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 Post subject: May 8th Thursday Trade Results - Profit $2650.00
PostPosted: Fri May 09, 2014 1:21 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 @ $2,650.00 dollars or +26.50 points, Emini ES ($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 @ $2,650.00 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=1788

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.

Stocks: Investors Run To Blue Chips

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

NEW YORK (CNNMoney)
Investors appear to have one main thought this week: Put money in steady, stable companies.

The Dow finished higher again today while the S&P 500 and Nasdaq flipped negative after teetering between modest gains and losses for most of the day. It was the second day in a row that the Dow was up and the Nasdaq was down.

The Dow jumped this morning after Federal Reserve chair Janet Yellen reiterated her commitment to keep interest rates low until the economy is on firmer footing. She made her comments when appearing before the Senate Budget Committee. It was more or less an encore of her remarks yesterday to the Joint Economic Committee of Congress.

There's ongiong pressure on Wall Street on so-called momentum stocks, especially tech. The Nasdaq peaked in March and has been mostly headed lower since.

Shares of Tesla (TSLA) sank over 11% in volatile trading Thursday. The company's earnings beat expectations Wednesday, but Tesla forecast that expenses will continue to rise as it expands into China, develops its next vehicle and breaks ground on a new factory.

"$TSLA Running out of people who can afford to buy their expensive cars," said TexanGal on StockTwits. Only so many millionaire hippies in the world."

Still, StockTwits trader humble747 likes Tesla's long-term prospects.

"$TSLA like company as story of fast & bright-light future growth and the story of the innovation, " she said.

While Tesla CEO Elon Musk probably isn't too thrilled about the the luxury automaker's stock performance Thursday, the sun is still shining for SolarCity (SCTY), the company in which he serves as chairman.

The solar panel maker surged more than 12% after it beat earnings estimates and subsequently received a series of analyst upgrades.

"$SCTY, no reason to even think about selling anytime soon," said StockTwits user joshadams.

"$SCTY I love buying stock in companies whose operating model and growth potential is misunderstood and undervalued," said rkmatters on StockTwits. "This is one of them."

Related: Are stocks overpriced? A bull and bear weigh in

The Keurig Green Mountain (GMCR) coffee machine is on overdrive. Shares spiked 13% after the company posted double-digit sales and earnings growth for the first quarter. The company also announced the expansion of its partnership with the J.M. Smucker Company (SJM, Fortune 500). The deal makes Smucker's coffee brands such as Folgers available in Keurig products and brewing systems.

Other popular stocks popping today include 21st Century Fox (FOXA), which rose 6.5% after its earnings beat analyst forecasts. The company experienced a bump in revenue from its cable network programming. It's the parent company of Fox and Sky TV.

Tiffany& Co (TIF) shares had some extra glow today after the luxury retailer got a "buy" rating from Bank of America Merrill Lynch. The stock ended the day 2.5% higher.

The Wall Street reception wasn't so good for Dish Network (DISH, Fortune 500), which dropped 4%. The company reported lower profit for the first quarter and said television subscribers were added at a slower pace than the same period last year.

Barclays (BCS) rose 8% London trading after the bank said it would cut 19,000 jobs over the next three years and trim its investment banking division.

Related: Barclays to shed 19,000 jobs over three years

European markets finished higher and nearly all Asian markets closed with gains.

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4:15 pm: [BRIEFING.COM] The stock market ended the Thursday session on a defensive note despite showing early strength. The S&P 500 lost 0.1%, while the tech-heavy Nasdaq (-0.4%) fell nearly 60 points from its session high. Also of note, the Russell 2000 (-1.0%) settled below its 200-day moving average after failing to retake that level during the session.

Today's affair proved to be a bit of a rollercoaster ride as equities grinded higher in the morning, but rolled to fresh lows during the afternoon before climbing off those lows into the close. Fittingly, the areas that fueled the early advance (biotechnology and high-growth names) were the same spots that paced the afternoon slide.

Equity indices climbed through the first 90 minutes of action with the four top-weighted sectors setting the pace. Consumer discretionary (+0.3%), financials (+0.2%), and technology (+0.1%) continued their outperformance throughout the session, while the health care sector (-0.5%) swung from a position of relative strength to that of weakness when biotechnology reversed from its session high. The iShares Nasdaq Biotechnology ETF (IBB 223.35, -4.13) lost 1.8%, ending just above its 200-day moving average (223.00) after being up as much as 1.6% during the first half of action.

Elsewhere, momentum names like Facebook (FB 56.76, -0.63), FireEye (FEYE 27.45, -1.20), LinkedIn (LNKD 145.07, +1.70), and Yelp (YELP 53.29, +0.55) gave an early boost to the technology sector before sliding into the close. Facebook and FireEye ended lower, while LinkedIn and Yelp gave up a good portion of their early gains. Similarly, consumer discretionary components Netflix (NFLX 321.66, +1.12) and Priceline.com (PCLN 1108.00, -23.74) also slumped from their intraday highs. Shares of Priceline.com could not stay out of the red as the company's cautious guidance overshadowed its earnings beat.

