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 Post subject: May 6th Tuesday Trade Results - Profit $5180.00
PostPosted: Wed May 07, 2014 12:05 am 
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Joined: Sat Jan 10, 2009 2:06 pm
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Trade Results of M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
Price Action Trading (no technical indicators)
Phone: +1 708 572-4885
Free Chat Room: http://www.thestrategylab.com/tsl/forum/viewforum.php?f=164
Business Hours: 8am - 5pm est (Mon - Fri)
questions@thestrategylab.com (24/7)
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 @ $4,680.00 dollars or +46.80 points, Emini ES ($ES_F) futures @ $500.00 dollars or +10.00 points, Light Crude Oil CL ($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 @ $5,180.00 dollars

Russell 2000 Emini TF Futures: 1 tick or 0.10 = $10.00 dollars and there's more contract information @ The ICE
S&P 500 Emini ES Futures: 1 tick or 0.25 = $12.50 dollars and there's more contract information @ CMEGroup
Light Crude Oil CL (WTI) Futures: 1 tick or 0.01 = $10.00 dollars and there's more contract information @ CMEGroup
Gold GC Futures: 1 tick or 0.10 = $10.00 dollars and there's more contract information @ CMEGroup
EuroFX 6E Futures: 1 tick or 0.0001 = $12.50 dollars and there's more contract information @ CMEGroup

In addition, all of my trades were posted real-time in the 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=1786

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

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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. 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.

It's 'Tumble Tuesday' For Stocks

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

NEW YORK (CNNMoney)
So much for that Tuesday lucky streak for stocks.

The Dow Jones industrial average, the S&P 500 and the Nasdaq all ended the day down, snapping an eight week run of winning Tuesdays. The Dow lost nearly 130 points in afternoon trading, and the Nasdaq fell 1.4%.

It's a sharp break from the recent trend. Until today, the S&P 500 had advanced every Tuesday this year except for two. Today, the index fell 0.9%.

The streak has been attributed to the Federal Reserve's bond buying program, mutual fund flows and trading algorithms. But at least one trader on StockTwits seemed skeptical that there was anything particularly special about Tuesday.

"$SPY Always up on Tuesday, nothing could possib-lie go wrong," read a post by NaveenB.

Another theory is that Tuesdays are merely a reversal of losses on Monday, though that was not the case this week. Stocks ended modestly higher yesterday, just days after the Dow hit an all-time high.

With the market at such lofty levels, investors seem skeptical about pushing stocks too high. The CNNMoney Fear and Greed index shows investors are still feeling fearful.

After the market closed, Disney (DIS, Fortune 500) released a blockbuster quarterly report, helped by strong gains in its studio entertainment division following the success of animated films such as "Frozen" and "Thor: The Dark World".

Groupon (GRPN) reported a larger-than-expected quarterly loss, sending its shares lower in extended trading.

Shares of Whole Foods Market (WFM, Fortune 500) plunged in extended trading after the organic grocery chain reported earnings that fell short of expectations and issued an outlook that disappointed investors.

Twitter (TWTR) shares led the plunge, hitting a new low as the "lock-up" period for company insiders to sell the stock expired. Under federal securities law, company founders and executives must wait six months before selling any shares following an initial public offering.

The stock ended just under $32 a share, down 18% for the day and the lowest trading price yet for the social media giant. Twitter, which priced its initial public offering in November at $26 a share, rose to a high above $74 in December.

"Must be gut wrenching to watch your insider shares plummet from 74 to 35 before you can sell them $TWTR #imaginaryweathvanished," read a post by LincolnList.

Other so-called momentum stocks, those that have rich valuations following big gains in the past year, were also taking a beating. Netflix (NFLX), TiripAdvisor (TRIP) and Amazon (AMZN, Fortune 500) were all down sharply.

Apple (AAPL, Fortune 500) shares fell back below $600 a share, one day after rising above that level for the first time since October 2012. The iPhone maker recently announced a stock split that will take place in early June. One trader was advising investors to take a bigger bite of Apple stock:

* Video - Apple stock is an iPhenomenon

"If you want to recover from your [$TWTR] losses, buy $AAPL: a real company," read a post by BlackBerril.

Related: Twitter is trending today on Wall Street, but for all the wrong reasons.

Tech stocks had a bad day overall.Netflix (NFLX) and Facebook (FB, Fortune 500) were the worst performers in the S&P 500 with Amazon (AMZN, Fortune 500)not far behind.

