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 Post subject: August 21st Friday Trade Results - Profit $9125.00
PostPosted: Fri Aug 21, 2015 3:30 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 @ $0.00 dollars or +0.00 points, Emini ES ($ES_F) futures @ $9125.00 dollars or +182.50 points, Light Crude Oil CL ($CL_F) futures @ $0.00 dollars or +0.00 points, Gold GC ($GC_F) futures @ $0.00 dollars or +0.00 points and EuroFX 6E ($6E_F) futures @ $0.00 dollars or +0.0000 ticks. Total Profit @ $9125.00 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=2152

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


4:20 pm: [BRIEFING.COM] The stock market wrapped up a defensive week with a Friday plunge that sent the S&P 500 (-3.2%) lower by 65 points to levels not seen since late October. For the week, the S&P 500 lost 5.8% while the Nasdaq Composite underperformed, diving 3.5% today to extend its weekly decline to 6.8%.

Equities stumbled out of the gate as investor sentiment continued deteriorating after the overnight session included more selling in China with the Shanghai Composite falling 4.3% to extend its weekly decline to 11.2%. Continued concerns about the country's economy fueled today's dive after the preliminary Caixin Manufacturing PMI (47.1; consensus 47.7) dropped near 6.5-year lows while the output component dropped to 46.6, its lowest level in four years.

The selling pressure persisted through European trade and remained heavy during the New York session. The daylong retreat began with an opening dive that sent the S&P 500 lower by almost 20 points. The index followed that with an eight-point uptick, but that was met with a 30-point slide. Another rebound ensued, but the move was limited to 14 points, and followed by 17-point retreat. The index then strung a 12-point advance, but once again, that was retraced by a 35-point slide to a fresh low into the close.

All ten sectors registered losses with five groups losing 3.0% or more. Top-weighted sectors like technology (-3.8%), consumer discretionary (-3.2%), and health care (-3.0%) paced the daylong tumble while other heavily-weighted groups also contributed to the market-wide pressure.

The technology sector suffered from losses among large cap components with the likes of Apple (AAPL 106.05, -6.60), Google (GOOGL 644.03, -35.45), Facebook (FB 86.06, -4.50), Intel (INTC 26.58, -0.95), and Microsoft (MSFT 43.07, -2.59) diving between 3.5% and 5.9%. Unlike Intel, high-beta chipmakers held slimmer losses than the broader market during the day, but the PHLX Semiconductor Index ended lower by 2.7% due to heavy selling in the afternoon.

Elsewhere, the discretionary sector was broadsided by retailers while recent high-flyers like Amazon (AMZN 494.50, -21.28) and Netflix (NFLX 103.96, -8.53) lost 4.1% and 7.6%, respectively. The two listings contributed to the relative weakness in the Nasdaq while biotech names also retreated, but iShares Nasdaq Biotechnology ETF (IBB 339.84, -10.98) ended ahead of the Nasdaq with a 3.1% decline.

Also of note, the energy sector (-3.6%) finished near the bottom of the barrel as crude oil registered its eight consecutive weekly decline. The energy component fell 2.1%, settling at $40.45/bbl after briefly dipping below the $40.00/bbl mark. For the week, crude oil sank 6.2%.

The Friday drop caught many participants by surprise, evidenced by a daylong rally in the CBOE Volatility Index (VIX 28.17, +9.03), which rocketed higher by nine points to levels last seen in mid-October as investors showed relentless demand for downside protection.

Interestingly, the considerable weakness in equities was not met by significant strength in the Treasury market. To be sure, Treasuries did advance, but the 10-yr note notched its high well before the low in stocks. As a result, the benchmark 10-yr yield fell two basis points to 2.05%.

Today's participation was well above average as more than 1.3 billion shares changed hands at the NYSE floor. It is worth noting that the total was boosted in part by flows related to August options expiration.

Investors did not receive any economic data today and Monday's session will also be quiet on the economic front.

