TheStrategyLab.com Price Action Trading Support Forum

Forum for price action traders that want to learn WRB Analysis basic tutorial chapters 1, 2 and 3 prior to purchasing our advance trade methods. Hashtags: #wrbanalysis #wrbzone #wrbhiddengap #priceaction #trading
It is currently Thu Mar 28, 2024 4:13 am

All times are UTC - 5 hours [ DST ]




Post new topic Reply to topic  [ 1 post ] 
Author Message
 Post subject: March 10th Tuesday 2009
PostPosted: Tue Mar 10, 2009 7:24 pm 
Offline
Site Admin

Joined: Sat Jan 10, 2009 2:06 pm
Posts: 4335
Location: Canada
Attachment:
031009NihabaAshiPnLBlotterProfit.png


Today's trades that were posted in real-time in #FuturesTrades chat room via my IRC user name NihabaAshi are archived @ http://www.thestrategylab.com/ftchat/forum/viewtopic.php?f=20&t=128

My Trading Performance: +37.25 Emini ES points

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



Stocks: Biggest gains of '09
The Dow gains 379 points, Nasdaq surges 7% and S&P 500 rallies 6.4% on Citigroup and possible limit on short selling.
By Alexandra Twin, CNNMoney.com senior writer
Last Updated: March 10, 2009: 6:28 PM ET

NEW YORK (CNNMoney.com) -- Stocks rallied Tuesday - with all three major indexes logging their biggest gains of the year - after Citigroup cooled some worries about its future and regulators said they may reinstate a key trading rule.

The Dow Jones industrial average (INDU) gained 379 points, or 5.8%. It was the Dow's biggest one-day point and percentage gain since Nov. 24, 2008.

The S&P 500 (SPX) index gained 43 points, or 6.4%. It was the biggest one-day point gain since Dec. 16, 2008 and biggest on a percentage basis since Nov. 24, 2008.

The Nasdaq composite (COMP) climbed almost 90 points, or 7.1%. It was the biggest one-day point gain since Nov. 13, 2008 and biggest percentage gain since Oct. 28, 2008.

"Today's rally was very welcome news from a market that's gone nowhere but down over the last several months," said Michael Sheldon, chief market strategist at RDM Financial Group.

He said that the advance was strong in terms of the number of stock advancers versus decliners, as well as the trading volume. Looking forward, one issue is that there are a lot of sellers who are going to want to sell into strength, he said. But for the time being, stocks could manage more gains.

"Overall we are oversold here and there is still a lot of pessimism in place that could fuel a rally," he said. Extreme pessimism can be good for a rally from a contrarian perspective.

Citigroup (C, Fortune 500)'s CEO said that the company was profitable in the first two months of the year and expressed optimism about its capital position going forward. Shares of the hard-hit bank jumped 38%, leading a broader financial sector rally.

The stock advance picked up speed after Rep. Barney Frank, D-Mass. and the head of the U.S. House Financial Services Committee, said that the Securities and Exchange Commission would restore the "uptick rule." The SEC later confirmed to CNN that it could reinstate the rule as early as next month.

The uptick rule -- in place until July 2007 -- limited short sellers from adding to the downward momentum of a stock that was already plunging. In short selling, traders make money when the price of a stock falls. Critics say the ending of the rule exacerbated selling in the financial sector over the last year and a half.

Stocks were also bouncing Tuesday after the recent bloodletting in the markets.

Year-to-date, the Dow and S&P 500 had both fallen 25% as of Monday's close, while the Nasdaq had fallen around 17%. The market close Monday left the Dow and S&P 500 at 12-year lows and the Nasdaq at 6-year lows.

In light of the huge selloff, analysts have been saying for a while that the market was due for a sharp, bear market rally. That seemed to take hold Tuesday.

"There's a chance that if this gets enough gas, it could move up a lot more," said Tom Schrader, managing director at Stifel Nicolaus. That turned out to be the case last fall after the stock market hit lows in both October and November.

"There's tons of cash sitting in money markets and if people start to think they're going to miss out, they're going to want to jump back in," Schrader said.

In other news, Bernard Madoff - the alleged swindler behind a $50 billion fraud - is set to plead guilty to 11 counts that could bring a sentence of 150 years in prison.

