TheStrategyLab.com Price Action Trading Support Forum

Forum for price action traders that want to learn WRB Analysis basic tutorial chapters 1, 2 and 3 prior to purchasing our advance trade methods. Hashtags: #wrbanalysis #wrbzone #wrbhiddengap #priceaction #trading
It is currently Thu Mar 28, 2024 5:24 pm

All times are UTC - 5 hours [ DST ]




Post new topic Reply to topic  [ 1 post ] 
Author Message
 Post subject: December 3rd Wednesday 2009 Emini ES ($ES_F) points +32.00
PostPosted: Thu Dec 03, 2009 11:53 pm 
Offline
Site Admin

Joined: Sat Jan 10, 2009 2:06 pm
Posts: 4335
Location: Canada
Image

Written By M.A. Perry
Trader and Founder of WRB Analysis (wide range body analysis)

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=68&t=390

Quote:
Today my patience was under control in comparison to yesterday that resulted in being too stressed on many trades. There were several key changes in supply/demand and I've posted a chart @ http://chart.ly/a8wnyx to show two particular WRB S/R Zones.


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: +32.00 Emini ES ($ES_F) points

Attachment:
120309wrbtraderPnLBlotterProfit.png
120309wrbtraderPnLBlotterProfit.png [ 32.64 KiB | Viewed 1524 times ]

------------------------------

Stocks Falter Ahead Of Jobs Report
Wall Street seeks staggers after weekly jobless claims slip ahead of Friday's monthly report. BofA plans to give back $45 billion in federal bailout funds.
By Alexandra Twin, CNNMoney.com senior writer
Last Updated: December 3, 2009: 6:35 PM ET

NEW YORK (CNNMoney.com) -- Stocks zigzagged Thursday in cautious trading ahead of Friday's big jobs report as investors considered the day's economic news, Bank of America's plan to pay back the government $45 billion in aid and the latest from Washington.

Investors were also keeping an eye on the dollar, which fluctuated versus other major currencies, and a joint venture between General Electric and Comcast.

The Dow Jones industrial average (INDU) lost 86 points, or 0.8%. The S&P 500 index (SPX) lost 9 points or 0.8%. The Nasdaq composite (COMP) rose 12 points, or 0.5%.

Stocks gained in the early going, with Bank of America's news lifting the broader financial sector, but the financial sector turned mixed and the advance lost steam as the session wore on.

After watching the market rally more than 60% of the March 9 lows, many investors are now hunkering down in the last weeks of the year.

"Most investors have seen dramatic swings in their portfolios this year and there's a bias against making any big changes in this last month," said Larry Glazer, managing director at Mayflower Advisors. "There's a complacency going into year end that's going to make the jobs report less of a market mover than it might otherwise be."

Market breadth was negative. On the New York Stock Exchange, losers beat winners nearly two to one on volume of 1.13 billion shares. On the Nasdaq, decliners topped advancers by a narrow margin on volume of 2.02 billion shares.

Stocks struggled Wednesday, one day after the Dow industrials closed at a 14-month high. GM's management shakeup, record gold prices above $1,210 an ounce and mixed readings on the job market were all in play.

Also in focus: The Senate Banking Committee was holding its confirmation hearing on Ben Bernanke's second term as Federal Chairman.

Although Bernanke is widely expected to get the go-ahead to serve a second term, some Senators have been critical of the span of the Fed's power.

Committee chairman Christopher Dodd, D-Conn., gave his support to Bernanke in the morning, but also said some of the bank's current powers should be stripped.

Jobs and economy: The number of Americans filing new claims for unemployment last week fell to 457,000 from a revised 466,000 the previous week, the lowest level in 15 months.

Economists surveyed by Briefing.com thought the number would rise to 480,000. The report had only a minor impact on trading ahead of Friday's bigger monthly jobs report.

Employers are expected to have cut 125,000 from their payrolls after reducing 190,000 in the previous month, according to estimates. The unemployment rate, generated by a separate survey, is expected to have held steady at 10.2%.

Third-quarter productivity was revised down to an 8.1% annualized unit rate from a previous reading of 9.5%. Economists surveyed by Briefing.com thought it would fall to 8.5%. In other news, the Institute for Supply Management's reading on the services sector of the economy fell to 48.7 in November from 50.6 in October. Economists surveyed by Briefing.com thought it would rise to 51.5.

