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 Post subject: November 19th Wednesday Trade Results - No Trades
PostPosted: Thu Nov 20, 2014 12:59 am 
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Joined: Sat Jan 10, 2009 2:06 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)
http://twitter.com/wrbtrader (24/7)

Quote:
No trades today due to internet problems from Tuesday 6pm est to Wednesday 5pm est...my home network was down because of severe snow problems. No big deal because I needed a day off from the market to re-energize.

Price Action Trade Performance for Today: Emini TF ($TF_F) futures @ $0.00 dollars or +0.00 points, Emini ES ($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 @ $0.00 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=1938

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.

Attachment:
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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 the midweek session on a lower note with Tuesday's leader-Russell 2000-pacing the retreat. The small-cap index lost 1.1% while the S&P 500 surrendered 0.2% with seven sectors finishing in the red.

The benchmark index slumped at the start due to notable losses among several heavily-weighted sectors. However, the S&P 500 was able to pull away from its late-morning low thanks to relative strength in consumer discretionary (+0.5%), consumer staples (+0.4%), and energy (+0.6%).

Although the trio helped the S&P 500 recover from its low, the index could not complete its comeback as industrials (-0.3%), technology (-0.6%), and health care (-0.5%) weighed. The index was able to briefly kiss the flat line after minutes from the October FOMC meeting crossed the wires, but that move was retraced as the dust settled and it became clear the minutes did not introduce anything new into the discussion. Instead, the minutes reminded investors for the umpteenth time that the central bank intends to remain data-dependent when deciding the appropriate timing for the first rate hike.

Treasuries followed a similar intraday pattern. The 10-yr note spiked to highs immediately after the release, but returned to lows shortly thereafter. As a result, the benchmark 10-yr yield rose four basis points to 2.36%.

As mentioned earlier, only three sectors managed to spend the bulk of the session in the green. Energy (+0.6%) ended in the lead even as crude oil remained volatile during the day. WTI crude ended the pit session lower by 0.2% at $74.48/bbl.

Elsewhere, the two consumer sectors were underpinned by retailers after Staples (SPLS 13.92, +1.16), Target (TGT 72.48, +4.97), and Lowe's (LOW 62.26, +3.73) reported one-cent beats. The three soared between 6.4% and 9.1% while the SPDR S&P Retail ETF (XRT 91.04, +0.67) added 0.7%.

Retail names notwithstanding, finding areas of relative strength proved challenging. The top-weighted technology sector (-0.6%) ended among the laggards due to broad-based losses. Chipmakers settled in-line with the sector as the relative weakness among small caps weighed on sentiment in other high-beta areas.

Also of note, biotechnology tried to resists the pressure, but the iShares Nasdaq Biotechnology ETF (IBB 294.21, -1.04) slipped to lows by the close. The ETF settled lower by 0.4% after being up near 0.6% intraday. As for health care, the top-weighted countercyclical group never took the biotech bait and spent the day near its low.

Participation was in-line with long-term trends with roughly 720 million shares changing hands at the NYSE floor.

Economic data was limited to MBA Mortgage Index and Housing Starts/Building Permits:
Related Stories

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Stock Market News for November 04, 2014 Zacks

Housing starts declined 2.8% in October from an upwardly revised 1.038 million (from 1.017 million) to 1.009 million while the Briefing.com consensus pegged the reading at 1.025 million
Since June, housing starts have followed a sawtooth pattern, which has continued with the October decline
Despite the headline miss, single-family construction, which generally follows stable trends, increased 4.2% to 696,000, which was the highest reading since November 2013
Building permits slipped to a seasonally adjusted annualized rate of 1.08 million in October from an unrevised 1.031 million for September, while the Briefing.com consensus expected permits to come in at 1.04 million.
The weekly MBA Mortgage Index jumped 4.9% to follow the previous decline of 0.9%

Tomorrow, weekly Initial Claims (Briefing.com consensus 285K) and October CPI (expected -0.1%) will be released at 8:30 ET while October Existing Home Sales (consensus 5.17 million), October Leading Indicators (expected 0.6%), and the Philadelphia Fed Survey for November (consensus 18.0) will all be reported at 10:00 ET.