Nasdaq Composite -0.6% YTD
S&P 500 -4.3% YTD
Russell 2000 -3.9% YTD
Dow Jones Industrial Average -7.7% YTD

Week in Review: China Returns to Headlines

The stock market began the trading week on an upbeat, albeit quiet, note with the S&P 500 climbing 0.5%. The benchmark index turned an opening ten-point loss into an eleven-point gain while the Nasdaq Composite (+0.9%) displayed relative strength throughout the session. Equity indices faced some short-lived weakness at the start of the session after the August Empire Manufacturing survey came in well below expectations (-14.9; Briefing.com consensus 5.0). The report was met with a rally in the Treasury market while equity futures slipped, leading to the lower open. Despite the early pressure, the major averages were back in the green just 90 minutes after the opening bell and they continued inching higher during afternoon action. The health care sector (+1.0%) was among the early pockets of relative strength as biotechnology rallied throughout the day. The iShares Nasdaq Biotechnology ETF (IBB 371.67, +7.61) climbed 2.1%, contributing to the outperformance of the Nasdaq.

After enjoying a broad-based spike on Monday, the market surrendered more than half of that gain on Tuesday. The S&P 500 lost 0.3%, narrowing its weekly advance to 0.3%, while the Nasdaq Composite (-0.6%) underperformed. Although the Tuesday session produced a different outcome than Monday's affair, investor participation remained below-average with fewer than 700 million shares changing hands at the NYSE floor. Equities began the day with modest losses after the overnight session featured a resumption of heavy selling in China that sent the Shanghai Composite lower by 6.2%. There was no clear-cut reason for the plunge, but some pointed to a better than feared Housing Starts report, which could keep the People's Bank of China from implementing additional stimulus measures. The overnight weakness was followed by a shaky session in Europe while U.S. indices made a brief appearance in the green before revisiting their morning lows. The S&P 500 slid below its 100-day moving average (2,098) during midday action and hit its session low just a point below the 50-day average (2,095) before settling just above that level.

The stock market ended the Wednesday session on a lower note after enduring a volatile day that included opening weakness, an afternoon rebound, and a slide from rebound highs. When the dust settled, the S&P 500 ended lower by 0.8%, turning a slim weekly gain into a 0.6% week-to-date loss. Stocks stumbled at the start after the overnight session featured more uninspiring action in China. Specifically, the Shanghai Composite climbed 1.2%, but not before being down more than 5.0% in the early going. The wild turnaround was followed by a retreat across European markets while U.S. equities opened in the red and continued their slide with the energy sector (-2.8%) pacing the move. The growth-sensitive group extended its weekly loss to 3.2% while crude oil fell to a new low for the year, ending the pit session lower by 4.3% at $40.80/bbl. Similarly, the other commodity-related sector-materials (-1.2%)-ended at the bottom of the leaderboard amid weakness in steelmakers. The Market Vectors Steel ETF (SLX 25.63, -0.75) lost 2.8%. That being said, mining shares represented a pocket of strength, evidenced by a 2.9% spike in Market Vectors Gold Miners ETF (GDX 15.20, +0.43). On a related note, gold futures climbed 1.2% to $1130.70/ozt. The early selling pressured the S&P 500 below its 200-day moving average (2,078), but the benchmark index crawled back above that mark during afternoon action and charged to an intraday high after the minutes from the July FOMC meeting crossed the wires about 20 minutes ahead of the scheduled release time. Overall, the minutes appeared to be quite dovish with members "generally agreeing" that more information is needed before hiking rates. Furthermore, most members believed that "conditions for policy firming had not yet been achieved," but they agreed that conditions were nearing that point.

The market registered its third consecutive decline on Thursday with the S&P 500 (-2.1%) slashing below its 200-day moving average (2,078). The benchmark index slid to levels not seen since early February while the Nasdaq Composite (-2.8%) displayed relative weakness throughout the day. The daylong selloff was brought on by a heightened sense of uncertainty among investors, pulling the S&P 500 into the red for 2015 (-1.1%). To be sure, some of the uncertainty (rate-hike speculation, concerns about the global economy, plunging commodity prices) had been brewing for a while, whereas today's session reminded investors about ongoing concerns related to China and Greece. Overnight, China's Shanghai Composite tumbled 3.4% amid reports the country's official GDP target could be lowered to 6.5% from 7.0%. Sellers maintained control despite a CNY120 billion injection from the People's Bank of China into capital markets. As for Greece, Prime Minister Alexis Tsipras resigned from his post and called for a snap election, set for September 20, just three days after the FOMC concludes its September meeting. It is worth noting that there are indications Greece's minority parties could try to form a coalition government, which would block the September 20 vote.

