TheStrategyLab.com Price Action Trading Support Forum

Forum for price action traders that want to learn WRB Analysis basic tutorial chapters 1, 2 and 3 prior to purchasing our advance trade methods. Hashtags: #wrbanalysis #wrbzone #wrbhiddengap #priceaction #trading
It is currently Thu Mar 28, 2024 12:01 pm

All times are UTC - 5 hours [ DST ]




Post new topic Reply to topic  [ 1 post ] 
Author Message
 Post subject: December 2nd Tuesday Trade Results - Profit $1690.00
PostPosted: Wed Dec 03, 2014 1:56 am 
Offline
Site Admin

Joined: Sat Jan 10, 2009 2:06 pm
Posts: 4335
Location: Canada
Image

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)

Attachment:
120214-wrbtrader-Price-Action-Trading-PnL-Blotter-Profit+1690.00.png
120214-wrbtrader-Price-Action-Trading-PnL-Blotter-Profit+1690.00.png [ 174.78 KiB | Viewed 312 times ]

click on the above image to view today's performance verification

Price Action Trade Performance for Today: Emini TF ($TF_F) futures @ $1,690.00 dollars or +16.90 points, Emini ES ($ES_F) futures @ $0.00 dollars or +00.00 points, Light Crude Oil CL ($CL_F) futures @ $0.00 dollars or +0.00 points, Gold GC ($GC_F) futures @ $0.00 dollars or +0.00 points and EuroFX 6E ($6E_F) futures @ $0.00 dollars or +0.0000 ticks. Total Profit @ $1,690.00 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 in ##TheStrategyLab chat room 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=137&t=1949

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=252&t=2585

-----------------------------

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:
120214-Key-Price-Action-Markets.png
120214-Key-Price-Action-Markets.png [ 1.32 MiB | Viewed 313 times ]

click on the above image to view today's price action of key markets

4:10 pm: [BRIEFING.COM] The stock market enjoyed a broad rebound on Tuesday after starting the week with a Monday retreat. The S&P 500 settled higher by 0.6% while the Russell 2000 (+1.2%) displayed relative strength. Despite today's outperformance, the small-cap index could only narrow its weekly decline to 0.4% while the S&P 500 reclaimed most of its loss from Monday.

The benchmark index spent the day in a steady advance with M&A news from this morning acting as a supportive factor. In the technology sector (+0.3%), Cypress Semiconductor (CY 11.92, +1.48) agreed to a $4 billion merger of equals with Spansion (CODE 27.86, +5.01) while health care component (+1.1%) Avanir Pharmaceuticals (AVNR 16.92, +1.92) agreed to be acquired by Otsuka Pharmaceuticals for $3.5 billion in cash. Also of note, insurer Aviva (AV 15.64, -0.09) announced its acquisition of Friends Life Group.

Outside of corporate deals, the Tuesday session was very quiet, but somewhat surprisingly, trading volume surpassed recent averages with 795 million shares changing hands at the NYSE.

Nine of ten sectors were able to register gains with energy (+1.3%) ending in the lead for the second day in a row. The sector spent the bulk of the session ahead of other groups even as crude oil fell 3.0% to $66.97/bbl. Dow components Chevron (CVX 114.02, +2.29) and ExxonMobil (XOM 94.19, +1.84) both gained near 2.0% while Royal Dutch Shell (RDS.A 69.30, +1.81) surged 2.7% amid press reports the company may be interested in acquiring BP (BP 40.72, +0.89).

Elsewhere, financials (+1.0%) and industrials (+0.8%) were the only other outperformers among cyclical sectors. The industrial space rallied behind transport stocks with their strength sending the Dow Jones Transportation Average higher by 1.2%.

Meanwhile on the countercyclical side, the health care sector (+1.1%) held a solid gain throughout the session with biotechnology providing support. The iShares Nasdaq Biotechnology ETF (IBB 306.87, +6.25) jumped 2.1% to a fresh record high. As for the remaining defensively-oriented groups, consumer staples (+0.4%) and telecom services (-1.8%) lagged while the utilities sector (+0.7%) ended just ahead of the broader market.