Staying on the momentum/earnings theme, Tesla (TSLA 178.59, -22.76) tumbled 11.3% following its quarterly report that featured a bottom-line beat on deliveries that were on the low end of analyst estimates.

Once again, the underperformance of high-beta names took place against the backdrop of relative strength among blue chip issues. The price-weighted Dow Jones Industrial Average eked out a modest gain of 0.2%, narrowing its week-to-date advance to 0.2% versus a 2.7% drop for the Russell 2000 since last Friday.

Even though equities did not display weakness until the afternoon, the foreign exchange market was signaling caution for the better part of the day. Specifically, the Japanese yen surged to a session high less than an hour after the New York open and continued inching higher into the afternoon. The dollar/yen pair dove into the 101.55 area, ending the session just above yesterday's low of 101.44.

Similarly, Treasuries jumped to highs in the morning, but fell from those levels in reaction to a dismal 30-yr auction that saw a below-average bid/cover ratio of 2.09x (12-auction average 2.39x). Despite the early-afternoon dive, the 10-yr note ended in the green, adding one tick with its yield at 2.61%.

The intraday reversal did not invite unusually strong participation as less than 700 million shares changed hands at the NYSE.

Economic data was limited to just one report:
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The initial claims level fell to 319,000 for the week ending May 3 from an upwardly revised 345,000 (from 344,000) for the week ending April 26. The Briefing.com consensus expected the initial claims level to fall to 325,000. As expected, the recent volatility surrounding the Easter holiday period is coming to an end. Initial claims are likely to stabilize between 320,000 and 330,000 as labor conditions improve moderately. The continuing claims level fell to 2.685 mln for the week ending April 26 from a downwardly revised 2.761 mln (from 2.771 mln) for the week ending April 19, while the consensus expected a decline to 2.750 mln.

Tomorrow, the Wholesale Inventories report for March and the March Jobs Openings and Labor Turnover Survey will both be released at 10:00 ET.

S&P 500 +1.5% YTD
Dow Jones Industrial Average -0.2% YTD
Nasdaq Composite -3.0% YTD
Russell 2000 -5.5% YTD

3:30 pm: [BRIEFING.COM]

June gold chopped around near the unchanged line today as the dollar index showed gains. It brushed a session low of $1284.80 per ounce in morning action and eventually settled with a 0.1% loss at $1288.00 per ounce.
July silver trended lower after pulling back from its session high of $19.34 per ounce set in early morning action. It brushed a session low of $19.13 per ounce moments before settling at $19.15 per ounce, or 1.0% lower.
June crude oil traded in the red, dipping to a session low of $99.85 per barrel in morning action. It eventually settled with a 0.5% loss at $100.24 per barrel.
June natural gas sold off sharply following inventory data that showed a build of 74 bcf when a build of 71-73 bcf was anticipated. It touched a session low of $4.56 per MMBtu in afternoon action after trading as high as $4.72 per MMBtu in morning pit trade. Unable to regain momentum, it settled with a 3.6% loss at $4.57 per MMBtu.

3:00 pm: [BRIEFING.COM] The S&P 500 (-0.3%) trades at a fresh low with one hour remaining in the session. Meanwhile, the Nasdaq (-0.4%) is now down roughly 60 points from its session high. Also of note, the Russell 2000 (-0.8%) has distanced itself from its 200-day moving average after an unsuccessful attempt at reclaiming that key level earlier today.

The drop to fresh lows occurred as just about every sector retreated, while the utilities space (-1.2%) held its ground. The selloff pressured the iShares Nasdaq Biotechnology ETF (IBB 223.96, -3.52) to a fresh session low, putting the ETF within a point of its 200-day moving average (222.99).

2:25 pm: [BRIEFING.COM] Recent action saw the Nasdaq (-0.1%) and S&P 500 join the Russell 2000 (-0.5%) in the red. As a result of the recent retreat, four sectors now trade in negative territory. The two groups that have lagged since the open-energy and utilities-have extended their losses to 1.0% and 1.2%, respectively, while the health care sector is now down 0.4%.

Also of note, the industrial sector has returned to its flat line even as transports continue exhibiting relative strength. The Dow Jones Transportation Average is higher by 0.4% with 15 of its 20 components showing gains. Expeditors International (EXPD 43.54, +2.00) is the top performing component, trading higher by 4.8% after reporting a one-cent beat on revenue that was in line with expectations.

With the S&P 500 back in the red, participants are seeking downside protection. The CBOE Volatility Index (VIX 13.48, +0.08) is higher by 0.6%.

2:00 pm: [BRIEFING.COM] The S&P 500 (+0.2%) continues trading in the middle of its range after slipping from its best level of the session. The recent retreat was brought on by weakness in biotechnology and momentum names, which are two areas that underpinned the early advance.

The iShares Nasdaq Biotechnology ETF (IBB 226.69, -0.79) is now lower by 0.4% after being up as much as 1.6% earlier today. The biotech ETF has hovered around its 200-day moving average (223.01) for the past month and currently trades just above that noteworthy level.

Elsewhere, the tech sector held a gain close to 1.0% earlier, but has now trimmed that advance to 0.4%.

