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 Post subject: August 19th Tuesday Trade Results - Profit $670.00
PostPosted: Wed Aug 20, 2014 12:22 am 
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Joined: Sat Jan 10, 2009 2:06 pm
Posts: 4335
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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081914-wrbtrader-Price-Action-Trading-PnL-Blotter-Profit+670.00.png
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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 @ $670.00 dollars or +6.70 points, Emini ES ($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 @ $670.00 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=133&t=1866

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=244&t=2455

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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.

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

Yahoo! Finance

4:15 pm: [BRIEFING.COM] The stock market continued its strong start to the week with a broad-based Tuesday rally that sent the S&P 500 higher by 0.5%. Nine of ten sectors registered gains while the benchmark index extended its week-to-date advance to 1.4%.

Equities received an opening boost from a pair of economic data points that crossed the wires this morning. An in-line CPI report suggested inflationary pressures remain contained, while a better than expected Housing Starts report underpinned homebuilders and the discretionary sector.

Fittingly, the consumer discretionary space (+0.8%) surged out of the gate and spent the entire session among the leaders. Homebuilders rallied following the upbeat data and better than expected earnings from Home Depot (HD 88.23, +4.64). The Dow component jumped 5.6%, while the iShares Dow Jones US Home Construction ETF (ITB 23.99, +0.56) advanced 2.4%.

Retail stocks also played a part in the outperformance of the discretionary sector after Dick's Sporting Goods (DKS 44.21, +0.70) and Urban Outfitters (URBN 38.59, +1.67) beat their earnings estimates. The SPDR S&P Retail ETF (XRT 87.05, +1.11) rose 1.3%.

While the influential discretionary sector displayed broad strength, other heavily-weighted groups were a bit more mixed. Technology (+0.7%) outperformed, while financials (+0.2%) and industrials (+0.2%) lagged.

The top-weighted sector-technology-received support from chipmakers. The PHLX Semiconductor Index recaptured its 50-day moving average and added 0.6% with all but five components posting gains. Meanwhile, most large cap tech components were limited to modest gains, but shares of Apple (AAPL 100.53, +1.37) climbed to a fresh all-time high.

Elsewhere, the top-weighted countercyclical sector-health care (+0.7%)-trailed the broader market for the majority of the session, but spiked during afternoon action in reaction to reports from the Wall Street Journal, indicating Salix Pharmaceuticals (SLXP 160.80, +21.63) was approached by Allergan (AGN 161.82, +6.21) about a potential acquisition. Shares of SLXP ended higher by 15.5%, while the iShares Nasdaq Biotechnology ETF (IBB 267.23, +1.02) tacked on 0.4% after showing intraday weakness.

Similar to health care, the utilities sector (+1.2%) outperformed, while the remaining two defensively-oriented groups-consumer staples (+0.2%) and telecom services (-0.3%)-lagged.

Treasuries began the day with solid gains, but spent the session in a steady retreat. The 10-yr note shed one tick with its yield ending at 2.40%.

Participation was well below average with fewer than 550 million shares changing hands at the NYSE.

Economic data was limited to CPI, and Housing Starts/Building Permits:

Consumer prices increased 0.1% in July following a 0.3% increase in June, which matched the Briefing.com consensus
As expected from the July PPI report, energy prices fell 0.3% in July after increasing 1.6% in June
Food prices accelerated, up 0.4% in July from a 0.1% increase in June
Food at home prices, typically from grocery stores, increased 0.7%, which was the largest increase since August 2011
Excluding food and energy, core CPI increased 0.1% for a second consecutive month in July, which is what the consensus expected
Housing starts increased 15.7% in July to 1.093 million from an upwardly revised 945,000 (from 893,000) in June, while the Briefing.com consensus expected an increase to 964,000
The big news out of the housing data was an 8.3% increase (to 656,0000) in single-family construction after declines were observed in May and June
Building permits rose to a seasonally adjusted annualized rate of 1.052 million in July versus a revised 973K for June, while the Briefing.com consensus expected an increase to 1.001 million

Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET, while the minutes from the latest FOMC policy meeting will cross the wires at 14:00 ET.

