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 Post subject: February 22nd Monday 2010 Emini TF ($TF_F) points +5.80
PostPosted: Tue Feb 23, 2010 8:45 am 
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Joined: Sat Jan 10, 2009 1:06 pm
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Written By M.A. Perry
Trader and Founder of WRB Analysis (wide range body analysis)

Trade journals are crucial in preventing us traders from becoming complacent or content with our trading plan or the markets because without having the ability to review archives of past trading days in a forever changing market...we won't know it's time to adapt when change occurs in the markets because broker statements alone doesn't help us keep that edge in comparison to a trade journal. In addition, although this journal contains advertisements involving my trade methods, it does contain useful trading tips a few times per week. Thus, if you're looking for trading tips that can improve your trading and understand that profitable trading involves more than just entry signals...consistently read this trade journal and the #FuturesTrades chat room logs where I post my trades in real-time from entry to exit (see link below) via my IRC user name wrbtrader that's the same as my user name on twitter.

Today's #FuturesTrades chat room logs is archived @

Today's results are 4 wins : 0 losses : 1 breakeven. One big trade involved most of my profits today. Other than that, the price action was bearish prior to the big drop and it's intraday highs prior to the drop had stalled within a WRB S/R Zone.

Trading Tip: Support/Resistance levels or zones are not trade signals. Instead, they are price areas to look for trade signals if/when a trade signal appears.

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.


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).

Also, if you're interested in having free access to one of my profitable trade strategies along with earning extra income with little effort...join my referral program @

My Trading Performance: +5.80 points in the ICE Russell 2000 Emini TF ($TF_F) Futures
022210_wrbtrader_PnLBlotterProfit.png [ 32.27 KiB | Viewed 533 times ]


Stocks End Volatile Session Lower
By Alexandra Twin, senior writer
February 22, 2010: 6:04 PM ET

NEW YORK ( -- Stocks ended a choppy session lower Monday as investors weighed earnings news, President Obama's health care proposal and Schlumberger's $11 billion buyout deal for oil services rival Smith International.

The Dow Jones industrial average (INDU) lost 19 points or 0.2%. Last week, the Dow surged 300 points for its biggest one-week gain since November.

The S&P 500 index (SPX) eased 1 point, or 0.1%. The Nasdaq composite (COMP) slipped 2 points, or 0.1%.

"The markets are fairly quiet after a strong week," said Alan Gayle, senior investment strategist at RidgeWorth Investments. "But after a 65% run [on the S&P 500] off the lows and some concerns about the economy in the near term, I'm expecting more choppiness in the weeks ahead."

Gayle said investors were eying the deal and earnings news, the direction of the dollar and commodity prices. Investors may have also taken comfort from signs that regulatory changes being proposed in Washington will be milder than feared, he said, including the provisions in President Obama's health care plan, announced Monday.

Stocks ended higher last week as investors digested the Federal Reserve's decision to lift the emergency bank lending rate. Stocks also posted gains for the second week in a row after four weeks of declines.

But after that advance, stocks are bound to be volatile this week amid ongoing concerns about the outlook for the U.S. economy. Reports are due on housing, jobs and GDP growth. Federal Reserve Chairman Ben Bernanke testifies before Congress Wednesday and Thursday. Lawmakers meet in Washington later this week to discuss the Toyota recall, bank health and fiscal stimulus.
Olympic gold equals big money for athletes

Corporate news: Schlumberger (SLB) said it was buying fellow oil driller Smith International (SII, Fortune 500) in an all-stock deal worth $11 billion. The two companies' boards of directors have already approved the deal and shareholders are expected to follow suit. Schlumberger shares fell 3.7% and Smith shares gained 8.8%.

In other company news, Lowe's (LOW, Fortune 500) reported higher-than-expected quarterly earnings and revenue and said sales would keep rising in the current year. However, shares of the home improvement retailer were little changed.

Shares of Dow component Bank of America (BAC, Fortune 500) rose just over 2% after a judge approved the proposed $150 million settlement between the financial firm and the Securities and Exchange Commission.

