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 Post subject: October 29th Thursday 2009 Emini ES ($ES_F) points +9.25
PostPosted: Fri Oct 30, 2009 2:01 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 involving WRB Analysis (wide range body analysis) because its all archived @ http://www.thestrategylab.com/ftchat/forum/viewtopic.php?f=66&t=349

Quote:
Some unexpectant personal problems arised today here at home that caused me to miss most of the uptrend today along with being forced out early in a profitable Long position early in the big up movement.


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 and volatility along with being able to exploit these changes via WRB Analysis (wide range body analysis).


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 efforts in trade signals while ignoring the impact on their trading results via market experience, discipline, money management, team collaboration, proper trading enviornment (home or office), market psychology, trader psychology (trading habits/routine and 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: +9.25 Emini ES ($ES_F) points


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Dow's Best Day in 3 Months
A better-than-expected jump in third-quarter economic growth fired up the bulls, putting the blue-chip indicator and the S&P 500 at 3-month highs.
By Alexandra Twin, CNNMoney.com senior writer
Last Updated: October 29, 2009: 6:06 PM ET

NEW YORK (CNNMoney.com) -- Stocks rallied Thursday in a broad-based advance as a strong report on economic growth in the third quarter reassured investors that the recovery is on track.

The Dow Jones industrial average (INDU) gained just shy of 200 points, or 2%, closing at 9962.58. It was the Dow's biggest one-day percentage gain since July 15, and came exactly 80 years after Wall Street's darkest day, the Crash of 1929.

The S&P 500 (SPX) index added 23 points, or 2.3%, managing its biggest one-day percentage gain since July 23.

The Nasdaq composite (COMP) climbed 38 points, or 1.8%, its biggest one-day percentage gain in about a month.

"The market sold off Wednesday in expectation of a lower number and today it got a positive surprise," said Karl Mills, president and chief investment officer at Jurika Mills & Keifer.

"This shows the economy is continuing to recover and heal," he said. "It's just not clear what that recovery is going to look like."

Gains were broad based, with 29 of 30 Dow issues rising, led by Boeing (BA, Fortune 500), Chevron (CVX, Fortune 500), Caterpillar (CAT, Fortune 500), Hewlett-Packard (HPQ, Fortune 500), IBM (IBM, Fortune 500) JPMorgan Chase (JPM, Fortune 500), 3M (MMM, Fortune 500), Travelers (TRV, Fortune 500), Wal-Mart Stores (WMT, Fortune 500) and Procter & Gamble (PG, Fortune 500), which reported a better-than-expected profit.

The rally in the financial sector boosted the KBW Bank (BKX) index by 4%. Commodity shares spiked, with the Morgan Stanley Commodity (CSX, Fortune 500) index up 5%.

The Dow and S&P ended three of the last four sessions lower, and the Nasdaq declined in all four, as investors turned cautious after a seven-month stock rally. Early enthusiasm about better-than-expected third-quarter profit gave way to questions about the strength of the economy, causing investors to pull back.

The S&P 500 lost 5% between the rally peak on Oct. 19 and Wednesday's close. Both the better-than-expected GDP report and the preceding sharp, short selloff gave stocks a boost Thursday. Since bottoming at a 12-year low on March 9, the S&P 500 has gained 57.6% as of Thursday's close.

Reports on personal income and spending, consumer sentiment and manufacturing are all due Friday morning.

Dow component Chevron (CVX, Fortune 500), Duke Energy (DUK, Fortune 500), Alcatel-Lucent (ALA) and Sony (SNE) are among the corporations reporting quarterly results in the morning.

Economy: GDP grew at a 3.5% annualized rate in the third quarter, the government reported Thursday. That was better than the 3.2% rate economists surveyed by Briefing.com had predicted and also marked the first quarter of growth in a year. GDP fell at a 0.7% rate in the second quarter.

