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 Post subject: July 10th Thursday Trade Results - Profit $1020.00
PostPosted: Thu Jul 10, 2014 8:12 pm 
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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 @ $1,020.00 dollars or +10.20 points, Emini ES ($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 @ $1,020.00 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=1836

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 Stop The Bleeding...Somewhat

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

NEW YORK (CNNMoney)
The bad news: Stocks slumped Thursday after poor economic news from Europe.

The good news: It could have been a lot worse.

Here's what you need to know about today's rollercoaster session:

1. By the numbers: The Dow Jones Industrial Average's 71-point slide doesn't look all that awful considering it was down as much as 180 points earlier in the day. The S&P 500 and Nasdaq had been down about 1%, but closed off 0.4% and 0.5%, respectively.

Investors seemed to conclude that the European troubles are just a blip, not necessarily indicative of a longer-lasting slump.

Related: 4 reasons to keep calm about Portugal's bank crisis

"It will take a lot more than a soft patch in global economic data and a bad turn for European equities to break the back of this market in the long run," said analysts at Bespoke Investment Group wrote in a note to clients

Despite the comeback, the major markets are on track for a steep weekly decline. That's especially true for the Nasdaq, which has tumbled around 2% this week.

2. Blame Europe! The ugly day began in Europe, where a little known Portuguese bank brought back concerns about the health of the continent's financial system.

Trading of Espirito Santo Financial Group -- the leading shareholder in Portugal's biggest bank -- was suspended. Shares of Banco Espirito Sant (BKESF)plummeted 17% before they were also halted.

The euro banking woes trickled down to U.S. financial firms, with shares of Bank of America (BAC), Morgan Stanley (MS) and JPMorgan Chase (JPM) all down about 1%.

But that's not all that caused European markets to tumble. New reports show industrial production fell sharply in France and Italy, signaling the European economic recovery could be in trouble.

Video - Running of the bull markets

3. Earnings season is here: After Alcoa (AA) kicked off earnings season earlier this week with a home run, a number of retailers reported mixed results on Thursday.

Family Dollar (FDO) escaped early losses and closed just slightly lower despite reporting a decline in same-store sales and profits. Maybe investors approve of the struggling retailer's new plan to lure in shoppers: booze. The company said it will follow Wal-Mart (WMT)by selling beer and wine in the coming years.

Related: Is there a 'retail funk'?

Shares of Tractor Supply Co. (TSCO) slumped 2% after the company posted disappointing earnings on Wednesday.

4. Stock movers: Lumber, Potbelly, T. Rowe Price: Investors took a big axe to shares of Lumber Liquidators (LL). The flooring retailer plummeted almost 22% after disclosing a traffic tumble and projecting profits that would badly miss expectations.

The somber news sparked selling in home improvement stocks like Ethan Allen Interiors (ETH), Lowe's (LOW) and Home Depot (HD).

Potbelly, (PBPB) which went public in October, plunged 25% after the sandwich chain cut its outlook for the year and said it will try new marketing moves.

"$PBPB Calling a restaurant 'potbelly' in a nation where everyone is trying to lose weight might be a clue?" StockTwits user BlackBerril wrote.

T. Rowe Price (TROW)fell 3% and was among the worst financial performers after the asset manager was reportedly downgraded by Evercore. The worry is that T. Rowe could be hurt by in the coming months by investors yanking cash from U.S. equity funds.

5. Return of U.S. jobs: Americans received another glimmer of hope about the jobs market on Thursday. The Labor Department said initial claims for jobless benefits fell by 11,000 last week to 304,000. That was slightly better than many on Wall Street expected.

The weekly claims report comes on the heels of the June jobs report, which revealed the U.S. added an impressive 288,000 jobs.

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4:15 pm: [BRIEFING.COM] The stock market stumbled on Thursday, but a daylong rebound off the opening lows helped the major averages erase the bulk of their losses. The Russell 2000 was the weakest performer, falling 1.1%, while the S&P 500 settled lower by 0.4% after being down as much as 1.0% at the open.

