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 Post subject: October 6th Monday Trade Results - Profit $1240.00
PostPosted: Mon Oct 06, 2014 9:32 pm 
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Joined: Sat Jan 10, 2009 1:06 pm
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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
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Attachment:
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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 @ $1,240.00 dollars or +12.40 points, Emini ES ($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 @ $1,240.00 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=135&t=1904

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

4:25 pm: [BRIEFING.COM] It was a good start for the stock market today and that was about it. The major indices hit their best levels of the session within fifteen minutes of the opening bell and then spent the rest of the morning retracing those gains. The afternoon session produced a half-hearted rebound try, yet the major indices couldn't stake a position on positive ground when the closing bell rang.

Overall losses were modest in scope, which isn't bad given the scope of Friday's gains. However, with the presumed buying catalyst of a weakening dollar in place, more M&A activity, and a surprise announcement from Hewlett-Packard (HPQ 36.87, +1.67) that it is going to split into two companies in an effort to bolster shareholder value, there was likely some disappointment that the stock market didn't do any better than it did.

The quick inclination to sell into the opening strength left buyers on guard that the de-risking move seen at the end of the third quarter may not have yet run its course.

The latter consideration along with technical resistance for the S&P 500 at the 1980 level, a stunning bankruptcy protection filing from GT Advanced Technologies (GTAT 0.80, -10.25), which supplies sapphire glass to Apple (AAPL 99.62, unch), and the underperformance once again of the Russell 2000 (-0.9%) helped keep buying interest in check.

The main pockets of weakness in the market were found in the biotech, transport, and semiconductor spaces. Word from Sunesis Pharmaceuticals (SNSS 1.46, -5.18) that a Phase 3 trial it was conducting failed to meet its primary endpoint sucked the momentum out of the biotech space; Ebola concerns once again weighed on the transports; and a 4.0% drop in Micron (MU 32.57, -1.37) after reports said Samsung is planning to invest close to $15 billion in a new semiconductor plant pressured the Philadelphia Semiconductor Index (-0.8%).

Separately, the energy sector (+0.1%) had a roller-coaster day of trading, vacillating with oil prices, which dipped below $89/bbl before finishing the day at $90.57/bbl. The rebound in oil prices coincided with a break lower in the U.S. Dollar Index (85.71, -0.98) in afternoon trading. The greenback was weak throughout the session, yet its losses accelerated in the afternoon action on what was considered to be a profit-taking move following a huge run in the third quarter.

Stock sector moves were pretty limited in scope to both the upside and the downside. The biggest winner was the telecom services sector (+0.4%) while the biggest loser was the consumer discretionary sector (-0.6%). The limited moves fit the standing of the S&P 500 at the closing bell.

There wasn't any economic data out of the U.S. today, but resonating in the background was a report that the World Bank cut its 2014 and 2015 GDP views for China and news that German factory orders declined 5.7% in August.

Notwithstanding the limited change in the S&P 500, the CBOE Volatility Index (VIX 15.29, +0.74) jumped 5.1% on Monday.
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Nasdaq Composite +6.7% YTD
S&P 500 +6.3% YTD
Dow Jones Industrial Average +2.5% YTD
Russell 2000 -5.9% YTD

3:40 pm: [BRIEFING.COM]

Gold fell overnight, only to rally strongly after the pit session opened, breaking back above the important $1,200 level closing 1.2% higher and testing levels from last Friday where the metal began its sell-off following jobs data that topped consensus estimates.
Silver rose from last Friday's fresh 4+ year lows, halting recent declines in the metal and closing 2.3% higher, currently holding in the upper range of Thursday's trading session.
Crude oil traded in a mixed range throughout the pit session, falling as low as $88.76 before eventually rallying and closing up 0.65% near the HoD. That said. oil remains near its lowest levels since last April.
Natural gas trended lower throughout the session, falling 3.5%, based on forecasts that call for milder weather, which could put a dent in heating demand, accelerating stockpile gains.

3:00 pm: [BRIEFING.COM] Heading into the final hour, it's a tug-of-war between the bulls and bears to see where this market ends today. The bears hold a slight edge at the moment with the S&P 500 trading just below where it started the day.