Some organic factors fueled the advance, including a slowdown in the pace of businesses reducing inventories. But other short-term factors played a role too, including the impact of government stimulus programs such as Cash for Clunkers. Yet some economists are concerned that when those short-term factors are removed, any recovery could be pretty flimsy.

"It was a little better than expected, but you have to wonder how much of the growth was pulled from another quarter, with the stimulus driving so much of it," said Drew Kanaly, chairman and CEO at Kanaly Trust.

"As you look to quarters down the road, you have to wonder how sustainable this level of GDP is," he said. "Can the government take away all the stimulus and make that handoff to the private sector?"

A separate government report showed that the number of Americans filing new claims for unemployment fell to 530,000 last week from 531,000 the previous week. Economists thought it would drop to 525,000.

Continuing claims, a measure of Americans receiving benefits for a week or more, fell to 5,797,000 from 5,945,000 the week before. Economists thought claims would fall to 5,905,000.

Results: Exxon Mobil (XOM, Fortune 500) said quarterly earnings plunged 68% in the quarter due to lower oil and natural gas prices. The No. 1 U.S. oil company reported weaker quarterly revenue as well. Both earnings and revenue missed estimates. Shares of the Dow component ended little changed.

Dow component Procter & Gamble (PG, Fortune 500) reported weaker quarterly earnings and revenue that topped estimates. The consumer products maker also boosted the low end of its fiscal 2010 earnings forecast. Shares gained 4%.

With 302 companies, or 60% of the S&P 500 having already reported results, profits are on track to have fallen 17.9% from a year ago, according to the latest results from Thomson Reuters.

Currency and commodities: The dollar fell versus the euro, resuming its slide after a few up days and moving closer to a 14-month low hit last week. The greenback gained versus the yen.

U.S. light crude oil for December delivery rallied $2.44 to settle at $79.87 a barrel on the New York Mercantile Exchange, a gain of 3%.

COMEX gold for December delivery rallied $16.60 to settle at $1,047.10 an ounce. Gold has surpassed records repeatedly this month due to the weak dollar and longer-term worries about inflation.

World markets: Global markets were mixed. In Europe, London's FTSE 100, France's CAC 40 and Germany's DAX all gained over 1%. Asian markets ended lower, with Japan's Nikkei losing 1.8%.

Bonds: Treasury prices tumbled, raising the yield on the 10-year note to 3.49% from 3.41% Wednesday. Treasury prices and yields move in opposite directions.

Market breadth was positive. On the New York Stock Exchange, winners beat losers four to one on volume of 1.45 billion shares. On the Nasdaq, advancers topped decliners nine to four on 2.33 billion shares.

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Yahoo! Finance

4:30 pm : A better-than-expected third quarter GDP reading helped the stock market snap back from its worst loss in weeks, but it wasn't enough to prevent stocks from heading into Friday with a week-to-date loss in excess of 1%.

Despite some wavering in the first few minutes of trade, stocks put together a steady ascent that took all 10 major sectors higher. The broad-based gains stemmed from news that third quarter GDP surged to an annualized growth rate of 3.5%. GDP was expected to increase 3.2% after contracting 0.7% in the second quarter.

The stronger-than-expected growth overshadowed news that initial jobless claims for the week ending Oct. 24 totaled 530,000, which is more than the 525,000 initial claims that were widely expected and still uncomfortably high.

Financial issues garnered the most support of the major sectors. The sector surged 4.3%, which is its best single-session percentage gain in three months. Life and health insurers (+7.6%) and multiline insurers (+6.7%) saw some of the strongest gains following a positive earnings surprise from Lincoln Financial (LNC 25.34, +3.09) and an upgrade of Genworth Financial (GNW 10.18, +1.49).

Materials stocks also fared well. The sector climbed 3.2% as broader market support and commodities and basic materials prices were propped up by a drooping U.S. dollar, which sank 0.6% against a basket of major foreign currencies in its first down session in one week.

Traders pushed oil prices up 3.1% to $79.89 per barrel, which helped the energy sector to a 2.4% gain. Exxon Mobil (XOM 73.96, +0.12) eked out a gain, but was generally a drag on the sector after it missed the consensus earnings estimate.

