TheStrategyLab.com Free Support Forum

Forum for price action traders that want to learn WRB Analysis basic tutorial chapters 1, 2 and 3 prior to purchasing our advance trade methods
It is currently Tue Jan 23, 2018 12:57 pm

All times are UTC - 5 hours




Post new topic Reply to topic Bookmark and Share  [ 1 post ] 
Author Message
 Post subject: September 26th Friday Trade Results - Profit $610.00
PostPosted: Fri Sep 26, 2014 3:56 pm 
Offline
Site Admin

Joined: Sat Jan 10, 2009 1:06 pm
Posts: 3048
Location: Canada
Image

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)

Attachment:
092614-wrbtrader-Price-Action-Trading-PnL-Blotter-Profit+610.00.png
092614-wrbtrader-Price-Action-Trading-PnL-Blotter-Profit+610.00.png [ 174.75 KiB | Viewed 75 times ]

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

Price Action Trade Performance for Today: Emini TF ($TF_F) futures @ $610.00 dollars or +6.10 points, Emini ES ($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 @ $610.00 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=1896

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

-----------------------------

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.

Attachment:
092614-Key-Price-Action-Markets.png
092614-Key-Price-Action-Markets.png [ 1.27 MiB | Viewed 83 times ]

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

Yahoo! Finance

4:10 pm: [BRIEFING.COM] Equity indices finished a cautious week on an upbeat note. The S&P 500 (+0.9%) and Nasdaq (+1.0%) reclaimed their 50-day moving averages, while the Dow Jones Industrial Average (+1.0%) was able to turn positive for the month (+0.1%). However, today's rally did not feature the same conviction as yesterday with just fewer than 620 million shares changing hands at the NYSE floor versus Thursday's above-average total of 720 million.

The stock market received an early boost from heavily-weighted consumer discretionary (+1.1%) and technology (+1.2%) sectors. Both groups were underpinned by better than expected earnings with discretionary shares rallying behind Nike (NKE 89.50, +9.75), which surged 12.2%.

Elsewhere, the technology sector drew strength from chipmakers following an earnings beat from Micron (MU 33.84, +2.14). The stock jumped 6.8%, while the broader PHLX Semiconductor Index rose 1.3% to narrow its September loss to 0.3%. To be sure, large cap components also displayed strength with Apple (AAPL 100.75, +2.88) spiking nearly 3.0%.

Stocks were briefly pressured from their morning highs by the underperforming health care sector (+0.3%). The group could not catch up to the broader market amid weakness in hospital names like Tenet Healthcare (THC 60.75, -1.09), but biotechnology rallied with the iShares Nasdaq Biotechnology ETF (IBB 276.41, +2.44) advancing 0.9%.

The relative weakness in the health care space did not stand in the market's way during afternoon action as other influential groups like financials (+0.9%), industrials (+0.9%), and energy (+1.3%) picked up the slack. In the financial sector, Janus Capital (JNS 15.89, +4.78) soared 43.0% after it was announced Bill Gross will be joining the company following his departure from PIMCO.

For its part, the energy sector rebounded from its recent underperformance amid a 1.1% rise in crude oil. The energy component ended the pit session at $93.55/bbl to register a 2.2% gain for the week.

Treasuries slumped in the morning, but the rest of the session saw a divergence among different maturities. The 10-yr note settled near its low with its yield up three basis points at 2.53%, while the long bond returned to its flat line with its yield at 3.22%.

Also of note, the Dollar Index (85.63, +0.43) continued charging higher to extend this week's gain to 1.1%. The index will enter the final two sessions of the month after surging 3.6% so far in September.

On Monday, Personal Income (Briefing.com consensus 0.3%) and Spending (consensus 0.4%) data for August will be reported at 8:30 ET alongside core PCE Prices (expected 0.0%). The day's data will be topped off with the Pending Home Sales report for August (consensus -0.2%).

Nasdaq Composite +8.0% YTD
S&P 500 +7.2% YTD
Dow Jones Industrial Average +3.2% YTD
Russell 2000 -3.8% YTD

Week in Review: Stocks Endure Broad Retreat

The stock market began the trading week on the defensive note with small-cap stocks pacing the retreat. The Russell 2000 (-1.4%) and Nasdaq Composite (-1.1%) displayed relative weakness, while the S&P 500 lost 0.8% with all ten sectors ending in the red. Global equities began showing some cracks overnight after China's Finance Minister Lou Jiwei poured cold water on hopes for new stimulus measures. Specifically, Mr. Lou said the government has no plans to change policies despite the recent string of disappointing data. A somewhat similar hawkish tone was conveyed by comments from Japan's Economy Minister Akira Amari, who said his country's government remains on track to implement another consumption tax hike.