1:25 pm: [BRIEFING.COM] The S&P 500 has made a good run of it today, yet its jog higher has run into some technical resistance just below the all-time closing high of 1890.90. Today's high was 1889.07.

Relative strength in the financial (+0.5%), consumer discretionary (+0.8%), and technology (+0.5%) sectors has been an important source of support. There has been some selling interest in the past hour or so that has knocked each of the major indices off their session highs. Strikingly, the Russell 2000, which has been the worst performing of the major averages this year (-4.5%), has given back most of an earlier 1.0% gain as it fights to reclaim a posture above its 200-day moving average (1114.89).

In other developments, the Treasury market has also been knocked off its best levels of the day following a disappointing $16 bln 30-yr bond auction.

The latter drew a high yield of 3.44% on a weak bid-to-cover ratio of 2.09 that compared poorly to the prior 12-auction average of 2.39. Even so, the Treasury market still hasn't buckled fully to selling interest as modest gains are seen across the yield curve with the exception of the 30-yr bond (-9/32, 3.419%).

12:55 pm: [BRIEFING.COM] The major averages hover near their best levels of the session at midday. The S&P 500 trades higher by 0.4% with eight sectors showing gains, while the Nasdaq (+0.7%) outperforms.

Equities started the day on the defensive, but reversed from their lows during the first 15 minutes of action as many of the names that struggled yesterday rebounded. That dynamic was apparent within the Nasdaq as biotechnology and momentum names rallied.

The iShares Nasdaq Biotechnology ETF (IBB 227.58, +0.10) is higher by just 0.1%, after giving up a good portion of its early gain. Similarly, the health care sector has trimmed its advance to 0.1%. However, the recent downtick in health care has not had much effect on the broader market as other influential sectors like consumer discretionary (+0.9%), financials (+0.7%), and technology (+0.7%) remain near their best levels of the session.

Momentum names have given a boost to the technology sector as evidenced by solid gains in shares of Facebook (FB 57.95, +0.56), LinkedIn (LNKD 146.47, +3.10), Yelp (YELP 54.56, +1.82) and Twitter (TWTR 32.30, +1.64). Furthermore, Twitter and Yelp have also drawn strength from analyst commentary after Morgan Stanley upgraded both listings this morning.

On the flip side, only two sectors trade in the red and their weakness has not mattered much for the broader market. Only one group trading lower-energy (-0.7%)-accounts for a significant portion of the market (10.0%), while the other decliner-utilities (-1.0%)-represents just 3.0% of the entire S&P 500.

Interestingly, they key indices sit near their best levels of the session while Treasuries also trade near their highs, suggesting the conviction in today's equity rally may be somewhat lacking. The 10-yr note is higher by eight ticks with its yield down three basis points at 2.59%.

Also of note, the sentiment in the foreign exchange market has been a bit more aligned with the cautious posture among Treasuries rather than the bullish disposition of equities. The Japanese yen hovers at its best level of the session with the dollar/yen pair near 101.60.

Economic data was limited to just one report:

The initial claims level fell to 319,000 for the week ending May 3 from an upwardly revised 345,000 (from 344,000) for the week ending April 26. The Briefing.com consensus expected the initial claims level to fall to 325,000. As expected, the recent volatility surrounding the Easter holiday period is coming to an end. Initial claims are likely to stabilize between 320,000 and 330,000 as labor conditions improve moderately. The continuing claims level fell to 2.685 mln for the week ending April 26 from a downwardly revised 2.761 mln (from 2.771 mln) for the week ending April 19, while the consensus expected a decline to 2.750 mln.

12:30 pm: [BRIEFING.COM] The Dow, Nasdaq, and S&P 500 continue holding their recent levels, while the Russell 2000 (-0.4%) has taken a step back from its session high. Normally, a slight retreat in the Russell would not qualify as cause for concern, but with Treasuries remaining at their best levels of the day, a downtick in the Russell 2000 could be warning of impending weakness.

The S&P 500, however, continues exhibiting bullish enthusiasm with eight sectors trading in the green. Top-weighted consumer discretionary (+1.1%), financials (+0.6%) and technology (+1.0%) sectors sit at their best levels of the day, while health care (+0.2%) has given up the bulk of its advance over the past 30 minutes.

12:00 pm: [BRIEFING.COM] Not much change in the major averages as they remain supported by the relative strength of influential sectors like consumer discretionary (+1.2%), financials (+0.6%), health care (+0.5%), and technology (+1.0%).

To be fair, there isn't too much weakness in other areas as only two sectors hover in the red. Furthermore, only one group trading lower-energy (-0.7%)-accounts for a significant portion of the broader market (10.0%), while the other decliner-utilities (-0.7%)-represents just 3.0% of the entire S&P 500.

Interestingly, the strength in equities has not lured participants away from the Treasury market. The 10-yr note remains at its session high with its yield down four basis points at 2.59%.

11:30 am: [BRIEFING.COM] The S&P 500 (+0.4%) has returned to its earlier high, while the Nasdaq (+0.9%) has climbed to a fresh session best.

