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 Post subject: August 10th Monday Trade Results - Profit $380.00
PostPosted: Tue Aug 11, 2015 6:47 am 
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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)

Attachment:
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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 @ $380.00 dollars or +3.80 points, Emini ES ($ES_F) futures @ $0.00 dollars or +0.00 points, Light Crude Oil CL ($CL_F) futures @ $0.00 dollars or +0.00 points, Gold GC ($GC_F) futures @ $0.00 dollars or +0.00 points and EuroFX 6E ($6E_F) futures @ $0.00 dollars or +0.0000 ticks. Total Profit @ $380.00 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=146&t=2143

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=269&t=2840 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


Dow +241.79 at 17615.17, Nasdaq +58.25 at 5101.79, S&P +26.61 at 2104.18

[BRIEFING.COM] The stock market began the trading week on a sharply higher note with the S&P 500 spiking 1.3% while the Dow (+1.4%) and Nasdaq (+1.2%) bookended the benchmark index.

Equity indices surged out of the gate after the overnight session featured a 4.9% spike in China's Shanghai Composite after below-consensus trade data from China was viewed as an argument in favor of more policy easing. The overnight strength carried over to the European session as regional indices rallied amid reports suggesting Greek officials and eurozone negotiators are nearing a final agreement on a third bailout package for Greece.

Once the opening bell rang on Wall Street, U.S. stocks perked up with the S&P 500 charging above its 50-day (2,096) and 100-day (2,098) moving averages. The benchmark index overtook both those levels during the opening hour, and inched to new highs during afternoon action with nine sectors ending in the green.

Cyclical sectors paced the opening rally and they continued showing relative strength into the afternoon. The industrial sector (+1.9%) was the early leader, thanks to a 19.1% surge in Precision Castparts (PCP 230.93, +37.05) after the company agreed to be acquired by Berkshire Hathaway (BRK.B 143.39, -0.16) for $235/share.

Meanwhile, another cyclical sector—energy (+3.1%)—took the lead during late morning action thanks to an intraday spike in crude oil. The energy component jumped 2.5% to $44.95/bbl with the move partially supported by dollar weakness as the Dollar Index (97.17, -0.40) fell 0.4%.

Elsewhere among cyclical groups, the top-weighted technology sector (+1.6%) settled among the leaders with chipmakers showing notable strength. The PHLX Semiconductor Index soared 2.5% with all but one component ending in the green.

Moving to the countercyclical side, the telecom services sector (+1.8%) settled ahead of the broader market while consumer staples (+0.4%), health care (+0.8%), and utilities (-0.4%) underperformed.

The utilities sector struggled throughout the day as higher Treasury yields made rate-sensitive utility stocks less appealing. The 10-yr note settled just above its low with the benchmark yield higher by seven basis points at 2.24%.

Today's participation was roughly in-line with average as 800 million shares changed hands at the NYSE floor.

Investors did not receive any economic data today, but tomorrow, preliminary Q2 productivity (Briefing.com consensus 1.4%) and unit labor cost (consensus -0.1%) data will be released at 8:30 ET while June Wholesale Inventories will be reported at 10:00 ET.

Nasdaq Composite +7.7% YTD
S&P 500 +2.2% YTD
Russell 2000 +1.4% YTD
Dow Jones Industrial Average -1.2% YTD

3:17 pm - Government Yields Pop on Investors' Higher Risk Appetite
Related Stories

Fed’s Fischer suggests September rate hike not a done deal MarketWatch
Atlanta Fed's Lockhart: Only major weakness would prevent him backing September hike MarketWatch
Happy Ending in Sight According to Atlanta Fed President 24/7 Wall St.
U.S. stocks close lower but up from session lows MarketWatch
Bond Traders Brace for More Turbulence in Short-Term Treasuries Bloomberg

U.S. Treasuries sold off today as equity markets sharply reversed the selling that began with last Wednesday's reversal lower. Long-dated Treasuries (10's and 30's) also touched significant technical targets (their 200-day moving averages) last week that prompted profit-taking. The U.S. Treasury will auction $64 bln of coupon securities over the next three days
Yield Check:
2-yr: unch at 0.73%
5-yr: +4 bps to 1.62%
10-yr: +7 bps to 2.23%
30-yr: +8 bps to 2.90%

