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 Post subject: October 31st Friday Trade Results - Profit $1190.00
PostPosted: Fri Oct 31, 2014 12:54 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 @ $1,190.00 dollars or +11.90 points, Emini ES ($ES_F) futures @ $0.00 dollars or +00.00 points, Light Crude Oil CL ($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 @ $1,190.00 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

Trade Log: 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=135&t=1923

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=248&t=2530

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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

Shares jump, yen slumps as BOJ ramps up stimulus

NEW YORK (Reuters) - Global equity markets surged more than 1 percent and the yen fell to a nearly seven-year low against the dollar on Friday after the Bank of Japan surprised financial markets by ramping up its massive economic stimulus programme.

The unexpected jolt from the BOJ led the dollar to post its biggest daily gain against the yen in 18 months, while driving gold and silver to their lowest since 2010.

The stronger dollar also pushed Brent crude to notch its steepest monthly decline, about 9 percent, since May 2012 as the oil benchmark traded below $85 a barrel for much of the session.

Equity markets surged as the BOJ decision to buy more assets helped ease concerns about the end of the U.S. Federal Reserve's stimulus programme and the European Central Bank's reluctance thus far to engage in large-scale bond-buying.

The BOJ's board voted 5-4 to accelerate its buying of government bonds, while tripling its purchases of exchange-traded funds and real-estate investment trusts.

Also, Japan's $1.2 trillion (0.74 trillion pound) Government Pension Investment Fund announced new portfolio allocations that will double its holdings of domestic and foreign stock holdings.

"It's not just the (BOJ's) easing, but the asset allocation from the pension plan is of course also helpful," said Paul Zemsky, chief investment officer of multi-asset strategies and solutions at Voya Investment Management in New York.

"Economic growth (in the United States) is looking pretty good, earnings are good ... we will end the year certainly closer to 2,100 than 2,000 on the S&P 500."

MSCI's all-country world equity index rose 1.1 percent, while the FTSEurofirst 300 (.FTEU3) index of top European shares gained 1.84 percent, to close at 1,351.96. In Tokyo, the Nikkei stock index (.N225) soared 4.8 percent.

On Wall Street, both the Dow Jones industrial average and the S&P 500 index posted record closing highs, while the Dow also hit a record intraday high. In a late-day surge the S&P hit a peak just 1.08 points away from setting a new intraday high.

The Dow Jones industrial average (.DJI) closed up 195.1 points, or 1.13 percent, to 17,390.52. The S&P 500 (.SPX) gained 23.4 points, or 1.17 percent, to 2,018.05 and the Nasdaq Composite (.IXIC) rose 64.60 points, or 1.41 percent, to 4,630.74.

The dollar climbed as far as 112.47 yen (JPY=), its highest since December 2007, for its best day since April 2013. The greenback pared some gains but still rose 2.87 percent to 112.33 yen.

The euro jumped to a six-week high against the yen (EURJPY=R) of 140.70 yen and fell 0.67 percent to $1.2528 (EUR=) against the dollar.

The dollar index (.DXY), a measure of the greenback against six major currencies, rose 0.86 percent to 86.886.

U.S. Treasury debt prices fell as investors moved away from safe-haven bonds and grew more optimistic about prospects for the world's largest economy.

Benchmark 10-year Treasury notes fell 7/32 in price to yield 2.3317 percent.

Brent for December (LCOc1) fell 38 cents to settle at $85.86 a barrel. U.S. crude (CLc1) settled down 58 cents at $80.54.

Spot gold (XAU=) slid as much as 3 percent to its lowest since July 2010 at $1,161.25 an ounce in early trade. U.S. COMEX gold futures (GCZ4) settled down 2.25 percent at $1,171.6.

3:30 pm: [BRIEFING.COM] Gold traded lower overnight and took another leg down on the personal income/personal spending data released this morning; futures hit a LoD of 1160.5, but have recovered slightly, now trading around an important level of support ~1170. Futures are now down 2.3% to $1170.60/oz.

