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)
wrbanalysis@gmail.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 @ $0.00 dollars or +0.00 points, Emini ES ($ES_F) futures @ $13562.50 dollars or +271.25 points, Light Crude Oil CL ($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 @ $13562.50 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

Trade Log: All of my trades were posted real-time in the timestamp ##TheStrategyLab free chat room. You can read today's price action trading information about my trades (e.g. time, price entry, contract size, price exit) as the trade traversed to its completion. Also, sometimes I'll post real-time trading tips in ##TheStrategyLab chat room involving WRBs, WRB Hidden GAPs, Key Market Events (KME), Tutorial Chapters 2 & 3, WRB Zones, Reaction Highs/Lows, Contracting Volatility or Expanding Volatility. Its all archived @ http://www.thestrategylab.com/ftchat/forum/viewtopic.php?f=150&t=2236


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.

##TheStrategyLab Chat Room is free. Members and I use the chat room to post WRB Analysis commentary, real-time trades and to post anything else related to trading. The chat room helps me tremendously in my own trading because I use it to document (journal) general volatility analysis involving WRB Analysis so that I can easily review at a later date my thoughts as I interacted with the markets...info I can not get from my broker statements. Also, this is not a signal calling chat room where a head trader tells you when to buy or sell and I do not have the time/energy/resources to manage a signal calling chat room. Access instructions for chat room @ http://www.thestrategylab.com/tsl/forum/viewforum.php?f=164

Price Action Analysis via Advance WRB Analysis Tutorial Chapters @ 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

Analysis -----> Trade Signals

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 (answering your questions) prior to purchasing the Volatility Trading Report (VTR). All WRB Analysis Tutorial Chapters 1 - 12 are included in the purchase of the Volatility Trading Report (VTR).

Daily Trading Plan Routine @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=278&t=2988 contains brief information about trading plan, market context, brokers, trading time frames, position size management and other discussions.

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

Market Context Summaries

The below summaries by Bloomberg, Briefing, 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. Further, most financial websites remove (delete) their archives after a few years to make room for new content. Therefore, I maintain my own archives of the news content so that I have it available for me when financial websites no longer archives their content.


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


4:10 pm: [BRIEFING.COM] The stock market enjoyed a broad rally on Friday that lifted the S&P 500 (+2.1%) back above its 200-day moving average (2,065). The daylong surge helped the benchmark index turn this week's loss into a slim gain of 0.1%.

Equities charged out of the gate and doubled their gains during afternoon action even though the November Employment Situation report came in ahead of expectations (211,000; Briefing.com consensus 196,000), which is unlikely to get in the way of the Federal Reserve's rate hike plans.

Interestingly, Treasuries stumbled immediately after the release of today's data, but they followed that move with a charge to new session highs. The 10-yr note ended near its best level of the session, pressuring its yield four basis points to 2.27%. Meanwhile, the Dollar Index (98.35, +0.43) climbed 0.4%, erasing a portion of its 2.3% loss from yesterday.

Nine of ten sectors ended the day in the green while energy (-0.6%) spent the day in negative territory with crude oil contributing to the weakness. WTI crude settled near its low, surrendering 2.4% to $40.08/bbl. The energy component fell from the $41.50/bbl level this morning in reaction to reports that OPEC has agreed to increase its daily production target to 31.5 million barrels from 30.0 million; however, the official OPEC statement released in the late morning did not specify a production target. For the week, crude oil lost 3.9% while the energy sector fell 4.6%.

On the flip side, nine groups posted gains with eight adding 1.4% or more. Top-weighted sectors traded comfortably ahead of their peers with technology (+2.5%), financials (+2.7%), and health care (+2.4%) holding the lead into the close. The technology sector rallied thanks to relative strength in large cap names like Apple (AAPL 119.03, +3.83), Alphabet (GOOGL 779.21, +11.01), and Microsoft (MSFT 55.91, +1.71) while high-beta chipmakers underperformed intraday, but the PHLX Semiconductor Index rallied into the close to end the day higher by 1.9%.

Elsewhere among cyclical sectors, the industrial space (+1.5%) spent the day behind the broader market due to relative weakness among transport stocks. The Dow Jones Transportation Average climbed 0.8%, but railroad names struggled with Norfolk Southern (NSC 92.06, -1.05) falling 1.1% after rejecting an unsolicited offer from Canadian Pacific (CP 134.49, -6.42).

