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 Post subject: October 17th Friday Trade Results - Profit $2637.50
PostPosted: Fri Oct 17, 2014 3:50 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 @ $200.00 dollars or +2.00 points, Emini ES ($ES_F) futures @ $2,437.50 dollars or +48.75 points, Light Crude Oil CL ($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 @ $2,637.50 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=1913

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

4:10 pm: [BRIEFING.COM] The stock market capped a cautious week with a rally that sent the S&P 500 higher by 1.3%. The Russell 2000 (-0.3%) underperformed, but the small-cap index still ended the week higher by 2.8% versus a 1.0% decline for the S&P 500.

Equities spiked at the start of the session after overnight comments from central bank officials boosted investor sentiment. To that point, European Central Bank executive member Benoit Coeure said that ECB purchases of asset-backed securities are set to begin within days, while Bank of England Chief Economist Andy Haldane also walked the dovish line, saying that recent economic data speaks in favor of delaying the BoE's first rate hike.

The comments were met with a rally across Europe, while U.S. futures spiked to ensure a higher start for the major averages. The Dow, Nasdaq, and S&P 500 spent the first two hours of the session in a steady climb, but reversed from their highs around noon ET and surrendered almost a third of their gains. For its part, the Russell 2000 gapped up at the open and retreated steadily throughout the session.

Interestingly, the early advance received significant support from high-beta areas like chipmakers and biotechnology, but session-long profit taking and the weakness of the small-cap index pressured high-beta groups from their highs.

The iShares Nasdaq Biotechnology ETF (IBB 265.21, +4.23) was up in excess of 2.5% at the start, but narrowed its gain to 1.6% by the close. Meanwhile, the health care sector (+1.6%) settled among the leaders.

Elsewhere, the PHLX Semiconductor Index notched its high during the initial 15 minutes, but narrowed its gain to 0.8% by the close. SanDisk (SNDK 82.80, -2.51) weighed, falling 2.9%, after its cautious guidance overshadowed better than expected earnings. For its part, the tech sector (+1.2%) settled just behind the S&P 500. Most large cap components held up well, but their strength was masked by a 2.6% decline in the shares of Google (GOOGL 522.97, -13.95) after the company reported disappointing quarterly results.

Another cyclical sector-industrials (+2.0%)-spent the day in the lead after General Electric (GE 24.82, +0.57) and Honeywell (HON 90.06, +3.67) reported better than expected results. General Electric beat bottom-line estimates by a penny, which has been a common theme for the conglomerate. Excluding today's report, the past five quarterly results from GE revealed either in-line results or one-cent beats.

Transport stocks also contributed to the strength of the sector with the Dow Jones Transportation Average (+1.5%) boosting this week's gain to 3.2%.

Today's advance caused participants to reduce their hedges, pressuring the CBOE Volatility Index (VIX 22.11, -3.09) to Monday's levels. However, VIX futures remained in backwardation with October contracts demanding the highest premium, which suggests options traders remain on the lookout for turbulence in the near-term.

Treasuries ended in the red with the 10-yr yield climbing four basis points to 2.20%.

Participation received a boost from options expiration with more than a billion shares changing hands at the NYSE floor.

Economic data was limited to Housing Starts/Building Permits and the preliminary reading of the Michigan Sentiment Survey:

Housing starts increased 6.3% in September to 1.017 million from a slightly upwardly revised 957,000 (from 956,000), while the Briefing.com consensus expected an increase to 1.013 million
Single-family construction rebounded after a one-month decline, increasing 1.1% to 646,000 from 652,000 in August
Multifamily housing starts increased 15.6% to 371,000 in September after falling 28.0% in August
The University of Michigan Consumer Sentiment Index increased to 86.4 in the preliminary reading for October from 84.6 while the Briefing.com consensus expected a decline to 84.0
Sentiment levels are at their highest point since July 2007
Over the past couple of weeks, severe volatility in the equity market resulted in a sharp drop in stock market prices. The effect on the consumer, however, was negligible

There is no economic data of note scheduled for a Monday release.