Credit cards: New credit card rules aimed at protecting consumers went into effect Monday. However, the regulations could result in consumers facing new charges and additional fees as the industry looks to offset the lost revenue.

Health care: President Obama presented his outline for health care reform Monday, ahead of the bipartisan health care summit later this week. The 10-year, nearly $1 trillion plan would purportedly cover more than 31 million Americans currently not insured without adding to the budget deficit.

The plan also allows the government to shoot down or roll back insurance premium hikes.

Economy: A survey from the National Association for Business Economics showed that most leading economists think the recovery will remain on track.
0:00 /5:40Credit Card Reform finally makes it

World Markets: In overseas trading, most European markets ended lower and Asian markets ended higher.

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

U.S. light crude oil for March delivery rose 35 cents to settle at $80.16 a barrel on the New York Mercantile Exchange.

COMEX gold for April delivery fell $8.70 to settle at $1,112.60 per ounce.

Bonds: Treasury prices fell, raising the yield on the 10-year note to 3.79% from 3.77% late Friday. Treasury prices and yields move in opposite directions.

Market breadth was mixed. On the New York Stock Exchange, losers beat winners by a narrow margin on volume of 950 million shares. On the Nasdaq, advancers topped decliners seven to six on volume of 1.95 billion shares.


Yahoo! Finance

4:40 pm : Stocks rolled over in the final few minutes of trade to log their first loss in five sessions. The downturn came after the stock market failed to extend a move that took it from a modest loss back to its opening high.

Financials were integral in the afternoon advance. The sector was a steady outperformer for the entire session and finished with a 1.1% loss, despite a lack of clear catalysts within the sector. While the broader market inevitably failed to follow the financial sector to a gain, its strength helped limit losses.

Technical support at the S&P 500's 50-day moving average also provided support. The line acted as a floor for trade during the entire session. It even held firm as stocks extended their opening slide into negative territory amid news that President Obama has proposed to broaden the Medicare Hospital Insurance tax base in his latest health care reform plan. Despite the negative reaction to the news item, health care stocks finished fractionally lower.

Energy stocks were the worst performers. They shed 1.3%. Schlumberger (SLB 61.57, -2.33) was a primary laggard following news that it has agreed to a stock-for-stock merger with Smith International (SII 41.03, +3.33).

In other merger and acquisition news, Thermo Fisher Scientific (TMO 48.10, -1.12) has made a $6 billion bid for Millipore (MIL 87.35, +16.01).

Treasuries traded in quiet fashion this session. Results from an $8 billion auction of 30-year TIPS did little to stimulate interest in the space. As such, the benchmark 10-year Note finished just a few ticks lower.

The dollar also traded quietly along the flat line. Its movements had little overall effect on the broader market.

Trading volume was paltry once again as fewer than 1 billion shares traded hands on the NYSE. DJ30 -18.97 NASDAQ -1.84 NQ100 -0.3% R2K +0.1% SP400 +0.0% SP500 -1.16 NASDAQ Adv/Vol/Dec 1413/1.94 bln/1267 NYSE Adv/Vol/Dec 1511/944 mln/1540

3:30 pm : It was an uneventful session in the crude oil pits. April crude oil chopped about the $80 per barrel level for most of the session, and closed up 0.3% at $80.27 per barrel. News that Schlumberger (SLB 61.49 -2.41) would buy Smith International (SII 40.99 +3.29) in a stock for stock transaction has failed to create a bid in the oil services sector, though. The Oil Services HOLDRs ETF (OIH 123.94 -0.46) opened at a session high but quickly traded into negative territory.

Elsewhere in the energy complex, natural gas futures sold off this session. The March contract hit a session low at $4.84 per MMBtu and closed at $4.89 per MMBtu, down 3.0%.

Precious metals traded 0.7% lower this session. Both gold and silver futures sold off in the morning and traded relatively flat thereafter. April gold closed 0.8% lower at $1113.10 per ounce and March silver closed 1.2% lower at $16.22 per ounce.

