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 Post subject: August 11th Tuesday Trade Results - Profit $3332.50
PostPosted: Tue Aug 11, 2015 10:50 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 @ $270.00 dollars or +2.70 points, Emini ES ($ES_F) futures @ $3062.50 dollars or +61.25 points, Light Crude Oil CL ($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 @ $3332.50 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=2144

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.

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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


4:05 pm: [BRIEFING.COM] Global equity markets retreated on Tuesday as investors responded to the overnight devaluation of China's yuan. Specifically, the People's Bank of China lowered the yuan fix by the largest amount on record, sending the USD/CNY pair higher by 1.9% to 6.3249.

The move invited renewed trepidations about the pace of economic growth in China while also feeding concerns that China's trading partners may feel compelled to respond by weakening their own currencies. For instance, the Japanese yen was in focus during the session amid speculation the Bank of Japan may be forced to step up its easing efforts to support the country's exporters. As a result, the dollar/yen pair climbed 0.4% to 125.07, nearing a 13-year high.

The major European indices lost between 1.1% and 2.7% with the retreat paced by exporter stocks while the S&P settled lower by 1.0% and retraced the bulk of its advance from Monday.

Today's selling sent the benchmark index back below its 50-day (2,096) and 100-day (2,098) moving averages with eight sectors registering losses. To little surprise, cyclical groups paced the slide, but the energy sector (-0.2%) spent the day in a steady rally off its opening low. The sector fought its way back to yesterday's highs even as crude oil plunged 4.2% to $43.08/bbl, settling at a six-year low.

Meanwhile, the other commodity-related sector-materials (-1.9%)-ended at the bottom of the leaderboard with steelmakers showing broad weakness, evidenced by Market Vectors Steel ETF (SLX 27.22, -1.15), which fell 4.1%. On a somewhat related note, copper futures fell 2.6% to $2.338/lbs, erasing the bulk of their gain from yesterday.

Elsewhere among cyclical groups, the technology sector (-1.7%) displayed relative strength at the start, but could not stay ahead of the broader market into the afternoon. That being said, the early outperformance was due to a spike in the shares of Google (GOOGL 690.30, +27.16) after the company announced plans for a new operating structure. As part of the announced change, Google will create a new company called Alphabet, which will replace Google as a publically-traded entity and should make it easier to evaluate different segments of the company's business. Shares of GOOGL settled higher by 4.1% after being up more than 6.0% at the start. As for other tech heavyweights, Apple (AAPL 113.55, -6.17), Intel (INTC 28.99, -0.65), and Microsoft (MSFT 46.41, -0.92) lost between 1.9% and 5.2% as China-related concerns pressured the multinational companies.

On the upside, rate-sensitive telecom services (+0.1%) and utilities (+0.5%) ended in the green, benefitting from strength in the Treasury market that sent the 10-yr yield lower by nine basis points to 2.14%.

Today's participation was roughly in-line with recent averages as more than 830 million shares changed hands at the NYSE floor.

Economic data included Productivity/Labor Cost data and Wholesale Inventories:
Related Stories

InPlay from Briefing.com Briefing.com
Bond Market Update from Briefing.com Briefing.com
Dow falls triple digits on surprise yuan devaluation; Google jumps CNBC
US STOCKS-Nasdaq rebounds but weak results weigh on Dow, S&P Reuters
Stocks sink as S&P 500 notches another losing week Los Angeles Times