Nasdaq Composite +12.0% YTD
S&P 500 +10.8% YTD
Dow Jones Industrial Average +6.7% YTD
Russell 2000 -0.5% YTD

3:35 pm: [BRIEFING.COM]

Natural gas surged higher today, but lost a little steam in afternoon trading action, closing 13 cents higher at $4.37/MMBtu
Crude oil futures rose as high as $75.40/barrel today, largely on OPEC speculation., but lost a little steam and closed 0.2% lower at $74.48/barrel
Separately, the EIA released its weekly storage report, which was bearish for oil prices
Dec gold lost $3 to $1194.10/oz, while Dec silver +1% at $16.33/oz


3:00 pm: [BRIEFING.COM] The S&P 500 trades lower by 0.3% with one hour remaining in the session. The benchmark index spiked in reaction to the latest FOMC Minutes, but could not build on that move as continued weakness in groups like technology (-0.7%), health care (-0.6%), and industrials (-0.4%) caused the index to return to its opening level.

Similarly, Treasuries have also returned to their earlier levels. The 10-yr note surged in reaction to the minutes, but has moved just as quickly to a fresh low. The benchmark yield is higher by four basis points at 2.35%.

2:30 pm: [BRIEFING.COM] Equity indices remain near their recent levels with the S&P 500 (-0.1%) right below its flat line. However, Treasuries have continued their recovery and the 10-yr note is almost back to unchanged (2.32%).

Also of note, the Dollar Index (87.47, -0.11) has slipped out of a narrow range to a fresh low. The greenback trades lower against the euro (-35 pips) and the pound (-80 pips), but sits just below its best level of the day versus the yen. The dollar/yen pair is higher by 70 pips near 117.85.

2:05 pm: [BRIEFING.COM] The Federal Open Market Committee has just released the minutes from the October meeting.

Generally speaking, the release did not contain significant surprises, but Fed officials communicated the need to keep an eye on falling inflation expectations. Furthermore, many members believed that the U.S. is only facing limited risks stemming from a global slowdown.

Also of note, some participants argued in favor of removing the 'considerable time' language that has been a point of focus in recent months.

The S&P 500 spiked back to its flat line following the release while the 10-yr note moved up to lower its yield to 2.34% from 2.35%.

1:45 pm: [BRIEFING.COM] The major averages remain in negative territory ahead of the 14:00 FOMC minutes release, with the S&P 500 down 0.2% and the Dow Jones off 0.1%. Equities have spent the day in negative territory after the S&P 500 and Dow reached record highs during yesterday's session. The S&P has recovered around 7 points since its earlier session low which was set just around 11 ET.

Despite slumping earlier following a larger inventory build than expected, crude has recovered and is in the green today (+0.6% at $75.10/bbl). The energy sector is leading all sectors today with a 0.5% gain.

12:55 pm: [BRIEFING.COM] The major averages hover in the red at midday with the Russell 2000 (-0.8%) trailing the S&P 500 (-0.3%) as participants await the 14:00 ET release of the FOMC Minutes from the October meeting.

Equity indices slumped at the start with yesterday's leaders surrendering a portion of their gains from Tuesday. Furthermore, general weakness among some of the top-weighted sectors has kept the market on the defensive.

The S&P 500 reached its low shortly after 11:00 ET before attempting a turnaround with help from the two consumer sectors and energy (+0.3%).

The energy sector has narrowed its loss for the week to 0.1% amid a spike in crude oil. The energy component is higher by 0.7% at $75.16/bbl after adding more than a buck during the past hour. Elsewhere, the two consumer sectors have rallied behind retailers after Staples (SPLS 13.93, +1.17), Target (TGT 72.47, +4.96), and Lowe's (LOW 62.37, +3.84) reported one-cent beats. The three names are up between 6.6% and 9.1% while the SPDR S&P Retail ETF (XRT 91.09, +0.72) trades up 0.8%

While the strength in the aforementioned sectors has contributed to the rebound, the market is still facing weakness in a few other influential sectors. The top-weighted group-technology (-0.7%)-trails the remaining cyclical sectors while financials (-0.4%), industrials (-0.4%), and health care (-0.5%) also lag.

Notably, technology has been hit with broad-based selling interest, pressuring components of all sizes. Chipmakers have not been able to escape the selling with the PHLX Semiconductor Index down 0.8%.

Interestingly, the weakness among chipmakers and small-cap stocks has had little effect on biotechnology. The iShares Nasdaq Biotechnology ETF (IBB 296.42, +1.17) is higher by 0.4% after erasing its opening 1.0% decline. However, the broader health care sector has not rallied alongside.

