TheStrategyLab.com Price Action Trading Support Forum

Trade Results of M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
Price Action Trading (no technical indicators)


click on the above image to view today's performance verification

Trade Performance for Today: +14.10 points or $1410 dollars in the Russell 2000 Emini TF ($TF_F) Futures.
Russell 2000 Emini TF Futures - 1 tick or 0.10 = $10.00 dollars and there's more contract information @ The ICE.
S&P 500 Emini ES Futures - 1 tick or 0.25 = $12.50 dollars and there's more contract information @ CMEGroup.

In addition, all trades were posted real-time in the free #FuturesTrades chat room. Today's #FuturesTrades trading chat room logs provides details (e.g. time, price, contract size) about each one of my trades from entry to exit along with price action commentary as the trade traversed...all archived @ http://www.thestrategylab.com/ftchat/forum/viewtopic.php?f=98&t=1076.

To join our free chat room...registration instructions located at a different forum @ http://www.thestrategylab.com/ftchat/forum/viewtopic.php?f=5&t=630

Also, posted below are direct links to information about my trade methodology and trading plan (there's a difference between the two) 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/bar analysis).

WRB Analysis Tutorials @ http://www.thestrategylab.com/WRBAnalysisTutorials.htm and there's a free study guide of the WRB Analysis Tutorial Chapters 1, 2 and 3 @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=119&t=718.

Volatility Trading Report (VTR) @ http://www.thestrategylab.com/VolatilityTrading.htm and there's a free trade signal strategy @ http://www.thestrategylab.com/tsl/forum/viewforum.php?f=89 so that you can freely test drive one of our trade strategies with support prior to purchasing the Volatility Trading Report (VTR).

Trading Plan Daily Routine @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=146&t=1312

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Market Summaries

The below summaries by Bloomberg, CNNMoney and Yahoo! Finance helps me to do a quick review of the fundamentals, FED/ECB/IMF actions or any important global economic events that had an impact on today's price action. Simply, I'm a strong believer that many variables (key market events) causes key changes in supply/demand and volatility that results in swing points and strong continuation price actions. Thus, I pay attention to these key market events from one trade to the next trade to give me the market context for my technical analysis. Just as important, these summaries becomes my archives to allow me to understand what was happening on any given trading day in the past...something I can not get from my broker statements alone.

U.S. Stocks Rise on Hopes Europe Will Act on Crisis

Dec. 6 (Bloomberg) -- Bloomberg's Deborah Kostroun reports on the performance of the U.S. equity market today. U.S. stocks rose, sending the Standard & Poor's 500 Index higher a second day, on speculation European leaders may act to contain the debt crisis after S&P put 15 euro nations on review for possible downgrade.

Dow Posts Gains On Hopes For Euro Bazooka


click on the above image to view today's price action of key markets

NEW YORK (CNNMoney) -- U.S. stocks ended mostly higher Tuesday as investors remain optimistic that a lasting solution to the eurozone debt crisis will be announced this week.

The Dow Jones industrial average (INDU) rose 52 points, or 0.4%, to close at 12,150. The S&P 500 (SPX) rose 1 point, or 0.1%, to end at 1,258. But the Nasdaq (COMP) fell 6 points, or 0.2%, to 2,649.

The Dow's gains accelerated after Financial Times said European officials are working on a last-minute proposal to combine the resources of an existing bailout fund with one that is planned for next year to create the financial "bazooka" that investors have been calling for.

According to the FT, officials are considering allowing the €440 billion European Financial Stability Facility to continue running alongside the €500 billion European Stability Mechanism, which comes on line next year. In addition, the funds could be further supplemented by contributions from eurozone nations to the IMF, the report said.

The report boosted hopes that European Union leaders will announce both short-term and long-term solutions to the eurozone debt crisis at a summit later this week.

"It's clear that policy makers understand that the markets are not going to wait for the normal schedule," said Quincy Krosby, market strategist at Prudential Financial. "There's a sense that they're moving in the right direction."

The leaders of France and Germany agreed Monday on a new pact that they say will help enforce fiscal discipline and prevent a future debt crisis.

Meanwhile, the European Central Bank is widely expected to cut interest rates at its policy meeting Thursday.

