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 Post subject: July 1st Tuesday Trade Results - Profit $2730.00
PostPosted: Wed Jul 02, 2014 12:59 am 
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Joined: Sat Jan 10, 2009 2:06 pm
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Location: Canada
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Trade Results of M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
Price Action Trading (no technical indicators)
Phone: +1 708 572-4885
Free Chat Room: http://www.thestrategylab.com/tsl/forum/viewforum.php?f=164
Business Hours: 8am - 5pm est (Mon - Fri)
questions@thestrategylab.com (24/7)
http://twitter.com/wrbtrader (24/7)

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

Price Action Trade Performance for Today: Emini TF ($TF_F) futures @ $2,730.00 dollars or +27.30 points, Emini ES ($ES_F) futures @ $0.00 dollars or +0.00 points, Light Crude Oil CL ($CL_F) futures @ $0.00 dollars or +0.00 points, Gold GC ($GC_F) futures @ $0.00 dollars or +0.00 points and EuroFX 6E ($6E_F) futures @ $0.00 dollars or +0.0000 ticks. Total Profit @ $2,730.00 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=132&t=1830

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=242&t=2402

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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 On Fire. Dow Soars 130 Points To Record

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

NEW YORK (CNNMoney)
It's July, and investors love the heat. The U.S. markets hit several records today, and the Dow stopped just shy of crossing the 17,000 milestone for the first time ever.

Here's are the top talking points:

1. Great start: The Dow jumped 130 points (nearly 0.8%) to a record level of 16,956, while the S&P 500 closed at 1,973, also a record. The Nasdaq bounced 1.1%. Earlier in the trading session, the Dow was a mere two points away from 17,000. It crossed the 16,000 mark only seven months ago.

Quincy Krosby, a market strategist for Prudential Financial, said stocks are benefiting from new money from mutual funds and other big investors coming into the market at the start of the second half of the year.

She said recent economic data and whispers of a strong June jobs report that is due out on Thursday have been "lending credence to the notion that the economy is not falling off a cliff."

It's been a slow and steady grind to the top for the blue chip indexes, but the Nasdaq has seen a bit more action. The Dow has moved at least 1% in either direction on 14 days so far this year, while the Nasdaq has fluctuated by that amount 28 times.

Related: 4 signs the stock market is overheating

2. Tech is energized-- Netflix, Twitter, GoPro: Netflix (NFLX, Tech30) popped over 7% after Goldman Sachs upgraded the company "buy." The investment bank predicts that Netflix will double its subscribers in the next three years as it expands into more international markets.

Speaking of Goldman, Twitter (TWTR, Tech30) stock popped 2.6% on news that Goldman alum Anthony Noto will become the micro-blogging service's chief financial officer. Noto previously ran the investment bank's global telecommunications, media and technology group, and therefore played a big role in taking Twitter public last year.

GoPro (GPRO) is continuing its adrenaline rush ever since its IPO. The stock spiked about 20% Tuesday, and is now about double its initial public offering price from last week. It wasn't clear what was driving shares so much higher, but Charlie Anderson, an analyst with Dougherty & Co., noted that the company only sold about 18 million of its 123 million shares outstanding during the offering, and therefore investors who didn't get a piece of the offering before the IPO were forced to buy it once it started trading.

"$GPRO I sure hope some of you became millionaires off of this ride," quipped StockTwits trader eightmotives.

But StockTwits user zerobeta isn't convinced the stock's rally can hold.

"At some point, owning shares in $GPRO will be riskier than anything you can film using a GoPro," he said.

3. What recalls? GM roars ahead: Repeated negative recall headlines in June didn't slow down General Motors (GM). Shares jumped 3.5% after the beleaguered auto giant said Tuesday that sales for last month rose 1% compared to a year earlier. Analysts had expected a drop in sales for General Motors, which has already recalled 27 million vehicles this year.

4. Other movers: 3-D printers, BNP Paribas: 3-D printing stocks, including 3D Systems (DDD), Stratasys (SSYS), and Voxeljet (VJET) all shot up Tuesday, though it wasn't immediately clear why. Some StockTwits traders opined that the stocks could be benefiting from a so-called short squeeze. In such a scenario, traders who are shorting the stock -- betting on a price decline by selling borrowed shares -- need to cover their losses, and that often leads to a spike in share price.

Shares in French bank BNP Paribas (BNPQY) enjoyed a relief rally, and rose by 3.6% in Paris. It pleaded guilty to U.S. charges of sanctions busting Monday and agreed to pay a record fine of nearly $9 billion. Some investors were bracing for even harsher punishment, and the bank confirmed it has the cash on hand and can still offer its planned dividend.