Treasuries hover near their lows with the 10-yr yield up three basis points at 2.35%.

Economic data was limited to MBA Mortgage Index and Housing Starts/Building Permits:

Housing starts declined 2.8% in October from an upwardly revised 1.038 million (from 1.017 million) to 1.009 million while the Briefing.com consensus pegged the reading at 1.025 million
Since June, housing starts have followed a sawtooth pattern, which has continued with the October decline
Despite the headline miss, single-family construction, which generally follows stable trends, increased 4.2% to 696,000, which was the highest reading since November 2013
Building permits slipped to a seasonally adjusted annualized rate of 1.08 million in October from an unrevised 1.031 million for September, while the Briefing.com consensus expected permits to come in at 1.04 million.
The weekly MBA Mortgage Index jumped 4.9% to follow the previous decline of 0.9%

12:30 pm: [BRIEFING.COM] After cutting its loss in half, the S&P 500 (-0.3%) has spent the past 45 minutes near its opening level while the Dow (-0.1%) finds itself just below its flat line.

The price-weighted index trades little changed even though 21 of its 30 components display losses. However, only three index members are down near 1.0% and two of the three are among the smallest components by weight. Microsoft (MSFT 48.24, -0.51) and Verizon (VZ 50.47, -0.75) hold respective losses of 1.0% and 1.4% while UnitedHealth (UNH 97.10, -1.09) has given up 1.1%.

On the upside, the relative strength in large sector members like Boeing (BA 132.20, +1.54), Home Depot (HD 97.04, +1.06), and Wal-Mart (WMT 85.50, +1.71) has helped the index climb off its low.

12:00 pm: [BRIEFING.COM] Equity indices have climbed off their lows with the S&P 500 receiving a lift from the continued strength in consumer discretionary (+0.3%) and consumer staples (+0.3%). In addition, the energy sector (+0.4%) has jumped into the lead thanks in part to a spike in crude oil, which is now up 0.6% at $75.11/bbl.

The modest gains in the three sectors should serve as a supportive factor considering the trio accounts for nearly 32.0% of the entire market. However, the notable weakness in the technology sector (-0.9%) will pose a hurdle for the market as the group represents almost 20.0% of the S&P 500.

Elsewhere, Treasuries have maintained narrow ranges since reaching lows at the opening bell. The 10-yr yield hovers at 2.35% after marking a high near 2.36%.

11:30 am: [BRIEFING.COM] Recent action saw the S&P 500 (-0.4%) hold its ground while continued weakness among small caps has pressured the Russell 2000 (-1.4%) to a fresh low for the day.

Although the small-cap index has yet to find support, some other high-beta areas have been able to climb off their lows. To that point, the iShares Nasdaq Biotechnology ETF (IBB 294.95, -0.30) has narrowed its loss to just 0.1% after being down near 1.0% shortly after the start of the session. For its part, the broader health care sector (-0.5%) remains near its session low.

On the upside, consumer discretionary and consumer staples have extended their modest gains to 0.2% and 0.3%, respectively. Target (TGT 72.79, +5.28) has surged 8.0% after beating bottom-line expectations and guiding near the low end of estimates.

10:55 am: [BRIEFING.COM] The major averages have continued retreating from their opening levels with only two sectors showing slim gains. Both consumer staples and consumer discretionary hover just 0.1% above their unchanged levels.

Those slim gains have not been able to overshadow the underperformance of the top-weighted technology sector (-1.0%), which has faced weakness among large caps since the start. Meanwhile, chipmakers began the day in a position of relative strength, but the PHLX Semiconductor Index (-1.0%) trades in line with the sector at this juncture. ASML (ASML 105.25, +1.39) and Taiwan Semiconductor (TSM 22.40, +0.34) represent the only two advancers. ASML has added 1.4% after Evercore ISI upgraded the stock to 'Buy.'

With stocks under pressure, the CBOE Volatility Index (VIX 14.67, +0.81) hovers near its high, suggesting investors have increased their demand for downside protection.