The tech-heavy Nasdaq was unable to keep pace with the broader market yesterday, but is doing its best to make up lost ground today. A rebound in momentum names has contributed to the relative strength of the index as Facebook (FB 58.48, +1.09), LinkedIn (LNKD 149.52, +6.15), and Yelp (YELP 55.37, +2.63) hold gains between 1.9% and 4.8%. On the flip side, Tesla (TSLA 188.65, -12.70) is lower by 6.3% after reporting earnings. The car maker beat estimates, but its deliveries were on the low end of analyst expectations.

Elsewhere, biotechnology is also playing a part in the outperformance of the Nasdaq. The iShares Nasdaq Biotechnology ETF (IBB 229.91, +2.43) is higher by 1.1%.

10:55 am: [BRIEFING.COM] Equity indices remain near their best levels of the session, but Treasuries and the foreign exchange market have shown some risk aversion over the past 30 minutes.

The benchmark 10-yr note is now at its session high, trading up eight ticks with its yield down three basis points at 2.59%. Elsewhere, the Japanese yen has climbed to its best level of the session, sending the dollar/yen pair into the 101.60 area.

Despite the cautious posture exhibited by the currency and Treasury markets, the S&P 500 remains just three points below its session high. The index has received significant support from some of the largest sectors as consumer discretionary, financials, health care, and technology display gains between 0.4% and 0.7%.

10:35 am: [BRIEFING.COM]

The dollar index rallied this morning, which pressured commodities
Crude oil has been sliding lower today and fell as low as $99.87/barrel (June) this morning. June crude is now -0.6% at $100.21/barrel.
Natural gas sold off ahead of the open of pit trading and dropped to a new session low just ahead of today's weekly EIA inventory data
June nat gas is now -0.2% at $24.64/MMBtu.
Gold and silver sold off this morning, hitting new lows for the day shortly after pit trading began.
June gold is now +0.03% at $1289.40/oz, while May silver is -0.5% at $19.24/oz
July copper rallied this morning and remains just below its HoD and is now +1% at $3.06/lb

9:55 am: [BRIEFING.COM] The S&P 500 trades higher by 0.3% after erasing its early loss with help from most sectors. Of the eight groups that are trading in the green at this juncture, four-consumer discretionary (+0.7%), industrials (+0.4%), financials (+0.4%), and telecom services (+2.0%)-display gains larger than the broader market.

On the downside, yesterday's leaders-energy (-0.2%) and utilities (-0.3%)-are among the early underperformers.

On a separate note, the euro has continued its retreat that began after ECB President Mario Draghi said the central bank is ready to act next month 'if needed.' The single currency now hovers at its session low, near 1.3875 versus the dollar.

9:45 am: [BRIEFING.COM] The stock market began the session on a cautious note, but the major averages were able to climb off their early lows.

The S&P 500 trades higher by 0.2% with seven sectors showing gains. The consumer discretionary sector (+0.5%) is the top performer among influential groups, while energy (-0.1%) hovers in the red.

Treasuries continue showing slim gains with the 10-yr yield down basis point at 2.61%.

9:16 am: [BRIEFING.COM] S&P futures vs fair value: -2.60. Nasdaq futures vs fair value: -15.00. The major averages are on pace to begin today's session on a cautious note. The S&P 500 futures trade three points below fair value with the bulk of the retreat taking place after the European Central Bank announced no changes to its policy stance. The central bank kept its main refinancing rate at 0.25%, but ECB President Mario Draghi said the bank is ready to act in June "if needed." That last statement boosted European markets (and index futures) off their lows while pressuring the euro from its session high of 1.3992 that was reached after the initial rate announcement.

Domestically, economic data was limited to the weekly initial claims count, which fell to 319,000 from an upwardly revised 345,000 (from 344,000). The Briefing.com consensus expected the initial claims level to fall to 325,000. As expected, the recent volatility surrounding the Easter holiday period appears to be coming to an end. Initial claims are likely to stabilize between 320,000 and 330,000 as labor conditions improve moderately.

Treasuries hover near their highs with the 10-yr yield off one basis point at 2.61%.

9:01 am: [BRIEFING.COM] S&P futures vs fair value: -2.40. Nasdaq futures vs fair value: -15.50. The S&P 500 futures trade two points below fair value.

Most Asian markets finished higher after the release of upbeat data from Australia and China.

China's trade surplus expanded to $18.45 billion from $7.71 billion (expected surplus of $13.90 billion) as exports rose 0.9% year-over-year (expected -1.7%, previous -6.6%) and imports increased 0.8% (consensus -2.3%, prior -11.3%).
Australia's Employment Change came in at 14,200 (expected 6,800, previous 22,000), while the Unemployment Rate held steady at 5.8% (expected 5.9%).
Bank Indonesia held its key interest rate unchanged at 7.5%, as expected.

Also of note, Vietnam's Ho Chi Minh Index (-5.9%) saw its largest one-day drop in 13 years amid an increase in tensions between China and Vietnam in the South China Sea.

