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 Post subject: February 6th Friday Trade Results - Profit $1255.00
PostPosted: Fri Feb 06, 2015 6:42 pm 
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Joined: Sat Jan 10, 2009 2:06 pm
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Location: Canada
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Trade Results of M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
Price Action Trading (no technical indicators)
Phone: +1 708 572-4885
Free Chat Room: http://www.thestrategylab.com/tsl/forum/viewforum.php?f=164
Business Hours: 8am - 5pm est (Mon - Fri)
questions@thestrategylab.com (24/7)
http://twitter.com/wrbtrader (24/7)

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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 @ $630.00 dollars or +6.30 points, Emini ES ($ES_F) futures @ $625.00 dollars or +12.50 points, Light Crude Oil CL ($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 @ $1,255.00 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=140&t=2000

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=257&t=2664

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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] The major averages capped a strong week with a defensive finish. The S&P 500 lost 0.3%, to narrow its weekly gain to 3.0% while the Nasdaq (-0.4%) underperformed, but managed to end the week higher by 2.4%.

Equities climbed at the open in reaction to the release of a better than expected Nonfarm Payrolls report for January. According to the Bureau of Labor Statistics, January payrolls increased by 257,000 (Briefing.com consensus 235,000) while the December reading saw a large upward revision to 329,000 from 252,000. Hourly earnings (+0.5%; consensus +0.3%) surpassed estimates, which bolstered the report.

The gain in hourly earnings shaped a consensus view that the employment report showcased strong labor market conditions, but that analysis may not be completely correct. According to the National Conference of State Legislators, the minimum wage in 20 states increased on January 1, 2015. The change in state policies resulted in a 0.3% increase in the average minimum wage, with all of the states equally weighted. When weighted by state payrolls, the average minimum wage increased by a slightly less but still hefty 0.2%, which is not a trivial gain. Since the Bureau of Labor Statistics reports wages based on averages and not medians, the increase in the bottom of the wage spectrum caused an overall increase in average wages. Just about 0.2 percentage points of the 0.5 percentage point gain in hourly earnings came from the three lowest paid sectors -- retail trade, leisure and hospitality, and other services. Those three sectors are also the most likely to employ minimum wage workers.

That being said, the report caused participants to reassess their expectations for the timing of the first fed funds rate hike. On that note, The Wall Street Journal's Jon Hilsenrath said today's jobs report increased the chance that the Fed will alter the language that indicates plans to remain 'patient' before hiking rates. In addition, this year's FOMC voting member and Atlanta Fed President Dennis Lockhart said liftoff should begin "around mid-year, or a little later."

Accordingly, the Treasury complex responded with a slide led by the 5-yr note. The 5-yr yield surged 17 basis points to 1.48% while the benchmark 10-yr yield climbed 12 basis points to 1.94%, representing a 27-basis point rally since last Friday.

Equities held modest gains through the first half of the session, but market breadth never turned positive, which hinted at a potential reversal. That reversal materialized after Standard & Poor's downgraded Greece to 'B-' and said another downgrade could be in the cards. Later in the day, Eurogroup Chief Jeroen Dijsselbloem said Greece must apply for a bailout extension by February 16 in order to maintain financial backing from the eurozone.

The downgrade and subsequent comments from Mr. Dijsselbloem sparked some profit taking after a strong run earlier this week; however, it is worth mentioning that the market was probing a resistance level and its failure to clear that area could signal more downside in the near term. Despite the afternoon slip, nine sectors posted weekly gains between 0.7% (health care) and 7.0% (telecom services), while the rate-sensitive utilities sector lost 4.1% today to end the week lower by 3.7%.

Outside of utilities, the health care sector (-0.8%) was the only group that lost more than 0.6%. Biotechnology contributed to the relative weakness with the iShares Nasdaq Biotechnology ETF (IBB 315.59, -4.32) falling 1.4% to end the week lower by 1.9%.

On the upside, telecom services (+1.9%) and financials (+0.7%) held gains throughout the session. The telecom sector was underpinned by Verizon (VZ 49.33, +1.47), which surged 3.1% after confirming a sale of its wireless assets in three states to Frontier Communications (FTR 7.93, +0.23) for $10.54 billion, leasing the rights to over 11,300 wireless towers to American Tower (AMT 95.73, -3.86) for about $5 billion, and entering into an accelerated $5 billion share repurchase program.

