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 Post subject: May 14th Wednesday Trade Results - Profit $3380.00
PostPosted: Wed May 14, 2014 11:16 pm 
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Joined: Sat Jan 10, 2009 2:06 pm
Posts: 4335
Location: Canada
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Trade Results of M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
Price Action Trading (no technical indicators)
Phone: +1 708 572-4885
Free Chat Room: http://www.thestrategylab.com/tsl/forum/viewforum.php?f=164
Business Hours: 8am - 5pm est (Mon - Fri)
questions@thestrategylab.com (24/7)
http://twitter.com/wrbtrader (24/7)

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

Price Action Trade Performance for Today: Emini TF ($TF_F) futures @ $2,630.00 dollars or +26.30 points, Emini ES ($ES_F) futures @ $750.00 dollars or +15.00 points, Light Crude Oil CL ($CL_F) futures @ $0.00 dollars or +0.00 points, Gold GC ($GC_F) futures @ $0.00 dollars or +0.00 points and EuroFX 6E ($6E_F) futures @ $0.00 dollars or +0.0000 ticks. Total Profit @ $3,380.00 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=1792

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.

No New Records Today: Dow Drops 100 Points

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

NEW YORK (CNNMoney)
Investors didn't just hit the pause button Wednesday, they hit the reverse one.

Backing away from three consecutive record closes, the Dow tumbled about 100 points on Wednesday.

The selling didn't appear to be triggered by any specific new concerns, but it does represent a pause from the recent ascent.

"Everybody is just taking a breather here. The market never goes straight up," said Randy Frederick, managing director of trading at Charles Schwab (SCHW, Fortune 500).

The Dow, S&P 500 and Nasdaq all closed firmly in the red. The slide halted the Dow's five-day winning streak.

Many of the names leading the drop sell items that are considered discretionary, not essential. A day after losing 3%, Whirlpool (WHR, Fortune 500) dropped 4% following a negative analyst report.

Shares of Fossil (FOSL), best known for its watches and jewelry, dropped more than 10% as investors expressed disappointment over the company's declining profits and soaring expenses.

The maker of the "Grand Theft Auto" video games, Take-Two Interactive Software (TTWO), tumbled 8% as investors lamented a cautious outlook from the company, which overshadowed a solid earnings beat. Rival video game makers Electronic Art (EA) and Activision Blizzard (ATVI) also retreated.

"$TTWO Plenty in the pipeline to surprise investors in the coming months. E3 is right around the corner! Enjoy the bargain prices," StockTwits user gambl0r wrote.

Related: Don't blink: Stocks race past milestones

The retail sector was also in focus, headlined by Sears Holdings (SHLD, Fortune 500), with many companies reporting quarterly results this week.

After initially rallying, Sears fell almost 6% after the company revealed plans to either unload its 51% stake in Sears Canada or sell the brand north of the border entirely. The announcement comes as Sears struggles to stem the bleeding in its core business.

Video - Sears is in serious trouble

Macy's (M, Fortune 500) was flat today after it announced quarterly earnings that topped estimates by a penny, and slightly lagging sales. On the positive side, the company hiked its dividend by 25% and boosted share buyback plans by $1.5 billion.

Wall Street sent Kate Spade (KATE) soaring 8.5% into the green, applauding surging sales.

Outside the retail world, tractor company Deere (DE, Fortune 500)reported profits and sales that topped forecasts, but the company dimmed its outlook amid declining equipment sales.

Sony (SNE) slumped 7% after showing sales rose but projecting a full-year loss of $489 million, its sixth in seven years.

Transport stocks, which have recently rallied to record highs, were also a source of trouble on Wednesday. Names like United Continental (UAL, Fortune 500), Delta Air Lines (DAL, Fortune 500) and UPS (UPS, Fortune 500) all lost ground.

Retailers Wal-Mart (WMT, Fortune 500) and J.C. Penney (JCP, Fortune 500) will steal the earnings spotlight on Thursday.