Drugmaker Merck (MRK, Fortune 500) announced that it will sell its consumer care business to Bayer AG for $14.2 billion. It was the latest in a recent spate of larger mergers in the pharmaceutical industry. Merck stock fell over 2% today.

Target (TGT, Fortune 500)continues to drop. Shares fell nearly 4% again today. Target's CEO announced he was stepping down yesterday, adding to concerns about the direction the company is headed.

DirecTV (DTV, Fortune 500) shares gained after the satellite TV company reported stronger-than-expected earnings, despite a quarterly slide in net profit year over year. It's one of the top performers in the S&P 500 today.

Office Depot (ODP, Fortune 500) shares surged a whopping 15.8% after the company reported solid earnings and plans to close 400 stores.

For the rest of the week, analysts say the biggest market moves will be testimony from Federal Reserve Chairman Janet Yellen on Wednesday, a meeting of the European Central Bank on Thursday, and ongoing tensions in Ukraine.

In Europe, investors were parsing through major bank earnings from UBS (UBS) and Barclays (BCS).

Credit Suisse (CS) was also in focus amid reports the bank could be hit with a criminal penalty as it negotiates with the U.S. government over charges it helped American clients avoid taxes.

Related: Feds wrestle with 'too big to jail' for Credit Suisse

European markets ended lower. Markets in Japan, South Korea and Hong Kong were closed Tuesday. But the other Asian markets made gains. To top of page

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4:10 pm: [BRIEFING.COM] Equity indices finished the Tuesday session on their lows after spending the entire day in negative territory. The S&P 500 tumbled 0.9% with nine sectors registering losses, while the Russell 2000 fell 1.6%, settling below its 200-day moving average for the first time since November 2012.

Stocks were pressured from the get-go as index futures slid to their pre-market lows ahead of the opening bell. While the early slide was not brought on by a particular news item, it served as a reflection of the defensive sentiment in the foreign exchange market where the yen rallied to its best level in three weeks. The dollar/yen pair notched a session low in the 101.50 area, before inching up to 101.65 into the close.

The cautious posture was also visible in the Treasury market as the 10-yr note climbed off its overnight low into the New York open and continued into the afternoon. As a result, the 10-yr note added four ticks, sending its yield lower by two basis points to 2.59%.

Once the session got going, dip-buyers tried to force a turnaround, but were unable to do so as some of the top-weighted sectors kept the pressure on the broader market.

Most notably, the financial sector (-1.4%) underperformed for the second consecutive day. Influential components like Bank of America (BAC 14.73, -0.35), Citigroup (C 46.36, -0.82), and JPMorgan Chase (JPM 53.34, -0.88) lost between 1.6% and 2.3%, while AIG (AIG 50.54, -2.18) plunged 4.1% after reporting a bottom-line beat on revenue that missed estimates.

Elsewhere, the discretionary sector (-1.4%) also posted a loss larger than 1.0% amid broad weakness. Retailers (XRT -1.7%) and homebuilders (ITB -2.0%) played a part in the underperformance, while Office Depot (ODP 4.83, +0.66) surged 15.8% after beating earnings estimates.

Also of note, the technology sector (-1.2%) held up a bit better than financials and discretionary shares, but was unable to stay out of the bottom third of today's leaderboard. Chipmakers, however, had a decent showing as the PHLX Semiconductor Index shed 0.4%.

Momentum names were not nearly as fortunate, with Facebook (FB 58.53, -2.69), LinkedIn (LNKD 142.33, -8.58), and Yelp (YELP 52.13, -8.06) diving between 4.4% and 13.4%, while Twitter (TWTR 31.85, -6.90) sank 17.8% on heaviest volume on record.

Just like momentum names, biotechnology lagged, sending the iShares Nasdaq Biotechnology ETF (IBB 229.33, -3.95) lower by 1.7%, while the health care sector ended in line with the broader market.

On the upside, the energy sector (+0.2%) posted a slim gain to extend its quarter-to-date advance to 5.7%.

Despite the daylong selling, participation was a bit below average as less than 690 million shares changed hands at the NYSE.

