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 Post subject: September 17th Wednesday Trade Results - Profit $5310.00
PostPosted: Wed Sep 17, 2014 8:20 pm 
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Joined: Sat Jan 10, 2009 1:06 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)
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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 @ $5,310.00 dollars or +53.10 points, Emini ES ($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 @ $5,310.00 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=134&t=1889

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=246&t=2502

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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

4:10 pm: [BRIEFING.COM] The major averages ended the midweek session with slim gains after showing some intraday volatility in reaction to the release of the latest policy directive from the Federal Open Market Committee. The S&P 500 added 0.1%, while the relative strength among small caps sent the Russell 2000 higher by 0.3%.

Equities spent the first half of the session near their flat lines as participants stuck to the sidelines ahead of the FOMC statement, which conveyed no changes to the Fed's current policy course. The indices surged after the statement crossed the wires, but returned near their flat lines by the close.

As expected, the Fed reduced the monthly pace of its asset purchases by $10 billion to $15 billion, setting expectations for the program to be wound down at the next meeting. Furthermore, the Fed maintained the "considerable time" language in its forward guidance, suggesting the first rate hike remains somewhat distant. On that note, the economic projections that were also released indicated the Fed sees the fed funds rate at 1.375% at the end of 2015.

The policy statement weighed on Treasuries (10-yr yield +3 bps to 2.62%), while giving a boost to the greenback. The Dollar Index (+0.6%) climbed to its best level since last June at the expense of other major currencies. Notably, the dollar/yen pair soared from the 107.15 area to 108.30.

Seven of ten sectors posted gains with materials (+0.6%) ending in the lead. The growth-sensitive sector was underpinned by steelmakers after U.S. Steel (X 45.61, +4.20) boosted its guidance. The Market Vectors Steel ETF (SLX 49.20, +0.43) advanced 0.9%.

Meanwhile, the other commodity-linked sector-energy (-0.5%)-ended at the bottom of the leaderboard following its recent outperformance. The sector narrowed its week-to-date gain to 1.4% and was pressured by a 0.6% decline in the price of crude oil ($94.33/bbl).

Elsewhere, the remaining cyclical sectors ended on a mixed note. Financials (+0.4%), industrials (+0.4%), and technology (+0.2%) displayed relative strength, while consumer discretionary (unch) ended a bit behind the broader market.

The industrial sector outperformed from the start with better than expected earnings from FedEx (FDX 159.71, +5.05) providing support. Shares of FDX jumped 3.3%, while the broader Dow Jones Transportation Average gained 1.0%. Airlines bucked the trend, which was a bit surprising considering the decline in the price of crude. Delta Air Lines (DAL 38.94, -0.58) and JetBlue Airways (JBLU 11.20, -0.21) lost 1.5% and 1.9%, respectively.

Also of note, the discretionary sector finished just behind the market, but that masked the strength among homebuilders. The industry group rallied in reaction to better than expected results from Lennar (LEN 41.40, +2.27). The stock surged 5.8%, while the iShares Dow Jones US Home Construction ETF (ITB 24.13, +0.54) settled higher by 2.3%.

Today's participation was ahead of recent averages with more than 650 million shares changing hands at the NYSE.

Economic data included CPI, NAHB Housing Market Index, Q2 Current Account Balance, and the weekly MBA Mortgage Index:

The CPI report for August revealed a 0.2% decline, while the Briefing.com consensus expected an unchanged reading
This was the first decline in total CPI since April 2013, driven by a 2.6% decline in the energy index
Core CPI, meanwhile, was flat against a 0.2% uptick expected by the consensus
The NAHB Housing Market Index for September rose to 59 from 55, while the Briefing.com consensus expected an increase to 56
The current account deficit for the second quarter totaled $98.50 billion while the Briefing.com consensus expected the deficit to hit $114.50 billion
The first quarter deficit was revised to $102.10 billion from $111.20 billion
The weekly MBA Mortgage Index jumped 7.9% to follow last week's 7.2% drop

Tomorrow, weekly Initial Claims (Briefing.com consensus 305K) and August Housing Starts (consensus 1045K)/Building Permits (expected 1054K) will be released at 8:30 ET, while the Philadelphia Fed survey for September (consensus 23.5) will cross the wires at 10:00 ET.

