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 Post subject: June 26th Friday Trade Results - Profit $2485.00
PostPosted: Fri Jun 26, 2015 6:19 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 @ $360.00 dollars or +3.60 points, Emini ES ($ES_F) futures @ $2,125.00 dollars or +42.50 points, Light Crude Oil CL ($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 @ $2,485.00 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=2108

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 mixed note with the Dow Jones Industrial Average (+0.3%) posting a modest gain while the Nasdaq Composite (-0.6%) spent the day in negative territory. For its part, the S&P 500 ended flat, locking in a 0.4% decline for the week to end ahead of the Nasdaq (-0.7% week-to-date).

To little surprise, the trading day began with more rhetoric but little tangible progress between Greek leaders and the country's creditors. With that in mind, the talks are set to enter the eleventh hour with both sides sticking to their own proposals. This morning, Germany's Handelsblatt reported that creditors have offered Greece EUR15.50 billion in bailout funds over the next five months if Greek representatives can agree to the requested reforms; however, that offer was turned down by the Greek delegation. European markets appeared unconcerned with the lack of progress as France's CAC, Germany's DAX, and Italy's MIB spiked between 4.0% and 4.8% for the week. Not to be outdone, Greece's Athens General Composite surged 13.8% for the week, returning into the middle of this year's range.

Domestically, investors appeared to suffer from a case of Grexhaustion, showing little concern about the possibility of a Graccident as it now becomes imperative to reach a deal on Saturday if Greece is to make the June 30 debt payment to the International Monetary Fund. Failing to meet that deadline would put the 'Grexit' talk back on the table. That being said, U.S. Treasuries retreated into the afternoon with the 10-yr yield spiking eight basis points to 2.48%. Also of note, selling in the long bond ran the 30-yr yield higher by ten basis points to 3.25%, representing the highest level since September.

Six of ten sectors registered gains, but daylong weakness in the technology sector (-0.8%) was today's main story and the primary reason for Nasdaq's underperformance. Specifically, it was the high-beta chipmaker industry group that suffered from widespread losses after Micron (MU 19.66, -4.36) reported disappointing results and issued uninspiring guidance. Shares of MU plunged 18.2% to levels not seen since late 2013 while the PHLX Semiconductor Index lost 2.4% with all 30 components ending in the red.

That significant weakness weighed on the technology sector while the Nasdaq also had to contend with losses among biotechnology names. The iShares Nasdaq Biotechnology ETF (IBB 372.70, -3.13) lost 0.8% while the health care sector (-0.1%) spent the day near its flat line with hospital names offsetting the weakness in biotechnology.

Similar to the health care sector, the S&P 500 spent the day near its unchanged level. The index benefited from relative strength in just about every sector other than technology. Most notably, financials (+0.3%), consumer discretionary (+0.4%), and industrials (+0.2%) kept the benchmark index little changed throughout the day.

Of the three influential groups, the discretionary sector was underpinned by apparel retailers after Finish Line (FINL 28.25, +1.25) and Dow component Nike (NKE 109.71, +4.49) reported better than expected results. The two names gained 4.6% and 4.3%, respectively.

Elsewhere, the industrial sector rallied behind Deere (DE 96.44, +3.04), which spiked 3.3%, breaking out to a four-year high. There was no news to account for the move and other manufacturers of heavy machinery ended little changed. As for transport stocks, the Dow Jones Transportation Average (+0.1%) eked out a slim gain for the day, but not before notching a fresh eight-month low during morning action.

Today's participation was well above average as rebalancing of the Russell indices led to increased churn. As a result, nearly two billion shares changed hands at the NYSE floor.

Economic data was limited to the final reading of the Michigan Sentiment Index for June, which was revised up to 96.1 from a preliminary reading of 94.6 while the Briefing.com consensus expected no change. The June reading was up from 90.7 in May, representing the highest level for the index since hitting 98.1 in January.

Monday's data will be limited to the 10:00 ET release of the Pending Home Sales report for May.

