which will also weigh on the broader market.

Treasuries display modest gains with the 10-yr yield at 2.58%.

8:58 am: [BRIEFING.COM] S&P futures vs fair value: -8.20. Nasdaq futures vs fair value: -17.30. The S&P 500 futures trade eight points below fair value.

Asian markets began the week on a mixed note, while Japan's Nikkei was closed for Children's Day. Elsewhere, Hong Kong's Hang Seng (-1.3%) trailed the region after China's HSBC Manufacturing PMI fell to 48.1 from 48.3 (expected 48.4). Separately, Non-Manufacturing PMI ticked up to 54.8 from 54.5. Also of note, China Securities Regulatory Commission has announced that 25 new companies will come to market, pushing the total number of recent IPOs past 200.

In other regional data, Australia's Building Approvals fell 3.5% month-over-month (consensus 1.0%, previous -5.4%), while ANZ Job Advertisements increased 2.2% (prior 1.4%). Separately, MI Inflation Gauge ticked up 0.4% month-over-month (previous 0.2%). Indonesia's GDP rose 0.95% quarter-over-quarter (expected 1.26%, prior -1.42%), while the year-over-year reading increased 5.21% (consensus 5.60%, previous 5.72%).

Japan's Nikkei was closed
Hong Kong's Hang Seng lost 1.3% after spending the bulk of the session in negative territory. Heavyweight names lagged, with Hutchinson Whampoa, Want Want China Holdings, and Lenovo Group down between 1.8% and 8.1%. China Unicom Hong Kong outperformed, climbing 2.7%.
China's Shanghai Composite rallied off lows during the final 90 minutes of action, finishing with a slim gain of 0.1%. Utility provider Shenyang Jinshan Energy surged 8.8%, while financials lagged. China Vanke fell 2.0%.

Major European indices trade lower across the board, while Great Britain's FTSE is closed for an Early May Bank Holiday. Today's economic data was limited. Eurozone PPI fell 0.2% month-over-month, as expected, while the year-over-year reading declined 1.6% (consensus -1.7%, prior -1.7%). Separately, Sentix Investor Confidence fell to 12.8 from 14.1 (expected 14.2).

Among news of note, the European Commission has lowered its GDP and inflation forecasts for the eurozone. The Commission now expects 2014 inflation to come in at 0.8%, while next year's inflation is expected to increase 1.2%. The 2015 GDP forecast was also revised lower, to 1.7% from 1.8%.

Great Britain's FTSE is closed.
In France, the CAC is lower by 0.9% amid weakness in financials. AXA, Credit Agricole, and Societe Generale are down between 1.8% and 2.3%. On the upside, telecom provider Orange is the lone advancer, up 0.3%.
Germany's DAX holds a loss of 1.4% with all 30 components in the red. Growth-sensitive names weigh as BMW and Deutsche Bank trade lower by 2.0% and 2.3%, respectively.

8:29 am: [BRIEFING.COM] S&P futures vs fair value: -8.20. Nasdaq futures vs fair value: -15.80. U.S. equity futures continue hovering just above their pre-market lows, while European indices also trade in the red. Since Friday, market participants received a couple data points from China. The country's Non-Manufacturing PMI ticked up to 54.8 from 54.5, but more notably, the HSBC Manufacturing PMI fell to 48.1 from 48.3 (consensus 48.4), indicating continued softness in the manufacturing sector.

Growth concerns have also made themselves known in Europe, where the European Commission has lowered its GDP and inflation forecasts. This year's inflation is now expected to come in at just 0.8%, while next year's inflation is expected to come in at 1.2%. The Commission lowered its growth forecast for next year, from 1.8% to 1.7%.

In addition, the continued uncertainty about the situation in Ukraine has also factored into the defensive posture.

Treasuries hover near their highs with the benchmark 10-yr yield at 2.57%.

7:59 am: [BRIEFING.COM] S&P futures vs fair value: -8.00. Nasdaq futures vs fair value: -15.00. U.S. equity futures trade near their lows amid cautious action overseas. The S&P 500 futures hover eight points below fair value.

Reviewing overnight developments:

Asian markets ended mixed. China's Shanghai Composite +0.1%, Hong Kong's Hang Seng -1.3%, and Japan's Nikkei was closed for Children's Day.
In economic data:
China's HSBC Manufacturing PMI fell to 48.1 from 48.3 (expected 48.4). Separately, Non-Manufacturing PMI ticked up to 54.8 from 54.5.
Australia's Building Approvals fell 3.5% month-over-month (consensus 1.0%, previous -5.4%), while ANZ Job Advertisements increased 2.2% (prior 1.4%). Separately, MI Inflation Gauge ticked up 0.4% month-over-month (previous 0.2%).
Indonesia's GDP rose 0.95% quarter-over-quarter (expected 1.26%, prior -1.42%), while the year-over-year reading increased 5.21% (consensus 5.60%, previous 5.72%).
In news:
China Securities Regulatory Commission has announced that 25 new companies will come to market, pushing the total number of recent IPOs past 200.