Nasdaq Composite +8.4% YTD
S&P 500 +7.2% YTD
Dow Jones Industrial Average +2.1% YTD
Russell 2000 -0.1% YTD

3:35 pm: [BRIEFING.COM]

The dollar index continued to hold gains, which helped weigh on commodities today
Commodities such as crude oil, gold, silver and copper all sold off today and ended the on today's lows
Sept crude oil fell as low as $94.26 and ended today floor trading session $2.97 lower at $94.34/barrel
Dec gold lost $2.40 to $1296.80/oz, Sept silver fell $0.22 to $19.42/oz and Sept copper fell 2 cents to $3.09
Natural gas futures rallied today and finished 2.4% higher at $3.88/MMBtu
Sept corn recovered and gained 3 cents to $3.63/bushel.

2:55 pm: [BRIEFING.COM] The S&P 500 trades higher by 0.5% with one hour remaining in the session. Retail earnings were in focus this morning and investors will continue keeping an eye on the group as the week continues.

Tomorrow morning, Target (TGT 59.34, +0.79) will headline the list of reporting companies, while American Eagle (AEO 11.40, +0.26), Lowe's (LOW 51.86, +1.41), Staples (SPLS 11.61, +0.08), and PetSmart (PETM 68.55, +0.11) will also report their results.

2:30 pm: [BRIEFING.COM] The S&P 500 (+0.5%) has ticked up to a new high with nine sectors holding gains. Investors received two economic data points this morning with both reports contributing to the opening advance.

Tomorrow morning, participants will receive just one data point (MBA Mortgage Index), which is not known for having market-moving potential. However, the afternoon will feature the minutes from the latest FOMC policy meeting. Participants will sift through the release in search of hints regarding the potential timing of the first fed funds rate hike. The minutes will be released at 14:00 ET.

2:00 pm: [BRIEFING.COM] Quiet afternoon continues with the S&P 500 (+0.4%) spending the past 90 minutes of action in a one-point range.

In our midday update we mentioned that the health care sector (+0.4%) was struggling to keep up with the market, but a recent surge in the biotech space has helped the sector close the gap. The iShares Nasdaq Biotechnology ETF (IBB 267.02, +0.81) is now higher by 0.3%.

Notably, Salix Pharmaceuticals (SLXP 153.00, +13.83) has surged to highs after the Wall Street Journal reported the company has been approached by Allergan (AGN 158.78, +3.17) about a potential acquisition. Shares of SLXP are now higher by 9.9%.

1:30 pm: [BRIEFING.COM] Not much change has taken place since our midday update with the S&P 500 (+0.4%) holding near its session high.

The consumer discretionary sector (+0.8%) has been among the leaders since the start of the day and so has the energy space (+0.8%). The growth-sensitive sector remains near its best level of the day even as crude oil holds a loss of 0.7% at $93.12/bbl.

Despite today's strength, the energy sector has been the weakest cyclical group during August. The sector holds a month-to-date gain of 0.7%, which puts it only ahead of the telecom services sector. The countercyclical group is down 3.1% so far this month.

12:55 pm: [BRIEFING.COM] The major averages hold modest midday gains with the S&P 500 hovering near its high. The benchmark index has added 0.4% with nine sectors in the green.

Equities received a boost this morning after the Housing Starts/Building Permits report for July surpassed expectations. In addition, an in-line CPI report indicated that inflationary pressures remain in check.

Fittingly, the upbeat report from the housing sector has underpinned homebuilders and the overall consumer discretionary sector (+0.8%). Furthermore, a better than expected earnings report from Home Depot (HD 88.58, +4.99) has also boosted the sector. For its part, the iShares Dow Jones US Home Construction ETF (ITB 24.00, +0.57) trades higher by 2.4%.