Fellow Dow component Procter & Gamble (PG 59.54, +2.31) posted a positive earnings surprise, as did its competitor Colgate-Palmolive (CL 78.94, +1.26). Though their results were strong, the consumer staples sector underperformed the broader market.

Telecom lagged for the entire session and even spent the first half trading with a loss as integrated telcos (-0.1%) offset strength in Motorola (MOT 8.74, +0.78), which posted better-than-expected third quarter earnings and issued an upside fourth quarter forecast.

With participants pushing many defensive-oriented issues aside in favor of riskier holdings, Treasuries also came under pressure. That took the benchmark 10-year Note down some 20 ticks, which lifted its yield back toward 3.5%. Treasuries caught additional attention as results from a $31 billion auction of 7-year Treasuries drew a slightly stronger-than-expected bid-to-cover ratio of 2.65.

Advancing Sectors: Financials (+4.3%), Materials (+3.2%), Consumer Discretionary (+2.7%), Energy (+2.4%), Industrials (+2.0%), Tech (+1.9%), Consumer Staples (+1.8%), Health Care (+1.0%), Utilities (+0.9%), Telecom (+0.6%)
Declining Sectors: (None)DJ30 +199.89 NASDAQ +37.94 NQ100 +1.7% R2K +2.5% SP400 +2.2% SP500 +23.48 NASDAQ Adv/Vol/Dec 1877/2.33 bln/788 NYSE Adv/Vol/Dec 2502/1.45 bln/546

3:30 pm : A positive tone among traders and a sharp drop by the U.S. dollar helped send commodity prices considerably higher this session. That resulted in a 2.1% gain for the CRB Commodity Index.

Oil fared particularly well this session. The commodity's price climbed 3.1% to $79.89 per barrel.

Natural gas prices had to fight for a gain, however. Contracts closed pit trade at $5.07 each, up 0.4%, but that was after it encountered selling pressure in the wake of a smaller-than-expected build in weekly inventories.

As for precious metals, gold prices gained 1.6% to settle at $1047.10 per ounce after dropping sharply in the previous session. Silver spiked 2.6% to settle at $16.66 per ounce.DJ30 +188.10 NASDAQ +38.19 SP500 +22.26 NASDAQ Adv/Vol/Dec 2000/1.87 bln/670 NYSE Adv/Vol/Dec 2507/1.02 bln/544

3:00 pm : The major indices have gradually ascended to new session highs. The steady march has taken the stock market high enough to fully erase the previous session's 2% drop.

With stocks looking so strong, Treasuries have fallen out of favor. That has pushed the yield on the benchmark 10-year Note back up toward 3.5%. Treasuries saw some increased action following the results from a $31 billion auction of 7-year Treasuries earlier this afternoon. The auction drew a slightly stronger than expected bid-to-cover ratio of 2.65.DJ30 +194.22 NASDAQ +38.77 SP500 +22.73 NASDAQ Adv/Vol/Dec 1983/1.71 bln/658 NYSE Adv/Vol/Dec 2502/922 mln/535

2:30 pm : Financials are showing the most strength of any major sector in the S&P 500. The sector is currently sporting a 3.5% gain, which is being matched by the Financial Select SPDR (XLF 14.64, +0.49).

Materials stocks continue to fare well, too. The sector is up 3.0%, second only to financials. The materials sector has benefited considerably from the strength of metals and mining players; the SPDR S&P Metals and Mining ETF (XME 44.57, +2.22) is up more than 5%.DJ30 +166.41 NASDAQ +34.57 SP500 +19.92 NASDAQ Adv/Vol/Dec 1930/1.58 bln/681 NYSE Adv/Vol/Dec 2445/848 mln/565

2:00 pm : Small-cap stocks are having an especially strong session. In turn, the Russell 2000 Small-Cap Index is up a heady 2.2%. That's its best single-session percentage advance in one month.