Related: Heads roll at Citigroup over fraud in Mexico

Inflation hawks may finally have something to crow about. The Labor Department said producer prices popped 0.6% in April, good for the biggest jump since September 2012. Economists had modeled for a softer increase of 0.2%.

Investors will get to see whether or not producers passed those higher prices down to customers on Thursday when the government releases its consumer price index.

Meanwhile, bond prices continue to defy expectations by rising. The 10-year Treasury yield, which moves opposite direction of the price, ticked down to 2.53% on Wednesday, touching the lowest level since late October.

The lower bond yields should keep a lid on borrowing costs for consumers and businesses alike, but they also signal investor trepidation about stocks.

Tech stocks could bounce back on Thursday as Cisco Systems (CSCO, Fortune 500)revealed an earnings beat after trading ended. Shares of the tech bellwether climbed 5% in after-hours trading.

European markets closed largely flat. Shares of GlaxoSmithKline (GLAXF) moved higher even after China charged a former executive with arranging a bribery scheme.

Asian markets closed mixed.

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4:15 pm: [BRIEFING.COM] The stock market stumbled on Wednesday with small caps leading the fall as the Russell 2000 (-1.6%) registered its second consecutive decline that placed it back below its 200-day moving average. For its part, the S&P 500 lost 0.5% with five sectors finishing in the red.

Equity indices began the midweek session below their flat lines, but outside of the Russell 2000, their losses were held in check for the bulk of the day. The S&P 500 hovered roughly four points below its flat line for the better part of the trading day until diving to a fresh low during the last 90 minutes of action.

Meanwhile, the Russell 2000 lagged from the open, and its underperformance likely contributed to the overall sense of caution. Furthermore, the relative weakness among the top-weighted sectors prevented sustained rallies from taking shape.

Out of the five largest sectors that represent more than 70.0% of the S&P 500, consumer discretionary (-1.1%), financials (-0.8%), technology (-0.6%), and industrials (-0.8%) lagged throughout the session, while health care (unch) displayed relative strength thanks to modest gains in biotech. The iShares Nasdaq Biotechnology ETF (IBB 231.41, +0.90) advanced 0.4%.

The weakest sector of the day-consumer discretionary-suffered from noteworthy losses among apparel retailers. Shares of Fossil (FOSL 100.00, -11.45) tumbled 10.3% after the company's cautious guidance overshadowed its earnings beat. Also of note, Macy's (M 57.83, -0.01) reported a one-cent beat on below-consensus revenue, but could not rally even though shareholders were treated to a 25.0% dividend hike and an increase to the share repurchase program. As a result of the decline, the worst-performing sector of the year widened its year-to-date loss to 4.7%.

Although most cyclical sectors were unable to keep pace with the broader market, energy (+0.04%) and materials (+0.1%) outperformed amid strength in the underlying commodities. Crude oil rose 0.6% to $102.34, while metals displayed strength as well. Copper futures advanced 0.7% and gold futures rose 0.9% to their respective $3.16/lb and $1306.10/ozt.

On the countercyclical side, consumer staples (-0.6%) lagged, while rate-sensitive telecom services (+0.5%) and utilities (+0.4%) finished in the lead. Both sectors likely benefitted from today's session-long retreat in yields. The 10-yr note advanced 18 ticks, pressuring its yield seven basis points to 2.54%. The benchmark yield settled at its lowest level since late October 2013.

Participation was well below average, which has been the case for the past week. In fact, daily NYSE volume has been trending lower all week with today's tally (607 million) representing the second-lowest total of the week.