Major European indices trade lower across the board. Germany's DAX -1.3%, France's CAC -1.1%, and Great Britain's FTSE is closed for an Early May Bank Holiday. Elsewhere, Italy's MIB -1.3% and Spain's IBEX -0.8%.
Economic data was limited:
Eurozone PPI fell 0.2% month-over-month, as expected, while the year-over-year reading declined 1.6% (consensus -1.7%, prior -1.7%). Separately, Sentix Investor Confidence fell to 12.8 from 14.1 (expected 14.2).
Among news of note:
The European Commission has lowered its GDP and inflation forecast for the eurozone. The Commission now expects 2014 inflation to come in at 0.8%, while next year's inflation is expected to increase 1.2%. The 2015 GDP forecast was also revised lower, to 1.7% from 1.8%.

In U.S. corporate news:

JPMorgan Chase (JPM 54.10, -1.48): -2.7% after lowering its guidance. The bank said it expects second quarter markets revenue to come in about 20.0% below last year's results.
Pfizer (PFE 30.50, -0.25): -0.8% following its bottom-line beat on below-consensus revenue.
Tyson Foods (TSN 43.10, +0.45): +1.1% after missing earnings estimates on above-consensus revenue.

The ISM Services report for April will be released at 10:00 ET (Briefing.com consensus 54.0).

6:41 am: [BRIEFING.COM] S&P futures vs fair value: -7.50. Nasdaq futures vs fair value: -13.50.

6:41 am: [BRIEFING.COM] Nikkei...Holiday......... Hang Seng...21976.33...-284.30...-1.30%.

6:41 am: [BRIEFING.COM] FTSE...Holiday......... DAX...9422.70...-132.40...-1.40%.

U.S. Stocks Advance as Services Data Offset Bank Declines

By Lu Wang May 5, 2014 5:00 PM ET

U.S. stocks rose, after benchmark indexes climbed to records last week, as an expansion in American service industries offset concern over growth in China and political tensions in Ukraine.

Apple Inc. climbed 1.4 percent to close above $600 for the first time since 2012. Biogen Idec Inc. and Gilead Sciences Inc. jumped at least 2.7 percent as biotechnology shares resumed their recovery from a two-month slide, leading gains in the Standard & Poor’s 500 Index. (SPX) JPMorgan Chase & Co. declined 2.5 percent after saying a trading slump has deepened, driving financial shares to the biggest retreat among 10 S&P 500 groups. Pfizer Inc. fell 2.6 percent on disappointing sales.

The S&P 500 added 0.2 percent to 1,884.66 at 4 p.m. in New York, rebounding after a drop of 0.8 percent at the start of trading. The Dow Jones Industrial Average (INDU) rose 17.66 points, or 0.1 percent, to 16,530.55. The Nasdaq Composite Index gained 0.3 percent. About 5 billion shares changed hands on American exchanges, the slowest trading in two weeks.

“We continue to remain choppy, going back and forth,” Joseph Tanious, a global market strategist at JPMorgan (JPM) Asset Management in Los Angeles, said by phone. His firm oversee $1.6 trillion in client assets. “The market is having a bit of identity crisis right now, searching for a direction. We are seeing opposing forces in the market.”

Investors pulled $2.66 billion last week out of exchange-traded funds that invest in U.S. equities, data compiled by Bloomberg show. Technology-focused ETFs saw withdrawals of $1.5 billion, the most among 12 sectors tracked by Bloomberg. Energy and utility funds attracted the biggest inflows, with deposits each totaling more than $400 million, the data show.

Record Levels

U.S. stocks rose last week, with the Dow average reaching an all-time high, as earnings topped forecasts and the Federal Reserve said it would further trim bond purchases as the economy gains momentum. The S&P 500 added 1 percent, taking its gain this year to 1.8 percent. The benchmark gauge briefly climbed above its highest closing price on May 2, as data showed U.S. payrolls rose the most since 2012.

The S&P 500 erased its early decline today after the Institute for Supply Management’s non-manufacturing index rose to 55.2 in April from the prior month’s 53.1. Readings above 50 indicate expansion. The median forecast of 69 economists surveyed by Bloomberg called for 54 in the gauge of services, which account for almost 90 percent of the economy.

Correction Risk

Ukraine sought to dislodge separatists from its eastern industrial heartland over the weekend as violence that’s spread to the Black Sea gateway of Odessa threatens to loosen Kiev’s control of the regions. Fighting in the eastern city of Kramatorsk left seven people dead, according to the website Kramatorsk.info. Clashes continued in Odessa yesterday.

China’s manufacturing contracted for a fourth month in April. HSBC Holdings Plc and Markit Economics said today their purchasing managers’ index rose to 48.1. That missed the median estimate of 48.4 and the preliminary reading of 48.3. Numbers below 50 indicate contraction.

