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 Post subject: December 18th Friday Trade Results - No Trades
PostPosted: Fri Dec 18, 2015 7:03 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)

Quote:
No trades today for a personal day off to spend time with the family (xmas shopping)

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=2246

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 a volatile week on a defensive note. The Dow Jones Industrial Average paced the Friday slide, falling 2.1% while the S&P 500 (-1.8%) and Nasdaq Composite (-1.6%) registered slimmer losses.

Overnight, the Bank of Japan stepped up its easing efforts by announcing plans to purchase JPY300 billion worth of ETFs starting in April of 2016; however, the market scoffed at the news with Japan's Nikkei diving 1.9% while the yen climbed 1.1% against the dollar (121.27). This is noteworthy because stimulus from major central banks has been a big reason for the rally seen in global markets over the past few years. Therefore, a negative market reaction to news of more stimulus could be indicative of a sentiment change as participants begin wondering whether global central banks have reached their limits.

Investor sentiment saw little improvement as the focus shifted to the European session and the selling carried over to U.S. markets. Consequently, the first three hours of the day saw a steady slide in the key indices and they hit new lows ahead of the closing bell.

All ten sectors ended the day in negative territory with cyclical sectors showing relative weakness. The financial sector (-2.5%) spent the day behind its peers, but despite today's underperformance, the economically-sensitive sector ended the week flat. However, other growth-sensitive groups were not nearly as fortunate, posting weekly losses between 0.4% (consumer discretionary) and 3.1% (materials).

The top-weighted technology sector (-2.0%) lost 1.3% for the week after having to contend with weeklong underperformance in the shares of Apple (AAPL 105.90, -3.08). The largest stock by market cap tumbled 2.8% on Friday, ending the week lower by 6.4%.

Elsewhere, the energy sector (-1.6%) settled ahead of the broader market, but the group was knocked down from its high by an intraday reversal in crude oil. The energy component flashed a brief gain in the late morning, but followed that with a slide to a new low for the week, ending the pit session down 0.7% at $34.72/bbl.

The broad retreat that unfolded over the course of Thursday and Friday masked the fact that the S&P 500 ended the week little changed, shedding 0.3%. Five of six cyclical sectors finished the week in negative territory, but the four countercyclical groups posted weekly gains between 0.5% (consumer staples) and 2.8% (utilities), suggesting some sector rotation took place as investors tested the waters in defensively-oriented areas of the market.

Today's slide in equities was accompanied by strength in the bond market as the 10-yr note rallied overnight and held its ground during the day. The benchmark note ended near its high, pressuring its yield three basis points to 2.19%.

Investor participation was strong today, but that was largely due to quadruple witching. As a result, more than two billion shares changed hands at the NYSE floor.

Market participants will not receive any economic data on Monday.

Nasdaq Composite +4.0% YTD
S&P 500 -2.6% YTD
Dow Jones Industrial Average -3.9% YTD
Russell 2000 -6.8% YTD

Week in Review: Stocks Gyrate as Fed Hikes Rates

Equities began the trading week on a higher note, but not before showing some late morning volatility. The S&P 500 climbed 0.5% after briefly dipping below the 2,000 mark while the Nasdaq Composite (+0.4%) underperformed slightly. Equity indices slumped out of the gate with cyclical sectors fueling the early weakness. That selling was congruent with a retreat in the oil market, but a reversal in crude futures helped halt the slide in equities. The stock market spent the afternoon near its flat line, rallying to a fresh high during the final 15 minutes of the session. Crude oil was in focus throughout the day as the energy component probed the $34.60/bbl area in overnight action before rallying to end the day higher by 2.0% at $36.34/bbl. The late morning reversal underpinned the energy sector (+0.8%), which rebounded from last week's 6.6% dive. The energy sector climbed into the green with relative ease, but the same could not be said for most of the remaining cyclical groups. The technology sector (+0.6%) was an exception as the top-weighted group climbed ahead of the broader market during the afternoon after showing relative weakness at the start. That early weakness could be traced back to the shares of Apple (AAPL 112.48, -0.70) as the tech giant struggled after Morgan Stanley lowered its iPhone sales forecast. Apple settled lower by 0.6% after being down more than 2.0% in the early going.

