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 Post subject: December 11th Friday Trade Results - No Trades
PostPosted: Fri Dec 11, 2015 5:15 pm 
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Joined: Sat Jan 10, 2009 2:06 pm
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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)

Quote:
No trades today because of several personal appointments and family doctor/dental appointments.

Price Action Trade Performance for Today: Emini TF ($TF_F) futures @ $0.00 dollars or +0.00 points, Emini ES ($ES_F) futures @ $0.00 dollars or +0.00 points, Light Crude Oil CL ($CL_F) futures @ $0.00 dollars or +0.00 points, Gold GC ($GC_F) futures @ $0.00 dollars or +0.00 points and EuroFX 6E ($6E_F) futures @ $0.00 dollars or +0.0000 ticks. Total Profit @ $0.00 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=150&t=2241

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=278&t=2988 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.

Attachment:
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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 a defensive week on a woeful note with the S&P 500 (-1.9%) diving below its 100-day moving average (2,031). The benchmark index lost 3.8% since last Friday, while the Nasdaq (-2.2%) underperformed, falling 4.1% for the week.

The bulk of today's weakness unfolded during the first half of the day while afternoon action saw the key indices slip to fresh lows. The early weakness followed an overnight session, which featured news from China, indicating the People's Bank of China nudged the yuan to a four-year low against the dollar (6.4553). This stoked up concerns about China's deflation being exported to other economies while continued weakness in commodities compounded those worries.

Furthermore, reports of trouble in the junk bond arena weighed on sentiment after it came to light that Third Avenue Management is liquidating its high-yield Focused Credit Fund and barring investor withdrawals while it is doing so. This invited fears about other bond funds with similar exposure while junk bonds faced daylong pressure that sent the iShares iBoxx $ High Yield Corporate ETF (HYG 79.52, -1.62) to its lowest close since July 2009.

All ten sectors ended the day in negative territory and the market saw no dip-buying during the afternoon. To be fair, the lack of an afternoon rebound was not a shock considering the Federal Reserve is likely to introduce another wrinkle into the fold next week when the central bank is widely expected to announce the first fed funds rate hike since June 2006.

The continued weakness in commodity prices took its toll on cyclical energy (-3.4%) and materials (-2.7%) sectors. The energy space widened this week's loss to 6.5% while crude oil also struggled, falling 3.2% to $35.62/bbl, to end the week lower by 10.9%.

Meanwhile, the remaining cyclical sectors fared a bit better, but that was a small victory considering the "best" performing growth-sensitive sector still lost 1.6%. The industrial sector settled just a step ahead of the broader market thanks to strength in select railroad names after it was reported Berkshire Hathaway (BRK.B 130.31, -1.40) is considering a bid for Norfolk Southern (NSC 89.53, +1.85). On a related note, the Dow Jones Transportation Average ended in line with the S&P 500.

The 1.9% gain in the shares of NSC represented one of few bright spots in the market as declining issues at the NYSE outpaced advancers by a 7:1 margin.

Treasuries rallied throughout the day, ending on their highs with the 10-yr yield sliding ten basis points to 2.13%.

The Friday retreat invited above-average volume as nearly a billion shares changed hands at the NYSE floor.

Economic data included PPI, Retail Sales, Michigan Sentiment, and Business Inventories:

The Producer Price Index report for November produced some better than expected readings, with both total PPI and core PPI, which excludes food and energy, increasing 0.3%
The median estimate of economists polled by Briefing.com called for a 0.1% decline in total PPI and a 0.1% increase in core PPI
On a year-over-year basis, the index for final demand is down 1.1%, which is the tenth consecutive 12-month decline. Core PPI is up 0.5%
The November Retail Sales report showed a below-consensus increase of 0.2% (Briefing.com consensus +0.3%), yet sales excluding autos (+0.4%) were stronger than expected (Briefing.com consensus +0.3%) while core retail sales, which exclude autos, gasoline station, and building materials sales, were up a healthy 0.6%
Core retail sales factor into the goods component of personal consumption expenditures in the GDP report, so this November data can be thought of as a positive input
The preliminary reading for the University of Michigan Index of Consumer Sentiment for December was 91.8, which was up slightly from the final November reading of 91.3 and nearly matched the Briefing.com consensus estimate of 91.6
The improvement stemmed from a better feeling about current conditions, evidenced by a jump in the Current Economic Conditions Index to 107.0 from 104.3
Total business inventories were unchanged in October following a downwardly revised 0.1% increase (from 0.3%) in September
The Briefing.com consensus expected business inventories to be up 0.1%
Manufacturer inventories (-0.1%) and merchant wholesaler inventories (-0.1%) were already known. Retailer inventories were the only unknown and they increased 0.1% in October on top of a 0.8% increase in September

Investors will not receive any economic data on Monday.

