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 Post subject: January 21st Wednesday Trade Results - Profit $4250.00
PostPosted: Wed Jan 21, 2015 8:23 pm 
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Joined: Sat Jan 10, 2009 2:06 pm
Posts: 4335
Location: Canada
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Trade Results of M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
Price Action Trading (no technical indicators)
Phone: +1 708 572-4885
Free Chat Room: http://www.thestrategylab.com/tsl/forum/viewforum.php?f=164
Business Hours: 8am - 5pm est (Mon - Fri)
questions@thestrategylab.com (24/7)
http://twitter.com/wrbtrader (24/7)

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

Price Action Trade Performance for Today: Emini TF ($TF_F) futures @ $0.00 dollars or +0.00 points, Emini ES ($ES_F) futures @ $4,250.00 dollars or +85.00 points, Light Crude Oil CL ($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 @ $4,250.00 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=139&t=1986

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=255&t=2625

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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

4:15 pm: [BRIEFING.COM] Equity indices enjoyed their third consecutive advance on Wednesday with the S&P 500 climbing 0.5%.

The highly-anticipated policy meeting at the European Central Bank will take place tomorrow morning, but that did not stop the Wednesday session from being filled with central bank-related storylines. The Bank of Japan got the ball rolling overnight by lowering its inflation outlook to 1.0% from 1.7%, which boosted the yen (117.80).

The Bank of England was next on tap with the minutes from its latest policy meeting. The minutes were a bit surprising as Messrs. McCafferty and Weale, who previously voted in favor of rate hikes, rejoined the majority in their belief that hiking rates too early would prolong the period of low inflation. The newfound dovish tilt at the BoE helped UK's FTSE spike 1.6% to outperform the region.

Meanwhile, other European indices struggled in the early going after ECB governing council member Ewald Nowotny said policymakers should maintain their long-term perspective and that "one should not get overexcited" about [the meeting].

Mr. Nowotny's remarks contributed to a cautious start in the U.S., but global equities jumped off their lows in reaction to reports indicating the European Central Bank is set to propose EUR50 billion in asset purchases through 2016. The euro wobbled on the news before ending the day near 1.1590 against the dollar. In a surprising move, Germany's 10-yr note tumbled, sending the benchmark yield higher by seven basis points to 0.47%.

The Bank of Canada completed the central bank bonanza with a surprise 25-basis point cut to 0.75% in response to crashing oil prices, which are expected to put downward pressure on Canadian inflation. The loonie retreated to its lowest level since early 2009, sending USDCAD to 1.2330 from 1.2070.

All ten sectors registered gains with energy (+1.8%) maintaining the lead throughout the session. The recently-batter sector was able to trim its January loss to 2.8% with help from crude oil, which spiked 2.7% to $47.78/bbl. Another commodity-related sector-materials (+1.0%)-followed not far behind with steelmakers underpinning the move. The Market Vectors Steel ETF (SLX 33.38, +0.68) gained 2.1%.

Elsewhere, the remaining cyclical sectors ended mixed with respect to the broader market. Industrials (+0.7%) and consumer discretionary (+0.6%) outperformed with the latter receiving a boost from above-consensus earnings reported by Netflix (NFLX 409.28, +60.48).

On the flip side, financials (+0.2%) and technology (+0.2%) spent the day among the laggards. The tech sector could not keep pace with the market due to a 3.1% loss in the shares of IBM (IBM 152.09, -4.86) after the Dow component missed revenue estimates and issued disappointing guidance. However, chipmakers rallied behind better than expected results from ASML (ASML 106.59, +2.78) and Cree (CREE 33.88, +1.54). The broader PHLX Semiconductor Index advanced 1.1%.

Over on the countercyclical side, the utilities sector (+1.0%) extended its January advance to 4.3% while consumer staples (+0.3%), telecom services (+0.2%), and health care (+0.1%) underperformed.

Treasuries notched their highs in the morning before giving up those gains in early afternoon action. As a result, the 10-yr yield jumped six basis points to 1.86%.

Participation was a bit below average with roughly 750 million shares changing hands at the NYSE floor.