S&P 500 +2.1% YTD
Nasdaq Composite +2.0% YTD
Dow Jones Industrial Average -1.2% YTD
Russell 2000 -6.9% YTD

Week in Review: Volatility on the Rise

The stock market began the week on a defensive note despite showing some intraday strength. The S&P 500 lost 1.7% with all ten sectors ending in the red while the Russell 2000 (-0.4%) held up a bit better. Equity indices slumped in the early going amid weakness in groups that pressured the market during the prior week. However, the same areas showed some intraday strength, leading to a rebound that placed the S&P 500 back above its 200-day moving average (1905). The slim gains faded in the afternoon, which caused the S&P 500 to slide to a fresh low. All ten sectors ended lower with energy (-2.9%) registering the biggest decline. The growth-sensitive group lagged from the start with crude oil contributing to the weakness.

Equities snapped their three-day skid with small caps pacing the Tuesday rebound. The Russell 2000 jumped 1.2% while the S&P 500 added 0.2% with eight sectors ending in the green. However, the advance masked an afternoon slide from intraday highs that caused the Dow (-0.02%) to end flat. The key indices began the day with slim gains after investors received a trio of quarterly reports from the financial sector (+0.5%). Citigroup (C) was a notable standout, surging 3.2%, in reaction to its better than expected results combined with news indicating the company will exit its consumer business in 11 markets around the world. However, the broader sector could not pull away from the S&P 500 as JPMorgan Chase (JPM) and Wells Fargo (WFC) weighed. Shares of JPM lost 0.3% following a bottom-line miss while Wells Fargo fell 2.7% after reporting in-line results.

The market endured another rough session on Wednesday, but the major averages managed to climb off their worst levels ahead of the close. The S&P 500 lost 0.8% while the Russell 2000 rose 1.0% after showing relative strength throughout the session. Equity indices stumbled out of the gate to continue the weakness that started in the futures market overnight. Also weighing on sentiment was a trio of disappointing economic reports with retail sales, PPI, and the Empire Manufacturing Index all missing expectations. The data was met with dollar weakness while Treasuries soared. The 10-yr note was up more than two points at its best level of the day with the benchmark yield down 34 basis points. That represented the sharpest move since the $1 trillion QE program was unveiled in March 2009. The benchmark yield recovered the bulk of its decline into the close, ending lower by six basis points at 2.13%.

On Thursday, stocks faced another whipsaw session that ended with a flat finish for the S&P 500 while the Russell 2000 (+1.1%) registered its second consecutive advance. The price-weighted Dow was the weakest performer of the day with a loss of 0.2%. Equity indices tumbled out of the gate for the second day in a row amid broad-based selling pressure that also weighed on equities in Europe. The S&P 500 marked a session low near the 1,835 level during the first hour, but spiked more than 20 points following comments from St. Louis Fed President James Bullard. Mr. Bullard appeared on Bloomberg TV and said the Fed should consider delaying the end of its Quantitative Easing program, which is set to wind down at the October FOMC meeting. The market jumped from lows in reaction to the comments, but it is worth noting that Mr. Bullard is not a voting FOMC member this year and only an alternate voter on next year's schedule. The non-voter status did not get in the way of a surge in equities while Minneapolis Fed President (and FOMC voter) Kocherlakota provided a similar view, saying there is more the Fed can do to achieve maximum employment.

3:35 pm: [BRIEFING.COM]

Oil prices rallied today, but gave back much of its gains.
Nov WTI crude oil ended the day $0.28 higher at $82.79/barrel.
Nov natural gas lost 2 cents at $3.77/MMBtu
Gold and silver sold off in early action, but gold finished with a modest loss
Dec gold lost 0.2% to $1238.70/oz, while Dec silver fell 0.7% to $17.31/oz

2:55 pm: [BRIEFING.COM] The S&P 500 trades higher by 1.1% with one hour remaining in the Friday session. If the benchmark index ends the day near its current level, it would narrow this week's loss to 1.2%.

Investors received the first batch of Q3 earnings this week, but the reporting frequency will increase next week. Monday morning will feature 13 quarterly reports with energy and consumer names in focus. To that point, Halliburton (HAL 52.88, +1.71), Peabody Energy (BTU 10.91, -0.38), V.F. Corp (VFC 64.09, +0.11), and Hasbro (HAS 54.12, -0.09) will report ahead of the opening bell.

After Monday's close, almost 30 companies will report their quarterly results with Apple (AAPL 97.80, +1.54), IBM (IBM 181.93, +2.09), and Texas Instruments (TXN 43.78, +0.19) headlining the list.

2:25 pm: [BRIEFING.COM] Recent action saw the key indices extend their retreat from the highs while the Russell 2000 (-0.5%) has dipped into the red. The continued weakness among small caps has caused participants to take some money off the table in other areas of the market. The energy sector, which paced the recent sell-off alongside the Russell, has narrowed its gain to just 0.3%.

