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 Post subject: February 3rd Wednesday Trade Results - Profit $27125.00
PostPosted: Thu Feb 04, 2016 6:42 am 
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Joined: Sat Jan 10, 2009 2:06 pm
Posts: 4335
Location: Canada
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Trade Results of M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
Price Action Trading (no technical indicators)
Phone: +1 708 572-4885
Free Chat Room: http://www.thestrategylab.com/tsl/forum/viewforum.php?f=164
Business Hours: 8am - 5pm est (Mon - Fri)
wrbanalysis@gmail.com (24/7)
http://twitter.com/wrbtrader (24/7)

Attachment:
020316-wrbtrader-Price-Action-Trading-PnL-Blotter-Profit+27125.00.png
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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 @ $27125.00 dollars or +542.50 points, Light Crude Oil CL ($CL_F) futures @ $0.00 dollars or +0.00 points, Gold GC ($GC_F) futures @ $0.00 dollars or +0.00 points and EuroFX 6E ($6E_F) futures @ $0.00 dollars or +0.0000 ticks. Total Profit @ $27125.00 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=153&t=2282

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=285&t=3049 contains brief information about trading plan, market context, brokers, trading time frames, position size management and other discussions.

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Market Context Summaries

The below summaries by Bloomberg, Briefing, Reuters and Yahoo! Finance helps me to do a quick review of the fundamentals, FED/ECB/BOE/IMF actions or any important global economic events (e.g. Eurozone, MarketWatch.com) that had an impact on today's price action in many trading instruments I monitor during the trading day. Simply, I'm a strong believer that key market events causes key changes in supply/demand and volatility resulting in trade opportunities (swing points and strong continuation price actions) that reach profit targets. Thus, I pay attention to these key market events, intermarket analysis (e.g. Forex EurUsd, EuroFX 6E futures, Gold GC futures, Light Crude Oil (WTI) CL & Brent Oil futures, Eurex DAX futures, Euronext FTSE100 futures, Emini ES futures, Emini TF futures, Treasury ZB futures and U.S. Dollar Index futures) while using WRB Analysis from one trade to the next trade to give me the market context for price action trading before the appearance of my technical analysis trade signals. Therefore, I maintain these archives to allow me to understand what was happening on any given trading day in the past involving key market events to help better understand my trade decisions (day trading, swing trading, position trading)...something I can not get from my broker statements alone. Further, most financial websites remove (delete) their archives after a few years to make room for new content. Therefore, I maintain my own archives of the news content so that I have it available for me when financial websites no longer archives their content.

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click on the above image to view today's price action of key markets


4:15 pm: [BRIEFING.COM] The stock market ended a volatile Wednesday session on a mixed note as the major averages rallied off their opening lows. Today's advance can be attributed to a lockstep rally in oil, an easing of the strong dollar, and dovish remarks from New York Fed President and FOMC voting member William Dudley. The Dow Jones Industrial Average (+1.1%) finished ahead of the S&P 500 (+0.5%) and the Nasdaq Composite (-0.3%).

Today's session began on a lower note as equities sold off after January's reading of the ISM Service Index showed a faster than expected deceleration in the service sector. Relief from the heavy selling pressure came from an unexpected source, as oil rebounded despite bearish readings from both the API and EIA weekly inventory reports. Oil was able to rally as participants viewed a nosedive in the U.S. Dollar Index to be more beneficial to the commodity than the impact from a larger than expected inventory build. WTI crude closed its session 8.0% higher at $32.29/bbl.

Divergence in monetary policy between central banks had strengthened the U.S. dollar through 2015, but a string of poorer than anticipated economic data has called future rate increases into question. Underpinning this idea were statements from New York Fed President and FOMC voting member William Dudley, who stated that financial conditions have tightened since December's rate increases and that additional strength from the dollar could have "significant consequences" for the U.S. economy.

Commodity-sensitive materials (+3.3%) and energy (+4.0%) were able to top the leaderboard throughout the day while heavyweights financials (-0.1%), consumer discretionary (-0.3%), and technology (-0.4%) underperformed.

