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 Post subject: October 23rd Friday Trade Results - Profit $2250.00
PostPosted: Fri Oct 23, 2015 6:17 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 @ $2250.00 dollars or +45.00 points, Light Crude Oil CL ($CL_F) futures @ $0.00 dollars or +0.00 points, Gold GC ($GC_F) futures @ $0.00 dollars or +0.00 points and EuroFX 6E ($6E_F) futures @ $0.00 dollars or +0.0000 ticks. Total Profit @ $2250.00 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=148&t=2201

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 Daily Trading Plan Routine @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=274&t=2910 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] The stock market ended the week on an upbeat note thanks to an opening spike that was extended during afternoon action. The S&P 500 jumped 1.1%, extending its weekly gain to 2.1%, while the Nasdaq surged 2.3% to end the week higher by 3.0%.

Quarterly earnings released last evening ensured a higher start for the major averages while a surprise rate cut from the People's Bank of China supercharged the opening move higher. Specifically, the central bank lowered its one-year lending rate by 25 basis points to 4.35% and cut its reserve requirement ratio by 50 basis points for qualifying institutions, representing the sixth rate cut since November. With most of the action taking place before the opening bell, stocks drifted near their highs into the afternoon, building on their gains during the final hour of action.

Last evening, Alphabet (GOOGL 719.33, +38.19), Amazon (AMZN 599.03, +35.12), and Microsoft (MSFT 53.03, +5.00) delivered better than expected quarterly earnings, setting the stage for today's rally.

Alphabet and Microsoft helped the technology sector (+3.1%) spend the day well ahead of its peers while Amazon's strength helped the discretionary sector (+0.4%) end the day in positive territory even as apparel retailers struggled across the board. Retailers slumped in sympathy with Skechers (SKX 31.65, -14.54) and V.F. Corp (VFC 63.75, -9.46) after both companies reported disappointing results. The two names posted respective losses of 31.5% and 12.9% while SPDR S&P Retail ETF (XRT 44.99, -0.63) fell 1.4%.

Similar to the discretionary sector, seven other groups ended the day behind the broader market while health care (+2.0%) outperformed thanks to a rebound in biotechnology as the iShares Nasdaq Biotechnology ETF (IBB 316.28, +10.17) spiked 3.3%.

Although the market ended well above its flat line, it is worth noting that only 59.0% of NYSE-listed issues posted gains, suggesting the presence of some softness beneath a seemingly strong surface. To that point, investors used today's strength to increase their hedges, evidenced by the CBOE Volatility Index (VIX 14.40, -0.05), which essentially held its ground.

On the downside, the energy sector (-0.2%) struggled as crude oil lost 1.8%, falling to $44.59/bbl. For the week, the energy sector surrendered 1.0% while WTI crude fell 5.7%.

Elsewhere, the utilities sector (-1.8%) ended at the bottom of the leaderboard as higher Treasury yields reduced the relative attractiveness of high-yielding utility names.

Speaking of Treasuries, the 10-yr note notched its low during morning action and hovered near its low into the close with the 10-yr yield rising six basis points to 2.09%.

On a related note, the Dollar Index (97.18, +0.80) spiked in reaction to the news from China, extending its advance into the close to end higher by 0.8%.

Investors did not receive any economic data today while Monday's data will be limited to the 10:00 ET release of the September New Home Sales report (Briefing.com consensus 550K).

Nasdaq Composite +6.3% YTD
S&P 500 +0.8% YTD
Dow Jones Industrial Average -1.0% YTD
Russell 2000 -3.2% YTD

Week in Review: S&P 500 Regains 100-Day Moving Average

The stock market began the trading week on a quiet note with the major averages spending the Monday session inside narrow ranges. The S&P 500 settled just above its flat line after climbing off its opening low while the Nasdaq Composite (+0.4%) outperformed. In some ways, the range-bound action was a bit of a surprise considering investors received China's Q3 GDP report over the weekend. The growth report proved to be a mixed bag as GDP beat estimates (+6.9%; consensus 6.8%), but dipped below the official target growth rate of 7.0% year-over-year. Asian markets took the data in stride with China's Shanghai Composite and Hong Kong's Hang Seng both ending flat; however, the slowdown in the year-over-year growth rate weighed on commodities, sending crude oil lower by 3.0% to $45.90/bbl. The sell-off in crude oil futures pressured the energy sector (-2.0%) while a major sector component-Halliburton (HAL 37.36, -0.45)-lost 1.2% in reaction to better than expected earnings on below-consensus revenue.

