Key WRB Price Action
5min Regular Session Chart - The price action (key change in supply/demand) that had the most impact on today's price action ocurred yesterday via the 3min chart @ 1205pm est.
It provided a key support area that prevented the market from making new intraday lows and provided the support that started the late rally beginning around 3pm est. FYI - The above discussion is about one key WRB price action even though there were other key WRB price actions that occurred during the trading day that could be used to confirm entry signals, exit signals, profit targets et cetera.
Simply, knowledge of different types of key WRB's is what results in a complete understanding of the price action being traded as it is occurring in real-time.http://www.thestrategylab.com/WRBAnalysisTutorials.htmhttp://www.thestrategylab.com/TradingReports.htm T
oday's trades that were posted in real-time in #FuturesTrades chat room via my IRC user name NihabaAshi
. You can review each trade from entry to exit along with commentary and an occasional trading tip because its all archived @ http://www.thestrategylab.com/ftchat/forum/viewtopic.php?f=51&t=204
My Trading Performance: +11.50
Emini ES points
052909NihabaAshiPnLBlotterProfit.png [ 32.9 KiB | Viewed 2629 times ]
------------------------------- Stocks: Best 3-Month Run Since '07Wall Street ends May with solid gains as stocks stage late-session rally at the end of a rocky day. Dow gains 97 points; S&P, Nasdaq up over 1%.
By Ben Rooney, CNNMoney.com staff writer
Last Updated: May 29, 2009: 4:53 PM ET
NEW YORK (CNNMoney.com) -- Stocks ended a choppy session higher Friday after a late-session rally pushed the major indexes to their biggest three-month run since 2007.
The Dow Jones industrial average (INDU) rose 97 points, or 1.1%, according to early tallies. The broader S&P 500 (SPX) gained 12 points, or 1.3%. The Nasdaq composite (COMP) advanced by 12 points, or 1.3%.
Friday's advance caps an upbeat week for Wall Street. The tech-heavy Nasdaq rose 4.6% over the last 5 trading days. The S&P 500 rose 3.4% and the Dow gained 2.5%.
For the month, the Dow jumped 3.8%, while the S&P 500 rose 5.2% and the Nasdaq advanced 3.6%. May's gains mark the first time stocks have risen for three consecutive months since October 2007.
Stocks had seesawed for most of the session but began to move higher in the last hour of trade, with blue-chip stocks like IBM (IBM, Fortune 500) and Coca Cola Inc. (KO, Fortune 500) leading advancers on the Dow.
Strong oil prices lifted energy shares, which helped prop up the broader market.
"On the upside, the market was propelled by higher oil prices lifting the energy sector," said Quincy Krosby, chief investment strategist at The Hartford. But gains were limited by "the dollar weakening and pressure in the bond market," she added.
Rising oil prices have helped lift the markets in recent days. Oil prices have jumped around 30% this month, marking the largest monthly rise since March 1999. Crude closed above $66 a barrel as the dollar fell to a 5-month low. The yield on the 10-year Treasury note slid to 3.46% as its price ticked up.
Stocks rose Thursday after a government debt auction elicited solid demand, tempering fears that borrowing costs would rise. The major gauges all added about 1%.
Meanwhile, Monday brings a new month and a new week. The old adage "sell in May and go away" may be just that...an adage. Stocks do not, in fact, always fare so poorly in the summer months that 'going away' is a good idea. (Full story)
Economy: The government said first-quarter gross domestic product fell at a revised annual rate of 5.7%, narrower than the originally reported 6.1%. Economists expected the revision to result in a 5.5% rate of decline.
A measure of business activity in the Midwest surprisingly fell in May. The ISM-Chicago Purchasing Managers Index dropped to 34.9 in May from 40.1 in April, signaling contraction. Economists had expected it to rise to 42.
Companies: After the stock market closed Thursday, Dell (DELL, Fortune 500) reported a drop in sales and earnings. The company said a slowdown in PC sales pressured its bottom line.
Before the opening bell Friday, luxury retailer Tiffany & Co. (TIF) reported first-quarter earnings of 20 cents per share, slightly lower than the 21-cent-per-share profit analysts had expected. But the jewelry maker maintained its full-year earnings forecast.
