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 Post subject: May 4th Wednesday Trade Results - Profit $1875.00
PostPosted: Thu May 05, 2016 5:08 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)

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050416-wrbtrader-Price-Action-Trading-PnL-Blotter-Profit+1875.00.png
050416-wrbtrader-Price-Action-Trading-PnL-Blotter-Profit+1875.00.png [ 94.63 KiB | Viewed 323 times ]

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 @ $1875.00 dollars or +37.50 points, Light Crude Oil CL ($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 @ $1875.00 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=156&t=2353

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=291&t=3143 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 spent the Wednesday session under pressure as vacillating oil prices fueled a retreat in the broader market. Meanwhile, mixed economic data clouded the economic picture while a rebound in the dollar contributed to a risk-off posture. Furthermore, relative weakness from the heavily-weighted industrial (-1.3%), health care (-1.0%), and financials (-0.8%) spaces contributed to selling pressure. The Nasdaq Composite (-0.8%) finished behind both the S&P 500 (-0.6%) and the Dow Jones Industrial Average (-0.6%).

The trading day began on a lower note as investors weighed a slew of economic reports from overseas and the United States. Lackluster readings of Services PMIs from Germany, France, and the eurozone weighed on global equities while a below-consensus reading of the U.S. ADP National Employment Report for April (156,000; Briefing.com consensus 196,000) pushed equity futures back towards their lows.

The cash market found little relief despite an above-consensus reading of the ISM Non-Manufacturing Index for April (55.7; Briefing.com consensus 54.5). The datapoint was masked by a recent string of weaker than expected economic data, which mars prospects of a sharp pick-up in economic growth heading into the second half of the year. Furthermore, renewed pressured from the greenback weighed on dollar-denominated commodities and on the possibility of increased earnings prospects.

The major averages ended off their lows despite seven sectors finishing beneath their flat lines. The commodity-sensitive energy (-1.3%) space traded in-line with industrials (-1.3%) and behind materials (-1.0%), health care (-1.0%), and financials (-0.8%). Conversely, countercyclical utilities (+1.1%), consumer staples (+0.3%), and telecom services (+0.2%) finished with the only gains.

The energy space (-1.3%) sank to the bottom of the leaderboard after investors ruminated over larger than expected builds in crude oil (2.78 million barrels; consensus: 1.69 million barrels) and gasoline (0.53 million barrels; consensus: -0.14 million barrels) stockpiles. WTI crude ended its day higher by 0.3% ($43.78/bbl), but well off its opening level ($44.84/bbl). In the group, Marathon Petroleum (MPC 36.22, -1.77) ended lower by 4.7% as refining names underperformed. On the flipside, Noble Energy (NBL 35.59, +0.38) ended higher by 1.1% after beating bottom-line results for the first quarter.

In the industrial space (-1.3%), airlines continued their recent losing streak as Delta Air Lines (DAL 41.43, -1.49) and American Airlines (AAL 33.21, -1.37) finished with respective losses of 3.5% and 4.0%. Elsewhere, Cummins (CMI 114.44, -4.16) fell 3.5% after a report indicated that class-8 truck orders declined 39.0% year-over-year in April.

Biotechnology underperformed in the health care space (-1.0%), evidenced by the 2.9% decline in the iShares Nasdaq Biotechnology ETF (IBB 258.03, -7.72). The sub-group was led lower by Biogen (BIIB 263.12, -10.59), which extended its May loss to 4.3%. Elsewhere, Anthem (ANTM 138.73, -2.69) fell 1.9% after announcing that CFO Wayne DeVeydt will step down.

The U.S. Dollar Index (93.22, +0.28) finished off its session high, as the greenback gained against the euro, yen, and Canadian dollar. The euro/dollar pair finished lower by 0.1% at 1.1492 while the dollar gained 0.3% against the yen (106.91). Separately, the dollar jumped of 1.2% against the Canadian dollar (1.2873).

The Treasury complex finished on its high as the yield on the 10-yr note fell three basis points to 1.77%. This represents a six basis point move since last Friday's settlement at 1.83%.

Today's participation was above the recent average as more than 992 million shares changed hands on the NYSE floor.

Today's economic data included the weekly MBA Mortgage Index, April ADP Employment Change, preliminary Q1 Productivity, Unit Labor Cost, March Trade Balance, March Factory Orders, and April ISM Services:

