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 Post subject: December 16th Wednesday Trade Results - Profit $14812.50
PostPosted: Wed Dec 16, 2015 11:57 pm 
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Joined: Sat Jan 10, 2009 2:06 pm
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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 @ $14812.50 dollars or +296.25 points, Light Crude Oil CL ($CL_F) futures @ $0.00 dollars or +0.00 points, Gold GC ($GC_F) futures @ $0.00 dollars or +0.00 points and EuroFX 6E ($6E_F) futures @ $0.00 dollars or +0.0000 ticks. Total Profit @ $14812.50 dollars

Russell 2000 Emini TF Futures: 1 tick or 0.10 = $10.00 dollars and there's more contract information @ The ICE
S&P 500 Emini ES Futures: 1 tick or 0.25 = $12.50 dollars and there's more contract information @ CMEGroup
Light Crude Oil CL (WTI) Futures: 1 tick or 0.01 = $10.00 dollars and there's more contract information @ CMEGroup
Gold GC Futures: 1 tick or 0.10 = $10.00 dollars and there's more contract information @ CMEGroup
EuroFX 6E Futures: 1 tick or 0.0001 = $12.50 dollars and there's more contract information @ CMEGroup

Trade Log: All of my trades were posted real-time in the timestamp ##TheStrategyLab free chat room. You can read today's price action trading information about my trades (e.g. time, price entry, contract size, price exit) as the trade traversed to its completion. Also, sometimes I'll post real-time trading tips in ##TheStrategyLab chat room involving WRBs, WRB Hidden GAPs, Key Market Events (KME), Tutorial Chapters 2 & 3, WRB Zones, Reaction Highs/Lows, Contracting Volatility or Expanding Volatility. Its all archived @ http://www.thestrategylab.com/ftchat/forum/viewtopic.php?f=150&t=2244

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.

-----------------------------

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 midweek session on a higher note with the S&P 500 climbing 1.4%. The benchmark index shrugged off the first fed funds rate hike in nine years, reclaiming its 50- (2,060) and 200-day moving averages (2,062) in the process.

Equity indices spiked at the start of the trading day, but the first half of the session featured a slow drip from opening highs as investors employed some caution ahead of the FOMC rate announcement; however, a rally to new highs unfolded during the late afternoon.

The Federal Reserve lived up to expectations, calling for a 25-basis point hike to the federal funds target range, which had been stuck in the 0.00-0.25% range for exactly seven years. Interestingly, today's rate hike did not stop the committee from slightly lowering its core PCE inflation outlook for 2016 to 1.5-1.7% from 1.5-1.8% that had been expected in September.

The Dollar Index (98.35, +0.13) displayed some volatility, but ended in the green. The index saw some pressure as Fed Chair Janet Yellen addressed the media, stressing the Fed's intention to stick to a gradual tightening path. Ms. Yellen acknowledged that the rate hike is taking place while inflation is well below the Fed's 2.0% target, but the Fed Chair believes that inflation will return to the 2.0% target once transitory factors fade away.

Unlike stocks, Treasuries held slim losses going into the afternoon, but they lurched back to flat after the Fed announcement; however, the 10-yr note dipped back into the red during the late afternoon, pushing the benchmark yield up to 2.29% (+2 bps).

Nine of ten sectors ended the day with gains while energy (-0.5%) spent the session below its flat line due to daylong weakness in crude oil. The energy component returned to last week's low, falling 4.7% to $35.55/bbl. after the latest EIA storage report showed a 4.8 million barrel inventory build.

Similar to energy, the materials sector (+1.1%) underperformed, but the group was lifted into the green during afternoon action.

Elsewhere, the top-weighted technology sector (+1.3%) also lagged, which contributed to the pullback from opening levels. Apple (AAPL 111.34, +0.85) was the culprit responsible for the early weakness, but the sector heavyweight benefited from the afternoon strength in the market. Thanks to the reversal, the largest stock by market cap climbed 0.8%, narrowing this week's loss to 1.6%.

Staying on the cyclical side, the industrial sector (+1.8%) spent the day among the leaders, thanks in part to a 5.7% spike in Honeywell (HON 104.08, +5.61) after the company reaffirmed its guidance. Another sector component-Joy Global (JOY 12.16, +0.70)-also had a strong showing, surging 6.1%, despite reporting in-line earnings, lowering its guidance, and cutting its quarterly dividend to $0.01 from $0.20/share.