Nasdaq Composite +4.2% YTD
S&P 500 -2.3% YTD
Dow Jones Industrial Average -3.1% YTD
Russell 2000 -6.6% YTD

Week in Review: Stocks and Commodities Slide

The major averages began the trading week on a cautious note with the Dow (-0.7%), Nasdaq (-0.8%), and S&P 500 (-0.7%) registering comparable losses. Equity indices retreated through the first two hours of the Monday session and the lack of intraday bargain hunting kept the key averages near their lows into the afternoon. The S&P 500 erased a third of its advance from Friday, but managed to settle above its 200-day moving average (2,065). Cyclical sectors were at the forefront of the retreat with energy (-3.7%) diving to the bottom of the leaderboard at the start of the trading day. The growth-sensitive group accelerated its slide during the late morning as crude oil cracked a new low for the year, dipping beneath the $38.00/bbl mark. The energy component settled lower by 5.9% at $37.63/bbl after sliding from its overnight high near $39.75/bbl.

The stock market endured a shaky session on Tuesday, but the key indices managed to recover a portion of their losses by the close. The S&P 500 settled in the middle of its trading range, surrendering 0.7%, while the Nasdaq Composite (-0.1%) outperformed throughout the day. Equities began the day under heavy pressure after the overnight session featured some disappointing economic data from China. Specifically, the country's November trade surplus narrowed to $54.10 billion from $61.64 billion (expected surplus of $63.30 billion) as exports fell 6.8% year-over-year (consensus -5.0%; previous -6.9%) and imports declined 8.7% (expected -12.6%; last -18.8%). The smaller than expected trade surplus re-invited the same global growth concerns that have been plaguing the market throughout the year. Accordingly, commodities retreated with crude oil falling more than 2.0% before pulling back. The energy component made a brief appearance in the green, but could not avoid a lower close, slipping 0.3% to $37.51/bbl after marking a session low near $36.64/bbl. The rebound in crude helped alleviate some of the pressure in the stock market, but the S&P 500 could not return above its 200-day moving average (2,064), which served as resistance.

On Wednesday, the market ended on a broadly lower note with the S&P 500 surrendering 0.8% after being up 0.8% in the early going. The benchmark index returned below its 200-day moving average (2,064) while the Nasdaq (-1.5%) underperformed throughout the day. The early portion of the midweek session appeared to have the makings of a rebound, but the opening strength was entirely due to significant gains in two commodity-related sectors. The materials space (+3.1%) ended comfortably in the lead after it was reported that Dow Chemical (DOW 56.97, +6.07) and DuPont (DD 74.49, +7.89) are in advanced merger talks. Both names surged 11.9% with DuPont's strength keeping the Dow ahead of the broader market.

Thursday ended on a higher note with the market putting an end to its three-day skid. The S&P 500 climbed 0.2%, but could not hold posture above its 50-day moving average (2,054). Meanwhile, the Dow (+0.5%) and Nasdaq (+0.4%) settled ahead of the benchmark index. The Thursday advance did not occur without some theatrics as the S&P 500 marked a morning high during the first 90 minutes of the day and followed that with a return to its flat line. The benchmark index charged to a fresh high in the early afternoon, but backtracked from that level to end in the lower third of today's range. Equity indices spent the first hour of action near their flat lines, but the energy sector (+0.6%) displayed relative strength from the start, which underpinned the advance. The sector narrowed this week's loss to 3.2%, ending in the lead even though crude oil fell 1.0% to $36.80/bbl. The energy component continued sliding in electronic trade, which forced some backtracking in the sector and the broader market.