Earlier, investors had been focused on a warning from Standard & Poor's late Monday on European debt. The credit rating agency said it placed 15 eurozone nations, including Germany and France, on review for a possible downgrade.

* S&P to Europe: The time is now ... as in this week!

Some investors said the warning provides extra incentive for EU policy makers to announce a forceful solution this week. But others added that a downgrade of one of the larger eurozone nations could lead to a renewed bout of market chaos.

Ryan Larson, a senior equity trader at RBC Global Asset Management, said investors will continue to trade headlines out of Europe ahead of meetings on Thursday and Friday.

"The headlines are beginning to become more constructive in terms of EU leaders getting their act together to solve the crisis," he said. "If this actually comes to fruition, it could be something very good."

* Video - Origins of the euro crisis

World markets: European stocks ended mostly lower. Britain's FTSE 100 (UKX) was flat, the DAX (DAX) in Germany lost 1.3% and France's CAC 40 (CAC40) shed 0.7%.

On Tuesday, the European statistics agency, Eurostat, estimated that eurozone economy grew 0.2% in the third quarter.

* World markets: 'Calm before the storm'

Asian markets ended lower. The Shanghai Composite (SHCOMP) slipped 0.3%, the Hang Seng (HSI) in Hong Kong lost 1.2% and Japan's Nikkei (N225) dropped 1.4%.

The Reserve Bank of Australia lowered its benchmark interest rate to 4.25% from 4.5%, citing a worsening outlook for the global economy.

Companies: Shares of Darden Restaurants (DRI, Fortune 500) plunged 12% after the company, which operates Red Lobster, Olive Garden and Longhorn Steakhouse chains, issued a dour outlook for the quarter and fiscal year.

Shares of Taiwanese phone maker HTC were sharply lower ahead of a ruling on a key Apple patent suit. On Tuesday, a six-member panel at the International Trade Commission in Washington will rule on whether HTC's phones have violated two Apple (AAPL, Fortune 500) patents.

Halliburton (HAL, Fortune 500) sank 4% after BP filed a lawsuit Monday alleging that Halliburton "intentionally destroyed evidence" related to the explosion aboard an oil rig in the Gulf of Mexico that led to the worst oil spill in U.S. history.

Metro PCS (PCS) shares jumped 7% after the company's chief executive reportedly said there has been a "very significant" reduction in the number of customers leaving the pay-as-you-go wireless carrier.

Currencies and commodities: The dollar gained strength against the euro, but fell versus the euro and the Japanese yen.

Oil for January delivery rose 21 cents to $101.20 a barrel.

Gold futures for February delivery fell $2.70 to $1,731.80 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury eased slightly, with the yield holding edging up to 2.08%.



Market Update

4:30 pm : Stocks spent the better part of the session bobbing along the neutral line before a bout of buying interest induced a broad market bounce, but that move was ultimately countered by sellers.

An absence of economic data and material corporate announcement kept stocks close to the flat line for most of the session, at least until word surfaced that officials in Europe are considering an increase in the size of proposed firewalls. Stocks responded to the report by bouncing to a solid gain.

However, a lack of leadership left stocks unable to resist the late efforts of sellers, who were successful in sending the broad market back near the neutral line. The Dow did manage to hold on for a modest gain, thanks to strength among a few blue chips. The Nasdaq ultimately settled in the red after it had lagged all session.

Neither the dollar nor the euro did much today. As such, both finished flat.

Commodities managed to overcome early weakness, resulting in a 0.2% gain for the CRB Index. Silver led the effort by rallying to just above $32.75 per ounce for a gain greater than 1% after the precious metal had been down about 2% in early pit trade.

The lack of trading catalysts kept many on the sidelines, resulting paltry trading volume. Participation is likely to remain depressed tomorrow, given that the economic calendar remains without meaningful data. That will likely keep many focused on an upcoming announcement from the European Central Bank and the outcome of a eurozone summit.

