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 Post subject: June 5th Friday Trade Results - Profit $3890.00
PostPosted: Fri Jun 05, 2015 5:33 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)
wrbanalysis@gmail.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 @ $140.00 dollars or +1.40 points, Emini ES ($ES_F) futures @ $3,750.00 dollars or +75.00 points, Light Crude Oil CL ($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 @ $3,890.00 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=144&t=2093

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=265&t=2781 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.

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


4:20 pm: [BRIEFING.COM] The stock market ended the week on a flat note, locking in its second consecutive weekly decline. The S&P 500 shed 0.1%, losing 0.7% for the week while the Nasdaq Composite (+0.2%) outperformed, ending essentially unchanged (-0.03%) in the first week of June.

Friday morning featured a whirlwind of global and economic developments, but they barely registered with the market when the dust settled.

Starting in Europe, Greece did not make today's debt payment to the International Monetary Fund, opting instead to bundle all June payments into a single installment of EUR1.60 billion, to be paid on June 19. This will allow discussions to continue, but the developments weighed on investor sentiment in Europe. After European markets closed, Greek Prime Minister Alexis Tsipras addressed the Greek parliament, saying the proposals received from the lenders are unrealistic and that debt restructuring must be included in any potential agreement.

Staying in Europe, the Organization of the Petroleum Exporting Countries met in Vienna, electing to maintain its current production target at 30 million barrels per day. Crude oil struggled in the early going, revisiting last week's lows, but ended higher by 1.9% at $59.13/bbl. Meanwhile, the energy sector (+0.7%) ended in the lead while only two other groups-financials (+0.6%) and industrials (+0.1%)-registered gains. Going back to oil, the energy component overcame greenback strength that sent the Dollar Index higher by 0.9%, which resulted from a better than expected Nonfarm Payrolls Report for May.

Specifically, the strong report revealed the addition of 280,000 jobs while the Briefing.com consensus expected a reading of 225,000. More notably, average hourly earnings increased 0.3% (Briefing.com consensus 0.2%), which boosted aggregate earnings by 0.5% in May.

The Fed has stated multiple times that the first fed funds rate hike will be contingent on data trends that show the inflation rate gradually moving toward its 2.0% target. The 0.3% increase in hourly wages and the 0.5% increase in aggregate earnings place the economy on that path.

Treasuries plunged in immediate reaction to the report with the 10-yr yield spiking as many as 13 basis points to 2.44% before ending at 2.40% (+9 bps). Also of note, selling in the 2-yr note pushed its yield up to 0.71% (+5 bps), its highest level since 2010. For the week, the benchmark 10-yr yield jumped 28 basis points.

Eight sectors registered losses with defensively-oriented utilities (-1.3%) and consumer staples (-1.4%) ending behind other groups. Both sectors were pressured by high-yielding members as they lost some attractiveness relative to Treasuries. For the week, the utilities sector lost 4.2%.

Elsewhere among countercyclical groups, the health care sector (unch) settled just below its flat line, but that masked afternoon strength in biotechnology. The iShares Nasdaq Biotechnology ETF (IBB 367.04, +4.25) gained 1.2% and helped the Nasdaq Composite end ahead of the broader market while the S&P 500 hit resistance at its 50-day moving average (2,100) early on, and retreated into the afternoon amid weakness in most sectors.

Also contributing to the Nasdaq's strength was the high-beta chipmaker group. The PHLX Semiconductor Index added 0.1%, but losses among large cap members like Intel (INTC 31.84, -0.47) and ASML (AMSL 109.10, -1.49) offset gains in 21 of 30 index components. Smaller index components displayed continued strength amid speculation more mergers and acquisitions could be in the works; however, the broader technology sector (-0.3%) ended among the laggards.

Unlike technology, the second largest sector by weight-financials (+0.6%)-spent the day in positive territory with banks expected to benefit from rising rates at the longer end of the curve. For the week, the financial sector gained 0.8%.

Also of note, the industrial sector (+0.1%) eked out a slim gain thanks to newfound strength among transportation names. The Dow Jones Transportation Average climbed 0.9%, extending its weekly advance to 2.5%.

Today's participation was ahead of recent averages with more than 766 million shares changing hands at the NYSE floor.

