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 Post subject: July 17th Friday Trade Results - Profit $250.00
PostPosted: Fri Jul 17, 2015 5:21 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
Quote:
A tough trading day that concludes a tough trading week due to the record drop in the number of WRB Hidden GAP intervals and the volatility of the VIX in a 5 days trading span...blame it on Greece and China fiasco. I usually follow the VIX to removes some doubts whenever I see something unusual in the number of WRB Hidden GAP intervals. Also, the price action worsen when the range in the Emini futures tighten along with the Eminis often not being insync with each other...latter most likely due to Google (GOOG) on the Nasdaq...often resulting in Emini NQ going in one direction while the others going in another direction often throughout the trading day. As a result, on trading days like this...position size management becomes very important. Today I reduce the number of intuition trading and took more trades via the Volatility Trading Report (VTR) trade signal strategies. Yet, the error I made today was to stick with Emini ES futures when I knew it became problematic to trade. Thus, I should have been trading Emini TF futures or Crude Oil CL futures earlier in the trading day. Simply, position size management was a key today and trading instrument selection was another key...I got one of the key variables correct today (position size management).

Price Action Trade Performance for Today: Emini TF ($TF_F) futures @ $0.00 dollars or +0.00 points, Emini ES ($ES_F) futures @ $250.00 dollars or +5.00 points, Light Crude Oil CL ($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 @ $250.00 dollars

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

Trade Log: All of my trades were posted real-time in the timestamp ##TheStrategyLab 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=145&t=2125

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=267&t=2814 contains brief information about trading plan, market context, brokers, trading time frames, position size management and other discussions.

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

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


4:10 pm: [BRIEFING.COM] The major averages finished an upbeat week on a mixed note with the Nasdaq Composite (+0.9%) posting a solid gain while the Dow (-0.2%) and S&P 500 (+0.1%) underperformed throughout the day. For the week, the Nasdaq spiked 4.3% while the Dow and S&P 500 climbed 1.8% and 2.4%, respectively.

Equity indices diverged at the start with the Nasdaq Composite receiving a boost from Google (GOOGL 699.62, +97.84) after the index heavyweight reported better than expected earnings. The stock soared 16.3% to a new record high, lifting the Nasdaq Composite to a fresh record close of its own (5,210.14). Furthermore, Google underpinned the technology sector (+1.8%) which was the only group that spent the entire day in positive territory.

Meanwhile, many other technology components struggled with high-beta chipmakers showing relative weakness throughout the day. The PHLX Semiconductor Index was down as much as 1.0%, but narrowed its loss to 0.2% by the close. For the week, the chipmaker index added 1.2% while the technology sector spiked 5.3%.

Elsewhere among cyclical sectors, consumer discretionary (-0.2%) and financials (-0.2%) lagged throughout the day, which kept the S&P 500 below its flat line into the afternoon. Similarly, the energy sector (-1.1%) spent the day behind other groups as crude oil marked a new low for the week ($50.16/bbl) before erasing its loss by the pit close to end at $50.88/bbl.

Staying on the growth-sensitive side, the industrial sector (unch) slipped behind the S&P 500 during afternoon action after several sector components reported earnings. Transport stocks outperformed with Kansas City Southern (KSU 98.60, +6.05) spiking 6.5% after reporting a one-cent beat while JB Hunt (JBHT 85.69, -0.10) shed 0.1% after reporting a two-cent miss. For its part, the broader Dow Jones Transportation Average gained 0.7% to extend its weekly advance to 1.1%.

Moving to large cap industrial components, General Electric (GE 27.24, +0.20) and Honeywell (HON 105.54, +1.97) registered respective gains of 0.7% and 1.9% after the former reported in-line results while the latter beat estimates; however, their strength could not offset losses among the likes of Boeing (BA 146.84, -1.65), Caterpillar (CAT 83.16, -0.60), and Deere (DE 96.96, -0.37).

Things did not look much better on the countercyclical side where the utilities sector lost 1.1% while consumer staples (-0.1%), health care (-0.2%), and telecom services (-0.3%) registered slimmer losses.

Treasuries held modest gains throughout the day, ending near the middle of their trading ranges with the 10-yr yield lower by a basis point at 2.34%.

Today's participation was ahead of average as options expiration led to increased activity with more than 850 million shares changing hands at the NYSE floor.