Meanwhile, financials benefited from the rise in short-term interest rates with the sector adding 4.8% for the week. Elsewhere among cyclical groups, the energy sector lost 0.3%, but jumped 5.4% for the week as crude oil rallied 2.4% to $51.67/bbl. The energy component spiked more than 9.0% since last Friday.

Also of note, the top-weighted technology sector (-0.6%) settled a bit behind the broader market. Earnings were in focus today with LinkedIn (LNKD 263.40, +25.43) and Twitter (TWTR 48.01, +6.75) soaring 10.7% and 16.4%, respectively, after beating estimates. On the flip side, GoPro (GPRO 47.12, -7.25) and Yelp (YELP 45.11, -12.36) stumbled. GoPro slid 13.3% in reaction to cautious guidance while Yelp tumbled 21.5% after its report revealed a slowdown in user growth.

Today's participation was ahead of average with more than 900 million shares changing hands at the NYSE floor.

Economic data was limited to Nonfarm Payrolls and Consumer Credit:

Nonfarm payrolls added 257,000 new jobs in January after adding an upwardly revised 329,000 (from 252,000) in December while the Briefing.com consensus expected a reading of 235,000
Private payrolls increased by 267,000 in January, down from an upwardly revised 320,000 (from 240,000) in December while the consensus an increase of 225,000
The decline in the average hourly wage in December (-0.2%) was more than offset by a surge in wage growth (0.5%) in January, which easily topped the consensus forecast of a 0.3% gain. However, the sustainability of this growth remains in question considering 20 states raised their minimum wage in January
The unemployment rate ticked up to 5.7% in January from 5.6% in December as a result of an uptick in the labor force participation rate
Consumer credit increased by $14.80 billion in December, up from a downwardly revised $13.50 billion in November while the Briefing.com consensus expected an increase of $15.00 billion

Monday's session will be free of economic data.

Nasdaq Composite +0.2% YTD
Russell 2000 +0.2% YTD
Dow Jones Industrial Average UNCH YTD
S&P 500 -0.2% YTD

Week in Review: Stocks Recover January Losses

The stock market began February on a higher note. The S&P 500 spiked 1.3% while the Nasdaq (+0.9%) and Russell 2000 (+0.9%) underperformed. Overall, the Monday session was fairly quiet with the market spending some time on each side of its unchanged level. The S&P 500 began with a slim gain, but relative weakness among high-beta biotechnology and chipmaker names kept heavily-weighted health care (+0.6%) and technology (+1.0%) sectors on the defensive. The S&P 500 tried to overcome that weakness, but was rebuffed by its 100-day moving average in the 2,010 area. However, a second effort in the late afternoon sent the S&P 500 well above the 100-day average to end the day. All ten sectors finished in the green with energy (+3.0%) spending the entire session in the lead. The sector benefitted from a 2.8% advance in crude oil ($49.59/bbl) while also drawing strength from ExxonMobil (XOM), which reported better than expected earnings thanks to a $1 billion non-cash windfall resulting from deferred tax items and a favorable ruling for expropriated Venezuela assets.

The market registered its second consecutive advance on Tuesday with the S&P 500 climbing 1.4% to retake its 50-day moving average (2,044). The price-weighted Dow (+1.8%) fared a bit better while the Nasdaq Composite (+1.1%) underperformed. Equities displayed strength from the get-go after markets in Europe responded positively to a Financial Times report suggesting Greece will soften its negotiating stance; however, Finance Minister Yanis Varoufakis said there has been no 'U-turn' in Greece's position while German Chancellor Angela Merkel set expectations for a drawn out process, saying the ongoing talks will 'drag on for months.' Despite a rocky road ahead, the market happily continued retracing its losses from January. The S&P 500 narrowed its quarter-to-date decline to 0.4% with all ten sectors ending in the green.

The major averages finished the Wednesday session on a lower note. The S&P 500 lost 0.4% after tumbling from its high to a new low during the final 30 minutes of action after it was reported that the European Central Bank has lifted its waiver that allowed for the acceptance of Greek government debt as collateral. The announcement came with a caveat that the counterparty status of Greek banks remains unchanged and they may satisfy their liquidity needs through Emergency Liquidity Assistance. However, the news showed that the negotiations are likely to be tumultuous, which contrasted with the rosy picture painted in previous days. Despite the closing slide, a handful of influential sectors like consumer discretionary (+0.7%), technology (+0.1%), and consumer staples (+0.1%) were able to finish in the green.