The early stumble was not brought upon by any specific headline, but rather a series of developments that caused investors to reduce their exposure to equities. In Asia, China reported below-consensus exports (7.2% versus expected 10.6%) and imports (5.5% versus expected 5.8%), while Japan's Core Machinery Orders tumbled 19.5% against the expectations of an uptick of 0.7%.

As the night continued, news from Europe caused an exodus from regional equities (mainly financials) amid worries about Portugal's banking system after the parent company of Banco Espirito Santo missed a bond payment. Portugal's PSI 20 fell 4.2%, while Germany's DAX and Spain's IBEX lost 1.5% and 2.0%, respectively.

Domestically, participants received a sliver of good news on the economic front as weekly initial claims decreased to 304,000 (Briefing.com consensus 311,000); however, headlines out of the corporate world were not nearly as upbeat.

With the second-quarter earnings season set to heat up next week, two consumer discretionary components primed the market for disappointing results. Shares of Potbelly (PBPB 10.97, -3.68) plunged 25.1% to a new record low after the company said it expects its revenue to come in below estimates, while also guiding for a 1.6% decline in comparable store sales.

Yesterday, the CEO of The Container Store (TCS 24.58, -0.22) provided some cautious comments about the retail environment as a whole, and today his remarks were echoed by Lumber Liquidators (LL 55.25, -15.17). The home improvement retailer said that customer traffic during the quarter was well below expectations, which will result in disappointing results. The stock sank 21.5%, while peers Home Depot (HD 79.40, -1.33) and Lowe's (LOW 47.20, -0.66) both lost near 1.5%.

The relative weakness of the discretionary sector (-0.9%) was not enough to scare dip-buyers away. After putting in a session low during the first 15 minutes of the action, the S&P 500 spent the trading day in a steady rally that allowed the index to reclaim more than half of its losses. A rebound in the heavily-weighted health care (unch) and technology (-0.3%) sectors contributed to the partial recovery, but energy (-1.0%) and financials (-0.6%) were reluctant participants in the bounce, which prevented the S&P 500 from turning positive.

Treasuries, meanwhile, rallied throughout the night, registered their highs shortly before the start of the session, and spent the remainder of the day in a retreat. The 10-yr note trimmed its gain to four ticks, while the benchmark yield slipped two basis points to 2.54%.

Participation was below average with 640 million shares changing hands at the NYSE floor.

Economic data was limited to weekly initial claims and the Wholesale Inventories report for May:

The initial claims level fell to 304,000 from an unrevised 315,000, while the Briefing.com consensus expected the claims level to fall to 311,000

Over the past several weeks, claims have stabilized between 310,000 and 320,000. While claims came in below this level, it was likely due to normal volatility stemming from the Independence Day holiday and not a change in trend

The continuing claims level increased to 2.584 million from a downwardly revised 2.574 million (from 2.579 million), while the consensus expected continuing claims to slip to 2.567 million

Wholesale inventories increased 0.5% in May following a downwardly revised 1.0% (from 1.1%) in April. The Briefing.com consensus expected wholesale inventories to increase 0.5%

The increase in inventories came predominantly from a 1.9% increase in automotive inventories and a 2.1% increase in metals

Tomorrow, the June Treasury Budget (Briefing.com consensus $70.00 billion) will be reported at 14:00 ET.

S&P 500 +6.3% YTD
Nasdaq Composite +5.3% YTD
Dow Jones Industrial Average +2.0% YTD
Russell 2000 -0.1% YTD

3:30 pm: [BRIEFING.COM]

Precious metals traded higher today, gaining support on concerns over Portugal's banking system after the parent company of Banco Espirito Santo missed a bond payment.
Aug gold touched a session high of $1346.80 per ounce in early morning action and settled with a 1.1% gain at $1339.50 per ounce.
Sep silver advanced as high as $21.61 per ounce and eventually closed at $21.51 per ounce, or 2.1% higher.
Aug crude oil chopped around slightly below the unchanged line in morning action but lifted into positive territory later in the session despite strength in the dollar index. The energy component touched a session high of $103.04 per barrel after trading as low as $101.86 per barrel. It settled with a 0.7% gain at $102.92 per barrel.
Aug natural gas fell into the red from its session high of $4.19 per MMBtu following inventory data that showed a build of 93 bcf when a build of 90-92 bcf was anticipated. It eventually settled with a 1.2% loss at $4.12 per MMBtu, just above its session low of $4.11 per MMBtu.

