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 Post subject: May 22nd Thursday Trade Results - No Trades
PostPosted: Fri May 23, 2014 2:12 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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Quote:
No trades today due to computer network problems after new software installation.

Price Action Trade Performance for Today: Emini TF ($TF_F) futures @ $0.00 dollars or +0.00 points, Emini ES ($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 @ $0.00 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=1798

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 Gain Thanks To Best Buy, Dollar Tree

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

NEW YORK (CNNMoney)
Close, but no cigar. The S&P 500 flirted with a new high Thursday, but didn't quite get there.

The Dow Jones industrial average, the S&P 500 and the Nasdaq all closed with gains. Earlier, the S&P 500 came within one point of its record high from last week. The gains build on momentum from Wednesday, when the Dow surged more than 160 points.

HP tech error?

In an apparent error, Hewlett-Packard (HPQ, Fortune 500) released its latest quarterly report early. The computer company's stock fell more than 2% just before the closing bell. HP's earnings were in line with expectations, but the company announced plans to lay off an additional 11,000 to 16,000 job cuts on top of the previously announced 34,000 job cuts.

Is Best Buy getting its groove back?

Over in retail stock land, Best Buy (BBY, Fortune 500) shares were up as much as 5% after the electronics retailer reported earnings that beat analysts' expectations, raising hopes the company's turnaround plan is bearing fruit. The stock was down sharply in the futures market before active trading started. It ended the day up 3.4%.

Some traders on StockTwits were surprised to see Best Buy shares bounce back.

A trader using the handle TheGenius was stumped. "$BBY why the heck is this up?"

Best Buy was one of the top performing S&P 500 stocks last year, but it's down more than 30% so far in 2014. Still, some traders believe changes under CEO Hubert Joly, including store closings and headcount reduction, are steps in the right direction.

"$BBY Bottom line better than expected, good signs in online area. Still has ways to go, but reasonable turnaround progress. Remain long," read a post by kgpittm.

Retail stocks rally -- to a point

Dollar Tree (DLTR, Fortune 500) also reported better-than-expected earnings, sending shares of the discount retailer up nearly 7%.

Sears Holdings (SHLD, Fortune 500), which operates the Kmart and Sears brands, said the pace of store closings picked up to 80 closings in the first quarter and that further store closings are possible the rest of this year. Shares ended the day up more than 4%, reversing earlier losses.

House wares retailer Williams-Sonoma (WSM) reported strong earnings and boosted its outlook for the coming months late Wednesday. The stock was up over 8%.

It was the second quarter in a row that William-Sanoma beat expectations. Wednesday's report, coming on the heels of a strong quarter for Tiffany & Co (TIF)., raised expectations for the luxury retail sector.

Related: The 1% is spending: Luxury stocks soar

"$WSM destroys... again. Good news on the end of $RH. Luxury consumer is doing so well," said crbarnette.

Shares of RetailMeNot (SALE), a provider of online coupons, sank almost 19% on a report that changes to a Google (GOOG, Fortune 500) search algorithm caused a sharp drop in the company's online traffic. But some traders said the selling was an overreaction.

"$SALE SELL SELL SELL SELL!!!!!! So I can get pick up cheaper.. This is Google backed, you really think they are going to punish themselves?" asked StockTwits user rml251.

Chinese ecommerce company JD.com (JD) started trading today on the Nasdaq. The stock priced at $19 a share, on the high end of its expected range, and popped 10% on its first day.

Related: Good news for Alibaba: Rival JD pops in IPO

After hours: Gap and Aeropostale

Gap Inc (GPS, Fortune 500). said earnings and same-store sales fell in the first quarter, but the maker of khaki pants maintained its profit outlook for the year. The company reported after hours, and the stock is barely moving.

It wasn't so pretty for Aeropostale (ARO). Shares plunged after the market closed. The teen-focused apparel company said net sales were down 12% in the first quarter, while earnings fell due to restructuring costs.

Smoke 'em if you got 'em

Shares of big tobacco companies were also lighting up.