The weekly MBA Mortgage Index showed a seasonally adjusted decrease of 3.4%. This compares to last week's -4.1% reading.
The ADP Employment Change report was a disappointment, showing an estimated 156,000 positions were added to private sector payrolls in April (Briefing.com consensus 196,000)
Briefly, the decline in productivity in the first quarter followed on the heels of an upwardly revised decline of 1.7% (from -2.2%) in the fourth quarter.
First quarter productivity declined 1.0% (Briefing.com consensus -1.4%)
Unit labor costs jumped 4.1% (Briefing.com consensus +2.6%), reflecting a 3.0% increase in hourly compensation and a 1.0% decrease in productivity.
On a year-over-year basis, productivity is up just 0.6% while unit labor costs are up 2.3%. That's a relationship with stagflation written on it.
The trade deficit for March narrowed sharply to $40.4 billion (Briefing.com consensus -$41.4 bln) from $47.0 billion in February.
That was a function of imports falling more than exports. Specifically, imports were $217.1 billion, $8.1 billion less than February imports, while exports were $176.6 billion, $1.5 billion less than February exports.
The import weakness was concentrated in consumer goods, which decreased by $5.1 billion on less demand for just about every category of consumer goods, and in capital goods, ex automotive, which decreased by $1.6 billion.
The export weakness also can be traced to consumer goods, which fell by $1.6 billion, yet almost all of that decline was related to lower exports of pharmaceutical preparations (-$0.8 bln) and gem diamonds (-$0.7 bln).
On a year-over-year basis, imports are down 9.2% while exports are down 5.4%.
The month of March marked the 14th straight month that exports have declined year-over-year.
New orders for manufactured durable goods increased 1.1% in March (Briefing.com consensus +0.5%) following a downwardly revised 1.9% decline (from -1.7%) in February.
Excluding transportation, factory orders rose 0.8% after declining 0.9% in February. Shipments increased 0.5% in March, breaking a streak of eight consecutive monthly decreases.
Shipments of nondefense capital goods excluding aircraft -- a metric used in the GDP computation -- also increased 0.5% after declining 1.8% in February and 1.4% in January.
Orders for durable goods increased 0.8% in March while orders for nondurable goods increased 1.5%.
Notwithstanding the overall increase in orders for manufactured goods, new orders for nondefense capital goods excluding aircraft -- a proxy for business spending -- were up just 0.1% after declining 2.7% in February.
Total inventories for all manufacturing industries increased 0.2%, which was the first increase after eight straight monthly decreases. The inventories-to-shipments ratio held steady at 1.37.
The ISM Non-Manufacturing Index for April was better than expected at 55.7 (Briefing.com consensus 54.5) and up from the March reading of 54.5.
It followed on the heels of the ISM Manufacturing Index report for April, which not only fell shy of economists' median estimate but also checked in below the prior month's reading.
The dividing line between expansion and contraction for the ISM Non-Manufacturing Index is 50.0. April marked the 75th consecutive month that it has been above 50.0.
The most important takeaway from the April report is that it reflected faster growth from March. That's important because the non-manufacturing side of the economy is significantly larger than the manufacturing side of the economy, and it's important because this is a second quarter number. Market participants are anxious to see faster growth after real GDP increased at a seasonally adjusted annual rate of just 0.5% in the first quarter.
The improvement in the ISM Non-Manufacturing Index in April was fueled by an uptick in the New Orders Index to 59.9 from 56.7.
In turn, the Employment Index rose to 53.0 from 50.3, marking the second straight month it has been above 50.0.
The Prices Index increased to 53.4 from 49.1, which is an indication that prices increased for the first time in three months.
The biggest drag for the month was the New Export Orders Index, which slipped to 56.5 from 58.5.

Tomorrow's economic data will be limited to Challenger Job Cuts for April and weekly initial claims (Briefing.com consensus 259k), which will be released at 7:30 ET and 8:30 ET, respectively.

3:30 pm: [BRIEFING.COM]

The dollar index consolidates near the highs of the day, currently up +0.3% around the 93.21 level, weighing on commodities
Commodities, as measured by the Bloomberg Commodity Index, are down -0.3% at 83.35
Crude oil plummets after the release of EIA petroleum storage data, briefly consolidating below the previous day's close and staging a late day rally into the close
June crude Oil futures rose $0.14 (+0.3%) to $43.78/barrel
Crude oil inventories had a build of +2.784 mln (consensus called for a build of 500k-800k)
Gasoline inventories had a build of +0.536 mln
Distillate inventories had a draw of -1.261 mln
API inventory data released yesterday evening showed a build of +1.265 mln barrels, compared to expectations for a build of ~+0.5 mln barrels
Natural gas consolidates and trades sideways with little volatility in afternoon pit trading
June Natural Gas closed $0.05 higher (+2.4%) at $2.14/MMBtu
In precious metals, gold trends lower, closing near the lows of the day
June gold ended today's session down $17.60 (-1.4%) to $1274.20/oz
Silver sees a similar move to gold, closing near the lows of the day after a uni-directional downtrend all day
July silver closed today's session $0.19 lower (-1.1%) at $17.30/oz
Base metal copper inches lower to end pit trading
July copper closed $0.03 lower (-1.4%) at $2.19/lb

2:55 pm:

[BRIEFING.COM] The S&P 500 trades lower by 0.6%, remaining five points above its worst level.

Seven sectors trade in the red with materials (-1.1%) trailing financials (-1.0%), health care (-0.9%), and consumer discretionary (-0.5%).