3:05 pm: [BRIEFING.COM] The S&P 500 trades lower by 0.5% with one hour remaining in the session. The benchmark index spent the bulk of the trading day in a rebound from its early low that was registered during the first 15 minutes of action. The index notched its rebound high just under the 1970 level about 90 minutes ago, but has surrendered about five points since then.

The relative strength of a couple influential sectors-health care (-0.1%) and technology (-0.2%)-has fueled the rebound, but the benchmark index remains a bit below its flat line as two other heavily-weighted sectors-consumer discretionary (-1.0%) and financials (-0.6%)-continue to weigh.

Elsewhere, Treasuries have inched up from their afternoon lows. The 10-yr note is higher by six ticks with its yield down two basis points at 2.53%.

2:30 pm: [BRIEFING.COM] The steady rebound that has been taking place since the opening bell has paused once again with the S&P 500 less than six points below its flat line.

Including its current loss, the benchmark index is lower by 0.9% so far this week, which puts it only ahead of the Dow Jones Industrial Average. The price-weighted index has shed 0.8% so far this week, while the Nasdaq and Russell 2000 hold respective week-to-date losses of 1.8% and 3.4%.

With regard to the ten economic sectors, financials and industrials are the two weakest performers of the week. The two sectors are both down 1.6% since Friday, while the utilities sector has added 1.4% with one session remaining in the week.

2:00 pm: [BRIEFING.COM] Equity indices have continued their recovery effort with the Nasdaq 100 ticking into the green. Meanwhile, the Nasdaq Composite and S&P 500 remain lower by 0.2% and 0.3%, respectively.

Like the Nasdaq 100, two influential sectors-technology (+0.01%) and health care (+0.1%)-have also reclaimed their losses, while two other heavily-weighted sectors-consumer discretionary (-0.8%) and financials (-0.6%)-continue weighing on the broader market.

Also of note, the rebound in equities has been pressuring the CBOE Volatility Index (VIX 12.20, +0.55), which is now higher by 4.7%.

1:30 pm: [BRIEFING.COM] Market bulls have to be feeling pretty good about today's market action. No, really. Shortly after the open, the Dow, Nasdaq, and S&P 500 were down 180, 68, and 20 points, respectively. Now they are down 54, 7, and 5 points, respectively.

The current losses might be described as disappointing on any other day, yet the source of encouragement for the bulls is that the market quickly bounced off its opening lows and did not wallow in some of the headline squalor that pushed it down as far as it did in the opening minutes of trading.

The buy-the-dip effort has kept the bears on their toes (or perhaps sitting on their hands), knowing it is not easy to keep this market down for long. One of the factors we suspect that has aided in the rebound effort is the recognition that the US economy looks relatively good compared to many other parts of the world.

Separately, the benchmark 10-yr note has pulled back from its best levels as the major stock indices have rallied back from their worst levels. After being up 14 ticks, it is now up four ticks and yielding 2.54%. On a related note, the $13 bln 30-yr bond reopening went off okay. It drew a high yield of 3.369% on a 2.40 bid-to-cover ratio that was slightly ahead of the prior 12-auction average of 2.37.

1:00 pm: [BRIEFING.COM] At midday, the major averages hover in the red, but they are well off their opening lows. The S&P 500 trades lower by 0.4% after being down as much as 1.0% at the start of the trading day.

The early slump occurred amid a series of negative headlines from all around the world. In Asia, China's exports (7.2% versus expected 10.6%) and imports (5.5% versus expected 5.8%) missed estimates, while Japan's Core Machinery Orders tumbled 19.5% against the expectations of a 0.7% uptick.

News from Europe added insult to injury as indices across the old continent retreated amid worries about Portugal's banking system after the parent company of Banco Espirito Santo missed a bond payment. Portugal's PSI 20 fell 4.2%, while Germany's DAX and Spain's IBEX lost 1.5% and 2.0%, respectively.

Domestically, participants received a little bit of good news on the economic front as weekly initial claims decreased to 304,000 (Briefing.com consensus 311,000); however, headlines out of the corporate world were not nearly as upbeat.