The energy space was able rally as strength from oil pushed the sector higher. Energy giant Exxon Mobil (XOM 78348, +3.89) outperformed in the group with a gain of 5.2% as the company recovered from yesterday's post-earnings sell off. Anadarko Petroleum (APC 42.49, +3.23) was able to continue its strong showing from yesterday's earnings report, climbing 8.2%.

The beleaguered financial sector saw early pressure but was able to shape a nice reversal in the afternoon. Supporting this move was a reversal in money center banks like Bank of America (BAC 13.03, -0.20) and Wells Fargo (WFC 47.60, -0.85), both of which were down more than 3.9% before ending their days with respective losses of 1.5% and 1.8%.

In the heavyweight technology space, Facebook (FB 112.69, -1.92) ended its post-earnings winning streak. The stock lost 2.0% today but remains up 19.3% since last Wednesday's report. Alphabet (GOOGL 749.38, -31.53) continued to struggle to capitalize on its earnings beat, declining 4.0%.

In the health care space (+0.5%), biotechnology showed early weakness but ended the day ahead of the broader sector. The iShares Nasdaq Biotechnology ETF (IBB 264.00, +2.99) ended its day higher by 1.2%.

Today's participation followed recent tradition with more than a billion shares changing hands on the NYSE floor.

Treasuries ended their day on their lows with the yield on the 10-yr note higher by three basis points at 1.88%.

Today's economic data included the weekly MBA Mortgage Index, the ADP Employment Change for January, and January's ISM Services Index:

The MBA Mortgage Index showed a seasonally adjusted decrease of 2.6% in mortgage applications from last week's reading of an increase of 8.8%.
The January ADP Employment Change showed 205,000 positions were added to private sector payrolls in January (Briefing.com consensus 190,000).
The job gains were centered in small and medium-sized businesses, which showed increases of 79,000 and 82,000, respectively.
They came almost entirely from the service-providing sector, which produced 192,000 new positions, including 44,000 in the professional and business sector.
The ISM Non-Manufacturing Index for January dipped to 53.5 (Briefing.com consensus 55.0) from an upwardly revised 55.8 reading for December (from 55.3).
This report is bothersome from a broader standpoint since it lends weight to the notion that the manufacturing slowdown is having a spillover effect on the services side of the economy, which accounts for the vast majority of GDP.
The ISM Non-Manufacturing Index has been trending lower since last July when it peaked at 59.6.
The January reading is the lowest level for the index since March 2014, yet it still marks the 72nd consecutive month of being above 50.0.
The providers of the report indicate that a reading above 48.9 for the ISM Non-Manufacturing Index, over a period of time, generally indicates an expansion of the overall economy, and that the past relationship suggests the January reading of 53.5 corresponds to real GDP growth of 1.8% on an annualized basis.

Tomorrow's economic data includes the 7:30 ET release of the Challenger Job Cuts report while weekly Initial Claims (Briefing.com consensus 275k), the preliminary Q4 Productivity (Briefing.com consensus -1.7%) and Unit Labor Cost (Briefing.com consensus 3.8%) will all be reported at 8:30 ET. The day's data will be topped off with the 10:00 ET release of Factory Orders for December (Briefing.com consensus -2.6%).

Russell 2000 -11.1% YTD
Nasdaq -10.1% YTD
S&P 500 -6.4% YTD
Dow Jones -6.3% YTD

3:40 pm: [BRIEFING.COM]

Another volatile day in commodities
WTI oil futures initially sold off a little, temporarily falling below $30/barrel following EIA storage data, which showed a build in oil and gasoline inventories
However, WTI oil quickly reversed course and ripped up near $32/barrel
Mar crude oil ended today's session +8% at $32.29/barrel
In other energy, Mar nat gas rose 1% to $2.04/MMBtu
Notable weakness in the dollar gave metals a hand
Mar silver rallied 3% to close floor trading at $14.73/oz, while Apr gold ended +1% at $1141.30/oz
Mar copper gained 2% to $2.10/lb

3:05 pm:

[BRIEFING.COM] The S&P 500 (+0.5%) and the Dow Jones Industrial Average (+1.1%) both trade above their flat lines but off session highs.

Thanks to the continued rebound, only four sectors remain in negative territory with financials (UNCH) rebounding from being down more than 1.8%. In front of the pack, commodity-sensitive energy (+3.2%) and materials (+3.0%) have outperformed as commodities rallied throughout the session.

