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 Post subject: November 7th Friday Trade Results - Profit $1180.00
PostPosted: Fri Nov 07, 2014 5:56 pm 
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Joined: Sat Jan 10, 2009 2:06 pm
Posts: 4335
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)
http://twitter.com/wrbtrader (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 @ $1,180.00 dollars or +11.80 points, Emini ES ($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 @ $1,180.00 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=136&t=1930

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=250&t=2561

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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 major averages ended Friday on a quiet note with the S&P 500 (unch) locking in a 0.7% gain for the week. Meanwhile, the tech-heavy Nasdaq (-0.1%) spent the duration of the day in negative territory to end the week unchanged.

This morning, the latest Nonfarm Payrolls report revealed the addition of 214,000 jobs in October. The reading came in below the Briefing.com consensus estimate (235,000), but the overall tone of the report did not represent a departure from recent trends. Furthermore, the data did not stoke up fears of the Fed being in a rush to hike the fed funds rate. To that point, the 10-yr note rallied, sending its yield lower by eight basis points to 2.30% while the Dollar Index (87.58, -0.44) took a step back from its best level since mid-2010. The index narrowed its weekly gain to 0.7%.

The weaker dollar served as a supportive factor for crude oil, which climbed 1.0% to $78.71/bbl. Fittingly, the strength helped the energy sector (+0.9%) finish ahead of the remaining cyclical groups. Similarly, the materials space (+0.5%) was also supported by commodities. The Market Vectors Gold Miners ETF (GDX 18.64, +1.43) jumped 8.3% as gold futures soared 2.8% to $1174.70/ozt. Steelmakers gave another boost to the sector after industry giant ArcelorMittal (MT 12.59, +0.21) reported better than expected revenue, which overshadowed below-consensus earnings. Shares of MT spiked 1.7% while the Market Vectors Steel ETF (SLX 41.94, +0.87) rallied 2.1%.

Meanwhile, the remaining cyclical sectors struggled to keep pace with the market. The consumer discretionary sector (-0.2%) lagged throughout the session with Dow component Disney (DIS 90.00, -2.00) falling 2.2% despite reporting a one-cent beat.

The top-weighted technology sector (-0.03%) also spent the day in the red with chipmakers facing broad pressure. NVIDIA (NVDA 19.79, -0.43) and Skyworks (SKWS 59.88, -2.26) reported their quarterly results, but above-consensus earnings from the former and in-line results from the latter could not stop the PHLX Semiconductor Index from surrendering 0.9%.

The high-beta weakness was also apparent in the biotech space as the iShares Nasdaq Biotechnology ETF (IBB 290.14, -3.18) lost 1.1% and contributed to the underperformance of the Nasdaq. As for health care (-1.0%), the sector ended behind the remaining nine groups with DaVita (DVA 74.49, -3.54) and Humana (HUM 130.58, -9.29) contributing to the weakness. The two registered respective losses of 4.5% and 6.6% after DaVita beat by a penny and Humana missed on earnings and revenue.

Elsewhere among countercyclical groups, consumer staples (+0.3%), telecom services (+0.8%), and utilities (+1.0%) settled ahead of the broader market.

Participation was ahead of average with more than 750 million shares changing hands at the NYSE floor.

Economic data included Nonfarm Payrolls and Consumer Credit:

Payrolls increased by 214,000 while the Briefing.com consensus expected a reading closer to 235,000
Although payroll growth exceeded the 200,000 mark for the ninth consecutive month, earnings growth remained anemic, increasing just 0.1% (Briefing.com consensus 0.2%)
The combination of a historically low labor force participation rate and jobless claims steadily tracking below the 300,000 mark should lead to robust growth, but businesses remain reluctant to step up hiring
The Consumer Credit report for September showed an increase of $15.90 billion, which was lower than the Briefing.com consensus estimate of $16.00 billion

There is no economic data scheduled to be released on Monday.

Nasdaq Composite +10.9% YTD
S&P 500 +9.9% YTD
Dow Jones Industrial Average +6.0% YTD
Russell 2000 +0.9% YTD

Week in Review: Dollar Charges Ahead

The stock market had its issues on Monday, mostly because of what was happening outside the stock market. To that end, the dollar hit a seven-year high against the yen, crude futures slumped below $80/bbl, and economic reports from around the globe were mixed at best. On top of that, market participants were staring straight ahead at political issues wrapped up in election day for the U.S. on Tuesday. Those items were reason enough not to expect the stock market to do all that well on Monday, never mind that it also had to contend with the thought that it was overbought following a 10.8% gain off the October 15 low and due for a period of consolidation.