Economic data included CPI, Housing Starts/Building Permits, and Michigan Sentiment:
Related Stories

InPlay from Briefing.com Briefing.com
What are the most important equity market indexes? Investopedia
US STOCKS-Wall St ends up on Greek hopes ahead of debt deadline Reuters
Nasdaq ends at record; U.S. stocks post solid weekly gains MarketWatch
U.S. Stocks Rise as Greek Uncertainty Ebbs; Nasdaq Closes at Record High The Wall Street Journal

The CPI increased 0.3% in June after a 0.4% increase in May while the Briefing.com consensus expected an increase of 0.3%
As expected, energy costs continued their upward move with prices rising 1.7% in June after a 4.3% increase in May
Gasoline prices made up the bulk of the increase, rising 3.4% in June after a 10.4% increase in May
Excluding food and energy, core CPI increased 0.2% in June after a 0.1% increase in May while the consensus expected an increase of 0.2%
Housing starts increased 9.8% in June from an upwardly revised 1.069 million (from 1.036 million) in May to 1.174 million while the Briefing.com consensus expected an increase to 1.120 million
At first glance, the jump in starts looks impressive, but the entire increase came from the volatile multifamily construction sector
Multifamily construction increased 29.4% to 489,000 in June from 378,000 in May, which was the highest level since 501,000 units were started in April 1988
The University of Michigan's Consumer Sentiment Index declined to 93.3 in the preliminary July reading from 96.5 in June while the Briefing.com consensus expected a decrease to 96.1
Consumer sentiment typically follows trends in gasoline costs, stock market movements, employment, and media reports
In this case, dire economic reports about Greece and the eurozone and some volatility in the equity market likely offset recent improvements in gasoline prices and employment conditions

Investors will not receive any economic data on Monday or Tuesday.

Nasdaq Composite +9.9% YTD
Russell 2000 +5.2% YTD
S&P 500 +3.2% YTD
Dow Jones Industrial Average +1.5% YTD

Week in Review: Nasdaq Sets New Record High

The stock market began the trading week on an upbeat note with the S&P 500 registering the bulk of its 23-point gain shortly after the opening bell. The benchmark index padded that advance during the final hour, settling just below its 50-day moving average (2,100). Equity indices spiked at the start after lengthy weekend negotiations between Greek representatives and eurozone officials produced a framework for the third rescue package for Greece. The agreement, which includes EUR25 billion in bank recapitalization funds, was cheered by global equity markets with risk assets surging while outflows from the Treasury market weighed on the 10-yr note, sending its yield higher by three basis points to 2.43% after testing the 2.47% level in the early morning. All ten sectors ended in the green with five groups adding 1.0% or more. Heavily-weighted sectors fueled the advance with the technology sector (+1.6%) holding the lead throughout the session.

The major average registered their fourth consecutive advance on Tuesday with the S&P 500 climbing 0.5%. The benchmark index reclaimed its 50-day moving average (2,100) at the start of the session while the tech-heavy Nasdaq Composite (+0.7%) outperformed throughout the trading day. Equity indices began near their flat lines after overnight reports from Vienna revealed that P5+1 negotiators agreed to a nuclear deal with Iranian representatives. The news had little impact on the market, but crude oil was down about 2.0% overnight amid expectations that global oil supplies will increase once Iran begins selling its oil on the open market. However, an intraday rebound resulted in crude oil climbing 1.7% to $53.06/bbl. Accordingly, the energy sector (+0.8%) climbed alongside crude oil to end the day among the leaders, while only the health care sector (+1.0%) had a better showing. Biotechnology led the sector higher with iShares Nasdaq Biotechnology ETF (IBB 387.94, +8.79) spiking 2.3%, which contributed to the relative strength in the Nasdaq.

The key indices snapped their four-day win streak on Wednesday as the market slipped into the red during afternoon action. The S&P 500 shed 0.1% to narrow its weekly gain to 1.5%. Equities started the day near their flat lines, seeing little reaction to a busy overnight session that featured the release of China's Q2 GDP (+7.0% year-over-year; consensus 6.9%) and news that the Bank of Japan lowered its GDP forecast for the fiscal year to 1.7% from 2.0%. Stocks climbed out of the gate, but the S&P 500 could not extend too far above its flat line as most sectors displayed early losses; however, relative strength in financials (+0.8%), health care (+0.1%), and technology (+0.1%) kept the market in positive territory into the afternoon. The financial sector held the lead throughout the session thanks to support from three large components. Specifically, Bank of America (BAC 17.68, +0.55) PNC (PNC 98.32, +0.82), and U.S. Bancorp (USB 45.53, +1.65) gained between 0.8% and 3.8% after reporting earnings. Bank of America and PNC reported better than expected results while U.S. Bancorp's report was in-line with estimates.