Elsewhere, the PHLX Semiconductor Index (+0.7%) has slipped behind the S&P 500 (+1.0%) after starting the session among the leaders and trading in-line with the S&P 500 at midday.

On a related note, the biotech group has pulled back from its high, but the iShares Nasdaq Biotechnology ETF (IBB 263.78, +2.80) continues trading ahead of the broader market with a 1.1% gain.

2:00 pm: [BRIEFING.COM] The major averages have continued backtracking from their highs with the S&P 500 narrowing its gain to 1.2%. Cyclical sectors remain strong, but only two groups-industrials (+1.9%) and materials (+1.3%)-continue trading ahead of the S&P 500 while the other four trade a bit behind the S&P 500.

Elsewhere, the Dollar Index sports a slim gain of 0.1% after alternating between narrow gains and losses overnight. The index climbed out of the red just ahead of today's opening bell and has respected a narrow range since then. Despite today's uptick, the index remains on track to end the week lower by 1.0%.

1:25 pm: [BRIEFING.COM] The stock market has a rebound spring in its step today. The Dow, Nasdaq, and S&P 500 are sporting gains in excess of 1.0%. The average everyone seems to be looking at more closely, though, is the Russell 2000 (+0.02%).

The Russell 2000 has outperformed over the last two sessions, but today it is trailing the action. That could be a result of traders trying to spread the "rebound wealth" a little more today, yet it has nonetheless piqued some concern that the stock market isn't out of the selling woods just yet since participants are cognizant that it was the Russell 2000 that paced the recent sell-off.

Accordingly, if the Russell 2000 fades further into the afternoon, it could carry the larger-cap indices with it.

As of now, every S&P 500 sector is showing a gain with a range from 0.1% (utilities) to 2.0% (industrials).

1:00 pm: [BRIEFING.COM] The major averages hold solid midday gains with the Dow, Nasdaq, and S&P 500 up between 1.4% and 1.8% while the Russell 2000 (+0.3%) lags. Despite today's underperformance, the small-cap index remains on track to register a 3.2% gain for the week versus a 0.8% decline for the S&P 500.

The market spiked out the gate after overnight comments from European Central Bank member Benoit Coeure sparked a rally in European markets and U.S. equity futures. Mr. Coeure said that ECB purchases of asset-backed securities are set to begin within days. Meanwhile, Bank of England Chief Economist Andy Haldane also walked the dovish line, saying that recent economic data speaks in favor of delaying the BoE's first rate hike.

With the prospect of continued policy support, the stage was set for a broad rally that has given the biggest boost to cyclical sectors. Industrials (+2.2%) spiked out of the gate after General Electric (GE 25.02, +0.77) and Honeywell (HON 89.89, +3.50) reported better than expected results. Transport stocks have not gotten in the way of the rally with the Dow Jones Transportation Average trading in-line with the broader market to extend this week's advance to 3.2%.

Elsewhere, the top-weighted sector-technology-has kept pace with the S&P 500. Chipmakers outperformed early on, but the PHLX Semiconductor Index now trades in-line with the sector and the broader market. SanDisk (SNDK 82.30, -3.01) weighs, trading lower by 3.6%, after cautious guidance overshadowed its better than expected results. Large cap names have fared well, but Google (GOOGL 528.89, -8.03) weighs after reporting disappointing results.

Also of note, the biotech space has shown significant strength with the iShares Nasdaq Biotechnology ETF (IBB 267.40, +6.42) higher by 2.5%. For its part, the health care sector (+1.9%) is the only outperformer among countercyclical groups.

Treasuries have hovered in the red since slumping to lows following the overnight comments from ECB's Benoit Coeure. The 10-yr yield is higher by four basis points at 2.20%.

The broad rally has caused participants to reduce some of their hedges, sending the CBOE Volatility Index (VIX 20.96, -4.24) to last Friday's levels.

