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 Post subject: May 8th Friday Trade Results - No Trades
PostPosted: Fri May 08, 2015 8:18 pm 
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Joined: Sat Jan 10, 2009 2:06 pm
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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)
wrbanalysis@gmail.com (24/7)
http://twitter.com/wrbtrader (24/7)

Quote:
No trades today due to going to my kids sports tournament to watch them play.

Price Action Trade Performance for Today: Emini TF ($TF_F) futures @ $0.00 dollars or +0.00 points, Emini ES ($ES_F) futures @ $0.00 dollars or +0.00 points, Light Crude Oil CL ($CL_F) futures @ $0.00 dollars or +0.00 points, Gold GC ($GC_F) futures @ $0.00 dollars or +0.00 points and EuroFX 6E ($6E_F) futures @ $0.00 dollars or +0.0000 ticks. Total Profit @ $0.00 dollars

Russell 2000 Emini TF Futures: 1 tick or 0.10 = $10.00 dollars and there's more contract information @ The ICE
S&P 500 Emini ES Futures: 1 tick or 0.25 = $12.50 dollars and there's more contract information @ CMEGroup
Light Crude Oil CL (WTI) Futures: 1 tick or 0.01 = $10.00 dollars and there's more contract information @ CMEGroup
Gold GC Futures: 1 tick or 0.10 = $10.00 dollars and there's more contract information @ CMEGroup
EuroFX 6E Futures: 1 tick or 0.0001 = $12.50 dollars and there's more contract information @ CMEGroup

Trade Log: All of my trades were posted real-time in the timestamp ##TheStrategyLab free 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=143&t=2071

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=263&t=2757 contains brief information about trading plan, market context, brokers, trading time frames, position size management and other discussions.

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Market Context Summaries

The below summaries by Bloomberg, Briefing, Reuters and Yahoo! Finance helps me to do a quick review of the fundamentals, FED/ECB/BOE/IMF actions or any important global economic events (e.g. Eurozone, MarketWatch.com) that had an impact on today's price action in many trading instruments I monitor during the trading day. Simply, I'm a strong believer that key market events causes key changes in supply/demand and volatility resulting in trade opportunities (swing points and strong continuation price actions) that reach profit targets. Thus, I pay attention to these key market events, intermarket analysis (e.g. Forex EurUsd, EuroFX 6E futures, Gold GC futures, Light Crude Oil (WTI) CL & Brent Oil futures, Eurex DAX futures, Euronext FTSE100 futures, Emini ES futures, Emini TF futures, Treasury ZB futures and U.S. Dollar Index futures) while using WRB Analysis from one trade to the next trade to give me the market context for price action trading before the appearance of my technical analysis trade signals. Therefore, I maintain these archives to allow me to understand what was happening on any given trading day in the past involving key market events to help better understand my trade decisions (day trading, swing trading, position trading)...something I can not get from my broker statements alone. Further, most financial websites remove (delete) their archives after a few years to make room for new content. Therefore, I maintain my own archives of the news content so that I have it available for me when financial websites no longer archives their content.

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


4:15 pm: [BRIEFING.COM] The stock market enjoyed a broad-based surge on Friday, which helped the S&P 500 (+1.4%) erase its weekly loss. As a result, the benchmark index added 0.4% for the week.

Equity indices registered the bulk of their gains at the open thanks to a pair of factors that underpinned the sharp spike before the first trade was made in the cash market. First, the UK general election proved surprising as conservatives expanded their presence in the parliament and won 331 of 650 seats. Meanwhile, Ed Miliband (Labour), Nick Clegg (Liberal Democrats), and Nigel Farage (UKIP) resigned from leading their respective parties. Although the results were surprising, markets cheered the preservation of status quo with UK's FTSE surging 2.3%.

Index futures held modest gains following the election results and they extended their gains once the U.S. Nonfarm Payrolls report for April beat expectations (223K; Briefing.com consensus 218K); however, it is worth noting that the March reading was revised down to 85K from 126K and hourly earnings growth remained weak (+0.1%; consensus +0.2%).

