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 Post subject: May 15th Thursday Trade Results - Profit $7050.00
PostPosted: Fri May 16, 2014 12:39 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)
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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 @ $3,300.00 dollars or +33.00 points, Emini ES ($ES_F) futures @ $3,750.00 dollars or +75.00 points, Light Crude Oil CL ($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 @ $7,050.00 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=1793

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 Fall Hard: Dow Down 167

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

NEW YORK (CNNMoney)
Fear has returned to Wall Street. Just days after hitting new highs, stocks fell across the board Thursday as the bears came out from hibernation.

The Dow Jones industrial average ended the day down nearly 170 points, though the blue-chip average lost more than 200 points earlier in the day. The S&P 500 and the Nasdaq both fell hard as well, with the S&P 500 close to a percent drop.

Investors rushed into bonds, driving the yield on the 10-year Treasury to 2.48% at one point, the lowest level since Oct. 2013. Bond yields fall when prices rise.

The selling adds to Wednesday's losses, and marks a significant shift from the recent trend. The Dow has hit a string of record closing levels this week, and the S&P 500 crossed the 1,900 mark for the first time on Tuesday. It closed today at 1,871.

What's driving the pullback?

There was no specific trigger for the retreat, said Bernard Kavanagh, a portfolio manager at Stifel Nicolaus. He said investors have been on the lookout for a pullback this year and many are primed to sell stocks at the slightest hint of bad news.

"It's more sentiment driven than anything else," he said. "People are feeling skittish after we hit all-time highs just a few days ago."

CNNMoney's Fear & Greed index fell back to a level signaling "extreme fear" in the market.

Some traders pointed to comments by David Tepper, a widely followed hedge fund manager, who said Wednesday that he's "nervous" about the market.

"The tipping point today was David Tepper's comments, which were seen as a siren song. Investors circled the wagon around that," said Mark Luschini, chief investment strategist at Janney.

Related: David Tepper: I'm nervous about the market

European markets were also under pressure following mixed economic data from the eurozone. Stocks in Italy, Ireland and Spain fell sharply. Germany and France both ended down 1%.

The jitters were evident on StockTwits, where traders seemed particularly worried about small-cap stocks. The iShares IWM (IWM) exchange traded fund, which tracks a basket of 2,000 small companies, is down more than 10% from its most recent high, which meets the standard definition of a correction.

"$SPY $IWM crash risk is high, need to stay alert," said slowslimslider.

Traders were also sounding alarm bells about the broader market as well.

"$SPY fear just broke my chart," said Bemer14

Wal-Mart, other retailers disappoint

Investors were rattled by poor earnings and sales data from Wal-Mart. (WMT, Fortune 500) The big discount retailer said its results were hurt by bad weather and a delay in tax refunds caused by last fall's government shutdown.

Kohl's (KSS, Fortune 500) also had bad news. The department store chain said sales fell 3.4% in the first quarter, missing the company's own expectations.

But investors cheered J.C. Penney's (JCP, Fortune 500) latest report, which came out after the market closed. The struggling retailer said it had sales of $2.8 billion in the first quarter, surpassing analysts' expectations. It also reported a smaller than expected loss.

The stock surged nearly 10% in extended trading. "Cotton Dockers for everyone! $JCP," said chicagosean.

General Motors (GM, Fortune 500) announced five new recalls covering 2.7 million vehicles, including a wiring flaw tied to 13 accidents and two injuries. It was the latest in a string of high-profile recalls this year that have hit the automaker's bottom line. The stock ended the day down over 1.5%.

The technology sector was a bright spot in early trading Thursday. Cisco Systems (CSCO, Fortune 500) shares rallied more than 7% after the maker of information technology equipment and software reported earnings that beat expectations last night.

Economic data mixed

On the economic front, the government said new claims for unemployment benefits fell in the week ending May 10. As expected, consumer prices increased 0.3% in April. Excluding food and energy prices, the consumer price index rose 0.2% last month.

The Federal Reserve said industrial production fell 0.6% in April, surprising economists who were expecting no change. A report on manufacturing activity in the New York area came in above expectations, while activity in the Philadelphia region slowed.

Federal Reserve chair Janet Yellen will be speaking about small business and the economy during a talk in Washington this evening.

Asian markets had a mixed day. Investors in Japan pushed the Nikkei lower, shrugging off an impressive report on strong economic growth in the first quarter.

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4:10 pm: [BRIEFING.COM] Equities finished the Thursday session with broad-based losses after spending the entire day in the red. The S&P 500 settled lower by 0.9% with nine sectors registering losses, while the Russell 2000 lost 0.7% after being down as much as 1.9%.