3:35 pm: [BRIEFING.COM]

Oil was on the move again.WTI crude oil futures (continuous) briefly fell below $40/barrel for the first time since March 2009.
Oil began to rally some into the close of floor trade and by the end of today's session, October crude oil futures fell $0.82 (-2%) to $40.44/barrel
Overall, the dollar index has been trading lower all day, which has helped select commodities
At the same time, broader markets (S&P 500, Nasdaq and Dow) are all near today's lows
Gold held some gains into the close on the dollar weakness, ending +0.6% at $1159.70/oz. However, Sept silver fell 1.4% to $15.30/oz
Copper closed -0.4% at $2.31/lb

3:00 pm:

The major averages have set new lows for the day going into the final hour of action. The Dow and S&P 500 are now down 2.3% apiece while the Nasdaq Composite (-2.5%) continues showing relative weakness.

Today's daylong retreat began with an opening dive that sent the S&P 500 lower by 20 points. The index followed that with a six point uptick, but that was met with a 30-point slide. Another rebound ensued, but the move was limited to 14 points, and followed by 17-point retreat. Most recently, the index strung a 12-point advance, but once again, that has been retraced by a 16-point slide to a fresh session low.

Throughout the day, we have been keeping an eye on the top-weighted sectors as they have been unable to keep pace with the broader market. That remains the case at this juncture with technology (-2.7%), health care (-2.5%), and energy (-2.6%) trading well behind the broader market.

2:25 pm:

[BRIEFING.COM] Recent action saw the S&P 500 (-1.8%) briefly poke its head above the 2,000 level after spending the past three hours in the neighborhood of that mark.

Six sectors continue trading in-line with or behind the S&P 500, which indicates continued selling pressure. However, it is worth noting that small caps have been able to stage a rebound with the Russell 2000 trading lower by 0.4% after testing its flat line within the past 45 minutes. Thanks to the rebound, the Russell 2000 has narrowed this week's loss to 3.7% while the S&P 500 is on track to end the week lower by 4.2%. Furthermore, both indices are on course to end the week ahead of the Nasdaq Composite, which has surrendered 5.3% since last Friday.

1:55 pm:

[BRIEFING.COM] The major averages remain pressured as the S&P 500 (-1.8%) battles the 2,000 level. The benchmark index dropped below that mark around 11:00 ET and has spent the past 2.5 hours in an 18-point range around the 2,000 mark.

Sector standing has not changed much as top-weighted technology (-2.1%) and health care (-2.2%) continue showing losses larger than 2.0% apiece. Furthermore, the energy sector (-2.5%) has dropped to the bottom of the leaderboard as crude oil flirts with the $40.00/bbl level ahead of the pit close. The energy component has already made a brief appearance below the $40.00/bbl mark and currently trades about 15 cents above its session low.

On the flip side, the telecom services sector (+0.3%) has crawled into the green while another countercyclical group-utilities-has narrowed its loss to 0.2%.

1:35 pm:

[BRIEFING.COM] Selling pressure remains heavy in stocks as the major U.S. indices work their way back towards session lows after bailing to sustain a recent bounce.

A look inside the Dow Jones Industrial Average shows that Nike (NKE 107.66, -4.64), Apple (AAPL 108.31, -4.34), and Microsoft (MSFT 44.12, -1.54) are underperforming amid the meaningful broad market weakness.

Conversely, 3M (MMM 144.10, +0.70) is the best-performing Dow component, and only Dow component in positive territory. Helping add buying support to the name was some favorable commentary on Thursday's Mad Money

Extending yesterday's losses, the DJIA is now down 4.6% this week, and 5.75% in August.

In other developments, crude oil futures at the top of the hour fell ?below $40/bbl for the first time since 2009 following the weekly Baker Hughes rig count report

12:55 pm:

[BRIEFING.COM] The major averages trade broadly lower at midday as mounting concerns about the global economy have pressured equity indices around the world. The S&P 500 trades lower by 1.9% after dipping below the 2,000 mark while the Nasdaq Composite (-2.2%) underperforms.

