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 Post subject: December 9th Tuesday Trade Results - Profit $1300.00
PostPosted: Wed Dec 10, 2014 1:41 am 
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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 @ $930.00 dollars or +9.30 points, Emini ES ($ES_F) futures @ $0.00 dollars or +00.00 points, Light Crude Oil CL ($CL_F) futures @ $370.00 dollars or +0.37 points, Gold GC ($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 @ $1,300.00 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=1954

Quote:
All of my real-time posted trades involves price action concepts from the WRB Analysis free study guide, Advance WRB Analysis Tutorial Chapters 4 - 12 and the Volatility Trading Report (VTR) trade signal strategies. Analysis -----> Trade Signals

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 Advance WRB Analysis Tutorial Chapters @ 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

Analysis -----> Trade Signals

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).

All WRB Analysis Tutorial Chapters 1 - 12 are included in the purchase of the Volatility Trading Report (VTR).

Image Trading Plan Daily Routine @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=252&t=2585

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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 the Tuesday session on a mixed note after starting the day with sharp losses. The Russell 2000 and Nasdaq Composite paced the rebound, climbing 1.7% and 0.5%, respectively, while the S&P 500 settled just below its flat line. The Dow shed 0.3% and was the weakest performer among the key indices.

Equity futures were pressured this morning after the overnight session featured a 5.4% plunge in China's Shanghai Composite, which endured its biggest one-day decline since 2009. The dive occurred after the index soared 25.0% in a month and was catalyzed by the People's Bank of China taking measures to tighten liquidity conditions. The central bank fixed the USDCNY exchange rate at its highest level since July and imposed stricter collateral rules on short-term loans.

The cautious sentiment carried over to the European session with Greece's ASE Index sinking 12.8% while the country's 10-yr yield surged 91 basis points to 7.95% after Prime Minister Antonis Samaras called for a presidential election. This took place right after the country was granted a two-month extension to meet its bailout requirements and the early indications suggest the election could put the Coalition of the Radical Left (Syriza) in power, which rattled markets. Adding insult to injury, Germany reported a 3.1% decline in November imports, which was the biggest drop in almost two years.

Despite the global weakness, U.S. equities did not spend much time near their early lows. In fact, the Russell 2000, which led the rebound, marked its low five minutes into the session and never looked back. Since most stocks in that arena are domestically-oriented, they benefited from the consideration that the difficulties for Greece and China make the U.S. economy (and market) look comparatively better. It didn't hurt either that the NFIB Small Business Optimism Index for November hit its highest level (98.1) since February 2007.

The strength among small caps emboldened investors to delve into some other high-beta areas like biotechnology and chipmakers. The iShares Nasdaq Biotechnology ETF (IBB 314.92, +1.13) gained 0.4%, but the health care sector (-0.4%) underperformed throughout the session.

However, biotechnology did help the Nasdaq make it into the green while chipmakers climbed off their opening lows with the PHLX Semiconductor Index returning to its flat line. Large cap components of the technology sector (+0.5%) also displayed some strength with Apple (AAPL 114.13, +1.73), Google (GOOGL 536.11, +5.38), and Oracle (ORCL 41.87, +0.50) adding between 1.0% and 1.5%.

Outside of technology, energy (+0.9%), materials (+0.3%), and industrials (+0.1%) were the only other advancers on the cyclical side. The energy sector ended in the lead while crude oil jumped 1.1% to $63.82/bbl.

Although biotechnology and chipmakers contributed to the rebound, another high-beta group-transport stocks-did not play along. The Dow Jones Transportation Average (-0.6%) ended in the middle of its intraday range with airlines showing broad weakness after Spirit Airlines (SAVE 73.77, -10.70) issued disappointing guidance in reaction to increased promotional activity among its peers. Shares of SAVE plunged 12.7% while DJTA components Delta Air Lines (DAL 46.33, -1.01) and United Continental (UAL 62.52, -1.73) lost 2.1% and 2.7%, respectively.

Treasuries rallied in the morning, but surrendered a portion of their gains into the close. The 10-yr yield fell four basis points to 2.22%.