Stocks slumped out of the gate with small caps leading the early slide even though the economic data that was reported ahead of the open was mostly better than expected. To be fair, a couple data points did miss expectations, but the first batch that included above-consensus weekly initial claims, in-line CPI, and the better than expected Empire Manufacturing Survey was met with a rally in the Treasury market.

Treasuries spiked into the green after the three economic reports crossed the wires, and continued their rally into the late morning. The 10-yr note added 13 ticks, pressuring its yield five basis points to 2.50%, after marking a session low at 2.47%. The benchmark yield ended today's session down 12 basis points for the week.

The continued strength in Treasuries weighed on the overall sentiment, causing participants to reduce their risk exposure. Fittingly, with Treasuries signaling unease about the strength of economic growth, today's weakest sectors came from the cyclical side.

Out of the six growth-sensitive sectors, four posted losses larger than the broader market. Energy, financials, industrials, and materials lost between 1.0% and 1.5%, while consumer discretionary (-0.7%) and technology (-0.8%) outperformed.

The consumer discretionary sector lagged for the better part of the session, but was able to reclaim a portion of its losses during the afternoon. Homebuilders held up relatively well, which was likely a function of lower yields. The iShares Dow Jones US Home Construction ETF (ITB 23.09, -0.07) shed 0.3%.

Elsewhere, the technology sector was underpinned by the shares of Cisco Systems (CSCO 24.18, +1.37), which rallied 6.0% in reaction to better than expected earnings and revenue. Chipmakers, however, could not keep pace with the sector as the PHLX Semiconductor Index fell 1.2%.

Things looked a bit better on the countercyclical side as this month's leading sector-telecom services (+0.2%)-extended its May advance to 2.8%, while the utilities space (-0.4%) posted a modest loss. The other two defensive groups registered losses that were more in line with the S&P 500. Health care (-1.0%) lagged, while the consumer staples sector (-0.9%) kept pace with the broader market even as its top component-Wal-Mart (WMT 76.83, -1.91)-weighed. The retail giant tumbled 2.4% after reporting disappointing results, coupled with cautious guidance.

Today's selloff invited above-average participation as 732 million shares changed hands at the NYSE, representing the highest total since last Wednesday.

Economic data was plentiful and mostly better than expected:
Related Stories

InPlay from Briefing.com Briefing.com
Stocks mixed, but another record close on the books CNBC
Dow, S&P 500 Edge Lower The Wall Street Journal
TABLE - U.S. jobless claims fall in latest week Reuters
TABLE - U.S. jobless claims rise in latest week Reuters

The initial claims level fell below 300,000 to 297,000 for the week ending May 10 from an upwardly revised 321,000 (from 319,000) for the week ending May 3. The Briefing.com consensus expected the initial claims level to increase to 325,000. According to the Department of Labor, there were no special factors that caused the initial claims level to fall unexpectedly to its lowest level since May 2007.
Consumer prices increased 0.3% in April, up from a 0.2% increase in March. The Briefing.com consensus expected the CPI to increase 0.3%. Food prices increased 0.4% for a fourth consecutive month. A big increase in producer food prices in April will likely pass through to consumers and keep upward pressure on the CPI food index. Energy costs, which fell 0.1% in March, increased 0.3% in April. Excluding food and energy, core CPI increased 0.2% for a second consecutive month in April, matching consensus expectations.
The Empire Manufacturing Survey for May registered a reading of 19.0, which was up from the prior month's reading of 1.3. Economists polled by Briefing.com expected the survey to improve to 4.8.
The March net long-term TIC flows report indicated an $85.70 billion inflow of foreign capital into U.S. denominated assets. This followed the prior month's revised $90.30 billion inflow.
Industrial production declined 0.6% in April after increasing an upwardly revised 0.9% (from 0.7%) in March. The Briefing.com consensus expected industrial production to be flat in April. As expected, warmer weather conditions reduced the need for utilities consumption. Output/production in utilities fell 5.3% in April after increasing 0.6% in March.
The Philadelphia Fed's Business Outlook showed a slight deceleration in manufacturing growth in May. The diffusion index fell to 15.4 from 16.6 in April. The Briefing.com consensus expected the index to fall to 9.1.
The May NAHB Housing Market Index fell to 45 from 46, while the Briefing.com consensus expected the reading to increase to 48.

Tomorrow, Housing Starts (Briefing.com consensus 975,000) and Building Permits (consensus 1.008 million) for April will be released at 8:30 ET, while the preliminary Michigan Consumer Sentiment survey (expected 84.5) will be announced at 9:55 ET.