The major averages ended the Tuesday session on a mixed note. The Dow Jones Industrial Average (+0.1%) spent the bulk of the day near its flat line while the S&P 500 settled lower by 0.3%. Stocks were pressured from the start, but the early weakness could be traced back to Europe where the European Commission lowered its GDP forecast for the region. The commission now expects 2014 GDP to grow at 0.8% (prior 1.2%) while the forecast for 2015 was lowered to 1.1% from 1.7%. Also in Europe, a report from Reuters revealed a potential power struggle at the European Central Bank. According to the report, ECB board members have been unhappy with President Mario Draghi effectively making some policy decisions on his own. Furthermore, the report claimed that up to ten out of 24 ECB members are not in favor of a sovereign QE program.

The market registered a midweek gain with the S&P 500 climbing 0.5% to a fresh record high. The benchmark index maintained a ten-point range while the Nasdaq Composite (-0.1%) spent the bulk of the day near its flat line. Equities climbed at the start after Tuesday's midterm elections altered the balance of power in Washington. The GOP picked up seven Senate seats to claim a 52-seat majority while also adding ten seats to their majority in the House of Representatives. In addition to giving a small overnight boost to index futures, the news helped the Dollar Index (87.45, +0.47) climb to a new multi-year high at the expense of the yen (-105 pips) and the euro (-60 pips).

Equities posted modest gains on Thursday ahead of the Nonfarm Payrolls report for October (Briefing.com consensus 235,000), which will be released tomorrow. The S&P 500 added 0.4% with seven sectors ending in the green. The key indices spent the entire session in a slow and steady climb off their opening lows, but the same could not be said for the greenback. The Dollar Index (88.08, +0.64) spiked 0.7% after the European Central Bank released its latest policy statement. Although the central bank did not announce any changes, the euro tumbled below 1.2380 against the dollar after Mario Draghi said the bank will begin purchases of asset-backed securities soon and will not hesitate to introduce additional easing if needed. The reminder of willingness to consider additional measures boosted European equities and helped U.S. futures climb off their overnight lows. However, it should be noted that the ECB has already discussed its intentions to begin ABS purchases in the past. Furthermore Mr. Draghi's comments about additional easing contrasted with Tuesday's Reuters story, which claimed nearly half of the ECB board opposes the implementation of a sovereign quantitative easing program.

3:35 pm: [BRIEFING.COM]

Energy and precious metals ran higher today with gold showing a big gain
Dec gold rose 2.4% to $1169.80/oz, while Dec silver gained 1.9% to $15.70/oz
Dec crude oil (WTI) rallied nicely today, ending $0.78 higher at $78.71/barrel
Natural gas ended just 1 cent higher
Corn futures lost 3 cents at $3.67/bushel

3:05 pm: [BRIEFING.COM] The S&P 500 trades lower by 0.1% with one hour remaining in the session.

The Consumer Credit report for September was just released by the Federal Reserve and it showed that consumer credit increased by $15.90 billion. That was lower than the Briefing.com consensus estimate of $16.00 billion. The prior month's credit growth was revised to $14.00 billion from $13.50 billion.

2:30 pm: [BRIEFING.COM] Quiet afternoon action continues with the S&P 500 back below its flat line.

Today's session has done little to change the S&P 500's standing for the week. With 90 minutes remaining in the trading day, the index is on track to end the week higher by 0.6%. The price-weighted Dow (+0.9%) sports a comparable gain for the week while the Nasdaq is flat since last Friday.

With regard to Treasuries, the 10-yr note has inched up over the course of the week, lowering the benchmark yield to 2.31% from 2.34%.

1:55 pm: [BRIEFING.COM] Equity indices remain inside narrow ranges with the S&P 500 hovering just above its flat line. Although the benchmark index has not moved much since reclaiming its flat line shortly after 11:00 ET, the greenback has continued its retreat.

The Dollar Index (87.56, -0.45) has extended its decline to 0.5% amid continued strength in the euro (+65 pips) and the yen (+84 pips). Meanwhile, the British pound has also climbed to a session high against the dollar, but its gain has been limited to fewer than 25 pips so far.

Despite today's decline, the Dollar Index is still higher by 0.7% for the week.

