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 Post subject: June 5th Thursday Trade Results - Profit $3812.50
PostPosted: Fri Jun 06, 2014 12:40 am 
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Joined: Sat Jan 10, 2009 2:06 pm
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Trade Results of M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
Price Action Trading (no technical indicators)
Phone: +1 708 572-4885
Free Chat Room: http://www.thestrategylab.com/tsl/forum/viewforum.php?f=164
Business Hours: 8am - 5pm est (Mon - Fri)
questions@thestrategylab.com (24/7)
http://twitter.com/wrbtrader (24/7)

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

Price Action Trade Performance for Today: Emini TF ($TF_F) futures @ $3,250.00 dollars or +32.50 points, Emini ES ($ES_F) futures @ $562.50 dollars or +11.25 points, Light Crude Oil CL ($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 @ $3,812.50 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=131&t=1810

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=240&t=2365

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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 Soar Thanks To ECB, Hedge Fund

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

NEW YORK (CNNMoney)
You can thank two men for Thursday's zooming stock prices: Mario Draghi and David Tepper.

Stocks shattered all-time records after Draghi and the European Central Bank unleashed negative interest rates to fuel growth. And then the markets raced even higher after Tepper, the hedge fund heavyweight, revealed he's no longer nervous about the market.

The burst of buying leaves both the Dow Jones industrial average and S&P 500 at fresh all-time highs. Both indexes closed about 0.6% higher. The Dow is now less than 170 points away from the 17,000 threshold. The Nasdaq built on Wednesday's advance by soaring 1.26%, while the small-cap Russell 2000 surged almost 2%.

Here are five things you need to know about the global markets on Thursday:

1. More easy money!: U.S. capital markets tend to take their cues from Janet Yellen & Co. at the Federal Reserve, but recently they've been moved by Mario Draghi's efforts to breathe life into the European economy.

Hoping to encourage inflation and spur bank lending, the ECB cut interest rates, as expected, to a record low and set a negative deposit rate on Thursday.

The negative rate is meant to penalize banks that decide to park their cash at the central bank instead of lending it out to businesses and consumers. But it's not like Draghi has a credible playbook to follow to avoid unintended consequences -- the ECB is the first major central bank to move into negative territory.

Still, investors liked the moves as European markets shook off an earlier malaise to close sharply higher.

Related: ECB cuts rates

2. Tepper's words of wisdom: U.S. stocks achieved liftoff after CNBC reported that Tepper, the founder of Appaloosa Management, said his chief market concerns have been "alleviated" in part due to the ECB move.

Tepper spooked many investors last month by saying he's "nervous" about stock prices and preaching caution given concerns about U.S. and European growth and China's slowdown.

But Tepper, who hauled in $3.5 billion in pay last year, now believes all of those fears "one by one" have been eased.

That was enough to send the Dow surging as high as 16,845.8, a new all-time intraday record. The S&P 500 climbed as high as 1,941.7.

"I see this continuing in the short term, and it could end in a climactic melt up before the inevitable pullback to reality," said Michael Block, chief market strategist at Rhino Trading.

Record breaking has become commonplace on Wall Street. Thursday marked the S&P 500's 17th record close this year alone. Still, it's worth noting the index is still trading below its all-time inflation-adjusted highs.

Related: These stock market 'records' aren't that great

3. GM in the spotlight: General Motors (GM) released the findings of its internal investigation into the ignition switch defect and massive recall today.

GM has issued recalls for 2.6 million cars over a technical problem linked to the deaths of at least 13 people. In total, GM has recalled 15.8 million vehicles worldwide this year.

GM CEO Mary Barra pledged to do the "right thing" for victims and said the auto maker fired 15 people for misconduct, incompetence or failure to act over the scandal. Barra said the report found a pattern of incompetence and neglect, but no conspiracy to cover up the defects.

Shares of the automaker rallied 3% of Wednesday, but closed down 0.7% on Thursday.

4. T-Mobile, Twitter & other stock movers: Should Twitter (TWTR, Tech30) follow Apple's (AAPL, Tech30) lead into music? Investors apparently believe so. Shares of Twitter climbed 3% after the Financial Times reported Twitter recently considered acquiring online music services Soundcloud, Spotify or even Pandora (P) in a bid to find new sources of growth.

