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 Post subject: December 9th Wednesday 2009 Emini ES ($ES_F) points -9.00
PostPosted: Tue Dec 15, 2009 6:19 am 
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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=398

Quote:
Losing trading day mainly because I didn't have the opportunity to trade when there was good price action due to being outside getting ready for a big snow storm that include going to the schools and getting my kids. Simply, upon return, the price action was in a low volatility trading range. In fact, I should have not taken a single trade upon my return because I did recognize that low volatility price action.


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: -9.00 Emini ES ($ES_F) points


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Stocks Gain As Dollar Falls
Wall Street rises at the end of a volatile session as a weak greenback boosts commodity stocks. Surprise rise in wholesale inventories and a 3M upgrade help.
By Alexandra Twin, CNNMoney.com senior writer
Last Updated: December 9, 2009: 6:38 PM ET

NEW YORK (CNNMoney.com) -- Stocks gained Wednesday, at the end of a choppy session, after the falling dollar boosted commodity stocks and a rise in wholesale inventories and an upgrade of 3M provided some optimism.

The Dow Jones industrial average (INDU) rose 51 points, or 0.5%. The S&P 500 index (SPX) added 4 points, or 0.4%. The Nasdaq composite (COMP) gained 11 points, or 0.5%.

Wall Street retreated Tuesday as global debt woes weighed and as a stronger dollar sapped commodity prices and select stocks. The debt woes remained in place Wednesday, while the dollar zigzagged throughout the session, turning higher near the close and giving stocks some support.

The weak dollar has helped lift stocks over the last 9 months, giving a boost to dollar-traded commodity shares and the stocks of companies that do a lot of business overseas and benefit from a weaker greenback. But over the last few weeks, the dollar has seesawed.

Stocks have been rangebound over the last two weeks, with investors hunkering down at the end of a tumultuous year. That trend is likely to continue.

"We're probably going to coast into the end of the year," said Dan Genter, president and CEO at RNC Genter Capital Management."I just don't think you're going to see anything to push the market to new highs or to cause people to want to get out."

He said that while many investors have seen big run-ups on their money since the March lows -- the S&P 500 is up 62% as of Wednesday's close -- plenty of investors have missed the bulk of the run.

"With over $3 trillion sitting in cash, individuals and institutions are going to need to jump in," Genter said. "You're still going to see the trend of any dips being used as an opportunity for investors to deploy more cash."

TARP: The federal bailout plan will be extended until Oct. 3, 2010, Treasury Secretary Timothy Geithner said Wednesday in a letter to Congress.

However, the Troubled Asset Relief Program, originally enacted in October 2008 at the height of the credit crisis, will be scaled back and refocused on newer programs designed to stop foreclosures and make loans to small businesses.

Separately, the Congressional Oversight Panel said that while TARP did help stabilize the banking system, it failed to boost spending or help stop foreclosures.

On Tuesday, President Obama proposed reallocating money not used for TARP to help create jobs and provide other help to consumers. The president is reportedly meeting with the chief executives of a number of big banks next week to try to finesse more lending to consumers.

Economy: Wholesale inventories in October rose 0.3% after falling 0.8% in September. Economists surveyed by Briefing.com thought they'd decline 0.5%.

Stock movers: 3M (MMM, Fortune 500) rallied 3% and helped keep the Dow afloat after Citigroup upgraded it to "buy" from "hold," saying it's likely to outperform its peers over the next year and deliver superior financial returns.

Pfizer (PFE, Fortune 500) rose on a bullish note out of Credit Suisse. Fellow Dow pharmaceutical stock Merck (MRK, Fortune 500) gained as well.

Hewlett Packard (HPQ, Fortune 500) and IBM (IBM, Fortune 500) were the Dow's other big gainers.

Bank of America (BAC, Fortune 500) said Wednesday that it has paid back the government in full the $45 billion it accepted in bailout money. A week ago, BofA announced that it planned to pay the government back. Shares were little changed.

Market breadth was mixed. On the New York Stock Exchange, winners beat losers eight to seven on volume of 1.08 billion shares. On the Nasdaq, decliners and advancers were roughly split on volume of 1.92 billion shares.

Health care: Liberal and moderate Democrats have reached a deal on a number of provisions to replace the controversial public option portion of the health care bill. The agreement is considered to be a significant one as the Senate works to hammer out a bill that might garner broad support.

