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 Post subject: September 1st Tuesday 2009 Emini ES ($ES_F) points +57.00
PostPosted: Tue Sep 01, 2009 3:42 pm 
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Today's trades that were posted in real-time in #FuturesTrades chat room via my IRC user name wrbtrader. 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=61&t=291

I wasn't expecting a high volatility swing day (big turning points in the price action). However, I became suspicious after seeing the 4am est collapse in Europe and U.S. markets long before the 0930am est U.S. market open.

As for my trading, got caught early doing too much analysis instead of trading. Yet, when the market started declining...I was no longer hesitant to trade and caught a few good price moves on some size.

Trading days like today are a rare and reminds me of the high volatility trading days of last fall 2008. It's these types of trading days where we should increase position size along with trying to stay in trades a lot longer when profitable if using a volatility base trading method like my Volatility Trading Report (VTR).

FYI - You can ask me questions here at the forum or you can tweet me on twitter about anything related to today's trading or related to your own trading.

Image@ http://twitter.com/wrbtrader

In addition, posted below are direct links about my trade methodology or trading approach that enables me to identify key trading areas in the price action that represent changes in supply/demand along with being able to exploit the changes in supply/demand.


http://www.thestrategylab.com/WRBAnalysisTutorials.htm

http://www.thestrategylab.com/TradeStrategies.htm

Also, I strongly believe that profitable trading involves more than just trade signals and that's why most traders fail because they put all their interest in trade signals while ignoring the impact of their trading habits/routine or personal lifestyle. If you don't understand this perspective...please ask questions here at the forum for more info or you can tweet me on twitter @wrbtrader.

My Trading Performance: +57.00 Emini ES ($ES_F) points

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Wall Street Stumbles Into September
Stocks plunge on worries that the market gains have raced ahead of any economic recovery. Dow down 185 points; S&P 500, Nasdaq sink 2%.
By Alexandra Twin, CNNMoney.com senior writer
Last Updated: September 1, 2009: 4:11 PM ET

NEW YORK (CNNMoney.com) -- Markets tumbled Tuesday, as investors took a big step back at the start of what is typically a rough month, betting that stocks have risen too far too fast without any underlying support.

"I think we've had a nice run and it's time for a bit of a pullback," said Tom Schrader, managing director at Stifel Nicolaus. "I wouldn't be surprised if we moved back to the 880 level (on the S&P 500) before moving back up."

A drop to the 880 level would constitute a slide of about 12% from the current levels.

Investors nitpicked through the morning's better-than-expected reports on housing and manufacturing but found little reason to jump back into the fray.

According to early tallies, the Dow Jones industrial average (INDU) lost 186 points, or almost 2%. The S&P 500 (SPX) index fell 22 points, or 2.2%. The Nasdaq composite (COMP) fell 40 points, or 2%.

"I think the 'whisper number' for [the manufacturing report] was higher and once people digested that, the market swung in the other direction," said Schrader.

Schrader said that investors were also reacting to the "calendar influence," amid a variety of reports about the tendency for September to be a weak month on Wall Street. September is typically the biggest percentage loser of the month for the Dow, S&P 500 and Nasdaq composite, according to the Stock Trader's Almanac.

"The reports this morning were positive, but investors are basically saying that stocks have had a good run up and now it's time to take some profits," chimed in Phil Orlando, chief equity market strategist at Federated Investors.

Stocks have essentially been on the rise since March, as investors have welcomed extraordinary fiscal and monetary stimulus and signs that corporate profits and the economy have stabilized. The major gauges ended last week at the highest levels in 9 to 10 months. Financial shares took a beating Tuesday after enjoying a nice ride through the late summer, fueled largely by speculation and momentum.

But with the S&P up 52% from the March 9 lows, market participants are now looking for concrete evidence that the economy is recovering. The morning's reports were positive, but perhaps not as positive as the most optimistic forecasts.

Manufacturing: The Institute for Supply Management's manufacturing index for August showed growth in the sector for the first time since January 2008. The index rose to 52.9 from 48.9 previously. Economists surveyed by Briefing.com thought it would rise to 50.5.