The stock market enjoyed a broad-based rally on Tuesday, which lifted the S&P 500 (+1.1%) back above its 100-day moving average (2,030). The benchmark index extended its weekly gain to 1.5% ahead of Wednesday's FOMC announcement, which is widely expected to call for the first fed funds rate hike since 2006. Overnight, the early portion of the Asian session was highlighted by some caution among investors, but the overall sentiment began improving once the attention shifted to Europe. Accordingly, markets in France (+3.2%), Germany (+3.1%), and the UK (+2.5%) soared amid broad support. Contributing to the upbeat sentiment was a rally in crude oil as the energy component climbed despite greenback strength that sent the Dollar Index (98.22, +0.62) higher by 0.6%. As for oil, WTI crude surged 2.7% to $37.32/bbl, taking the energy sector (+2.9%) along for the ride. The growth-sensitive energy sector settled atop the leaderboard, but despite the surge, the sector is still down 7.8% for the month. Similarly, the financial sector (+2.4%) was also at the forefront of the Tuesday advance after showing relative weakness as of late. The economically-sensitive group narrowed its December loss to 2.0% versus a 1.8% month-to-date decline for the S&P 500.

Equity indices ended the midweek session on a higher note with the S&P 500 climbing 1.5%. 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. The key 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, the 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.

The market stumbled on Thursday, erasing its entire post-Fed advance. The S&P 500 lost 1.5%, falling below its 50- and 200-day moving averages (2,062), while the Nasdaq Composite (-1.4%) settled just a step ahead. Equity indices held slim gains at the open after the overnight session saw a broad rally in Japan (+1.6%), France (+1.1%), and Germany (+2.6%); however, that bullish sentiment faded in a flash, pulling stocks lower through the first two hours of the session. The key indices ranged near their morning lows into the late afternoon, hitting new lows into the close. The Thursday retreat was not a huge surprise considering a higher fed funds rate will translate into increased borrowing costs. Furthermore, the resulting dollar strength is expected to be a negative for U.S.-based companies that conduct a large portion of their activities overseas. Fittingly, the greenback was on the rise, climbing 0.7% against the euro (1.0808) while the yen (122.50) resisted some of the pressure, but still slid 0.4% against the dollar. As a result, the Dollar Index (99.23, +0.65) gained 0.7%, returning into the neighborhood of this year's high (100.51).

3:35 pm: [BRIEFING.COM]

The dollar traded weak all session, being pressed to moderate losses early this morning on Yen strength- driven by market reaction to underwhelming QE announcements from the Bank of Japan. The index saw modest positive momentum in late afternoon, holding substantive losses into the commodity closes.
The index is now -0.5% to 98.73
Crude traded in a volatile range for most of the day, with early headlines reporting/focusing on a lack of supply coordination between Russian firms and OPEC.
The mid-day Baker Hughes US rig count came in unchanged, with total rigs still at 709. This did little to support the commodities' descent, and the February contract closed -0.7% to $36.27/barrel.
Metals all saw a positive close on the weaker dollar- with both gold and silver seeing sharp mid-morning rallies. Both precious metals closed strong positive for the day: gold at +1.5% to 1064.90 and silver +2.8% to $14.09. Copper ended up 3.4% to $2.11/lb
Natural gas closed +0.9% to $1.77/MMBtu

3:00 pm:

[BRIEFING.COM] As we enter the last hour of trading, the Dow Jones Industrial (-1.6%) significantly underperforms the S&P 500 (-1.2%) as the market trades just above its daily lows.

Contributing to the underperformance of the Dow Jones Industrial Average is heavy-weight component Boeing's (BA 139.37, -6.19) 4.3% loss on the day. This sharp decline follows a downgrade by Wells Fargo to Market Perform from Outperform. This move caused the stock to skid past its 200-day moving average (141.08). Elsewhere in the Dow composite, Disney (DIS 108.34, -3.67) underperforms the broader market with a decline of 3.2% following a downgrade and a price target decrease to $90/share by BTIG.