Advancing issues outnumber decliners in the Russell 2000 by approximately 4-to-1. Revlon (REV 7.66, +1.91) is a primary leader in the lot. The personal products maker posted this morning third quarter adjusted earnings of $0.45 per share. The stock isn't widely covered, though, so a general consensus earnings estimate couldn't be surmised.DJ30 +165.43 NASDAQ +34.53 SP500 +19.96 NASDAQ Adv/Vol/Dec 1950/1.48 bln/664 NYSE Adv/Vol/Dec 2468/791 mln/544

1:30 pm : Stocks have steadied their gains so that the S&P 500 has started to move sideways. The S&P 500 is still just a few points off of the previous session's opening levels, so it hasn't quite fully erased Wednesday's loss.

Financials have made their way to a fresh session high, though. The sector is now up 3.2%, more than any other major sector. Financial sector components Citigroup (C 4.28, +0.20) and Bank of America (BAC 15.48, +0.47) are among the most actively traded stocks by volume this session. DJ30 +158.02 NASDAQ +32.60 SP500 +18.86 NASDAQ Adv/Vol/Dec 1929/1.37 bln/658 NYSE Adv/Vol/Dec 2446/725 mln/549

1:00 pm : A better-than-expected third quarter GDP reading has sent stocks sharply higher in broad-based fashion. Still, this session's gains have yet to fully erase the steep losses that were incurred in the previous session.

News that the economy grew at an annualized rate of 3.5% in the third quarter fueled a positive bias among participants and overshadowed news that weekly initial jobless claims continue to come in at uncomfortable levels. Most recently, initial claims hit 530,000, which was a tad higher than the 525,000 initial claims that were widely expected.

With GDP acting as a headliner, earnings announcements have been a bit out of focus. Exxon Mobil (XOM 73.44, -0.40) was one of the more widely-held companies to post its latest results. The integrated energy giant actually missed the consensus earnings estimate, which has put its shares under pressure. However, the broader energy sector has garnered support amid a 3.5% climb by oil prices, which are currently trading at $80.20 per barrel.

The run up in oil prices stems partly from a sharp 0.8% drop by the Dollar Index, which is recoiling after five straight advances.

With commodities and materials looking stronger amid the dollar's decline, the materials sector is up a sharp 3.0%. Barrick Gold (ABX 36.90, +2.32) has garnered particular support, thanks to better-than-expected earnings and a 1.4% increase in gold prices to $1045.20 per ounce.

Financials are also up 3.0%. Insurers have been most helpful to the sector, thanks to broader market support and an upgrade of Genworth Financial (GNW 9.98, +1.29) and a positive earnings surprise from Lincoln Financial (LNC 25.58, +3.33).

Telecom has lagged for the entire session and only recently made its way to a respectable gain. The sector is up 0.2% as weakness in integrated telcos (-0.5%) undermines strength in shares of Motorola (MOT 8.84, +0.88), which are being helped by better-than-expected third quarter earnings and upside fourth quarter forecast.

Utilities and consumer staples, also defensive-oriented sectors, are also lagging on a relative basis. They are up a respective 0.5% and 1.4%. Consumer staples are getting a bit of help from Dow component Procter & Gamble (PG 59.57, +2.34), which posted positive results of its own and is stepping up its hunt for acquisition and divestiture candidates, according to The Wall Street Journal.DJ30 +153.19 NASDAQ +32.60 SP500 +18.50 NASDAQ Adv/Vol/Dec 1978/1.25 bln/602 NYSE Adv/Vol/Dec 2487/665 mln/512

12:30 pm : The major indices have marched to fresh session highs. The ascent has been broad based with nine of the 10 major sectors sporting gains.