News:
The Shanghai Composite rallied 4.92% overnight, its biggest gain in a month
Fed Vice Chair Stanley Fischer appeared in an interview on Bloomberg Television
He said that low inflation in the U.S. continues to be a problem, although part of it is transitory, owing to lower commodity prices
The Fed fund futures market's implied probability of a rate hike at the September 16-17 meeting edged lower today to 52%

Atlanta Fed President Lockhart also spoke publicly, saying that liftoff for rates is near

He noted that if the Fed had a single mandate (just for price stability rather than price stability and full employment), it might be doing even more to get inflation up to its 2% target
The market interpreted his remarks as more dovish than last week's, when he said that he would need to see a "significant deterioration" in economic conditions to vote against a hike
Greece and its official creditors were said to be finalizing the text of a deal on the country's third bailout for 80-90 bln euro

Commodities:
WTI crude: +2.05% to $44.77/bbl.
Gold: +0.72% to $1,102.00/troy oz.
Copper: +2.57% to $2.3925/lb.

Currencies:
EUR/USD: +0.46% to $1.1019
USD/JPY: +0.33% to 124.62

Data Out Tuesday:
Q2 Productivity and Unit Labor Costs - Preliminary (08:30 ET)
June Wholesale Inventories (10:00 ET)

Treasury Auction:

$24 bln 3-year note auction (results at 13:00 ET)

2:10 pm - Dollar and Yen Decline

After touching a 3-month high on Friday, the U.S. Dollar Index fell to a 1-week low today. Both Vice Fed Chair Stanley Fischer and Atlanta Fed President Dennis Lockhart spoke publicly and the market interpreted their remarks as somewhat more dovish than expectations. Lockhart's hawkish remarks last week sent the yield curve flattening
U.S. Dollar Index: -0.39% to 97.17

EUR/USD: +0.50% to $1.1022

Sentix Investor Confidence for the eurozone fell to 18.4 in August from 18.5 July. The market had been expecting a jump
GBP/USD: +0.63% to $1.5592
USD/JPY: +0.29% to 124.58

Japan's current account deficit narrowed to 0.559 tln yen in June from 1.881 tln in May
Bank Lending grew a better-than-expected 2.6% y/y in July versus 2.5% in June
Household Confidence unexpectedly fell to 40.3 in July from 41.7 in June
USD/CHF: -0.01% to 0.9831
USD/CAD: -0.89% to 1.2019
AUD/USD: -0.15% to $0.7407
NZD/USD: -0.13% to $0.6611
USD/RUB: -1.61% to 62.97

Russia's GDP declined 4.6% q/q in Q2, more than expected and more than the 2.2% fall in Q1. The recession is being driven by lower energy prices

1:13 pm -

Treasuries are still down sharply this afternoon as the U.S. Dollar Index makes fresh session lows
Equity indices are pushing up against highs, with the S&P 500 making a new one for the day
Atlanta Fed President Lockhart spoke publicly today and did not significantly move markets. He said:
"The economy has made great gains and is approaching an acceptable normal. Policy should shortly acknowledge this reality."
"Compared to earlier in the year, we know a lot more and can shelve some concerns. We appear to be past the most acute concerns of a spillover from Europe. I have more confidence in the resilience of the economy today compared to even a few months ago."
"[I'm] comfortable that the economy can handle a gradually rising interest-rate environment."
"Fed Chair Janet Yellen has stated she expects conditions to jell, justifying a start to policy normalization sometime later this year. I agree. I think the point of liftoff is close."

