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 Post subject: August 25th Tuesday Trade Results - Profit $23125.00
PostPosted: Wed Aug 26, 2015 3:46 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)

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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 @ $23125.00 dollars or +462.50 points, Light Crude Oil CL ($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 @ $23125.00 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=2154

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


4:10 pm: [BRIEFING.COM] The stock market ended the Tuesday session on a lower note despite starting the day with a sharp spike. The S&P 500 lost 1.4% after being up 2.9% while the Nasdaq Composite surrendered 0.4% after being up 3.6%.

The market began the day with a broad-based spike after most global stock markets rebounded during overnight action. Interestingly, the rebound did not include China's Shanghai Composite as the index lost 7.6%. That being said, the focus will be on the index tonight considering the People's Bank of China cut its main lending rate 25 basis points to 4.6% and lowered its reserve requirement ratio 50 basis points to 18.0% this morning.

The PBoC rate-cut announcement took place well after Asian markets ended for the day, and the news was met with a spike in S&P futures. Once the trading day began, the S&P 500 rallied through the first two hours of action, but returned into the middle of its trading range during the afternoon, and fell to lows during the final 60 minutes of the session.

In some ways, the selling during the final hour resembled action observed on Monday morning as liquidity dried up notably and bid-ask spreads widened past typical levels. The S&P 500 surrendered nearly 40 points during the final hour, pulling all sectors into the red. Interestingly, the utilities sector (-3.2%) ended at the bottom of the leaderboard as the rate-sensitive group suffered from higher yields intraday and extended its losses during afternoon selling.

More notably, heavily-weighted sectors like financials (-1.7%), industrials (-1.6%), and health care (-1.4%) ended in the red while consumer discretionary (-0.4%) and technology (-1.2%) surrendered their gains after being up more than 3.0% apiece.

The late afternoon tumble occurred after the Treasury market closed for the day, but 10-yr note futures rallied after the cash close. The benchmark instrument settled on its low with the yield up 13 basis points at 2.13%, but safe-haven demand drove the yield to 2.09% after the cash close.

Interestingly, the CBOE Volatility Index (VIX 37.08, -3.66) ended on its high, but still finished the day well below yesterday's settlement despite the late swoon.

Once again, corporate news was relegated to the backburner, but investors did receive a couple earnings reports this morning. Best Buy (BBY 32.95, +3.68) soared 12.6% after beating earnings and revenue estimates while Toll Brothers (TOL 35.08, -2.98) lost 7.8% after missing earnings and revenue estimates.

Economic data included Consumer Confidence, New Home Sales, Case-Shiller 20-city Index, and FHFA Housing Price Index:

The Conference Board's Consumer Confidence Index increased to 101.5 in August from an upwardly revised 91.0 (from 90.9) while the Briefing.com consensus expected an increase to 93.1
The August jump in confidence wiped away all of the discomfort from July and returned the index past June levels (99.8) to the highest mark since January 2015
New home sales increased 5.4% in July to 507,000 from a downwardly revised 481,000 (from 482,000) while the Briefing.com consensus expected an increase to 511,000
After starting the year on a tear, new home sales have settled into a range of around 500,000 per month since March
The Case-Shiller 20-city Home Price Index for June rose 5.0% against a 5.1% increase expected by the Briefing.com consensus
This followed the previous month's increase of 4.9%
The FHFA Housing Price Index for June rose 0.2%, which followed a revised increase of 0.5% in May (from 0.4%)

Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET while July Durable Orders (Briefing.com consensus -0.6%) will be reported at 8:30 ET.

Nasdaq Composite -4.9% YTD
Russell 2000 -8.4% YTD
S&P 500 -9.3% YTD
Dow Jones Industrial Average -12.1% YTD

3:40 pm: [BRIEFING.COM]

The dollar index continued to trade in positive territory all day, which helped weigh on commodities
Following recent losses, commodities, as measured by the Bloomberg Commodity Index, are at a 16-year low
Oil prices remain a big story
Oil rallied this morning, but have since given back some. Oct crude finished today's pit session +2.8% at $39.32/barrel. In electronic trade, crude is at $39.05/barrel
In other energy, Sept nat gas rose +1.5% to $2.69/MMBtu today.
Precious metals lost out today, while copper futures rallied
Dec gold lost -1.3% today to end at $1138.90/oz, while Sept silver fell -0.5% to $14.65/oz
Sept copper gained +2.2% to $2.31/lb

2:55 pm:

[BRIEFING.COM] The S&P 500 (+1.7%) remains in the middle of its trading range with one hour left in today's session.