5. M&A boom continues: The mergers and acquisitions boom that defined the first half of the year has showed no signs of slowing down. On Tuesday, spam producer Hormel Foods (HRL) inked a deal to buy CytoSport Holdings, maker of Muscle Milk, for $450 million. Shares of Hormel fell slightly Tuesday.

And late Monday, Cooper Companies (COO) announced plans to purchase Sauflon Pharmaceuticals, a maker a distributor of contact lenses and solutions, for $1.2 billion. Shares of Cooper surged over 8% Tuesday.

6. International markets in perky mood: European markets ended in positive territory, as did most major Asian markets, after China's official survey of manufacturing activity hit its highest level since December. The Nikkei in Japan was a standout performer, closing with a 1.1% gain.

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4:10 pm: [BRIEFING.COM] The stock market kicked off July on a strong note with small caps pacing the rally. The Nasdaq Composite and Russell 2000 jumped 1.1% and 1.0%, respectively, while the S&P 500 advanced 0.7% with nine sectors ending in the green.

Equities displayed early strength after economic data reported overnight and in the early morning indicated expanding manufacturing activity in China, Japan, the eurozone, and the U.S. Although some of the PMI readings missed estimates, they were all above 50, a level that represents the border between expansion and contraction. The data fostered the bullish tone, which was amplified by the arrival of new money at the start of the quarter.

In large part, today's advance was powered by four of the most influential sectors. Consumer discretionary (+1.1%), health care (+1.3%), financials (+0.6%), and technology (+1.1%) jumped to the top of the leaderboard at the open and held their ground throughout the session.

The health care sector was the top performer thanks in part to the relative strength of biotechnology. Regeneron (REGN 303.39, +20.92) surged 7.4%, while the broader iShares Nasdaq Biotechnology ETF (IBB 263.12, +6.09) advanced 2.4%. Furthermore, the outperformance of biotech boosted the Nasdaq Composite (+1.1%), which also drew strength from the technology sector.

Top-weighted tech components like Apple (AAPL 93.52, +0.59), Google (GOOGL 591.49, +6.82), and Qualcomm (QCOM 79.73, +0.53) rallied across the board, while chipmakers fared even better. The PHLX Semiconductor Index rose 1.4% with all 30 components posting gains.

Elsewhere, the discretionary sector stayed near the lead amid broad strength. Shares of Netflix (NFLX 473.10, +32.50) soared 7.4% in reaction to a Goldman Sachs upgrade, while home builders and retailers also charged ahead. The iShares Dow Jones US Home Construction ETF (ITB 25.09, +0.29) added 1.2% and SPDR S&P Retail ETF (XRT 87.47, +0.67) settled higher by 0.8%.

On the downside, the utilities sector (-1.0%) was the lone decliner amid some profit taking after the sector added 4.2% in June. Even though the rate-sensitive sector started the third quarter on a lower note, its year-to-date gain (15.3%) after today's slide was still large enough to keep the sector at the top of the 2014 leaderboard.

Treasuries spent the duration of the session in a steady retreat with the 10-yr note shedding nine ticks. As a result, the benchmark yield rose three basis points to 2.56%.

Participation remained on the light side with less than 675 million shares changing hands at the NYSE.

Economic data was limited to May Construction Spending and June ISM:

Construction spending increased 0.1% in May following an upwardly revised 0.8% (from 0.2%) gain in April. The Briefing.com consensus expected construction spending to increase 0.4%
Private construction spending fell 0.3% in May, giving back nearly all of the 0.3% increase from April
Total public construction spending increased 1.0% in May after increasing 2.1%
The ISM Manufacturing Index fell slightly to 55.3 in June from 55.4, while the Briefing.com consensus expected the Index to increase to 55.8
Considering that nearly all of the regional Federal Reserve manufacturing surveys showed an acceleration in manufacturing activity in June, the deceleration registered in the national ISM Index was disappointing and confusing
New orders managed to increase to 58.9 from 56.9
Order backlogs contracted, falling to 48.0 from 52.5
Production Index fell to 60.0 from 61.0

Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET, while Challenger Job Cuts for June will be announced at 7:30 ET. ADP Employment Change (Briefing.com consensus 200K) for June will be announced at 8:15 ET, while May Factory Orders (consensus -0.4%) will cross the wires at 10:00 ET.