Also of note, the Dollar Index (88.73, -0.31) posted its second consecutive decline with the dollar giving ground to the yen. The dollar/yen pair was down as much as 300 pips and tested the 118.00 level before recovering to 119.60 into the afternoon.

Participation was a bit ahead of average with more than 810 million shares changing hands at the NYSE floor.

Economic data was limited to wholesale inventories and JOLTS:

Wholesale inventories increased 0.4% for a second consecutive month in October after an upward revision to the September data (from 0.3%) while the Briefing.com consensus expected an increase of 0.2%
Durable inventory levels were flat in October after increasing 0.7% in September with increases in hardware (1.6%) and machinery (0.4%) offsetting declines in autos (-1.4%) and professional equipment (-0.7%)
Nondurable inventories increased 1.2% in October after being unchanged in September with petroleum inventories falling 1.9%, which was more than offset by gains in farm products (3.6%), drugs (3.2%), and groceries (1.1%)
The Job Openings and Labor Turnover Survey for October indicated job opening increased to 4.834 million from 4.685 million

Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET while the Treasury Budget for November will cross at 14:00 ET (Briefing.com consensus -$59.00 billion).

Nasdaq Composite +14.1% YTD
S&P 500 +11.4% YTD
Dow Jones Industrial Average +7.4% YTD
Russell 2000 +2.0% YTD

3:40 pm: [BRIEFING.COM]

Metals showed some strong gains today following weakness in the dollar index
Metals closed today's session with strong gains led by silver, which rose 5.3% to $17.14/ox
Feb gold meanwhile gained 3.1% to $1232.30/oz
WTI crude oil posted a modest gain today, ending $0.72 higher at $63.82/barrel
Natural gas gained 5 cents to $3.65/MMBtu

2:55 pm: [BRIEFING.COM] The S&P 500 trades lower by 0.3% with one hour remaining in the session. The benchmark index has rallied off its low through the first four hours of the session, but the past 90 minutes have seen a sideways drift.

If the key indices hold their levels into the close, the S&P 500 will widen this week's loss to 1.1% while the Russell is on track to remain flat for the week.

Nine of ten sectors hold week-to-date losses between 0.1% (financials) and 3.9% (telecom services) while the utilities sector has been able to add 1.1% since Friday.

2:30 pm: [BRIEFING.COM] Equity indices hover near their best levels of the day with the S&P 500 (-0.2%) trading about two points below its high. The benchmark index has been able to reclaim roughly 20 points from its opening low, but the next five may be a bit of a challenge considering heavily-weighted financials (-0.5%), consumer discretionary (-0.4%), and health care (-0.7%) continue to lag. Elsewhere, the telecom services sector (-4.0%) is the weakest performer, but the group accounts for just 2.4% of the entire market.

On the upside, technology (+0.2%) and materials (+0.2%) have joined energy (+0.5%) and utilities (+0.3%) in the green.

Also of note, Treasuries have slipped into the middle of today's range with the 10-yr yield at 2.23%.

2:00 pm: [BRIEFING.COM] The S&P 500 (-0.3%) hovers a couple points below its rebound high while the Russell 2000 (+1.2%) continues showing relative strength.

Wholesale inventories topped expectations (0.2%) and increased by 0.4% for a second consecutive month in October. Durable inventory levels were flat while nondurable inventories increased 1.2%.

Wholesale sales edged up 0.2% in October after no growth in September.

There are no notable U.S. economic reports until the November retail sales data are released on Thursday.

1:35 pm: [BRIEFING.COM] US markets continue to recover from deep losses seen earlier in session with the Nasdaq now in positive territory after being down 1.4% at its lows of the morning. The Dow Jones Industrial Average and S&P 500 are down 0.6% and 0.3% after both were down 1.3% shortly after the start of trading.

Notably, it has been the Russell 2000 (+0.9%) that has paced the recovery effort. Most stocks in that arena are domestically-oriented and are benefiting from the consideration that the difficulties for Greece and China reported today make the U.S. economy (and market) look comparatively better. It hasn't hurt either that the NFIB Small Business Optimism Index hit its highest level in November (98.1) since February 2007.

