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)
Phone: +1 708 572-4885
Free Chat Room: http://www.thestrategylab.com/tsl/forum/viewforum.php?f=164
Business Hours: 8am - 5pm est (Mon - Fri)
questions@thestrategylab.com (24/7)
http://twitter.com/wrbtrader (24/7)


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

Price Action Trade Performance for Today: Emini TF ($TF_F) futures @ $1,700.00 dollars or +17.00 points, Emini ES ($ES_F) futures @ $1,037.50 dollars or +20.75 points, Light Crude Oil CL ($CL_F) futures @ $0.00 dollars or +0.00 points, Gold GC ($GC_F) futures @ $0.00 dollars or +0.00 points and EuroFX 6E ($6E_F) futures @ $0.00 dollars or +0.0000 ticks. Total Profit @ $2,737.50 dollars.

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
Light Crude Oil CL (WTI) Futures: 1 tick or 0.01 = $10.00 dollars and there's more contract information @ CMEGroup
Gold GC Futures: 1 tick or 0.10 = $10.00 dollars and there's more contract information @ CMEGroup
EuroFX 6E Futures: 1 tick or 0.0001 = $12.50 dollars and there's more contract information @ CMEGroup

In addition, all of my trades were posted real-time in the chat room. You can read today's chat room logs for details about each one of my trades via price action trading from entry to exit (e.g. time, price, contract size) along with price action commentary as the trade traversed to its completion...all archived @ http://www.thestrategylab.com/ftchat/forum/viewtopic.php?f=123&t=1652

Also, posted below are direct links to information about my price action 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). I'm primarily a day trader because it suits my personal lifestyle but I do occasionally swing trade and position trade. Simply, my trade method is applicable for position trading, swing trading and day trading.

Price Action Analysis via 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

Trade Signal Strategies via 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 price action 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=223&t=2061

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Market Context Summaries

The below summaries by Bloomberg, CNNMoney, Reuters and Yahoo! Finance helps me to do a quick review of the fundamentals, FED/ECB/BOE/IMF actions or any important global economic events (e.g. Eurozone, MarketWatch.com) that had an impact on today's price action in many trading instruments I monitor during the trading day. Simply, I'm a strong believer that key market events causes key changes in supply/demand and volatility resulting in trade opportunities (swing points and strong continuation price actions) that reach profit targets. Thus, I pay attention to these key market events, intermarket analysis (e.g. Forex EurUsd, EuroFX 6E futures, Gold GC futures, Light Crude Oil (WTI) CL & Brent Oil futures, Eurex DAX futures, Euronext FTSE100 futures, Emini ES futures, Emini TF futures, Treasury ZB futures and U.S. Dollar Index futures) while using WRB Analysis from one trade to the next trade to give me the market context for price action trading before the appearance of my technical analysis trade signals. Therefore, I maintain these archives to allow me to understand what was happening on any given trading day in the past involving key market events to help better understand my trade decisions (day trading, swing trading, position trading)...something I can not get from my broker statements alone.

Dow Can't Hold On To 16,000


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

NEW YORK (CNNMoney)
The Dow Jones industrial average topped 16,000 for the first time ever Monday, while the S&P 500 briefly surpassed 1,800. But neither indexes closed above those milestones.

The Dow rose to an all-time high of 16,040.20 but pulled back as the day wore on. The S&P 500 rose to a record of 1,802.37 but finished the day lower.

The Nasdaq fell 1% Monday, but it too is on the verge of a milestone. The tech-heavy index is nearing 4,000, a level it hasn't hit since September 2000 -- just months after the tech market collapsed.

Stocks lost momentum in afternoon trading after Carl Icahn said he is "very cautious" on the stock market going forward. Speaking at the Reuters Global Investment Outlook summit, the billionaire activist investor said he could see a "big drop" in stocks. Icahn blamed earnings for his downbeat outlook, nothing that companies are boosting profits thanks to low borrowing costs instead of strong management.