Equities zoomed higher on Thursday, allowing the S&P 500 (+1.0%) to reclaim its loss from Wednesday and then some. The benchmark index erased the remainder of its decline from January while the Dow (+1.2%) and Russell 2000 (+1.3%) outperformed. The key indices made the bulk of their advance during the opening hour and spent the rest of the day in narrow ranges near their highs. The opening spike took place after investors realized that Wednesday's ECB decision to lift a waiver that allowed for the acceptance of Greek government bonds as collateral was political at its core. Germany's Die Welt reported that the ECB has granted up to EUR60 billion in funding to the Bank of Greece through ELA channels. That being said, the negotiations are unlikely to unfold without a hitch, evidenced by the press conference after Greece's Finance Minister Yanis Varoufakis met with his German counterpart Wolfgang Schaeuble. Mr. Schaeuble said he was advised to say the two "Agreed to disagree," but Mr. Varoufakis countered, saying "We didn't even agree to disagree."

3:40 pm: [BRIEFING.COM]

WTI crude oil was actionable again today
Mar crude oil initially began to fall following the weekly Baker Hughes rig count, but has since pulled back.
Despite some pullback, Mar crude still closed $1.20 to $51.67/barrel
Precious metals remained weak today after dropping hard following the morning jobs numbers
Apr gold closed pit trade $28.40 lower at $1234.60/oz, while Mar silver fell $0.51 to $16.68/oz

3:00 pm: [BRIEFING.COM] The S&P 500 trades lower by 0.3%.

The Consumer Credit report for December was just released by the Federal Reserve and it showed an increase of $14.80 billion. That was slightly lower than the Briefing.com consensus estimate of $15.00 billion. The prior month's credit growth was revised to $13.50 billion from $14.10 billion.

2:25 pm: [BRIEFING.COM] The S&P 500 continues battling with its flat line as the afternoon wears on. However, the index remains on track to end the week higher by 3.4%.

Six of ten sectors are now in the red with the rate-sensitive utilities space down 3.3%, which is a function of today's sharp spike in Treasury yields (10-yr yield +12 bps at 1.94%). In fact, the utilities sector has struggled throughout the week and is on course to register a weekly loss of 2.9%.

This week's slide among utilities has coincided with weakness in Treasuries that has sent the benchmark yield higher by 27 basis points.

On the upside, financials (+1.1%) and telecom services (+2.1%) continue holding solid gains with the latter benefitting from a 3.3% spike in the shares of Verizon (VZ 49.45, +1.59).

2:00 pm: [BRIEFING.COM] The S&P 500 trades near its flat line.

The consensus view is that the January employment report easily topped expectations and showcases strong labor market conditions. That analysis may not be completely correct.

According to the National Conference of State Legislators, the minimum wage in 20 states increased on January 1, 2015. The change in state policies resulted in a 0.3% increase in the average minimum wage, with all of the states equally weighted. When weighted by state payrolls, the average minimum wage increased by a slightly less but still hefty 0.2%.

This is not a trivial gain. Since the BLS reports wages based on averages and not medians, the increase in the bottom of the wage spectrum will cause an overall increase in average wages.

Just about 0.2 percentage points of the 0.5 percentage point gain in hourly earnings came from the three lowest paid sectors -- retail trade, leisure and hospitality, and other services. Those three sectors are also the most likely to employ minimum wage workers.

1:30 pm: [BRIEFING.COM] The major U.S. indices have now surrendered all their gains and are in the red for the day following the Greek headlines mentioned in our last update

The telecom sector (+2.3%) remains the notable outperformer on the day as strong gains can be seen in Verizon Communications (VZ 49.65, +1.79) after the company confirmed it is selling wireless assets in three states to Frontier Communications (FTR 7.77, +0.07) for $10.54 bln, leasing the rights to over 11.3k wireless towers to American Tower (AMT 96.48, -3.11) for ~$5 bln, and entering into an accelerated $5 bln share repurchase program.

While utilities (-2.8%) are the largest decliner on the day as Treasury rates jump following the strong jobs data earlier, the energy sector (-0.4%) is also seeing a meaningful decline with respect to the other S&P sectors. Baker Hughes (BHI 62.51, +0.23) released its weekly rig count data at the top of the hour, which showed their U.S. rig count decline for a 9th week in a row, down 87 to $1456. Following the report, the price of WTI crude (+3.5% to $52.25) has whipsawed, but is currently holding on to strong gains despite the broad market selloff.

12:55 pm: [BRIEFING.COM] The major averages are little changed at midday with the S&P 500 (+0.2%) and Russell 2000 (+0.3%) trading ahead of the Dow (+0.1%) and Nasdaq Composite (+0.1%).