The report sparked a fire under equities and Treasuries as lackadaisical wage growth is likely to be used as an argument in favor of the Federal Reserve maintaining its current policy stance for longer. Treasuries soared in reaction to the report, but they retreated from their highs during the afternoon. Still, the 10-yr note ended in the green with its yield down four basis points at 2.14%. The benchmark yield narrowed its weekly increase to two-basis points and ended the week beneath its 200-day moving average (2.19%).

All ten sectors finished the day in positive territory and only three groups posted gains slimmer than 1.0%. Materials (+1.6%) and health care (+1.6%) jockeyed for the lead throughout the session, but the energy sector (+1.6%) overtook them both as part of a late rally. On a related note, crude oil rose 0.7% to $59.42/bbl.

Moving on, the health care sector received a boost from biotechnology with iShares Nasdaq Biotechnology ETF (IBB 351.93, +7.82) spiking 2.3%, and above its 50-day moving average, which had been an area of focus during the past two weeks.

Interestingly, today's broad advance masked the underperformance among a couple other high-beta areas like chipmakers and transport stocks.

The PHLX Semiconductor Index gained 1.0%, but spent the day behind the broader market as NVIDIA (NVDA 20.81, -1.68) weighed. Shares of NVDA fell 7.5% after the company reported in-line results and guided lower. That being said, the broader technology sector (+1.4%) ended a step ahead of the broader market with large cap names like Apple (AAPL 127.52, +2.26), Google (GOOGL 548.95, +6.91), and Microsoft (MSFT 47.75, +1.05) picking up the slack. Microsoft was a standout, climbing 2.3% after Reuters reported the company is no longer looking to acquire Salesforce.com (CRM 72.40, -2.12).

Elsewhere, the industrial sector (+1.2%) settled just behind the broader market even as transport stocks underperformed with the Dow Jones Transportation Average advancing 0.6%. Five components of the bellwether complex registered losses with Landstar System (LSTR 63.18, -0.86) sliding 1.3%.

Today's participation was below recent averages as 759 million shares changed hands at the NYSE floor.

Economic data included Nonfarm Payrolls and Wholesale Inventories:

Nonfarm payrolls added 223,000 new jobs in April, up from a downwardly revised 85,000 (from 126,000) in March while the Briefing.com consensus expected an increase of 218,000
Private payrolls increased by 213,000 jobs in April after adding a downwardly revised 94,000 (from 129,000) in March while the consensus expected an increase of 215,000
The average hourly wage increased 0.1% in April after increasing a downwardly revised 0.2% in March
The average workweek remained at 34.5 hours for a second consecutive month
The combination of the increase in payrolls and wages along with constant hours pushed aggregate earnings levels up 0.3% in April. Earnings were flat in March
The unemployment rate fell to 5.4% in April from 5.5% in March, which met consensus expectations
Wholesale inventories increased 0.1% in March after increasing a downwardly revised 0.2% (from 0.3%) in February while the Briefing.com consensus expected an increase of 0.3%
The BEA assumed that wholesale inventories increased 0.6% in the advance Q1 2015 GDP report. The downside miss in March combined with the revisions to February will result in a downward revision to first quarter GDP when the second estimate is released at the end of the month

There is no economic data on Monday's schedule.

Nasdaq Composite +5.4% YTD
S&P 500 +2.7% YTD
Russell 2000 +2.3% YTD
Dow Jones Industrial Average +2.0% YTD

Week in Review: Stocks Roundtrip

The stock market kicked off the trading week on an upbeat, albeit quiet, note. The Dow and S&P 500 gained 0.3% apiece while the Nasdaq Composite (+0.2%) slipped behind the broader market during afternoon action. "Quiet" was the general theme on Monday as most global equity markets also posted gains while Japan's Nikkei and UK's FTSE were closed for holidays. Seven of ten sectors finished in the green with financials (+1.0%) and utilities (+0.7%) ending in the lead. The countercyclical utilities sector lost the lead during the final hour while financials crept higher throughout the day, also overtaking the health care sector (+0.6%) during afternoon action.