Still, the Dow and S&P 500 are up more than 20% so far in 2013.

Experts say that this year's roaring bull market is due largely to stimulative monetary policies from the Federal Reserve as well as decent corporate earnings.

Investors will be keeping a close eye on the Fed in particular during the coming months. Current Fed chairman Ben Bernanke, the architect of the central bank's bond purchase program, will leave that role when his term expires at the end of January. Bernanke is likely to be replaced by Fed vice chair Janet Yellen, who just needs to be confirmed by the Senate.

The market has been encouraged by comments from Yellen during her Senate confirmation hearing last week about how the Fed's policies, particularly the $85-billion-per-month bond-buying program, can continue to help the market and economy.

But ultimately, Yellen is expected to scale back, or taper, the bond buying program at some point next year, raising questions about how much longer the nearly 5-year old bull market can last. In fact, there are some traders who think it's possible the Fed could announce it will begin tapering following its next policy meeting in December.

StockTwits user Learnstocks101 quipped, "$SPY What happens if Ben yells 'taper' in a crowded bull market?"

When Bernanke first hinted at tapering in May, the S&P 500 tumbled 6% over the subsequent four weeks. But stocks have since rallied back.

"$SPY, The only fear in this market is the fear to actually sell a stock and miss out on the greed," noted Hoyasparanoia. "Dangerous!"

* What will keep the rally going?

Are stocks overvalued? The big gains in stocks have also raised concerns about whether stocks may be in a bubble.

According to FactSet, the S&P 500 is trading at 15 times earnings expectations for the next 12 months. That puts the valuation of the stock market slightly above its 5-year and 10-year average.

A slightly different measurement also shows that stocks aren't overvalued. The S&P 500 is trading at 17 times earnings from last year, just slightly above the historical average of 16, according to Bank of America Merrill Lynch. In the bubble days of 2000, the index was trading at nearly 30 times trailing earnings.

Whether or not stocks are in a bubble, experts aren't expecting the robust gains from this year to keep coming.

Historically, when the market has advanced more than 25% in a year, that gain has been followed by a rise of no more than 10% the year after, said William Riegel, head of equity investments at TIAA-CREF.

* Video - Dow 16,000? Who cares!

What's moving: Boeing (BA, Fortune 500) shares rose Monday after the aircraft maker said it sold more than $95 billion of its new 777X at the Dubai air show. Boeing said it was a record launch for a new aircraft and was far more than analysts had been forecasting. Boeing has been the biggest gainer in the Dow this year, soaring more than 85%.

Tesla (TSLA) shares dropped 10% Monday, extending the slide that began last month. A series of battery fires have triggered a nearly 40% plunge in shares of Tesla since early October. Still, the stock is up almost 270% so far this year.

Following such a huge rise, StockTwits user jamesb13 said "$TSLA hype is over for now," and predicted that the stock price may on its way down to below $100 per share. It ended below $122 Monday.

Trader damnmaxims pointed out that even Tesla CEO Elon Musk has been saying that his company's stock price had been higher than it had "any right to deserve."

"$TSLA Well Elon Musk himself called this in a very kindly worded way," he said.

Even if Tesla shares do drop sharply lower, sogenerous said it could make a comeback like Netflix (NFLX), which has soared more than 270% this year, making it the best performing stock in the S&P 500.

"$TSLA even if it it ever goes to 70-80, it will be just like $NFLX and come back to 200+ easy money," he said.

Sony (SNE) shares rose after the company said it sold more than 1 million units of its new PlayStation 4 gaming console in the first 24 hours since the game console went on sale early Friday. The game system is Sony's first in seven years and is going head-to-head with Microsoft's upcoming Xbox One this holiday season. Shares of Microsoft (MSFT, Fortune 500) slipped.

* Why China wants to dominate Bitcoin

Bitcoin price surges: While stocks continued to soar, so did Bitcoin. The price of the digital currency touched an all-time high above $675 Monday, up almost 30% from Friday's closing price of $528.32.