Nasdaq Composite +9.2% YTD
S&P 500 +8.3% YTD
Dow Jones Industrial Average +3.5% YTD
Russell 2000 -0.8% YTD

3:35 pm: [BRIEFING.COM]

Dec gold chopped around near the unchanged level for most of today's pit trade as investors awaited the FOMC policy statement released at 14:00 ET. The yellow metal touched a session high of $1240.10 per ounce in early morning action but later dipped to a session low of $1234.50 per ounce and settled 60 cents below the break-even line at $1235.60 per ounce.
Dec silver erased slight early morning losses as it lifted from its session low of $18.64 per ounce. It touched a session high of $18.75 per ounce shortly before settling unchanged at $18.73 per ounce.
A few minutes ago, both gold and silver extended losses and fell to new lows on the day. Dec gold is now -0.8% at $1227.40/oz, Dec silver -0.9% at $18.55/oz
Oct crude oil touched a session high of $95.03 per barrel in early morning action but retreated back into negative territory.
The energy component traded as low as $93.74 per barrel after the EIA reported that for the week ending Sep 12, crude oil inventories had a build of 3.673 mln barrels when a draw of 1.5-1.6 mln barrels was anticipated. Unable to find buying support, it settled with a 0.6% loss at $94.33 per barrel.
Oct natural gas chopped around slightly above the unchanged line today. It touched a session high of $4.04 per MMBtu and settled with a 0.5% gain at $4.01 per MMBtu.

3:00 pm: [BRIEFING.COM] Recent action saw the S&P 500 (+0.4%) back away from its session high with Fed Chair Yellen now taking questions from the assembled media.

During her press conference, Chair Yellen said today's policy directive was meant to convey no changes to Fed's policy stance. With regards to inflation, Ms. Yellen said inflation has firmed since the start of the year, but is still running below objective with a gradual move towards objective expected to continue.

When answering a question about the proper interpretation of 'considerable time,' Ms. Yellen said there is no 'mechanical' interpretation for the figure of speech.

2:30 pm: [BRIEFING.COM] The major averages have alternated between gains and losses in the wake of the recently-released FOMC statement. Currently, the S&P 500 trades higher by 0.4% with the focus shifting to Chair Yellen's press conference.

As rumored yesterday, the Fed kept its reference to 'considerable time,' but that has resulted in another dissenter. Both Charles Plosser and Richard Fisher voiced their opposition to delaying the first rate hike.

Treasuries have returned into the green after showing a brief loss immediately after the statement was released. The 10-yr yield is currently at 2.58%, which represents the overnight high for the benchmark yield.

2:05 pm: [BRIEFING.COM] The Federal Open Market Committee has just released its latest policy directive, which announced another $10 billion taper, lowering the pace of asset purchases to $15 billion per month. As expected, the Federal Reserve maintained the "considerable time" language in its forward guidance, suggesting the first rate hike remains somewhat distant. On that note, the economic projections that were also released indicate the Fed sees the fed funds rate at 1.375% at the end of 2015.

The release was met with a retreat in bonds and equities. The S&P 500 is now lower by 0.2%, while the 10-yr yield trades up one basis point at 2.61%.

The dollar has received a boost at the expense of other major currencies. The dollar/yen pair has spiked above the 108.00 level, while the euro has weakened to 1.2900 versus the greenback.

1:25 pm: [BRIEFING.COM] The stock market is doing pretty much what it was expected to do today in front of the FOMC decision (i.e. nothing). The major indices are little changed as traders wait anxiously for the Fed's latest directive and updated economic projections.

Everyone is waiting to see if the "considerable time" language is maintained in the directive after Wall Street Journal Fed watcher, Jon Hilsenrath, suggested yesterday it could be.

Mr. Hilsenrath's article was the catalyst for the broad-based advance in the stock market on Tuesday as participants relished the thought that maintaining that verbiage would be a telltale signal that the Fed isn't inclined to raise the fed funds rate anytime soon.

Accordingly, should the Fed surprise today and remove that language, there is a good chance we could see some notable downside action in the stock market, and some notable upside action in the US Dollar Index (84.00, +0.01), immediately following the directive's release.

Stay tuned. The moment everyone has been waiting for arrives at the top of the hour.

12:55 pm: [BRIEFING.COM] The Dow Jones Industrial Average, Nasdaq, and S&P 500 hover near their flat lines at midday, while the Russell 2000 (+0.4%) outperforms.