S&P 500 +1.2% YTD
Dow Jones Industrial Average -0.8% YTD
Nasdaq Composite -2.6% YTD
Russell 2000 -5.6% YTD

3:30 pm: [BRIEFING.COM]

Precious metals traded lower today as jobless claims fell below 300K. The initial claims level fell to 297K for the week ending May 10 from an upwardly revised 321K (from 319K) for the week ending May 3. The Briefing.com consensus expected the initial claims level to increase to 325K.
June gold dropped to a session low of $1290.90 per ounce after trading as high as $1303.60 per ounce at pit trade open. It eventually settled with a 0.9% loss at $1293.70 per ounce.
July silver pulled back from its session high of $19.67 per ounce set in early morning action and traded as low as $19.43 per ounce. Unable to gain momentum, it settled with a 1.5% loss at $19.49 per ounce. June crude oil fell for the first time in four sessions, trading as low as $101.27 per barrel in early afternoon action. The energy component retreated from a session high of $102.19 per barrel and settled at $101.46 per barrel, or 0.9% lower.
June natural gas rallied sharply into positive territory following inventory data that showed a build of 105 bcf when a build of 95-99 bcf was anticipated. It climbed to a session high of $4.51 per MMBtu in late morning action and settled with a 2.1% gain at $4.46 per MMBtu.

2:55 pm: [BRIEFING.COM] The S&P 500 trades lower by 0.9% with one hour left in the session. Stocks retreated through the first two hours of action, but the S&P 500 was able to halt its slide in the neighborhood of the 50-day moving average.

Cyclical sectors were responsible for the bulk of the losses, while only the technology space (-0.5%) managed to stay ahead of the broader market throughout the day. At this time, four of six cyclical groups continue to lag, while the consumer discretionary space (-0.7%) has joined technology among the outperformers.

With stocks climbing off their lows, the CBOE Volatility Index (VIX 13.14, +0.97) has trimmed its advance to 8.0%.

2:25 pm: [BRIEFING.COM] The S&P 500 has inched up off its low, but continues holding the bulk of its loss. At its current level, the benchmark average is back in the neighborhood of its 50-day moving average (1867/1868) after falling below that level during the late morning.

Elsewhere, Treasuries have taken a step back from their highs, but are still holding solid gains. The 10-yr note is higher by 12 ticks with its yield down five basis points at 2.50%. Although yields climbed on Monday, they have been heading lower since that day. Given its standing, the 10-yr yield is down 12 basis points for the week, and down 16 basis points since the Monday settlement.

2:00 pm: [BRIEFING.COM] The S&P 500 continues plodding along its session low as all but four sectors trail the broader market. Even though stocks began the week with a big Monday rally, the major averages have already surrendered those gains.

Including today's loss, the S&P 500 is now down 0.7% for the week. Only the Nasdaq has held up a bit better as it sports a week-to-date loss of 0.5%.

Elsewhere, the Dow is now lower by 1.0% for the week, while the Russell 2000 has widened its weekly loss to 1.6%. Furthermore, the small cap index is on track to finish the session at its lowest level of the year.

1:30 pm: [BRIEFING.COM] The major indices remain deep in negative territory, suffering from a lack of leadership and, frankly, a lack of confidence. Monday's rally effort has been wiped out with relative ease and with a disturbing reversal in the Russell 2000, which is once again testing its lows for the year.

The confidence buster for many, though, is the continued buying interest in longer-dated Treasury securities. Today's gains pushed the yield on the 10-yr note below 2.50%, which is nearly 55 basis points below where it started the year. It has moved off its best level of the day and stands at 2.50% as of this post.

That drop in yields has not meshed with the economic acceleration argument. On a related note, it can be argued that the 10-yr note is overbought on a near-term basis and vulnerable to some profit-taking interest since the economic data overall hasn't been indisputably weak.

A move to unwind recent gains in the Treasury market then could pave the way for a stock market rebound effort. For now, though, stocks remain near their lows while the 10-yr note remains near its high.

12:55 pm: [BRIEFING.COM] The major averages sit on their lows at midday, with the S&P 500 down 1.1%. Just like yesterday, small caps trail the broader market as the Russell 2000 holds a loss of 1.5% after notching a session low at levels last seen in early November.

Equities have faced broad-based selling pressure since the start of the session despite the release of several better than expected economic reports. Conversely, Treasuries have benefitted from the cautious posture, sending the benchmark 10-yr yield (-4 bps at 2.50%) to its lowest levels since mid-2013.

The continued strength in Treasuries suggests the presence of uncertainty about the strength of economic growth. Fittingly, today's weakest sectors fall under the growth-sensitive designation.

Out of the six cyclical sectors, five trail the broader market. Consumer discretionary, energy, financials, industrials, and materials hold losses between 1.3% and 1.7%, while the largest S&P 500 sector-technology (-0.8%)-outperforms.