Activist investor William Ackman's quest to overhaul the board of Target (TGT, Fortune 500) fell flat at the retailer's annual shareholder meeting. None of Ackman's candidates for the board won a seat.
Shares of General Motors (GM, Fortune 500) fell below $1 for the first time since the Great Depression as the troubled automaker appeared set to enter bankruptcy despite winning key concessions from the United Auto Workers.
Bonds:Treasury prices rose, with the yield on the benchmark 10-year note slipping to 3.46% from 3.67% Thursday. Bond prices and yields move in opposite directions.
The yield on the 10-year note jumped to a 6-month high of 3.71% earlier this week, raising fears that higher borrowing costs, particularly mortgage rates, could hinder an economic recovery.
Other markets: Stocks around the world rose on the back of Wall Street's rally. In Japan, the Nikkei added nearly 1%. European markets closed higher.
In currency trading, the dollar plummeted against major international currencies. The dollar index, which measures the greenback's performance against a basket of other currencies, sank to a session low of 79.287, its lowest since mid-December.
NYMEX oil for July delivery rose $1.23 to settle at $66.31 a barrel. It was the highest closing price since Nov. 4, when crude settled at $70.53.
COMEX gold for August delivery gained $17.30 an ounce to settle at $978.80. Yahoo! Finance
4:30 pm : The S&P 500 spent nearly the entire session gyrating within a nine point range amid light trading volume, but managed to close at session highs following a late flurry of buying and a spike in trading volume.
In what was May's final trading session, more than 1.8 billion shares traded hands on the NYSE, the most in more than one month.
Financial stocks were integral to the late move. After being a source of weakness for most of the session, financial stocks rallied from a loss in excess of 1% to finish with a 1.7% gain in the final hour.
While financial stocks made a strong finish, materials stocks spent the entire session trading with enviable gains. The sector closed 3.0% higher, propped up by diversified metals and mining companies (+4.2%), steel stocks (+3.3%), and gold stocks (+3.2%).
Gold stocks were helped along by a run up in gold prices. Gold contracts settled pit trading with the yellow metal priced at $979.00 per ounce, up 1.8% for the session and more than 20% from their 2009 lows. Gold prices are now less than 3% below their 2009 highs.
Meanwhile, crude oil prices rallied 1.7% to finish at a fresh six-month high of $66.21 per barrel.
A 1.5% drop in the Dollar Index helped underpin a broad ascent by commodities. As such, the CRB Commodity Index finished 1.3% higher. Commodities finished May with a gain of more than 14%, outperforming the S&P 500, which logged a monthly gain of 5.2%. Still, the S&P 500 has finished the last three months with gains.
General Motors (GM 0.75, -0.37) has had an awful month, however. The stock has lost more than half its value since the start of May as the company comes face to face with the government's restructuring deadline. With the threat of bankruptcy looming, shares of GM are at record lows.
In other corporate news, J. Crew (JCG 25.86, +5.40) posted upside first quarter earnings and guided second quarter earnings above the consensus forecast, winning it favor among investors. The stock logged one of its best single-session performances by surging more than 25%.
Dell (DELL 11.57, +0.09) was less fortunate, though. The company faltered after posting better-than-expected earnings.
In economic news, preliminary first quarter GDP showed 5.7% drop for the first quarter, which was a slight improvement from the 6.1% decline that had been reported in the advance GDP reading. Participants showed little reaction to the data since most of it was already known.
Treasuries logged a solid session as they continue to recover from Wednesday's beating. The 10-year Note climbed more than one full point to push its yield back below 3.5%.DJ30 +96.53 NASDAQ +22.54 NQ100 +1.1% R2K +1.9% SP400 +1.6% SP500 +12.31 NASDAQ Adv/Vol/Dec 1898/2.57 bln/818 NYSE Adv/Vol/Dec 2232/1.86 bln/779
3:40 pm : The CRB Commodity Index closed up 1.3% this session. This was a fitting finish to a very strong month as equities rose and the dollar fell; the CRB finished the month up nearly 14%.