Silver continues to trade at a 4.5 year low following yesterday's big tumble, and futures today traded below $16, briefly hitting a LoD of 15.635. Futures are currently down 1.9% to $16.12/oz.

Crude breached $80 a barrel for a short time today, hitting a LoD of $79.55 shortly after the personal spending/income data was released. Since then, futures have been mostly rangebound. Futures are currently down 0.7% to $80.59/barrel.

Natural gas reached a HoD of $3.955 in early morning trading, but futures have since trended lower, breaking down to another leg lower about an hour ago but bounced off a level of support ~3.834. Futures are now higher by 1.2% to $3.871.

3:00 pm: [BRIEFING.COM] The S&P 500 trades higher by 0.9% with one hour remaining in the final October session.

Although the benchmark index enters the last hour of action near its opening level, the same cannot be said for the biotechnology group. The iShares Nasdaq Biotechnology ETF (IBB 295.78, -0.91) was up 2.2% at the start of the session, but a steady retreat throughout the day has the ETF trading lower by 0.3%. Meanwhile, the health care sector has narrowed its gain to 0.2%.

Elsewhere, another high-beta group-chipmakers-remains strong with the PHLX Semiconductor Index higher by 3.3% into the last hour.

2:30 pm: [BRIEFING.COM] Stocks remain near their highs with the S&P 500 up 0.9%.

Today's session marks the end of October, which has been a volatile month for the market. However, despite the intramonth volatility, all of the major averages are on track to end October in positive territory.

Meanwhile, seven of ten sectors hold month-to-date gains between 1.5% (technology) and 7.8% (utilities) while energy, materials, and telecom services are on course to end in the red. The telecom services sector has surrendered 0.4% in October while energy and materials hold respective October losses of 3.6% and 3.2%.

1:55 pm: [BRIEFING.COM] Afternoon action continues with the S&P 500 (+0.9%) trading within five points of its session high.

Five of six cyclical sectors trade ahead of the broader market while the consumer discretionary sector (+0.8%) trails. Starbucks (SBUX 75.70, -1.62) is partially responsible for the underperformance while homebuilders also lag with the iShares Dow Jones US Home Construction ETF (ITB 24.00, -0.04) down 0.2%. Meanwhile, today's leading sector-technology (+1.5%)-remains not far below its best level of the day.

Elsewhere, Treasuries have been climbing off their intraday lows for the past three hours. The 10-yr yield has narrowed its increase to two basis points at 2.32%.

1:25 pm: [BRIEFING.COM] The major indices continue to hold the bulk of today's gains, which are rooted almost entirely in another monetary policy fix that came courtesy of the Bank of Japan.

The central bank put has kept a floor under the market for the last six years and it has done so again, not only today but since the middle of October.

Remarkably, with today's gain the S&P 500 has wiped out everything it lost in a 9.8% slide between its high on September 19 and its low on October 15. If it can maintain its current level, it will establish a new, all-time closing high. The number to beat in that respect is 2011.36, which was reached on September 18.

At the moment, the utilities sector (-0.1%) is the only sector not contributing to the record-setting effort.

1:00 pm: [BRIEFING.COM] The major averages hold solid midday gains with the Nasdaq Composite (+1.3%) in the lead. The S&P 500 (+1.0%) follows not far behind with nine groups trading in the green.

Equities surged out of the gate after the Bank of Japan boosted its asset purchasing program to JPY80 trillion from JPY50 trillion. The central bank said it will now target average maturities between seven and ten years (up from 7 years) and buy ETFs up to an annual amount of JPY3 trillion (up from JPY1 trillion).

The move pressured the yen, sending the dollar/yen pair to a session high just below the 112.50 level. Currently, the pair trades near 112.00 after ending yesterday's cash session near 108.80.

Conversely, the Dollar Index (86.86, +0.71), which is higher by 0.8%, has benefitted from weakness in the yen. In turn, the dollar strength has weighed on dollar-denominated crude oil futures. The energy component is lower by 1.2% at $80.13/bbl.