Reynolds American (RAI, Fortune 500) and Lorillard (LO) are reportedly in talks to join forces and create the second largest U.S. tobacco company. Lorillard, which makes the e-cigarette blu, would give Reynolds access to the growing market for electronic cigarettes. A deal could also benefit U.K.-based British American Tobacco (BTAFF), which owns a large stake in Reynolds.

Both Reynolds and Lorillard were down Thursday after big spikes late yesterday when news of the potential deal surfaced.

In economic news, the government said first-time claims for unemployment benefits rose sharply in the week ended May 17. Sales of existing homes rose 1.3% in April, according to the National Association of Realtors.

European markets ended modestly higher. Asian markets closed mostly higher, buoyed by better-than-expected manufacturing data from China. Stocks in Thailand were little changed despite news that military officials had taken control of the government, marking the latest in a string of coups in the past few decades.

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4:15 pm: [BRIEFING.COM] The major averages registered their second consecutive advance on Thursday with the Russell 2000 ending in the lead. The small cap index advanced 1.0%, while the S&P 500 gained 0.2% with eight sectors finishing in the green. For its part, the Dow Jones Industrial Average (+0.1%) underperformed throughout the session as blue chip listings struggled to stay out of negative territory.

The Russell 2000 displayed some volatility this week, but thanks to today's advance, the index will enter the Friday session with a weekly gain of 1.1%. Furthermore, the index will begin tomorrow's affair within five points of its 200-day moving average (1118), which has been presenting a challenge in recent days.

Today, the index rallied out of the gate, which served as an encouraging early signal. The S&P 500, meanwhile, dipped below its flat line at the open, but once that dip was bought, the benchmark index rallied into the afternoon.

Overall, countercyclical sectors fared a bit better than their growth-sensitive peers. Of the four defensively-oriented groups, the consumer staples space (-0.2%) was the lone laggard, while health care (+0.5%), telecom services (+0.5%), and utilities (+0.8%) outperformed.

Notably, the health care sector was boosted by biotechnology, which in turn rallied in sympathy with small cap stocks. The iShares Nasdaq Biotechnology ETF (IBB 234.15, +4.41) jumped 1.9% to regain its 50-day moving average after falling below that level in late March.

Biotechnology also factored into the outperformance of the Nasdaq Composite (+0.6%), while the traditional tech sector (+0.1%) could not keep pace as top-weighted components displayed relative weakness. The sector slumped from its high during the final 30 minutes of action after Hewlett-Packard's (HPQ 31.78, -0.74) earnings, which were scheduled for an after-hours release, leaked. Shares of HPQ tumbled 2.3% in reaction to a top-line miss on in-line earnings.

Outside of technology, the remaining cyclical groups finished in mixed fashion as consumer discretionary (+0.5%) and financials (+0.4%) outperformed, while energy (-0.2%), industrials (+0.2%), and materials (+0.2%) lagged.

Treasuries settled near their lows after retreating throughout the session. The 10-yr note shed six ticks with its yield climbing two basis points to 2.55%.

Participation has been lacking throughout the week with the Memorial Day weekend on the horizon. Prior to today, Monday's volume (573 million) represented the second-lowest total of the year, but today's session claimed that 'honor' as 565 million shares changed hands at the NYSE.

Economic data featured weekly initial claims, the Existing Home Sales report for April, and April Leading Indicators:
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Weekly initial claims increased from 298,000 to 326,000, while the Briefing.com consensus expected a reading of 305,000. In all likelihood, last week's sharp drop was an aberration rather than a change in labor market conditions, considering levels quickly returned into the 320,000-330,000 range.
Existing home sales increased a modest 1.3% to 4.65 million SAAR in April from 4.59 million SAAR in March. The gain ended three consecutive months of sales declines. The Briefing.com consensus expected existing home sales to increase to 4.66 million. The increase in sales coincided with improvements in mortgage applications and a gain in the pending home sales index. Still, sales are down 6.8% from April 2013. Sales fell 1% in the Midwest and were flat in the Northeast. Gains of 4.9% and 1.0% were seen out West and in the South.
The Leading Indicators report for April increased 0.4%. That followed a revised 1.0% increase in March, and was below the Briefing.com consensus estimate, which called for an increase of 0.5%.

