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 Post subject: July 15th Tuesday Trade Results - Profit $3320.00
PostPosted: Tue Jul 15, 2014 10:18 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 @ $3,320.00 dollars or +33.20 points, Emini ES ($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 @ $3,320.00 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=1839

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.

Did Someone Say Bubble? Stocks Pull Back

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

NEW YORK (CNNMoney)
Investors were caught off guard Tuesday by an explicit warning from the Federal Reserve about valuations on social media and biotechnology stocks.

The Fed didn't use the "b" word (for bubble), but they implied it.

After hitting a new high right out of the gate, the Dow Jones industrial average ended the day a few points above where it started. The S&P 500 fell 0.2%, and the Nasdaq, which has many tech and biotech firms among its components, lost over 0.5%.

Here's what you need to know:

Midterm Fed report: In her semiannual report to the Senate Banking Committee, Federal Reserve Chair Janet Yellen reiterated the Fed's intention to keep interest rates at historic lows for awhile longer.

The economy has improved, but the recovery is not complete, she said. "We judge that a high degree of monetary policy accommodation remains appropriate," she said.

She said prices for stocks, real estate and high-grade corporate bonds remain "in line with historic norms." But valuations in some markets, such as low-rated corporate debt, "appear stretched," she added.

In a written report to Congress, the Fed singled out social media and biotechnology stocks as being "substantially stretched."

Related: Fed says beware of social media, bio tech stocks

While concerns about valuations aren't new, investors were surprised by the Fed's focus on these so-called momentum stocks.

"Clearly, investors were spooked by the Fed's decision to specify certain sectors of the equity market as being overvalued," said Dan Greenhaus, chief market strategist at BTIG.

The Global X Social Media Index (SOCL), an ETF that tracks social media stocks, fell 1%. The iShares Nasdaq Biotechnology ETF (IBB) sank more than 2%.

Winning tech stocks: After the market closed, Intel (INTC, Tech30) reported earnings that beat expectations and announced plans to boost its share repurchase program by $20 billion. The stock is trading about 2% higher after hours. It is now the top performing stock in the Dow for the year.

Shares of Yahoo (YHOO, Tech30) rose 3% in extended trading after the Internet company reported better-than-expected earnings.

Bank earnings: Goldman Sachs (GS) and JPMorgan (JPM) were the top gainers on the Dow after both reported quarterly earnings that beat analysts' expectations. JPmorgan stock gained 3.5%.

The results came one day after Citigroup (C)reported earnings that beat expectations and announced a $7 billion settlement with the federal government over mortgages it sold in the run-up to the financial crisis.

Related: JPMorgan earnings: Thanks, Main Street!

Johnson & Johnson (JNJ) also reported earnings that beat expectations. The maker of consumer health care products boosted its full-year earnings forecast as well. But the stock was down more than 2%, making it the biggest drag on the Dow.

In economic news, the government said retail sales increased 0.2% in June from the month before. That was a smaller gain than expected, but economist said the report showed strength below the surface.

Tobacco tie up: Reynolds American (RAI) and Lorillard (LO) announced plans to merge in a cash-and-stock transaction valued at $27.4 billion. Under the terms of the deal, Reynolds will sell certain brands and assets to Imperial Tobacco, while British Tobacco will maintain its stake in Reynolds.

Shares of Reynolds and Lorillard had rallied ahead of the widely-anticipated merger, but both stocks were down sharply after the news came out. Lorillard is down over 10%.

Related: Betting $27 billion on cigarettes

Fashion faux pas: Michael Kors (KORS) stock fell on a negative analyst report. Kors is up close to 30% in the past year, but there are questions about whether the momentum can continue.

Overseas markets: European markets ended lower, after Germany's ZEW index of investor sentiment came in weaker than expected. Concerns about Portugal's Banco Espirito Santo also weighed on European markets. BES shares plunged amid concerns that a company linked to the troubled bank might miss a debt payment. But the stock recovered later in the day following upbeat comments from its CEO.

Asian markets were mixed.

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4:15 pm: [BRIEFING.COM] The major averages posted modest Tuesday losses after being unable to hold their opening gains. Small caps displayed relative weakness throughout the session, which resulted in the Nasdaq Composite (-0.5%) and Russell 2000 (-1.0%) ending behind the S&P 500 (-0.2%) and the Dow Jones Industrial Average (+0.03%).