Similar to the discretionary space, the technology sector (+0.6%) trades ahead of the broader market, while financials (+0.3%), health care (+0.1%), and industrials (+0.3%) have struggled to keep up.

Notably, the tech sector has been boosted by chipmakers as evidenced by a 0.6% increase for the PHLX Semiconductor Index. Only three components hover in the red with NXP Semi (NXPI 63.00, -0.23) showing the largest loss. Meanwhile, large cap sector components are somewhat mixed, but shares of Apple (AAPL 100.47, +1.31) have notched a fresh all-time high.

Despite the strength in Apple, the tech-heavy Nasdaq trails the broader market amid weakness in biotechnology. The iShares Nasdaq Biotechnology ETF (IBB 264.98, -1.23) is lower by 0.5%, while the health care sector holds a slim gain (+0.1%).

Similar to health care, consumer staples (+0.3%) and telecom services (-0.6%) lag, while the utilities sector (+1.0%) hovers near its session high.

Treasuries held modest gains in the early morning, but have since dipped into the red. The 10-yr yield is lower by one basis point at 2.40%.

Economic data was limited to CPI, and Housing Starts/Building Permits:

Consumer prices increased 0.1% in July following a 0.3% increase in June, which matched the Briefing.com consensus
As expected from the July PPI report, energy prices fell 0.3% in July after increasing 1.6% in June
Food prices accelerated, up 0.4% in July from a 0.1% increase in June
Food at home prices, typically from grocery stores, increased 0.7%, which was the largest increase since August 2011
Excluding food and energy, core CPI increased 0.1% for a second consecutive month in July, which is what the consensus expected
Housing starts increased 15.7% in July to 1.093 million from an upwardly revised 945,000 (from 893,000) in June, while the Briefing.com consensus expected an increase to 964,000
The big news out of the housing data was an 8.3% increase (to 656,0000) in single-family construction after declines were observed in May and June
Building permits rose to a seasonally adjusted annualized rate of 1.052 million in July versus a revised 973K for June, while the Briefing.com consensus expected an increase to 1.001 million

12:30 pm: [BRIEFING.COM] Stocks continue hovering near their highs with the S&P 500 within a point of its session high. Furthermore, the benchmark index has been confined to a three-point range since 10:45 ET.

Three sectors-consumer discretionary (+0.9%), energy (+0.9%), and utilities (+1.0%)-have been jockeying for position since the start and the countercyclical utilities sector is the top performer at this time. However, the remaining three countercyclical groups trail the broader market.

Elsewhere, Treasuries remain unchanged after erasing their morning losses. The 10-yr yield sits at 2.40%.

12:00 pm: [BRIEFING.COM] Not much change in the major averages as they remain near their session highs. Although the telecom services sector (-0.7%) is the only laggard at this time, top-weighted groups are mixed when compared to the broader market.

Out of the four largest sectors, technology (+0.4%) and consumer discretionary (+0.8%) trade ahead of the broader market, while financials (+0.2%) and health care (+0.1%) have been a bit of a drag on the market.

So far, the relative weakness of the two influential sectors has not been an issue for participants. The CBOE Volatility Index (VIX 11.97, -0.35) is lower by 2.8% as participants reduce their hedges.

11:25 am: [BRIEFING.COM] Equity indices continue holding their recent levels with the S&P 500 (+0.4%) trading near its session high. Meanwhile, the Nasdaq Composite (+0.2%) underperforms amid relative weakness in biotech stocks.

The iShares Nasdaq Biotechnology ETF (IBB 265.37, -0.84) is lower by 0.3% as participants take some profits after the biotech ETF jumped nearly 6.0% during the past week. Despite the losses in the biotech space, the health care sector is higher by 0.2%. For its part, the Nasdaq has been kept in the green by the relative strength among chipmakers. The PHLX Semiconductor Index trades up 0.6% with all but four components showing gains.