The benchmark index slipped to its current levels just after 13:30 ET and has traded in a tight range as investors remain uncertain about potential volatility ahead of the close. Nine sectors remain in the green with three groups-consumer discretionary (+2.5%), technology (+2.5%), and health care (+2.2%)-up more than 2.0% apiece.

Elsewhere, Treasuries have spent the day in a steady retreat, hitting new lows not long ago with the 10-yr yield higher by 13 basis points at 2.13%.

2:25 pm:

[BRIEFING.COM] The S&P 500 trades higher by 1.5%, which puts the benchmark index right in the middle of today's trading range.

With the market pulling back from its high, the next 90 minutes will be watched very closely by participants who remain unsure about the strength of today's rebound. If the market experiences continued profit taking, many investors who got back into the fold this morning will feel compelled to cut their losses rather than face the possibility of being caught in a bad position in the event of more volatility overnight and tomorrow. Conversely, a charge towards today's session high would likely be viewed as an encouraging development that could invite new buyers.

Nine sectors continue holding gains while the utilities space has extended its decline to 1.2%.

1:55 pm: [BRIEFING.COM] The major averages remain near their recent levels with the S&P 500 trading in the middle of today's range.

In economic news, new home sales managed to rebound in July. Overall trends, however, remain flat.

New home sales increased 5.4% in July to 507,000 from a downwardly revised 481,000 (from 482,000) in June. The Briefing.com Consensus expected new home sales to increase to 511,000.

After starting the year on a tear, new home sales have settled into a range of around 500,000 per month since March. That's way up from the 437,000 homes sold in 2014, but we are not seeing an acceleration in demand trends that a recovering market would have expected by now.

1:35 pm:

[BRIEFING.COM] The major U.S. indices continue to surrender earlier gains, but still sit comfortable in positive territory.

A look inside the Dow Jones Industrial Average shows that Apple (AAPL 107.55, +4.43), JPMorgan (JPM 62.23, +1.98), and Walt Disney (DIS 98.26, +2.90) are outperforming. These three top Dow gainers were all beneficiaries of upgrades this morning; Apple to Buy at Wells Fargo, JPM to Buy at Credit Agricole, and Disney to to Buy from Long-term Buy at Hilliard Lyons.

Conversely, Merck & Co (MRK 53.28, -0.71) is the worst-performing Dow component, underperforming the Dow and its health care peers.

For the week, the DJIA is down 2.2% and over 9% in August.

In other developments, the $26 bln 2-year auction at the top of the hour drew a high yield of 0.663% on a bid-to-cover of 3.16.

12:55 pm:

[BRIEFING.COM] The major averages sport solid midday gains with the Nasdaq Composite (+3.3%) trading ahead of the S&P 500 (+2.3%). Thanks to the opening surge, the S&P 500 has narrowed this week's loss to 1.8% while the Nasdaq remains lower by 0.6% for the week.

Equity indices soared out of the gate after most global stock markets rebounded from yesterday's plunge. Interestingly, China's Shanghai Composite (-7.6%) failed to join the global rebound, but the focus will be on the index tonight considering the People's Bank of China cut its main lending rate 25 basis points to 4.6% and lowered its reserve requirement ratio 50 basis points to 18.0% this morning.
Related Quotes

The announcement from the PBoC took place shortly after 6:00 ET, and sent U.S. futures to new pre-market highs. Once the market opened, the Nasdaq Composite paced the early spike thanks to relative strength in the technology sector (+3.2%).

The top-weighted tech sector remains in the lead with the likes of Apple (AAPL 108.96, +5.84), Google (GOOGL 644.28, +26.17), and Facebook (FB 86.71, +4.62) up between 4.2% and 5.7%. Meanwhile, high-beta chipmakers have also made a contribution with the PHLX Semiconductor Index trading higher by 2.7%.