Citigroup: CEO Vikram Pandit, in a letter to employees, said the bank was profitable year-to-date, surprising Wall Streeters who expect the company to post a quarterly loss. However, the letter, filed with the SEC, did not specify how much credit losses and other one-time items would offset the profit.

Shares had fallen about 80% through Monday's close on worries that the company won't be able to stay afloat, despite repeated government efforts to bolster the company. Last week, the government agreed to take up to a 36% stake in the company. (Full story)

Movers: American Express (AXP, Fortune 500), Bank of America (BAC, Fortune 500), Wells Fargo (WFC, Fortune 500), JPMorgan Chase (JPM, Fortune 500), Goldman Sachs (GS, Fortune 500) and Morgan Stanley (MS, Fortune 500) were among the other bank stocks rallying.

The KBW Bank (BKX) sector index, a measure of the 24 largest banks, climbed 15.6%.

However the rally was broad based, with all 30 Dow components advancing. In addition to the Dow's financial stocks, other big gainers included Alcoa (AA, Fortune 500), Caterpillar (CAT, Fortune 500), DuPont (DD, Fortune 500), General Electric (GE, Fortune 500) and General Motors (GM, Fortune 500).

A variety of big tech shares jumped, too, including Cisco Systems (CSCO, Fortune 500), eBay (EBAY, Fortune 500), Dell (DELL, Fortune 500), Google (GOOG, Fortune 500) and Dow component Intel (INTC, Fortune 500).

Dow component United Technologies (UTX, Fortune 500) cut its 2009 revenue and earnings-per-share forecast, citing the global recession. The company also said it was cutting 11,600 jobs this year, or about 5% of the workforce.

Dow component AT&T (T, Fortune 500) said it will add 3,000 jobs in 2009 as part of a capital spending program.

Market breadth was positive. On the New York Stock Exchange, winners topped losers by over 13 to one on volume of nearly 2.19 billion shares. On the Nasdaq, advancers beat decliners by more than five to one on volume of 2.49 billion shares.

Today, March 10, is a dubious anniversary for the Nasdaq. It's the 9-year anniversary of the day it hit its all-time high of 5048.62 at the height of the tech boom. As of Monday's close, the tech-heavy index was down 75% from its peak. (Full story)

Bernanke: Investors also weighed comments from Federal Reserve Chairman Ben Bernanke, who called for an overhaul of the regulatory system. Speaking in the morning at the Council on Foreign Relations in Washington, the Fed chief said that companies deemed "too big to fail" need to be subject to stricter regulation so that a crisis like the current one doesn't happen again.

In comments made after his speech, Bernanke also said he does not support the suspension of the mark-to-market accounting rule, but rather improvements in it. Critics say the rule has exacerbated the financial crisis by forcing banks to value assets at current fire sale prices. (Full story)

The Securities and Exchange Commission is not planning to suspend the rule, Reuters reported. A congressional panel will exam the rule Thursday.

Bonds: Treasury prices tumbled, raising the yield on the benchmark 10-year note to 3% from 2.87% Friday. Treasury prices and yields move in opposite directions.

Lending rates tightened. The 3-month Libor rate rose to 1.33% from 1.31% Monday, while the overnight Libor rate held stead at 0.33%, according to Bloomberg.com. Libor is a bank-to-bank lending rate.

Other markets: In global trading, Asian markets ended mostly higher, with the exception of the Japanese Nikkei. European markets rallied.

In currency trading, the dollar fell versus the euro and the yen.

U.S. light crude oil for April delivery fell $1.36 to settle at $45.71 a barrel on the New York Mercantile Exchange.

COMEX gold for April delivery fell $22.10 to settle at $895.90 an ounce

Yahoo! Finance

4:30 pm : All three major indices registered fresh multiyear closing lows in the prior session, but came rallying back this session to log their best single-session performance by percent in months. The rebound came after Citigroup issued an encouraging update and reports indicated the uptick rule may be reinstated.

Citigroup (C 1.45, +0.40) told investors that it earned a profit during the first two months of 2009. Given the conditions and challenges facing the financial sector, news that the beleaguered financial giant is moving in the right direction supported a bid for financial stocks.