After showing relative strength yesterday, restaurant and retail names are on the defensive following a pair of warnings. Quick-service restaurants have slumped after Potbelly (PBPB 11.38, -3.27) lowered its Q2 guidance below consensus, while retailers have been pressured by a warning from Lumber Liquidators (LL 55.84, -14.58). The two stocks hold respective losses of 22.3% and 20.7% with Potbelly dropping to a record low. As a result, the consumer discretionary sector (-0.8%) is the second-weakest performer, trailing the energy space (-1.0%).

Similar to the discretionary sector, financials (-0.7%) also trail the broader market, while health care (-0.2%) and technology (-0.3%) have wiped out the bulk of their losses. The four top-weighted sectors (especially) warrant close attention into the afternoon as their performance could make or break the rebound effort.

Also of note, the weakness among cyclical sectors has given a boost to defensively-oriented telecom services (+0.3%) and utilities (+0.4%).

Treasuries, meanwhile, rallied into the opening bell, but have been slipping since. The 10-yr note remains higher by eight ticks with its yield down three basis points at 2.53%.

Economic data was limited to weekly initial claims and the Wholesale Inventories report for May:

The initial claims level fell to 304,000 from an unrevised 315,000, while the Briefing.com consensus expected the claims level to fall to 311,000
Over the past several weeks, claims have stabilized between 310,000 and 320,000. While claims came in below this level, it was likely due to normal volatility stemming from the Independence Day holiday and not a change in trend
The continuing claims level increased to 2.584 million from a downwardly revised 2.574 million (from 2.579 million), while the consensus expected continuing claims to slip to 2.567 million
Wholesale inventories increased 0.5% in May following a downwardly revised 1.0% (from 1.1%) in April. The Briefing.com consensus expected wholesale inventories to increase 0.5%
The increase in inventories came predominantly from a 1.9% increase in automotive inventories and a 2.1% increase in metals

12:30 pm: [BRIEFING.COM] The S&P 500 (-0.4%) has inched up to a fresh high following a pause in the rebound effort.

In our prior update, we mentioned that the performance of the financial sector (-0.6%) is likely to go a long way towards determining where the market ends the trading day. While the financial sector has the potential to boost the overall market, a rally in two or more top-weighted groups could also serve the same purpose.

At this juncture, technology (-0.2%) and health care (-0.2%) trade a bit ahead of the broader market, while the consumer discretionary sector (-0.7%) continues showing relative weakness.

Yesterday, restaurant and retail stocks displayed relative strength, but both groups are giving back those gains today. Quick-service restaurant names are down across the board after Potbelly (PBPB 11.35, -3.30) lowered its Q2 guidance below consensus estimates. Retailers, meanwhile, have been pressured by a warning issued by Lumber Liquidators (LL 56.08, -14.34). The stock has plunged 20.4%, while peer Home Depot (HD 79.40, -1.33) holds a loss of 1.6%.

12:00 pm: [BRIEFING.COM] The S&P 500 trades lower by 0.5% after spending the past hour within a point of its current level. The market was able to cut its losses in half, but right now, the indices are awaiting another push higher.

In order for the rebound to continue, the influential cyclical sectors will have to provide a measure of support. With macroeconomic worries present, a rally in the financial sector (-0.9%) would go a long way towards improving today's sentiment.

With stocks remaining in the red, participants are showing demand for volatility protection, but the CBOE Volatility Index (VIX 12.42, +0.77) hovers just north of its session low after opening the day at 13.22%.

11:35 am: [BRIEFING.COM] Stocks have continued their rebound effort with the S&P 500 (-0.5%) trimming its loss in half. The benchmark index has been climbing steadily since notching a session low during the initial fifteen minutes of action with the majority of sectors also climbing off their opening levels.

Nine of ten cyclical sectors are down between 0.4% and 0.8%, while the energy space (-1.1%) has had a more difficult time climbing off its session low.

Also of note, the ongoing rebound in equities has coincided with some money flowing out of the bond market. The 10-yr note has slipped from its high, but remains higher by nine ticks with its yield down three basis points at 2.52%.