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

Led by a large increase in single-family construction, new housing starts increased 4.4% in December to 1.089 million from an upwardly revised 1.043 million (from 1.028 million) in November
The Briefing.com consensus pegged new housing starts at 1.040 million
Single-family construction increased 7.2% to 728,000 from 679,000 in November, representing the largest number of single-family starts January 2008 (773,000)
Building permits fell to a seasonally adjusted annualized rate of 1.032 million versus a revised 1.052 million for November (from 1.035 million)
The Briefing.com consensus expected permits to come in at 1.060 million
The weekly MBA Mortgage Index spiked 14.2% to follow last week's 49.1% surge

Tomorrow, weekly Initial Claims will be released at 8:30 ET (Briefing.com consensus 302,000) while the FHFA Housing Price Index for November will cross the wires at 9:00 ET.

Dow Jones Industrial Average -1.5% YTD
Nasdaq Composite -1.5% YTD
S&P 500 -1.3% YTD
Russell 2000 -3.2% YTD

3:35 pm: [BRIEFING.COM]

Energy futures posted some gains today.
WTI crude oil rallied over the $48/barrel level, but pulled back some and close below here
However, WTI crude rallied $1.27 overall and closed today's session at $47.78/barrel
Feb natural gas futures recovery some of yesterday's losses and ended $0.15 higher today at $2.98/MMBtu
Precious metals sold off following some ECB comments
Feb gold lost steam and close $0.60 lower at $1293.30/oz
Mar silver finished with a small gain of $0.23 to $18.19/oz

2:55 pm: [BRIEFING.COM] The S&P 500 trades higher by 0.4% with one hour remaining in the session. Although the benchmark index has spent the bulk of today's session in the green, it would be hard to classify the advance as 'confidence inspiring.'

The energy sector (+1.5%) remains in the lead, but that is likely a function of the sector bouncing after being oversold. Despite today's advance, the sector continues trading near the bottom of the January leaderboard, only ahead of consumer discretionary and financials. The two cyclical sectors are down 3.6% and 5.3% so far in January.

Elsewhere, Treasuries hover near their lows with the 10-yr yield up five basis points at 1.84%.

2:25 pm: [BRIEFING.COM] The S&P 500 (+0.2%) has bounced off its flat line, which puts the benchmark index roughly in the middle of today's trading range. Equity indices have been backtracking from their highs during the past 90 minutes or so, which has caused some of today's underperformers to return into negative territory.

To that point, technology (-0.1%), financials (-0.1%), and health care (-0.1%) are now in the red, which could become a headwind considering the three groups account for almost 50.0% of the entire S&P 500.

That being said, the market has continued drawing support from commodity-linked energy (+1.3%), materials (+0.6%), and industrials (+0.4%). For reference, this trio represents about 25.0% of the market.

2:00 pm: [BRIEFING.COM] Equity indices hover near their afternoon lows.

Led by a large increase in single-family construction, new housing starts increased 4.4% in December to 1.089 mln from an upwardly revised 1.043 mln (from 1.028 mln) in November.

The NAHB Homebuilders Index has recovered following an unexpected contraction in the middle of 2014. That recovery, however, has not really translated into significant housing starts growth.

Given that the increase in starts was due to the normally stable single-family sector, the improvements in sentiment may finally be translating into actual construction growth. If this is true, we would expect to see continued growth in the industry in 2015.

1:35 pm: [BRIEFING.COM] U.S. equities have experienced notable selling pressure since our last update with the Dow Jones Industrial Average now dipping into the red.

Energy (+1.2%) continues to lead the S&P sectors with Consumer Staples (-0.05%) lagging the broad market. While WTI crude still sports mild gains on the day, +1.6% to $47.25/bbl, the fuel failed to gather support above earlier highs over the $48/bbl area.

On a separate note, shares in Tootsie Roll Industries (TR 33.06, +2.25) are showing strong gains after trading in the stock was halted a short time ago, in which the company confirmed reports that its CEO and Chariman Melvin Gordon had passed away at the age of 95.

After the close, notable earnings are expected from American Express (AXP), eBay (EBAY), Kinder Morgan (KMI), Discover (DFS), Sandisk (SNDK) and others.

12:55 pm: [BRIEFING.COM] Equity indices sport midday gains with the Nasdaq (+0.4%) and S&P 500 (+0.4%) trading neck-in-neck while the Dow Jones Industrial Average (+0.1%) and Russell 2000 (+0.2%) underperform.