Nasdaq Composite +6.8% YTD
Russell 2000 +5.9% YTD
S&P 500 +2.0% YTD
Dow Jones Industrial Average +0.7% YTD

Week in Review: All Eyes Remain on Greece

The stock market opened the trading week on a higher note with the Dow and S&P 500 gaining 0.6% apiece while the Nasdaq Composite (+0.7%) outperformed. Equity indices spent the entire Monday session in the green with investor sentiment receiving a boost from reports indicating Greek officials submitted a new proposal to the Eurogroup. However, regional officials did not share the market's optimism with Germany's Finance Minister Wolfgang Schaeuble saying he does not see anything new in the proposal. The developments pressured global bonds with Germany's 10-yr bund yield spiking 12 basis points to 0.88%. Similarly, the U.S. 10-yr note retreated throughout the day, sending its yield higher by ten basis points to 2.36%. Some of the outflows from the Treasury market made their way into equities as nine of ten sectors posted gains while the rate-sensitive utilities sector (-0.1%) was pressured by the increase in yields.

The major averages ended Tuesday on a modestly higher note after spending the bulk of the day near their flat lines. The S&P 500 added 0.1% after trading inside an eight-point range. Equity indices held modest gains at the start amid continued optimism that Greece will be able to come to terms with its creditors. In addition, better than expected Manufacturing (52.5; consensus 52.2) and Services PMI (54.4; consensus 53.6) readings for the eurozone contributed to the upbeat sentiment overseas. Once the U.S. session got underway, the S&P 500 held a four-point gain, but surrendered that advance just one hour into the session as heavily-weighted sectors like technology (unch), industrials (-0.2%), and consumer staples (-0.5%) weighed. The top-weighted technology sector was able to erase the majority of its loss before the final hour, but chipmakers struggled into the afternoon. The PHLX Semiconductor Index lost 0.6% with all but six components ending in the red.

The stock market ended the midweek session on a broadly lower note with the S&P 500 losing 0.7% and turning negative for the week (-0.1%). Equity indices began the day with slim losses after the International Monetary Fund rejected Greece's restructuring proposal, putting the two sides back at square one. According to Greek Prime Minister Alexis Tsipras, this was the first time the IMF did not accept equivalent fiscal measures proposed by Greek officials. Interestingly, the market appeared to be on the comeback trail during the opening hour with the S&P 500 making a brief appearance in the green; however, the index reversed into the red shortly after activist investor Carl Icahn shared his thoughts on the market as part of an appearance on CNBC. During his interview, Mr. Icahn said he believes the market is "extremely overheated," pointing to high-yield bonds in particular.

The market registered its second consecutive decline on Thursday with the S&P 500 (-0.3%) sliding below its 50-day moving average (2,107). The benchmark index held a modest gain through the morning, but relative weakness among several influential sectors pulled the S&P 500 into negative territory during afternoon action. Stocks began the day with slim gains, but retreated from their opening levels during the initial hour amid reports the Eurogroup meeting was suspended to give the Greek delegation time to submit a better proposal to the creditors. The market dipped from its opening levels in reaction, but was able to briefly extend to a fresh session high with the health care (+0.5%) sector driving the move after the Supreme Court upheld federal subsidies to the Affordable Care Act. Hospital names benefited from the news with the likes of Tenet Healthcare (THC 56.21, +6.13), HCA (HCA 90.72, +7.35), and Universal Health (UHS 140.82, +10.14) spiking between 7.8% and 12.2%. Also in the health care sector, insurer Humana (HUM 197.37, +13.14) surged during the afternoon and ended higher by 7.1% after Bloomberg reported the company received a takeover offer from Aetna (AET 132.60, +5.09).

3:35 pm: [BRIEFING.COM]

WTI crude oil futures end lower again, however, today's loss was very small.
Overall, energy futures ended the day mostly lower with oil, natural gas and RBOB gasoline all declining and heating oil rallying.
Aug crude oil fell $0.06 today to $59.67/barrel, while Aug natural gas fell $0.08 to $2.77/MMBtu'
Note: Use the August contract for front-month natural gas
Aug gold finished today's session $1.40 higher at $1173.20/oz and July silver fell $0.07 to $15.73/oz
July copper gained $0.03 today to $2.65/lb

3:05 pm: [BRIEFING.COM] The S&P 500 trades lower by 0.1% with one hour remaining in the session. Given its current level, the benchmark index is on track to surrender 0.5% for the week while Nasdaq (-0.7%) is on track to end the week lower by 0.8%.