Economic data was limited to Housing Starts/Building Permits and the preliminary reading of the Michigan Sentiment Survey:

Housing starts increased 6.3% in September to 1.017 million from a slightly upwardly revised 957,000 (from 956,000), while the Briefing.com consensus expected an increase to 1.013 million
Single-family construction rebounded after a one-month decline, increasing 1.1% to 646,000 from 652,000 in August
Multifamily housing starts increased 15.6% to 371,000 in September after falling 28.0% in August
The University of Michigan Consumer Sentiment Index increased to 86.4 in the preliminary reading for October from 84.6 while the Briefing.com consensus expected a decline to 84.0
Sentiment levels are at their highest point since July 2007
Over the past couple of weeks, severe volatility in the equity market resulted in a sharp drop in stock market prices. The effect on the consumer, however, was negligible

12:30 pm: [BRIEFING.COM] The S&P 500 (+1.6%) has spent the past hour near its current level after climbing steadily through the first two hours of the action.

Cyclical sectors have been responsible for the majority of today's advance and five of six growth-sensitive groups continue trading ahead of the broader market at this juncture while financials (+1.5%) follow a bit behind. Capital One (COF 75.95, -2.58) weighs, trading lower by 3.3%, after missing earnings and revenue estimates. In large part, Capital One's weakness has been offset by a 2.5% gain in Morgan Stanley (MS 33.35, +0.82) following better than expected earnings and revenue.

Elsewhere, the top-weighted cyclical sector-technology-trades in-line with the S&P 500. Most large cap names and chipmakers (PHLX Semiconductor Index +1.7%) display solid gains, but Google's (GOOGL 529.85, -7.07) disappointing results have kept the sector from joining the outperformers. Shares of GOOGL are lower by 1.3%.

11:55 am: [BRIEFING.COM] Equity indices have continued their upward drift with the exception of the Russell 2000 (+0.7%), which hovers near its session low.

The industrial sector (+2.6%), which has led from the start, has padded its gain amid broad strength in defense and transport stocks. The PHLX Defense Index is higher by 2.4% with all 17 components trading in the green after General Electric (GE 25.19, +0.94) reported a one-cent beat.

As for transport stocks, the Dow Jones Transportation Average is higher by 1.7% and up 3.3% for the week with all but two components in the green. Delta Air Lines (DAL 34.98, +1.66) leads with a gain of 5.0% while peer JetBlue Airways (JBLU 10.96, -0.26) is the weakest performer, down 2.2%.

11:30 am: [BRIEFING.COM] The Dow, Nasdaq, and S&P 500 all trade with gains close to 1.7% apiece while the Russell 2000 (+0.5%) continues trailing.

The major averages struggled earlier in the week but yesterday's rebound combined with today's advance has put a significant dent in the recent losses. The Nasdaq Composite has staged a solid turnaround and is now up 0.3% for the week.

Meanwhile, seven of ten sectors remain on course to end the week with losses between 0.5% (consumer discretionary) and 2.6% (consumer staples) while three economically-sensitive groups hold week-to-date gains. The energy sector is higher by 0.3% since Friday, but remains down 6.9% in October. Elsewhere, materials and industrials hold respective week-to-date gains of 1.2% and 2.7%. Transports have contributed to the strength among industrials with the Dow Jones Transportation Average up 1.7% today and higher by 3.4% for the week.

10:55 am: [BRIEFING.COM] Equity indices have built on their opening gains with the S&P 500 extending its advance to 1.4%. Small caps have had a tough time keeping up as the Russell 2000 (+0.7%) trades below its opening high. However, today's underperformance of the small-cap index can be overlooked considering the Russell displayed strength earlier in the week. The index is on track to end the week higher by 3.6% versus a loss of 0.9% for the S&P 500.

Two cyclical sectors-energy (+2.4%) and industrials (+2.0%)-spiked at the start of the session and they remain in the lead at this juncture. Elsewhere among cyclical groups, materials (+1.6%) trade ahead of the market while financials (+1.3%), consumer discretionary (+1.2%), and technology (+1.3%) follow a bit behind.

Meanwhile, the countercyclical side contains three laggards-consumer staples (+0.4%), telecom services (+0.6%), and utilities (+0.2%)-while health care (+1.6%) has been boosted by biotechnology. The iShares Nasdaq Biotechnology ETF (IBB 267.24, +6.26) has added 2.4% and currently trades within two points of its 50-day moving average (268.66).

10:35 am: [BRIEFING.COM]

Gold and silver futures have been selling off this morning and are currently sitting near session lows.
Dec gold is -0.6% at $1233.40/oz, Dec silver is -1% at $17.26/oz
Oil prices (WTI and Brent) have been pulling back from today's highs, but continue to trade in positive territory.
Nov WTI crude oil is now +0.9% at $83.40/barrel, while Brent crude oil is +0.8% at $83.33/barrel
Nov natural gas slid lower this morning and is now -1.1% at $3.75/MMBtu
Copper has been climbing higher off its overnight low and is currently near today's high. Dec copper is +0.6% at $3.00/lb

9:55 am: [BRIEFING.COM] The S&P 500 trades higher by 1.2%.

