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 Post subject: March 2nd Wednesday Trade Results - Profit $2062.50
PostPosted: Thu Mar 03, 2016 7:39 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:
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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 @ $2062.50 dollars or +41.25 points, Light Crude Oil CL ($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 @ $2062.50 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=154&t=2304

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.

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

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 its Wednesday affair on a higher note as investors focused on rate hike implications from a better-than-expected reading of the ADP National Employment Report and rising oil prices. Meanwhile, strong sector leadership from the financial group (+0.9%) helped fuel today's advance. The S&P 500 (+0.4%) managed to outperform both the Nasdaq Composite (+0.3%) and the Dow Jones Industrial Average (+0.2%).

Before the opening bell, investors digested the February ADP Employment Change report, which indicated an increase of 214,000 over the past month (Briefing.com consensus 190,000). This above-consensus reading added to the recent slew of positive data that may lend itself to rationalizing a potential rate hike sooner than the market currently expects. Additionally, this report precedes the more influential Employment Situation Report, which will be released on Friday.

Separately, the Department of Energy's weekly inventory report showed a larger-than-expected crude inventory build (10.4 million barrel build; est 3.6 million). Despite the bearish reading oil managed to rise sharply after the report before ending its day off its best level. WTI crude ended its pit session higher by 0.5% at $34.57/bbl.

The positive move in oil helped the commodity-sensitive energy space (+2.5%) top the leaderboard as telecom services (+1.1%) and the financial sector (+0.9%) followed. Meanwhile, heavyweights health care (+0.2%) and technology (+0.2%) ended their day off their lows.

In the energy space, independent oil and gas names managed to top the leaderboard. On that note, Anadarko Petroleum (APC 42.65, +2.54) managed to climb 6.3% while ConocoPhillips (COP 36.49, +2.03) advanced 5.9%. Dow component Exxon Mobil (XOM 82.70, +1.42) gained 1.8% after the company stated, at its analyst meeting, that it could fund new capital projects as well as maintain its dividend.

Economically-sensitive financials (+0.9%) likely benefited from potential increases in their earnings prospects as the fed fund futures market estimates the likelihood of a rate increase at the FOMC's December meeting at 63.0%. Meanwhile, the sector continues to rebound from a difficult start to the year. On that note, Citigroup (C 42.22, +0.95) and Bank of America (BAC 13.41, +0.27) climbed a respective 2.3% and 2.1% today, but remain down 18.4% and 20.3%, respectively, for the year.

The health care space (+0.2%) ended above its flat line as biotechnology outperformed. The iShares Nasdaq Biotechnology ETF (IBB 268.12, +2.85) gained 1.1%.

The Federal Reserve released its March Beige Book, which described overall economic activity across the twelve Fed Districts as expanding at a "modest" or "moderate" pace. Consumer spending increased in the majority of districts while manufacturing activity was described as flat for the most part. With regard to wages and inflation, the Beige Book described price levels as rising slightly while wage growth was described as ranging from "flat" to "strong".

The Treasury complex traded narrowly lower throughout today's session. The yield on the 10-yr note ended higher by one basis point at 1.84%.

Meanwhile, the U.S. Dollar Index (98.18, -0.17) tumbled as the dollar/yen pair ended the day lower by 0.6% at 113.39.

Today's participation fell in-line with the recent average with more than 1.065 billion shares changing hands at the NYSE floor.

Today's economic data included the weekly MBA Index, the February ADP Employment Change report, and the Fed's Beige Book for March:

The weekly MBA Mortgage Index showed a seasonally adjusted decrease of 4.8% in mortgage applications.
The ADP National Employment Report showed a 214,000 increase in February (Briefing.com consensus 190,000) while the January reading was revised lower to 193,000 from 205,000.
The ADP reading precedes Friday's more influential government Employment Report, which is expected to show a 190K increase in Nonfarm Payrolls, greater than last month's 151K increase.

Tomorrow's economic data will include the 7:30 ET release of the Challenger Job Cuts report for February. Meanwhile, weekly initial claims (Briefing.com consensus 270k), Q4 Productivity (Briefing.com consensus -3.3%), and Unit Labor Cost data (Briefing.com consensus +4.7%) will be released at 8:30 ET. Finally, January Factory Orders (Briefing.com consensus +2.0%) and ISM Services (Briefing.com consensus +53.1) will cross the wires at 10:00 ET.