Retail sales: Sales for the month of November failed to benefit from a decent Thanksgiving weekend, according to reports released Thursday. Overall sales for the month of November rose just 0.5% versus forecasts for a 2.1% increase, according to Thomson Reuters.

On the upside, Nordstrom (JWN, Fortune 500) said sales rose 2.2% and Limited Brands (LTD, Fortune 500), which owns Victoria's Secret and other chains, said sales rose 3%. Shares of both companies gained.

On the downside, clothing chain Abercrombie & Fitch (ANF) said sales at stores open a year or more, or same-store sales, fell 17% from a year ago. Shares fell 9%. Retailer Children's Place (PLCE) said same-store sales fell 13%, sending shares down 12.5%.

GE-Comcast: Cable operator Comcast (CMCSA, Fortune 500) agreed to buy a majority stake in NBC Universal from General Electric (GE, Fortune 500), in a complex deal that creates a new entertainment company that would be worth $37.25 billion. The joint venture, consisting of NBC businesses and Comcast's cable networks, will ultimately give Comcast a 51% stake and GE a 49% stake.

Gold dips after new record: COMEX gold for February delivery rose $5.30 to settle at a new record of $1,218.30 an ounce.

The dollar and oil: The dollar fell versus the euro and gained against the yen.

U.S. light crude oil for January delivery fell 14 cents to settle at $76.46 a barrel on the New York Mercantile Exchange.

World markets: Overseas markets were mixed, with London's FTSE 100 and Germany's DAX each losing about 0.2% and France's CAC 40 ending with modest gains. Asian markets advanced, with Japan's Nikkei ending 3.8% higher.

Bonds:Treasury prices slipped, raising the yield on the 10-year note to 3.37% from 3.32% late Tuesday. Treasury prices and yields move in opposite directions.

Image

Yahoo! Finance

4:15 pm : For the second straight session stocks failed to hold fractionally improved 2009 highs. This session's reversal came as financials fell out of favor and concerns mounted for tomorrow's jobs report. A disappointing ISM reading didn't offer any help.

Bank of America (BAC 15.76, +0.11) helped put stocks on an upward path with news that it will repay its $45 billion TARP loan with $26.2 billion in excess liquidity and $18.8 billion in proceeds from the sale of common equivalent securities. That prompted several brokerage firms to issue upgrades on the stock, while analysts at Fitch upgraded the company's credit ratings.

In light of Bank of America's announcement, FDIC Chairman Bair stated that regulators are being very careful and very measured about letting banks repay TARP funds, Reuters reported. Meanwhile, Fed Chairman Bernanke felt the need to defend initial bank bailouts during his reconfirmation hearing. Bernanke didn't offer any new insights into the health of the financial system or the broader economy, though.

Conversely, European Central Bank President Trichet provided an increased 2010 GDP forecast for Europe, but also made dovish comments regarding policy. That caused the euro to slide and the U.S. dollar to gain ground. Initial weakness in the greenback had helped support a positive tone among participants in the early going. The dollar finished with a 0.1% gain against other currencies.

Financials also failed to provide steady support. The sector had been up as much as 1.8% early on, but it tumbled to a 2.1% loss. Principal Financial Group (PFG 22.52, -3.46) proved to be a heavy drag on the sector. Its shares endured their worst single-session percentage slide in more than six months after the company issued downside guidance for fiscal 2010.

The broader market was also undercut by concerns about the government's official nonfarm payrolls report, which is due tomorrow morning, even though White House representatives stated that they have no figures that suggest an increase in the unemployment rate. Unemployment already stands at a 25-year high.

On a related note, initial jobless claims for the week ending November 28 totaled 457,000, which is not as bad as the 480,000 initial claims that had been expected and marks a one-year low for initial claims. Continuing claims came in at 5.47 million, which is above the 5.40 million that many had come to expect and is also up from the previous week's 5.44 million continuing claims.

A disappointing ISM Service Index for November added to morning selling pressure. The sub-50 reading of 48.7 suggests that last month's service sector activity contracted, which is a surprise since the consensus estimate had been pegged at 51.5 following the October's reading of 50.6.