11:00 am: [BRIEFING.COM] The S&P 500 has added to its opening gain and now trades higher by 0.4%. Cyclical sector continue faring better than their defensively-oriented counterparts, but the consumer discretionary space, which led in the early going, has slipped from the top. At this juncture, the sector is higher by 0.7%, while energy (+0.8%) and utilities (+0.7%) have claimed the top two spots.

Unlike the utilities sector, the remaining three countercyclical groups trail the broader market. The telecom services space (-0.7%) is the lone decliner, while consumer staples (+0.2%) and health care (+0.1%) hover just above their flat lines.

Elsewhere, Treasuries have spent the past 90 minutes in a steady retreat off their highs. The 10-yr note has erased its gain, bringing the benchmark yield back to 2.39%.

10:35 am: [BRIEFING.COM]

Commodities are lower this morning as the dollar index sits at its session high
Crude oil, gold, silver and copper futures all sold off this morning and hit new session lows in recent trade
All four remains near session lows in current trade
Sept crude is -0.6% at $95.82/barrel, Dec gold -0.2% at $1297.30/oz, Sept silver -1% at $19.43/oz and Sept copper -0.4% at $3.10/lb
Natural gas rallied this morning and remains near its HoD. Sept NG is now +2.1% at $3.87/MMBtu

9:55 am: [BRIEFING.COM] The S&P 500 (+0.2%) remains near its opening high, while the leading sector-consumer discretionary (+0.5%)-now shares the lead with the energy sector (+0.5%). Meanwhile, three of the remaining four cyclical sectors trade ahead of the broader market, while industrials (+0.2%) lag.

Defense contractors have limited the industrial sector to just a slim gain as General Electric (GE 26.08, +0.01) and Lockheed Martin (LMT 171.50, -0.02) trade little changed, while the PHLX Defense Index trades up 0.2%.

However, transport trade a bit ahead of the market with the Dow Jones Transportation Average up 0.3%.

9:40 am: [BRIEFING.COM] As expected, equity indices climbed out of the gate. The S&P 500 trades higher by 0.2% with eight sectors showing gains.

Of the seven advancers, the consumer discretionary sector (+0.6%) has claimed the lead thanks to strength among homebuilders following today's better than expected Housing Starts data. Furthermore, the sector has benefitted from upbeat earnings from Home Depot (HD 86.90, +3.31), which trades higher by 4.0%. As for homebuilders, the iShares Dow Jones US Home Construction ETF (ITB 23.99, +0.56) is higher by 2.4%.

On the downside, consumer staples (-0.1%) and telecom services (-0.3%) hold modest losses.

9:13 am: [BRIEFING.COM] S&P futures vs fair value: +4.60. Nasdaq futures vs fair value: +7.20. The stock market is on track for an upbeat start to the session as futures on the S&P 500 trade nearly five points above fair value. Index futures held gains throughout the night and climbed to new highs within the last 45 minutes in reaction to a better than expected Housing Starts/Building Permits report.

Specifically, housing starts increased 15.7% in July to 1.093 million from an upwardly revised 945,000 (from 893,000) in June, while the Briefing.com consensus expected an increase to 964,000. The big news out of the housing data was an 8.3% increase in single-family construction after the levels declined in both May and June after reaching roughly 650,000 in April. Since single family construction trends are typically stable, the two month decline suggested that housing construction may have peaked. While it is possible that the July gain could be a one-off rebound, it gives hope that the overall housing outlook may be on stronger footing then once thought.

Separately, total CPI increased 0.1% (Briefing.com consensus +0.1%) in July while core CPI, which excludes food and energy, also increased 0.1% (Briefing.com consensus +0.1%).

On the earnings front, a handful of retailers have reported since yesterday's closing bell with most of the results coming in ahead of expectations. Most notably, Dow component Home Depot (HD 86.60, +3.01) is higher by 3.6% in pre-market action after beating earnings estimates and boosting its guidance for the year.

Treasuries hold gains with the 10-yr yield down three basis points at 2.36%.