Treasuries finished on their lows with the 10-yr yield up five basis points at 2.29%.

Economic data was limited to the Construction Spending report for October, which increased 1.1% while the Briefing.com consensus expected an increase of 0.5%. The value of construction put in place increased 0.9%, which will be a positive factor in Q4 GDP computations.

Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET while the ADP Employment Change report for November will cross the wires at 8:15 ET (Briefing.com consensus 225K). Third quarter Productivity (consensus 2.4%) and Unit Labor Costs data (expected 0.0%) will be reported at 8:30 ET while the November ISM Services report (consensus 57.5) will be released at 10:00 ET. Also of note, the Federal Reserve will release its December Beige Book at 14:00 ET.

Nasdaq Composite +13.9% YTD
S&P 500 +11.8% YTD
Dow Jones Industrial Average +7.9% YTD
Russell 2000 +0.4% YTD

3:35 pm: [BRIEFING.COM]

Commodities took a hit today on strength in the dollar index
The CRB Reuters/Thomson Commodity Index lost just over 2% today
Oil prices slid lower and natural gas extended losses
Jan crude oil ended the day $2.05 lower at $66.97/barrel, while Jan nat gas fell $0.13 at $3.88/MMBtu
Jan gold lost $19.60 to $1198.60/oz, while Mar silver fell $0.25 to $16.45/oz
Mar copper climbed off its LoD and erased most of its losses, ending 2 cents lower at $2.88/lb

2:55 pm: [BRIEFING.COM] The S&P 500 trades higher by 0.7% with one hour remaining in the session. The benchmark index has spent the entire trading day in a steady advance and now hovers within ten points of its intraday record high at 2,075.76 that was registered on Friday.

The benchmark index dipped yesterday, but today's recovery has been fueled by some of the groups that displayed relative weakness on Monday. Health care (+1.2%) and financials (+1.0%) have erased yesterday's losses and they now hold respective week-to-date gains of 1.0% and 0.3%. Also of note, the energy sector (+1.6%) is enjoying its second consecutive gain and is now up 2.3% for the week.

2:30 pm: [BRIEFING.COM] The S&P 500 trades higher by 0.6% while the Russell 2000 (+1.1%) continues showing relative strength. Investors received just one economic report today-October Construction Spending-but tomorrow is shaping up to be a bit busier on the data front.

The weekly MBA Mortgage Index will kick things off at 7:00 ET while the ADP Employment Change report for November (Briefing.com consensus 225K) will give an early look into last month's hiring trends at 8:15 ET. Shortly after the ADP report, investors will receive Q3 Productivity (consensus 2.4%) and Unit Labor Costs data (consensus 0.0%) while the ISM Services report for November will top things off at 10:00 ET (expected 57.5).

Also of note, the Federal Reserve will release its Beige Book for December at 14:00 ET.

2:00 pm: [BRIEFING.COM] Quiet afternoon action continues with the S&P 500 (+0.6%) trading just below its session high that was notched within the past 30 minutes. Given its current level, the benchmark index has erased the bulk of yesterday's decline and is now down just 0.1% so far this week.

Elsewhere, the Dow Jones Industrial Average (+0.5%) has erased yesterday's loss and is now up 0.2% since last Friday. The price-weighted index has received significant support from the two energy listings with Chevron (CVX 114.18, +2.45) and ExxonMobil (XOM 94.53, +2.18) both up near 2.3%. Fittingly, the energy sector (+1.7%) remains in the lead.

1:30 pm: [BRIEFING.COM] After selling off slightly just after 12:30 ET, the US indices have recovered and sit just under their daily highs with the S&P 500 (+0.5%) and the Dow Jones (+0.4%).

Energy remains the top gainer on the day (+1.6%) despite crude dropping 1.75% on the day, as those companies recover from heavy sell-offs the last few trading sessions. On the contrary, Telecoms (-1.2%) remain the sole decliner on the day.

In equities, Schlumberger (SLB 85.31, +0.47) disclosed that due to expectations of lower exploration spending, it is restructuring its WesternGeco marine seismic fleet to lower its operating costs and expects to record a pretax impairment charge of ~$800 mln in Q4 of 2014.