Most notably, the technology sector fared relatively well early in the week, but today's 0.9% decline has the top-weighted group on course to end the week lower by 0.7%. This has been the driving factor behind today's trading dynamic.

Elsewhere, Treasuries ended the day not far above their session lows with the 10-yr yield higher by eight basis points at 2.48%.

2:30 pm: [BRIEFING.COM] Not much change in the market with the Dow Jones Industrial Average (+0.3%) trying to eke out a slim gain for the day as the price-weighted index benefits from a 4.3% advance in Nike (NKE 109.76, +4.54) while 17 other index members also trade with gains.

Elsewhere, heavy selling in the semiconductor industry has sent the PHLX Semiconductor Index (-2.5%) below its 50- and 100-day moving averages. The index gapped below its 50-day average (712.84) at the open, starting the trading day on its 100-day moving average (708.32). However, daylong selling has pressured the high-beta group to mid-May levels when the index found support on its 100-day moving average. Looking at the bigger picture, the 200-day moving average (679.55) lurks 2.8% below and it has not been tested since October.

1:55 pm: [BRIEFING.COM] The S&P 500 continues hovering just below its flat line while the Nasdaq Composite underperforms.

Consumer sentiment is again on the rise.

The University of Michigan Consumer Sentiment Index was revised up to 96.1 in the final June reading from a preliminary reading of 94.6. That is up from a reading of 90.7 in May. The Briefing.com Consensus expected the Consumer Sentiment Index to remain at 94.6.

That was the best reading since the Consumer Sentiment Index reached 98.1 in January.

The gain in sentiment was likely a reaction to large improvements in labor market conditions. That offset concerns about higher gasoline prices.

1:30 pm: [BRIEFING.COM] The major indices remain mixed as the Nasdaq Composite heavily underperforms after disappointing earnings from Micron (MU 19.57, -4.45).

A look inside the Dow Jones Industrial Average shows Nike (NKE 109.15, +3.93), McDonalds (MCD 96.61, +0.82), and 3M (MMM 156.90, +0.98) are outperforming. Nike shares are showing strong gains, and touched new all-time highs earlier after reporting strong quarterly results and receiving bullish commentary from analysts.

Conversely, Intel (INTC 30.83, -1.16) is the worst-performing Dow component on the heels of broad weakness in semiconductors amid the weak quarterly report from Micron as mentioned.

As we near the end of the week, the DJIA is down 0.6% for the week, and 0.53% in June.

1:05 pm: [BRIEFING.COM] The major averages trade in mixed fashion at midday with the Dow Jones Industrial Average (+0.2%) holding a slim gain while the S&P 500 (-0.2%) and Nasdaq Composite (-0.9%) trade in the red amid weakness in biotechnology and technology.

Unsurprisingly, the day began without any concrete developments in Europe where negotiations between Greece and its creditors are set to enter the eleventh hour with both sides sticking to their own proposals. With a debt payment to the International Monetary Fund looming on June 30, it is imperative for a deal to be reached over the weekend, because any change to the current agreement needs to be ratified by the Greek parliament. European markets appeared unconcerned about the lack of progress with France's CAC, Germany's DAX, and Italy's MIB locking in gains between 4.0% and 4.8% for the week. Most of those gains came on Monday amid hopes that an agreement will be reached.

Meanwhile in the U.S., the S&P 500 is on track to lose about 0.6% while the Nasdaq has given up 1.0% with the bulk of that loss taking place today. Most notably, high-beta chipmakers have been broadsided by disappointing guidance from Micron (MU 19.56, -4.46). The stock has tumbled 18.6% to levels last seen in late November 2013. In addition to providing uninspiring guidance, the company reported below-consensus earnings and revenue. As a result, the broader PHLX Semiconductor Index trades lower by 2.7%. For its part, the technology sector is down 1.0%.