Pending home sales rose for the sixth straight month, jumping 3.2% in July, to the highest point in nearly two years, according to a report from the National Association of Realtors released Tuesday morning. The index rose 3.6% in June. Economists surveyed by Briefing.com thought sales would rise 1.5% in July.

Construction spending fell 0.2% in July versus forecasts for an unchanged reading. Spending rose a revised 0.1% in June.

Financials: Many of the summer's big bank sector winners led the declines Tuesday.

Dow component Bank of America (BAC, Fortune 500) slipped 5% in active NYSE trading. BofA was the biggest Dow gainer in the June through August period, rising 56%.

Dow component American Express (AXP, Fortune 500) lost 4% Tuesday. Over the last three months, AmEx has gained 36% and was the second-best Dow performer.

Dow component JPMorgan Chase (JPM, Fortune 500) lost 3% after rising 17% this summer.

Among other movers, Citigroup (C, Fortune 500) lost 6% after rising 34% in the summer. Regional bank Fifth Third Bancorp (FITB, Fortune 500) lost 5% after rising 59% this summer.

The KBW Bank (BKX) index fell 4.6% after rising 20% over the summer.

Oil prices and stocks: U.S. light crude oil for October delivery fell $1.91 to settle at $68.05 a barrel on the New York Mercantile Exchange. Oil prices have been slipping since hitting a ten-month high just below $75 a barrel late last month.

The decline in oil prices dragged on heavily-weighted energy stocks including Dow components Chevron (CVX, Fortune 500) and Exxon Mobil (XOM, Fortune 500).

Auto sales: The government's popular Cash for Clunkers program gave a boost to sales in August, major automakers said. Although a plunge in sales in the last week of the month, following the program's end, suggests the impact will not be far reaching.

In August, Ford Motor (F, Fortune 500) reported that sales jumped 17% versus a year ago, its best monthly gain in 4 years. However, the advance was short of expectations for a rise of 22%, according to analysts surveyed by Edmunds.com.

Toyota, which had the most Clunker sales of any automaker, said August sales rose 6%, its first year-over-year gain in 16 months.

General Motors (GM, Fortune 500) and Chrysler Group both reported year-over-year declines in August on sales that improved from July.

Company news: Online auctioneer eBay (EBAY, Fortune 500) said it will sell a large stake in its Skype Internet phone business to a group of investors for $2.75 billion.

World markets: European markets tumbled, while Asian markets ended higher. On Monday, a selloff in Chinese markets sparked a broader global selloff.

Bonds: Treasury prices rose, lowering the yield on the benchmark 10-year note to 3.37% from 3.40% late Monday. Treasury prices and yields move in opposite directions.

Other markets: COMEX gold for December delivery rose $3.50 to settle at $957 an ounce.

In currency trading, the dollar gained versus the euro and the Japanese yen.

Market breadth was negative. On the New York Stock Exchange, losers beat winners by five to one on volume of 1.45 billion shares. On the Nasdaq, decliners topped advancers by over three to one on volume of 2.75 billion shares.

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Yahoo! Finance

4:35 pm : The belief that stocks are overbought and that they already reflect positive economic data prompted participants to make a concerted and broad-based push against stocks. That made for an ominous start to September as nearly 95% of the companies in the S&P 500 logged losses this session. Such weakness seemed fitting, though, since September has historically been a weak month for stocks.

Buying interest in the early going helped stocks make a solid bounce ahead of the latest batch of economic data, which featured an ISM Manufacturing Index for August that came in 52.9. Not only was that better than the 50.5 that was expected, but it marked the first time the reading topped 50 since January 2008. A near 10% increase to 64.9 in new orders also proved pleasing to prognosticators.

Pending home sales for July climbed 3.2% to top the 1.5% increase that was widely expected and mark the sixth consecutive month-over-month increase for the tally.

The upbeat reports seemed to support news from The Wall Street Journal that said the International Monetary Fund (IMF) expects the global economy to expand by slightly less than 3% in 2010. The IMF had forecast in July that the global economy would grow by 2.5% during 2010.

