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 Post subject: September 28th Monday 2009 Emini ES ($ES_F) points +11.25
PostPosted: Tue Sep 29, 2009 1:11 am 
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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=314

Quote:
I only traded 5 positions today in which 1 loser, 2 breakevens and 2 winners. The reason for the low number of trades was due to a bad dry cough that's uncontrollable and painful. In fact, it got so bad today for me that I had to go to the clinic to make sure everything was ok. It's late and I'm tired.


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: +11.25 Emini ES ($ES_F) points

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Stocks Bounce Back
Wall Street advances after the previous week's selloff, getting a lift from mergers involving Abbott and Xerox.
By Alexandra Twin, CNNMoney.com senior writer
Last Updated: September 28, 2009: 6:02 PM ET

NEW YORK (CNNMoney.com) -- Stocks surged Monday, recharging their recent advance after a one-week break, as a pair of multi-billion dollar merger announcements gave investors a reason to get back into equities.

The Dow Jones industrial average (INDU) gained 124 points, or 1.3%. The S&P 500 (SPX) index rallied 19 points, or 1.8%. The Nasdaq composite (COMP) rose 40 points, or 1.9%.

Last week, the S&P 500 fell more than 2%, in its biggest one-week selloff in nearly 3 months. The declines occurred as investors mulled weaker-than-expected housing reports and an as-expected Federal Reserve decision to hold interest rates steady.

But over the last 7 months, investors have mostly used the dips as an opportunity to get back into stocks at lower levels, something that happened Monday, too.

"The two big mergers really hammer home the point that the credit market is improving," said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research.

He said merger news and the recent series of initial public offerings that have come to market go a long way to counter worries that the stock advance is out of pace with the still-sluggish economy.

"These are bullish signs," he said.

Since bottoming at a 12-year low March 9, the S&P 500 has gained 57% and the Dow has gained 49.5%, as of Monday's close. After hitting a six-year low, the Nasdaq has gained 68%.

Stock gains were broad-based Monday, with 28 of 30 Dow components rising, led by Boeing (BA, Fortune 500), 3M (MMM, Fortune 500), Caterpillar (CAT, Fortune 500), Chevron (CVX, Fortune 500), Hewlett-Packard (HPQ, Fortune 500), Johnson & Johnson (JNJ, Fortune 500) and Travelers Companies (TRV, Fortune 500).

The only stocks that didn't gain were IBM (IBM, Fortune 500) and Kraft Foods (KFT, Fortune 500).

Tuesday preview: Tuesday brings readings on consumer confidence from the Conference Board and the 20-city home price index from Case-Shiller.

Tuesday is also the one-year anniversary of the Dow's biggest one-day point loss of all time. On that day, the average plummeted 777.68 points, and the broad market knocked out $1.2 trillion in value. The plunge occurred after the House of Representatives rejected the government's then $700 billion bank bailout plan as a number of banks around the globe teetered on the brink of collapse.

Deal news: Abbott Laboratories (ABT, Fortune 500) is buying the drug unit of its development partner, Belgian pharmaceutical company Solvay, for about $6.6 million in cash. Abbot shares rose 2.6%.

Xerox (XRX, Fortune 500) is buying Affiliated Computer Services (ACS, Fortune 500) for $6.4 billion in cash and stock. Shares of Xerox lost 14.5%, while shares of Affiliated, an outsourcing firm, gained 14%.

Private equity firm American Securities said it is buying GenTek (GETI) for $411 million in cash. GenTek makes specialty chemicals and engine parts.

Johnson & Johnson (JNJ, Fortune 500) bought an 18% stake in biotech firm Crucell for $444 million as part of a deal to develop a flu vaccine.

Often, deal news lifts the broad market as it is seen as a sign of corporate confidence.

World markets: Global markets were mixed. In Europe, London's FTSE 100, France's CAC 40 and Germany's DAX all gained. Asian markets ended lower, with the Japanese Nikkei losing 2.5%.

Currency and commodities: The dollar rose versus the euro and fell versus the yen. The greenback has repeatedly hit one-year lows against a basket of currencies over the last few weeks.

U.S. light crude oil for October delivery rose 82 cents to settle at $66.84 a barrel on the New York Mercantile Exchange.