Meanwhile, T-Mobile (TMUS) dropped over 2% amid reports the company and Sprint (S) are once again moving towards a potential marriage -- in the face of serious regulatory skepticism. Sprint shares experienced an even more negative reaction, dropping 4%.

While a deal could be blocked by antitrust or telecom regulators, the No. 3 and No. 4 wireless providers feel they need to team up to compete with industry leaders AT&T (T, Tech30)and Verizon (VZ, Tech30).

Shares of Ciena (CIEN) surged over 18% after the company unveiled a bullish outlook for the second half of 2014. Ciena's quarterly profits and sales also exceeded Wall Street's expectations.

Wall Street punished shares of Rite Aid, (RAD) driving the drug store retailer 7% lower on its gloomy outlook. Rite Aid cited higher-than-expected drug costs.

Joy Global (JOY) popped over 6.5% after the mining equipment maker logged profits that easily beat expectations despite the industry slowdown. Larger rival Caterpillar (CAT) enjoyed a spillover effect, climbing more than 2.5%.

J.M. Smucker (SJM)rallied over 1.4% after reporting a lower drop in profits and sales than analysts had feared. The maker of Folgers was hurt by lower coffee prices and earlier this week announced plans to raise the price of its coffee products by 9%.

5. Earnings and economic data: The Labor Department said 312,000 Americans filed for unemployment benefits last week, up from 304,000 the week before.

But Wall Street is already looking ahead to Friday's all-important jobs report, which economists surveyed by CNNMoney predict will show the U.S. added 200,000 jobs in May. The unemployment rate is expected to tick up to 6.4%.

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4:15 pm: [BRIEFING.COM] The stock market finished the Thursday session on an upbeat note after receiving a shot in the arm from an easing announcement made by the European Central Bank. Small-cap stocks led the way with the Russell 2000 climbing 2.1%, while the S&P 500 advanced 0.7% with all ten sectors posting gains.

This morning, the European Central Bank announced several easing measures after the past few months were filled with speculation surrounding potential stimulus from the ECB. The central bank lowered all three of its interest rates (main refinancing rate to 0.15% from 0.25%, marginal lending facility rate to 0.40% from 0.75%, and deposit facility rate to -0.10% from 0.00%), announced the deployment of a targeted long term refinancing operation [LTRO], and said preparations for purchases of asset-backed securities have begun. In addition, the ECB announced it will stop sterilizing purchases under its Securities Market Program [SMP].

One of the factors that forced the action was the continued strength of the euro, which has been stubbornly holding just below its best level since late 2011. Today's announcement knocked the single currency down...for about three hours. The euro/dollar pair slumped from 1.3600 to 1.3500 following the announcement, but rallied all the way to 1.3655 by the end of the New York session. Conversely, the Dollar Index (80.39, -0.28), which was boosted initially, slumped to lows by the close.

Meanwhile, equity indices began with slim gains, but slipped into the red during the first hour of action. However, that weakness did not stick as small-caps bounced, taking the broader market along for the ride.

To be sure, the market also received an encouraging push from fund manager David Tepper, who said his chief market concerns have been alleviated by today's ECB action. This came after Mr. Tepper caused quite a market stir with a comment not that long ago that "it's nervous time" and that he wouldn't advise getting "too freakin' long." In all fairness, Mr. Tepper did not advise shorting the market in his prior comments, but today's remarks were decidedly more optimistic.

The industrial sector (+1.1%) ended in the lead, thanks in part to a 6.7% gain in the shares of Joy Global (JOY 61.70, +3.85) after the company reported better than expected earnings. Dow component Caterpillar (CAT 106.96, +2.65) rallied in sympathy, while other areas of the sector like defense contractors (PHLX Defense Index +1.5%) and transport stocks (Dow Jones Transportation Average +0.8%) also displayed relative strength.