Today's daylong charge invited above-average participation with nearly a billion shares changing hands at the NYSE floor.

Economic data included Nonfarm Payrolls and Trade Balance:

Nonfarm payrolls increased by 211,000 (Briefing.com consensus 196,000)
October nonfarm payrolls revised to 298,000 from 271,000
Private sector payrolls increased by 197,000 (Briefing.com consensus 185,000)
October private sector payrolls revised to 304,000 from 268,000
Unemployment rate was 5.0% (Briefing.com consensus 5.0%) versus 5.0% in October
The U6 unemployment rate, which accounts for the total unemployed plus persons marginally attached to the labor force and the underemployed, was 9.9% versus 9.8% in October
Average hourly earnings increased 0.2% (Briefing.com consensus 0.2%) after increasing 0.4% in October
The average workweek was 34.5 hours (Briefing.com consensus 34.5) versus 34.6 hours in October
The labor force participation rate was 62.5% versus 62.4% in October
The US trade deficit widened to $43.90 billion from an upwardly revised $42.50 billion (from -$40.80 billion) in September while the Briefing.com consensus expected the trade deficit to be $43.0 billion
October exports were $184.10 billion, which was $2.70 billion less than September exports. October imports were $228.00 billion, which was $1.30 billion less than September imports

Monday's data will be limited to the 15:00 ET release of the October Consumer Credit report.

Nasdaq Composite +8.6% YTD
S&P 500 +1.6% YTD
Dow Jones Industrial Average +0.1% YTD
Russell 2000 -1.5% YTD

Week in Review: Stocks Wobble

The stock market began the trading week on a modestly lower note with the S&P 500 surrendering 0.5% after spending the day in a 13-point range. The Monday session marked the end of November, a month during which the S&P 500 added 0.1% while the Nasdaq Composite (+1.1%) outperformed. Equities held slim gains at the start of the trading day, but the early strength faded quickly, sending the S&P 500 below its flat line where the index remained into the afternoon. The S&P 500 tried to stage a rebound during afternoon action, but that move was followed by a slip to new lows. The benchmark index settled near its worst level of the day, masking gains in five of ten sectors. For instance, energy (+0.4%) and technology (+0.1%) outperformed from the start, but their strength could not lift the overall market. The energy sector settled in the lead even though crude oil surrendered a solid intraday gain to end lower by 0.2% at $41.63/bbl. For the month, WTI crude tumbled 10.7% while the energy sector lost 0.8%.

On Tuesday, the stock market began December on an upbeat note with the S&P 500 climbing 1.1% while the Nasdaq Composite (+0.9%) settled just behind. All in all, the session was very quiet as the S&P 500 marked its high during the opening hour and inched above that level during afternoon action. The index briefly slipped from the morning high after economic data showed that the ISM Index (48.6; Briefing.com consensus 50.4) registered its first contractionary reading (below 50) in 36 months. The disappointing report was met with a spike in Treasuries that sent the 10-yr note to a fresh high. The benchmark instrument settled on its best level of the day, pressuring its yield six basis points to 2.15%. All ten sectors posted gains with heavily-weighted groups like health care (+1.7%), technology (+1.1%), consumer discretionary (+1.0%), and financials (+1.3%) ending in the lead.

The market ended the midweek session on a broadly lower note with the S&P 500 sliding 1.1% while the Nasdaq (-0.6%) settled a bit ahead. Equity indices spent the first 90 minutes of the session near their flat lines, but the energy sector (-3.1%) struggled from the start and accelerated its retreat into the afternoon, which dragged down the entire market. Meanwhile, the remaining groups held up relatively well at the start, but they could not resist the pressure, which intensified as the session wore on. Interestingly, the selling in the market accelerated shortly after Fed Chair Janet Yellen concluded her speech at the Economic Club of Washington with the remarks being perceived as a sign that the Fed is ready to raise rates at the December policy meeting.

