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 Post subject: May 22nd Friday 2009
PostPosted: Fri May 22, 2009 7:48 pm 
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Key WRB Price Action

2min Regular Session Chart - The 1044am est interval was the key change in supply/demand and it provided support for four bullish price action reversals @ 1158am, 1240pm, 1344pm and 1534pm est.

All reached at least a WRB pt1 target level with the 1534pm est bounce producing the smallest profit level just prior to the parabolic price drop down to a prior key price area.

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.

Today'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 @

My Trading Performance: +12.00 Emini ES points


Stocks Fizzle Ahead Of Holiday
Wall Street gives back earlier gains to end a quiet session lower. Bonds and dollar fall.
By Ben Rooney, staff writer
Last Updated: May 22, 2009: 6:22 PM ET

NEW YORK ( -- Stocks slumped at the close of Friday's session, ending the week little changed, as investors went into a holiday weekend with lingering concerns about the economy.

The Dow Jones industrial average (INDU) lost 15 points, or 0.18%, to close at 8277.3. It was the Dow's fourth straight loss, but it still managed to end the week with a slight gain.

The S&P 500 (SPX) index slipped 0.15% to 887 but was up 0.5% for the week. The Nasdaq composite (COMP) slid about 0.2%.

Stocks seesawed in early trading before heading higher in the afternoon as concerns about the U.S. credit rating abated. But the market soldoff near the closing bell.

Analysts said the market lacked conviction Friday because many investors were absent ahead of the Memorial Day holiday. U.S. markets will be closed Monday for the observance.

Meanwhile, the dollar fell to its lowest level in five months against a basket of currencies. Bonds slumped, with the yield on the 10-year note climbing to a 6-month high.

Energy stocks showed early strength as oil prices remained solidly above $60 a barrel.

Shares of financial services companies were under pressure after BankUnited FSB went under Thursday, becoming the largest bank failure of the year.

Looking ahead, the sense of economic optimism that lifted the market some 30% over the past few months will be put to the test next week by a number of key indicators.

"The market has been the beneficiary of less bad news in terms of macro economic data and better-than-expected corporate earnings," said Quincy Krosby, chief investment strategist at the Hartford. "In the next phase, investors will have to see a continuation of less bad news evolving into positive data."

A key home price index, durable goods orders and a revision of first-quarter gross domestic product are all on tap for next week.

Additionally, the fate of troubled automaker General Motors will be in focus. GM bondholders face a Tuesday deadline to make concessions under the troubled automaker's restructuring plans. The company could face bankruptcy if it fails to make the turnaround required by the government by the end of the month.

Companies: Sears Holdings (SHLD, Fortune 500) parent company of retailers Sears and Kmart,reported earnings Thursday that beat analysts' expectations and amended its credit facility to provide additional funding. Shares rose 11% Friday.

Gap (GAP, Fortune 500)said Friday it earned 31 cents per share in the first quarter, down from 34 cents a year earlier, but slightly better than the 30-cent profit analysts had expected. Shares rose nearly 3%.

Another apparel retailer, Aeropostale (ARO), reported better-than-expected first-quarter results and issued an upbeat profit forecast. The stock gained about 4%.

Autos: The U.S. government said Thursday it invested $7.5 billion in GMAC, the main source of financing for General Motors (GM, Fortune 500) customers, and the main lender for Chrysler.

Bonds: Treasury prices fell, raising the yield on the benchmark 10-year note to 3.46% from 3.36% Thursday. Treasury prices and yields move in opposite directions. The 10-year yield has not been this high since late December.

The bond market closed at 2 p.m. ET Friday.

Other markets: Stocks in Asia finished the session in negative territory, dragged lower by economic worries. Major markets in Europe closed higher.

In currency trading, the dollar continued to fall against major international currencies. The euro rose 0.95% against the buck to $1.4022.

Oil for July delivery rose 62 cents to settle at $61.67 a barrel.

COMEX gold for June delivery rose $7.70 to settle at $958.90 an ounce.


Yahoo! Finance

4:15 pm : The major indices spent the majority of a quiet, low volume session trading in positive territory, but some late selling pressure led stocks to close with a modest loss. Still, stocks were able to log a weekly gain (+0.5%). Stocks have advanced in nine of the last 11 weeks.