Economic data released included Nonfarm Payrolls and Consumer Credit:

Nonfarm payrolls added 280,000 jobs in May after adding a downwardly revised 221,000 (from 223,000) in April while the Briefing.com consensus expected an increase of 225,000
Nonfarm private payrolls increased by 262,000 jobs (Briefing.com consensus 225,000), up from a 206,000 increase in April
Average hourly earnings increased 0.3% in May (Briefing.com consensus 0.2%) after increasing only 0.1% in April. The May increase, combined with increase in payrolls, pushed aggregate earnings up 0.5%
The average workweek was flat at 34.5 hours
The unemployment rate increased to 5.5% in May from 5.4% in April while the consensus expected no change at 5.4%
The entire increase in the unemployment rate was due to discouraged workers returning to the labor force. If the labor force remained at its April level, the unemployment rate would have declined to 5.3%
The Consumer Credit report for April showed an increase of $20.50 billion, which was higher than the Briefing.com consensus estimate of $16.80 billion
The prior month's credit growth was revised to $21.40 billion from $20.50 billion

There is no economic data on Monday's schedule.

Nasdaq Composite +6.6% YTD
Russell 2000 +4.6% YTD
S&P 500 +1.6% YTD
Dow Jones Industrial Average +0.2% YTD

Week in Review: Global Bond Yields Spike

The stock market began June on a modestly higher note with the S&P 500 adding 0.2%. Index futures spiked just before 7:00 ET, reacting to chatter that a deal between Greece and its creditors would be announced shortly. That rumor was struck down within 15 minutes of making the rounds, but equity futures did not retrace that morning spike until the cash market opened for action. The major averages returned to their flat lines once the cash session began, but persistent relative strength among influential groups like health care (+0.4%), technology (+0.3%), consumer discretionary (+0.3%), and industrials (+0.4%) helped the market climb to a fresh high during the afternoon. However, it is worth noting that the Monday advance occurred amid light volume with just 665 million shares changing hands at the NYSE floor. Eight sectors registered gains with industrials (+0.4%) ending atop the leaderboard thanks to a rebound in transport stocks. The Dow Jones Transportation Average rallied 1.1% with airlines pacing the move.

The market registered a slim loss on Tuesday, making for a near carbon copy of Monday's affair with the S&P 500 shedding 0.1%. Equities faced some selling pressure at the start after the overnight session was filled with more speculation about Greece's future in the eurozone. With Greece remaining in limbo, a short squeeze in the euro sent the single currency higher by 2.0% against the dollar to 1.1145. Contributing to the euro strength was some chatter that the European Central Bank could stop its quantitative easing program early due to inflationary pressures. To that point, eurozone CPI rose 0.3% year-over-year in May (expected 0.2%) while core CPI increased 0.9% (consensus 0.7%). Germany's 10-yr bund tumbled in response, sending its yield higher by 17 basis points to 0.72%. Similarly, the U.S. 10-yr note retreated overnight and continued backtracking into the afternoon. The benchmark note settled just above its worst level of the day with its yield higher by eight basis points at 2.26%. As for stocks, the S&P 500 found early support in the neighborhood of its 50-day moving average (2,100) and returned to its flat line shortly after noon ET.

Equity indices ended the midweek session on a modestly higher note, but once again, investor participation was on the light side with fewer than 670 million shares changing hands at the NYSE floor. The S&P 500 added 0.2% while the Nasdaq Composite (+0.5%) outperformed. Stocks began the day on a modestly higher note and extended their gains in the early going; however, a return to their opening levels followed once selling pressure appeared in the neighborhood of this week's highs. Meanwhile, another day went by without an agreement between Greece and its creditors. The lack of progress did not stop the euro from rallying 1.1% against the dollar to 1.1270. To be fair, today's euro strength followed a set of better than expected Services PMI readings with the Eurozone Services PMI climbing to 53.8 from 53.3 (expected 53.3). Also of note, the European Central Bank made no changes to its policy stance, but ECB President Mario Draghi warned that low rates invite high volatility. Fittingly, Germany's 10-yr bund extended this week's plunge, sending its yield higher by 17 basis points to 0.89%. Similarly, U.S. Treasuries sold off with the 10-yr yield rising 11 basis points to 2.37%. Six of ten sectors registered gains with a few cyclical groups holding the lead throughout the day. Specifically, consumer discretionary (+0.7%), financials (+0.7%), and industrials (+0.5%) kept the market afloat with the industrial sector receiving support from transport stocks.