11:00 am: [BRIEFING.COM] The S&P 500 (-0.6%) has regained about nine points, but that still leaves the benchmark index down 11 points below its flat line.

Like the S&P 500, the weakest sectors of the day have also inched up off their lows, leaving the energy space (-1.3%) as the only group trading with a loss larger than 1.0%. The growth-oriented sector has been pressured by two of its largest components as Chevron (CVX 130.06, -1.33) and ExxonMobil (XOM 102.28, -1.27) both trade with losses near 1.0% apiece. Crude oil, meanwhile, is lower by 0.2% at $102.08/bbl.

The remaining cyclical sectors are down between 0.6% and 0.8%, while all four countercyclical sectors trade ahead of the broader market. Telecom services (+0.3%) and utilities (+0.7%) hold gains, while consumer staples (-0.03%) and health care (-0.3%) remain in the red.

10:35 am: [BRIEFING.COM]

The dollar index has been climbing higher all day and its near its HoD
However, this isn't affecting precious metals today. Aug gold put in the current HoD earlier this morning at $1346.80/oz.
In current trade, Aug gold is +1.1% at $1338.90/oz, while Sept silver is +1.8% at $21.45/oz
Aug nat gas spiked 2 1/2 cents to $4.19/MMBtu just ahead of inventory data.
Following the weekly EIA data, Aug NG dropped to a new LoD of $4.11/MMBtu and is now -1% at $4.13/MMBtu
Crude oil has been in the red all day and fell as low as $101.55/barrel.
It has since climbed higher back near the unchanged mark and is now -0.3% at $102.03/barrel.
Sept copper is +0.1% at $3.25/lb, while the dollar index is +0.2% at 80.17.

10:05 am: [BRIEFING.COM] The S&P 500 trades lower by 0.9%.

Just released, May wholesale inventories rose 0.5%, which matched the Briefing.com consensus estimate. Today's report followed last month's revised increase of 1.0% (from 1.1%).

9:45 am: [BRIEFING.COM] As expected, the stock market began the session on a sharply lower note with small-cap stocks bearing the brunt of the selling pressure. The Russell 2000 is lower by 1.8%, while the S&P 500 holds a loss of 0.9% with eight of ten sectors holding losses.

Fittingly, with macroeconomic worries taking center stage, cyclical sectors are bunched up at the bottom of the leaderboard with consumer discretionary (-1.2%), energy (-1.1%), and financials (-1.0%) leading the retreat. Meanwhile, the countercyclical side looks a bit better with telecom services (+0.3%) and utilities (+0.3%) holding modest gains, while consumer staples (-0.4%) and health care (-0.9%) hover in the red.

Treasuries have erased some of their gains, but the 10-yr note remains higher by 12 ticks with its yield down four basis points at 2.51%.

The Wholesale Inventories report for May will cross the wires at 10:00 ET (consensus 0.5%).

9:17 am: [BRIEFING.COM] S&P futures vs fair value: -18.10. Nasdaq futures vs fair value: -46.50. The stock market is on track for a notably lower start as futures on the S&P 500 trade 18 points below fair value. Index futures spent the entire overnight session in the red with the bulk of the retreat occurring after European markets opened for action. This was fitting, considering Europe is the source of the worries that have weighed on sentiment.

Specifically, shares of Portugal's Banco Espirito Santo have tumbled 17.4% after its parent company failed to make a bond payment. Banco de Portugal attempted to calm investors, but the attempts have been unsuccessful. Portugal's PSI 20 index is lower by 4.1%, while markets in France, Germany, Italy, and Spain hold losses between 1.8% and 2.9%.

The concerns have also shown up in the foreign exchange market with investors reducing their exposure to the euro, while boosting the dollar and the yen. The euro/yen pair trades near 137.61 after starting the session at 138.61. Meanwhile, the euro/dollar pair hovers near 1.3610 after notching a high at 1.3652.

Outside of the macroeconomic worries, investors have also had to deal with a handful of negative preannouncements. Potbelly (PBPB 11.90, -2.75) holds a pre-market loss of 18.8% and Lumber Liquidators (LL 54.20, -16.22) is indicated to open lower by 23.0% after both primed the market for disappointing quarterly reports.