Equity indices climbed at the open in reaction to the release of a better than expected Nonfarm Payrolls report for January. According to the Bureau of Labor Statistics, January payrolls increased by 257,000 (Briefing.com consensus 235,000) while the December reading saw a large upward revision to 329,000 from 252,000. Hourly earnings (+0.5%; consensus +0.3%) surpassed estimates, which bolstered the report.

The overall strength of the report has caused participants to reassess their expectations for the timing of the first fed funds rate hike. On that note, The Wall Street Journal's Jon Hilsenrath said today's jobs report increases the chance that the Fed will alter the language that indicates plans to remain 'patient' before hiking rates. Accordingly, the Treasury complex has responded with a slide led by the 5-yr note. The 5-yr yield has spiked 16 basis points to 1.46% while the benchmark 10-yr yield is higher by 12 basis points at 1.94%.

For its part, the greenback has rallied against its peers with the Dollar Index trading higher by 1.1% at 94.64. Today's dollar strength has had little impact on crude oil, which has spiked 4.5% to $52.75/bbl. Meanwhile, the energy sector (+0.3%) trades in-line with the broader market to extend this week's gain to 6.0%.

The spike in shorter-term yields has been a supportive factor to the financial sector (+1.5%) which has shown relative strength since the opening bell. The economically-sensitive group is now up 5.6% since last Friday and trails only the telecom services sector (+1.9%).

The key indices have slipped from their highs in recent action after Standard & Poor's downgraded Greece to 'B-' and said another downgrade could be in the cards. Despite the downtick, six sectors continue holding gains, but market breadth at the NYSE has favored the downside since the early going. Currently, there are 1.3 listings trading in the red for each advancer.

The top-weighted technology sector trades flat after several components reported earnings. LinkedIn (LNKD 269.39, +31.42) and Twitter (TWTR 48.13, +6.87) sport respective gains of 13.2% and 16.6% after beating estimates while GoPro (GPRO 49.00, -5.37) and Yelp (YELP 45.50, -11.97) are on the defensive. GoPro trades down 9.8% in reaction to cautious guidance while Yelp has tumbled 20.8% after its report revealed a slowdown in user growth. Chipmakers have fared a bit better than the sector with the PHLX Semiconductor Index higher by 0.3% after On Semiconductor (ONNN 11.68, +1.41) reported a one-cent beat and guided above analyst estimates.

Economic data reported this morning was limited to the Nonfarm Payrolls report for January:

Nonfarm payrolls added 257,000 new jobs in January after adding an upwardly revised 329,000 (from 252,000) in December while the Briefing.com consensus expected a reading of 235,000
Private payrolls increased by 267,000 in January, down from an upwardly revised 320,000 (from 240,000) in December while the consensus an increase of 225,000
The decline in the average hourly wage in December (-0.2%) was more than offset by a surge in wage growth (0.5%) in January, which easily topped the consensus forecast of a 0.3% gain. However, the sustainability of this growth remains in question considering 20 states raised their minimum wage in January
The unemployment rate ticked up to 5.7% in January from 5.6% in December as a result of an uptick in the labor force participation rate

The Consumer Credit report for December will be released at 15:00 ET (Briefing.com consensus $15.00 billion).

12:30 pm: [BRIEFING.COM] Not much change in the major averages with the S&P 500 (+0.4%) having spent the better part of the past two hours in a four-point range.

In addition to pressuring Treasuries (10-yr yield +11 bps at 1.93%), the strong jobs report for January has given a boost to the greenback. As a result, the Dollar Index (94.66, +1.09) is higher by 1.2% and today's move has helped the index erase a large chunk of this week's loss. Most notably, the dollar has added 1.4% against the yen (119.15) and 1.2% versus the euro (1.1325).

12:00 pm: [BRIEFING.COM] Equity indices remain near their highs with the S&P 500 up 0.4% on the session and higher by 0.6% so far in February.

Investors received another batch of earnings prior to today's open with a handful of technology companies in focus. On that note, LinkedIn (LNKD 271.93, +33.96) and Twitter (TWTR 48.16, +6.90) sport respective gains of 14.3% and 16.9% after beating estimates while GoPro (GPRO 48.99, -5.38) and Yelp (YELP 45.16, -12.31) are on the defensive. GoPro trades down 9.9% in reaction to cautious guidance while Yelp has tumbled 21.2% after its report revealed a slowdown in user growth.