Nonfarm productivity increased 1.3% in Q2 2015 after declining an upwardly revised 1.1% (from -3.1%) in the first quarter while the Briefing.com consensus expected an increase of 1.4%
The increase in second quarter productivity ended two consecutive quarterly declines.
Year-over-year, nonfarm productivity increased 0.3%, down from a 0.6% gain in Q1 2015
Unit labor costs increased 0.5% in the second quarter while the consensus expected an increase of 0.1%; however, the reported increase was the smallest rise since a 0.1% increase in Q3 2014
Wholesale inventories increased 0.9% in June after a downwardly revised 0.6% increase (from 0.8%) in May while the Briefing.com consensus expected an increase of 0.3%
Wholesale sales increased 0.1% in June after a 0.2% increase in May while durable sales declined 1.1% in June, which resulted mostly from a 2.8% decline in automotive sales. Nondurable sales increased 1.2% on strong demand for farm products (3.6%) and petroleum (3.7%)
The inventory-to-sales ratio increased to 1.30 in June from 1.29 in May

Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET while the Job Openings and Labor Turnover Survey for June will cross the wires at 10:00 ET. The day's data will be topped off with the 14:00 ET release of the Treasury Budget for July (Briefing.com consensus -$149.00 billion).

Nasdaq Composite +6.4% YTD
S&P 500 +1.2% YTD
Russell 2000 +0.5% YTD
Dow Jones Industrial Average -2.4% YTD

3:35 pm: [BRIEFING.COM]

Commodities saw some broad market weakness today following Chinese Yuan devaluation.
In current trade Oil was the big story today with WTI front-month Sept crude oil falling 4.1% to end floor trading at $43.12/barrel.
Sept nat gas rallied in afternoon trade, closing up 0.4% higher to $2.85/MMBtu
Copper held losses, ending today's session -3% at $2.33/lb.
Sept silver ended near the unchanged mark at $15.29/oz (up 1 cent), while Dec gold rose 0.3% at $1108.10/oz

3:00 pm: [BRIEFING.COM] The S&P 500 trades lower by 1.2% with one hour remaining in the session.

The benchmark index began the trading day with a ten-point loss and continued retreating throughout the morning. The S&P 500 hit its session low around 13:00 ET and has traded in sideways fashion since then with dip-buyers reluctant to test the waters.

Today's decline has erased the bulk of yesterday's advance, leaving the S&P 500 up 0.2% for the week while underperformance in the Nasdaq Composite has the tech-heavy index down 0.3% for the week.

2:30 pm: [BRIEFING.COM] Not much change in the market with red hues dominating stock screens. The S&P 500 trades lower by 1.2% while the Nasdaq Composite (-1.6%) continues showing relative weakness.

Sector standing has not changed much with cyclical groups remaining at the forefront of today's retreat while three of four countercyclical sectors outperform. That leaves the health care sector (-1.2%), which trades essentially in-line with the broader market even though biotechnology lags with iShares Nasdaq Biotechnology ETF (IBB 364.64, -6.79) trading lower by 1.8%.

Despite today's drop, the biotech ETF remains higher by 20.5% for the year while the health care sector is up 9.4% since the end of 2014, but those gains could be in jeopardy if the entire market heads lower from these levels.

1:55 pm: [BRIEFING.COM] The major averages continue drifting near their lowest levels of the day.

Labor productivity ended two consecutive quarterly declines in the second quarter.

Nonfarm productivity increased 1.3% in Q2 2015 after declining an upwardly revised 1.1% (from -3.1%) in the first quarter. The Briefing.com Consensus expected nonfarm productivity to increase 1.4%.

Employers still hold the upper hand during wage negotiations.

Compensation per hour rose 1.8% in the second quarter, topping the 1.1% gain in the first quarter. The second quarter gain, however, was still well below the growth rates from the second half (3.2% and 3.4%) of 2014.

Despite the increase in hourly compensation, workers lost money after adjusting for inflation. Real compensation declined 1.1% in the second quarter after increasing 4.2% in Q1 2015. That was the first decline in real hourly compensation since a 3.1% decline in Q2 2014.

1:35 pm: [BRIEFING.COM] Weakness in the market U.S. indices continues to extend into the late afternoon as stocks sit just above the intra-day lows.