July crude oil rallied into the close to finish at a fresh six month high of $66.21 per barrel, up 1.7%. May crude oil futures recorded the largest monthly gain in the past decade; the futures are now up 43% year-to-date.
July natural gas closed the session at $3.83 per contract down 3.0%. The natural gas futures are down 36% year-to-date.
June gold finished up 1.8% at $979.00 per ounce. Gold futures are up over 21% from their 2009 lows hit in mid-January.
Silver futures experienced their biggest monthly gain in 22 years. The futures have risen over 77% since hitting multi-year lows in late October of 2008. July silver futures contracts closed at $15.61 per ounce, up 3.0%.DJ30 +6.21 NASDAQ +0.86 SP500 +2.04 NASDAQ Adv/Vol/Dec 1502/1.8 bln/1197 NYSE Adv/Vol/Dec 1808/890 mln/1175
3:00 pm : News flow continues to be slow heading into the final hour of trading for the week and volume remains light. Without any clear market moving events, the major averages have been hovering around the unchanged mark with the S&P 500, Dow, and Nasdaq all currently slightly lower.
Although off its highest levels, the materials sector is still an outperformer. Financials, however, have been a source of weakness for the market. DJ30 -11.23 NASDAQ -4.66 SP500 -0.80 NASDAQ Adv/Vol/Dec 774/1603/1254 NYSE Adv/Vol/Dec 1699/769.8/1282
2:30 pm : The session's tepid tone persists. However, materials stocks have managed to climb to fresh session highs; the sector is now up 2.1%.
The materials sector's advance this session compounds its year-to-date gain. Materials stocks are currently up 17.1% year-to-date. Only tech has fared better this year; tech is up 17.6% year-to-date, but down 0.4% this session.DJ30 +10.12 NASDAQ +1.00 SP500 +2.10 NASDAQ Adv/Vol/Dec 1487/1.49 bln/1154 NYSE Adv/Vol/Dec 1805/711 mln/1169
2:00 pm : With a government imposed restructuring deadline drawing near and no word that a viable business plan is ready, many analysts believe that bankruptcy is imminent for General Motors (GM 0.80, -0.32).
However, recent reports indicate that the company hasn't been sitting idle. After getting bondholders to accept an ammended exchange offer, the company has ratified a national labor agreement with the United Auto Workers union.
Still, shares of GM have been pushed to record lows.DJ30 +3.59 NASDAQ +0.28 SP500 +2.11 NASDAQ Adv/Vol/Dec 1503/1.38 bln/1135 NYSE Adv/Vol/Dec 1790/658 mln/1164
1:30 pm : Materials stocks are testing their session highs as they climb to a 1.9% gain. Meanwhile, energy stocks (+0.8%) are drifting lower as crude oil prices pare their gains; crude oil prices are now up just 0.2% to trade near $65.20 per barrel.
Overall gains remain modest in the rest of the market.DJ30 +2.79 NASDAQ +0.84 SP500 +2.24 NASDAQ Adv/Vol/Dec 1451/1.28 bln/1145 NYSE Adv/Vol/Dec 1794/604 mln/1156
1:05 pm : Trading in the broader market has been choppy and range bound for the entire session. However, energy and materials stocks are making solid gains amid spiking commodities prices.
Energy stocks (+1.2%) and have been sporting enviable gains since the opening bell. The energy sector's advance comes amid a 1.6% increase in crude oil prices, which currently stand just above $66 per barrel, near the 2009 highs they set earlier.
Gains among materials stocks (+1.9%) are even more impressive. Their advance comes as broader commodity prices rise to take the CRB Commodity Index 1% higher.
On the other hand, financials (-0.5%) and telecom (-0.9%) have been trading as laggards for most of the session.
Retailers (+0.2%) had recently been under pressure, but have since rebounded. Lowe's (LOW 18.86, -0.16) is a primary laggard in the group, even though the company hiked its quarterly by nearly 6%. J. Crew (JCG 25.47, +5.01) is providing some support to retailers, however. Shares of the apparel retailer are surging after the company posted upside first quarter earnings and guided second quarter earnings above the consensus forecast. The company did indicate during its conference call that it will continue to see margin pressure.