Equity indices climbed out of the gate and notched their highs within the first 30 minutes of action amid strength in a handful of cyclical sectors. However, three of the four indices have returned to their flat lines, leaving the Russell 2000 as the lone advancer of note ahead of the FOMC policy statement, which is scheduled to be released at 14:00 ET.

The opening rally was fueled by the industrial sector (+0.4%), which drew strength from transport stocks after FedEx (FDX 159.75, +5.09) reported better than expected results and reaffirmed its guidance. The Dow Jones Transportation Average trades up 0.9%, but has slipped from its high due to the underperformance among air lines. Delta Air Lines (DAL 38.92, -0.61) and JetBlue Airways (JBLU 11.26, -0.15) are both down near 1.5% even as crude oil sports a 1.1% loss at $93.86/bbl.

In turn, the weakness in the price of crude has weighed on the energy sector (-0.5%), which sits at the bottom of the leaderboard. The group has narrowed its gain for the week to 1.4%, but remains ahead of other cyclical sectors since Friday.

Elsewhere among cyclical groups, financials (+0.2%) and materials (+0.6%) outperform, while technology (-0.1%) lags. Notably, the materials sector has been boosted by steelmakers after U.S. Steel (X 45.06, +3.65) hiked its guidance.

Also of note, the discretionary sector trades in-line with the market, but that masks gains among homebuilders in reaction to upbeat earnings from Lennar (LEN 41.12, +1.99). The stock has spiked 5.1%, while the iShares Dow Jones US Home Construction ETF (ITB 24.11, +0.52) trades up 2.2%.

Treasuries hover in the middle of their range with the 10-yr yield down three basis points at 2.57%.

Economic data included CPI, NAHB Housing Market Index, Q2 Current Account Balance, and the weekly MBA Mortgage Index:

The CPI report for August revealed a 0.2% decline, while the Briefing.com consensus expected an unchanged reading
This was the first decline in total CPI since April 2013, driven by a 2.6% decline in the energy index
Core CPI, meanwhile, was flat against a 0.2% uptick expected by the consensus
Altogether, the report did not signal unexpected inflationary pressures, which gives the Fed room to continue on its policy course
The NAHB Housing Market Index for September rose to 59 from 55, while the Briefing.com consensus expected an increase to 56
The current account deficit for the second quarter totaled $98.50 billion while the Briefing.com consensus expected the deficit to hit $114.50 billion
The first quarter deficit was revised to $102.10 billion from $111.20 billion
The weekly MBA Mortgage Index jumped 7.9% to follow last week's 7.2% drop

12:30 pm: [BRIEFING.COM] The S&P 500 has returned to its flat line with the latest policy statement from the FOMC expected in 90 minutes.

While the key indices trade little changed ahead of this afternoon's release, Treasuries have held modest gains throughout the day. The 10-yr note is currently higher by five ticks with its yield down two basis points at 2.58%. Given its current level, the benchmark yield hovers in the middle of today's range after marking a session low just under 2.56% following today's CPI report.

The CPI report revealed the first decline since April 2013, which was driven by a 2.6% drop in the energy index. With CPI not showing signs of unexpected inflation, the Fed has some room to maintain its recent tone.

11:55 am: [BRIEFING.COM] Equity indices continue drifting near their recent levels with the S&P 500 (+0.1%) showing a slim gain, while the Russell 2000 (+0.6%) remains near its session high.

Not much has changed among the ten sectors with materials (+0.6%) and industrials (+0.5%) remaining ahead of their peers. The industrial sector has continued drawing support from transports as evidenced by a 1.0% gain for the Dow Jones Transportation Average.

However, the solid gain masks the underperformance of airlines. All five carriers that are part of the Transportation Average hover in the red with Delta Air Lines (DAL 38.97, -0.55) and JetBlue Airways (JBLU 11.26, -0.15) both down near 1.3%.The industry group has retreated despite today's decline in crude oil prices (-0.8% at $94.17/bbl).

11:30 am: [BRIEFING.COM] The Dow, Nasdaq, and S&P 500 hover just north of their respective flat lines, while the Russell 2000 sports a solid gain of 0.6% after showing relative weakness yesterday.

Yesterday, the small-cap index reclaimed its 100-day (1150) and 200-day (1151) moving averages, but could not overtake the 50-day moving average (1152), which served as the session high for the index. Today, however, the Russell 2000 has climbed above that level and currently trades near the middle of its range from August.