Thursday ended on a lower note following a daylong retreat that sent the S&P 500 (-0.9%) below its 50-day moving average (2,100). Equities struggled from the start as continued uncertainty surrounding Greece weighed on investor sentiment in Europe and the U.S. The International Monetary Fund made headlines in the morning, urging the Federal Reserve to delay its first rate hike until the first half of 2016. A lowered growth forecast was cited to support that argument with the IMF now expecting 2015 GDP growth of 2.5%, down from the previous forecast of 3.1%. Treasuries marked fresh highs following the outlook change at the IMF, and built on their gains in the afternoon with the 10-yr yield falling six basis points to 2.31%. All ten sectors ended in the red with most growth-sensitive groups showing relative weakness. Energy (-1.2%) and materials (-1.3%) spent the bulk of the session behind other groups with energy pressured by a 2.8% drop in crude oil, which ended the pit session at $58.00/bbl ahead of the semiannual OPEC meeting.

3:35 pm: [BRIEFING.COM]

Oil prices were volatile today following OPEC's decision and color on the oil market
Ultimately, July crude oil finished today's floor trading session +1.9% at $59.13/barrel
Natural gas lost $0.04 to $2.59/MMBtu today
Precious metals lost steam today with both gold and silver closing the day with a loss
Aug gold fell $7.10 to $1168.10/oz, while July silver fell $0.12 to $15.99/oz
Copper ended the day unchanged at $2.69/lb.

3:00 pm: [BRIEFING.COM] The S&P 500 trades lower by 0.1%.

The Consumer Credit report for April was just released by the Federal Reserve and it showed an increase of $20.50 billion. That was higher than the Briefing.com consensus estimate of $16.80 billion. The prior month's credit growth was revised to $21.40 billion from $20.50 billion.

2:25 pm: [BRIEFING.COM] Recent action saw the Nasdaq Composite (+0.2%) climb to a fresh session high while the S&P 500 remains near its flat line.

The Nasdaq has been able to pull away from the broader market thanks to the strength in biotechnology. The iShares Nasdaq Biotechnology ETF (IBB 367.01, +4.22) is now up 1.2% while the broader health care sector continues struggling with its flat line. Similar to health care, technology (-0.3%), and consumer discretionary (-0.2%) have spent the afternoon below their flat lines, which has kept the S&P 500 little changed so far this afternoon.

2:00 pm: [BRIEFING.COM] The major averages remain near their flat lines.

After a couple of mediocre readings, the May employment report showed strong improvements in labor market conditions.

Nonfarm payrolls added 280,000 jobs in May after adding a downwardly revised 221,000 (from 223,000) in April. The Briefing.com Consensus expected nonfarm payrolls to increase by 225,000 jobs.

Nonfarm private payrolls increased by 262,000 jobs, up from a 206,000 increase in April. The consensus expected private payrolls to increase by 225,000.

The immediate reaction to the employment report is generally focused on the upside surprises in both total and private payrolls. But the report actually shows a much stronger labor market than even those surprises would suggest.

Average hourly earnings increased 0.3% in May after increasing only 0.1% in April. The average workweek was flat at 34.5 hours.

The combination of the increase in payrolls and the increase in average hourly earnings pushed aggregate earnings up 0.5% in May. That easily topped the 0.3% gain in April and puts upward pressure on both inflation and consumption trends.

The unemployment rate increased to 5.5% in May from 5.4% in April. The consensus expected the unemployment rate to remain at 5.4%.

The increase in the unemployment rate, however, was another sign of improving labor force conditions. The entire increase in the unemployment rate was due to discouraged workers returning to the labor force. If the labor force remained at its April level, the unemployment rate would have declined to 5.3%.

1:30 pm: [BRIEFING.COM] The major indices have slid further since our last update, while the Nasdaq continues to outperform, currently +0.12%.

A look inside the Dow Jones Industrial Average shows that Verizon (VZ 47.44, -0.66), Coca-Cola (KO 40.46, -0.42), & Wal-Mart (WMT 73.42, -0.73) are underperforming. Verizon is among rate-sensitive names that are lower with the action in treasuries, while Wal-Mart is weaker after announcing it had elected Greg Penner as its new Chairman.

Conversely, JP Morgan (JPM 67.52, +1.19) is the best-performing Dow component, helped by strength in financials amid a jump in treasury yields.

Ahead of the close, the DJIA -0.8% for the week

12:55 pm: [BRIEFING.COM] The major averages are little changed after spending the first half of the day near their flat lines. The S&P 500 trades lower by 0.1% after finding resistance at its 50-day moving average (2,100).

Equity indices have spun their wheels through the first half of the session as participants digest three separate macroeconomic developments. Another wrinkle was added to the Greek debt crisis with the country opting to bundle all June debt payments to the International Monetary Fund into a single installment of EUR1.60 billion to be paid on June 19. This will allow discussions to continue for another two weeks, but the developments have weighed on investor sentiment in Europe. Not long ago, Prime Minister Alexis Tsipras began addressing the Greek parliament, saying the proposals received from the lenders are unrealistic.