Better-than-expected earnings from Dell (DELL 11.45, -0.03) and in-line earnings from Marvell Technology (MRVL 11.13, -0.56) haven't done much to support the tech sector, which is down 0.2%.
The preliminary first quarter GDP report had little impact on trading, since most of the data was already known to the market. Still, first quarter GDP was revised upward to reflect a 5.7% drop from the 6.1% decline that had been reported in the advance GDP reading. The consensus called for a 5.5% decline.
Ahead of the report, Dallas Fed President Fisher said the U.S. recession is fading, but the economy will not recover in a meaningful way before the end of this year, according to Reuters.com. Fisher also said official foreign holdings of U.S. bonds had grown.
The 10-year Note is currently up nearly one full point, which has pushed its yield near 3.5%.DJ30 -0.16 NASDAQ -0.50 SP500 +2.10 NASDAQ Adv/Vol/Dec 1420/1.20 bln/1173 NYSE Adv/Vol/Dec 1786/571 mln/1162
12:30 pm : Stocks are stuck in a listless session, making for a choppy, narrow trading range. As such, the S&P 500 has spent virtually the entire session between 912 and 905. The S&P 500 also remains comfortably in between its 50-day moving average and its 200-day moving average, which stand at 861 and 928, respectively.DJ30 -7.57 NASDAQ -1.58 SP500 +1.44 NASDAQ Adv/Vol/Dec 1380/1.09 bln/1192 NYSE Adv/Vol/Dec 1744/518 mln/1159
12:00 pm : All three major indices have slipped into the red. However, the S&P 400 Mid-Cap Index and the Russell 2000 Small-Cap Index are holding on to modest gains; both are up 0.1%.
Small-cap and mid-cap stocks are mixed year-to-date, though. So far this year small-caps are down 1.5%, while mid-caps are up 5.3%.
Large-cap tech has helped the Nasdaq 100 log some of the best year-to-date gains. The Nasdaq 100 is currently up 16.6% this year, though it is down 0.5% this session.DJ30 -34.25 NASDAQ -7.07 SP500 -0.46 NASDAQ Adv/Vol/Dec 1235/948 mln/1314 NYSE Adv/Vol/Dec 1582/464 mln/1310
11:30 am : The major indices are trading in mixed fashion. Advancing issues have a slight edge over decliners in the S&P 500, such is also the case in the Nasdaq. Meanwhile, just over half of the Dow's components are in the red.
Treasuries are attracting support for the second straight session. The benchmark 10-year Note is currently up 24 ticks, which has pushed its yield down to 3.52%. This past Wednesday the 10-year Note was clobbered, which took its yield to above 3.7%, a high for 2009.DJ30 -21.74 NASDAQ -5.55 SP500 +0.83 NASDAQ Adv/Vol/Dec 1219/834 mln/1282 NYSE Adv/Vol/Dec 1599/413 mln/1262
11:00 am : Overall action remains choppy. Broad-market gains remain relatively modest.
Retailers are trading as laggards for the third straight session. The group is currently down 0.3% amid continued weakness in Lowe's (LOW 18.60, -0.42), even though the company announced it has declared a quarterly cash dividend of $0.09 per share, marking a near 6% increase. Despite the home improvement retailer's weakness, peer Home Depot (HD 22.78, +0.08) is providing support to retailers. DJ30 +15.77 NASDAQ +4.73 SP500 +3.20 NASDAQ Adv/Vol/Dec 1423/690 mln/1035 NYSE Adv/Vol/Dec 1850/344 mln/974
10:30 am : The U.S. dollar is on the slide, helping prop up commodity prices. By dropping 1.4%, the Dollar Index is making its steepest single-session decline in three weeks. Meanwhile, the CRB Commodity Index is up 0.8%, which contributes to a week-to-date gain of roughly 3.2%.
Crude oil prices are trading at 2009 highs, currently at $66.00 per barrel, up 1.4% for the session and 7.0% in the last four sessions.