Elsewhere, another high-beta group-biotechnology-has pressured the Nasdaq and the health care sector (-0.3%). The iShares Nasdaq Biotechnology ETF (IBB 370.60, -5.24) trades lower by 1.4%.

The weakness in those two areas has pressured the Nasdaq Composite to fresh lows going into the afternoon while the S&P 500 continues resisting the pressure thanks to gains in heavily-weighted sectors like financials (+0.3%), consumer discretionary (+0.3%), and industrials (+0.2%).

The consumer discretionary sector has been underpinned by apparel retailers after Finish Line (FINL 28.31, +1.31) and Dow component Nike (NKE 109.42, +4.20) reported better than expected results. The two names have gained 4.9% and 4.0%, respectively.

Also of note, selling in the Treasury market has dropped the 10-yr note to the bottom of its recent range while the 30-yr bond has notched fresh cycle lows. The 10-yr yield is higher by seven basis points at 2.47% while the 30-yr yield has climbed eight basis points to 3.23%.

Today's economic data was limited to the final reading of the Michigan Sentiment Index for June, which was revised up to 96.1 from a preliminary reading of 94.6 while the Briefing.com consensus expected no change. That was up from a reading of 90.7 in May and was the best reading since hitting 98.1 in January.

12:30 pm: [BRIEFING.COM] Range-bound action continues with the S&P 500 (+0.1%) and Nasdaq Composite (-0.5%) trading near the lower end of their trading ranges.

Most notably, the technology sector (-0.7%) trades at its lowest level of the day, which is likely to become an issue for the broader market if the top-weighted group extends its losses during afternoon action. Meanwhile, financials (+0.5%), consumer discretionary (+0.5%), and industrials (+0.4%) provide off-setting influence.

Elsewhere, Treasuries have retreated to new lows with the 10-yr yield now up eight basis points at 2.48%.
Related Quotes

12:00 pm: [BRIEFING.COM] The S&P 500 (+0.1%) continues hovering just above its flat line while the Nasdaq (-0.5%) is nearing its session low. Meanwhile, the Dow (+0.4%) has inched away from its session high.

In our previous update, we mentioned that the health care sector (-0.1%) was staying out of the red despite weakness in biotechnology, but the sector has now been dragged into negative territory.

Elsewhere, the technology sector (-0.6%) remains the big laggard while relative strength among financials (+0.4%), consumer discretionary (+0.5%), and industrials (+0.3%) has kept the benchmark index near its flat line.

11:30 am: [BRIEFING.COM] Not much change in the market with the S&P 500 (-0.2%) hanging onto a slim gain while weakness among high-beta chipmaker names has pressured the technology sector (-0.4%) and the Nasdaq Composite (-0.3%).

To be sure, biotechnology has also done some damage to the Nasdaq, evidenced by a 0.8% decline in iShares Nasdaq Biotechnology ETF (IBB 372.92, -2.92). Interestingly, the health care sector (+0.1%) has been able to resist the weakness in biotechnology thanks to gains among hospital names with the likes of Tenet Healthcare (THC 57.68, +1.47) and HCA (HCA 92.24, +1.52) sporting respective gains of 2.5% and 1.7%.

Sector standing has not changed much with four groups-energy (-0.2%), technology (-0.4%), materials (-0.1%), and telecom services (-0.4%)-trading in the red.

11:00 am: [BRIEFING.COM] Equity indices continue trading in mixed fashion with the Dow (+0.5%) holding a solid gain while the Nasdaq Composite (-0.5%) remains in negative territory. Meanwhile, the S&P 500 (+0.1%) essentially splits the difference.

The Nasdaq has been trapped below its flat line as high-beta chipmakers continue showing weakness after Micron (MU 19.64, -4.38) reported disappointing results. That being said, it is the company's uninspiring guidance for the second half of 2015 that has pressured the PHLX Semiconductor Index, which is lower by 1.5%.