In Treasuries, the benchmark note is moving off its high with the yield at 2.20% (-2bps).

2:30 pm:

[BRIEFING.COM] The Dow Jones Industrial Average (-1.5%) trails the benchmark index (-1.1%) while the Nasdaq (-1.0%) outperforms.

Switching to corporate news, heavy-weight energy companies Exxon Mobil (XOM 78.37, +0.41) and Chevron (CVX 90.66, +0.12) have climbed out of negative territory with respective gains of 0.6% and 0.2%. This move comes despite oil's recent move below $36.00/bbl. On a related note, energy (-0.6%) is now the third best performer on the day only behind materials (-0.5%), and telecommunication (-0.4%).

In currencies, the Dollar Index has risen from its low, but shows a loss of 0.4% over the session, currently at 98.87.

2:00 pm:

[BRIEFING.COM] As afternoon trading continues, the major averages trade just above their lowest levels of the afternoon. The tech-heavy Nasdaq (-1.1%) remains ahead of the S&P 500 (-1.2%).

In sectors, the financial sector (-2.0%) remains at the bottom of the leaderboard with technology (-1.5%), and consumer discretionary (-1.3%) follows with the next largest loss.

In specific company news, Apple (AAPL 107.03, -1.93) has spent the entire session behin the broader market, showing a loss of 1.8% today. Today's drop brings the company's week to date return to -3.6%.

Turning to commodities, oil is returning to the $36.00/bbl level as WTI crude sinks 0.9% with the pit close approaching shortly.

In Treasuries, the benchmark note remains near its highest level with its yield lower by four basis points to 2.19%.

1:25 pm:

[BRIEFING.COM] Equity indices have ticked up off their worst levels of the day, but they remain much closer to their lows than highs. The S&P 500 trades down 1.3% with four sectors keeping pace or trading behind the broader market. The heavily-weighted financial sector (-2.1%) has spent the first half behind its peers and that remains the case at this time.
Related Quotes

Overnight, the Bank of Japan stepped up its easing efforts by announcing plans to purchase JPY300 billion worth of ETFs starting in April of 2016; however, the market has scoffed at the news. This is noteworthy because stimulus from major central banks has been a big reason for the rally seen in global markets over the past few years. Therefore, a negative market reaction to news of more stimulus could be indicative of a sentiment change as participants begin asking whether global central banks have reached their limits.

1:00 pm:

[BRIEFING.COM] The major averages trade broadly lower at midday with the Dow Jones Industrial Average (-1.6%) leading the retreat while the S&P 500 (-1.3%) trades just ahead.

Equity indices have spent the first half in a steady retreat after the overnight session featured selling in Asia and Europe. Surprisingly, Japan's Nikkei lost 1.9% and the yen has climbed 0.8% against the dollar (121.40) after the Bank of Japan announced a change to its quantitative and qualitative easing program. The central bank revealed plans to begin purchasing ETFs in the amount of JPY300 billion, but the market was not impressed with these measures and the defensive sentiment has carried into the U.S. session.

All ten sectors sport midday losses with a handful of cyclical groups showing relative weakness. The financial sector (-2.0%) sits at the bottom of the leaderboard while the top-weighted technology sector (-1.3%) trades in line with the broader market. Apple (AAPL 106.72, -2.26) has been a soft spot throughout the week and the stock trades down 2.1% today, widening this week's decline to 5.7%.

Elsewhere, the energy sector (-1.0%) had shown some relative strength earlier thanks to a brief rebound in crude oil; however, WTI crude has not been able to stay in the green, trading lower by 0.3% at $36.18/bbl.

Also of note, the consumer discretionary sector (-1.2%) trades a bit ahead of the broader market, which has masked an 8.9% plunge in the shares of CarMax (KMX 52.09, -5.06) after the company reported disappointing results. Meanwhile, another discretionary component, Lennar (LEN 47.20, -1.48), has surrendered 3.0% despite beating bottom-line estimates.