Equity indices have faced selling pressure since the opening bell after the overnight session included more selling in China with the Shanghai Composite falling 4.3% to extend its weekly decline to 11.2%. Continued concerns about the country's economy contributed to the retreat after the preliminary Caixin Manufacturing PMI (47.1; consensus 47.7) fell into the neighborhood of 6.5-year lows while the output component dropped to 46.6, its lowest level in four years.

The selling efforts carried over into the European session while U.S. stocks have followed suit, putting the market on track for its fourth consecutive decline. The S&P 500 ended yesterday's session more than 40 points below its 200-day moving average (2,078) and today's dive has taken the benchmark index back to levels seen at the start of February.

With stocks on track for their fourth consecutive decline, investors have piled into downside protection, evidenced by the CBOE Volatility Index (VIX 23.32, +4.18), which remains higher by four points after testing mid-December levels in the 24.50% area.

All ten sectors display midday losses with two groups-technology (-2.2%) and health care (-2.4%)-down more than 2.0% apiece. That underperformance is notable considering the two sectors account for more than 35.0% of the market.

Digging deeper into the tech sector reveals significant underperformance among top-weighted components like Apple (AAPL 108.01, -4.66), Google (GOOGL 661.60, -17.88), and Microsoft (MSFT 44.15, -1.51). The three names are down between 2.6% and 4.2% while high-beta chipmakers trade a bit ahead of the sector with the PHLX Semiconductor Index down 1.2%. To be fair, the chipmaker index plunged 3.8% yesterday.

Elsewhere, the energy sector (-1.8%) trades just ahead of the broader market while crude oil has been hit with another round of selling interest. The energy component is currently lower by 2.7% at $40.20/bbl after hitting a session low near $40.10/bbl within the past 90 minutes.

Strikingly, today's selloff in equities has had a limited impact on the Treasury market as the benchmark 10-yr note spent the morning near its flat line before climbing to highs not long ago. As a result, the 10-yr note holds a seven-tick gain with its yield down three basis points at 2.04%.

Investors did not receive any economic data today.

12:25 pm:
Related Quotes

[BRIEFING.COM] The major averages have continued inching up off their lows, but a lot more work is left to do in order to improve the bruised investor sentiment. The S&P 500 has narrowed its loss to 1.6%, returning above the 2,000 mark.

Looking at the top-weighted sectors, consumer discretionary (-1.9%) and technology (-1.8%) trade behind the S&P 500 while financials (-1.5%), health care (-1.4%), and industrials (-1.4%) outperform slightly. Meanwhile, telecom services (-0.1%) and utilities (-0.7%) trade well ahead of other sectors, but the two groups represent just over 5.0% of the entire market.

In our previous update, we mentioned that Treasuries were moving to new session highs and they are now making a run at their recently-established highs with the 10-yr yield down two basis points at 2.05%.

12:00 pm:

[BRIEFING.COM] Equity indices have hit new session lows within the past 30 minutes before inching up off their worst levels of the day; however, that uptick has been minuscule in scope, considering the S&P 500 (-1.6%) remains lower by 33 points for the day.

The energy sector (-2.2%) has dropped to the bottom of the leaderboard as persistent weakness in crude oil (-2.9% to $40.12/bbl) weighs on the growth-sensitive sector. Meanwhile, the top-weighted technology space (-1.9%) trades behind the broader market.

Elsewhere, Treasuries have pushed to new highs after spending the early action near their flat lines. The 10-yr note sits at its best level of the day with the benchmark yield down two basis points at 2.05%.

11:25 am:

[BRIEFING.COM] Heavy selling pressure has driven the S&P 500 (-1.8%) below the 2,000 mark as the benchmark index continues probing levels last seen at the start of February. The persistent weakness has fueled a rush into downside protection, evidenced by the CBOE Volatility Index (VIX 23.97, +4.83), which has rocketed past February levels to highs last seen in mid-December.

It is worth noting that market breadth has not improved since our opening updates. Instead, a further deterioration has resulted in nearly six issues trading in the red for each advancer.

Also of note, crude oil has been victimized by today's selloff with the energy component trading lower by 2.4% at $40.32/bbl after hitting a session low just above $40.10/bbl.

10:55 am:

[BRIEFING.COM] The major averages have attempted a bounce off their opening lows, but that slight uptick has been met with renewed selling pressure that has the S&P 500 trading lower by 1.3% while the Nasdaq Composite (-1.5%) continues showing relative weakness.