Telecoms remain the weakest sector on the day (-3.2%) after Verizon (VZ 46.79, -2.11) warned the impact of promotional offers and customer volumes will put short-term pressures on its wireless segment EBITDA. Following the warning, Verizon was downgraded at Robert W. Baird and continues to weigh on the entire sector.

In recent trade, crude has given up all its gains on the day and is now flat; the S&P 500 energy sector is now up just 0.2%. Separately, the $25 bln 3-yr note auction was in-line with expectations drawing a high yield of 1.066% on a 3.24 bid-to-cover ratio.

1:00 pm: [BRIEFING.COM] The Dow (-0.8%), Nasdaq (-0.1%), and S&P 500 (-0.5%) sport midday losses while the Russell 2000 trades higher by 0.4% after climbing off its opening low.

Equities were pressured from the start after global markets retreated overnight. In Asia, China's Shanghai Composite plunged 5.4% after soaring 25.0% in a month with the move catalyzed by the People's Bank of China taking measures to tighten liquidity conditions. The central bank fixed the USDCNY exchange rate at its highest level since July and imposed stricter collateral rules on short-term loans.

Things did not get much better once Europe opened for action. Greek Prime Minister Antonis Samaras called for a presidential election right after the country was granted a two-month extension to meet its bailout requirements. The early indications suggest the election could put the Coalition of the Radical Left (Syriza) in power, which has rattled bonds and equities. The ASE Index fell 12.8% while the country's 10-yr yield soared 48 basis points to 8.11%.

Adding insult to injury, Germany contributed to the persistent global growth concerns by reporting a 3.1% decline in November imports, which was the biggest drop in almost two years.

With stocks starting sharply lower, the stage was set for the buy-the-dip crowd, but results have been mixed so far. The S&P 500 has cut its loss in half, but nine sectors remain in the red with five trading behind the broader market. Elsewhere, the Russell 2000 hovers in the green with some of the small cap strength spilling over into other high-beta areas. The iShares Nasdaq Biotechnology ETF (IBB 313.46, -0.33) has returned to its flat line, but the health care sector (-0.8%) remains among the laggards.

The outperformance of biotechnology has helped the Nasdaq while chipmakers trade a bit behind the tech-heavy index with the PHLX Semiconductor Index lower by 0.4%. However, several large cap components of the technology sector (-0.2%) like Apple (AAPL 112.58, +0.17), Microsoft (MSFT 47.67, -0.02), and Oracle (ORCL 41.64, +0.27) have been able to fill the void.

Also of note, the high-beta Dow Jones Transportation Average (-1.0%) remains weak with airlines on the defensive after Spirit Airlines (SAVE 73.88, -10.59) issued disappointing guidance in reaction to increased promotional activity among its peers. Shares of SAVE have plunged 12.5% while Transportation Average components Delta Air Lines (DAL 45.94, -1.40) and United Continental (UAL 62.52, -1.73) are down 3.0% and 2.7%, respectively.

On the upside, the energy sector (+0.1%) holds a slim gain while crude oil is higher by 0.8% at $63.53/bbl. The utilities sector (+0.3%) is the only remaining advancer with today's increase boosting this week's gain to 1.1%.

Treasuries hover a bit below their highs with the 10-yr yield down five basis points at 2.21%.

Economic data was limited to wholesale inventories and JOLTS:

Wholesale inventories increased 0.4% for a second consecutive month in October after an upward revision to the September data (from 0.3%) while the Briefing.com consensus expected an increase of 0.2%
Durable inventory levels were flat in October after increasing 0.7% in September with increases in hardware (1.6%) and machinery (0.4%) offsetting declines in autos (-1.4%) and professional equipment (-0.7%)
Nondurable inventories increased 1.2% in October after being unchanged in September with petroleum inventories falling 1.9%, which was more than offset by gains in farm products (3.6%), drugs (3.2%), and groceries (1.1%)
The Job Openings and Labor Turnover Survey for October indicated job opening increased to 4.834 million from 4.685 million

12:30 pm: [BRIEFING.COM] The S&P 500 trades lower by 0.8% as it continues struggling with the 2,045 level. The benchmark index was able to make a brief appearance above that level in the morning, but slid to new lows shortly thereafter. The S&P 500 tried staging another run above 2,045, but has spent the past 90 minutes below that area.