Since the start of October, the price of Bitcoin has more than quadrupled in value.

The latest surge has been fueled by the interest of new investors, especially those in China, who are becoming increasingly optimistic about the digital currency's potential growth.





4:10 pm : The major averages ended the first session of the week on a mixed note as the S&P 500 lost 0.4% while the Dow added 0.1%. The Nasdaq underperformed with a loss of 0.9% as momentum names lagged once again.

Not counting the first 30 minutes or the final hour, the S&P 500 spent the session inside of a two-point range just above its flat line. The benchmark index made a couple appearances above the 1,800 level, but was unable to end above that mark. Meanwhile, the Dow spent the bulk of the session north of 16,000, but settled almost 15 points below that level.

Stocks tumbled to fresh lows during the last hour of action amid comments from activist investor Carl Icahn who said he is 'very cautious' with regard to equities and could see a 'big drop.' Mr. Icahn cited earnings driven by low interest rates as the reason for his views.

The Dow ended just above its flat line after outperforming throughout the session. Boeing (BA 138.36, +2.28) provided support after the company received orders for new jets. In addition, Goldman Sachs (GS 165.68, +1.28) and JPMorgan Chase (JPM 55.74, +0.87) also underpinned the index. In turn, the outperformance of these names translated into relative strength for their respective sectors as financials (-0.1%) and industrials (+0.2%) were the only two cyclical groups to end ahead of the S&P.

On the flip side, energy (-0.7%) and materials (-0.7%) were pressured by the underlying commodities. Crude oil tumbled 0.9% to $93.02/bbl after surrendering its slim morning advance. Meanwhile, gold (-1.2%, $1272.50/ozt) and copper (-0.7%, $3.149/lb) futures also ended on their lows.

Elsewhere, the Nasdaq was pressured by several momentum names as Facebook (FB 45.83, -3.18), LinkedIn (LNKD 222.07, -8.99), Priceline.com (PCLN 1127.93, -11.60), and Tesla (TSLA 121.58, -13.87) lost between 1.0% and 10.2%. A handful of top components also weighed as Apple (AAPL 518.63, -6.36) lost 1.2% and Microsoft (MSFT 37.20, -0.64) fell 1.7% after receiving a downgrade from Bank of America/Merrill Lynch.

Treasuries settled on their highs with the 10-yr yield down four basis points at 2.66%.

Today's participation was well below average as just over 650 million shares changed hands on the floor of the NYSE.

On the Fedspeak circuit, Philadelphia Fed President Charles Plosser said the FOMC missed an 'excellent opportunity' to begin the tapering process by not reducing the size of its asset purchases in September. Mr. Plosser went on to say he would have preferred a fixed amount for quantitative easing instead of an open-ended program. While Mr. Plosser does not have a vote on the board this year, he will be a voting member in 2014.

Today's economic data was limited to just two items. The September net long-term TIC flows report indicated an $8.9 billion outflow of foreign capital from U.S. denominated assets. This followed the prior month's $8.9 billion outflow.

Separately, the November NAHB Housing Market Index checked in at 54, which was below the Briefing.com consensus estimate of 55 and unchanged from the downwardly revised (from 55) October reading.

Tomorrow, the third quarter employment cost index will be reported at 8:30 ET.