Yield Check:

2-yr: unch at 0.73%
5-yr: +5 bps to 1.62%
10-yr: +7 bps to 2.23%
30-yr: +8 bps to 2.90%

12:12 pm - Atlanta Fed President to Speak

Treasuries remain lower heading into the afternoon on Wall Street. Equities are flirting with their highs after a rally that began on Friday afternoon has rallied much faster than most would have predicted. Equity indices are caught between more aggressive bearishness and short-positioning, which creates rallies as it becomes overdone, on the one hand. And deteriorating market internals as more sectors lose their strong technical postures (ie. giving up their 50-day and 200-day MA's)
Atlanta Fed President Dennis Lockhart will speak at 12:25 ET, although his views are unlikely to have developed substantially since last week when he said that a "significant deterioration" in economic conditions would have to materialize for him to oppose a rate hike at the September meeting
The 10-year note and 30-year bond futures are currently making new lows
EUR/USD is brushing up against the $1.1000 level
Yield Check:
2-yr: +1 bp to 0.73%
5-yr: +4 bps to 1.62%
10-yr: +6 bps to 2.23%
30-yr: +7 bps to 2.89%

11:34 am - Some Light Profit Taking in the Greenback: The Dollar Index is sliding back below the 98 level as we see some profit taking. There was no notable economic data this morning but Fed Vice Chair Stanley Fischer did give an interview to Bloomberg TV that caught plenty of attention. The interview was mixed in terms of dove/hawk commentary. And one could easily find material in the comments to support either side. Mr. Fischer noted the strong jobs market but was also quick to point out the weak inflation that continues to persist. He did water this comment down by saying that some of the weakness is transitory given the declines in energy and materials. Overall it did not change the narrative. But the fact that he did not push for a 2015 rate increase like Lockhart and Bullard has some people questioning the September rate decision.

The euro is seeing a boost this morning. The single currency came under early selling as European markets opened for trade. The euro fell from the 1.0980 area to 1.0930 before it saw a bounce and ripped back to recover its losses. The euro is now moving toward session highs as we see dollar weakness and hear whispers about the EU and Greece signing a bailout deal by August 20. There is still plenty of skepticism regarding this but it is enough to push out some shorts.
The pound has seen a steady bid as it is up approx 80 pips over the past seven hours. Sterling has moved back to recovered approx half of its losses following its dovish Interest Rate Day from last Thursday.
The yen continues to test and find support at 125. Economic data from the region continues to look weak which is leading to speculation of further stimulus coming. However a Bank of Japan monthly report did not provide any evidence of another round of easing. 125 will remain the key level for market participants to watch this week.

11:21 am - Tplex Extends Losses
Related Quotes

The Treasury complex remains very weak today, although the 2-year note yield is only up 1 basis point. Longer maturities are seeing higher yields (which move inversely to price) by 4-7 basis points
The major U.S. equity indices are up sharply, with the S&P 500 rallying 1.13% to 2,101.05
The index has held its 2,040-2,140 range for the past 6 months, which is an abnormally long time to be in such a tight range

The U.S. Dollar Index gave back early gains and now stands down 0.07% to 97.49. We are watching the 21-day moving average as short-term support but looking for that level to break

Extraordinary measures for extending the debt ceiling may be exhausted by the end of October, according to Treasury Secretary Jack Lew
Yield Check:

2-yr: +1 bp to 0.73%
5-yr: +4 bps to 1.61%
10-yr: +6 bps to 2.23%
30-yr: +7 bps to 2.89%

10:20 am - Equities Rip Higher

Stocks have taken advantage of some very weak short-term sentiment and bearish positioning at the end of last week to run some shorts out of the market this morning. Treasury prices are declining in sympathy, with the 30-year yield holding above its 200-day moving average after finding it as support on Friday
Atlanta Fed President Lockhart said nothing of consequence in his first public remarks this morning, but he will speak again this afternoon
Fed Vice Chair Stanley Fischer spoke on Bloomberg TV this morning, saying the following:
"Low interest rates were intended to help the economy and that has happened with drop in unemployment."
Inflation is the bigger issue; if just inflation-targeters would probably have to be doing even more.
Every central bank is looking at output and employment.
Rates are running below Taylor Rule during normal times but we are not in normal times.
It is a possibility that low rates are the new normal but we will need to see how events roll out."