Equity indices ended Tuesday on a sharply lower note following a daylong retreat that was paced by the Nasdaq Composite (-1.6%). For its part, the S&P 500 lost 1.2% with all ten sectors ending in the red. The Tuesday selloff followed an overnight session that featured a 4.1% drop in China's Shanghai Composite after some equity brokers increased their margin requirements, which led to forced selling. Furthermore, markets across Europe also struggled with Germany's DAX diving 2.5% amid spiking yields. To that point, Germany's 10-yr bund yield surged 13 basis points to 0.52% after hovering near 0.16% as recently as last week while Italy's 10-yr yield soared 34 basis points to 1.83%. Rising interest rates were not unique to Europe as the U.S. 10-yr note registered its sixth consecutive decline, sending its yield higher by three basis points to 2.17%. The benchmark yield hit its highest level since early March and spent the day near its 200-day moving average, representing the first appearance near that level in more than a year.

The stock market registered its second consecutive decline on Wednesday with the S&P 500 (-0.4%) bouncing off its 100-day moving average (2,070). The key indices began the day with slim gains, but the Dow, Nasdaq, and S&P 500 quickly returned below their 50-day moving averages and continued lower throughout the day. Adding to the pressure were comments from Fed Chair Janet Yellen who reminded investors that equity valuations are "generally quite high" and that raising the fed funds rate is likely to be followed by a spike in Treasury yields. The opening spike notwithstanding, the Wednesday session was largely a repeat of Tuesday's slide; however, the Nasdaq, which underperformed on Tuesday, retreated alongside the broader market on Wednesday. The major indices cut their losses in half during the final hour, but nine sectors settled in the red with the countercyclical telecom services space (-1.2%) ending behind its peers. More notably, the largest sector by weight-technology (-0.8%)-was the second-weakest performer with large cap names fueling the weakness. Shares of Microsoft (MSFT 46.28, -1.32) tumbled 2.8% while the likes of Apple (AAPL 125.01, -0.79), Google (GOOGL 535.08, -7.96), Oracle (ORCL 43.26, -0.66), and Intel (INTC 32.22, -0.42) lost between 0.6% and 1.5%. It is worth noting that unlike Intel, some other chipmakers outperformed with the PHLX Semiconductor Index shedding just 0.1%.

The market snapped its two-day skid with a Thursday advance that lifted the S&P 500 (+0.4%) into the neighborhood of its 50-day moving average (2,089). The benchmark index narrowed its week-to-date loss to 1.0% while the Nasdaq Composite (+0.5%) outperformed, narrowing its weekly loss to 1.2%. Equity indices vacillated near their flat lines during the opening hour and followed their shaky start with a broad-based rally. However, the cash market masked the fact that S&P 500 futures were down more than 15 points overnight. That weakness coincided with selling in the Treasury market, which abated once the benchmark 10-yr yield kissed the 2.30% level. To be fair, the overnight selloff in Treasuries did not take place in a vacuum as Germany's 10-yr bund endured a sharp plunge that briefly sent its yield as high as 0.79%. German bunds were able to retrace the entire move, returning to 0.59% while U.S. Treasuries did that and then some. The 10-yr note rallied throughout the session, dropping its yield six basis points to 2.18% and back below the 200-day moving average (2.19%).

3:45 pm: [BRIEFING.COM]

Energy futures had a mixed day with oil and natural gas futures trading higher and heating oil and RBOB flat
June crude ended the day +$0.44 at $59.42/barrel, while June nat gas rallied $0.15 to $2.88/MMBtu
Metals rose today as well
June gold gained +$6.80 to $1189.10/oz, July silver rose $0.16 to $16.48/oz and July copper increased by $0.01 to $2.92/lb
Sugar futures rallied 3.5% today to $13.42/lb

2:55 pm: [BRIEFING.COM] The S&P 500 trades higher by 1.3% with one hour remaining in the session.

Thanks to today's broad rally, the benchmark index has reclaimed its 50-day moving average (2,089) after slipping below that level earlier in the week. The index dove below that mark on Tuesday and could not reclaim the 50-day average until today. In the meantime, the S&P tested its 100-day moving average (2,071), which served as support on Wednesday.