Today's participation was well above average as more than 950 million shares changed hands at the NYSE floor.

Economic data included Housing Starts, Building Permits, Industrial Production, and MBA Mortgage Index:

Housing starts were at a seasonally adjusted annual rate (SAAR) of 1.173 million in November. That was 10.5% above October's revised level of 1.062 million (from 1.060 million) and above the Briefing.com consensus estimate of 1.135 million
Multifamily starts spiked 16.4% while single-family starts jumped 7.6%
Building permits soared to a SAAR of 1.289 million. That was 11% above the revised October rate of 1.161 million (prior 1.150 million) and well ahead of the Briefing.com consensus estimate of 1.150 million
That uptick was driven almost entirely by permits for multifamily units as single-family permit authorizations increased just 1.1%
Industrial production declined 0.6% in November on the heels of a downwardly revised 0.4% decline (from -0.2%) in October
The November reading was well below the Briefing.com consensus, which expected a downtick of 0.1%
The November decline was paced by a 4.3% drop in utilities and a 1.1% decrease in mining activities
The weekly MBA Mortgage Index fell 1.1% to follow last week's 1.2% increase

Tomorrow, weekly Initial Claims (Briefing.com consensus 276,000), December Philadelphia Fed Survey (Briefing.com consensus 2.0), and Q3 Current Account Balance (Briefing.com consensus deficit of $114.20 billion) will be reported at 8:30 ET while November Leading Indicators will cross the wires at 10:00 ET.

Nasdaq Composite +7.1% YTD
S&P 500 +0.7% YTD
Dow Jones Industrial Average -0.4% YTD
Russell 2000 -4.3% YTD

3:35 pm: [BRIEFING.COM]

The dollar index traded near-flat going into the afternoon's FOMC rate decision- which went as many expected, with Fed Funds raised by 25 bps.
Upon release of the data the dollar saw increased, trend-less volatility that failed to significantly press commodities. The index has since traded just above the flat line, now at +0.3% to 98.47.
Crude traded at modest negatives early, before steeply selling-off on EIA storage data that showed a larger-than-expected build (4.8 mln vs. a 2.5 mln draw estimate).
The January contract extended negative momentum into the close, with WTI finishing -4.7% to $35.55/barrel.
Natural gas saw like-able bearish price action all session, as continued calls for unseasonably warm weather in the Midwest and N.E. US dampened outlook for heating fuel.
January natural gas closed 1.76% lower at $1.79/MMBtu
Precious metals held their morning gains into and following the FOMC rate hike decision, as gold closed +1.4% to $1076.70/oz and silver finished +3.4% to $14.24/oz
Copper closed at moderate gains of +0.9% to $2.08/lb

2:55 pm:

[BRIEFING.COM] The S&P 500 trades higher by 1.0% with one hour remaining in the session. The benchmark index has climbed to a new post-Fed high with nine sectors showing gains while the energy space (-0.5%) remains in the red.

During her press conference, Fed Chair Janet Yellen said that delaying the first rate hike would increase the risk that the Fed would have to act out of haste in the future. Ms. Yellen acknowledged that the rate hike is taking place while inflation is well below the Fed's 2.0% target, but the Fed Chair believes that inflation will return to the 2.0% target once transitory factors fade away.

Interestingly, the Dollar Index (97.79, -0.42) has dipped to a new low in recent action, which has pushed the euro into the 1.1000 area. On a related note, gold futures have built on their gains, climbing 1.3% to $1075.30/ozt.

2:30 pm:

[BRIEFING.COM] As widely expected, the Federal Open Market Committee has elected to begin the rate normalization process by increasing the fed funds target rate range to 0.25-0.50% from 0.00-0.25%. Today's decision represents the first rate hike in nine years, but the Fed has gone to great lengths to stress that it intends to continue tightening at a gradual pace. To that point, the dot plot released by the Fed shows an expectation for the fed funds rate to hit 1.25% in 2016, which is down about 11 basis points from the forecast that was released in September.

The market has taken the announcement in stride with the S&P 500 (+0.5%) marking a new session high. Interestingly, the response in the economically-sensitive financial sector (+0.4%) has been fairly muted. REITs display relative strength with Vanguard REIT ETF (VNQ 79.89, +1.02) trading higher by 1.3%, but it is worth noting that the ETF has spent the day in a steady climb.