1:25 pm: [BRIEFING.COM] The major indices are mixed as the afternoon trading session carries on. All in all, it's a pretty good showing considering how far the major indices have advanced in the last three weeks.

An underpinning influence today seems to be the notion that the October employment report wasn't strong enough to precipitate a rate hike by the Federal Reserve. That perspective has manifested itself in the weakness of the dollar and strength in the Treasury market where yields have come down across the curve, most notably in the policy-sensitive 2-yr note (down four basis points to 0.51%).

The dip in the dollar, as well as a bubbling up of some geopolitical concerns related to the Russia-Ukraine standoff, has helped pushed oil (+0.95 to $78.84/bbl) and gold (+$29.40 to $1172.00/troy ounce) prices higher today. Those commodities are also benefiting from the idea that they are oversold on a short-term basis and in-line for tradable bounce.

The energy sector (+1.1%) continues to be the best-performing sector in the stock market today.

1:00 pm: [BRIEFING.COM] The major averages are little changed at midday with the S&P 500 (unch) staying a step ahead of the Nasdaq Composite (-0.2%).

Prior to the open, investors received the latest Nonfarm Payrolls report, which revealed the addition of 214,000 jobs in October. The reading came in below the Briefing.com consensus estimate (235,000), but the overall tone of the report did not represent a departure from recent trends.

Equity indices slipped out of the gate, but the S&P 500 was able to recover with help from the energy sector (+1.2%), which has shown strength from the start. The outperformance has been fueled by crude oil (79.02, +1.11) while a decline in the Dollar Index (87.73, -0.28) has helped the energy component to a 1.4% gain.

The other commodity-related group-materials (+0.4%)-has also spent the first half in the green. Steelmakers and miners have contributed to the strength with Market Vectors Steel ETF (SLX 41.97, +0.90) and Market Vectors Gold Miners ETF (GDX 18.34, +1.13) holding respective gains of 2.2% and 6.5%. On a related note, gold futures trade higher by 2.2% at $1168.10/ozt.

Meanwhile, most of the remaining cyclical sectors have been unable to keep up. The discretionary space (-0.3%) lags amid weakness in media names/content providers with Disney (DIS 89.75, -2.25) trading lower by 2.5% despite reporting a one-cent beat.

Elsewhere, technology (-0.2%) has spent the entire first half in the red with chipmakers pressuring the top-weighted sector. The PHLX Semiconductor Index has surrendered 1.1% even though NVIDIA (NVDA 19.71, -0.51) reported better than expected results and Skyworks (SWKS 60.00, -2.14) matched its guidance from October 14. The two names hold respective losses of 2.5% and 3.5%.

The relative weakness among microchip names weighs on the Nasdaq, and the tech-heavy index is also facing losses in the biotech space. The iShares Nasdaq Biotechnology ETF (IBB 290.44, -2.88) is lower by 1.0%. The health care sector (-0.7%) has fared a bit better, but its issues have not been isolated to biotechnology. Humana (HUM 131.54, -8.33) is lower by 5.9% after missing estimates and DaVita (DVA 74.69, -3.34) trades down 4.3% despite beating by a penny.

Treasuries hover near their best levels of the day with the 10-yr yield down seven basis points at 2.32%.

Taking another look at today's jobs report:

Payrolls increased by 214,000 while the Briefing.com consensus expected a reading closer to 235,000
Although payroll growth exceeded the 200,000 mark for the ninth consecutive month, earnings growth remained anemic, increasing just 0.1% (Briefing.com consensus 0.2%)
The combination of a historically low labor force participation rate and jobless claims steadily tracking below the 300,000 mark should lead to robust growth, but businesses remain reluctant to step up hiring

The Consumer Credit report for September (consensus $16.00 billion) will cross the wires at 15:00 ET.

12:30 pm: [BRIEFING.COM] Equity indices remain near their recent levels with the S&P 500 having spent the past 90 minutes in a two-point range. The significant strength within the energy sector (+1.3%) has helped the benchmark index rebound from its low, but that move has had little effect on high-beta chipmakers and biotech names as both groups remain weak.

The PHLX Semiconductor Index has ticked up off its low, but the Index remains down 1.2% with just five components showing gains. Similarly, the iShares Nasdaq Biotechnology ETF (IBB 289.46, -3.86) has narrowed its decline to 1.3%.

Elsewhere, the consumer discretionary sector (-0.2%) is providing additional pressure with Disney (DIS 89.84, -2.16) trading lower by 2.4% despite its one-cent beat.