Economic data was limited to the April PPI report and the weekly MBA Mortgage Index:
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Producer prices increased 0.6% in April, up from a 0.5% increase in March. The Briefing.com consensus expected producer prices to increase 0.2%. The economic consensus is once again having difficulties estimating producer inflation using the new methodologies. Final demand for services, which increased by its largest amount (0.7%) in March since January 2010, was anticipated to fall back in April. That did not happen. Services prices rose another 0.6% in April, which was one of the largest two-month gains in the history of the index. Final demand for goods increased 0.6% in April, up from being flat in March. Food prices, which jumped 1.1% in March, increased 2.7% in April. Energy costs, which were expected to be a primary factor for April inflation gains, increased a minute 0.1% in April after falling 1.2% in March. Excluding food and energy, core PPI increased 0.5% in April, down from a 0.6% increase in March. The consensus expected these prices to increase 0.2%.
The weekly MBA Mortgage Index rose 3.6% to follow last week's increase of 5.3%.

Tomorrow, weekly initial claims (Briefing.com consensus 325,000), April CPI (consensus 0.3%), and the Empire Manufacturing survey for May (consensus 4.8) will all be released at 8:30 ET, while March Net Long-Term TIC Flows will be announced at 9:00 ET. April Industrial Production (consensus 0.0%) and Capacity Utilization (consensus 79.2%) will be announced at 9:15 ET, while the Philadelphia Fed survey for May (consensus 9.1) and the May NAHB Housing Market Index (consensus 48) will cross the wires at 10:00 ET.

S&P 500 +2.2% YTD
Dow Jones Industrial Average +0.2% YTD
Nasdaq Composite -1.8% YTD
Russell 2000 -5.0% YTD

3:35 pm: [BRIEFING.COM]

Gold, silver and copper remained rather consolidated in afternoon trading action, holding gains
Crude oil remained in positive territory all day, with Russia/Ukraine tension and talk of U.S. lifting export ban providing price support
Natural gas slid lower all morning, but put in a small rally in afternoon trade to recover losses. June nat gas rose one cent at $4.37/MMBtu
June gold finished the day $10.20 higher at $1306.10/oz, July silver rose $0.23 to $19.78/oz and July copper gained one cent to $3.16/lb
June crude oil sold off into and after floor trading closed, but remained above the $102/barrel level, closing $0.61 higher at $102.34/barrel.

3:00 pm: [BRIEFING.COM] The major averages have dropped to fresh lows with one hour remaining in the session. The S&P 500 is lower by 0.4%, while the Russell 2000 has widened its loss to 1.4%.

The recent slide did not take place in reaction to a particular catalyst, but instead was a continuation of the daylong weakness. As such, the move knocked all ten sectors from their recent levels.

With stocks sliding to new lows for the day, participants are now showing some demand for volatility protection. The CBOE Volatility Index (VIX 12.29, +0.16) is higher by 1.3%, but remains on track to finish the day near its lowest levels of the year.

2:30 pm: [BRIEFING.COM] The S&P 500 (-0.2%) continues trading near its recent levels, while the Russell 2000 (-1.1%) has returned to its session low.

Although the small cap index started the week in grand fashion with a 2.3% surge, it has since given up the bulk of that move. Including today's loss, the Russell 2000 is now up just 0.2% for the week, which puts the index behind the remaining groups. Meanwhile, the Nasdaq has been the top performer of the week and it currently holds a week-to-date gain of 1.2%.

Despite the relative strength exhibited this week, the Nasdaq is still down 1.3% so far in 2014.

2:00 pm: [BRIEFING.COM] The stock market has not moved much since our last update, which leaves the S&P 500 trading four points below its flat line.

The benchmark index has held inside of a two-point range for the past hour, but market breadth continues favoring the downside as there are 1.2 listings trading in the red for each advancer. Meanwhile at the Nasdaq, there are almost two issues trading lower for every name in the green.

1:30 pm: [BRIEFING.COM] The major indices remain stuck in red figures, mired in a narrow trading range that has persisted for the last three hours. Once again, trading volume is light. There have been 270 mln shares traded at the NYSE, which is below the total seen at the same time on Tuesday when just 604 mln shares were traded for the entire session versus a recent average of 718 mln shares.

The lack of interest in the stock market could be owed in part to the continued interest in the Treasury market, which has been strong all day despite the higher-than-expected PPI print for April.