A look inside the Dow Jones Industrial Average shows that Apple (AAPL 114.25, -5.47), Caterpillar (CAT 77.52, -2.64), and Microsoft (MSFT 46.05, -1.28) are underperforming. Apple's price target this morning was lowered at Jefferies. The move of China to devalue its currency appears to have investors souring on all three of these multi-national companies, as they underperform the broad market decline.

Conversely, Verizon (VZ 47.57, +0.34) is the best-performing Dow component amid industry strength in telecoms.

At these levels, the DJIA is perfectly flat for the week, and now down 1.8% in August.

In other developments, the $24 bln 3-year note auction at the top of the hour was met with moderate demand. The offering saw a high yield of 1.013% and a bid-to-cover of 3.34.

12:55 pm: [BRIEFING.COM] The major averages trade near their lows at midday with the Dow Jones Industrial Average (-1.3%) and Nasdaq Composite (-1.3%) trailing the S&P 500 (-1.1%).

Equity indices have faced selling pressure from the start after China devalued the yuan overnight, sending the USD/CNY pair higher by 1.9% to 6.3249. The announcement sparked the largest one-day move in the pair since China ended a dual-currency system in 1994, stirring up concerns about the country's economic growth. Commodities have been broadsided as a result while commodity-related sectors have paced today's retreat in equities with energy (-1.5%), industrials (-1.3%), and materials (-2.1%) trading behind other groups.

The materials sector sits at the bottom of the leaderboard with steelmakers contributing to the weakness as Market Vectors Steel ETF (SLX 27.04, -1.34) trades lower by 4.7%. Meanwhile, the energy sector has retreated alongside crude oil, which has tumbled 4.0% to $43.18/bbl. Including today's decline, the energy sector is now down 9.7% for the quarter.

Moving on, the industrial sector also appears among the laggards with heavy machinery names like Caterpillar (CAT 77.52, -2.64) and Joy Global (JOY 25.25, -1.59) down 3.3% and 5.9%, respectively, as investors respond to concerns about the pace of economic growth in China.

Elsewhere among cyclical sectors, technology (-1.5%) also trades behind the broader market even though one of its top components-Google (GOOGL 687.65, +24.51)-has spiked 3.7% after announcing plans for a new operating structure. As part of the announced change, Google will create a new company called Alphabet, which will replace Google as a publically-traded entity.

Unlike Google, other tech heavyweights like Apple (AAPL 114.97, -4.75), Microsoft (MSFT 46.23, -1.10), and Intel (INTC 29.10, -0.54) hold losses between 1.8% and 3.7%.

On the upside, rate-sensitive telecom services (+0.1%) and utilities (+0.5%) have held modest gains amid a decline in market rates. To that point, the 10-yr note sits just below its high with the benchmark yield down ten basis points at 2.13%.

On a related note, the Dollar Index (97.37, +0.21) holds a modest gain of 0.2% with the greenback adding 0.5% against the yen (125.18). The dollar/yen pair deserves attention going forward considering China's move could pressure the Bank of Japan into additional easing in order to support Japanese exporters.

Economic data included Productivity/Labor Cost data and Wholesale Inventories:

Nonfarm productivity increased 1.3% in Q2 2015 after declining an upwardly revised 1.1% (from -3.1%) in the first quarter while the Briefing.com consensus expected an increase of 1.4%
The increase in second quarter productivity ended two consecutive quarterly declines.
Year-over-year, nonfarm productivity increased 0.3%, down from a 0.6% gain in Q1 2015
Unit labor costs increased 0.5% in the second quarter while the consensus expected an increase of 0.1%; however, the reported increase was the smallest rise since a 0.1% increase in Q3 2014
Wholesale inventories increased 0.9% in June after a downwardly revised 0.6% increase (from 0.8%) in May while the Briefing.com consensus expected an increase of 0.3%
Wholesale sales increased 0.1% in June after a 0.2% increase in May while durable sales declined 1.1% in June, which resulted mostly from a 2.8% decline in automotive sales. Nondurable sales increased 1.2% on strong demand for farm products (3.6%) and petroleum (3.7%)
The inventory-to-sales ratio increased to 1.30 in June from 1.29 in May

12:30 pm: [BRIEFING.COM] Equity indices remain near their session lows with the Nasdaq Composite (-1.3%) trading behind the S&P 500 (-1.1%).