Tuesday also ended on a quiet note after the market spent the session inside a narrow trading range. The S&P 500 shed 0.1% while the Nasdaq Composite (-0.5%) underperformed throughout the day. The Tuesday affair was very quiet with the S&P 500 spending the majority of the session near its flat line. The benchmark index opened with a modest loss and rallied into the green during morning action, but could not climb above its 100-day moving average (2,039), which served as resistance. The index followed that short-lived rally with a return into the red, where it settled for the day. Six sectors ended the day with gains, but top-weighted technology (-0.3%) and health care (-1.5%) struggled, which kept the market under pressure. Notably, the technology sector could not overcome the relative weakness in the shares of IBM (IBM 140.68, -8.54) after Big Blue reported below-consensus revenue and lowered its guidance, which overshadowed a bottom-line beat.

Equities ended Wednesday on a lower note after enduring a shaky session. The S&P 500 lost 0.6% after failing to overtake its 100-day moving average (2,038) for the second day in a row. Meanwhile, the Nasdaq Composite (-0.8%) underperformed and the Dow Jones Industrial Average (-0.3%) displayed relative strength. Stocks began the day with modest gains, but the S&P 500 notched its high during the opening minutes of the session and returned to its flat line in short order. The index traded just above the unchanged level into the afternoon, but slid to lows shortly after 13:00 ET. The S&P 500 staged a late charge to its flat line, but could not overtake that level, dropping to a new low instead. Although the market spent another day inside a relatively narrow range (21 S&P points), the same could not be said about the health care sector, which ended lower by 0.9% after showing a 1.0% gain at the start that briefly morphed into a 2.5% decline. The intraday volatility was brought on by a swoon in the biotech space after Citron Research published a report on Valeant Pharmaceuticals (VRX 118.61, -28.13), calling into question the company's relationship with Philidor RX, which is a specialty pharmacy.

Thursday proved to be a running of the bulls with "re-examine" representing the trigger that sparked the charge. The S&P 500 soared 1.7%, overtaking its 100-day moving average (2,038) in the process. The benchmark index settled near its best level of the day, registering its first close above the 100-day average since August 17, as hopes for more stimulus overshadowed mixed corporate earnings. The stock market was off to the races after equity futures revved higher an hour before the opening bell. The pre-market activity took place in response to comments from European Central Bank President Mario Draghi, who addressed the media following the latest ECB policy meeting. During his press conference, Mr. Draghi said that the central bank will "re-examine" its asset purchases at the December meeting. This was immediately interpreted as a harbinger of more monetary easing in the near future, sending the euro lower while European equities and U.S. futures spiked. Those moves accelerated after Mr. Draghi revealed that the governing council had discussed lowering the deposit facility rate at today's policy meeting. Markets in France, Germany, Spain, and Italy jumped between 2.0% and 2.5% while the euro slid throughout the session to 1.1110 against the dollar after trading just above 1.1300 prior to Mario Draghi's press conference. As a result, the Dollar Index (96.44, +1.37) spiked 1.4%, returning to levels last seen in late September.

3:40 pm: [BRIEFING.COM]

Strength in dollar index continues to weigh on commodity prices
Metals sold off earlier and largely held losses
Dec gold ended today's session -0.3% at $1162.90/oz, while Dec silver -0.1% at $15.82/oz
Dec copper is still near today's low and finished the session -1.3% at $2.35/lb
Energy fell some pain today too
Dec crude dropped -1.8% to close at $44.59/barrel, while natural gas really took a hit, losing -4.2% to $2.28/MMBtu

2:55 pm:

[BRIEFING.COM] The S&P 500 trades higher by 1.3% with one hour remaining in the Friday session. Given its current level, the S&P 500 is on track to end the week higher by 2.3% versus a 3.3% spike in the Nasdaq Composite (+2.6%).