Similar to technology, heavily-weighted consumer discretionary (+3.0%) and health care (+2.5%) sectors also trade ahead of the broader market while most other groups show slimmer gains. On the downside, the utilities sector (-0.8%) has retreated due to higher market rates reducing the relative attractiveness of high-yielding utility names. To that point, the 10-yr note has notched a fresh low not long ago with its yield up 11 basis points at 2.12%.

Although today's main focus has been on the broad market, investors have received a couple quarterly reports that are worth pointing out. Specifically, Best Buy (BBY 33.80, +4.53) has soared 15.5% after beating earnings and revenue estimates while Toll Brothers (TOL 37.90, -0.16) is lower by 0.4% in reaction to below-consensus earnings and revenue.

Economic data included Consumer Confidence, New Home Sales, Case-Shiller 20-city Index, and FHFA Housing Price Index:

The Conference Board's Consumer Confidence Index increased to 101.5 in August from an upwardly revised 91.0 (from 90.9) while the Briefing.com consensus expected an increase to 93.1
The August jump in confidence wiped away all of the discomfort from July and returned the index past June levels (99.8) to the highest mark since January 2015
New home sales increased 5.4% in July to 507,000 from a downwardly revised 481,000 (from 482,000) while the Briefing.com consensus expected an increase to 511,000
After starting the year on a tear, new home sales have settled into a range of around 500,000 per month since March
The Case-Shiller 20-city Home Price Index for June rose 5.0% against a 5.1% increase expected by the Briefing.com consensus
This followed the previous month's increase of 4.9%
The FHFA Housing Price Index for June rose 0.2%, which followed a revised increase of 0.5% in May (from 0.4%)

12:25 pm:

[BRIEFING.COM] Sideways action continues with the S&P 500 (+2.3%) having spent the past hour in an 18-point range just below its session high.

Typically, it wouldn't be surprising to see the market spend an entire day or even week inside an 18-point range during late August; however, the past two weeks have seen considerable volatility amid concerns about the pace of economic growth in China and elsewhere. Yesterday, the CBOE Volatility Index (VIX 29.06, -11.68) rocketed above levels last seen during the May 2010 flash crash, but the index has retraced the bulk of that move, hovering near the 29.00% level today after ending last week near 28.00%.

Elsewhere, Treasuries have continued their retreat with the 10-yr yield up 11 basis points at 2.12%.

11:55 am:

[BRIEFING.COM] Not much change in the market as the key indices continue bouncing inside relatively narrow ranges just below their session highs. The S&P 500 is higher by 2.5%, but despite today's spike, the index remains on track to end August with a 7.8% decline.

Similar to the S&P 500, all ten sectors are on course to end the month in the red with losses ranging between 2.4% (utilities) and 11.9% (energy). Interestingly, the utilities sector has had the best showing this month, but the countercyclical group underperforms today, trading lower by 0.6%, as higher Treasury yields (10-yr yield +9 bps at 2.10%) take some luster off high-yielding utility stocks.

Elsewhere among countercyclical sectors, consumer staples (+1.9%) and telecom services (+0.8%) also underperform while the health care sector (+2.8%) outperforms.

11:30 am:

[BRIEFING.COM] Recent action saw the S&P 500 (+2.5%) extend to a fresh session high while the Nasdaq (+3.2%) has returned to its opening high.

Yesterday's broad-based plunge occurred amid a 1.7% drop in the Dollar Index as many investors unwound their euro-based and yen-based carry trades; however, the dollar has rocketed back today, evidenced by a 1.4% spike in the Dollar Index (94.62, +1.29). Most notably, the euro has retreated 1.6% against the dollar (1.1410), erasing all but a few pips of its gain from yesterday.

Elsewhere, the greenback has rallied 1.1% against the yen (119.94), wiping out roughly half of yesterday's 360-pip loss.

On a related note, Treasuries have slid to new lows, pushing the 10-yr yield up to 2.10 (+9 bps).

10:55 am:

[BRIEFING.COM] Equity indices remain near their opening highs with the Nasdaq Composite (+2.7%) holding posture ahead of the S&P 500 (+2.1%).