Elsewhere, the Nasdaq Composite (-0.5%) trades a bit ahead of the benchmark index with the likes of Cisco Systems (CSCO 27.28, +0.05), Oracle (ORCL 41.58, +0.21), and Qualcomm (QCOM 72.60, -0.02) showing relative strength.

On a separate note, the energy sector (-0.5%) has returned into the red even though crude oil trades higher by 0.6% at $63.40/bbl.

12:00 pm: [BRIEFING.COM] Recent action saw the Russell 2000 (+0.1%) climb into the green while the S&P 500 (-0.8%) remains near its recent levels.

Interestingly, the outperformance of the Russell 2000 has not been enough to lure participants into high-beta areas like biotechnology, chipmakers, and transport stocks. The iShares Nasdaq Biotechnology ETF (IBB 311.36, -2.43) is lower by 0.7% while the health care sector (-1.2%) remains near the bottom of the leaderboard. Elsewhere, the PHLX Semiconductor Index has given up 0.8% while the technology sector (-0.5%) trades ahead of the broader market.

Also of note, the Dow Jones Transportation Average has given up 1.3% with airlines leading the slide after Spirit Airlines (SAVE 73.88, -10.59) issued disappointing guidance in reaction to increased promotional activity among its peers. Shares of SAVE have plunged 12.5% while Transportation Average components Delta Air Lines (DAL 45.65, -1.69) and United Continental (UAL 62.38, -1.87) are down 3.5% and 2.9%, respectively.

11:30 am: [BRIEFING.COM] The S&P 500 (-0.7%) has returned to its morning rebound high while the Russell 2000 (-0.1%) remains ahead of the benchmark index.

In addition to weakness across global equities, today's session has featured a notable decline in the Dollar Index (88.40, -0.64), which also retreated yesterday. The yen has benefitted from the greenback weakness as the dollar/yen pair trades lower by almost 200 pips at 118.96 after touching the 118.00 level about an hour ago. The euro (+115 pips) and the pound (+70 pips) have also climbed against the dollar, but their gains pale in comparison to the move in the yen.

Elsewhere, Treasuries remain near their best levels of the session with the 10-yr yield down five basis points at 2.21%.

10:55 am: [BRIEFING.COM] Equity indices remain under pressure with the S&P 500 lower by 0.9%. The Dow and Nasdaq sport comparable declines while the small-cap Russell 2000 (-0.3%) outperforms.

Unlike the Russell 2000, which is working its way back from the opening low, the S&P 500 has marked a fresh session low in recent going as five sectors continue showing losses larger than the broader market. Yesterday's outperformer, health care (-1.2%), is the weakest sector among influential groups with biotechnology trading a bit ahead of the sector. The iShares Nasdaq Biotechnology ETF (IBB 311.50, -2.29) has given up 0.8%.

Elsewhere, consumer discretionary (-1.0%) and financials (-1.1%) trail the broader market while the technology sector (-0.8%) has overtaken the S&P 500.

10:30 am: [BRIEFING.COM]

Oil prices are showing some decent volatility this morning.
Both WTI and Brent crude oils fell back into negative territory a short while ago following morning gains
WTI is now back in positive territory and is currently +0.3% at $63.03/barrel
Brent meanwhile is -0.02% at $66.18/barrel
Metals are showing solid gains, helped by weakness in dollar index
Feb gold is now +3.2% at $1233.20/oz, while Mar silver is +4.9% at $17.08/oz
Mar copper +1.6% at $2.93/lb

10:00 am: [BRIEFING.COM] The S&P 500 has narrowed its loss to 0.8%.