Today's economic data was limited to the March Trade Balance report:
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U.S. stocks close higher; Dow gains 87 points MarketWatch
Nasdaq, S&P 500 On Track For Sixth Straight Gain Investor's Business Daily
Quiet Session Intensifies As Stocks Hit Session Lows Investor's Business Daily

The U.S. trade deficit narrowed to $40.40 billion in March from a downwardly revised $41.90 billion (from $42.3 billion) in February, while the Briefing.com consensus expected the trade balance to decline to -$40.6 billion. The BEA assumed that the trade balance would increase to roughly $42.5 billion in the advance estimate to first quarter GDP. The lower-than-expected trade deficit should boost first quarter GDP growth in the second estimate. The goods deficit fell by $0.6 billion to $60.8 billion in March from $61.3 billion in February. The services surplus increased by $0.9 billion to $20.4 billion in March from $19.5 billion in February.

Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET, while Q1 Productivity and Unit Labor Costs will be announced at 8:30 ET. The day's data will be topped off with a 15:00 ET release of the March Consumer Credit report. Also of note, Fed Chair Janet Yellen will appear before the Joint Economic Committee at 10:00 ET.

S&P 500 +1.1% YTD
Dow Jones Industrial Average -1.1% YTD
Nasdaq Composite -2.3% YTD
Russell 2000 -4.6% YTD

3:35 pm: [BRIEFING.COM]

June gold chopped around slightly below the unchanged line today despite a weaker dollar index.
Economic data showed that the U.S. trade deficit narrowed to $40.40 bln in March from a downwardly revised $41.90 bln (from $42.3 bln) in February, while the Briefing.com consensus expected the trade balance to decline to -$40.6 bln. The yellow metal dipped to a session low of $1304.40 per ounce in morning action and eventually settled with a 0.1% loss at $1308.30 per ounce.
July silver, on the other hand, traded higher today. It brushed a session high of $19.70 per ounce in early morning action and consolidated near the $19.65 per ounce level for the remainder of the session. It settled with a 0.4% gain at $19.64 per ounce.
June crude oil pushed to a session high of $100.42 per barrel in morning action but gave up the gain in the last hour of pit trade. The energy component fell to a session low of $99.47 per barrel moments before settling at $99.52 per barrel, just 0.1% higher.
June natural gas trended higher after lifting from its session low of $4.74 per MMBtu. It held on to the momentum and settled 2.3% higher at $4.80 per MMBtu, just below its session high of $4.81 per MMBtu.

3:00 pm: [BRIEFING.COM] The S&P 500 trades lower by 0.7% with one hour remaining in the session. If the major averages hold their levels into the close, the benchmark index will surrender its quarterly gain and end the session with a quarter-to-date loss of 0.1%. The Dow Jones Industrial Average, meanwhile, is on pace to end the trading day with a 0.2% decline so far in the quarter.

However, indices that are comprised of a fair share of small and mid-cap names have had an even worse showing since the end of March. The Nasdaq Composite and Russell 2000 hold respective losses of 2.6% and 5.3% so far in the second quarter.

Treasuries enter the final hour of action just below their best levels of the day. The benchmark 10-yr yield is lower by two basis points at 2.59%.

2:30 pm: [BRIEFING.COM] The S&P 500 trades lower by 0.8%, while the Russell 2000 (-1.4%) continues lagging. Like the Russell, the Nasdaq Composite (-1.2%) remains in a position of relative weakness.

Biotechnology and other momentum names continue pressuring the Nasdaq as the iShares Nasdaq Biotechnology ETF (IBB 229.28, -4.00) trades down 1.7%, while the likes of Facebook (FB 59.31, -1.91), FireEye (FEYE 37.00, -3.23), LinkedIn (LNKD 143.87, -7.04), and Yelp (YELP 54.25, -5.94) display losses between 3.0% and 9.6%.

On the upside, the energy sector remains in the green, but has narrowed its advance to just 0.2%. Similarly, crude oil has slid from its high and now hovers just above its flat line at $99.53/bbl.

2:00 pm: [BRIEFING.COM] Recent action saw the major averages slide to fresh lows with the S&P 500 extending its decline to 0.7%. The move lower was not isolated to any particular sector as nine of ten groups retreated from their levels. The telecom services sector (-0.2%) was the lone exception as the smallest sector held its ground.

Heavily-weighted cyclical sectors, meanwhile, continue trailing the broader market. Consumer discretionary, financials, and technology are all down between 0.9% and 1.2%.

With stocks on lows, participants are showing demand for volatility protection as evidenced by a 2.9% increase in the CBOE Volatility Index (VIX 13.68, +0.39).