Seven sectors are on track to register weekly gains between 1.7% (telecom services and consumer discretionary) and 5.1% (technology) while three groups are on track to post losses. The energy sector (-0.2%) has given up 1.0% this week while health care (+2.5%) and utilities (-1.5%) show losses close to 0.2% apiece.

Meanwhile, Treasuries have retreated this week with the 10-yr yield rising from 2.02% to 2.09%. This puts the benchmark yield back at levels last seen during the first half of October.

2:25 pm:

[BRIEFING.COM] Equity indices hover near their best levels of the session as the quiet afternoon continues. The S&P 500 trades up 1.1% while the Nasdaq has extended its gain to 2.3%.

Although stocks have spent the day inside relatively narrow ranges near their highs, that has not been the case with the Dollar Index (97.13, +0.76), which has climbed throughout the day. The index traded near its flat line prior to the easing news from the People's Bank of China, but that news sparked a rally in the greenback, which has the Dollar Index trading higher by 0.8% at this juncture. Thanks to today's spike, the index is on track to end the week higher by 2.8% after returning to levels last seen in early August.

On a related note, Treasuries remain near their lows with the 10-yr yield up six basis points at 2.09%.

1:55 pm:

[BRIEFING.COM] The major averages have returned to their session highs.

After a strong positive surprise in existing home sales, we look forward to next week where we look for more good news in the new home sector.

New home sales increased 5.7% in August to 552,000 from 522,000 in July.

That was the most new home sold since February 2008 when 593,000 homes were sold.

According to the latest home builder survey, demand conditions continued to strengthen over the last few months. That would normally suggest continued gains in new home sales.

1:35 pm:

[BRIEFING.COM] The major U.S. indices continue to trade sharply higher, helped by strong tech earnings, which has the Nasdaq up over 2%.
Related Quotes

A look inside the Dow Jones Industrial Average shows Microsoft (MSFT 52.99, +4.96), Procter & Gamble (PG 77.28, +2.43), and Apple (AAPL 118.66, +3.16) are outperforming. Microsoft shares are at 15 year highs after beating Q1 expectations on both the top and bottom line and providing upside Fiscal Q2 revenue guidance. The strong report garnered a wave of positive analyst comments. P&G also reported earnings, in which it missed top line expectations but beat bottom line estimates and reaffirmed its FY16 guidance. Apple shares are higher as a symptom of the strong tech earnings as well as being upgraded to Buy at Maxim Group ahead of next week's earnings.

Conversely, Nike (NKE 130.22, -2.19) is the worst-performing Dow component amid weak earnings from footwear peers VF Corp and Skechers.

With today's rally, the DJIA is set to close the week higher by 2.3%.

12:55 pm:

[BRIEFING.COM] The major averages hold solid midday gains, but they have backed away from their opening highs. The Nasdaq Composite (+2.0%) has held the lead since the opening bell while the S&P 500 (+0.8%) underperforms.

Equity indices surged out of the gate thanks to a mix of supportive factors that included better than expected earnings from a few large players combined with more monetary easing from the People's Bank of China.

On the earnings front, heavyweights Alphabet (GOOGL 734.95, +53.81), Amazon (AMZN 601.57, +37.66), and Microsoft (MSFT 52.92, +4.89) beat their respective results last evening, which sparked a rally in equity futures. Futures held those gains through the night, extending their advance this morning after the People's Bank of China lowered its one-year lending rate by 25 basis points to 4.35% and cut its reserve requirement ratio by 50 basis points for qualifying institutions.

The news from China ensured a sharply higher start, but the market has not been able to build on the opening surge. Instead, stocks have drifted back from their highs with the S&P 500 surrendering about a third of its opening advance. Still, the benchmark index remains on track to end the week higher by 1.8%.

Six sectors display midday gains with technology (+3.0%) trading well ahead thanks to the strong response to quarterly earnings from Alphabet and Microsoft. Meanwhile, the health care sector (+1.8%) is the only other group that trades ahead of the broader market. Biotechnology has contributed to the strength in health care, evidenced by a 2.2% spike in iShares Nasdaq Biotechnology ETF (IBB 312.61, +6.50).