Treasuries have rallied throughout the night and the 10-yr note is currently higher by 13 ticks with its yield down almost five basis points at 2.51%

8:59 am: [BRIEFING.COM] S&P futures vs fair value: -19.30. Nasdaq futures vs fair value: -45.50. The S&P 500 futures trade 19 points below fair value.

Asian markets ended the Thursday session on a mixed note. The Bank of Korea held its key rate unchanged at 2.50%; Bank Indonesia held its key interest rate unchanged at 7.5%; and Malaysia's central bank hiked its benchmark rate 25 basis points to 3.25%. All three were expected.

In economic data:
China's trade surplus narrowed to $31.60 billion from $35.92 billion (expected surplus of $34.99 billion) as imports rose 5.5% year-over-year (expected 5.8%, previous -1.6%) and exports increased 7.2% (consensus 10.6%, prior 7.0%)
Japan's Household Confidence rose to 41.1 from 39.3 (expected 40.7), while Tertiary Industry Activity Index increased 0.9% month-over-month (consensus 1.9%, previous -5.7%). Also of note, Core Machinery Orders plunged 19.5% month-over-month (expected 0.7%, previous -9.1%)
Australia's MI Inflation Expectations ticked down to 3.8% from 4.0%. Separately, the employment count rose 15,900 (expected 12,000, previous -5,100), but the unemployment rate ticked up to 6.0% from 5.9% (expected 5.9%)

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Japan's Nikkei lost 0.6%, closing at its lowest level of the month. The strengthening yen continued to pressure exporters as Toyota Motor fell 1.0% and Komatsu lost 1.9%
Hong Kong's Hang Seng added 0.3%, climbing off two-week lows. Utilities outperformed as China Resources Power and Datang International Power surged 3.2% and 4.8%, respectively
China's Shanghai Composite ended flat on the 50-day moving average after surrendering its early gains. Energy companies were bid following reports Beijing was looking to upgrade the country's power grid. Huadian Power jumped 4.0%.

European indices trade lower across the board with peripheral markets leading the slide. The region-wide retreat, which has weighed on U.S. futures, was sparked by worries about Portugal's banking system after the parent company of Banco Espirito Santo failed to make a bond payment. Portugal's central bank tried to assure investors as to the bank's solvency, but the attempts have proven futile.

Participants received several data points:
French CPI was unchanged month-over-month (expected 0.2%, previous 0.0%), while Industrial Production fell 1.7% month-over-month (consensus 0.2%, prior 0.3%)
Italy's Industrial Production fell 1.2% month-over-month (expected 0.2%, prior 0.5%), while the year-over-year reading fell 1.8% (consensus 1.1%, previous 1.4%)
Great Britain's trade deficit widened to GBP9.20 billion from GBP8.81 billion (expected deficit of GBP8.75 billion). Also of note, the Bank of England kept its key interest rate and purchasing program unchanged at their respective 0.5% and GBP375 billion

------

Great Britain's FTSE trades lower by 0.9% with financials leading the retreat. Barclays, Hargreaves Lansdown, and Royal Bank of Scotland hold losses between 2.1% and 4.6%. On the upside, consumer names J Sainsbury, Burberry Group, and Next outperform with gains between 1.5% and 2.6%.
In France, the CAC holds a loss of 1.7% with BNP Paribas, Credit Agricole, and Societe Generale fueling the weakness. The three banks are down between 2.7% and 3.0%. On the upside, defense contractor Safran trades up 0.7%.
Germany's DAX trades down 1.7%. Commerzbank and Deutsche Bank are both down near 3.2%, while Fresenius SE represents the lone advancer. The health care stock is higher by 0.3%.
Portugal's PSI underperforms with a loss of 4.1% as all 20 components trade in negative territory. Banco Espirito Santo is down 17.4% and its shares are currently halted with an announcement pending.

8:32 am: [BRIEFING.COM] S&P futures vs fair value: -15.20. Nasdaq futures vs fair value: -34.50. The S&P 500 futures trade 15 points below fair value.