Equities appeared to be on track for an upbeat session after the financial sector (+0.7%) got out to an early lead thanks to better than expected earnings from Goldman Sachs (GS 169.17, +2.17) and JPMorgan Chase (JPM 58.27, +1.98). The two influential sector components gained 1.3% and 3.5%, respectively, but their strength was not enough to keep the benchmark index out of the red.

The S&P 500 slumped to lows in the late morning after supplemental remarks to Fed Chair Yellen's semiannual testimony on monetary policy singled out biotechnology and social media stocks as groups that have had their valuations stretched. Appropriately, stocks from both arenas responded by pacing the late-morning retreat.

Most notably, the iShares Nasdaq Biotechnology ETF (IBB 252.43, -5.67) lost 2.2%, which put the ETF back near its lowest levels of the month. For its part, the health care sector (-0.9%) was the weakest performing group.

Meanwhile, another countercyclical sector-consumer staples-also ended near the bottom of the leaderboard. The sector lost 0.8% with tobacco names exerting pressure as Lorillard (LO 60.17, -7.05) tumbled 10.5% after agreeing to be acquired by Reynolds American (RAI 58.84, -4.34) for $68.88 per share. The deal announcement was followed by news that Moody's is reviewing ratings of both names for potential downgrades.

Outside of consumer staples and health care, the other two countercyclical sectors fared well. The telecom services sector rose 0.7% and utilities added 0.5%.

Turning back to the cyclical side, financials remained in the green throughout the day, while the industrial sector (+0.1%) crept into positive territory during the afternoon. Transports contributed to the rebound (Dow Jones Transportation Average +0.4%) with JB Hunt (JBHT 76.94, +2.65) leading the pack. The stock rallied 3.6% after reporting in-line results this morning.

Elsewhere, the top-weighted S&P 500 sector-technology (-0.2%)-underperformed intraday, but caught up to the S&P 500 ahead of the close. Social media names lagged, but were able to trim some of their losses. Facebook (FB 67.16, -0.73), Twitter (TWTR 37.88, -0.43), and Yelp (YELP 69.02, -2.09) lost between 1.1% and 2.9%.

Treasuries ended the day little changed after alternating between gains and losses. The 10-yr yield finished the day at 2.55%.

Participation bucked the recent trend with an above-average 716 million shares changing hands at the NYSE.

Economic data included June Retail Sales, June import/export prices, July Empire Manufacturing survey, and the Empire Manufacturing Survey:

Retail sales increased 0.2% in June following an upwardly revised 0.5% (from 0.3%) increase in May, while the Briefing.com consensus expected an increase of 0.7%
The June employment report signaled a strong increase in aggregate earnings and motor vehicle sales for the same month exceeded 17 million SAAR for the first time since July 2006. Both of those factors were expected to drive retail sales growth in June, yet failed to provide the oomph needed to accelerate consumer demand
It seems likely that consumers pocketed some of the extra earnings in June and increased their savings rate
Excluding motor vehicles, retail sales increased a 0.4% in June, which was the same growth rate following an upward revision (from 0.1%) in May. The consensus expected these sales to increase 0.6%
Export prices, excluding agriculture, fell 0.3% in June after increasing 0.1% in the prior reading
Excluding oil, import prices declined 0.1%, which followed last month's unchanged reading
The Empire Manufacturing Survey for July registered a reading of 25.6, which was well ahead of the prior month's reading of 19.3. It was also ahead of the Briefing.com consensus estimate, which was pegged at 13.2
Business inventories increased 0.5% in May following an unrevised 0.6% increase in April, while the Briefing.com consensus expected business inventories to increase 0.6%
Inventories for manufacturers (0.8%) and merchant wholesalers (0.5%) were known prior to the release. Only retailer inventories, which increased 0.2% in May after increasing 0.5% in April, were unknown

Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET, while June PPI (Briefing.com consensus 0.2%) will be reported at 8:30 ET. The Net Long-Term TIC Flows report for May will cross the wires at 9:00 ET, while June Industrial Production (consensus 0.4%) and Capacity Utilization (expected 79.2%) will both be announced at 9:15 ET. The busy day of data will also include the 10:00 ET release of the NAHB Housing Market Index for July (consensus 50) and the July Fed Beige Book, which will be released at 14:00 ET.