World markets: Overseas markets slid for a second day on worries about the global economy and debt. Britain's FTSE 100 lost 0.4%, the German DAX fell 0.7% and France's CAC 40 slid 1%. Asian markets ended lower.

Commodities: COMEX gold for February delivery fell $22.50 to settle at $1,120.90 an ounce. Gold closed at an all-time high of $1,218.30 an ounce last week.

U.S. light crude oil for January delivery fell $1.95 to settle at $70.67 a barrel on the New York Mercantile Exchange.

Bonds: Treasury prices fell, raising the yield on the 10-year note to 3.42% from 3.38% late Tuesday. Treasury prices and yields move in opposite directions.

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Yahoo! Finance

4:30 pm : Frequent swings by the U.S. dollar caused stocks to spend most of the session chopping along in a relatively narrow range, but some late support helped the major equity averages make modest gains. Still, the action hasn't provided any clarity to the market's near-term direction.

Stocks slipped in early trade as the greenback trimmed its losses against competing currencies. The dollar's move came as word surfaced that Standard & Poor's revised its outlook for Spain to negative from stable. The news release came a day after Greece's credit rating was cut by Fitch and Moody's made cautionary comments regarding the potential consequences of the ballooning deficits of the U.S. and U.K.

Reports indicated that the U.S. government is not yet ready to leave the financial system completely to itself when word surfaced that the $700 billion financial bailout plan, TARP, will likely be extended until October 2010.

In other political news, Senate Democrats reached a tentative agreement to remove the government-run insurance portion of their health care reform plan. The announcement gave an early lift to shares of managed care providers, but the group rolled over to settle with a 0.2% loss.

Though the Dollar Index looked like it got a lift from an early flight to safety, it was unable to trade with any clear direction. Each of its attempts to pare losses was met with resistance at the neutral line. It finished with a 0.3% loss.

The greenback was unable to make a gain this session, but commodities still fell under a stiff bout of selling pressure. That caused the CRB Commodity Index to drop 1.5%, its worst showing this month.

Oil prices were a primary drag on the CRB. Contracts for crude closed pit trade with oil priced 2.6% lower at $70.70 per barrel, near fresh two-month lows. The move came even though weekly inventory data showed a surprise draw of 3.82 million barrels.

Gold prices slid for a fourth straight session. In the latest round of pit trade, prices for the yellow metal fell 2.0% to settle at $1120.90 per ounce.

Despite such weakness, gold stocks garnered particular support. The group gained 2.8%. That helped the materials sector put together a 1.3% gain, which was the best of any major sector.

Semiconductor stocks had a relatively solid session. They advanced 0.6%, according to the Philadelphia Semiconductor Index, even though Texas Instruments (TXN 25.99, -0.34) fell sharply after it issued an increased earnings forecast.

While Texas Instruments traded with weakness, many large-cap tech issues showed strength for the second straight session. That helped the Nasdaq 100 gain 1.0%, more than double the gain seen by the headline indices.

A weak session for Treasuries concluded with the benchmark 10-year Note down roughly 11 ticks, which put its yield back above 3.4%. Its weakness was worsened by softer-than-expected demand in an auction of 10-year Notes. The auction produced a bid-to-cover ratio of 2.6, which was right at the average for the year, but down from the previous auction's ratio of 2.8.

Consistent with recent trade, action in the broader market this session was largely mixed and lacked clear direction. Though stocks have struggled to hold fresh highs for 2009 in recent weeks, dips have been short and shallow as many market participants continue to step in and provide support as they try to chase the easy gains that have been made since March.

Advancing Sectors: Materials (+1.3%), Tech (+0.9%), Health Care (+0.6%), Financials (+0.4%), Utilities (+0.4%), Energy (+0.1%)
Declining Sectors: Consumer Discretionary (-0.2%)
Unchanged: Consumer Staples, Industrials, TelecomDJ30 +51.08 NASDAQ +10.74 NQ100 +1.0% R2K +0.1% SP400 +0.1% SP500 +4.01 NASDAQ Adv/Vol/Dec 1355/1.92 bln/1326 NYSE Adv/Vol/Dec 1644/1.08 bln/1344

3:30 pm : Commodities fell under a stiff bout of selling pressure this session. That has left the CRB Commodity Index to trade with a 1.5% loss, its worst showing this month.

Weakness in oil prices proved to be a particularly heavy drag on the CRB. Oil prices fell to fresh two-month lows near the $70 per barrel mark, despite bullish weekly inventory data, which showed a surprise draw of 3.82 million barrels. Oil prices closed at $70.70 per barrel, down 2.6%.