9:00 am: [BRIEFING.COM] S&P futures vs fair value: +4.30. Nasdaq futures vs fair value: +7.00. The S&P 500 futures trade four points above fair value.

It was a sea of green across Asia as all of the major bourses finished in positive territory. The latest Reserve Bank of Australia minutes warned of 'significant' uncertainty ahead, but maintained that rates are likely to remain stable.

In economic data:
South Korea's PPI ticked up 0.1% month-over-month (previous 0.0%), while the year-over-year reading increased 0.2%, as expected (prior 0.1%)
New Zealand's Inflation Expectations slipped to 2.2% from 2.4% quarter-over-quarter. Separately, Input PPI fell 1.0% quarter-over-quarter (expected 0.7%; previous 1.0%) and Output PPI declined 0.5% (consensus 0.8%; prior 0.9%)

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Japan's Nikkei rose 0.8%, gaining for a seventh consecutive day. Heavyweight Softbank provided support, adding 2.1%.
Hong Kong's Hang Seng added 0.7%, climbing to its best levels since May 2008. Real estate developer China Resources Land jumped 7.6% following reports the company agreed to buy property in Shenzhen. Terms were not disclosed.
China's Shanghai Composite rose 0.3%, finishing at an eight and a half-month high. Media names like People.cn and Shanghai Xinhua Media finished limit up, 10%, on news Beijing is looking to reform the sector.

Major European indices trade higher with Germany's DAX (+1.0%) leading for the second day in a row.

Economic data was limited:
Eurozone Current Account surplus narrowed to EUR13.10 billion from EUR19.80 billion (expected surplus of EUR19.00 billion)
Great Britain's CPI fell 0.3% month-over-month (expected -0.2%; prior 0.2%), while the year-over-year reading increased 1.6% (consensus 1.8%; previous 1.9%). Separately, Input PPI fell 1.6% month-over-month (expected -1.1%; prior -0.9%) and Output PPI slipped 0.1% month-over-month (consensus 0.1%; previous -0.1%)
CPI spent its fifth consecutive month below the Bank of England's 2.00% target as clothing retailers used discounts to lure in shoppers

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In France, the CAC is higher by 0.4%. Automotive-related stocks outperform with Renault and Valeo up 0.9% and 3.4%, respectively. Electricite de France is the weakest performer, down 1.1%.
Great Britain's FTSE trades up 0.5% with financials showing strength. Aberdeen Asset Management has added 1.5% and Royal Bank of Scotland is higher by 2.7%. BHP Billiton underperforms with a loss of 4.6%. Earlier, the miner said it will spin off its nickel, aluminum, and other assets.
Germany's DAX has added 1.0% with help from exporters. Volkswagen and Daimler hold respective gains of 1.8% and 0.7%. On the downside, Deutsche Telekom is lower by 0.9%.
In Italy, the MIB is lower by 0.4%. Financials lag with Banco Popolare down 1.2% and UBI Banca lower by 1.1%.

8:33 am: [BRIEFING.COM] S&P futures vs fair value: +5.20. Nasdaq futures vs fair value: +8.20. The S&P 500 futures trade five points above fair value.

Total CPI increased 0.1% (Briefing.com consensus +0.1%) in July while core CPI, which excludes food and energy, also increased 0.1% (Briefing.com consensus +0.1%). On a year-over-year basis, total CPI is up 2.0% and core CPI is up 1.9%.

Separately, Housing Starts rose to a seasonally adjusted annualized rate of 1.093 million units in July. That was up from a revised 945K units in June. The Briefing.com consensus expected starts to increase to 964K units.

Building permits rose to a seasonally adjusted annualized rate of 1.052 million in July versus a revised 973K for June. The Briefing.com consensus expected permits to be 1.001 million.