Just released, the preliminary reading for the University of Michigan Consumer Sentiment survey for October rose to 86.4 from the reading of 84.6 that was reported in September. The Briefing.com consensus expected a slip to 84.0.

9:40 am: [BRIEFING.COM] The stock market surged out of the gate with the Nasdaq Composite (+0.9%) pacing the early advance amid significant strength in biotechnology and chipmaker shares.

The iShares Nasdaq Biotechnology ETF (IBB 265.08, +4.10) is higher by 1.5% while the health care sector trades in-line with the S&P 500. As for chipmakers, the PHLX Semiconductor Index has added 2.1% with all but two components showing early gains. On the downside, SanDisk (SNDK 84.14, -1.17) is lower by 1.3% after cautious guidance overshadowed its bottom-line beat.

Elsewhere, the industrial sector (+1.9%) has received support from General Electric (GE 24.98, +0.73) and Honeywell (HON 89.32, +2.93) after the two names reported better than expected results.

Treasuries have inched down from their recent levels, with the benchmark 10-yr yield extending its advance to four basis points at 2.20%.

The preliminary reading of the Michigan Sentiment Survey for October will be released at 9:55 ET (Briefing.com consensus 84.0).

9:14 am: [BRIEFING.COM] S&P futures vs fair value: +16.90. Nasdaq futures vs fair value: +39.00. The stock market is on track for a sharply higher start with the S&P 500 futures trading 17 points above fair value. Index futures held a slim gain overnight before spiking at the start of the European session when European Central Bank executive member Benoit Coeure said that purchases of asset-backed securities are set to begin within days. The headline sparked a rally in U.S. futures and equity indices across Europe. For good measure, Bank of England Chief Economist Andy Haldane said that recent economic data speaks in favor of delaying the BoE's first rate hike.

Also of note, crude oil trades higher by 0.5% at $83.11/bbl and will look to register its second consecutive advance. On a related note, the Dollar Index (84.97, +0.02) trades flat after erasing its recent loss.

On the corporate front, General Electric (GE 24.95, +0.70) and Honeywell (HON 89.40, +3.01) are expected to underpin the industrial sector after both components reported better than expected results. Elsewhere, Google (GOOGL 537.79, +0.87) is indicated to open with a modest gain despite disappointing results.

Treasuries hold losses with the 10-yr yield up two basis points at 2.18%.

The preliminary reading of the Michigan Sentiment Survey for October will be released at 9:55 ET (Briefing.com consensus 84.0).

8:58 am: [BRIEFING.COM] S&P futures vs fair value: +18.10. Nasdaq futures vs fair value: +38.70. The S&P 500 futures trade 18 points above fair value.

Markets ended mixed across Asia in the absence of noteworthy data or news developments.

Japan's Nikkei lost 1.4%, pressing to a five-month low. Exporters remained weak despite the let up in the yen as Toyota Motor slumped 2.5% and Cannon fell 1.9%.
Hong Kong's Hang Seng added 0.5% and climbed off three-month lows, but was unable to reclaim its 200-day moving average. Energy names rebounded as oil continued to climb off more than two-year lows. Cnooc and PetroChina added 3.8% and 1.0%, respectively.
China's Shanghai Composite slipped 0.7% to a four-week low. Commodity-related names were weak as Shaanxi Coal lost 3.2%.
India's Sensex rose 0.4% and held the 100-day moving average as action ticked off two-month lows. Financials paced the advance with HDFC Bank and ICICI Bank both rallying 3.1%.

Major European indices trade higher across the board after European Central Bank member Benoit Coeure said the bank will begin buying asset-backed securities in the upcoming days, aiming to expand its balance sheet and improve the transmission of funds to the real economy. Elsewhere, Bank of England Chief Economist Andy Haldane said that recent economic data speaks in favor of delaying the BoE's first rate hike.