After sellers knocked stocks from their early perch, the market spent most of the afternoon moving sideways in a narrow range. However, pressure mounted late in the session to hand stocks a broad-based loss -- telecom (+0.2%) and utilities (+0.3%) were the only two sectors to advance.

Due to a generally disappointing batch of monthly same-store sales results, retailers struggled for the entire session. They finished with a 1.2% loss. Macy's (M 15.81, -0.49), JCPenney (JCP 28.35, -0.82), and TJX Companies (TJX 37.31, -1.08) were among the worst performers in the group. November same-store sales for Macy's slid 6.1%, while JCPenney said its monthly sales fell 5.9%. TJX Companies actually logged an 8.0% increase in its same-store sales, but that was disregarded when the company reaffirmed its downside guidance.

Comcast (CMCSA 15.91, +0.97) had a strong session, however. It announced that it has entered a definitive agreement to take majority control of NBC Universal from General Electric (GE 16.00, -0.07). Comcast will pay GE $6.5 billion to secure that stake, while GE will have the option to sell its remaining stake in coming years.

Advancing Sectors: Utilities (+0.3%), Telecom (+0.2%)
Declining Sectors: Financials (-2.1%), Materials (-1.7%), Energy (-1.4%), Consumer Staples (-0.8%), Consumer Discretionary (-0.7%), Industrials (-0.7%), Health Care (-0.6%), Tech (-0.2%)DJ30 -86.53 NASDAQ -11.89 NQ100 -0.4% R2K -1.2% SP400 -1.0% SP500 -9.32 NASDAQ Adv/Vol/Dec 852/2.01 bln/1811 NYSE Adv/Vol/Dec 1068/1.13 bln/1947

3:30 pm : Natural gas futures continued their recent declines this session. Yet another build in natural gas inventories this morning led to the fourth consecutive session of falling natural gas prices. The January contract finished 1.8% lower at $4.46 per contract and is now down almost 14% in just four sessions.

After crude oil hit a session low at $75.54 per barrel, the January contract pared it losses and traded around the unchanged mark for the remainder of the session. It closed down 0.2% at $76.46 per barrel.

Precious metals hit session lows in the morning as the dollar index hit a session high. March silver futures hit a session low at $18.84 per ounce but recovered somewhat to close at $19.13 per ounce, down 1.0% on the session. Gold hit a session low at $1205.20 per ounce. February gold futures returned all the way into positive territory, however, and finished up 0.4% at $1218.30 per ounce. As the dollar index was much weaker overnight, gold futures reached a new all-time high at $1227.50 per ounce before a recovery in the greenback took the futures down.DJ30 -21.91 NASDAQ +3.44 SP500 -2.66 NASDAQ Adv/Vol/Dec 1164/1.62 bln/1483 NYSE Adv/Vol/Dec 1428/800 mln/1564

3:00 pm : Stocks spent the past three hours trading in a narrow range along the neutral line, but recently slipped below that range to an afternoon low. Stocks still aren't back to their session lows, though.

The downward move comes as participants enter the final hour of today's trade. Market watchers continue to speculate whether stocks will make a sharp move lower or reclaim lost gains ahead of tomorrow's jobs report, which is a major trading event.

Weakness among financials continues to undermine the broader market, though. The sector has extended its slide to a 1.4% loss. Regional banks (-3.3%) are among the worst performers in the sector; they had actually provided support to it during the previous session. DJ30 -15.49 NASDAQ +5.75 SP500 -1.53 NASDAQ Adv/Vol/Dec 1281/1.49 bln/1372 NYSE Adv/Vol/Dec 1514/731 mln/1466

2:30 pm : The stock market continues to drift sideways. During the last three hours it has traded within a three point range around the neutral line.

Though the broader market remains largely unchanged, financials continue to flounder. The sector is now down 0.9%, which marks a fresh session low. Financials had been up as much as 1.8% in the early going.

Telecom and utilities have managed to add to their gains, whowever. They are now up 0.9% and 0.8%, respectively. DJ30 -4.98 NASDAQ +7.19 SP500 -0.16 NASDAQ Adv/Vol/Dec 1376/1.36 bln/1255 NYSE Adv/Vol/Dec 1624/659 mln/1353

2:00 pm : During his reconfirmation hearing, Fed Chairman Bernanke discussed his methods for steering the economy, but didn't reveal any new developments or insights into current matters. Amid criticisms for providing bank bailouts, Bernanke emphasized the need to consider the hypothetical fallout for the broader financial system in the event of a collapse by a major financial institution. The point comes after Bank of America (BAC 16.12, +0.47) announced it will repay its $45 billion in TARP loans. Reuters reported that FDIC Chairman Bair said that U.S. regulators are being very careful and very measured about letting banks repay TARP funds.