Construction spending in July slipped 0.2% month-over-month, which was below the consensus call for 0% growth, but the report didn't receive much attention.

Despite the overall quality of the economic releases, participants quickly turned sides and moved to sell stocks following the data's release. The market's inability to hold the initial gains in the wake of the data suggests that sentiment may be shifting to the downside amid intensifying arguments that the good news is already priced into stocks.

Most of this session's weakness centered on the financial sector, which dropped 5.3% as many of the fundamentally weaker financial stocks that have shown the greatest momentum during the past week buckled. As such, AIG (AIG 36.00, -9.33) and ETrade Financial (ETFC 1.50, -0.26) were the primary laggards in the financial sector. Shares of ETFC were actually among the most actively traded names this session.

Overall trading volume in the NYSE eclipsed 1.6 billion in what was the most actively traded session in nearly one month, suggesting there was plenty of conviction behind this session's selling effort.

Weakness among stocks bled into commodities pits for the second straight session. That caused crude oil futures to reverse a 2.0% gain into a 2.7% loss. Oil prices settled at $68.05 per barrel, just above session lows. Meanwhile, the CRB Commodity Index had made its way to a 0.7% gain before dropping to a 1.9% loss. That marked its second worst loss by percent since July.

There weren't many corporate headlines this session, but automakers were out with their latest monthly sales totals. Ford (F 7.24, -0.36) announced that its sales during August were up 17.0% year-over-year, but that was below the 33% increase that analysts had come to expect amid the Cash for Clunkers program. Ford's competitors Honda Motor (HMC 31.20, -0.13) and Toyota (TM 84.61, -0.58) also reported increases for August, but Ford stated that it has gained retail market share in 10 of the last 11 months.

Corporate announcements are likely to be lacking again tomorrow, but participants will get plenty of trading cues with the release of the ADP Employment Change Report at 8:15 AM ET on Wednesday. Revised productivity data for the second quarter is also due tomorrow morning (8:30 AM ET), followed by factory orders data for July (10:00 AM ET). The FOMC also releases the minutes from its latest meeting tomorrow (2:00 PM ET).DJ30 -185.68 NASDAQ -40.17 NQ100 -1.8% R2K -2.5% SP400 -2.2% SP500 -22.58 NASDAQ Adv/Vol/Dec 563/2.76 bln/2139 NYSE Adv/Vol/Dec 512/1.63 bln/2539

3:30 pm : Weakness among stocks bled into commodities pits for the second straight session. That caused both oil prices and natural gas prices to surrender gains and settle with losses.

Specifically, crude oil futures prices had been up 2.0% at their session high, which was reached in midmorning trade, but as stocks rolled over, so did oil prices. Oil prices finished the session with a 2.7% loss at $68.05 per barrel, just above session lows.

Natural gas prices made their way up to $3.02 per contract midmorning, but quickly followed crude oil prices lower. Pit trade closed with natural gas priced at $2.82 per contract, down approximately 5.1%.

Precious metals prices were able to garner support, however. As such, gold contracts closed the session with the yellow metal priced 0.3% higher at $956.50 per ounce. Silver prices settled the session 0.9% higher at $15.06 per ounce.

Despite support from precious metals, this session's broad-based selling effort has taken the CRB Commodity Index down 1.9% in what is likely to become its second worst loss by percent since July. The CRB has already lost 3.4% this week.DJ30 -190.07 NASDAQ -38.69 SP500 -21.88 NASDAQ Adv/Vol/Dec 580/2.29 bln/2116 NYSE Adv/Vol/Dec 530/1.15 bln/2510

3:00 pm : Stocks remain stuck in a narrow range as they drift sideways. Trading volume is elevated, though; with an hour still remaining in this session, more than 1 billion shares have already traded hands on the NYSE.

Market pundits often associate higher trading volume with stronger conviction among market participants.