Industrials notwithstanding, three of the remaining five cyclical sectors also finished ahead of the broader market, while energy (+0.6%) and materials (+0.4%) lagged. Meanwhile, the countercyclical side saw relative strength among utilities (+0.8%), while consumer staples (+0.4%), health care (+0.2%), and telecom services (+0.04%) lagged.

Interestingly, the underperformance of the health care sector did not stop biotechnology from rallying alongside other high-growth names. The iShares Nasdaq Biotechnology ETF (IBB 245.19, +1.72) climbed 0.7%.

Strikingly, the broad-based rally did not lure money away from the Treasury market. The 10-yr note slumped immediately following the release, but rallied off those lows, ending higher by five ticks with its yield down two basis points at 2.58%.

Today's participation marked an improvement from recent days, but the final tally of 615 million was still below the longer-term average of 700 million.

Economic data was limited:
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Initial claims for the week ending May 31 were 312,000. That was up 8,000 from an upwardly revised reading of 304,000 (from 300,000) in the prior week and basically in-line with the Briefing.com consensus estimate. According to the Department of Labor, there were no special factors impacting the initial claims reading. The latest entry left the four-week moving average at 310,250, down 2,250 from the previous week's revised average. That is the lowest four-week moving average since June 2007.
Continuing claims fell by 20,000 to 2.603 mln (Briefing.com consensus 2.650 mln) for the week ending May 24 versus a downwardly revised 2.623 mln (from 2.631) in the prior week. That left the four-week moving average for this series at 2.635 mln, down 18,250 from the prior week. That is the lowest level since December 2007.

Tomorrow, the Nonfarm Payrolls report for May will be released at 8:30 ET (Briefing.com consensus 220K), while the April Consumer Credit report (consensus $15.00 billion) will cross the wires at 15:00 ET.

S&P 500 +5.0% YTD
Nasdaq Composite +2.9% YTD
Dow Jones Industrial Average +1.6% YTD
Russell 2000 -0.7% YTD

2:55 pm: [BRIEFING.COM] The S&P 500 trades higher by 0.6% with one hour remaining in today's session.

Going into this week, there were two highly-anticipated events on the calendar. The first occurred today when the European Central Bank announced additional easing measures, while tomorrow will be headlined by the release of the Nonfarm Payrolls report for May. The Briefing.com consensus expects the report to reveal the addition of 220,000 jobs, while the unemployment rate is expected to tick up to 6.4% from 6.3%.

Outside of the jobs report, which will be released at 8:30 ET, participants will also receive the Consumer Credit report for April. The Federal Reserve will release the data at 15:00 ET and the Briefing.com consensus expects the report to indicate that consumer credit expanded by $15.00 billion in April.

2:30 pm: [BRIEFING.COM] The stock market remains near its best level of the session with the Nasdaq Composite (+1.0%) and Russell 2000 (+2.0%) trading ahead of the S&P 500 (+0.7%) and the Dow Jones Industrial Average (+0.6%).

The price-weighted Dow trades a bit behind the S&P 500 as six of its 30 components hover in the red. However, of the six decliners, only two names-Nike (NKE 75.70, -0.43) and UnitedHealth (UNH 79.93, -0.58)-trade with losses larger than 0.3%. The two stocks are lower by 0.6% and 0.7%, respectively.

On the upside, seven index members sport gains in excess of 1.0% with Caterpillar (CAT 106.91, +2.60) in the lead. The stock trades up 2.5% after its peer Joy Global (JOY 61.36, +3.52) reported an earnings beat.

2:05 pm: [BRIEFING.COM] Equity indices remain near their session highs that were notched roughly 90 minutes ago. The industrial sector (+1.1%) continues holding the lead, while consumer discretionary (+0.7%) and financials (+0.8%) follow not far behind.

Of course today's headline event was the easing announcement from European Central Bank President Mario Draghi, who unleashed a torrent of easing measures aimed at improving region-wide growth while also putting a stop to disinflation.

In part, the decision to deploy easing measures was driven by the recent strength of the euro. As such, the single currency tumbled in reaction to today's announcement, but an impressive turnaround has taken it to a fresh session high. The euro/dollar pair traded near 1.3600 ahead of the announcement and dropped to 1.3500 after. However, at this time, the currency pair trades at 1.3655, which represents the highest level since May 27.