S&P 500 +6.8% YTD
Nasdaq Composite +6.8% YTD
Dow Jones Industrial Average +2.3% YTD
Russell 2000 +3.7% YTD

3:35 pm: [BRIEFING.COM]

Grains extended losses today, largely driven by yesterday's USDA reports (annual acreage report and quarterly grain stocks report)
Sept corn fell 2 cents to $4.15/bu, Sept wheat fell 4 cents to $5.72/bu
Crude oil sold off in afternoon trading, erasing all of its gains and closing one cent lower at $105.36/barrel
Aug natural gas lost one cent and finished at $4.46/MMbtu
Gold and silver held gains. Aug gold rose $3.30 to $1325.60/oz, while July silver rose $0.08 to $21.11/oz
July copper ended flat at $3.20/lb

3:00 pm: [BRIEFING.COM] The S&P 500 trades higher by 0.8% with one hour remaining in the session. Not much has changed in the market with the session heading into the home stretch. Top-weighted sectors like consumer discretionary (+1.1%), financials (+0.7%), technology (+1.2%), and health care (+1.3%) surged out of the gate and they continue holding the lead at this juncture.

Participants received a couple disappointing economic reports this morning, while tomorrow's session will feature the weekly MBA Mortgage Index, Challenger Job Cuts for June, and the ADP Employment Change report (Briefing.com consensus 200K) for June. Also of note, May Factory Orders (consensus -0.4%) will also be reported tomorrow morning.

2:30 pm: [BRIEFING.COM] The S&P 500 trades higher by 0.8% as the quiet afternoon continues.

With 90 minutes left in the trading day, only 346 million shares have changed hands, which suggests today's final trading volume will reflect below-average participation.

If the final tally comes in below the 200-day average of 706 million, that would fit with the light participation observed in June. Of the 21 trading days in June, 18 saw below-average volume.

2:00 pm: [BRIEFING.COM] The steady run higher that took place during the first half of the session has turned into a bit of a jog along the top end of today's trading range. The S&P 500 trades up 0.9% with health care (+1.4%) and technology (+1.3%) taking turns for the lead.

Like the two sectors, the biotech group also trades well ahead of the broader market, which has translated into a boost for the Nasdaq Composite (+1.3%). The iShares Nasdaq Biotechnology ETF (IBB 262.70, +5.67) trades higher by 2.2%.

1:30 pm: [BRIEFING.COM] Thus far, it has been a banner start to the third quarter for the major indices. All are up nicely and all are responding in a manner befitting the catalysts that have led them to their higher levels.

There was a batch of encouraging purchasing manager index readings around the globe. Specifically, the readings for China, Japan, the eurozone, and the US -- whether they were preliminary or final readings -- were all above 50, denoting a state of expansion in the manufacturing sector. That news set the bullish tone early and the markets haven't looked back with the arrival of new money at the start of the quarter lending added support.

The Dow Jones Industrial Average is pushing 17,000; meanwhile, the S&P 500 is closing in on its first 1.0% move in the last 52 sessions (the longest run without a 1.0% move since 1995).

The sector leadership today is how it should be for a substantive move like the one that has been seen. To that end, the technology (+1.4%), health care (+1.4%), consumer discretionary (+1.2%), and financial (+1.0%) sectors -- the four heaviest-weighted sectors in the S&P 500 -- are leading the advance.

1:00 pm: [BRIEFING.COM] At midday, the major averages hover near their best levels of the session with the Russell 2000 in the lead. The small-cap index is higher by 1.4%, while the S&P 500 trades up 0.8% with nine sectors in the green.

Equity indices began the first session of the third quarter on an upbeat note thanks to an early push from the four top-weighted cyclical sectors. Specifically, consumer discretionary (+1.1%), financials (+0.8%), health care (+1.2%), and technology (+1.2%) seized the lead at the start and they remain ahead of the other six sectors at this juncture.

Notably, the technology space has benefitted from broad strength among top components, including a big advance in the shares of IBM (IBM 186.35, +5.08). The stock trades higher by 2.8%, which has factored into the outperformance of the Dow Jones Industrial Average (+0.9%).

Elsewhere, the discretionary space has received a boost from high-growth names like Netflix (NFLX 467.73, +27.13), which trades up 6.2% after being upgraded to 'Buy' from 'Neutral' at Goldman Sachs. High-beta names in general have shown considerable strength today. The PHLX Semiconductor Index has added 1.6%, while biotechnology also outperforms with iShares Nasdaq Biotechnology ETF (IBB 262.15, +5.12) up 2.0%.

On the downside, the utilities sector (-0.6%) is the lone decliner with the weakness likely due to some profit taking. Despite the retreat, the sector remains well ahead of the other nine groups with a year-to-date gain of 15.7%.

Treasuries hover near their lows with the 10-yr yield up two basis points at 2.55%.