Meanwhile, Vice President Biden recently stated that the U.S. economy cannot be strengthened without the help of the private sector. He vowed no more asset bubbles, according to Reuters.

Boston Fed President Rosengren recently made his own statements, which were covered by Dow Jones. Rosengren stated that inflation levels have been declining and labor costs are weak and trending lower. Those comments come ahead of tomorrow's official jobs report, which is certain to show continued weakness in labor markets. DJ30 +1.06 NASDAQ +8.63 SP500 +0.74 NASDAQ Adv/Vol/Dec 1436/1.29 bln/1173 NYSE Adv/Vol/Dec 1688/624 mln/1260

1:30 pm : Financials are now down 0.5% to a fresh session low and well off of their session high, which was reached at a 1.8% gain. Bank of America (BAC 16.17, +0.52) continues to sport a solid gain, but the rest of the sector has been dragged down by the likes of lenders U.S. Bancorp (USB 23.56, -0.87) and PNC Financial (PNC 53.83, -2.66).

Principal Financial Group (PFG 23.53, -2.45) has also been a considerable drag on financials. The stock is stuck in its worst single-session percentage slide since May after the company issued downside guidance for fiscal 2010. DJ30 +4.24 NASDAQ +7.37 SP500 +0.60 NASDAQ Adv/Vol/Dec 1380/1.18 bln/1231 NYSE Adv/Vol/Dec 1647/571 mln/1306

1:00 pm : Early strength among financials helped lead the S&P 500 up to a fractionally better 2009 high, but for the second straight session the stock market proved unable to hold its gains. The subsequent rollover came as concerns mounted over tomorrow's jobs report and a disappointing ISM reading. Though the broader market slipped into the red, it managed to find support as it came within close range of the previous session's lows.

Financials climbed to a 1.8% gain in the early going as buyers responded to news that Bank of America (BAC 16.13, +0.48) will repay its $45 billion TARP loan. That was met with upgrades from several brokerage firms, while Fitch upgraded the company's ratings.

However, financials have since turned their market-leading gain into a 0.2% loss. The reversal among financials came as pressure in the broader market picked up amid rumors that the government's official nonfarm payrolls report for tomorrow could show an uptick in unemployment. Though representatives from the White House indicated they have no such information at this time, concerns over the report continue to linger as unemployment already stands at a 25-year high.

Selling pressure was exacerbated by news that ISM Service Index for November made a surprise dip below 50, which is the dividing line between contraction and expansion.

The U.S. dollar had started the session as a source of support for stocks, but it has since lost direction as the euro slides in the wake of dovish comments from European Central Bank President Trichet. The Dollar Index had been down markedly in the early going, but is now flat.

Despite the broader market's turnaround, large-cap tech continues to trade with strength. That has helped keep the Nasdaq in higher ground. Microsoft (MSFT 29.98, +0.20) has been a primary leader among tech issues, thanks to an analyst upgrade.

Comcast (CMCSA 15.90, +0.96) has also been a leader among in the Nasdaq. The company reached a definitive agreement with General Electric (GE 16.25, +0.18) to take majority control of NBC Universal.

Retailers have struggled this entire session. Their weakness comes in the wake of a rather disappointing batch of monthly same-store sales results. As a group, retailers are down 0.6%. DJ30 +5.29 NASDAQ +7.55 SP500 +0.74 NASDAQ Adv/Vol/Dec 1381/1.11 bln/1209 NYSE Adv/Vol/Dec 1645/528 mln/1298

12:30 pm : The stock market continues to move sideways along the flat line. Financials have surrendered all of their gains so that they now contend with a 0.2% loss.