In the materials space, Dow Chemical (DOW 46.66, +1.63) has rallied 3.6% while merger partner DuPont (DD 58.53, +2.35) has climbed 4.2%. Syngenta (SYT 80.06, +1.49) has pulled back from its high that it reached early in the session after confirming it will be acquired by ChemChina for over $43 billion.

Treasuries have moved back to session lows during the recent rally in equities as the yield on the 10-yr note gains three basis points to 1.88%.

2:35 pm:

[BRIEFING.COM] The major averages have rallied higher in recent action with the Dow Jones Industrial Average (+0.6%) climbing into positive territory while the S&P 500 (UNCH) flirts with its flat line.

Financials (-0.4%) have rallied as of late as the sector trims its loss on the session. Energy (+2.8%) and materials (+2.7%) continue to show the strongest performances of the day.

In the industrial space (+1.3%), Eaton (ETN 52.05, +3.05) leads the group as it gains 6.4% after reporting in line-revenue with EPS above analyst expectations. The company also issued in-line guidance for full year 2016. Large-cap Boeing (BA 120.93, +3.40) and Caterpillar (CAT 63.32, +2.66) have rallied as the names have seen some welcome easing in the dollar today. The companies are up 2.8% and 4.3%, respectively.

On the commodities front, WTI crude finished its pit session higher by 8.0% at $32.29/bbl.

2:00 pm:

[BRIEFING.COM] The stock market has trended lower in recent action with the major averages trading in the lower half of their trading ranges. The Nasdaq Composite (-1.8%) remains behind the S&P 500 (-1.1%).

Health care (-1.5%) declined in recent action where it follows consumer discretionary (-1.7%) and technology (-1.7%) near the bottom of the board.

In the health care space, biotechnology drifts lower once again as it shows relative weakness in the space. The iShares Nasdaq Biotechnology ETF (IBB 254.79, -6.22) has slipped 2.4%. In the sub-group Gilead Sciences (GILD 85.15, +2.46) outperforms after reporting a fourth quarter earnings beat and raising its dividend 9.0% for Q2. In the broader sector, large-cap Merck (MRK 48.62, -1.79) has fallen 3.6% after issuing below consensus EPS guidance for full year 2016.

On the commodities front, WTI crude has inched towards its session high again as it shows a 6.4% at $31.80/bbl. Gold has notched a 3-month high with the commodity gaining 1.6% to $1,145.60/ozt.

1:35 pm:

[BRIEFING.COM] The major U.S. indices have dropped back in negative territory in recent trade as the Nasdaq heavily undeperforms the broad market.

A look inside the Dow Jones Industrial Average shows that Merck (MRK 48.92, -1.49), Microsoft (MSFT 51.51, -1.49), and UnitedHealth Group (UNH 11093, -2.95) are underperforming. Merck is under pressure following this morning's Q4 report, in which it offered light 2016 guidance.

Conversely, Caterpillar (CAT 62.53, +1.86) is the best-performing Dow component as industrials outperform the broad market.

For the week, the DJIA is down 2.1%, and has extended its 2016 losses to 7.5%

1:10 pm:

[BRIEFING.COM] The stock market trades broadly lower at midday but the major averages have rebounded from steeper losses. Concerns took a more domestic focus today as this morning's disappointing ISM Services Index numbers lead to a large selloff. At this juncture, the tech-heavy Nasdaq (-1.1%) underperforms the S&P 500 (-0.6%) and the Dow Jones Industrial Average (UNCH).

Today's session started on an optimistic note with oil regaining the $30.00/bbl level overnight, despite a bearish API inventory report and an ADP Employment figure beating estimates. This goodwill would not last too long though as equities sold off after the ISM Service Index number showed a faster than expected deceleration in the service sector.

Equity markets reached their lows once a larger than expected build in crude oil was reported in the EIA weekly inventories report. The figure showed a build of 7.792 million barrels compared to the 4.760 million barrel estimate. There was a turnaround in the commodity as participants felt that today's nosedive in the U.S. Dollar Index helped combat the detriment of a build. WTI crude currently trades higher by 6.3% at $31.78/bbl.

Commodity-sensitive materials (+1.9%) and energy (+1.8%) show the largest gains while heavyweights technology (-1.2%) and financials (-1.5%) show the steepest declines.