Auto sales have been reported by the manufacturers throughout the day; Briefing.com will provide a review of the results on Wednesday.

Looking ahead, Fed President William Dudley is scheduled to speak at 15:30 ET at Lehman College in NY before students and faculty.

12:55 pm: [BRIEFING.COM] Equity indices sport midday gains with the S&P 500 trading higher by 0.4% while the Russell 2000 (+0.9%) outperforms. The key indices spent the first 45 minutes of the session in a steady advance, and have held near their highs since then.

In general, the first half of today's session has been very quiet with the market recovering a big portion of yesterday's decline. The energy sector (+1.5%) began the day on the defensive, but was able to surge into the lead even as crude oil remains weak, trading lower by 1.7% at $67.82/bbl. Dollar strength has likely contributed to weakness in commodities as the Dollar Index (88.61, +0.66) trades up 0.8% after overtaking its November high.

Elsewhere among cyclical sectors, industrials (+0.5%) and financials (+0.6%) hold solid gains while consumer discretionary (+0.1%) and technology (unch) lag.

Notably, the technology sector tried to join the morning rally, but heavy resistance has sent the group back to its flat line. Top-weighted sector components are mixed at midday with IBM (161.92, +0.38) trading higher by 0.2%, Microsoft (MSFT 48.34, -0.28) lower by 0.6%, and Apple (AAPL 115.03, -0.04) trading flat.

Meanwhile on the countercyclical side, the health care sector (+0.8%) has shown relative strength since the start with help from biotechnology. The iShares Nasdaq Biotechnology ETF (IBB 305.26, +4.64) is higher by 1.5% after erasing yesterday's decline.

The health care sector represents the lone outperformer on the defensively-oriented side. Consumer staples (+0.1%) and telecom services (-1.1%) lag while the utilities sector trades in-line with the broader market.

Treasuries hover near their lows after retreating through the morning. The 10-yr yield is higher by four basis points at 2.28%.

Economic data was limited to the Construction Spending report for October, which increased 1.1% while the Briefing.com consensus expected an increase of 0.5%. The value of construction put in place increased 0.9%, which will be a positive factor in Q4 GDP computations.

12:25 pm: [BRIEFING.COM] Not much change in the major averages with the S&P 500 (+0.5%) having spent the past 90 minutes in a two-point range just below its session high. In fact, the benchmark index made the bulk of its move during the first 45 minutes of the session and has held its ground since then.

Although the S&P 500 continues trading near its high, a handful of sectors have retreated from their best levels of the day. Energy (+1.5%), financials (+0.8%), and health care (+0.7%) continue providing support to the benchmark index while consumer staples (unch), consumer discretionary (+0.2%), and telecom services (-1.0%) are on their lows.

Elsewhere, Treasuries have inched up from their lows with the 10-yr yield at 2.27% (+3 bps).

11:55 am: [BRIEFING.COM] Equity indices hover just below their highs as the quiet session continues. Although the S&P 500 (+0.5%) has not moved much over the past hour, the Dollar Index (88.62, +0.67) has continued its advance past the November high.

The dollar has held its ground against the yen (119.15) since the opening bell, but a recent downtick in the euro has helped the Dollar Index to a new session high. Currently, euro/dollar trades near 1.2385, which puts the pair just 25 pips above its late November low with the European Central Bank's policy meeting coming up on Thursday.

11:30 am: [BRIEFING.COM] The S&P 500 (+0.5%) remains near its recently-established high while the Russell 2000 (+1.5%) has inched up from its recent level.

Cyclical sectors were responsible for the bulk of yesterday's decline, but the growth-sensitive groups are working to recover those losses today. The energy sector has extended its gain to 1.2% while another cyclical group-financials-follows with a solid gain of 0.8%. Top-weighted components have contributed to the relative strength with Bank of America (BAC 17.08, +0.29), Citigroup (C 53.97, +0.62), and Goldman Sachs (GS 190.16, +1.96) up between 1.1% and 1.7%.

Elsewhere, Treasuries continue drifting near their lows with the 10-yr yield up four basis points at 2.28%.