Elsewhere, Treasuries have returned to unchanged, which has pulled the benchmark yield back to 2.26% after testing the 2.30% level earlier. Meanwhile, the Dollar Index (98.24, +0.02) is flat after seeing a short-lived spike immediately after the Fed announcement crossed the wires.

As for commodities, crude oil has dipped to a new low heading into the pit close (-5.1% at $35.45/bbl) while gold futures have ticked down from their highs. The yellow metal traded near $1,076.00/ozt just before the Fed announcement, and briefly slipped to its flat line in the wake of the policy statement. An ensuing rebound has gold trading higher by 0.9% at $1071.40/ozt at this time.

2:05 pm:

[BRIEFING.COM] The Federal Open Market Committee has just released its latest policy statement, which called for a 25-basis point hike to the target range for the fed funds rate. This brings the target range up to 0.25-0.50% from 0.00-0.25%.

The first rate hike in nine years has been met with a brief dip in the stock market while the Dollar Index (98.13, -0.05) spiked, but has returned to its flat line immediately thereafter.

Elsewhere, Treasuries have not moved off their lows with the 10-yr yield remaining higher by three basis points at 2.30%.

Fed Chair Janet Yellen is scheduled to begin her press conference at 14:30 ET.

1:35 pm:

[BRIEFING.COM] The major U.S. indices continue to bounce around ahead of the Fed's rate decision at 2 PM. Having erased nearly all the gains seen earlier in today's session, the indices are currently sporting just mild gains.

A look inside the Dow Jones Industrial Average shows that Coca-Cola (KO 43.65, +0.58), General Electric (GE 30.62, +0.29), and Verizon (VZ 45.98, +0.43) are outperforming.

Conversely, DuPont (DD 64.68, -1.82) is the worst-performing Dow component as materials lag following weak guidance from Nucor (NUE 38.26, -1.91)

As stocks hold steady ahead of the highly anticipated Fed decision, the DJIA is up 1.7% this week, but still down 0.9% this month.
Related Quotes



12:55 pm:

[BRIEFING.COM] Equity indices hold modest midday gains after pulling back from their opening highs. The S&P 500 remains higher by 0.2% after being up 0.8% shortly after today's opening bell.

The benchmark index notched a session high within a point of its 50-day moving average (2,060), but the first half of the trading day has featured a steady retreat. In some ways, the pullback is not a huge shock considering the upcoming policy statement from the Federal Reserve is likely to call for the first fed funds target range hike in nine years (to 0.25-0.50% from 0.00-0.25%). The rate decision will be released at 14:00 ET and Fed Chair Janet Yellen will address the assembled media at 14:30 ET.

Seven sectors remain in the green at this time while energy (-0.8%) and materials (-0.5%), and technology (-0.1%) have dipped into the red after showing early strength. Notably, the energy sector has retreated behind crude oil, which trades down 4.3% at $35.74/bbl.

Similar to energy, the top-weighted technology sector (-0.1%) has surrendered its opening gain. The influential sector has had to contend with continued weakness in Apple (AAPL 109.01, -1.48) as the stock trades lower by 1.3% today, extending this week's loss to 3.7%.

On the flip side, the industrial space (+0.5%) has shown relative strength since the start with Honeywell (HON 102.75, +4.28) surging 4.4% after reaffirming its guidance. Interestingly, Joy Global (JOY 12.03, +0.57) also trades in the green even though the company reported in-line earnings, lowered its guidance, and cut its quarterly dividend to $0.01 from $0.20/share.

On the M&A front, Global Payment (GPN 63.20, -8.22) has agreed to acquire Heartland Payment Systems (HPY 93.53, +8.43) for $4.30 billion.

Treasuries have spent the day in a steady decline and they sit on their lows at this time with the benchmark yield up three basis points at 2.30%.

Economic data included Housing Starts, Building Permits, Industrial Production, and MBA Mortgage Index:

Housing starts were at a seasonally adjusted annual rate (SAAR) of 1.173 million in November. That was 10.5% above October's revised level of 1.062 million (from 1.060 million) and above the Briefing.com consensus estimate of 1.135 million
Multifamily starts spiked 16.4% while single-family starts jumped 7.6%
Building permits soared to a SAAR of 1.289 million. That was 11% above the revised October rate of 1.161 million (prior 1.150 million) and well ahead of the Briefing.com consensus estimate of 1.150 million
That uptick was driven almost entirely by permits for multifamily units as single-family permit authorizations increased just 1.1%
Industrial production declined 0.6% in November on the heels of a downwardly revised 0.4% decline (from -0.2%) in October
The November reading was well below the Briefing.com consensus, which expected a downtick of 0.1%
The November decline was paced by a 4.3% drop in utilities and a 1.1% decrease in mining activities
The weekly MBA Mortgage Index fell 1.1% to follow last week's 1.2% increase

12:30 pm:

[BRIEFING.COM] The major averages have backed away from their opening highs with the S&P 500 now up 0.3%. The benchmark index set an opening high just below its 50-day moving average (2,060) and has steadily retreated from that level for the better part of the day.