Crude weakness pressured the energy sector (+1.1%) at the start, but the growth-sensitive group has caught up to the market. Despite today's outperformance, the sector is on track to register an October loss of 3.9%.

Elsewhere among cyclical sectors, technology (+1.5%) holds the lead amid significant strength in chipmaker shares. Intel (INTC 33.81, +1.23) has surged 3.8% to erase the bulk of yesterday's loss while the broader PHLX Semiconductor Index is higher by 3.5%. The Index was down almost 15.0% for the month on October 15, but is now flat since the end of September.

Chipmakers have contributed to the relative strength in the Nasdaq while biotechnology has been a reluctant participant in the rally. The iShares Nasdaq Biotechnology ETF (IBB 298.41, +1.71) gapped up at the start, but has been retreating steadily from its early high. The ETF remains higher by 0.6% while the health care sector trades up 0.7%.

On the earnings front, GoPro (GPRO 78.46, +10.10) and LinkedIn (LNKD 226.20, +23.30) hold respective gains of 14.8% and 11.5% after reporting better than expected results.

Treasuries are near their lows with the 10-yr yield up three basis points at 2.34%.

Economic data included Personal Income/Spending, Core PCE Prices, Employment Cost Index, Chicago PMI, and Michigan Sentiment:

Personal income increased 0.2% in September, down from a 0.3% increase in August, while the Briefing.com consensus expected an increase of 0.3%
Personal spending declined 0.2% in September after increasing 0.5% in August, while the consensus expected an increase of 0.1%
Core PCE prices rose 0.1%, which is what the Briefing.com consensus expected.
Employment Cost Index rose 0.7% in Q3 2014 after increasing by the same amount in the second quarter, while the Briefing.com consensus expected an increase of 0.5%
Wages and salaries accelerated, up 0.8% in the third quarter after a 0.6% gain in the second quarter
Benefits spending rose 0.6% in Q3 after increasing 1.0% in Q2
Chicago PMI for October slipped to 60.5 from 60.5, while the Briefing.com consensus expected a decrease to 60.0
The University of Michigan Consumer Sentiment report for October came in at 86.9, while the Briefing.com consensus expected the reading to be hold at 86.4

12:30 pm: [BRIEFING.COM] Equity indices continue holding solid gains with the S&P 500 up 0.9%. The benchmark index has enjoyed a banner week, climbing 2.4% since last Friday. That advance has allowed the S&P to overcome its October loss, leaving the index higher by 2.0% for the week.

Elsewhere, the price-weighted Dow, which is on track to add 1.8% in October, has essentially kept pace with the S&P 500, while the Nasdaq is on pace to end October with a 2.8% gain.

However, all of those gains pale in comparison to the Russell 2000, which has surged just over 6.0% since the end of September.

12:00 pm: [BRIEFING.COM] The stock market remains near its best level of the day with the top-weighted sector in the lead. Meanwhile, the second-largest sector-financials (+1.1%)-is the second-best performer, extending its October gain to 2.7% versus a 2.1% gain for the S&P 500.

Last evening, Citigroup (C 53.50, +0.34) announced it will adjust its Q3 results to reflect a $600 million legal charge. The news pressured the stock after hours, but today's broad-based advance has saved it from trading in the red. Citigroup has added 0.6% while other major sector components like JPMorgan Chase (JPM 60.37, +0.98) and Wells Fargo (WFC 52.97, +0.51) hold respective gains of 1.7% and 1.0%.

On a separate note, the iShares Nasdaq Biotechnology ETF (IBB 297.72, +1.02) has continued its retreat from opening highs. The ETF is now higher by 0.3%.

11:25 am: [BRIEFING.COM] Equity indices have added to their gains with the S&P 500 now up 1.1%. This puts the benchmark index on track to end the day with an October gain of 2.2%.

The overnight policy move from the Bank of Japan boosted overall risk tolerance, which has underpinned high-beta areas like chipmakers (PHLX Semiconductor Index +3.9%). Interestingly, the biotechnology group has not followed the same pattern.