Financial stocks were further bolstered by reports that House Financial Services Chairman Barney Frank said he believes the Securities and Exchange Commission (SEC) will reinstate the uptick rule as early as next month. The rule would help prevent traders from adding to the momentum of falling stocks. That could be particularly helpful to financial stocks, which have fallen more than 40% year-to-date.

Investors are also hoping that a congressional committee meeting this week will move to temporarily relax mark-to-market rules. The rules have caused banks and financial firms to incur massive write-downs, which have driven losses and destroyed capital.

Rep. Frank stated mark-to-market accounting rules must be improved, but Senator Shelby says any mark-to-market accounting changes should be made by the SEC. The SEC stated it will not seek to suspend such rules.

Financial stocks surged 15.6% this session, providing leadership to the broader market, which had become quite oversold in recent sessions. The stock market's advance was further helped by short-covering. Still, trading volume on the NYSE climbed above 2 billion shares, which is well above recent averages, suggesting there was also some conviction behind the advance.

Roughly 97% of the companies in the S&P 500 finished with a gain. All 30 of the Dow components closed higher.

Investors showed little reaction to Fed Chairman Bernanke's speech about financial reform and systemic risk.

Other corporate news also had little effect on sentiment. Whirlpool (WHR 23.11, +3.72) reaffirmed its 2009 outlook, which allows for an upside surprise, but United Technologies (UTX 40.79, +3.23) issued estimates that fall short of the consensus. Texas Instruments (TXN 15.66, +0.97) and Exelon (EXC 42.57, -1.27) expect earnings that are in-line with analysts' expectations. Kroger (KR 21.44, +1.98) issued upside guidance along with better-than-expected fourth quarter earnings results.

Economic data was lackluster. Monthly wholesale inventories fell 0.7% in January. Economists, on average, expected a decline of 1.0% in January. The prior reading was revised modestly lower to reflect a 1.5% decline. DJ30 +379.44 NASDAQ +89.64 NQ100 +6.6% R2K +7.1% SP400 +6.9% SP500 +43.07 NASDAQ Adv/Vol/Dec 2243/2.15 bln/468 NYSE Adv/Vol/Dec 2918/2.15 bln/221

3:35 pm : The equity markets are continuing their strong rebound off of yesterday's multiyear closing lows. Commodities, on the other hand, have seen selling pressure this session.

April crude oil advanced to $48.32 per barrel in the morning trade but moved sharply lower throughout the afternoon to close at $45.71 per barrel, down 3.5% on the session.

April natural gas futures spiked to morning highs of $3.96. The contracts quickly gave up these gains and closed near the flat line for the session at $3.84 per contract.

April gold finished a move to the downside at $895.90 per ounce, down 2.4%. The gold futures closed just below their 50-day moving average and have now fallen over $100 since hitting highs on Feb. 20, when they traded above $1000 per ounce.

May silver futures also sold off during today's session. The silver futures contracts closed the session at $12.54 per ounce, down 3.1%.DJ30 +340.42 NASDAQ +81.53 SP500 +39.97 NASDAQ Adv/Vol/Dec 2225/1.9 bln/480 NYSE Adv/Vol/Dec 2877/1.5 bln/241

3:00 pm : With a congressional committee scheduled to meet later this week in order to examine mark-to-market rules, U.S. Senator Shelby stated that any changes to mark-to-market accounting rules should be made by the Securities Exchange Commission (SEC), not by Congress, according to Reuters. Meanwhile, separate reports indicated U.S. Representative Frank believes the rules must be improved.

Regardless of the conflicting opinions, the SEC stated earlier today that it will not seek to suspend mark-to-market rules.

The statements haven't undermined the session's positive tone; stocks continue to trade near their session highs. Every major sector is up at least 2.0%; financials are leading the way with a 13% gain.DJ30 +303.62 NASDAQ +74.41 SP500 +36.20 NASDAQ Adv/Vol/Dec 2208/1.74 bln/482 NYSE Adv/Vol/Dec 2848/1.34 bln/260

2:30 pm : This session's rally is lifting a broad range of stocks. Within the S&P 500, almost 95% of the companies are trading higher.

Despite ongoing fear that higher job losses and tighter credit will crimp consumer spending, retailers are trading 7.3% higher.