The market's inability to extend its opening move should not come as a huge surprise considering the Federal Reserve is expected to announce a fed funds target rate hike this afternoon. This would represent the first increase in nine years and is likely to invite some volatility into the market. The announcement is set for 14:00ET.

In sectors, the cyclical sectors still widely trail the countercyclical sectors. Including today's performance all four countercyclical sectors are showing gains for the month of December. (MTD: Consumer Staples:+2.8%; Telecommunications:+1.4%; Health Care:+1.0%; Utilities: +0.6%).

12:00 pm:

[BRIEFING.COM] As afternoon trading begins, the major indices are trading within their ranges with the S&P 500 (0.3%), the Nasdaq (0.2%), and the Dow Jones Industrial Average (0.1%) all showing advances so far today.

The three countercyclical sectors - utilities (+1.9%), telecommunications (+1.4%), and consumer staples (+0.9%) - continue to outperform their cyclical peers. The next strongest performance today is in industrials (+0.6%) as the sector continues to be led by Honeywell's (HON 102.96, +4.99) outperformance, following a re-affirmation of it earnings guidance. Shares of HON are up 4.6% today.

On the other side of the leaderboard, energy (-1.4%) remains pressured by the poor performance in WTI crude. Oil has lost 4.5% today and trades at $35.68/bbl after the EIA reported a larger than expected build in weekly inventories (4.8 million build vs. a 1.9 million draw last week).

In Treasuries, the 10-yr note remains near its low with the yield on the benchmark note up three basis points at 2.30%.

11:30 am:

[BRIEFING.COM] The major indices are trading near their session lows with the S&P 500 narrowing its gain to 0.2%.

The morning slide in the major averages comes as oil continues to sink lower. The commodity has now given up its entire gain from yesterday, trading down 4.5% at $35.68/bbl. Elsewhere, the financial sector is teetering on its flat line, with large-cap components Citigroup (C 52.35, -0.17) and Bank of America (BAC 17.38, -0.04) underperforming the market heading into this afternoon's rate decision by the Fed.

On a separate note, the Dollar Index has been sliding along with the major averages and oil. Currently the index is down 0.1% to 98.15.

11:00 am:

[BRIEFING.COM] The major indices have retreated steadily through the first 90 minutes of the trading day, but they remain in the green with the S&P 500 (0.4%) leading the Nasdaq (0.3%).

The energy sector (-0.5%) continues to trail as WTI crude flirts with the $36.00/bbl price level, showing a 3.4% decline on the day. Just ahead of energy and materials (UNCH) is the tech sector (+0.1%), which has fallen to the bottom of the leaderboard as large-cap constituents Alphabet (GOOG 743.18., -0.21), Facebook (FB 104.77, +0.22), and Apple (AAPL 110.45, -0.04) continue to weigh on the sector.

On the flipside, the countercyclical sectors: utilities (+1.7%), telecom (+1.1%), and consumer staples (+1.0%) remain at the top of the leaderboard.

In Treasuries, the benchmark note has fallen to session lows pushing its yield higher to 2.30% (+3bps).

10:35 am: [BRIEFING.COM]

The dollar is trading near the flat-line, up from modest negatives overnight, following morning US housing/industrial production data and ahead of the FOMC this afternoon.
Nov. housing starts and building permits both came in stronger-than-expected at 1.17 mln and 1.29 mln respectively, while Nov. industrial production was weaker than anticipated at -0.6% (vs. -0.1% consensus).
The index is currently trading fairly muted at +0.1% to 98.27, with all eyes toward the FOMC's rate decision at 2 pm (ET) this afternoon.
Precious metals are both trading just below their HoD, having rallied above the flat-line from overnight losses following the positive US housing data.
Gold is now +1.1% to $1073.40/oz while silver is +2.4% to $14.10/oz
WTI has traded negative all session, largely driven by last night's API report of a 2.3 mln barrel build in weekly inventories (vs. a 1.9 mln draw last week).
The commodity trended toward the low end of today's range near $36.60/barrel going into the morning's EIA storage data, expected to show a draw of 2.5 mln barrels.
Upon release of the data, which showed a 4.8 mln build, January oil fell sharply and is now -2.8% to $36.34/barrel
Natural gas has extended yesterday's weather-driven sell-off, with current losses of -0.8% to $1.81/MMBtu
Copper is trading moderately positive at +0.6% to $2.07/lb amidst reports that China's Jiangxi Copper and the Chilean firm Antofagasta Minerals have agreed upon a 9% reduction in copper refining charges for FY16