Also of note, On Semiconductor (ONNN 11.68, +1.41) has surged 13.7% after reporting a one-cent beat and guiding above analyst estimates. Meanwhile, the broader PHLX Semiconductor Index is higher by 0.8%.

11:25 am: [BRIEFING.COM] The major averages remain near their highs with the Nasdaq (+0.4%) and S&P 500 (+0.4%) trading just ahead of the Dow Jones Industrial Average (+0.2%).

Although the key indices sport gains, the A/D line at the New York Stock Exchange remains tilted to the downside with about 1.12 issues trading in the red for each advancer. Things look a bit more upbeat at the Nasdaq with advancers outpacing declining issues by a 1.6:1 ratio.

Given their current levels, nine of ten sectors are on course for weekly gains between 1.7% (health care) and 6.3% (telecom services) while the utilities sector has given up 1.6% this week.

Elsewhere, Treasuries have continued their slide, pushing the 10-yr yield up to 1.94% (+12 bps).

10:55 am: [BRIEFING.COM] The stock market has climbed to a new high after withstanding a shaky open. The S&P 500 trades higher by 0.4% while the Russell 2000 (+0.6%) outperforms.

Today's better than expected jobs report has caused a spike in Treasury yields as the market reconsiders the possibility that the Federal Reserve will indeed hike the fed funds rate somewhere near the middle of this year. That expectation has translated into relative bond weakness at the front end of the curve with the 5-yr yield up 13 basis points at 1.44%. Meanwhile, the benchmark 10-yr yield has added 10 basis points to 1.92%.

Conversely, the spike in yields has given a boost to the financial sector (+1.7%), which holds the lead. Including today's gain, the sector is now up 5.8% since the end of last week, trailing only the telecom services sector (+1.4%), which has added 6.5% this week.

The increase in yields has made the utilities sector (-1.7%) a bit less appealing from the dividend yield standpoint. The sector is the only group on course for a weekly loss, trading lower by 1.4% since last Friday.

10:35 am: [BRIEFING.COM]

The dollar index spiked earlier following the jobs numbers, while precious metals tanked to new lows for the day
The index has since extended gains and is now near today's high, which is helping weigh on gold and silver, which are near today's lows
Apr gold is now -2.1% at $1236/oz, while Mar silver -2.6% at $16.75/oz
WTI crude oil has been in positive territory all day so far and is now +2.6% at $51.80/barrel
Mar nat gas is +0.8% at $2.62/MMBtu currently, while Mar copper is -0.3% at $2.59/lb

10:00 am: [BRIEFING.COM] Equity indices have pulled back from their early highs with a handful of sectors returning into the red.

Energy (+0.3%) and financials (+1.1%) continue showing gains, but consumer discretionary and technology hover below their flat lines. The two groups could influence the direction of the market considering they account for more than 30% of the entire S&P 500.

Also of note, health care (-0.4%) and consumer staples (-0.3%) lag with health care pressured by biotechnology. The iShares Nasdaq Biotechnology ETF (IBB 318.06, -1.85) is lower by 0.6% to extend this week's loss to 1.1% versus a 3.4% spike for the S&P 500.

9:45 am: [BRIEFING.COM] The major averages began the day with modest gains following a better than expected jobs report for January. The S&P 500 trades higher by 0.2% with seven sectors in the green.

Growth-sensitive financials (+1.1%) and energy (+0.5%) have displayed opening strength with the latter benefitting from a 2.1% increase in the price of crude oil, which trades at $51.51/bbl.

Elsewhere among influential sectors, health care (-0.4%) and consumer staples (-0.4%) lag while consumer discretionary (+0.1%) and technology (+0.1%) hold slim gains.

Treasuries hover near their lows with the 10-yr yield higher by seven basis points at 1.89%.

9:14 am: [BRIEFING.COM] S&P futures vs fair value: +4.10. Nasdaq futures vs fair value: +5.70. The stock market is on track for a higher open with futures on the S&P 500 trading four points above fair value. Index futures spent the bulk of the night near their flat lines, but spiked after the release of the Nonfarm Payrolls report for January, which was solid on all fronts. According to the report, payrolls increased by 257,000 while the Briefing.com consensus expected a reading of 235,000. Moreover, the December reading saw a large upward revision to 329,000 from 252,000. Hourly earnings (+0.5%; consensus +0.3%) surpassed estimates while the Unemployment Rate ticked up to 5.7% from 5.6% as a result of increased labor force participation rate.