Dillards (DDS 4.17, +0.75) is trading more than 20% higher after announcing the company will pay a quarterly cash dividend of $0.04 per share, which is unchanged from the prior quarter.

J. Crew (JCG 9.72, +0.36) is trading with a more modest gain. The company will release its latest quarterly results after the closing bell. The consensus estimate calls for loss of $0.27 per share.DJ30 +301.25 NASDAQ +74.10 SP500 +34.73 NASDAQ Adv/Vol/Dec 2195/1.59 bln/494 NYSE Adv/Vol/Dec 2844/1.23 bln/261

2:05 pm : The major indices continue to trade with strong gains.

AT&T (T 22.83, +1.11) said it expects to invest around $17 billion to $18 billion in 2009, which is in-line with its 2007 capital expenditures of $17.7 billion. Roughly two-thirds of the investment will be in wireless and wired broadband networks. Shares of AT&T are up 5.1%.DJ30 299.62 NASDAQ +76.75 SP500 +36.44 NASDAQ Adv/Vol/Dec 2204/1.47 bln/479 NYSE Adv/Vol/Dec 2839/1.14 bln/257

1:30 pm : According to an article in The Wall Street Journal, Meredith Whitney, who gained Wall Street fame by accurately predicting the fall of many financial giants, believes personal credit will by squeezed by banks turning cautious.

Whtiney notes that the reduced credit could result in unintended consequences for consumer confidence and spending. Such consequences could adversely affect the overall economy.DJ30 +291.27 NASDAQ +73.51 SP500 +34.78 NASDAQ Adv/Vol/Dec 2206/1.34 bln/460 NYSE Adv/Vol/Dec 2828/1.02 bln/258

1:00 pm : Stocks are surging in what is shaping up to be the best single-session performance for the S&P 500 since late November. Investors had been clamoring for a rebound since the stock market has closed lower in 13 of the last 16 sessions.

With stocks looking oversold, news that Citigroup (C 1.39, +0.34) earned a profit in the first two months of 2009 proved sufficient for participants to enter a bid for stocks, prompting short sellers to cover their bets. The action has induced broad-based gains as all 10 sectors climb substantially higher.

Short sellers may find their strategy challenged if things go as U.S. Representative Barney Frank expects. According to Reuters, Rep. Frank expects the uptick rule will be restored in about one month.

That statement has helped push financial stocks even higher, since the sector has been a primary target of short-sellers looking to add to the sector's downward momentum. Financials have fallen 44% year-to-date, but are up 12.0% this session.

Rep. Frank also stated mark-to-market accounting rules must be improved, though the Securities Exchange Commission will not seek to suspend such rules. Still, a congressional committee will meet this week to examine the mark-to-market rules, which have driven massive write-downs among banks and financial firms.

Several companies were out reaffirming or updating earnings guidance. Whirlpool (WHR 22.67, +3.27) reaffirmed its 2009 outlook, which allows plenty of room for an upside surprise. United Technologies (UTX 40.19, +2.63), however, issued adjusted earnings estimates for fiscal 2009 that fall short of the consensus estimate.

Texas Instruments (TXN 15.61, +0.92) narrowed its outlook, which remains in-line with the current consensus estimate. Exelon (EXC 44.73, +0.89) also issued in-line guidance.

Kroger (KR 21.59, +2.13) issued upside guidance for 2009. The outlook complements the company's better-than-expected fourth quarter earnings results.

Fed Chairman Bernanke spoke about financial reform and systemic risk this morning. Stocks showed little reaction to his comments, which were largely in-line with observations to ensure that future crises will be handled adeptly.

The only item on today's economic calendar indicated monthly wholesale inventories fell 0.7% in January. Economists, on average, expected a decline of 1.0% in January. The prior reading was revised modestly lower to reflect a 1.5% decline. DJ30 +289.68 NASDAQ +70.87 SP500 +34.69 NASDAQ Adv/Vol/Dec 2199/1.24 bln/421 NYSE Adv/Vol/Dec 2822/951 mln/259

12:30 pm : According to Reuters, U.S. Rep. Frank stated mark-to-market accounting rules must be improved. Frank also indicated he expects the uptick rule to be restored in about one month.