The stock market finished Thursday on a higher note with the Nasdaq Composite (+1.2%) settling at a new record high. Meanwhile, the S&P 500 (+0.8%) and the Dow Jones Industrial Average (+0.4%) ended the day closer to their flat lines. Equity indices spiked at the start, responding to overnight strength in the futures market. Shortly after Wednesday's close, Intel (INTC 29.90, +0.21) and Netflix (NFLX 115.81, +17.68) reported better than expected results, which led to a surge in Nasdaq futures. Earnings notwithstanding, Nasdaq and S&P 500 futures received a second boost after the Greek parliament voted 229-64-6 in favor of austerity measures that will allow bailout negotiations to continue with the country expected to receive EUR86 billion in rescue funds. Furthermore, the European Central Bank, which held a policy meeting on Thursday, raised the country's allowance to Emergency Liquidity Assistance by EUR900 million, which will pave the way for Greek banks to open as soon as Monday.

3:10 pm: [BRIEFING.COM]

The dollar index finished positive on the session, extending gains made this morning on positive US data.
The In-line inflation data and positive housing metrics increased market sentiment toward a prospective rate hike this year, which gave strength to the dollar and weighed heavily on on precious metals and copper throughout the session. The index is now +0.2% to 97.85
Crude traded moderately negative for most of today, as over-supply sentiments were bolstered by the week's building inventory data and continued Iranian supply uncertainty
WTI rallied into the close however, erasing losses that it held for most of the day, to close -0.1% to $50.88/barrel
Nat gas traded in a narrow range around the unchanged mark, failing to keep catch significant momentum on either Thursday's supply data or forecasts for warmer nat. weather
Nat gas closed at -0.1% to $2.87/MMBtu
Precious metals were weak all day, seeing no easing of dollar pressure; August gold closed -1% lower at $1131.90/oz and September silver ended -0.9% to $14.85/oz
Copper closed at -1.2% to $2.49/lb

2:55 pm: [BRIEFING.COM] The S&P 500 trades flat with one hour remaining in the session. The benchmark index has returned to its unchanged level after spending the bulk of the session in the red.

Although the S&P 500 has inched back into the green, eight sectors continue holding losses between 0.1% (consumer staples) and 1.0% (utilities) while industrials (unch) trade flat and the technology sector (+1.6%) remains well ahead of other groups.

Elsewhere, the Nasdaq Composite (+0.8%) has marked a new session high for the day despite negative market breadth. To that latter point, there are nearly two Nasdaq components trading in the red for each advancer.

2:25 pm: [BRIEFING.COM] Quiet afternoon action continues with the S&P 500 (unch) making a run at its flat line. The benchmark index began the day with a slim gain, but was quick to slip into the red, where it has traded since the early going.

Nine sectors are showing losses for the day, but only two groups are on track to end the week in negative territory. The energy sector is lower by 1.0% today and down 1.1% for the week while the materials sector is down 0.7% today and off 0.2% since last Friday.

On the flip side, eight groups are tracking weekly gains between 1.1% (utilities) and 5.0% (technology) while the S&P 500 is on course to add 2.3% for the week.

Interestingly, this week's equity rally has coincided with strength in the bond market that has lowered the benchmark 10-yr yield eight basis points to 2.34%.

1:55 pm: [BRIEFING.COM] Equity indices remain near their recent levels.

Demand for rentals fuel housing construction in June.

Housing starts increased 9.8% in June from an upwardly revised 1.069 mln (from 1.036 mln) in May to 1.174 mln. The Briefing.com Consensus expected housing starts to increase to 1.120 mln.

At first glance, the jump in starts looks impressive. Construction levels nearly recovered everything that was lost after rising to 1.190 mln in April, which was the most starts since November 2007.

However, the entire increase in starts in June came from the volatile multifamily construction sector. Single-family housing starts declined 0.9% to 685,000 from 691,000 in May. With the exception of a 6.8% gain in the South, single-family starts declined in every other geographic region.

Multifamily construction increased 29.4% to 489,000 in June from 378,000 in May. That was the most new multifamily construction since 501,000 units were started in April 1988.