The iShares Nasdaq Biotechnology ETF (IBB 299.79, +3.09) spiked at the start and has spent the first two hours of action in a retreat from its opening high. The ETF has narrowed its advance to 1.0% while the health care sector trades higher by 0.9%.

Like healthcare, the remaining countercyclical sectors lag. The utilities sector (-0.3%) has trimmed its October gain to 7.6% while consumer staples (+0.7%) and telecom services (+0.7%) trail the S&P 500.

11:00 am: [BRIEFING.COM] Unsatisfied with their opening gains, the major averages have extended to new highs for the session. The S&P 500 is now up 1.0% while the Nasdaq Composite and Russell 2000 outperform with gains close to 1.4% apiece.

All six cyclical sectors trade in the green with energy (+0.7%) representing the lone underperformer on the growth-sensitive side. Meanwhile, the top-weighted sector-technology (+1.5%)-is the top performer amid broad strength. Most large cap sector members sport solid gains while IBM (IBM 164.00, -0.35) lags.

On the flip side, the PHLX Semiconductor Index has rocketed higher by 3.9% to extend this week's gain to 4.8%. The high-beta group has staged an impressive rally off its October 15 low when the index was down nearly 15.0% for the month. Given its current level, the SOX Index is on course to add 0.5% for the month.

10:35 am: [BRIEFING.COM]

The dollar index is showing some nice strength this morning, which is weighing on commodities
WTI oil prices fell back below $80/barrel again, helped by a boost in OPEC production yesterday
Dec crude is currently. Natural gas, meanwhile, is
Precious metals are down again this morning... Dec gold -2.7% at $1165.90/oz, Dec silver -2.7% at $15.99/oz
Dec copper -0.3% at $3.05/lb

9:55 am: [BRIEFING.COM] The S&P 500 (+0.8%) remains near its opening level with eight sectors trading in the green.

The University of Michigan Consumer Sentiment report for October came in at 86.9, while the Briefing.com consensus expected the reading to hold at 86.4.

9:45 am: [BRIEFING.COM] The stock market began the Friday session with strong gains that have sent the S&P 500 (+0.8%) above its record closing high at 2011.36. Eight of ten sectors display opening gains with technology (+1.2%) in the lead. Chipmakers have rocketed out of the gate with the PHLX Semiconductor Index surging 3.3% to wipe out its October decline.

On the flip side, the energy sector (-0.6%) hovers in the red with crude oil trading lower by 1.5% at $79.88/bbl. Dollar strength has pressured crude as the Dollar Index (86.97, +0.82) trades higher by 1.0% with significant strength against the yen. The dollar has added 2.5% versus the yen (112.00) after the Bank of Japan boosted its purchase program to JPY80 trillion from JPY50 trillion.

Treasuries hover in the red, but are well off their lows with the 10-yr yield up one basis point at 2.32%.

Just released, the Chicago PMI for October jumped to 66.2 from 60.5, while the Briefing.com consensus expected a decrease to 60.0.

9:10 am: [BRIEFING.COM] S&P futures vs fair value: +22.40. Nasdaq futures vs fair value: +61.20. The stock market is on track for a sharply higher open with the S&P 500 futures trading 22 points above fair value. Index futures soared overnight after the Bank of Japan boosted its asset purchasing program to JPY80 trillion from JPY50 trillion. The central bank said it will now target average maturities between seven and ten years (up from 7 years) and buy ETFs up to an annual amount of JPY3 trillion (up from JPY1 trillion).

The move weighed on the yen, sending the dollar/yen pair into the 111.90 area after trading near 108.80 at the end of yesterday's cash session. In addition, the news has boosted global equity markets with Japan's Nikkei surging 4.8% to lead the world-wide party.

Domestically, investors have received a series of mostly better than expected results, but stock-specific developments have taken a back seat to the macroeconomic theme.

On the earnings front, Expedia (EXPE 84.10, +3.37), GoPro (GPRO 78.77, +10.52), and LinkedIn (LNKD 222.46, +19.56) are on track to register early gains after beating estimates. On the flip side, Citigroup (C 53.04, -0.11) is on pace to begin in the red after adjusting its Q3 results to reflect a $600 million legal charge.