The bulk of the buying interest has been concentrated at the back end of the curve, which goes to the market's concerns about economic growth not living up to economists' optimistic expectations. Fittingly, many of the countercyclical sectors are today's best performers. The utilities sector (+0.8%) leads in that regard as it has all year.

The 10-yr note is up 18 ticks and its yield has dropped six basis points to 2.55%, leaving it comfortably below the 2.60 - 2.80% range that has held intact since the beginning of February.

1:00 pm: [BRIEFING.COM] The major averages have spent the first half of the session in the red with small caps leading the retreat. The Russell 2000 holds a loss of 0.9%, while the S&P 500 trades lower by 0.2% with five sectors on the defensive.

Equities slumped out of the gate following a cautious overnight session. The Nasdaq, S&P 500, and Russell 2000 notched session lows during the first hour of action, while the Dow Jones Industrial Average (-0.4%) slipped to a fresh low within the last 60 minutes. It is worth mentioning that the Russell has returned below its 200-day moving average after reclaiming that key level during the Monday rally.

Although the S&P 500 put in its low earlier in the morning, it has not been able to climb off the mat due to significant weakness among the top-weighted sectors. Consumer discretionary (-0.7%), financials (-0.6%), industrials (-0.5%), and technology (-0.2%) weigh on the broader market, while the health care sector (+0.2%) represents the lone pocket of relative strength among the most influential groups.

Notably, the discretionary sector lags amid weakness in retail shares after Fossil's (FOSL 101.93, -9.52) below-consensus guidance overshadowed its earnings beat. Macy's (M 57.80, -0.04) also reported earnings, but its shares are little changed in reaction to below-consensus revenue, which was overshadowed by a one-cent beat, a 25.0% dividend hike, and an increase to the company's share repurchase program.

Also of note, the health care sector is not the only area of strength among countercyclical groups as rate-sensitive telecom services (+0.9%) and utilities (+0.9%) share a spot atop today's sector leaderboard.

In all likelihood, both groups have benefitted from a sharp decline in Treasury yields. The 10-yr note is higher by 21 ticks with its yield down eight basis points at 2.53%.

Economic data was limited to the April PPI report and the weekly MBA Mortgage Index:

Producer prices increased 0.6% in April, up from a 0.5% increase in March. The Briefing.com consensus expected producer prices to increase 0.2%. The economic consensus is once again having difficulties estimating producer inflation using the new methodologies. Final demand for services, which increased by its largest amount (0.7%) in March since January 2010, was anticipated to fall back in April. That did not happen. Services prices rose another 0.6% in April, which was one of the largest two-month gains in the history of the index. Final demand for goods increased 0.6% in April, up from being flat in March. Food prices, which jumped 1.1% in March, increased 2.7% in April. Energy costs, which were expected to be a primary factor for April inflation gains, increased a minute 0.1% in April after falling 1.2% in March. Excluding food and energy, core PPI increased 0.5% in April, down from a 0.6% increase in March. The consensus expected these prices to increase 0.2%.
The weekly MBA Mortgage Index rose 3.6% to follow last week's increase of 5.3%.

12:30 pm: [BRIEFING.COM] Generally speaking, the past few sessions have featured the outperformance of the Dow Jones Industrial Average and S&P 500 when compared to the Russell 2000. Today, the Russell once again trails the other indices, but the Dow (-0.4%) has been unable to stay ahead of the S&P 500 (-0.2%).

At this juncture, only eight Dow components display gains with just one stock-Merck (MRK 56.36, +0.61)-trading higher by 1.0% or more. On the downside, three listings hold losses of at least 1.0%, with the second-largest index component-IBM (IBM 189.60, -2.59)-down 1.4%. Meanwhile, the broader technology sector (-0.2%) has kept pace with the S&P 500.

12:05 pm: [BRIEFING.COM] The S&P 500 (-0.2%) has inched up from its recent levels, but still trades below its opening level. Five sectors trade in the green with defensively-oriented telecom services (+0.8%) and utilities (+0.8%) in the lead, while the relative weakness of consumer discretionary (-0.7%), financials (-0.6%), and industrials (-0.5%) is keeping the benchmark index in negative territory.