In the technology space (-0.5%), heavyweight components Facebook (FB 117.66, +0.23) and Alphabet (GOOG 696.95, +4.59) outperform as they gain 0.3% and 0.6%, respectively. Fellow large cap Apple (AAPL 94.26, -0.92) has declined 1.0% after snapping an eight-day losing streak yesterday. Elsewhere, the high-beta chipmakers underperform, evidenced by the 1.5% decline in the PHLX Semiconductor Index.

The U.S. Dollar Index (93.19, +0.25) has ticked off its session high as the greenback trims its gains against the euro, yen, and Canadian dollar. The euro/dollar pair trades flat at 1.1500 while the dollar has gained 0.3% against the yen (106.95). Elsewhere, the dollar sports a gain of 1.1% against the Canadian dollar (1.2862) after the pair slipped from the 1.2885 level.

WTI crude ended its day higher by 0.3% ($43.78/bbl) while natural gas ended higher by 2.4% at $2.14/MMbtu.

2:30 pm:

[BRIEFING.COM] The major averages have ticked off a new session low as the S&P 500 (-0.8%) trades in-line with the Dow Jones Industrial Average (-0.8%).

The leaderboard remains little changed with industrials (-1.5%), energy (-1.2%), and materials (-1.1%) leading to the downside.

In the consumer staples sector (+0.4%), Kraft Heinz (KHC 79.88, +1.19) has gained 1.5% ahead of its quarterly earnings report this evening. Elsewhere, Whole Foods (WFM 28.43, -0.31) trades lower by 1.1% ahead of its second-quarter report. The stock is down 2.9% from where it traded ahead of last quarter's earnings. Additionally, Whole Foods trades within 1.3% of its 52-week low. Meanwhile, Coca-Cola (KO 45.02, +0.18) outperforms as it continues to rebound from its post-earnings selloff. The stock has rebounded 3.0% from its low, but trades 3.4% off its pre-earnings release level.

WTI crude trades higher by 0.3% ($43.79/bbl) ahead of its pit session close at 14:30 ET. This represents a decline of 6.4% since last week's settlement. Meanwhile, gold ended its day lower by 1.4% at $1,274.20/ozt.

2:00 pm:

[BRIEFING.COM] The major averages have floated sideways since our last update as the Nasdaq Composite (-0.8%) trades behind the S&P 500 (-0.7%).

Seven sectors trade beneath their flat lines with technology (-0.5%), consumer discretionary (-0.5%), and health care (-1.0%) sporting the slimmest losses.

In the health care space (-1.0%), biotechnology demonstrates relative weakness, evidenced by the 3.0% decline in the iShares Nasdaq Biotechnology ETF (IBB 257.84, -7.91). The ETF has remains down 23.8% on a year to date basis, compared to a loss of 4.0% in the broader health care sector over that period. Meanwhile, Anthem (ANTM 138.45, -2.97) has declined 2.1% after the company announced that CFO Wayne DeVeydt will step down. Mr. DeVeydt will be replaced by SVP John Gallina, effective June 1. Separately, Express Scripts (ESRX 72.76, -0.03) has extended its post-earnings loss to 2.0%.

The Treasury complex has continued to inch higher as the yield on the 10-yr note slides two basis points to 1.78%. This represents a five basis point move since last Friday's settlement at 1.83%.

1:30 pm:

[BRIEFING.COM] The major U.S. indices have ticked higher since our last update, but still sport heavy losses with the Dow Jones Industrial Average down triple digits.

A look inside the Dow shows that Goldman Sachs (GS 159.57, -3.57), Caterpillar (CAT 74.74, -1.62), and General Electric (GE 30.02, -0.61) are underperforming amid broad market weakness.

Conversely, McDonald's (MCD 129.57, +1.17) is the best-performing Dow component as buying interest pushes shares to fresh all-time highs.

With today's pullback, the Dow is now down 0.66% this week.

1:10 pm:

[BRIEFING.COM] The stock market trades on a lower note at midday as investors weigh a mixed batch of economic data, a resurgence in the dollar, and a downturn in oil. Today's trade has featured relative weakness from the heavily-weighted industrial (-1.3%), financial (-1.1%), and health care (-1.1%) sectors. Currently, the Nasdaq Composite (-0.9%) trades behind both the S&P 500 (-0.8%) and the Dow Jones Industrial Average (-0.7%).

Equity indices opened their day under pressure as below-consensus economic data from overseas and a resurgence in the dollar pressured global markets. Meanwhile, datapoints at home came in on a mixed note with the ADP Employment Change report (156,000; Briefing.com consensus 196,000) disappointing investors while the ISM Non-Manufacturing Index for April (55.7; Briefing.com consensus 54.5) beat expectations.

The major averages carved out fresh session lows after crude oil pared gains following the Energy Information Administration's latest inventory report. The report showed that crude oil inventories rose by 2.78 million barrels (consensus: 1.69 million barrels) while gasoline inventories increased by 0.53 million barrels (consensus: -0.14 million barrels). As a result, WTI crude slipped from its session high ($44.84/bbl) and currently trades lower by 0.5% at $43.45/bbl.