Just released, October wholesale inventories rose 0.4%, while the Briefing.com consensus expected an uptick of 0.2%. Today's report followed last month's revised increase of 0.4% (from 0.3%).

Separately, the Job Openings and Labor Turnover Survey for October indicated job opening increased to 4.834 million from 4.685 million.

9:40 am: [BRIEFING.COM] As expected, the major averages dove out of the gate amid broad-based weakness. The S&P 500 trades lower by 1.0% with six sectors trading in-line or behind the benchmark index.

The telecom services sector (-3.6%) is the weakest performer due to a 4.3% drop in the shares of Verizon (VZ 46.78, -2.12), but more notably, heavily-weighted groups like financials (-1.1%), industrials (-1.1%), technology (-1.1%), and health care (-1.4%) have begun the session among the laggards.

Also of note, crude oil held a solid gain just an hour ago, but the energy component is now lower by 0.6% at $62.64/bbl.

On the upside, the utilities sector (+0.2%) is the lone advancer.

Treasuries are on their highs with the 10-yr yield down five basis points at 2.21%.

October Wholesale Inventories (Briefing.com consensus 0.2%) and October JOLTS will both be released at 10:00 ET.

9:12 am: [BRIEFING.COM] S&P futures vs fair value: -20.40. Nasdaq futures vs fair value: -42.30. The stock market is on track for a sharply lower open with futures on the S&P 500 trading 20 points below fair value.

Futures have been pressured throughout the night with the early weakness coming after China's Shanghai Composite endured its biggest one-day decline since 2009, plunging 5.4%. The dive occurred after the index soared 25.0% in a month and was catalyzed by the People's Bank of China taking measures to tighten liquidity conditions. The central bank fixed the USDCNY exchange rate at its highest level since July (6.1878) and imposed stricter collateral rules on short-term loans.

Things did not get much better once Europe opened for action. Germany added to the persistent global growth concerns by reporting a 3.1% decline in November imports, which was the biggest drop in almost two years. Meanwhile, in Greece, Prime Minister Antonis Samaras called for a presidential election shortly after the country was granted a two-month extension to meet its bailout requirements. The early indications suggest the election could put the Coalition of the Radical Left (Syriza) in power, which has rattled bonds and equities. The benchmark index in Greece is lower by more than 10.0% while the country's 10-yr yield has soared 65 basis points to 7.93%.

Domestically, Treasuries are modestly higher with the 10-yr yield down three basis points at 2.23%.

Meanwhile on the corporate front, Verizon (VZ 47.41, -1.49) is on track to open lower by 3.1% after warning that promotional activity will weigh on its margins. In addition, Robert W. Baird downgraded the stock to 'Neutral' from 'Outperform.'

Also of note, retailer Conn's (CONN 22.47, -12.62) is on track to open lower by almost 36.0% after its poor quarterly report showed a 200%+ increase in provision for bad debts.

Economic data will be limited to October Wholesale Inventories (Briefing.com consensus 0.2%) and October JOLTS with both reports set to be released at 10:00 ET.

8:57 am: [BRIEFING.COM] S&P futures vs fair value: -17.90. Nasdaq futures vs fair value: -37.00. The S&P 500 futures trade 18 points below fair value.

Markets were pressured across much of Asia.

Economic data was limited:
Japan's Machine Tool Orders spiked 36.6% year-over-year (prior 30.8%)
Australia's NAB Business Confidence fell to 1 from 5 while NAB Business Survey declined to 5 from 13
New Zealand's Electronic Card Retail Sales slipped 0.1% month-over-month (expected 0.2%; previous 1.0%)

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Japan's Nikkei lost 0.7% after pulling back from seven-year highs. The stronger yen weighed on exporters as Sony lost 4.0% and Panasonic gave up 3.2%.
Hong Kong's Hang Seng tumbled 2.3% back onto the 200-day average. Financials saw significant selling pressure as China Construction Bank tumbled 5.5% to pace the sector's decline.
China's Shanghai Composite plunged 5.4% to post its steepest slide in over five years after soaring 25.0% over the past month. Heavyweight PetroChina plunged 8.0% and Industrial & Commercial Bank of China lost 9.3%.
India's Sensex fell 1.2% for a fourth-straight day and closed at its worst level since Halloween. Commodity-linked names were a drag as Sesa Sterlite fell 5.2% and ONGC lost 4.4%.