Separately, the Russell 2000 has shown some fight in the afternoon trade. It is still down 0.3% for the session, yet it was down as much as 1.0% at its worst level reached shortly before 12:00 p.m. ET.

There hasn't been any economic data out of the U.S. to focus on today, but there will be a few reports on Tuesday: the JOLTS-Job Openings report for August and the Consumer Credit report for August. The former is studied carefully by Fed Chair Yellen and will be watched closely by the market because of that.

As an aside, the dollar's performance has been watched closely all day today. The U.S. Dollar Index is down 0.8% and is trading at its lows for the session. We've seen oil prices (90.38, +0.64) pop to the highs in conjunction with the Dollar Index slipping to its lows.

2:30 pm: [BRIEFING.COM] Selling efforts were steady throughout the morning, yet they have dissipated in afternoon action. Consequently, the major indices have managed to pare their losses, the worst of which were seen right around the end of the New York lunch hour.

After trading in a very tight range for the last hour or so around the 1966 level, the S&P 500 popped back into positive territory and is now flat for the session.

There hasn't been a news catalyst to account for the pop, but it does coincide with the U.S. Dollar Index (86.10, -0.59) trading near its worst levels of the day and oil prices moving back toward their best level of the day ($89.98, +0.22).

As an aside, the energy sector (+0.5%) has regrouped along with oil prices and is trading near its bets levels of the day, providing some influential support in the afternoon rebound try.

2:00 pm: [BRIEFING.COM] Red figures next to the major indices continue to accent the coloring found on stock monitors today, yet there is still plenty of green to be found. To that end, advancers are actually outlegging decliners at the NYSE by a roughly 8-to-7 margin.

It's a different story at the Nasdaq where decliners lead advancers by an 8-to-5 margin. A weak showing from the biotech group and small-cap technology issues is playing a part in the lopsided trade.

The iShares Nasdaq Biotechnology ETF (IBB 272.01, -3.32) is down 1.2%. Separately, the Philadelphia Semiconductor Index is down 1.0%. A 4.0% drop in Micron (MU 32.60, -1.34), which follows the news that rival Samsung is planning to invest close to $15 billion in a new chip plant, has been an influential weight on the SOX Index.

With today's decline, the SOX index is down 5.3% over the last month after being up more than 20% for the year a month ago.

1:25 pm: [BRIEFING.COM] The stock market is down right now, yet it's a stretch to say that it is down and out. Overall losses remain modest in scope, even if they register as somewhat larger on the scale of disappointment that Friday's rally effort could not be sustained.

There is ample time still for a comeback in today's market action, yet the character of the leadership will need to improve along with the behavior of the small-cap stocks to trigger a more convincing turn. The energy sector (+0.1%) is back in positive territory, which is a start.

The Russell 2000 is down 0.7% after being up 0.3% shortly after the start of trading.

Looking in at the Dow, only eight of its 30 components are sporting a gain at this time. The big winner is IBM (189.01, +0.34). Conversely, the biggest laggard is Nike (NKE 88.84, -1.45).

1:00 pm: [BRIEFING.COM] The stock market opened the day on an upbeat note... and then it was pretty much downhill from there. What happened? The answers are debatable, yet some identification points have included the following:

Germany's DAX Index coughing up almost all of a 1.1% gain in the last few hours of its trading session
The S&P 500 running into resistance as it approached 1980
The underperformance of the Russell 2000 (-0.6%)
A stunning bankruptcy filing by GT Advanced Technologies (GTAT 1.43, -9.62), which is a sapphire glass supplier to Apple (AAPL 99.65, +0.03)
A reversal in both oil prices ($89.48, -0.26) and the energy sector (-0.3%), both of which showed early strength
The lack of buying response to a weaker dollar today following recent reports that the dollar's strength has been a headwind for the market; and
A general sense of disappointment over the lack of follow through from Friday's rally and the continued inclination to sell into strength

There are probably some other reasons that could fit on the aforementioned list. From our vantage point, the biggest influence is simply the lack of follow through from Friday.