The energy space has bounced off its session low as it was fueled higher by the reversal in oil. Energy giant Exxon Mobil (XOM 76.86, +2.27) outperforms the space with a gain of 3.0% as the company recovers from yesterday's post-earnings sell off. Fellow energy giant Chevron (CVX 83.33, +2.08) sees similar action, as it gains 2.6%.

Money center banks underperform in the financials group as Bank of America (BAC 12.70, -0.52) and Wells Fargo (WFC 47.00, -1.45) show losses of 4.0% and 3.0%, respectively. The group continues to unwind after dovish remarks from New York Fed President and FOMC voting member William Dudley cast doubt on the Fed's ability to continue raising rates this year. President Dudley stated that conditions have tightened since the December rate increase and that additional strength from the dollar could have "significant consequences".

In the heavily-weighted technology space, Alphabet (GOOG 736.52, -28.13) has fallen 3.7% today as the company continues to lose momentum despite reporting an earnings and revenue beat in yesterday's Q4 earnings report. On a related note, Facebook (FB 111.36, -3.25) appears to be losing steam after reporting its earnings beat last week, but the stock remains higher by 17.9% since last Wednesday's report.

The U.S. dollar index continues to show weakness as the index has slipped 1.4% thus far today. The index is feeling pressure as U.S. growth concerns put future rate increases in question with the euro benefiting from the move. The single currency has added 1.6% against the dollar (1.1075).

Treasuries have traded back to flat territory after the complex felt buying pressure at the height of the selloff. Currently, the yield on the 10-yr note is unchanged at 1.85%.

Today's economic data has included the weekly MBA Mortgage Index, the ADP Employment Change for January, and January's ISM Services Index.

The MBA Mortgage Index showed a seasonally adjusted decrease of 2.6% in mortgage applications from last week's reading of an increase of 8.8%.
The January ADP Employment Change showed 205,000 positions were added to private sector payrolls in January (Briefing.com consensus 190,000).
The job gains were centered in small and medium-sized businesses, which showed increases of 79,000 and 82,000, respectively.
They came almost entirely from the service-providing sector, which produced 192,000 new positions, including 44,000 in the professional and business sector.
The ISM Non-Manufacturing Index for January dipped to 53.5 (Briefing.com consensus 55.0) from an upwardly revised 55.8 reading for December (from 55.3).
This report is bothersome from a broader standpoint since it lends weight to the notion that the manufacturing slowdown is having a spillover effect on the services side of the economy, which accounts for the vast majority of GDP.
The ISM Non-Manufacturing Index has been trending lower since last July when it peaked at 59.6.
The January reading is the lowest level for the index since March 2014, yet it still marks the 72nd consecutive month of being above 50.0.
The providers of the report indicate that a reading above 48.9 for the ISM Non-Manufacturing Index, over a period of time, generally indicates an expansion of the overall economy, and that the past relationship suggests the January reading of 53.5 corresponds to real GDP growth of 1.8% on an annualized basis.

12:35 pm:

[BRIEFING.COM] The major averages have ticked lower in recent trade as they continue to lose traction near their flat lines. The tech-heavy Nasdaq (-1.0%) remains behind the S&P 500 (-0.6%).

The leaderboard is split between advancers and decliners as commodity-sensitive materials (+1.8%) and energy (+1.5%) post the largest gains while heavyweights technology (-1.1%) and financials (-1.4%) show the steepest declines.

In the heavily-weighted technology space, Alphabet (GOOG 737.00, -27.65) has slid 3.6% today as the company continues to lose momentum despite reporting an earnings and revenue beat during yesterday's Q4 earnings report. Facebook (FB 111.75, -2.81) finally appears to be losing steam after reporting its earnings beat last week, the company has gained 18.3% since they reported last Wednesday. The high-beta chipmakers show relative strength today, evidenced by the smaller 0.3% decline in the PHLX Semiconductor Index. However, component Intel (INTC 28.81, -0.73) has shown relative weakness with a 2.5% decline.

12:00 pm:

[BRIEFING.COM] The major averages have lost some traction in recent trade with the Dow Jones Industrial Average (UNCH) slipping back into negative territory as the S&P 500 (-0.5%) and the Nasdaq Composite (-0.8%) continue to try to trim their losses.