In large part, the tech sector owes its relative strength to the shares of Cisco Systems (CSCO 24.31, +1.50), which trade higher by 6.6% after beating earnings estimates on above-consensus revenue. Cisco notwithstanding, the remaining top tech components hold losses across the board.

Staying on the earnings theme, Wal-Mart (WMT 76.90, -1.83) holds a loss of 2.3% following its disappointing report and cautious guidance. Even though the retail giant weighs on the broader market, the consumer staples sector (-0.8%) trades ahead of the S&P 500.

Outside of consumer staples and technology, only two other (rate-sensitive) sectors have been able to stay ahead of the benchmark index. The utilities sector is lower by 0.2%, while the telecom services space trades up 0.2%, extending its May gain to 2.8%.

Economic data was plentiful and mostly better than expected:

The initial claims level fell below 300,000 to 297,000 for the week ending May 10 from an upwardly revised 321,000 (from 319,000) for the week ending May 3. The Briefing.com consensus expected the initial claims level to increase to 325,000. According to the Department of Labor, there were no special factors that caused the initial claims level to fall unexpectedly to its lowest level since May 2007.
Consumer prices increased 0.3% in April, up from a 0.2% increase in March. The Briefing.com consensus expected the CPI to increase 0.3%. Food prices increased 0.4% for a fourth consecutive month. A big increase in producer food prices in April will likely pass through to consumers and keep upward pressure on the CPI food index. Energy costs, which fell 0.1% in March, increased 0.3% in April. Excluding food and energy, core CPI increased 0.2% for a second consecutive month in April, matching consensus expectations.
The Empire Manufacturing Survey for May registered a reading of 19.0, which was up from the prior month's reading of 1.3. Economists polled by Briefing.com expected the survey to improve to 4.8.
The March net long-term TIC flows report indicated an $85.70 billion inflow of foreign capital into U.S. denominated assets. This followed the prior month's revised $90.30 billion inflow.
Industrial production declined 0.6% in April after increasing an upwardly revised 0.9% (from 0.7%) in March. The Briefing.com consensus expected industrial production to be flat in April. As expected, warmer weather conditions reduced the need for utilities consumption. Output/production in utilities fell 5.3% in April after increasing 0.6% in March.
The Philadelphia Fed's Business Outlook showed a slight deceleration in manufacturing growth in May. The diffusion index fell to 15.4 from 16.6 in April. The Briefing.com consensus expected the index to fall to 9.1.
The May NAHB Housing Market Index fell to 45 from 46, while the Briefing.com consensus expected the reading to increase to 48.

12:30 pm: [BRIEFING.COM] The S&P 500 trades lower by 1.3% after sliding below its 50-day moving average (1867/1868) earlier. Since the start of the year, the benchmark index has made three appearances below that noteworthy level.

The index first tumbled below that mark on January 24, and it wasn't until February 11, when the index was able to claw back above the 50-day average. The next slide occurred on April 10, but the S&P 500 recovered swiftly, regaining the 50-day just four sessions later.

Since that rebound, the index has tested its 50-day average on an intraday basis, and is on track to end below that mark today.

12:00 pm: [BRIEFING.COM] Equity indices remain pinned to their lows, while Treasuries are maintaining their best levels of the session.

At this juncture, only four sectors trade ahead of the broader market with just one of those four showing a slim gain. This month's leading sector-telecom services-outperforms with a gain of 0.2%, which has extended the group's month-to-date advance to 2.8%.

Elsewhere, the other three outperformers-consumer staples (-0.8%), utilities (-0.2%), and technology (-1.1%)-all hover in the red.

With stocks unable to pull away from their lows, participants are seeking volatility protection as evidenced by a 12.7% surge in the CBOE Volatility Index (VIX 13.71, +1.54).

11:25 am: [BRIEFING.COM] Recent action saw Treasuries climb to fresh highs (10-yr yield -7 bps to 2.48%) at the expense of the stock market. The S&P 500 (-1.3%) has dropped to a new low, slashing through its 50-day moving average (1867/1868).

With the S&P 500 at a fresh session low, cyclical sectors remain responsible for the bulk of the weakness as consumer discretionary, energy, financials, industrials, and materials display losses between 1.4% and 1.7%. The tech sector (-0.8%), meanwhile, continues showing relative strength following an earnings beat from Cisco Systems (CSCO 24.46, +1.65). The stock trades higher by 7.3%.

It is also worth mentioning that the weakness in equities has been accompanied by yen strength. The dollar/yen pair hovers near 101.40, just 50 pips above its 200-day moving average (101.12), which has not been breached since late October.