Major European indices trade lower across the board after Germany's November imports declined at the fastest pace in almost two years. Also of note, Greece's benchmark index is down more than 10.0% after Prime Minister Antonis Samaras called for a presidential election to replace outgoing president Karolos Papoulias. Early indications suggest the election could put the Coalition of the Radical Left (Syriza) in power.

Participants received several data points:
Germany's trade surplus expanded to EUR20.60 billion from EUR18.60 billion (expected EUR19.20 billion) as exports fell 0.5% (consensus -1.6%; last 5.5%) and imports declined 3.1% (expected -1.5%; previous 5.2%)
UK's Industrial Production ticked down 0.1% month-over-month (expected 0.2%; last 0.7%) while Manufacturing Production fell 0.7% month-over-month (consensus 0.2%; last 0.6%)
French trade deficit narrowed to EUR4.60 billion from EUR4.70 billion (expected deficit of EUR4.50 billion)

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Germany's DAX is lower by 1.5% with Deutsche Lufthansa leading the retreat with a 2.5% decline. Financials also lag notably with Commerzbank and Deutsche Bank both down near 2.0%.
UK's FTSE trades down 1.6% with Tesco diving more than 10.0% in reaction to a profit warning. Peer WM Morrison Supermarkets is lower by 5.0%. On the upside, G4S and Randgold Resources hold respective gains of 2.8% and 2.3%.
In France, the CAC has given up 1.7% amid broad weakness. Carrefour trades down 3.1% while Credit Agricole and Societe Generale hold respective losses of 3.4% and 3.1%.
Spain's IBEX is down 2.1% with all 35 components in the red. FCC leads the decline with a 7.9% loss while Bankia and Banco Popular are down 3.0% and 3.9%, respectively.

8:31 am: [BRIEFING.COM] S&P futures vs fair value: -20.60. Nasdaq futures vs fair value: -42.00. U.S. equity futures remain under pressure with S&P 500 futures 21 points below fair value.

Barring a sharp rebound in futures, the stock market will begin the day on the defensive after ending yesterday's session in the red. Monday's retreat pushed the S&P 500 away from a record high and the resolve of the buy-the-dip crowd will be tested today.

Commodities have bounced from yesterday's dive with crude oil trading higher by 1.0% at $63.70/bbl. Also of note, gold futures have spiked 2.1% to $1220.50/ozt.

Similar to equities, the Dollar Index (88.65, -0.39) is down for the second day in a row.

7:55 am: [BRIEFING.COM] S&P futures vs fair value: -17.00. Nasdaq futures vs fair value: -34.00. U.S. equity futures trade near their pre-market lows amid defensive action overseas. The S&P 500 futures hover 17 points below fair value. Overnight, China's Shanghai Composite plunged 5.4% as part of its biggest one-day move since 2009 after soaring 25.0% over the past month. The dive occurred after the People's Bank of China took measures to tighten liquidity conditions. The central bank fixed the USDCNY exchange rate at its highest level since July (6.1878) and imposed stricter collateral rules on short-term loans.

Markets in Europe have also retreated with Greece's benchmark index falling more than 10.0% after Prime Minister Antonis Samaras called for a presidential election to replace outgoing president Karolos Papoulias. As for the euro, the single currency has rallied about 60 pips against the dollar to 1.2371.

Today's economic data will be limited to October Wholesale Inventories (Briefing.com consensus 0.2%) and October JOLTS with both reports set to be released at 10:00 ET.

Treasuries are modestly higher with the 10-yr yield down almost two basis points at 2.24%.

In U.S. corporate news of note:

Conn's (CONN 24.75, -10.34): -29.5% after reporting an unexpected loss and withdrawing its earnings guidance for fiscal year 2015.
HD Supply Holdings (HDS 29.85, +0.09): +0.3% after beating bottom-line estimates and guiding below consensus expectations.
Verizon (VZ 47.90, -1.00): -2.0% after Robert W. Baird downgraded the stock to 'Neutral' from 'Outperform.'