Technology (-0.6%) notwithstanding, energy (-0.3%) and telecom services (-0.7%) trade with losses while the remaining seven sectors display modest gains, which explains the slight uptick in the S&P 500.

For its part, the Dow has been boosted by a 3.9% gain in shares of Nike (NKE 109.33, +4.11) after the company delivered a strong earnings report. Including Nike, 21 of 30 Dow components trade with gains at this juncture.

10:35 am: [BRIEFING.COM]

Energy is trading broadly down this morning, with WTI crude, nat gas, RBOB and heating oil futures all trading in the red.
A strengthening dollar has been exacerbating early weakness in the commodities, as crude's modest negative range also reflects market concern toward Middle-East driven over-supply. Nat gas is retreating as steadily as well.
August WTI is now -1.1% to $59.03/barrel while August natural gas is currently -2.3% to $2.80/MMBtu
The dollar traded flat overnight, but rallied in early trade ahead of Michigan US Consumer Sentiment data.
On release of the data, viewed as economically bullish, the dollar extended gains and is continuing to put selling pressure on commodities in most recent trade
The index is now up 0.2% to 95.34
Precious metals are trading negative on pressure from the dollar, with August gold -0.1% to $1171.00/oz and July silver down 0.5% to $15.74
July copper now stands at +0.8% to $2.64/lb
Wheat futures are surging this morning, now up over 4%, due to weather and on lower production forecasts.

10:00 am: [BRIEFING.COM] The major averages have charged higher off their opening lows with S&P 500 now up 0.2%.

Just released, the University of Michigan Consumer Sentiment report for June was revised up to 96.1 from 94.6 while the Briefing.com consensus expected the reading to hold at 94.6.

9:45 am: [BRIEFING.COM] The major averages began the day just north of their flat lines, but the S&P 500 and Nasdaq (-0.3%) have turned negative amid early weakness in the technology sector (-0.4%).

As expected, high-beta chipmakers have been hit with early selling pressure after Micron (MU 20.11, -3.91) reported disappointing results. The stock has tumbled 16.3% in the early going while the PHLX Semiconductor Index is lower by 1.4%.

Outside of technology, energy (-0.5%) and health care (-0.1%) also trade in negative territory while financials (+0.2%), consumer discretionary (+0.3%), and industrials (+0.1%) outperform.

The final reading of the Michigan Sentiment Survey for June will be released at 10:00 ET (Briefing.com consensus 94.6).

9:11 am: [BRIEFING.COM] S&P futures vs fair value: +4.60. Nasdaq futures vs fair value: +0.60. The stock market is on track for a modestly higher open as futures on the S&P 500 trade five points above fair value. Index futures held slim losses throughout the night, but S&P futures were able to turn positive around 7:00 ET. Since then, the futures market has respected a narrow range.

Overnight, China's Shanghai Composite plunged 7.4% amid wholesale deleveraging to widen its weekly decline to 18.9% after enjoying a parabolic rise over the past four months. Meanwhile in Europe, Greece is set to enter the weekend without any new progress on the debt deal front. At this juncture, Greek representatives have very little leverage considering the country is scheduled to make a debt payment to the International Monetary Fund on Tuesday.

Despite the continued uncertainty, the market remains hopeful that a deal will be secured in the eleventh hour. U.S. Treasuries hover near their lows with the 10-yr yield up six basis points at 2.46%.

On the corporate front, chipmakers are likely to struggle after Micron (MU 20.44, -3.58) reported disappointing results and issued guidance that failed to live up to analyst expectations. Shares of MU are indicated to open lower by 14.9%.

8:58 am: [BRIEFING.COM] S&P futures vs fair value: +4.20. Nasdaq futures vs fair value: +1.20. The S&P 500 futures trade four points above fair value.

Markets in the Asia-Pacific region ended mostly lower on Friday, having been pulled down in sympathy with the rout in the Shanghai Composite, which plummeted 7.4% on no specific news. The sharp decline there was generally attributed to investor skittishness and deleveraging activity following the parabolic rise of the Chinese stock market.