Elsewhere, the discretionary sector (unch) sits right above its flat line despite a 6.8% surge in the shares of Amazon. That strength has been offset by broad-based losses among apparel retailers after V.F. Corp (VFC 63.37, -9.84) reported disappointing results and guided below analyst expectations. Shares of VFC have tumbled 13.5% while the SPDR S&P Retail ETF (XRT 44.66, -0.96) has surrendered 2.1%.

Treasuries have spent the day near their lows notched in early morning action with the 10-yr yield up five basis points at 2.08%.

Investors did not receive any economic data today.

12:25 pm:

[BRIEFING.COM] Equity indices remain near their recent levels with the S&P 500 (+0.7%) trading right above the midpoint of today's trading range.

Heavily-weighted technology (+2.8%) and health care (+1.2%) remain well ahead of the broader market while the remaining advancers sport gains slimmer than 0.4%. Furthermore, the solid gain in the benchmark index masks the fact that there are just 1.1 NYSE-listed issues trading in the green for each decliner, suggesting a large portion of today's advance is due to the relative strength in heavyweight names like Alphabet (GOOGL 733.45, +52.31), Amazon (AMZN 603.40, +39.49), and Microsoft (MSFT 52.90, +4.87).

This dynamic has not gone unnoticed by market participants as the CBOE Volatility Index (VIX 14.93, +0.48) trades higher by 3.3%, suggesting investors have taken advantage of today's rally to increase their hedges.

11:55 am:

[BRIEFING.COM] Equity indices have continued their slow pullback from session highs, but the S&P 500 (+0.7%) remains higher by 14 points after surrendering 11 points over the past two hours.

As mentioned in our earlier updates, sectors other than technology (+2.7%) and health care (+1.1%) have displayed relative strength since the start while the remaining groups trade much closer to their flat lines. Notably, the industrial sector (-0.2%) has dipped into negative territory not long ago with top-weighted components like Boeing (BA 145.68, -0.63) and General Electric (GE 29.51, -0.07) lower by 0.4% and 0.2%, respectively.

On a separate note, Treasuries remain just above their lowest levels of the day with the 10-yr yield up five basis points at 2.08%.

11:25 am:

[BRIEFING.COM] Recent action saw the S&P 500 slowly backing away from its session high, but the index remains up 0.8%.

The technology sector seized the lead at the start and the influential group remains well ahead of the broader market with Alphabet (GOOGL 734.89, +53.75) and Microsoft (MSFT 52.97, +4.94) holding respective gains of 7.8% and 10.3%.

Elsewhere, Amazon (AMZN 604.42, +40.51) trades up 7.2%, but the broader consumer discretionary sector (+0.2%) underperforms due to significant weakness among apparel retailers after V.F. Corp (VFC 65.33, -7.88) reported disappointing results and guided below analyst expectations.

10:55 am:

[BRIEFING.COM] Equity indices continue cruising near their early highs with the Nasdaq Composite (+1.9%) remaining well ahead of the S&P 500 (+1.0%).

Although the market holds a solid gain, it is worth noting that only three sectors-technology (+2.8%), health care (+1.3%), and materials (+1.1%)-display relative strength at this juncture while the remaining groups underperform, suggesting the market may be a bit overextended on a short-term basis. To that point, the S&P 500 is now up 2.0% for the week with the entire gain coming over the past two sessions.

On the downside, the consumer staples sector (-0.4%) has retreated, joining the utilities sector (-0.7%) in negative territory.

10:35 am: [BRIEFING.COM]

The dollar trended slightly negative in overnight trade, before spiking higher on news of stimulus out of the People's Bank of China
The bank announced that it will cut is benchmark rate by 25 bps and lower its reserve requirement
The stimulus news initially gave commodities like WTI and copper a tailwind higher, but a stronger dollar has since paired all of those early gains
The index has continued to extend its rally and is now near its HoD at +0.6% to 97.04
WTI traded modestly positive overnight, amidst positive sentiment from ECB monetary policy commentary (out earlier in the week) and following a stronger-than-expected Manufacturing PMI figure out of Japan (52.5 vs. 51 prior).
The commodity rose on the news of Chinese stimulus measures, but quickly gave up all of its gains in the face of dollar headwinds and is now trading at strong losses
December crude is now -1.2% to $44.84/barrel
Natural gas is trading at losses for the session, testing lows near $2.32/MMBtu at one point this morning, on yesterday's inventory build and warmer weather forecasts
November nat gas is currently -2.2% to $2.33/MMBtu
Metals are trading broadly lower, with gold at -0.2% to $1163.70/oz and silver at -0.1% to $15.83/oz. Copper is booking strong losses, highlighted by news that OZ Minerals (the 3rd largest copper miner in AUS) plans on increasing production by 20% this year. Copper is now -1% to $2.36/lb