The past hour has been relatively quiet with the key indices ranging just below their early highs. All ten sectors have spent the early action in positive territory with the top-weighted technology sector (+2.7%) holding the lead.

Large cap tech names have underpinned the sector while high-beta stocks have also contributed to the strength. Apple (AAPL 108.21, +5.09) has spiked 4.9% while the PHLX Semiconductor Index trades higher by 2.5% with 29 of its 30 components in the green.

Thanks to today's advance, the tech sector has narrowed this week's loss to 0.8%, which puts the sector ahead of the remaining nine groups.

10:40 am: [BRIEFING.COM]

The dollar index traded positive overnight, seeing relief from yesterday's rout, as China announced that it would cut its main interest rate.
The stimulative move by the PBOC has given the index momentum to extend strong gains, which is only putting modest pressure on commodities so far this morning.
Following a strong US Consumer Confidence reading and in-line New Home Sales data released this morning, the index is now +1% to 94.30
Oil has also rebounded from lows made yesterday, as a potential increase in Chinese demand and valuations near 6 year lows, lifted WTI early to near the $39.8/barrel level.
Crude has since pulled back from that high, but continues to hold strong gains at +2.4% to $39.17/barrel
Precious metals have been trading negative so far today, as risk-on trade flows and a stronger dollar have pressed both metals below the flat-line.
Gold is now trending just above its LoD, at -1.5% to $1136.60/oz while silver is -1.1% to $14.60/oz
Copper is trading significantly above the unchanged mark, at +1.5% to $2.29/lb, as the Chinese rate cut has the market more bullish on demand for the metal.
Natural Gas is +0.6% to $2.67/MMBtu

10:00 am:

[BRIEFING.COM] The S&P 500 trades higher by 2.1%.

Just released, the consumer confidence reading for August came in at 101.5, while economists polled by Briefing.com expected the survey to hit 93.1. This followed the prior month's revised reading of 91.0 (from 90.9).

New home sales in July hit an annualized rate of 507,000, which was up from the revised June rate of 481,000 (from 482,000), but worse than the rate of 511,000 that had been broadly expected by the Briefing.com consensus.

9:45 am:

[BRIEFING.COM] Equity indices have spiked out of the gate with the Nasdaq Composite (+2.6%) pacing the early strength. Meanwhile, the S&P 500 is higher by 2.1% with the technology sector (+2.6%) trading ahead of the remaining nine sectors.

The early strength has helped the key indices erase a portion of yesterday's losses. The S&P 500 has narrowed this week's loss to 1.6% while the Nasdaq Composite remains lower by 1.2% for the week.

Yesterday, there were fewer than 20 NYSE listings trading in the green during the initial minutes, but today, that dynamic has flipped. As a result, there are more than 2500 advancers at the NYSE at this time versus fewer than 200 decliners.

July New Home Sales (consensus 511K) and August Consumer Confidence (expected 93.1) will both be reported at 10:00 ET.

Treasuries remain near their session lows with the 10-yr yield up seven basis points at 2.08%.

9:15 am: [BRIEFING.COM] S&P futures vs fair value: +51.00. Nasdaq futures vs fair value: +127.20.

The stock market is on track for a sharply higher start as S&P 500 futures trade 51 points above fair value thanks to an overnight rally that was capped with a spike to pre-market highs shortly after 6:00 ET once the People's Bank of China cut its main lending rate 25 basis points to 4.6% and lowered its reserve requirement ratio 50 basis points to 18.0%. Chinese equities, however, have yet to respond to this move considering the announcement came down after the end of the Tuesday session, during which the Shanghai Composite fell 7.6%. Similar to the Shanghai Composite, Japan's Nikkei (-4.0%) ended the day in negative territory while most other regional indices posted gains while markets across Europe trade in the green.

Investors have received a couple data points this morning (FHFA Housing Price Index +0.2% and Case-Shiller 20-city Index +5.0%) and two more reports will be released after the start of the trading day. July New Home Sales (consensus 511K) and August Consumer Confidence (expected 93.1) will both be reported at 10:00 ET.