The countercyclical side does not look much better as utilities (-1.3%), consumer staples (-1.3%), and telecom services (-1.3%) trade in line with the S&P 500 while health care (-1.0%) trade a bit ahead of the market. Biotechnology has contributed to the slight outperformance in health care, evidenced by the iShares Nasdaq Biotechnology ETF (IBB 331.89, -0.23), which hovers just below its flat line.

Treasuries are near their highs with the 10-yr yield down five basis points at 2.19% after the benchmark yield tested 2.33% on Wednesday.

12:30 pm:

[BRIEFING.COM] The major averages remain near session lows with the Nasdaq (-0.9%) outperforming the S&P 500 (-1.2%).

In sectors, financials (-1.8%) have widened their losses to round out the leaderboard. Large cap components Citigroup (C 51.65, -1.19), JPMorgan Chase (JPM 65.08, -1.20) and Berkshire Hathaway (BRK.B 131.40, -2.56) underperform the broader sector with losses of 2.5%, 2.0%, and 2.0% respectively.

In commodities, WTI crude has surrendered all of its gains as oil is back at its flat line at $36.27/bbl.

Meanwhile in Treasuries, the 10-yr note remains near its highs with its yield at 2.19% (-3bps).

12:00 pm:

[BRIEFING.COM] As we head into afternoon trading, the major averages continue to trade off their session lows with the Dow Jones Industrial Average lower by 1.3% while the S&P 500 (-1.0%) and Nasdaq (-0.7%) outperform slightly.

All ten sectors are trading lower today as materials (-0.1%) and energy (-0.5%) top the leaderboard. Despite today's outperformance, the two sectors remain at the bottom of the December leaderboard with monthly losses of 5.6% and 11.0%, respectively.

Meanwhile in commodities, we've seen oil maintain its advance on the day. WTI crude is currently trading at $36.71/bbl, higher by 1.2% today. Elsewhere, gold, silver, and copper have seen sharp gains this session with the metals gaining 1.5% (at $1,065.40/ozt), 3.0% (at $14.11/ozt), and 3.1% (at $2.11/lb) respectively.

11:30 am:

[BRIEFING.COM] The major indices hover above their session lows with the tech-heavy Nasdaq (-0.5%) outperforming the S&P 500 (-0.8%).

In sectors, technology (-0.6%) continues to narrowly outperform the broader market. This comes despite the underperformance of large cap components Apple (AAPL 108.07, -0.91) and Microsoft (MSFT 55.16, -0.54), down 0.9% and 1.0% respectively. Surprisingly, Microsoft's slip has come despite an early morning upgrade at Goldman Sachs to 'Hold' from 'Sell.'

Elsewhere, the energy sector (-0.5%) can't seem to gain any traction even while crude oil continues to trade higher by 1.2% to $36.69/bbl. Including today's performance energy is posting a narrow gain on the week of 0.1%.

11:00 am:

[BRIEFING.COM] The stock market has dropped to a new low with the Dow Jones Industrial Average (-1.2%) remaining behind the other indices. The S&P 500 trades down 1.0% in the 2,022 area, which puts the index well below its 50- and 200-day moving averages (2062).

So far, it has been a red day across the board with only the lightly-weighted materials sector (+0.2%) hovering above its flat line. Meanwhile, the countercyclical sectors are backtracking after showing recent strength with utilities (-1.8%) and consumer staples (-1.2%) leading to the downside. On the cyclical side, financials (-1.2%) and consumer discretionary (-1.1%) trade behind the broader market.

In the consumer discretionary sector, Disney (DIS 108.46, -3.54) is trading lower by 3.1% after the company received a downgrade by BTIG with a $90/share price target. This has pushed the stock below its 200-day moving average (108.95).

Switching to Treasuries, the benchmark note continues to trade near its session high. The yield on the 10-yr note is lower two basis points at 2.21%.