S&P 500 +6.8% YTD
Nasdaq Composite +5.7% YTD
Dow Jones Industrial Average +2.9% YTD
Russell 2000 -0.8% YTD

3:35 pm: [BRIEFING.COM]

Precious metals were under pressure today as the dollar index advanced during Fed Chair Janet Yellen's Senate testimony.
The Fed Chair's comments stayed in-line with her prior message as she was optimistic about the direction of the economy and employment but remained cautious on the page of the recovery.
Aug gold fell into negative territory below the $1300 per ounce level from its session high of $1313.20 per ounce set in early morning pit trade. It traded as low as $1292.60 per ounce and eventually settled at $$1297.20 per ounce, or 0.7% lower.
Sep silver also retreated into the red after trading as high as $21.13 per ounce in early morning action. It brushed a session low of $20.67 per ounce and settled with a 0.1% loss at $20.89 per ounce.
Aug crude oil fell below the $100.00 per barrel level as the stronger dollar index pressured prices. The energy component traded as low as $98.99 per barrel in morning action and eventually settled with a 1.1% loss at $99.86 per barrel.
Aug natural gas pulled back from its session high of $4.15 per MMBtu set in early morning pit trade and traded as low as $4.09 per MMBtu. Unable to gain momentum, it settled with a 1.2% loss at $4.10 per MMBtu.

3:00 pm: [BRIEFING.COM] The S&P 500 trades two points below its flat line with one hour remaining in the session.

Participants received a handful of noteworthy quarterly reports this morning with an increasing number of companies scheduled to reveal their results over the coming days. Following today's close, CSX (CSX 31.12, +0.09), Intel (INTC 31.77, +0.28), and Yahoo! (YHOO 35.56, -0.14) will release their quarterly reports, while tomorrow will be headlined by Abbott Labs (ABT 41.36, -0.45) and Bank of America (BAC 15.79, +0.22).

2:30 pm: [BRIEFING.COM] The S&P 500 (-0.1%) has inched closer to its flat line, while the industrial sector (+0.1%) has joined financials (+0.7%), telecom services (+0.7%), and utilities (+0.5%) in the green.

The modest strength among industrials is mainly due to the outperformance of the Dow Jones Transportation Average. The bellwether complex is higher by 0.4% with 15 of its 20 components in the green. Five index members hold gains of at least 1.0% with JB Hunt (JBHT 76.02, +1.76) trading up 2.4% after reporting results that were in line with analyst expectations.

2:00 pm: [BRIEFING.COM] The major averages have continued working their way back off the late-morning lows. The Dow Jones Industrial Average has made a brief appearance above its flat line, while the S&P 500 continues trading about four points below its unchanged level.

In large part, the Dow owes its outperformance to the continued strength in the shares of Goldman Sachs (GS 168.79, +1.79) and JPMorgan Chase (JPM 58.42, +2.13) after both reported above-consensus quarterly results.

Another Dow component, Johnson & Johnson (JNJ 103.39, -1.99), also reported better than expected earnings, but its stock is the weakest performer in the Dow with a loss of 1.9%.

1:30 pm: [BRIEFING.COM] With Fed Chair Yellen specifically making note of stretched valuations for "smaller firms as well as social media and biotechnology firms," it should perhaps come as little surprise today that the blue chip averages are exhibiting relative strength in today's session.

The Dow Jones Industrial Average is basically flat while the S&P 500 is down just 0.2% versus a 0.5% decline for the Nasdaq and a 1.0% decline for the Russell 2000. The financial sector (+0.6%), bolstered by the positive disposition of JPMorgan Chase (JPM 58.47, +2.18) and Goldman Sachs (GS 168.82, +1.82) after their earnings reports, has been instrumental in supporting the blue chip averages.

The relative strength of the financial sector has created some mental jockeying among participants aiming to assess if that strength will save the day for the stock market or whether the weakness stemming from Ms. Yellen's valuation warning will ultimately succeed in accelerating broader profit-taking interest.

It's a split decision so far. There has been some seesaw trading activity since her remarks hit the wires.

1:00 pm: [BRIEFING.COM] The major averages hover near their lows at midday with small caps leading the retreat. The Russell 2000 and Nasdaq Composite hold respective losses of 1.0% and 0.6%, while the S&P 500 trades lower by 0.3% with seven sectors in the red.

Equities began the trading day on an upbeat note with the early sentiment bolstered by a pair of better than expected quarterly reports from two significant members of the Dow Jones Industrial Average and the financial sector.