The first half of today's action has been a bit volatile, which is understandable considering the highly-anticipated ECB meeting is just a day away. Fittingly, the European Central Bank has been among headlines today, starting with comments from governing council member Ewald Nowotny who said policymakers should maintain their long-term perspective and that "one should not get overexcited" about [the meeting].

Mr. Nowotny's remarks contributed to a cautious start, but U.S. and European equities jumped off their lows in reaction to reports indicating the European Central Bank is said to propose EUR50 billion in asset purchases through 2016. The euro retreated struggled for direction immediately after the reports crossed, but the single currency now trades at 1.1570 against the dollar after hovering near 1.1630 before the news crossed the wires.

The equity rally that followed has been paced by cyclical sectors with energy (+1.5%) holding the lead. The growth-sensitive group has narrowed its January decline to 3.2% with help from crude oil, which is higher by 2.0% at $47.41/bbl. Similar to energy, other commodity-linked sectors like materials (+0.7%) and industrials (+0.6%) also appear among the leaders.

However, not all cyclical sectors have been able to keep pace with the broader market. The technology sector (+0.1%) and the Dow have had to endure a 3.5% decline in the shares of IBM (IBM 151.50, -5.45) after the company missed revenue estimates and issued disappointing guidance. Meanwhile, chipmakers have done some heavy lifting, evidenced by a 1.1% gain in the PHLX Semiconductor Index after ASML (ASML 106.54, +2.73) reported better than expected results.

In other earnings news, Netflix (NFLX 412.56, +63.71) has soared 18.4% after beating bottom-line estimates by a wide margin and announcing plans to raise at least $1 billion in debt. Conversely, the stock has contributed to the outperformance of the consumer discretionary sector (+0.5%).

Treasuries hover just above their lows following a recent slide from highs. The 10-yr yield is higher by four basis points at 1.84%.

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

Led by a large increase in single-family construction, new housing starts increased 4.4% in December to 1.089 million from an upwardly revised 1.043 million (from 1.028 million) in November
The Briefing.com consensus pegged new housing starts at 1.040 million
Single-family construction increased 7.2% to 728,000 from 679,000 in November, representing the largest number of single-family starts January 2008 (773,000)
Building permits fell to a seasonally adjusted annualized rate of 1.032 million versus a revised 1.052 million for November (from 1.035 million)
The Briefing.com consensus expected permits to come in at 1.060 million
The weekly MBA Mortgage Index spiked 14.2% to follow last week's 49.1% surge

12:25 pm: [BRIEFING.COM] Not much change in the major averages with the S&P 500 (+0.6%) respecting a three-point range since just before 11:00 ET.

Understandably, sector standing has not changed with energy (+1.8%) holding the lead. The growth-sensitive sector has received support from crude oil, which trades higher by 2.5% at $47.65/bbl. Energy notwithstanding, three of the remaining five cyclical sectors trade ahead of the broader market while financials (+0.5%) and technology (+0.4%) represent the only two laggards.

Although the technology sector trails the broader market, the underperformance is entirely due to IBM (IBM 151.55, -5.43), which remains lower by 3.5% after missing revenue estimates and issuing disappointing guidance.

11:55 am: [BRIEFING.COM] Equity indices remain near their recent levels with the S&P 500 (+0.6%) and Nasdaq Composite (+0.6%) trading neck-in-neck.

Although the tech-heavy Nasdaq has kept pace with the benchmark index, it is worth mentioning that market breadth has turned negative for the Nasdaq. At this juncture there a few more decliners than advancers, while NYSE breadth remains positive with 1.9 listings trading in the green for each decliner.

For the time being, the shift in Nasdaq breadth has not caused participants to adjust their hedges, evidenced by the CBOE Volatility Index (VIX 18.92, -0.97), which remains a bit above its morning low.

11:25 am: [BRIEFING.COM] The major averages hover near their recently-established highs with the S&P 500 up 0.5%.

All ten sectors are now in the green following a recent move into positive territory by the telecom services sector (+0.2%). The countercyclical group trails the broader market, which is also the case with the remaining defensively-oriented groups. Similar to telecom services, the consumer staples sector (+0.1%) sports a modest gain while utilities (+0.4%) and health care (+0.4%) trade not far behind the broader market.