COMEX gold for December delivery rose $2.50 to settle at $994.10 an ounce. Gold closed at a record high of $1,020.20 two weeks ago.

Gas prices dropped below $2.50 a gallon for the first time since late July on rising supplies and diminishing demand.

Bonds: Treasury prices rose, lowering the yield on the benchmark 10-year note to 3.28% from 3.32% late Friday. Treasury prices and yields move in opposite directions.

Trading volume was light because of the Jewish holiday of Yom Kippur.

Market breadth was positive. On the New York Stock Exchange, winners topped losers four to one on volume of 978 million shares. On the Nasdaq, advancers topped decliners three to one on volume of 1.93 billion shares.

Image

Yahoo! Finance

4:25 pm : News of renewed merger and acquisition activity didn't bring many participants to the market, but stocks were still able to sport broad-based gains for the entire session and log their best gain in one month.

Stocks were given support in the early going by news that Xerox (XRX 7.68, -1.29) will pay $6.4 billion in cash and stock for Affiliated Computer Systems (ACS 53.86, +6.61), while Abbott Labs (ABT 48.58, +1.12) will pay $6.6 billion in cash for Solvay's drug business.

Though it was overshadowed by the larger deals, American Securities announced it will acquire GenTek (GETI 37.77, +10.77) for $38.00 per share, which represents a near 40% premium over GETI's closing price last Friday.

The supportive role played by Monday morning's M&A news helped stocks to recover from their worst weekly loss since July.

Several sectors had their moments of leadership, but by the end of the session financials logged the best gains. The sector settled with a gain of little more than 3.4%, which marks the sector's best single-session percentage advance in two months. Multiline insurers (+6.0%) underpinned the financial sector's impressive move.

Consumer staples stocks lagged on a relative basis as Dow component Kraft (KFT 26.17, -0.07) showed moderate weakness. Still, the sector netted a gain of 0.5%.

Though stocks traded with broad-based gains, there wasn't much behind them. Trading volume on the NYSE fell to its lowest level in one month, coming in below 1 billion shares.

Despite broad-based buying among equities, Treasuries were still able to advance. As such, the benchmark 10-year Note gained 11 ticks, which sent its yield down to multimonth lows of 3.28%.

The U.S. dollar also showed strength, which drove the Dollar Index to a 0.2% gain. Despite that move, commodities were still able to garner support and send the CRB Commodity Index up 0.6%.

Advancing Sectors: Financials +3.4%, Materials +2.0%, Consumer Discretionary +2.0%, Technology +1.7%, Energy +1.7%, Industrials +1.6%, Telecom +1.5%, Health Care +1.4%, Utilities +0.9%, Consumer Staples +0.5%
Declining Sectors: (None)DJ30 +124.17 NASDAQ +39.82 NQ100 +1.8% R2K +2.4% SP400 +2.1% SP500 +18.60 NASDAQ Adv/Vol/Dec 1987/1.91 bln/662 NYSE Adv/Vol/Dec 2419/979 mln/607

3:30 pm : Asset prices are posting strong gains across the board. Although financials are posting the strongest gain of any sector, currently up 2.8%, the energy and materials sectors are also sporting healthy gains. They are both up 1.9% with 30 minutes left in the session.

Precious metals prices traded with more modest gains this session. They finished up 0.4%. December silver futures finished 1.1% higher at $16.23 per ounce while December gold futures finished just 0.3% higher at $994.60 per ounce. Despite the relatively tepid move in gold this session, copper and gold miner Freeport-McMoRan (FCX 68.76 +2.07) is trading with an impressive 3.1% gain, reflecting investors' interest in equities.

Crude oil futures also rose. After marking a session high at $67.54 per barrel during the second half of the pit trade, the November crude oil futures closed at $66.89 per barrel, up 1.3%.

Natural gas futures were an exception. The October natural gas futures, which closed at the end of the pit trade this afternoon, closed down 6.5% at $3.72 per contract. The new front-month contract, November, finished 2.4% lower at $4.83 per contract. DJ30 +128.48 NASDAQ +41.02 SP500 +18.33 NASDAQ Adv/Vol/Dec 1998/1.55 bln/651 NYSE Adv/Vol/Dec 2405/670 mln/599

3:00 pm : The stock market has spent the afternoon trading in a narrow range, which has kept the S&P 500 within a four-point span.