Treasuries hold losses with the 10-yr yield up three basis points at 2.34%.

The Chicago PMI report for October (consensus 60.0) will cross the wires at 9:45 ET while the day's data will be topped off with the 10:00 ET release of the final Michigan Sentiment survey for October (expected 86.4).

8:55 am: [BRIEFING.COM] S&P futures vs fair value: +20.10. Nasdaq futures vs fair value: +57.70. The S&P 500 futures trade 20 points above fair value.

It was a sea of green across Asia as all of the major averages gained in response to the Bank of Japan unexpectedly increasing its bond buying program to an annual pace of JPY80 trillion from JPY50 trillion in a 5-4 vote. In addition, Japanese pension fund GPIF confirmed it was increasing its equity exposure to 25% while lowering its Japan debt allocation to 35%.

In economic data:
Japan's National CPI rose 3.2% year-over-year while Core CPI increased 3.0%. Both figures matched expectations. Tokyo CPI rose 2.5% (consensus 2.7%; prior 2.9%) and Tokyo Core CPI also increased 2.5%, as expected. Separately, Household Spending fell 5.6% year-over-year (expected -4.3%; previous -4.7%) and the Unemployment Rate ticked up to 3.6% from 3.5%, as expected. Finally, Housing Starts fell 14.3% year-over-year (consensus -17.5%; prior -12.5%).
New Zealand's Building Consents fell 12.2% month-over-month (expected 1.0%; last -0.8%)
Australia's PPI ticked up 0.2% quarter-over-quarter, as expected, while the year-over-year reading rose 1.2% (consensus 2.6%; last 2.3%)
Singapore's Unemployment Rate ticked down to 1.9% from 2.0% (expected 2.0%)

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Japan's Nikkei surged 4.8% to its best levels since November 2007. Real estate developers led the way as Mitsubishi Estate rallied 15.6% and Sumitomo Realty & Development climbed 12.5%.
Hong Kong's Hang Seng added 1.3% to end at a five-week high, but was unable to retake the 50-day average. Casino names paced the advance as Galaxy Entertainment and Sands China gained 5.2% and 3.0%, respectively.
China's Shanghai Composite rose 1.2%, gaining for a fourth straight session as trade put in its best monthly close since February 2012. Financials saw solid gains as Bank of China lifted 3.7% and Industrial & Commercial Bank of China jumped 2.2%.
India's Sensex climbed 1.9% to a record high. Bharti Airtel was the lone decliner, sliding 2.1%, despite yesterday's better than expected quarterly results.

Major European indices trade higher across the board with France's CAC (+2.3%) in the lead. The IMF cautioned Greece against a premature exit from its bailout program, which remains in effect for another year. This comes after yesterday's reports from Germany suggested Greece may not be allowed to apply for another round of bailout funds.

Participants received several data points:
Eurozone CPI ticked up to 0.4% from 0.3% while the Unemployment Rate held at 11.5%. Both figures matched expectations.
Germany's Retail Sales fell 3.2% month-over-month (expected -1.0%; prior 1.5%) while the year-over-year reading rose 2.3% (consensus 0.8%; previous -0.7%)
French PPI came in at 0.5% (consensus -0.1%; previous -0.3%) while Consumer Spending slipped 0.8% month-over-month (expected -0.3%; last 0.9%)
Italy's Monthly Unemployment Rate ticked up to 12.6% from 12.5% (expected 12.4%) while CPI increased 0.1% year-over-year (expected -0.2%; previous -0.2%). Separately, PPI fell 1.7% year-over-year (expected -2.0%; prior -1.7%)

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Great Britain's FTSE is higher by 1.1% with financials among the leaders. Royal Bank of Scotland, London Stock Exchange, and St James's Place are up between 3.0% and 4.1%. Miners Fresnillo and Randgold Resources lag with losses close to 2.0% apiece.
Germany's DAX has jumped 2.0% with all but one component trading higher. Infineon Technologies leads with a gain of 4.9% while BMW and Volkswagen are both up near 2.5%. Linde trades down 2.6% after cutting its profit forecast.
In France, the CAC trades up 2.3%. Financials lead with BNP Paribas and Societe Generale up 3.8% and 3.0%, respectively.