1:30 pm: [BRIEFING.COM] The stock market continues to trade with a bullish bias, aided in part by comments from influential hedge fund manager David Tepper, who said his chief market concerns have been alleviated. Recall that Mr. Tepper caused quite a market stir with a comment not that long ago that "it's nervous time" and that he wouldn't advise getting "too freakin' long."

To be fair, Mr. Tepper never said to short the market, so his prior view wasn't as truly bearish as it was made out to be; nonetheless, participants today appear to be enthused by his sigh of relief and are using that, and an instinctive reaction to central bank policy stimulus, to push prices higher.

Not surprisingly, some of the speculative flair that has been missing of late is on display again, evidenced by the 1.7% jump in the Russell 2000 and the 4.7% drop in the CBOE Volatility Index (VIX 11.53, -0.55).

The Treasury market for its part looks content to let the stock market have its fun for the time being. After being down shortly after the ECB announcement this morning, the 10-yr note has bounced back, having pressed higher at the same time the stock market has. The benchmark instrument is currently up six ticks, lowering its yield two basis points to 2.58%

12:55 pm: [BRIEFING.COM] At midday, the major averages are near their best levels of the session with small-cap stocks well ahead of the broader market. The Russell 2000 is higher by 1.9%, while the S&P 500 holds a more modest gain of 0.6% with nine sectors trading in the green.

Prior to the open, the European Central Bank announced several easing measures after the past few months were filled with speculation surrounding potential stimulus from the ECB. The central bank lowered all three of its interest rates (main refinancing rate to 0.15% from 0.25%, marginal lending facility rate to 0.40% from 0.75%, and deposit facility rate to -0.10% from 0.00%), announced the deployment of a targeted long term refinancing operation [LTRO], and said preparations for purchases of asset-backed securities have begun. In addition, the ECB announced it will stop sterilizing purchases under its Securities Market Program [SMP].

The euro slumped in reaction to the news, falling from the 1.3600 area to 1.3500 versus the dollar, but the move reversed swiftly. At this juncture, the euro/dollar pair hovers near 1.3639. Meanwhile, equity indices displayed some early weakness, but they too reversed rather swiftly.

The pledge of additional stimulus from a major central bank has boosted all six cyclical sectors, but their gains pale in comparison to the Russell 2000, which has surged past its 50-day moving average (1132), while also regaining its 100-day average (1148) for the first time since mid-April.

Furthermore, the increased risk tolerance has also contributed to strength in the biotech space. The iShares Nasdaq Biotechnology ETF (IBB 246.60, +3.13) trades up 1.3%, but the broader health care sector (+0.4%) has been a bit more tentative in its advance.

Outside of biotechnology, recently-batter tech names have also benefitted from the gains in small caps. For instance, FireEye (FEYE 32.89, +2.43), Splunk (SPLK 42.46, +2.08), and Workday (WDAY 80.15, +3.35) are up between 4.4% and 8.1%. The overall tech sector (+0.7%), meanwhile, trades just ahead of the broader market.

Interestingly, the rally in equities has not led to participants reducing their exposure to Treasuries. In fact, the 10-yr note is higher by six ticks with its yield down two basis points at 2.58%.

Economic data was limited:

Initial claims for the week ending May 31 were 312,000. That was up 8,000 from an upwardly revised reading of 304,000 (from 300,000) in the prior week and basically in-line with the Briefing.com consensus estimate. According to the Department of Labor, there were no special factors impacting the initial claims reading. The latest entry left the four-week moving average at 310,250, down 2,250 from the previous week's revised average. That is the lowest four-week moving average since June 2007.
Continuing claims fell by 20,000 to 2.603 mln (Briefing.com consensus 2.650 mln) for the week ending May 24 versus a downwardly revised 2.623 mln (from 2.631) in the prior week. That left the four-week moving average for this series at 2.635 mln, down 18,250 from the prior week. That is the lowest level since December 2007.

12:30 pm: [BRIEFING.COM] The S&P 500 has extended its gain to 0.6%, but the Russell 2000 has made an even more impressive move higher that has the small-cap index trading up 1.9% at this time.