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Japan's Nikkei rallied 0.9% with support from growth-sensitive names. Nisshin Steel surged 14.9% after reporting strong results, while Furukawa and Showa Deno both gained near 4.0%.
Hong Kong's Hang Seng added 0.4%, settling in the middle of its range. Telecom names outperformed, while property listings lagged. China Mobile and China Unicom Hong Kong both added near 3.0%. On the downside, China Resources Land and New World Development fell 2.3% and 2.0%, respectively.
China's Shanghai Composite tacked on 0.3%, but surrendered the bulk of its gain into the close. Huayuan Property surged the limit 10.0%, while consumer names lagged. Huafang Textile tumbled 9.0%.

Major European indices trade higher across the board. The European Central Bank left its main refinancing rate unchanged at 0.25%, as expected. The announcement boosted the euro, sending the single currency into the 1.3985 area against the U.S. dollar, but the pair reversed from highs after ECB President Draghi said the central bank is ready to act in June "if needed." Elsewhere, the Bank of England also maintained its policy stance, keeping its key rate and the purchasing program at their respective 0.5% and GBP375 billion.

In news from Ukraine, the councils of Donetsk and Lugansk chose to go forward with the independence referendums scheduled for May 11. Participants received several data points today.

Great Britain's Halifax House Price Index slipped 0.2% month-over-month (consensus 0.9%, previous -1.2%), while the year-over-year reading rose 8.5% (expected 9.1%, prior 8.7%).
Germany's Industrial Production fell 0.5% month-over-month (expected 0.2%, prior 0.6%).
Spain's Industrial Production ticked up 0.6% year-over-year (consensus 1.7%, previous 2.5%).
Swiss CPI increased 0.1% month-over-month (expected 0.1%, previous 0.4%), while the year-over-year reading was flat (consensus 0.1%, prior 0.0%). Also of note SECO Consumer Climate slipped to 1 from 2 (expected 3).

------

Germany's DAX is higher by 0.4%. Most financials are on the defensive, while utilities outperform. Allianz, Commerzbank, and Muenchener Re are down between 1.9% and 3.4%, while E.ON and RWE are up close to 1.2% apiece.
Great Britain's FTSE trades up 0.4%. Barclays leads with a gain of 5.8% after announcing its restructuring plan. On the downside, software company Sage Group is the weakest performer, down 5.9%.
France's CAC holds an advance of 0.6%. Steelmaker ArcelorMittal outperforms with a gain of 1.3%. On the downside, defense contractors lag with Airbus Group and Safran down 0.8% and 0.5%, respectively.

8:32 am: [BRIEFING.COM] S&P futures vs fair value: -0.40. Nasdaq futures vs fair value: -8.00. The S&P 500 futures trade less than a point below fair value.

The latest weekly initial jobless claims count totaled 319,000, which was lower than the 325,000 that had been expected by the Briefing.com consensus. Today's tally was below the revised prior week count of 345,000 (from 344,000). As for continuing claims, they fell to 2.685 million from 2.761 million.

7:57 am: [BRIEFING.COM] S&P futures vs fair value: -0.50. Nasdaq futures vs fair value: -5.30. U.S. equity futures trade little changed amid upbeat action overseas. The S&P 500 futures hover within a point of fair value.

Reviewing overnight developments:

Asian markets ended higher. China's Shanghai Composite +0.3%, Hong Kong's Hang Seng +0.4%, and Japan's Nikkei +0.9%.
In economic data:
China's trade surplus expanded to $18.45 billion from $7.71 billion (expected surplus of $13.90 billion) as exports rose 0.9% year-over-year (expected -1.7%, previous -6.6%) and imports increased 0.8% (consensus -2.3%, prior -11.3%).
Australia's Employment Change came in at 14,200 (expected 6,800, previous 22,000), while the Unemployment Rate held steady at 5.8% (expected 5.9%).
Bank Indonesia held its key interest rate unchanged at 7.5%, as expected.
In news:
Australia's solid employment report and China's above-consensus trade data boosted the overnight risk appetite. The Australian dollar climbed following the data and now trades near 0.9385 versus the U.S. dollar (+0.6%).

Major European indices trade higher across the board. Germany's DAX +0.2%, Great Britain's FTSE +0.4%, and France's CAC +0.4%. Elsewhere, Italy's MIB +1.2% and Spain's IBEX +0.5%.
Participants received several data points:
The European Central Bank left its main refinancing rate unchanged at 0.25%, as expected.
The Bank of England also maintained its policy stance, keeping its key rate and the purchasing program at their respective 0.5% and GBP375 billion. Separately, Halifax House Price Index slipped 0.2% month-over-month (consensus 0.9%, previous -1.2%), while the year-over-year reading rose 8.5% (expected 9.1%, prior 8.7%).
Germany's Industrial Production fell 0.5% month-over-month (expected 0.2%, prior 0.6%).
Spain's Industrial Production ticked up 0.6% year-over-year (consensus 1.7%, previous 2.5%).
Swiss CPI increased 0.1% month-over-month (expected 0.1%, previous 0.4%), while the year-over-year reading was flat (consensus 0.1%, prior 0.0%). Also of note SECO Consumer Climate slipped to 1 from 2 (expected 3).
Among news of note:
In Ukraine, the councils of Donetsk and Lugansk chose to go forward with the independence referendums scheduled for May 11.
The ECB decision to hold steady sent the euro to into the 1.3950 area against the dollar.