10:20 am: [BRIEFING.COM]

The dollar has traded lower all session, losing ground most notably to the Yen- which gained as investors were underwhelmed by announced BOJ QE measures
Measures by the Bank of Japan include a new program to buy exchange traded stock funds and increasing the maturity on purchased bonds
The index made lows near 98.7 earlier, but has since bounced back to recover some losses, now -0.4% to 98.81
Both gold and silver have seen tailwinds from the weakened dollar, holding strong gains in most recent trade. Gold is now +1.8% to $1068.50/oz and silver is +3.1% to $14.13/oz
Oil traded near-flat overnight, before seeing a brief pullback as headlines emerged suggesting that Russian firms have no plans to work with OPEC on near-term supply limitations.
WTI saw a reversal on the open of pit trading however, and has since recovered to modest negatives ahead of Noon rig count data. WTI is now -0.4% to $34.81/barrel
Nat gas trended at moderate losses for most of the session, highlighted by a US Geological Survey report that increased volume estimates below the Texas Barnett Shale field. Similar to oil however, the commodity saw positive momentum in later trade and has since rallied to strong gains of +1.7% to $1.79/MMBtu
Copper is also jogging higher at +3.2% to $2.11/lb

10:00 am:

[BRIEFING.COM] The major indices continue to trade lower with the benchmark index trading lower by 0.6%.

Meanwhile in sectors, financials (-0.9%) continues to show relative weakness. Taking a look at the large cap components in the group, Wells Fargo (WFC 54.74, -0.72) is slightly underperforming the sector after the company announced the sale of their crop insurance business to Zurich Insurance. The company is currently trading lower by 1.3%. Other large percentage constituents aren't faring much better with Chase (JPM 65.50, -0.78) and Citigroup (C 52.25, -0.60) showing losses of 1.1% a piece.

In commodities, oil has been able to hang onto its gains with WTI crude trading up 0.3% at $36.38/bbl.

9:45 am:

[BRIEFING.COM] The major indices have opened lower across the board. The Dow Jones Industrial Average (-0.8%) is leading the losses with the S&P 500 (-0.7%) and the Nasdaq (-0.4%) following.

In sectors, consumer staples (-0.9%), industrials (-0.7%) and financials (-1.2%) are on the bottom of the leaderboard while the technology sector (-0.3%) outperforms.

On a separate note, crude oil has rallied off its low, but the energy component remains lower by 0.2% at $36.28/bbl.

In Treasuries, the benchmark note has ticked down from its high, but remains in the green with the benchmark yield down three basis points at 2.21%.

9:12 am: [BRIEFING.COM] S&P futures vs fair value: -11.20. Nasdaq futures vs fair value: -17.50.

The stock market is on track for a lower open as S&P 500 futures trade 11 points below fair value after sliding from their highs at the start of the European session. However, futures have climbed off their lows over the past two hours and they currently sit near the middle of the overnight range.

The overnight session featured the latest policy statement from the Bank of Japan, which called for a new ETF purchase program in the amount of JPY300 billion. However, the market was not satisfied with these measures as the Nikkei fell 1.9% while the yen spiked about 0.8% against the dollar (121.50). The cautious sentiment has carried over into the European session with most key indices there showing losses of 1.0% or more.

With the market set to start the day on the defensive, Treasuries have advanced overnight, pressuring the 10-yr yield to 2.20% (-4 bps). This puts the benchmark yield on track to end the week higher by six basis points after testing the 2.33% area following Wednesday's fed funds rate hike.

On the corporate front, homebuilders are likely to see some relative strength thanks to better than expected earnings from Lennar (LEN 49.50, +0.82). The stock has climbed 1.7% in pre-market action.

Investors will not receive any economic data today, but trading volume will be elevated considering quadruple witching takes place today.

9:00 am: [BRIEFING.COM] S&P futures vs fair value: -12.20. Nasdaq futures vs fair value: -17.70. The S&P 500 futures trade twelve points below fair value.