Advancing Sectors: Materials +0.8%, Health Care +0.5%, Telecom +0.3%, Consumer Staples +0.2%, Utilities +0.2%, Industrials +0.2%, Energy +0.1%
Unchanged: Tech
Declining Sectors: Financials -0.1%, Consumer Discretionary -0.2%DJ30 +52.30 NASDAQ -6.20 NQ100 -0.2% R2K +0.00% SP400 -0.3% SP500 +1.39 NASDAQ Adv/Vol/Dec 1094/1.49 bln/1409 NYSE Adv/Vol/Dec 1505/802 mln/1488

3:30 pm : It was a relatively quiet session for commodities today, although precious metals rallied throughout the latter portion of the session, recouping morning losses in the process. Gold, which ended lower by 0.2% at $1730.90 per ounce, came just shy of the unchanged mark and its session high of $1732.50. Silver futures, which closed a dime shy of its session high with a 1.2% gain at $32.77 per ounce, pushed into positive territory after they had been down about 2% this morning.

Crude oil closed up 0.3% at $101.28 per barrel after the energy component erased modest morning losses. Natural gas booked a 0.2% gain by finishing at $3.48 per MMBtu, shy of its session high of $3.51 per MMBtu, after through morning selling pressure. DJ30 +87.87 NASDAQ -0.92 SP500 +5.39 NASDAQ Adv/Vol/Dec 1260/1.10 bln/1235 NYSE Adv/Vol/Dec 1755/505 mln/1225

3:00 pm : After going the duration of the trading day without any reports regarding the status of efforts to shore up conditions in Europe, market participants are now reacting to word that officials there are considering an increase in the size of proposed firewalls. The strong response among traders has squeezed stocks up to session highs, even helping the Nasdaq poke back into positive territory.DJ30 +104.97 NASDAQ +4.06 SP500 +7.32 NASDAQ Adv/Vol/Dec 1175/1.00 bln/1315 NYSE Adv/Vol/Dec 1625/465 mln/1335

2:30 pm : Stocks continue to slog along. The lack of direction has made for an unexciting session of trade. Aside from some volatility in the early going, the market has mostly muddled along today.

Without anything to drive trade, many participants have opted to remain on the sidelines. In turn, share volume this session has been paltry. DJ30 +68.52 NASDAQ -8.25 SP500 +2.40 NASDAQ Adv/Vol/Dec 995/890 mln/1485 NYSE Adv/Vol/Dec 1300/410 mln/1635

2:00 pm : Stocks have been unable to build on their latest bounce. The inability to move higher comes back to the fact that stocks have been without true leadership all session.

With stocks doing so little, Treasuries have been confined to a tight trading range of their own. In turn, the benchmark 10-year Note is barely changed, keeping its yield just above 2.05%. DJ30 +50.74 NASDAQ -8.82 SP500 +0.67 NASDAQ Adv/Vol/Dec 1015/810 mln/1435 NYSE Adv/Vol/Dec 1375/375 mln/1565

1:30 pm : Stocks recently got some help from buyers, who recently engaged in a sudden flurry of buying. Stocks still aren't up by very much, but the S&P 500 is at its best level since this morning and the Dow is at its best level of the day. There is no headline to account for the move.DJ30 +64.62 NASDAQ -6.15 SP500 +2.01 NASDAQ Adv/Vol/Dec 830/725 mln/1605 NYSE Adv/Vol/Dec 1165/340 mln/1775

1:00 pm : Action has been choppy and lackluster all session. The listlessness comes on a day without any legitimate catalysts.

Stocks have been left to find their own way today since participants have been without common cues like economic data, material corporate reports, or news on the latest developments in the eurozne. The lack of direction has kept the broad market close to the neutral line all session.

Tech stocks, collectively the largest sector by market weight, have failed to offer leadership today. The sector tried to fend off sellers in the early going, but has since drifted down to a modest loss of 0.3%. The always-influential financial sector has improved its position following an opening slump, but the sector is still down 0.4%.

Defensive plays like consumer staples, telecom, health care, and utilities have mustered modest gains in the face of muddled action throughout the rest of the market.

The dollar has also spent the better part of the day dancing along the neutral line. As such, it remains unchanged against a collection of competing currencies.