Reviewing overnight developments:

Asian markets ended lower across the board. Japan's Nikkei -0.7%, Hong Kong's Hang Seng -2.3%, and China's Shanghai Composite -5.4%
In economic data:
Japan's Machine Tool Orders spiked 36.6% year-over-year (prior 30.8%)
Australia's NAB Business Confidence fell to 1 from 5 while NAB Business Survey declined to 5 from 13
New Zealand's Electronic Card Retail Sales slipped 0.1% month-over-month (expected 0.2%; previous 1.0%)
In news:
The big plunge in China narrowed Shanghai Composite's gain over the past month to 18.2%. Financials were hit hard with Industrial & Commercial Bank of China tumbling 9.3%

Major European indices trade lower across the board. Germany's DAX -1.5%, UK's FTSE -1.7%, and France's CAC -1.8%. Elsewhere, Italy's MIB -1.9% and Spain's IBEX -2.2%
Participants received several data points:
Germany's trade surplus expanded to EUR20.60 billion from EUR18.60 billion (expected EUR19.20 billion) as exports fell 0.5% (consensus -1.6%; last 5.5%) and imports declined 3.1% (expected -1.5%; previous 5.2%)
UK's Industrial Production ticked down 0.1% month-over-month (expected 0.2%; last 0.7%) while Manufacturing Production fell 0.7% month-over-month (consensus 0.2%; last 0.6%)
French trade deficit narrowed to EUR4.60 billion from EUR4.70 billion (expected deficit of EUR4.50 billion)
Among news of note:
The decline in Germany's imports represented the sharpest drop in nearly two years

7:03 am: [BRIEFING.COM] S&P futures vs fair value: -7.00. Nasdaq futures vs fair value: -14.00.

7:03 am: [BRIEFING.COM] Nikkei...17,813.38...-122.30...-0.70%. Hang Seng...23,485.83...-561.80...-2.30%.

7:03 am: [BRIEFING.COM] FTSE...6,595.42...-76.90...-1.10%. DAX...9,918.04...-95.30...-0.90%.

Crude Rises From Five-Year Low as Dollar Declines

By Mark Shenk Dec 9, 2014 5:03 PM ET

West Texas Intermediate and Brent oils climbed from five-year lows as the dollar fell and a technical indicator signaled the market is due for a rebound.

Futures climbed as the U.S. currency dropped from the strongest level in two years versus the euro. A weaker dollar bolsters the appeal of raw materials as a store of value. Prices have tumbled since the 12-nation Organization of Petroleum Exporting Countries decided Nov. 27 to maintain output levels, letting prices decrease to a level that may slow U.S. output that’s surged to the highest level in three decades.

The 14-day relative strength index for WTI stood at 26.1178 at 3:01 p.m. in New York, according to data compiled by Bloomberg. Investors typically start buying contracts when the reading is below 30. The 14-day RSI for Brent was 22.6576.

“The commodities are popping today because of the break in the dollar’s rally,” Phil Flynn, senior market analyst at the Price Futures Group in Chicago, said by phone. “The dollar’s plunge is giving oil a boost in what’s an oversold market.”

WTI for January delivery rose 77 cents, or 1.2 percent, to settle at $63.82 a barrel on the New York Mercantile Exchange. The contract closed at $63.05 yesterday, the lowest settlement since July 2009. Prices are down 35 percent this year.

Prices declined after the settlement as the American Petroleum Institute was said to report an increase in U.S. inventories. Crude stockpiles advanced 4.4 million barrels last week, the API said, according to Anthony Headrick. Cushing supplies rose 921,000. Futures were at $63.44 in electronic trading at 4:53 p.m.

Brent Gains

Brent for January settlement climbed 65 cents, or 1 percent, to end the session at $66.84 a barrel on the London-based ICE Futures Europe. Prices closed at $66.19 yesterday, the lowest since September 2009. The European benchmark grade closed at a $3.02 premium to WTI.