10:55 am: [BRIEFING.COM] The major averages hover at their best levels of the session with the S&P 500 trading higher by 0.4%. Only the telecom services sector (-0.6%) remains in the red at this juncture while the other nine groups display gains between 0.1% (technology) and 1.1% (energy).

The energy sector has been able to take the lead after climbing off its opening low. The sector has been able to charge higher even as crude oil continues trading lower by 2.0% at $67.62/bbl.

Elsewhere, the second-best performer-health care-is the only real standout among countercyclical groups. As mentioned earlier, the telecom sector sits in the red while consumer staples (+0.1%) and utilities (+0.2%) hold slim gains.

10:35 am: [BRIEFING.COM]

The dollar index is trading 0.7% higher this morning at 88.54, which is weighing on commodities this morning
Jan WTI crude oil futures are pulling back following a big run yesterday and are now -2.4% at $67.36/barrel
Jan natural gas is extending recent losses and is now -2.2% at $3.92/MMBtu
Metals are in the red as well...
Jan gold is -1.8% at $1196.30/oz
Mar silver -2% at $16.37/oz
Mar copper -0.8% at $2.88/lb

10:00 am: [BRIEFING.COM] The S&P 500 trades higher by 0.3%.

Just reported, Construction Spending increased 1.1% month-over-month in October, while the Briefing.com consensus expected an increase of 0.6%.

9:40 am: [BRIEFING.COM] As expected, the major averages climbed out of the gate. The small cap Russell 2000 (+0.7%) has had the best showing in the early going after leading yesterday's decline. Meanwhile, the S&P 500 trades higher by 0.2% with eight sectors holding gains.

The health care sector (+0.6%) has claimed the lead with help from biotechnology as the iShares Nasdaq Biotechnology ETF (IBB 304.66, +4.05) trades higher by 1.4%. Other influential sectors are a bit more mixed with financials (+0.4%) and consumer discretionary (+0.3%) trading ahead of the broader market while technology (-0.1%) and energy (-0.4%) lag.

Once again, the energy sector has had to contend with a decline in crude oil. The energy component is lower by 2.0% at $67.66/bbl with dollar strength likely contributing to the weakness. The Dollar Index (88.47, +0.52) hovers at its best level of the session, which coincides with its November high.

Treasuries are on their lows with the 10-yr yield up four basis points at 2.27%.

The Construction Spending report for October will be released at 10:00 ET (Briefing.com consensus 0.6%).

9:16 am: [BRIEFING.COM] S&P futures vs fair value: +1.30. Nasdaq futures vs fair value: +6.70. The stock market is on track for a modestly higher open with futures on the S&P 500 trading one point above fair value. Index futures have maintained a narrow range throughout the overnight session that was largely uneventful. Markets in Asia rallied with China's Shanghai Composite (+3.1%) pacing the regional advance while European indices trade in the green as the session continues.

Domestically, investors did not receive any corporate earnings of note, but there was some M&A news in the technology sector. Cypress Semiconductor (CY 11.75, +1.32) has added 12.6% in pre-market action after agreeing to merge with Spansion (CODE 26.90, +4.05) as part of a $4 billion all-stock transaction.

On the economic front, today's data will be limited to the Construction Spending report for October, which will be released at 10:00 ET (Briefing.com consensus 0.6%).

Treasuries hold modest losses with the 10-yr yield higher by two basis points at 2.25%.

8:58 am: [BRIEFING.COM] S&P futures vs fair value: +2.00. Nasdaq futures vs fair value: +7.50. The S&P 500 futures trade two points above fair value.

Markets gained across most of Asia. China's Shanghai Composite (+3.1%) surged to its best levels since July 2011 amid speculation the People's Bank of China will do more to stimulate growth. Elsewhere, the Reserve Bank of Australia kept its key rate at 2.50% and hinted the next move could be a rate cut. Also of note, the Reserve Bank of India held its benchmark interest rate at 8.00% and said it would be comfortable with inflation +/-2% of its 4% target.