3:30 pm: [BRIEFING.COM]

The dollar trended under pressure all session, with the index extending losses following a steep fall in morning trade. The index's initial fall came shortly after the release of relatively in-line US PPI, Retail Sales and Michigan Consumer sentiment data sets
Going into the commodity closes, the index held losses and is now -0.4% to 97.55
Gold saw a lift in early trade on the dollar's weakness, while silver caught little/no positive momentum from the move. Both commodities extended those trends throughout the session and into the close, with gold finishing +0.4% to $1076/oz and silver closing -1.6% to $13.90/oz
Crude broke below the $36/barrel level in mid-morning trade, following the release of an IEA forecast speculating that oversupply of crude would extend through late 2016.
Mid-day Baker Hughes rig count data did little to firm up WTI's weakness (showing a drop of 28 oil/natural gas rigs), and crude ended up closing -3.2% to $35.62/barrel
Natural gas closed at moderate losses, down 1.5% to $1.99/MMBtu following continued calls for warm weather patterns in the Midwest and NE US.
Copper closed +2.7% to $2.12/lb

3:00 pm:

[BRIEFING.COM] The Dow Jones Industrial Average (-1.5%) continues to lead the major indices while the S&P 500 (-1.6%) and Nasdaq (-1.8%) sport larges losses. Including today's decline, the Dow Jones Industrial average is leading the other indices on week to date performance showing a slightly narrower loss of 3.0% versus a 3.8% decline in the S&P 500.

Coming into the last hour of trading: utilities (UNCH), health care (-1.1%), industrials (-1.2%), and information technology (-1.6%) continue to outperform the broader market. On the bottom of the leaderboard energy (-2.8%) continues to trade near its lows with a week to date drop of 6.0%.

In Treasuries, the 10-yr note remains near its high with its yield down ten basis points at 2.14%.

2:30 pm:

[BRIEFING.COM] The major indexes continue to trade above their lows with the Dow Jones Industrial Average (-1.3%) leading the S&P 500 (-1.4%) and the Nasdaq (-1.5%).

On the top of the leaderboard, the utilities sector (UNCH) continues to flirt with its flat line as continued strength in Treasuries keeps the yield on the benchmark note at 2.14%.

Elsewhere, relative strength in railroads has kept the industrial sector (-1.1%) ahead of the broader market with Norfolk Southern (NSC 89.54 +1.86) climbing 2.1%.

2:00 pm:

[BRIEFING.COM] As afternoon trading continues, the major indices remain just above their lows. The Dow Jones Industrial Average (-1.4%) continues to lead the S&P 500 (-1.5%) with the Nasdaq (-1.7%) lagging behind.

The energy sector (-2.7%) continues to post the largest losses on the day. This continues to be led by the poor performance of WTI crude (-3.1%) knocking the price of the commodity down to $35.62/bbl.

In Treasuries, the 10-yr note has seen additional buying interest that has dropped the benchmark yield to 2.14% (-10 bps).

1:25 pm:

[BRIEFING.COM] Not much change in the market as the key indices languish near their session lows. The S&P 500 trades lower by 1.6% with nine sectors showing losses between 1.1% (consumer staples) and 2.8% (energy).

Including today's decline, the S&P 500 is on course to end the week lower by 3.4% while the ten economic sectors have given up between 1.6% (utilities) and 6.0% (energy).

Although the major averages sit near their lowest levels of the day, there has been some improvement in market breadth with six stocks trading in the red for each advancer after the ratio stood at 7:1 about 30 minutes ago.

12:55 pm:

[BRIEFING.COM] The major averages sit near their lows at midday after facing heavy selling pressure through the first half of the session. The Nasdaq (-2.1%) has paced the retreat while the Dow (-1.7%) and S&P 500 (-1.8%) trade a little ahead.

Overnight, the People's Bank of China took steps to weaken the yuan, sending the currency to a four-year low against the dollar (6.4553). This stoked up concerns about China's deflation being exported to other economies while continued weakness in commodities has not helped matters either.

In addition, the Wall Street Journal reported this morning that Third Avenue Management is liquidating its high-yield Focused Credit Fund and not permitting investor withdrawals while it is doing so. The article cites Third Avenue as saying poor bond market trading conditions have made it very difficult to raise cash to meet redemption requests without resorting to fire sales of assets. Junk bonds have been pressured in response with the iShares iBoxx $ High Yield Corporate ETF (HYG 79.11, -2.03) diving to its lowest level since October 2011.

All ten sectors trade in the red at midday with four heavily-weighted groups showing relative weakness. The energy sector (-3.1%) is the weakest performing group, extending this week's loss to 6.2%. On a related note, crude oil is down 3.3% at $35.56/bbl today and down 11.0% for the week.