Equities ended Thursday on a woeful note after global investors reduced their equity exposure in reaction to an underwhelming policy statement from the European Central Bank. The S&P 500 lost 1.4%, falling below its 200-day moving average (2,065), while the Nasdaq Composite (-1.7%) underperformed. The key indices held slim gains at the open, but that proved to be a mirage as the market marched lower throughout the day after the European Central Bank made a slight adjustment to its interest rate corridor (deposit facility rate down to -0.3% from -0.2%, marginal lending facility unch at +0.3%, and main refinancing rate unch at +0.05%), but did not increase the size of its asset purchases, thus disappointing a global equity complex that was hungry for more stimulus. The euro responded by having its best day of the year, soaring nearly 450 pips off its intraday low against the dollar to 1.0950. In turn, the Dollar Index (97.79, -2.25) plunged 2.3% to early November levels.

3:45 pm: [BRIEFING.COM]

The dollar index remained in positive territory, which helped weigh on select commodities
However, precious metals climbed higher and remain near today's highs
Feb gold finished up today's session +2.2% at $1084.40/oz, while Mar silver +3.1% at $14.52/oz
Oil prices slid lower today following OPEC's meeting and decision to raise its oil output ceiling target
Jan crude fell $2.00/barrel off of today's high to close at $40.00/barrel in pit trading
Jan nat gas ended flat at $2.18/MMBtu

2:55 pm:

[BRIEFING.COM] The S&P 500 trades higher by 2.1% with one hour remaining in the session.

Equities have inched up to new highs with just about every sector building on its gain. Even the energy sector, which has spent the entire day in negative territory, has trimmed its loss to 0.4% thanks to the broad strength.

Thanks to today's charge, the benchmark index is on track to end the week higher by 0.1% after being down 2.3% for the week at its lowest point during yesterday's session.

2:30 pm:

[BRIEFING.COM] Equity indices remain near their session highs as the quiet afternoon continues. The S&P 500 (+1.8%) has erased its loss from yesterday and now trades roughly in the middle of its range from Wednesday.

Nine sectors remain comfortably in the green while energy (-0.9%) remains in negative territory. On a related note, crude oil is set to end the pit session on its low, trading down 2.8% at $39.95/bbl with the session ending momentarily.

With the market trading near its high, there are roughly 1.8 listings trading in the green for each decliner.

2:00 pm:

[BRIEFING.COM] The major averages continue holding solid gains with the Dow (+2.0%) maintaining the lead thanks to relative strength among large cap stocks. Meanwhile, the S&P 500 trades up 1.8% with gains in nine sectors overshadowing a daylong retreat in the energy space (-0.7%).

Investors received the November Employment Situation report this morning, which was this week's highlight in terms of economic data. Next week will be relatively quiet on the economic front with the most notable data points-November CPI and November Retail Sales-both scheduled to be reported on Friday.

Similar to stocks, Treasuries hover near their highs with the 10-yr yield down six basis points at 2.27%.

1:30 pm:

[BRIEFING.COM] The major U.S. indices continue to squeeze higher in recent trade, setting new intra-day highs since our last update.

A look inside the Dow Jones Industrial Average shows that JP Morgan (JPM 67.87, +2.07), Apple (AAPL 118.66, +3.46), and Home Depot (HD 134.62, +3.69) are outperforming amid broad strength in stocks.
Related Quotes

Conversely, Exxon Mobil (XOM 78.35, -0.06) is the worst-performing and sole declining Dow component amid sector weakness in Energy with WTI crude oil futures -3%.

Bouncing back massively from yesterday's sell-off, the DJIA is now flat on the year, and is up 0.6% in December thus far.

12:55 pm:

[BRIEFING.COM] The stock market trades comfortably in the green at midday with the S&P 500 (+1.6%) returning above its 200-day moving average (2,065) after falling below that mark yesterday. Thanks to the early advance, the benchmark index has trimmed this week's decline to 0.4%.

Equities rallied out of the gate after the latest Employment Situation report came in ahead of expectations, showing that 211,000 nonfarm payrolls were added in November (Briefing.com consensus 196,000). This reading is unlikely to get in the way of the Fed's rate hike plans, but Treasuries have climbed to new highs after slipping immediately following the report. As a result, the 10-yr yield is lower by five basis points at 2.28% after testing 2.36% earlier.