The tech-heavy Nasdaq traded ahead of the S&P 500 at the start thanks to relative strength in the tech sector that was brought on by a spike in the shares of Google (GOOGL 686.08, +22.94). The influential sector component remains higher by 3.4% after being up nearly 6.0% at the start. Elsewhere in the sector, Apple (AAPL 115.26, -4.47) and Microsoft (MSFT 46.26, -1.07) hold respective losses of 3.7% and 2.3% while high-beta chipmakers underperform with the PHLX Semiconductor Index down 1.9%.
Related Quotes

12:00 pm: [BRIEFING.COM] Not much let up to the selling pressure that has sent the S&P 500 lower by 1.1%. The benchmark index has notched a fresh session low in recent minutes while the Dow (-1.4%) and Nasdaq Composite (-1.3%) display relative weakness.

With stocks continuing their retreat, seven sectors are now down in excess of 1.0% while countercyclical telecom services (+0.2%) and utilities (+0.6%) continue showing relative strength thanks to today's drop in market rates. To that point, the 10-yr note has notched a new high in recent going with the 10-yr yield now down ten basis points at 2.12%.

Looking at the bigger picture, the S&P 500 now trades within five points of its 200-day moving average (2,075), which is an area that has been in focus since early July.

11:25 am: [BRIEFING.COM] Equity indices have notched new lows in recent action with the S&P 500 now down 1.0%. Meanwhile, blue chip names trail the broader market, evidenced a 1.3% decline in the Dow Jones Industrial Average.

The price-weighted index has been pressured by losses in 28 of its 30 components while Wal-Mart (WMT 71.87, +0.39) and Verizon (VZ 47.62, +0.39) trade higher by 0.5% and 0.8%, respectively. On the downside, Caterpillar (CAT 77.66, -2.50) is the weakest Dow component, trading lower by 3.1%, in reaction to growth concerns that have been stirred up by China's move to devalue the yuan.

On a related note, the industrial sector (-1.2%) is among the biggest laggards, trading only ahead of energy (-2.2%) and materials (-2.1%).

10:55 am: [BRIEFING.COM] The major averages have inched up off their lows, but selling pressure remains heavy with eight sectors trading in the green while the S&P 500 is lower by 0.7%.

Yesterday, the benchmark index reclaimed the bulk of its loss from the previous week, but today's slide has placed the S&P 500 near the middle of yesterday's range and back below the 50-day (2,096) and 200-day moving averages (2,098).

Cyclical sectors remain behind their defensively-oriented counterparts with energy (-2.0%) and materials (-1.9%) seeing notable pressure due to the weakness in commodities that has followed China's decision to devalue the yuan. For instance, crude oil has plunged 4.2% to $43.06/bbl while copper futures have surrendered 2.8%, sliding to $2.334/lbs.

Elsewhere, the technology sector (-0.7%) now trades in-line with the broader market after showing relative strength in the early going. Google (GOOGL 694.50, +31.23) remains higher by 4.7%, but other top-weighted components trade lower across the board.

10:35 am: [BRIEFING.COM]