9:55 am:

[BRIEFING.COM] Equity indices have added to their early gains with the S&P 500 now up 1.2%.

Eight sectors remain in the green while utilities (-0.5%) and energy (-0.7%) underperform. Notably, the energy sector lags amid a 2.3% decline in crude oil, which has retreated to $44.31/bbl.

Thanks to the early rally, the S&P 500 is now up 2.1% for the week while the Nasdaq Composite has spiked 2.8% since last Friday.

9:35 am:

[BRIEFING.COM] As expected, the major averages have spiked out of the gate with the Nasdaq Composite (+1.9%) pacing the opening move while the S&P 500 (+0.9%) follows behind. Thanks to the opening surge, the S&P 500 has now turned positive for the year (+0.6% year-to-date).

Eight sectors display early gains with technology (+2.6%) in the lead while the discretionary sector (+1.1%) also shows relative strength. Meanwhile, the remaining groups show gains slimmer than 1.0% while energy (-0.6%) and utilities (-0.3%) trade in the red.

Elsewhere, Treasuries remain near their lows with the 10-yr yield up five basis points at 2.08%.

9:13 am: [BRIEFING.COM] S&P futures vs fair value: +22.40. Nasdaq futures vs fair value: +122.00.

The stock market is on track for a sharply higher start thanks to a combination of better than expected earnings from a few major names and recent news of more monetary easing from the People's Bank of China. The S&P 500 futures trade 22 points above fair value while Nasdaq futures have surged more than 100 points against fair value.

Starting with earnings, heavily-weighted names like Alphabet (GOOGL 751.05, +69.91), Amazon (AMZN 618.50, +54.59), and Microsoft (MSFT 52.86, +4.83) are all tracking opening gains of close to 10.0% after beating their respective estimates. That trio underpinned the overnight rally, which saw an extension to new highs shortly before 7:30 ET once it was reported that the People's Bank of China lowered its one-year lending rate by 25 basis points to 4.35% while also cutting its reserve requirement ratio by 50 basis points for qualifying institutions.

The news from China has been met with a spike in the dollar as the greenback extends yesterday's surge. Including its current 0.5% gain, the Dollar Index (96.83, +0.45) is now up 2.5% for the week.

Elsewhere, Treasuries sit on their lows with the 10-yr yield higher by six basis points at 2.09%.

8:56 am: [BRIEFING.COM] S&P futures vs fair value: +24.30. Nasdaq futures vs fair value: +121.10.

The S&P 500 futures trade 24 points above fair value.

With Wall Street and Europe stringing together a big rally on Thursday, aided by the idea the ECB hinted at the prospect of providing more policy stimulus, it should come as little surprise to hear that markets in the Asia-Pacific region were up across the board on Friday. The biggest headline of the day, however, came after markets closed. To that end, the People's Bank of China announced a 25 basis point cut in its one-year lending rate to 4.35% and a 50 basis point cut in the required reserve ratio for qualifying institutions. Participants will have that to think about over the weekend.