1:30 pm: [BRIEFING.COM] The major indices remain pinned near their lows for the day, held down by a relatively weak showing from the financial (-1.1%), consumer discretionary (-0.8%), and technology (-0.6%) sectors.

Notably, the three worst-performing sectors so far today are cyclical sectors. That underperformance is lining up with the weakness in the dollar and the Russell 2000 (-0.7%), and the modest gains in longer-dated Treasury securities, as a signpost that market participants aren't fully on board with the economic acceleration argument (at least not today anyway).

Fed Chair Janet Yellen will keep economic (and policy) matters front and center on Wednesday with her testimony before the Joint Economic Committee, which is slated to start at 10:00 a.m. ET.

Separately, the $29 bln 3-yr note auction drew a high yield of 0.928% and a strong 3.40x bid-to-cover ratio. The prior 12-auction average for the bid-to-cover ratio was 3.29.

12:55 pm: [BRIEFING.COM] The major averages hover near their lowest levels of the session at midday, with the Russell 2000 (-0.7%) leading the retreat after testing its 200-day moving average for the eight time since mid-April. The S&P 500 (-0.5%) trades a bit ahead of the small cap index, but the benchmark average also hovers near its low as nine of ten sectors display losses.

Stocks began the session in the red after index futures surrendered their slim overnight gains. The early retreat was not caused by a particular news catalyst, but instead was a reflection of the cautious posture in the foreign exchange market, where the Japanese yen climbed to a three-week high against the dollar. The dollar/yen pair remains not far from its session low of 101.51, while the Dollar Index (79.13, -0.35) holds a loss of 0.5%.

The defensive start was followed by a couple attempts at 'buying the dip,' but those efforts have proven futile so far due to a significant weakness among heavily-weighted sectors like consumer discretionary (-0.8%), financials (-1.0%), and technology (-0.5%).

Most notably, the financial sector lags amid weakness in some of its largest components. AIG (AIG 50.56, -2.16) trades down 4.1% after reporting a bottom-line beat on below-consensus revenue, while Bank of America (BAC 14.84, -0.24) and Citigroup (C 46.62, -0.55) are both down near 1.3%.

On the upside, the energy sector is higher by 0.6%, extending its quarter-to-date gain to 6.2%.

Treasuries hover just below their highs after climbing off their early morning lows. The benchmark 10-yr yield is lower by one basis point at 2.60%.

Today's economic data was limited to the March Trade Balance report:

The U.S. trade deficit narrowed to $40.40 billion in March from a downwardly revised $41.90 billion (from $42.3 billion) in February, while the Briefing.com consensus expected the trade balance to decline to -$40.6 billion. The BEA assumed that the trade balance would increase to roughly $42.5 billion in the advance estimate to first quarter GDP. The lower-than-expected trade deficit should boost first quarter GDP growth in the second estimate. The goods deficit fell by $0.6 billion to $60.8 billion in March from $61.3 billion in February. The services surplus increased by $0.9 billion to $20.4 billion in March from $19.5 billion in February.

12:30 pm: [BRIEFING.COM] The S&P 500 trades lower by 0.5% and the weakest sector of the day-financials (-1.1%)-has recently dropped to a fresh session low. Similarly, the consumer discretionary sector (-0.7%) has followed suit, while the energy sector has extended its advance to 0.5%.

The energy sector is the only group trading in the green, while crude oil trades up 0.8% at $100.24/bbl. Elsewhere, the other commodity-related group, materials (-0.1%), outperforms with a slim loss.

Also of note, with stocks unable to put together a sustained rebound, Treasuries have climbed to fresh session highs. The benchmark 10-yr yield is now lower by two basis points at 2.59%.

12:00 pm: [BRIEFING.COM] Equity indices remain near their recent levels with the S&P 500 trading lower by 0.3%. Meanwhile, the tech-heavy Nasdaq (-0.5%) lags amid weakness in momentum names like Facebook (FB 59.88, -1.34), Google (GOOGL 529.32, -6.01), LinkedIn (LNKD 146.06, -4.85), and Yelp (YELP 55.92, -4.27).

Biotechnology displayed relative strength earlier, but the group is now near its session low, which is also contributing to the underperformance of the Nasdaq Composite. The iShares Nasdaq Biotechnology ETF (IBB 231.80, -1.48) is lower by 0.6%, while the health care sector (+0.3%) trades in line with the broader market.