Tomorrow, the New Home Sales report for April will be released at 10:00 ET.

S&P 500 +2.4% YTD
Dow Jones Industrial Average -0.2% YTD
Nasdaq Composite -0.5% YTD
Russell 2000 -4.0% YTD

3:30 pm: [BRIEFING.COM]

June gold and July silver rallied to their respective session highs of $1304.10 per ounce and $19.83 per ounce moments after pit trade opened. However, both metals pulled back from the highs and trended lower in morning action.
Gold trimmed gains to 0.5% as it settled at $1295.00 per ounce while silver settled at $19.52 per ounce, or 1.0% higher.
July crude oil chopped around near the unchanged line in early morning floor trade, touching a session high of $104.21 per barrel. It slipped into the red in late morning action and eventually settled 0.3% lower at $103.73 per barrel.
June natural gas brushed a session high of $4.51per MMBtu just before the EIA reported that inventories for the week ending May 16 showed a build of 106 bcf when a smaller build of 100-103 bcf was anticipated.
It then sold-off sharply into negative territory and continued to trend lower. Unable to regain momentum, it settled with a 2.5% loss at $4.36 per MMBtu.

3:00 pm: [BRIEFING.COM] The S&P 500 trades higher by 0.4% with one hour remaining in the session. If the benchmark index ends up settling at its current level, it will extend its weekly gain to 1.0%. That would put the S&P 500 in between the other averages as the Dow holds a week-to-date gain of 0.4%, while the Russell 2000 and Nasdaq hold respective gains of 1.3% and 1.7%.

Following today's closing bell, participants will receive quarterly earnings from about 25 companies. Most notably, Hewlett-Packard (HPQ 33.31, +0.79), Gap (GPS 40.78, +0.22), Ross Stores (ROST 68.05, -0.03), and Gamestop (GME 36.85, -0.09) will be reporting this evening.

Tomorrow morning is shaping up to be very quiet in terms of earnings with only Foot Locker (FL 48.15, +0.59) and Hibbett Sports (HIBB 56.82, +0.28) on the schedule.

2:30 pm: [BRIEFING.COM] Stocks remain near their recent levels with the S&P 500 trading higher by 0.4%. Even though the benchmark index has not moved from its session high, today's leading sectors have.

Utilities and health care have narrowed their gains to 0.8% and 0.7%, respectively, but that has had little impact on the broader market as technology (+0.5%) overtook the S&P 500 after underperforming through the first half of the session.

High-beta tech components like chipmakers have shown strength throughout the day, while top-weighted index members struggled earlier. Some of the morning laggards like Apple (AAPL 609.18, +2.87) and Oracle (ORCL 41.71, +0.03) have climbed off their lows and now trade in the green.

2:00 pm: [BRIEFING.COM] Recent action saw the S&P 500 (+0.4%) extend to a fresh session high. Like the S&P 500, the financial sector (+0.5%) has also registered a new session best. Despite today's gain, financials remain in the red for the month of May. However, the sector has been able to narrow its month-to-date loss to just 0.1%.

Outside of financials, only two other sectors are down for the month. The consumer staples sector sports a comparable loss of 0.1%, while the utilities space is lower by 3.5% so far in May.

On the upside, telecom services and health care sectors hold respective gains of 2.7% and 1.4%.

1:25 pm: [BRIEFING.COM] The major indices have maintained a posture above the unchanged mark for most of today's session. As previously stated, the small-cap stocks have been the standout performer today.

Another standout performer, and a curious one at that, has been the utilities sector (+1.0%). It is the best-performing S&P 500 sector today, which is striking considering the growth-oriented small-cap stocks are doing so well and longer-dated Treasury securities are weak, pushing the yields on the benchmark 10-yr note and the 30-yr bond up two basis points to 2.56% and 3.44%, respectively.