The relative strength among small caps has led to strength in other high-beta areas like biotechnology and chipmakers. The iShares Nasdaq Biotechnology ETF (IBB 272.07, +1.25) is higher by 0.5%, while the PHLX Semiconductor Index trades up 0.7%. Interestingly, the two groups have been unable to lift health care (-0.1%) and technology (+0.1%) as both sectors hover near their flat lines.

10:55 am: [BRIEFING.COM] The major averages have ticked down from their highs, but continue holding modest gains. The S&P 500 trades two points above its flat line with six sectors showing gains.

The industrial space (+0.6%) surged out of the gate and the growth-sensitive sector continues trading ahead of the broader market at this juncture. Elsewhere, the materials sector (+0.7%) has received support from steelmakers after U.S. Steel (X 45.02, +3.61) boosted its guidance. The stock has jumped 8.7%, while the Market Vectors Steel ETF (SLX 49.29, +0.52) is higher by 1.1%.

On the flip side, consumer staples (-0.3%), energy (-0.3%), and health care (-0.2%) have pressured the market from its early high.

10:35 am: [BRIEFING.COM]

Commodities are mixed lower this morning, while the dollar index is -0.1% at 84.02
Energy and ag are mixed, while metals are mostly lower.
Cocoa futures are today's top performer with gains of 2.5% at $3147/mt.
Crude oil sold off from just above $95/barrel to a new LoD just ahead of the weekly EIA inventory data.
Following the data, crude oil extended losses a little, but just now fell to a new LoD just below $94/barrel. Oct crude is now -0.9% at $94.06/barrel
Silver futures have been in the red all morning, modestly lower, while gold made a small move, from its HoD, back near the unchanged mark after losing about $4/oz.
Dec gold is now -0.02% at $1236.40/oz, Dec silver is -0.3% at $18.66/oz
Dec copper has been in the red all day and hit a new low for the day at $3.13/lb this morning. Copper is now -0.8% at $3.14/lb

10:00 am: [BRIEFING.COM] The S&P 500 trades higher by 0.2%.

The NAHB Housing Market Index for September rose to 59 from 55, while the Briefing.com consensus expected the reading to climb to 56.

9:40 am: [BRIEFING.COM] The stock market climbed out of the gate with the industrial sector (+0.6%) setting the pace. Looking below the surface, transport stocks are largely responsible for the early outperformance following better than expected results from FedEx (FDX 160.46, +5.80). The logistics company has added 3.9%, while the broader Dow Jones Transportation Average trades up 1.3% with all but one component showing gains. Shipper Matson (MATX 27.36, -0.03) is the lone decliner, down 0.1%.

Elsewhere, other cyclical sectors are a bit mixed. Financials (+0.4%) and materials (+0.9%) outperform, while energy (-0.1%) and technology (+0.1%) lag following yesterday's strength.

Treasuries continue hovering a little below their highs with the 10-yr yield down three basis points at 2.57%.

The NAHB Housing Market Index for September will be released at 10:00 ET (Briefing.com consensus 56).

9:12 am: [BRIEFING.COM] S&P futures vs fair value: +1.00. Nasdaq futures vs fair value: -0.30. The stock market is on track for a subdued start as futures on the S&P 500 trade within a point of fair value. The S&P 500 futures have maintained a four-point range throughout the night and have largely ignored a modest rally that is taking place in Europe at this time. The divergence should not be too surprising considering U.S. participants are showing some caution ahead of the latest FOMC statement, which will be released at 14:00 ET.

It is worth mentioning that futures rallied to highs after the CPI report for August revealed a 0.2% decline, while the Briefing.com consensus expected an unchanged reading. Core CPI, meanwhile, was flat against a 0.2% uptick expected by the consensus. Altogether, the report did not signal unexpected inflationary pressures, which gives the Fed room to continue on its policy course.

On the corporate front, FedEx (FDX 158.99, +4.33) is indicated to open higher by 2.8% after beating analyst expectations and reaffirming its guidance.

Treasuries have jumped to highs following the CPI report. The 10-yr note is higher by seven ticks with its yield down almost three basis points at 2.57%.

8:58 am: [BRIEFING.COM] S&P futures vs fair value: +0.90. Nasdaq futures vs fair value: -0.50. The S&P 500 futures trade one point above fair value.