Seven sectors trade in the red with commodity-sensitive energy (-1.5%) trailing industrials (-1.3%), financials (-1.1%), and health care (-1.1%). On the flipside, countercyclical utilities (+1.1%), telecom services (+0.3%), and consumer staples (+0.2%) sport the only gains of the day.

The industrial space (-1.3%) demonstrates broad-based weakness as machinery names and transports show the largest losses. On that note, Cummins (CMI 114.74, -3.86) has shed 3.4% after reports indicated that Class-8 truck orders declined by 39.0% in the month of April. The Dow Jones Transportation Average (-0.8%) underperforms as United Continental (UAL 45.60, -1.53) rounds out the index.

Money center banks underperform in the economically-sensitive financial sector (-1.1%). The sub-group is pulling back from April gains. Bank of America (BAC 14.05, -0.31) gained 7.7% in April, but has slipped 3.5% to begin May. The group is also facing headwinds from European banks and the recent downturn in crude oil. Elsewhere, Western Union (WU 18.98, -0.85) has declined by 4.3% after missing top- and bottom-line estimates for the quarter.

In the energy space (-1.5%), independent oil and gas companies and refiners demonstrate relative weakness. ConocoPhillips (COP 43.29, -1.79) and Anadarko Petroleum (APC 47.58, -2.51) have declined 4.0% and 5.0%, respectively. Meanwhile, Marathon Petroleum (MPC 36.22, -1.76) has declined 4.7%. On the flipside, Noble Energy (NBL 35.80, +0.59) has gained 1.7% after reporting above-consensus bottom-line results for the first quarter and announcing divestments.

The U.S. Dollar Index (93.30, +0.36) has regained some momentum today as the greenback sports gains against the euro, yen, and the Canadian dollar. The euro/dollar pair trades lower by 0.1% at 1.1485 while the dollar has gained 0.5% against the yen (107.10). Separately, the dollar has gained 1.2% against the commodity-sensitive Canadian dollar (1.2880).

The Treasury complex trades on a modestly higher note as the yield on the 10-yr note slips one basis point to 1.79%.

Today's economic data included the weekly MBA Mortgage Index, April ADP Employment Change, preliminary Q1 Productivity, Unit Labor Cost, March Trade Balance, March Factory Orders, and April ISM Services:

The weekly MBA Mortgage Index showed a seasonally adjusted decrease of 3.4%. This compares to last week's -4.1% reading.
The ADP Employment Change report was a disappointment, showing an estimated 156,000 positions were added to private sector payrolls in April (Briefing.com consensus 196,000)
Briefly, the decline in productivity in the first quarter followed on the heels of an upwardly revised decline of 1.7% (from -2.2%) in the fourth quarter.
First quarter productivity declined 1.0% (Briefing.com consensus -1.4%)
Unit labor costs jumped 4.1% (Briefing.com consensus +2.6%), reflecting a 3.0% increase in hourly compensation and a 1.0% decrease in productivity.
On a year-over-year basis, productivity is up just 0.6% while unit labor costs are up 2.3%. That's a relationship with stagflation written on it.
The trade deficit for March narrowed sharply to $40.4 billion (Briefing.com consensus -$41.4 bln) from $47.0 billion in February.
That was a function of imports falling more than exports. Specifically, imports were $217.1 billion, $8.1 billion less than February imports, while exports were $176.6 billion, $1.5 billion less than February exports.
The import weakness was concentrated in consumer goods, which decreased by $5.1 billion on less demand for just about every category of consumer goods, and in capital goods, ex automotive, which decreased by $1.6 billion.
The export weakness also can be traced to consumer goods, which fell by $1.6 billion, yet almost all of that decline was related to lower exports of pharmaceutical preparations (-$0.8 bln) and gem diamonds (-$0.7 bln).
On a year-over-year basis, imports are down 9.2% while exports are down 5.4%.
The month of March marked the 14th straight month that exports have declined year-over-year.
New orders for manufactured durable goods increased 1.1% in March (Briefing.com consensus +0.5%) following a downwardly revised 1.9% decline (from -1.7%) in February.
Excluding transportation, factory orders rose 0.8% after declining 0.9% in February. Shipments increased 0.5% in March, breaking a streak of eight consecutive monthly decreases.
Shipments of nondefense capital goods excluding aircraft -- a metric used in the GDP computation -- also increased 0.5% after declining 1.8% in February and 1.4% in January.
Orders for durable goods increased 0.8% in March while orders for nondurable goods increased 1.5%.
Notwithstanding the overall increase in orders for manufactured goods, new orders for nondefense capital goods excluding aircraft -- a proxy for business spending -- were up just 0.1% after declining 2.7% in February.
Total inventories for all manufacturing industries increased 0.2%, which was the first increase after eight straight monthly decreases. The inventories-to-shipments ratio held steady at 1.37.
The ISM Non-Manufacturing Index for April was better than expected at 55.7 (Briefing.com consensus 54.5) and up from the March reading of 54.5.
It followed on the heels of the ISM Manufacturing Index report for April, which not only fell shy of economists' median estimate but also checked in below the prior month's reading.
The dividing line between expansion and contraction for the ISM Non-Manufacturing Index is 50.0. April marked the 75th consecutive month that it has been above 50.0.
The most important takeaway from the April report is that it reflected faster growth from March. That's important because the non-manufacturing side of the economy is significantly larger than the manufacturing side of the economy, and it's important because this is a second quarter number. Market participants are anxious to see faster growth after real GDP increased at a seasonally adjusted annual rate of just 0.5% in the first quarter.
The improvement in the ISM Non-Manufacturing Index in April was fueled by an uptick in the New Orders Index to 59.9 from 56.7. In turn, the Employment Index rose to 53.0 from 50.3, marking the second straight month it has been above 50.0.
The Prices Index increased to 53.4 from 49.1, which is an indication that prices increased for the first time in three months.
The biggest drag for the month was the New Export Orders Index, which slipped to 56.5 from 58.5.