Only telecom has failed to participate in this session's rally. The sector is currently down 0.2%. Integrated telecos (-0.3%) are the primary drag on the sector. Their weight has offset strength in shares of Motorola (MOT 8.84, +0.88), which have surged in the wake of the company's better-than-expected third quarter earnings and upside fourth quarter forecast. Fellow communication company Sprint Nextel (S 3.13, -0.11) had started the session in positive territory, but they have since rolled over to trade with a loss -- the company missed the consensus earnings estimate for the third quarter.DJ30 +137.77 NASDAQ +30.91 SP500 +16.82 NASDAQ Adv/Vol/Dec 1957/1.14 bln/596 NYSE Adv/Vol/Dec 2462/606 mln/508

12:00 pm : Almost 85% of the companies listed in the S&P 500 are sporting gains. Primary leaders in the bunch include Genworth Financial (GNW 9.93, +1.24) and Lincoln Financial (LNC 25.43, +3.18). Shares of GNW were upgraded by analysts at Bank of America's Merrill Lynch, while LNC posted better-than-expected earnings for its latest quarter.

Amid this session's marked gains, expected volatility, as measured by the Volatility Index, has dropped sharply. In turn, the VIX, often dubbed the Fear Index, is down 8.5% to 25.5. It had spiked more than 12% during the previous session's steep selloff.DJ30 +113.13 NASDAQ +28.35 SP500 +13.82 NASDAQ Adv/Vol/Dec 1928/1.03 bln/601 NYSE Adv/Vol/Dec 2405/552 mln/553

11:30 am : The Dollar Index is down a sharp 0.6%, which has combined with a positive bias in the broader market to take the CRB Commodity Index to a 1.6% gain.

Among commodities, oil is making considerable gains. Prices for the commodity are up 2.4% to $79.30 per barrel.

The rise in oil prices has helped lift the energy sector to a 1.2% gain. Energy has been undermined by weakness in shares of integrated oil giant Exxon Mobil (XOM 72.56, -1.28), which posted this morning disappointing earnings results. Apache (APA 96.39, +2.54) also posted disappointing earnings, but the company has managed to muster a gain. Meanwhile, better-than-expected earnings from oil services and equipment outfit Pride (PDE 30.88, +0.46) has lifted its stock to a gain, though the shares have come under a sudden bout of selling pressure.DJ30 +108.97 NASDAQ +29.76 SP500 +13.91 NASDAQ Adv/Vol/Dec 1919/869 mln/572 NYSE Adv/Vol/Dec 2355/466 mln/588

11:00 am : Stocks are trading near their session highs with solid, broad-based gains. However, this session's advance has yet to fully offset the steep losses that were registered in the previous session.

Treasury Secretary Geithner stated to the House Financial Services Committee this morning that over the past few decades, there has been significant growth of large, highly leveraged financial firms, which benefited from the perception that the government could not afford to let them fail. During the recent financial crisis the government was forced to step in and stand behind almost all of these firms in order to preserve the stability of the financial system.

However, Geithner said that cannot happen again since no financial system can operate efficiently if financial institutions and investors assume that the government will protect them from the consequences of failure. With that, Geithner stated that the bill before the Committee represents a comprehensive, coordinated answer to the moral hazard problem posed by the largest, most interconnected financial institutions, but it does not provide a government guarantee for troubled financial firms. The bill comes as officials attempt to put in place comprehensive reforms that will fully restore confidence in the financial system.DJ30 +98.92 NASDAQ +29.89 SP500 +13.07 NASDAQ Adv/Vol/Dec 1898/735 mln/545 NYSE Adv/Vol/Dec 2355/401 mln/552

10:35 am : The stock market is trading just under fresh highs in recent activity, while the US Dollar Index remains near session lows.

December crude oil chopped around the unchanged line overnight before spiking over $1 a half of an hour before the open of pit trading. Crude hit highs of $79.25 shortly thereafter and is just off those levels at $79.07, up 2.1%.

December natural gas also traded around the unchanged line overnight before falling to session lows of $4.941 per MMBtu. Natural gas reversed and briefly moved into positive territory and hit morning highs of $5.09 per MMBtu. Ahead of today's inventory data, natural gas was trading 0.3% lower at $5.053 per MMBtu. Following the data, which showed a build of 25 bcf vs. a consensus build of 29 bcf, natural gas initially ticker lower to $5.03, down 0.7%.