The uptick rule is designed to prevent short sellers from adding to the downward momentum of stocks that are already experiencing a sharp decline. By requiring traders to place a short sale order at a price above a stock's current price, the rule ensures an order will only be completed when the stock price ticks upward to the order price.

Financial stocks are now up 12.5%. The sector's best performing members include other diversified financial services companies (+23.6%), diversified banks (+15.0%), investment banks and brokerages (+15.4%), and regional banks (+14.6%).DJ30 +317.16 NASDAQ +76.29 SP500 +37.52 NASDAQ Adv/Vol/Dec 2205/1.12 bln/391 NYSE Adv/Vol/Dec 2833/853 mln/240

12:00 pm : Stocks continue to trade with solid gains as they climb to session highs. Interest in commodities has been rather mixed, though.

Oil prices are moving higher, extending the prior session's gains. Contracts for crude oil delivery are pricing oil 1.2% higher at $47.65 per barrel.

Holders of gold are turning against the yellow metal. The classic safe-haven was recently quoted 1.9% lower at $900.40 per ounce, which is near some of the metal's lowest levels of the past month. DJ30 +309.91 NASDAQ +71.99 SP500 +36.26 NASDAQ Adv/Vol/Dec 2140/971 mln/386 NYSE Adv/Vol/Dec 2792/726 mln/258

11:30 am : Reuters reports that the Securities Exchange Commission will not seek to suspend mark-to-market accounting rules. The rules, which require firms to value assets at current market rates, have resulted in massive write-downs at banks and other financial firms. Those write-downs have driven steep losses that have often required firms to raise capital.

However, reports indicate a congressional committee will meet this week to examine the rules.

The financial sector is currently trading with a 9.9% gain. Its advance is helping drive strong gains in the broader market; all 10 major sectors in the S&P 500 are up handsomely.DJ30 +272.32 NASDAQ 63.37 SP500 32.00 NASDAQ Adv/Vol/Dec 2117/850 mln/377 NYSE Adv/Vol/Dec 2779/634 mln/250

11:05 am : Stocks are staging strong gains in the first few minutes of trading. The upbeat tone comes after Citigroup (C 1.32, +0.27) stated it was profitable in the first two months of 2009.

Ordinarily, Citi's announcement wouldn't cause much of a stir. However, given the conditions and challenges facing the financial sector, hope that one of the sector's largest and most troubled players may return to profitability is supporting a bid for financial stocks (+9.0%) and the broader market.

Citi's dose of positive news is also driving some short-covering. With stocks stuck in a rut (the S&P 500 has closed lower in 13 of the last 16 sessions), betting against stocks has been relatively easy lately, leading to a crowded trade. This session's upturn has prompted many short-sellers to cover their positions.

In other corporate news, Whirlpool (WHR 22.42, +3.03) reaffirmed its outlook for 2009. The company expects earnings from continuing operations to range from $3.00 to $4.00 per share. The consensus estimate calls for earnings of $2.99 per share.

Dow component United Technologies (UTX 39.57, +2.01) announced it expects adjusted earnings for fiscal 2009 to range from $3.70 to $4.10 per share, which falls short of the consensus estimate of $4.60 per share. The company also expects $600 million more in restructuring charges, bringing restructuring to $750 million for the year. Share repurchase guidance for the year has been halved to $1 billion.

Meanwhile, Texas Instruments (TXN 15.45, +0.76) narrowed its outlook. The company expects first quarter results to range from a loss of $0.08 per share to breaking even, including certain restructuring charges. The forecast is in-line with the current consensus estimate.

Utilities giant Exelon (EXC 45.35, +1.51) issued in-line guidance during a conference. The company expects first quarter earnings to range from $1.10 to $1.20 per share, and full-year earnings to range from $4.00 to $4.30 per share. The consensus estimate calls for first quarter earnings of $1.13 per share and full-year earnings of $4.17 per share.

Kroger (KR 20.98, +1.52) posted fourth quarter earnings of $0.53 per share, besting the consensus estimate of $0.52 per share. The company expects earnings for 2009 to range from $2.00 to $2.05 per share, which exceeds the consensus estimate of $1.90 per share.