Markets in the Asia-Pacific region took a cue from yesterday's dive on Wall Street, ending the week on a mostly lower note. Interestingly, Japan's Nikkei lost 1.9% even though the Bank of Japan expanded its quantitative and qualitative easing program by stepping up its purchases of ETFs and lengthening the average maturity of government securities in the bank's possession. Despite the change, the yen rallied, sending the dollar/yen pair into the 121.35 area after trading near 123.00 overnight. The market response suggests investors believe the BoJ's actions may be insufficient. Elsewhere, China's Shanghai Composite outperformed the region, ending flat after November House Prices increased 0.9% year-over-year (previous 0.1%).

In economic data:
China's November House Prices +0.9% year-over-year (previous 0.1%)
The Bank of Japan leaves key interest rate unchanged at 0.10%, as expected
New Zealand's December ANZ Business Confidence 23.0 (prior 14.6)
South Korea's November PPI -0.3% month-over-month (previous -0.7%); -4.6% year-over-year (last -4.6%)

---Equity Markets---

Japan's Nikkei flirted with its November high, but reversed to end the day lower by 1.9% after the Bank of Japan failed to satisfy a stimulus-hungry market. Every sector ended in the red with health care (-0.4%) registering the slimmest decline. Meanwhile, the remaining groups lost more than 1.2% apiece. To little surprise, energy brought up the rear with a 3.4% plunge. Looking at individual issues, SUMCO, Okuma, Fujitsu, Toho Zinc, Sumitomo Metal Mining, and Kobe Steel ended among the laggards with losses between 3.7% and 4.7%.
Hong Kong's Hang Seng lost 0.5% with energy names showing relative weakness. CNOOC, Petrochina, and China Petroleum & Chemical lost between 1.7% and 1.9% while select financials also struggled. Hang Seng Bank, China Life Insurance, and Bank of East Asia surrendered between 1.1% and 2.0%.
China's Shanghai Composite ended flat. Airlines had a strong showing with China Southern Airlines, Hainan Airlines, and China Eastern Airlines spiking between 2.6% and 7.9%. Financials rebounded from recent weakness with Agricultural Bank of China, Everbright Bank, and Bank of China adding between 0.3% and 0.7%.

European markets trade lower across the board with Spain's IBEX (-1.6%) trailing the region ahead of this weekend's general elections. Despite today's weakness, regional indices remain on track to end the week in the green after suffering two consecutive weekly losses. The Friday session has been relatively quiet on the news front while the euro has held its ground against the dollar, trading at 1.0837. European Central Bank member Ewald Nowotny spoke about the ECB QE program, saying that ECB policy is helping drove down lending rates and that the Austrian banking sector is likely to lose a third of its workforce in the next few years.

Economic data was limited:
Eurozone October Current Account EUR20.40 billion (expected EUR29.90 billion; previous EUR30.10 billion)
Italy's November Wage Inflation +0.2% month-over-month (expected 0.1%; previous 0.1%); +1.3% year-over-year (consensus 1.2%; last 1.2%)
France's November PPI +0.1% month-over-month (prior 0.2%)

---Equity Markets---

Spain's IBEX has tumbled 1.6% with Mediaset, Telefonica, Inditex, and ACS down between 2.5% and 3.4%. On the upside, FCC has surged 23.8% after receiving a capital injection.
Germany's DAX is lower by 1.1% with all but two components in the red. Exporters Daimler and BMW have paced the slide with losses close to 2.5% apiece while financials Deutsche Bank and Commerzbank are both down near 1.1%. On the upside, Deutsche Boerse has climbed 0.8% while HeidelbergCement trades higher by 0.3%.
In France, the CAC trades down 1.2% amid broad weakness. Airbus Group has given up 3.1% while consumer names Louis Vuitton, L'Oreal, Accor, Kering, and Carrefour show losses between 1.6% and 2.9%. Steelmaker ArcelorMittal has bucked the trend, trading higher by 1.2%.
UK's FTSE has slid 0.4% with ARM Holdings diving 2.2%. Homebuilder Barratt Developments is down 1.8% while industrials Ashtead Group and Meggitt have given up 1.5% apiece. A handful of miners have been able to show some strength with Anglo American, BHP Billiton, and Fresnillo up between 0.2% and 1.3%.