The aforementioned groups deserve attention into the afternoon and a potential rebound in these areas would serve as a supportive factor for the broader market.

11:55 am: [BRIEFING.COM] The S&P 500 (+0.1%) continues holding a slim gain. The benchmark index spiked back into the green about 90 minutes ago, but has not moved much since turning positive.

The current standing reflects a degree of indecision with no concerted leadership to speak of. Of the five top-weighted sectors, three groups hover in the red while the other two are essentially in-line with the S&P 500. Consumer discretionary (-0.3%), health care (-0.7%), and technology (-0.2%) lag, while industrials (+0.1%) and financials (+0.2%) trade just ahead of the broader market.

Despite today's range-bound action, the S&P 500 remains on track to end the week in the green. The benchmark index is higher by 0.7% while the Nasdaq has yet to turn positive for the week. The tech-heavy index is lower by 0.1% since last Friday.

11:25 am: [BRIEFING.COM] The S&P 500 hovers just above its flat line with seven sectors holding gains.

The energy sector has shown strength since the open and the growth-sensitive group is now higher by 1.2% with crude oil supporting the advance. The energy component is also up 1.2% at $78.85/bbl.

Meanwhile, the other commodity-related sector-materials (+0.4%)-is showing strength for the second consecutive session. Similarly, miners are enjoying their second day of notable outperformance with the Market Vectors Gold Miners ETF (GDX 18.24, +1.02) higher by 5.9%. As for gold futures, the yellow metal has added 2.0% and currently sits near $1165.30/ozt.

Also of note, the rebound in equities has not stopped Treasuries from continuing their advance. The 10-yr yield is now lower by seven basis points at 2.32%.

11:00 am: [BRIEFING.COM] The S&P 500 has returned to its flat line while the Nasdaq Composite remains lower by 0.3%.

The tech-heavy index has been pressured by weakness in two high-beta groups that constitute a large portion of the Nasdaq. Chipmakers display widespread weakness with the PHLX Semiconductor Index lower by 1.1%. The group has not been able to string together a rally even though NVIDIA (NVDA 19.69, -0.53) reported better than expected results and Skyworks (SWKS 58.71, -3.41) issued upbeat guidance.

Biotechnology has also contributed to the underperformance of the Nasdaq. The iShares Nasdaq Biotechnology ETF (IBB 289.07, -4.25) has given up 1.5% while the health care sector (-0.6%) trails the remaining nine groups. Disappointing earnings from Humana (HUM 133.00, -6.87) have also pressured the sector.

10:35 am: [BRIEFING.COM]

Commodities are showing some nice gains today, while the dollar index slides lower.
The index is currently sitting near today's lows and is now -0.3% at 87.73
Crude oil has been climbing higher today and rose as high as $79.25/barrel. Dec crude is now $78.65/barrel, up 1%
Natural gas sold off in early morning trade, but has since recovered some. However, it still remains in negative territory at $4.36/MMBtu, now down 1%.
Gold and silver spiked following the jobs data and have since extended gains.
Dec gold is now +1.4% at $1158.60/oz, Dec silver +1.6% at $15.67/oz
Dec copper is +0.7% at $3.04/lb
Dec corn -1.1% at $3.67/bushel

10:00 am: [BRIEFING.COM] The S&P 500 (-0.2%) remains near its opening low amid losses in eight sectors. Meanwhile, Treasuries have extended their gains with the 10-yr yield slipping to 2.34% (-5 bps).

Also of note, the greenback has spent the past 45 minutes or so in a steady retreat after seeing a brief spike following today's jobs report. The Dollar Index (87.73, -0.28) is lower by 0.3%, giving a boost to the euro (+50 pips) and the yen (+50 pips).

Despite the decline, the Dollar Index remains higher by 0.9% on the week.

9:40 am: [BRIEFING.COM] As expected, the major averages slipped out of the gate with the Russell 2000 (-0.5%) showing the largest early decline. Meanwhile, the S&P 500 is lower by 0.2% with seven sectors in the red.

The consumer discretionary sector (-0.5%) began the day at the bottom of the leaderboard while other cyclical sectors trade mixed. Financials (-0.3%) also lag while energy (+0.7%) and materials (+0.5%) outperform.

The countercyclical side is also mixed with the utilities sector (+0.4%) trading ahead of the market while health care (-0.3%), consumer staples (-0.3%), and telecom services (-0.3%) lag.