Stocks finished the Tuesday session on the defensive after spending the entire day in a steady retreat. The S&P 500 (-0.6%) posted its third consecutive decline, while the small-cap Russell 2000 (-0.9%) slipped behind the broader market during afternoon action. Equity indices were pressured from the start following some overnight developments that weighed on sentiment. The market tried to overcome the early weakness, but could not stage a sustained rebound, which resulted in follow-through selling in the afternoon. Mixed PMI data from the eurozone combined with an announcement from the U.S. Treasury concerning tax inversion deals factored into the cautious action. Fittingly, the news caused early weakness in the health care sector (-0.6%), which has been at the center of recent M&A deals. The sector was able to cut its early loss in half.

The stock market ended the midweek session on an upbeat note despite enduring a shaky start to the day. The S&P 500 rose 0.8% with nine sectors posting gains, while the Nasdaq Composite (+1.0%) outperformed. Equity indices spent the initial 90 minutes of action near their flat lines with the S&P 500 briefly pressured to its 50-day moving average (1976.58) by the early weakness in the energy sector (+0.04%). The growth-sensitive group was down in excess of 1.0% in the early going, but charged into positive territory during afternoon action. Crude oil went along for the afternoon ride, climbing 1.6% to $93.03/bbl. The test of the 50-day moving average invited dip buyers into the fold, while the relative strength of high-beta areas like biotechnology and chipmakers emboldened their efforts. Furthermore, a well-timed report from the Wall Street Journal indicating China may replace the People's Bank of China Governor Zhou with someone more dovish provided an added measure of support.

Equities endured a broad-based retreat on Thursday that pressured the Nasdaq (-1.9%) and the S&P 500 (-1.6%) below their 50-day moving averages, while the Dow (-1.5%) notched a session low just above that mark. All ten sectors were encompassed in the slide with eight groups posting losses of 1.0% or more. The indices began the day with modest losses and continued heading lower through the first 90 minutes of the session. Interestingly, dip-buyers showed very little interest in getting involved, which resulted in new session lows during the afternoon. The reluctance to step into the fold was driven in part by the lack of notable leadership. To that point, all six cyclical sectors ended in-line or behind the S&P 500 with high-beta areas like biotechnology and chipmakers finishing among the laggards. The iShares Nasdaq Biotechnology ETF and the PHLX Semiconductor Index both lost 1.9%.

3:30 pm: [BRIEFING.COM] Dec gold traded lower as the dollar index rose on economic data released this morning. Q2 GDP was revised up to 4.6% in the third estimate from 4.2% in the second estimate, which was in-line with the Briefing.com consensus. This marked the best quarterly increase in GDP since 4Q2011. The yellow metal brushed a session low of $1212.80 per ounce in morning action and eventually settled with a 0.5% loss at $1215.50 per ounce. Gold touched $1206.60 per ounce yesterday, its lowest level since January 2, and booked a 0.1% loss for the week.

Dec silver chopped around in positive territory. It rose as high as $17.58 per ounce and settled with a 0.6% gain at $17.54 per ounce. Despite today's advance, silver booked a weekly loss of 1.7%, having traded at four year lows earlier in the week.

Nov crude oil gained strength on the GDP data. The energy component rose as high as $93.86 per ounce and settled 1.1% higher at $93.55 per ounce. Today's advance brought gains for the week to 2.2%.

Nov natural gas spent most of today's pit trade chopping around in the red. It brushed a session low of $3.97 per MMBtu but gained steam in afternoon action and broke into positive territory. Natural gas settled 0.5% higher at $4.03 per MMBtu, booking a gain of 3.3% for the week.

2:55 pm: [BRIEFING.COM] The S&P 500 trades higher by 0.9% with one hour remaining in the session. The benchmark index has been able to erase more than half of yesterday's decline, but it is worth mentioning that today's advance has taken place on below-average trading volume.

This week was relatively quiet on the economic front, but next week will bring a full slate of economic data. On Monday, Personal Income and Spending data for August will be reported at 8:30 ET alongside core PCE Prices. The day's data will be topped off with the Pending Home Sales report for August.

As the week wears on, investors will receive the ISM Index, Chicago PMI, and the Nonfarm Payrolls report for September.

2:30 pm: [BRIEFING.COM] In our prior update we mentioned that the S&P 500 (+0.8%) and Nasdaq (+0.9%) were nearing their 50-day moving averages. The two indices did not keep the market in suspense, but rather charged through those noteworthy levels.

To be fair, today's advance has taken place on below-average volume with only 325 million shares having changed hands so far at the NYSE. This suggests today's final tally will come in below yesterday's count of 720 million.

The A/D line continues favoring the bulls with more than two names trading in the green for each decliner.

2:00 pm: [BRIEFING.COM] Afternoon action continues with the S&P 500 (+0.5%) trading roughly a point below its 50-day moving average (1976.58). Similarly, the Nasdaq Composite (+0.5%) trades near its own 50-day average (4494.93) after notching a session high within a point of that level.