Despite the steady gains being sported by stocks, Treasuries are garnering modest support. That has the benchmark 10-year Note up six ticks. In turn, its yield has been reduced to 3.30%.DJ30 +132.49 NASDAQ +41.94 SP500 +18.11 NASDAQ Adv/Vol/Dec 1997/1.42 bln/625 NYSE Adv/Vol/Dec 2402/604 mln/586

2:30 pm : The U.S. dollar has suddenly gained ground and pushed the Dollar Index to a 0.3% gain. The Dollar Index had been trading with a 0.3% loss little more than two hours ago.

The sudden rebound by the greenback hasn't done anything to derail commodities, though. In fact, the CRB Commodity Index continues to sport a 0.5% gain as it trades near session highs.DJ30 +139.29 NASDAQ +42.94 SP500 +18.79 NASDAQ Adv/Vol/Dec 2011/1.33 bln/589 NYSE Adv/Vol/Dec 2414/557 mln/573

2:00 pm : The major equity averages are holding steady to their gains, but this session's trading volume remains light as only a half billion shares have traded hands thus far on the NYSE. Many market pundits often associate lack of trading volume with a lack of conviction.

However, that doesn't mean strong gains can't be made in light volume. So far, trading volume on the NYSE has averaged 1.30 billion shares this month, which is below the 200-day moving average of 1.42 billion shares, but the S&P 500 has managed to muster a month-to-date gain of more than 4%.DJ30 +142.10 NASDAQ +44.14 SP500 +18.79 NASDAQ Adv/Vol/Dec 2015/1.24 bln/574 NYSE Adv/Vol/Dec 2428/511 mln/548

1:30 pm : Materials stocks have eased back a bit, but are still sporting an impressive gain. The sector is currently up 2.0%.

With materials stocks easing their gains, financial stocks and technology stocks have stepped into the winner's circle. Both are up 2.2%, better than any of the other eight major sectors in the S&P 500.DJ30 +147.60 NASDAQ +47.45 SP500 +19.47 NASDAQ Adv/Vol/Dec 2030/1.13 bln/547 NYSE Adv/Vol/Dec 2415/457 mln/547

1:00 pm : A flurry of business deals has helped attract buyers to the stock market so that more than 90% of the S&P 500 components sport a gain and the benchmark stock index is on its way toward its best single-session percentage advance in one month.

Buying has been broad-based for the entire session, but initial support was provided by news that Xerox (XRX 7.36, -1.61) is paying $6.4 billion in cash and stock for Affiliated Computer Systems (ACS 53.00, +5.75) and Abbott Labs (ABT 48.79, +1.46) is paying $6.6 billion in cash for Solvay's pharmaceuticals business.

On a smaller scale, American Securities will acquire GenTek (GETI 37.76, +10.76) for $38.00 per share, while Gander Mountain (GMTN 5.16, +1.34) announced that it will issue a reverse stock split in order to move toward becoming a nonpublic company.

The prospect for further merger and acquisition deals should provide a supportive factor for the broader market.

Though the advance by the broader market remains impressive, the strongest gains are being made by materials stocks. The materials sector is currently up 2.1% amid buying in diversified metals and miners (+3.2%). Additional interest in the materials sector stems from strength in basic materials and commodities, which has helped to give the CRB Commodity Index a 0.4% gain even though the U.S. dollar is flat this session. DJ30 +136.95 NASDAQ +44.21 SP500 +17.52 NASDAQ Adv/Vol/Dec 2015/1.05 bln/551 NYSE Adv/Vol/Dec 2387/419 mln/560

12:30 pm : Of the 10 major sectors in the S&P 500, only the consumer staples sector is trading with a gain of less than 1%. Nonetheless, the sector's 0.8% gain is still impressive.