10:00 am:

[BRIEFING.COM] The major indices trade just below their session highs with the S&P 500 (0.6%) and the Nasdaq (0.6%) trading in line.

The utilities sector (+1.2%) is on top of the leaderboard with telecom (+1.1%) and industrials (+0.9%) following. In industrials, large component Honeywell (HON 102.36, +3.90) is up 4.0% after it re-affirmed earnings guidance.

In commodities, Gold has risen 1.3% to $1,075.30 on the day ahead of the Fed.

9:45 am:

[BRIEFING.COM] The major indices have all opened in positive territory with the Nasdaq (+0.8%) slightly ahead of the S&P 500 (0.7%).

Nine of ten are trading higher today with only energy (-0.6%) declining. This decline can be attributed to the slipping price of oil as WTI crude moves to $36.66/bbl (-1.8%).

On the corporate front, Toyota Motors (TM 125.06, +3.18) is currently trading higher by 2.6% after the company said it expects flat year-over-year sales growth. The broader industrial sector is higher by 0.9% at this juncture.

In Treasuries, the yield on the benchmark 10-yr note remains little changed since the open, currently at 2.28% (+1bps).

9:15 am: [BRIEFING.COM] S&P futures vs fair value: +15.30. Nasdaq futures vs fair value: +36.50.

The stock market is on track for a higher open with S&P 500 futures trading 15 points above fair value after rallying off their lows at the start of the European session. Thanks to the early morning rally, the cash market will build on yesterday's gain, but sustaining the advance could be a challenge considering the Federal Open Market Committee will release its latest policy statement at 14:00 ET. The Briefing.com consensus expects the Fed to raise the fed funds target rate to 0.50% from 0.25%, which would represent the first rate hike in nine years.

Although today's focus will be squarely on the Fed, participants have received some corporate news of note since yesterday's closing bell. In the health care sector, Valeant Pharmaceuticals (VRX 112.45, +2.86) is on track to open higher by 2.6% despite lowering its guidance. In addition, the company responded to a breach of contract lawsuit filed by QLT (QLTI 2.70, 0.00), denying all allegations. Elsewhere, Joy Global (JOY 11.08, -0.38) has given up 3.3% in pre-market after lowering its guidance and cutting its quarterly dividend to $0.01 from $0.20.

On the M&A front, Global Payments (GPN 62.93, -8.49) has agreed to acquire Heartland Payment Systems (HPY 92.39, +7.29) for $100/share in cash and stock.

In economic data, November Housing Starts rose to 1.173 million from 1.062 million while the Briefing.com consensus expected an increase to 1.135 million.

Also of note, the just-released Industrial Production report pointed to a decrease of 0.6% in November (Briefing.com consensus -0.1%) while capacity utilization hit 77.0% (Briefing.com consensus 77.5%).

Treasuries sit near their lows with the 10-yr yield up almost two basis points at 2.29%.

8:55 am: [BRIEFING.COM] S&P futures vs fair value: +14.80. Nasdaq futures vs fair value: +35.90.

The S&P 500 futures trade 13 points above fair value.

It was a sea of green across Asia as just about every regional index ended Wednesday in the green, taking a cue from the Tuesday advance on Wall Street. The looming Fed meeting did not stop investors from piling into equities with Japan's Nikkei spiking 2.6% to lead the way. Economic data released overnight was limited to just a few items. Most notably, Japan's December Manufacturing PMI ticked down to 52.5 from 52.6, but the index remained in expansion for the eight consecutive month. Elsewhere, the Bank of Korea lowered its 2016-2018 CPI target to 2.0% from a range of 2.5%-3.5%.