Earlier, we looked at the underperformance of the four countercyclical sectors. The defensively-oriented side of the market continues trailing the S&P 500, but telecom services (+0.1%) and utilities (+0.1%) have climbed out of the red, while the consumer staples sector has returned to its flat line. Health care (-0.3%) has not been as fortunate, and continues trailing the broader market.

Elsewhere, Treasuries remain near their lows with the 10-yr yield up three basis points at 2.53%.

1:25 pm: [BRIEFING.COM] Investors' nerves have settled a bit after yesterday's jarring retreat as the major indices have maintained a bullish bias since the start of trading.

The S&P 500 is currently approaching its best levels of the session seen just after 10:00 a.m. ET. Notably, the prior intraday peak was stopped out just shy of 1976 (1975.74), which is the underside of the 50-day moving average. Traders will be watching to see if the S&P 500 can punch through that level ahead of the weekend or whether it will continue to provide some stern resistance.

At the moment, the only sector not participating in today's advance is the health care sector (-0.2%).

1:00 pm: [BRIEFING.COM] The stock market trades modestly higher at midday with the Dow Jones Industrial Average (+0.5%) hovering a bit ahead of the S&P 500 (+0.3%). Despite today's advance, the two indices remain on track to end the week with respective losses of 1.5% and 1.9%.

Stocks climbed out of the gate amid strength in the consumer discretionary (+0.5%) and technology (+0.6%) sectors. Both groups were underpinned by better than expected earnings from noteworthy components. The discretionary space has rallied behind Nike (NKE 88.35, +8.60) after the apparel company reported better than expected results and upbeat futures orders. Shares of Nike have added 10.8%.

Elsewhere, the technology sector has been boosted by chipmaker names after Micron (MU 33.70, +2.00) beat the Capital IQ consensus estimate by one cent on better than expected revenue. The stock trades up 6.3%, while the broader PHLX Semiconductor Index is higher by 0.7%.

Interestingly, the relative strength among high-beta chipmakers has not been matched by gains in the high-growth biotech space. The iShares Nasdaq Biotechnology ETF (IBB 273.84, -0.13) is lower by 0.1%, while the health care sector (-0.4%) is the weakest performer with hospital and insurer names on the defensive. Aetna (AET 81.55, -0.51) and Tenet Healthcare (THC 61.18, -0.66) are both down near 1.0%.

The underperformance of health care has pressured the market from its high, but other influential sectors like financials (+0.4%) and energy (+0.8%) have masked the soft spot. In the financial sector, Janus Capital (JNS 14.85, +3.74) has surged 33.7% after announcing Bill Gross will join the company.

Also of note, industrials (+0.3%) lagged in the early going, but now trade in-line with the S&P 500.

Treasuries sit near their lows with the 10-yr yield up three basis points at 2.54%. Meanwhile, the Dollar Index (85.62, +0.42) has extended this week's gain to 1.1%.

Economic data was limited to Q2 GDP and the Michigan Sentiment survey:

Second quarter GDP was revised up to 4.6% in the third estimate from 4.2% in the second estimate, which was exactly what the Briefing.com consensus expected
That was the best quarterly increase in GDP since Q4 2011, when GDP also increased by 4.6%
Real final sales were revised up to 3.2% from 2.8%
Surprisingly, the gains from the third revision did not come from the consumer sector. The second quarter Quarterly Services Survey, released earlier in the month by the Census Bureau, showed much stronger services spending growth than what was reported in the GDP data. The BEA, however, viewed the services data as a very slight upgrade in overall services spending growth (0.9% from 0.8%). As a result, overall consumer spending was left virtually unrevised at 2.5%
The University of Michigan Consumer Sentiment Index was unchanged at 84.6 in the final September reading
That was up from a final reading of 82.5 in August, but below the Briefing.com consensus expectation of an increase to 85.0
The overall improvement in sentiment in September was a result of strengthening employment conditions, historically high stock prices, and slightly lower gasoline prices

12:30 pm: [BRIEFING.COM] Equity indices continue hovering near their recent levels. Today's modest advance has helped the indices put a small dent in this week's losses.

The Russell 2000 (+0.4%) has been the weakest performer of the week and is on track to register a loss of 2.9% since last Friday. For its part, the S&P 500 (+0.3%) currently sports a week-to-date loss of 1.9%, which puts the index in line with the Nasdaq, which has surrendered 2.1% since Friday. However, blue chips have held up a bit better with the Dow (+0.5%) on track to end the week lower by 1.5%.

Despite today's advance, all ten sectors remain on track to end the week in the red with losses ranging from 0.8% (materials) to 2.6% (industrials).

12:00 pm: [BRIEFING.COM] Recent action saw the S&P 500 (+0.2%) inch back towards its opening level, while the Russell 2000 (+0.4%) continues showing relative strength.