At the end of May, the Russell 2000 ran into resistance at its 50-day moving average (1132), which caused the index to slip from its May high. The index did not drop too far below that level thanks to the 200-day moving average (1123), which served as support. Today, however, the index has surged past its 50-day moving average while also regaining the 100-day average (1148) for the first time since mid-April.

The strength in small-caps has carried over into other areas like biotechnology and high-growth tech names. The iShares Nasdaq Biotechnology ETF (IBB 246.00, +2.53) is higher by 1.0%, while the likes of Facebook (FB 64.00, +0.65), FireEye (FEYE 32.88, +2.42), and Yelp (YELP 65.45, +0.87) display gains between 1.1% and 7.9%.

12:00 pm: [BRIEFING.COM] Recent action saw the health care sector (+0.1%) join the other nine groups in the green. The sector currently occupies the basement of today's leaderboard alongside telecom services (+0.1%).

Meanwhile, the six cyclical sectors display solid gains with industrials (+0.9%) remaining in the lead. In part, the industrial space owes its outperformance to shares of Boeing (BA 137.25, +1.92), which trade higher by 1.5%. The Dow component has also boosted the PHLX Defense Index, which has extended its gain to 1.1%.

As mentioned earlier, Treasuries continue moving up ever so slightly with the 10-yr yield now at 2.58%.

11:30 am: [BRIEFING.COM] Equity indices have climbed to fresh session highs with the Russell 2000 (+0.5%) continuing its outperformance over the S&P 500 (+0.3%). In all likelihood, the major averages received a boost from comments made on CNBC by fund manager David Tepper. During his appearance, Mr. Tepper said that despite being nervous about the market recently, his concerns have been alleviated by today's ECB action.

Just about every sector finds itself in the green at this time with industrials (+0.7%) in the lead, while the lone decliner-health care-sits just below its flat line.

Interestingly, the rally in equities has not lured money away from the Treasury market. On the contrary, the 10-yr note has inched higher and now trades up four ticks with its yield down two basis points at 2.59%.

11:00 am: [BRIEFING.COM] The major averages have returned into the green after making a brief appearance in the red. The S&P 500 hovers right above its flat line with six sectors showing gains; however, of those six, only three groups-energy (+0.2%), industrials (+0.4%), and utilities (+0.6%)-display gains larger than 0.1%.

The industrial sector has received broad support from defense contractors (PHLX Defense Index +0.6%), transports (Dow Jones Transportation Average +0.3%), and machinery stocks. Notably, Joy Global (JOY 60.90, +3.05) is higher by 5.3% after reporting a bottom-line beat.

Elsewhere, Treasuries remain in the green with the 10-yr yield down one basis point at 2.60%.

10:30 am: [BRIEFING.COM]

The dollar index fell further and hit a new LoD in recent trade, helping provide strength in gold and silver futures
On the other side, crude oil and copper remain in the red
July crude oil is currently -0.8% at $101.81/barrel and July copper is -0.5% at $3.08/lb
Natural gas has been in positive territory all day so far and was about +0.4% ahead of weekly data
Following weekly data, nat gas dropped to a new low on the day and is currently -1% at $4.59/MMBtu
Aug gold is near its high for the day, now at $1254.40/oz, up 0.8%, while July silver is +1.3% at $19.04/oz

10:00 am: [BRIEFING.COM] Equity indices have slumped from their early highs, sending the S&P 500 back to its flat line. At this juncture, the ten economic sectors are split evenly with five up and five down.

The largest S&P 500 sector, technology (+0.1%), continues showing relative strength, while heavily-weighted financials (+0.1%) and industrials (+0.3%) also trade ahead of the broader market. Meanwhile, the health care sector (-0.2%) lags despite the strength in biotechnology. The iShares Nasdaq Biotechnology ETF (IBB 244.47, +1.00) is higher by 0.4%

Also of note, Treasuries have returned into positive territory after notching session lows following the ECB easing announcement. The 10-yr yield is lower by one basis point at 2.59%.