7:59 am: [BRIEFING.COM] S&P futures vs fair value: +3.00. Nasdaq futures vs fair value: +6.00. U.S. equity futures hold modest gains amid upbeat action overseas. The S&P 500 futures hover three points above fair value with the benchmark index looking to continue its advance after starting the week with a solid gain of 0.9%. Although the Q2 earnings season has all but ended, a few retail earnings remain on the schedule for this week and the next. The handful of names that reported since yesterday's closing bell have been mostly better than expected.

On the economic front, July CPI (Briefing.com consensus 0.1%), July Housing Starts (consensus 964K), and Building Permits (consensus 1.001 million) will all be reported at 8:30 ET.

Treasuries hover near their highs with the benchmark 10-yr yield down almost three basis points at 2.37%.

In notable U.S. corporate news:

Aeropostale (ARO 3.44, +0.20): +6.2% after announcing Julian Geiger will rejoin the company as CEO and boosting its guidance ahead of analyst expectations
Dick's Sporting Goods (DKS 46.20, +2.69): +6.2% in reaction to its one-cent beat and cautious Q3 guidance.
Elizabeth Arden (RDEN 18.15, -1.46): -7.5% after missing earnings and revenue estimates. The company announced Rhone Capital purchased $50 million of its preferred stock.
Home Depot (HD 86.40, +2.81): +3.4% following its earnings beat and improved fiscal-year 2015 guidance.
Urban Outfitters (URBN 37.32, +0.40): +1.1% after reporting a one-cent beat.

Reviewing overnight developments:

Asian markets ended on a higher note. China's Shanghai Composite +0.3%, Hong Kong's Hang Seng +0.7%, and Japan's Nikkei +0.8%
In economic data:
South Korea's PPI ticked up 0.1% month-over-month (previous 0.0%), while the year-over-year reading increased 0.2%, as expected (prior 0.1%)
New Zealand's Inflation Expectations slipped to 2.2% from 2.4% quarter-over-quarter. Separately, Input PPI fell 1.0% quarter-over-quarter (expected 0.7%; previous 1.0%) and Output PPI declined 0.5% (consensus 0.8%; prior 0.9%)
In news:
New Zealand Treasury cut its fiscal-year 2014/2015 GDP target to 3.8% from 4.0%.
Press reports in China suggested that all smaller cities would remove home purchasing limits by the end of the year.

Major European indices trade higher. France's CAC +0.5%, Great Britain's FTSE +0.5%, and Germany's DAX +0.9%. Elsewhere, Spain's IBEX +0.3% and Italy's MIB +0.1% o
Economic data was limited:
Eurozone Current Account surplus narrowed to EUR13.10 billion from EUR19.80 billion (expected surplus of EUR19.00 billion)
Great Britain's CPI fell 0.3% month-over-month (expected -0.2%; prior 0.2%), while the year-over-year reading increased 1.6% (consensus 1.8%; previous 1.9%). Separately, Input PPI fell 1.6% month-over-month (expected -1.1%; prior -0.9%) and Output PPI slipped 0.1% month-over-month (consensus 0.1%; previous -0.1%)
Among news of note:
Great Britain's CPI spent its fifth consecutive month below the Bank of England's 2.00% target as clothing retailers used discounts to lure in shoppers.

6:24 am: [BRIEFING.COM] S&P futures vs fair value: +3.00. Nasdaq futures vs fair value: +4.00.

6:24 am: [BRIEFING.COM] Nikkei...15449.79...+127.20...+0.80%. Hang Seng...25122.95...+167.50...+0.70%.

6:24 am: [BRIEFING.COM] FTSE...6770.58...+29.50...+0.40%. DAX...9334.06...+88.70...+0.90%.

S&P 500 Approaches Record on Signs Fed to Keep Rates Low

By Oliver Renick Aug 19, 2014 5:04 PM ET

U.S. stocks are closing in on record highs, with the Standard & Poor’s 500 Index rebounding at the fastest pace since February, as concerns over global crises give way to optimism that central banks will continue to accommodate a recovering economy.