Sector standing has not changed much with materials (+1.6%) and health care (+1.5%) holding the lead into the home stretch.

2:25 pm: [BRIEFING.COM] Equity indices have inched away from their session highs, but the Dow, Nasdaq, and S&P 500 continue holding gains between 1.1% and 1.4%.

The benchmark index entered today's session down nearly 1.0% for the week, but was able to erase that loss and then some during the opening minutes of today's affair. Similarly, the 10-yr note was on track to end the week lower with its yield up almost six basis points, but the lack of solid wage growth in the employment report has cooled rate hike fears, allowing the 10-yr note to retrace the bulk of its weekly loss. The 10-yr yield is currently down four basis points at 2.14%, which represents a three-basis point increase for the week.

1:55 pm: [BRIEFING.COM] The major averages continue holding solid gains.

Heading into the April "Employment Situation Report," the focus was to see if the labor market improved enough to justify a rate hike occurring closer to July than December. In our opinion, this report did nothing to change the conditions that still warrant very easy monetary policy.

Nonfarm payrolls added 223,000 new jobs in April, up from a downwardly revised 85,000 (from 126,000) in March. The Briefing.com Consensus expected nonfarm payrolls to increase by 218,000.

Private payrolls increased by 213,000 jobs in April after adding a downwardly revised 94,000 (from 129,000) in March. The consensus expected private payrolls to increase by 215,000.

All in all, the employment data were pretty consistent with expectations. Yet, those expectations really weren't anything that special, especially after considering the weakness that came in March.

The reality is that labor market conditions have materially improved, and the claims data suggest that jobs are at their most secure point in 15 years. Businesses, however, have little desire to add to their current workforce and are content to keep production levels stable.

What's more is that the increase in aggregate earnings was not strong enough to push businesses to raise prices beyond their current trend. An acceleration in inflation, which could force the Fed to pull the trigger on a rate hike earlier than they necessarily want, does not seem to be in the cards.

1:35 pm: [BRIEFING.COM] The major U.S. indices are resting just under their daily highs after surging this morning following the April employment report.

In the weekly Baker Hughes (67.30, +1.20) rig data release, the company reported that the total number of U.S. oil & gas rigs declined by 11, the 22nd consecutive week showing a drop. Worth noting, today's report may be signaling a stabilization in the oil and gas industry, especially when taking into account the recovery seen in WTI crude futures (+0.8% to $59.40) the past two months. While the weekly report didn't cause a notable reaction in crude futures, the commodity maintains mild gains today, floating just under $60/bbl.

As we enter another week of earnings reports, 89% of the S&P 500 companies have already reported their quarterly results. Per usual, the EPS results have come in ahead of analysts' lowered expectations.

12:55 pm: [BRIEFING.COM] The major averages hold solid midday gains with the Dow Jones Industrial Average (+1.5%) trading ahead of the S&P 500 (+1.3%). The two indices are now on track to end the week higher by 0.9% and 0.3%, respectively.

The Friday advance began with an upbeat start in Europe after the UK general election proved surprising as conservatives expanded their presence in the parliament and are expected to hold as many as 329 seats.

Index futures advanced on reports that status quo would be preserved in the UK, and charged to new highs after the Nonfarm Payrolls report for April beat expectations (223K; Briefing.com consensus 218K); however, it is worth noting that the March reading was revised down to 85K from 126K and hourly earnings growth remained weak (+0.1%; consensus +0.2%).

That combination sparked a fire under equities and Treasuries as lackadaisical wage growth is likely to be used as an argument in favor of the Federal Reserve maintaining its current policy stance for longer. Treasuries soared in reaction to the report, sending the 10-yr yield lower by seven basis points to 2.12% and back to unchanged for the week.

All ten sectors sport midday gains with eight groups up 1.0% or more. The materials sector (+1.8%) holds the lead, but more notably, the heavily-weighted health care sector (+1.7%) follows right behind. Biotechnology has made a significant contribution to the sector with iShares Nasdaq Biotechnology ETF (IBB 352.59, +8.48) trading higher by 2.5%. Today's advance has sent the ETF above its 50-day moving average (349.45), which had acted as resistance since late April.