Economic data was limited to May Construction Spending and June ISM:

Construction spending increased 0.1% in May following an upwardly revised 0.8% (from 0.2%) gain in April. The Briefing.com consensus expected construction spending to increase 0.4%
Private construction spending fell 0.3% in May, giving back nearly all of the 0.3% increase from April
Total public construction spending increased 1.0% in May after increasing 2.1%
The ISM Manufacturing Index fell slightly to 55.3 in June from 55.4, while the Briefing.com consensus expected the Index to increase to 55.8
Considering that nearly all of the regional Federal Reserve manufacturing surveys showed an acceleration in manufacturing activity in June, the deceleration registered in the national ISM Index was disappointing and confusing
New orders managed to increase to 58.9 from 56.9
Order backlogs contracted, falling to 48.0 from 52.5
Production Index fell to 60.0 from 61.0

12:30 pm: [BRIEFING.COM] The S&P 500 has spent the better part of the past hour within a point of its session high. Influential sectors like consumer discretionary (+1.1%), financials (+0.7%), and technology (+1.1%) surged at the open and they continue providing support to the broader market at this juncture.

Meanwhile, only two sectors-energy (-0.1%) and utilities (-0.7%)-hover in the red, but their underperformance can be overlooked considering the pair finished the month of June at the top of the leaderboard. Despite today's relative weakness, energy and utilities continue holding respective year-to-date gains of 11.6% and 15.6%, while only one other group-health care-has added more than 10.0% since the start of the year. Thanks to today's 1.1% increase, the countercyclical sector is now higher by 10.9% so far in 2014.

11:55 am: [BRIEFING.COM] Equity indices remain near their recently-established session highs with the S&P 500 trading up 0.7%. Similar to the benchmark index, most sectors remain near their best levels of the day, while energy has returned to its flat line.

Like the utilities sector, which trades lower by 0.7%, energy posted a solid June gain (4.9%), suggesting today's retreat from the early high is a function of profit taking following a big run. Crude oil, meanwhile, holds a loss of 0.3% at $105.08/bbl.

Elsewhere, the other commodity-linked sector-materials (+0.3%)-trails the broader market amid relative weakness in mining shares. The Market Vectors Gold Miners ETF (GDX 26.19, -0.26) is lower by 1.0%.

11:25 am: [BRIEFING.COM] The S&P 500 (+0.7%) remains at its best level of the session amid strong sector leadership from the top-weighted groups. In fact, the four best performing sectors are the same four groups that account for nearly 61.0% of the entire market.

The leading sectors hold gains between 0.8% (financials) and 1.1% (technology), while the remaining sectors sport more modest gains. Also of note, industrials (+0.6%) are having a difficult time keeping pace with the broader market, but transports have had a better showing than the overall sector.

The Dow Jones Transportation Average is higher by 0.8% with 19 of its 20 components trading in the green. Airlines display noteworthy gains with the five carriers up between 1.1% and 2.7%, while Kansas City Southern (KSU 107.06, -0.45) is the lone decliner. The rail operator trades down 0.4%.

11:00 am: [BRIEFING.COM] The major averages have built on their opening gains with the Russell 2000 (+1.3%) and Nasdaq Composite (+1.1%) maintaining their position ahead of the S&P 500 (+0.6%).

Nine of ten sectors hold gains, while the utilities space (-0.7%) underperforms. The relative weakness of the rate-sensitive sector is likely a function of profit taking after the group posted a solid 4.2% gain in June to extend its year-to-date advance to 16.4%.

On the upside, the top-weighted S&P 500 sector-technology-leads with an impressive 1.0% increase. Dow component IBM (IBM 185.50, +4.23), which trades higher by 2.4%, has contributed to the relative strength of the influential sector.

10:30 am: [BRIEFING.COM]

Grains extending losses this morning following notable losses yesterday, which was driven by the USDA's quarterly grain stocks and annual acreage reports (robust supplies in U.S.)
Sept corn is now -1.5% at $4.13/bu, Sept wheat is -1.3% at $5.20/bu, Aug soybeans are -0.6% at $13.22/bu
Some other commodities received a small boost earlier this morning after the dollar index dropped to a new LoD after econ data was released
Crude oil futures have been trading higher this morning and are now +0.4% at $105.83/barrel
Gold and silver futures have been in positive territory all day so far
Sept gold is now +0.6% at $1329.40/oz, while July silver is +0.7% at $21.20/oz
Natural gas rallied off its LoD this morning and just hit a fresh HoD. Aug nat gas is now +0.5% at $4.48/MMBtu

10:05 am: [BRIEFING.COM] The S&P 500 trades higher by 0.4%.

May construction spending increased 0.1% month-over-month, while the Briefing.com consensus expected an increase of 0.4%.