All ten sector remain in the red and eight of ten groups show losses larger than 1.0%. Similar to yesterday, cyclical sectors are struggling to keep pace with the broader market with the top-weighted technology sector trading lower by 1.5% amid broad weakness. The largest sector component-Apple (AAPL 109.27, -3.38)-has tumbled 3.0% while chipmakers trade a bit ahead of the sector with the PHLX Semiconductor Index down 0.6%.

Elsewhere, Treasuries have maintained narrow ranges with the 10-yr yield remaining near 2.07%.

10:40 am: [BRIEFING.COM]

The dollar index traded down overnight, as disappointing manufacturing data out of China cast doubt about the Fed's near term ability to raise rates.
Notably, both US unemployment data and FOMC minutes released earlier this week, have given the weak Chinese data a platform to press the dollar strongly lower
Precious metals are among the biggest benefactors of that weakness so far today, having further benefited from risk-off trades on increased equity volatility this past week
The index is now down -0.7% to 95.28, while gold and silver have recovered a good portion of overnight losses, now trading in a wide range below the unchanged mark.
Gold currently sits at -0.1% to $1152.80/oz while silver is -2.1% to $15.19/oz
Oil continued to fall overnight, as weakened Chinese demand sentiment have exacerbated recent concern going into this afternoon's Baker Hughes rig count release.
WTI has seen no relief from the dollar's weakness today, and has sold off to moderate losses on the day, now -1.7% to $40.61/barrel
Natural gas is also trending lower (as it did overnight) on momentum from yesterday's inventory report, as demand concern emanating from tropical storms has failed to materialize. The September contract is currently -1.5% to $2.71/MMBtu
Copper is selling off, driven by the underwhelming Chinese PMI reading, to -1.0% at $2.30/lb

9:55 am:

[BRIEFING.COM] Equity indices remain near their early lows with the S&P 500 down 0.9%.

At this, relatively early, juncture, all ten sectors continue holding losses with four groups down 1.0% or more. The consumer discretionary sector (-1.3%) remains at the bottom of the barrel while other influential groups like financials (-1.1%) and industrials (-1.1%) also trade behind the broader market.

Strikingly, Treasuries continue hovering near their flat lines with the 10-yr yield bouncing around the 2.07% level.

The early selling has been far-reaching with more than four listings at the New York Stock Exchange trading in the red for each advancer.

9:40 am:

[BRIEFING.COM] As expected, the major averages have stumbled out of the gate with the Nasdaq Composite (-1.3%) trailing the S&P 500 (-0.9%).

All ten sectors display early losses with consumer discretionary (-1.6%), health care (-1.2%), and industrials (-1.1%) pacing the opening move while the countercyclical utilities sector (-0.1%) hovers just below its flat line.

Meanwhile, Treasuries have inched up from their recent levels with the 10-yr yield down one basis point at 2.06%.

With stocks facing continued pressure, investors have piled into downside protection, evidenced by a sharp spike in the CBOE Volatility Index (VIX 22.45, +3.31), which has surged to levels last seen in early February.

9:11 am: [BRIEFING.COM] S&P futures vs fair value: -13.00. Nasdaq futures vs fair value: -40.80.

The stock market is on track for a lower open with S&P 500 futures trading 13 points below fair value.

Despite the lower indication, the current standing represents an improvement from the overnight session when futures on the benchmark index tested the 2,010 level (-22 vs fair value) amid broad-based weakness in Asia. Once again, China was at the forefront of that move as the Shanghai Composite fell 4.3% to extend its weekly decline to 11.2%. Continued concerns about the country's economy contributed to the retreat after the preliminary Caixin Manufacturing PMI (47.1; consensus 47.7) fell into the neighborhood of 6.5-year lows while the output component dropped to 46.6, its lowest level in four years.

The selling efforts have extended into the European session with markets there showing losses near 1.4% while U.S. equities are also tracking an opening decline.

Interestingly, Treasuries have traded inside narrow ranges despite the weakness in global equities with the 10-yr yield currently unchanged at 2.07%

Given the overarching theme, stock-specific news will be relegated to the backburner today, but it is worth noting that Deere (DE 85.72, -4.93) is on track to open lower by 5.4% after beating bottom-line estimates on light revenue and lowering its guidance.