Nasdaq +30.8% YTD
Russell 2000 +30.4% YTD
S&P 500 +25.6% YTD
DJIA +21.9% YTD

DJ30 +14.32 NASDAQ -36.90 SP500 -6.65 NASDAQ Adv/Vol/Dec 944/1.77 bln/1637 NYSE Adv/Vol/Dec 1194/655.7 mln/1844

3:30 pm :

Dec crude oil erased earlier gains as it fell into negative territory after slipping from its session high of $94.29 per barrel. It brushed a session low of $92.72 per barrels and settled with a 0.9% loss at $93.02 per barrel.
Dec natural gas chopped around slightly above the unchanged line for most of today's session after pulling back from its session high of $3.70 per MMBtu set in morning pit trade. However, it slid into negative territory in the last half hour of floor trade and settled 1.1% lower at $3.62 per MMBtu.
Precious metals traded in negative territory despite a weaker dollar index.
Dec gold fell for the first time in three sessions, pulling back from its session high of $1284.60 per ounce. It eventually settled at $1272.40 per ounce, or 1.2% lower.
Dec silver dipped to a session low of $20.29 per ounce after trading as high as $20.68 per ounce earlier in the session. Unable to gain much momentum, it settled with a 1.9% loss at $20.35 per ounce.

DJ30 -6.30 NASDAQ -38.54 SP500 -8.22 NASDAQ Adv/Vol/Dec 913/1419.0 mln/1661 NYSE Adv/Vol/Dec 1170/440 mln/1829

3:00 pm : The S&P 500 (-0.1%) has slipped into the red as the session heads towards the close. Investors will receive a handful of quarterly reports between today's closing bell and tomorrow's open with potential implications for the discretionary sector.

This evening, Urban Outfitters (URBN 39.55, -0.62) will report its quarterly results while tomorrow's focus will be on Best Buy (BBY 44.01, +0.32), Dick's Sporting Goods (DKS 56.39, +0.56), Home Depot (HD 79.79, -0.24), and TJX (TJX 62.46, -1.07).

On a separate note, tomorrow's economic data will be limited to the third quarter employment cost index (Briefing.com consensus +0.5%).DJ30 +42.25 NASDAQ -13.62 SP500 -1.49 NASDAQ Adv/Vol/Dec 1272/1.24 bln/1281 NYSE Adv/Vol/Dec 1508/381.5 mln/1487

2:35 pm : Equity indices remain confined to narrow ranges as the Dow (+0.4%) leads while the Nasdaq (-0.1%) lags. Interestingly, the Nasdaq underperforms the technology sector, which hovers just above its flat line.

Elsewhere, the utilities sector has also climbed into positive territory after spending the entire session in a steady climb off its opening low.DJ30 +58.76 NASDAQ -3.66 SP500 +1.93 NASDAQ Adv/Vol/Dec 1375/1.16 bln/1174 NYSE Adv/Vol/Dec 1664/356.5 mln/1324

2:00 pm : Stocks continue hovering near their flat lines as the quiet afternoon rolls on. Outside of the opening 30 minutes, the S&P 500 has been trapped inside of a three-point range. The index has made a couple attempts at holding above the 1,800 level, but currently hovers just below that mark.

On a separate note, the market has not moved much in reaction to comments from Philadelphia Fed President Charles Plosser, who said the FOMC missed an 'excellent opportunity' to begin the tapering process by not reducing the size of its asset purchases in September. Mr. Plosser went on to say he would have preferred a fixed amount for quantitative easing instead of an open-ended program.

While Mr. Plosser does not have a vote on the board this year, he will be a voting member in 2014.DJ30 +45.98 NASDAQ -6.10 SP500 +0.82 NASDAQ Adv/Vol/Dec 1376/1.06 bln/1162 NYSE Adv/Vol/Dec 1660/323.9 mln/1316

1:30 pm : The major averages have pressed on today in mixed fashion for most of the session and little has changed with this update. The Nasdaq continues to trail the Dow and S&P 500 as weakness in a number of momentum stocks following a bearish article in this week's Barron's has acted a headwind.

Strikingly, the Treasury market has perked up a bit today even with the Dow and S&P 500 stretching a bit further into record territory. We suspect there are two factors underpinning Treasuries today: (1) the expectation, after a six-week rally in the S&P 500, that participants will be looking to take some money (and risk) off the table and (2) a ho-hum report on homebuilder confidence.