Separately, the ISM Index for June ticked down to 55.3 from 55.4, while the Briefing.com consensus expected the reading to improve to 55.8.

9:45 am: [BRIEFING.COM] As expected, the major averages began the session on an upbeat note. The Russell 2000 (+0.6%) and Nasdaq Composite (+0.6%) took the lead immediately after the open, while the S&P 500 trades higher by 0.4% with six of ten sectors showing gains.

Heavily-weighted consumer discretionary (+0.4%), health care (+0.6%), financials (+0.5%), and technology (+0.6%) displayed early strength, which bodes well for the overall market.

On the downside, consumer staples (-0.2%), telecom services (-0.2%), and utilities (-0.8%) hover in the red.

Treasuries remain near their lowest levels of the day with the 10-yr yield up two basis points at 2.55%.

The ISM Index for June (Briefing.com consensus 55.8) and May Construction Spending (consensus 0.4%) will be reported at 10:00 ET.

9:14 am: [BRIEFING.COM] S&P futures vs fair value: +5.60. Nasdaq futures vs fair value: +13.20. The stock market is on track for an upbeat start to the first trading day of the third quarter as futures on the S&P 500 trade almost six points above fair value. Futures spent the entire night in positive territory, climbing to their best levels within the past hour.

The overall risk sentiment has not been altered by the mixed PMI readings from China and the eurozone. Specifically, China's official Manufacturing PMI ticked up to 51.0 from 50.8, while HSBC Manufacturing PMI slipped to 50.7 from 50.8, just missing estimates. Meanwhile in Europe, eurozone Manufacturing PMI slipped to 51.8 from 51.9 (consensus 51.9).

Domestically, participants have not received any data, but this will change at 10:00 ET when the ISM Index for June (Briefing.com consensus 55.8) and May Construction Spending (consensus 0.4%) will cross the wires.

Treasuries sit near their lows with the 10-yr yield two one basis points at 2.55%.

8:58 am: [BRIEFING.COM] S&P futures vs fair value: +5.80. Nasdaq futures vs fair value: +13.00. The S&P 500 futures trade almost six points above fair value.

The major Asian markets ended mostly higher, while Hong Kong's Hang Seng was closed for Special Administrative Region Establishment Day.

Economic data was plentiful:
China's Manufacturing PMI rose to 51.0 from 50.8, as expected, while HSBC Manufacturing PMI slipped to 50.7 from 50.8 (expected 50.8)
Japan's Tankan Large Manufacturers Index fell to 12 from 17 (expected 15), while Large Non-Manufacturers Index jumped to 19 from 13 (forecast 21). Also of note, Average Cash Earnings rose 0.8% year-over-year, as expected (previous 0.7%), and Manufacturing PMI rose to 51.5 from 51.1
The Reserve Bank of Australia made no policy changes, keeping its key interest rate at 2.5%. Separately, AIG Manufacturing Index slipped to 48.9 from 49.2
South Korea's trade surplus narrowed to $5.29 billion from $5.30 billion (expected surplus of $6.40 billion) and HSBC Manufacturing PMI fell to 48.4 from 49.5. Separately, CPI slipped 0.1% month-over-month (expected 0.1%, previous 0.2%), while the year-over-year reading increased 1.7% (consensus 1.9%, prior 1.7%)
India's HSBC Markit Manufacturing PMI ticked up to 51.5 from 51.4, as expected
Indonesia's Inflation slowed to 6.70% year-over-year from 7.32% (expected 6.76%) and Core Inflation ticked down to 4.81% from 4.82% (expected 4.85%). Separately, HSBC PMI rose to 52.70 from 52.40 and trade balance swung from a deficit of $1.97 billion to a surplus of $70 million (expected surplus of $410 million)

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Japan's Nikkei added 1.1%, settling near its best level of the session. Industrials provided support with Daikin Industries and Mitsubishi Electric climbing 4.5% and 4.1%, respectively.
Hong Kong's Hang Seng was closed
China's Shanghai Composite eked out a slim gain of 0.1% after spending the bulk of the session in the red. Dr Peng Telecom & Media surged 9.1%.

Major European indices trade higher across the board with Italy's MIB (+0.9%) in the lead. Italy's Finance Minister Pier Carlo Padoan said the country may need to revise its growth forecast for the year after data received during the second quarter.