Sugar futures traded notably lower this session. The May contract closed down 7.1% at 24.12 cents per pound. A stronger dollar and higher supply forecasts have brought sugar prices down from a 29-year high above 30 cents per pound reached on Feb. 1.DJ30 +8.92 NASDAQ +2.78 SP500 +1.95 NASDAQ Adv/Vol/Dec 1463/1.52 bln/1207 NYSE Adv/Vol/Dec 1640/660 mln/1384

3:00 pm : Financials have extended their advance to a 1.5% gain. In doing so, the sector has helped the broader market build on its recent advance, such that the S&P 500 is at a fresh afternoon high with a modest gain. However, the S&P 500 is still a bit shy of its session high, which stands at the 1112 line. DJ30 +8.77 NASDAQ +2.90 SP500 +1.44 NASDAQ Adv/Vol/Dec 1435/1.41 bln/1236 NYSE Adv/Vol/Dec 1601/613 mln/1419

2:30 pm : After some resistance, the three major indices have poked back into positive territory and are at their best level of the afternoon. Despite the uptick, stocks are still shy of their opening levels.

The stock market's recent move has coincided with a dip by the dollar, which is now down to a fractional loss after it was up 0.1% in recent activity. DJ30 +2.65 NASDAQ +0.89 SP500 +0.72 NASDAQ Adv/Vol/Dec 1427/1.32 bln/1237 NYSE Adv/Vol/Dec 1555/573 mln/1444

2:00 pm : All three major indices recently poked into positive territory, but the move was quickly rebuffed and stocks are back into their recent trading range, where they have spent most of the session trading with modest losses.

Despite the broader market's relative weakness, financials continue to trade with outsized gains. The sector is up 1.0%, just shy of its session high. Regional lenders (+2.3%) continue to provide leadership to the sector, but diversified services giants Citigroup (C 3.46, +0.04) and Bank of America (BAC 16.21, +0.33) are the two most actively traded names by volume in the sector. DJ30 -8.48 NASDAQ -2.04 SP500 -0.74 NASDAQ Adv/Vol/Dec 1344/1.19 bln/1296 NYSE Adv/Vol/Dec 1488/523 mln/1510

1:30 pm : Stocks continue to trade with mild losses in a rather narrow range. Treasuries have also had a rather quiet session of their own, largely unaffected by the latest round of auction results.

The $8 billion auction of 30-year TIPS attracted a yield of 2.23% with a bid-to-cover ratio of 2.45 and an indirect bid of 42.4%. Following the results, the 30-year Bond is down 13 ticks and is yielding 4.73%, while the benchmark 10-year Note is down five ticks and yielding 3.79%. DJ30 -13.98 NASDAQ -3.55 SP500 -1.20 NASDAQ Adv/Vol/Dec 1290/1.11 bln/1319 NYSE Adv/Vol/Dec 1441/487 mln/1543

1:00 pm : The stock market has been mired in negative territory for most of the session, but its overall loss remains moderate as technical support keeps the S&P 500 above its 50-day moving average and financials trade with strength.

Stocks started the session with a strong gain, but the advance quickly faded as participants reacted negatively to some of the details of President Obama's latest health care reform plan and as sellers pressured natural resource plays. Though materials stocks have bounced back, energy stocks continue to trade with considerable weakness. The sector is down 1.2% at the moment. Schlumberger (SLB 60.84, -3.06) is a primary laggard following news that it has agreed to a stock-for-stock merger with Smith International (SII 40.55, +2.85).

Another dose of merger and acquisition news has just surfaced. According to reports, Thermo Fisher Scientific (TMO 46.60, -2.62) has made a $6 billion bid for Millipore (MIL 89.82, +18.48). The news item has helped lift the stock market back toward the neutral line and to the top of its recent trading range.

However, there has been little follow through to the move as stocks appear challenged to push into positive territory. The hesitation comes as participants consolidate last week's gains, which made for the stock market's best weekly performance in three months.