Retailers are even worse off, though. They are down 0.6% as the likes of Macy's (M 15.82, -0.48), JC Penney (JCP 28.70, -0.47), and TJX Companies (TJX 36.60, -1.79) fall under pressure following a batch of rather disappointing announcements. Macy's said its same-store sales figures for November were down 6.1%, while JC Penney said its monthly sales fell 5.9%. TJX Companies saw sales climb 8.0%, but reaffirmed downside guidance. DJ30 -8.16 NASDAQ +5.46 SP500 -0.35 NASDAQ Adv/Vol/Dec 1364/1.02 bln/1202 NYSE Adv/Vol/Dec 1610/491 mln/1312

12:00 pm : Though its gain is modest, the Nasdaq is holding up better than its counterparts this session. That is due largely to strength among large-cap tech outfits like Comcast (CMCSA 15.94, +1.00) and Microsoft (MSFT 29.98, +0.20).

Comcast has won favor following news that it reached a definitive agreement with General Electric (GE 16.21, +0.14) to take majority control of NBC Universal. Comcast will pay General Electric $6.5 billion to secure its majority stake. General Electric will have the option to halve its remaining stake in little more than three years and the option to unload its entire stake in seven years. Consideration for Comcast's efforts has taken the stock toward two-month highs.

As for Microsoft, its shares set a fractionally better 52-week high with help from analysts at Bank of America's Merrill Lynch. The analysts raised their target on shares of MSFT to $37 from $24. DJ30 -8.08 NASDAQ +6.84 SP500 -0.09 NASDAQ Adv/Vol/Dec 1371/908 mln/1172 NYSE Adv/Vol/Dec 1650/434 mln/1242

11:30 am : The stock market continues to trade just above the neutral line as its underlying sectors move in mixed fashion.

Meanwhile, the U.S. dollar continues to look for a clear path. The greenback had been down markedly in the early going, but bounced to a modest gain as the euro slid amid dovish comments from European Central Bank President Trichet. The Dollar Index is now back in the red with a 0.1% loss.

Amid the dollar's fluctuations, oil prices have pared their losses. Oil prices were last quoted unchanged at $76.55 per barrel. Gold has surrendered some of its gains, though. The yellow metal had climbed to a new all-time high around $1227 per ounce, but was last quoted at $1213 per ounce, up 0.1%. DJ30 +5.67 NASDAQ +9.93 SP500 +1.57 NASDAQ Adv/Vol/Dec 1393/807 mln/1124 NYSE Adv/Vol/Dec 1717/395 mln/1156

11:00 am : The S&P 500 recently slipped into negative territory, but was able to attract support as it came within close range of the previous session's lows. Stocks now trade with fractional gains.

Financials have gone from frontrunners to the middle of the pack. The sector had been up as much as 1.8% in the early going, but it is now up just 0.1%.

The relapse by financials has left tech, telecom, and utilities to trade with the best gains of the major sectors. Each is up 0.5%.

Energy stocks are the worst performers this session. As a group, energy stocks are down 0.5%. For the second straight session energy stocks have been hampered by softer oil prices, which were last quoted 0.6% lower at $76.15 per barrel. DJ30 +0.08 NASDAQ +7.92 SP500 +0.72 NASDAQ Adv/Vol/Dec 1332/662 mln/1128 NYSE Adv/Vol/Dec 1618/336 mln/1204

10:30 am : The US Dollar Index is once again driving much of the pricing action in the commodity complex. Overnight, the index traded lower, which kept commodities trading in positive territory and pushed gold to another new all-time high of $1227.50 per ounce. In recent trade, commodities pushed to fresh session lows on strength in the US Dollar Index.

January natural gas declined into negative territory almost two hours ago and spent the majority of that time in the red. Ahead of this week's inventory data, natural gas was trading just above session lows of $4.476 per MMBtu. Following the data, which showed a build of 2 bcf vs. consensus of a draw of 3 bcf, natural gas ticked to lows of $4.44, now down 1.1% at $4.479 per MMBtu.

January crude oil fell into negative territory in recent activity, falling ~$1.50 per barrel in the last 50 minutes of trade to fresh session lows of $75.54 per barrel. Crude is currently just above that low at $75.92 per barrel, down 0.9%.