The Bloomberg Dollar Spot Index (BCOM) dropped 0.5 percent today, while the Bloomberg Commodity Index climbed 1.2 percent.

The U.S. Energy Information Administration cut its crude price forecasts by $15 a barrel in response to the OPEC decision and rising U.S. output. WTI will average $62.75 a barrel in 2015 versus the November projection of $77.75, the EIA said today in its monthly Short-Term Energy Outlook. The agency trimmed its Brent crude estimate for next year to $68.08 from $83.42.

The EIA said U.S. production will rise to 8.6 million barrels a day this year and 9.32 million in 2015, up from 7.44 million last year. The 2015 forecast is down from last month’s estimate of 9.42 million. Falling prices will start to have an impact on U.S. output next year, agency Administrator Adam Sieminski said in an e-mailed statement.

Production Response

“U.S. oil production growth is expected to slow next year in response to lower crude process, but annual output is forecast to still increase to the highest level since 1972,” Sieminski said.

WTI could slide to $50 a barrel, Sabine Schels, head of fundamental energy strategy at Bank of America, said in London today. Brent may fall below $60 before rebounding in the second half of next year, she said.

“The market is still going to struggle,” Rob Haworth, a senior investment strategist in Seattle at U.S. Bank Wealth Management, which oversees about $120 billion of assets, said by phone. “The speculators are probably still a little longer than they want to be given the move in prices. There is more unwinding to come.”

Hedge funds have cut net-long positions by 48 percent from a record high in June. Speculators boosted their bullish bets by 14 percent in the week ended Dec. 2, the most in 20 months, U.S. Commodity Futures Trading Commission data on Dec. 5 show.

Price Competition

Futures dropped in early trading as OPEC’s largest members stepped up their price competition. Iraq reduced its Basrah Light crude price for January to the lowest in at least 11 years. Saudi Arabia, which led the 12-member group’s decision to maintain output at a Nov. 27 meeting, last week offered shipments to its Asian customers at the deepest discount in at least 14 years.

Iraq’s Oil Marketing Co. will sell Basrah Light to Asia at $4 a barrel below the average of Middle East benchmark Oman and Dubai grades, the steepest discount since Bloomberg started compiling the data in August 2003. The company reduced prices to U.S. buyers by 30 cents and marked up shipments to Europe by 10 cents, the list obtained by Bloomberg News showed.

Saudi Aramco, the state-run oil company, lowered the official selling price for Arab Light to Asia next month to $2 a barrel less than the average of Oman and Dubai, the company said by e-mail Dec. 4. That was $1.90 wider than December and the biggest discount in data compiled by Bloomberg since June 2000.

‘Breathtaking Selloff’

The EIA, the Energy Department’s statistical unit, is projected to report tomorrow that U.S. crude supplies dropped 2.7 million barrels last week, according to the median of eight analyst responses in a Bloomberg survey of analysts. The report is forecast to show that stockpiles of gasoline and distillate fuel, a category that includes heating oil and diesel, rose.

“Given the breathtaking selloff of the last few days the market’s taking a breath,” John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy, said by phone. “There is no fundamental support out there.”

Gasoline and diesel futures climbed for the first time since Nov. 26. Gasoline increased 1.7 cents, or 1 percent, to close at $1.7236 a gallon in New York. Diesel rose 2.91 cents, or 1.4 percent, to settle at $2.084.

Regular gasoline at U.S. pumps fell to the lowest level since October 2010. The average retail price slipped 1.3 cents to $2.655 a gallon yesterday, according to Heathrow, Florida-based AAA, the nation’s biggest motoring group.

To contact the reporter on this story: Mark Shenk in New York at mshenk1@bloomberg.net

To contact the editors responsible for this story: David Marino at dmarino4@bloomberg.net Richard Stubbe, Bill Banker

http://www.bloomberg.com/archive/news/2014-12-09/

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

Best Regards,
M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
Image@ http://twitter.com/wrbtrader Image@ http://stocktwits.com/wrbtrader

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