Given such a historic high in a volatile sector, a substantial, but natural, pullback in housing will likely occur in July.

1:30 pm: [BRIEFING.COM] The major indices are effectively unchanged since our last update as the Nasdaq continues to heavily outperform the other main U.S. exchanges.

A look inside the Dow Jones Industrial Average shows that Intel (INTC 29.32, -0.58), Chevron (CVX 93.21, -1.27), and Boeing (BA 146.73, -1.76) are underperforming. Chevron is under pressure amid general weakness in the energy sector, the worst performing sector on the day, as WTI crude oil drops 0.75%, nearing $50/bbl. Boeing is in negative territory after announcing this morning that it will recognize a $536 mln after-tax charge in its Q2 results due to higher estimated engineering and manufacturing costs to complete development, certification and initial production in its KC-46 aerial refueling tanker program. Boeing said that it would update its 2015 EPS guidance during its earnings report next week, but that its 2015 cash and revenue guidance remained unaffected.

Conversely, General Electric (GE 27.25, +0.21) is the best-performing Dow component after reporting its Q2 results. In the report, the company detailed that industrial operating profit grew 5%. GE also issued in-line FY15 EPS guidance and said it remains on track in its plans to exit GE Capital and close $100 bln in dispositions this year.

Despite today's decline in the DJIA, it is still up 1.7% for the week

12:55 pm: [BRIEFING.COM] The major averages trade in mixed fashion at midday with the Nasdaq Composite (+0.6%) trading at a new record level while the S&P 500 (-0.1%) has found resistance near its record high (2,134.72) that was registered in May.

Last evening, Google (GOOGL 696.89, +95.11) reported better than expected earnings, which set a fire under the shares of the tech heavyweight. As a result, the stock has surged 15.8% to a new record high, giving a boost to the technology sector (+1.3%) and the Nasdaq Composite.

It is worth pointing out that while Google is a clear standout, other tech names trade in mixed fashion. For instance, high-beta chipmakers display broad losses with the PHLX Semiconductor Index trading lower by 0.7%.

The technology sector is the only group trading in the green at this juncture while the other nine sectors display losses. The energy sector (-1.0%) is the weakest performer amid a 0.5% decline in crude oil, which trades at $50.64/bbl after setting a new low for the week. Similarly, the materials sector (-1.0%) trades at the bottom of today's leaderboard, which puts both commodity-related sectors on track to register weekly losses. The energy sector has given up 1.1% since last Friday while the materials sector is down 0.5% for the week.

Elsewhere, heavily-weighted financials (-0.6%), health care (-0.4%), and consumer discretionary (-0.5%) also lag while the industrial sector (unch) has spent the first half near its flat line amid gains in transport stocks. Kansas City Southern (KSU 98.49, +5.94) has spiked 6.4% after reporting a one-cent beat while JB Hunt (JBHT 85.47, +0.68) trades up 0.8% despite reporting a two-cent miss. For its part, the broader Dow Jones Transportation Average has climbed 0.8%.

Staying in the industrial sector, General Electric (GE 27.24, +0.20) and Honeywell (HON 105.46, +1.89) hold respective gains of 0.8% and 1.8% after the former reported in-line results while the latter beat estimates; however, their strength has not been able to offset losses among the likes of Boeing (BA 146.66, -1.83), Caterpillar (CAT 83.00, -0.76), and Deere (DE 96.70, -0.63).

Treasuries have traded inside narrow ranges just above their flat lines with the 10-yr yield little changed at 2.35%.

Economic data included CPI, Housing Starts/Building Permits, and Michigan Sentiment:

The CPI increased 0.3% in June after a 0.4% increase in May while the Briefing.com consensus expected an increase of 0.3%
As expected, energy costs continued their upward move with prices rising 1.7% in June after a 4.3% increase in May
Gasoline prices made up the bulk of the increase, rising 3.4% in June after a 10.4% increase in May
Excluding food and energy, core CPI increased 0.2% in June after a 0.1% increase in May while the consensus expected an increase of 0.2%
Housing starts increased 9.8% in June from an upwardly revised 1.069 million (from 1.036 million) in May to 1.174 million while the Briefing.com consensus expected an increase to 1.120 million
At first glance, the jump in starts looks impressive, but the entire increase came from the volatile multifamily construction sector
Multifamily construction increased 29.4% to 489,000 in June from 378,000 in May, which was the highest level since 501,000 units were started in April 1988
The University of Michigan's Consumer Sentiment Index declined to 93.3 in the preliminary July reading from 96.5 in June while the Briefing.com consensus expected a decrease to 96.1
Consumer sentiment typically follows trends in gasoline costs, stock market movements, employment, and media reports
In this case, dire economic reports about Greece and the eurozone and some volatility in the equity market likely offset recent improvements in gasoline prices and employment conditions