In recent activity, February gold moved back into negative territory on recent strength in the US Dollar Index, pushing to fresh session lows of $1208.10 per ounce. Currently, gold is just above that level, down 0.4% at $1207.80 per ounce. March silver traded only modestly higher overnight and is also trading lower on the strength in the dollar, falling to its own fresh lows of $18.865 per ounce. Silver is now 2.2% lower at $18.90 per once.DJ30 -16.70 NASDAQ +5.60 SP500 +0.20 NASDAQ Adv/Vol/Dec 1302/504.4 mln/1093 NYSE Adv/Vol/Dec 1565/259.3 mln/1212

10:00 am : The ISM Service Index for November came in at 48.7, which suggests contraction in activity since it is below 50. On average, economists had expected a reading of 51.5 following the previous month's reading of 50.6.

Stocks had already retreated from their morning highs in the minutes ahead of the ISM figure, but have extended their slide in the wake of the report's release.

Early movers: Gapping up -- ICOC +44.4%, TPI +13.6%, UTIW +10%, ERII +9.7%, MTG +8.9%, AIB +7.4%, GSIT +7.3%, THC +6.6%, PIR +6.4%; Gapping down -- PLCE -11.3%, SIGM -9.8%, FDO -9.3%, ARO -8.6%, BIOF -6.7%, SSI -5.9%, DYAX -5.7%, JAS -5.3%, NLST -4.9%

Advancing Sectors: Financials (+1.0%), Tech (+0.5%), Industrials (+0.1%)
Declining Sectors: Materials (-0.6%), Energy (-0.6%), Consumer Staples (-0.5%), Telecom (-0.2%), Health Care (-0.1%)
Unchanged: Utilities, Consumer DiscretionaryDJ30 -4.98 NASDAQ +8.16 SP500 +1.59 NASDAQ Adv/Vol/Dec 1441/316 mln/888 NYSE Adv/Vol/Dec 1658/171 mln/1046

09:45 am : The stock market is off to a strong start as financials rebound to a 1.7% gain after they lagged the broader market for two straight sessions. The financial sector's strength stems from diversified financial services stocks like Bank of America (BAC 16.63, +0.98), which has jumped out to its best single-session percentage gain in nearly four months.

Retailers are laggards in the early going. The group has been hampered by a generally disappointing batch of monthly same-store sales results. Collectively, retailers in the S&P 500 are up a mere 0.1%.DJ30 +52.08 NASDAQ +17.25 SP500 +7.42 NASDAQ Adv/Vol/Dec 1594/182 mln/662 NYSE Adv/Vol/Dec 2066/106 mln/576

09:15 am : S&P futures vs fair value: +3.00. Nasdaq futures vs fair value: +6.00. Stock futures are off of morning highs, but continue to suggest a moderately higher start for the session. Premarket highs came as financials garnered support amid news that Bank of America (BAC) plans to repay its $45 billion TARP loan with excess liquidity and proceeds from the sale of common equivalent securities. However, the dollar's gyrations this morning have caused some of the gains in the futures market to peter out. The greenback's moves come in conjunction with the euro's movements, which have been underpinned by recent comments from European Central Bank President Trichet. As expected, the ECB left its benchmark lending rate unchanged at 1.00%. The ECB did make an upward revision to its 2010 GDP forecast, though. Amid the dollar's movements, participants had a rather muted reaction to news that initial jobless claims continue to move lower. In fact, the latest initial jobless claims tally fell more than expected to its lowest level in one year. Meanwhile, the final reading for third quarter productivity showed a slightly softer increase in nonfarm productivity than had been expected as third quarter unit labor costs fell less than expected.