In addition to the jobs report, participants received another full set of quarterly earnings. Twitter (TWTR 46.10, +4.84) and LinkedIn (LNKD 262.75, +24.78) are on course for opening gains after beating their respective estimates while GoPro (GPRO 47.08, -7.29) and Yelp (YELP 48.20, -9.27) are tracking early losses. GoPro issued disappointing guidance while Yelp's report showed a slowdown in user growth.

On the commodity front, crude oil has built on yesterday's advance and currently trades higher by 2.5% at $51.73/bbl, which should be a supportive factor for the energy sector.

Treasuries hover on their lows with the 10-yr yield up seven basis points at 1.89%.

8:57 am: [BRIEFING.COM] S&P futures vs fair value: +6.20. Nasdaq futures vs fair value: +8.50. The S&P 500 futures trade six points above fair value.

Asian markets ended the week on a mixed note. In news, Lu Lei, who heads the research department at the People's Bank of China, said the recent reserve requirement ratio cut should not be viewed as the start of an easing cycle.

Economic data was limited:
Japan's Leading Index improved to 105.2 from 103.9 (expected 105.5)
Australia's AIG Construction Index rose to 45.9 from 44.4

------

Japan's Nikkei gained 0.8% with growth-sensitive names pacing the advance. Nisshin Steel, Nissan Chemical Industries, and OKUMA spiked between 4.9% and 18.7%.
Hong Kong's Hang Seng shed 0.4%, ending on its low. Financials lagged with Bank of China, China Construction Bank, and Industrial & Commercial Bank of China falling between 1.1% and 1.6%. Gaming names outperformed with Galaxy Entertainment surging 7.1% amid reports China will crackdown on foreign casinos.
China's Shanghai Composite lost 1.9%. Financials struggled with China Vanke falling 4.3%.
India's Sensex fell 0.5% amid general weakness. Tata Motors and Bharat Heavy Electricals led the decline with respective losses of 5.0% and 4.6%.

Major European have climbed off their lows, but Germany's DAX (-0.4%) remains pressured. Eurozone finance ministers will meet next Wednesday to discuss the Greek debt crisis. The meeting will take place a day before the EU summit.

In economic data:
Germany's Industrial Production ticked up 0.1% month-over-month (expected 0.4%; previous 0.1%)
UK's trade deficit widened to GBP10.15 billion from GBP9.28 billion (expected deficit of GBP9.10 billion)
French trade deficit widened to EUR3.40 billion from EUR3.20 billion (expected deficit of EUR3.10 billion) while the government budget deficit narrowed to EUR85.60 billion from EUR90.80 billion
Swiss Retail Sales rose 2.2% year-over-year (expected 0.4%; prior -0.6%)

------

UK's FTSE is higher by 0.1%. GlaxoSmithKline outperforms, trading higher by 2.0%. Consumer names are among the laggards with Barratt Developments, Compass Group, and Reckitt Benckiser Group down between 0.5% and 1.5%.
In France, the CAC trades flat. Energy names Total and Technip hold respective losses of 1.0% and 1.4% while Alcatel-Lucent is higher by 3.5% after beating earnings estimates.
Germany's DAX has given up 0.4% amid broad weakness. Bayer is lower by 2.3% and Siemens is down 0.7% after announcing plans to cut 7,800 jobs worldwide.

8:32 am: [BRIEFING.COM] S&P futures vs fair value: +3.20. Nasdaq futures vs fair value: +5.50. The S&P 500 futures trade three points below fair value.

January nonfarm payrolls came in at 257,000 while the Briefing.com consensus expected a reading of 235,000. Nonfarm private payrolls added 267,000 against the 225,000 expected by the consensus. The unemployment rate rose to 5.7% from 5.6% while the consensus expected the rate to hold at 5.6%.

Hourly earnings rose 0.5% while the consensus expected growth of 0.3%. The average workweek was reported at 34.6, which is what the consensus expected.

7:55 am: [BRIEFING.COM] S&P futures vs fair value: +0.50. Nasdaq futures vs fair value: flat. U.S. equity futures trade little changed after maintaining narrow ranges during overnight action. That being said, futures are likely to be active around 8:30 ET when the Bureau of Labor Statistics releases the Nonfarm Payrolls report for January. The Briefing.com consensus expects the report to indicate the addition of 235,000 payrolls while the Unemployment Rate is expected to hold at 5.6%.

In addition to the jobs report, the Consumer Credit report for December will be released at 15:00 ET (consensus $15.00 billion).