Separately, the Organization of the Petroleum Exporting Countries has elected to maintain its current production target at 30 million barrels per day. The news has underpinned the energy sector (+0.8%), keeping the group in the green alongside just one other sector-financials (+0.4%).

For its part, the financial sector has benefitted from increased expectations that the Federal Reserve will begin raising rates this year. That argument has been supported by the Nonfarm Payrolls report for May, which revealed the addition of 280,000 jobs while the Briefing.com consensus expected a reading of 225,000. Furthermore, average hourly earnings increased 0.3% (Briefing.com consensus 0.2%), which boosted aggregate earnings by 0.5% in May. The Fed has stated multiple times that the first hike will be contingent on data trends that show the inflation rate gradually moving toward its 2.0% target. The 0.3% increase in hourly wages and the 0.5% increase in aggregate earnings place the economy on that path.

Treasuries fell in reaction to the report, but a steady rebound has helped the 10-yr note erase a portion of its loss. Still, the benchmark note remains firmly in the red with its yield higher by eight basis points at 2.39%. Following this week's selloff, the 10-yr yield is higher by 27 basis points since last Friday.

Eight sectors continue holding midday losses with utilities (-1.3%) and consumer staples (-1.2%) at the bottom of the barrel. Meanwhile, the influential health care sector (-0.3%) also trades in the red while biotechnology outperforms. The iShares Nasdaq Biotechnology ETF (IBB 363.86, +1.07) is higher by 0.3%.

The relative strength in biotechnology has kept the Nasdaq Composite (+0.1%) ahead of the broader market. To be fair, chipmakers have also helped the Nasdaq, evidenced by a 0.2% increase in the PHLX Semiconductor Index. The high-beta group has benefitted from speculation that more acquisitions could be on the way after Broadcom (BRCM 54.37, +0.15) and Altera (ALTR 51.64, +0.20) found suitors. Atmel (ATML 9.47, +0.37) leads the 30-stock group with a 4.0% gain. Meanwhile, the broader technology sector (-0.2%) remains in the red.

Economic data released this morning was limited to Nonfarm Payrolls:

Nonfarm payrolls added 280,000 jobs in May after adding a downwardly revised 221,000 (from 223,000) in April while the Briefing.com consensus expected an increase of 225,000
Nonfarm private payrolls increased by 262,000 jobs (Briefing.com consensus 225,000), up from a 206,000 increase in April
Average hourly earnings increased 0.3% in May (Briefing.com consensus 0.2%) after increasing only 0.1% in April. The May increase, combined with increase in payrolls, pushed aggregate earnings up 0.5%
The average workweek was flat at 34.5 hours
The unemployment rate increased to 5.5% in May from 5.4% in April while the consensus expected no change at 5.4%
The entire increase in the unemployment rate was due to discouraged workers returning to the labor force. If the labor force remained at its April level, the unemployment rate would have declined to 5.3%

The Consumer Credit report for April (Briefing.com consensus $16.80 billion) will be released at 15:00 ET.

12:30 pm: [BRIEFING.COM] The major averages continue trading near their flat lines, but there are some signs suggesting the S&P 500 (-0.2%) could revisit its morning low.

Specifically, the financial sector has narrowed its gain to 0.5% after being up more than 1.0% a couple hours ago. The sector deserves attention as the afternoon wears on, considering it accounts for 16.2% of the entire market. Elsewhere, another pocket of strength-energy (+0.8%)-trades a bit closer to its early high.

On the downside, the top-weighted technology sector has extended its decline to 0.4%, but chipmakers continue showing relative strength with the PHLX Semiconductor Index up 0.2%.
Related Quotes

12:00 pm: [BRIEFING.COM] The S&P 500 (-0.1%) remains just below its flat line while the Nasdaq Composite (+0.1%) trades just ahead, thanks to the relative strength among high-beta biotechnology and chipmaker names.

The iShares Nasdaq Biotechnology ETF (IBB 364.73, +1.94) trades higher by 0.5%, but the broader health care sector (-0.2%) remains among the laggards. Similar to biotechnology, chipmakers hold gains with the PHLX Semiconductor Index trading higher by 0.2% while the overall technology sector (-0.2%) sits in the red. As for semiconductor names, they have been supported by speculation that more acquisitions could be on the way. Atmel (ATML 9.38, +0.29) is the top performer in the Semiconductor Index, trading higher by 3.1%.

