TheStrategyLab.com Price Action Trading Support Forum

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)


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

Price Action Trade Performance for Today: Emini TF ($TF_F) futures @ $750.00 dollars or +7.50 points, Emini ES ($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 @ $750.00 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=1874


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.

##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

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

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).

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.


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

Yahoo! Finance

Weekly Wrap from Briefing.com

Dow +18.88 at 17098.45, Nasdaq +22.58 at 4580.27, S&P +6.63 at 2003.37

Equity indices closed out the month of August on a modestly higher note. The Russell 2000 (+0.6%) and Nasdaq Composite (+0.5%) finished ahead of the S&P 500 (+0.3%), which extended its August gain to 3.8%. Blue chips lagged with the Dow Jones Industrial Average (+0.1%) spending the bulk of the session in the red.

The final week of August represented one of the quietest stretches for the stock market so far this year. The first four sessions of the week produced the four lowest volume days of the year (4-day average 487.3 million), but today's final tally of 604 million was a little closer to the 200-day average of 679 million.

The lack of activity during the week was a function of some participants being away on vacation, while many others opted to stick to the sidelines ahead of a three-day weekend in the U.S. that could feature new developments on the geopolitical front. However, the Friday tally benefited from month-end flows.

All ten sectors registered gains with heavily-weighted technology (+0.5%), health care (+0.4%), and financials (+0.5%) doing the bulk of the heavy lifting. The three sectors outperformed throughout the session, while the energy sector (+0.5%) joined the leaders during the late afternoon.

The tech sector rallied out of the gate with chipmakers setting the pace after Avago Technologies (AVGO 82.09, +5.73) delivered a solid quarterly report. Shares of AVGO soared 7.5%, while the PHLX Semiconductor Index gained 0.7% to end the month higher by 6.2%. The month-long strength contributed to the outperformance of the Nasdaq, which added 4.8% in August.

Furthermore, the tech-heavy index received another measure of support from biotechnology. The iShares Nasdaq Biotechnology ETF (IBB 276.55, +2.43) gained 0.9% today to bring its August advance to 10.3%. Fittingly, the health care sector ended the month ahead of the other nine groups with a gain of 4.5%.

On the flip side, consumer discretionary (unch), consumer staples (+0.1%), and industrials (unch) lagged throughout the session. The industrial sector was the only group that was unable to finish the week in the green. The cyclical sector shed 0.3% for the week, but rallied 3.9% in August.

Treasuries held slim gains for the bulk of the session, but slid to lows into the close. The 10-yr yield climbed one basis point to 2.35%.

Economic data included personal income/spending data, Chicago PMI, and the Michigan Sentiment survey:

Personal income increased 0.2% in July following an upwardly revised 0.5% (from 0.4%) gain in June, while the Briefing.com consensus expected an increase of 0.3%
The increase in July income was in-line with the reported 0.2% increase in aggregate earnings from the previously released employment data
Personal spending fell 0.1% in July after increasing 0.4% in June, while the consensus expected an increase of 0.1%
Even though household debt ratios have normalized to pre-recession levels and consumer confidence levels have fully recovered, consumers are continuing to delay consumption growth in order to increase their savings
Core PCE prices increased 0.1% and are up 1.5% year-over-year, which is still well below the FOMC target rate
The Chicago PMI for August rose to 55.6 from 52.6, while the Briefing.com consensus expected an increase to 54.8
The University of Michigan Consumer Sentiment report for August was revised up to 82.5 from 79.2 in the final reading, while the Briefing.com consensus expected a revision to 80.0

Bond and equity markets will be closed on Monday for Labor Day. On Tuesday, the ISM Index for August and July Construction Spending will both be released at 10:00 ET.

Week in Review: S&P 500 Hits 2,000

The stock market began the last week of August on an upbeat note with the S&P 500 making its first appearance above the 2,000 level. The benchmark index added 0.5% with all ten sectors ending in the green. Equity indices rallied out of the gate, but the opening push ran out of steam after the S&P 500 notched a session high at 2,001.95. The benchmark index took a couple steps back after reaching that level and held its ground throughout the afternoon. M&A activity in the health care sector (+0.7%) contributed to the opening rally after Swiss drug maker Roche (RHHBY) agreed to acquire InterMune (ITMN) for $74.00 per share, representing a 38.0% premium to Friday's closing price.