Similar to energy, most cyclical sectors have struggled to keep pace with the market while the industrial sector (-1.4%) outperforms slightly thanks to strength among railroads after it was reported Berkshire Hathaway (BRK.B 130.17, -1.54) is considering a bid for Norfolk Southern (NSC 88.76, +1.08). Shares of NSC have climbed 1.2% while the broader Dow Jones Transportation Average trades down 1.7%.

Today's selling has been far-reaching with declining issues outpacing advancers by a 7-1 margin.

Treasuries have surged, sending the 10-yr yield lower by eight basis points to 2.15%.

Economic data included PPI, Retail Sales, Michigan Sentiment, and Business Inventories:
Related Quotes

The Producer Price Index report for November produced some better than expected readings, with both total PPI and core PPI, which excludes food and energy, increasing 0.3%
The median estimate of economists polled by Briefing.com called for a 0.1% decline in total PPI and a 0.1% increase in core PPI
On a year-over-year basis, the index for final demand is down 1.1%, which is the tenth consecutive 12-month decline. Core PPI is up 0.5%
The November Retail Sales report showed a below-consensus increase of 0.2% (Briefing.com consensus +0.3%), yet sales excluding autos (+0.4%) were stronger than expected (Briefing.com consensus +0.3%) while core retail sales, which exclude autos, gasoline station, and building materials sales, were up a healthy 0.6%
Core retail sales factor into the goods component of personal consumption expenditures in the GDP report, so this November data can be thought of as a positive input
The preliminary reading for the University of Michigan Index of Consumer Sentiment for December was 91.8, which was up slightly from the final November reading of 91.3 and nearly matched the Briefing.com consensus estimate of 91.6
The improvement stemmed from a better feeling about current conditions, evidenced by a jump in the Current Economic Conditions Index to 107.0 from 104.3
Total business inventories were unchanged in October following a downwardly revised 0.1% increase (from 0.3%) in September
The Briefing.com consensus expected business inventories to be up 0.1%
Manufacturer inventories (-0.1%) and merchant wholesaler inventories (-0.1%) were already known. Retailer inventories were the only unknown and they increased 0.1% in October on top of a 0.8% increase in September

12:25 pm:

[BRIEFING.COM] The major averages have notched new session lows with the Nasdaq now down 2.0% while the S&P 500 (-1.8%) trades just a bit ahead.

Investors have not been in a particular rush to buy today's dip, partly due to the jitters surrounding Third Avenue Management, which is a high-yield bond fund. This morning, the Wall Street Journal reported that the company has barred investors from withdrawals, which has stoked up concerns about other funds with similar exposure to high-yield debt. Accordingly, junk bonds have been pressured, evidenced by a 2.7% decline in the iShares iBoxx $ High Yield Corporate ETF (HYG 78.95, -2.20), which has tumbled to its lowest level since October 2011.

The broad-based retreat in equities has been met with increased demand for Treasuries. As a result, the 10-yr note trades on its high with the benchmark yield down seven basis points at 2.16%.

12:00 pm:

[BRIEFING.COM] The stock market remains near its session lows as afternoon trading begins. The Nasdaq (-1.5%) continues to underperform the Dow Jones Industrial Average (-1.4%) and the S&P 500 (-1.4%).

Contributing to the tech-heavy Nasdaq's poor performance is Apple's (AAPL 113.50, -2.67) substantial loss of 2.2%. This has also weighed on the technology sector (-1.4%), which sits near the bottom of the leaderboard, only ahead of the energy space (-2.6%) and consumer discretionary (-1.6%).

11:30 am:

[BRIEFING.COM] All the major indices continue to trade just above their session lows with the tech-heavy Nasdaq (-1.4%) underperforming the S&P 500 (-1.2%) and the Dow Jones Industrial Average (-1.1%).

The energy sector (-2.4%) remains at the bottom of the leaderboard and is pushing towards its low for the day. Meanwhile in commodities, oil teeters on the $36.00/bbl price level as it sees continued selling pressure. WTI crude is currently down 2.6% at $35.81/bbl.

In Treasuries, the yield on the 10-yr note remains near its lowest level, down six basis points at 2.17%.

11:00 am:

[BRIEFING.COM] All the major indices have pulled off their session lows, but remain well beneath their flat lines. The Dow Jones Industrial (-1.3%), Nasdaq (-1.4%), and S&P 500 (-1.3%) all sport comparable losses.