Natural gas prices are up again after spiking more than 8% in the prior session. Natural gas was recently quoted at $4.00 per contract, up 1.1%.
Precious metals prices are also clicking higher. Gold prices are on their way to fresh three-month highs as they trade at $975.50 per ounce, up 1.5% for the session. Still, gold prices are approximately 3% off of their 2009 high.
Silver prices are moving markedly higher, recently setting fresh 2009 highs. Silver prices were last quoted at $15.54 per ounce, up 2.5%.DJ30 +31.46 NASDAQ +7.98 SP500 +4.85 NASDAQ Adv/Vol/Dec 1420/524 mln/944 NYSE Adv/Vol/Dec 1931/259 mln/832
10:00 am : Stocks continue looking for direction as the major indices recover from losses to trade with modest gains. Energy stocks (+0.8%) and materials stocks (+1.2%) remain the best performers.
Gains are also strong among media and broadcasting companies as shares of CBS (CBS 7.18, +0.19) and News Corp (NWS 11.04, +0.04) advance. Shares of CBS were upgraded by analysts at UBS, while analysts at JP Morgan upgraded shares of NWS.
Early movers: Trading down -- MENT -14.3%, WTSLA -13.9%, ESL -13.4%, DTO -11.7%; Trading up -- JCG +19.5%, FTGX +12.8%, STSI +10.7%DJ30 +11.31 NASDAQ +4.0 SP500 +1.54 NASDAQ Adv/Vol/Dec 1207/344 mln/1028 NYSE Adv/Vol/Dec 1652/183 mln/1025
09:45 am : Stocks are looking for direction in the early going as sellers challenge initial gains. Action has been quick moving, thus far.
Financial stocks are trading as primary laggards. The financial sector had been all alone in negative territory during the first few minutes of trading, but now it is leading several others into the red as it trades with a 0.7% loss.
Conversely, energy stocks and materials stocks are seeing the strongest gains. Energy is up 0.7%, helped by a 1.3% spike in crude oil prices, which are now at $65.90 per barrel, near 2009 highs. Meanwhile, materials stocks are up 1.1% as commodities are buoyed by a falling dollar, which is currently down 1.2%, according to the dollar index.DJ30 -11.87 NASDAQ -1.23 SP500 -0.90 NASDAQ Adv/Vol/Dec 1110/228 mln/1031 NYSE Adv/Vol/Dec 1495/131 mln/1105
09:15 am : S&P futures vs fair value: +4.70. Nasdaq futures vs fair value: +2.50. Heading into this session, the S&P 500 is up more than 2% week-to-date and up nearly 4% for the month. If stocks are able to extend their positive premarket bias, those gains will only improve. However, market participants should note that stock futures have had a tough time predicting the direction of the markets this week, since volatility has kept stocks from finding a clear direction. Some of the recent gyrations have come in response to fluctuations in Treasury yields, which currently stand a bit below their 2009 highs, while economic data has underpinned many other movements. Although data has driven action in recent sessions, participants have shown a muted response to this morning's preliminary first quarter GDP report, which showed 5.7% annual rate of decline after the advance reading showed a 6.1% decline. On average, economists were expecting a 5.5% decline. In global economic news, industrial output increased 5.2% in Japan, and India generated better-than-expected quarterly GDP growth of 5.8%. In turn, Asian and Indian markets made gains Friday. European bourses are also putting together impressive advances, currently.