Specifically, Goldman Sachs (GS 168.22, +1.22) and JPMorgan Chase (JPM 58.41, +2.12) both surprised to the upside and their stocks hold respective gains of 0.8% and 3.8% at this juncture. For its part, the financial sector is higher by 0.5%, which makes it one of just three sectors trading in the green.

Despite the upbeat start, the market slumped to lows after the Monetary Policy report, which was released at the start of Janet Yellen's semiannual testimony before the Senate Banking Committee, highlighted biotechnology and social media stocks as areas where excessive risk-taking has been spotted.

Fittingly, the concerns about the two areas have caused biotech and social media stocks to fuel the late-morning retreat. The iShares Nasdaq Biotechnology ETF (IBB 253.29, -4.81), which is lower by 1.9%, is now back near its lowest level of the month (250.34), while the likes of Facebook (FB 67.21, -0.69), Yelp (YELP 68.55, -2.56), and Zynga (ZNGA 3.13, -0.05) hold losses between 1.0% and 3.6%.

The weakness in social media names pressured the technology sector (-0.3%), but it is worth pointing out that the top-weighted group has been climbing off its low over the past hour. Similarly, the S&P 500 has also been working its way back off its session low.

Treasuries have spent some time on either side of their flat lines, but the 10-yr yield is currently lower by one basis point at 2.54%.

Economic data included June Retail Sales, June import/export prices, July Empire Manufacturing survey, and the Empire Manufacturing Survey:

Retail sales increased 0.2% in June following an upwardly revised 0.5% (from 0.3%) increase in May, while the Briefing.com consensus expected an increase of 0.7%
The June employment report signaled a strong increase in aggregate earnings and motor vehicle sales for the same month exceeded 17 million SAAR for the first time since July 2006. Both of those factors were expected to drive retail sales growth in June, yet failed to provide the oomph needed to accelerate consumer demand
It seems likely that consumers pocketed some of the extra earnings in June and increased their savings rate
Excluding motor vehicles, retail sales increased a 0.4% in June, which was the same growth rate following an upward revision (from 0.1%) in May. The consensus expected these sales to increase 0.6%
Export prices, excluding agriculture, fell 0.3% in June after increasing 0.1% in the prior reading
Excluding oil, import prices declined 0.1%, which followed last month's unchanged reading
The Empire Manufacturing Survey for July registered a reading of 25.6, which was well ahead of the prior month's reading of 19.3. It was also ahead of the Briefing.com consensus estimate, which was pegged at 13.2
Business inventories increased 0.5% in May following an unrevised 0.6% increase in April, while the Briefing.com consensus expected business inventories to increase 0.6%
Inventories for manufacturers (0.8%) and merchant wholesalers (0.5%) were known prior to the release. Only retailer inventories, which increased 0.2% in May after increasing 0.5% in April, were unknown

12:30 pm: [BRIEFING.COM] The S&P 500 (-0.4%) has inched down to a new low before returning to its earlier level.

At this juncture, the health care sector (-0.9%) is the weakest group with noteworthy pressure coming from biotechnology after the group was highlighted as an arena of excessive risk taking in the Monetary Policy report. The iShares Nasdaq Biotechnology ETF (IBB 252.98, -5.12) is now lower by 2.0%, which puts the ETF just above its July low (250.34).

Outside of health care, another countercyclical sector-consumer staples-can be found near the bottom of the leaderboard. The sector is lower by 0.8%.

Also of note, Fed Chair Janet Yellen has recently wrapped up her testimony before the Senate Banking Committee.

11:55 am: [BRIEFING.COM] Recent action saw the major averages return to their lows. All in all, the S&P 500 (-0.3%) is holding up relatively well, considering seven of its ten sectors trade in the red.

However, the continued strength of financials (+0.4%) has helped the benchmark index hold its loss in check. Goldman Sachs (GS 168.71, +1.71) and JPMorgan Chase (JPM 58.37, +2.08) hold respective gains of 1.0% and 3.8% after both reported better than expected earnings this morning.

Elsewhere, telecom services (+0.3%) and utilities (+0.5%) also hover in the green, but it is worth pointing out the two sectors account for less than 6.0% of the broader market versus a 15.9% share for the financial sector.

11:30 am: [BRIEFING.COM] Equity indices remain near their session lows that were established within the past hour of action. The Russell 2000 is lower by 0.8%, while the Nasdaq Composite (-0.5%) also trails the S&P 500 (-0.1%).