Yield Check:

2-yr: unch at 0.73%
5-yr: +4 bps to 1.61%
10-yr: +6 bps to 2.22%
30-yr: +6 bps to 2.88%

9:29 am - 10's and 30's Fall Sharply

10 and 30-year Treasuries are gunning for lows as the major U.S. equity indices are set to open with strong gains
Asian central banks (BoJ and PBoC) have been steady sellers of U.S. Treasuries while commercial banks have been buying, in part due to regulatory requirements
Yield Check:
2-yr: -1 bp to 0.71%
5-yr: +3 bps to 1.60%
10-yr: +5 bps to 2.21%
30-yr: +5 bps to 2.87%

8:46 am - Curve Steepens Further

The 2-year note remains unchanged on the day, but longer-dated Treasuries are losing ground and equities are rallying
Fed Vice Chair Stanley Fischer spoke this morning on Bloomberg TV:
He said that low interest rates were supposed to help the economy and it has worked to lower unemployment
Would like to see more physical investment than financial investment
"Employment has been rising pretty fast"
"It's interest that the problem is not with the employment part of the dual mandate but the inflation part"
"If we were just inflation-targeters, we'd probably have to be doing even more, probably"

Says rates are below Taylor Rule* but we are not in normal times
Says low rates may be new normal but that isn't clear yet
Says Fed being extremely expansionary
Yield Check:

2-yr: unch at 0.72%
5-yr: +2 bps to 1.60%
10-yr: +4 bps to 2.20%
30-yr: +4 bps to 2.86%

8:05 am - Yields Mostly Unchanged, Greek Deal Optimism Rises

Sovereign debt of both core and periphery European countries was little changed this morning, excepting Greece, whose 10-year note yield dropped 20 basis points. The Greek government and its official creditors are said to be finalizing the text of that country's third bailout. The current deadline is August 20th, when Greece owes 3.5 bln euro to the European Central Bank. Even if the bailout is not finalized by that date, there is the possibility of a bridge loan to help Greece make the payment, although the procurement of that loan might have its own complications
Sentix Investor Confidence in the eurozone unexpectedly fell to 18.4 in August from 18.5 in July
Yield Check:
France, 10-yr OAT: +1 bp to 0.98%
Germany, 10-yr Bund: +1 bp to 0.63%
Greece, 10-yr note: -20 bps to 11.34%
Italy, 10-yr BTP: -1 bp to 1.82%
Portugal, 10-yr note: -3 bps to 2.41%
Spain, 10-yr ODE: -1 bp to 1.89%
U.K., 10-yr Gilt: +3 bps to 1.90%

7:23 am - Government Yields Edge Up

U.S. Treasury coupon securities pulled back overnight in a curve-steepening trade. Curve-flattening has been the dominant trend for the yield curve over the past few weeks.
Yield Check:
2-yr: unch at 0.72%
5-yr: +2 bps to 1.59%
10-yr: +3 bps to 2.19%
30-yr: +2 bps to 2.84%

International News:
Despite IMF foot-dragging, Greece and its official creditors are said to be finalizing the text of a third bailout for the crisis-stricken country worth 86 bln euro
Greece has a 3.5 bln euro payment due to the ECB on August 20th

Japan's current account deficit narrowed to 0.559 tln yen in June from 1.881 tln in May

Household Confidence unexpectedly fell to 40.3 in July from 41.7 in June
Bank Lending grew a better-than-expected 2.6% y/y in July versus 2.5% in June

Fed Speakers:
Fed Vice Chair Fischer speaks on Bloomberg TV (FOMC voter) (ongoing)
Atlanta Fed President Lockhart (FOMC voter) (09:00 ET AND 12:25 ET)


S&P Flouts History in Break With Bonds That Often Ends Badly @ http://www.bloomberg.com/news/articles/ ... ends-badly

As far as credit markets are concerned, U.S. stock investors have lost touch with reality.

That’s seen in the extra yield bond investors demand over Treasuries. The spread has expanded by 0.48 percentage point from a year ago, the most since 2012, even as the Standard & Poor’s 500 Index rallied.

While not without precedent, instances when anxiety in bonds didn’t seep into equities are rare. More than 70 percent of the time since 1996, as spreads widened as much as they have since April, the S&P 500 has fallen, with the average decline exceeding 10 percent, data compiled by Bloomberg show.