The favoritism of a defensive-oriented sector doesn't convey a lot of faith in the notion that the risk-on trade is back with conviction in the stock market. This is something to watch and something that will be discussed in retrospect as an early warning sign should the broader market, and the Russell 2000 in particular, weaken in the afternoon trade.

12:55 pm: [BRIEFING.COM] At midday, the major averages hover near their highs, but small caps are having a much better showing than their blue chip counterparts. The Russell 2000 trades higher by 1.0%, while the Dow Jones Industrial Average holds a slim gain of just 0.1%. For its part, the S&P 500 trades up 0.3% with nine sectors showing gains.

The relationship between small- and large-cap stocks has been all over the place this week. Small caps outperformed on Monday, but lagged on Tuesday and Wednesday. Today, however, they are back in the lead.

With small caps showing strength, the Russell 2000 is nearing another test of its 200-day moving average after being met with a swift rejection on its last attempt. For the time being, the relative strength of the Russell has lured participants into pushing the overall market higher.

The utilities sector (+1.0%) is today's top performer, but due to its small share of the entire S&P 500 (3.0%), its outperformance is not as significant as the strength within the third largest sector-health care (+0.8%). The countercyclical group has received considerable support from biotechnology as the iShares Nasdaq Biotechnology ETF (IBB 235.54, +5.80) trades higher by 2.5%. Furthermore, the ETF has rallied above its 50-day moving average for the first time since late March.

In addition to underpinning the health care sector, biotechnology has given a boost to the Nasdaq, which is overshadowing the underperformance of the technology sector (+0.1%). Like the Russell 2000, high-beta components are in a position of strength, while large caps lag. Apple (AAPL 605.95, -0.34), Cisco Systems (CSCO 24.33, -0.15), and Microsoft (MSFT 39.99, -0.36) are all down between 0.1% and 0.9%.

On the fixed income side, Treasuries hold modest losses with the 10-yr yield up two basis points at 2.55%.

Today's economic data featured weekly initial claims, the Existing Home Sales report for April, and April Leading Indicators:

Weekly initial claims increased from 298,000 to 326,000, while the Briefing.com consensus expected a reading of 305,000. In all likelihood, last week's sharp drop was an aberration rather than a change in labor market conditions, considering levels quickly returned into the 320,000-330,000 range.
Existing home sales increased a modest 1.3% to 4.65 million SAAR in April from 4.59 million SAAR in March. The gain ended three consecutive months of sales declines. The Briefing.com consensus expected existing home sales to increase to 4.66 million. The increase in sales coincided with improvements in mortgage applications and a gain in the pending home sales index. Still, sales are down 6.8% from April 2013. Sales fell 1% in the Midwest and were flat in the Northeast. Gains of 4.9% and 1.0% were seen out West and in the South.
The Leading Indicators report for April increased 0.4%. That followed a revised 1.0% increase in March, and was below the Briefing.com consensus estimate, which called for an increase of 0.5%.

12:30 pm: [BRIEFING.COM] Not much change since our last update as equity indices continue drifting near their highs. The first three sessions of the week produced below-average NYSE floor volume with totals ranging between 573 million and 635 million versus a 200-day average of 701.6 million. In fact, totals from Monday and Wednesday ranked among the lowest tallies registered so far in 2014.

In all likelihood, today's final trading volume will fall right in line with the remainder of the week as only 223 million shares have changed hands at the NYSE so far.

12:00 pm: [BRIEFING.COM] The S&P 500 trades higher by 0.3% with nine sectors showing gains between 0.2% and 0.8%. The health care sector is the top performer with biotechnology responsible for the bulk of the gain.

The iShares Nasdaq Biotechnology ETF (IBB 235.86, +6.12) trades up 2.7% after regaining its 50-day moving average earlier in the session. The biotech ETF has clawed its way back above the key technical level after falling below this mark on March 21.

It is also worth mentioning that biotech has contributed to the outperformance of the Nasdaq Composite (+0.7%), which has not gotten too much help from the technology sector (+0.2%). The largest tech (and Nasdaq) component-Apple (AAPL 605.78, -0.53)-hovers right below its flat line, while several other influential sector members also sit in the red.