Action was largely listless for the entire session. Financial stocks, which have proven integral to the market's advances in recent weeks, actually lagged the broader market and finished 1.2% lower, worse than any other major sector.

Banks were the primary drag on the financial sector. Diversified banks slid 2.6% and regional banks slipped 1.8%. Analysts at Deutsche Bank stated that they believe many bank stocks are expensive by valuation, given the dilutive impact of recent stock offerings.

Though banks have been looking to raise capital in the wake of the government's bank stress tests, an official from the FDIC indicated that additional assessments on banks are probable, according to Dow Jones. Meanwhile, Reuters reported that the FDIC expects losses in its deposit insurance fund to total $70 billion during the next five years.

Despite a slow start, materials stocks were able to garner support and trade with strength for most of the session. The sector was able to hold on to a 0.2% gain in the face of late selling pressure, thanks partly to an uptick in commodities prices.

The CRB Commodity Index advanced 0.7% for the session and 3.3% for the week as the Dollar Index extended its slide to fresh lows for 2009.

Treasuries were also forced to grapple with continued selling pressure. The benchmark 10-year Note fell 22 ticks, pushing its yield to a 2009 high of 3.45%. Treasuries are being pulled lower by the Treasury's efforts to add supply, even though the Fed is buying Treasuries to help prop up longer end prices in order to keep lending rates from escalating.

There wasn't any economic data released today, and only a handful of corporate headlines. Both Sears Holdings (SHLD 58.40, +5.21) and Gap (GPS 16.39, +0.41) posted better-than-expected earnings, which helped retailers outperform the broader market for most of the session. They finished with a 0.1% gain.

Automakers tumbled 2.9% amid reports that bondholders refused to take an equity stake in General Motors (GM 1.43, -0.49). Separate reports indicate that the company has reached much needed concessions with the United Auto Workers union, and that the company is not going to be pushed into bankruptcy next week.

Overall, advancing issues and decliners were evenly balanced, while trading volume was exceptionally low, suggesting there wasn't much conviction in the market's moves.

Little more than 1 billion shares traded hands on the New York Stock Exchange as participants entered vacation mode ahead of Memorial Day (stock and bond markets will be closed Monday, May 25 for holiday observance). Trading volume during the past 20 sessions has averaged more than 1.5 billion shares.DJ30 -14.81 NASDAQ -3.24 NQ100 -0.3% R2K -0.8% SP400 -0.5% SP500 -1.33 NASDAQ Adv/Vol/Dec 1185/1.60 bln/1458 NYSE Adv/Vol/Dec 1524/1.06 bln/1458

3:30 pm : After reaching fresh session highs, stocks are on the downturn. Gains remain broad-based, though.

Commodities logged a solid session of their own, bolstered by a weaker dollar.

Gold prices climbed 0.8% to settle trading at $958.90 per ounce. Silver made a more impressive 1.7% advance to close at $14.70 per ounce.

Energy commodities were a bit mixed, however. Crude oil prices advanced 0.8% to settle pit trading at $61.63 per barrel, but natural gas contract prices slipped 2.5% to close at $3.51 each.DJ30 +24.70 NASDAQ +7.24 SP500 +3.10 NASDAQ Adv/Vol/Dec 1437/1.34 bln/1216 NYSE Adv/Vol/Dec 1706/786 mln/1267

3:00 pm : Stocks are testing their session highs as participants enter the final hour of action.

Trading volume remains exceptionally low ahead of the long weekend; less than 800,000 shares have yet to be exchanged on NYSE's big board. During the course of the last 20 sessions, trading volume on the NYSE has averaged more than 1.5 billion shares.DJ30 +60.62 NASDAQ +13.92 SP500 +5.77 NASDAQ Adv/Vol/Dec 1503/1.22 bln/1119 NYSE Adv/Vol/Dec 1857/715 mln/1112

2:30 pm : Financial stocks (-0.4%) remain the only major sector in the S&P 500 to trade with a loss. Regional banks (-1.4%), diversified banks (-1.7%), and diversified financial services companies (-1.6%) are creating a considerable drag on the sector.