In economic data:
China's September House Prices -0.9% year-over-year (prior -2.3%)
Japan's preliminary October Manufacturing PMI 52.5 (expected 50.6; prior 51.0) and Leading Index held at 103.5, as expected
South Korea's preliminary Q3 GDP +1.2% quarter-over-quarter (expected 1.0%; prior 0.3%); +2.6% year-over-year (consensus 2.5%; last 2.2%)
Singapore's September CPI -0.6% year-over-year (consensus -0.7%; prior -0.8%)

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Japan's Nikkei increased 2.1%, making the most of the carryover from Wall Street's strong showing on Thursday and the pleasant thought of the ECB hinting it will soon be providing more policy stimulus. All sectors advanced, paced by the financials (+2.5%, industrials (+2.3%), and consumer discretionary (+2.3%) sectors. Sumitomo Heavy Industries (+5.5%, Taiyo Yuden (+5.0%), and Unitika (+4.9%) led the gainers while Kuraray Co (-4.1%) and Chugai Pharmaceutical (-2.0%) led a small group of losers. Out of the 225 index members, 209 ended higher, 12 finished lower, and 4 were unchanged. For the week the Nikkei increased 2.9%.
Hong Kong's Hang Seng jumped 1.3%, scoring the entirety of the gain at the open and then flatlining the rest of the session. The market was helped along by an encouraging home price report for mainland China. The top-performing issues were China Mengniu Dairy Co (+3.3%), Hang Lung Properties (+3.0%), and AIA Group (+3.0%). Belle International Holdings (-1.8%) and China Unicom Hong Kong (-1.2%) were the only stocks to lose more than 1.0%. Out of the 50 index members, 46 ended higher, 3 finished lower, and 1 was unchanged. For the week the Hang Seng increased 0.4%.
China's Shanghai Composite increased 1.3%, scoring all of its gains in the final two hours of trading action. The advance followed form with regional markets and was supported in part by some relatively pleasing home price data. After Friday's close, the PBOC announced a 25 basis point cut in its one-year lending rate to 4.35%, a 25 basis point cut in its one-year deposit rate to 1.50%, and an additional 50 basis point cut in the required reserve ratio for qualifying institutions. For the week, Shanghai 'A' shares increased 0.6% and Shanghai 'B' shares increased 1.0%.

Major European indices trade higher across the board with Germany's DAX (+3.1%) showing relative strength. On a separate note, the European Central Bank has released the results of its Q4 survey of professional forecasters, which lowered the harmonized inflation forecast for 2015 (0.1% from 0.2%), 2016 (1.0% from 1.3%), and 2017 (1.5% from 1.6%).

Investors received several data points:
Eurozone preliminary October Manufacturing PMI 52.0 (expected 51.7; prior 52.0) while preliminary October Services PMI 54.2 (expected 53.5; prior 53.7)
Germany's preliminary October Manufacturing PMI 51.6, as expected (prior 52.3) and preliminary October Services PMI 55.2 (consensus 53.9; last 54.1)
France's preliminary October Manufacturing PMI 50.7 (consensus 50.2; prior 50.6) and preliminary October Services PMI 52.3 (consensus 51.6; previous 51.9)
Italy's August Retail Sales +0.3% month-over-month, as expected (prior 0.3%); +1.3% year-over-year. Separately, August Industrial Sales -2.4% year-over-year and Wage Inflation +1.2% year-over-year (prior 1.2%)

------

UK's FTSE is higher by 1.4% with more than 90% of its components trading in the green. Aberdeen Asset Management, Travis Perkins, WPP, and Schroders lead with gains between 3.6% and 4.6%. On the downside, Pearson is lower by 4.8%, extending yesterday's struggle.
France's CAC trades up 2.8% with all but one component in the green. Kering has surged 8.2% in reaction to upbeat results while Airbus Group, Valeo, Schneider Electric, and Saint Gobain follow with gains between 4.7% and 5.0%.
Germany's DAX has spiked 3.1% with exporters contributing to the strength. BMW, Daimler, and Volkswagen have gained between 3.3% and 4.1%. On the downside, K+S is lower by 3.0%.

8:26 am: [BRIEFING.COM] S&P futures vs fair value: +23.40. Nasdaq futures vs fair value: +121.50.

Equity futures remain near their best levels of the morning with S&P 500 futures trading 23 points above fair value while Nasdaq futures outperform (+122 vs fair value) thanks to big pre-market gains in a few components that reported their earnings last evening.

Specifically, Alphabet (GOOGL 748.07, +66.93), Amazon (AMZN 618.54, +54.63), and Microsoft (MSFT 53.20, +5.17) are all tracking opening gains of 10.0%+ after beating their respective estimates.

The pre-market rally in equities has been accompanied by selling in the Treasury market with the 10-yr yield up four basis points at 2.07%.