12:25 pm: [BRIEFING.COM] Equity indices remain near their recent levels with the S&P 500 (-0.1%) trading just below its flat line while the Dow Jones Industrial Average (-0.4%) underperforms as 24 of its 30 components trade in the red.

Interestingly, today's underperformance in the Dow follows yesterday's session when the price-weighted index also struggled to keep pace with the broader market. Today, four index components show losses larger than 1.0% while General Electric (GE 27.23, +0.19) is the top performer, but that is a small victory considering GE is the least-influential Dow member.

Meanwhile, the largest Dow member by weight-Goldman Sachs (GS 211.10, -0.08)-trades flat while the broader financial sector is lower by 0.5%.
Related Quotes

11:55 am: [BRIEFING.COM] Range-bound action continues with the S&P 500 (-0.1%) drifting below its flat line while the Nasdaq Composite (+0.7%) continues cruising just beneath its session high.

As mentioned earlier, the tech-heavy Nasdaq closed at a record high yesterday and has essentially doubled down on that move today. Meanwhile, the S&P 500 has been unable to clear its record high set in May (2,134.72) with that level acting as resistance.

Back in June, the benchmark index made a run at its May high, but a rejection from that level had the benchmark index back near its 200-day moving average (2,059) just a week later.

Elsewhere, Treasuries remain near their flat lines amid quiet trade with the 10-yr yield at 2.35%.

11:30 am: [BRIEFING.COM] The S&P 500 (-0.1%) remains just below its flat line with the relative strength in the top-weighted technology sector (+1.4%) offsetting losses in most other groups. On the flip side, the energy sector (-1.2%) is the weakest performer amid a 1.3% decline in crude oil, which trades near $50.25/bbl. Given its current level, crude oil trades at a fresh low for the week as it hovers near levels last seen in late March.

Elsewhere, the industrial sector sits near its flat line even though transport stocks display relative strength with the Dow Jones Transportation Average trading higher by 1.3%. Furthermore, heavyweights General Electric (GE 27.19, +0.15) and Honeywell (HON 105.58, +2.01) hold gains after reporting earnings, but their strength has been offset by losses among the likes of Boeing (BA 146.30, -2.19), Caterpillar (CAT 82.91, -0.85), and Deere (DE 96.62, -0.71).

10:55 am: [BRIEFING.COM] Not much change in the market with the Nasdaq Composite (+0.6%) remaining near its opening high while the Dow (-0.4%) and S&P 500 (-0.1%) continue trading in the red.

Despite today's losses that can be attributed to profit taking, the Dow and S&P 500 are still on track to end the week in the green with respective gains of 1.6% and 2.2%. For its part, the Nasdaq has spiked 3.9% this week with the move taking the tech-heavy index to a new record high. Fittingly, the technology sector (+1.4%) is today's top performer and this week's leading group, up 4.9% since last Friday.

Elsewhere, seven other sectors are on track to register weekly gains between 1.2% (utilities) and 2.8% (financials) while energy and materials hold respective weekly losses of 1.4% and 0.4%.

10:25 am: [BRIEFING.COM]

The dollar traded red overnight, before trending upward toward the flatline ahead of the morning's US Inflation and Housing data release.
Upon release of in-line inflation and better-than-expected housing data, the dollar rallied sharply higher, and is currently extending slight gains at +0.1% to 97.81
The stronger dollar is pressing on precious metals and copper mainly so far this session, while offering slight resistance to crude.
Crude was flat overnight, prior to seeing a small selloff in early am trade. Headlines surrounding a meeting between OPEC and Russia, to discuss Iranian supply implications, gave the commodity temporary lift back to the unchanged mark. However, that upward momentum has now failed, and August WTI is down 1.3% to $50.26/barrel
Natural Gas rose to overnight highs near $2.90, on a reversal following yesterday's inventory data, which showed a larger than expected build.
Nat gas has fallen back to flat most recently however, as over-supply concerns have overwhelmed bullish calls for warmer national weather. Nat gas is -0.1% to $2.85/MMBtu
Precious metals are falling on the dollar's strength, holding moderate losses in recent trade: August gold is -1.2% to $1130.40/oz and September silver is -1% to $14.84/oz
September copper is pricing steady at the $2.50 level, down 1% for the session

10:00 am: [BRIEFING.COM] The Nasdaq Composite (+0.4%) continues trading in the green while the S&P 500 (-0.1%) and Dow Jones Industrial Average (-0.3%) remain in the red.