Financial stocks and tech stocks are among the most actively traded holdings this session. As such, Citigroup (C 4.66, -0.34), Bank of America (BAC 16.71, -0.88), and ETrade Financial (ETFC 1.52, -0.24) currently make up the three most actively traded names in the S&P 500. They are followed by Intel (INTC 19.77, -0.55) and Microsoft (MSFT 24.01, -0.64).DJ30 -171.40 NASDAQ -36.24 SP500 -19.76 NASDAQ Adv/Vol/Dec 576/2.12 bln/2093 NYSE Adv/Vol/Dec 547/1.05 bln/2494

2:30 pm : Of the 30 blue-chip stocks listed in the Dow Jones Industrial Average, only Wal-Mart (WMT 50.98, +0.11) is sporting a gain. Meanwhile, Research In Motion (RIMM 73.99, +0.93) is a primary leader in the Nasdaq; the stock, along with Motorola (MOT 7.06, -0.12), was upgraded by analysts at Credit Suisse. Baker Hughes (BHI 35.53, +1.08) and BJ Services (BJS 16.47, +0.41) are providing leadership to the S&P 500 following their merger announcement yesterday.

Corporate news flow remains slow and is expected to remain so into tomorrow since there are only a handful of earnings reports scheduled for release between now and then. None of the reports are likely to move markets.

However, participants will get plenty of cues from another batch of economic data, which kicks off with the ADP Employment Change Report at 8:15 AM ET on Wednesday. Though the report typically fails to forecast the actual number of monthly job losses in the governments official data, it has proven to be a relatively reliable directional indicator. Revised productivity data for the second quarter is also due tomorrow morning (8:30 AM ET), followed by factory orders data for July (10:00 AM ET). The FOMC also releases the minutes from its latest meeting tomorrow (2:00 PM ET).DJ30 -165.13 NASDAQ -35.23 SP500 -18.87 NASDAQ Adv/Vol/Dec 592/2.02 bln/2071 NYSE Adv/Vol/Dec 555/1.00 bln/2477

2:00 pm : The major indices have entered into a narrow trading range near their session lows. Weakness remains widespread with 95% of the companies in the S&P 500 trading in negative territory.

Weakness among stocks comes even though there are signs that economic conditions continue to improve. In particular, the ISM Manufacturing Index for August came in this morning above 50, which marks the line between expansion and contraction, for the first time this year.

Additionally, The Wall Street Journal recently reported that the International Monetary Fund (IMF) expects the global economy to expand by slightly less than 3% in 2010. The IMF had stated in July that the global economy would grow by 2.5%.DJ30 -154.92 NASDAQ -34.80 SP500 -17.80 NASDAQ Adv/Vol/Dec 562/1.87 bln/2097 NYSE Adv/Vol/Dec 551/927 mln/2471

1:30 pm : Broad-based weakness has taken the S&P 500 below the 1000 mark for the first time since August 20. Losses remain steepest among financial stocks, which are now down 4.0% in their second worst percentage decline in two months.

With stocks looking so weak, investors have rotated into Treasuries. That has the benchmark 10-year Note up 11 ticks, which has pushed its yield below the 3.4% mark for the first time since July. DJ30 -187.35 NASDAQ -41.50 SP500 -21.51 NASDAQ Adv/Vol/Dec 573/1.75 bln/2062 NYSE Adv/Vol/Dec 527/867 mln/2473

1:00 pm : Following a modest bounce in the early going, market participants have soured on stocks and sent the major averages sharply lower. The reversal comes as traders react in a sell-the-news type of manner to a batch of generally better-than-expected economic data, suggesting that many believe the news had already been priced into the market.

All three major indices started the session in negative territory, but they quickly climbed into the green as large-cap tech stocks showed leadership. That proved particularly beneficial to the tech-rich Nasdaq, which was actually up more than 1% within the first hour of trading.

The early advance didn't last long, however. Participants quickly turned against stocks and sent them lower after receiving news that the ISM Manufacturing Index for August came in 52.9, which bested expectations and marked the first time the reading topped the 50 mark this year. News that new orders jumped nearly 10% to 64.9 also lent support to the argument that the manufacturing sector is expanding.