In U.S. corporate news:

JA Solar (JASO 10.40, +0.55): +5.6% after beating estimates
Molycorp (MCP 4.00, -0.55): -12.1% following its disappointing earnings and revenue.
SolarCity (SCTY 52.40, +4.69): +9.3% after beating on earnings and revenue and guiding Q2 earnings below consensus.
Priceline.com (PCLN 1154.95, +23.21): +2.1% after beating earnings estimates on in-line revenue. Also of note, the company guided Q2 earnings below estimates.
Regeneron Pharmaceuticals (REGN 282.75, -3.91): -1.4% after missing earnings estimates on above-consensus revenue.
Tesla (TSLA 183.66, -17.69): -8.8% after the company's disappointing deliveries overshadowed its earnings beat on better than expected revenue.
Wendy's (WEN 8.90, +0.57): +6.8% after beating on earnings and revenue.

Weekly initial claims (Briefing.com consensus 325,000) will be announced at 8:30 ET.

6:49 am: [BRIEFING.COM] S&P futures vs fair value: +2.00. Nasdaq futures vs fair value: flat.

6:49 am: [BRIEFING.COM] Nikkei...14163.78...+130.30...+0.90%. Hang Seng...21837.12...+90.90...+0.40%.

6:49 am: [BRIEFING.COM] FTSE...6826.74...+30.30...+0.40%. DAX...9564.88...+43.80...+0.50%.

Gold Futures Decline for Third Day as Equities Advance

By Debarati Roy May 8, 2014 3:20 PM ET

Gold futures declined for a third straight day as gains in equities curb demand for the precious metal as an alternative investment.

The Dow Jones Industrial Average (INDU) rose as much as 0.6 percent, near a record reached last month, before the close of gold trading in New York. Gold slumped 28 percent last year amid a rally in equities and as inflation remained low.

“The strength in equities is working against gold,” Phil Streible, a senior commodity broker at R.J. O’Brien & Associates in Chicago, said in a telephone interview. “There is very little interest in gold.”

Gold futures for June delivery fell 0.1 percent to settle at $1,287.70 an ounce at 1:34 p.m. on the Comex in New York. Prices declined 1.6 percent in the previous two sessions. Trading was 13 percent below the average for the past 100 days for this time, data compiled by Bloomberg showed.

Bullion has gained 7.1 percent this year, partly as tension over Ukraine spurred demand for haven assets. Russian President Vladimir Putin said his country’s army is testing its combat readiness, ramping up tensions after he pledged a pullback from Ukraine’s border. Pro-Russian separatists in Ukraine vowed to press ahead with autonomy votes.

“Safe-haven buying has dominated jittery gold trading since early April amid a lack of other drivers,” Andrey Kryuchenkov, an analyst at VTB Capital in London, wrote today in a report. Prices declines are “likely, should matters de-escalate from here,” he said.

U.S. Stimulus

Gold rose 70 percent from December 2008 to June 2011 as the Federal Reserve bought debt and cut interest rates to a record in a bid to boost the economy. Fed officials trimmed stimulus last week for the fourth consecutive meeting and are on track to halt buying in the second half of 2014.

“Sufficient underlying strength” made the reductions “appropriate,” Fed Chair Janet Yellen said yesterday at a hearing of the congressional Joint Economic Committee.

Silver futures for July delivery fell 1.1 percent $19.138 an ounce in New York.

On the New York Mercantile Exchange, palladium futures for June delivery rose 0.9 percent to $804.05 an ounce. Prices on May 6 reached $822, the highest since August 2011, and are up 12 percent this year on concern supply will be disrupted by a miners’ strike in South Africa and sanctions by western nations against Russia. The two countries are the biggest producers. Holdings of the metal in exchange-traded products rose 2.4 percent to a record 84 metric tons yesterday, data compiled by Bloomberg show.

Platinum futures for July delivery gained 0.2 percent to $1,438.10 an ounce.

To contact the reporter on this story: Debarati Roy in New York at droy5@bloomberg.net

To contact the editors responsible for this story: Millie Munshi at mmunshi@bloomberg.net Joe Richter, Steve Stroth

Draghi Says See You in June as ECB Clears Deck for Easing

By Stefan Riecher May 8, 2014 12:24 PM ET

Mario Draghi has primed investors for action next month.

With the threat of deflation still stalking euro-area economies that are barely out of recession, the European Central Bank president all but committed himself to providing further stimulus at June’s monetary policy meeting.

After keeping rates at record lows today, Draghi told reporters that the 24-member Governing Council is “comfortable with acting next time.” He underscored that position with comments showing a heightened concern that a rising euro will depress prices and derail the recovery.

“I don’t see how Draghi can escape some kind of action after this pre-commitment,” said Frederik Ducrozet, an economist at Credit Agricole SA in Paris. “He might surprise us with the type of action he takes; not with the timing any more.”

Draghi’s remarks sent the euro and money-market rates plunging as investors bet the ECB will deliver on its long-standing pledge to act if needed. The comments were reminiscent of his predecessor, Jean-Claude Trichet, who typically signaled rate increases, though not reductions, a month in advance using the phrase “strong vigilance.”