8:32 am: [BRIEFING.COM] S&P futures vs fair value: +21.40. Nasdaq futures vs fair value: +59.00. The S&P 500 futures trade 21 points above fair value.

September personal income increased 0.2%, while the Briefing.com consensus expected an uptick of 0.3%. Meanwhile, personal spending slipped 0.2%, while the consensus expected an uptick of 0.1%.

Core PCE prices rose 0.1%, which is what the Briefing.com consensus expected.

Separately, the Q3 Employment Cost Index rose 0.7%, while the Briefing.com consensus expected an increase of 0.5%.

8:00 am: [BRIEFING.COM] U.S. equity futures trade sharply higher amid upbeat action overseas. The S&P 500 futures hover 22 points above fair value with the gain coming after the Bank of Japan boosted its asset purchasing program to JPY80 trillion from JPY50 trillion. The move weighed on the yen, sending the dollar/yen pair into the 111.70 area after trading near 108.80 at the end of yesterday's cash session. The news has boosted global equity markets with Japan's Nikkei surging 4.8% to lead the way.

Treasuries are modestly lower with the 10-yr yield up two basis points at 2.33%.

September Personal Income (Briefing.com consensus 0.3%), Personal Spending (consensus 0.1%), Core PCE Prices (expected 0.1%), and the Q3 Employment Cost Index (expected 0.5%) will all be released at 8:30 ET while the Chicago PMI report for October (consensus 60.0) will cross the wires at 9:45 ET. The day's data will be topped off with the final release of the Michigan Sentiment survey for October (expected 86.4).

In U.S. corporate news of note:

Anheuser-Busch InBev (BUD 109.04, -0.97): -0.9% following disappointing results.
Citigroup (C 52.60, -0.55): -1.0% after adjusting its Q3 results to reflect a $600 million legal charge.
Expedia (EXPE 83.40, +2.67): +3.3% in reaction to better than expected earnings and revenue.
GoPro (GPRO 78.70, +10.45): +15.3% after beating expectations and issuing strong guidance.
Groupon (GRPN 6.50, +0.51): +8.5% after beating estimates and guiding lower.
LinkedIn (LNKD 214.30, +11.40): +5.6% after beating earnings and revenue estimates.
ON Semiconductor (ONNN 8.98, +0.97): +12.1% after better than expected revenue and above-consensus revenue guidance overshadowed a one-cent miss.
Starbucks (SBUX 74.40, -2.92): -3.8% after its cautious earnings guidance overshadowed a bottom-line beat.

Reviewing overnight developments:

Asian markets ended higher. Japan's Nikkei +4.8%, Hong Kong's Hang Seng +1.3%, and China's Shanghai Composite +1.2%
In economic data:
Japan's National CPI rose 3.2% year-over-year while Core CPI increased 3.0%. Both figures matched expectations. Tokyo CPI rose 2.5% (consensus 2.7%; prior 2.9%) and Tokyo Core CPI also increased 2.5%, as expected. Separately, Household Spending fell 5.6% year-over-year (expected -4.3%; previous -4.7%) and the Unemployment Rate ticked up to 3.6% from 3.5%, as expected. Finally, Housing Starts fell 14.3% year-over-year (consensus -17.5%; prior -12.5%).
New Zealand's Building Consents fell 12.2% month-over-month (expected 1.0%; last -0.8%)
Australia's PPI ticked up 0.2% quarter-over-quarter, as expected, while the year-over-year reading rose 1.2% (consensus 2.6%; last 2.3%)
Singapore's Unemployment Rate ticked down to 1.9% from 2.0% (expected 2.0%)
In news:
In addition to boosting its asset purchases to JPY80 trillion, the Bank of Japan said it will now target average maturities between seven and ten years (up from 7 years) and buy ETFs up to an annual amount of JPY3 trillion (up from JPY1 trillion).