The NAHB Housing Market Index checked in at 54, which was below the Briefing.com consensus estimate of 55 and unchanged from the downwardly revised (from 55) October reading.

The yield on the 10-yr note has dropped three basis points to 2.67%. That drop in long-term rates is helpful for mortgage rates and mortgage demand. Not surprisingly, many of the homebuilding stocks are outperforming in today's session.DJ30 +47.81 NASDAQ -2.83 SP500 +1.25 NASDAQ Adv/Vol/Dec 1405/986 mln/1130 NYSE Adv/Vol/Dec 1663/299 mln/1305

12:55 pm : The Nasdaq (-0.1%) and S&P 500 hover near their flat lines while the Dow Jones Industrial Average (+0.3%) outperforms. Overall, the first half of today's session has not generated much excitement outside of the Dow and S&P rising above 16,000 and 1,800, respectively.

The S&P 500 entered the session after registering six consecutive weekly gains. So far today, however, the index has held near its flat line as only three sectors-financials (+0.5%), industrials (+0.5%), and telecom services (+0.4%)-trade ahead of the broader market.

Notably, industrials have displayed strength from the open with two top components providing support. Boeing (BA 138.57, +2.49) is higher by 1.8% and General Electric (GE 27.33, +0.13) sports a gain of 0.5% after the companies received orders for new jets and engines, respectively.

In turn, the relative strength of Boeing and General Electric has contributed to the outperformance of the Dow. The price-weighted index has also received support from JPMorgan Chase (JPM 55.89, +1.02) and Goldman Sachs (GS 167.15, +2.75) as the two hold gains close to 1.7% apiece. JPMorgan Chase has made the headlines after reaching a $4.5 billion settlement related to residential mortgage-backed securities.

Elsewhere, the Nasdaq has struggled to keep pace with the S&P as several momentum names lag. Facebook (FB 46.97, -2.04), LinkedIn (LNKD 227.34, -3.72), and Tesla (TSLA 124.43, -11.02) are all down between 1.6% and 8.0% with Tesla leading the weakness. In addition, the tech-heavy index has been pressured by some of its top components. Apple (AAPL 523.41, -1.58) is lower by 0.3% and Microsoft (MSFT 37.37, -0.47) holds a loss of 1.2% after Bank of America/Merrill Lynch downgraded the stock to 'Underperform' from 'Neutral.'

Today's economic data was limited to just two items. The September net long-term TIC flows report indicated an $8.9 billion outflow of foreign capital from U.S. denominated assets. This followed the prior month's $8.9 billion outflow.

Separately, the November NAHB Housing Market Index slipped to 54 from 55 while the Briefing.com consensus expected no change.DJ30 +43.28 NASDAQ -3.51 SP500 +0.15 NASDAQ Adv/Vol/Dec 1416/911.1 mln/1116 NYSE Adv/Vol/Dec 1612/274.6 mln/1339

12:30 pm : Equity indices remain near their flat lines as the S&P 500 attempts to withstand the pressure exerted by seven underperforming groups. Notably, energy (-0.3%) and materials (-0.3%) hover near their lows with the underlying commodities also displaying weakness.

Crude oil trades at $93.17 after surrendering more than a dollar over the past 90 minutes. Meanwhile, gold futures trade lower by 1.3% at $1271.00 per troy ounce. On a related note, the Market Vectors Gold Miners ETF (GDX 23.66, -0.47) trades down 2.0%, which weighs on the materials sector.DJ30 +49.12 NASDAQ +0.03 SP500 +1.26 NASDAQ Adv/Vol/Dec 1432/827.5 mln/1073 NYSE Adv/Vol/Dec 1629/251.7 mln/1309

12:00 pm : Recent action saw the S&P 500 slip back to its flat line as the index struggles to overcome the underperformance of seven sectors. However, the index remains just above its flat line as financials (+0.6%) and industrials (+0.6%) provide a measure of support.