Though the stock market's upside moves have been limited, downside action in the broader market has also been contained this session. Specifically, the S&P 500 has spent most of the session chopping along just above its 50-day moving average. The technical line has made for a formidable floor to today's action.

Financials have also offered a supportive boon to the broader market. The sector is up 1.0% at the moment. Regional banks (+2.3%) have been leaders in the sector. DJ30 -3.78 NASDAQ -1.97 SP500 -0.50 NASDAQ Adv/Vol/Dec 1314/1.02 bln/1280 NYSE Adv/Vol/Dec 1504/447 mln/1465

12:30 pm : Stocks have been chopping along in a rather narrow trading range that is just a couple of points below the flat line. The lack of overall direction comes as news flow has slowed considerably since this morning.

Though the broader market seems to be a bit stuck, airline stocks have ascended to a collective gain of 0.8%. Transportation stocks are also up solidly as the Dow Jones Transportation Index sports a 0.5% gain. DJ30 -20.25 NASDAQ -5.01 SP500 -2.20 NASDAQ Adv/Vol/Dec 1257/931 mln/1324 NYSE Adv/Vol/Dec 1393/407 mln/1544

12:00 pm : The stock market continues to chop along in negative territory with a moderate loss. Meanwhile, pressure has intensified against commodities, such that the CRB Commodity Index is down 0.7% to a fresh session low.

Gold is a primary source of weakness in the commodity complex. The precious metal had been up moderately in the early going, but it is now down to a 1.0% loss at $1110 per ounce.

With prices for gold bullion down considerably, gold stocks have dropped to a 1.8% loss. Newmont Mining (NEM 47.63, -0.91) is a primary laggard in the group. The ETF Market Vectors Gold Miners (GDX 43.39, -0.58) is also quite weak. DJ30 -15.64 NASDAQ -4.90 SP500 -2.24 NASDAQ Adv/Vol/Dec 1237/839 mln/1322 NYSE Adv/Vol/Dec 1384/371 mln/1546

11:30 am : Aside from financials (+0.9%), industrials (+0.1%) make up the only other sector to trade in positive territory. Industrials are currently led by conglomerate General Electric (GE 16.28, +0.11), which doesn't seem to be a direct subject of any major news item.

Despite widespread weakness in the broader market, losses are relatively contained in that the S&P 500 is down a mere 0.2% at the moment.

The dollar hasn't been as much of a factor this morning as it has in recent sessions. The dollar has spent most of the session trading with a fractional loss, but it recently turned that into a fractional gain. Its lack of clear direction has left many participants to dismiss it as a catalyst in today's trade. DJ30 -12.24 NASDAQ -3.59 SP500 -1.87 NASDAQ Adv/Vol/Dec 1251/732 mln/1296 NYSE Adv/Vol/Dec 1366/326 mln/1536

11:00 am : Stocks recently extended their morning slide amid news that President Obama has proposed for health care reform a tax on unearned income and a Hospital Insurance tax for high-income households. The stock market did manage to recover those losses as the S&P 500 bounced back to the neutral from the 1108 mark, which is the 50-day moving average for the S&P 500. However, stocks have started to roll over once more.

Energy continues to trade as the weakest performing sector. It is now down 1.2%, which is triple the loss of the 0.4% loss in the next worst performing sector (materials). Schlumberger (SLB 60.10, -3.80) remains a primary laggard in the group. It is currently on track for its worst single-session percentage loss in more than six months. Its slide follows news of its stock-for-stock merger with Smith International (SII 40.07, +2.37), which is presently a primary source of support for the energy sector. DJ30 -8.69 NASDAQ -0.89 SP500 -1.51 NASDAQ Adv/Vol/Dec 1298/628 mln/1218 NYSE Adv/Vol/Dec 1492/277 mln/1350

10:35 am : A recent spike in the US Dollar Index, which pushed it to a fresh session high at 80.667, sent most commodities into negative territory or further in the red. The Index has since pulled back slightly, which has pushed crude back in the black.