11:30 am: [BRIEFING.COM] Stocks remain just below their highs with the Russell 2000 (+1.2%) maintaining the lead. Even though small caps are showing noteworthy strength, the same cannot be said about blue chip issues.

The price-weighted Dow Jones Industrial Average (+0.1%) hovers right above its flat line as 18 of its 30 components register gains. However, none of the 18 names show gains of 1.0% or more. Boeing (BA 132.15, +1.19) and Pfizer (PFE 29.78, +0.21) are the top two performers with respective increases of 0.9% and 0.8%.

On the downside, Coca-Cola (KO 40.56, -0.31) and Microsoft (MSFT 39.99, -0.36) are both down near 0.8% apiece.

10:55 am: [BRIEFING.COM] Equity indices hover near their best levels of the session with the S&P 500 trading higher by 0.3%.

The Dow and S&P 500 finished yesterday's session in the lead, but today they are only showing slim gains, while small caps outperform with the Russell 2000 up 1.0%. The small cap index has been volatile as of late, but sellers have been unable to pressure it to a close below the February 5 closing low of 1093.59.

Elsewhere, Treasuries notched their highs shortly before the opening bell, and have been slipping since. The benchmark 10-yr yield is higher by nearly two basis points at 2.55%.

With stocks pushing higher, participants are shying away from volatility protection, sending the CBOE Volatility Index (VIX 11.70, -0.21) lower by 1.8% after the near-term volatility gauge ended yesterday's session at its lowest level since August.

10:35 am: [BRIEFING.COM]

Despite modest strength in the dollar index, gold and silver futures are trading higher this morning
Both gold and silver popped higher after pit trading open, but those gains have been disappearing.
June gold rose as high as $1304.10/oz. June gold is now +0.8% at $1298.50/oz, July silver is +1.3% at $19.59/oz
Natural gas futures sold off ahead of inventory data and fell as low as $4.43/MMBtu.
Following the data, nat gas fell to a new session low. June nat gas is now -2% at $4.39/MMBtu.
Crude oil is choppy and the July contract is now flat at $104.07/barrel.
July copper is +0.6% at $3.14/lb.

10:00 am: [BRIEFING.COM] The S&P 500 has climbed off its low and now trades higher by 0.2%. Eight of ten sectors now find themselves in the green, while consumer staples (-0.3%) and energy (-0.2%) lag.

Just reported, April existing home sales hit an annualized rate of 4.65 million units, while the Briefing.com consensus expected a reading of 4.66 million. The pace for April was up from the prior month's unrevised rate of 4.59 million units.

Separately, the Leading Indicators report for April increased 0.4%. That followed a revised 1.0% increase in March, and was below the Briefing.com consensus estimate, which called for an increase of 0.5%.

9:40 am: [BRIEFING.COM] The major averages began the session on a mixed note. The Russell 2000 trades higher by 0.3%, while the S&P 500 hovers right below its flat line with five sectors trading in the red.

Even though half of the economic groups hover below their flat lines, the losses have been contained to no more than 0.2% so far. Countercyclical health care and consumer staples are the two weakest performers, while five of six cyclical groups hold even slimmer losses. The lone outperformer among those sectors-consumer discretionary-trades higher by 0.2%.

Treasuries have not moved much since the opening bell and the 10-yr yield remains higher by one basis point at 2.54%.

9:12 am: [BRIEFING.COM] S&P futures vs fair value: +0.90. Nasdaq futures vs fair value: +4.20. The stock market is on track for a subdued open as futures on the S&P 500 trade right above fair value. Index futures jumped overnight after China's HSBC Manufacturing PMI increased for the second consecutive month (to 49.7 from 48.1). Despite the continued improvement, the index remained below 50, which represents the line between contraction and expansion.

After the data from China crossed the wires, futures began a steady retreat, which continued into the European session. Data from Europe has not done much to improve the sentiment as French Manufacturing and Services PMI readings slipped into contraction, while the Eurozone Manufacturing PMI (52.5 from 53.4) missed estimates. For its part, the Services PMI reading (53.5 from 53.1) came in ahead of estimates.