3:40 pm: [BRIEFING.COM]

Energy futures were volatile again today
Despite a bearish EIA storage report, oil reversed sharply following the post-data sell-off
Ultimately, instead of ending with a solid loss, Apr crude oil ended today's session +0.5% at $34.57/barrel
Natural gas continues to feel pressured from the mild weather and supply situation
Apr nat gas closed out the day -3.5% at $1.68/MMBtu
In the metals space, however, copper gained 2% to $2.18/lb, while precious metals gained as well
Apr gold rose 0.9% to $1241.50/oz and May silver rallied 1.8% to $15.02/oz

3:00 pm:

[BRIEFING.COM] As the stock market approaches its final hour of trade, the S&P 500 (+0.2%) has managed to mark a new session high.

The energy space (+1.7%) was able to extend its lead in recent action as the space benefits from another green day from crude oil. WTI crude ended its pit session higher by 0.5% at $34.57/bbl.

Meanwhile, heavyweight health care (+0.1%) has managed to enter the green as biotechnology outperforms. The iShares Nasdaq Biotechnology ETF (IBB 267.11, +1.83) has climbed 0.6%.

Separately, the consumer discretionary space (UNCH) flirts with its flat line. Large-cap constituent and Dow component Procter & Gamble (PG 82.44, +1.21) continues to show relative strength while Costco (COST 152.61, +2.09) outperforms ahead of its earnings report slated for this evening.

2:30 pm:

[BRIEFING.COM] The major U.S. indices have slipped lower since the last update with the S&P 500 (-0.1%) keeping pace with the Dow Jones Industrial Average (-0.1%).

The heavyweight consumer discretionary space (-0.6%) has extended its loss while technology (-0.4%) and industrials (-0.3%) follow.

The Dow Jones Transportation Average (-0.2%) underperforms as the airlines weigh on the index. Delta Airlines (DAL 48.31, -0.58) paces the retreat after reporting that passenger revenue per available seat mile declined 5.5% year-over-year in February. American Airlines (AAL 41.46, -0.37) and United Continental (UAL 57.89, -0.50) trade lower in sympathy. Elsewhere in the transportation index, Norfolk Southern (NSC 76.40, +1.09) and CSX (CSX 27.78, +0.14) outperform. The broader index has managed to trim its 2016 decline to 0.4% after being down as much as 12.0% on January 20th.

Separately, the Federal Reserve released its March Beige Book, which described overall economic activity across the twelve Fed Districts as expanding at a "modest" or "moderate" pace. However, manufacturing activity was described as flat for the most part. With regard to wages and inflation, the Beige Book described price levels as rising slightly while wage growth was described as ranging from "flat" to "strong".

2:00 pm:

[BRIEFING.COM] The major averages have floated higher in recent action with the S&P 500 (UNCH) back within a couple points of its best level of the day.

Six sectors currently trade in the green with energy (+1.1%) and telecom services (+1.0%) outperforming the remaining groups. Meanwhile, materials (-0.5%) and consumer discretionary (-0.4%) underperform.

In the materials space, large-cap constituent Monsanto (MON 85.70, 6.79) underperforms the group after issuing Q2 and full year 2016 guidance below consensus. The stock has surrendered 7.4% so far today and is down 13.0% year-to-date. Elsewhere in the space, Dow component DuPont (DD 62.31, -0.63) trades lower by 1.0%.

On the commodities front, WTI crude trades flat at $34.41/bbl. Meanwhile, gold ended its pit session higher by 0.9% at $1,241.50/ozt.

1:35 pm:

[BRIEFING.COM] The major U.S. indices continue to trade fractionally lower as stocks pull back following yesterday's strong rally.

A look inside the Dow Jones Industrial Average shows that Nike (NKE 62.18, -0.74), DuPont (DD 62.17, -0.77), and Visa (V 73.94, -0.70) are underperforming. Nike is trading in-line with peers in the consumer discretionary space, one of today's weakest sector, while DuPont similarly trades lower as the materials sector drags. Aiding to DuPont's selloff, Reuters detailed a DuPont filing this morning in which it revealed that regulators have asked for more time to review materials relating to DuPont's pending merger with Dow Chemical.