Markets rallied across most of Asia. As reported yesterday, the People's Bank of China injected CNY500 billion into the five largest banks, which acts like a 50-basis point Reserve Requirement Ratio cut. In other central bank news, Bank of Thailand held its key rate at 2.00%, as expected.

Economic data was limited:
Australia's MI Leading Index ticked down 0.1% month-over-month (prior -0.1%)
Singapore's trade surplus widened to SGD6.80 billion from SGD4.09 billion (expected deficit of SGD4.39 billion)

------

Japan's Nikkei shed 0.1%, slipping off eight-month highs as trade snapped its five-day winning streak. Heavyweight Softbank provided support, up 3.5%, amid reports of strong demand for the IPO of its holding, Alibaba.
Hong Kong's Hang Seng rallied 1.0% off eight-week lows, halting its eight-day skid. Financials led the advance as Industrial & Commercial Bank of China added 2.0% and Bank of Communications climbed 2.3%.
China's Shanghai Composite gained 0.5% after the PBOC injection. China Vanke advanced 0.7%.
India's Sensex rallied 0.5%, bouncing off three-week lows. IT service providers gained with Wipro, Tata Consultancy Services, and Infosys climbing between 1.4% and 2.5%.

Major European indices trade mostly higher with Italy's MIB (+1.3%) setting the pace. Elsewhere, the Bank of England released the minutes from its last meeting, revealing continued dissent among two Monetary Policy Committee members.

Participants received several data points:
Eurozone CPI rose 0.1% month-over-month, as expected, while the year-over-year reading increased 0.4% (forecast 0.3%; previous 0.3%). Core CPI rose 0.9% year-over-year, as expected
Great Britain's Average Earnings Index + Bonus rose 0.6% (forecast 0.5%; prior -0.1%). Separately, Claimant Count decreased by 37,200 (expected -30,000; prior -37,400), sending the Unemployment Rate down to 6.2% from 6.4% (expected 6.3%)
Italy's trade surplus widened to EUR6.86 billion from EUR3.68 billion (expected surplus of EUR2.47 billion)
Spain's trade deficit widened to EUR1.82 billion from EUR1.47 billion (expected deficit of EUR2.10 billion)

------

Great Britain's FTSE is lower by 0.1%. Smiths Group has tumbled 5.6% after reporting disappointing earnings. On the upside, Barratt Developments leads with a gain of 3.2% and Persimmon trades up 2.1%.
Germany's DAX is higher by 0.4%. Adidas leads for a second day in a row, up 2.2%. Utilities lag with E.On and RWE both down near 0.6%.
In France, the CAC trades up 0.6%. Steelmaker ArcelorMittal leads with an advance of 2.3%. Consumer names trade in mixed fashion with Carrefour and Pernod Ricard both up near 1.4%, while Kering and LVMH are down 0.8% and 0.4%, respectively.
Italy's MIB outperforms with an increase of 1.3%. Banco Popolare, Banca di Milano Scarl, and UBI Banca are up between 2.0% and 3.2%.

8:33 am: [BRIEFING.COM] S&P futures vs fair value: +2.20. Nasdaq futures vs fair value: +1.50. The S&P 500 futures trade two points above fair value.

Total CPI decreased 0.2% (Briefing.com consensus 0.0%) in August while core CPI, which excludes food and energy, was unchanged (Briefing.com consensus +0.2%). On a year-over-year basis, total CPI is up 1.7% and core CPI is also up 1.7%.

Separately, the current account deficit for the second quarter totaled $98.50 billion while the Briefing.com consensus expected the deficit to hit $114.50 billion. The first quarter deficit was revised to $102.10 billion from $111.20 billion.

7:58 am: [BRIEFING.COM] S&P futures vs fair value: +0.70. Nasdaq futures vs fair value: -2.50. U.S. equity futures trade little changed amid upbeat action overseas. The S&P 500 futures hover within a point of fair value. The underperformance of U.S. futures relative to global equities reflects the wait-and-see approach ahead of today's policy directive from the Federal Open Market Committee. Yesterday, the market rallied after Wall Street Journal's Jon Hilsenrath indicated the FOMC plans to make little changes to its forward guidance and intends to keep the "considerable time" language in today's release, which will cross the wires at 14:00 ET with Janet Yellen's press conference following at 14:30 ET.

Treasuries hold modest gains with the 10-yr yield down one basis point at 2.58%.