Over on the cyclical side, the six growth-oriented groups are bunched together with gains ranging from 1.1% (energy) to 1.4% (technology). The energy sector spent some time in negative territory at the start, but was lifted out of negative territory by crude oil, which is now higher by 0.4% at $59.19/bbl.

On the earnings front, NVIDIA (NVDA 20.64, -1.84) has surrendered 8.2% after reporting in-line results and guiding lower. The stock's underperformance has weighed on the chipmaker group with the PHLX Semiconductor Index (+0.8%) trading behind the broader market.

Economic data included Nonfarm Payrolls and Wholesale Inventories:

Nonfarm payrolls added 223,000 new jobs in April, up from a downwardly revised 85,000 (from 126,000) in March while the Briefing.com consensus expected an increase of 218,000
Private payrolls increased by 213,000 jobs in April after adding a downwardly revised 94,000 (from 129,000) in March while the consensus expected an increase of 215,000
The average hourly wage increased 0.1% in April after increasing a downwardly revised 0.2% in March
The average workweek remained at 34.5 hours for a second consecutive month
The combination of the increase in payrolls and wages along with constant hours pushed aggregate earnings levels up 0.3% in April. Earnings were flat in March
The unemployment rate fell to 5.4% in April from 5.5% in March, which met consensus expectations
Wholesale inventories increased 0.1% in March after increasing a downwardly revised 0.2% (from 0.3%) in February while the Briefing.com consensus expected an increase of 0.3%
The BEA assumed that wholesale inventories increased 0.6% in the advance Q1 2015 GDP report. The downside miss in March combined with the revisions to February will result in a downward revision to first quarter GDP when the second estimate is released at the end of the month

12:25 pm: [BRIEFING.COM] Equity indices remain near their highs with the Dow Jones Industrial Average (+1.5%) trading ahead of the S&P 500 (+1.3%).

The April Nonfarm Payrolls report sparked a fire under equities and Treasuries while the Dollar Index (94.65, +0.02) has essentially held its ground. The Index set a new session low immediately after the report and followed that with a surge to a new session high before returning to its unchanged level.

Elsewhere, Treasuries sit on their highs with the 10-yr yield down seven basis points at 2.11%.
Related Quotes

11:55 am: [BRIEFING.COM] Not much change in the market with the key indices drifting near their session highs.

The materials sector (+1.9%) holds the lead while the other commodity-related sector-energy-has extended its gain to 1.1%. The energy space spent some time in the red, but a swift recovery has followed the early weakness. On a related note, crude oil trades higher by 1.0% at $59.58/bbl.

Elsewhere, Treasuries are probing their session highs with the 10-yr yield down seven basis points at 2.11%. The benchmark yield is back below its 200-day moving average (2.19%) and unchanged for the week.

11:25 am: [BRIEFING.COM] Recent action saw the S&P 500 (+1.3%) inch to a fresh session high.

With the market on highs, eights sectors now show gains of at least 1.0% with materials (+1.9%) and health care (+1.8%) maintaining the lead. Furthermore, six of ten groups are now on track to register weekly gains.

The financial sector (+1.1%) trails the broader market today, but the group has had the best showing this week as it holds a week-to-date gain of 1.4%. That puts the cyclical sector just ahead of the health care space, which has advanced 1.2% since last Friday.

On the downside, the energy sector (+0.9%) is tracking a 1.8% decline for the week. Fittingly, the group is the second-weakest performer today as crude oil adds 0.4% to $59.19/bbl.

10:55 am: [BRIEFING.COM] Equity indices remain near their highs with the S&P 500 (+1.2%) trading a little behind the Dow Jones Industrial Average (+1.4%). However, today's advance has helped both indices erase their weekly losses. The S&P 500 is now on track to add 0.3% for the week while the Dow is higher by 0.9% since last Friday.