Economic data was limited:
Spain's trade deficit widened to EUR2.77 billion from EUR1.82 billion (expected deficit of EUR2.40 billion)

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Great Britain's FTSE is higher by 1.0% with energy names in the lead. Petrofac and Tullow Oil hold respective gains of 5.3% and 7.1%. Rolls-Royce has plunged 14.0% after issuing a profit warning.
Germany's DAX trades up 1.9% amid broad strength. Financials lead with Commerzbank, Deutsche Bank, and Deutsche Boerse up between 1.5% and 3.7%.
In France, the CAC has added 2.1%. Growth-sensitive names outperform with Valeo, BNP Paribas, Credit Agricole, and Societe Generale up between 2.8% and 5.1%.
Italy's MIB leads with a gain of 2.4%. Banca di Milano Scarl, Banco Popolare, Mediobanca, and Intesa Sanpaolo are up between 3.5% and 5.4%.

8:33 am: [BRIEFING.COM] S&P futures vs fair value: +19.90. Nasdaq futures vs fair value: +41.50. The S&P 500 futures trade 20 points above fair value.

Housing Starts rose to a seasonally adjusted annualized rate of 1,017,000 units in September. That was up from a revised 1,003,000 units in August. The Briefing.com consensus expected starts to increase to 1.013 million units.

Building permits rose to a seasonally adjusted annualized rate of 1,018,000 in September versus a revised 1,003,000 for August. The Briefing.com consensus expected permits to come in at 1.030 million.

8:00 am: [BRIEFING.COM] S&P futures vs fair value: +19.10. Nasdaq futures vs fair value: +38.00. U.S. equity futures trade sharply higher amid upbeat action overseas. The S&P 500 futures hover 19 points above fair value with the bulk of the advance coming after European Central Bank executive member Benoit Coeure said that purchases of asset-backed securities are set to begin within days. The headline sparked a rally in U.S. futures and equity indices across Europe.

Crude oil, which overcame its early loss yesterday, trades higher by 1.3% at $83.81/bbl while the Dollar Index (84.80, -0.16) is lower by 0.2% with the greenback showing a slim loss (-10 pips) against the euro.

Treasuries hold losses with the 10-yr yield up three basis points at 2.19%.

September Housing Starts (Briefing.com consensus 1013K) and Building Permits (consensus 1030K) will be released at 8:30 ET while the preliminary reading of the Michigan Sentiment survey for October (expected 84.0) will cross the wires at 9:55 ET.

In U.S. corporate news of note:

Advanced Micro Devices (AMD 2.62, -0.02): -0.8% in reaction to disappointing earnings and revenue.
General Electric (GE 25.29, +1.04): +4.3% after reporting a one-cent beat on below-consensus revenue.
Google (GOOGL 532.35, -4.57): -0.9% after missing earnings and revenue estimates.
Honeywell (HON 88.00, +1.61): +1.9% after beating earnings expectations.
Morgan Stanley (MS 33.74, +1.21): +3.7% in reaction to better than expected results.
SanDisk (SNDK 83.50, -1.81): -2.1% after cautious guidance overshadowed its bottom-line beat.
Schlumberger (SLB 93.00, +2.36): +2.6% following its bottom-line beat.

Reviewing overnight developments:

Asian markets ended mixed. Hong Kong's Hang Seng +0.5%, China's Shanghai Composite -0.7%, and Japan's Nikkei -1.4%
In economic data:
Singapore's trade surplus narrowed to SGD5.58 billion from SGD6.80 billion (expected surplus of SGD5.50 billion)
In news:
Bank of Japan Governor Haruhiko Kuroda said it would be difficult to respond if investor confidence is hurt by delaying the next sales tax hike. Prime Minister Shinzo Abe is expected to make a final decision at the end of the year.

Major European indices trade higher across the board. Great Britain's FTSE +0.9%, Germany's DAX +1.8%, and France's CAC +1.9%. Elsewhere, Italy's MIB +2.2% and Spain's IBEX +2.1%
Economic data was limited:
Spain's trade deficit widened to EUR2.77 billion from EUR1.82 billion (expected deficit of EUR2.40 billion)
Among news of note:
Bank of England Chief Economist Andy Haldane said that recent economic data speaks in favor of delaying the BoE's first rate hike.
European Central Bank member Benoit Coeure said the central bank will begin buying asset-backed securities in the upcoming days, aiming to expand ECB's balance sheet and improve the transmission of funds to the real economy.

6:33 am: [BRIEFING.COM] S&P futures vs fair value: +20.00. Nasdaq futures vs fair value: +42.00.

6:32 am: [BRIEFING.COM] Nikkei...14,532.51...-205.90...-1.40%. Hang Seng...23,023.21...+122.30...+0.50%.