Nine of ten sectors display midday gains while energy (-1.5%) has struggled since the early going with crude oil contributing to the weakness. WTI crude is currently lower by 2.6% at $40.00/bbl after falling from the $41.50/bbl level this morning in reaction to reports that OPEC has agreed to increase its daily production target to 31.5 million barrels from 30.0 million; however, the official OPEC statement released in the late morning did not specify a production target.

The underperformance in the energy sector has not stopped the market from charging higher as seven groups show gains of 1.0% or more with two of the seven up 2.0% or more. Top-weighted financials (+2.2%) and technology (+2.0%) have held the lead since the start while health care (+1.9%) and consumer staples (+1.9%) follow.

Although today's main focus has been on macroeconomic developments, there has been some news on the corporate front. Homebuilders have rallied across the board after Hovnanian (HOV 1.78, +0.07) reported better than expected earnings. The stock has jumped 4.7% while the iShares Dow Jones US Home Construction ETF (ITB 28.44, +0.46) has climbed 1.6%.

Elsewhere in the discretionary sector, restaurant names display broad gains, but Chipotle Mexican Grill (CMG 546.68, -18.63) has surrendered 3.3% after the Center for Disease Control released an update on an E. coli outbreak that has been linked to the restaurant. According to the CDC, the outbreak has spread to two more states with seven more cases reported, but only one person reported eating at Chipotle a week before experiencing symptoms.

Today's economic data included Nonfarm Payrolls and Trade Balance:

Nonfarm payrolls increased by 211,000 (Briefing.com consensus 196,000)
October nonfarm payrolls revised to 298,000 from 271,000
Private sector payrolls increased by 197,000 (Briefing.com consensus 185,000)
October private sector payrolls revised to 304,000 from 268,000
Unemployment rate was 5.0% (Briefing.com consensus 5.0%) versus 5.0% in October
The U6 unemployment rate, which accounts for the total unemployed plus persons marginally attached to the labor force and the underemployed, was 9.9% versus 9.8% in October
Average hourly earnings increased 0.2% (Briefing.com consensus 0.2%) after increasing 0.4% in October
The average workweek was 34.5 hours (Briefing.com consensus 34.5) versus 34.6 hours in October The labor force participation rate was 62.5% versus 62.4% in October
The US trade deficit widened to $43.90 billion from an upwardly revised $42.50 billion (from -$40.80 billion) in September while the Briefing.com consensus expected the trade deficit to be $43.0 billion
October exports were $184.10 billion, which was $2.70 billion less than September exports. October imports were $228.00 billion, which was $1.30 billion less than September imports

12:25 pm:

[BRIEFING.COM] Equity indices remain comfortably in the green, but the same cannot be said for the energy sector (-1.7%) which has returned into the bottom half of today's trading range. The economically-sensitive group has struggled since the start, but that loss has been overshadowed by solid gains in just about every other sector.

On the upside, financials (+1.8%) remain in the lead while the top-weighted technology sector (+1.6%) follows right behind. The influential group has been supported by its top components with the likes of Apple (AAPL 118.39, +3.19), Alphabet (GOOGL 778.74, +10.53), and Microsoft (MSFT 55.42, +1.22) showing gains between 1.3% and 2.8%. As for chipmakers, the high-beta group trades a bit behind the tech sector with the PHLX Semiconductor Index rising 1.1%.

Elsewhere, Treasuries have climbed to new highs not long ago with the 10-yr yield now down five basis points at 2.28%.

12:00 pm:

[BRIEFING.COM] The major averages have ticked down from their highs, but they continue holding solid gains with the S&P 500 (+1.1%) trading about seven points below its session high.

In our previous update, we pointed out the energy sector (-1.4%), which was in the midst of a rebound; however, the group has been knocked back into the middle of today's trading range by renewed selling in crude oil. The energy component is lower by 2.4% and back in the neighborhood of the $40.00/bbl area after the release of the official OPEC statement, which did not state a production target. Recall, that earlier it was reported that daily production will be increased to 31.5 million barrels per day from 30 million.

On a separate note, the consumer discretionary sector (+1.0%) remains well above its flat line, but Chipotle Mexican Grill (CMG 543.77, -22.17) trades down almost 4.0% after the Center for Disease Control released an update on an E. coli outbreak that has been linked to the restaurant. According to the CDC, the outbreak has spread to two more states with seven more cases reported, but only one person reported eating at Chipotle a week before symptoms manifested themselves.