Conversely, Procter & Gamble (PG 82.64, +1.41) is the best-performing Dow component as consumer staples trade ahead of the broad market.

With the small pullback, the DJIA has trimmed its weekly return to 1.3%

1:05 pm:

[BRIEFING.COM] The stock market trades modestly lower at midday as economic data that might lend itself supportive of a sooner than expected rate hike depresses the major averages. Furthermore, volatile oil trade, profit taking in the wake of yesterday's advance, and the outperformance of the financial sector (+0.4%) have also affected today's trade. The tech-heavy Nasdaq (-0.2%) trades behind the S&P 500 (-0.1%) as the benchmark hovers nine points off its session low.

Ahead of today's session, investors received a better than expected ADP National Employment Report, which showed an increase of 214,000 in February (Briefing.com consensus 190,000). This positive reading jolted investors as it, or the more influential government Employment Situation Report on Friday, could lend itself as potential evidence towards a sooner than expected rate hike.

Oil trade has remained in focus as participants came to terms with a bearish reading from the API Inventory Report after yesterday's close. This caused oil to trickle down overnight as investors eyed the Department of Energy's report today. Oil initially moved sharply higher despite the 10.4 million barrel build (est 3.6 million), but has slipped from these levels. At this juncture, WTI crude trades higher by 0.6% at $34.60/bbl.

Commodity-sensitive energy (+0.8%) and the financial (+0.4%) sectors hover near the top of the board as materials (-0.8%), consumer discretionary (-0.6%), technology (-0.3%), and health care (-0.1%) underperform the broader market.

In the energy space (+0.4%), independent oil and gas names continue to outperform despite the volatility from the oil patch. Anadarko Petroleum (APC 41.10, +0.99) and ConocoPhillips (COP 35.67 +1.21) have climbed 2.4% and 3.5%, respectively. Meanwhile, Dow component Exxon Mobil (XOM 81.85, +0.57) has advanced 0.7%.

Economically-sensitive financials (+0.4%) continue to outperform as money center banks demonstrate relative strength. Bank of America (BAC 13.29, +0.15) and Citigroup (C 41.91, +0.64) have climbed 1.2% and 1.5%, respectively. The broader sector is likely benefitting from potential increased earnings prospects as the fed funds futures market now estimates the likelihood of a rate increase at the Fed's December meeting at 67.0%. On that note, San Francisco Fed President Williams contended that the U.S. economy will continue to "power ahead" even with significant headwinds in terms of growth and inflation.

The influential technology (-0.3%) sector lags the broader market as large-cap constituents pull back after showing relative strength yesterday. On that note, Apple (AAPL 100.00, -0.53), Alphabet (GOOGL 737.47, -4.93), and Facebook (FB 109.08, -0.74) have slipped between 0.5% and 0.7% after climbing between 2.7% and 4.0% yesterday.

The Treasury complex has traded on its low throughout the day. The yield on the 10-yr note is higher by three basis points at 1.85%.

On the currency front, the U.S. Dollar Index (98.35, +0.00) has surrendered some early strength as the yen gains against the greenback. The dollar/yen pair trades lower by 0.2% at 113.75 after trading as high as 114.37 overnight.

Today's economic data included the weekly MBA Index and the February ADP Employment Change report. Meanwhile, the Fed's Beige Book for March will be released at 14:00 ET.

The weekly MBA Mortgage Index showed a seasonally adjusted decrease of 4.8% in mortgage applications.
The ADP National Employment Report showed a 214,000 increase in February (Briefing.com consensus 190,000) while the January reading was revised lower to 193,000 from 205,000.
The ADP reading precedes Friday's more influential government Employment Report, which is expected to show a 190K increase in Nonfarm Payrolls, greater than last month's 151K increase.