The dollar index and commodities broadly are trading off momentum from the Chinese govt's overnight decision to devalue the Yuan
The dollar traded stronger overnight-immediately following the announcement- but then sold off in early trade as market focus turned toward implications for near-term US rate hike decision making. The index is now flat for the session however, at 97.14
Crude was extending slight losses overnight, before negative Chinese demand sentiment (evidenced by the devaluation) and an initially stronger dollar sparked an oil sell-off
One notable catalyst weighing on oil prices is this morning's OPEC report.
OPEC released its monthly July OPEC report, which showed that OPEC is pumping the most crude oil in three years, despite the obvious oversupply issues going on.
More specifically, in July, OPEC crude production increased by 101,700 barrels per day to average 31.51 millon barrels per day.
The sell-off has continued most recently and oil is now near its LoD at -3.7% to $43.31/barrel
Precious metals have largely weathered well against the broad sell-off as a safe-haven currency trade so far this morning, with gold modestly positive at -0.1% to $1103.60/oz and silver near flat at -0.8% to $15.17/oz
Copper as expected, is booking strong losses on weak global demand perceptions (largely driven by/out of China) and is now -2.9% to $2.33/lb
Natural gas currently trades -1.1% to $2.81/MMBtu

10:00 am: [BRIEFING.COM] The S&P 500 trades lower by 0.8%.

Just released, June wholesale inventories rose 0.9% while the Briefing.com consensus expected an uptick of 0.3%. Today's report followed last month's revised increase of 0.6% (from 0.8%).

9:45 am: [BRIEFING.COM] The major averages began the trading day in negative territory, but the Nasdaq Composite (-0.3%) trades ahead of the S&P 500 (-0.7%) thanks to the early strength in the shares of Google (GOOGL 698.50, +35.36).

That being said, Google is just one of few strong spots as nine sectors display opening losses with energy (-2.1%) pacing the early weakness. With regard to more influential sectors, consumer discretionary (-0.9%), financials (-0.8%), and industrials (-0.9%) trade behind the broader market while health care (-0.6%) and technology (-0.4%) have stayed a bit ahead in the early going.

The early selling has been accompanied by demand for Treasuries as the 10-yr note remains near its high with its yield down seven basis points at 2.15%.

The Wholesale Inventories report for June will be released at 10:00 ET (Briefing.com consensus 0.3%).

9:10 am: [BRIEFING.COM] S&P futures vs fair value: -16.30. Nasdaq futures vs fair value: -26.20. The stock market is on track for a lower open as S&P 500 futures trade 16 points below fair value.

Index futures have spent the entire night in negative territory with investor sentiment pressured by news out of China. Specifically, the country devalued the yuan overnight, which sent the USD/CNY pair higher by 1.9% to 6.3249. The move was aimed at boosting China's domestic economy, but concerns about the impact on the country's trading partners has taken a toll on European equities and U.S. futures. Exporters have paced the retreat across Europe with the likes of BMW, Daimler, Peugeot, Renault, and Volkswagen showing losses between 3.0% and 4.5%.

Domestically, investors have received just one economic report while corporate news has been limited. Unit labor costs increased 0.5% during the second quarter, which was higher than the 0.1% increase that had been anticipated by the Briefing.com consensus. During the same period, productivity increased 1.3%, according to the preliminary reading while the consensus expected an increase of 1.4%.

On the corporate front, Google (GOOGL 703.00, +39.86) is on track to open higher by 6.0% after announcing plans for a new operating structure. As part of the announced change, Google will create a new company called Alphabet, which will replace Google as a publically-traded entity.

Elsewhere, Treasuries sit near their highs with the 10-yr yield down seven basis points at 2.16%.

The Wholesale Inventories report for June will be released at 10:00 ET (Briefing.com consensus 0.3%).

8:57 am: [BRIEFING.COM] S&P futures vs fair value: -15.30. Nasdaq futures vs fair value: -27.30. The S&P 500 futures trade 15 points below fair value.

There were broad-based declines across markets in the Asia-Pacific region after China's central bank surprisingly implemented a near 2.0% devaluation of the yuan, presumably in an effort to help boost the competitiveness of the country's exporters. The move sent regional currencies reeling against the greenback and triggered worries about competitive devaluation that weighed on most equity markets.