Treasuries hold slim gains with the 10-yr yield lower by two basis points at 1.806%.

In U.S. corporate news:

Activision Blizzard (ATVI 19.80, -2.02): -9.3% after cautious guidance and strong dollar concerns overshadowed a bottom-line beat.
Buffalo Wild Wings (BWLD 190.00, +9.71): +5.4% despite missing bottom-line estimates on in-line revenue.
GoPro (GPRO 47.82, -6.55): -12.1% after below-consensus Q1 earnings guidance overshadowed better than expected results.
LinkedIn (LNKD 262.70, +24.73): +10.4% after beating estimates and guiding fiscal-year 2015 earnings ahead of expectations; however, the company issued cautious guidance for Q1.
Twitter (TWTR 45.65, +4.39): +10.6% in reaction to better than expected results and upbeat guidance.
Yelp (YELP 49.35, -8.12): -14.1% after its earnings revealed a slowdown in user growth. The stock received a handful of downgrades following earnings.

Reviewing overnight developments:

Asian markets ended mostly lower. Hong Kong's Hang Seng -0.4%, China's Shanghai Composite -1.9%, and Japan's Nikkei +0.8%
Economic data was limited:
Japan's Leading Index improved to 105.2 from 103.9 (expected 105.5)
Australia's AIG Construction Index rose to 45.9 from 44.4
In news:
Lu Lei, who heads the research department at the People's Bank of China said the recent reserve requirement ratio cut should not be viewed as the start of an easing cycle

Major European indices trade lower across the board. UK's FTSE -0.2%, France's CAC -0.4%, and Germany's DAX -0.6%. Elsewhere, Italy's MIB -0.5% and Spain's IBEX -0.1%
In economic data:
Germany's Industrial Production ticked up 0.1% month-over-month (expected 0.4%; previous 0.1%)
UK's trade deficit widened to GBP10.15 billion from GBP9.28 billion (expected deficit of GBP9.10 billion)
French trade deficit widened to EUR3.40 billion from EUR3.20 billion (expected deficit of EUR3.10 billion) while the government budget deficit narrowed to EUR85.60 billion from EUR90.80 billion
Swiss Retail Sales rose 2.2% year-over-year (expected 0.4%; prior -0.6%)
Among news of note:
Eurozone finance ministers will meet next Wednesday to discuss the Greek debt crisis. The meeting will take place a day before the EU summit.

7:10 am: [BRIEFING.COM] S&P futures vs fair value: flat. Nasdaq futures vs fair value: -1.00.

7:10 am: [BRIEFING.COM] Nikkei...17,648.50...+143.90...+0.80%. Hang Seng...24,679.39...-86.10...-0.40%.

7:10 am: [BRIEFING.COM] FTSE...6,844.63...-21.50...-0.30%. DAX...10,823.60...-81.40...-0.80%.

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

U.S. Stocks Little Changed as Investors Weigh January Payrolls Report

(Bloomberg) -- U.S. stocks fell as benchmark indexes pulled back after climbing toward all-time highs on data showing stronger-than-forecast jobs growth.

The KBW Bank Index rose 1.8 percent as Regions Financial Corp. and Bank of America Corp. added more than 3.2 percent on the prospect of higher interest rates. Utility companies, which have the second-highest dividend yield among 10 groups in the S&P 500, plunged 4.1 percent for the biggest loss since August 2011. Energy stocks reversed an earlier advance, even as oil continued to rally.

The Standard & Poor’s 500 Index fell 0.3 percent to 2,055.47 at 4 p.m. in New York. The Dow Jones Industrial Average fell 60.59 points, or 0.3 percent, to 17,824.29. The gauges came within 1 percent of records reached in December before retreating. Almost 7.8 billion shares changed hands on U.S. exchanges, 14 percent above the three-month average.

“The market is still near all-time highs and there are big unanswered questions out there, whether it be Greece, Ukraine, oil prices or when rates will rise,” Matt Maley, an equity strategist at Miller Tabak & Co LLC in Newton, Massachusetts, said by phone. “Maybe that’s why people are not as enthusiastic to pile in here.”

Stocks retreated after the S&P 500 earlier pushed its gain since Jan. 30 to 3.9 percent during intraday trading, good at the time for the biggest weekly advance since October. More than 400 of the gauge’s companies have risen in the past four days as the index erased a 2015 decline that exceeded 3.2 percent on Jan. 15 and Jan. 30, data compiled by Bloomberg show.