The preliminary reading of the University of Michigan Consumer Sentiment survey for July fell to 93.3 from the reading of 96.1 that was reported in June. The Briefing.com consensus expected an uptick to 96.5.

9:40 am: [BRIEFING.COM] As expected, the Nasdaq Composite (+0.6%) began the day with a solid gain while the S&P 500 (-0.1%) trades near its flat line as eight sectors hover in the red.

The energy sector (-0.8%) is the weakest performer while a few other cyclical sectors like financials (-0.3%) and consumer discretionary (-0.3%) also trail the broader market. On the flip side, the top-weighted technology space (+1.2%) has been boosted by Google (GOOGL 685.16, +83.53), which has surged 13.9% after reporting better than expected earnings.

Elsewhere, Treasuries have returned into negative territory with the 10-yr yield at 2.36% (+1 bp).

9:15 am: [BRIEFING.COM] S&P futures vs fair value: +2.00. Nasdaq futures vs fair value: +35.20. The stock market is on track for a higher open as futures on the S&P 500 trade two points above fair value. However, the Nasdaq is on track to display early strength thanks to better than expected earnings from Google (GOOGL 682.20, +80.42). Last evening the tech heavyweight reported a bottom-line beat on in-line revenue, which sent Nasdaq futures higher by more than 0.5%.

In addition to Google, investors have heard from a few other large companies, including General Electric (GE 27.37, +0.33), Honeywell (HON 104.89, +1.32), and Schlumberger (SLB 84.55, +0.66) with all three reporting in-line or ahead of analyst estimates.

On the economic front, June CPI (+0.3%; Briefing.com consensus 0.3%) and core CPI (+0.2%; consensus 0.2%) matched expectations while Housing Starts (1,174,000; consensus 1,120,000) and Building Permits (1,343,000; consensus 1,150,000) came in ahead of estimates.

One more report remains on the schedule with the preliminary reading of the Michigan Sentiment Index set to be released at 10:00 ET.

Treasuries held slim gains through the night and they remain just above their flat lines with the 10-yr yield at 2.35%.

9:00 am: [BRIEFING.COM] S&P futures vs fair value: +0.70. Nasdaq futures vs fair value: +32.20. The S&P 500 futures trade one point above fair value.

A number of markets in the Asia-Pacific region were closed for holiday on Friday, but the ones that were open ended mostly higher to close out what was an otherwise big week of gains. The Shanghai Composite (+3.5%) led the way on Friday, but the stat of the week was that the Nikkei advanced in all five trading sessions and completely wiped out the entirety of the losses it suffered and then some in the prior week's 3.7% decline.

In economic data:
China's June Foreign Direct Investment +8.0% (prior 10.5%)
South Korea's June PPI 0.0% month-over-month (last 0.1%); -3.6% year-over-year (last -3.5%)
Australia's CB Leading Index +0.2% month-over-month (prior -0.3%)

------

Japan's Nikkei increased 0.3%, completing a clean sweep for the week as it logged a gain in every session. Friday's gain was paced by the financial (+1.3%) sector. Individual standouts included Sumco Corp (+3.5%), Unitika Ltd (+3.5%), and Ajinomoto (+3.1%). Sharp Corp (-3.5%) led all decliners. Out of the 225 index members, 119 ended higher, 96 finished lower, and 10 were unchanged. For the week, the Nikkei advanced 4.4%.
Hong Kong's Hang Seng jumped 1.0%, led by strength in the communications (+1.5%), consumer cyclical (+1.4%), and financial (+1.2%) sectors. Belle International Holdings (+4.7%), Lenovo Group (+3.5%), and Li & Fung (+2.9%) stood atop the list of winners. China Resources Power Holdings (-1.4%) was the only stock to lose more than 1.0%. Out of the 50 index members, 42 ended higher, 5 finished lower, and 3 were unchanged. For the week, the Hang Seng increased 2.1%.
China's Shanghai Composite increased 3.5% after being up as much as 4.5% at its peak for the day, which occurred shortly before the close of trading. Reports attributed a good portion of Friday's strength to the news that brokerages will be allowed to increase their proprietary positions. Friday's advance saved the Composite from having a losing week. With the aforementioned gain, the Shanghai Composite increased 2.0% for the week.