Treasuries have climbed to fresh highs, pressuring the 10-yr yield to 2.35% (-4 bps).

9:15 am: [BRIEFING.COM] S&P futures vs fair value: -2.10. Nasdaq futures vs fair value: +5.20. The stock market is on track for a lower open with futures on the S&P 500 trading two points below fair value.

Index futures spent the bulk of the morning near their flat lines, but spiked briefly in reaction to the Nonfarm Payrolls report for October, which missed expectations. According to the report, payrolls increased by 214,000 while the Briefing.com consensus expected a reading closer to 235,000. Although payroll growth exceeded the 200,000 mark for the ninth consecutive month, earnings growth remained anemic, increasing just 0.1% (Briefing.com consensus 0.2%). Furthermore, the combination of a historically low labor force participation rate and jobless claims tracking below 300,000 should lead to robust growth, but businesses remain reluctant to step up hiring.

Futures tested their overnight highs following the report, but have slid to new lows since then. Meanwhile, Treasuries hover near their highs with the 10-yr yield down three basis points at 2.36%.

On the corporate front, chipmaker names are likely to see early strength after NVIDIA (NVDA 20.70, +0.48) and Skyworks (SWKS 63.70, +1.56) reported better than expected results.

On the flip side, Disney (DIS 89.80, -2.20) is on track for a lower open despite beating by a penny.

The Consumer Credit report for September (consensus $16.00 billion) will cross the wires at 15:00 ET.

8:58 am: [BRIEFING.COM] S&P futures vs fair value: +2.90. Nasdaq futures vs fair value: +13.00. The S&P 500 futures trade three points above fair value.

Asian markets ended the week on a mostly lower note. The Reserve Bank of Australia released its quarterly report, which reiterated that the Australian dollar remains overvalued. The central bank reduced its 2014 CPI target to 1.75% from 2.00% and lowered its forecast for the first half of 2015 to 2.00% from 2.25%.

Economic data was scarce:
Australia's AIG Construction Index fell to 53.4 from 59.1

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Japan's Nikkei slipped from its opening high, but stayed in the green to add 0.5%. Industrial names finished in the lead with Mitsumi Electric, Chubu Electric Power, and Sumitomo Osaka Cement up between 4.3% and 9.1%.
Hong Kong's Hang Seng shed 0.4% to settle near its opening level. Lenovo Group was the weakest performer, down 4.8%, after missing revenue estimates. Gaming and casino names outperformed with Sands China and Galaxy Entertainment up 2.6% and 0.8%, respectively.
China's Shanghai Composite slipped 0.3%, ending near the lows. China Railway Construction fell 4.9% and Maanshan Iron & Steel lost 5.2%.
India's Sensex shed 0.2% after spending the day in a narrow range following yesterday's holiday. Financials were mixed as HDFC Bank and State Bank of India lost near 1.5% apiece while Axis Bank jumped 2.4%.

Major European indices trade mostly lower with Spain's IBEX (-1.1%) showing the largest decline. Bank of France governor and ECB member, Christian Noyer, said that low interest rates feed into an illusion of debt sustainability and contribute to delaying structural reforms. Elsewhere, reports from Spain indicate Prime Minister Mariano Rajoy will view Sunday's independence referendum in Catalonia as 'freedom of expression.' Meanwhile, Spain's Constitutional Court said on several occasions that the referendum will be blocked

In economic data:
Germany's trade surplus expanded to EUR18.50 billion from EUR17.50 billion, as expected. Imports increased 5.4% month-over-month (expected 0.8%; prior -1.3%) while exports rose 5.5% (consensus 1.9%; last -5.8%). Separately, Industrial Production rose 1.4% month-over-month (consensus 2.0%; previous -3.1%)
Great Britain's trade deficit widened to GBP9.82 billion from GBP8.95 billion (expected deficit of GBP9.40 billion)
French government budget deficit narrowed to EUR80.50 billion from EUR94.10 billion while the trade deficit narrowed to EUR4.70 billion from EUR5.00 billion (expected deficit of EUR5.90 billion). Separately, Industrial Production was unchanged month-over-month (expected -0.2%; prior -0.2%)
Spain's Industrial Production rose 1.0% year-over-year (expected 0.8%; prior 0.3%)

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Great Britain's FTSE is higher by 0.5% with miners in the lead. Anglo American, Fresnillo, and Rio Tinto are up between 2.1% and 3.7%. Financials lag with Barclays, Standard Chartered, and Admiral Group holding losses between 0.3% and 2.4%.
Germany's DAX is lower by 0.3% with financials also showing weakness. Commerzbank and Deutsche Bank are both down near 2.0%.
In France, the CAC has given up 0.5%. BNP Paribas, Credit Agricole, and Societe Generale display losses between 1.5% and 3.8% while steelmaker ArcelorMittal leads with a gain of 2.6% after beating revenue estimates.
Spain's IBEX underperforms with a loss of 1.1%. BBVA, Bankia, Bankinter, and Santander are down between 1.4% and 2.3%.