“One might suggest that there is an ostensible drift back to the old days of Trichet-style communication,” said Marc Ostwald, strategist at Monument Securities Ltd. in London. “It is now nigh on impossible for the ECB not to act in June.”

Euro Concern

While Draghi gave no sign that the radical option of quantitative easing is imminent, the path of the euro and new economic forecasts next month may provide the rationale for the unprecedented step of negative interest rates.

“The strengthening of the exchange rate in the context of low inflation is cause for serious concern,” Draghi said in Brussels. Policy makers want to see the ECB’s staff economic projections, scheduled to be released after the June 5 rate meeting, before making a final decision, he said.

The euro fell from a 2 1/2 year high, dropping to as low as $1.3849 from $1.3993. It was at $1.3868 at 6:13 p.m. Frankfurt time. Overnight interbank borrowing costs declined, making the forward curve the most inverted since December 2011.

The ECB left its benchmark rate at a record low of 0.25 percent and the deposit rate at zero. The marginal lending rate was held at 0.75 percent.

Recovery Signs

Policy makers are still trying to spur a sustainable recovery in the 18-nation euro area’s southern flank after a debt crisis that threatened to break the bloc apart as recently as two years ago.

Inflation in April was less than half the ECB’s target of just under 2 percent for a seventh month. Even so, the rate of 0.7 percent marked a rebound from March, when it slowed to the lowest rate in more than four years.

Recent economic data have signaled that the currency bloc is rebounding from its longest-ever recession, which ended last year, and survey indicators point to a further pickup in activity.

Service industries in Spain and Ireland, which have both exited international bailout programs in the past six months, posted the fastest growth since before the financial crisis in March, according to purchasing managers indexes by Markit Economics this week. Consumer confidence in the euro area unexpectedly increased in April, a European Commission report showed last month.

All Tools

Those figures weren’t enough to persuade Draghi to deviate from his position that the recovery is fragile and the risks remain on the downside.

He said policy makers discussed all tools available, including extending the offer of unlimited central-bank cash against collateral. Other possibilities include long-term loans to banks and halting the sterilization of liquidity created by crisis-era bond purchases.

“Draghi stressed that the council was unanimous in being dissatisfied with the prolonged period of low-flation and is ready to take action,” said Elga Bartsch, chief European economist at Morgan Stanley in London. “The debate seems to be on what policy measures to take and not on whether to take any at all. See you in June, Mr. Draghi!”

To contact the reporter on this story: Stefan Riecher in Frankfurt at sriecher@bloomberg.net

To contact the editors responsible for this story: Craig Stirling at cstirling1@bloomberg.net John Fraher, Angela Cullen

U.S. Stocks Retreat While Euro Drops on ECB Rate-Cut Bets

By Jeremy Herron and Joseph Ciolli May 8, 2014 4:30 PM ET

Most U.S. stocks fell, erasing earlier gains, as technology shares reversed a morning rebound from a two-day slump and utility and energy companies slid. European equities gained and the euro fell as the region’s central bank signaled it may cut interest rates in June.

The Standard & Poor’s 500 Index (SPX) lost 0.1 percent to 1,875.63 at 4 p.m. in New York after earlier climbing to within two points of its record close. The Nasdaq Composite Index fell 0.4 percent, reversing a 1 percent gain. The Stoxx Europe 600 Index jumped 1.1 percent while the euro weakened after touching a 2 1/2 year high versus the dollar. Euro-area government bonds rose, sending Spanish and Italian yields to record lows. Nickel added 4 percent; natural gas slid.

Energy, utility and biotechnology shares led declines among 24 industry groups in the S&P 500. European Central Bank President Mario Draghi said the ECB is ready to cut interest rates next month if needed and expressed concern about the euro’s exchange rate. U.S. jobless claims fell more than economists predicted last week. President Vladimir Putin said Russia is testing combat readiness, ramping up tensions after pledging a pullback from Ukraine’s border.

“We continue to see this churning of the market and rotation out of hyper-growth names into value,” Walter Todd, who oversees about $975 million as chief investment officer at Greenwood Capital Associates LLC, said in a phone interview. “The market is looking for new leadership, and utilities and telecom don’t provide that, even though they’ve been the best sectors. It’s trying to find its way to the next catalyst, which is hard to pinpoint at this point.”

Technology Shares

Selloffs in technology shares this week have been led by two of the country’s best-known stocks, Twitter Inc., which has declined 18 percent as insiders were freed to sell stock, and Tesla Motors Inc. The Palo Alto, California-based automaker, which reported care deliveries that trailed estimates yesterday, is down 15 percent for the week.

The Dow Jones Internet Composite Index lost 0.3 percent after rising as much as 1.8 percent earlier. The gauge has dropped 5.2 percent in the last two days, led by Groupon Inc., Twitter Inc. and Yahoo! Inc. An exchange-traded fund of social-media companies fell on eight of the past 11 days amid concern that user growth is slowing and valuations have become excessive.