11:35 am: [BRIEFING.COM] Not much change in the market with the S&P 500 alternating between slight gains and losses. Looking at the bigger picture, the benchmark index has been book-ended by its 100- (2,084) and 50-day (2,100) moving averages with today's session low being set fewer than two points above the 100-day average.

Meanwhile, the 50-day average has been an area of congestion this week with the S&P 500 first testing that level on Tuesday before recovering. The benchmark index then revisited the 50-day average yesterday, settling about five points below that mark, which is where the index remains at this juncture.

Energy (+0.7%) and financials (+0.8%) continue holding gains, but they have backed away from their session highs.

11:00 am: [BRIEFING.COM] Equity indices remain near their flat lines with large gains in financials (+1.0%) and energy (+1.2%) offsetting weakness in other areas.

The two cyclical sectors have added to their gains since our last update with the resulting strength lifting other sectors. The utilities sector remains down 1.1%, but more influential sectors like technology (-0.2%), health care (-0.2%), and consumer discretionary (-0.3%) have erased the bulk of their losses.

On the upside, the financial sector has enjoyed broad support from its largest components as they rally amid rising prospects of a rate hike this year. Bank of America (BAC 17.25, +0.47) has jumped 2.8% while the likes of Citigroup (C 56.17, +0.84), JPMorgan Chase (JPM 67.55, +1.22), and Wells Fargo (WFC 56.86, +0.72) hold gains between 1.3% and 1.9%.

Elsewhere, Treasuries have climbed off their lows, but they remain pressured with the 10-yr yield higher by nine basis points at 2.39%.

10:35 am: [BRIEFING.COM]

The dollar is trading positive for the session, after US payroll and unemployment econ data showed more positive growth than the Street expected
Strength in the index has put heavy pressure on commodities so far this morning, especially oil and precious metals
The dollar is now +0.9% to 96.33
Crude is seeing peripheral selling pressure from dollar strength, but is largely being driven by sentiment surrounding today's OPEC meeting in Vienna.
OPEC commentary this morning has confirmed no change in the cartel's production of 30 mln barrels per day
Oil was positive for the session in early trade, but saw a steady sell-off on headlines from OPEC and the release of econ data.
In most recent trade, a rally has recovered most of the commodity's losses and the July contract is now -0.1% to $57.96/barrel
Precious metals sold off sharply following the jobs data earlier this morning as the dollar index rallied to new highs
August gold continues to trade in the red and is now -0.5% to $1169.30/oz. However July silver has fully recovered and is now +0.1% to $16.12/oz
Natural gas is trading moderately in the red, after holding steady near flat overnight. July nat gas is -1.2% to $2.60/MMBtu
July copper is moderately positive for the session, and near the day's high of +0.7% at $2.70/lb

10:05 am: [BRIEFING.COM] The major averages remain in the red, but the modest 0.1% loss in the S&P 500 masks larger declines among most sectors.

Specifically, technology (-0.3%), health care (-0.5%), consumer discretionary (-0.4%), consumer staples (-0.8%), telecom services (-1.1%), utilities (-1.2%), and materials (-0.4%) trail the broader market while financials (+0.8%) and energy (+1.0%) hold gains. Thanks to the two outliers, the S&P 500 has held up relatively well in the face of greater weakness. Together, energy and financials represent 26.2% of the S&P 500. Also of note, the industrial sector, which accounts for 10.2% of the market, trades in-line with the benchmark index.

Transport stocks have kept industrials in-line with the market, evidenced by a 0.5% gain in the Dow Jones Transportation Average. Shippers, Kirby (KEX 77.66, +0.60) and Matson (MATX 42.70, +0.29), have paced the early strength with gains close to 0.7% apiece while CH Robinson (CHRW 63.75, +0.40) and CSX (CSX 34.23, +0.19) follow not far behind.

9:45 am: [BRIEFING.COM] As expected, the major averages began the day with modest losses as participants digest the implications of the Nonfarm Payrolls report for May. The S&P 500 trades lower by 0.3%.

Eight of ten sectors display opening losses while financials (+0.5%) and energy (+0.1%) have shown relative strength. Bank shares have responded positively to the rising prospect of a rate hike, considering their interest income should increase as yields rise at the long end of the curve. The 10-yr note remains near its low with the benchmark yield up 11 basis points at 2.41%.

Elsewhere, energy stocks are responding positively to OPEC choosing to maintain status quo. Oil, however, has not been able to stay in the green, trading lower by 1.4% at $57.17/bbl. To be fair, crude has had to contend with a 1.4% spike in the Dollar Index (96.79, +1.30), resulting from today's economic data.