According to Dow Jones, an official from the FDIC indicated that additional assessments on banks are probable. Meanwhile, other reports indicate that the FDIC is seeking a one-time five basis point assessment on banks' total assets. Reuters reported that the FDIC expects $70 billion in losses to the FDIC's deposit insurance fund over the next five years. DJ30 +51.86 NASDAQ +10.15 SP500 +4.85 NASDAQ Adv/Vol/Dec 1448/1.14 bln/1168 NYSE Adv/Vol/Dec 1736/671 mln/1209

2:00 pm : The broader market continues to chop along in positive territory. However, selling pressure has intensified against General Motors (GM 1.46, -0.46) after CNBC reported that GM's bondholders have rejected the company's offer for a 10% equity stake. The stock is now at a session low, but it is still up 45% week-to-date.

Earlier reports indicated that GM has reached certain agreements with union representatives that are expected to be revealed in detail next week. DJ30 +52.73 NASDAQ +7.83 SP500 +4.91 NASDAQ Adv/Vol/Dec 1416/1.06 bln/1186 NYSE Adv/Vol/Dec 1735/623 mln/1196

1:30 pm : The major indices are back near their session highs after chopping lower in early afternoon trade. Though gains are rather modest, stocks are up more than 1% from their session low. Week-to-date, the stock market has gained 1.2%.DJ30 +54.40 NASDAQ +10.04 SP500 +5.60 NASDAQ Adv/Vol/Dec 1443/977 mln/1136 NYSE Adv/Vol/Dec 1777/571 mln/1154

1:00 pm : Stocks overcame a bit of a sloppy start to make decent gains in midmorning and early afternoon trading, but action remains choppy amid a lack of news flow.

There haven't been any economic announcements and corporate headlines are lacking this session, leaving stocks to take their own cues. However, it has been difficult for the market to trade in concerted fashion with many participants taking an early leave to enjoy an extended weekend (stock and bond markets are closed Monday for Memorial Day). That has also led to low trading volume and an apparent lack of conviction in the broader market.

While action is generally listless among equities, currency traders continue to focus their efforts against the U.S. dollar. In turn, the greenback is down 0.7% against a basket of major foreign currencies.

With the dollar down, precious metals are advancing to give the CRB Commodity Index a 0.4% lift. However, the advance in commodity prices isn't really helping the materials sector that much. Materials stocks are up just 0.1%, trailing the broader market.

Financial stocks are currently primary laggards. The sector is down 0.3% amid weakness in bank stocks.

Retailers (+1.2%) are outperforming the major equity averages, though. Shares of Sears Holdings (SHLD 58.09, +7.90) are soaring after the company posted a surprise profit. Gap (GPS 16.39, +0.41) is making strong gains of its own after posting better-than-expected earnings, too.DJ30 +56.40 NASDAQ +10.53 SP500 +4.57 NASDAQ Adv/Vol/Dec 1419/903 mln/1136 NYSE Adv/Vol/Dec 1775/529 mln/1141

12:30 pm : Stocks are paring some of their gains in what has become listless action. While the three headline indices are still in positive ground, the Nasdaq 100, S&P 400, and Russell 2000 have eased into negative territory to trade with fractional losses.

Treasuries are under relatively strong selling pressure for the second straight session. The benchmark 10-year Note is down 19 ticks, which has lifted its yield to a 2009 high of 3.44%.DJ30 +36.72 NASDAQ +3.42 SP500 +2.70 NASDAQ Adv/Vol/Dec 1349/829 mln/1179 NYSE Adv/Vol/Dec 1658/484 mln/1237

11:55 am : The major indices trade with modest gains. The healthcare sector (+0.7%) climbs to session highs as the U.S. government directs $1 billion for a vaccine against the new swine flu, according to Reuters.

Retailers (+0.7%) are slightly outperforming the broader market. Sears Holdings (SHLD 58.30, +8.11) and Gap (GPS 16.42, +0.44) are gaining after both companies reported better-than-expected earnings.DJ30 +42.30 NASDAQ +5.83 SP500 +3.58 NASDAQ Adv/Vol/Dec 1432/722 mln/1079 NYSE Adv/Vol/Dec 1676/428 mln/1198

11:30 am : The Fed announced today that bank holding companies will be allowed to include senior perpetual preferred stock issued to the Treasury under TARP in banks' Tier 1 capital calculations, without restriction. However, bank stocks haven't shown much reaction to the announcement. In fact, the KBW Banking Index is still lagging the major headline indices as it trades with a 0.8% loss.