Earlier we pointed out the weakness in the four countercyclical sectors. Telecom services (-0.3%) and utilities (-0.2%) have not moved much, but consumer staples (-0.3%) and health care (-0.4%) have slid to new lows. The two sectors deserve close attention since they are big enough to influence the direction of the broader market. Health care accounts for 13.4% of the market, while the consumer staples space represent 9.5% of the S&P 500.

For the time being, the weakness in the two groups has not led to increased demand for volatility protection as evidenced by a modest downtick in the CBOE Volatility Index (VIX 15.51, -0.13).

11:30 am: [BRIEFING.COM] Equity indices continue holding modest gains with the S&P 500 (+0.2%) hovering in the middle of today's range.

Cyclical sectors remain in the green with the energy space (+0.8%) holding the lead. The sector has been supported by an uptick in the price of crude (+0.4% at $92.91/bbl) and has been able to hold the lead despite another leg up in the Dollar Index (85.57, +0.37). To be sure, today's strength could be the result of a rebound following the sector's recent underperformance.

Despite today's advance, the energy sector is still down 2.4% for the week, and lower by 6.6% in September.

Elsewhere, the weakest cyclical sector-industrials (+0.2%)-has been pressured by General Electric (GE 25.51, -0.04), while transports display relative strength with the Dow Jones Transportation Average up 0.6%.

11:00 am: [BRIEFING.COM] The stock market continues holding a modest gain with the Dow (+0.4%) and Nasdaq (+0.3%) trading a bit ahead of the S&P 500 (+0.2%).

As for the ten sectors, they are split with the six cyclical groups holding gains between 0.1% (industrials) and 0.7% (energy), while the four countercyclical sectors hover in the red. Consumer staples and health care are both down near 0.2%, while telecom services and utilities hold respective losses of 0.5% and 0.6%.

Even though the health care sector lags, other top-weighted groups like financials (+0.4%), consumer discretionary (+0.5%), and technology (+0.5%) have picked up the slack for the time being.

Treasuries have returned near their morning lows. The 10-yr note holds a seven-tick loss with its yield up two basis points at 2.53%.

Also of note, the Dollar Index has continued its advance and is now up 1.0% for the week.

10:35 am: [BRIEFING.COM] Dec gold erased early overnight gains after pulling back from its HoD of $1232.70 in overnight action. It continues to trend slightly lower in the red and is now down 0.6% at $1214.70.

Dec silver is chopping around slightly above the unchanged line after trading as high as $17.73 in overnight trade. The metal is currently at $17.52, or 0.5% higher.

Nov crude oil touched a floor session low of $92.56 shortly after equity markets opened but has since moved higher. The energy component is currently printing a gain of 0.5% at $93.00.

Nov natural gas is trading in the red this morning, slipping to a LoD of $3.97 in overnight action. It is now 0.2% lower at $4.01.

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

The University of Michigan Consumer Sentiment report for September was unchanged at 84.6, while the Briefing.com consensus expected the reading to be revised up to 85.0.

9:40 am: [BRIEFING.COM] The major averages climbed out of the gate with blue chips leading the early advance. The Dow Jones Industrial Average trades higher by 0.4%, while the S&P 500 (+0.2%) follows a bit behind with eight sectors showing early gains.

The consumer discretionary space (+0.6%) has received an early boost from Nike (NKE 87.86, +8.11) after the apparel company reported better than expected results. Similarly, the technology sector (+0.5%) has been lifted by chipmakers in reaction to strong earnings from Micron (MU 33.87, +2.17). The stock has jumped 6.9%, while the broader PHLX Semiconductor Index trades up 1.1%.

On the downside, countercyclical utilities (-0.5%) and telecom services (-0.4%) hover in the red.

Treasuries have climbed off their lows, but remain in the red. The 10-yr note has narrowed its loss to 6 ticks with its yield up two basis points at 2.53%.

9:14 am: [BRIEFING.COM] S&P futures vs fair value: +1.00. Nasdaq futures vs fair value: +10.20. The stock market is on track for a slightly higher start to the session as futures on the S&P 500 trade one point above fair value. Despite the slim gain, it is worth mentioning that futures have retreated from their best levels of the morning and currently hover on their lows.

The slide from highs took place right after the release of the revised reading of Q3 GDP, which came in at 4.6% and matched expectations. However, the GDP release coincided with news indicating Bill Gross has left PIMCO for Janus Capital (JNS 15.45, +4.34). The departure caused PIMCO's parent company, Allianz, to slide in excess of 2.0% in Germany. Furthermore, Treasuries and futures began slipping shortly thereafter. Currently the 10-yr note is lower by 10 ticks with its yield up four basis points at 2.54%.

The recent news has overshadowed better than expected earnings from Nike (NKE 87.28, +7.53) and Micron (MU 34.14, +2.45). The two stocks are indicated to open higher by 9.5% and 7.6%, respectively.

The final reading of the Michigan Sentiment index for September will cross the wires at 9:55 ET (consensus 85.0).

9:01 am: [BRIEFING.COM] S&P futures vs fair value: +2.40. Nasdaq futures vs fair value: +9.70. The S&P 500 futures trade two points above fair value.