Whole Foods (WFMI 29.65, +0.88) is a primary leader among consumer staples stocks, but Dow component Kraft (KFT 26.20, -0.04) is a primary laggard in the group. Kraft's weakness comes amid chatter that the company is likely to continue its efforts to purchase Cadbury Schweppes (CBY 51.15, +0.05).DJ30 +145.33 NASDAQ +46.22 SP500 +19.04 NASDAQ Adv/Vol/Dec 2024/967 mln/526 NYSE Adv/Vol/Dec 2395/386 mln/518

12:00 pm : The major indices continue to climb higher and now trade at their best levels of the session. Still, stocks haven't quite made it to last week's highs, which also mark highs for 2009.

The materials sector has made its way to a 2.3% gain so that it now trades with a better gain than any other major sector. The materials sector's advance comes amid a 0.3% gain by the CRB Commodities Index, which is being supported by higher gold prices and higher oil prices -- gold is currently up 0.5% to $995.30 per ounce, while oil prices are up 1.8% to $67.20 per barrel after a sluggish start.DJ30 +138.63 NASDAQ +45.86 SP500 +18.44 NASDAQ Adv/Vol/Dec 1994/879 mln/536 NYSE Adv/Vol/Dec 2379/346 mln/530

11:30 am : Shares of E*Trade (ETFC 1.80, +0.03) are currently the most actively traded shares by volume this session. More than 5 million shares of the stock have already exchanged hands this session.

Despite E*Trade's level of trading volume this session, insurers are providing the most leadership to the financial sector (+1.6%) this session. Insurers, as a group, are up 3.0%.DJ30 +135.13 NASDAQ +44.02 SP500 +17.74 NASDAQ Adv/Vol/Dec 1979/791 mln/538 NYSE Adv/Vol/Dec 2353/306 mln/538

11:00 am : Strong, broad-based buying has more than 90% of the companies listed in the S&P 500 sporting gains. That has helped to start the broad market index on its best single-session percentage advance in more than one week.

Gains are even more impressive in the Nasdaq 100, which is up 1.9% amid strength in large-cap tech.

Meanwhile, small-caps have helped the Russell 2000 make its way to a 2.1% gain. Mid-caps are lifting the S&P 400 to a 1.9% gain.DJ30 +129.01 NASDAQ +40.00 SP500 +15.90 NASDAQ Adv/Vol/Dec 1914/660 mln/560 NYSE Adv/Vol/Dec 2325/252 mln/522

10:30 am : In current trading, the stock market just made fresh highs, while the US Dollar moves back into negative territory.

November crude oil has remained in positive territory for the majority of the last two hours after trading in the red overnight. Crude hit fresh session highs at $66.66 per barrel and is currently trading 0.7% higher at $66.47 per barrel.

October natural gas, which expires at the close of pit trade, traded near the unchanged line in the overnight session, but began to fall sharply 30 minutes before the open of pit trading. Natural gas fell to lows of $3.766 per MMBtu and is currently 5% lower at $3.787 per MMBtu.

After trading higher overnight, the US Dollar Index is back in negative territory for the third time in the last three hours of trading and is currently at its lowest level of the session.

The move in the dollar is giving precious metals a little price support as they are only modestly higher. December gold is trading 0.3% higher at $994.80 per ounce, while December silver is trading 0.9% higher at $16.20 per ounce.DJ30 +113.52 NASDAQ +36.95 SP500 +14.09 NASDAQ Adv/Vol/Dec 1876/496.8 mln/561 NYSE Adv/Vol/Dec 2265/190.0 mln/533

10:00 am : Stocks are taking a breather after making a broad-based jump in the first few minutes of trading. The advance has been particularly kined to tech stocks, which are still sporting some of the best gains of any major sector. The tech sector is now up 1.6%.

Telecom stocks are also up 1.6%, though. The sector's strength comes amid leadership from integrated telcos, which are up 1.7%.

Consumer discretionary stocks and consumer staples stocks are lagging, however. Both sectors are up a strong, but more modest 0.7%.

Advancing Sectors: Tech +1.6%, Telecom +1.6%, Materials +1.6%, Industrials +1.5%, Health Care +1.5%, Financials +1.3%, Energy +1.2%, Utilities +0.8%, Consumer Staples +0.7%, Consumer Discretionary +0.7%
Declining Sectors: (None)DJ30 +116.31 NASDAQ +33.21 SP500 +14.08 NASDAQ Adv/Vol/Dec 1784/330 mln/533 NYSE Adv/Vol/Dec 2254/130 mln/488

09:45 am : Stocks are making a strong start to this week's first session. The initial advance comes amid particular strength in tech stocks (+1.4%), which are benefiting from news that Xerox (XRX 7.74, -1.23) is paying some $6.4 billion in cash and stock for Affiliated Computer Systems (ACS 55.03, +7.78).