Banks aren't the only relatively weak issues in the financial sector, though. Consumer finance companies are down 2.0%, multiline insurers are down 1.0%, and diversified financial services companies are down 0.8%.

Specialized finance is showing strength, however. The group is up 3.2% amid continued strength in CME Group (CME 292.50, +12.41).

The overall financial sector is down 0.2%.DJ30 +60.94 NASDAQ +9.29 SP500 +5.28 NASDAQ Adv/Vol/Dec 1497/636 mln/978 NYSE Adv/Vol/Dec 1805/381 mln/1041

11:00 am : Stocks are putting together solid gains following a recovery into positive territory. The upward move has taken nine of the 10 major sectors into the green; telecom (-0.2%) is the only major sector still in negative ground.

Energy stocks are sporting the best gains of any major sector as they climb to a 1.6% gain. Gains in the energy sector are broad as 38 of the 39 energy stocks listed in the S&P 500 trade higher. Exxon Mobil (XOM 69.41, +1.02) is rebounding from sizable losses in the prior two sessions to trade as a primary leader in the group. Shares of XOM are up just 0.4% week-to-date.DJ30 +52.89 NASDAQ +6.81 SP500 +5.26 NASDAQ Adv/Vol/Dec 1492/542 mln/925 NYSE Adv/Vol/Dec 1826/331 mln/982

10:30 am : Stocks have recovered to positive ground, but the U.S. dollar continues to trade with considerable weakness, which has taken the Dollar Index (-0.6%) to 2009 lows. With the dollar down, commodities are garnering support. As such, the CRB Commodity Index is up a healthy 0.4%, which extends its week-to-date gain to 3.0%.

While the CRB is up, crude oil prices have been looking for direction this morning. Oil currently trades with a modest 0.1% loss at $61.00 per barrel. Meanwhile, natural gas prices are down 2.2% to $3.52 per contract.

Precious metals are showing a luster, though. Gold was last quoted 0.9% higher at $959.90 per ounce, while silver was quoted 2.0% higher at $14.75 per ounce.DJ30 +18.56 NASDAQ +3.10 SP500 +2.55 NASDAQ Adv/Vol/Dec 1365/415 mln/983 NYSE Adv/Vol/Dec 1664/263 mln/1087

10:00 am : Stocks are making an upward turn, paring what were relatively shallow, but broad-based losses. Still, roughly 60% of the companies in the S&P 500 are trading with losses.

The recent upturn has been particularly beneficial to the materials sector, though. Materials stocks have recovered back to the unchanged mark after trading with a loss of nearly 1%.

Early movers: Trading up -- ARUN +22.8%, XIN +19%, SHLD +17.8%, BBOX +16.4%, CGRB +15.7%, SB +13.3%, ADSK +11%, GM +10.9%, SKIL +9.7%, AIB +9.3%, EXM +8.1%, SAY +7.8%, OGXI +7.2% Trading down -- ATAX -14.9%, RRGB -12.5%, LDK -10.9%, ZUMZ -10.7%, CRM -9%, PURE -7%DJ30 -12.42 NASDAQ -4.39 SP500 -2.42 NASDAQ Adv/Vol/Dec 1193/238 mln/1015 NYSE Adv/Vol/Dec 1363/164 mln/1298

09:50 am : Despite a rather positive tone to premarket trading, stocks have come under pressure in the first few minutes of the session. Telecom (-1.1%) and tech (-1.0%) are showing the most weakness.