Commodities are generally mixed after a weak morning. That has helped the CRB Index move up to the flat line following an early loss. DJ30 +40.75 NASDAQ -11.54 SP500 -0.29 NASDAQ Adv/Vol/Dec 800/680 mln/1625 NYSE Adv/Vol/Dec 1175/320 mln/1755

12:30 pm : The broad market continues to trade flat, helped by consumer staples stocks (+0.2%) and health care stocks (+0.3%), but weakened by tech (-0.3%) and financials (-0.3%). However, the Dow has managed to muster a modest gain with help from blue chips like General Electric (GE 16.69, +0.36) and Pfizer (PFE 20.24, +0.40), whereas the Nasdaq has been undercut by heavyweights like Google (GOOG 622.84, -2.81) and Amazon.com (AMZN 192.61, -3.63).DJ30 +39.09 NASDAQ -13.07 SP500 -0.73 NASDAQ Adv/Vol/Dec 790/605 mln/1625 NYSE Adv/Vol/Dec 1110/285 mln/1795

12:00 pm : Stocks have benefited from a recent flurry of buying interest, but there hasn't been much follow through. In turn, the major averages continue to trade in mixed fashion. The lack of corporate news, data, and announcements from the precarious eurozone has left stocks to listlessly chop along without any real direction.DJ30 +41.51 NASDAQ -10.25 SP500 -0.12 NASDAQ Adv/Vol/Dec 700/505 mln/1680 NYSE Adv/Vol/Dec 915/240 mln/1975

11:30 am : Europe's major bourses are in the process of settling their latest session. Action there was mostly muddled and without leadership, leaving most of the region's major bourses to book varied losses.

As for domestic markets, the Dow and Nasdaq are divided between positive and negative territory, respectively, while the S&P 500 trades near the neutral line. DJ30 +29.55 NASDAQ -10.05 SP500 -1.38 NASDAQ Adv/Vol/Dec 795/445 mln/1555 NYSE Adv/Vol/Dec 1055/215 mln/1805

11:00 am : Stocks are stuck in choppy trade. The action has left the major averages in mixed condition. The lack of direction comes in conjunction with the market's lack of leadership.

Tech stocks appeared as if they had the potential to lead during the early going, but the sector has since balked, causing it to slip to a slight loss. Tech stocks collectively make up the largest sector by market weight. The always-influential financial sector is up from its session low, but has thus far been unable to fully shake free from the hold of sellers. DJ30 +33.60 NASDAQ -8.28 SP500 -0.74 NASDAQ Adv/Vol/Dec 840/325 mln/1425 NYSE Adv/Vol/Dec 1240/160 mln/1555

10:30 am : Commodities continue to trade with weakness, keeping the CRB Index in negative territory with a 0.3% loss.

Among the more closely tracked commodities, oil prices are down 0.3% to $100.70 per barrel, which is up slightly from where they started pit trade. Natural gas prices have come under increased selling pressure, causing the energy component to slip to $3.45 per MMBtu for a 0.4% loss.

Precious metals are in even poorer shape. Specifically, gold prices are down 1.2% at $1714 per ounce, while silver prices trade at $31.94 per ounce for a 1.3% loss. Silver was actually down about 2% a couple of hours ago, though. DJ30 +57.29 NASDAQ +1.92 SP500 +3.25 NASDAQ Adv/Vol/Dec 710/218 mln/1470 NYSE Adv/Vol/Dec 930/117 mln/1780

10:00 am : Stocks have managed to reverse an opening slip so that they have moved back into positive territory, although gains are only limited.

Financials, which dropped to a loss in excess of 1% in the opening minutes, have managed to cut losses in half, but they remain the poorest performers of the early going. Tech stocks have pushed off of the flat line to a 0.3% gain. Health care stocks are tied with tech to make up the the two best performing sectors of stocks. DJ30 +24.52 NASDAQ +1.82 SP500 +0.17 NASDAQ Adv/Vol/Dec 600/125 mln/1535 NYSE Adv/Vol/Dec 725/75 mln/1945

09:45 am : Stocks made a brief attempt to lift off of the open, but that move was quickly checked by sellers. Stocks have slid into negative territory as a result.