As mentioned earlier, the supplemental remarks released with Janet Yellen's speech pointed to biotechnology and social media stocks as areas of excessive risk-taking. Considering both groups are represented in the Nasdaq Composite, the tech-heavy index trails the broader market.

Meanwhile, top-weighted Nasdaq components are a bit mixed with Apple (AAPL 95.73, -0.72) and Google (GOOGL 590.02, -4.24) both down near 0.8%, while Intel (INTC 31.62, +0.12) and Microsoft (MSFT 42.22, +0.08) hold modest gains.

10:55 am: [BRIEFING.COM] The major averages have slid to their lowest levels of the session with high-growth names pacing the retreat. The Russell 2000 is lower by 1.1%, while the S&P 500 holds a loss of 0.3% with seven sectors in the red.

The weakness in small caps occurred after the Monetary Policy report, which was released at the start of Janet Yellen's testimony, indicated that Fed officials have taken note of the rapid rise in valuations of biotechnology and social media stocks. Fittingly, those groups have led the market lower over the past hour. Facebook (FB 66.42, -1.48) and Yelp (YELP 67.90, -3.21) hold respective losses of 2.2% and 4.5%, while the iShares Nasdaq Biotechnology ETF (IBB 253.25, -4.85) trades lower by 1.9%.

On the upside, countercyclical telecom services (+0.4%) and utilities (+0.1%) trade ahead of the other countercyclical sectors, while financials (+0.4%) remain in the lead.

10:35 am: [BRIEFING.COM]

Crude oil prices continue to get hammered; Aug crude just hit another new LoD and is now -1.4% at $99.49/barrel
Gold and silver futures rallied in recent trade on Yellen comments, which pushed silver to a new HoD and gold back its current HoD
However, this was short-lived and both precious metals erased some of those gains
Aug gold is currently +0.2% at $1309/oz, Sept silver is +0.6% at $21.04/oz
Natural gas slowly erased its overnight losses in morning trade off of $4.12, but just pulled back recently and is now -0.5% at $4.13/MMBtu
Copper popped higher this morning and is currently +0.3% at $3.26/lb

10:00 am: [BRIEFING.COM] The S&P 500 trades higher by 0.1%.

Just reported, May business inventories rose 0.5%, while the Briefing.com consensus expected an uptick of 0.6%. This followed the prior month's unrevised increase of 0.6%.

9:40 am: [BRIEFING.COM] The stock market began the session on a modestly higher note with the Dow Jones Industrial Average (+0.3%) in the lead. The price-weighted index has drawn early strength from Goldman Sachs (GS 169.46, +2.46) and JPMorgan Chase (JPM 58.21, +1.92), both of which reported better than expected earnings.

The opening strength in those two names has sent the financial sector (+0.8%) to the top of the leaderboard, while other cyclical groups trade in mixed fashion. Industrials (+0.3%), materials (+0.6%), and technology (+0.3%) display relative strength, while consumer discretionary (-0.1%) and energy (-0.1%) lag.

Treasuries remain just below their flat lines with the 10-yr yield at 2.55%.

The Business Inventories report for May will be released at 10:00 ET (Briefing.com consensus 0.6%).

9:16 am: [BRIEFING.COM] S&P futures vs fair value: +1.80. Nasdaq futures vs fair value: +5.50. The stock market is on course for a modestly higher start as futures on the S&P 500 trade two points above fair value. Index futures slumped at the start of the European session, but they have since climbed to new pre-market highs with help from a set of better than expected earnings from the financial sector.

Specifically, Dow components Goldman Sachs (GS 169.42, +2.42) and JPMorgan Chase (JPM 57.84, +1.55) hold respective gains of 1.6% and 2.7% after both reported above-consensus results. Elsewhere, another Dow component, Johnson & Johnson (JNJ 105.32, -0.06), is indicated to open little changed after it too reported better than expected earnings.

In addition to blue chip earnings, participants will be keeping an eye on Washington where Janet Yellen will begin her semiannual testimony on monetary policy. The prepared remarks will be read at 10:00 ET and a Q&A session will follow.

Treasuries hold slim losses to start the day with the 10-yr yield up less than a basis point at 2.55%.

9:01 am: [BRIEFING.COM] S&P futures vs fair value: +2.10. Nasdaq futures vs fair value: +5.00. The S&P 500 futures trade two points above fair value.