09:00 am : S&P futures vs fair value: +3.50. Nasdaq futures vs fair value: +0.80. European markets are trading with impressive gains. Britain's FTSE is leading the way with a 1.6% gain. Advancing issues outnumber decliners in the FTSE by 2-to1. HSBC (HBC) is currently leading the advance, but BP PLC (BP) is also showing leadership, thanks largely to rising oil prices. In France, the CAC is up 1.2%. Energy giant Total (TOT) is a primary leader, while BNP Paribas is making its fifth advance in six sessions. Societe Generale is also showing strength after confirming a preferential share issuance. Renault and its Japanese affiliate Nissan announced they will strengthen their alliance as a means to cut costs, helping bolster their shares. In Germany, the DAX is up 0.9% with Daimler showing leadership. Deutsche Bank (DB) is also providing support. Markets in Shanghai remain closed for holiday observance, but the MSCI Asia-Pacific Index advanced 1.5% and Japan's Nikkei tacked on 0.8% to reach its highest level in more than seven months. Action in Japan was supported by news that the country's industrial output for April jumped 5.2% from the prior month, exceeding the 3.3% increase that was expected. However, Japan's jobless rate advanced to a 5-year high of 5.0% in April, as expected. Meanwhile, household spending fell by a faster-than-expected 1.3% year-over-year, and total CPI declined by 0.1%, which isn't as steep as the 0.3% decline that was widely expected. Following a holiday yesterday in Hong Kong, the Hang Seng advanced 1.6% to finish at its highest level since October. Energy stocks were propped up by higher oil prices, while several bank stocks were lifted by favorable broker actions. In India, the Sensex jumped 2.3%, assisted by news its economy 5.8% in the first quarter, besting the 5.0% increase that was widely expected. Moreover, new central ministers provided a positive outlook.
08:30 am : S&P futures vs fair value: +5.30. Nasdaq futures vs fair value: +5.50. Stock futures continue pointing to a solid start for the major indices, following the latest batch of economic data. The preliminary first quarter GDP report showed that the U.S. economy contracted at an annualized rate of 5.7% from the prior quarter. That is a bit worse than the 5.5% decline that was expected, but up from the 6.1% decline that had been reported in the advance GDP reading. Meanwhile, first quarter personal consumption was revised from a 2.2% increase to a 1.5% increase; it was expected to show a 2.0% increase. Core personal consumption expenditures increased 1.5%, as expected, and unrevised from the previous report. The first quarter GDP Price Index was revised modestly lower from the previously reported 2.9% increase so that it shows a 2.8% increase. The price index was expected to remain unchanged.
08:00 am : S&P futures vs fair value: +4.80. Nasdaq futures vs fair value: +6.00. Following the prior session's close, Dell (DELL) reported first quarter adjusted earnings of $0.24 per share, which topped the consensus of $0.23 per share. Amid lower revenue, the company noted it has made further progress toward reducing annualized costs. Shares of DELL are trading roughly 1% higher at $11.60 per share in premarket action. Marvell Technology (MRVL) generated adjusted earnings of $0.05 per share for the first quarter, matching analysts' consensus earnings estimate. MRVL is down more than 4% to $11.20 per share ahead of the opening bell. J. Crew (JCG) posted first quarter adjusted earnings of $0.34 per share, which was more than triple the $0.11 per share that was widely expected. The company also indicated that it expects second quarter earnings to range from $0.08 to $0.12 per share, while Wall Street had forecast a loss of $0.02 per share for the quarter. Shares of JCG are up 18% to $24.16 per share in premarket trading. This morning, Tiffany (TIF) announced that it generated first quarter earnings of $0.20 per share, which is in-line with expectations. The company also reaffirmed its 2010 outlook, which calls for earnings to range from $1.50 to $1.60 per share, bracketing the $1.56 per share consensus. Shares of TIF are trading incrementally lower at $28.05 per share ahead of the opening bell. In commodities, crude oil is climbing higher in electronic trading, extending the prior session's advance. Crude was last quoted 1.6% higher at $66.15 per barrel. It is being helped along by a pull back in the U.S. dollar. There isn't any economic data out yet, but preliminary first quarter GDP is due at the bottom of the hour. Economists expect a decline of 5.5%, which would reflect an upward revision from the 6.1% decline reported in the advance GDP report. Overall, a positive tone is being indicated by broader market stock futures.
06:35 am : S&P futures vs fair value: +4.40. Nasdaq futures vs fair value: +5.00.
06:35 am : Nikkei...9522.50...+71.10...+0.80%. Hang Seng...18171.00...+285.70...+1.60%.
06:35 am : FTSE...4445.15...+57.60...+1.30%. DAX...74996.25...+63.10...+1.30%. Go Back To TheStrategyLab.com Homepage