10:35 am: [BRIEFING.COM]

Oil futures are selling off after EIA storage data... Jan crude oil is now -0.6% at $74.20/barrel
Separately, gold and silver just sold off, gold fell to a new low for the day
Dec gold is now -0.9% at $1186.00/oz, while Dec silver is -0.3% at $16.13/oz
Natural gas futures are soaring today on current weather outlooks... Dec nat gas is now +4.4% at $4.43/MMBtu
Dec copper is currently +1.1% at $3.03/lb

10:00 am: [BRIEFING.COM] Equity indices remain in the red with the Russell 2000 (-0.9%) and Nasdaq Composite (-0.6%) showing wider losses than the Dow (-0.2%) or S&P 500 (-0.3%). It is worth mentioning that the Nasdaq and Russell are showing weakness after pacing yesterday's rally.

Similarly, the health care sector (-0.6%) held the lead throughout yesterday's session, but the countercyclical group is among today's early laggards.

Treasuries have inched up from their lows, but they remain in negative territory with the 10-yr yield up three basis points at 2.35%.

9:45 am: [BRIEFING.COM] The major averages slumped out of the gate amid broad weakness. The S&P 500 trades lower by 0.2% with seven sectors in the red while the Russell 2000 (-0.9%) underperforms after leading yesterday's advance.

The industrial sector (-0.4%) is the weakest performer among cyclical groups with transports and defense contractors contributing to the opening loss. Both the Dow Jones Transportation Average and the PHLX Defense Index are down near 0.5%. Elsewhere, the top-weighted sector-technology (-0.5%)-has been pressured by large cap names. Google (GOOGL 541.42, -3.09), Microsoft (MSFT 48.42, -0.32), and Qualcomm (QCOM 71.17, -0.84) are down between 0.6% and 1.3%. As for high-beta chipmakers, the group has held up better than the Russell 2000 with the PHLX Semiconductor Index trading flat.

On the upside, consumer discretionary (+0.1%) and consumer staples (+0.1%) display modest gains.

9:13 am: [BRIEFING.COM] S&P futures vs fair value: -1.50. Nasdaq futures vs fair value: -2.50. The stock market is on track for a modestly lower open with futures on the S&P 500 trading two points below fair value. Futures on the benchmark index were able to erase their slim overnight loss by 7:30 ET, but that recovery was short-lived and followed by a return into the middle of the pre-market range.

It wouldn't be all that surprising to see the benchmark index stay within a narrow range until the release of the latest FOMC Minutes, which are expected to cross the wires at 14:00 ET. As for today's remaining data, the Housing Starts report came in below expectations (1.009 million; Briefing.com consensus 1.025 million) while Building Permits surpassed estimates (1.08 million; consensus 1.04 million). The miss in Housing Starts was partially overshadowed by a large upward revision to the September reading (to 1.038 million from 1.017 million).

On the corporate front, Target (TGT 69.55, +2.04) is on track to open higher by 3.0% after beating bottom-line expectations and guiding near the low end of estimates. In other earnings of note, Lowe's (LOW 61.45, +2.92) and Staples (SPLS 13.07, +0.31) are also on course for opening gains after both reported one-cent beats.

Treasuries are on their lows with the 10-yr yield up four basis points at 2.36%.

8:57 am: [BRIEFING.COM] S&P futures vs fair value: -2.70. Nasdaq futures vs fair value: -4.50. The S&P 500 futures trade three points below fair value.

Markets dipped across most of Asia. The Bank of Japan opined overnight, opting to keep policy on hold. The central bank lowered its inflation assessment to 1.00% from 1.25%, causing buyers to run USDJPY to a fresh seven-year high above 117.50 amid speculation additional asset purchases may be needed to reach the 2% target. Elsewhere, the breakdown in iron ore prices to the lowest levels since June 2009 continues posing problems for Australia's outlook.

------

Japan's Nikkei eased off seven-year highs, shedding 0.3%. Heavyweights Softbank and Fast Retailing weighed, falling 1.6% and 1.2%, respectively.
Hong Kong's Hang Seng endured its third consecutive decline, falling 0.7%. Hong Kong Exchanges has been weak since Monday's Stock Connect launch and gave up another 3.4% on Wednesday.
China's Shanghai Composite slipped 0.2% in its third consecutive decline. Financials saw some selling pressure with Industrial & Commercial Bank of China losing 0.8%.
India's Sensex slid 0.5% from all-time highs. Materials names were weak as Tata Steel and Sesa Sterlite fell 3.2% and 2.7%, respectively.