The tech sector isn't alone in providing support to the broader market, however. Seven other sectors are sporting gains of at least 1%. DJ30 +83.36 NASDAQ +26.03 SP500 +10.68 NASDAQ Adv/Vol/Dec 1622/203 mln/598 NYSE Adv/Vol/Dec 2137/85 mln/528

09:15 am : S&P futures vs fair value: +6.20. Nasdaq futures vs fair value: +12.00. Coming off of their worst weekly performance since July, the major equity averages look as if they will start this week on a positive note. The bidding comes amid a notable pickup in merger and acquisition activity, which typically plays a supportive role for stocks. Among the M&A headlines, Xerox (XRX) is paying $6.4 billion in cash and stock for Affiliated Computer Systems (ACS), while Abbott Labs (ABT) is paying $6.6 billion in cash for Solvay's pharmaceuticals business. Meanwhile, American Securities will acquire GenTek (GETI) for $38.00 per share, which is a near 41% premium to GETI's closing price last Friday. Gander Mountain (GMTN) announced its intent to issue a reverse stock split as it moves toward becoming a nonpublic company. Outside of the M&A headlines, news flow has been rather slow. There aren't any major economic releases on tap for traders, either.

09:00 am : S&P futures vs fair value: +5.00. Nasdaq futures vs fair value: +11.00. Stock futures continue to sport a healthy lead over fair value, but they have pulled back a few points from their morning highs. Commodities futures contracts are seeing mixed interest, though. As such, oil futures prices are down 0.5% to $65.70 per barrel in the first few moments of pit trade. Gold contract prices are up 0.4% to $994.50 per ounce. The U.S. dollar is flat, according to the Dollar Index.

08:30 am : S&P futures vs fair value: +7.10. Nasdaq futures vs fair value: +13.30. U.S. stock futures continue to trade with moderate strength. Meanwhile, the major European indices are making solid gains. Germany's DAX is leading the way following the reelection of German Chancellor Merkel. The DAX is currently up 1.6% as its advancing issues outnumber its decliners by more than 3-to-1. Utilities E.On AG and RWE are primary leaders in the bunch. In France, the CAC is up 0.7%. GDF Suez and Societe Generale are providing leadership. Meanwhile, Britain's FTSE is up 0.6%. HSBC (HBC) is a primary leader. Fellow banking outfit Standard Chartered is also showing strength, but Lloyds Group (LYG) is trading with weakness. Metals giants Rio Tinto (RTP) and Anglo American (AAUK) are primary laggards, though. In Asia, Japan's Nikkei dropped 2.5% as its declining issues outnumbered its advancers by more than 6-to-1. TDK Corp, Tokyo Electron, Honda Motor (HMC), and Kyocera (KYO) traded as primary laggards. Things weren't much better in Hong Kong, where the Hang Seng shed 2.1%. Financial outfits Industrial & Commercial Bank, HSBC, and China Life weighed the heaviest on trading. Meanwhile, the Shanghai Composite dropped 2.7%

08:00 am : S&P futures vs fair value: +4.50. Nasdaq futures vs fair value: +9.50. Xerox (XRX) announced that it is acquiring Affiliated Computer Services (ACS) for approximately $6.4 billion in cash and stock, but the lack of other major corporate headlines and market-moving economic data has made for a slow-news morning. Still, stock futures are garnering modest support after last week the major indices logged their worst weekly performance in months. Action overseas has been mixed with the major Asian markets showing sizable losses and the European bourses making gains.

06:20 am : S&P futures vs fair value: +2.10. Nasdaq futures vs fair value: +5.30.

06:20 am : Nikkei...10009.52...-256.50...-2.50%. Hang Seng...20588.41...-436.00...-2.10%.

06:20 am : FTSE...5075.09...-7.10...-0.10%. DAX...5625.76...+44.80...+0.80%.

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