In economic data:
Japan's May Household Spending +2.4% month-over-month (expected +2.2%; prior -5.5%); +4.8% year-over-year (expected +3.4%; prior -1.3%), May National CPI +0.5% year-over-year (expected +0.4%; prior +0.6%), May National Core CPI +0.1% year-over-year (expected 0.0%; prior +0.3%), and May Unemployment Rate 3.3% (expected 3.3%; prior 3.3%)
Singapore's May Industrial Production +2.4% month-over-month (expected +1.5%; prior -5.8%); -2.3% year-over-year (expected -2.1%; prior -8.7%)

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Japan's Nikkei declined 0.3% in spite of some encouraging household spending data. The energy (-2.7%), communications (-1.0%), utilities (-1.0%), and industrial (-0.8%) sectors were the weakest areas. Showa Shell Sekiyu (-5.0%), Toyobo (-4.8%), and Yamato Holdings (-3.6%) led declining issues. Shinsei Bank (+4.1%) was the best-performing stock. Out of the 225 index members, 70 ended higher, 146 finished lower, and 9 were unchanged. For the week, the Nikkei increased 2.6%.
Hong Kong's Hang Seng declined 1.8%, trading in sympathy with the beating mainland shares took. Broad-based losses were paced by the energy (-2.2%), consumer cyclical (-1.8%), and financial (-1.7%) sectors. The biggest laggards were China Resources Power Holdings (-5.1%), China Unicom Hong Kong (-4.9%), and Tingyi Cayman Islands Holdings (-4.1%). Lenovo Group (0.0%), which finished unchanged, was the only stock that didn't suffer a loss. Out of the 50 index members, 0 ended higher, 49 finished lower, and 1 was unchanged. For the week, the Hang Seng declined 0.4%.
China's Shanghai Composite plummeted 7.4%, experiencing its biggest one-day loss in five months. The sharp decline came on a day that Guotai Junan Securities, the country's third most profitable brokerage firm, soared 44% in its debut as a publicly-traded company. Reports attributed the sell-off to deleveraging of margin accounts, worries about excess supply from new share listings, and momentum cutting the other way for weak-handed holders of stocks. For the week, the Shanghai Composite declined 6.4%. Over the last two weeks, the Shanghai Composite has dropped 18.8%.


Major European indices trade in mixed fashion with UK's FTSE (-0.5%) trailing the region while France's CAC (+0.4%) outperforms. Recent reports from Handelsblatt indicate European creditors have offered Greece EUR15.50 billion in bailout funds over the next five months if Greek representatives can agree to the requested reforms

Participants received several data points:
Eurozone May Private Sector Loans +0.5% year-over-year (expected 0.4%; prior 0.0%) while May M3 Money Supply +5.0% year-over-year (consensus 5.4%; last 5.3%)
Germany's May Import Price Index -0.2% month-over-month (expected 0.1%; prior 0.6%); -0.8% year-over-year (expected -0.4%; last -0.6%)
France's Consumer Confidence held at 94 (expected 93)
Italy's June Business Confidence rose to 103.9 from 103.4 (consensus 103.8) while Consumer Confidence improved to 109.5 from 106.0 (expected 105.7)

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UK's FTSE remains lower by 0.5% after climbing off its worst level of the session. Consumer names have fueled the rebound with WM Morrison Supermarkets, Tesco, and Sainsbury up between 1.5% and 3.2%. On the downside, miners and industrials lag with Anglo American, BHP Billiton, Glencore Xstrata, BAE Systems, Weir Group, and Rolls-Royce showing losses between 1.1% and 1.5%.
Germany's DAX trades down 0.3% with heavyweights Bayer, Merck, and Siemens down between 0.7% and 1.1%. On the upside, K+S has soared 29.3% amid reports the company may be targeted by Potash.
France's CAC is higher by 0.4% with financials BNP Paribas and Societe Generale both up near 0.8%. Industrials have also shown strength with Peugeot, Renault, and Legrand up between 0.5% and 0.7%.