11:25 am:

[BRIEFING.COM] Equity indices remain near their best levels of the session thanks to solid gains in nine of ten sectors. The S&P 500 is higher by 1.3% and thanks to today's spike, the benchmark index has narrowed this week's loss to 0.6%.

Influential sectors have powered today's move and they continue holding their ground with financials (+1.9%) in the lead while consumer staples (+1.8%), technology (+1.7%), and health care (+1.5%) follow not far behind.

The overall strength in the market has lifted the energy sector off its low, helping the group narrow its loss to 0.5% while crude oil remains lower by 1.6% at $40.41/bbl.

10:55 am:

[BRIEFING.COM] The stock market has built on its early strength with the Dow (+1.4%) holding the lead while the S&P 500 (+1.2%) follows not far behind. Thanks to the early surge, the S&P 500 has charged back above its 200-day moving average (2,065) and currently trades about 11 points above that mark.

Nine sectors trade in the green and all nine sport comfortable gains of at least 0.7% (telecom services). Meanwhile, the energy sector (-1.0%) remains in the red amid today's decline in crude oil. To that point, WTI crude is currently down 2.4% at $40.11/bbl and on track to end the week lower by 3.8%. As for the energy sector, the growth-sensitive group has surrendered 4.8% since last Friday.

Elsewhere, Treasuries continue holding modest gains with the 10-yr yield down two basis points at 2.31%.

10:40 am: [BRIEFING.COM]

Today's bit stories are the OPEC meeting and the jobs numbers
Gold, silver and oil pulled back following the jobs data, which sent the dollar index higher
In current trade, Feb gold is +2.3 at $1085.10/oz, while Mar silver is -3.4% at $14.55/oz
Oil has been driven by both OPEC and the dollar this morning
Initially following the OPEC headlines that it will be raising its target oil output ceiling to 31.5 mln, up from 30 mln, after the inclusion of Indonesia, oil prices dropped sharply
WTI oil dropped back below $40/barrel in earlier trade, but currently, the front-month Jan crude contract is
Jan nat gas is currently +0.2% at $2.19/MMBtu

10:00 am:

[BRIEFING.COM] Equity indices have rallied to new highs with the S&P 500 now up 0.9%.

The energy sector (-1.8%) remains well below its flat line, but six other groups hold gains of 1.0% or more. Top-weighted sectors remain at the forefront of today's rally with health care (+1.3%), financials (+1.3%), and technology (+1.3%) in the lead.

Elsewhere, Treasuries sit just below their best levels of the day with the 10-yr yield down three basis points at 2.30%.

9:40 am:

[BRIEFING.COM] The major averages began the trading day on an upbeat note amid gains in nine of ten sectors. The S&P 500 trades higher by 0.5% with consumer staples (+0.9%), health care (+0.8%), and technology (+0.6%) in the lead.

On the flip side, the energy sector has surrendered 1.9% in the early going to continue this week's volatility. On a related note, crude oil has inched back above the $40.00/bbl level, but the energy component remains down 2.6% on the day.

Elsewhere, Treasuries are testing their overnight highs with the 10-yr yield down four basis points at 2.29%.

9:10 am: [BRIEFING.COM] S&P futures vs fair value: +0.50. Nasdaq futures vs fair value: +3.30.

The stock market is on track for a flat start as S&P 500 futures trade within a point of fair value.

Index futures surged to fresh pre-market highs after the latest Employment Situation report showed that Nonfarm Payrolls increased by 211,000 in November while the Briefing.com consensus expected a reading of 196,000. In addition, the October reading was revised up to 298,000 from 271,000.

Despite the initial spike higher, futures have backtracked considerably in recent action to test their overnight lows. It is worth noting that the move unfolded right around the time when it was reported that OPEC has raised its production ceiling to 31.5 million barrels per day from 30.0 million. Crude oil plunged to new lows in reaction to the news, trading lower by 3.4% at $39.70/bbl at this juncture.

Treasuries sold off in reaction to the jobs data, but they have spiked back to their overnight highs with the 10-yr yield down four basis points at 2.29%.

8:51 am: [BRIEFING.COM] S&P futures vs fair value: +9.00. Nasdaq futures vs fair value: +14.00.