“This is something that sooner or later is going to impact the stock market,” said Russ Koesterich, global chief investment strategist at New York-based BlackRock Inc., which oversees $4.7 trillion. “Credit market conditions have not been benign and easy as where they were last summer.”

Bearish signals are flashing in a stock market where five years of earnings growth is at risk of ending and two industries account for all this year’s gains. Stocks just slid for the second week in three amid the worst selloff in cable-television and movie companies since the financial crisis.

The S&P 500 rebounded Monday, rising 0.9 percent at 9:40 a.m. in New York.

Credit Stress

Prospects for a Federal Reserve interest-rate increase, the worst commodity rout since 2008 and concern companies have borrowed more than they need have contributed to bond-market stress. Yield premiums on investment-grade debt widened to 1.58 percentage points from 1.10 a year ago, according to Bank of America Merrill Lynch index data.

Stocks have kept going up, with the S&P 500 advancing 9 percent in 12 months. More than that, equity investors have been virtually immune to losses, enjoying a year in which the S&P 500 has posted no retreats of 5 percent or more. That’s only happened three times since 1964.

As investment-grade companies sold a record $135 billion of bonds in July, credit spreads widened for a third month, adding a total of 0.24 percentage point. Since 1996, there have been 41 instances when rate premium expanded by this much, and out of those, stocks fell 29 times, data compiled by Bloomberg show.

On 10 occasions when stocks advanced, credit conditions improved four times over the next 12 months and the S&P 500 extended gains. In the other instances, when bond spreads widened more, stocks suffered and the S&P 500 dropped an average 18 percent.

Stock Buybacks

Stocks haven’t budged this time in part because some of the things that are fraying nerves in credit market are boosting stocks. S&P 500 companies listed buybacks or dividends among the use of proceeds in $58 billion of bond deals in the three months through mid-June, the most on record in data compiled by Bloomberg and Sundial Capital Research Inc.

Since 2009, more than $2 trillion has been spent on share repurchases, helping the S&P 500 triple.

The two industries that have led U.S. equity gains in 2015, health-care and consumer-discretionary, have seen credit spreads expand to the highest level since at least 2012.

Widening spreads aren’t necessarily a reflection of heightened credit risk, said Scott Clemons, the chief investment strategist at Brown Brothers Harriman Private Banking in New York, which oversees $26.8 billion. If yields are going up in anticipation of Fed tightening and not a deteriorating economy, that’s not bad for stocks.

“Because this cycle has been so protracted to the point where monetary policy and economic cycle are out of sync, that’s why you’re seeing the lack of synchronization,” Clemons said.

McDonald’s, Target

McDonald’s Corp. shares have climbed 2.9 percent since saying on May 4 that it would return as much as $9 billion to shareholders this year. S&P lowered its credit rating, citing the potential for rising leverage, and Moody’s Investors Service put its A2 rating on review for a downgrade.

Moody’s also said Target Corp.’s plan to boost share repurchases and dividends is negative for its credit ratings. The retailer’s stock is up 4 percent this year.

“Bondholders are being hurt to the benefit of shareholders,” said Bruce Falbaum, principal at Cohanzick Management in Pleasantville, New York. The firm oversees $1.7 billion and runs a fund whose strategy is to buy shares of companies that use borrowed money for buybacks while betting against the firm’s debt.

“What stops it is if the Federal Reserve raises interest rates and they go up and up to the point where the cost of debt is too high to make economic sense to do it,” he said.

Earnings Risk

One risk in the strategy to fund takeovers and buybacks through low-cost borrowings is that plants and equipment are neglected, harming output.

Productivity of U.S. workers, or employee output per hour, fell by the most in more than two decades over the six months through March, according to data from the Labor Department.

That could restrain earnings, which are already decelerating. Estimated at 0.9 percent this year and 11 percent in 2016 by analysts, S&P 500’s income growth will slow from an annualized rate of 15 percent in the previous six years.

“The money is being used more for financial engineering. It does come out in a wash of productivity,” said Kevin Dachille, an institutional fund manager at Boston-based Eaton Vance Management, which oversees $311 billion. “It may take a while before equity investors start to question earnings that are embedded in the forecast.”

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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