All ten sectors are in the red with the utilities sector (-0.1%) showing the slimmest loss on the day. It is worth noting that utilities have benefited from the recent demand increase in Treasuries. As a result, the yield on the benchmark 10-yr note has been pushed lower six basis points to 2.17% thus far today.

In company specific news, Yahoo (YHOO 33.34, -1.29) is down 3.5% on concerns over the tech company's potential plans to divest its interest in Yahoo Japan.

10:20 am: [BRIEFING.COM]

The dollar trended modestly negative in early trade ahead of the morning's US PPI and Retail Sales data sets.
November PPI came in at +0.3% (above the -0.1% consensus), while Retail Sales were slightly below estimates (+0.2% vs. +0.3% consensus)
Despite the relatively in-line data, the dollar saw a quick sell-off in trade directly following the release, and is now just above its LoD.
The index is now -0.2% to 97.71. Weakness in the dollar has been a primary driver of a modest rally in gold, which spiked higher following the US economic data. Silver meanwhile has failed to see a similar tailwind, and is now extending strong losses. Gold is currently +0.2% to $1073.40/oz and silver is -1.6% to $13.89/oz
Crude oil has trended negative all session, breaking below the $36.10 resistance level in early trade following the release of an IEA supply forecast.
The IEA speculated that oversupply of crude would extend through late 2016, with ongoing weak demand being a potential catalyst for weakness in prices
WTI has now fallen to near its LoD at -2.2% to $35.94/barrel
Natural gas futures are seeing strong losses, as yesterday's larger-than-expected draw has been overshadowed by forecasts calling for unseasonably warm weather in large parts of the Midwest and NE US. Nat gas is now -1.5% to $1.99/MMBtu
Copper is a bright spot in commodities this morning, with prices catching a lift as the market shifts its focus to potential near-term production cuts by major firms like Freeport-McMoRan (FCX). Copper is now +2.4% to $2.12/lb

10:00 am:

[BRIEFING.COM] The S&P 500 remains lower by 1.4%.

Just released, the preliminary reading of the University of Michigan Consumer Sentiment survey for December fell to 91.8 from the reading of 93.1 that was reported in November. The Briefing.com consensus expected a drop to 91.6.

Separately, Business Inventories were unchanged in October while the Briefing.com consensus expected an increase of 0.1%. This followed the prior month's unrevised reading of 0.1% (from 0.3%).

9:35 am:

[BRIEFING.COM] As expected, the major averages have stumbled out of the gate with the Dow (-1.3%), Nasdaq (-1.1%), and S&P 500 (-1.2%) showing comparable losses.

The opening weakness has encompassed all ten sectors. Growth-sensitive materials (-2.6%), energy (-2.1%), and financials (-1.3%) are among the early laggards while the utilities sector (-0.7%) trades ahead of its peers.

With the entire market backtracking, Treasuries have marked new highs, pressuring the 10-yr yield to 2.18% (-5 bps).

October Business Inventories (expected +0.1%) and the preliminary reading of the Michigan Sentiment Index for December (consensus 91.6) will both be released at 10:00 ET.

9:12 am: [BRIEFING.COM] S&P futures vs fair value: -18.90. Nasdaq futures vs fair value: -29.40.

The stock market is on track for a lower open with S&P 500 futures trading 19 points below fair value after spending the entire night in negative territory.

Yesterday, the S&P 500 ticked up 0.2% to narrow this week's loss to 1.9%, but the benchmark index is on course to erase that uptick and then some once today's opening bell rings. The overnight session featured more selling in Asia while European markets have not fared much better. Weakness in commodities prices has contributed to the defensive sentiment with crude oil trading lower by 1.1% at $36.34/bbl.

On a separate note, the Wall Street Journal reported that Third Avenue Management is liquidating its high-yield Focused Credit Fund and not permitting investor withdrawals while it is doing so. The article cites Third Avenue as saying poor bond market trading conditions have made it very difficult to raise cash to meet redemption requests without resorting to fire sales of assets. The question for many is this: Is Third Avenue an isolated case or a sign of more difficulties to come in the high-yield space? Time will tell, as it always does, but for now it's a source of headline angst that is weighing further on investor sentiment.

The cautious action in the futures market has masked some pre-market strength in a handful of names. For instance, Norfolk Southern (NSC 89.49, +1.81) is indicated 2.1% higher after Bloomberg reported the company has been approached by Berkshire Hathaway (BRK.B 131.00, -0.71) about a potential acquisition.