Meanwhile, pending home sales for July climbed 3.2% to top the consensus estimate and mark the sixth consecutive month-over-month increase, which has left the index at its highest point since June 2007.

Construction spending data disappointed, but it was largely overshadowed by the two aforementioned reports. According to July data, construction spending slipped 0.2% month-over-month, which was below the consensus call for 0% growth.

Though the data was generally solid, stocks failed to hold on to their early gains as sellers stepped in with the argument that stocks have gone overbought for too long. The major indices have since fallen under a broad-based selling effort, but financial stocks have felt the brunt of this session's selling efforts as they drop to a 3.5% loss, which is more than any other sector in the S&P 500.

There hasn't been much corporate news this session. However, Ford (F 7.34, -0.26) did step out to report that its sales during August were up 17.0% year-over-year. Analysts, on average, were expecting a 33% increase in light of the Cash for Clunkers program. Still, the company stated that it has gained retail market share in 10 of the last 11 months.DJ30 -162.86 NASDAQ -34.51 SP500 -18.29 NASDAQ Adv/Vol/Dec 593/1.61 bln/2019 NYSE Adv/Vol/Dec 564/807 mln/2423

12:30 pm : Automaker Ford (F 7.20, -0.40) recently reported that sales during August were up 17.0% year-over-year, but that was reportedly below the 33% annual increase that analysts had come to expect in light of the government's Cash for Clunkers program. Though competitors Toyota Motor (TM 84.44, -0.75) and Honda Motor (HMC 31.23, -0.10) also posted sales increases in August, Ford representatives stated that their company has gained retail market share in 10 of the last 11 months.

News of Ford's monthly sales increase hasn't helped it fend off this session's selling effort, though. The stock managed to make its way to a modest gain midmorning, but now trades well into negative ground at a session low. Still, shares of F are up roughly 230% year-to-date.

The broader market is also at session lows with the S&P 500 recently prodding the 1000 mark.DJ30 -177.75 NASDAQ -34.59 SP500 -19.42 NASDAQ Adv/Vol/Dec 545/1.48 bln/2056 NYSE Adv/Vol/Dec 543/744 mln/2424

12:00 pm : The recent slide by stocks has stalled as the S&P 500 comes within close range of the psychologically significant 1000 mark. However, before wrestling with that line, the S&P 500 faces minor technical resistance at the 1001 mark.

Similar to the previous session, weakness among stocks has extended into commodities pits. In turn, oil prices have completely surrendered their gains. Oil prices had been as high as $71.37 per barrel, but they are now at $68.95 per barrel, down 1.4%. Meanwhile, the broader CRB Commodity Index is now down 0.9%.DJ30 -147.82 NASDAQ -32.22 SP500 -18.07 NASDAQ Adv/Vol/Dec 606/1.32 bln/1965 NYSE Adv/Vol/Dec 623/653 mln/2321

11:30 am : Stocks have extended their decline in a sell-the-news type of reaction to a batch of generally better-than-expected economic data, which was released at 10:00 AM ET. The downward move has taken the stock market to levels not since August 20.

Sellers' efforts have been broad-based, but their actions have been most unkind to the financial sector, which is still leading losses, but is now down 2.7%. Nearly every company listed in the S&P 500's financial sector is trading with a loss, but weakness is most intense among multiline insurers (-7.3%) and life and health insurers (-4.2%).DJ30 -144.72 NASDAQ -27.79 SP500 -15.15 NASDAQ Adv/Vol/Dec 740/1.05 bln/1772 NYSE Adv/Vol/Dec 708/521 mln/2178

11:00 am : After jumping out to a solid gain in the first half hour of trading, stocks are now on the retreat. That has the Dow and S&P 500 back in negative territory, while the Nasdaq holds on to a more modest gain than before.