In economic data:
Japan's December Manufacturing PMI 52.5 (previous 52.6)
Australia's MI Leading Index -0.2% month-over-month (previous 0.1%)
New Zealand's Q3 Current Account -NZD4.75 billion quarter-over-quarter (expected -NZD4.90 billion; previous -NZD1.17)
South Korea's November Unemployment Rate 3.4% (expected 3.5%; previous 3.4%)

---Equity Markets---

Japan's Nikkei surged 2.6% with most sectors climbing more than 2.0%. Leadership could be found in energy (+3.6%), consumer staples (+2.9%), communications (+2.7%), and health care (+2.6%) while the remaining groups followed not far behind. In terms of individual issues, Fukuoka Financial, Mizuho Financial, Japan Tobacco, Nomura Holdings, and Honda Motor ended among the leaders with gains between 4.5% and 6.1%.
Hong Kong's Hang Seng spiked 2.0%, returning to Thursday's levels. Energy names had the best showing with China Petroleum & Chemical, Petrochina, and CNOOC jumping between 3.5% and 7.3%. Financials and consumer names also displayed strength after recent struggles. Belle International spiked 5.0% while China Resources Land, Bank of China, HSBC Holdings, and China Construction Bank rallied between 1.9% and 3.1%.
China's Shanghai Composite eked out a slim advance, adding 0.2%. The story here was similar to Hong Kong as energy names and financials contributed to the higher close. Sinopec surged 10.0% while Industrial Securities, Founder Securities, and Pacific Securities gained between 0.4% and 2.6%.

Major European indices have spent the first half of the Wednesday session in a steady advance, unperturbed by the prospect of a fed funds rate hike. Regional markets have also shrugged off mostly disappointing PMI readings while inflation data released today was just ahead of expectations. The euro, meanwhile, has held its ground, trading near 1.0920 against the dollar after the single currency surrendered about 60 pips yesterday. Elsewhere, Swiss National Bank chairman Thomas Jordan said the franc remains overvalued, which is posing a headwind for exporters. Also of note, the German Institute for Economic research has lowered the country's 2016 GDP forecast to 1.7% from 1.8%.

Economic data was plentiful:
Eurozone November CPI -0.1% month-over-month (expected -0.2%; previous 0.1%); +0.2% year-over-year (consensus 0.1%; prior 0.1%). Separately, Core CPI -0.2% month-over-month (previous 0.2%) and October trade surplus expanded to EUR24.10 billion from EUR20.50 billion (expected surplus of EUR21.50 billion). Also of note, December Services PMI 53.9 (expected 54.1; previous 54.2) and Manufacturing PMI 53.1 (expected 52.8; prior 52.8)
Germany's December Services PMI 55.4 (expected 55.5; previous 55.2) and Manufacturing PMI 53.0 (consensus 53.0; last 52.9)
UK's October Average Earnings Index + Bonus +2.4% (expected 2.5%; prior 3.0%), November Claimant Count Change 3,900 (expected 1,500; previous 200), and October Unemployment Rate 5.2% (expected 5.3%; last 5.3%)
France's December Services PMI 50.0 (consensus 50.8; last 51.0) and Manufacturing PMI 51.6 (consensus 50.5; last 50.6)
Swiss December ZEW Expectations 16.6 (prior 0.0)

---Equity Markets---

France's CAC is higher by 0.9% with roughly 2/3 of its components showing gains. Defense contractors sit atop the leaderboard with Airbus and Safran both up near 2.0%. Growth-sensitive names like Technip, Legrand, Schneider Electric, and Air Liquide have climbed between 0.8% and 1.1% while financials are mixed. Societe Generale and AXA are both up near 0.7% while BNP Paribas trades up 0.2% and Credit Agricole is lower by 0.3%.
Germany's DAX trades up 1.0% amid gains in all but six components. Exporters Daimler and BMW are both up near 1.0% while Volkswagen has surrendered 0.8%. Health care names have shown some strength with Fresenius SE, Bayer, and Merck rising between 0.6% and 1.5%. On the downside, Infineon is the weakest component, trading lower by 1.3%.
UK's FTSE is higher by 1.1% with Shire in the lead. The drug maker has spiked more than 5.0% while peer AstraZeneca is higher by 1.1% after agreeing to acquire the respiratory business of Takeda Pharmaceutical. Energy and mining names have contributed to today's advance with BHP Billiton spiking 2.3% and BP trading higher by 1.5%.

8:30 am: [BRIEFING.COM] S&P futures vs fair value: +14.80. Nasdaq futures vs fair value: +36.50.