8:33 am: [BRIEFING.COM] S&P futures vs fair value: +4.40. Nasdaq futures vs fair value: +15.00. The S&P 500 futures trade four points above fair value.

October nonfarm payrolls came in at 214,000, while the Briefing.com consensus expected a reading of 235,000. Nonfarm private payrolls added 209,000 against the 230,000 expected by the consensus. The unemployment rate dropped to 5.8%, while the Briefing.com consensus expected the reading to hold at 5.9%.

Hourly earnings rose 0.1% while the Briefing.com consensus expected growth of 0.2%. The average workweek was reported at 34.6, which is what the consensus expected.

7:56 am: [BRIEFING.COM] S&P futures vs fair value: +1.10. Nasdaq futures vs fair value: +10.00. U.S. equity futures trade little changed amid cautious action overseas. However, some volatility is expected to surround the 8:30 ET release of the Nonfarm Payrolls report for October. The Briefing.com consensus expects the report to indicate the addition of 235,000 payrolls while the Unemployment Rate is expected to hold at 5.9%.

Treasuries are little changed with the 10-yr yield at 2.39%.

In U.S. corporate news of note:

ArcelorMittal (MT 12.68, +0.30): +2.4% after missing earnings estimates on above-consensus revenue.
Disney (DIS 90.10, -1.90): -2.1% despite reporting a one-cent beat.
First Solar (FSLR 54.65, -1.76): -3.1% after beating earnings estimates on below-consensus revenue.
NVIDIA (NVDA 21.00, +0.78): +3.9% after beating earnings and revenue estimates.
Salix Pharmaceuticals (SLXP 89.00, -49.55): -35.8% after missing estimates and guiding below analyst expectations.
Skyworks (SWKS 63.60, +1.46): +2.4% after reporting in-line with its guidance from October 14.
Transocean (RIG 27.65, -2.27): -7.6% after delaying the release of its Q3 results in order to better estimate the size of a non-cash impairment to goodwill
Zynga (ZNGA 2.58, +0.22): +9.3% in reaction to in-line results on above-consensus revenue.

Reviewing overnight developments:

Asian markets ended mixed. Japan's Nikkei +0.5%, China's Shanghai Composite -0.3%, and Hong Kong's Hang Seng -0.4%.
Economic data was limited:
Australia's AIG Construction Index fell to 53.4 from 59.1
In news:
The Reserve Bank of Australia released its quarterly report, which reiterated that the Australian dollar remains overvalued. The central bank reduced its 2014 CPI target to 1.75% from 2.00% and lowered its forecast for the first half of 2015 to 2.00% from 2.25%.

Major European indices trade mostly lower. France's CAC -0.6%, Germany's DAX -0.5%, and Great Britain's FTSE +0.5%. Elsewhere, Italy's MIB -1.1% and Spain's IBEX -1.1%.
In economic data:
Germany's trade surplus expanded to EUR18.50 billion from EUR17.50 billion, as expected. Imports increased 5.4% month-over-month (expected 0.8%; prior -1.3%) while exports rose 5.5% (consensus 1.9%; last -5.8%). Separately, Industrial Production rose 1.4% month-over-month (consensus 2.0%; previous -3.1%)
Great Britain's trade deficit widened to GBP9.82 billion from GBP8.95 billion (expected deficit of GBP9.40 billion)
French government budget deficit narrowed to EUR80.50 billion from EUR94.10 billion while the trade deficit narrowed to EUR4.70 billion from EUR5.00 billion (expected deficit of EUR5.90 billion). Separately, Industrial Production was unchanged month-over-month (expected -0.2%; prior -0.2%)
Spain's Industrial Production rose 1.0% year-over-year (expected 0.8%; prior 0.3%)
Among news of note:
Bank of France governor and ECB member, Christian Noyer, said that low interest rates feed into an illusion of debt sustainability and contribute to delaying structural reforms
Reports from Spain indicate Prime Minister Mariano Rajoy will view Sunday's independence referendum in Catalonia as 'freedom of expression.' Meanwhile, Spain's Constitutional Court has said on several occasions that the referendum will be blocked

7:38 am: [BRIEFING.COM] S&P futures vs fair value: +1.50. Nasdaq futures vs fair value: +10.00.