Turning the focus back to the U.S., participants received the latest weekly initial claims report, which indicated an increase in claims from 298,000 to 326,000, while the Briefing.com consensus expected a reading of 305,000. In all likelihood, last week's sharp drop was an aberration rather than a change in labor market conditions, considering levels quickly returned into the 320,000-330,000 range.

Couple more data points remain on today's schedule with the Existing Home Sales report for April (Briefing.com consensus 4.66 million) and the April Leading Indicators report (consensus 0.5%) set to be released at 10:00 ET.

Treasuries hover just below their flat lines. The benchmark 10-yr yield is higher by less than a basis point at 2.54%.

8:55 am: [BRIEFING.COM] S&P futures vs fair value: +0.80. Nasdaq futures vs fair value: +3.70. The S&P 500 futures trade one point above fair value.

Asian markets rallied across the board with only China's Shanghai Composite (-0.2%) seeing losses. In news of note, Thailand's military has seized control of the government in a coup d' tat. The announcement came after Thailand's SET was closed.

In economic data:
China's HSBC Flash Manufacturing PMI improved to 49.7 (48.4 expected, 48.1 previous), but remained in contraction for a fifth straight month.
Hong Kong's inflation rate slowed to 3.7% year-over-year from 3.9%.
Taiwan's unemployment rate slipped to 4.0% from 4.1%.

------

Japan's Nikkei surged 2.1% to a one-week high, supported by the weaker yen. Exporters gained as Toyota Motor added 0.9% and Sony tacked on 1.2%.
Hong Kong's Hang Seng rallied 0.5% to its best level in five weeks. Casino stocks gained with Galaxy Entertainment and Sands China tacking on 2.0% and 1.8%, respectively.
China's Shanghai Composite shed 0.2%, giving up its early gains. Coal plays weighed with Yanzhou Coal Mining falling 2.0%.

Core European indices trade little changed, while peripheral markets lag after the release of regional PMI readings that were mixed.

Economic data:
Eurozone Manufacturing PMI fell to 52.5 from 53.4 (expected 53.2), while Services PMI improved to 53.5 from 53.1 (consensus 53.0).
Germany's Manufacturing PMI fell to 52.9 from 54.1 (expected 54.0), while Services PMI rose to 56.4 from 54.7 (consensus 54.5).
Great Britain's GDP rose 0.8% quarter-over-quarter, as expected. Separately, Business Investment increased 2.7% quarter-over-quarter (consensus 2.3%, prior 2.4%) and Public Sector Net Borrowing rose GBP9.63 billion (expected GBP3.50 billion, prior GBP6.07 billion). Also of note, CBI Industrial Trends Orders ticked up to 0 from -1 (expected 4).
French Manufacturing PMI decreased to 49.3 from 51.2 (consensus 51.0), while Services PMI fell to 49.2 from 50.4 (expected 50.2). Also of note, Business Survey slipped to 99 from 100 (expected 100).

------

Germany's DAX is flat. Steelmaker ThyssenKrupp outperforms with a gain of 0.9%, while software company SAP sits at the bottom with a loss of 1.4%.
Great Britain's FTSE is lower by 0.1%. Royal Mail is the weakest performer, down 7.8% after issuing a warning. On the upside, miners Antofagasta, Fresnillo, and Randgold Resources hold gains between 1.5% and 2.7%.
In France, the CAC holds a loss of 0.2%. Electricite de France leads the retreat with a loss of 4.1%. Alstom is the top performer, up 2.5%.
Italy's MIB trades down 1.3% amid weakness in financials. Intesa Sanpaolo, Mediobanca, and UnipolSai hold losses between 2.4% and 5.9%.

8:32 am: [BRIEFING.COM] S&P futures vs fair value: +1.10. Nasdaq futures vs fair value: +4.50. The S&P 500 futures trade one point above fair value.