That being said, the remaining cyclical sectors display losses between 0.5% and 0.6% while the most influential countercyclical group-health care-also trades lower by 0.6%.

9:11 am: [BRIEFING.COM] S&P futures vs fair value: -2.30. Nasdaq futures vs fair value: -7.80. The stock market is on track for a modestly lower open as futures on the S&P 500 trade two points below fair value. The slight change masks what has been a busy morning, featuring three separate story lines.

First, Greece did not make today's debt payment to the International Monetary Fund, opting instead to bundle all June payments into a single installment of EUR1.60 billion to be paid on June 19. This will allow discussions to continue for another two weeks, but the developments have weighed on investor sentiment in Europe.

Next, the Organization of the Petroleum Exporting Countries has elected to maintain its current production target at 30 million barrels per day. The news gave a brief boost to oil futures, but the energy component has dropped to a new low and now trades down 0.8% at $57.55/bbl.

Most recently, the U.S. Nonfarm Payrolls report for May indicated the addition of 280,000 jobs while the Briefing.com consensus expected a reading of 225,000. Furthermore, average hourly earnings increased 0.3% (Briefing.com consensus 0.2%), which boosted aggregate earnings by 0.5% in May. That combination fuels the argument in favor of a rate hike taking place sooner rather than later. The 10-yr note violated yesterday's low in immediate reaction before narrowing its loss. Still, the benchmark note remains near its worst level of the morning with its yield higher by nine basis points at 2.40%.

One more economic data point remains on today's schedule with the Consumer Credit report for April (Briefing.com consensus $16.80 billion) set to cross the wires at 15:00 ET.

8:51 am: [BRIEFING.COM] S&P futures vs fair value: flat. Nasdaq futures vs fair value: -2.10. The S&P 500 futures trade flat versus fair value.

There was some mixed trading action in the Asia-Pacific region on Friday with the volatility in government bond markets, the weak showing from Wall Street on Thursday, and a wait-and-see stance ahead of the U.S. jobs report, OPEC's meeting, and Greece negotiations holding things back. The Shanghai Composite wasn't held back though. It added another 1.5%, leaving it up 8.9% for the week. Conversely, Australia's S&P/ASX 200 dipped 0.1%, leaving it down 4.8% for the week, which was its worst weekly showing in three years.

In economic data:
Japan's April Leading Index +1.2% month-over-month (prior +0.8%) while Coincident Indicator +1.9% month-over-month (prior -1.2%)
Australia's May AIG Construction Index 47.8 (prior 47.0)

------

Japan's Nikkei declined 0.1% with a last-hour rally helping to trim the day's losses. The financial sector (-1.1%) was an influential source of weakness that offset relative strength in the consumer non-cyclical (+0.3%) and industrial (+0.2%) sectors. Sojitz Corp (-3.5%) was the worst-performing issues while Casio Computer (+3.1%) was the best-performing issue. Out of the 225 index members, 85 ended higher, 132 finished lower, and 8 were unchanged. For the week, the Nikkei was down 0.5%.
Hong Kong's Hang Seng declined 1.1% and finished near its lows for the day. Losses were paced by the communications (-1.3%), diversified (-1.3%), energy (-1.3%), and technology (-1.3%) sectors. The influential financial sector fell 0.9%. Cheung Kong Property Holdings (-3.3%) and Bank of Communications (-3.1%) led decliners while Cathay Pacific Airways (+1.5%) and China Mengniu Dairy (+1.2%) led advancers. Out of the 50 index members, 12 ended higher, 36 finished lower, and 2 were unchanged. For the week, the Hang Seng declined 0.6%.
China's Shanghai Composite saw another volatile session, shedding 1.0% in the first half of its trading day and then gaining roughly 2.6% in the second half to close with a 1.5% gain. The basic materials (+3.0%), utilities (+2.2%), and industrials (+1.8%) sectors were the best-performing areas in the Chinese market on Friday. For the week, the Shanghai Composite increased 8.9%.

Major European indices trade lower across the board with Italy's MIB (-1.9%) showing the largest decline. As speculated yesterday, Greece did not make its payment to the International Monetary Fund, instead opting to bundle all payments due in June into a single installment that will be paid on June 19. Elsewhere, the Bundesbank has raised its 2015 GDP growth forecast for Germany to 1.7% from 1.0% while boosting the 2016 outlook to 1.8% from 1.6%.