“These geopolitical issues become widespread concerns,” Peter Sorrentino, a senior portfolio manager who helps manage about $3.8 billion at Huntington Funds in Cincinnati, said by phone. “Our view has been we’re going to get a transition that in effect we’ll quietly see a correction that takes place on the sector level, but not on the market level. If that doesn’t materialize, the market is very clearly, because of the slowdown we’re seeing in growth, vulnerable here that we could very easily see a correction.”

Corporate Earnings

Walt Disney Co., the world’s largest entertainment company, and Mosaic Co., the biggest U.S.-based potash producer, are among S&P 500 companies reporting results this week. Profit for members of the gauge probably climbed 4.6 percent in the first quarter from the year-earlier period, while sales rose 2.8 percent, according to estimates compiled by Bloomberg.

“Anybody that thinks American business is not doing well should just look at corporate profits,” Warren Buffett, chairman and chief executive officer of Berkshire Hathaway Inc., said at the company’s annual meeting on May 3.

Berkshire’s Class B shares slipped 1.2 percent to $126.61. The company reported a 3.8 percent decline in first-quarter profit as underwriting results dropped at insurance businesses and on reduced earnings from Buffett’s derivatives wagers.

The Chicago Board Options Exchange Volatility Index (VIX), a gauge for U.S. stock volatility known as the VIX, rose 2.9 percent to 13.29, for its first gain in six days. The measure has lost 3.1 percent this year.

Industry Returns

Utility, health-care and commodity shares climbed at least 0.5 percent for the best performances among S&P 500 main industries. Exxon Mobil Corp. added 0.9 percent to $102.91 while Chevron Corp. increased 0.5 percent to $125.36.

Apple advanced 1.4 percent to $600.96. The stock has jumped 15 percent since April 23, when the company reported a surge in iPhone sales and gave its shareholder payout program a $30 billion boost.

Biotech companies accounted for four of the 10 best performers in the S&P 500 as Biogen, Gilead, Vertex Pharmaceuticals Inc. and Alexion Pharmaceuticals Inc. each climbed at least 2.7 percent.

The Nasdaq Biotechnology Index advanced 1.8 percent, extending its gain from an April low to 8.2 percent. The gauge had tumbled as much as 21 percent from a February peak as investors exited the bull market’s biggest winners.

Monsanto Stake

Monsanto Co. climbed 2.4 percent to $114.85. Larry Robbins, founder of $7.5 billion Glenview Capital Management LLC, told Bloomberg Television’s Stephanie Ruhle at the 19th annual Sohn Investment Conference in New York that he’s amassed a $1 billion position in the seed maker and intends to hold it as a long-term investment as demand for genetically modified foods rises.

Sotheby’s advanced 3.2 percent to $44.80. The auction house agreed to appoint Third Point LLC founder Dan Loeb and two of his candidates to its board of directors, a settlement that ends a bitter proxy fight between the company and its largest shareholder.

PerkinElmer Inc. climbed 3.6 percent, the most in the S&P 500, to $43.95. The provider of equipment for genetic screening and drug research was raised to a buy from neutral at Janney Montgomery Scott LLC.

B/E Aerospace (BEAV) Inc. jumped 9.3 percent to $97.22. The maker of seats for commercial and business jets hired financial and legal advisers to study its options, including a sale, and canceled an investor meeting set for today.

Financial Retreat

Financial shares in the S&P 500 slumped 0.4 percent. JPMorgan declined 2.5 percent to $54.22. Fixed-income and equities trading revenue will drop about 20 percent from a year earlier at the New York-based company amid “a continued challenging environment and lower client activity levels,” JPMorgan said after the close of trading on May 2 in its quarterly regulatory filing.

Goldman Sachs Group Inc. fell 1.6 percent to $156.35 while Morgan Stanley slipped 2 percent to $30.07.

Pfizer retreated 2.6 percent to $29.96. The drugmaker reported first-quarter sales that missed analyst estimates as demand weakened for Lipitor and Viagra.

Separately, U.K. Business Secretary Vince Cable said yesterday that the U.S. company’s bid for Britain’s AstraZeneca Plc raised questions of “overriding national interest,” as the opposition Labour Party stepped up its opposition to the proposed takeover.

Target Corp. declined 3.5 percent to $59.87. Chief Executive Officer Gregg Steinhafel, dogged by questions over whether the company responded quickly enough to a data breach last year, will step down as chairman, president and CEO.

Tyson Foods Inc. dropped 9.9 percent to $38.44 for the biggest loss in the S&P 500. The largest U.S. meat producer reported a wider operating loss from the international unit for its fiscal second quarter as an outbreak of bird flu affected sales in China.

To contact the reporter on this story: Lu Wang in New York at lwang8@bloomberg.net

To contact the editors responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net Jeff Sutherland

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 2 guests


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