With the entire market set to bounce considerably, corporate news has been put on the backburner, but it is worth noting that Best Buy (BBY 33.661, +4.39) is on track to open higher by 15.0% after beating earnings and revenue estimates.

Treasuries hover in the red with the 10-yr yield up seven basis points at 2.08%.

9:00 am: [BRIEFING.COM] S&P futures vs fair value: +42.90. Nasdaq futures vs fair value: +113.30.

The S&P 500 futures trade 43 points above fair value.

The FHFA Housing Price Index for June rose 0.2%, which followed a revised increase of 0.5% in May (from 0.4%).

Separately, the Case-Shiller 20-city Home Price Index for June rose 5.0% against a 5.1% increase expected by the Briefing.com consensus. This followed the previous month's increase of 4.9%.

8:29 am: [BRIEFING.COM] S&P futures vs fair value: +44.90. Nasdaq futures vs fair value: +117.80.

The S&P 500 futures trade 45 points above fair value.

The Shanghai Composite (-7.6%) and the Nikkei (-4.0%) had another rough outing on Tuesday, but strikingly, other markets in the Asia-Pacific region closed higher on some bargain-hunting interest following Monday's rout. Losses in China accelerated over the final two hours as investors rued the lack of any additional policy support to help prop up the market. After the close of trading, however, the PBOC announced a 25 basis point cut in its one-year lending and deposit rates, and a 50 basis point cut in its required reserve ratio.

In economic data:
Hong Kong's July Trade Balance -HKD28.4 bln (expected -HKD41.2 bln; prior -HKD45.8 bln) as Exports -1.6% month-over-month (expected -2.5%; prior -3.1%) and Imports -5.2% month-over-month (expected -2.7%; prior -2.0%)
New Zealand's Inflation expectations +1.9% quarter-over-quarter (prior +1.9%)
Australia's CB Leading Index -0.2% month-over-month (prior +0.2%)

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Japan's Nikkei declined 4.0% in a roller-coaster session that saw it drop big at the start of trading, rebound into negative territory, and then collapse over the final two hours. The material weakness was pinned on selling by foreign investors and a stronger yen hurting the nation's exporters. The consumer discretionary (-5.1%), materials (-4.1%), and industrials (-4.1%) sectors were the weakest areas. Sapporo Holdings (-9.3%), Nippon Kayaku (-8.0%), and Toho Zinc (-7.5%) were the worst-performing issues. Ricoh (+2.2%) and Sharp (+1.2%) led only a handful of stocks that closed with a gain. Out of the 225 index members, 5 ended higher and 220 finished lower.
Hong Kong's Hang Seng increased 0.7%, finishing on an upswing that ran in contrast to the late downswing in mainland markets. AIA Group (+5.0%), Tencent Holdings (+4.7%), and Hang Seng Bank (+3.9%) led the winners while Tingyi Cayman Islands Holdings (-5.1%), Cathay Pacific Airways (-3.6%), and China Shenhua Energy (-3.4%) paced the losers. Out of the 50 index members, 23 ended higher and 27 finished lower.
China's Shanghai Composite plunged another 7.6% with losses accelerating over the final two hours of trading as participants bailed out without any signs of policy support. A short time ago, however, the People's Bank of China laid some groundwork for a potential bounce back on Wednesday when it announced a 25 basis point cut in the one-year lending rate to 4.60%, a 25 basis point cut in the one-year deposit rate to 1.75%, and a 50 basis point reduction in the required reserve ratio to 18%.

Major European indices trade higher across the board with France's CAC (+4.5%) leading the rally. Elsewhere, Bundesbank member Joachim Nagel commented on China, saying he does expect the situation spreading to other regional economies since emerging markets are better positioned than they were in the 1990s.