11:25 am: [BRIEFING.COM] Not much change in the major averages as they remain near their session lows. Dip-buyers made their presence known as the first hour drew to a close, but despite their efforts, the S&P 500 (-0.4%) has dropped to a fresh low over the past 30 minutes.

Yesterday, the benchmark index posted a slim gain, but the influential financials (-0.8%) sector ended in the red. Today, the second-largest group once again finds itself among the laggards. AIG (AIG 51.05, -1.67) holds a loss of 3.2% after beating earnings estimates on light revenue, while other major sector components like Bank of America (BAC 14.89, -0.19) and Citigroup (C 46.58, -0.59) are both down near 1.3%.

Including today's decline, the sector is lower by 0.7% year-to-date versus a 1.6% gain for the S&P 500.

11:00 am: [BRIEFING.COM] The S&P 500 trades lower by 0.5%, which puts it not far from its early low. The benchmark index has yet to find its way back into the green as three of four top-weighted sectors lag. Consumer discretionary, financials, and technology hold losses between 0.6% and 0.8%, while the health care sector (-0.3%) outperforms.

Also of note, the yen remains near its morning high, which is contributing to the cautious posture. The dollar/yen pair hovers near 101.63 after marking a session low just above 101.50.

Despite the relative weakness among equities, Treasuries are essentially unchanged from their levels at the start of the cash session. The benchmark 10-yr yield sits at 2.60%.

10:35 am: [BRIEFING.COM]

The dollar index has been in the red all day, but this hasn't provided much price support in commodities this morning
Natural gas futures have been in positive territory all day so far. After floor trading opened, buying interest increased and the energy componenet extended gains to as high as $4.79/MMBtu. June nat gas is now +1.9% at $4.78/MMBtu
June crude oil rallied about 30 min before floor trading began, but couldn't quick break above $100/barrel.
It put in a session high of $99.98/barrel and is now +0.2% at $99.63/barrel.
Gold futures have slowly slid lower today, while silver has been in a small consolidated pattern, not doing much.
June gold is currently -0.2% at $1306.20/oz, while July silver is +0.3% at $19.64/oz
July copper is currently +0.2% at $3.06/lb

9:55 am: [BRIEFING.COM] Equity indices remain in the red, but the Russell 2000 (-0.6%) has climbed off its lows after making yet another appearance near its 200-day moving average. Including its opening test of the key level, the Russell 2000 has crossed its 200-day moving average eight times since mid-April.

Elsewhere, the S&P 500 (-0.4%) remains less than two points above its session low with the financial sector (-0.7%) trailing the remaining groups.

Also of note, the dollar/yen pair continues trading near its session low that was notched about an hour ago. The Dollar Index, meanwhile, is lower by 0.5%.

9:45 am: [BRIEFING.COM] As expected, the major averages began the session on a lower note, with small caps leading the opening slide. The Russell 2000 trades lower by 1.0% while the S&P 500 holds a loss of 0.5% with eight sectors trading in the red.

The financial sector (-0.8%) lagged yesterday, and the group started today's session behind the remaining nine sectors, while other heavily-weighted sectors like consumer discretionary (-0.4%), health care (-0.5%), and technology (-0.5%) started the session with slimmer losses.

On the upside, energy (+0.4%) and utilities (+0.1%) trade modestly higher.

Treasuries continue holding gains with the 10-yr yield pegged at 2.60%.

9:10 am: [BRIEFING.COM] S&P futures vs fair value: -5.30. Nasdaq futures vs fair value: -8.50. The stock market is on track to begin today's session on a modestly lower note as index futures hover near their pre-market lows. The S&P 500 futures trade five points below fair value following a steady retreat that began around 3:30 ET when futures notched their highs.

There was no news responsible for the turn, but it is worth mentioning the recent weakness has been accompanied by another leg higher in the Japanese yen, which has been climbing since last evening. Currently, the dollar/yen pair hovers near 101.60 after trading above 102.10 at yesterday's closing bell.

Even though index futures signal a lower start, there are some names indicated to open higher. On that note, Forest Oil (FST 2.52, +0.72) has surged 40.2% after announcing a definitive merger agreement with Sabine Oil & Gas.

In other noteworthy pre-market movers, AIG (AIG 51.50, -1.22) is lower by 2.3% after beating earnings estimates on below-consensus revenue.

Treasuries hold slim gains with the benchmark 10-yr yield at 2.60%.