Hope was high at Friday's closing bell that the stock market was at the end of its "mini-correction," yet the weakness today has stirred renewed concerns that the de-risking after a big run by the market has not run its course in the face of weakening global economic activity.

Right now, every sector is down, with the exception of the telecom services sector (+0.2%). Its strength, however, is rooted largely in the outperformance of one issue -- Verizon (VZ 49.96, +0.25), which is reportedly going to end its Redbox instant streaming service.

In other corporate news, Hewlett-Packard (HPQ 37.05, +1.85) said it is going to split into two companies, one with a focus on enterprise space and the other with a focus on personal systems and printing, while Becton, Dickinson (BDX 124.03, +8.19) said it will acquire CareFusion (CFN 56.74, +10.58) in a $12.2 billion cash-and-stock deal.

While both announcements have provoked some company-specific buying interest, neither has been able to make the impact on the broader market they seemed to be making before the open.

The major indices are all currently probing their lows of the day as the New York lunch hour comes to a close.

12:25 pm: [BRIEFING.COM] After a progressive slide through the morning hours, the S&P 500 garnered a measure of support at the 1960 level that enabled it to move off its worst levels of the session. Still, with the lack of leadership, a rebound try has been slow to develop.

A news item that helped distract sellers from their efforts was a Bloomberg article suggesting Glencore Plc might be eyeing a merger with Rio Tinto (RIO 50.67, +3.50) in the next year. That information was sourced to "people familiar with the situation."

Obviously, that deal might never come to fruition, yet the mere thought of it served as a reminder that M&A activity is likely to remain hot given that there are many companies armed with a lot of cash and high stock prices that make for some commutable currency.

Looking elsewhere, it's worth noting that the Treasury market has perked up as the stock market has struggled to maintain the positive disposition seen at the start of trading. The 10-yr note is up five ticks and its yield has dipped two basis points to 2.42%.

12:00 pm: [BRIEFING.COM] Shortly after the start of today's trading, every sector was up. As we move into the New York lunch hour, every sector, except one, is down.

The lone exception is the telecom services sector (+0.3%). Verizon (VZ 50.00, +0.29), which is reportedly going to end its Redbox instant streaming service, is spearheading the sector's outperformance.

Otherwise, today's trade will be heralded as a disappointment with two of the trading cues we highlighted before the open -- the behavior of the leadership stocks and the small-cap stocks -- turning the market on end following an upbeat start.

One of the more peculiar developments, with oil prices continuing to slide, is the underperformance of the Dow Jones Transportation Average (-0.9%). Airlines are leading the slide, ostensibly on concerns about the spread of Ebola cutting down on air travel.

11:30 am: [BRIEFING.COM] Participants are finding it difficult to get a handle on today's market, which is ad-libbing now from the pre-open script of strength.

Some of that is owed to the S&P 500 running into resistance just shy of the 1980 level; some of that is owed to the small-cap Russell 2000 (-0.5%) being unable to build on Friday's rebound effort; and some of that is owed to the weak price action despite a weaker dollar (US Dollar Index is down 0.5%).

Recall that in past sessions the dollar's strength was cited as a reason for why the major indices were on the defensive, because the stronger dollar is regarded as a headwind for the earnings prospects of multinational companies. Well, things have shifted today in terms of the dollar, yet there hasn't been a pickup in buying interest. Consequently, some concerns are simmering that there is still an inclination to reduce risk exposure by reducing equity weightings.

In any event, the major indices are mixed at the moment, laboring under the weight of relatively weak leadership.

11:00 am: [BRIEFING.COM] The major indices are well off their opening highs. The Nasdaq and S&P 500 have even traded into red figures.

One of the more stunning developments today was the announcement a short time ago from GT Advanced Technologies (GTAT 1.75, -9.30) that it is filing for Chapter 11 bankruptcy protection. GT Advanced is a sapphire glass supplier to Apple (AAPL 100.07, -0.45).

Separately, there has been a notable reversal in both the health care (-0.1%) and energy (-0.2%) sectors. They were leaders soon after the start of trading, yet both have rolled over and have acted as a drag on the major indices. At the same time, the Russell 2000 (-0.1%) has been unable to maintain a posture above the unchanged mark.