Treasuries have climbed during overnight action, pressuring the 10-yr yield five basis points to 2.18%.

8:54 am: [BRIEFING.COM] S&P futures vs fair value: -15.90. Nasdaq futures vs fair value: -23.50.

The S&P 500 futures trade 16 points below fair value.

Markets in the Asia-Pacific region ended Friday mostly lower, with only Japan managing to close in the green. The Nikkei's 1.0% gain can be widely attributed to the downward reversal seen in the yen during US hours versus the prior day. Comments from Japanese Finance Minister were glossed over by market participants after he indicated that there are no plans to delay the proposed consumption tax, scheduled to go into effect in 2017. In China, the Shanghai Composite fell 0.6% on another session lacking in macro data. A major theme coming out of the Mainland was news that the chairman of Fosun has gone missing (he is often referred to as the Warren Buffett of China). Separately, the CNY came into focus after the PBoC set the currency to its lowest level in 4 years. Elsewhere, gaming stocks took a hit after local press suggested regulators will investigate illegal transactions through UnionPay. After the Shanghai Composite closed, China released its November New Yuan Loans, which came in below expectations at CNY708.9 bln vs CNY735.0 bln expected.

In economic data:
New Zealand's November Business PMI 54.7 (previous 53.3) and November FPI -0.2% month-over-month (expected -0.3%; previous 1.2%)
South Korea's November Import Price Index -15.6% year-over-year (previous -14.9%) and Export Price Index -8.6% year-over-year (last -6.5%)
India's Industrial Production +9.8% year-over-year (consensus 7.8%; previous 3.6%)

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Japan's Nikkei increased 1.0%. The Nikkei shot up shortly after the opening bell and maintained a steady bid for the duration of the session and closed near the session highs. Sectors leading the way were Health Care (+1.4%) and IT (+1.4%), while Energy (-0.1%) was the only sector to close negative. Shares of Sharp, saw a sharp move higher by 4.0% after reports the co may receive additional lending support. Not all stocks fared as well, considering Sekisui House fell 4.1% after the co reported its Q3 results.
Hong Kong's Hang Seng declined by 1.1%. As mentioned above, Gaming stocks were under fire with reports of crack downs on illegal UnionPay transactions. As such, Sands China fell by 1.9%, while Galaxy Entertainment was not far behind with a 1.7% decline. Some of the financial names were spooked by the news of the Fosun Chairman's disappearance. Trading chatter suggest shares of China Minsheng Banking Corp (-1.7%) fell in response to the news.
China's Shanghai Composite declined 0.6%. The index was underwater the whole session and closed right about where it started. A late day push to get the index over the unchanged level was refuted in the last hour. The jitters of the mysterious disappearance of the Fosun Chairman seemed to keep a steady lid on the market. Speculation was all over the map, with reports of foul-play to an alleged probe gave traders reason to refrain from aggressive buying. Fosun's shares were suspended following the reports. Among Fosun's holdings that saw weakness was Healthcare company Shandong Weigao Group Medical Polymer, which gave up 3.6% in response.

Major European indices trade lower across the board with Germany's DAX (-1.6%) at the bottom of the leaderboard. Greek officials have reportedly reached an agreement with EU representatives on a second set of reforms, but that has not alleviated any of the pressure seen in regional equity markets.

Economic data was limited:
Germany's November CPI +0.1% month-over-month, as expected; +0.4% year-over-year, as expected
France's October Current Account -EUR1.40 billion (previous surplus of EUR300 million)
Italy's October Industrial Production +0.5% month-over-month (expected 0.3%; previous 0.2%); +2.9% year-over-year (consensus 2.0%; last 1.8%). Separately, Quarterly Unemployment Rate 11.7% (expected 11.9%; previous 12.3%)

------

Germany's DAX is lower by 1.6% with all 30 components trading in the red. Heavyweights Deutsche Bank, Daimler, BMW, Commerzbank, and BASF are down between 2.0% and 3.5%. Meanwhile, countercyclical names like Fresenius and Beiersdorf trade ahead of their peers, but both are down near 1.0% apiece.
France's CAC trades down 1.3% amid broad weakness. Renault has tumbled 4.9% while ArcelorMittal, Valeo, Airbus, Michelin, and Carrefour trade a bit ahead with losses between 2.3% and 3.1%.
UK's FTSE outperforms with a loss of 1.3%, but that has not stopped all but two components from trading in the red. Miners and energy names have paced the slide as commodities remain weak. Anglo American, BHP Billiton, and Royal Dutch Shell are down between 2.9% and 4.9%.