Natural gas ended its streak of relative strength. In turn, prices for the commodity fell 4.2% to close at $4.90 per contract.

Precious metals weren't much better off this session. Gold prices continued their slide to a fourth straight session; they lost 2.0% to settle at $1120.90 per ounce in the latest round of pit trade.

Meanwhile, silver prices settled with a 3.5% loss at $17.18 per ounce.

Despite the broad weakness in commodities prices, materials stocks have fared relatively well this session. The sector is currently up 1.2%, better than any other major sector in the S&P 500. DJ30 +42.09 NASDAQ +9.92 SP500 +3.31 NASDAQ Adv/Vol/Dec 1322/1.59 bln/1357 NYSE Adv/Vol/Dec 1653/778 mln/1322

3:00 pm : The Dow has added a few points to its recent gain, while the Nasdaq and S&P 500 make their way up to the neutral line. The three major indices haven't together been in positive territory since late morning.

Financials have helped provide support to the late move as the sector climbs to a 0.3% gain.

Materials stocks continue to make up the best performing sector, though. That sector is up a relatively impressive 0.8%. What's more, the move comes in the face of weaker commodities prices, which have taken the CRB Commodity Index to a 1.5% loss. DJ30 +13.75 NASDAQ +0.63 SP500 -0.15 NASDAQ Adv/Vol/Dec 1082/1.43 bln/1559 NYSE Adv/Vol/Dec 1295/691 mln/1664

2:30 pm : Stocks recently managed to make a modest upturn, which put the Dow back into positive ground. The blue chip index is struggling to hold its fractional gain, though.

The Nasdaq 100 is sporting a modest gain of 0.2% at the moment. For the second straight session its relative strength stems from large-cap tech issues like Apple (AAPL 193.91, +4.04) and Research In Motion (RIMM 63.92, +2.76). DJ30 +3.25 NASDAQ -3.16 SP500 -1.89 NASDAQ Adv/Vol/Dec 982/1.30 bln/1669 NYSE Adv/Vol/Dec 1213/648 mln/1748

2:00 pm : Stocks continue to chop around in negative territory. The general trend has been downward, though.

Pressure continues to keep Treasuries lower, too. The benchmark 10-year Note is down 12 ticks. Its slide was extended by weaker-than-expected demand for the Notes in the latest auction, which produced a bid-to-cover ratio of 2.6. That was right at the average for the year. However, the indirect bidding of 34.9% was the lightest it has been since June. The results do not bode too well for the sale of 30-year Bonds tomorrow. DJ30 -16.33 NASDAQ -8.48 SP500 -4.37 NASDAQ Adv/Vol/Dec 887/1.23 bln/1731 NYSE Adv/Vol/Dec 1056/591 mln/1886

1:30 pm : The Dollar Index is flirting with a gain as it trades along the flat line after making an upturn from negative territory. That has put added pressure on commodities and taken the CRB Commodity Index to a 1.3% loss.

Meanwhile, gold prices continue to push lower; the yellow metal is currently priced 1.9% lower at $1120.90 per ounce, down for the fourth straight session.

Oil prices are also under pressure. Crude prices are currently down 2.8% to $70.60 per barrel, near two-month lows.

As for stocks, the broad-based S&P 500 continues to chop lower. Its losses remain modest, though. DJ30 -3.56 NASDAQ -5.70 SP500 -2.87 NASDAQ Adv/Vol/Dec 910/1.14 bln/1683 NYSE Adv/Vol/Dec 1141/530 mln/1790

1:00 pm : Gyrations by the U.S. dollar have stocks stuck in a sloppy session of trade that has extended the broader market's sideways drift.

Initial weakness in the greenback had helped prop up stocks ahead of the opening bell, but an upturn by the dollar induced selling pressure among stocks. The greenback's initial upturn came amid news that Standard & Poor's revised its outlook for Spain to negative from stable. Such headlines often drive participants to pursue safe havens like the dollar and the 10-year Treasury.

However, the 10-year Note has spent most of the session down a few ticks. Its action precedes the latest 10-year Treasury auction results, which are due imminently. There isn't anything that points to a weak showing.

The Dollar Index has oscillated in negative territory this entire session, but it is down fractionally at the moment. Such moves have made it difficult for stocks to find a clear direction. In turn, stocks have chopped along for this entire session with mixed results. The action is consistent with that of the broader market for the past couple of months, during which time stocks have struggled to hold gains, but continue to attract supportive bids on dips.