Economic data was limited:
Germany's Q2 GDP +0.4% quarter-over-quarter; +1.6% year-over-year, as expected. Separately, August Ifo Business Climate Index 108.3 (expected 107.7; prior 108.0) as Current Assessment rose to 114.8 from 113.9 (consensus 113.9) while Business Expectations ticked down to 102.2 from 102.3 (expected 102.0)
Spain's PPI -1.3% year-over-year, as expected (prior -1.3%)

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UK's FTSE trades higher by 3.0% with all but one component trading in the green. Most miners appear among the leaders with Anglo American, Antofagasta, BHP Billiton, and Glencore up between 5.4% and 7.4% while Randgold Resources is lower by 0.3%
Germany's DAX has climbed 4.3% amid broad strength. Exporters BMW, Daimler, and Volkswagen are up between 5.6% and 6.5% while financials Commerzbank and Deutsche Bank are both up near 5.0%.
In France, the CAC has surged 4.5% with help from all 40 components. Peugeot and Renault are both up near 8.0% while Societe Generale and Credit Agricole hold respective gains of 6.1% and 5.3%.

7:55 am: [BRIEFING.COM] S&P futures vs fair value: +55.50. Nasdaq futures vs fair value: +145.40.

U.S. equity futures trade sharply higher following an overnight rally that boosted most global equity markets while China's Shanghai Composite remained pressured, falling 7.6%.

Domestically, the S&P 500 futures trade 56 points above fair value, spiking to highs within the past two hours after the People's Bank of China cut its main lending rate 25 basis points to 4.6% and lowered its reserve requirement ratio 50 basis points to 18.0%.

Treasuries hit their lows shortly after the news from China with the 10-yr yield spiking seven basis points to 2.08%.

The Case-Shiller 20-city Index for June (Briefing.com consensus 5.1%) and the June FHFA Housing Price Index will both be released at 9:00 ET while July New Home Sales (consensus 511K) and August Consumer Confidence (expected 93.1) will be reported at 10:00 ET.

In U.S. corporate news of note:

Best Buy (BBY 33.10, +3.83): +13.1% after beating earnings and revenue estimates
Toll Brothers (TOL 37.00, -1.06): -2.8% in reaction to below-consensus earnings and revenue.

Reviewing overnight developments:

Asian markets ended mixed. China's Shanghai Composite -7.6%, Japan's Nikkei -4.0%, and Hong Kong's Hang Seng +0.7%
In economic data:
Hong Kong's July Trade Balance -HKD28.4 bln (expected -HKD41.2 bln; prior -HKD45.8 bln) as Exports -1.6% month-over-month (expected -2.5%; prior -3.1%) and Imports -5.2% month-over-month (expected -2.7%; prior -2.0%)
New Zealand's Inflation expectations +1.9% quarter-over-quarter (prior +1.9%)
Australia's CB Leading Index -0.2% month-over-month (prior +0.2%)
In news:
China's Shanghai Composite was unable to take part in the rebound that saw most other regional markets post solid gains, but investors will keep a close eye on the Wednesday session to see how the market responds to a rate cut from the People's Bank of China

Major European indices trade higher across the board. UK's FTSE +3.4%, Germany's DAX +4.1%, and France's CAC +4.4%. Elsewhere, Italy's MIB +4.6% and Spain's IBEX +3.6%
Economic data was limited:
Germany's Q2 GDP +0.4% quarter-over-quarter; +1.6% year-over-year, as expected. Separately, August Ifo Business Climate Index 108.3 (expected 107.7; prior 108.0) as Current Assessment rose to 114.8 from 113.9 (consensus 113.9) while Business Expectations ticked down to 102.2 from 102.3 (expected 102.0)
Spain's PPI -1.3% year-over-year, as expected (prior -1.3%)
Among news of note:
Bundesbank member Joachim Nagel commented on China, saying he does expect the situation spreading to other regional economies since emerging markets are better positioned than they were in the 1990s

5:50 am: [BRIEFING.COM] S&P futures vs fair value: +43.00. Nasdaq futures vs fair value: +111.30.

5:50 am: [BRIEFING.COM] Nikkei...17806.70...-734.00...-4.00%. Hang Seng...21404.96...+153.40...+0.70%.

5:50 am: [BRIEFING.COM] FTSE...6061.59...+162.70...+2.80%. DAX...9963.05...+314.60...+3.30%.

Special thanks to Bloomberg, Briefing, Reuters and Yahoo! Finance for their market summaries. gm

Best Regards,
M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
Image@ http://twitter.com/wrbtrader Image@ http://stocktwits.com/wrbtrader

http://www.thestrategylab.com
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