Major European indices trade higher across the board. Great Britain's FTSE +1.4%, Germany's DAX +2.2%, and France's CAC +2.4%. Elsewhere, Italy's MIB +2.0% and Spain's IBEX +2.0%
Participants received several data points:
Eurozone CPI ticked up to 0.4% from 0.3% while the Unemployment Rate held at 11.5%. Both figures matched expectations.
Germany's Retail Sales fell 3.2% month-over-month (expected -1.0%; prior 1.5%) while the year-over-year reading rose 2.3% (consensus 0.8%; previous -0.7%)
French PPI came in at 0.5% (consensus -0.1%; previous -0.3%) while Consumer Spending slipped 0.8% month-over-month (expected -0.3%; last 0.9%)
Italy's Monthly Unemployment Rate ticked up to 12.6% from 12.5% (expected 12.4%) while CPI increased 0.1% year-over-year (expected -0.2%; previous -0.2%). Separately, PPI fell 1.7% year-over-year (expected -2.0%; prior -1.7%)
Among news of note:
The IMF cautioned Greece against a premature exit from its bailout program, which remains in effect for another year. This comes after yesterday's reports from Germany suggested Greece may not be allowed to apply for another round of bailout funds.

6:54 am: [BRIEFING.COM] S&P futures vs fair value: +21.50. Nasdaq futures vs fair value: +57.50.

6:54 am: [BRIEFING.COM] Nikkei...16,413.76...+755.60...+4.80%. Hang Seng...23,998.06...+296.00...+1.20%.

6:54 am: [BRIEFING.COM] FTSE...6,535.36...+71.80...+1.30%. DAX...9,266.31...+151.40...+1.70%.

U.S. Stocks Gain in Week as Benchmark Indexes Hit Records

By Oliver Renick Nov 1, 2014 12:00 AM ET

U.S. stocks rallied for the week, capping a monthly advance and returning benchmark indexes to records, as better-than-estimated earnings and economic data eased concern about the end of Federal Reserve bond buying.

The Standard & Poor’s 500 Index (SPX) and Dow Jones Industrial Average closed at all-time highs on the final session of the week as the Bank of Japan unexpectedly increased stimulus. The Stoxx Europe 600 Index climbed 2.9 percent to pare its worst monthly loss this year, while Japan’s Topix (TPX) soared 7.4 percent to lead Asian (MXAP) equities to a 3.1 percent gain in the week.

The S&P 500 has rallied 8.4 percent since sinking to a six-month low on Oct. 15. Optimism in the economy and better-than-estimated earnings fueled a rebound after the index had tumbled 7.4 percent from its September record on concerns that Europe will slip into a recession and that growth was slowing in China just as the Fed ends its monthly bond buying. The gauge has advanced 9.2 percent this year.

“The buy-the-dip philosophy came back stronger than ever as everybody said the correction is behind us and the opportunity to buy stocks on sale is now,” Brian Peery, co-portfolio manager at Novato, California-based Hennessy Advisors Inc., said by phone. “The snap back happened really quickly, and at this point it’s been earnings-driven. When QE disappears and there isn’t even a blip on the radar in the downside, that’s a confidence boost.”

The S&P 500 rose 2.7 percent to 2,018.05 in the week, topping its Sept. 18 record on the final day. The index added 2.3 percent in October. The Dow average jumped 585.11 points, or 3.5 percent, to 17,390.52 for its best week since January 2013. The Russell 2000 Index surged 4.9 percent for a third weekly gain, while the Nasdaq Composite Index jumped to a 14-year high after a 3.3 percent rally.

Corporate Earnings

The S&P 500 posted its best gain of the week on Oct. 28, rising 1.2 percent, amid improving corporate profits. Adjusted earnings per share have grown 10 percent for the 363 companies in the S&P 500 that have reported third-quarter results so far, according to data compiled by Bloomberg. About 80 percent of them have topped the average analyst estimate.