7:38 am: [BRIEFING.COM] Nikkei...16,880.38...+87.90...+0.50%. Hang Seng...23,550.24...-99.10...-0.40%.

7:38 am: [BRIEFING.COM] FTSE...6,596.43...+45.20...+0.70%. DAX...9,355.14...-21.90...-0.20%.

U.S. Payrolls Rise as Jobless Rate Drops to Six-Year Low

By Michelle Jamrisko Nov 7, 2014 4:10 PM ET

The American labor market is powering past a global slowdown as unemployment decreased to a six-year low in October and 214,000 workers were added to payrolls.

The jobless rate fell to 5.8 percent, the lowest since July 2008, from 5.9 percent in September, Labor Department figures showed today in Washington. The increase in hiring last month followed a 256,000 advance that was larger than first estimated as job gains head for their best showing in 15 years.

The report probably keeps Federal Reserve policy makers on track to raise interest rates in 2015 even as wages continued to show little momentum. Disappointing average hourly earnings help explain the voter discontent that gave the Republican party control of the Senate in this week’s election.

“The labor market is firming,” Federal Reserve Bank of Chicago President Charles Evans said in a speech today. “Labor-market slack is definitely diminishing.” Evans has often warned of the dangers of raising interest rates too quickly.

Forecasts show central bankers view unemployment in the 5.2 percent to 5.5 percent range as consistent with full employment. The rate has dropped 1.4 percentage points since October 2013, matching the biggest 12-month retreat since 1984.

Evans said the drop in joblessness was “good news,” even as “we’ve got some distance to go.”

Stocks held at all-time highs and Treasury securities climbed. The Standard & Poor’s 500 Index rose less than 0.1 percent to 2,031.92 at the close in New York. The yield on the benchmark 10-year note, which moves inversely to prices, fell to 2.30 percent from 2.39 percent late yesterday.

Median Forecast

The October gain in payrolls fell short of the 235,000 median forecast of 100 economists surveyed by Bloomberg. Estimates ranged from increases of 140,000 to 314,000. Revisions to prior reports added 31,000 jobs to the previous two months’ job count.

Employment has climbed by at least 200,000 for nine consecutive months. The last time that’s happened was a stretch that ended in March 1995. At this year’s pace, the increase in payrolls for 2014 would be the biggest since 1999.

Hiring gains were broad-based, with factories, construction companies and retailers among those adding staff.

The one soft spot in the employment picture remains the inability of wages to show bigger increases. Average hourly earnings for all workers rose 0.1 percent in October from the prior month, and were up 2 percent since October 2013, less than the 2.1 percent median forecast. By this measure pay climbed 3.1 percent in the year before the recession began in December 2007.

Wages Disappoint

“We have sustained improvement in the labor market, but what’s frustrating is that it’s not yet generating wage growth,” said Michelle Meyer, senior U.S. economist at Bank of America Corp. in New York.

Limited wage gains partly explain Americans’ dim perceptions of the economy, which helped Republicans capture control of the Senate from Democrats and solidify their majority in the U.S. House during the midterm elections this week. The results ensured that the GOP will control both chambers of Congress for the remainder of President Barack Obama’s term.

When voters talk about the health of the economy, “they’re talking about their paychecks and not their stock portfolios,” said Jared Bernstein, a senior fellow at the Center on Budget and Policy Priorities, a Washington-based research group. Economic growth, “while solid and reliable at this point, is not showing up in median pay in the way it needs to for people to feel reconnected to the overall improvement,” said Bernstein, a former chief economic adviser to Vice President Joe Biden.

New Job

Zara Rahim, 24, is among those seeing an improvement. She just landed a communications job at a technology startup company in San Francisco and will move there after working in Washington for a digital strategy firm the last two years.

“I think things have gotten better,” she said. “A lot of Americans are disappointed with how slowly it’s going, but over time it’ll get better.”

The underemployment rate -- which includes part-time workers who’d prefer a full-time position and people who want to work but have given up looking -- declined to 11.5 percent, the lowest since September 2008, from 11.8 percent.