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

Housing starts rose to a seasonally adjusted annualized rate of 1.173 million units in November, which was up from a revised 1.062 million units in October (from 1.060 million). The Briefing.com consensus expected starts to increase to 1.135 million units.

Building permits rose to a seasonally adjusted annualized rate of 1.289 million in November from a revised 1.161 million for October (from 1.050 million). The Briefing.com consensus expected a reading of 1.150 million.

8:00 am: [BRIEFING.COM] S&P futures vs fair value: +12.30. Nasdaq futures vs fair value: +31.30.

U.S. equity futures trade just beneath their pre-market highs, with S&P Futures currently twelve points above fair value.

In Treasuries, the benchmark note currently sits near its overnight lows, with the yield on the 10-yr note higher at 2.28%(2bps).

On the economic front, weekly MBA Mortgage Index numbers were reported at 7:00 ET showing a decline of 1.1% from their previous increase of 1.2%. November Building Permits (Briefing.com consensus 1.15 million) and Housing Starts (consensus 1.135 million) will be reported at 8:30 ET and he November Industrial Production report (consensus 77.5%) will cross the wires at 9:15 ET. Finally, the latest policy decision from the Federal Open Market Committee will be released at 14:00 ET (consensus 0.5%).

In U.S. corporate news of note:

Constant Contact (CTCT 30.00, -1.65): -5.2% after disclosing after yesterday's closing that it received subpoenas relating to its sales, marketing, and customer retention practices

Reviewing overnight developments:

Asian markets ended higher across the board. Japan's Nikkei +2.6%, Hong Kong's Hang Seng +2.0%, and China's Shanghai Composite +0.2%.
In economic data:
Japan's December Manufacturing PMI 52.5 (previous 52.6)
Australia's MI Leading Index -0.2% month-over-month (previous 0.1%)
New Zealand's Q3 Current Account -NZD4.75 billion quarter-over-quarter (expected -NZD4.90 billion; previous -NZD1.17)
South Korea's November Unemployment Rate 3.4% (expected 3.5%; previous 3.4%)
In news:
The Bank of Korea lowered its 2016-2018 CPI target to 2.0% from a range of 2.5%-3.5

Major European indices are all trading higher. Germany's DAX +1.0%, France's CAC +0.8%, and UK's FTSE +1.0%, Elsewhere Italy's MIB +0.3% and Spain's IBEX +0.5%.
In economic data:
Eurozone November CPI -0.1% month-over-month (expected -0.2%; previous 0.1%); +0.2% year-over-year (consensus 0.1%; prior 0.1%). Separately, Core CPI -0.2% month-over-month (previous 0.2%) and October trade surplus expanded to EUR24.10 billion from EUR20.50 billion (expected surplus of EUR21.50 billion). Also of note, December Services PMI 53.9 (expected 54.1; previous 54.2) and Manufacturing PMI 53.1 (expected 52.8; prior 52.8)
Germany's December Services PMI 55.4 (expected 55.5; previous 55.2) and Manufacturing PMI 53.0 (consensus 53.0; last 52.9)
UK's October Average Earnings Index + Bonus +2.4% (expected 2.5%; prior 3.0%), November Claimant Count Change 3,900 (expected 1,500; previous 200), and October Unemployment Rate 5.2% (expected 5.3%; last 5.3%)
France's December Services PMI 50.0 (consensus 50.8; last 51.0) and Manufacturing PMI 51.6 (consensus 50.5; last 50.6)
Swiss December ZEW Expectations 16.6 (prior 0.0)
In news:
The Swiss National Bank chairman Thomas Jordan said that the overvalued franc still poses a headwind for exporters. The German Institute fir Economic research lowered the country's 2016 GDP forecast to 1.7% from 1.8%

5:53 am: [BRIEFING.COM] S&P futures vs fair value: +16.50. Nasdaq futures vs fair value: +42.50.

5:53 am: [BRIEFING.COM] Nikkei...19049.91...+484.00...+2.60%. Hang Seng...21701.21...+426.80...+2.00%.

5:53 am: [BRIEFING.COM] FTSE...6065.01...+47.20...+0.80%. DAX...10478.97...+28.50...+0.30%.

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
Phone: +1 708 572-4885
Business Hours: 8am - 5pm est (Mon - Fri)
Skype Messenger: kebec2002
wrbanalysis@gmail.com


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