Markets fell across most of Asia, responding to yesterday's steep slide on Wall Street.

In economic data:
Japan's National CPI increased 3.3% year-over-year (expected 3.4%; previous 3.4%), while National Core CPI rose 3.1% (consensus 3.2%; last 3.3%)
South Korea's Consumer Confidence held steady at 107 (consensus 108)
Singapore's Industrial Production ticked down 0.2% month-over-month (expected 0.2%; previous 2.4%), while the year-over-year reading rose 4.2% (consensus 5.0%; last 3.0%)

------

Japan's Nikkei fell 0.9%, but recovered a large portion of its early decline. Automakers were pressured as Toyota Motor and Honda Motor lost 1.5% and 1.3%, respectively.
Hong Kong's Hang Seng shed 0.4%, pressing to a two-month low. Casino shares finally saw some buying interest as Galaxy Entertainment jumped 3.6% and Sands China climbed 2.8%.
China's Shanghai Composite ticked up 0.1%, gaining for a fourth straight session. Nuclear power names surged for a second day with Shanghai Electric Group rallying the daily limit, 10%.
India's Sensex added 0.6% and held the 50-day moving average. Financials gained for the first time in days as Axis Bank rose 3.1% and State Bank of India lifted 2.8%.

Major European indices trade higher across the board with Italy's MIB (+1.0%) in the lead. German Bunds have been in demand today, dropping the benchmark 10-yr yield to 0.91%, which represents the lowest level since late August

Economic data was limited:
Germany's Import Price Index ticked down 0.1% month-over-month (expected -0.2%; previous -0.4%), while the year-over-year reading fell 1.9% (consensus -2.0%; last -1.7%). Separately, GfK Consumer Climate ticked down to 8.3 from 8.6 (expected 8.5)
French Consumer Confidence held steady at 86, as expected o Italy's Business Confidence slipped to 95.1 from 95.4 (expected 95.5)

------

Germany's DAX trades flat. Infineon Technologies leads with an increase of 1.9%. Allianz is the weakest performer, down 2.4% after Bill Gross announced his departure from PIMCO.
Great Britain's FTSE has added 0.1%. Financials are among the leaders with Admiral Group, HSBC Holdings, and Lloyds Banking up between 1.1% and 1.5%. Consumer names lag with WM Morrison Supermarkets and J Sainsbury both down near 2.0%.
In France, the CAC trades up 0.7%. Bank shares outperform with Credit Agricole and Societe Generale holding gains close to 1.2% apiece. Gemalto lags, down 0.8%.
Italy's MIB leads with a gain of 1.0% thanks to strength among financials. Banco Popolare, Banca di Milano Scarl, UBI Banca, and Intesa Sanpaolo are up between 1.7% and 3.5%.

8:31 am: [BRIEFING.COM] S&P futures vs fair value: +8.10. Nasdaq futures vs fair value: +19.70. The S&P 500 futures trade eight points above fair value.

The third estimate of second quarter GDP pointed to an expansion of 4.6%, which matched the Briefing.com consensus estimate. Meanwhile, the second quarter GDP Deflator was left unchanged at 2.1%, as expected.

8:00 am: [BRIEFING.COM] S&P futures vs fair value: +4.90. Nasdaq futures vs fair value: +12.70. U.S. equity futures trade modestly higher amid upbeat action overseas. The S&P 500 futures hover five points above fair value, which puts the benchmark index on track to reclaim a small portion of its week-to-date loss of 2.2%. Markets in Asia followed yesterday's sell-off on Wall Street with a mixed session, while European indices have been able to rebound from Thursday's losses.

The Dollar Index ended yesterday's affair with a slim gain after slipping from its high. Today, the index is on the rise once again (85.33, +0.14), extending its week-to-date gain to 0.7%.

Participants have received a couple quarterly reports since yesterday's close with both contributing to a rebound in futures.

On the economic front, the third estimate of Q3 GDP will be released at 8:30 ET (Briefing.com consensus 4.6%), while the final reading of the Michigan Sentiment index for September will cross the wires at 9:55 ET (consensus 85.0).

In U.S. corporate news of note:

BlackBerry (BBRY 9.61, -0.19): -1.6% in reaction to a bottom-line beat on light revenue.
Finish Line (FINL 27.00, -2.41): -8.2% after missing earnings and revenue estimates.
Micron (MU 33.49, +1.79): +5.7% after reporting a one-cent beat on better than expected revenue.
Nike (NKE 86.04, +6.29): +7.9% following its better than expected results and upbeat futures orders.