09:05 am : S&P futures vs fair value: +2.30. Nasdaq futures vs fair value: +4.80. U.S. stock futures are off of morning highs, but they continue to lead fair value. Meanwhile, Europe's major bourses are sporting healthy gains. There weren't any surprises with the European Central Bank's (ECB) latest rate decision, which left its benchmark rate unchanged at 1.00%. ECB President Trichet stated that these levels are appropriate. Trichet also stated that Europe's economy is expected to grow at a moderate rate in 2010 and revised upward the continent's 2010 GDP projection, which now calls for growth from 0.1% to 1.5%. The previous forecast had called for contraction that would range from 0.5% to 0.9%. Trichet stated that 2011 GDP is expected to grow from 0.2% to 2.2%. On a similar note, reports indicate that the euro zone's third quarter output expanded 0.4% quarter-over-quarter. Amid the news, Britain's FTSE is up 0.3%. Banks are providing the most support. Their gains come amid word from Financial Times that U.K. banks have aggregate exposure to Dubai World, the struggling corporate flagship of Dubai, of about $5 billion. According to the report, Royal Bank of Scotland (RBS) has between $1.0 billion and $2.0 billion in exposure. That's ahead of HSBC (HBC), Standard Chartered, and Lloyds (LYG). Financial Times also reported that the British service sector's purchasing managers' index moved from 56.9 in October to 56.6 in November. In Germany, the DAX is up 0.5%. Its gains are broad, but Siemens (SI) is a primary laggard after the company posted a loss for the fourth quarter. In France, financial outfits Societe Generale and AXA (AXA) have helped the broader market make its way to a 0.5% gain. In Asia, Japan's Nikkei spiked 3.8% as exporters jumped on a weaker yen. Metals shares also gained ground after gold hit a new record. Toyota Motor (TM) and Sony (SNE) were among the primary leaders. In Hong Kong, the Hang Seng climbed 1.2%. Banks and mainland property shares led the advance. That benefited China Construction Bank and Bank of China. Meanwhile, the MSCI Asia Pacific Index closed 1.8% higher, but mainland China's Shanghai Composite slipped 0.2%.

08:35 am : S&P futures vs fair value: +4.30. Nasdaq futures vs fair value: +5.50. Stock futures have gained a few points following the latest batch of data. Their upward move has been tempered by the dollar's reversal toward the neutral line. Nonetheless, the final reading for third quarter nonfarm productivity came in with an increase of 8.1%, which is not as strong as the 8.5% that had been widely expected and down from the 9.5% increase that had been previously reported. Unit labor costs were shown to have decreased 2.5%, which is softer than the 4.1% decline that had been widely expected. The final reading on unit labor costs was above the 5.2% decrease that had been previously reported. Initial jobless claims for the week ending November 28 totaled 457,000, which is not as bad as the 480,000 initial claims that had been expected. The latest initial claims tally is also down 5,000 from the previous week and marks a one-year low. The dip takes the four-week moving average down to 481,250 from 495,500. Continuing claims came in at 5.47 million, which is above the 5.40 million that many had come to expect and is also up from the previous week's 5.44 million continuing claims.

08:05 am : S&P futures vs fair value: +2.90. Nasdaq futures vs fair value: +4.00. Stock futures are up modestly as the U.S. dollar reverses its gains from the previous session and diversified banks and financial services shares find support after lagging in the previous two sessions. Their rebound follows word that Bank of America (BAC) will repay its $45 billion TARP loan with $26.2 billion in excess liquidity and $18.8 billion in proceeds from the sale of common equivalent securities. The announcement has won the company's shares upgrades from several brokerage and research firms. Fitch also upgraded Bank of America's individual and preferred ratings. The stock was quoted 4.6% higher at $16.37 per share in premarket trade. In other corporate news, General Electric (GE) and Comcast (CMCSA) confirmed that they have entered into a definitive agreement for a joint venture involving NBC Universal and Comcast's cable networks. Shares of both companies are up moderately in premarket trade. Retailers are also out this morning with their latest same-store monthly sales figures; results thus far have been rather mixed. The final reading for third quarter nonfarm productivity and labor costs is due at the bottom of the hour, which is also when the latest batch of initial jobless claims will be released. The ISM Service Index for November is due at 10:00 AM ET.

06:27 am : S&P futures vs fair value: +2.60. Nasdaq futures vs fair value: +4.80.

06:27 am : Nikkei...9977.67...+368.70...+3.80%. Hang Seng...22553.87...+264.30...+1.20%.

06:27 am : FTSE...5345.87...+18.50...+0.40%. DAX...5814.36...+32.30...+0.60%.

M.A. Perry
Trader and Founder of WRB Analysis (wide range body analysis)
Go Back To TheStrategyLab.com Homepage


Top
 Profile  
 
Display posts from previous:  Sort by  
Post new topic Reply to topic  [ 1 post ] 

All times are UTC - 5 hours [ DST ]


Who is online

Users browsing this forum: No registered users and 4 guests


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot post attachments in this forum

Search for:
Jump to:  
cron
Powered by phpBB © 2000, 2002, 2005, 2007 phpBB Group
Translated by Xaphos © 2007, 2008, 2009 phpBB.fr