The market's ambiguous mood has enabled stiff selling pressure to hit Texas Instruments (TXN 25.74, -0.59), even though the company issued an increased earnings forecast that allows for an upside earnings surprise.

In other news, Senate Democrats have reached a tentative agreement to remove the government-run insurance portion of their health care reform plan, while the $700 billion financial bailout plan, TARP, will likely be extended until October 2010. DJ30 -4.32 NASDAQ -5.88 SP500 -2.68 NASDAQ Adv/Vol/Dec 963/1.03 bln/1643 NYSE Adv/Vol/Dec 1104/500 mln/1765

12:30 pm : Oil prices have rolled over after making a midmorning bounce. Oil prices had been up near $73.50 per barrel shortly after the release of some relatively bullish weekly inventory data, but prices are now down to $70.75 per barrel, where they trade with a 2.5% loss. That puts oil prices at a two-month low.

The U.S. dollar's improved position has added to selling pressure against oil. The greenback is currently down less than 0.1% against competing currencies after it was recently down roughly 0.3%. Action in the greenback has been erratic this session, but it has yet to put together a meaningful gain.

As a result of oil's reversal, energy stocks have moved into negative territory. The energy sector had been up 0.9% at its session high, but it is now down to a 0.5% loss. Oil and gas exploration companies are under the most pressure; the group is down 1.2% at the moment. DJ30 +6.42 NASDAQ -5.72 SP500 -2.12 NASDAQ Adv/Vol/Dec 960/952 mln/1621 NYSE Adv/Vol/Dec 1166/449 mln/1718

12:00 pm : Shares of PepsiCo (PEP 61.02, -2.46) are grappling with their worst single-session percentage loss since April after the soft drink and snack food company announced that it has reached an agreement with Dr. Pepper Snapple Group (DPS 27.11, +0.36) to manufacture and distribute certain DPS products after PepsiCo completes its acquisition of bottlers Pepsi Bottling Group (PBG 37.62, -0.76) and PepsiAmericas (PAS 29.46, -0.62).

Under the terms of the agreement, Dr. Pepper Snapple will receive an upfront payment of $900 million, while PepsiCo will be entitled to manufacture and distribute Dr. Pepper and certain other products from the company.

PepsiCo also indicated that for fiscal 2009 it expects constant currency net revenue to be up about 5% and 2009 earnings per share to increase about 5% to 6% from its fiscal 2008 core earnings of $3.68 per share. The forecast roughly translates to earnings from $3.86 to $3.90 per share, which is well above the current consensus of $3.76 per share. For fiscal 2010, the company reaffirmed its target for 11% to 13% growth for core constant currency earnings per share from 2009 core earnings. DJ30 +15.56 NASDAQ -2.06 SP500 -0.01 NASDAQ Adv/Vol/Dec 982/853 mln/1540 NYSE Adv/Vol/Dec 1318/396 mln/1569

11:30 am : Stocks have trimmed their gains. That has left the S&P 500 and the Nasdaq to dance along the neutral line. The Dow is also handing back some of its gains, but it remains firmly in the green.

Semiconductor stocks are currently off by a rather tame 0.1%. Their dip comes as Texas Instruments (TXN 25.71, +0.62) falters following its midquarter update, during which the company issued an increased earnings forecast that allows for an upside surprise relative to the current consensus estimate of $0.47 per share. DJ30 +23.27 NASDAQ -0.47 SP500 +0.72 NASDAQ Adv/Vol/Dec 1004/753 mln/1503 NYSE Adv/Vol/Dec 1393/350 mln/1458

11:00 am : Since spending the first hour of the session chopping along in negative territory, stocks have bounced to modest gains. Materials stocks have shown particular strength as the sector ascends to a 0.7% gain, more than any other sector.

Energy stocks aren't far behind, though. The energy sector is currently up 0.6%.