On the dollar's strength earlier, March crude oil pushed down below the $80 level, falling below the unchanged line to new morning lows of $79.45 per barrel. However, minutes ago crude spiked ~$0.50, pushing it back into positive territory to $79.90, up 0.1%. March natural gas has traded in negative territory all session so far and is trading just above recently hit lows of $4.874 per MMBtu. The energy component is the worst performing commodity in the CRB Commodity Index today, which is trading -1.73 at 276.07, while natural gas is trading just above morning lows at $4.892, down 3%.

After trading at or modestly above the flat line, precious metals dipped in the red due to strength in the dollar just after 8:30ET. However, the recent rally in the dollar pushed April gold and March silver notably lower and to fresh session lows of $1113.40 and $16.185 per ounce, respectively. Currently, gold is 0.6% lower at $1115.80 per ounce, while silver is 0.9% lower at $16.26 per ounce. DJ30 +5.97 NASDAQ +1.65 SP500 +0.11 NASDAQ Adv/Vol/Dec 1275/487.0 mln/1173 NYSE Adv/Vol/Dec 1572/212.5 mln/1239

10:00 am : Financials have extended their advance to a 0.8% gain. They remain this morning's best performing sector as PNC Financial (PNC 53.08, +1.38), Zions Bancorp (ZION 18.84, +0.40), and Huntington Bancorp (HBAN 4.95, +0.10) provide leadership.

Meanwhile, energy stocks have slid deeper so that they now trade with a 0.8% loss. Schlumberger (SLB 59.95, -3.95) is a primary laggard after the company announced a stock-for-stock merger with Smith International (SII 39.98, +2.28) that values shares of SII at a near 22% premium to the closing price of SII this past Friday.

Early movers: Trading up -- PACR +15.6%, SMI +13.4%, CHUX +11.2%, GPRE +9.7%, XNPT +9.3%, CAGC +7.4%, ASTC +7.4%, RWC +7.3%; Trading down -- VCI -8.2%, SLB -5.6%, IRE -5.3%, YGE -4.4%, SNMX -4.3%, UWBK -4.2%, HRB -4.2%, VITC -4%, VSH -3.9%, LDK -3.8%DJ30 +3.25 NASDAQ -1.68 SP500 -0.51 NASDAQ Adv/Vol/Dec 1127/273 mln/1189 NYSE Adv/Vol/Dec 1468/129 mln/1228

09:45 am : Despite what looked like the makings of a strong start, the stock market has slipped in the first few minutes of action. Natural resource plays, which have frequently been among the best performers in recent weeks, are primary sources of weakness at the moment. As such, materials stocks and energy stocks are leading the early slide with respective losses of 0.7% and 0.6%.

Financials are relatively strong, though. The sector is up 0.4% as regional bank stocks and diversified bank stocks make their way to early gains of 1.3% and 1.0%, respectively. DJ30 -7.78 NASDAQ -0.58 SP500 -0.81 NASDAQ Adv/Vol/Dec 1109/156 mln/1132 NYSE Adv/Vol/Dec 1373/86 mln/1246

09:15 am : S&P futures vs fair value: +2.80. Nasdaq futures vs fair value: +6.80. This morning's news flow has been full of industry-specific headlines, which range from a stock-for-stock merger between oil services outfits Schlumberger (SLB) and Smith International (SII) to the recommended market removal of a GlaxoSmithKlein (GSK) diabetes drug to a mixed quarterly report from home improvement retailer Lowe's (LOW), but stock futures suggest participants are still willing to lend their support to the broader market. Such support is expected to help the stock market build upon last week's gains, which came together for a 3.1% weekly gain, which was the stock market's best weekly performance since early November. The advance has put stocks back in touch with their 50-day moving average and just a few percentage points away from their 52-week highs.

09:05 am : S&P futures vs fair value: +2.70. Nasdaq futures vs fair value: +7.50. The Dollar Index continues to chop along with a fractional loss. Its weakness has helped oil and gold prices. As such, oil was last quoted at $80.05 per barrel, up 0.3% in the opening moments of pit trade. Meanwhile, gold prices are up 0.3% to $1124.70 per ounce. Despite the relative strength of oil and gold, the broader CRB Commodity Index is down 0.2% after it logged a multiweek high and closed above its 50-day moving average this past Friday.