All ten sectors sport gains with materials (+1.8%) and health care (+1.7%) jockeying for the lead. Notably, biotechnology has contributed to the strength of the health care sector with the iShares Nasdaq Biotechnology ETF (IBB 351.28, +7.17) higher by 2.2%. Furthermore, the ETF has returned above its 50-day moving average (349.42) after struggling with that level since late April.

Elsewhere, Treasuries remain near their best levels of the day with the 10-yr yield down six basis points at 2.13%.

10:40 am: [BRIEFING.COM]

Following notable volatility this morning, the dollar index has currently settled modestly higher, which is helping weigh on certain commodities.
April economic data released this morning showed in-line payroll growth and a sharp downward revision of last month's estimate
The index is now +0.3% at 94.94
Natural gas has rallied strong all morning, which is most likely driven by weather, trading as high as $2.87 during the session. June futures are now +4.2% to $2.85/ MMBtu
Crude oil has fallen moderately during the session by about 1% and is currently trading at $58.35/barrel
Later on today at 1 pm ET, Baker Hughes will release its weekly rig count data, which may act as a catalyst for oil.
June gold is currently -0.3% to $1185.50/oz and July silver is -0.4% to $16.36/oz
July copper has trended upward negative territory most recently but is still -0.4% to $2.91/lb

10:00 am: [BRIEFING.COM] The S&P 500 trades higher by 1.2%.

Just released, March wholesale inventories rose 0.1%, while the Briefing.com consensus expected an uptick of 0.3%. Today's report followed last month's revised increase of 0.2% (from 0.3%).

9:40 am: [BRIEFING.COM] As expected, the major averages began the day with solid gains and the S&P 500 (+1.0%) has wiped out its week-to-date decline.

All ten sectors sport opening gains with six groups up more than 1.0% apiece. Heavily-weighted health care (+1.3%), consumer discretionary (+1.3%), industrials (+1.2%), and technology (+1.1%) have fueled the early move while energy (+0.3%) represents the weakest group.

Elsewhere, Treasuries have continued their rally with the 10-yr yield now down seven basis points at 2.11%. Thanks to the move, the benchmark yield has distanced itself from the 200-day moving average (2.19%) after ending yesterday's session just below that level.

The March Wholesale Inventories report (consensus 0.3%) will be released at 10:00 ET.

9:10 am: [BRIEFING.COM] S&P futures vs fair value: +21.00. Nasdaq futures vs fair value: +48.10. The stock market is on track for a sharply higher open with futures on the S&P 500 trading 21 points above fair value. Index futures held modest gains throughout the night and soared to highs after the Nonfarm Payrolls report for April beat expectations (223K; Briefing.com consensus 218K); however, it is worth noting that the March reading was revised down to 85K from 126K and hourly earnings growth remained weak (+0.1%; consensus +0.2%).

That combination sparked a fire under equities and Treasuries as lackadaisical wage growth is likely to be used as an argument in favor of the Federal Reserve maintaining its current policy stance for longer. Treasuries hold gains with the 10-yr yield down four basis points at 2.15%.

One more data point remains on the schedule with the March Wholesale Inventories report (consensus 0.3%) set to be released at 10:00 ET.

Also of note, the UK general election proved surprising as conservatives expanded their presence in the parliament and are expected to hold as many as 329 seats. Meanwhile, Ed Miliband (Labour), Nick Clegg (Liberal Democrats), and Nigel Farage (UKIP) have resigned from leading their respective parties. Investors have cheered the results with UK's FTSE trading higher by 2.1% at this time.

8:53 am: [BRIEFING.COM] S&P futures vs fair value: +19.50. Nasdaq futures vs fair value: +46.20. The S&P 500 futures trade 20 points above fair value.

Markets in the Asia-Pacific region finished mostly higher on Friday, led by none other than the Shanghai Composite (+2.3%), which rebounded from recent losses following a disappointing trade balance report for April. The latter reportedly ignited a rally predicated on the idea that bad economic news is good news since it is likely to prompt more policy stimulus.