Strength among materials stocks and energy stocks comes as the dollar dips deeper into negative territory to prop up commodities prices. Specifically, the dollar is currently down 0.3% against a basket of foreign currencies. That has helped the CRB Commodity Index climb to a 0.5% gain and oil prices climb to a 0.9% gain at $73.30 per barrel. Oil prices have also been helped by a surprisingly large draw against weekly inventories. DJ30 +23.28 NASDAQ +0.62 SP500 +1.18 NASDAQ Adv/Vol/Dec 1020/635 mln/1408 NYSE Adv/Vol/Dec 1417/300 mln/1407

10:35 am : January crude oil traded modestly higher in the overnight session and eventually reached today's highs of $73.87 per barrel early this morning. Crude pulled back off highs and extended losses with a sharp decline at the open of pit trade, pushing the energy component back to the unchanged line. Ahead of today's inventory data, where consensus is calling for a build of 250K, crude was trading 0.5% higher at $73.00 per barrel. Following the inventory data, which showed a draw of 3823K vs. consensus, crude oil fell into negative territory to fresh lows of $72.02 per barrel and is currently 0.4% lower at $72.30 per barrel.

January natural gas displayed little volatility overnight as it traded right around the unchanged line before beginning its uptrend, just after 4:00am ET, which pushed natural gas to today's session high of $5.23 per MMBtu early this morning. Natural gas tracked crude and sold off after hitting its highs and also further extended losses at the open of pit trade, pushing it into negative territory and to new session lows of $5.04 per MMBtu. Currently, natural gas is 0.2% higher at $5.125 per MMBtu.

After trending higher back to the unchanged mark, the US Dollar Index is back modestly lower again, which has given precious metals a little price support. February gold and March silver spent most of the overnight and morning session in negative territory. Currently, gold is 0.4% lower at $1138.60 per ounce, while silver is 0.6% lower at $17.69 per ounce.

DJ30 -26.53 NASDAQ -12.69 SP500 -4.48 NASDAQ Adv/Vol/Dec 741/462.8 mln/1615 NYSE Adv/Vol/Dec 921/224.3 mln/1846

10:00 am : Stocks are attempting to rebound from their opening slide. The move comes amid a pullback in the greenback, which has gone from a fractional loss against competing currencies to a near 0.2% decline in a matter of minutes. An early bounce by the dollar had actually triggered the stock market's downward start.

Materials stocks have made their way to a 0.2% gain. The sector is being helped along by strength in gold stocks, which have underperformed considerably in recent sessions. Gold stocks are up 1.6% at the moment. Their advance comes despite a drop in gold prices, which are currently off 0.3% to $1139.50 per ounce.

Wholesale inventory data for October has just hit news wires. Inventories increased 0.3% for the month; they were expected to slip 0.5%. Meanwhile, inventories for September were revised upward to reflect a 0.8% decline.

Early movers: Trading up -- RNWK +20%, COO +10.8%, CMTL +10.5%, AVNR +9.8%, HITK +9.7%, VCI +9.1%, INWK +8.9%, S +8.2%; Trading down -- ECA -45.2%, MOV -19%, PLAB -16.9%, CMRO -15%, MW -14.1%, SKBID -13.9%, CLFD -11.2%, WPRT -10.4%, MDAS -8.1%DJ30 -10.06 NASDAQ -9.63 SP500 -2.19 NASDAQ Adv/Vol/Dec 773/281 mln/1458 NYSE Adv/Vol/Dec 1043/143 mln/1637

09:45 am : Premarket buying had suggested a solid start for stocks, but the market is in the red in the first few minutes of trade. Its loss is broad based as nine of the 10 major sectors in the S&P 500 come under pressure -- telecom, up 0.2%, is the only sector to sport a gain.

This morning's turn of tone came as the Dollar Index swung from a marked loss up to the neutral line. It currently trades with a fractional loss.

The greenback's upturn came amid news that Standard & Poor's revised its outlook for Spain to negative from stable; its ratings have been affirmed, though. Still, the announcement follows word earlier this week that Greece was stripped of its A-rating by analysts at Fitch. Concerns for the financial health of foreign countries and developing markets often prompts investors to seek safety in the U.S. dollar. DJ30 -47.54 NASDAQ -15.96 SP500 -5.64 NASDAQ Adv/Vol/Dec 644/170 mln/1522 NYSE Adv/Vol/Dec 830/98 mln/1768

09:15 am : S&P futures vs fair value: -1.40. Nasdaq futures vs fair value: -3.50. The Dollar Index has turned an early morning loss of roughly 0.5% into a loss of just 0.1%. That has undercut stock futures so that they now suggest a flat start for the major equity averages. Stock futures had traded higher earlier this morning as participants digested word that Senate Democrats have reached a tentative agreement to remove the government-run insurance portion of their health care reform plan and news that the $700 billion financial bailout plan, TARP, will likely be extended until October 2010. Increased guidance from Texas Instruments (TXN) had no positive impact on the broader market, but actually led to selling pressure against the stock. The bounce by the greenback has also undercut commodities prices and taken the CRB Commodity Index from an early gain of nearly 0.6% to a fractional loss. Oil prices had been up above $73.80 per barrel in electronic trade, but prices have since surrendered roughly $1 to trade with a 0.3% gain at $72.85 per barrel. Oil prices could see increased volatility with the 10:30 AM ET release of weekly oil inventory data. Wholesale inventory data for October are due at 10:00 AM ET and results from an auction of 10-year Treasury Notes are due at 1:00 PM ET.