Technology (-0.7%) now trails consumer discretionary (-0.7%) as the two groups follow financials (-1.4%) on the bottom of the leaderboard.

In the heavily-weighted financial sector, money center banks underperform in the group with Bank of America (BAC 12.87, -0.36) and Wells Fargo (WFC 47.15, -1.30) showing losses of 2.8% and 2.7%, respectively. Meanwhile, American International Group (AIG 53.43, -1.90) has slipped by 3.5% after receiving a downgrade at William Blair from 'Outperform' to 'Market Perform'. The financial sector has lost 13.3% since the beginning of 2016, as it underperforms all the remaining sectors in that period.

On the commodities front, WTI crude has managed to climb 5.9% today as the energy component trades at $31.67/bbl.

Treasuries have ticked lower with the yield on the 10-yr note now unchanged at 1.85%.

11:35 am:

[BRIEFING.COM] The major indices float above their recent levels with the S&P 500 (-0.6%) trimming its losses as it follows the Dow Jones Industrial Average (-0.2%).

Six sectors currently trade in negative territory as the market attempts to continue its rebound effort. Commodity-sensitive energy (+1.9%) and materials (+1.7%) outperform the other groups.

In the consumer discretionary space (-1.0%), Amazon (AMZN 532.82, -19.28) continues to weigh on the broader sector as the stock tumbles 3.6% today. Elsewhere in the space, Chipotle Mexican Grill (CMG 458.78, -16.89) underperforms after disclosing a subpoena broadening the scope of the previously announced investigation. Finally, General Motors (GM 28.48 -1.17) has fallen 4.0% despite reaffirming positive full year 2016 guidance during its earnings report.

The U.S. dollar index continues to show weakness as the index has slipped 1.4% thus far today. The index is feeling pressure as U.S. growth concerns put future rate increases in question while parity issues with the Euro adapt from possible over extension.

11:00 am:

[BRIEFING.COM] The major averages have rallied off their session thanks to a positive move in oil. At this juncture, the tech-heavy Nasdaq (-1.1%) trails the S&P 500 (-0.7%) and the Dow Jones Industrial Average (-0.4%).

The stock market was kicked lower after a poorer than expected reading from ISM non-manufacturing PMI, which came in at 53.5 from a December reading of 55.3. The recent rebound effort can be attributed to similar action in oil which has seen WTI climb 3.1% after flirting with negative territory. Seven of ten sectors currently trade in negative territory with financials (-1.8%) and consumer discretionary (-1.2%) leading the downside.

The energy space (+1.0%), has been able to bounce off its session low thanks to crude oil. Energy giant Exxon Mobil (XOM 75.87, +1.27) outperforms the space with a gain of 1.9% after yesterday's sell off following its earnings report. Elsewhere, independent oil and gas company ConocoPhillips (COP 37.22, +0.64) has climbed 1.5%.

Treasuries have moved off session highs as equities pare their losses. The yield on the 10-yr note fell one basis point to 1.83%.

10:45 am: [BRIEFING.COM]

WTI oil futures were rallying this morning ahead of the EIA storage data and also following the API data and Chinese PMI data
Mar crude oil rose near $31/barrel ahead of the data, however, sold off post EIA data, momentarily falling below $30/barrel
Mar crude is now +0.9% at $30.15/barrel
Mar natural gas, on the other hand, is down 1% at $2.01/MMBtu
The dollar index is notably weaker this morning, which is giving metals a boost this morning
Mar silver is +2.6% at $14.66/oz in current activity, while Apr gold is +0.9% at $1137.60/oz
Mar copper is +1.3% at $2.08/lb
All three metals listed are near today's high

10:00 am:

[BRIEFING.COM] The major averages trade on a mixed note with the Nasdaq Composite (-0.3%) trailing the S&P 500 (UNCH) and the Dow Jones Industrial Average (+0.2%).

Heavily-weighted financials (-1.0%), consumer discretionary (-0.5%), and health care (-0.2%) lead the retreat.

Treasuries have ticked higher with the yield on the 10-yr note now only higher by one basis point at 1.86%.