Reviewing overnight developments:

Asian markets ended mixed. China's Shanghai Composite +0.1%, Hong Kong's Hang Seng -0.4%, and Japan's Nikkei -0.9%
In economic data:
Japan's National CPI increased 3.3% year-over-year (expected 3.4%; previous 3.4%), while National Core CPI rose 3.1% (consensus 3.2%; last 3.3%)
South Korea's Consumer Confidence held steady at 107 (consensus 108)
Singapore's Industrial Production ticked down 0.2% month-over-month (expected 0.2%; previous 2.4%), while the year-over-year reading rose 4.2% (consensus 5.0%; last 3.0%)
In news:
Japan's inflation data came in at its lowest level since April, strengthening the case for the Bank of Japan to step up its easing efforts

Major European indices trade higher across the board. Great Britain's FTSE +0.1%, Germany's DAX +0.1%, and France's CAC +0.7%. Elsewhere, Italy's MIB +0.7% and Spain's IBEX +0.5%
Economic data was limited:
Germany's Import Price Index ticked down 0.1% month-over-month (expected -0.2%; previous -0.4%), while the year-over-year reading fell 1.9% (consensus -2.0%; last -1.7%). Separately, GfK Consumer Climate ticked down to 8.3 from 8.6 (expected 8.5)
French Consumer Confidence held steady at 86, as expected Italy's Business Confidence slipped to 95.1 from 95.4 (expected 95.5)
Among news of note:
German Bunds have been in demand today, dropping the benchmark 10-yr yield to 0.91%, which represents the lowest level since late August

6:27 am: [BRIEFING.COM] S&P futures vs fair value: +6.00. Nasdaq futures vs fair value: +13.00.

6:27 am: [BRIEFING.COM] Nikkei...16,229.86...-144.30...-0.90%. Hang Seng...23,678.41...-89.70...-0.40%.

6:27 am: [BRIEFING.COM] FTSE...9,509.58...-7.30...-0.10%. DAX...9,509.58...-0.40...0.00.

U.S. Stocks Rebound on GDP as Bonds Fall on Pimco Concern

By Callie Bost and Joseph Ciolli Sep 26, 2014 4:38 PM ET

Video @ Market Recap: Down Week for the S&P 500

U.S. stocks rebounded from the biggest decline since July as data showed the fastest economic growth since 2011. Treasuries fell after Bill Gross departed from Pacific Investment Management Co.

The Standard & Poor’s 500 Index jumped 0.9 percent at 4 p.m. in New York, paring its weekly loss to 1.4 percent. The gauge accelerated gains today after climbing back above its average price for the past 50 days. Treasury 10-year yields rose three basis points to 2.53 percent. The Bloomberg Dollar Spot Index added 0.4 percent to extend its highest level since 2010. The Stoxx Europe 600 Index climbed 0.3 percent, reversing earlier losses.

The U.S. economy expanded in the second quarter at the fastest rate since the last three months of 2011 as companies stepped up investment and households boosted spending. About $1.42 trillion has been wiped from the value of global shares this month amid slowing Chinese economic growth and speculation about the timing of U.S. interest-rate increases. Treasuries fell today on speculation that the exit of Gross from Pimco may prompt the world’s biggest manager of bond funds to shift away from U.S. government debt.

“It’s been a volatile day in a volatile week,” Ryan Detrick, a Cincinnati-based market strategist at investment research firm See It Market, said in a phone interview. “With some decent economic news in GDP, we’re now just seeing an oversold bounce as people get in line for the end of the quarter. We kept that beach ball down for a while and now it’s popping back up.”

A customer browses sports shoes displayed for sale at a store in Tokyo. Japan’s... Read More

The S&P 500 fell 1.4 percent this week, its worst loss since Aug. 1, after reaching a record on Sept. 18. The index is down 1 percent in September.

Technology Selloff

Apple Inc., the largest company in the gauge, led a 1.6 percent selloff yesterday and dragged the Nasdaq 100 Index to its worst performance since April. Speculative corners of the market saw bigger declines. The Russell 2000 Index of smaller companies extended its September loss to 5.5 percent yesterday after dropping 6.1 percent in July.

The Nasdaq 100 rebounded 1.2 percent today, its best gain in more than two months, and the Russell 2000 added 0.8 percent. Apple advanced 2.9 percent.

Moving Average

The S&P 500 climbed above its 50-day moving average today after dropping below the level yesterday for the first time since August. The S&P 500 has advanced 7.3 percent this year, extending a bull market that has nearly tripled its level since 2009, amid continued Fed stimulus even as the economic recovery shows signs of strengthening.

“I do think it’s still a buy-the-dips market,” James Liu, global market strategist at JP Morgan Funds in New York, said by phone. The firm oversees about $400 billion in the U.S. “There’s always short-term news that can derail the market. But in the end, the underlying strength of the U.S. market still comes back so you’ve had upward momentum despite the dips.”

The Fed last week maintained a commitment to keep interest rates near zero for a considerable time after completing asset purchases. The Fed also said that the timing could move forward if data continues to exceed expectations. Investors are analyzing reports to assess whether growth is strong enough to withstand higher interest rates.