Payroll Data

The S&P 500 rose as much as 0.5 percent after the government’s report showed the U.S. added more jobs than forecast in January, capping the biggest three-month gain in 17 years, and workers’ earnings jumped.

The 257,000 advance in payrolls last month followed a 329,000 gain in December that was bigger than previously reported, figures from the Labor Department showed. The median forecast in a Bloomberg survey of economists called for a 228,000 increase. The unemployment rate climbed to 5.7 percent as the improving job market lured more Americans into the labor force.

A stronger economy has encouraged companies to boost hiring, creating a virtuous cycle of growth as Americans spend newfound incomes on goods and services. Sustained job growth will probably help assure Federal Reserve policy makers that the expansion is well-rooted and can withstand an increase in interest rates later this year.

‘Positive Number’

“This is a very positive number,” said Lisa Hornby, a fixed income portfolio manager at Schroders in New York. The firm manages about 276 billion pounds ($447 billion) globally. “The market is starting to price the Fed back into 2015, we’d seen the market price out the Fed all year, now it looks like we’ll have a Fed hike at least priced into the tail end of the year now.”

The yield on 10-year Treasuries jumped 13 basis points while the Bloomberg Dollar Spot Index gained 1 percent after the report.

Fed Bank of Philadelphia President Charles Plosser said stronger U.S. economic data had him “at the cusp” of thinking the time to raise interest rates was now.

“We’re fast approaching” a point where it’s hard to justify not raising rates, Plosser told CNBC in an interview on Friday.

Oil Rebound

More than $1.3 trillion has been added to the value of global equities this week as higher oil prices boosted energy shares and companies including Pfizer Inc. and Staples Inc. announced more than $20 billion in deals. The S&P 500’s 3 percent weekly gain was its biggest since December.

The benchmark gauge on Thursday erased its losses for 2015, after posting its worst month in a year. Stocks fell in January amid concern that slowing growth overseas will hurt the U.S. economy, while tumbling crude oil and the strengthening dollar weighed on earnings at multinational corporations.

Oil rallied for a second straight day on Friday, capping the biggest two-week gain since March 1998. Brent crude climbed 9.1 percent this week, adding to an 8.6 percent gain last week. It’s still about half the price it was in June.

About 77 percent of the gauge’s companies that have posted earnings this season have beaten analyst estimates, while 56 percent have topped sales projections, data compiled by Bloomberg show.

Earnings Season

With 322 of the 500 companies in the S&P having already reported, earnings last quarter are projected to have grown 4.1 percent, with revenue gaining 1.4 percent. That’s up from 2.4 percent and 0.8 percent at the beginning of the year, respectively.

All 24 lenders in the KBW Bank Index rose as investors anticipated higher interest rates, with JPMorgan Chase & Co., Comerica Inc. and SunTrust Banks Inc. among the leaders.

Interest rates have set new lows in the six years since the financial crisis, crimping lending margins for banks. Sustained job growth probably will help assure Fed policy makers that the expansion is well-rooted and can withstand an increase in interest rates this year.

The Fed’s decision to raise rates will be the biggest story for banks this year, Fred Cannon, a KBW Inc. analyst, said in December. Cannon, who predicts the Fed will begin raising rates in the middle of 2015, said he would have to cut average earnings estimates for all banks by 5 to 6 percent if the central bank leaves rates unchanged this year.

Moody’s, Twitter

The Chicago Board Options Exchange Volatility Index rose 2.6 percent to 17.29. The gauge, know as the VIX, fell more than 17 percent this week after rising 26 percent last week.

Moody’s gained 5.1 percent, its strongest advance since April 2013, after reporting quarterly profit that beat analysts’ estimates, even as the owner of the second-largest ratings company faces lawsuits over its grades leading up to the financial crisis. Insurance providers Lincoln National Corp. and Prudential Financial Inc. gained more than 3.2 percent.

Twitter surged 16 percent, the most since July, after posting quarterly revenue that topped estimates and forecast that the number of new users will pick up. LinkedIn rose more than 10 percent to its highest level ever as the professional-networking service issued a profit forecast for 2015 that topped estimates.

To contact the reporters on this story: Joseph Ciolli in New York at jciolli@bloomberg.net; Callie Bost in New York at cbost2@bloomberg.net

To contact the editors responsible for this story: Cecile Vannucci at cvannucci1@bloomberg.net; Jeff Sutherland at jsutherlan13@bloomberg.net John Shipman

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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