Major European indices trade mostly higher with Italy's MIB (+0.8%) leading the way. Elsewhere, the Bank of England released the minutes from its latest meeting which indicated a 7-2 vote in favor of staying on hold, as expected.

Economic data was limited:
Eurozone Current Account surplus expanded to EUR30.00 billion from EUR22.80 billion (expected surplus of EUR21.30 billion)
Swiss ZEW Expectations improved to -7.6 from -30.7

------

Great Britain's FTSE hovers just below its flat line with miners on the defensive. Anglo American, BHP Billiton, and Rio Tinto are down between 1.5% and 2.2%. Utilities outperform with Severn Trent and National Grid higher by 2.5% and 0.7%, respectively.
In France, the CAC trades up 0.4% amid strength in financials. AXA, BNP Paribas, Credit Agricole, and Societe Generale hold gains between 0.6% and 1.4%. Oil services company Technip is the biggest laggard, down 1.3%.
Germany's DAX has added 0.5% with help from bank shares. Commerzbank, Deutsche Bank, and Munich Re are up between 0.8% and 1.1%. Steelmaker ThyssenKrupp is the weakest performer, down 1.3%.
In Italy, the MIB outperforms with a gain of 0.8%. Banca di Milano Scarl, Banco Popolare, Mediobanca, and UnipolSai are up between 1.9% and 3.1%.

8:30 am: [BRIEFING.COM] S&P futures vs fair value: -3.20. Nasdaq futures vs fair value: -5.30. The S&P 500 futures trade three points below fair value.

Housing Starts fell to a seasonally adjusted annualized rate of 1.009 million units in October. That was down from a revised 1.038 million units in September. The Briefing.com consensus expected starts to decrease to 1.025 million units.

Building permits rose to a seasonally adjusted annualized rate of 1.08 million in October versus an unrevised 1.031 million for September. The Briefing.com consensus expected permits to come in at 1.04 million.

7:57 am: [BRIEFING.COM] S&P futures vs fair value: -1.90. Nasdaq futures vs fair value: -4.00. U.S. equity futures trade little changed amid upbeat action overseas. The S&P 500 futures hover two points below fair value after trimming their overnight losses. All in all, futures have maintained a narrow range once again, ahead of this afternoon's release of the FOMC Minutes from the October meeting.

In addition to the minutes, which will cross at 14:00 ET, participants received the latest weekly MBA Mortgage Index (+4.9%; prior -0.9%) while the October Housing Starts (Briefing.com consensus 1.025 million) and Building Permits (consensus 1.04 million) report will be released at 8:30 ET.

Treasuries are modestly lower with the 10-yr yield up two basis points at 2.34%.

In U.S. corporate news of note:

Cliffs Natural Resources (CLF 9.49, -0.72): -7.1% after the company said it is pursuing exit options for its iron ore operations in Eastern Canada.
Leju Holdings (LEJU 12.90, -1.26): -8.9% after beating by a penny on light revenue and below-consensus guidance.
Lowe's (LOW 60.91, +2.38): +4.1% following its one-cent beat and improved earnings/revenue guidance.
Staples (SPLS 13.15, +0.39): +3.1% in reaction to a one-cent beat.
Vipshop Holdings (VIPS 22.45, -1.26): -5.3% despite reporting a one-cent beat on better than expected revenue and guiding higher.

Reviewing overnight developments:

Asian markets ended lower. China's Shanghai Composite -0.2%, Japan's Nikkei -0.3%, and Hong Kong's Hang Seng -0.7%.
In economic data:
Japan's All Industries Activity Index rose 1.0% month-over-month (expected 1.2%; previous 0.0%) while Leading Index held at 105.6, as expected.
South Korea's PPI slipped 0.6% month-over-month (last -0.3%) while the year-over-year reading decreased 0.7% (consensus -0.5%; last -0.4%)
Australia's MI Leading Index came in unchanged (prior -0.1%)
In news:
The Bank of Japan made no changes to its policy stance, but raised its assessment of the export market.

Major European indices trade mostly higher. France's CAC +0.6%, Germany's DAX +0.6%, and Great Britain's FTSE is flat. Elsewhere, Italy's MIB +0.8% and Spain's IBEX +0.1%.
Economic data was limited:
Eurozone Current Account surplus expanded to EUR30.00 billion from EUR22.80 billion (expected surplus of EUR21.30 billion)
Swiss ZEW Expectations improved to -7.6 from -30.7
Among news of note:
The Bank of England released the minutes from its latest meeting which indicated a 7-2 vote in favor of staying on hold, as expected.