In all likelihood, the continued rally in Treasuries has also contributed to the cautious sentiment. The 10-yr note is now up 22 ticks with its yield down eight basis points at 2.53%. Barring an afternoon turnaround, the benchmark yield will end the day at its lowest level since October 2013.

11:30 am: [BRIEFING.COM] Equity indices continue trading near their recent levels with the S&P 500 lower by 0.2%. Dip-buyers have made a couple attempts at forcing a turnaround, but those efforts have proven futile so far.

The benchmark index holds a modest loss amid weakness in three of the four largest sectors that represent just over 60.0% of the entire market. Consumer discretionary (-0.6%) and financials (-0.6%) sit at the bottom of the leaderboard, while technology (-0.2%) trades in-line with the broader market. The health care sector, meanwhile, leads the bunch as it hovers at its flat line. Interestingly, the sector has not drawn strength from biotechnology even as the iShares Nasdaq Biotechnology ETF (IBB 232.02, +1.51) trades higher by 0.7%.

Also of note, the modest losses in the stock market have not led to increased demand for volatility protection. In fact, the CBOE Volatility Index (VIX 12.08, -0.05) is lower by 0.4%.

11:00 am: [BRIEFING.COM] The major averages have established new session lows after being unable to rebound from the initial weakness. The Dow, Nasdaq, and S&P 500 are all down between 0.2% and 0.3%, while the Russell 2000 (-1.0%) remains weak.

The relative weakness of the Russell is notable, considering it has taken the small cap index back below its 200-day moving average (1116.79) after regaining that level on Monday. It is worth mentioning that the index has been trading near this key level for the better part of the past five weeks.

Although the key indices trade near their lows, the defensively-oriented utilities sector (+0.6%) holds a solid gain, and is now up 10.7% so far in 2014.

10:35 am: [BRIEFING.COM]

Commodities have been trading higher this morning. while the dollar index remains lower, providing support
Crude oil was trading above $102/barrel ahead of the weekly EIA inventory data
Following the data, June crude pulled back a little, but didn't break below the $102/barrel level. It's now +0.6% at $102.26/barrel
Gold and silver have been pulling back a little. June gold is now +0.7% at $1303.80/oz, July silver is +1.2% at $19.79/oz
July copper is currently +0.6% at $3.15/lb,while June natural gas is +0.8% at $4.39/MMBtu

10:05 am: [BRIEFING.COM] The Dow, Nasdaq, and S&P 500 continue holding losses of no more than 0.2%, while the Russell 2000 (-0.4%) is showing relative weakness.

With regard to individual sectors, financials (-0.4%) remain at the bottom of the leaderboard, while two other influential sectors-consumer discretionary (-0.2%) and industrials (-0.2%)-follow not far behind.

Apparel names are contributing to the underperformance of the discretionary space after Fossil's (FOSL 101.75, -9.70) below-consensus guidance overshadowed its earnings beat. However, Macy's (M 57.95, +0.11) holds a slim gain after its below-consensus sales were overshadowed by a one-cent beat, a 25.0% dividend hike, and an increase to its share repurchase program.

9:45 am: [BRIEFING.COM] The major averages slipped out of the gate, with the Russell 2000 (-0.6%) leading the opening slide after underperforming yesterday. Meanwhile, the S&P 500 trades lower by 0.1% with eight sectors trading in the red.

Even though the vast majority of sectors trade lower, the weakest-performing group-financials-is only down 0.4% so far. On the upside, energy (+0.1%) and utilities (+0.1%) outperform modestly.

On the fixed income side, Treasuries have extended to new highs shortly after the opening bell. The 10-yr note is higher by 12 ticks with its yield down five basis points at 2.56%.