U.S. GDP rose at a 4.6 percent annualized rate, up from an August estimate of 4.2 percent, Commerce Department data showed. The increase matched the median forecast in a Bloomberg survey of economists. The Thomson Reuters/University of Michigan final September index of sentiment rose to 84.6 from 82.5 a month earlier. The median projection in a Bloomberg survey of economists called for 84.8 after a preliminary September reading of 84.6.

‘Bond Bull’

Treasury 10-year yields rose 3 basis points to 2.53 percent, according to Bloomberg Bond Trader data. Janus Capital said in a statement today that it hired Gross to manage a global bond fund. Treasuries are the biggest holding in the Total Return Fund that was managed by Gross at Pimco.

“He’s been a bond bull for most of his career, and during that time bonds have been in a bull market -- maybe the next Pimco bond managers won’t be as bullish,” said Aaron Kohli, an interest-rate strategist BNP Paribas SA in New York, one of 22 primary dealers that trade with the Fed. “He’s been the face of the bond market for some time.”

In the stock market, Pimco’s Global StocksPLUS & Income Fund slipped 5.7 percent, while the firm’s High Income Fund (PHK) decreased 6.1 percent.

‘Shooting First’

Closed-end funds bore the brunt of the selling because they aren’t subject to the intraday redemption and creation processes that cause exchange-traded funds to hew to the market prices of their underlying assets. For instance, as of yesterday, the Global StocksPlus & Income fund (PGP) traded at a 78 percent premium to its net asset value, while the High Income Fund cost 46 percent more than the value of its bonds.

“A lot of people bought into Pimco because of Bill Gross who was the face of the organization and so they’re shooting first and asking questions later,” Bill Mann, chief investment officer of Alexandria, Virginia-based Motley Fool Asset Management LLC, said by phone.

Janus rallied 43 percent to the highest since October 2008. Allianz SE, the German insurer that owns Pimco, declined 6.2 percent in Frankfurt, the most in almost three years.

Among other stocks moving today, Nike Inc. jumped 12 percent after reporting first-quarter profit that exceeded analysts’ estimates. Micron Technology Inc. added 6.8 percent after a surge in quarterly sales beat projections.

The Chicago Board Options Exchange Volatility Index, the gauge known as the VIX, fell 5.1 percent to 14.85 today, after jumping the most since July yesterday.

The Bloomberg Dollar Spot Index climbed for a sixth day, the longest streak since July, on speculation that U.S. economic growth bolsters the case for the Fed to increase interest rates. The U.S. currency rose 0.5 percent to 109.28 yen as Japan’s government presses ahead with reforms that would allow the nation’s $1.2 trillion pension fund to buy more overseas assets.

European Shares

In Europe, the Stoxx 600 rebounded from a four-week low. The gauge ended the week down 1.8 percent, the most since Aug. 8.

The MSCI Emerging Markets Index slipped 0.1 percent, capping a 2.8 percent drop this week, a third consecutive decline. The ruble depreciated 1.7 percent versus the dollar to a record low. Russian prosecutors filed a suit to regain state ownership of OAO Bashneft, the oil producer controlled by Vladimir Evtushenkov’s AFK Sistema.

West Texas Intermediate oil rose 1.1 percent to $93.54 a barrel, reversing an earlier loss of as much as 0.3 percent, on speculation stronger economic growth will increase demand.

Oil demand is growing at its slowest since 2011, while the U.S. shale boom means production outside OPEC is rising by the most since the 1980s, the Paris-based International Energy Agency said in a monthly report Sept. 11.

To contact the reporters on this story: Callie Bost in New York at cbost2@bloomberg.net; Joseph Ciolli in New York at jciolli@bloomberg.net

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

Gross to Join Janus After Record Redemptions at Pimco Flagship Fund

By Devin Banerjee and Laura Marcinek Sep 26, 2014 1:28 PM ET

Bill Gross, who co-founded Pacific Investment Management Co. more than four decades ago and rose to become manager of the world’s biggest bond mutual fund, is leaving amid a dispute with management over how to move the firm forward and end record redemptions.

Gross, 70 and until today manager of the $222 billion Pimco Total Return fund, will join Janus Capital Group Inc. (JNS) to oversee a new bond fund, according to a statement today from Denver-based Janus. As of last night, Pimco was considering naming Daniel Ivascyn to succeed Gross as CIO, according to a person familiar with the matter who asked not to be identified because the information is private.

“I look forward to returning my full focus to the fixed income markets and investing, giving up many of the complexities that go with managing a large, complicated organization,” Gross said in the statement. “I chose Janus as my next home because of my long standing relationship with and respect for CEO Dick Weil and my desire to get back to spending the bulk of my day managing client assets.”