Just reported, the ISM Services Index for January fell to 53.5 from 55.3 while the Briefing.com consensus expected a decrease to 55.0.

9:50 am:

[BRIEFING.COM] The major averages have lifted from their flat lines but trend lower as the S&P 500 (+0.2%) leads the tech-heavy Nasdaq (UNCH).

Eight of ten sectors have opened in positive territory with only financials (-0.6%) and consumer discretionary (-0.3%) in the red. Commodity-sensitive materials (+1.4%) leads the advancers.

In the health care space (+0.2%), biotechnology continues to show relative weakness, evidenced by a 1.0% decline in the iShares Nasdaq Biotechnology ETF (IBB 258.67, -2.34).

The U.S. Dollar Index has continued its tumble after dovish remarks from New York Fed President and FOMC voting member William Dudley. President Dudley stated that conditions have tightened since the December rate increase and that additional strength from the dollar could have "significant consequences". The U.S. Dollar index is lower by 0.8% at 98.10

Looking ahead, January's ISM Services Index (Briefing.com consensus 55.0) will be reported to 10:00 ET

9:15 am: [BRIEFING.COM] S&P futures vs fair value: +13.30. Nasdaq futures vs fair value: +27.60.

The stock market is on track for a modestly higher open with the S&P 500 futures trading 13 points above fair value.

Futures have rallied alongside oil this morning as WTI crude has climbed 3.1% ($30.79/bbl) despite a bearish reading from yesterday's weekly API Inventory report. On a related note, the EIA Inventories report will be released at 10:30 ET.

On the corporate front, Yahoo (YHOO 28.64, -0.42) has slipped 1.5% after the company announced that it plans to reduce its workforce by roughly 15.0%. The news followed the company issuing revenue estimates for the first quarter and full year 2016 below analyst expectations. Meanwhile, General Motors (GM 30.16, +0.51) has gained 1.7% after beating analyst estimates regarding EPS and revenue in the fourth quarter.

In economic data, the ADP National Employment Report was released earlier and it reported an increase of 205,000 in January (Briefing.com consensus 190,000). This report precedes Friday's more influential government Employment Report, which is expected to show a 188K increase in Nonfarm Payrolls. This estimate is down from last month's 292K increase.

Looking ahead, January's ISM Services Index (Briefing.com consensus 55.0) will be reported at 10:00 ET. The ISM Non-Manufacturing Index has been mostly decelerating since July and participants probably won't be comforted by a January reading that shows further deceleration. It will be interesting then to see how the market reacts to this report, which typically doesn't have much market-moving cachet.

8:57 am: [BRIEFING.COM] S&P futures vs fair value: +12.00. Nasdaq futures vs fair value: +24.00.

The S&P 500 futures trade 12 points above fair value.

Equity markets across Asia had another rough outing on Wednesday, ending the trading day on a lower note. Japan's Nikkei fell 3.2%, leading the region lower. The index ticked up off its low midway through the session, but the attempted rebound was retraced swiftly even though Bank of Japan Governor Haruhiko Kuroda channeled his inner Mario Draghi, saying "the Bank of Japan will do whatever it can to reach the price target." It is worth mentioning that Nikkei reported plans to cancel next month's 10-yr auction due to expectations of negative yields stretching into longer-dated maturities. Elsewhere, investors received some better than expected data from China, but the news lent little support to the beleaguered market.

In economic data:
China's January Caixin Services PMI 52.4 (expected 50.5; previous 50.2)
Hong Kong's January Manufacturing PMI 46.1 (previous 46.4)
Australia's December Building Approvals +9.2% month-over-month (expected 5.0%; prior -12.4%) and December trade deficit widened to AUD3.54 billion from AUD2.73 billion (expected deficit of AUD2.50 billion). Imports fell 1.0% month-over-month (previous -1.0%) and exports dropped 5.0% month-over-month (last 1.0%)
New Zealand's Q4 Employment Change +0.9% quarter-over-quarter (expected 0.8%; previous -0.4%), Q4 Unemployment Rate 5.3% (consensus 6.1%; last 6.0%), and Q4 Participation Rate 68.4% (consensus 68.9%; last 68.6%). Also of note, Q4 Labor Cost Index +0.4% quarter-over-quarter (expected 0.5%; last 0.4%)