The US Dollar Index continued to trade near lows, which has provided price support to precious metals. December gold and December silver have both trended higher this morning and recently hit highs of $1040.40 per ounce and $16.61 per ounce, respectively. Currently, gold is trading 0.8% higher at $1038.50 per ounce, while silver is trading 1.9% higher at $16.55 per ounce. DJ30 +78.14 NASDAQ +25.11 SP500 +11.87 NASDAQ Adv/Vol/Dec 1861/514.3 mln/516 NYSE Adv/Vol/Dec 2263/291.6 mln/572

10:00 am : Stocks are making another upward push, which is taking the major indices to fresh session highs. The advance is being led by both materials stocks and financial stocks. Their sectors are up 2.2% and 2.0%, respectively.

Among players in the materials sector, metals stocks are faring quite well. As such, diversified metals and mining stocks are up 3.7%. Steel stocks (+2.9%) are also doing well, despite a large earnings miss from Olympic Steel (ZEUS 27.14, +1.14). The group is being helped by a 0.5% drop by the Dollar Index, however.

As for financials, the sector is garnering support from health insurers (+3.9%) and multiline insurers (+3.9%).

Advancing Sectors: Materials (+2.2%), Financials (+2.0%), Consumer Discretionary (+1.4%), Tech (+1.2%), Industrials (+1.1%), Energy (+1.1%), Consumer Staples (+1.0%), Utilties (+0.5%), Health Care (+0.2%)
Declining Sectors: Telecom (-0.2%)

Early movers: Trading up -- FIRE +19.3%, CATM +15.6%, AMSC +13.2%, GTI +12.1%, FSYS +11.8%, AIXG +11.6%, AKAM +11.5%, LYG +11.2%, RBS +10.7%, VCI +10.6%, BRKR +10.5%, REV +10.3%, PQ +9.8%, PMI +9.6%, ORLY +9.3%, IRE +9.3%, GNW +8.8%; Trading down -- TSPT -43.5%, FSLR -18%, HLIT -13.3%, ACTS -11.4%, LIWA -11.3%, CYTK -9.8%, BBW -8.8%DJ30 +66.88 NASDAQ +18.47 SP500 +10.12 NASDAQ Adv/Vol/Dec 1751/338 mln/568 NYSE Adv/Vol/Dec 2187/208 mln/606

09:45 am : Stocks started the session by making strong gains in broad-based fashion, which had helped the S&P 500 move back above the 50-day moving average of 1050 that it penetrated in the previous session. However, stocks are now slipping, sending the S&P 500 back below the technical hurdle.

Still, this morning's advance have been particularly kind to the materials sector, which was among the worst performers in the previous session. Following its 3.2% drop on Wednesday, materials stocks are up 1.7%.

Telecom stocks made up the strongest performing sector in the previous session, but they are lagging this time around. Telecom climbed 1.8% Wednesday, but is currently down 0.5% this morning.DJ30 +54.56 NASDAQ +14.74 SP500 +7.22 NASDAQ Adv/Vol/Dec 1694/182 mln/540 NYSE Adv/Vol/Dec 2146/125 mln/553

09:15 am : S&P futures vs fair value: +8.30. Nasdaq futures vs fair value: +15.50. Stock futures suggest that the major indices will rebound solidly from a sharply lower Wednesday session. The premarket buying interest stems from a better-than-expected advance GDP reading, which indicated that economic output increased by an annualized rate of 3.5% in the third quarter. That has overshadowed news that weekly initial jobless claims continue to come in above the 500,000 mark. Earnings announcements have also taken a back seat this morning, though Dow components like Procter & Gamble (PG) and Exxon Mobil (XOM) were part of the lot. While P&G beat and Exxon Mobil missed, larger-scale results continue to exceed expectations. This morning's buying interest is also benefiting from a weaker U.S. dollar, which is currently down a considerable 0.4% against a basket of major foreign currencies. Its weakness this morning follows five straight sessions of gains.