Major European indices trade near their flat lines with France's CAC (+0.2%) showing slight relative strength. German Chancellor Angela Merkel addressed the German parliament ahead of today's passage of the aid package for Greece, saying the goal is to keep the country in the eurozone. Once again, Chancellor Merkel said that a debt cut is not in the cards considering it is not allowed by EU treaties.

Investors did not receive any economic data today

------

In France, the CAC trades up 0.2% with growth-sensitive Total, Michelin, Saint Gobain, and Technip showing gains between 0.3% and 0.9%. On the downside, financials lag with BNP Paribas and Credit Agricole both down near 0.4%.
Germany's DAX is lower by 0.1% with Adidas, Lufthansa, Deutsche Telekom, and BASF down between 0.4% and 0.8%. Meanwhile, exporters trade in mixed fashion with BMW and Volkswagen showing respective gains of 0.4% and 0.8% while Daimler has given up 0.5%.
UK's FTSE has given up 0.2% with homebuilders leading the retreat. Barratt Developments, Taylor Wimpey, and Persimmon are down between 1.1% and 1.4%. On the flip side, consumer names outperform with Tesco, Burberry, and WM Morrison Supermarkets up between 0.8% and 1.1%.

8:35 am: [BRIEFING.COM] S&P futures vs fair value: +1.30. Nasdaq futures vs fair value: +32.30. The S&P 500 futures trade one point above fair value.

Total CPI rose 0.3% (Briefing.com consensus +0.3%) in June while Core CPI, which excludes food and energy, rose 0.2% (Briefing.com consensus +0.2%). On a year-over-year basis, total CPI is up 0.1% and core CPI is up 1.8%.

Housing Starts rose to a seasonally adjusted annualized rate of 1,174,000 units in June. That was up from a revised 1,069,000 units in May (from 1,036,000). The Briefing.com consensus expected starts to increase to 1,120,000 units.

Building permits rose to a seasonally adjusted annualized rate of 1,343,000 in June from a revised 1,250,000 for May (from 1,275,000). The Briefing.com consensus expected permits to come in at 1,150,000.

7:59 am: [BRIEFING.COM] S&P futures vs fair value: +0.70. Nasdaq futures vs fair value: +26.80. U.S. equity futures trade little changed amid mixed action overseas. The S&P 500 futures hover within a point of fair value after maintaining a three-point range overnight. That being said, Nasdaq futures (+0.4%) outperform thanks to better than expected earnings from Google (GOOGL).

Similarly, U.S. Treasuries trade flat with the 10-yr yield at 2.35%.

Investors will receive several data points today with June CPI (Briefing.com consensus 0.3%) and June Housing Starts (consensus 1.12 million)/Building Permits (expected 1.15 million) set to be reported at 8:30 ET while the preliminary reading of the Michigan Sentiment Index for July (consensus 96.5) will be released at 10:00 ET.

In U.S. corporate news of note:

AMD (AMD 1.96, +0.09): +4.8% after reporting results in-line with its warning from last week and guiding Q3 revenue below consensus estimates.
General Electric (GE 27.55, +0.51): +1.9% in reaction to in-line results.
Google (GOOGL 680.00, +78.22): +13.0% after beating bottom-line estimates on in-line revenue.
Honeywell (HON 105.52, +1.95): +1.9% after reporting a two-cent beat.

Reviewing overnight developments:

Asian markets ended higher. Japan's Nikkei +0.3%, Hong Kong's Hang Seng +1.0%, and China's Shanghai Composite +3.5%
In economic data:
China's June Foreign Direct Investment +8.0% (prior 10.5%)
South Korea's June PPI 0.0% month-over-month (last 0.1%); -3.6% year-over-year (last -3.5%)
Australia's CB Leading Index +0.2% month-over-month (prior -0.3%)
In news:
China's Shanghai Composite ended the week higher by 2.1% as gains on Thursday and Friday erased losses registered earlier in the week

Major European indices trade near their flat lines. Germany's DAX -0.3%, UK's FTSE -0.2%, and France's CAC +0.1%. Elsewhere, Italy's MIB -0.1% and Spain's IBEX -0.1%
Investors did not receive any economic data today
Among news of note:
German Chancellor Angela Merkel addressed the German parliament ahead of today's vote on the aid package for Greece, saying the goal is to keep the country in the eurozone. Once again, Chancellor Merkel said that a debt cut is not in the cards considering it is not allowed by EU treaties

5:50 am: [BRIEFING.COM] S&P futures vs fair value: -0.90. Nasdaq futures vs fair value: +25.20.