Equities slipped the next day after the Fed announced the end of its bond buying program. The advance resumed on Oct. 30, after government data showed that U.S. gross domestic product increased at a 3.5 percent annual rate from July through September, topping the median forecast of 3 percent in a Bloomberg survey of economists.

Other reports during the week showed a gain in consumer confidence and better-than-estimated results in surveys of purchasing managers. Government data showed fewer Americans filed applications for unemployment benefits over the past month than at any time in more than 14 years, a sign the strengthening U.S. economy is buoying the labor market.

BOJ Stimulus

Stocks rallied around the world on the week’s final day after Japan’s Government Pension Investment Fund said it will put half its holdings in local and foreign stocks, double previous levels, and invest in alternative assets. The Bank of Japan raised its annual target for monetary expansion to 80 trillion yen ($724 billion) from as much as 70 trillion yen.

The Stoxx 600 closed at a four-week high after its best weekly gain this year. It fell 1.8 percent for the month amid concern the European Central Bank’s asset purchases won’t be enough to revive the region’s economy.

Emerging-market equities capped the biggest weekly gain in seven months with a 3.2 percent rally. Brazil’s Ibovespa surged 5.2 percent in the week as speculation an increase in global liquidity will fuel demand for riskier assets.

Volatility Lull

The Russell 2000 Index (RTY) rallied 6.5 percent in October, for its best month since July 2013, while the Dow average gained 2 percent. The Nasdaq Composite Index jumped 3.1 percent in the month.

The Chicago Board Options Volatility Index (VIX) tumbled 13 percent to 14.03 for a second week of losses. The gauge known as the VIX plunged 47 percent since Oct. 15 when it closed at the highest since June 2012.

All 10 of the main S&P 500 groups advanced in the week. Technology stocks rose 3.3 percent for the biggest advance. Materials producers gained the least as gold sank.

Amgen Inc. rallied 10 percent in the five days to a record. The biotechnology drug company will raise its dividend 30 percent in the first quarter 2015 and plans to buy back as much as $2 billion of stock through the end of next year.

Visa Inc. jumped 13 percent in the week to an all-time high. The world’s largest payments network delivered profit that topped forecasts as spending abroad improved.

MasterCard Inc. rallied 13 percent The second-largest U.S. payments network’s earnings also beat estimates.

EA, Goodyear

Electronic Arts Inc. climbed 13 percent to a six-year high. The producer of the Madden and FIFA video games posted second-quarter sales and profit that topped analysts’ estimates on soaring mobile use of its sports titles.

Goodyear Tire & Rubber Co. rallied 16 percent for the biggest gain in the S&P 500. The tire maker reported earnings that topped analysts’ estimates and said it would buy up to $150 million worth of stock.

Exxon Mobil Corp. and Chevron Corp. climbed more than 2 percent as refinery operations helped boost quarterly profits even as crude prices tumbled.

Nabors Industries Ltd. and Diamond Offshore Drilling Inc. dropped at least 3.5 percent to pace declines among energy producers. West Texas Intermediate oil sank 12 percent in October amid concern supply will outpace global demand.

Gold Slump

Materials producers in the index gained 0.2 percent in the week, trimming a monthly loss to 2.6 percent as precious metals led declines in the Bloomberg Commodities (BCOM) Index.

Newmont Mining Corp. dropped 15 percent in the week, while Freeport-McMoRan Inc. retreated 7.5 percent. Gold and silver slumped to the lowest since 2010, with gold capping its first consecutive monthly losses of the year.

“To a degree, we’ve seen a split-personality market over the past three weeks, with sentiment shifting from gloom and despair to euphoria,” Terry Sandven, chief equity strategist at Minneapolis-based U.S. Bank Wealth Management, which oversees $120 billion, said by phone. “We still think the fundamental backdrop is supportive for equities to grind higher. In addition to earnings increasing, inflation seems to be restrained, valuations are high but not extreme and the list of compelling alternatives to equities is not long.”

To contact the reporter on this story: Michael P. Regan in New York at mregan12@bloomberg.net

To contact the editors responsible for this story: Jeff Sutherland at jsutherlan13@bloomberg.net Jeremy Herron, 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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