Participants received several data points:
Eurozone Manufacturing PMI slipped to 51.8 from 51.9 (expected 51.9), while the Unemployment Rate held steady at 11.6% (expected 11.7%)
Germany's Claimant Count rose 9,000 (expected -10,000, previous 25,000), while the Unemployment rate held steady at 6.7%, as expected. Separately, Manufacturing PMI slipped to 52.0 from 52.4 (expected 52.4)
Great Britain's Manufacturing PMI rose to 57.5 from 57.0 (consensus 56.8)
French Manufacturing PMI improved to 48.2 from 47.8 (expected 47.8)
Italy's Manufacturing PMI fell to 52.6 from 53.2 (expected 53.2). Separately, Monthly Unemployment Rate ticked up to 12.6% from 12.5% (consensus 12.6%)
Spain's Manufacturing PMI rose to 54.6 from 52.9 (consensus 52.9)
Swiss SVME PMI rose to 54.0 from 52.5 (forecast 52.8)

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Germany's DAX trades higher by 0.2% with drug maker Bayer in the lead. The stock trades higher by 1.5%. Adidas is the weakest performer, down 0.9%.
In France, the CAC holds an advance of 0.6%. Financials display strength with BNP Paribas, Credit Agricole, and Societe Generale up between 2.3% and 4.0%. Alstom lags, down 2.5%.
Great Britain's FTSE trades up 0.6% amid strength in mining shares. Anglo American, BHP Billiton, and Rio Tinto are up between 2.1% and 2.7%. Consumer names lag with Burberry Group and Tesco down 0.8% and 1.3%, respectively.
Italy's MIB is higher by 0.9%. Banca Popolare and BMPS lead with respective gains of 3.2% and 4.8%.

8:28 am: [BRIEFING.COM] S&P futures vs fair value: +4.50. Nasdaq futures vs fair value: +10.20. U.S. equity futures continue holding gains, suggesting the first session of the third quarter will start on an upbeat note. Overnight, the major Asian markets ended mostly higher after China's official Manufacturing PMI ticked up to 51.0 from 50.8, while HSBC Manufacturing PMI slipped to 50.7 from 50.8, just missing estimates.

Similar to the readings from China, PMI data from Europe was also mixed. Manufacturing PMIs in Great Britain (57.5 versus expected 56.8), France (48.2 versus expected 47.8), and Spain (54.6 versus consensus 52.9) beat expectations, while data from Germany (52.0 versus expected 52.4), Italy (52.6 versus expected 53.2), and the overall eurozone (51.8 versus consensus 51.9) disappointed.

7:55 am: [BRIEFING.COM] S&P futures vs fair value: +4.30. Nasdaq futures vs fair value: +11.00. U.S. equity futures hover near their pre-market highs amid upbeat action overseas. The S&P 500 futures trade four points above fair value.

Reviewing overnight developments:

Asian markets ended mostly higher. China's Shanghai Composite +0.1%, Japan's Nikkei +1.1%, and Hong Kong's Hang Seng was closed for Special Administrative Region Establishment Day.
Economic data was plentiful:
China's Manufacturing PMI rose to 51.0 from 50.8, as expected, while HSBC Manufacturing PMI slipped to 50.7 from 50.8 (expected 50.8)
Japan's Tankan Large Manufacturers Index fell to 12 from 17 (expected 15), while Large Non-Manufacturers Index jumped to 19 from 13 (forecast 21). Also of note, Average Cash Earnings rose 0.8% year-over-year, as expected (previous 0.7%), and Manufacturing PMI rose to 51.5 from 51.1
The Reserve Bank of Australia made no policy changes, keeping its key interest rate at 2.5%. Separately, AIG Manufacturing Index slipped to 48.9 from 49.2
South Korea's trade surplus narrowed to $5.29 billion from $5.30 billion (expected surplus of $6.40 billion) and HSBC Manufacturing PMI fell to 48.4 from 49.5. Separately, CPI slipped 0.1% month-over-month (expected 0.1%, previous 0.2%), while the year-over-year reading increased 1.7% (consensus 1.9%, prior 1.7%)
India's HSBC Markit Manufacturing PMI ticked up to 51.5 from 51.4, as expected
Indonesia's Inflation slowed to 6.70% year-over-year from 7.32% (expected 6.76%) and Core Inflation ticked down to 4.81% from 4.82% (expected 4.85%). Separately, HSBC PMI rose to 52.70 from 52.40 and trade balance swung from a deficit of $1.97 billion to a surplus of $70 million (expected surplus of $410 million)
In news:
HSBC commented on China's Manufacturing PMI, saying downside risks are still present in the property market, which will continue pressuring growth during the second half of the year.