Only utilities (+0.2%), consumer staples (+0.1%), and energy stocks (+0.3%) are sporting gains. Energy's advance comes in the face of lower crude oil prices, which were recently quoted 0.6% lower at $60.70 per barrel. Oil prices had been trading with solid gains ahead of pit trading.DJ30 -23.17 NASDAQ -5.84 SP500 -3.91 NASDAQ Adv/Vol/Dec 1123/154 mln/987 NYSE Adv/Vol/Dec 1236/118 mln/1407

09:15 am : S&P futures vs fair value: +2.20. Nasdaq futures vs fair value: +2.80. Overall news flow is slow ahead of the long weekend (stock and bond markets are closed Monday for Memorial Day observance), but stock futures point to a modestly upward start for the major indices. Though stock futures have pulled back from their morning highs, an upturn in the major indices would mark an extension of the bounce that pared losses late in the prior session. While stocks look to be set for some initial gains, the U.S. dollar is back on the defensive as the Dollar Index slides to its lowest level since December 2008. However, weakness in the dollar bodes well for commodities, which have been garnering considerable support in recent weeks as investors wager that a recovery in commodity demand will accompany an economic recovery in the second half of the year.

09:00 am : S&P futures vs fair value: +5.50. Nasdaq futures vs fair value: +6.30. Stock futures continue to point to a modestly higher start for the major equity averages. However, the U.S. dollar remains under pressure as the Dollar Index slides 0.7% to a fresh low for 2009. The downward move in the dollar is supporting higher commodity prices ahead of pit trading. In particular, crude oil prices are being quoted 1.2% higher at $61.80 per barrel.

08:30 am : S&P futures vs fair value: +7.90. Nasdaq futures vs fair value: +9.00.

Stocks in Europe are rebounding after the prior session's slump. Britain's FTSE is currently up 0.6% as metals and mining outfits make headway. BHP Billiton (BHP) and Rio Tinto (RTP) are primary leaders. Shares of RTP were actually upgraded by analysts at Goldman Sachs, according to Dow Jones. Dow Jones also reported that analysts at Goldman upgraded shares of Anglo American (AAUK). However, analysts at Credit Suisse downgraded AAUK. Meanwhile, banking giant HSBC (HBC) has acquired nearly 89% of Indonesia's PT Bank Ekonomi Raharja for $607.5 million cash. In France, BNP Paribas is helping drive the CAC to a 1.0% gain. BNP Paribas traded with weakness in each of the past two sessions, which followed a four-session streak of gains. In Germany, the DAX is up 1.0% amid strength in engineering giant Siemens (SI) and automaker Volkswagen. Despite Volkswagen's strength, Daimler (DAI) is trading as a primary laggard. Automakers in Japan's Nikkei were also mixed. Honda Motor (HMC) was a primary leader, but Toyota Motor (TM) was among the Nikkei's primary laggards. According to CNBC, Bank of Japan indicated that the worst of the global crisis may be over for the Japanese economy, which shrank at a record pace in the first quarter. The central bank also voted unanimously to keep its overnight call rate unchanged at 0.10%. The Nikkei finished its final trading session of the week with a 0.4% loss. In Hong Kong, the Hang Seng slipped 0.8% amid weakness in banking issues HSBC and China Construction Bank. CNOOC was also a laggard.

08:00 am : S&P futures vs fair value: +5.00. Nasdaq futures vs fair value: +6.30. Stock futures point to a modestly higher start for what is expected to be a slow session ahead of the long Memorial Day weekend. General Motors (GM) has reached an accord with the United Auto Workers Union to reduce retiree health-care obligations and labor costs, according to The Wall Street Journal. Details of the agreement have yet to be disclosed. Meanwhile, Reuters reported that the Treasury has no plans to push GM into a bankruptcy filing next week; the outcome of GM's restructuring efforts may not be known until a government imposed June 1 deadline. Retailers Gap (GPS) and Sears Holding (SHLD) both reported better-than-expected earnings following the prior session's close. Gap brought in $0.31 per share, topping the consensus forecast of $0.30 per share, while Sears brought in an adjusted $0.38 per share, topping the loss of $0.88 per share that was widely expected.

06:33 am : S&P futures vs fair value: +8.20. Nasdaq futures vs fair value: +11.80.

06:33 am : Nikkei...9225.81...-38.30...-0.40%. Hang Seng...17062.52...-137.00...-0.80%.

06:33 am : FTSE...4377.05...+31.60...+0.70%. DAX...4949.88...+49.10...+1.00%.

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