11:00 am: [BRIEFING.COM] The major averages remain pressured with the S&P 500 trading lower by 1.0%. Meanwhile, small caps continue showing relative weakness as the Russell 2000 holds a loss of 1.5%.

Equity indices have spent the past hour near their lows with dip buyers reluctant to step into the fray. In all fairness, the strength of the Treasury market suggests that the cautious sentiment is warranted. The 10-yr note is higher by 16 ticks, with its yield down six basis points at 2.49%.

Yesterday, the benchmark yield settled at its lowest level since late October, but today's drop has pressured the 10-yr yield to levels last seen in early July.

10:35 am: [BRIEFING.COM]

The dollar index has been selling off in morning trade and has erased today's gains
This has only provided price support in select commodities, such as metals
Commodities are in the red this morning overall
Ahead of weekly inventory data, natural gas futures were about 0.5% lower at $4.35/MMBtu
Following the data, June nat gas rallied to a new session high and is now +2.1% at $4.46/MMBtu.
Crude oil has been in the red all morning and is now -0.5% at $101.88/barrel (June)
Gold and silver have been recovering some off of session lows in recent trade.
June gold is now -0.4% at $1300.20/oz, while July silver is -0.1% at $19.58/oz. July copper is -0.4% at $3.15/lb.

10:00 am: [BRIEFING.COM] The S&P 500 has widened its loss to 0.7%, while the Russell 2000 now trades lower by 1.5%.

Telecom services (+0.2%) and utilities (+0.5%) are the only two sectors that sport modest gains, while the remaining groups are down between 0.2% (technology) and 1.1% (consumer discretionary).

Just released, the Philadelphia Fed Survey for May fell to 15.4 from 16.6. Economists polled by Briefing.com had expected that the Survey would slip to 9.1.

The May NAHB Housing Market Index fell to 45 from 46, while the Briefing.com consensus expected the reading to increase to 48.

9:40 am: [BRIEFING.COM] The major averages slipped out of the gate with yesterday's laggard-Russell 2000 (-0.8%)-leading the early weakness once again. For its part, the S&P 500 trades lower by 0.3% with eight sectors showing losses.

Overall, cyclical sectors are responsible for the bulk of the retreat as five of six groups display losses between 0.3% and 0.6%. The technology sector, meanwhile, outperforms with a gain of 0.3% thanks to a 7.2% surge in the shares of Cisco Systems (CSCO 24.40, +1.59) after the company beat on earnings and revenue.

On the downside, the financial sector (-0.6%) is the weakest performer through the opening minutes of action.

Treasuries have taken a step back from their highs, but they remain bid. The benchmark 10-yr yield is lower by three basis points at 2.52%.

9:15 am: [BRIEFING.COM] S&P futures vs fair value: -3.80. Nasdaq futures vs fair value: +0.50. The stock market is on track for a cautious start as index futures hover near their lowest levels of the morning. The S&P 500 futures hover four points below fair value with the entire retreat coming after the start of the European session.

Similar to U.S. futures, major European indices are on the defensive following some disappointing data from the region. Specifically, eurozone GDP increased 0.2% quarter-over-quarter (consensus 0.4%, previous 0.2%), while the year-over-year reading rose 0.9% (consensus 1.1%, prior 0.5%). The below-consensus growth readings weighed on the euro, suggesting an increase in expectations for additional easing from the European Central Bank. At this juncture, the single currency hovers near 1.3655 against the dollar.

Participants also received GDP data from Japan, but that release surprised to the upside (1.5% versus expected 1.0%), suggesting the Bank of Japan will hold off on introducing additional easing at the June meeting.

Turning the focus back to the U.S., a full slate of data crossed the wires this morning. April CPI (0.3%) and core CPI (0.2%) matched expectations, while weekly initial claims dropped below the 300,000 mark (297,000) to their lowest level since May 2007. Despite the news, the 10-yr note surged to new highs after an initial modest retreat. The benchmark 10-yr yield is lower by three basis points at 2.52%.

Just reported, April industrial production decreased 0.6%, which was above the unchanged reading that was expected by the Briefing.com consensus. Industrial production for March was revised up to show a 0.9% increase versus an originally reported increase of 0.7%. Separately, capacity utilization hit 78.6% while the Briefing.com consensus called for a reading of 79.2%.

9:00 am: [BRIEFING.COM] S&P futures vs fair value: -2.70. Nasdaq futures vs fair value: +2.50. The S&P 500 futures trade three points below fair value.

Asian Markets ended the session on a mixed note following noteworthy data from Japan.