8:30 am: [BRIEFING.COM] S&P futures vs fair value: -15.80. Nasdaq futures vs fair value: -22.90.

The S&P 500 futures trade 16 points below fair value.

November producer prices rose 0.3% while the Briefing.com consensus expected a downtick of 0.1%. Core producer prices increased 0.3% while the consensus expected an increase of 0.1%.

Separately, November retail sales rose 0.2% while the Briefing.com consensus expected an increase of 0.3%. The prior month's reading was left unrevised at 0.1%. Excluding autos, retail sales increased 0.4% while the consensus expected an increase of 0.3%.

7:59 am: [BRIEFING.COM] S&P futures vs fair value: -21.60. Nasdaq futures vs fair value: -39.00.

U.S. equity futures trade near their pre-market lows amid cautious action overseas. The S&P 500 futures trade 22 points below fair value after spending the night in negative territory with cautious sentiment enveloping global equity markets. Contributing to this morning's weakness is a Wall Street Journal report, which indicated that Third Avenue Management has barred redemptions while the company raises cash.

The overnight retreat in equity futures has been met with some demand for Treasuries, pressuring the 10-yr yield three basis points to 2.20%.

November CPI (Briefing.com consensus +0.1%) and November Retail Sales (consensus +0.3%) will be reported at 8:30 ET while October Business Inventories (expected +0.1%) and the preliminary reading of the Michigan Sentiment Index for December (consensus 91.6) will both be released at 10:00 ET.

In U.S. corporate news of note:

Norfolk Southern (NSC 90.50, +2.82): +3.2% after Bloomberg reported the company has been approached by Berkshire Hathaway (BRK.B 131.00, -0.71) about a potential acquisition.
Restoration Hardware (RH 86.25, -1.34): -1.5% after reporting a bottom-line beat on light revenue. The company guided Q4 earnings in line with estimates and reaffirmed its long-term guidance.
Staples (SPLS 9.56, -0.40): -4.0% after the stock was downgraded to 'Underperform' at Bank of America/Merrill Lynch.
SunEdison (SUNE 4.31, +0.22): +5.4% after the company agreed to sell 333 megawatts of wind-power assets to Terra Nova Renewable Partners for $209 million.

Reviewing overnight developments:

Asian markets ended mostly lower. Hong Kong's Hang Seng -1.1%, China's Shanghai Composite -0.6%, and Japan's Nikkei +1.0%
In economic data:
New Zealand's November Business PMI 54.7 (previous 53.3) and November FPI -0.2% month-over-month (expected -0.3%; previous 1.2%)
South Korea's November Import Price Index -15.6% year-over-year (previous -14.9%) and Export Price Index -8.6% year-over-year (last -6.5%)
India's Industrial Production +9.8% year-over-year (consensus 7.8%; previous 3.6%)
In news:
In China, the chairman of Fosun Group, Guo Guangchang, has been reported missing, which has invited speculation about a potential anticorruption investigation into the company

Major European indices trade lower across the board. Germany's DAX -2.0%, France's CAC -1.6%, and UK's FTSE -1.4%. Elsewhere, Italy's MIB -1.5% and Spain's IBEX -0.9%
Economic data was limited:
Germany's November CPI +0.1% month-over-month, as expected; +0.4% year-over-year, as expected
France's October Current Account -EUR1.40 billion (previous surplus of EUR300 million)
Italy's October Industrial Production +0.5% month-over-month (expected 0.3%; previous 0.2%); +2.9% year-over-year (consensus 2.0%; last 1.8%). Separately, Quarterly Unemployment Rate 11.7% (expected 11.9%; previous 12.3%)
Among news of note:
Greek officials have reportedly reached an agreement with EU representatives on a second set of reforms

5:49 am: [BRIEFING.COM] S&P futures vs fair value: -0.50. Nasdaq futures vs fair value: -8.50.

5:49 am: [BRIEFING.COM] Nikkei...19230.48...+183.90...+1.00%. Hang Seng...21464.05...-240.60...-1.10%.

5:49 am: [BRIEFING.COM] FTSE...6048.78...-39.30...-0.70%. DAX...10498.83...-100.10...-0.90%.

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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