12:30 pm:

[BRIEFING.COM] The major indices have ticked up in recent action as the S&P 500 (-0.5%) trades behind the Dow Jones Industrial Average (-0.4%).

Seven sectors trade in the red while countercyclical consumer staples (+0.4%), telecom services (+0.4%), and utilities (+1.7%) extend their leads.

In the financial sector (-1.0%), money center banks demonstrate relative weakness as the sub-group pulls back from April gains. On that note, Wells Fargo (WFC 48.85, -0.76) and Bank of America (BAC 14.07, -0.28) gained between 3.4% and 7.7% in April, but have lost a respective 2.3% and 3.4% in May. On the flipside, IntercontinentalExchange (ICE 257.91, +16.80) has gained 7.1% after beating bottom-line estimates on in-line revenue. The company announced that it expects 2016 data service revenue to increase between 6.0% to 7.0%.

On the commodities front, WTI crude trades higher by 0.6% ($43.93/bbl) while gold has extended its loss to 0.8% ($1,281.80/ozt).

12:00 pm:

[BRIEFING.COM] The major averages have ticked off their session low as the Nasdaq Composite (-0.7%) trades behind the S&P 500 (-0.6%).

The commodity-sensitive energy (-1.5%) space trails industrials (-1.3%) and materials (-1.2%). Conversely, technology (-0.4%) and consumer discretionary (-0.4%) sport the slimmest losses.

In the industrial space (-1.3%), machinery name Cummins (CMI 11.92, -4.68) underperforms amid reports indicating that class 8 truck orders declined by 39.0% in April. Elsewhere, airlines display relative weakness with American Airlines (AAL 33.53, -1.04) and United Continental (UAL 45.51, -1.62) showing losses of 3.1% and 3.4%, respectively.

Overall, the industrial sector is likely underperforming as it feels pressure from strength in the dollar. The Industrial Sector SPDR ETF (XLI 55.22, -0.77) has gained 4.2% year-to-date, compared to a decline of 5.6% in the U.S. Dollar Index over that same period.

The Treasury complex trades on a flat note as the yield on the 10-yr note sits at 1.80%.

11:30 am:

[BRIEFING.COM] The stock market has ticked lower as the S&P 500 (-0.7%) trades at a fresh session low.

In front of the pack, countercyclical utilities (+1.2%), consumer staples (+0.2%), and telecom services (+0.1%) lead.

In the consumer discretionary space (-0.5%), media names display relative strength. CBS (CBS 56.89, +1.23) has gained 2.6% after above-consensus bottom-line results. The company reported that revenue grew 10.0% year-over-year. Time Warner (TWX 75.91, +2.27) has gained 3.1% after beating earnings estimates on in-line revenue. Time Warner announced that it had repurchased 13 million shares of its stock while still having $4.1 billion left in its repurchase authorization.

Conversely, Priceline (PCLN 1207.94, -146.70) has slid 10.8% after issuing below-consensus guidance for the second quarter. The company announced that it is searching for a replacement CEO after Darren Houston resigned in light of a personal relationship with one of the company's employees.

The U.S. Dollar Index (93.21, +0.26) continues to pressure dollar-denominated commodities as oil and gold trend lower. WTI crude remains higher by 0.3% ($43.74/bbl) while gold trades lower by 0.7% at $1,282.70/ozt.

11:00 am:

[BRIEFING.COM] The major averages have slipped from their intraday highs as the S&P 500 (-0.6%) and the Nasdaq Composite (-0.6%) trade neck-and-neck.

Nine sectors trade in the red as heavily-weighted industrials (-1.1%), financials (-0.9%), and health care (-0.8%) underperform. The move lower in the broader market followed the release of the latest stockpile data from the Energy Information Administration.

The report showed that crude oil inventories rose by 2.78 million barrels, compared to the 1.69 million barrel consensus. The EIA report showed that gasoline stockpiles rose by 0.53 million barrels, compared to the expected 0.14 million barrel draw. WTI crude remains higher by 1.0% ($44.10/bbl) after slipping from the $44.84/bbl level.