08:35 am : S&P futures vs fair value: +2.60. Nasdaq futures vs fair value: +6.00. U.S. stock futures have pulled back from their morning highs, but they continue to point to a higher start for the session. In Europe, gains are rather limited in scope. Germany's DAX is up 0.2%. Allianz (AZ) is a primary source of support, but Daimler (DAI) is down considerably. Meanwhile, France's CAC is also up 0.2%. Financial outfits BNP Paribas and Societe Generale have exhibited strength, but their gains have been somewhat offset by declining issues in the broader market. In Britain, the FTSE is up 0.3% as its own financial giants, HSBC (HBC) and Barclays (BCS), provide support. Natural resource plays Rio Tinto (RTP) and BP PLC (BP) have also shown leadership. GlaxoSmithKline (GSK) is a laggard following recommended recalls for its diabetes drug Avandia. In Asia, the MSCI Asia Pacific Index advanced 2.5% and Japan's Nikkei added 2.7%. Takeda Pharmaceutical was among the advancers after safety reviewers recommended GlaxoSmithKline diabetes drug Avandia be pulled from the market. Bridgestone was helped by its surge in quarterly profit, though it forecast slower-than-expected growth. Resource-linked shares gained after oil prices climbed to a six-week high. Hong Kong's Hang Seng finished with a 2.4% gain. According to The Wall Street Journal, China's banking regulator has called on banks to prudently manage their lending and has put in place rules aimed at ensuring that loans to individuals and businesses are used properly. Trading volume, however, remained low. Nonetheless, HSBC Holdings (HBC) spiked and Commercial Bank of China also gained. Mainland China's Shanghai Composite shed 0.5% after it returned from holiday.

08:05 am : S&P futures vs fair value: +3.90. Nasdaq futures vs fair value: +7.80. Broad market stock futures currently point to a higher start for the session. Their relative strength has come amid continued fluctuations in the greenback, which is currently down fractionally against a basket of foreign currencies. Headlines about aid for Greece continue to hit newswires, but action has still yet to occur. On a related note, Europe's major bourses are currently flat, but Asia's headline indices put together an impressive session. Corporate news flow has been varied as home improvment retailer Lowe's (LOW) posts a positive earnings surprise, but issues downside guidance for its first fiscal quarter, while Schlumberger (SLB) and Smith International (SII) have agreed to merge in a stock-for-stock transaction that will award SII holders roughly 0.7 shares of SLB for each SII share; the merger values each SII share at $45.84 each, a near 22% premium to SII's closing price this past Friday. On the regulatory side of things, President Obama is expected to propose giving federal powers control to limit rate increases by insurers, according to the Associated Press. There is no economic data of consequence due this morning.

Please note that earlier we indicated that Fed Chairman Bernanke will appear before the House Financial Services Committee hearing on whether additional stimulus is needed for employment growth prospects at 11:00 AM ET, but this is not the case. Rather, the Committee's meeting on this matter will be tomorrow and Bernanke is not scheduled to offer any testimonies until Wednesday in a speech about monetary policy and the state of the economy, according to the latest schedule from the House Financial Services Committee.

06:54 am : S&P futures vs fair value: -0.30. Nasdaq futures vs fair value: +3.30.

06:54 am : Nikkei...10400.47...+276.90...+2.70%. Hang Seng...20377.27...+483.30...+2.40%.

06:54 am : FTSE...5363.36...+5.20...+0.10%. DAX...5711.38...-10.70...-0.20%.

Special thanks to Yahoo! Finance and CNNMoney for their market summaries. gm

Best Regards,
M.A. Perry
Trader and Founder of WRB Analysis (wide range body analysis)

Phone: +1 708 572-4885
Business Hours: 8am - 5pm est (Mon - Fri)
Skype Messenger: kebec2002
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