12:30 pm:

[BRIEFING.COM] The S&P 500 (-0.3%) hovers five points above its session low. The major averages slipped lower in recent trade as a reversal in crude oil brings the commodity back to its flat line. At this juncture, WTI crude trades at $34.41/bbl (UNCH)

Seven of ten sectors trade in the red with materials (-1.0%) and consumer discretionary (-0.7%) showing the largest losses. Meanwhile, energy (+0.5%) and telecom services (+0.5%) trade in-line with one another

In the consumer discretionary space, media companies demonstrate relative weakness with Viacom (VIAB 37.07, -0.49), Time Warner (TWX 65.93, -0.87), and CBS (CBS 49.55, -0.70) underperforming. The three names are down 1.3% apiece. Meanwhile, large-cap Disney (DIS 96.67, -0.98) has surrendered 1.0%. Since its earnings report, Disney has gained 4.7%.

12:00 pm:

[BRIEFING.COM] The stock market has ticked lower in recent trade as the S&P 500 (-0.2%) trades in-line with the Dow Jones Industrial Average (-0.2%). The benchmark index trades seven points off its session low.

The heavyweight technology (-0.4%) and consumer discretionary (-0.6%) spaces continue to show relative weakness.

In the influential technology sector, large-cap components are pulling back after showing relative strength yesterday with Apple (AAPL 99.92, -0.61), Alphabet (GOOGL 734.58, -7.59) and Microsoft (MSFT 52.33, -0.26) slipping between 0.5% and 0.9%. Meanwhile, the high-beta chipmakers have ticked slightly higher with the PHLX Semiconductor Index gaining 0.2%. The sub-group is being led by Micron Technology (MU 11.45, +0.38), which has gained 3.4%. The broader technology space has managed to cut its year-to-date loss to 3.8%.

On the commodities front, WTI crude has slipped from its session high ($34.86/bbl), but remains higher by 0.3% at $34.53/bbl.

11:35 am:

[BRIEFING.COM] The major averages have rebounded off their session lows as the S&P 500 (UNCH) outpaces the Nasdaq Composite (-0.2%). The benchmark index trades 11 points off its low.

The commodity-sensitive energy sector (+1.0%) has passed the financial sector (+0.8%) in recent action as the two groups outperform.

In the economically-sensitive financial space, Citigroup (C 42.20, +0.91) and Bank of America (BAC 13.47, +0.33) outperform with advances of 2.2% and 2.4%, respectively. Meanwhile, the two names have managed to cut their respective year-to-date losses to 18.4% and 20.0%. The broader financial group has surrendered 8.1% over that same period. The overall sector is likely benefiting from increased earnings prospects as the fed funds futures market now sees the likelihood of a rate increase at the Fed's December meeting at 67.0%.

The yield on the 10-yr note is higher by three basis points at 1.86%.

11:05 am:

[BRIEFING.COM] The S&P 500 (-0.1%) currently trades five points above its session low. The major averages tumbled in lockstep with oil shortly after the Department of Energy's weekly inventory report showed a larger-than-expected crude inventory build. Weekly crude inventories rose by 10.4 million barrels compared to the 3.6 million barrel estimate. However, WTI crude has managed to trim its initial loss and now trades in positive territory, up 0.4% at $34.50/bbl.

Commodity-sensitive materials (-0.9%) continue to underperform the broader market while energy (+0.2%) now outperforms.

In the energy space, independent oil and gas names have come off their highs after the release of the report, but they have since retraced a portion of that move. Anadarko Petroleum (APC 40.88, +0.77) trades higher by 2.0% after being up 3.2%. Separately, Dow component Chevron (CVX 85.45, -0.68) trades lower by 0.8%.

10:40 am: [BRIEFING.COM]

Oil prices sold off, falling back below $34/barrel following the EIA data, which showed a large build in oil of 10.174 mln barrels, a draw in gasoline inventory and a draw in distillates
Apr oil is now -2.2% at $33.65/barrel
In other energy, natural gas futures started the day off in the red, falling as low as $1.66/MMBtu
Apr nat gas is now -2.3% at $1.70/MMBtu
Precious metals are higher this morning despite modest strength in the dollar
Apr gold is now +0.9% at $1241.40/oz, while May silver is +1.7% at $15.00/oz
May copper is higher as well, currently +1% at $2.17/lb

10:00 am:

[BRIEFING.COM] The major U.S. indices have slipped below their opening levels as the S&P 500 (-0.3%) trades two points above a fresh session low.

The industrials sector (-0.1%) has moved up to follow financials (+0.1%) on the top of the leaderboard as health care (-0.2%) slips.