---Equity Markets---

Japan's Nikkei plunged 3.2% with every sector ending in the red. Materials (-4.7%), industrials (-4.2%), technology (-3.9%), and financials (-3.8%) paced the slide while energy (-0.1%) and health care (-1.4%) outperformed. Casio Computer, Kobe Steel, JTEKT, and Nomura Holdings lost between 10.0% and 16.8% while Mitsubishi Heavy Industries, Sumitomo Heavy Industries, Nippon Steel & Sumitomo Metal, and Kawasaki Heavy Industries surrendered between 7.0% and 8.4%.
Hong Kong's Hang Seng lost 2.3% with all but three names ending in the red. Lenovo Group tumbled 10.2% after its earnings beat was marred by a drop in revenue. Property-related names like Hang Lung Properties, New World Development, Cheung Kong Property Holdings, and Henderson Land fell between 2.8% and 4.2%.
China's Shanghai Composite lost 0.4%. Agricultural Bank of China and Bank of China posted respective losses of 1.4% and 0.9% while Pacific Securities, China Shipbuilding, and Aluminum Corp of China gained between 0.3% and 0.7%.

Major European indices have struggled in the early going and they currently trade lower. Investors received a heavy dose of economic data today, which, like the market response, has been mixed.

In economic data:
Eurozone January Services PMI 53.6, as expected (previous 53.6) and December Retail Sales +0.3% month-over-month, as expected (previous -0.3%); +1.4% year-over-year (consensus 1.5%; last 1.6%)
Germany's January Services PMI 55.0 (expected 55.4; previous 55.4)
UK's January Services PMI 55.6 (consensus 55.3; last 55.5)
France's January Services PMI 50.3 (expected 50.6; previous 50.6)
Italy's January Services PMI 53.6 (consensus 54.2; last 55.3) and January CPI -0.2% month-over-month, as expected (previous 0.0%)
Spain's January Services PMI 54.6 (expected 54.4; last 55.1)

---Equity Markets---

Germany's DAX is lower by 0.4% with Deutsche Bank leading the retreat. The stock has surrendered 3.4% while other heavyweights like Volkswagen, Lufthansa, Merck, Bayer, and Allianz show losses between 1.2% and 2.3%. On the flip side, Linde has added 1.3%.
UK's FTSE trades down 0.2% with financials under pressure. Standard Chartered, Barclays, HSBC, and Royal Bank of Scotland are down between 2.0% and 4.5% while Prudential has bucked the trend, climbing 5.0%. Miners have shown strength with Anglo American, Rio Tinto, and Glencore up between 1.6% and 2.5%.
France's CAC trades lower by 0.1% with bank shares on the defensive. BNP Paribas, Credit Agricole, and Societe Generale are all down near 2.0% while Renault is the weakest performer, down 3.5%. A handful of consumer names outperform with Kering and Pernod Ricard up 0.5% and 2.9%, respectively, while Louis Vuitton has spiked 6.8% after strong sales in the US and Europe outweighed disappointing results in China.

8:30 am: [BRIEFING.COM] S&P futures vs fair value: +4.00. Nasdaq futures vs fair value: +5.00.

As pre-market trading continues, S&P 500 futures currently trade four points above fair value.

In corporate news, health care large cap Merck & Co. (MRK 49.25, -1.16) has been tripped up in the early going after the company reported fourth quarter revenue below analyst expectations despite beating on an EPS basis. Additionally, the company issued FY16 guidance between $3.60-3.75. Elsewhere in the health care space, Gilead Sciences (GILD, 84.00, +1.30) has gained 1.6% after reporting an EPS and revenue beat after yesterday's close. Gilead also raised its quarterly dividend to $0.47 starting in Q2.

Treasuries have ticked higher in recent action with the yield on the 10-yr note now higher by two basis points at 1.87%.

On the economic front, the ADP National Employment Report rose by 205,000 in January (Briefing.com consensus 190,000) while the December reading was revised higher to 267,000 from 257,000. The ADP reading precedes Friday's more influential government Employment Report, which is expected to show a 188K increase in Nonfarm Payrolls, down from last month's 292K increase.

8:00 am: [BRIEFING.COM] S&P futures vs fair value: +2.00. Nasdaq futures vs fair value: +2.50.