8:50 am: [BRIEFING.COM] S&P futures vs fair value: -11.30. Nasdaq futures vs fair value: -41.60.

The S&P 500 futures trade 11 points below fair value.

Markets in the Asia-Pacific region followed Wall Street's lead and ended sharply lower on Friday. Selling interest was fueled by economic growth concerns that were compounded by a weaker than expected preliminary manufacturing PMI report out of China. China's Shanghai Composite led the broad-based retreat with a 4.3% decline that left it down more than 11% for the week.

In economic data:
China's preliminary August Caixin Manufacturing PMI 47.1 (expected 47.7; prior 47.8)
Japan's preliminary August Manufacturing PMI 51.9 (consensus 52.1; prior 51.2)
New Zealand's Visitor Arrivals -2.7% month-over-month (prior -0.5%) and Credit Card Spending +9.7% year-over-year (prior 6.6%)

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Japan's Nikkei slumped 3.0% and ended at its lows for the day. It was hurt by weakness in exporters, which fell as the yen strengthened, and plagued by a particularly weak showing from the financial (-4.6%), technology (-3.4%), and consumer discretionary (-3.3%) sectors. Alps Electric (-7.1%), Unitika (-6.9%), and Fujikura (-6.7%) topped a very long list of losers. In fact, only one of the 225 index members -- Hokuetsu Kishu Paper Co (+1.0%) -- ended the day higher. For the week, the Nikkei declined 5.3%.
Hong Kong's Hang Seng declined 1.5%, feeling the drag of weakness in the mainland market and concerns about growth in the region. Galaxy Entertainment Group (-4.4%), China Resources Power Holdings (-3.8%), and Cheung Kong Property Holdings (-3.6%) were the worst-performing issues. Henderson Land Development (+5.5%), China Unicom Hong Kong (+3.2%), and Li & Fung (+2.7%) topped a short list of winners. Out of the 50 index members, 6 ended higher, 43 finished lower, and 1 was unchanged. For the week, the Hang Seng declined 6.6%.
China's Shanghai Composite fell 4.3%, closing out a tough week on a tough note. The selling on Friday followed a weaker than expected reading from the preliminary Caixin Manufacturing PMI for August. The latter dipped to 47.1 from 47.8, which is its lowest level in more than six years and a reflection of a manufacturing sector in contraction. For the week, the Shanghai Composite plunged 11.2%.

Major European indices trade lower across the board with Germany's DAX, UK's FTSE, and France's CAC all down near 1.4%. Meanwhile, the euro has climbed to a two-month high against the dollar with the pair testing the 1.1300 level.

Investors received several data points:
Eurozone preliminary August Manufacturing PMI 52.4 (expected 52.2; prior 52.4) while preliminary August Services PMI 54.3 (expected 54.0; last 54.0)
Germany's preliminary August Manufacturing PMI 53.2 (expected 51.7; last 51.8) while preliminary August Services PMI 53.6 (consensus 53.9; prior 53.8). Separately, September GfK Consumer Climate slipped to 9.9 from 10.1 (expected 10.1)
UK's July Public Sector Net Borrowing --GBP2.07 billion (expected --GBP2.40 billion; prior GBP8.64 billion)
France's preliminary August Manufacturing PMI 48.6 (consensus 49.7; prior 49.6) while preliminary August Services PMI 51.8 (consensus 52.0; last 52.0)

------

Germany's DAX is lower by 1.4% with all but two components in the red. Heavyweights Merck, Lufthansa, and Daimler show losses between 1.9% and 3.8% while financials also lag with Commerzbank and Deutsche Bank both down near 1.8%. On the upside, Adidas and Henkel are up 0.5% and 0.2%, respectively.
UK's FTSE trades down 1.4% amid broad weakness. Shire and Prudential lead the retreat with both names down 3.0% apiece. On the flip side, only four names show gains with miners Fresnillo and Randgold Resources both up near 0.6%.
In France, the CAC has given up 1.3% with all 40 components in the red. Financials BNP Paribas, Credit Agricole, and Societe Generale show losses between 1.1% and 2.4% while Peugeot is the weakest performer, down 3.5%.