In industrials, rail names have outperformed thus far. The group is trading higher with CSX (CSX 24.88, +0.24) after it was reported that the company rejected a takeover bid from Canadian Pacific (CP 121.84, -1.12) in January. To that point, Union Pacific (UNP 80.00, -0.13) and Norfolk Southern (NSC 76.37, +1.06) also outperform.

WTI trades lower by 1.2% ($33.99/bbl) ahead of the Department of Energy's weekly inventory report at 10:30 ET.

9:45 am:

[BRIEFING.COM] As expected, the major averages began their beneath their day flat lines. At this juncture, the Dow Jones Industrial Average (-0.2%) underperforms the the S&P 500 (-0.1%) and the Nasdaq Composite (-0.1%).

Seven of ten sectors trade in the red with utilities (-1.9%) and telecom services (-0.5%) pacing the retreat. Meanwhile, the heavily-weighted financial (+0.4%) and health care (+0.1%) spaces show the largest advances. The remaining decliners show losses between 0.2% (energy) and 0.4% (materials)

On the commodities front, WTI crude has surrendered 0.8% to trade at $33.12/bbl. Meanwhile, gold has climbed 0.7% to trade at $1,238.80/ozt.

The Treasury complex has ticked lower in recent action. On that note, the yield on the 10-yr note is higher by four basis points at 1.86%.

Separately, the dollar/yen pair has slipped into negative territory (-0.1%) as the greenback pulls back against the yen. Currently, the dollar/yen pair trades at 113.95.

9:12 am: [BRIEFING.COM] S&P futures vs fair value: -3.70. Nasdaq futures vs fair value: -4.90.

The stock market is on track for a modestly lower open with the S&P 500 futures trading four points below fair value.

Overnight, U.S. equity futures and oil slipped in tandem as a bearish reading from yesterday's weekly API inventory report weighed on the commodity. Meanwhile, futures tumbled to their worst level shortly after the release of a better-than-expected ADP National Employment Report, which showed an increase of 214,000 in February (Briefing.com consensus 190,000).

The positive reading on the report may have sparked fears that Friday's more influential government Employment Report will lend evidence to the Fed that it is making progress towards its dual mandate. On that note, San Francisco Fed President Williams contended that the U.S. economy will continue to "power ahead" even with significant headwinds in terms of growth and inflation.

On the corporate front, IBM (IBM 134.37, +3.34) has climbed 2.6% after announcing that the company is planning to sell up to a $150 million stake in Lenovo.

Volatility in the currency market continues as the U.S. Dollar Index (98.68, +0.12) oscillates between its flat line and a 0.2% gain. At this juncture, the dollar/yen pair trades at 114.19 (+0.2%) after setting a new high for the day (114.56) immediately after the release of the ADP report.

Today's economic data will be capped off with the 14:00 ET release of the Fed's Beige Book for March.

8:55 am: [BRIEFING.COM] S&P futures vs fair value: -3.50. Nasdaq futures vs fair value: -3.50.

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

Equity markets in the Asia-Pacific region rallied across the board, taking a cue from Tuesday's spike on Wall Street. The region-wide rally masked some movement on the foreign exchange front where the People's Bank of China set the yuan fix at its lowest level since early February (6.5490). Meanwhile, Moody's lowered its outlook on Chinese public debt to 'Negative' from 'Stable', but affirmed the country's AA3 rating. Elsewhere, Bank of Japan Governor Haruhiko Kuroda appeared in parliament once again, reiterating that the central bank expects to hit the 2.0% inflation target during the first half of 2017. Mr. Kuroda's appearances before lawmakers have become a fixture with today's event occurring just six days after his previous appearance.