Asian markets ended on a higher note with gains limited to no more than 1.0%. The Bank of Japan made no changes to its monetary policy, but it did lower its fiscal-year 2014/15 GDP target to 1.0% from 1.1%.

In economic data:
China's New Loans came in at CNY1.08 trillion (expected CNY915 billion, previous CNY871 billion), while Outstanding Loan Growth was reported at 14.0% year-over-year (expected 13.8%, previous 13.9%). Separately, M2 Money Stock expanded 14.7% year-over-year (consensus 13.5%, previous 13.4%) and Foreign Direct Investment slowed to 2.2% from 2.8%
Australia's New Motor Vehicle Sales rose 1.7% month-over-month (previous 0.4%)
South Korea's trade surplus expanded to $5.50 billion from $5.30 billion
Singapore's Retail Sales rose 5.2% month-over-month (expected 1.7%, previous -0.7%), while the year-over-year reading fell 6.0% (consensus -8.2%, prior -9.0%)

------

Japan's Nikkei added 0.6%, but made the bulk of its advance during the opening hour of action. Bridgestone led the way with a gain of 3.4%, while machinery manufacturer Fanuc lost 0.7%.
Hong Kong's Hang Seng gained 0.5% after also spiking at the open and holding the bulk of its gain into the close. Telecom names continued showing strength with China Mobile and China Unicom climbing 3.4% and 1.1%, respectively.
China's Shanghai Composite flirted with negative territory, but climbed off the lows during the final hour of action. Guizhou Guihang Automotive and Liaoning SG Automotive both gained 10.0%.

Core European indices trade little changed after climbing off their lows. The British pound spiked in reaction to a hotter than expected CPI reading, climbing from a session low of 1.7060 to 1.7165 against the greenback.

Participants received several data points:
Eurozone ZEW Economic Sentiment rose to 61.8 from 58.4 (expected 62.3)
Germany's ZEW Economic Sentiment fell to 27.1 from 29.8 (consensus 28.0) as Current Conditions fell to 61.8 from 67.7 (expected 67.0)
Great Britain's CPI rose 0.2% month-over-month (expected -0.1%, previous -0.1%), while the year-over-year reading jumped 1.9% (consensus 1.6%, prior 1.5%). Separately, Core CPI rose 2.0% year-over-year (expected 1.7%, previous 1.6%), Input PPI fell 4.4% year-over-year (expected -4.5%, prior -3.8%), and Output PPI ticked up 0.2% year-over-year (expected 0.5%, previous 0.5%). Also of note, House Price Index rose 10.5% year-over-year (expected 10.2%, prior 9.9%)
Italy's CPI ticked up 0.1% month-over-month, while the year-over-year reading increased 0.3%. Both figures met expectations

------

Great Britain's FTSE trades flat. Barratt Developments is the weakest performer, down 2.3%. Miners are showing strength with Anglo American, BHP Billiton, and Fresnillo all up near 1.4%.
Germany's DAX hovers right below its flat line. Adidas is lower by 2.1% after signing a 10-year sponsorship deal with Manchester United. Deutsche Bank outperforms with a gain of 1.9%.
In France, the CAC is lower by 0.1% with Cap Gemini showing the largest loss. The tech stock is lower by 2.4%. Utilities outperform with Electricite de France and GDF Suez up 2.3% and 1.1%, respectively.
Spain's IBEX lags with a loss of 0.6% amid weakness in financials. Banco Popular Espanol, Banco Santander, and Bankia are down between 0.9% and 2.4%

8:32 am: [BRIEFING.COM] S&P futures vs fair value: +3.40. Nasdaq futures vs fair value: +6.70. The S&P 500 futures trade three points above fair value.

June retail sales rose 0.2%, while the Briefing.com consensus expected an increase of 0.7%. The prior month's reading was revised to reflect an increase of 0.5% (from +0.3%). Excluding autos, retail sales ticked up 0.4% against the 0.6% increase expected by the consensus.

The Empire Manufacturing Survey for July registered a reading of 25.6, which was well ahead of the prior month's reading of 19.3. It was also well ahead of the Briefing.com consensus estimate, which was pegged at 13.2.

Export prices, excluding agriculture, fell 0.3% in June after increasing 0.1% in the prior reading. Excluding oil, import prices declined 0.1%, which followed last month's unchanged reading.