On the economic front, the weekly MBA Mortgage Index jumped 7.9% to follow last week's 7.2% drop. August CPI (Briefing.com consensus 0.0%) and Q2 Current Account (expected deficit of $114.50 billion) will be reported at 8:30 ET, while the NAHB Housing Market Index for September (consensus 56) will be released at 10:00 ET.

In U.S. corporate news of note:

Adobe Systems (ADBE 67.50, -3.23): -4.6% after its cautious guidance overshadowed better than expected earnings.
General Mills (GIS 51.34, -1.84): -3.5% after missing earnings and revenue expectations.
Rackspace (RAX 32.35, -6.99): -17.6% after the company announced it has ended its formal evaluation of possible M&A transactions without reaching any deals.
FedEx (FDX 157.80, +3.14): +2.0% in reaction to better than expected earnings/revenue and reaffirmed guidance.
Lennar (LEN 41.15, +2.02): +5.2% following its better than expected earnings and revenue.

Reviewing overnight developments:

Asian markets ended mostly higher. China's Shanghai Composite +0.5%, Hong Kong's Hang Seng +1.0%, and Japan's Nikkei -0.1%
Economic data was limited:
Australia's MI Leading Index ticked down 0.1% month-over-month (prior -0.1%)
Singapore's trade surplus widened to SGD6.80 billion from SGD4.09 billion (expected deficit of SGD4.39 billion)
In news:
Financials outperformed in China following the People's Bank of China decision to inject CNY500 billion into the banking system. Property-oriented China Vanke gained 0.7%

Major European indices trade higher across the board. Great Britain's FTSE +0.1%, Germany's DAX +0.4%, and France's CAC +0.7%. Elsewhere, Italy's MIB +1.2% and Spain's IBEX +1.0%
Participants received several data points:
Eurozone CPI rose 0.1% month-over-month, as expected, while the year-over-year reading increased 0.4% (forecast 0.3%; previous 0.3%). Core CPI rose 0.9% year-over-year, as expected
Great Britain's Average Earnings Index + Bonus rose 0.6% (forecast 0.5%; prior -0.1%). Separately, Claimant Count decreased by 37,200 (expected -30,000; prior -37,400), sending the Unemployment Rate down to 6.2% from 6.4% (expected 6.3%)
Italy's trade surplus widened to EUR6.86 billion from EUR3.68 billion (expected surplus of EUR2.47 billion)
Spain's trade deficit widened to EUR1.82 billion from EUR1.47 billion (expected deficit of EUR2.10 billion)
Among news of note:
The Bank of England released the minutes from its last meeting, revealing continued dissent among two Monetary Policy Committee members

6:58 am: [BRIEFING.COM] S&P futures vs fair value: +1.00. Nasdaq futures vs fair value: -1.00.

6:58 am: [BRIEFING.COM] Nikkei...15,888.67...-22.90...-0.10%. Hang Seng...24,376.41...+240.40...+1.00%.

6:58 am: [BRIEFING.COM] FTSE...6,807.78...+15.70...+0.20%. DAX...9,681.73...+50.10...+0.50%.

U.S. Stocks Pare Gain as Investors Weigh Rate Prospects

By Oliver Renick Sep 17, 2014 5:02 PM ET

After all the attention paid to the Federal Reserve today, benchmark U.S. stocks indexes ended the session at almost the exact place they were before the central bank pledged to keep interest rates low for a “considerable time.”

Commodity, financial and telephone shares led gains in seven of the 10 main industry groups in the Standard & Poor’s 500 Index. FedEx Corp. and Lennar Corp. (LEN) rallied more than 3 percent after posting earnings that topped analysts’ estimates. Auxilium Pharmaceuticals Inc. (AUXL) jumped 45 percent, the most ever, after getting a takeover bid.

The S&P 500 increased 0.1 percent 2,001.57 at 4 p.m. in New York after rising as much as 0.6 percent following the release of the Fed’s statement at 2 p.m. The Dow Jones Industrial Average increased 24.88 points to a record 17,156.85 after jumping as much as 89 points. Both finished within a point of their levels at 2 p.m., when the Fed released its statement. Fed Chair Janet Yellen later told a press conference that the pledge for low rates is conditional on the economy.