9:40 am: [BRIEFING.COM] The stock market began the session on an upbeat note with small-caps stocks leading the way. The Russell 2000 is higher by 0.4%, while the S&P 500 sports a slim gain of 0.1% with six sectors trading in the green.

Even though most sectors trade higher, their gains have been limited to no more than 0.3% (industrials and technology). On the downside, health care (-0.2%) and materials (-0.1%) hold slim losses.

Treasuries continue showing modest losses with the 10-yr yield hovering at 2.61%.

Also of note, European Central Bank President Mario Draghi has just concluded his press conference.

9:14 am: [BRIEFING.COM] S&P futures vs fair value: +3.50. Nasdaq futures vs fair value: +4.70. The stock market is on track to begin today's session on a modestly higher note as futures on the S&P 500 trade four points above fair value. Index futures traded little changed for the majority of the overnight session, but spiked to highs during the past two hours in reaction to the European Central Bank's policy statement. Futures have retreated from their best levels of the morning, but are still above their pre-announcement levels.

After months of speculation about potential easing, the European Central Bank threw the kitchen sink at the market. The bank lowered all three of its interest rates (main refinancing rate to 0.15% from 0.25%, marginal lending facility rate to 0.40% from 0.75%, and deposit facility rate to -0.1% from 0.0%), announced the deployment of a targeted long term refinancing operation, and said preparations for purchases of asset-backed securities have begun. In addition, the ECB announced it will stop sterilizing purchases under its Securities Market Program (SMP).

The announcement also Treasuries to session lows, but they have regained a portion of their losses. The 10-yr yield hovers at 2.61% after spending the bulk of the overnight session near 2.58%.

9:00 am: [BRIEFING.COM] S&P futures vs fair value: +3.50. Nasdaq futures vs fair value: +5.50. The S&P 500 futures trade four points above fair value.

Asian markets ended the Thursday session on a mixed note as participants awaited the policy decision from the ECB.

Economic data was limited:
China's HSBC Services PMI slipped to 50.7 from 51.4.
Hong Kong's Manufacturing PMI fell to 49.1 from 49.7.
Australia's trade balance swung from a surplus of $902 million to a deficit of $122 million (expected surplus of $300 million).

------

Japan's Nikkei added 0.1%, climbing off its low into the close. Sharp and Mitsumi Electric ended among the leaders with gains close to 3.5% apiece.
Hong Kong's Hang Seng spent the entire session in the red, shedding 0.2%. CNOOC was the weakest performer, down 2.2%. Consumer names also lagged with Belle International and Want Want China Holdings down near 1.2%.
China's Shanghai Composite gained 0.8%, climbing into the close after spending the bulk of the session near its flat line. Shaanxi Aerospace jumped 6.5%.

Major European indices trade higher across the board. The European Central Bank cut all three interest rates. The bank lowered its main refinancing rate to 0.15% from 0.25%, lowered its marginal lending facility to 0.40% from 0.75%, and cut its deposit facility rate to -0.1% from 0.0%. In addition, the ECB announced the deployment of a targeted LTRO program, while saying preparation work for ABS purchases has begun. The euro slumped in reaction, sliding into the 1.3500 area from 1.3600 against the dollar.

Participants received several data points:
Eurozone Retail Sales increased 0.4% month-over-month (consensus 0.1%, previous 0.1%), while the year-over-year reading rose 2.4% (forecast 1.3%, prior 1.0%). Separately, Retail PMI fell to 49.9 from 51.2.
Germany's Factory Orders jumped 3.1% month-over-month (consensus 1.3%, previous -2.8%).
The Bank of England held its key interest rate and purchasing program unchanged at their respective 0.5% and GBP375 billion. Great Britain's Halifax House Price Index increased 3.9% month-over-month (forecast 0.7%, prior -0.3%), while the year-over-year reading surged 8.7% (consensus 7.4%, previous 8.5%).
French Unemployment Rate held steady at 10.1% (expected 10.3%).