The pullback in the energy sector has coincided with a striking pullback in crude oil futures ($89.04, -$0.70), which touched $90.40 early this morning and are down despite some weakness in the U.S. Dollar Index (86.28, -0.41). The dip in the greenback would presumably be supportive for dollar-denominated commodities like oil, yet the lack of response today is being looked at as a trade of concerns about an excess supply situation in the face of slowing global activity.

10:35 am: [BRIEFING.COM]

The dollar index is trading lower this morning, which is giving a boost to select commodities.
Coffee futures is leading the pack today, but not because of the dollar index.
Concerns over coffee supply has continued out of Brazil due to dry/unfavorable weather. Today, coffee futures are +6.6% at $2.20/lb on this catalyst.
Since Sept 19, coffee futures are up 24%.
Crude oil is also certainly not one of them as the energy component just sold off to a new low for the day at $88.94/barrel.
Nov crude oil is still sitting near that level and is currently -0.9% at $88.93/barrel
Natural gas futures have been in the red all day and have been sitting near its LoD. Nov NG is trading 3% lower in current action at $3.92/MMBtu
Gold and silver, on the other hand, have been slowly climbing higher this morning.
In recent trade, gold briefly rose above $1200/oz to $1200.50/oz. Silver is near its HoD as well.
Dec gold is currently +0.5% at $1199.30/oz, while Dec silver is +1.5% at $17.09/oz
Dec copper is +1 at $3.03/lb

10:05 am: [BRIEFING.COM] The major indices got going when the opening bell rang. The outperformance, though, has been rooted in blue-chip issues.

Strikingly, the Russell 2000 is trailing the action, up just 0.2% against a a 0.4% bump for the S&P 500. The underperformance of the small cap stocks isn't a new phenomenon (at least not this year) as the Russell 2000 is down 4.9% year-to-date.

Another laggard is the biotech sector. The iShares Nasdaq Biotechnology ETF (IBB 274.53, -0.80) is down 0.3%. Industry component Sunesis Pharmaceuticals (SNSS 2.10, -4.54) is getting pummeled after announcing its pivotal Phase 3 VALOR trial did not meet its primary endpoint.

The energy sector (+1.0%), which has been the broader market's biggest laggard over the last three months (down 10.6%), is the best-performing sector in the early going as it benefits from some bargain hunting interest and a UBS upgrade of ConocoPhillips (COP 75.49, +0.72) to Neutral from Sell.

9:45 am: [BRIEFING.COM] As expected, the stock market got a decent boost when the opening bell rang, aided by broad-based buying interest.

Every sector is up at the moment, yet no sector has gained more than 1.0%. The telecom services (+0.7%), industrials (+0.5%), and health care (+0.5%) sectors are the early pacesetters.

The health care sector has been underpinned by Becton, Dickinson's (BDX 123.50, +7.66) $12.2 billion cash and stock acquisition of CareFusion (CFN 56.94, +10.77).

Hewlett-Packard (HPQ 36.63, +1.43) is an early leader, too, benefiting from the news that it will split into two companies -- one with a focus on the enterprise and the other with a focus on personal systems and printing.

9:17 am: [BRIEFING.COM] S&P futures vs fair value: +7.80. Nasdaq futures vs fair value: +11.50. Futures traders have held the line through overnight trading hours and into the early morning. With the cash market's open roughly 15 minutes away, the S&P futures are trading 0.4% above fair value.

By and large, the S&P futures traded in a range between 1966 and 1970 in overnight action, which is to say they have been above fair value throughout the overnight trade.

Conversely, the U.S. Dollar Index traded steadily lower throughout the overnight trade. It has bounced a bit in the last hour or so, but remains down 0.3%. A trading dynamic that will be closely watched is how the equity market holds up in the event the U.S. Dollar Index continues to rebound.

8:59 am: [BRIEFING.COM] S&P futures vs fair value: +7.00. Nasdaq futures vs fair value: +9.80. The S&P 500 futures trade seven points above fair value.