Meanwhile, the Nasdaq is lower by 0.1% with several momentum names displaying weakness. Facebook (FB 47.00, -2.01), LinkedIn (LNKD 227.53, -3.53), and Tesla (TSLA 126.78, -8.67) are all down between 1.6% and 6.3%. In addition, the largest index component, Apple (AAPL 522.89, -2.10), trades down 0.4%.DJ30 +38.98 NASDAQ -2.93 SP500 +0.54 NASDAQ Adv/Vol/Dec 1423/736.2 mln/1080 NYSE Adv/Vol/Dec 1633/225.3 mln/1288

11:25 am : The S&P 500 has spent the past 30 minutes climbing back towards its opening high. Although the index sits in positive territory, only four sectors (health care, financials, industrials, and telecom services) trade higher at this juncture.

On the downside, consumer discretionary (-0.1%), consumer staples (-0.3%), and materials (-0.2%) weigh. Interestingly, the consumer staples sector is the weakest group of the day even after Tyson Foods (TSN 29.52, +0.75) beat earnings estimates by one cent and issued above-consensus guidance.DJ30 +52.24 NASDAQ +2.58 SP500 +2.77 NASDAQ Adv/Vol/Dec 1451/630.8 mln/1029 NYSE Adv/Vol/Dec 1679/194.8 mln/1222

11:00 am : Equities sport modest gains as the Nasdaq and S&P 500 hover just above their flat lines. Meanwhile, the Dow (+0.3%) continues to outperform the other indices as Boeing (BA 139.10, +3.02) provides support. In addition, two major financials-Goldman Sachs (GS 167.03, +2.63) and JPMorgan Chase (JPM 55.78, +0.91)-have also contributed to the relative strength of the index.

On a related note, financials (+0.4%) and industrials (+0.6%) remain atop the leaderboard while only two other sectors (health care and telecom services) trade in positive territory.

Treasuries trade at their best levels of the session with the 10-yr yield off three basis points at 2.68%.DJ30 +49.28 NASDAQ +2.23 SP500 +1.77 NASDAQ Adv/Vol/Dec 1406/525.3 mln/1034 NYSE Adv/Vol/Dec 1578/164.9 mln/1303

10:30 am : Commodities are mostly in the red this morning. Aside from aluminum futures rising overnight on the London Metals Exchange (LME) +0.5% at $1750/ton, metals are lower this morning, including gold, silver, copper, platinum, palladium.

In the energy patch, both WTI crude oil (U.S. oil price benchmark) and Brent crude oil (International price benchmark) are in the red. Heating oil and RBOB gasoline futures are both down as well.

In ag, soybeans, wheat, ethanol and sugar are showing some gains, while corn, oats, orange juice, coffee and milk futures are lower.

In current trade:

Dec crude oil -0.2% at $93.69/barrel
Dec natural gas +0.2% at $3.67/MMBtu
Dec gold -0.5% at $1280.80/oz
Dec silver -0.7% at $20.59/oz
Dec copper -0.2% at $3.17/lb

DJ30 +39.01 NASDAQ -5.45 SP500 -0.22 NASDAQ Adv/Vol/Dec 1324/406.1 mln/1066 NYSE Adv/Vol/Dec 1438/136 mln/1349

10:00 am : The major averages have reversed from their early highs with consumer discretionary (-0.3%), consumer staples (-0.3%), and technology (-0.2%) leading to the down side. The reversal has sent the S&P 500 into the red (-0.1%) while the Dow Jones Industrial Average continues to hold a modest gain of 0.2%.

Just reported, the November NAHB Housing Market Index slipped to 54 from 55. Today's report was below the reading of 55 expected by the Briefing.com consensus.DJ30 +24.94 NASDAQ -9.50 SP500 -2.20 NASDAQ Adv/Vol/Dec 1184/247.6 mln/1125 NYSE Adv/Vol/Dec 1293/96.1 mln/1462

09:40 am : The major averages climbed out of the gate as the Dow Jones Industrial Average eclipsed the 16,000 level while the S&P 500 rose above 1,800. Eight of ten sectors trade with early gains, but the industrial (+0.7%) space is a clear outperformer with Boeing (BA 140.72, +4.64) trading higher by 3.4% after the company received orders for new jets.