The latest weekly initial jobless claims count totaled 304,000, while the Briefing.com consensus expected a reading of 311,000. Today's tally was below the unrevised prior week count of 315,000. As for continuing claims, they rose to 2.584 million from 2.574 million.

7:58 am: [BRIEFING.COM] S&P futures vs fair value: -16.20. Nasdaq futures vs fair value: -35.00. U.S. equity futures trade near their pre-market lows amid worries about Portugal's banking sector. The concerns have pressured European markets, while the S&P 500 futures hover 16 points below fair value.

Reviewing overnight developments:

Asian markets ended mixed. Japan's Nikkei -0.6%, Hong Kong's Hang Seng +0.3%, and China's Shanghai Composite ended flat
In economic data:
China's trade surplus narrowed to $31.60 billion from $35.92 billion (expected surplus of $34.99 billion) as imports rose 5.5% year-over-year (expected 5.8%, previous -1.6%) and exports increased 7.2% (consensus 10.6%, prior 7.0%)
Japan's Household Confidence rose to 41.1 from 39.3 (expected 40.7), while Tertiary Industry Activity Index increased 0.9% month-over-month (consensus 1.9%, previous -5.7%). Also of note, Core Machinery Orders plunged 19.5% month-over-month (expected 0.7%, previous -9.1%)
Bank Indonesia held its key interest rate unchanged at 7.5%, as expected
Australia's MI Inflation Expectations ticked down to 3.8% from 4.0%. Separately, the employment count rose 15,900 (expected 12,000, previous -5,100), but the unemployment rate ticked up to 6.0% from 5.9% (expected 5.9%)
Bank of Korea made no changes to its policy, keeping its key rate at 2.5%, as expected
In news:
The head of Japan's largest pension fund said the fund will seek to limit the impact of bond prices when reducing its holdings as part of a shift towards greater exposure to equities.

Major European indices trade lower across the board. Great Britain's FTSE -0.9%, Germany's DAX -1.5%, and France's CAC -1.5%. Elsewhere, Italy's MIB -2.1%, Spain's IBEX -2.5%, and Portugal's PSI -4.4%
Participants received several data points:
French CPI was unchanged month-over-month (expected 0.2%, previous 0.0%), while Industrial Production fell 1.7% month-over-month (consensus 0.2%, prior 0.3%)
Italy's Industrial Production fell 1.2% month-over-month (expected 0.2%, prior 0.5%), while the year-over-year reading fell 1.8% (consensus 1.1%, previous 1.4%)
Great Britain's trade deficit widened to GBP9.20 billion from GBP8.81 billion (expected deficit of GBP8.75 billion). Also of note, the Bank of England kept its key interest rate and purchasing program unchanged at their respective 0.5% and GBP375 billion
Among news of note:
The region-wide retreat, which has weighed on U.S. futures, was sparked by worries about Portugal's banking system after the parent company of Banco Espirito Santo failed to make a bond payment. Portugal's central bank tried to assure investors as to the bank's solvency, but the attempts have proven futile. Banco Espirito Santo shares (-17.4%) are currently halted with an announcement pending.

In U.S. corporate news:

DragonWave (DRWI 2.40, +0.16): +7.1% after beating earnings and revenue estimates.
Family Dollar (FDO 63.80, -0.44): -0.7% following its earnings miss on above-consensus revenue. The discount retailer reaffirmed its Q4 earnings forecast, but lowered its Q4 comparable store sales guidance.
Lumber Liquidators (LL 56.00, -14.42): -20.5% after announcing its Q2 results will be well below consensus. The company also issued guided its fiscal-year results below analyst estimates.

Weekly initial claims will be reported at 8:30 ET (Briefing.com consensus 311K), while the Wholesale Inventories report for May will cross the wires at 10:00 ET (consensus 0.5%).

6:58 am: [BRIEFING.COM] S&P futures vs fair value: -17.50. Nasdaq futures vs fair value: -37.00.

6:58 am: [BRIEFING.COM] Nikkei...15216.47...-86.20...-0.60%. Hang Seng...23238.99...+62.90...+0.30%.

6:58 am: [BRIEFING.COM] FTSE...6659.44...-58.60...-0.90%. DAX...9644.50...-164.40...-1.70%.

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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