In economic data:
China's M2 Money Stock +13.3% year-over-year (expected +11.7%; prior +11.8%) and New Loans CNY 1480.0 bln (expected CNY 725.0 bln; prior CNY 1280.0 bln)
Japan's Machine Tool Orders +1.6% year-over-year (prior +6.6%) and M2 Money Stock +4.1% year-over-year (expected +3.9%; prior +3.9%)
South Korea's July Export Price Index -1.7% year-over-year (expected -4.2%; prior -2.2%) and July Import Price Index -13.7% (prior -14.1%)
Australia's July NAB Business Confidence 4.0 (expected 11.0; prior 8.0) and July NAB Business Survey 6.0 (prior 10.0)
Singapore's Q2 GDP -4.0% quarter-over-quarter (expected -4.6%; prior +4.1%); +1.8% year-over-year (expected +1.5%; prior +1.7%)

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Japan's Nikkei declined 0.4%, led lower by the consumer staples (-2.6%), consumer discretionary (-1.0%), health care (-0.8%), and financials (-0.4%) sectors. Shiseido (-4.8%), Kansai Electric Power (-4.7%), and MEIJI Holdings (-4.5%) were the worst-performing issues. Sumco Corp (+8.6%), Sekisui House (+5.2%), and Nisshin Steel Co (+4.6%) topped the list of winners. Out of the 225 index members, 110 ended higher, 110 finished lower, and 5 were unchanged.
Hong Kong's Hang Seng started strong but faded as the day progressed and ended down 0.1%. Leading laggards were Cathay Pacific Airways (-2.0%), Cheung Kong Property Holdings (-1.8%), and CK Hutchison Holdings (-1.5%). Li & Fung (+5.0%), CNOOC (+4.1%), and China Overseas Land & Investment (+3.7%) paced the winners. Out of the 50 index members, 23 ended higher, 25 finished lower, and 2 were unchanged.
China's Shanghai Composite had a jagged session in a narrow range and ended the day flat after the People's Bank of China surprisingly implemented a near 2.0% devaluation of the yuan. The move came after China reported weaker than expected trade data over the weekend and is considered to be an effort to help boost the prospects of China's exporters. The yuan dropped 1.9% against the dollar to 6.3250.

Major European indices trade lower across the board with Germany's DAX (-2.0%) trailing the region. Earlier, the European Commission announced that Eurozone creditors and Greek officials have reached a technical agreement on a third bailout package, but regional equities have retreated amid concerns related to China's devaluation of the yuan.

Economic data was limited:
Eurozone ZEW Economic Sentiment rose to 47.6 from 42.7 (expected 43.9)
Germany's August ZEW Economic Sentiment fell to 25.0 from 29.7 (consensus 65.7) while ZEW Current Conditions improved to 65.7 from 63.9 (expected 64.3). Separately, July Wholesale Price Index +0.1% month-over-month (expected 0.2%; prior -0.2%)
Italy's July CPI -0.1% month-over-month, as expected; +0.2% year-over-year, as expected

------

UK's FTSE has given up 0.8% with miners appearing on both sides of the leaderboard. Antofagasta, BHP Billiton, Glencore, and Rio Tinto are down between 1.5% and 3.2% while Randgold Resources and Fresnillo outperform with respective gains of 2.1% and 2.7%.
In France, the CAC trades down 1.5% amid broad weakness. Exporters Peugeot and Renault are among the weakest performer with losses close to 3.7% apiece. Consumer names also lag with LVMH, Kering, L'Oreal, and Danone down between 1.8% and 4.1%.
Germany's DAX is lower by 2.0% with BMW, Daimler, and Volkswagen leading the retreat. The three exporters show losses between 3.1% and 4.6%. On the upside, Lufthansa is the lone advancer, trading higher by 0.5%.

8:31 am: [BRIEFING.COM] S&P futures vs fair value: -15.00. Nasdaq futures vs fair value: -25.70. The S&P 500 futures trade 15 points below fair value.

Unit labor costs increased 0.5% during the second quarter, which was higher than the 0.1% increase that had been anticipated by the Briefing.com consensus. During the same period, productivity increased 1.3%, according to the preliminary reading while the consensus expected an increase of 1.4%.