------

Great Britain's FTSE is higher by 0.3%. Smith & Nephew leads with a gain of 4.1% in reaction to takeover talks. Homebuilder Persimmon lags with a loss of 6.0% amid speculation the Bank of England could take steps to slow the rapid rise in home prices.
Germany's DAX trades up 0.7%. Commerzbank leads with a gain of 3.0%, while exporters BMW and Daimler follow not far behind with gains close to 1.2% apiece.
In France, the CAC sports an advance of 1.6%. Credit Agricole and Societe Generale hold respective gains of 2.8% and 4.6%.
Italy's MIB outperforms with a gain of 2.1%. Bankinter, Banco Bilbao Vizcaya Argentaria, Banco de Sabadell, and CaixaBank are up between 1.8% and 2.6%.

8:32 am: [BRIEFING.COM] S&P futures vs fair value: +5.80. Nasdaq futures vs fair value: +9.50. The S&P 500 futures trade six points above fair value.

The latest weekly initial jobless claims count totaled 312,000, which was higher than the 310,000 that had been expected by the Briefing.com consensus. Today's tally was above the revised prior week count of 304,000 (from 300,000). As for continuing claims, they fell to 2.603 million from 2.623 million.

8:00 am: [BRIEFING.COM] S&P futures vs fair value: +0.70. Nasdaq futures vs fair value: +2.50. U.S. equity futures are little changed amid upbeat action overseas. The S&P 500 futures trade less than a point above fair value.

Reviewing overnight developments:

Asian markets ended mixed. Hong Kong's Hang Seng -0.2%, Japan's Nikkei +0.1%, and China's Shanghai Composite +0.8%.
In economic data:
China's HSBC Services PMI slipped to 50.7 from 51.4.
Hong Kong's Manufacturing PMI fell to 49.1 from 49.7.
Australia's trade balance swung from a surplus of $902 million to a deficit of $122 million (expected surplus of $300 million).
In news:
Bank of Japan member Takehiro Sato spoke about the current environment, saying he expects the economy to resume its moderate recovery trend during the summer.

Major European indices trade higher across the board. Great Britain's FTSE +0.1%, Germany's DAX +0.3%, and France's CAC +0.7%. Elsewhere, Spain's IBEX +0.7% and Italy's MIB +1.2%.
Economic data was limited:
The European Central Bank cut all three interest rates. The bank lowered its main refinancing rate to 0.15% from 0.25%, lowered its marginal lending facility to 0.40% from 0.75%, and cut its deposit facility rate to -0.1% from 0.0%. The euro slumped in reaction, sliding to 1.3560 from 1.3600 against the dollar.
Eurozone Retail Sales increased 0.4% month-over-month (consensus 0.1%, previous 0.1%), while the year-over-year reading rose 2.4% (forecast 1.3%, prior 1.0%). Separately, Retail PMI fell to 49.9 from 51.2.
Germany's Factory Orders jumped 3.1% month-over-month (consensus 1.3%, previous -2.8%).
The Bank of England held its key interest rate and purchasing program unchanged at their respective 0.5% and GBP375 billion. Great Britain's Halifax House Price Index increased 3.9% month-over-month (forecast 0.7%, prior -0.3%), while the year-over-year reading surged 8.7% (consensus 7.4%, previous 8.5%).
French Unemployment Rate held steady at 10.1% (expected 10.3%).
Among news of note:
Spain is planning to cut its corporate tax rate to 25% from 30%, according to reports.

In U.S. corporate news:

Ciena (CIEN 21.65, +2.66): +14.0% after beating on earnings and guiding Q3 revenue above consensus.
Joy Global (JOY 59.00, +1.15): +2.0% after reporting a bottom-line beat.

The Challenger Job Cuts report showed a 31% increase in May to follow the prior rise of 5.7%.

Weekly Initial Claims (Briefing.com consensus 310,000) will be released at 8:30 ET.

7:00 am: [BRIEFING.COM] S&P futures vs fair value: -1.00. Nasdaq futures vs fair value: -3.00.

7:00 am: [BRIEFING.COM] Nikkei...15079.37...+11.40...+0.10%. Hang Seng...23109.66...-42.10...-0.20%.

7:00 am: [BRIEFING.COM] FTSE...6797.17...-21.50...-0.30%. DAX...9920.40...-6.30...-0.10%.

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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