8:58 am: [BRIEFING.COM] S&P futures vs fair value: -6.20. Nasdaq futures vs fair value: -11.00. The S&P 500 futures trade six points below fair value.

In Asia, markets in Japan, Hong Kong, and South Korea were closed, while most other regional indices posted slim gains. In China, the Securities Regulatory Commission has received 30 more applications for IPO filings, increasing the total number of recent applications to more than 240.

Economic data was limited. The Reserve Bank of Australia made no changes to its policy, leaving its key interest rate unchanged at 2.50%. Separately, the trade surplus narrowed to $731 million from $1.26 billion ($1.20 billion expected) as exports fell 2.0% (prior 0.0%) and imports were unchanged (previous 1.0%). Elsewhere, India's HSBC Services PMI improved to 48.5 from 47.5.

Japan's Nikkei was closed for Greenery Day.
Hong Kong's Hang Seng was closed for Buddha's Birthday.
China's Shanghai Composite (+0.03%) ended flat after surrendering its intraday gain. Financials held up well with China Vanke climbing 0.7%.

Major European indices have slumped to lows during the past 30 minutes of action. Participants received several regional non-manufacturing PMI surveys today. Eurozone Retail Sales rose 0.3% month-over-month (consensus -0.2%, prior 0.1%), while the year-over-year reading increased 0.9% (forecast 1.0%, previous 1.0%). Separately, Services PMI held steady at 53.1, as expected. Germany's Services PMI fell to 54.7 from 55.0 (consensus 55.0). Great Britain's Services PMI increased to 58.7 from 57.6 (forecast 57.6). French Services PMI ticked up to 50.4 from 50.3 (consensus 50.3). Italy's Services PMI rose to 51.1 from 49.5 (expected 50.4). Spain's Services PMI jumped to 56.5 from 54.0 (forecast 54.4), while the unemployment count declined 111,600 (expected -49,100, previous -16,600).

Among news of note, with the Bank of England's policy statement coming up on Thursday, the British pound was boosted by reports suggesting BoE members will discuss interest rates at the upcoming meeting. The pound has climbed to 1.70, its best level since August 2009.

Great Britain's FTSE is lower by 0.5% as miners weigh. Anglo American, BHP Billiton, and Rio Tinto are all down between 1.6% and 1.9%. On the upside, Persimmon is higher by 3.5% after Barclays hiked its price target for the stock.
France's CAC holds a loss of 0.7% amid weakness in financials. AXA trades down 1.7% and Credit Agricole is lower by 1.1%. On the upside, utilities GDF Suez and Veolia Environnement are both up near 0.8%.
Germany's DAX is lower by 0.8% with exporters on the defensive. BMW, Daimler, and Volkswagen hold losses between 0.8% and 1.5%. Merck is little changed after selling its consumer unit to Bayer for $14.20 billion.

8:31 am: [BRIEFING.COM] S&P futures vs fair value: -4.40. Nasdaq futures vs fair value: -7.50. The S&P 500 futures trade four points below fair value.

The March trade deficit narrowed to $40.40 billion from $41.90 billion, while the Briefing.com consensus expected the deficit to come in at $40.60 billion.

7:56 am: [BRIEFING.COM] S&P futures vs fair value: -3.20. Nasdaq futures vs fair value: -6.50. U.S. equity futures trade flat amid cautious action overseas. The S&P 500 futures hover three points below fair value.

Reviewing overnight developments:

In Asia, China's Shanghai Composite +0.03%, Japan's Nikkei was closed for Greenery Day, and Hong Kong's Hang Seng was closed for Buddha's Birthday.
In economic data:
The Reserve Bank of Australia made no changes to its policy, leaving its key interest rate unchanged at 2.50%. Separately, the trade surplus narrowed to $731 million from $1.26 billion ($1.20 billion expected) as exports fell 2.0% (prior 0.0%) and imports were unchanged (previous 1.0%).
India's HSBC Services PMI improved to 48.5 from 47.5.
In news:
In China, the Securities Regulatory Commission has received 30 more applications for IPO filings, increasing the total number of recent applications to more than 240.