Notably, the health care sector has been kept among the laggards by the underperformance of biotech names. The iShares Nasdaq Biotechnology ETF (IBB 321.58, -1.65) is lower by 0.5%. Interestingly, the Nasdaq Composite (+0.5%) has not missed a beat as chipmakers fill the void created by biotechnology. The PHLX Semiconductor Index trades up 1.0%.

10:55 am: [BRIEFING.COM] The S&P 500 (+0.6%) hovers near its best level of the day while the Dow Jones Industrial Average (+0.3%) continues to lag due to a 3.1% decline in the shares of IBM (IBM 152.06, -4.89).

In addition to pressuring the Dow, Big Blue has kept the technology sector near its flat line while other groups have fared better. The energy sector (+1.6%) remains in the lead thanks to continued strength in crude oil. The energy component is now higher by 3.1% at $47.92/bbl.

Other commodity-related sectors have also shown relative strength with industrials (+0.8%) and materials (+0.9%) both trading ahead of the broader market. Transport stocks have given a boost to the industrial sector, evidenced by a 0.8% gain in the Dow Jones Transportation Average.

Treasuries remain flat with the 10-yr yield at 1.79%.

10:45 am: [BRIEFING.COM]

Energy futures are strong today.
WTI crude oil prices are getting a boost today from some positive comments from the Davos 2015 conference
Natural gas, meanwhile, is recovering some recent losses today. However, the current weather outlook remains mild and might continue to weigh on prices
Mar crude oil is now +3.5% at $48.09/barrel. Feb nat gas is currently +3.3% at $2.92/MMBtu
Precious metals sold off in earlier trade following some ECB headlines
Feb gold is currently -0.5% at $1287.20/oz, while Mar silver is +0.8% at $18.09/oz

9:55 am: [BRIEFING.COM] The S&P 500 has returned to its flat line while the euro has erased its brief dip that followed headlines indicating the ECB plans to deploy a purchasing program in the amount of EUR50 billion per month. The reversal in the euro (1.1670 now vs 1.1635 before QE reports) suggests that the market may have already priced in asset purchases in the neighborhood of the speculated amount.

Five sectors trade in the green at this juncture with energy (+1.2%) in the lead. The cyclical sector trades well ahead of its peers while the second-best performer-consumer discretionary-is up just 0.3%.

On the downside, technology (-0.4%) has been pressured by IBM's (152.03, -4.92) disappointing guidance.

Treasuries are currently flat with the 10-yr yield at 1.79%.

9:45 am: [BRIEFING.COM] The major averages slumped out of the gate before getting a lift from reports indicating the European Central Bank is said to propose EUR50 billion in asset purchases through 2016. The euro retreated on the news, sliding from 1.1635 to 1.1570 against the dollar.

The S&P 500 trades higher by 0.2% with nine sectors showing early gains. Heavily-weighted technology (-0.1%) and financials (+0.1%) are among the laggards while the energy sector (+1.1%) has been able to spend the early action in the lead. Similar to energy, consumer discretionary (+0.6%) and industrials (+0.4%) trade ahead of the broader market.

9:10 am: [BRIEFING.COM] S&P futures vs fair value: -3.70. Nasdaq futures vs fair value: -6.00. The stock market is on track for a lower open as futures on the S&P 500 trade four points below fair value. Index futures traded in the green at the start of the night, but their steady retreat accelerated during the European session after European Central Bank member Ewald Nowotny said policymakers "shouldn't get overexcited" about tomorrow's policy meeting, but instead maintain a long-term perspective. The comments were viewed as a signal suggesting tomorrow's meeting could prove disappointing, which led to wave of profit-taking.

However, UK's FTSE (+0.7%) has been able to outperform the region after The Bank of England released the minutes from its latest meeting, revealing that two members who voted for rate hikes in past meetings have now joined the majority. This time around, Messrs. McCafferty and Weale voted in favor of leaving the key interest rate at 0.5% on the belief that hiking rates too early would prolong the period of low inflation.

Domestically, the retreat in futures has followed the release of several quarterly reports. IBM (IBM 152.14, -4.81) disappointed with its outlook while ASML (ASML 105.66, +1.85), Netflix (NFLX 414.00, +65.20), and UnitedHealth (UNH 107.40, +1.78) delivered better than expected results.