Financials have been a primary source of weakness in the stock market's recent reversal. The sector has lagged all morning, but heightened pressure in the latest selling effort has it trading with a 1.5% loss, which is worse than any other major sector in the S&P 500.DJ30 -11.33 NASDAQ +5.83 SP500 -1.49 NASDAQ Adv/Vol/Dec 1388/804 mln/1060 NYSE Adv/Vol/Dec 1355/387 mln/1478

10:30 am : Overnight, December crude oil traded near the unchanged line, but spiked to morning highs of $71.37 per barrel approximately 30 minutes after the open of pit trading. Currently, crude is trading near highs, up 1.5% at $70.98 per barrel.

After opening in negative territory near morning lows of $2.919 per MMBtu, December natural gas also spiked this morning to early session highs of $3.017 per MMBtu. Currently, natural gas is up 0.8% at $3.002 per MMbtu.

The US Dollar Index is just off session highs and back near the unchanged line, providing some price strength in the precious metals complex.

December gold and December silver hit early morning lows of $947.50 per ounce and $14.655 per ounce. Both metals have since pushed off lows and into positive territory, while gold rose to fresh highs of $958 and is currently just off highs up 0.4% at $956.70 per ounce. Silver is higher by 0.3% at $14.965 per ounce.DJ30 +25.09 NASDAQ +16.92 SP500 +3.85 NASDAQ Adv/Vol/Dec 1684/599.4 mln/702 NYSE Adv/Vol/Dec 1850/285.2 mln/922

10:00 am : Stocks recently extended their morning rebound, but are now chopping along following a flurry of economic reports.

Leading the list of latest data is the August ISM Manufacturing Index, which came in at a better-than-expected 52.9. That was also up from the 48.9 in July.

Meanwhile, construction spending for July decreased 0.2% month-over-month, which is below the flat reading that was expected and below the downwardly revised 0.1% increase that was registered in June.

Pending home sales for July were up 3.2%. They were expected to rise 1.5% after a 3.6% increase in June.

Early movers: Trading up -- RVP +155.2%, NVAX +28.5%, SVA +22.7%, YRCW +12.6%, EDAP +10.9%, PURE +10.8%, IMMU +10.2%, CRMT +9.5%, DY +8.6%, HEB +8.6%, VICL +8.2%, BEXP +7.9%, BCRX +7.5%; Trading down -- CAH -25.7%, CMED -11%, RMBS -9.1%, BEAT -8.5%, GVP -7.8%, AIG -7.3%DJ30 +59.10 NASDAQ +15.95 SP500 +6.39 NASDAQ Adv/Vol/Dec 1638/363 mln/655 NYSE Adv/Vol/Dec 1928/189 mln/766

09:45 am : All three major U.S. indices started the session in negative territory, but they have all managed to make their way upward so that they are now sporting gains.

The Nasdaq is outperforming its counterparts, though. Its relative strength comes from large-cap tech holdings like Google (GOOG 464.10, +2.43) and Apple (AAPL 169.84, +1.63). Shares of Apple recently had their estimates and target raised by analysts at Credit Suisse.

Defensive-oriented stocks are lagging in this morning's early rebound. As such, telecom is down 0.5%, while consumer staples and health care are both down 0.1%.

Financial stocks are also lagging, however. The sector is currently at the unchanged mark after limiting its losses to less than those incurred by the broader market in the previous session.DJ30 +23.28 NASDAQ +8.18 SP500 +2.32 NASDAQ Adv/Vol/Dec 1364/215 mln/816 NYSE Adv/Vol/Dec 1595/126 mln/1037

09:15 am : S&P futures vs fair value: -6.00. Nasdaq futures vs fair value: -6.50. Stocks finished August on a relatively weak note, but the S&P 500 still managed to book a monthly gain of more than 3%. That marked its sixth straight monthly gain, a streak that could come into contest with the arrival of September, which is a month that has historically been unkind to investors. The early tone among participants in this first September session is one of relative weakness, which stems largely from the partiality of participants to pare their positions and take profits after watching the stock market make an impressive run in recent weeks. The reaction of participants to a flurry of economic data at 10:00 AM ET should be a telling sign of whether stocks are overbought or still have more room to run, though. Most attention will be placed on the August ISM Manufacturing Index, followed by July construction spending data and July pending home sales data. Vehicle sales data are also expected to be released today. For now, though, there aren't any corporate news items of consequence and the mood among premarket traders hasn't been helped by the losses seen across Europe.