7:59 am: [BRIEFING.COM] S&P futures vs fair value: +1.40. Nasdaq futures vs fair value: +4.00. U.S. equity futures trade little changed amid cautious action overseas. The S&P 500 futures hover one point above fair value.

Reviewing overnight developments:

Asian markets ended on a higher note. China's Shanghai Composite +0.2%, Hong Kong's Hang Seng +0.5%, and Japan's Nikkei +0.6%
In economic data:
China's New Loans came in at CNY1.08 trillion (expected CNY915 billion, previous CNY871 billion), while Outstanding Loan Growth was reported at 14.0% year-over-year (expected 13.8%, previous 13.9%). Separately, M2 Money Stock expanded 14.7% year-over-year (consensus 13.5%, previous 13.4%) and Foreign Direct Investment slowed to 2.2% from 2.8%
Australia's New Motor Vehicle Sales rose 1.7% month-over-month (previous 0.4%)
South Korea's trade surplus expanded to $5.50 billion from $5.30 billion
Singapore's Retail Sales rose 5.2% month-over-month (expected 1.7%, previous -0.7%), while the year-over-year reading fell 6.0% (consensus -8.2%, prior -9.0%)
In news:
The Bank of Japan made no changes to its monetary policy, but it did lower its fiscal-year 2014/15 GDP target to 1.0% from 1.1%

Major European indices trade lower across the board. Great Britain's FTSE -0.1%, Germany's DAX -0.3%, and France's CAC -0.4%. Elsewhere, Italy's MIB -0.9% and Spain's IBEX -1.0%
Participants received several data points:
Eurozone ZEW Economic Sentiment rose to 61.8 from 58.4 (expected 62.3)
Germany's ZEW Economic Sentiment fell to 27.1 from 29.8 (consensus 28.0) as Current Conditions fell to 61.8 from 67.7 (expected 67.0)
Great Britain's CPI rose 0.2% month-over-month (expected -0.1%, previous -0.1%), while the year-over-year reading jumped 1.9% (consensus 1.6%, prior 1.5%). Separately, Core CPI rose 2.0% year-over-year (expected 1.7%, previous 1.6%), Input PPI fell 4.4% year-over-year (expected -4.5%, prior -3.8%), and Output PPI ticked up 0.2% year-over-year (expected 0.5%, previous 0.5%). Also of note, House Price Index rose 10.5% year-over-year (expected 10.2%, prior 9.9%)
Italy's CPI ticked up 0.1% month-over-month, while the year-over-year reading increased 0.3%. Both figures met expectations
Among news of note:
The British pound spiked in reaction to the hotter than expected CPI reading, climbing from a session low of 1.7060 to 1.7160 against the greenback

In U.S. corporate news:

Comerica (CMA 54.50, +3.96): +7.8% after beating bottom-line estimates and guiding for a 4.0-6.0% average loan growth in fiscal-year 2014.
Goldman Sachs (GS 169.75, +2.75): +1.7% after beating earnings and revenue estimates.
JPMorgan Chase (JPM 57.67, +1.38): +2.5% following its above-consensus earnings and revenue.
Johnson & Johnson (JNJ 106.20, +0.82): +0.8% in reaction to better than expected results and guidance.
Reynolds American (RAI 61.60, -1.58): -2.5% after agreeing to acquire Lorillard (LO 63.92, -3.30) in cash and stock for $27.40 billion.

The Retail Sales report for June (Briefing.com consensus 0.7%), June import/export prices, and the July Empire Manufacturing survey (consensus 13.2) will be released at 8:30 ET, while the Business Inventories report for May (consensus 0.6%) will cross the wires at 10:00 ET. Also of note, Fed Chair Janet Yellen will appear before the Senate Banking Committee to provide her semiannual testimony on the economy and monetary policy.

6:29 am: [BRIEFING.COM] S&P futures vs fair value: -2.50. Nasdaq futures vs fair value: -3.00.

6:29 am: [BRIEFING.COM] Nikkei...15395.16...+98.30...+0.60%. Hang Seng...23459.96...+113.30...+0.50%.

6:29 am: [BRIEFING.COM] FTSE...6736.90...-9.00...-0.10%. DAX...9737.80...-45.20...-0.40%.

http://www.bloomberg.com/news/2014-07-1 ... imony.html

http://www.bloomberg.com/news/2014-07-1 ... emand.html

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

http://www.thestrategylab.com
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