In a speech about financial reform and systemic risk, Fed Chairman Bernanke stated governments around the world must continue to take forceful and, when appropriate, coordinated actions to restore financial market functioning and the flow of credit. Until the financial system is stabilized, a sustainable economic recovery will remain out of reach. The Federal Reserve, other regulators, and the Treasury will take any necessary and appropriate steps to ensure that banking institutions have the capital and liquidity necessary to function well in even a severe economic downturn.

Bernanke said regulators must address the problem of financial institutions that are deemed too big to fail, strengthen financial infrastructure, review regulatory policies and accounting rules, and consider an authority to monitor and address systemic risks.

Monthly wholesale inventories fell 0.7% in January, marking the fifth straight monthly decline. Economists, on average, expected a decline of 1.0% in January. The prior reading was revised modestly lower to reflect a 1.5% decline. DJ30 +255.43 NASDAQ +60.37 SP500 +29.35 NASDAQ Adv/Vol/Dec 2126/806 mln/357 NYSE Adv/Vol/Dec 2770/601 mln/255

08:35 am : S&P futures vs fair value: +13.90. Nasdaq futures vs fair value: +19.00. The major European indices are sporting solid gains after a mixed close in the prior session. Germany's DAX is leading the way as it advances 1.8%. Daimler and Deutsche Bank (DB) are primary leaders in the German bourse. Meanwhile, London's FTSE is up 1.3%. Its gains have come with the help of Standard Chartered and HSBC (HBC). Shares of HBC are continuing their rebound from the prior session's lows, which came as selling pressure mounted ahead of the company's rights offering. Despite logging a loss Monday, the stock finished well above the session's lows. France's CAC is currently up 1.3%. Financial outfits BNP Paribas and Societe Generale are showing the most strength. The advance by European financial giants comes as global financial giant Citigroup (C) announced it was profitable in the first two months of 2009. In Asia, the MSCI Asia-Pacific Index closed 0.9% higher. Stocks there caught a bid after falling to a five-year low in the prior session. In Japan, the Nikkei closed 0.4% lower. Shares of drugmakers dropped in the wake of Merck's (MRK) proposal to takeover of Schering-Plough (SGP) for $41 billion. But banks gained some ground, though. In Hong Kong, the Hang Seng closed 3.1% higher. Its advance was aided by a surge in shares of HSBC. The movement in shares of HSBC mirrored those registered in Europe. Oil producers CNOOC (CEO) and PetroChina (PTR) both advanced after oil prices climbed. In mainland China, the Shanghai Composite closed 1.9% higher.

08:05 am : S&P futures vs fair value: +13.20. Nasdaq futures vs fair value: +18.50. Stock futures currently lead fair value by a wide margin. The upbeat tone comes after Citigroup (C) stated it was profitable in the first two months of 2009. That calms concern that could have been triggered by an article in The Wall Street Journal that said U.S. officials are examining what steps may be necessary to stabilize Citigroup if the financial giant struggles further. Shares of C are trading 17% higher at $1.22 per share in premarket action. Texas Instruments (TXN) now expects first quarter results to range from a loss of $0.08 per share to breaking even, including certain charges. The consensus estimate calls for a loss of $0.02 per share. Texas Instruments previously estimated first quarter results would range from a loss of $0.11 per share to earnings of $0.03 per share. Following the prior session's close, Dow Chemical (DOW) and Rohm and Haas (ROH) confirmed they have reached an agreement to close Dow's previously announced acquisition of Rohm and Haas on April 1. The agreement involves a new equity investment of $2.5 billion and an additional $500 million of equity by two of the largest ROH shareholders, at Dow's option.

06:24 am : S&P futures vs fair value: +14.90. Nasdaq futures vs fair value: +19.80.

06:24 am : Nikkei...7054.98...-31.10...-0.40%. Hang Seng...116494.05...+349.50...+3.10%.

06:24 am : FTSE...3553.33...+10.90...+0.30%. DAX...3735.74...+43.70...+1.20%.


Top
 Profile  
 
Display posts from previous:  Sort by  
Post new topic Reply to topic  [ 1 post ] 

All times are UTC - 5 hours [ DST ]


Who is online

Users browsing this forum: No registered users and 1 guest


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot post attachments in this forum

Search for:
Jump to:  
cron
Powered by phpBB © 2000, 2002, 2005, 2007 phpBB Group
Translated by Xaphos © 2007, 2008, 2009 phpBB.fr