More than $710 billion has been restored to American equities in the past month and the S&P 500 is within 0.3 percent of an all-time high amid bets that the Federal Reserve will leave interest rates near zero for longer even as economic growth shows signs of accelerating. The U.S. equity benchmark added 0.5 percent to 1,981.60 at 4 p.m. in New York today.

Stocks rallied today as retailers led gains on better-than-projected earnings while data showed inflation pressures remain limited and housing starts jumped. The Nasdaq Composite added 0.4 percent, its fifth straight day of increases, to the highest level since 2000. The Dow Jones Industrial Average rose 80.85 points, or 0.5 percent, to 16,919.59, still 219 points from its record. Apple (AAPL) Inc. jumped 1.4 percent to close at an all-time high.

“The market has come back strong this week in a repeat of what we’ve seen throughout the bull run, the ability to motor through geopolitical events,” Tim Rudderow, president and chief investment officer at Newtown, Pennsylvania-based Mount Lucas Management Corp., said via phone. He helps oversee $1.5 billion. “Today’s numbers were solid but not spectacular, and that’s perfect in an environment where really robust economic growth would not be positive.”
Photographer: Andrew Harrer/Bloomberg

Federal Reserve Chair Janet Yellen will be among the speakers at the annual Jackson... Read More

The S&P 500 has rebounded 3.8 percent since a three-month low on Aug. 7, the best eight-day return since the period ended Feb. 18. The gauge tumbled as much as 3.9 percent from its all-time high on July 24 amid growing concern over global conflicts from Ukraine to Gaza and Iraq.
Nasdaq Rallies

The Nasdaq Composite (CCMP) advanced 0.4 percent today after rallying 1 percent to its highest level since March 2000 yesterday. The Dow Jones Internet Composite Index is at the highest since March after tumbling nearly 20 percent after investors sold off the best performers during the five-year bull market amid concern valuations had become too expensive.

The Nasdaq is 13 percent above its February low. The last time the measure closed this high, on March 31, 2000, it went on to sink 46 percent through the end of that year as the dot-com bubble burst.

The S&P 500 is trading at 17.8 times the reported earnings of its companies, near the highest level since 2010. The gauge is back above its average price for the past 50 days, after having plunged below it on July 31. The Dow closed today above its 50-day average for the first time this month.
Photographer: Daniel Acker/Bloomberg

Home Depot Inc. gained 3.8 percent after earnings topped analysts’ estimates and the... Read More
‘Higher Range’

“Valuations are getting a little on the higher range compared on a short-term basis,” Diane Garnick, chief executive officer of New York-based Clear Alternatives LLC, said in a phone interview. “People tend to compare to only what they remember, so as a result, people are absolutely sensitive to higher valuations. If we had this level in 1998 nobody would notice.”

Stifel Nicolaus & Co.’s Barry B. Bannister increased his year-end forecast for the S&P 500 to 2,300, giving him the highest projection among 19 strategists tracked by Bloomberg. Previously he was tied for the lowest at 1,850. Bannister’s new estimate implies a 16 percent rally by the end of December.

Foreign investors may increase purchases of U.S. stocks because of doubts about their own economies and central-bank policies, according to the report from Stifel.

Other strategists are predicting weaker returns. Jonathan Glionna of Barclays Plc said overseas markets are generating too little demand for the S&P 500 to end the year any higher than current levels. Gains approaching 25 percent annually will weaken to 3 percent over the next decade as profit expansion reverts to its historic rate since 1929, said Doug Ramsey, the chief investment officer at Leuthold Group Llc.
Fed Stimulus

Three rounds of Fed stimulus and better-than-estimated corporate earnings have sent the S&P 500 higher by as much as 194 percent from its bear-market low on March 2009. The gauge has not had a decline of 10 percent in almost three years.