On a separate note, crude oil trades higher by 1.9% at $47.35/bbl as it fights to extend its rebound from yesterday's 4.1% slide.

Treasuries hold modest gains with the 10-yr yield lower by a basis point at 1.78%. The 10-yr note returned to its overnight high following the December Housing Starts report, which beat estimates (1.089 million; Briefing.com consensus 1.040 million); however, Building Permits (1.032 million; Briefing.com consensus 1.060 million) missed their mark.

8:56 am: [BRIEFING.COM] S&P futures vs fair value: -4.50. Nasdaq futures vs fair value: -7.80. The S&P 500 futures trade five points below fair value.

Markets rallied across Asia with the exception of Japan's Nikkei (-0.5%), which underperformed amid yen strength that resulted from the Bank of Japan's decision to lower its inflation outlook for fiscal year 2014/2015 by 30 basis points to 0.9%. The central bank also adjusted its goal for 2015/2016 to 1.0% (-70 bps).

In economic data:
Japan's All Industries Activity Index ticked up 0.1%, as expected (prior 0.1%)
Australia's Westpac Consumer Sentiment came in at 2.4% (previous -5.7%)
New Zealand's CPI fell 0.2% quarter-over-quarter (expected 0.0%; previous 0.3%) while the year-over-year reading increased 0.8% (consensus 0.9%; prior 1.0%)
Malaysia's inflation rate slowed to 2.7% year-over-year from 3.0%

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Japan's Nikkei lost 0.5% and slipped back below the 50-day average. Toyota Motor lost 1.7% after giving a downbeat forecast and conceding it will likely give up its title as the world's top-selling automaker.
Hong Kong's Hang Seng rallied 1.7% to its best close in four months. Insurers remained strong as China Life climbed 3.1% and Ping An jumped 3.6%.
China's Shanghai Composite spiked 4.7% to post its biggest gain since 2009. Brokerage names fueled the rebound following heavy selling in the space during the past couple of sessions. Haitong Securities and Citic Securities gained 4.4% and 1.6%, respectively.
India's Sensex (+0.4%) booked a record high close. Financials were out front with HDFC and State Bank of India climbing 2.9% and 2.5%, respectively.

Major European indices trade mostly lower while UK's FTSE (+0.6%) has bucked the trend after The Bank of England released the minutes from its latest meeting, revealing that two members who voted for rate hikes in past meetings have joined the majority. This time around, Messrs. McCafferty and Weale have voted in favor of leaving the key interest rate at 0.5% on the belief that hiking rates too early would prolong the period of low inflation. Meanwhile, other regional indices have retreated after European Central Bank member Ewald Nowotny said investors "shouldn't get overexcited" about tomorrow's policy meeting.

Economic data was limited:
UK's Claimant Count fell 29,700 (expected -25,000; prior -29,600) while the Unemployment Rate dropped to 5.8% from 6.0% (consensus 5.9%). Separately, Average Earnings Index + Bonus rose 1.7%, as expected (previous 1.4%)
Swiss ZEW Expectations fell to -10.8 from -4.9

------

UK's FTSE is higher by 0.6% with energy names among the leaders. BG Group and Royal Dutch Shell hold respective gains of 2.3% and 1.2%. Consumer names lag with Intertek Group and Sports Direct International both down near 5.5%.
In France, the CAC is lower by 0.6%. Growth-sensitive names are under pressure with Airbus, Lafarge, and ArcelorMittal down between 1.0% and 2.0%.
Germany's DAX trades down 0.7% with about 2/3 of the index in the red. Producers of basic materials lag with HeidelbergCement, Lanxess, and BASF down between 1.4% and 2.8%.
Spain's IBEX has given up 1.0% amid weakness in financials. Banco Popular, Bankinter, Caixabank, and Santander are down between 1.5% and 3.8%.

8:30 am: [BRIEFING.COM] S&P futures vs fair value: -3.80. Nasdaq futures vs fair value: -5.50. The S&P 500 futures trade four points below fair value.