Markets ended mixed across Asia. Hong Kong pro-democracy protests proceeded for an 11th day.

Economic data was limited:
Australia's ANZ Job Advertisements slowed to 0.9% MoM (1.6% MoM previous).


-----

Japan's Nikkei gained 1.2% despite a stronger yen. Fujifilm rocketed up 5.1% on hopes its Avigan treatment will cure Ebola. The Bank of Japan opines tonight.
Hong Kong's Hang Seng added 1.1% and reclaimed the 200 dma. Casino shares saw strong gains as Macau gaming revenues matched estimates. Sands China and Galaxy Entertainment surged 7.1% and 6.6%, respectively.
China's Shanghai Composite remained closed for Golden Week.
India's Sensex was closed for Eid al-Adha.

The major European bourses are higher across the board.

Economic data was light:
German factory orders (-5.7% MoM actual v. -2.4% MoM expected) saw their biggest drop since March 2009.


-----

Germany's DAX is higher by 1.2%. Financials are among the top performers with Commerzbank up 2.7% and Deutsche Bank higher by 1.7%.
France's CAC lags the rest of the region, up 0.6%. Transportation stocks are bid as Renault and Airbus trade higher by 1.5% and 1.1%, respectively.
Britain's FTSE holds a solid 0.7% advance. Miners led as Kazakhmys and Antofagasta are both up more than 3.0%.

8:34 am: [BRIEFING.COM] S&P futures vs fair value: +6.00. Nasdaq futures vs fair value: +10.00. S&P futures are off their highs of the morning but remain entrenched in positive territory. At the current level, they are trading approximately 0.3% above fair value, so the cash market is expected to start today's session on a positive note.

With the increased volatility of late, the manner in which the market opens won't be regarded as carefully as the manner in which it closes. Participants will be anxious to see if Friday's post-employment report rally was built to last or whether it will be met with a propensity to sell into the strength.

There isn't any real interference on the headline front that could be heralded as a clear-cut selling catalyst in the early-going, so the behavior of leadership stocks and the small-cap issues will likely be looked at for some directional cues after the opening uptick.

8:00 am: [BRIEFING.COM] S&P futures vs fair value: +5.20. Nasdaq futures vs fair value: +8.00. U.S. equity futures are moving higher, maintaining the bullish bias that kicked in after Friday's post-employment report rally. News from Hewlett-Packard (HPQ) that it will be splitting into two companies, M&A activity that features a $12.2 billion acquisition of CareFusion (CFN), and a relative lack of geopolitical noise over the weekend have helped drive the positive disposition in the early going.

There is no economic data on today's schedule.

In U.S. corporate news of note:

Hewlett-Packard (HPQ 37.50, +2.30): trading up 6% after announcing plans to separate into two new publicly traded Fortune 50 companies - one comprising HP's market-leading enterprise technology infrastructure, software and services businesses, which will do business as Hewlett-Packard Enterprise, and one that will comprise HP's market-leading personal systems and printing businesses, which will do business as HP Inc. and retain the current logo.
CareFusion (CFN 57.95, +11.78): up 25% on news Becton, Dickinson (BDX) will acquire CareFusion for $58.00 per share in cash and stock, or a total of $12.2 billion
Sunesis Pharmaceuticals (SNSS 2.35, -4.29): getting slammed in pre-market action after results from pivotal Phase 3 VALOR trial of Vosaroxin and Cytarabine in patients with first relapsed or refractory acute myeloid leukemia did not meet primary endpoint
Conns, Inc. (CONN 35.81, +2.87): up 9% on news company will be exploring strategic alternatives, including a possible sale

Reviewing overnight developments:

Asian markets were mixed. Japan's Nikkei +1.2%, Hong Kong's Hang Seng +1.1%, South Korea's KOSPI -0.4%. China's Shanghai Composite remained closed for Golden Week.
Participants did not receive any economic data of note
In news:
World Bank tempered its growth outlook for China, noting it expects 7.4% GDP growth in 2014 and 7.2% growth in 2015
Hong Kong protests continue, yet civil servants able to go back to work at government offices