Participants received several data points:
Germany's April Factory Orders +1.4% month-over-month (expected 0.5%; prior 1.1%)
France's April Trade Balance -EUR3.00 billion (expected -EUR4.00 billion; prior -EUR4.40 billion)
Spain's April Industrial Production +1.8% year-over-year (expected 1.5%; last 3.2%)

------

UK's FTSE is lower by 0.8% with most components in negative territory. Consumer names lag with Morrison Supermarkets, Marks & Spencer, Barratt Developments, and Taylor Wimpey down between 2.6% and 3.0%. On the flip side, miners have shown relative strength with Anglo American, BHP Billiton, and Rio Tinto up between 0.9% and 1.2%.
Germany's DAX has given up 0.9% with all 30 index members trading lower. Financials are among the weakest performers with Commerzbank and Deutsche Bank both down near 1.5%. Also of note exporters like BMW and Daimler trade lower by 0.9% and 1.2%, respectively.
In France, the CAC trades down 1.1% with financials leading the retreat. BNP Paribas, Credit Agricole, and Societe Generale are down between 2.0% and 2.3%. Energy names outperform with Technip up 0.6% and Total trading flat.
Italy's MIB lags with a 1.9% decline. BMPS, Mediobanca, UBI Banca, and Intesa Sanpaolo have surrendered between 2.9% and 4.9% while Saipem represents the lone advancer, up 2.8%.

8:32 am: [BRIEFING.COM] S&P futures vs fair value: -4.50. Nasdaq futures vs fair value: -9.40. The S&P 500 futures trade five points below fair value.

May nonfarm payrolls came in at 280,000 while the Briefing.com consensus expected a reading of 225,000. The prior month's reading was revised down to 221,000 from 223,000. Nonfarm private payrolls added 262,000 against the 225,000 expected by the consensus. The unemployment rate rose to 5.5% while the Briefing.com consensus expected the rate to hold at 5.4%.

Hourly earnings rose 0.3% while the consensus expected growth of 0.2%. The average workweek was reported at 34.5, which is what the consensus expected.

7:58 am: [BRIEFING.COM] S&P futures vs fair value: +1.50. Nasdaq futures vs fair value: +4.60. U.S. equity futures trade near their flat lines amid cautious action overseas. The S&P 500 futures hover two points above fair value after slipping from their highs at the start of the European session. As speculated yesterday, Greece did not make its payment to the International Monetary Fund, instead opting to bundle all payments due in June into a single installment that will be paid on June 19.

Domestically, the U.S. Nonfarm Payrolls report for May will be released at 8:30 ET, which could introduce some volatility into the market. The Briefing.com consensus expects the report to indicate the addition of 225,000 payrolls, but investors are likely to pay very close attention to the hourly earnings component, which is expected to grow 0.2%, according to the Briefing.com consensus. A hotter than expected reading would likely be used as an argument in favor of the Federal Reserve hiking the fed funds rate sooner rather than later.

Separately, the Consumer Credit report for April (Briefing.com consensus $16.80 billion) will cross the wires at 15:00 ET.

Treasuries hover near their overnight lows with the 10-yr yield higher by three basis points at 2.34%.

In U.S. corporate news of note:

Diamond Foods (DMND 29.80, +0.83): +2.9% after beating bottom-line estimates on light revenue.
Vodafone (VOD 37.34, -0.37): -1.0% after the company confirmed discussing a possible exchange of select assets with Liberty Global (LBTYA 55.16, +0.56).

Reviewing overnight developments:

Asian markets ended mixed. China's Shanghai Composite +1.5%, Hong Kong's Hang Seng -1.1%, and Japan's Nikkei -0.1%
In economic data:
Japan's April Leading Index +1.2% month-over-month (prior +0.8%) while Coincident Indicator +1.9% month-over-month (prior -1.2%)
Australia's May AIG Construction Index 47.8 (prior 47.0)
In news:
China's Shanghai Composite struggled ahead of the midday break, but rallied into the close to continue its recent volatility in an otherwise quiet session

Major European indices trade lower across the board. France's CAC -1.4%, Germany's DAX -1.3%, and UK's FTSE -0.7%. Elsewhere, Italy's MIB -1.7% and Spain's IBEX -0.8%
Participants received several data points:
Germany's April Factory Orders +1.4% month-over-month (expected 0.5%; prior 1.1%)
France's April Trade Balance -EUR3.00 billion (expected -EUR4.00 billion; prior -EUR4.40 billion)
Spain's April Industrial Production +1.8% year-over-year (expected 1.5%; last 3.2%)
Among news of note:
The Bundesbank has raised its 2015 GDP growth forecast for Germany to 1.7% from 1.0% while boosting the 2016 outlook to 1.8% from 1.6%

5:53 am: [BRIEFING.COM] S&P futures vs fair value: +4.50. Nasdaq futures vs fair value: +10.20.