In economic data:
Japan's Monetary Base +29.0% year-over-year (consensus 27.9%; last 28.9%)
South Korea's January Industrial Production -1.8% month-over-month (expected -0.6%; last 0.5%); -1.9% year-over-year (consensus -2.2%; last -2.2%). Retail Sales -1.4% month-over-month (previous -0.1%), and Nikkei Manufacturing PMI 48.7 (previous 49.5)
Australia's Q4 GDP +0.6% quarter-over-quarter (expected 0.4%; previous 1.1%); +3.0% year-over-year (consensus 2.5%; last 2.7%). January HIA New Home Sales +3.1% month-over-month (last 6.0%)

---Equity Markets---

Japan's Nikkei spiked 4.1% with all ten sectors posting gains. Industrials (+4.8%), financials (+4.4%), materials (+4.4%), and technology (+4.4%) paced the rally while consumer staples (+2.5%) and communications (+2.5%) underperformed. Just about every index component ended in the green with IHI, Alps Electric, SUMCO, JFE Holdings, and Mitsumi Electric soaring between 9.2% and 12.8%. Elsewhere, Panasonic, Honda Motor, Fast Retailing, Fuji Electric, Hitachi, and Mitsubishi UFJ Financial climbed between 5.8% and 6.9%.
Hong Kong's Hang Seng rallied 3.1% amid broad strength. China Resources Beer Holdings surged 18.2% after agreeing to buy SABMiller's stake in CR Snow at a discount. Sands China, China Resources Land, China Resources Power, Belle International, and Sino Land advanced between 5.1% and 7.1%.
China's Shanghai Composite jumped 4.3% with Bank of China and Agricultural Bank of China both spiking near 2.0% apiece while China Shipbuilding, CITIC Securities, and China State Construction gained between 5.2% and 6.5%.

Major European indices began the Wednesday session with gains, but they have struggled to remain in positive territory. Things have been relatively quiet on the news front with ECB member Benoit Coeure toeing the central banker line, saying that Europe has an urgent need to boost growth, lower unemployment, deleverage the economy, and raise inflation.

Economic data was limited:
Eurozone January PPI -1.0% month-over-month (expected -0.7%; last -0.8%); -2.9% year-over-year, as expected (last -3.0%)
UK's February Construction 54.2 (expected 55.5; previous 55.0)
Spain's Unemployment Change 2,200 (consensus 200, previous 57,200)
Swiss Q4 GDP +0.4% quarter-over-quarter (expected 0.2%; last -0.1%); +0.4% year-over-year (consensus 0.1%; prior 0.8%)

---Equity Markets---

UK's FTSE is lower by 0.4% with consumer and health care names pressured. ITV, Associated British Foods, Diageo, Tesco, Hikma Pharmaceuticals, GlaxoSmithKline, and Barratt Developments are down between 1.4% and 3.7%. On the upside, miners Antofagasta, Anglo American, BHP Billiton, and financials Standard Chartered, Aberdeen Asset Management, and HSBC Holdings hold gains between 2.1% and 3.6%.
France's CAC trades flat with BNP Paribas, Societe Generale, and Credit Agricole up between 1.4% and 2.2% while Technip, Danone, Safran, L'Oreal, and Total show losses between 0.5% and 2.2%.
Germany's DAX is higher by 0.1% with Commerzbank and Deutsche Bank holding respective gains of 3.0% and 2.3% while Linde, Fresenius, Adidas, and Merck are down between 0.5% and 0.9%.

8:31 am: [BRIEFING.COM] S&P futures vs fair value: -3.00. Nasdaq futures vs fair value: -2.50.

As pre-market trade continues, the S&P 500 futures currently hover three points below fair value.

In corporate news, Exxon Mobil (XOM 81.28, +1.13) has gained 1.4% in pre-market action after announcing a partnership in six licensing options with Statoil. The two names will survey the Porcupine Basin off Ireland's shore. Separately, at 9:00 ET Exxon will hold its 2016 Analyst Meeting. On a somewhat related note, oil has trimmed its loss in recent action, trading lower by 0.9% at $34.08/bbl.

The U.S. Dollar Index (98.55, +0.20) has jumped in recent action as the yen and the euro extend their losses against the greenback. The euro/dollar pair trades at 1.0843 (-0.2%) after surpassing a previous a low of 1.0850. Meanwhile, the dollar/yen is higher by 0.4% at 114.51 after hitting a session high of 114.41.

On the economic front, the ADP National Employment Report showed a 214,000 increase in February (Briefing.com consensus 190,000) while the January reading was revised lower to 193,000 from 205,000. The ADP reading precedes Friday's more influential government Employment Report, which is expected to show a 190K increase in Nonfarm Payrolls, greater than last month's 151K increase.