Major European indices are higher. Germany's DAX index +1.0%, France's CAC 40 +0.3%, and England's FTSE 100 +0.5%.
Economic data was limited to just two releases:
Eurozone Sentix Investor Confidence fell to -13.7 from -9.8 (expected -11.5)
Germany's Factory Orders declined 5.7% in August (consensus -2.5%; prior 4.9%)
In news:
Wall Street Journal reports, citing EU officials, that France's 2015 budget could be rejected by the EU because its projected deficit is too high

6:21 am: [BRIEFING.COM] S&P futures vs fair value: +4.00. Nasdaq futures vs fair value: +9.00.

6:20 am: [BRIEFING.COM] Nikkei...15,890.95...+182.30...+1.20%. Hang Seng...23,315.04...+250.50...+1.10%.

6:20 am: [BRIEFING.COM] FTSE...6,542.35...+14.60...+0.20%. DAX...9,274.67...+79.00...+0.90%.

Gold Futures Jump Most in Two Months After Dollar Slumps

By Joe Deaux and Laura Clarke Oct 6, 2014 4:09 PM ET

Gold rose the most in two months as the dollar headed for the biggest drop in almost a year, reviving the metal’s appeal as an alternative investment after prices touched a 2014 low. Silver jumped the most in 15 weeks.

The dollar fell as much as 0.9 percent against a basket of 10 currencies as uneven U.S. labor-market data fuels speculation on when the Federal Reserve will raise interest rates. On Oct. 3, the greenback reached a four-year high as gold slumped below $1,200 for the first time since Dec. 31.

“The dollar drifting lower is adding support to gold,” Ole Hansen, the head of commodity strategy at Saxo Bank A/S in Copenhagen, said in a telephone interview. “Almost all of gold’s weakness we’ve seen has been a strong-dollar move.”

Gold futures for December delivery gained 1.2 percent to settle at $1,207.30 an ounce at 1:45 p.m. on the Comex in New York, the biggest increase since Aug. 6. The price has dropped 7.8 percent in the past 12 months.

From December 2008 to June 2011, gold jumped 70 percent as the Fed bought debt and held borrowing costs at an all-time low to bolster the economy. Policy makers are considering the timing for the first rate increase since 2006 amid signs the economy is recovering.

A customer tries on gold bangles inside a Lukfook Jewellery store in Macau, China.

“Gold has held up relatively well compared to the other precious metals but, in our view, remains vulnerable,” Barclays Plc analysts including Suki Cooper said in a note. The bank said it expects the Fed to start increasing rates in June, “earlier than current market pricing of October 2015.”

Job Gains

On Oct. 3, the dollar capped the seventh straight week of gains, the longest rally since June 2010, after a government report showed employers in the U.S. added more workers than forecast and the unemployment rate fell to the lowest since July 2008.

At the same time, the participation rate, which measures the number of Americans employed or looking for a job as a share of the working-age population, fell to the lowest since February 1978. Average hourly earnings were unchanged.

China, the world’s largest consumer of gold, ends a week-long national holiday on Oct. 8.

Silver futures for December delivery gained 2.4 percent to $17.225 an ounce, the biggest gain since June 19. On Oct. 3, the price touched $16.64, the lowest since March 26, 2010. The metal has dropped 21 percent in the past 12 months.

On the New York Mercantile Exchange, platinum futures for January delivery gained 1.8 percent to $1,249.20 an ounce, the biggest gain since July 1.

Earlier, the price touched $1,186.50, the lowest since July 31, 2009, amid concern that demand is dwindling from Europe to China. The price has dropped 10 percent in the past 12 months.

Palladium futures for December delivery advanced 1.5 percent to $766.10 an ounce. Earlier, the metal touched $735, the lowest since Feb. 27. The price has climbed 9.1 percent in the past 12 months.

To contact the reporters on this story: Joe Deaux in New York at jdeaux@bloomberg.net; Laura Clarke in London at lclarke24@bloomberg.net

To contact the editors responsible for this story: Patrick McKiernan at pmckiernan@bloomberg.net

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

Best Regards,
M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
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