8:00 am: [BRIEFING.COM] S&P futures vs fair value: +25.10. Nasdaq futures vs fair value: +132.90.

U.S. equity futures trade near their pre-market highs amid upbeat action overseas. The S&P 500 futures hover 25 points above fair value after hitting their highs within the past hour in reaction to a rate cut from the People's Bank of China. The central bank has lowered its one-year lending rate by 25 basis points to 4.35%, aiming to improve the transmission mechanism.

Meanwhile, Treasuries hold losses with the 10-yr yield up almost four basis points at 2.07%. Investors will not receive any economic data today.

In U.S. corporate news of note:

Alphabet (GOOGL 750.06, +68.92): +10.2% after beating earnings/revenue estimates and authorizing a $5 billion share buyback.
Amazon (AMZN 624.00, +60.09): +10.7% in reaction to better than expected operating income and sales.
Microsoft (MSFT 53.00, +4.97): +10.4% after beating earnings and revenue estimates.
American Airlines (AAL 47.74, +1.75): +3.8% in reaction to above-consensus results and a $2 billion share buyback.
Procter & Gamble (PG 76.00, +1.45): +1.9% following its bottom-line beat on below-consensus revenue.
AT&T (T 34.74, +0.78): +2.3% after beating bottom-line estimates on light revenue.
V.F. Corp (VFC 72.00, -1.21): -1.7% after missing estimates and guiding below consensus estimates.
Pandora Media (P 13.08, -6.11): -31.8% after below-consensus guidance overshadowed in-line results.

Reviewing overnight developments:

Asian markets ended higher. Japan's Nikkei +2.1%, Hong Kong's Hang Seng +1.3%, and China's Shanghai Composite +1.3%
In economic data:
China's September House Prices -0.9% year-over-year (prior -2.3%)
Japan's preliminary October Manufacturing PMI 52.5 (expected 50.6; prior 51.0) and Leading Index held at 103.5, as expected South Korea's preliminary Q3 GDP +1.2% quarter-over-quarter (expected 1.0%; prior 0.3%); +2.6% year-over-year (consensus 2.5%; last 2.2%)
Singapore's September CPI -0.6% year-over-year (consensus -0.7%; prior -0.8%)
In news:
China's House Prices fell on a year-over-year basis, but the month-over-month reading increased 0.3%, representing the fifth consecutive increase

Major European indices trade higher across the board. UK's FTSE +1.3%, France's CAC +2.5%, and Germany's DAX +2.9%. Elsewhere, Italy's MIB +0.8% and Spain's IBEX +1.7%
Investors received several data points:
Eurozone preliminary October Manufacturing PMI 52.0 (expected 51.7; prior 52.0) while preliminary October Services PMI 54.2 (expected 53.5; prior 53.7)
Germany's preliminary October Manufacturing PMI 51.6, as expected (prior 52.3) and preliminary October Services PMI 55.2 (consensus 53.9; last 54.1)
France's preliminary October Manufacturing PMI 50.7 (consensus 50.2; prior 50.6) and preliminary October Services PMI 52.3 (consensus 51.6; previous 51.9)
Italy's August Retail Sales +0.3% month-over-month, as expected (prior 0.3%); +1.3% year-over-year. Separately, August Industrial Sales -2.4% year-over-year and Wage Inflation +1.2% year-over-year (prior 1.2%)
Among news of note:
The European Central Bank released the results of its Q4 survey of professional forecasters, which lowered the harmonized inflation forecast for 2015 (0.1% from 0.2%), 2016 (1.0% from 1.3%), and 2017 (1.5% from 1.6%)

5:54 am: [BRIEFING.COM] S&P futures vs fair value: +15.00. Nasdaq futures vs fair value: +90.10.

5:54 am: [BRIEFING.COM] Nikkei...18825.30...+389.40...+2.10%. Hang Seng...23151.94...+306.60...+1.30%.

5:54 am: [BRIEFING.COM] FTSE...6424.81...+48.70...+0.80%. DAX...10635.59...+143.60...+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
Business Hours: 8am - 5pm est (Mon - Fri)
Skype Messenger: kebec2002
wrbanalysis@gmail.com


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