Stocks fell earlier this month after data showing strong economic growth and hiring stoked speculation the Fed may raise rates sooner than investors had been anticipating. The S&P 500 rallied 1.2 percent last week as data on retail sales and jobless claims showed an uneven economic recovery, fueling bets the central bank will leave rates near record lows for longer.
Jackson Hole

The Fed will release the minutes of its last gathering tomorrow, before central bankers meet in Jackson Hole, Wyoming. Fed Chair Janet Yellen and European Central Bank President Mario Draghi will be among the speakers at the annual symposium on monetary policy.

A report today showed the cost of living in the U.S. climbed in July at the slowest pace in five months, indicating price pressures remain limited even as the economy picks up.

Inflation continues to run below the Fed’s target as sluggish global demand limits companies’ ability to charge customers more. Restrained increases give the central bank’s policy makers room to keep interest rates low well after the projected end of their bond-buying program in October.

“We keep hearing about Federal Reserve liquidity and how it’s going to put inflation through the roof, but inflation has been right in line,” Matt Maley, the Newton, Massachusetts-based equity strategist at Miller Tabak & Co. LLC, said via phone.

Housing starts surged in July to the highest level in eight months, underscoring the recent pickup in builder optimism as the U.S. residential real-estate market gains some traction.
Homebuilders

An S&P index of homebuilders gained 2.6 percent, giving it the biggest two-day rally since May after jumping 2.1 percent yesterday on a report showing industry confidence rose in August. D.R. Horton Inc. advanced 3.3 percent and KB Home increased 2.7 percent.

“With tame inflation data and the housing market benefiting from the drop in mortgage rates, it’s painting a pretty sanguine picture,” Russ Koesterich, chief investment strategist at New York-based BlackRock Inc., said by phone. “Housing starts were encouraging, and the housing market is one area the Fed has been concerned about being somewhat fragile.”

The Chicago Board Options Exchange Volatility Index, the gauge of S&P options prices known as the VIX (VIX), declined 0.9 percent to 12.21. The gauge is down 11 percent for the year.

Retailers had the biggest advance among 24 groups in the S&P 500, climbing 1.9 percent.
Retail Earnings

Home Depot Inc. advanced 5.6 percent to a record $88.23 after earnings topped analysts’ estimates and the company raised its forecast. Chief Executive Officer Frank Blake has focused Home Depot on boosting sales from existing locations and investing in e-commerce, rather than opening new stores.

TJX Cos. increased 8.7 percent to $58.56. The discount apparel company that owns T.J. Maxx and Marshalls raised its profit forecast after comparable-store sales grew faster than estimated. Dick’s Sporting Good Inc. added 1.6 percent to $44.21. The company beat second-quarter earnings projections, though it said promotions and advertising will weigh on profit the rest of the year.
Stagnant Sales

The results, together with the rosy outlook from Home Depot, fueled investor optimism after a series of disappointing retail earnings reports. Wal-Mart Stores Inc., the world’s largest retailer, posted stagnant U.S. same-store sales last week, marking the sixth straight period of no growth. That followed a report from the Commerce Department that retail sales were little changed in July, hampered by a lack of wage gains.

Aeropostale Inc. (ARO) rose 19 percent, the most since 2002, to $3.87 after the struggling kids and teen apparel chain said Julian Geiger has returned as chief executive officer.

Apple rose 1.4 percent to $100.53. The stock capped a fifth day of gains as investors look ahead to new products such as bigger-screen iPhones and a wristwatch-like device that may jump-start revenue growth. Today’s close topped the split-adjusted record of $100.30 reached Sept. 19, 2012, just before the iPhone 5 went on sale.

Elizabeth Arden Inc. plunged 23 percent to $15.05, the lowest level since 2010, after saying a decline in sales of celebrity fragrances was steeper than anticipated in the fourth quarter. Net sales dropped 28 percent from the prior year as Justin Bieber and Taylor Swift fragrances slumped.

To contact the reporter on this story: Oliver Renick in New York at orenick2@bloomberg.net

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

http://www.bloomberg.com/news/2014-08-1 ... ounds.html

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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)
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