Equities ended the Tuesday session on an upbeat note with small-cap stocks pacing the advance. The Russell 2000 jumped 0.9%, while the S&P 500 posted a slim gain of 0.1% with seven sectors ending higher. In some ways, the session resembled Monday's affair as the key indices climbed out of the gate, reached their highs during the first half of action, and spent the remainder of the session in a slow retreat from their best levels of the day. Trading volume was light once again.

The major averages ended the midweek session on a flat note after spending the day inside narrow ranges. The S&P 500 hovered near the 2,000 mark for the majority of the trading day, but slumped to new lows during the last hour of action. The index then returned to its flat line, where it settled for the day. For the third day in a row, participation left a lot to be desired with just 487 million shares changing hands at the NYSE.

The stock market ended the Thursday session on a modestly lower note, but a late-morning rebound lifted the indices off their lows. The S&P 500 shed 0.2% with seven sectors ending in the red. European equities and U.S. futures slumped around 6:00 ET after Ukraine's President Petro Poroshenko was quoted as saying Russian forces have invaded an area southeast of Donetsk. The news pressured the markets, but a brief uptick took place after a correction to reports indicated Ukraine's President did not use the word "invade," but rather said Russian troops "entered" Ukraine. The change in wording did not change the fact that Russian troops are reportedly on Ukraine's soil, which caused a flight to safety. As a result, Germany's 10-yr Bunds rallied, dropping the yield to a new record low of 0.87% before a slight rebound to 0.89%. Gold futures were also in demand with the metal climbing 0.7% to $1291.70/ozt. Once again, participation in today's affair was well below average with just 479 million shares changing hands at the NYSE floor, which undercut Monday's total for the lowest tally of the year.

Euro Slides for Seventh Week as Inflation Slows Before ECB Meets

By Rachel Evans Aug 29, 2014 5:08 PM ET

The euro slid for a seventh-week, the longest stretch in more than a decade, as a report showed gains in consumer prices in the region slowed this month.

The 18-nation currency fell to an almost one-year low versus the dollar as Goldman Sachs Group Inc. cut its outlook for the euro. European Central Bank officials meet Sept. 4 after ECB President Mario Draghi said Aug. 22 that inflation expectations in the region have fallen, fueling bets officials will add to monetary stimulus. Canada’s dollar touched a one-month high after a report showed its economy expanded at the fastest pace in three years. Russia’s ruble weakened to a record.

“Divergence is the way to look at it,” said Richard Cochinos, the head of Americas Group of 10 currency strategy at Citigroup Inc. in New York. “You are getting some very aggressive and what looks to be some very strong data out of the U.S. next week and that ultimately is really going to help differentiate the dollar, certainly against euro and yen where the central banks are expected to be neutral to dovish.”

The euro fell 0.4 percent to $1.3132 as of 5 p.m. in New York, down 0.8 percent this week in the longest stretch of weekly declines since December 1999. It reached the lowest level since Sept. 6, 2013.

Market Prices

The dollar gained 0.4 percent to 104.09 yen, the biggest increase since Aug. 20. Japan’s currency was little changed at 136.69 per euro. U.S. markets will be closed on Sept. 1 for Labor Day.

Brazil’s real has led gainers against the dollar this year, adding 5.6 percent, followed by the Australian dollar with a 4.7 percent advance. Sweden’s krona fell 7.9 percent, the biggest loser. The Norwegian krone has gained the most this month, rising 1.4 percent, while the euro has lost most ground, falling 1.9 percent.

Hedge funds and other large speculators increased bets on declines in the euro against the dollar to the most since July 2012. The difference in the number of wagers on a decline compared with those on a gain -- so-called net shorts -- was 150,657 on Aug. 26, compared with 138,825 on Aug. 12, according to data from the Washington-based Commodity Futures Trading Commission.

The Canadian currency appreciated as gross domestic product rose at a 3.1 percent annualized pace from April to June, Statistics Canada said in Ottawa, faster than the 2.7 percent economists forecast in a Bloomberg survey.

The Canadian dollar fell to C$1.0878 per dollar, after reaching the strongest level since July 29.

Ruble Weakens

The ruble weakened to a record, the biggest loser of the day versus the dollar, amid concern Russia may face more sanctions as intensifies in Ukraine.