Financials are a primary source of early weakness. The sector has already descended to a loss of more than 1%. Tech is trying to resist efforts to take the sector lower; so far the tech sector has managed to find support at the flat line. DJ30 -11.92 NASDAQ -3.69 SP500 -2.56 NASDAQ Adv/Vol/Dec NA/NA/NA NYSE Adv/Vol/Dec NA/NA/NA

09:15 am : S&P futures vs fair value: +0.50. Nasdaq futures vs fair value: +4.40. Stock futures are up only narrowly ahead of the open. Although support is modest, it comes even though most major averages abroad have been bogged down by selling pressure. As a measure of protection, some participants are rotating back into the dollar. That has the greenback up by a slight margin against a collection of competing currencies. Meanwhile, many commodities have been clipped this morning, leaving the CRB Index to trade with a modest loss, but oil prices have managed to improve their position in recent trade so that the energy component is now at $100.70 per barrel for a 0.3% loss. News flow has been slow this morning, so barring any unforeseen announcements stocks and other asset classes will be largely left to trade under their own volition.

09:05 am : S&P futures vs fair value: -0.60. Nasdaq futures vs fair value: +2.20. Commodities are encountering selling pressure this morning. The action has taken oil prices down to $100.25 per barrel, which makes for a 0.7% loss. Natural gas prices are down 0.1% to $3.46 per MMBtu. Among precious metals, gold prices are down 1.4% to $1710.90 per ounce, while silver contends with a 2.0% loss at $31.74 per ounce. Overall weakness in the commodity complex has the CRB Index down 0.4%.

08:35 am : S&P futures vs fair value: -1.90. Nasdaq futures vs fair value: -0.10. Domestic stock futures continue to dance along the neutral line. Meanwhile, Europe's major bourses are responding to the announcement yesterday that analysts at S&P are reviewing ratings on many of the eurozone members, including top-rated countries. France's CAC has fallen to a 0.6% loss, led lower tonight by Carrefour, Credit Agricole, and Alcatel-Lucent (ALU 1.60, -0.08). Germany's DAX is down 1.0%. Metro AG is in especially weak shape as it contends with a 10% loss. Adidas and Allianz are offering support, though. Britain's FTSE has managed to muster a 0.2% gain. Lloyds Group (LYG 1.69, +0.04) and Royal Bank of Scotland (RBS 7.20, +0.09) are offering leadership for the second straight session, but their efforts have been undermined by weakness in shares of Admiral Group and Fresnillo Plc.

Overnight action in Asia was weak. As such, Japan's Nikkei tumbled to a 1.4% loss. Yamaha Corp and Sumco Corp were among the poorest performers. Shinsei Bank and Fuji Heavy Equipment also encountered pointed selling pressure. The number of advancing issues was limited to only a handful of names, but Olympus managed to rally in the face of the widespread weakness. Hong Kong's Hang Seng slid 1.2%. Property plays and real estate issues were among those with the weakest showing. The Shanghai Composite closed with a 0.3% loss. Although that was a much softer slide than what either of the other two major Asian averages experienced, it came after the Composite had already suffered a steep loss in the prior session, when its two counterparts bounced.

Note: All ticker quotes reflect pre-market prices.

08:05 am : S&P futures vs fair value: +0.60. Nasdaq futures vs fair value: +2.20. Stocks futures are displaying only modest strength this morning. The tepid tone comes after stocks scored a solid gain in the prior session, although the wind had been knocked out of the broad market by news that analysts at S&P are reviewing ratings on several eurozone countries. Neither Europe nor Asia was open for trade when that announcement was made. The latest round of action in Europe has been mostly muddled. Overnight action in Asia was generally weak. Corporate news flow is light this morning and there is no domestic data of consequence due today.

06:46 am : [BRIEFING.COM] S&P futures vs fair value: +2.20. Nasdaq futures vs fair value: +9.90.

06:45 am : Nikkei...8575.16...-120.80...-1.40%. Hang Seng...18942.23...-237.50...-1.20%.

06:45 am : FTSE...5575.70...+7.70...-0.10%. DAX...6068.46...-37.60...-0.60%.

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

Best Regards,
M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
Price Action Trading (no technical indicators)
@ http://twitter.com/wrbtrader and http://stocktwits.com/wrbtrader

Phone: +1.708.572.4885
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