In the energy space (-0.8%), oilfield service names and independent oil and gas companies have slipped lower following the inventory data. Anadarko Petroleum (APC 47.97, -2.14) has fallen 4.3% after receiving a downgrade at Credit Suisse from "Outperform" to "Neutral." Meanwhile, Noble Energy (NBL 35.21, +0.00) trades flat after being up 6.1% in the early going. The company reported a bottom-line beat for the first quarter and announced key divestments.

10:30 am: [BRIEFING.COM]

The dollar index rallies to the 93.23 level, up +0.3%, not appearing to weigh on commodities overall in morning pit trading
Commodities, as measured by the Bloomberg Commodity Index, are up +0.4% at 83.91
Crude oil gives up a portion of initial morning gains after the release of EIA storage data
June crude oil futures are up $0.66 (+1.5%) at $44.32/barrel
Crude oil inventories had a build of +2.784 mln (consensus called for a build of 500k-800k)
Gasoline inventories had a build of +0.536 mln
Distillate inventories had a draw of -1.261 mln
API inventory data released yesterday evening showed a build of +1.265 mln barrels, compared to expectations for a build of ~+0.5 mln barrels
Natural gas sees a sharp morning spike, consolidating near the highs of the day
May natural gas futures are up +0.06% (+2.7%) at $2.14/MMBtu
EIA natural gas storage data is scheduled to be released tomorrow at 10:30 am ET
In precious metals, gold trends lower, trading as low as ~$1282.70/oz before reversing direction
June gold futures are down $7.70 (-0.6%) at $1284.60/oz
Silver exhibits notable volatility, rallying near the previous day's close before consolidating lower
May silver futures are down $0.09 (-0.5%) at $17.41/oz
Base metal copper drifts lower in morning pit trading
May copper futures are down $0.02 (-0.7%) at the $2.20/lb level

10:00 am:

[BRIEFING.COM] The major averages have ticked off their session lows as the S&P 500 (-0.4%) trades in-line with the Dow Jones Industrial Average (-0.4%).

Eight sectors trade in the red with heavily-weighted health care (-0.7%) trailing industrials (-0.7%) and financials (-0.6%) leading to the downside.

Just released, the ISM Services Index for April increased to 55.7 from 54.5 while the Briefing.com consensus expected a flat reading at 54.5.

Separately, the Factory Orders Report for March, which showed an increase of 1.1%, which compares to the Briefing.com consensus of 0.5%. The February reading was revised to -1.9%. (from -1.7%).

9:45 am:

[BRIEFING.COM] As expected, the stock market opened its day on a lower note as the S&P 500 (-0.7%) and the Dow Jones Industrial Average (-0.7%) trade behind the Nasdaq Composite (-0.6%).

Eight sectors trade in the red with financials (-1.2%), industrials (-1.0%), health care (-0.9%), and consumer discretionary (-0.9%) leading to the downside. The remaining sectors sport losses between 0.4% (consumer staples) and 0.6% (technology). Conversely, energy (+0.3%) and utilities (+0.2%) sport the only gains of the day.

In the Dow Jones Transportation Average (-0.6%) airlines demonstrate relative weakness as Delta Air Lines (DAL 42.00, -0.92) and United Continental (UAL 45.93, -1.20) decline between 2.1% and 2.6%.

In the financial sector (-1.2%), money center banks underperform with JPMorgan Chase (JPM 61.67, -0.89) and Citigroup (C 44.66, -0.91) declining 1.4% and 2.0%, respectively.

On the commodities front, WTI crude has rallied to $44.67/bbl (+2.3%) while gold has trimmed its loss to 0.2% ($1,289.90/ozt).

9:19 am: [BRIEFING.COM] S&P futures vs fair value: -12.50. Nasdaq futures vs fair value: -29.10.

The stock market is on track for a lower open as the S&P 500 futures trade 13 points below fair value.

Equity futures endured some rocky trade overnight as investors weighed lackluster economic data from overseas and the U.S. April eurozone, German, and French Services PMI readings all came in below consensus while the U.S. ADP National Employment Report for April also missed market expectations (156,000; Briefing.com consensus 196,000). The report has become the latest negative datapoint, which cast doubts on a larger economic turnaround in the second half of the year.

A rebound in the dollar has added to negative sentiment as investors look at the impact on dollar-denominated commodities and on the projected upswing in corporate earnings. The U.S. Dollar Index (93.13, +0.18) trades higher as the greenback sports a gain against the euro and the Canadian dollar. The dollar/Canadian dollar pair trades higher by 0.7% at 1.2813 while the euro has slipped 0.1% against the dollar (1.1492). Separately, the dollar/yen pair trades flat at 106.60.

In company specific news, Etsy (ETSY 9.85, +1.45) has gained 17.3% after reporting top- and bottom-line beats after yesterday's close. The company reported that revenue rose 39.8% year-over-year with a 59.6% increase in Seller Services revenue.