Valuations

Technology stocks have led this year’s selloff of companies whose growth are more tied to economic swings after a rally drove valuations to about double that of the S&P 500. The Nasdaq Composite is trading at 35 times reported earnings, compared with a multiple of 17.2 for the S&P 500.

The S&P 500 climbed 0.6 percent yesterday amid optimism that the Fed will continue to support the U.S. economy. Phone, financial and consumer-discretionary companies had the biggest gains among 10 groups today, as earnings from Keurig Green Mountain Inc. to 21st Century Fox Inc. topped forecasts. AT&T Inc. led the Dow Jones Industrial Average higher as people with knowledge of the situation said the second-biggest mobile-phone carrier was in talks to buy DirecTV. Walt Disney Co. jumped 1.6 percent after the movie “Frozen” helped earnings increase 27 percent.

Jobless claims fell 26,000 to 319,000 in the week ended May 3 from a revised 345,000 in the prior period, the Labor Department reported today in Washington. The median forecast of 52 economists surveyed by Bloomberg called for a decrease to 325,000.

Fed Chair Janet Yellen said today Treasury yields aren’t likely to increase in the absence of a more robust economic recovery.

Yellen Comments

“Interest rates are unlikely to begin rising until we are in a strong economic recovery,” Yellen said in response to a question in testimony today to the Senate Budget Committee.

The yield on 10-year Treasury notes was up three basis points at 2.61 percent and climbed as much as four basis points.

ECB officials are debating how much stimulus to give to a euro region economy haunted by the threat of deflation. While Draghi gave no signal that radical moves such as quantitative easing are imminent, new economic forecasts next month may give them the scope to take interest rates into negative territory.

“The Governing Council is comfortable with acting next time, but before we want to see the staff projections that will come out in the early June,” Draghi said at a press conference in Brussels. “There wasn’t a decision today. It’s a preview of the discussion we will have next month.”

Euro Slide

The common European currency dropped versus all of its 16 major counterparts except for the Swedish krona as his comments raised the prospect of additional stimulus that tends to weaken foreign exchange rates. The euro dropped 0.4 percent to $1.3849 after appreciating to $1.3993, the strongest level since Oct. 31, 2011.

“It seems the market is making a big bet that the ECB is going to start a QE program pretty soon,” Matt Maley, a Boston-based equity strategist with Miller Tabak & Co., said in a phone interview, referring to stimulus measures known as quantitative easing.

Investors are pouring cash into euro-area bond markets amid optimism the ECB will step in to support the debt. Italy’s 10-year yield fell 10 basis points, or 0.1 percentage point, to 2.92 percent. Spain’s yield decreased nine basis points to 2.88 percent.

More three shares advanced for every one that declined in Europe’s Stoxx 600, with trading volumes in line the 30-day average, data compiled by Bloomberg show. Banks led gains as all 19 industry groups in the Stoxx 600 advanced.

BT, Barclays

BT Group Plc advanced 2.9 percent as new Internet customers at the biggest U.K. broadband provider boosted profit. Enel SpA increased 5.2 percent after Italy’s biggest utility said profit fell less than analysts had predicted.

Barclays Plc jumped 7.9 percent. The bank will eliminate 14,000 positions across the firm this year, up from the 12,000 cuts it announced in February, Barclays said in a statement.

The MSCI Emerging Markets Index advanced for a third day, climbing 0.5 percent. The Shanghai Composite Index increased 0.3 percent.

China’s overseas shipments increased 0.9 percent from a year earlier, when figures were inflated by fraudulent invoicing, data from the Beijing-based customs administration showed today. That compared with the median estimate for a 3 percent drop in a Bloomberg News survey of analysts. Imports gained 0.8 percent, leaving a trade surplus of $18.46 billion.

Ukraine Tension

Russia’s ruble erased gains after Ukraine’s Donetsk region said it will go ahead with a referendum set for May 11. Putin called yesterday for separatists in Ukraine to delay the vote, triggering the biggest jump in seven weeks in the benchmark equity gauge.

The ruble dropped 0.4 percent against the dollar while the Micex Index of stocks added 0.6 percent after gaining as much as 1.5 percent.

Putin said today that Russia is testing its army’s combat readiness after pledging yesterday a pullback from Ukraine’s border in addition to the call to delay this weekend’s referendums by separatists. NATO said there’s no sign of any Russian withdrawal from the frontier.

Thailand’s baht fell to a one-month low after a court ruling to remove Yingluck Shinawatra as prime minister worsened the nation’s political crisis.

Vietnam’s VN Index (VNINDEX) fell 5.9 percent, the biggest retreat since October 2001, after the government said yesterday that Chinese boats intentionally rammed Vietnamese vessels during a confrontation over the placement of an exploration rig by China in waters near the Paracel Islands, claimed by both countries.

Nickel climbed as much as 6.1 percent to $19,786 a metric ton, the highest since March 2012 as Vale SA was told to suspend mining in New Caledonia. The suspension was ordered after a spill, according to the island nation’s Southern Province government.

To contact the reporters on this story: Jeremy Herron in New York at jherron8@bloomberg.net; Joseph Ciolli in New York at jciolli@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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