8:01 am: [BRIEFING.COM] S&P futures vs fair value: -1.20. Nasdaq futures vs fair value: +1.10.

U.S. equity futures trade on a mixed note as the S&P 500 futures hover one point below fair value.

Overnight, futures ticked lower as a bearish inventory report from the American Petroleum Institute showed that crude inventories rose by 9.9 million barrels last week. This figure compared to a 2.5 million barrel estimate on the reading. For its part, WTI crude trades lower by 1.4% at $33.92/bbl.

On the economic front, the weekly MBA Mortgage Index was reported at 7:00 ET, showing a seasonally adjusted decrease of 4.8% in mortgage applications. Meanwhile, the February ADP Employment Change report (Briefing.com consensus 190k) and the Fed's Beige Book for March will be released at 8:15 ET and 14:00 ET, respectively.

The Treasury complex has inched lower overnight. The yield on the 10-yr note is higher by two basis points at 1.84%.

In U.S. corporate news of note:

CSX (CSX 25.95, +1.31): +5.3% after it was reported that the company rejected a takeover bid from Canadian Pacific (CP 122.96, +0.00) in January
Cisco Systems (CSCO 26.83, +0.65): +2.5% following the news that the company has agreed to buy Israel's Leaba Semiconductor for approximately $380 million
Zynga (ZNGA 2.16, +0.05): +2.4% after the company appointed former Executive VP of EA Mobile, Frank Gibeau, to company CEO
AutoZone (AZO 790.56, +15.99): +2.1% following a price target increase at Wedbush from $800 to $870
Abercrombie & Fitch (ANF 29.34, +0.29): +1.0% after the company reported a bottom line beat on in-line revenue for the fourth quarter

Reviewing overnight developments:

Asian-Pacific equity markets rallied overnight with China's Shanghai Composite +4.3%, Japan's Nikkei +4.1%, and Hong Kong's Hang Seng +3.1%.
In economic data:
Japan's Monetary Base +29.0% year-over-year (consensus 27.9%; last 28.9%)
South Korea's January Industrial Production -1.8% month-over-month (expected -0.6%; last 0.5%); -1.9% year-over-year (consensus -2.2%; last -2.2%). Retail Sales -1.4% month-over-month (previous -0.1%), and Nikkei Manufacturing PMI 48.7 (previous 49.5)
Australia's Q4 GDP +0.6% quarter-over-quarter (expected 0.4%; previous 1.1%); +3.0% year-over-year (consensus 2.5%; last 2.7%). January HIA New Home Sales +3.1% month-over-month (last 6.0%)
In news:
The People's Bank of China set the yuan fix at its lowest level since early February (6.5490).
Moody's lowered its outlook on Chinese public debt to 'Negative' from 'Stable', but affirmed the country's AA3 rating.
Bank of Japan Governor Haruhiko Kuroda appeared in parliament once again, reiterating that the central bank expects to hit the 2.0% inflation target during the first half of 2017

European indices trade on a mixed note with Germany's DAX +0.5%, France's CAC +0.2%, and the U.K.'s FTSE -0.2%.
Economic data was limited:
Eurozone January PPI -1.0% month-over-month (expected -0.7%; last -0.8%); -2.9% year-over-year, as expected (last -3.0%)
UK's February Construction 54.2 (expected 55.5; previous 55.0)
Spain's Unemployment Change 2,200 (consensus 200, previous 57,200)
Swiss Q4 GDP +0.4% quarter-over-quarter (expected 0.2%; last -0.1%); +0.4% year-over-year (consensus 0.1%; prior 0.8%)
In news:
ECB member Benoit Coeure toeing the central banker line, saying that Europe has an urgent need to boost growth, lower unemployment, deleverage the economy, and raise inflation.

6:09 am: [BRIEFING.COM] S&P futures vs fair value: -3.30. Nasdaq futures vs fair value: -1.60.

6:09 am: [BRIEFING.COM] Nikkei...16746.6...+661.00...+4.10%. Hang Seng...20003.5...+596.00...+3.10%.

6:09 am: [BRIEFING.COM] FTSE...6155.28...+2.40...+0.00%. DAX...9729.73...+12.60...+0.10%.

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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