6:52 am: [BRIEFING.COM] S&P futures vs fair value: -2.00. Nasdaq futures vs fair value: -2.00.

6:52 am: [BRIEFING.COM] Nikkei...17,288.75...-55.30...-0.30%. Hang Seng...23,373.31...-155.90...-0.70%.

6:52 am: [BRIEFING.COM] FTSE...6,701.63...-7.20...-0.10%. DAX...9,491.36...+35.00...+0.40%.

Fed Officials on Guard for Signs of Lower Inflation Expectations

By Christopher Condon and Jeff Kearns Nov 19, 2014 4:23 PM ET

Federal Reserve policy makers are on guard for signs that investors and the public are losing confidence in their ability to keep prices stable in a moderate recovery with little wage growth.

“Many participants observed the committee should remain attentive to evidence of a possible downward shift in longer-term inflation expectations,” according to a record of the Oct. 28-29 Federal Open Market Committee meeting released today in Washington. “Some of them noted that if such an outcome occurred, it would be even more worrisome if growth faltered.”

Policy makers are watching the outlook for inflation as they weigh the timing of the first interest-rate increase since 2006, which most officials expect to happen next year. The Fed last month ended a bond-purchase program intended to boost growth, citing improvements in the labor market.

While unemployment has fallen faster than forecast, inflation has remained below the Fed’s 2 percent goal for 29 straight months, and the pace of price increases has been slowing.

Policy makers at last month’s meeting said the risk of inflation persisting below their goal had diminished. While some market-based measures of expectations had declined, surveys of consumers’ outlook for prices remained stable.

Since the FOMC meeting, one measure of inflation expectations has dropped. A Thomson Reuters/University of Michigan survey released last week showed that consumers see inflation averaging 2.6 percent a year five to 10 years from now, down from 2.8 percent predicted last month and the lowest reading since March 2009.

Center Stage

“Falling inflation expectations are likely to take center stage going forward,” said Thomas Costerg, an economist at Standard Chartered Plc in New York. “If the market doesn’t believe in their ability to push inflation up to 2 percent, that’s going to be a concern.”

The Standard & Poor’s 500 Index fell 0.2 percent to close at 2,048.72 in New York. The yield on the 10-year Treasury note increased four basis points, or 0.04 percentage point, to 2.36 percent on expectations the minutes don’t signal a change in the odds of a rate increase next year.

Low inflation damages an economy if it becomes sustained deflation, which can sap demand by encouraging consumers to delay spending in the expectation of lower prices in the future. Central bankers watch expectations as a signal for the direction of future inflation.

Well Anchored

While officials last month were on guard for a possible decline, they considered expectations to be “well anchored” and expressed confidence that the pace of price increases would move up toward their goal “over the medium term as resource slack diminished,” the minutes showed.

Prices as measured by the Fed’s preferred gauge rose 1.4 percent in September from a year earlier and haven’t exceeded the Fed’s target since March 2012.

Inflation remains low even as the labor market strengthens. Unemployment dropped last month to a more than six-year low of 5.8 percent, close to the level that most policy makers consider full employment. Employers added 214,000 workers in October, keeping job growth on pace for the best annual gain in 15 years.

At the same time, some measures of labor-market health continue to show weakness. More than 7 million Americans are working part time because they can’t find full-time jobs. Of those who don’t have jobs, 32 percent have been unemployed for six months or more.

While policy makers last month “pointed to a somewhat weaker economic outlook and increased downside risks in Europe, China, and Japan,” they judged that the impact on the U.S. economy is “likely to be quite limited.”

The minutes showed a wide-ranging debate over whether to retain the committee’s pledge to keep interest rates near zero for a “considerable time.” The panel ultimately adopted the suggestion from some participants to add wording emphasizing the timing on rate increases would depend on incoming economic data.

To contact the reporters on this story: Christopher Condon in Washington at ccondon4@bloomberg.net; Jeff Kearns in Washington at jkearns3@bloomberg.net

To contact the editors responsible for this story: Chris Wellisz at cwellisz@bloomberg.net Alister Bull

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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