Japan's preliminary GDP surged 1.5% quarter-over-quarter (expected 1.0%) as citizens rushed to secure big-ticket items ahead of the consumption tax hike. The strongest reading since Q3 2011 is likely to temper expectations of more Bank of Japan stimulus.
China's electricity consumption slowed to 4.6% year-over-year (previous 7.2%).
India's Wholesale Price Index eased to 5.2% year-over-year (consensus 5.7%, prior 5.7%).
Australia's new motor vehicle sales were flat.

------

Japan's Nikkei lost 0.8% amid pressure from the stronger yen. Shares of Sony tumbled 6.1% following its downbeat forecast.
Hong Kong's Hang Seng gained 0.7%, reclaiming its 200-day moving average as trade closed at a three-week high. Internet gaming giant Tencent Holdings was the top performer, up 5.8%, ahead of its earnings release.
China's Shanghai Composite lost 1.1%, falling for the third straight session. Commodity-related names were weak as Yanzhou Coal Mining slumped 4.9% and Jilin Ji'en Nickel Industry fell 5.8%.

Major European indices trade in the red after receiving a full slate of data.

Eurozone GDP increased 0.2% quarter-over-quarter (consensus 0.4%, previous 0.2%), while the year-over-year reading rose 0.9% (consensus 1.1%, prior 0.5%). Separately, CPI ticked up 0.2% month-over-month, while the year-over-year reading increased 0.7%. Both figures met expectations. Also of note, Core CPI increased 1.0% year-over-year, as expected.
Germany's GDP increased 0.8% quarter-over-quarter (forecast 0.7%, previous 0.4%), while the year-over-year reading rose 2.5% (consensus 2.2%, prior 1.3%).
French GDP was unchanged quarter-over-quarter (expected 0.2%, previous 0.2%).
Italy's GDP slipped 0.1% quarter-over-quarter (forecast 0.2%, prior 0.1%), while the year-over-year reading fell 0.5% (consensus -0.1%, previous -0.9%).
Great Britain's CB Leading Index rose 0.3% month-over-month (previous 0.4%).

------

Great Britain's FTSE is flat. Miner Fresnillo leads with a gain of 3.4%, while airlines lag. EasyJet and International Consolidated Airlines are both down near 4.8%.
Germany's DAX is lower by 0.1%. Utilities and industrials are under pressure, while producers of basic materials display strength. Deutsche Post and RWE hold respective losses of 3.4% and 1.6%. On the upside, Lanxess, Linde, and ThyssenKrupp are up between 1.0% and 2.1%.
In France, the CAC trades down 0.3% as financials weigh. BNP Paribas, Credit Agricole, and Societe Generale are down between 1.4% and 2.5%. Telecom provider Orange outperforms with a gain of 1.2%.
Italy's MIB holds a loss of 1.9% with nearly all components trading in the red. Unione di Banche Italiane and Mediobanca are both down near 5.0% apiece.

In domestic economic news, the March net long-term TIC flows report indicated a $4.00 billion inflow of foreign capital into U.S. denominated assets. This followed the prior month's revised $90.30 billion inflow.

8:33 am: [BRIEFING.COM] S&P futures vs fair value: -0.90. Nasdaq futures vs fair value: +6.70. The S&P 500 futures trade one point below fair value.

The latest weekly initial jobless claims count totaled 297,000, 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 321,000 (from 319,000). As for continuing claims, they fell to 2.667 million from 2.685 million.

Total CPI for April increased 0.3%, which matched the Briefing.com consensus. Core CPI, which excludes food and energy, was up 0.2%, which also met expectations.

Separately, the Empire Manufacturing Survey for May registered a reading of 19.0, which was up from the prior month's reading of 1.3. Economists polled by Briefing.com expected the survey to improve to 4.8.

7:56 am: [BRIEFING.COM] S&P futures vs fair value: -2.90. Nasdaq futures vs fair value: +0.50. U.S. equity futures hold modest losses 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 -0.8%, China's Shanghai Composite -1.1%, and Hong Kong's Hang Seng +0.7%.
In economic data:
Japan's GDP rose 1.5% quarter-over-quarter (consensus 1.0%, previous 0.1%), while the year-over-year reading increased 5.9% (expected 4.2%, prior 0.3%). Also of note, GDP Price Index was unchanged year-over-year (consensus -0.1%, prior -0.3%), Household Confidence slipped to 37.0 from 37.5 (expected 38.3), and Tertiary Industry Activity Index came in at 2.4% month-over-month (expected 2.5%, previous -0.9%).
Australia's New Motor Vehicle Sales were unchanged month-over-month (prior -0.3%).
New Zealand's Business NZ PMI fell to 55.2 from 58.0.
In news:
Following the above-consensus Q1 GDP reading, Japan's economy minister Akira Amari said the cabinet would take a close look at Q2 and Q3 results before making a final decision regarding a 10.0% sales tax hike that is planned for next year.