Major European indices trade higher across the board. Germany's DAX +0.2%, Great Britain's FTSE +0.5%, and France's CAC +0.6%. Elsewhere, Spain's IBEX +0.1% and Italy's MIB +0.8%.
Participants received several data points:
Eurozone Manufacturing PMI slipped to 51.8 from 51.9 (expected 51.9), while the Unemployment Rate held steady at 11.6% (expected 11.7%)
Germany's Claimant Count rose 9,000 (expected -10,000, previous 25,000), while the Unemployment rate held steady at 6.7%, as expected. Separately, Manufacturing PMI slipped to 52.0 from 52.4 (expected 52.4)
Great Britain's Manufacturing PMI rose to 57.5 from 57.0 (consensus 56.8)
French Manufacturing PMI improved to 48.2 from 47.8 (expected 47.8)
Italy's Manufacturing PMI fell to 52.6 from 53.2 (expected 53.2). Separately, Monthly Unemployment Rate ticked up to 12.6% from 12.5% (consensus 12.6%)
Spain's Manufacturing PMI rose to 54.6 from 52.9 (consensus 52.9)
Swiss SVME PMI rose to 54.0 from 52.5 (forecast 52.8)
Among news of note:
Italy's Finance Minister Pier Carlo Padoan said the country may need to revise its growth forecast for the year after data received during the second quarter.

In U.S. corporate news:

Cooper Companies (COO 138.95, +3.42): +2.5% after announcing an agreement to acquire Sauflon Pharmaceuticals for $1.2 billion.
Urban Outfitters (URBN 32.60, -1.26): -3.7% after Wedbush downgraded the stock to 'Neutral' from 'Outperform.'
Xerox (XRX 12.24, -0.20): -1.6% after Citigroup downgraded the stock to 'Neutral' from 'Buy.'

The ISM Index for June (Briefing.com consensus 55.8) and May Construction Spending (consensus 0.4%) will be reported at 10:00 ET, while auto and truck makers will be reporting their June sales throughout the day.

6:31 am: [BRIEFING.COM] S&P futures vs fair value: +5.00. Nasdaq futures vs fair value: +12.00.

6:31 am: [BRIEFING.COM] Nikkei...15326.20...+164.10...+1.10%. Hang Seng...23190.72...-30.80...-0.10%.

6:31 am: [BRIEFING.COM] FTSE...6774.45...+30.10...+0.50%. DAX...9863.82...+30.60...+0.30%.

Dow Average Climbs Toward 17,000 as Small Caps Hit Record

By Lu Wang Jul 1, 2014 4:45 PM ET

Strength in manufacturing pushed the Dow Jones Industrial Average (INDU) to within two points of 17,000 for the first time, joining small caps and transportation stocks at records in a pattern that chart analysts consider bullish.

Netflix Inc. (NFLX), Amazon.com Inc. and Biogen Idec Inc., among the biggest losers during a two-month selloff earlier this year, rose at least 2.3 percent. International Business Machines Corp. climbed 2.8 percent, leading a rally among technology stocks. General Motors Co. jumped 3.6 percent after a surprise sales gain in the auto industry’s best month since July 2006.

The Dow increased 129.47 points, or 0.8 percent, to 16,956.07 at 4 p.m. in New York. The Standard & Poor’s 500 Index climbed 0.7 percent to 1,973.32. The Russell 2000 Index of smaller companies rallied 1.1 percent and the Dow Jones Transportation Average (TRAN) gained 0.7 percent. The Dow, S&P 500 and transport gauge all closed at records, while the Russell 2000 touched an intraday high.

Simultaneous gains in disparate sections of the market are sometimes cited by chart analysts who base predictions on charts as evidence economic growth is pervasive enough to fuel additional gains.

“The breadth sends a message about the strength of the bull,” Rex Macey, chief allocation officer at Wilmington Trust in Atlanta, said in a phone interview. The firm oversees $82 billion. “People are comfortable with the story of the economic backdrop that we’ve got going on. People feel like they’re missing the boat and they want to get on.”
Photographer: Jin Lee/Bloomberg

The New York Stock Exchange on June 24, 2014. U.S. stocks rose, with equity benchmarks... Read More

Stocks are extending a rebound from the selloff that started with biotech and small-cap stocks about five months ago. Equities have rallied since the S&P 500 reached a two-month low in April as central bank stimulus spread from Europe to Japan and the U.S. and economic data suggested global growth is strengthening.

The Russell 2000 has retraced nearly all of its losses after a 9.3 decline through May 15. The Nasdaq Biotechnology Index, which tumbled 21 percent from February to April, soared 2.3 percent today.

Biogen Idec climbed 3.1 percent to $325.05 and Amazon.com added 2.3 percent to $332.28. Both stocks sank 16 percent between March and April.