Major European indices trade little changed. France's CAC -0.2%, Germany's DAX -0.3%, and Great Britain's FTSE -0.3%. Elsewhere, Spain's IBEX +0.3% and Italy's MIB is flat.
Participants received several data points:
Eurozone Retail Sales rose 0.3% month-over-month (consensus -0.2%, prior 0.1%), while the year-over-year reading increased 0.9% (forecast 1.0%, previous 1.0%). Separately, Services PMI held steady at 53.1, as expected.
Germany's Services PMI fell to 54.7 from 55.0 (consensus 55.0).
Great Britain's Services PMI increased to 58.7 from 57.6 (forecast 57.6).
French Services PMI ticked up to 50.4 from 50.3 (consensus 50.3).
Italy's Services PMI rose to 51.1 from 49.5 (expected 50.4).
Spain's Services PMI jumped to 56.5 from 54.0 (forecast 54.4), while the unemployment count declined 111,600 (expected -49,100, previous -16,600).
Among news of note:
With the Bank of England's policy statement coming up on Thursday, the British pound was boosted by reports suggesting BoE members will discuss interest rates at the upcoming meeting. The pound has climbed to 1.70, its best level since August 2009.

In U.S. corporate news:

American International Group (AIG 51.25, -1.47): -2.8% after beating earnings estimates on below-consensus revenue.
Office Depot (ODP 4.51, +0.34): +8.2% after reporting a bottom-line beat on above-consensus revenue.
Mosaic (MOS 48.75, -0.96): -1.9% after missing earnings and revenue expectations.
UBS (UBS 21.15, +0.31): +1.5% following its bottom-line beat.
YY (YY 60.75, -1.21): -2.0% despite beating earnings and revenue estimates.

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

6:44 am: [BRIEFING.COM] S&P futures vs fair value: -1.00. Nasdaq futures vs fair value: +0.50.

6:44 am: [BRIEFING.COM] Nikkei...Holiday......... Hang Seng...Holiday.........

6:44 am: [BRIEFING.COM] FTSE...6811.68...-10.70...-0.20%. DAX...9534.36...+4.90...+0.10%.

U.S. Stocks Fall; Euro Gains With Pound on Economic Data

By Stephen Kirkland and Lu Wang May 6, 2014 5:04 PM ET

U.S. stocks fell for the third time in four days as American International Group Inc.’s profit disappointed investors and Twitter Inc. slumped. The euro and Spanish bonds gained on signs economies are strengthening.

The Standard & Poor’s 500 Index fell 0.9 percent at 4 p.m. in New York as AIG led financials lower. The Nasdaq Composite Index sank 1.4 percent while Twitter slid 18 percent and an exchange-traded fund tracking social media stocks slid to the lowest since July. Ten-year Treasury yields lost 1.5 basis points to 2.59 percent. The euro rose 0.4 percent versus the dollar while the pound added 0.7 percent. Spain’s 10-year yield fell to a record. Nickel and lead rose at least 0.9 percent.

Twitter sank as about 480 million shares from insiders became eligible for sale, more than quadrupling the amount available for trading. After financial markets closed in New York, Chinese Internet company Alibaba Group Holding Ltd. filed for what could become the largest U.S. initial public offering ever. The U.S. trade deficit narrowed as exports grew the most in nine months. Spanish jobless claims fell and services growth quickened in Germany, Italy and Ireland in April.

“It’s not a robust season,” Peter Tuz, who helps manage more than $450 million as president of Chase Investment Counsel Corp. in Charlottesville, Virginia, said by phone. “The market is going to be range bound without a clear trend until economic statistics point one way or another, and companies’ outlooks point one way or another.”

U.S. Stocks

U.S. stocks rose yesterday as an expansion in American service industries offset concern over growth in China and political tensions in Ukraine. The Dow Jones Industrial Average last week climbed to an all-time high, while the S&P 500 briefly rose above its record closing price.

Merck & Co., Pfizer Inc., Home Depot Inc. and JPMorgan Chase & Co. lost at least 1.6 percent to pace declines in 27 of the 30 stocks in the Dow today. AIG, the largest commercial insurer in the U.S. and Canada, slid 4.1 percent after saying profit declined 27 percent as claims costs climbed at the property-casualty business.

Twitter sank to $31.85, extending its 2014 loss to 50 percent. The stock sold for $26 in its initial public offering in November and closed as high as $73.31 in December.

Other Internet stocks were punished. Yelp Inc. slid 13 percent, the most since November 2012, while Pandora Media Inc. lost 8.9 percent after plunging 17 percent on April 25. LinkedIn Corp. decreased 5.7 percent while Facebook Inc. and Angie’s List Inc. fell more than 4 percent.