In economic data:
Japan's Average Cash Earnings rose 0.5% year-over-year (expected 0.8%; previous 0.7%)
South Korea's CPI slipped 0.2% month-over-month (expected 0.0%; last -0.3%) while the year-over-year reading increased 1.0% (consensus 1.1%; prior 1.2%)
Australia's current account deficit narrowed to $12.50 billion from $13.90 billion (expected deficit of $13.50 billion) while Building Approvals jumped 11.4% month-over-month (expected 5.2%; last -11.2%)
New Zealand's ANZ Commodity Price Index fell 1.6% month-over-month (previous -0.8%)

------

Japan's Nikkei rallied 0.4% to a fresh seven-year high as traders shrugged off yesterday's sovereign downgrade at Moody's. The gains came despite heavyweights Fast Retailing and Softbank posting respective losses of 0.4% and 1.6%.
Hong Kong's Hang Seng added 1.2% to hold the 200-day average. Insurers provided support as Ping An jumped 6.1% and China Life rallied 5.9%.
China's Shanghai Composite soared 3.1% with the gain fueled by further rate cut speculation. Financials saw strong gains with Bank of Communications climbing the daily limit, 10%.
India's Sensex slid 0.4% off all-time highs after the RBI held policy steady. Automakers were a drag as Mahindra & Mahindra and Tata Motors fell 2.4% and 1.3%, respectively.

Major European indices trade mostly higher with Great Britain's FTSE (+1.1%) in the lead. Investors in Europe have begun focusing on the ECB meeting scheduled for Thursday with some expecting the central bank to announce the start of a sovereign QE program.

Economic data was limited:
Eurozone PPI fell 0.4% month-over-month (expected 0.3%; last 0.2%) while the year-over-year reading declined 1.3%, as expected
Great Britain's Construction PMI eased to 59.4 from 61.4 (consensus 61.2)
Spain's claimant count declined 14,700 (expected 57,300; last 79,200)

------

Great Britain's FTSE is higher by 1.1% with miners and energy names in the lead. BP, Tullow Oil, and BHP Billiton are up between 2.3% and 4.8%. Royal Mail is the weakest performer, down 2.7%.
In France, the CAC trades up 0.4% with energy names in the lead. Solvay has jumped 1.4% and Total is higher by 2.4%. Financials lag with Credit Agricole and Societe Generale both down near 0.5%.
Germany's DAX hovers just below its flat line. Chemical companies lead with BASF up 1.2% and Linde trading higher by 1.1%. On the flip side, Bayer and Merck KGaA are both down near 1.0%.
Spain's IBEX has added 0.7% with help from bank shares. Bankia, Caixabank, Banco Popular, and BBVA hold gains between 1.0% and 2.6%.

8:25 am: [BRIEFING.COM] S&P futures vs fair value: +3.60. Nasdaq futures vs fair value: +8.50. U.S. equity futures continue holding modest gains with the S&P 500 futures trading roughly three points below their overnight high. Barring any unexpected headlines, the market is on track to rebound from yesterday's decline that caused the S&P 500 to surrender 0.7%.

Similar to equities, the Dollar Index retreated yesterday, but the Index could not be kept down for long. It currently trades higher by 0.5% (88.40, +0.45), which represents a full recovery from yesterday's decline. Today's dollar strength has come at the expense of the yen with the dollar/yen pair trading higher by almost 100 pips at 119.22. The greenback has also rallied against the euro ahead of Thursday's ECB meeting. The euro/dollar pair hovers near 1.2420 with the recent swing low lurking just 50 pips below.

7:57 am: [BRIEFING.COM] S&P futures vs fair value: +4.60. Nasdaq futures vs fair value: +12.70. U.S. equity futures trade modestly higher amid upbeat action overseas. The S&P 500 futures hover five points above fair value after slipping from their highs shortly after the start of the European session.

Generally speaking, the morning has been very quiet with just a few names making individual moves.

Today's economic data will be limited to the Construction Spending report for October, which will be released at 10:00 ET (Briefing.com consensus 0.6%).

Treasuries are little changed with the 10-yr yield at 2.24%.