9:08 am: [BRIEFING.COM] S&P futures vs fair value: -2.00. Nasdaq futures vs fair value: -10.50. The stock market is on track for a modestly lower open as index futures trade near their lows after retreating steadily since the start of the European session. The overnight news flow was relatively light, but the Bank of England released its latest inflation report that called for the first interest rate hike to take place in the second quarter of 2015. That forecast was a bit of a surprise to participants who expected the central bank to deploy tightening measures a bit sooner due to the recent strength in economic data. The pound slumped in reaction to the report, falling from 1.6870 to 1.6770 versus the dollar.

Staying on the inflation theme, the PPI report that was released earlier this morning indicated an increase of 0.6%, which followed the prior month's rise of 0.5%. Core PPI, meanwhile, increased 0.5% after rising 0.6% last month. On a year-over-year basis, PPI is up 2.1%, which represents the biggest 12-month advance since March 2012, while core PPI is up 1.9%.

Strikingly, the Treasury market didn't react much to the higher-than-expected PPI readings, possibly because it recognized the index for processed goods for intermediate demand was unchanged while the index for services for intermediate demand was up just 0.1%, suggesting pipeline inflation pressures didn't ramp up as well. The 10-yr note hovers just below its high with its yield down three basis points at 2.58%.

8:57 am: [BRIEFING.COM] S&P futures vs fair value: -2.60. Nasdaq futures vs fair value: -11.30. The S&P 500 futures trade three points below fair value.

Asian Markets ended mixed with weakness apparent in most of the major bourses and strength in the periphery. The People's Bank of China ordered lenders to increase mortgage lending in an effort to provide a spark to the slowing real estate market. Elsewhere, the Australian government revealed its budget plans, announcing spending cuts on foreign aid and welfare while planning to raise taxes on the wealthy.

Japan's Corporate Goods Price Index rose 2.8% month-over-month, as expected, while the year-over-year reading jumped 4.1% (consensus 4.0%, prior 1.7%). Separately, Machine Tool Orders surged 48.8% year-over-year (prior 41.8%).
South Korea's Unemployment Rate climbed to 3.7% (3.5% previous).

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Japan's Nikkei slipped 0.1% amid a quiet trade. Engineering company JGC weighed, tumbling 13% after issuing a downbeat forecast.
Hong Kong's Hang Seng gained 1.0%, closing at a three-week high. Property shares saw robust gains as China Resources Land and China Overseas Land & Investment climbed 6.0% and 4.1%, respectively.
China's Shanghai Composite booked a small loss of 0.1%. Property shares provided support as China Vanke added 1.3% and Poly Real Estate gained 1.6%.

Major European indices trade modestly lower with Italy's MIB (-0.7%) trailing the rest of the region. The Bank of England released its latest Inflation Report, which called for the first rate increase to take place in the second quarter of next year. Participants received several data points:

Eurozone Industrial Production fell 0.3% month-over-month, as expected, while the year-over-year reading slipped 0.1% (consensus 1.0%, previous 1.7%).
Germany's CPI slipped 0.2% month-over-month, while the year-over-year reading increased 1.3%. Both figures met expectations.
Great Britain's Claimant Count fell 25,100 (expected -30,000, prior -30,600), while the Unemployment Rate ticked down to 6.8% from 6.9%, as expected. Also of note, Average Earnings Index + Bonus rose 1.7% (consensus 2.1%, previous 1.7%).
French CPI was unchanged month-over-month (consensus 0.2%, previous 0.5%).
Spain's CPI rose 0.9% month-over-month, while the year-over-year reading increased 0.4%. Both figures matched expectations.

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Germany's DAX is lower by 0.1% with utilities on the defensive. E.ON and RWE are lower by 0.4% and 1.8%, respectively. On the upside, basic material names K+S and ThyssenKrupp hold respective gains of 1.2% and 0.6%.
In France, the CAC holds a loss of 0.2%. Financials Credit Agricole and Societe Generale are both down near 1.2%, while industrial component Alstom leads with a gain of 2.1%.
Great Britain's FTSE is down 0.2%. ITV is the weakest component, down 5.9%, in reaction to cautious analyst comments. On the upside, Mondi is the top performer, up 2.5%, after beating earnings expectations.
Italy's MIB trades down 0.7% as Mediaset weighs. The stock was halted earlier and now trades lower by 6.3%.