U.S. equity futures trade narrowly higher with the S&P 500 futures trading two points above fair value. Futures hold a defensive posture ahead of employment and service sector growth figures while crude oil has ticked higher despite a bearish API inventory reading. On a related note, EIA inventories are scheduled to be released at 10:30 ET.

Meanwhile, Treasuries have ticked lower with the yield on the 10-yr note higher by three basis points at 1.88%.

On the economic front, the weekly MBA Mortgage Index was reported at 7:00 ET, showing a seasonally adjusted decrease of 2.6% in mortgage applications. Meanwhile, the ADP Employment Change for January (Briefing.com consensus 190k) and January's ISM Services Index (Briefing.com consensus 55.0) will cross the wires at 8:15 ET and 10:00 ET, respectively.

In U.S. corporate news of note:

General Motors (GM 30.07, +0.42): +1.4% following the company reporting EPS and revenue above analyst expectations in Q4
Chipotle Mexican Grill (CMG 448.90, -26.77): -5.6% after the company announced a subpoena broadening the scope of the U.S. attorney's office for the Central District of California
Syngenta (SYT 81.31, +2.74): +3.5% following the company confirming that it will be acquired by ChemChina for over $43 billion
Gilead Sciences (GILD 83.80, +1.11): +1.4% after the company reported a beat on Q4 earnings but guided FY 16 sales towards the low end of their guidance
Merck & Co. (MRK 49.00, -1.41): -2.8% following the company reporting an EPS beat on light revenue
Yahoo (YHOO 28.60, -0.46): -1.6% after the company issued below consensus revenue for Q1 and FY16

Reviewing overnight developments:

Asian markets ended broadly lower with Japan's Nikkei -3.2%, Hong Kong's Hang Seng -2.3%, and China's Shanghai Composite -0.4%.
In economic data:
China's January Caixin Services PMI 52.4 (expected 50.5; previous 50.2)
Hong Kong's January Manufacturing PMI 46.1 (previous 46.4)
Australia's December Building Approvals +9.2% month-over-month (expected 5.0%; prior -12.4%) and December trade deficit widened to AUD3.54 billion from AUD2.73 billion (expected deficit of AUD2.50 billion). Imports fell 1.0% month-over-month (previous -1.0%) and exports dropped 5.0% month-over-month (last 1.0%)
New Zealand's Q4 Employment Change +0.9% quarter-over-quarter (expected 0.8%; previous -0.4%), Q4 Unemployment Rate 5.3% (consensus 6.1%; last 6.0%), and Q4 Participation Rate 68.4% (consensus 68.9%; last 68.6%). Also of note, Q4 Labor Cost Index +0.4% quarter-over-quarter (expected 0.5%; last 0.4%)
In news:
Bank of Japan Governor Haruhiko Kuroda stated that the Bank of Japan will do whatever it can to reach the price target.
Nikkei reported plans to cancel next month's 10-yr auction due to expectations of negative yields stretching into longer-dated maturities.

European indices trade lower with Germany's DAX -1.1%, the U.K.'s FTSE -0.6%, and France's CAC -0.5%.
In economic data:
Eurozone January Services PMI 53.6, as expected (previous 53.6) and December Retail Sales +0.3% month-over-month, as expected (previous -0.3%); +1.4% year-over-year (consensus 1.5%; last 1.6%)
Germany's January Services PMI 55.0 (expected 55.4; previous 55.4)
UK's January Services PMI 55.6 (consensus 55.3; last 55.5)
France's January Services PMI 50.3 (expected 50.6; previous 50.6)
Italy's January Services PMI 53.6 (consensus 54.2; last 55.3) and January CPI -0.2% month-over-month, as expected (previous 0.0%)
Spain's January Services PMI 54.6 (expected 54.4; last 55.1)

5:55 am: [BRIEFING.COM] S&P futures vs fair value: +0.80. Nasdaq futures vs fair value: -2.80.

5:55 am: [BRIEFING.COM] Nikkei...17191...-559.40...-3.20%. Hang Seng...18992...-455.00...-2.30%.

5:55 am: [BRIEFING.COM] FTSE...5880.71...-41.80...-0.70%. DAX...9474.78...-106.30...-1.10%.

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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