Housing Starts rose to a seasonally adjusted annualized rate of 1.089 million units in December. That was up from a revised 1.043 million units in November (from 1.028 million). The Briefing.com consensus expected starts to increase to 1.040 million units.

Building permits fell to a seasonally adjusted annualized rate of 1.032 million in December versus a revised 1.052 million for November (from 1.035 million). The Briefing.com consensus expected permits to come in at 1.060 million.

7:56 am: [BRIEFING.COM] S&P futures vs fair value: -6.00. Nasdaq futures vs fair value: -10.50. U.S. equity futures trade modestly lower amid cautious action overseas. The S&P 500 futures hover six points below fair value after slipping to lows during the past hour. Overnight, most markets across Asia rallied, but the risk appetite took a hit once Europe opened for action. Specifically, European equities and U.S. futures retreated after European Central Bank member Ewald Nowotny said that while tomorrow's ECB meeting will be interesting, investors "shouldn't get overexcited" about it.

Commodities, meanwhile, have been mixed. Crude oil trades higher by 0.6% at $46.74/bbl while copper has tumbled 1.8% to $2.548/lb.

Treasuries hold slim losses with the 10-yr yield up nearly a basis point at 1.80%.

The weekly MBA Mortgage Index spiked 14.2% to follow last week's 49.1% surge.

December Housing Starts (Briefing.com consensus 1.04 million) and Building Permits (consensus 1.06 million) will be reported at 8:30 ET.

In U.S. corporate news of note:

ASML Holdings (ASML 106.18, +2.37): +2.3% after beating estimates and guiding above consensus.
Cree (CREE 34.60, +2.26): +7.0% after beating earnings estimates on in-line revenue and guidance.
IBM (IBM 152.65, -4.30): -2.7% after beating bottom-line estimates on light revenue and disappointing guidance.
Netflix (NFLX 413.44, +64.40): +18.5% in reaction to better than expected earnings.
UnitedHealth (UNH 107.50, +1.88): +1.8% after beating on earnings and reaffirming its guidance.

Reviewing overnight developments:

Asian markets ended mostly higher. Hong Kong's Hang Seng +1.7%, China's Shanghai Composite +4.7%, and Japan's Nikkei -0.5%.
In economic data:
Japan's All Industries Activity Index ticked up 0.1%, as expected (prior 0.1%)
Australia's Westpac Consumer Sentiment came in at 2.4% (previous -5.7%)
New Zealand's CPI fell 0.2% quarter-over-quarter (expected 0.0%; previous 0.3%) while the year-over-year reading increased 0.8% (consensus 0.9%; prior 1.0%)
In news:
Japan's Nikkei underperformed amid yen strength that resulted from the Bank of Japan's decision to lower its inflation outlook for fiscal year 2014/2015 by 30 basis points to 0.9%. The central bank also adjusted its goal for 2015/2016 to 1.0% (-70 bps).

Major European indices trade mostly lower. Germany's DAX -0.5%, France's CAC -0.4%, and UK's FTSE +0.6%. Elsewhere, Italy's MIB -0.1% and Spain's IBEX -0.5%.
Economic data was limited:
UK's Claimant Count fell 29,700 (expected -25,000; prior -29,600) while the Unemployment Rate dropped to 5.8% from 6.0% (consensus 5.9%). Separately, Average Earnings Index + Bonus rose 1.7%, as expected (previous 1.4%)
Swiss ZEW Expectations fell to -10.8 from -4.9
Among news of note:
Regional equities retreated after European Central Bank member Ewald Nowotny said investors "shouldn't get overexcited" about tomorrow's policy meeting.
The Bank of England released the minutes from its latest meeting, which revealed that two members, who voted for rate hikes in past meetings, have joined the majority, voting in favor of leaving the key interest rate at 0.5%. At this time, Mr. McCafferty and Weale believe that hiking rates too early would prolong the period of low inflation.

7:02 am: [BRIEFING.COM] S&P futures vs fair value: -3.00. Nasdaq futures vs fair value: -6.00.

7:02 am: [BRIEFING.COM] Nikkei...17,280.48...-85.80...-0.50%. Hang Seng...24,352.58...+401.40...+1.70%.

7:02 am: [BRIEFING.COM] FTSE...6,665.92...+45.80...+0.70%. DAX...10,238.72...-21.80...-0.20%.

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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