The S&P 500 futures trade nine points above fair value.

Markets in the Asia-Pacific region ended the week on a mostly lower note. Most regional indices saw downward pressure that echoed the negative sentiment seen in the global equity markets following yesterday's ECB's monetary policy update. This was particularly the case in Japan. The Nikkei closed over 2.0% lower with strength in the yen (post ECB release) taking its toll on the majority of exporters. There was some positive data for the Japanese economy with the release of October Average Cash Earnings rising to a 6-month high at +0.7%, while exceeding the +0.5% expectation. This had little impacts on the markets today, however, it should be noted the BOJ has cited this as a key metric in helping assess monetary policy. In China, the session was free of economic data with volume in the Shanghai Composite (-1.7%) on the lower end of the norm.

In economic data:
Japan's Average Cash Earnings +0.7% year-over-year (consensus 0.4%; prior 0.4%), October Overtime Pay +1.2% year-over-year (last 1.4%), and November Household Confidence 42.6 (expected 41.8; previous 41.5)
Australia's October Retail Sales +0.5% month-over-month, as expected (previous +0.4%)
New Zealand's ANZ Commodity Price Index -5.6% month-over-month (previous 7.1%)

------

Japan's Nikkei declined 2.2% on a day that saw all of its sectors ending in negative territory. Energy names outperformed the broader market, with only a 0.4% decline on the back of stronger oil prices overnight. Consumer Discretionary names paced the way lower with the sector declining 2.6%. There were not many positive stock specific stories to note either. Shares of Nissan Motor fell 2.4% after the co released November sales in China. Sharp outperformed the Nikkei, but still closed out the day 0.8% lower after the co announced it is looking to cut LCD inventories.
Hong Kong's Hang Seng ended the day down 0.8%, but managed to finish at its high. After the market opened ~1% lower, trading was range-bound with no catalysts to help the index attract aggressive buyers. Among the stocks dragging the broader market lower were shares of CIFI Holdings Group lost 1.1% after the company reported its November metrics, while CITIC Dameng Holdings dropped 1.8% after issuing cautious guidance. On a more positive note, Geely Automobile Holdings managed to gain 0.2% after the co released its November sales update
China's Shanghai Composite declined 1.7% after opening ~0.5% lower and failing to find any stability as the session advanced. China Vanke closed down 0.4% after the co released its November results. On the opposite end, China Railway Group posted a 1.5% gain after the announced an asset swap agreement.

Major European indices have climbed off their lows, making for a mixed session. In news, the Bank of France has lowered its growth and inflation outlook, expecting GDP growth of 1.4% in 2016 (down from 1.8%) and 1.6% in 2017 (down from 1.9%). Meanwhile, harmonized inflation is expected to increase 1.0% in 2016 (down from 1.4%) and 1.5% in 2017 (down from 1.7%).

Economic data was limited:
Eurozone Retail PMI 48.5 (previous 51.3)
Germany's October Factory Orders +1.8% month-over-month (expected 1.2%; previous -0.7%)
Spain's October Industrial Production +4.0% year-over-year (consensus 3.6%; last 3.7%)
Swiss November CPI -0.1% month-over-month (expected -0.1%; previous 0.1%); -1.4% year-over-year (consensus -1.3%; last -1.4%)

------

Germany's DAX is lower by 0.4% with health care names leading the retreat. Fresenius, Merck, and Bayer show losses between 1.6% and 2.8%. Financials trade in mixed fashion with Commerzbank up 0.2% while Deutsche Bank is lower by 0.3%. On the upside, Volkswagen outperforms, spiking 1.6%.
In France, the CAC has climbed 0.1% with financials and consumer names contributing to the strength. AXA, Carrefour, Credit Agricole, and Louis Vuitton have added between 0.2% and 4.2% while growth-sensitive Safran, Bouygues, and Lafarge are down between 1.2% and 2.4%.
UK's FTSE remains lower by 0.1% with roughly 60% of its components in the red. Carnival, InterContinental Hotels, Pearson, and Unilever have pressured the index with losses between 1.0% and 2.8%. On the flip side, miners and energy names outperform with Royal Dutch Shell, BP, Anglo American, Glencore, and BHP Billiton up between 1.3% and 2.3%.