Outside of industrials, financials (+0.4%) and health care (+0.3%) have also displayed early strength.

The November NAHB Housing Market Index will be reported at 10:00 ET.DJ30 +56.51 NASDAQ +4.18 SP500 +2.62 NASDAQ Adv/Vol/Dec 1349/126.5 mln/873 NYSE Adv/Vol/Dec 1625/67.2 mln/1063

09:14 am : [BRIEFING.COM] S&P futures vs fair value: +2.80. Nasdaq futures vs fair value: -0.30. Equities are expected to display little change at the open as the S&P 500 futures hover just above fair value while Nasdaq futures trade flat.

Overnight action has been conducive to continued gains as indices in China and Hong Kong gained more than 2.5% apiece as investors reacted to reforms announced late last week. Elsewhere, Japan's Nikkei ended flat after adding more than 1,000 points in six sessions. Over in Europe, equity indices trade higher across the board.

Treasuries are little changed to begin the day with the 10-yr yield at 2.70%.

09:01 am : [BRIEFING.COM] S&P futures vs fair value: +1.70. Nasdaq futures vs fair value: -0.30. The S&P 500 futures trade higher by 0.2%.

Asian markets posted gains with indices in Hong Kong (+2.7%) and China (+2.9%) pacing the advance as participants continued reacting to reform plans announced late last week. In addition, Moody's commented on Chinese reform, saying the current direction is a positive for the country's sovereign rating. Elsewhere, Japan's Nikkei settled flat after gaining more than 1,000 points over six sessions. Regional economic data was limited as China's house prices rose 9.6% month-over-month (9.1% prior) and Hong Kong's unemployment rate held steady at 3.3%, as expected. Lastly, South Korea's PPI slipped 0.4% month-over-month (-0.1% last) while the year-over-year reading fell 1.4% (-1.8% previous).

Japan's Nikkei closed flat. Technology companies outperformed as Minebea and Yahoo Japan gained 4.9% and 4.3%, respectively. Energy names lagged as Show Shell Sekiyu lost 2.8%.
In Hong Kong, the Hang Seng advanced 2.7% as all but one component registered gains. Insurance names led the way as Ping An and China Life Insurance rose 9.5% and 8.7%, respectively. Sun Hung Properties was the lone decliner, falling 1.5%.
China's Shanghai Composite rose 2.9% with financials providing support. CITIC Securities surged the limit, 10.0%.

Major European indices trade higher across the board with peripheral indices in the lead. Italy's MIB (+2.0%) outperforms after Prime Minister Enrico Letta said the country is on the right track for a return to growth next year, but youth unemployment remains a pressing issue. Mr. Letta said he expects 2014 GDP growth of 1.4%. Economic data was limited to a handful of releases. Eurozone trade surplus expanded to EUR14.3 billion from EUR12.3 billion (EUR14.2 billion expected) while the current account surplus narrowed to EUR13.7 billion from EUR17.9 billion (EUR19.0 billion forecast). Elsewhere, Germany's House Price Index rose 0.8% month-over-month (-0.9% prior).

Great Britain's FTSE is higher by 0.4% as Aberdeen Asset Management leads with a gain of 13.9% after agreeing to buy the asset management arm of Lloyds Banking Group for just over $1 billion. Petrofac is the weakest performer, down 15.6% after the company issued disappointing guidance.
In Germany, the DAX trades up 0.6% with utilities E.ON and RWE in the lead. The two stocks trade higher by 4.0% and 6.9%, respectively. Bayer lags, trading lower by 0.6%.
France's CAC holds a gain of 0.7%. EADS outperforms with a gain of 3.4% while producers of basic materials lag. Cie de St-Gobain and Vallourec are both down near 1.2%.
In Italy, the MIB sports an advance of 2.0% as 39 of 40 components register gains. Banco Popolare and UniCredit are higher by 4.5% and 2.9%, respectively.