The Federal Communications Commission approved an application for transfer of control authorization per Altice's (ALLVF 15.50, +0.00) plan to acquire Cablevision (CVC 34.33, +0.50). Separately, CBS (CBS 56.50, +0.84) has gained 1.5% in pre-market action after beating bottom-line estimates for the first quarter. The stock received a price target increase at Topeka from $64 to $66.

On the commodities front, WTI crude trades higher by 1.7% ($44.41/bbl) ahead of the Department of Energy's weekly inventory report. Elsewhere, gold has slipped 0.4% to $1,287.00/ozt.

Today's economic data will be capped off with March Factory Orders (Briefing.com consensus 0.5%) and April ISM Services (Briefing.com consensus 54.5), both crossing the wires at 10:00 ET.

8:56 am: [BRIEFING.COM] S&P futures vs fair value: -14.20. Nasdaq futures vs fair value: -30.50.

The S&P 500 futures trade 14 points below fair value.

Equity markets across Asia ended the midweek session on a mostly lower note while Japan's Nikkei was closed for Greenery Day. The trading day was relatively quiet, but it is worth noting that China's National Development and Reform Commission warned that the country's economy faces downward pressure in investment.

In economic data:
India's April Nikkei Services PMI 53.7 (last 54.3)
Australia's April AIG Services Index 49.7 (last 49.5)
New Zealand's Q1 Employment Change +1.2% quarter-over-quarter (expected 0.7%; last 0.9%) and Q1 Unemployment Rate rose to 5.7% from 5.3% (expected 5.5%)

---Equity Markets---

Japan's Nikkei was closed.
Hong Kong's Hang Seng lost 0.7% with financials and energy-related names leading the retreat. CNOOC, Kunlun Energy, China Petroleum & Chemical, HSBC, Bank of China Hong Kong, and Bank of China posted losses between 1.3% and 3.3%. Property names held up well with New World Development and Henderson Land both adding near 1.1%.
China's Shanghai Composite ticked down 0.1%. Anhui Conch Cement, Gansu Mogao Industrial Development, and Song Liao Automotive lost between 2.9% and 4.3%.

Major European indices trade lower across the board with UK's FTSE (-1.1%) pacing the retreat. Investors received a full slate of PMI readings this morning with most coming in below market expectations. Spain (55.1; expected 55.0) was one of few exceptions as preparations begin for a new election in late June. Interim Prime Minister Mariano Rajoy said he would lower the deficit to GDP ratio below 3.0% by the end of next year and vowed not to raise taxes.

In economic data:
Eurozone April Services PMI 53.1 (expected 53.2; last 53.2) and March Retail Sales -0.5% month-over-month (expected -0.1%; last 0.3%); +2.1% year-over-year (consensus 2.5%; last 2.7%)
Germany's April Services PMI 54.5 (expected 54.6; last 54.6)
UK's April Construction PMI 52.0 (consensus 54.0; previous 54.2)
France's April Services PMI 50.6 (expected 50.8; last 50.8) and March trade deficit narrowed to EUR4.40 billion from EUR5.10 billion, as expected
Spain's April Services PMI 55.1 (consensus 55.0; last 55.3) and Unemployment Change -83,600 (expected -86,600; last -58,200)
Italy's April Services PMI 52.1 (consensus 51.7; last 51.2)

---Equity Markets---

Germany's DAX has given up 0.7% with all but two names trading in the red. Exporters BMW, Daimler, and Volkswagen are down between 0.7% and 1.8%. Financials trade in mixed fashion with Deutsche Bank rising 1.0% while Commerzbank is down 1.5%.
France's CAC is lower by 0.8% with Veolia Environnement has tumbled 4.2% in reaction to disappointing results while Technip, Saint Gobain, Kering, and Air Liquide show losses between 2.0% and 4.0%. On the upside, financials have shown relative strength with Societe Generale rising 3.5% after beating earnings estimates while Credit Agricole and BNP Paribas are both up near 0.1%.
UK's FTSE has slid 1.1% amind notable weakness in miners and consumer names. BHP Billiton, Glencore, Anglo American, Antofagasta, Fresnillo, and Rio Tinto are down between 2.4% and 7.0%. As for consumer names, Sainsbury, Tesco, Morrison Supermarkets, and Marks & Spencer have given up between 2.0% and 4.6%.

8:35 am: [BRIEFING.COM] S&P futures vs fair value: -13.70. Nasdaq futures vs fair value: -30.60.

Futures extended their loss after the release of a disappointing reading of the ADP National Employment Report, but have since ticked higher. The S&P 500 futures trade 14 points below fair value.

On the economic front, the ADP National Employment Report showed an increase of 156,000 in April (Briefing.com consensus 196,000) while the March reading was revised lower to 194,000 from 200,000. The ADP reading precedes Friday's more influential Employment Situation Report, which is expected to show a 207K increase in Nonfarm Payrolls, fewer than last month's 215K increase.