The latest weekly initial jobless claims count totaled 326,000, which was higher than the 305,000 that had been expected by the Briefing.com consensus. Today's tally was above the revised prior week count of 298,000 (from 297,000). As for continuing claims, they fell to 2.653 million from 2.666 million.

8:00 am: [BRIEFING.COM] S&P futures vs fair value: +0.50. Nasdaq futures vs fair value: +4.00. U.S. equity futures hover near their pre-market lows amid cautious action overseas. The S&P 500 futures trade in line with fair value.

Reviewing overnight developments:

Asian markets ended mostly higher. Hong Kong's Hang Seng +0.5%, Japan's Nikkei +2.1%, and China's Shanghai Composite -0.2%.
In regional economic data:
China's HSBC Manufacturing PMI rose to 49.7 from 48.1 (expected 48.1).
Japan's Manufacturing PMI ticked up to 49.9 from 49.4.
Hong Kong's CPI rose 3.7% year-over-year (consensus 3.9%, previous 3.9%).
Australia's MI Inflation Expectations rose to 4.4% from 4.2%.
New Zealand's Inflation Expectations increased 2.4% quarter-over-quarter (prior 2.3%).
In news:
In Thailand, the country's army has declared a coup d' tat, taking control of the government.

Core European indices trade little changed, while peripheral markets lag. France's CAC -0.3%, Great Britain's FTSE -0.1%, and Germany's DAX +0.1%. Elsewhere, Spain's IBEX -0.3% and Italy's MIB -1.1%.
Participants received several data points:
Eurozone Manufacturing PMI fell to 52.5 from 53.4 (expected 53.2), while Services PMI improved to 53.5 from 53.1 (consensus 53.0).
Germany's Manufacturing PMI fell to 52.9 from 54.1 (expected 54.0), while Services PMI rose to 56.4 from 54.7 (consensus 54.5).
Great Britain's GDP rose 0.8% quarter-over-quarter, as expected. Separately, Business Investment increased 2.7% quarter-over-quarter (consensus 2.3%, prior 2.4%) and Public Sector Net Borrowing rose GBP9.63 billion (expected GBP3.50 billion, prior GBP6.07 billion). Also of note, CBI Industrial Trends Orders ticked up to 0 from -1 (expected 4).
French Manufacturing PMI decreased to 49.3 from 51.2 (consensus 51.0), while Services PMI fell to 49.2 from 50.4 (expected 50.2). Also of note, Business Survey slipped to 99 from 100 (expected 100).
Among news of note:
The upbeat sentiment that followed the Asian session faded as European investors received PMI readings that were mixed. Most notably, French PMI readings have slipped back into contraction (below 50).

In U.S. corporate news:

Best Buy (BBY 24.05, -1.30): -4.9% after missing revenue estimates and guiding comparable store sales for the upcoming two quarters below analyst expectations.
Movado Group (MOV 35.34, -2.68): -7.1% after missing on earnings and revenue.
NetApp (NTAP 34.70, +0.21): +0.6% after reporting a bottom-line beat on below-consensus revenue.
SINA (SINA 45.60, -2.26): -4.7% after its below-consensus Q2 revenue guidance overshadowed its earnings beat.
Williams-Sonoma (WSM 67.32, +3.59): +5.6% after beating earnings and revenue expectations.
Weibo (WB 19.00, -1.25): -6.2% despite beating estimates and guiding above consensus.

Weekly initial claims (Briefing.com consensus 305K) will be released at 8:30 ET, while the Existing Home Sales report for April (consensus 4.66 million) and the April Leading Indicators report (consensus 0.5%) will cross the wires at 10:00 ET.

6:34 am: [BRIEFING.COM] S&P futures vs fair value: +2.00. Nasdaq futures vs fair value: +4.50.

6:34 am: [BRIEFING.COM] Nikkei...14337.79...+295.60...+2.10%. Hang Seng...22953.76...+117.20...+0.50%.

6:34 am: [BRIEFING.COM] FTSE...6824.01...+3.00...+0.10%. DAX...9715.54...+17.70...+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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