In economic data:
China's April Trade Balance CNY 34.13 bln (expected CNY 39.45 bln; prior CNY 3.08 bln) as Exports -6.4% year-over-year (expected +2.4%; prior -15.0%) and Imports -16.2% year-over-year (expected -12.0%; prior -12.7%)

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Japan's Nikkei increased 0.5%. Modest gains were led by the financial (+1.8%) and industrial (+1.2%) sectors. Individual standouts included Maruha Nichiro Corp (+7.6%), Sojitz Corp (+7.1%), and Mitsubishi UFJ Financial (+5.6%). Marubeni Corp (-3.1%), Pioneer Corp (-2.5%), and Kyowa Hakko Kirin (-2.8%) paced the decliners. Out of the 225 index members, 161 ended higher, 52 finished lower, and 12 were unchanged.
Hong Kong's Hang Seng added 1.1%, bolstered by gains in the technology (+4.2%), basic materials (+3.4%), diversified (+1.9%), consumer cyclical (+1.3%), and financial (+1.1%) sectors. China Merchants Holdings (+4.5%), Lenovo Group (+4.2%), and China Resources Land (+3.9%) led winning issues. Want Want China Holdings (-3.8%), CNOOC (-2.2%), and China Mengniu Dairy (-1.2%) were the worst-performing stocks. Out of the 50 index members, 33 ended higher, 15 finished lower, and 2 were unchanged.
China's Shanghai Composite increased 2.3% following a weaker-than-expected trade report for April that featured a 6.4% year-over-year decline in exports and a 16.2% year-over-year decline in imports. The weak data reignited the policy stimulus speculation trade which helped cut this week's large losses. For the week, the Shanghai Composite declined 5.3%.

Major European indices trade higher across the board with UK's FTSE (+2.0%) in the lead after yesterday's general election proved surprising as conservatives expanded their presence in the parliament and are expected to hold as many as 329 seats. Meanwhile, Ed Miliband (Labour), Nick Clegg (Liberal Democrats), and Nigel Farage (UKIP) have resigned from leading their respective parties.

Participants received several data points:
Germany's March Industrial Production -0.5% month-over-month (expected 0.4%; prior 0.2%). Separately, March Trade Balance EUR19.30 billion (expected EUR20.00 billion; prior EUR20.00 billion) as exports +1.2% month-over-month (consensus 0.4%; prior 1.4%) and imports +2.4% month-over-month (expected 0.0%; last 1.3%)
UK's Halifax House Price Index +1.6% month-over-month (expected 0.4%; prior 0.6%); +8.5% year-over-year (consensus 7.8%; last 8.1%). Separately, March Trade Balance -GBP10.12 billion (expected -GBP9.80 billion; prior -GBP10.8 billion)
Italy's March Industrial Production +0.4% month-over-month (consensus 0.2%; prior 0.7%); +1.5% year-over-year (expected -0.2%; last -0.1%)
Spain's March Industrial Production +2.9% year-over-year (consensus 1.2%; last 0.9%)

------

UK's FTSE trades higher by 1.9% with all but one component in the green. Financials and homebuilders are among the leaders with Royal Bank of Scotland, Lloyds Banking Group, Barratt Developments, and Persimmon up between 4.8% and 6.9%. Pearson is the lone decliner, down 0.8%.
France's CAC has jumped 1.5%. Growth-sensitive names lead with Airbus Group, Total, Technip, and Lafarge showing gains between 1.5% and 2.4%. Meanwhile, financials hold slimmer gains. BNP Paribas and Societe Generale are both up near 0.5%.
Germany's DAX trades higher by 1.4% amid strength in basic materials. BASF, K+S, Lanxess, and Linde have added between 1.6% and 3.3%. On the downside, Adidas is among the laggards, down 0.9%.

8:32 am: [BRIEFING.COM] S&P futures vs fair value: +14.90. Nasdaq futures vs fair value: +31.40. The S&P 500 futures trade 15 points above fair value.

April nonfarm payrolls came in at 223,000 while the Briefing.com consensus expected a reading of 218,000. The prior month's reading was revised down to 85,000 from 126,000. Nonfarm private payrolls added 213,000 against the 215,000 expected by the consensus. The unemployment rate fell to 5.4% from 5.5%, which is what the consensus expected.