09:05 am : S&P futures vs fair value: -0.40. Nasdaq futures vs fair value: -2.30. Stock futures have pulled back from their morning highs as the Dollar Index pares some of its losses, but commodities continue to garner support in the face of the greenback's pullback. In turn, the CRB Commodity Index sports a 0.2% gain. The move has been helped by higher oil prices, which are up 0.5% to $73.00 per barrel in the first few minutes of pit trade. Oil prices could see some increased volatility with the midmorning release of weekly crude inventory data (10:30 AM ET). Gold prices have made their way to a 0.2% gain at $1145.50 per ounce. They had extended their recent multisession slide into early pit trade, but they have since made a modest rebound.

08:35 am : S&P futures vs fair value: +2.40. Nasdaq futures vs fair value: +2.50. U.S. stock futures continue to sport a modest lead over fair value. Meanwhile, trade is tepid in Europe, where Germany's DAX is up 0.3%. BASF is a primary leader, but engineering giant Siemens (SI) is countering. In France, the CAC is up 0.2%. Financial outfits BNP Paribas and Societe Generale are among the primary leaders in the index, but AXA (AXA) is acting as a drag. Banks are providing a 0.2% lift to Britain's FTSE. HSBC (HBC) and Standard Chartered are garnering support amid news that banks tied up with the Dubai debt debacle have renegotiated terms. However, Daily Telegraph reported that sources warned that some of Europe's biggest banks have yet to come clean on the extent of their losses and could still provide shocks to the financial system. Revised data showed that Japan's third quarter economic growth from the previous quarter was revised down to 0.3% from 1.2%, while the annualized rate was trimmed to 1.3% from 4.8%. The news triggered broad selling, but exporters were among the primary laggards as Honda (HMC) and Toyota Motor (TM) both declined. Suzuki Motor climbed, though. Sources to Reuters said that Volkswagen plans to take a stake of up to 20% in the company. The Nikkei fell 1.3%. In Hong Kong, the Hang Seng fell 1.4%. HSBC and other bank shares were heavy drags. In mainland China, the Shanghai Composite dropped 1.7%. The MSCI Asia Pacific Index closed 0.8% lower.

08:05 am : S&P futures vs fair value: +3.30. Nasdaq futures vs fair value: +4.50. Stock futures are pricing in a modest bounce from the previous session's broad-based decline. Renewed weakness in the dollar is helping to support the bid; the Dollar Index is currently down 0.3% after it hit a fresh one-month high in the previous session. Premarket participants are also considering news from The Wall Street Journal that senior Senate Democrats have reached a tentative agreement to abandon the government-run insurance plan in their health care overhaul bill. In other political news, Reuters reported that the Obama administration plans to announce that it intends to extend the life of the $700 billion financial bailout fund, TARP, until October 2010 and that the top Republican on the Senate Banking Committee said he didn't believe there would be bipartisan agreement on financial regulatory rewrites before year's end. This morning's modestly positive tone comes despite tepid trade in Europe and considerable losses in Asian markets, which were triggered by a sharp downward revision to Japan's third quarter GDP. There have only been a few corporate announcements this morning, but the most notable so far has been increased guidance from Texas Instruments (TXN). However, the announcement has failed to lift the company's shares in premarket trade. The stock was last quoted nearly 3% lower at $25.60 per share. Today's calendar remains light on economic announcements with Wholesale Inventories for October due at 10:00 AM ET. Results from an auction of 10-year Notes are due at 1:00 PM ET.

06:35 am : S&P futures vs fair value: +2.10. Nasdaq futures vs fair value: +2.30.

06:34 am : Nikkei...10004.72...-135.80...-1.30%. Hang Seng...21741.76...-318.80...-1.40%.

06:34 am : FTSE...5215.46...-7.90...-0.20%. DAX...5670.42...-18.20...-0.30%.

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


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