Manufacturing in China expanded in June by the fastest pace this year, a purchasing managers’ index compiled by the government showed today. The Institute for Supply Management’s U.S. factory index was little changed at 55.3 in June from 55.4 in the prior month, the Tempe, Arizona-based group’s report showed. Readings above 50 indicate expansion.

Manufacturing Strength

Producers of wood products, furniture, metals and machinery were among those seeing a pickup in demand as gains in auto and home sales rippled through the world’s largest economy. Growing consumer spending, lean inventories and improving overseas markets will probably keep assembly lines busy in the second half of the year.

“Manufacturing is back on track,” said Joshua Shapiro, chief U.S. economist at Maria Fiorini Ramirez Inc. in New York, the top U.S.-based ISM forecaster over the past two years, according to data compiled by Bloomberg.

U.S. auto sales adjusting for seasonal trends accelerated to an annualized pace of 16.98 million in June, the fastest in almost eight years, according to researcher Autodata Corp. Vehicle sales were aided by available credit and an improving economy with housing starts that remained near the 1 million mark in May.

GM rose 3.6 percent to $37.59, its highest level since March. The company reported a gain of 1 percent in auto sales, beating the average analyst estimate for a 6.3 percent decline.

Other reports this week may yield further clues on the strength of the U.S. economy. A private release may show U.S. employers hired more workers in June than in the previous month. The official jobs data is due Thursday, a day before the U.S. Independence Day holiday.

Economic Growth

U.S. equities have reached all-time highs, with the S&P 500 gaining 6.8 percent this year, as data from employment to housing fueled confidence that the U.S. economy is rebounding after the worst contraction in gross domestic product since 2009. Federal Reserve Chair Janet Yellen said on June 18 that accommodative monetary policy, rising property and equity prices and the improving global economy should lead to above-trend growth.

The S&P 500 trades at 16.7 times the projected earnings of its members, its highest valuation in four years. The U.S. market has gone more than two years without a 10 percent drop.

“With all these perceptions that GDP is going to improve in the second half of this year, Europe is getting their act together, why would I ever want to sell?” Jim Welsh, a portfolio manager at Forward Management LLC in San Francisco, said in a phone interview. His firm oversees $5.5 billion. “Markets don’t go down because they’re expensive or because there are too many bulls. They go down because there is a reason to sell, and there is no reason to sell.”

‘Great Environment’

Investors will get a further chance to assess the economy when companies start releasing financial results in July. Earnings for S&P 500 companies probably grew 5.2 percent during the second quarter while sales rose 3.2 percent, analyst estimates compiled by Bloomberg show. The forecasts are lower than they were at the beginning of April, when analysts projected earnings to rise 7.3 percent and sales to increase 3.7 percent.

“It’s a great environment,” Ernie Cecilia, chief investment officer at Bryn Mawr Trust Co. in Bryn Mawr, Pennsylvania, said in a phone interview. The firm oversees $7.4 billion. “You have a slowly broadening recovery. You have the Fed that’s going to remain accommodative. We’re soon to embark on the earnings season and we’re optimistic about that.”

About 6.1 billion shares changed hands on U.S. exchanges today, in line with the three-month average. The Chicago Board Options Exchange Volatility Index declined 3.6 percent to 11.15. The gauge, known as the VIX (VIX), is near its lowest level since February 2007.

All 10 industry groups in the S&P 500 advanced except for utilities, with technology, health-care and consumer-discretionary stocks climbing at least 1 percent. IBM, a computer-services provider, gained 2.8 percent to $186.35 for the biggest increase in the Dow. The Morgan Stanley Cyclical Index added 0.7 percent, also closing at an all-time high.

Netflix, Twitter

Netflix gained 7.4 percent to $473.10. Goldman Sachs Group Inc. boosted its recommendation on the Los Gatos, California-based company to buy from neutral, citing the potential for global subscription growth. The shares have gained 29 percent for the year, recovering from a 31 percent plunge in March and April.

Twitter Inc. (TWTR) rose 2.6 percent to $42.05 after naming former Goldman Sachs banker Anthony Noto its new chief financial officer. Noto, who led the social-media company’s initial public offering last year, replaces Mike Gupta, who will assume the role of senior vice president of strategic investments.

GoPro Inc. jumped 20 percent to $48.80 amid optimism that revenue tied to users’ shared videos will fuel profit growth. GoPro’s first-person-viewpoint cameras, which let surfers, sky divers and bungee jumpers document their exploits, have attracted a younger generation driven by selfies and sharing adventures on social media. The shares have doubled since their market debut last week at $24.

To contact the reporter on this story: Lu Wang in New York at lwang8@bloomberg.net

To contact the editors responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net Jeff Sutherland, Alan Soughley

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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