In U.S. corporate news of note:

Cypress Semiconductor (CY 12.00, +1.57): +15.1% after agreeing to merge with Spansion (CODE 27.50, +4.65) as part of a $4 billion all-stock transaction

Reviewing overnight developments:

Asian markets ended higher. Japan's Nikkei +0.4%, Hong Kong's Hang Seng +1.2%, and China's Shanghai Composite +3.1%
In economic data:
Japan's Average Cash Earnings rose 0.5% year-over-year (expected 0.8%; previous 0.7%)
South Korea's CPI slipped 0.2% month-over-month (expected 0.0%; last -0.3%) while the year-over-year reading increased 1.0% (consensus 1.1%; prior 1.2%)
Australia's current account deficit narrowed to $12.50 billion from $13.90 billion (expected deficit of $13.50 billion) while Building Approvals jumped 11.4% month-over-month (expected 5.2%; last -11.2%)
New Zealand's ANZ Commodity Price Index fell 1.6% month-over-month (previous -0.8%)
In news:
The Reserve Bank of Australia kept its key interest rate at 2.5%, as expected
The Reserve Bank of India also maintained its policy stance, keeping its key rate at 8.0%, as expected
China's Shanghai Composite soared to its best level since July 2011 with significant help from brokerages and bank listings amid speculation the People's Bank of China will act to stimulate growth

Major European indices trade mostly higher. Great Britain's FTSE +1.2%, France's CAC +0.4%, and Germany's DAX is flat. Elsewhere, Italy's MIB +0.5% and Spain's IBEX +0.6%
Economic data was limited:
Eurozone PPI fell 0.4% month-over-month (expected 0.3%; last 0.2%) while the year-over-year reading declined 1.3%, as expected
Great Britain's Construction PMI eased to 59.4 from 61.4 (consensus 61.2)
Spain's claimant count declined 14,700 (expected 57,300; last 79,200)
Among news of note:
Investors in Europe have begun focusing on the ECB meeting scheduled for Thursday with some expecting the central bank to announce the start of a sovereign QE program

6:53 am: [BRIEFING.COM] S&P futures vs fair value: +2.00. Nasdaq futures vs fair value: +8.00.

6:53 am: [BRIEFING.COM] Nikkei...17,663.22...+73.10...+0.40%. Hang Seng...23,654.30...+286.90...+1.20%.

6:53 am: [BRIEFING.COM] FTSE...6,726.18...+69.50...+1.00%. DAX...9,942.49...-21.50...-0.20%.

Dollar Rises to 5-Year High on Economy as Ruble Slides With Oil

By Rachel Evans Dec 2, 2014 5:31 PM ET

A gauge of the dollar rose to the highest in five years before economic reports this week that analysts forecast will strengthen the case for tighter monetary policy in the U.S. amid increased stimulus in Europe and Japan.

The greenback advanced to a seven-year high versus the yen before data Dec. 5 that economists predict will show American employers added 200,000 jobs for a 10th month. Australia’s dollar slid after the central bank kept interest rates at a record low. Russia’s ruble and the Norwegian krone fell as oil prices resumed a decline. Federal Reserve Vice Chairman Stanley Fischer said low crude prices are a boon to the U.S. economy.

“Dollar strength is here to stay, and it is going to only continue as we move toward less accommodative policy,” Jennifer Vail, the head of fixed income at Minneapolis-based U.S. Bank Wealth Management, which oversees $120 billion, said by phone. “We’re seeing some continuing signs of stabilization in growth domestically.”

The Bloomberg Dollar Spot Index, which tracks the greenback against the currencies of 10 trading partners, rose 0.7 percent to 1,111.22 at 5 p.m. New York time, its highest closing level since March 2009. The gauge has climbed 9 percent this year, poised for its biggest advance since at least 2004.

The dollar appreciated 0.7 percent to $1.2383 per euro and climbed 0.7 percent to 119.21 yen, having reached 119.29, the strongest since August 2007. The euro traded at 147.63 yen.

Won, Aussie

South Korea’s won gained the most of the U.S. currency’s 31 major peers, adding 0.6 percent, before minutes from the nation’s central bank showed a unanimous decision to hold interest rates at 2 percent last month. Concerns on the weak yen and deflation are exaggerated, one board member said.