An escalation of the conflict prompted calls by the European Union to threaten further penalties. U.S. President Barack Obama said yesterday Russia faces “more costs and consequences” for violating the sovereignty of its neighbor. Ukrainian President Petro Poroshenko called the offensive a “de facto” incursion by Russia.

The ruble depreciated 1 percent to 37.1235 against the dollar, after weakening to 37.2170.

Goldman Sachs revised its forecast for the euro, saying the recent slump against the dollar is the beginning of a long-term trend that will result in parity by the end of 2017. The bank cut its three-month estimate to $1.29 from $1.35 and its six-month forecast to $1.25 from $1.34, Robin Brooks, the New York-based chief currency strategist, wrote in a research note today.

Inflation Watch

Euro-area consumer prices rose 0.3 percent in August from a year earlier after a 0.4 percent increase in July, the European Union’s statistics office in Luxembourg said today. That’s the weakest rate since October 2009 and in line with the median forecast in a Bloomberg News survey. Unemployment (UMRTEMU) remained at 11.5 percent in July, Eurostat said in a separate report.

The ECB seeks to keep inflation just below 2 percent.

“Global activity is not sufficiently robust to encourage inflationary pressures across either the globe or specifically the euro zone,” Andrew Wilkinson, chief market analyst at Interactive Brokers LLC, said in a phone interview from Greenwich, Connecticut. “The euro’s fate is tied directly to the prospect of quantitative easing from the ECB.”

The U.S. currency gained versus the yen even as a report showed weaker than forecast personal spending and income in the world’s largest economy. Spending contracted 0.1 percent in July, missing the 0.2 percent gain predicted by analysts.

The U.S. economy however expanded more than initially estimated, data published yesterday showed. A report next week is forecast to show employers added more than 200,000 jobs for a seventh straight month.

The dollar has gained 1.2 percent in the past month, according to Bloomberg Correlation-Weighted Indexes. The yen has slipped 0.9 percent while the euro has dropped 1.1 percent.

To contact the reporter on this story: Rachel Evans in New York at revans43@bloomberg.net

To contact the editors responsible for this story: Dave Liedtka at dliedtka@bloomberg.net Paul Cox, Greg Storey

Canadian Dollar Touches Highest in a Month on Growth

By Andrea Wong and John Detrixhe Aug 29, 2014 5:09 PM ET

The Canadian dollar gained to the strongest level in a month versus its U.S. peer after economic growth rebounded to the fastest in almost three years in the second quarter, led by exports and spending on big-ticket items.

The currency advanced on the week as Canada’s growth has picked up along with the American economy, which expanded at a 4.2 percent annualized second-quarter pace, the Commerce Department said yesterday from Washington. Bank of Canada Governor Stephen Poloz has said it will take another two years to use up slack that built up in the world’s 11th largest economy. Policy makers meet Sept. 3.

“Even though the headline data came in stronger than the market was expecting, it wasn’t that much stronger that it’s going to cause the Canadian dollar to appreciate too much,” David Bradley, director of foreign exchange trading at Scotia Capital Inc., a unit of Bank of Nova Scotia, said by phone from Toronto. “We had a little bit of a move down to the lows we’ve seen recently” for the U.S. dollar, he said.

The loonie, nicknamed for the image of the aquatic bird on the C$1 coin, rose 0.6 percent this week to C$1.0878 per U.S. dollar at 5 p.m. in Toronto after climbing to C$1.0811, the strongest since July 29. One loonie buys 91.93 U.S. cents.

The currency’s weekly gain gave it a monthly advance of 0.3 percent. It’s still dropped 1.9 percent in the quarter quarter and is down 2.3 percent year-to-date.

The yield on Canada’s benchmark 10-year bond was 2 percent after touching 1.979 percent yesterday, the lowest since May 2013. It’s down from a 2014 high of 2.80 percent on Jan. 2.

GDP Growth

Canada’s gross domestic product rose at a 3.1 percent annualized pace from April to June, Statistics Canada said today in Ottawa, faster than the 2.7 percent economists forecast in a Bloomberg survey. Exports surged 17.8 percent on gains in automobiles, farm and forest products, and household expenditures gained 3.8 percent.