7:57 am: [BRIEFING.COM] S&P futures vs fair value: -10.50. Nasdaq futures vs fair value: -11.20. U.S. equity futures trade lower amid cautious action overseas. The S&P 500 futures hover 11 points below fair value after spending the entire night in the red.

Overnight, China devalued the yuan by the largest amount on record, sending the USD/CNY pair higher by 1.9% to 6.3249. The announcement briefly boosted the dollar against other currencies, but the Dollar Index (97.09, -0.07) has returned to unchanged since then.

Treasuries hover just below their overnight highs with the 10-yr yield down five basis points at 2.18%.

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.

In U.S. corporate news of note:

Kraft Heinz (KHC 77.50, -1.31): -1.7% after reporting better than expected earnings on light revenue.
Raxspace (RAX 32.90, +1.17): +3.7% in reaction to an in-line report.
Shake Shack (SHAK 76.20, +5.56): +7.9% after beating estimates and announcing a secondary share offering.
Symantec (SYMC 24.40, +1.49): +6.5% after reporting disappointing results, increasing its buyback, and confirming the sale of its data storage unit to the Carlyle Group (CG 25.17, +0.15) for $8 billion in cash.
Zebra Technologies (ZBRA 110.94, +0.90): +0.8% despite missing estimates and guiding Q3 earnings below consensus.

Reviewing overnight developments:

Asian markets ended lower. Japan's Nikkei -0.4%, Hong Kong's Hang Seng -0.1%, and China's Shanghai Composite settled just below its flat line.
In economic data:
China's M2 Money Stock +13.3% year-over-year (expected +11.7%; prior +11.8%) and New Loans CNY 1480.0 bln (expected CNY 725.0 bln; prior CNY 1280.0 bln)
Japan's Machine Tool Orders +1.6% year-over-year (prior +6.6%) and M2 Money Stock +4.1% year-over-year (expected +3.9%; prior +3.9%)
South Korea's July Export Price Index -1.7% year-over-year (expected -4.2%; prior -2.2%) and July Import Price Index -13.7% (prior -14.1%)
Australia's July NAB Business Confidence 4.0 (expected 11.0; prior 8.0) and July NAB Business Survey 6.0 (prior 10.0)
Singapore's Q2 GDP -4.0% quarter-over-quarter (expected -4.6%; prior +4.1%); +1.8% year-over-year (expected +1.5%; prior +1.7%)
In news:
China's record devaluation of the yuan sent shockwaves through global equity markets with the move suggesting the presence of structural problems with the world's second-largest economy

Major European indices trade lower across the board. Germany's DAX -1.7%, France's CAC -1.1%, and UK's FTSE -0.7%. Elsewhere, Italy's MIB -0.3% and Spain's IBEX -0.7%
Economic data was limited:
Eurozone ZEW Economic Sentiment rose to 47.6 from 42.7 (expected 43.9)
Germany's August ZEW Economic Sentiment fell to 25.0 from 29.7 (consensus 65.7) while ZEW Current Conditions improved to 65.7 from 63.9 (expected 64.3). Separately, July Wholesale Price Index +0.1% month-over-month (expected 0.2%; prior -0.2%)
Italy's July CPI -0.1% month-over-month, as expected; +0.2% year-over-year, as expected
Among news of note:
Eurozone creditors and Greek officials have reached a technical agreement on a third bailout package, according to the European Commission

5:51 am: [BRIEFING.COM] S&P futures vs fair value: -12.40. Nasdaq futures vs fair value: -17.40.

5:50 am: [BRIEFING.COM] Nikkei...20720.75...-87.90...-0.40%. Hang Seng...24498.21...-22.90...-0.10%.

5:50 am: [BRIEFING.COM] FTSE...6684.39...-50.90...-0.80%. DAX...11446.28...-158.50...-1.40%.

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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wrbanalysis@gmail.com
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