“Yellen may be a hawk in dove’s clothing because she keeps reiterating that economic data can change the pace of rate hikes and the path to normalization,” Karyn Cavanaugh, the New York-based senior market strategist at Voya Investment Management LLC, said by phone. “The economy is gaining steam. I think we could see some increase in rates by March or sooner.”

Fed Statement

Stocks briefly extended gains as the Fed’s statement said the economy is expanding at a moderate pace and inflation is below its goal. It maintained a commitment to keep interest rates near zero for a “considerable time” after asset purchases are completed in October. Fed officials raised their median estimate for the federal funds rate at the end of 2015 to 1.375 percent, compared with 1.125 percent in June. The rate will be 3.75 percent at the end of 2017, the Fed said in its Summary of Economic Projections.

“The labor market has yet to fully recover,” Yellen said at a press conference after a meeting of the Federal Open Market Committee today in Washington. “There are still too many people who want jobs but can’t find them.” She added that “inflation has been running below the committee’s 2 percent objective.” In July, the Fed said inflation was “somewhat closer” to its goal.

Policy makers tapered monthly bond buying to $15 billion in their seventh consecutive $10 billion cut, staying on course to end the program in October. Bond purchases intended to hold down long-term interest rates have swelled the Fed’s balance sheet to $4.42 trillion.

The Chicago Board Options Exchange Volatility Index, the benchmark gauge of options prices known as the VIX, lost 0.6 percent to 12.65 after earlier gaining as much as 14 percent. More than 6.1 billion U.S. shares traded hands, 8.8 percent above the three-month daily average.

China Lending

The S&P 500 rallied 0.8 percent yesterday, led by energy stocks, after China’s central bank reportedly started providing about $81 billion in loans to its biggest banks.

Data today showed the cost of living in the U.S. unexpectedly dropped in August for the first time in more than a year, showing inflation still is falling short of the Fed’s goal. The central bank is scrutinizing data on labor and prices to gauge whether the economic recovery is strong enough to withstand higher borrowing rates.

The S&P 500 will advance to 2,050 by the end of the year, according to Credit Suisse Group AG equity research analysts who raised their estimate from an earlier projection of 2,020. Equities are “abnormally cheap” compared with other asset classes, the Credit Suisse team said. Stocks will continue to climb through mid-2015, according to the report, before a second-half correction in 2015 as the Fed raises interest rates.

Market Movers

FedEx (FDX) added 3.3 percent to $159.71. The company’s first-quarter earnings increased 24 percent, helped by the completion of a record buyback program, growth in domestic air shipments and lower pension expense.

Lennar Corp. climbed 5.8 percent to $41.40. The second-biggest U.S. homebuilder by market value reported fiscal third-quarter net income of 78 cents a share, exceeding the 67-cent average of analysts in a Bloomberg survey.

U.S. Steel Corp. rose 10 percent to a three-year high of $45.61. The steelmaker that has reported five years of losses said the Ontario Superior Court granted protection for its Canada unit. The company also said it canceled $800 million of capital investments in projects in Minnesota and Indiana.

Auxilium Jumps

Auxilium Pharmaceuticals jumped 45 percent to $31.18. Endo International Plc, a maker of pain drugs, said it bid $28.10 a share in cash and stock, a 31 percent premium to yesterday’s closing price, for the maker of men’s health medicines. Endo said its offer didn’t include a deal for QLT Inc., which Auxilium agreed to take control of in June. That purchase hasn’t yet closed. Auxilium today said it has adopted a one-year holder rights plan and confirmed its QLT offer.

Adobe Systems Inc. lost 4.9 percent to $67.30 after reporting third-quarter sales of $1.01 billion. Analysts on average estimated revenue of $1.02 billion. The software maker posted profit before some items of 28 cents a share, exceeding analysts’ projections for 26 cents.

Rackspace Hosting Inc. tumbled 18 percent to $32.39 after saying it rejected bid offers. The cloud-computing company decided to remain independent after ending a review on strategic options, and rebuffed investor calls to buy back shares, saying it will preserve cash for future acquisitions.

Gogo Inc. advanced 2.9 percent to $18.47 after announcing a partnership with Virgin Atlantic to offer in-flight connectivity services on Virgin’s aircraft.

General Mills Inc. (GIS) lost 4.4 percent to $50.83 after reporting earnings and sales that missed analysts’ estimates. Revenue at the cereal maker was $4.27 billion, compared with the average analyst estimate of $4.38 billion.

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 Michael P. Regan

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

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

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