Social Media

Along with Twitter, those companies make up some of the biggest holdings in the Global X Social Media ETF, an exchange-traded fund listed on the Nasdaq Stock Market. That security declined 3.8 percent today, the sixth time in two weeks it has fallen more than 1 percent. It’s down 21 percent in 2014 after rising 64 percent last year.

David Einhorn, the hedge-fund manager who warned of a bubble in technology stocks two weeks ago, refined his stance by saying he’s bullish on the industry and that companies including Apple (AAPL) Inc. look underpriced.

The comments elaborate on an April 22 investor letter when he described an unjustified surge in technology stocks, reminiscent of the late 1990s, and said he was betting against a group of them. Einhorn’s holdings include investments in iPhone maker Apple, Micron Technology Inc. and Marvell Technology Group Ltd., which are “quite inexpensive,” he said on today’s call.

‘Momentum’

“However, we have identified a number of momentum technology stocks that have reached prices beyond any normal sense of valuation,” he said. “We believe that they are in a bubble and we have shorted a good number of them in what we call the ‘bubble basket.’”

There are dozens of companies in that group, he told Bloomberg Television’s Erik Schatzker and Stephanie Ruhle in an interview today, without providing specifics. The stocks are “completely out of control in terms of their valuation,” he said.

Three shares fell for every two that gained in the Stoxx Europe 600, with trading volumes 18 percent lower than the 30-day average, according to data compiled by Bloomberg. Stocks in the U.K. fell as the equity market reopened following a holiday.

Barclays, Britain’s second-biggest bank, fell 5.2 percent after saying pretax profit dropped 5 percent. Balfour Beatty Plc sank 20 percent after the chief executive officer of Britain’s biggest construction company quit.

Europe Equities

Fugro NV lost 7.2 percent after the deepwater-oilfield surveyor forecast its first-half profit margin dropped from the same period a year ago.

PostNL NV rallied 10 percent after the Dutch postal company reported an increase in underlying operating income.

The yield on 10-year Italian bonds slid four basis points to a record 3 percent. The rate on benchmark German bunds was little changed at 1.46 percent.

Spanish jobless claims fell 111,565 in April, the Labor Ministry in Madrid said today, exceeding the median estimate in a Bloomberg News survey for a drop of 51,000. A Purchasing Managers’ Index for services in the euro region rose to 53.1 last month from 52.2 in March, Markit Economics said. A gauge of employment in the U.K. services industry jumped to 56 from 53.5.

Better Data

“There’s better economic data out of Spain this morning,” said Rainer Guntermann, a fixed-income strategist at Commerzbank AG in Frankfurt. “Economic fundamentals in the peripheral countries are improving and that explains the rally here. This trend is not yet over.”

The Organization for Economic Cooperation and Development cut its global growth forecast as expansions in China and other emerging markets slow. The world economy will expand 3.4 percent this year instead of the 3.6 percent predicted in November, according to its semi-annual report today.

Ukraine’s efforts to regain ground from pro-Russian militants in eastern cities were undermined as insurgents killed four government troops and downed a military helicopter.

Efforts by Ukraine’s government to expel insurgents from the easternmost regions are at risk of stalling before a May 25 presidential election. German Chancellor Angela Merkel and U.S. President Barack Obama have set the vote as a deadline for Russia to reject the separatists’ actions and withdraw support or possibly face deeper economic sanctions.

Russia is convinced that Ukraine has a way out of the crisis, Foreign Minister Sergei Lavrov said today.

Russia Index

Stocks advanced for the first time in three days in Moscow, with the Micex Index (INDEXCF) climbing 1.6 percent. The ruble gained 0.9 percent against the dollar. Ukraine’s hryvnia slipped 1.4 percent while the equity gauge was little changed.

The S&P GSCI gauge of 24 commodities increased less than 0.1 percent. Nickel jumped 33 percent this year as Indonesia banned exports of unrefined ore. Lead dropped about 5 percent this year.

U.K. natural gas fell 3 percent to 45.75 pence per therm today amid forecasts for warm weather. The high temperature in London will be 19 degrees Celsius (66 Fahrenheit) today, 3 degrees above normal, according to AccuWeather Inc. in State College, Pennsylvania.

To contact the reporters on this story: Stephen Kirkland in London at skirkland@bloomberg.net; Lu Wang in New York at lwang8@bloomberg.net

To contact the editors responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net Jeremy Herron, Michael P. Regan

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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