Fed officials cited further labor market progress last week, when they ended monthly asset purchases that bloated the central bank’s balance sheet to more than $4 trillion in a bid to stimulate growth. The policy making Federal Open Market Committee referenced “solid job gains and a lower unemployment rate.”

Global Efforts

Unlike the U.S., central bankers in Europe and Japan are battling to shore up growth. Mario Draghi yesterday sought to restore the faith of investors in the European Central Bank’s ability to revive its ailing economy. He said the ECB will buy assets for at least two years and study further stimulus. His comments came days after the Bank of Japan extended its own stimulus campaign.

Gains in employment in the U.S., and more recently a drop in prices at the gas pump, are helping to bolster consumer sentiment and underpin the household purchases that make up about 70 percent of the economy. Ford Motor Co., Toyota Motor Corp., Fiat Chrysler Automobiles NV and Nissan Motor Co. reported October sales that exceeded analysts’ estimates as buyers emboldened by falling gasoline prices flocked to sport-utility vehicles.

“The U.S. economy has steadily improved all year,” Kurt McNeil, U.S. sales chief at General Motors Co., said in a Nov. 3 statement. “Now we are poised for a stronger expansion backed by an improved job market, higher consumer confidence and lower fuel prices.”

Population Working

Today’s employment report showed the share of the population with jobs rose to 59.2 percent in October, the highest since July 2009, from 59 percent the prior month.

“The U.S. is on a roll, the momentum is pretty strong,” said Nariman Behravesh, chief economist of IHS Inc. in Lexington, Massachusetts, and the second-best forecaster of payrolls over the past two years, according to data compiled by Bloomberg.

To contact the reporter on this story: Michelle Jamrisko in Washington at mjamrisko@bloomberg.net

To contact the editor responsible for this story: Carlos Torres at ctorres2@bloomberg.net Vince Golle

Canadian Dollar Rises After Economy Unexpectedly Adds Jobs

By Andrea Wong and Ari Altstedter Nov 7, 2014 5:56 PM ET

The Canadian dollar rose after a report showed the nation unexpectedly added jobs last month and the unemployment rate dropped to a six-year low.

The currency strengthened versus almost of its 31 major counterparts. The rise in payrolls comes after Bank of Canada Governor Stephen Poloz said on Nov. 3 the economy still requires monetary stimulus to drive the recovery in the face of “headwinds” of weak global growth.

“It’s just given reason for the market to rethink the outlook for the Canadian economic backdrop as well as the Canadian dollar,” Camilla Sutton, chief foreign exchange strategist at Bank of Nova Scotia, said by phone from Toronto. “The combination of a weak Canadian dollar with a strong U.S. recovery has some benefits to Canada. The economic backdrop is not as miserable as some had expected.”

The loonie, as the Canadian dollar is known for the image of the aquatic bird on the C$1 coin, rose 0.8 percent to C$1.1329 per U.S. dollar at 5 p.m. in Toronto. One loonie buys 88.27 U.S. cents. It reached C$1.1467 on Nov. 5, the weakest since July 2009.

Employment rose by 43,100 after a jump of 74,100 the prior month and the jobless rate fell to 6.5 percent from 6.8 percent, Statistics Canada said today. Both results exceeded all economist predictions in a Bloomberg News survey that called for unemployment to rise to 6.9 percent on 5,000 job losses.

The loonie also benefited as U.S. data showed payrolls increased by 214,000 in October. The median forecast in a Bloomberg survey of 100 economists called for a 235,000 advance.

Policy View

“We’re seeing liquidation of dollar-long positions, the risk is we’ll see a squeeze a little lower,” Shaun Osborne, the chief currency strategist at Toronto-Dominion, Canada’s largest bank, said by phone. “The old saying is one swallow doesn’t make a summer. There’s a large amount of volatility in these numbers. It doesn’t change that much from the policy point of view. Medium term we’re bullish dollar-CAD.”

The Bank of Canada extended its four-year pause on interest rates Oct. 22, leaving its benchmark at 1 percent.

In contrast, the Fed ended a bond-buying program as scheduled last month and is now debating when to raise interest rates for the first time since 2006 as the world’s largest economy gathers momentum.

To contact the reporters on this story: Andrea Wong in New York at awong268@bloomberg.net; Ari Altstedter in Toronto at aaltstedter@bloomberg.net

To contact the editors responsible for this story: Dave Liedtka at dliedtka@bloomberg.net Kenneth Pringle

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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