The Aussie fell after the Reserve Bank of Australia kept its overnight cash rate target at 2.5 percent. The currency slipped 0.5 percent to 84.45 U.S. cents, having lost 5.3 percent against the greenback so far this year.

“Key commodity prices have declined significantly in recent months,” the RBA said in its statement. Today’s board decision was predicted by all economists surveyed by Bloomberg News.

Russia’s ruble led losses versus the dollar as oil resumed its decline, falling 3.1 percent to $66.88 per barrel in New York to push its drop this year to 32 percent.

Oil Effect

The ruble fell 5.1 percent to 53.8500, after touching a record-low of 54.3990, as officials said Russia risks entering its first recession since 2009. Gross domestic product may shrink 0.8 percent next year, compared with an earlier estimate of 1.2 percent growth, Deputy Economy Minister Alexei Vedev told reporters in Moscow today.

Norway’s krone depreciated 1.3 percent to 7.0298 per dollar after reaching 7.0618 yesterday, the weakest level since March 2009.

The Organization of Petroleum Exporting Countries may hold an emergency meeting in the first quarter, Venezuela’s Foreign Minister Rafael Ramirez said in an interview with Panorama newspaper. OPEC, responsible for about 40 percent of the world’s oil supply, resisted calls from members including Venezuela to reduce output at a Nov. 27 meeting.

While dropping oil prices may spur U.S. consumption, Fischer told a CEO Council conference in Washington that he can’t be specific about when policy makers will increase interest rates.

Fischer’s View

“We can’t give precise estimates of dates we don’t know,” he said. Asked whether officials will drop a pledge to keep rates low for a “considerable time,” Fischer said “it’s clear we were closer to getting rid of that than we were a few months ago.”

The Fed stopped buying bonds under its quantitative-easing strategy in October, even as the Bank of Japan is expanding its monetary base and the European Central Bank is considering starting its own QE program as those economies battle deflation.

“I’m a big fan of the U.S. dollar,” said Neil Jones, head of hedge fund sales at Mizuho Bank Ltd. in London. “The policy divergence between the Fed and the rest of the developed economies is supportive.”

U.S. employers added 230,000 jobs last month, compared with 214,000 in October, according to economists surveyed by Bloomberg News before the Dec. 5 report. The unemployment rate held at 5.8 percent, its lowest since 2008, the median forecast of 82 analysts shows.

Dollar Bets

The U.S. currency has gained 9.6 percent in the past year, the best performer among 10 developed-nation currencies tracked by Bloomberg Correlation-Weighted Indexes. The euro fell 1.1 percent and the yen dropped 7.3 percent.

Hedge funds and other large speculators increased wagers on the dollar’s strength versus eight of its major peers to a record last week. The difference in the number of positions on gains versus those on declines -- net longs -- was 418,825 as of Nov. 25, according to the Washington-based Commodity Futures Trading Commission. It was 393,529 a week earlier.

“All roads lead to the dollar,” Andrew Wilkinson, the Greenwich, Connecticut-based chief market analyst at Interactive Brokers LLC, said in a phone interview. “At some point you’ll find that everybody’s over one side of the boat and the dollar will be ripe for a contrarian trade. But, right now, it just doesn’t feel like that.”

To contact the reporter on this story: Rachel Evans in New York at revans43@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)
Image@ http://twitter.com/wrbtrader Image@ http://stocktwits.com/wrbtrader

http://www.thestrategylab.com
Phone: +1 708 572-4885
Business Hours: 8am - 5pm est (Mon - Fri)
Skype Messenger: kebec2002
questions@thestrategylab.com
Go Back To TheStrategyLab.com Homepage


Top
 Profile  
 
Display posts from previous:  Sort by  
Post new topic Reply to topic  [ 1 post ] 

All times are UTC - 5 hours [ DST ]


Who is online

Users browsing this forum: No registered users and 3 guests


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot post attachments in this forum

Search for:
Jump to:  
cron
Powered by phpBB © 2000, 2002, 2005, 2007 phpBB Group
Translated by Xaphos © 2007, 2008, 2009 phpBB.fr