09:00 am : S&P futures vs fair value: +10.30. Nasdaq futures vs fair value: +19.00. Following stronger-than-expected U.S. GDP data, European markets have turned modest losses into modest gains. In turn, Britain's FTSE is now up 0.4%. Banks and miners are offsetting weakness in energy stocks. Lloyds Banking Group (LYG) confirmed it is considering raising capital in a rights issue and debt swap as an alternative to a government scheme. Royal Dutch Shell (RDS.A) is off after reporting that its third quarter net profit plummeted 73%. In Germany, the DAX is up 0.8%. Banking issues are up after Deutsche Bank (DB) posted a profit that more than tripled in the third quarter. In economic news, German unemployment unexpectedly dropped in October In France, the CAC is up 0.9%. Financials are in favor as BNP Paribas, Societe Generale, and Credit Agricole advance. Meanwhile, Asian markets turned sharply lower in the wake of considerable losses by U.S. markets during Wednesday trade. The weakness came even though the IMF increased its economic growth forecast for the Asian economies. Losses were broad as the MSCI Asia Pacific Index fell 1.3% and Japan's Nikkei dropped 1.8% to a three-week closing low. Exporters were weighed down by broader market weakness and a stronger yen. However, Japan Airlines climbed amid news that the transport minister will brief plans to revive the carrier. In Hong Kong, the Hang Seng dropped 2.3%. Mainland banks were hit with worries about a possible interest rate hike by the mainland. Energy stocks fell following an earnings report from PetroChina (PTR). The oil producer posted a 23.5% decline in quarterly net profit as a steep slide in crude oil prices hurt earnings. In mainland China, the Shanghai Composite fell 2.3%. Bank stocks were a heavy weight on trade.

08:35 am : S&P futures vs fair value: +7.90. Nasdaq futures vs fair value: +11.50. Stock futures have spiked so that a much stronger start to the session appears to be in order. The improved tone comes in the wake of the latest dose of data. According to the advance third quarter GDP report, economic output increased at an annualized quarter-over-quarter rate of 3.5%, which is better than the 3.2% increase that was expected. The third quarter reading also marks a sharp upturn from the 0.7% decline that was registered in the second quarter. Personal consumption during the third quarter was considerably strong. It came in with a 3.4% increase, which is better than the 3.1% increase that was widely expected and up from the 0.9% decline that was posted in the second quarter. Separately, initial jobless claims for the week ending October 24 came in at 530,000, which is a bit more than the 525,000 initial claims that economists had come to expect. The latest tally was essentially in-line with the previous week's tally of 531,000. Meanwhile, continuing claims fell to 5.797 million from 5.945 million.

08:00 am : S&P futures vs fair value: +2.40. Nasdaq futures vs fair value: +2.30. Stock futures are garnering moderate support ahead of a double shot of data, which is due at the bottom of the hour when the advance third quarter GDP reading and weekly jobless claims data hit news wires. Both items are market movers. For now, though, participants are assessing another batch of quarterly earnings reports. General results continue to exceed expectations with Procter & Gamble (PG), Colgate-Palmolive (CL), and Aflac (AFL) among the more widely held companies to post positive surprises. Their shares are trading in mixed fashion ahead of the opening bell, however. The U.S. dollar has turned lower after advancing for five straight sessions against a basket of foreign currencies, while European stocks are showing moderate losses following considerable downturns in Asia. Weakness in Asia seemed to ignore an increased growth forecast for the continent from the IMF.

06:27 am : S&P futures vs fair value: +3.80. Nasdaq futures vs fair value: +4.50.

06:27 am : Nikkei...9891.10...-184.00...-1.80%. Hang Seng...21264.99...-496.60...-2.30%.

06:27 am : FTSE...5076.91...-3.50...-0.10%. DAX...5496.10...-0.30...0.00.

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M.A. Perry - Founder of WRB Analysis (wide range body analysis)


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