Poloz said Aug. 25 that persistent slack in the country’s labor market and a tendency toward part-time job creation means the central bank has the scope to keep its main interest rate at 1 percent, near historic lows, even if employment picks up.

The Canadian data followed U.S. economic-growth figures that were revised up yesterday from an initial estimate of 4 percent, and following a first-quarter contraction. A report next week is forecast to show employers added more than 200,000 jobs for a seventh straight month.

“North America in general benefits from a U.S. economic recovery,” Omer Esiner, chief market analyst at currency brokerage Commonwealth Foreign Exchange Inc. in Washington, said in a phone interview. “But it’s still a buy-on-dip situation for USD-CAD. I can see the pair going up to C$1.15.” It last touched C$1.15 in July 2009.

To contact the reporters on this story: Andrea Wong in New York at awong268@bloomberg.net; John Detrixhe in New York at jdetrixhe1@bloomberg.net

To contact the editors responsible for this story: Dave Liedtka at dliedtka@bloomberg.net Kenneth Pringle, Greg Storey

German Bonds Advance for Eighth Month in Longest Run Since 2005

By Lukanyo Mnyanda Aug 30, 2014 2:00 AM ET

German 10-year bonds advanced this week, completing the longest run of monthly gains since January 2005, after European Central Bank President Mario Draghi fueled bets that officials will expand stimulus to revive the economy.

Gains this week pushed yields from Ireland to Italy to record lows as reports showed euro-area economic confidence fell and inflation slowed to the least since 2009. Draghi said on Aug. 22 that bets on price increases “exhibited significant declines,” and officials are “ready to adjust our policy stance further,” fueling speculation they may embark on a policy of bond purchases known as quantitative easing. ECB officials next meet on Sept. 4.

“The key event was Draghi’s unambiguously dovish speech,” said Nick Stamenkovic, a strategist at broker RIA Capital Markets Ltd. in Edinburgh. “Investors have priced in a lot of good news ahead of the ECB and the risk is that they might disappoint. But even if they don’t announce any measures, Draghi almost certainly is going to open the door to further QE” which means “any weakness is going to be short lived,” he said.

German 10-year yields dropped nine basis points, or 0.09 percentage point, this week to 0.89 percent at 5 p.m. London time yesterday, after falling to a record 0.866 percent on Aug. 28. The 1.5 percent bund due in May 2024 gained 0.865, or 8.65 euros per 1,000-euro ($1,315) face amount, to 105.64. The yield fell 27 basis points this month, the biggest decline since January.

Economic Data

Consumer prices in the euro area rose 0.3 percent in August from a year earlier after a 0.4 percent increase in July, the European Union’s statistics office in Luxembourg said yesterday. That was the weakest since October 2009. An index of executive and consumer sentiment fell to 100.6 this month from 102.1 in July, the European Commission in Brussels said a day earlier.

German one-, two- and three-year securities yielded less than zero this week, meaning investors holding the debt until it matures will receive less back than they paid to buy it. Belgian two-year rates went negative for the first time.

The region’s bonds extended gains into an eighth month after Draghi’s speech at the Federal Reserve Bank of Kansas City’s annual economic symposium at Jackson Hole, Wyoming. He said officials will “use all the available instruments needed to ensure price stability over the medium term.”

Italian 10-year yields slid 14 basis points to 2.44 percent after reaching a record-low 2.343 percent on Aug. 27. They declined 26 basis points in August. The rate on similar-maturity Spanish bonds fell 15 basis points to 2.23 percent, down 28 basis points in the month. Ireland’s 10-year rate dropped 11 basis points this week to 1.78 percent, after touching 1.741 percent on Aug. 27, also an all-time low.

Euro-area government securities returned 1.9 percent this month through Aug. 28, set for an eighth successive advance, Bloomberg World Bond Indexes show. Spain’s have earned 2.3 percent, with Italy’s gaining 1.6 percent and Germany’s 1.8 percent.

To contact the reporter on this story: Lukanyo Mnyanda in Edinburgh at lmnyanda@bloomberg.net

To contact the editors responsible for this story: Paul Dobson at pdobson2@bloomberg.net Mark McCord, Todd White

Special thanks to Bloomberg, CNNMoney, Reuters and Yahoo! Finance for their market summaries.

Best Regards,
M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
@ http://twitter.com/wrbtrader @ http://stocktwits.com/wrbtrader

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