In domestic economic news, the September net long-term TIC flows report indicated an $25.5 billion inflow of foreign capital from U.S. denominated assets. This follows the prior month's $9.8 billion outflow.

08:30 am : [BRIEFING.COM] S&P futures vs fair value: +1.20. Nasdaq futures vs fair value: -1.50. Equity indices are poised to open today's session on a cautiously optimistic note as the S&P 500 futures hover one point above fair value. Overseas, Japan's Nikkei ended flat after surging more than 1,000 points over six sessions. Meanwhile, indices in China and Hong Kong soared more than 2.7% each as participants continued reacting to reform plans announced last week. Over in Europe, equities trade higher across the board.

The S&P 500 will enter today's session after registering six straight weeks of gains and ending last week at a fresh record high of 1770.49.

September net long-term TIC flows and the November NAHB Housing Market Index will be reported at 9:00 ET and 10:00 ET, respectively.

08:00 am : S&P futures vs fair value: +1.00. Nasdaq futures vs fair value: -0.30. U.S. equity futures hover near their pre-market highs amid generally upbeat overseas action. The S&P 500 futures trade higher by one point above fair value.

Looking at overnight developments:

Asian markets ended mostly higher. Hong Kong's Hang Seng +2.7%, China's Shanghai Composite +2.9%, and Japan's Nikkei settled flat while USDJPY slipped to 100.09.
In regional economic data:
China's house prices rose 9.6% month-over-month (9.1% prior).
Hong Kong's unemployment rate held steady at 3.3%, as expected.
South Korea's PPI slipped 0.4% month-over-month (-0.1% last) while the year-over-year reading fell 1.4% (-1.8% previous).
Among news of note:
Indices in China and Hong Kong surged as participants continued reacting to reform plans announced late last week.
Moody's commented on Chinese reform, saying the current direction is a positive for the country's sovereign rating.

Major European indices trade higher across the board with peripheral indices in the lead. Great Britain's FTSE +0.5%, France's CAC +0.7%, and Germany's DAX +0.7%. Elsewhere, Spain's IBEX +1.6% and Italy's MIB +2.0%.
Economic data was limited:
Eurozone trade surplus expanded to EUR14.3 billion from EUR12.3 billion (EUR14.2 billion expected) while the current account surplus narrowed to EUR13.7 billion from EUR17.9 billion (EUR19.0 billion forecast).
Germany's House Price Index rose 0.8% month-over-month (-0.9% prior).
In news:
Italian Prime Minister Enrico Letta said the country is on the right track for a return to growth next year, but youth unemployment remains a pressing issue. Mr. Letta said he expects 2014 GDP growth of 1.4%.

In U.S. corporate news:

JinkoSolar Holding (JKS 32.00, +2.50): +8.5% after beating revenue expectations and raising its full-year 2013 shipment guidance.
Microsoft (MSFT 37.44, -0.40): -1.1% after Bank of America/Merrill Lynch downgraded the stock to 'Underperform' from 'Neutral.'

September net long-term TIC flows and the November NAHB Housing Market Index will be reported at 9:00 ET and 10:00 ET, respectively.

06:46 am : [BRIEFING.COM] S&P futures vs fair value: +1.00. Nasdaq futures vs fair value: +1.00.

06:46 am : Nikkei...15164.30...-1.60...0.00. Hang Seng...23660.06...+627.90...+2.70%.

06:46 am : FTSE...6718.52...+25.10...+0.40%. DAX...9219.93...+51.20...+0.50%.

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

Best Regards,
M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
@ http://twitter.com/wrbtrader @ http://stocktwits.com/wrbtrader

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