5:50 am: [BRIEFING.COM] Nikkei...20650.92...+50.80...+0.30%. Hang Seng...25415.27...+252.50...+1.00%.

5:50 am: [BRIEFING.COM] FTSE...6782.81...-13.60...-0.20%. DAX...11673.93...-42.80...-0.40%.

Record VIX Retreat Is Just Another Crash Scare Failing to Happen
http://www.bloomberg.com/news/articles/ ... -to-happen

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Another bout of turbulence in the U.S. stock market has been defused, this time with record speed.

The Chicago Board Options Exchange Volatility Index slid 8.5 percent Thursday to 12.11, extending its five-day decline to 39.4 percent. That’s the biggest decrease in the VIX since it began in 1990, according to data compiled by Bloomberg.

Investors are getting used to the pattern: a crisis arrives, this time from Greece, the market trades erratically for a few weeks, and then volatility plunges as the concern recedes. Half of the 10 biggest five-day declines in VIX history have occurred since the beginning of 2013, according to data compiled by Bloomberg and MKM Partners’ Jim Strugger.

“The VIX flared up and fell quickly because the world got scared, but this too shall pass,” said Sean Heron, who helps oversee $30 billion for Glenmede Trust Co. “People are very quick to sell out of decaying volatility. The sellers feel more brazen and the buyers feel more reluctant.”

The VIX dropped Thursday as the Standard & Poor’s 500 Index climbed 0.8 percent. U.S. stocks have gained 3.6 percent in the past five trading sessions, the most since December. It’s been 3 1/2 years since any decline in the S&P 500 exceeded 10 percent.

Sudden Relief

Equities rallied as Greek lawmakers passed a bailout agreement that keeps the country in the euro for now. The deal provided further relief to traders who had been bracing for Greece’s exit from the euro after months of negotiation between the country and its creditors. The VIX had climbed 65 percent in a little over two weeks, with most of the spike occurring on June 29 as Greece shut banks and imposed capital controls.

Stabilization in Chinese equities after a rout also soothed investors, who sought protection amid concern the weakness could impact U.S. companies with international sales. The Shanghai Stock Exchange Composite Index endured a 32 percent selloff that began last month.

“Though spot VIX did manage to rise above 20 intraday last week, the overall intensity of this event fell short of our expectation,” Strugger, a derivatives strategist at MKM in Stamford, Connecticut, wrote in a note Thursday. “The swiftness of the volatility unwind and rip in the S&P 500 right back toward its all-time high has been notable.”

Before this latest round trip, the VIX’s biggest comparable five-day drop was over two years ago. In January 2013, the gauge lost 39.3 percent, or 8.9 points, over five trading sessions as lawmakers passed a bill averting spending cuts and tax increases known as the fiscal cliff.

Anxious Traders

Investors have rushed into S&P 500 hedges this year at any sign of trouble. Their herd mentality has resulted in bigger-than-normal gains in the VIX, in part because the volatility gauge has spent most of the year hovering around 15, below its historical average of 20.

While options traders have unloaded their protection, large speculators in S&P 500 futures are keeping theirs. In futures tracking the broad-market index, bearish positions outnumber bullish ones by the most in three years, according to data compiled by Bloomberg and the U.S. Commodity Futures Trading Commission.

Contracts on the volatility gauge expiring July 22 ended Thursday at 12.93, 6.8 percent above the VIX’s closing price, according to data compiled by Bloomberg. Contracts expiring in August closed at 14.48, while September futures ended the day at 15.43, the data show.

The VIX dropped 1.3 percent to 11.95 at 4 p.m., closing at the lowest level of the year. The S&P 500 gained 0.1 percent to 2,126.64.

“Clearly, for whatever reason, the market thinks Greece is a non-issue in the near-term,” said Dominic Salvino, a specialist on the CBOE floor for Group One Trading LP. “When the deal reached the table, that’s when volatility started coming in hard.”

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
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