Major European indices trade in mixed fashion. France's CAC -0.3%, Germany's DAX -0.1%, and Great Britain's FTSE is flat. Elsewhere, Italy's MIB -1.8% and Spain's IBEX -1.1%.
Economic data was plentiful:
Eurozone GDP increased 0.2% quarter-over-quarter (consensus 0.4%, previous 0.2%), while the year-over-year reading rose 0.9% (consensus 1.1%, prior 0.5%). Separately, CPI ticked up 0.2% month-over-month, while the year-over-year reading increased 0.7%. Both figures met expectations. Also of note, Core CPI increased 1.0% year-over-year, as expected.
Germany's GDP increased 0.8% quarter-over-quarter (forecast 0.7%, previous 0.4%), while the year-over-year reading rose 2.5% (consensus 2.2%, prior 1.3%).
French GDP was unchanged quarter-over-quarter (expected 0.2%, previous 0.2%).
Italy's GDP slipped 0.1% quarter-over-quarter (forecast 0.2%, prior 0.1%), while the year-over-year reading fell 0.5% (consensus -0.1%, previous -0.9%).
Great Britain's CB Leading Index rose 0.3% month-over-month (previous 0.4%).
Among news of note:
The euro slumped following the disappointing eurozone GDP reading for the first quarter, suggesting an increase in expectations for additional easing from the European Central Bank. The single currency hovers near 1.3665 against the dollar.

In U.S. corporate news:

Cisco Systems (CSCO 24.28, +1.47): +6.5% after beating earnings estimates on above-consensus revenue.
Gentiva Health Services (GTIV 13.58, +5.04): +59.0% after receiving a proposal to be acquired by Kindred Healthcare (KND 21.92, 0.00) for $7.00 per shares and $7.00 worth of KND common stock.
Kohl's (KSS 52.75, -1.28): -2.4% after missing earnings and revenue expectations.
Wal-Mart (WMT 76.12, -2.62): -3.3% after missing earnings and revenue estimates. The retailer guided second quarter results below consensus.
Vipshop (VIPS 161.00, +11.00): +7.3% following its better than expected results and upbeat guidance.

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.

6:47 am: [BRIEFING.COM] S&P futures vs fair value: -1.00. Nasdaq futures vs fair value: +8.00.

6:47 am: [BRIEFING.COM] Nikkei...14298.21...-107.60...-0.80%. Hang Seng...22730.86...+148.10...+0.70%.

6:47 am: [BRIEFING.COM] FTSE...6881.96...+3.40...+0.10%. DAX...9751.03...-3.20...0.00.

U.S. Stocks Decline as Small Caps Slide, Wal-Mart Misses

By Joseph Ciolli May 15, 2014 4:36 PM ET

U.S. stocks fell a second day, with the Dow Jones Industrial Average sinking the most in a month, as investors continued to sell small-cap shares and Wal-Mart Stores Inc. forecast profit that missed estimates.

Wal-Mart fell 2.4 percent after the disappointing results. Lincoln National Corp. sank 5.2 percent, leading insurers lower as 10-year Treasury yields tumbled. General Motors Co. dropped 1.7 percent after recalling another 2.7 million vehicles. Cisco Systems Inc. advanced 6 percent after a revenue forecast that beat analysts’ projections.

The Standard & Poor’s 500 Index (SPX) lost 0.9 percent, the most in a month, to 1,870.85 at 4 p.m. in New York. The Dow average declined 167.16 points, or 1 percent, to 16,446.81, its biggest drop since April 10. The Russell 2000 Index of small companies sank 0.7 percent, trimming an earlier slide of 1.9 percent. About 6.8 billion shares changed hands on U.S. exchanges, 2.3 percent above the three-month average.

“The primary sentiment right now is cautious and nervous,” Michael James, a Los Angeles-based managing director of equity trading at Wedbush Securities Inc., said in a phone interview. “It’s more a matter of capital preservation than it is trying to generate returns. This is a time of caution. More people are looking to make sales and raise cash than they are to put cash to work on the weakness.”
Photographer: Spencer Platt/Getty Images

Traders work on the floor of the New York Stock Exchange on May 13, 2014.

The S&P 500 has dropped 1.4 percent since closing at an all-time high of 1,897.45 on May 13. The gauge advanced as much as 4.5 percent from a low on April 11 amid optimism about the economy and Federal Reserve stimulus.

Small Caps

The Russell 2000 has lost 3.3 percent in the past three days following a 2.4 percent rally on May 12. The gauge briefly fell 10 percent below a March high today. A close with the index down that much would meet the common definition of a correction.