Hourly earnings rose 0.1% while the consensus expected growth of 0.2%. The average workweek was reported at 34.5, which is what the consensus expected.

7:55 am: [BRIEFING.COM] S&P futures vs fair value: +4.10. Nasdaq futures vs fair value: +13.30. U.S. equity futures trade modestly higher amid upbeat action overseas. The S&P 500 futures hover four points above fair value, but that is likely to change once the Nonfarm Payrolls report for April (Briefing.com consensus 218K) crosses the wires at 8:30 ET.

Participants are likely to focus on the average hourly earnings component (Briefing.com consensus +0.2%), which could be viewed as a sign of impending wage inflation if the reading surpasses estimates.

Today's economic data will be topped off with the 10:00 ET release of the March Wholesale Inventories report (consensus 0.3%).

Treasuries are little changed with the 10-yr yield at 2.18%.

In U.S. corporate news of note:

AOL (AOL 41.50, +2.11): +5.4% in reaction to better than expected results.
JD.com (JD 33.00, -0.08): -0.2% after missing bottom-line estimates and issuing upbeat guidance.
Monster Beverage (MNST 134.01, -9.48): -6.6% after missing earnings estimates on better than expected revenue.
NVIDIA (NVDA 21.50, -0.99): -4.4% after reporting in-line results and guiding lower.
Salesforce.com (CRM 71.80, -2.72): -3.7% after Reuters reported Microsoft (MSFT 47.01, +0.31) is not considering a bid for the company.

Reviewing overnight developments:

Asian markets ended mixed, but Japan's Nikkei (+0.5%), Hong Kong's Hang Seng (+1.1%), and China's Shanghai Composite (+2.3%) posted gains.
In economic data:
China's April Trade Balance CNY 34.13 bln (expected CNY 39.45 bln; prior CNY 3.08 bln) as Exports -6.4% year-over-year (expected +2.4%; prior -15.0%) and Imports -16.2% year-over-year (expected -12.0%; prior -12.7%)
In news:
China's weaker than expected trade data sparked expectations for more policy easing, which helped the Shanghai Composite outperform other regional indices

Major European indices trade higher across the board. UK's FTSE +2.0%, France's CAC +1.0%, and Germany's DAX +0.7%. Elsewhere, Italy's MIB +1.0% and Spain's IBEX +0.9%.
Participants received several data points:
Germany's March Industrial Production -0.5% month-over-month (expected 0.4%; prior 0.2%). Separately, March Trade Balance EUR19.30 billion (expected EUR20.00 billion; prior EUR20.00 billion) as exports +1.2% month-over-month (consensus 0.4%; prior 1.4%) and imports +2.4% month-over-month (expected 0.0%; last 1.3%)
UK's Halifax House Price Index +1.6% month-over-month (expected 0.4%; prior 0.6%); +8.5% year-over-year (consensus 7.8%; last 8.1%). Separately, March Trade Balance -GBP10.12 billion (expected -GBP9.80 billion; prior -GBP10.8 billion)
Italy's March Industrial Production +0.4% month-over-month (consensus 0.2%; prior 0.7%); +1.5% year-over-year (expected -0.2%; last -0.1%)
Spain's March Industrial Production +2.9% year-over-year (consensus 1.2%; last 0.9%)
Among news of note:
The UK election proved surprising as conservatives expanded their presence in the parliament and are expected to hold as many as 329 seats. Meanwhile, Ed Miliband (Labour), Nick Clegg (Liberal Democrats), and Nigel Farage (UKIP) have resigned from leading their respective parties.

5:56 am: [BRIEFING.COM] S&P futures vs fair value: +3.70. Nasdaq futures vs fair value: +15.60.

5:55 am: [BRIEFING.COM] Nikkei...19379.19...+87.20...+0.50%. Hang Seng...27577.34...+287.40...+1.10%.

5:55 am: [BRIEFING.COM] FTSE...7009.76...+122.80...+1.80%. DAX...11483.11...+75.10...+0.70%.

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

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

http://www.thestrategylab.com
Phone: +1 708 572-4885
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