8:25 am: [BRIEFING.COM] S&P futures vs fair value: +1.70. Nasdaq futures vs fair value: -2.10. U.S. equity futures remain near their flat lines with S&P 500 futures hovering just above fair value.

Overnight, China's Shanghai Composite plummeted 7.4% after diving 3.5% on Thursday. The sharp plunge stood out considering there was no news to account for the decline. Instead, a set of factors like valuation concerns, widespread deleveraging, and panic selling by weak-handed investors who recently stepped into the fray created a recipe for a daylong slide.

That being said, today's decline in the Shanghai Composite sent the index back to levels last seen in early May.

7:57 am: [BRIEFING.COM] S&P futures vs fair value: +4.20. Nasdaq futures vs fair value: +7.10. U.S. equity futures trade near their pre-market highs amid cautious action overseas. The S&P 500 futures hover four points above fair value after climbing off their overnight lows during the past 90 minutes.

The cautious posture observed overseas comes as Greece is set to enter the weekend without a deal with its creditors. According to regional officials, a deal must be secured on Monday in order for Greece to make its debt payment to the International Monetary Fund on Tuesday.

U.S. Treasuries hold slim losses with the 10-yr yield up two basis points at 2.42%.

Today's economic data will be limited to the final reading of the Michigan Sentiment Survey for June, which will be released at 10:00 ET (Briefing.com consensus 94.6).

In U.S. corporate news of note:

Finish Line (FINL 28.20, +1.20): +4.4% after beating estimates and reaffirming its guidance.
Micron (MU 20.65, -3.37): -14.0% after missing earnings/revenue estimates and issuing mediocre guidance.
Nike (NKE 108.82, +3.60): +3.4% after reporting better than expected results and global future orders.

Reviewing overnight developments:

Asian markets ended lower. China's Shanghai Composite -7.4%, Hong Kong's Hang Seng -1.8%, and Japan's Nikkei -0.3%
In economic data:
Japan's May Household Spending +2.4% month-over-month (expected +2.2%; prior -5.5%); +4.8% year-over-year (expected +3.4%; prior -1.3%), May National CPI +0.5% year-over-year (expected +0.4%; prior +0.6%), May National Core CPI +0.1% year-over-year (expected 0.0%; prior +0.3%), and May Unemployment Rate 3.3% (expected 3.3%; prior 3.3%)
Singapore's May Industrial Production +2.4% month-over-month (expected +1.5%; prior -5.8%); -2.3% year-over-year (expected -2.1%; prior -8.7%)
In news:
China's Shanghai Composite plunged amid wholesale deleveraging to widen its weekly decline to 18.9% after enjoying a parabolic rise over the past four months

Major European indices trade in mixed fashion. UK's FTSE -0.6%, France's CAC +0.4%, and Germany's DAX is flat. Elsewhere, Spain's IBEX +0.4% and Italy's MIB is flat
Participants received several data points:
Eurozone May Private Sector Loans +0.5% year-over-year (expected 0.4%; prior 0.0%) while May M3 Money Supply +5.0% year-over-year (consensus 5.4%; last 5.3%)
Germany's May Import Price Index -0.2% month-over-month (expected 0.1%; prior 0.6%); -0.8% year-over-year (expected -0.4%; last -0.6%)
France's Consumer Confidence held at 94 (expected 93)
Italy's June Business Confidence rose to 103.9 from 103.4 (consensus 103.8) while Consumer Confidence improved to 109.5 from 106.0 (expected 105.7)
Among news of note:
Recent reports from Handelsblatt indicate European creditors have offered Greece EUR15.50 billion in bailout funds over the next five months if Greek representatives can agree to the requested reforms

5:48 am: [BRIEFING.COM] S&P futures vs fair value: -1.40. Nasdaq futures vs fair value: -3.10.

5:48 am: [BRIEFING.COM] Nikkei...20706.15...-65.30...-0.30%. Hang Seng...26663.87...-481.90...-1.80%.

5:48 am: [BRIEFING.COM] FTSE...6744.04...-63.70...-0.90%. DAX...11427.28...-45.90...-0.40%.

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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