The Dow Jones Internet Index lost 0.6 percent for a third day of declines. The gauge has plunged 18 percent from a 13-year high in March.

Economic data today showed industrial production in the U.S. unexpectedly declined in April, held back by a plunge in utilities as temperatures warmed and a broad-based decrease in manufacturing. Manufacturing, which makes up 75 percent of total production, decreased 0.4 percent.

That contrasted with a higher-than-forecast reading on the Fed Bank of New York’s gauge of regional manufacturing, which climbed to 19.01 this month, from 1.29 in April.

Slower Growing

Labor Department data showed the fewest Americans in seven years filed applications for unemployment benefits last week, while a separate report indicated the cost of living in the U.S. rose in April by the most in almost a year.

“There’s not really any great news here,” Randy Bateman, who oversees $3.5 billion as chief investment officer of Huntington Asset Advisors in Columbus, Ohio, said by phone. “It’s just a slower growing period. Unless we see something that will really drive investor enthusiasm, it’ll be a trading-range market.”

Fed Chair Janet Yellen said last week that the world’s biggest economy still requires a strong dose of stimulus. While data show “solid growth” in the second quarter, “many Americans who want a job are still unemployed” and inflation remains low, she said. Yellen will address the U.S. Chamber of Commerce after the market closes today.

Three rounds of monetary stimulus have helped fuel economic growth, sending the S&P 500 surging as much as 180 percent from its 2009 low.

David Tepper, founder of $20 billion hedge-fund firm Appaloosa Management LP, said he’s nervous about markets as the U.S. economy isn’t growing fast enough amid complacency by the Federal Reserve.

Nervous Time

“The market is kind of dangerous in a way,” Tepper said yesterday at the SkyBridge Alternatives Conference in Las Vegas. “I think it’s nervous time,” he said, adding that markets may “grind higher” in the near term.

Tepper, 56, who started his Short Hills, New Jersey-based firm in 1993, said he’s more worried about deflation than inflation and that this is the time to preserve money.

The Chicago Board Options Exchange Volatility Index (VIX), a gauge for U.S. stock volatility known as the VIX, jumped 8.2 percent to 13.17, its biggest rally in a month. The gauge had fallen 43 percent through yesterday since reaching a two-year high on Feb. 3.

Nine of the 10 main S&P 500 groups retreated today, with commodity shares dropping 1.3 percent to pace declines. Phone stocks, which have the highest dividend yield in the index, added 0.2 percent.

Slow Sales

Wal-Mart sank 2.4 percent to $76.83. The world’s largest retailer forecast second-quarter profit that missed analysts’ estimates as the company copes with slow sales in the U.S., especially at its Sam’s Club warehouse stores. First-quarter profit fell to $1.10 a share, with poor weather shaving off 3 cents a share. That trailed the $1.15-a-share estimate of analysts surveyed by Bloomberg.

Retailers in the S&P 500 fell 1.1 percent, with Kohl’s Corp. decreasing 3.4 percent to $52.21. The department-store operator reported sales and profit estimates that fell short of analysts’s forecasts. The stock fell the most since January.

Bristol-Myers Squibb Co. plummeted 6.1 percent to $48.93 for the biggest decline in the S&P 500. The drugmaker was downgraded to market perform from outperform by BMO Capital Markets after the company disclosed late yesterday preliminary results of clinical testing on one of its cancer treatments.

Lincoln National dropped 5.2 percent to $47.41 for its biggest slide since 2012, pacing losses among insurers, which sank 1.4 percent as a group.

The yield on 10-year Treasury notes slid five basis points to 2.50 percent. Life insurers invest in bonds to back future obligations and generate profits. MetLife Inc., the largest U.S. life insurer, sank 2.7 percent to $49.56.

GM Recall

General Motors dropped 1.7 percent to $34.36. The automaker announced that it is recalling an additional 2.7 million vehicles, including models with faulty brake lights that have led to hundreds of complaints, pushing the total number to 11.1 million.

Cisco rallied 6 percent to $24.18. The world’s largest network-equipment maker said revenue in the quarter ending July will be $12 billion to $12.3 billion. Analysts on average had predicted $11.8 billion. Cisco forecast profit excluding stock-based compensation, amortization and other items of as much as 53 cents a share. That exceeded the 51-cent average of analyst estimates compiled by Bloomberg.

To contact the reporter on this story: 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, Jeff Sutherland

Special thanks to Bloomberg, CNNMoney, Reuters and Yahoo! Finance for their market summaries. gm

Best Regards,
M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
Image@ http://twitter.com/wrbtrader Image@ http://stocktwits.com/wrbtrader

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