09:00 am : S&P futures vs fair value: -5.00. Nasdaq futures vs fair value: -5.30. Stock futures continue to point to a lower start for the first session in September, a month that has historically been unkind to investors. Specifically, the S&P 500 has logged negative returns in six of the Septembers since 2000. What's more, many pundits believe that the trends of recent history will hold true since stocks are considered to be due for a pullback after advancing more than 3% in August and more than 14% during the past 10 weeks.

08:35 am : S&P futures vs fair value: -4.50. Nasdaq futures vs fair value: -4.80. U.S. stock futures continue to trade with moderate weakness, but they have managed to lift up from their morning lows. Their initial downturn came as European markets fell under a fit of selling pressure, which has left the continent's primary indices with sizable losses. Declines are steepest in Germany's DAX, which is down 1.4% amid broad-based weakness. Of the 30 components in the German bourse, only BASF, Commerzbank, and Merck KGAA are in positive territory. Commerzbank has benefited from its word that it may return to profitability next year. In France, the CAC is down 0.9%. Its declining issues outnumber its advancers by more than 4-to-1 with financial outfits BNP Paribas and Societe Generale leading this session's list of lossers. Losses are also broad in Britain, where the FTSE is down 1.1% as it makes up for the losses that it avoided in the previous session, during which the FTSE was closed for holiday observance. Banking issues HSBC (HBC) and Barclays (BCS) are primary laggards in the FTSE. With European participants partial to taking profits and paring their positions, the continent's latest batch of data hasn't dissuaded their selling efforts. According to Dow Jones, Euro zone manufacturing slowed more than expected in August as the manufacturing purchasing managers' index hit a 14-month high of 48.2 in August, up from 46.3 in July. It had been expected to come in at 47.9, according to reports. Meanwhile, Guardian Unlimited reported that Britain's manufacturing sector unexpectedly stalled last month with the monthly manufacturing index dipping to 49.7 in August from a downwardly-revised 50.2 in July. An improvement to 51.5 had been expected. Meanwhile, The Wall Street Journal has reported that net consumer lending in the United Kingdom fell in July for the first time since records began in April 1993. Stocks in Asia saw solid interest. Accordingly, Japan's Nikkei drifted 0.4% higher. Advantest and Daikin were primary leaders, though Honda Motor (HMC) also provided strength amid news that its auto sales increased for the second month in a row, while Japan's domestic auto sales, overall, increased for the first time in 13 months during August. In Hong Kong, the Hang Seng added 0.8% as banks like HSBC and Bank of China showed strength. Data also provided support as China's purchasing managers' index for August advanced. Meanwhile, the Shanghai Composite Index climbed 1.1% after tumbling nearly 7% in its previous session.

08:10 am : S&P futures vs fair value: -5.10. Nasdaq futures vs fair value: -7.00. Despite trimming their losses late in the previous session and working to gain upward momentum, stocks have fallen back under the control of sellers as weakness in Europe induces further pressure. Losses among the primary European bourses are considerable as participants continue to pare their positions and Britain's FTSE makes up for the downturn it avoided during its holiday on Monday. Data out of Europe has done little to lift spirits. U.S. participants get a healthy dose of data later this morning with the release of the August ISM Manufacturing Index, July construction spending data, and July pending home sales data at 10:00 AM ET. The data are expected to act as trading catalysts in this morning's absence of meaningful corporate headlines.

06:20 am : S&P futures vs fair value: -7.40. Nasdaq futures vs fair value: -11.50.

06:20 am : Nikkei...10530.06...+37.50...+0.40%. Hang Seng...19872.30...+148.10...+0.80%.

06:20 am : FTSE...4853.85...-55.10...-1.10%. DAX...5381.43...-83.40...-1.50%.

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