8:28 am: [BRIEFING.COM] S&P futures vs fair value: -13.00. Nasdaq futures vs fair value: -43.70.

U.S. equity futures have added to their pre-market losses, inching down towards overnight lows. The S&P 500 futures currently hover near the 2,019 level after marking an overnight low just under 2,009.

Meanwhile, Treasuries have ticked up in recent action with the 10-yr yield down a basis point at 2.06%. Interestingly, the strength in futures has been relatively limited given the percolating concerns about global equity markets.

For its part, the Dollar Index (-0.4%) has been pressured by investors demanding euros and yen. The euro/dollar pair is higher by 0.4% at 1.1290 while dollar/yen has retreated 0.7% to 122.60.

8:00 am: [BRIEFING.COM] S&P futures vs fair value: -11.80. Nasdaq futures vs fair value: -35.70.

U.S. equity futures trade lower amid cautious action overseas. The S&P 500 futures hover 12 points below fair value after slipping from their highs at the start of the European session.

The overnight session saw continued turmoil in China with the Shanghai Composite falling 4.2% while other Asian indices also retreated amid overall risk aversion among investors.

U.S. Treasuries, meanwhile, have climbed during overnight action, but are now little changed with the 10-yr yield at 2.07%.

There is no economic data on today's schedule, but it is worth noting that trading volume is expected to be well above average due to options expiration.

In U.S. corporate news of note:

Deere (DE 89.14, -1.51): -1.7% after beating bottom-line estimates on light revenue and lowering its guidance.
Foot Locker (FL 73.49, +1.77): +2.5% in reaction to better than expected results.
Hewlett-Packard (HPQ 27.30, -0.05): -0.2% after beating bottom-line estimates and guiding Q4 earnings below analyst expectations.
Salesforce.com (CRM 70.00, +2.18): +3.2% after beating estimates and issuing upbeat guidance.

Reviewing overnight developments:

Asian markets ended lower. China's Shanghai Composite -4.2%, Japan's Nikkei -3.0%, and Hong Kong's Hang Seng -1.5%.
In economic data:
China's preliminary August Caixin Manufacturing PMI 47.1 (expected 47.7; prior 47.8)
Japan's preliminary August Manufacturing PMI 51.9 (consensus 52.1; prior 51.2)
New Zealand's Visitor Arrivals -2.7% month-over-month (prior -0.5%) and Credit Card Spending +9.7% year-over-year (prior 6.6%)
In news:
China's Caixin Manufacturing PMI fell into the neighborhood of 6.5-year lows while the output component dropped to 46.6, its lowest level in four years.
Major European indices trade lower across the board. UK's FTSE -1.2%, France's CAC -1.2%, and Germany's DAX -1.1%. Elsewhere, Italy's MIB -0.9% and Spain's IBEX -0.8%
Investors received several data points:
Eurozone preliminary August Manufacturing PMI 52.4 (expected 52.2; prior 52.4) while preliminary August Services PMI 54.3 (expected 54.0; last 54.0)
Germany's preliminary August Manufacturing PMI 53.2 (expected 51.7; last 51.8) while preliminary August Services PMI 53.6 (consensus 53.9; prior 53.8). Separately, September GfK Consumer Climate slipped to 9.9 from 10.1 (expected 10.1)
UK's July Public Sector Net Borrowing --GBP2.07 billion (expected --GBP2.40 billion; prior GBP8.64 billion)
France's preliminary August Manufacturing PMI 48.6 (consensus 49.7; prior 49.6) while preliminary August Services PMI 51.8 (consensus 52.0; last 52.0)
Among news of note:
The euro has climbed to a two-month high against the dollar with the rally pausing just below the 1.1300 level, where the euro/dollar pair currently trades

7:35 am: [BRIEFING.COM] S&P futures vs fair value: -12.80. Nasdaq futures vs fair value: -39.50.

7:35 am:

[BRIEFING.COM] Shanghai Composite... 3507.74.... -156.55... -4.3%. Nikkei 19435.83... -597.69... -3.0%. Hang Seng 22409.62... -347.85... -1.5%

6:57 am: [BRIEFING.COM] FTSE...10408.74...-24.50...-0.20%. DAX...6332.74...-35.20...-0.60%.

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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