The departure of Gross, a legend in bond investing, caps a tumultuous year for Pimco and marks the end of an era for the firm he helped create in 1971. Pimco in January announced the biggest management reorganization in its history after the abrupt resignation of former Chief Executive Officer Mohamed El-Erian, who had clashed with Gross over management of the firm. Gross’s main fund has shrunk from a peak of $293 billion last year as performance trailed rivals and investors turned away from traditional fixed-income strategies in anticipation of rising interest rates.
Photographer: Scott Eells/Bloomberg

Bill Gross, former co-chief investment officer of Pacific Investment Management Co.

‘Fundamental Differences’

“While we are grateful for everything Bill contributed to building our firm and delivering value to PIMCO’s clients, over the course of this year it became increasingly clear that the firm’s leadership and Bill have fundamental differences about how to take PIMCO forward,” Douglas Hodge, Pimco’s CEO, said in a separate statement.

Janus rose 34 percent to $14.93 at 12:45 p.m. in New York, its largest intraday gain since September 2008. Allianz SE, the German insurer that owns Pimco, declined 6.2 percent in Frankfurt, the most in almost three years.

“PIMCO has activated its succession plan and will announce a successor within the next several hours,” Allianz said in a statement at 9:27 a.m. in New York.

Gross knows Janus’s Weil from Pimco, where Weil worked from 1996 to 2010. He served as general counsel at Pimco and later became a manager director and chief operating officer. He was hired to run Janus in January 2010.

‘Right Fit’

“It was not without great thought and deliberation over quite some time that I decided to begin this next chapter,” Gross said in an e-mailed statement from Janus spokesman Steven Shapiro. “It is a time for me to reduce executive and people management responsibilities at a larger firm and focus on the pure aspects of portfolio management at a smaller one. Janus is the right fit at the right time in my career -- and my life.”

Attempts to reach Gross through his assistant were unsuccessful, and he didn’t return e-mails seeking comment.

Janus managed $178 billion in assets as of June. The company has struggled to stem defections even as it expanded the fixed-income team and created another to focus on multi-asset investing.

El-Erian, 56, widely viewed as the successor to Gross, left in March after six years, leaving his dual roles of CEO and co-chief investment officer. He was the first Pimco manager to share the title of investment chief with Gross.

‘So Shocking’

Gross’s move also comes as U.S. regulators probe his Pimco Total Return ETF (BOND), a separate vehicle from the Pimco Total Return mutual fund. The Securities and Exchange Commission is investigating whether Pimco bought many bonds at discounts then marked them up, a person familiar with the matter said this week.

Gross, whose net worth is estimated at $2 billion by the Bloomberg Billionaires Index, has more than $240 million of his own money in Pimco’s closed-end funds, according to data compiled by Bloomberg.

“Gross was a big supporter with his own personal purchases in them and coming out and making comments in the past about how they’re great investments,” Aaron Izenstark, chief investment officer and co-founder of Northbrook, Illinois-based Iron Financial LLC, said by phone. “That’s why it’s so shocking. It’s bringing the unknown into the situation.”

Funds Slide

The funds slipped on the announcement that Gross will leave. The Pimco Corporate & Income Opportunity Fund (PTY) slid 5 percent and the Pimco Income Strategy Fund slumped 4.4 percent.

Pimco’s main fund, Total Return, has returned 3.6 percent this year, trailing 57 percent of peers, according to data compiled by Bloomberg. It had $3.9 billion of net investor withdrawals in August, the 16th straight month of redemptions.

“For Pimco, this raises a real question mark about the stability of the entire organization,” Burton Greenwald, a mutual-fund consultant in Philadelphia, said of Gross’s departure. “Until they show some positive developments, they will have a difficult time raising assets. Whatever momentum they had will be lost.”

Jonathan Grabel, chief investment officer of the Public Employees Retirement Association of New Mexico, said he’s working with his board today to update it of Pimco’s development. Pimco manages a separate account for the pension fund.

“Personnel movements are important with all our managers,” Grabel said in a telephone interview. “We’re looking into the impact, and we have a fiduciary duty to do so.”

(An earlier version of this story corrected Gross’s title at Pimco to chief investment officer from co-chief investment officer.)

To contact the reporters on this story: Devin Banerjee in New York at dbanerjee2@bloomberg.net; Laura Marcinek in New York at lmarcinek3@bloomberg.net

To contact the editors responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net Pierre Paulden, Josh Friedman

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

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

http://www.thestrategylab.com
Phone: +1 708 572-4885
Business Hours: 8am - 5pm est (Mon - Fri)
Skype Messenger: kebec2002
questions@thestrategylab.com
Go Back To TheStrategyLab.com Homepage


Top
 Profile  
 
Display posts from previous:  Sort by  
Post new topic Reply to topic Bookmark and Share  [ 1 post ] 

All times are UTC - 5 hours


Who is online

Users browsing this forum: No registered users and 1 guest


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot post attachments in this forum

Search for:
Jump to:  
cron
Powered by phpBB © 2000, 2002, 2005, 2007 phpBB Group
Translated by Xaphos © 2007, 2008, 2009 phpBB.fr