5:52 am: [BRIEFING.COM] Nikkei...20460.90...-27.30...-0.10%. Hang Seng...27260.16...-291.70...-1.10%.

5:52 am: [BRIEFING.COM] FTSE...6814.92...-44.30...-0.70%. DAX...11237.21...-103.40...-0.90%.

U.S. Stocks in Tightest Weekly Range Since 1994 Amid Mixed Data

U.S. stocks traded in their tightest weekly range in 21 years as investors sorted through data that kept them guessing about the economy’s resiliency.

Equities slipped in the five days after zigzagging between gains and losses, with the Standard & Poor’s 500 Index ending the period lower by 0.7 percent. That’s the sixth straight week with a move of less than 1 percent, the longest stretch of calm since May 1994.

Friday’s action was a microcosm of the week, as the index swung from green to red more than a dozen times. Jobs data that showed the strongest hiring in five months and the biggest wage gains in two years bolstered optimism in the economy and fueled bets the Federal Reserve will raise interest rates this year. Equities investors, already skittish amid a selloff in global bonds and signs Greece’s debt standoff could end in default, are weighing whether higher borrowing costs will snuff out a recovery struggling to gain traction.

“Economic strength is the long-term driver,” Kate Warne, an investment strategist at Edward Jones & Co. in St. Louis, said by phone. “The trend overall is modestly positive, but we’re likely to see this choppiness along the way. There’s a worry every day and there’s also a resolution for one of those worries every day, so we have this up and down pattern. There is still uncertainty about various issues.”

Tight Range

The S&P 500 finished the week 1.8 percent below its May 21 record. The gauge has not moved more than 1 percent in either direction in 14 of the past 15 sessions, and the spread between the highest and lowest close this year has been only 6.9 percent, the narrowest since 2006.

Investors digested a mixed batch of economic data, with growth in manufacturing offsetting reports that showed consumer spending stalled and factory orders slipped. Friday’s jobs data tipped the scales in favor of a rebound, as the 280,000 increase in non-farm payrolls in May further dispelled fears that a first-quarter slowdown would persist.

The hiring report sent 10-year Treasury yields surging to the highest level this year and pushed the dollar to a 13-year high versus the yen as investors speculated the Fed will boost rates in September. Traders of money-market derivatives lifted the chance of the Fed raising rates then to over 50 percent, according to CME Group data.

“The market was a little bit unsettled,” Greg Woodard, senior analyst and strategist at Fairport, New York-based Manning & Napier Inc., which oversees about $46 billion. “With some of the uncertainties out there and couple that with valuations that are as not attractive as they were a couple years ago, you’re seeing a little bit sideways trading in the market. People are certainly keeping an eye on Greece.”

Rate Guidance

Among the week’s worries were downgrades to economic forecasts. The Organization for Economic Cooperation and Development cut its global-growth prediction and the International Monetary Fund lowered its U.S. outlook. The IMF also urged the Fed to postpone a rate increase until 2016.

Fed Bank of New York President William C. Dudley said the central bank is still likely to start raising borrowing costs this year if the labor market improves further.

Investors are also seeking progress in Greek negotiations after the country deferred a loan payment. Greece said it will bundle a payment due Friday along with three others it owes the IMF by the end of the month. The country rejected demands for more austerity to receive bailout funds.

The Stoxx Europe 600 Index slipped 2.7 percent for the five-day period, extending its two-week decline to 4.6 percent. German 10-year bunds had their worst week since 1998, with yields surging 36 basis points.

Volatility in equities rose for a second straight week as the Chicago Board Options Exchange Volatility Index climbed 2.7 percent. The gauge known as the VIX fell to its lowest level this year on May 21.

Sector Moves

Seven of the S&P 500’s main groups decreased for the week, led by losses of at least 2.5 percent for consumer-staple and utility stocks.

The group of power companies in the benchmark gauge fell as the yield on 10-year Treasuries rose 29 basis points, the biggest five-day gain since the first week of February.

The stronger dollar weighed on consumer-staples producers as Philip Morris International Inc. and General Mills Inc. slipped more than 3 percent.

The S&P 500 energy index lost 1 percent amid a 1.9 percent decline in crude oil prices, the resource’s first weekly drop since the five days ended March 13. Valero Energy Corp. and Marathon Petroleum Corp. fell more than 2.4 percent.

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

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