8:31 am: [BRIEFING.COM] S&P futures vs fair value: -14.20. Nasdaq futures vs fair value: -21.00.

As pre-market trading enters its final hour, S&P 500 futures have climbed off their lows, but they remain 14 points below fair value.

In Treasuries, the benchmark note has rallied through the night with its yield falling three basis points to 2.20%.

On an unrelated note, the Bank of Japan expanded their quantitative and qualitative easing program by ramping up purchases of ETFs and lengthening the average maturity of government securities held by bank. This change was not seen as a strong enough move, sending the yen higher against the dollar. Currently, the dollar/yen pair is down 0.9% at 121.50 The Dollar Index is lower by 0.3% at 98.94.

In commodities, WTI crude has trimmed its overnight loss, now re-taking the $36.00/bbl price level as the commodity still trades lower 0.4%.

8:03 am: [BRIEFING.COM] S&P futures vs fair value: -17.20. Nasdaq futures vs fair value: -29.10.

U.S. equity futures trade near their pre-market lows after sliding from overnight highs at the start of the European cash session. The S&P 500 futures trade 17 points below fair value.

Unlike equity futures, Treasuries have marched higher throughout the night, pressuring the 10-yr yield to 2.20% (-4 bps).

Investors will not receive any economic data today.

In U.S. corporate news of note:

Lennar (LEN 49.50, +0.82): +1.7% after beating earnings estimates on in-line revenue.
BlackBerry (BBRY 8.31, +0.51): +6.5% after the company reported a beat on earnings and guided Q4 revenue above consensus.
Darden Restaurants (DRI 60.00, +1.61): +2.8% after beating earnings estimates and raising its guidance.
Red Hat (RHT 83.07, +4.21): +5.3% after beating earnings estimates and guiding Q4 revenue above consensus.
DuPont (DD 65.71, 0.48) +0.7% after receiving an upgrade from Bank of America/Merrill Lynch.
CarMax (KMX 52.60, -4.55): -8.1% in reaction to disappointing earnings and revenue.

Reviewing overnight developments:

Asian Markets ended mostly lower. Japan's Nikkei -1.9%, China's Shanghai Composite UNCH, and Hong Kong's Hang Seng -0.5%
In economic data:
China's November House Prices +0.9% year-over-year (previous 0.1%)
New Zealand's December ANZ Business Confidence 23.0 (prior 14.6)
South Korea's November PPI -0.3% month-over-month (previous -0.7%); -4.6% year-over-year (last -4.6%)
In news:
The Bank of Japan announced a new JPY300 billion ETF purchase program, which was deemed insufficient by the market as the yen strengthened, sending the dollar/yen pair into the 121.30 area after testing 123.00 overnight

Major European indices trade lower across the board. Germany's DAX -1.2%, France's CAC -1.4%, and UK's FTSE -0.6%. Elsewhere, Italy's MIB -1.2% and Spain's IBEX -1.6%
Economic data was limited:
Eurozone October Current Account EUR20.40 billion (expected EUR29.90 billion; previous EUR30.10 billion)
Italy's November Wage Inflation +0.2% month-over-month (expected 0.1%; previous 0.1%); +1.3% year-over-year (consensus 1.2%; last 1.2%)
France's November PPI +0.1% month-over-month (prior 0.2%)
In news:
Spain's IBEX shows relative weakness ahead of this weekend's general election, which is likely to show big gains for populist Podemos and Ciudadanos parties

5:57 am: [BRIEFING.COM] S&P futures vs fair value: -10.50. Nasdaq futures vs fair value: -19.00.

5:57 am: [BRIEFING.COM] Nikkei...18986.80...-366.80...-1.90%. Hang Seng...21755.56...-116.50...-0.50%.

5:57 am: [BRIEFING.COM] FTSE...6074.79...-27.80...-0.50%. DAX...10689.05...-28.00...-0.50%.

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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