Just released, Unit labor costs increased 4.1% during the first quarter, which was higher than the 2.6% increase that had been anticipated by the Briefing.com consensus. During the same period, productivity decreased 1.0%, according to the preliminary reading while the consensus expected a decrease of 1.4%.

Finally, the March trade balance showed a deficit of $40.44 billion while the Briefing.com consensus expected the deficit to come in at $41.40 billion. The previous month's deficit was revised to $46.96 billion from $47.10 billion.

8:01 am: [BRIEFING.COM] S&P futures vs fair value: -12.20. Nasdaq futures vs fair value: -28.00.

U.S. equity futures trade lower with the S&P 500 futures hovering 12 points below fair value. Futures slipped overnight as global growth concerns continued to weigh on equity markets. Ahead of today's session, German, French, and eurozone Services PMI each missed estimates for April. Meanwhile, currency market volatility continues to act as a headwind as investors weigh the impact of a stronger greenback on dollar-denominated commodities. On that note, the U.S. Dollar Index (93.04, +0.09) trades higher as the dollar sports a gain of 0.3% against the Canadian dollar (1.2760). Separately, the euro/dollar pair trades higher by 0.1% at 1.1505 while the dollar/yen pair trades flat at 106.60.

For its part, WTI crude trades higher by 0.7% ($43.95/bbl) as investors look ahead to weekly stockpile data from the Department of Energy. Inventories of crude oil, gasoline, and distillates will cross the wires at 10:30 ET.

The Treasury complex trades on a flat note with the yield on the 10-yr note unchanged at 1.80%.

On the economic front, the weekly MBA Mortgage Index showed a seasonally adjusted decrease of 3.4%. The April ADP Employment Change (Briefing.com consensus 196k) will be released at 8:15 ET. Meanwhile, preliminary Q1 Productivity (Briefing.com consensus -1.4%), Unit Labor Cost (Briefing.com consensus 2.6%), and the March Trade Balance (Briefing.com consensus -$41.4 Billion) will all be released at 8:30 ET. Finally, the day's data will be capped off with March Factory Orders (Briefing.com consensus 0.5%) and April ISM Services (Briefing.com consensus 54.5) both crossing the wires at 10:00 ET.

In U.S. corporate news of note:

Priceline (PCLN 1186.00, -168.64): -12.5% after reporting above-consensus results for the quarter, but guiding Q2 earnings below analysts' estimates
Zillow (Z 28.01, +2.95): +11.8% following the company missing bottom-line estimates for the first quarter, but raising Q2 and FY16 revenue guidance above-consensus
Medivation (MDVN 59.75, +2.23): +3.9% after reports indicated that Pfizer (PFE 33.57, -0.13) might be interested in acquiring the company
Time Warner (TWX 74.75, +1.11): +1.5% following the company beating bottom-line estimates on in-line revenue for Q1

Reviewing overnight developments:

Asia-Pacific equity markets ended lower with Hong Kong's Hang Seng -0.7% and China's Shanghai Composite -0.1%. Meanwhile, Japan's Nikkei was closed.
In economic data:
India's April Nikkei Services PMI 53.7 (last 54.3)
Australia's April AIG Services Index 49.7 (last 49.5)
New Zealand's Q1 Employment Change +1.2% quarter-over-quarter (expected 0.7%; last 0.9%) and Q1 Unemployment Rate rose to 5.7% from 5.3% (expected 5.5%)
In news:
China's National Development and Reform Commission warned that the country's economy faces downward pressure in investment.

European indices trade lower with the U.K.'s FTSE -1.3%, Germany's DAX -0.8%, and France's CAC -0.8%.
In economic data:
Eurozone April Services PMI 53.1 (expected 53.2; last 53.2) and March Retail Sales -0.5% month-over-month (expected -0.1%; last 0.3%); +2.1% year-over-year (consensus 2.5%; last 2.7%)
Germany's April Services PMI 54.5 (expected 54.6; last 54.6)
UK's April Construction PMI 52.0 (consensus 54.0; previous 54.2)
France's April Services PMI 50.6 (expected 50.8; last 50.8) and March trade deficit narrowed to EUR4.40 billion from EUR5.10 billion, as expected
Spain's April Services PMI 55.1 (consensus 55.0; last 55.3) and Unemployment Change -83,600 (expected -86,600; last -58,200)
Italy's April Services PMI 52.1 (consensus 51.7; last 51.2)
In news:
Spain's PMI beat expectations (55.1; expected 55.0) as preparations begin for a new election in late June.
Interim Prime Minister Mariano Rajoy said he would lower the deficit to GDP ratio below 3.0% by the end of next year and vowed not to raise taxes.

5:54 am: [BRIEFING.COM] S&P futures vs fair value: -13.50. Nasdaq futures vs fair value: -28.30.

5:54 am: [BRIEFING.COM] Nikkei...Holiday......... Hang Seng...20526...-151.10...-0.70%.

5:54 am: [BRIEFING.COM] FTSE...6122.07...-63.50...-1.00%. DAX...9871.14...-55.60...-0.60%.

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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