8:32 am: [BRIEFING.COM] S&P futures vs fair value: +9.80. Nasdaq futures vs fair value: +14.50.

The S&P 500 futures trade ten points above fair value.

November Nonfarm Payrolls came in at 211,000 while the Briefing.com consensus expected a reading of 196,000. The prior month's reading was revised up to 298,000 from 271,000. Nonfarm private payrolls added 197,000 against the 185,000 expected by the consensus. The unemployment rate held at 5.0%, which is what the Briefing.com consensus expected.

Hourly earnings rose 0.2%, which is what the consensus expected. The average workweek was reported at 34.5, which is what the consensus expected.

Separately, the October trade balance showed a deficit of $43.90 billion while the Briefing.com consensus expected the deficit to come in at $43.00 billion.

7:54 am: [BRIEFING.COM] S&P futures vs fair value: +8.30. Nasdaq futures vs fair value: +10.80.

U.S. equity futures trade modestly higher despite cautious action overseas. The S&P 500 futures hover eight points above fair value after hitting pre-market highs around 4:00 ET. However, some volatility is expected around 8:30 ET once the November Employment Situation report (Briefing.com consensus 196K) and October Trade Balance (expected -$43.00 billion) cross the wires.

Similar to index futures, Treasuries hold gains with the 10-yr yield down one basis point at 2.31%.

In U.S. corporate news of note:

Cooper Companies (COO 112.60, -29.45): -20.7% after missing earnings/revenue estimates and guiding well below analyst expectations.
Ambarella (AMBA 54.00, -3.88): -6.7% after below-consensus Q4 guidance overshadowed better than expected earnings and revenue.
Big Lots (BIG 43.19, +0.45): +1.1% after reporting a one-cent miss and raising the lower end of its earnings guidance.

Reviewing overnight developments:

Asian markets ended lower. Japan's Nikkei -2.2%, China's Shanghai Composite -1.7%, and Hong Kong's Hang Seng -0.8%
In economic data:
Japan's Average Cash Earnings +0.7% year-over-year (consensus 0.4%; prior 0.4%), October Overtime Pay +1.2% year-over-year (last 1.4%), and November Household Confidence 42.6 (expected 41.8; previous 41.5)
Australia's October Retail Sales +0.5% month-over-month, as expected (previous +0.4%)
New Zealand's ANZ Commodity Price Index -5.6% month-over-month (previous 7.1%)
In news:
China's Premier Li Keqiang said the country will intensify its supply and demand side structural reforms in 2016 while also encouraging consumption

Major European indices trade mostly lower. Germany's DAX -0.5%, France's CAC -0.5%, and UK's FTSE -0.1%. Elsewhere, Spain's IBEX -0.6% and Italy's MIB +0.1%
Economic data was limited:
Eurozone Retail PMI 48.5 (previous 51.3) Germany's October Factory Orders +1.8% month-over-month (expected 1.2%; previous -0.7%)
Spain's October Industrial Production +4.0% year-over-year (consensus 3.6%; last 3.7%)
Swiss November CPI -0.1% month-over-month (expected -0.1%; previous 0.1%); -1.4% year-over-year (consensus -1.3%; last -1.4%)
In news:
The Bank of France has lowered its growth and inflation outlook, expecting GDP growth of 1.4% in 2016 (down from 1.8%) and 1.6% in 2017 (down from 1.9%). Meanwhile, harmonized inflation is expected to increase 1.0% in 2016 (down from 1.4%) and 1.5% in 2017 (down from 1.7%)

5:38 am: [BRIEFING.COM] S&P futures vs fair value: +10.00. Nasdaq futures vs fair value: +16.00.

5:38 am: [BRIEFING.COM] Nikkei...19,504.48...-435.40...-2.20%. Hang Seng...22,417.01...-62.70...-0.30%.

5:38 am: [BRIEFING.COM] FTSE...6,249.82...-25.80...-0.40%. DAX...10,718.29...-69.60...-0.70%.

Special thanks to Bloomberg, Briefing, 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

http://www.thestrategylab.com
Phone: +1 708 572-4885
Business Hours: 8am - 5pm est (Mon - Fri)
Skype Messenger: kebec2002
wrbanalysis@gmail.com