8:31 am: [BRIEFING.COM] S&P futures vs fair value: -3.30. Nasdaq futures vs fair value: -8.50. The S&P 500 futures trade three points below fair value.

April producer prices rose 0.6% while the Briefing.com consensus expected an uptick of 0.2%. Core producer prices jumped 0.5% while the consensus expected an increase of 0.2%.

7:54 am: [BRIEFING.COM] S&P futures vs fair value: -2.80. Nasdaq futures vs fair value: -6.30. U.S. equity futures hover near their pre-market lows amid cautious action overseas. The S&P 500 futures trade three points below fair value.

Reviewing overnight developments:

Asian markets ended mixed. Japan's Nikkei -0.1%, China's Shanghai Composite -0.1%, and Hong Kong's Hang Seng +1.0%.
In economic data:
Japan's Corporate Goods Price Index rose 2.8% month-over-month, as expected, while the year-over-year reading jumped 4.1% (consensus 4.0%, prior 1.7%). Separately, Machine Tool Orders surged 48.8% year-over-year (prior 41.8%).
South Korea's Unemployment Rate rose to 3.7% from 3.5% (expected 3.4%).
New Zealand's Retail Sales rose 0.7% quarter-over-quarter (consensus 0.9%, previous 1.2%), while Core Retail Sales increased 0.8% (expected 0.9%, prior 1.0%).
In news:
Property developers outperformed in Shanghai and Hong Kong after the People's Bank of China held a meeting with 15 local banks aimed at reducing mortgage lending risks by streamlining the approval process.

Major European indices trade modestly lower. Germany's DAX -0.1%, Great Britain's FTSE -0.1%, and France's CAC -0.2%. Elsewhere, Italy's MIB -0.6% and Spain's IBEX -0.3%.
Participants received several data points:
Eurozone Industrial Production fell 0.3% month-over-month, as expected, while the year-over-year reading slipped 0.1% (consensus 1.0%, previous 1.7%).
Germany's CPI slipped 0.2% month-over-month, while the year-over-year reading increased 1.3%. Both figures met expectations.
Great Britain's Claimant Count fell 25,100 (expected -30,000, prior -30,600), while the Unemployment Rate ticked down to 6.8% from 6.9%, as expected. Also of note, Average Earnings Index + Bonus rose 1.7% (consensus 2.1%, previous 1.7%).
French CPI was unchanged month-over-month (consensus 0.2%, previous 0.5%).
Spain's CPI rose 0.9% month-over-month, while the year-over-year reading increased 0.4%. Both figures matched expectations.
Among news of note:
The Bank of England released its latest Inflation Report, which called for a rate increase in the second quarter of next year.

In U.S. corporate news:

Deere (DE 92.50, -1.11): -1.2% after reporting a bottom-line beat on revenue that was below analyst estimates.
Fossil (FOSL 105.07, -6.38): -5.7% after its below-consensus guidance overshadowed its earnings beat.
Plug Power (PLUG 3.71, -0.38): -9.3% following an earnings miss on better than expected revenue.
Sony (SNE 16.72, -0.92): -5.2% after missing bottom-line estimates on above-consensus revenue.

The weekly MBA Mortgage Index rose 3.6% to follow last week's increase of 5.3%.

The April PPI and Core PPI reports will be released at 8:30 ET.

6:41 am: [BRIEFING.COM] S&P futures vs fair value: -2.00. Nasdaq futures vs fair value: -4.50.

6:41 am: [BRIEFING.COM] Nikkei...14405.76...-19.70...-0.10%. Hang Seng...22582.77...+230.40...+1.00%.

6:41 am: [BRIEFING.COM] FTSE...6863.71...-9.40...-0.20%. DAX...9739.40...-15.00...-0.20%.

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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