6:32 am: [BRIEFING.COM] FTSE...6258.72...+63.00...+1.00%. DAX...8,726.78...+144.90...+1.70%.

Investors Shaken as S&P 500 Reversals Ignite Volatility

By Eric Lam and Joseph Ciolli Oct 17, 2014 6:10 PM ET

David Wolf, a fund manager at Fidelity Investments in Toronto, says equity spasms such as those that shook global stocks this week scare professionals as much as everyone else.

“My dad has been quite panicky,” Wolf said of his father, Bernard, a retired economics professor from Canada’s Schulich School of Business. “He knows what markets are all about and he knows what the economy is all about, and even he gets scared” when stocks rise and fall this fast.

One of the most volatile five days for stocks since the financial crisis ended today with the Standard & Poor’s 500 Index rallying 1.3 percent to 1,886.76. That pared the decline since Oct. 10 to 1 percent and handed investors a fourth consecutive weekly retreat. The benchmark index slumped as much as 3 percent on Oct. 15 before recovering in the biggest swing since 2011.

Stocks slid, recovered and lurched again as concerns mounted that Europe will slip into a recession just as Federal Reserve bond buying ends. Speculation that Ebola is spreading, concern about the health of the global economy and selling by hedge funds sent the Chicago Board Options Exchange Volatility Index above 26 on Oct. 15, a two-year high.

Earnings season got under way with Netflix Inc. tumbling 21 percent for the week after a price increase slowed subscriber growth. JPMorgan Chase & Co. slid 4 percent, the most since August, after net income fell short of forecasts.

The Dow Jones Industrial Average retreated 163.69 points, or 1 percent, to 16,380.41. The Nasdaq Composite Index lost 0.4 percent.

‘Buying Opportunity’

Wolf, part of Fidelity’s global asset allocation team, said the firm has been getting more calls from clients worried about the market’s losses. Very little about the outlook for the North American economy has changed, he said, adding that the drop is a buying opportunity not seen in months.

While Canada’s S&P/TSX Composite Index was essentially unchanged for the week, the index had two days of losses of about 1 percent and then reversed with two days of approximate 1 percent gains.

“This was a really spectacular week to watch,” Herbert Perus, who helps oversee $36 billion as head of equities at Raiffeisen Capital Management in Vienna, said in a phone interview. “A lot of risks came into the minds of short-term orientated traders.”

Hedge Funds

Stocks favored by professional speculators saw some of the biggest swings. The 20 stocks in the Russell 1000 Index (RIY) in which hedge funds hold the biggest stakes have tumbled 8.4 percent since the beginning of October, twice the rate of the full index.

Small-cap stocks staged the biggest rally since June as investors began to regain confidence. After sliding 13 percent from March 4 to Oct. 13, the Russell 2000 Index rebounded with three days of gains exceeding 1 percent. The index ended the week up 2.8 percent.

The S&P 500 is still down 6.2 percent from a record a month ago. Pressure is mounting for European Central Bank stimulus such as government-bond purchases as the 18-nation euro area struggles to rebound from a sovereign debt crisis and subsequent austerity measures.

Speculation that central banks will step in to support the economy fueled gains at the end of the week. The ECB will start “within the next days” to purchase assets in the new program to support the economy, Benoit Coeure, an executive board member, said on Oct. 17. St. Louis Fed Bank President James Bullard said the previous day that policy makers should consider delaying the end of bond buying.

Airline Shares

Robert Stimpson, a fund manager in the Ohio town visited by an Ebola-infected nurse, said his conversations have been dominated by concern over the disease. Transportation shares were whipsawed by speculation the spread of Ebola will hurt travel plans, with the Bloomberg U.S. Airlines Index losing more than 6 percent on Oct. 13. The gauge finished the week up 4.2 percent.

Chimerix Inc., a drug maker working on a treatment for Ebola, had a weekly gain of 10 percent. Lakeland Industries Inc., a manufacturer of disposable protective gear with a market value below $100 million, slid 14 percent. The stock has doubled in the past month.

“The market got to a position where it was prone to weakness and it happened to occur at the same time that scary news such as Ebola was rolling out,” Stimpson, who works at Oak Associates Ltd. in Akron, Ohio, said by phone. “It’s a confluence of factors coming together to lead to a very difficult two weeks in the market.”

To contact the reporters on this story: Eric Lam in Toronto at elam87@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

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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