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 @ $1,150.00 dollars or +11.50 points, Emini ES ($ES_F) futures @ $0.00 dollars or +0.00 points, Light Crude Oil CL ($CL_F) futures @ $0.00 dollars or +0.00 points, Gold GC ($GC_F) futures @ $200.00 dollars or +2.00 points and EuroFX 6E ($6E_F) futures @ $0.00 dollars or +0.0000 ticks. Total Profit @ $1,350.00 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=124&t=1670

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) my thought process from trade to trade 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. If you join the chat room and then you do not ask any questions about WRB Analysis in your own trading...the chat room will not be useful to you. Chat room access instructions @ http://www.thestrategylab.com/tsl/forum/viewforum.php?f=164

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 (answering your questions) prior to purchasing the Volatility Trading Report (VTR).

Trading Plan Daily Routine @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=226&t=2114

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

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.

Stocks Slip As Investors Hit Pause On Rally


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

NEW YORK (CNNMoney)
Stocks fell Tuesday as investors hit the pause button a day after the S&P 500 closed at yet another record high.

The Dow, S&P 500 and Nasdaq all slipped slightly. But this year has been a strong one for stocks, with all three indexes up more than 20% so far. But investors are wary to make big bets ahead of the Federal Reserve's policy meeting next week, when it will decide whether to continue pumping money into the economy at its current rate of $85 billion a month.

Though the broader market was little changed, a number of high-profile companies were making big news.

General Motors (GM, Fortune 500)announced a new CEO. The company named product development chief Mary Barra as next chief, succeeding Dan Akerson, who is stepping down. The U.S. government revealed Monday that it had sold the last of its stake in the automaker. Shares fell Tuesday but are still up more than 40% this year.

Lululemon (LULU) shares dipped after the yoga retailer announced that Laurent Potdevin will become CEO of the company in January, replacing outgoing CEO Christine Day. Potdevin had been the president of shoe company TOMS. Lululemon also said founder Chip Wilson will step down as chairman in the spring. Lululemon struggled through several very public product recalls this year.

Some traders on StockTwits were pleased with the news.

"$LULU appointed Laurent Potdevin as CEO, previously President of TOMS Shoes," said Cow. "Good choice. Upgrades coming. Short squeeze to $80. Bullish."

But most were skeptical of the move.

"$LULU lets not get to excited, New CEO Cannot Save Lululemon," said Trader_m3. "The glory dayz are over."

Given that Lululemon reports earnings on Thursday, the timing of the move was particularly concerning.

"$LULU anyone shorting this here?" asked scottsdalem. "It's suspicious when a new CEO is announced just 2 days before the ER. Rushing???"

Twitter (TWTR) shares surged nearly 6%. The stock hit an all-time high above and has now doubled from its IPO price.

* Video - Twitter soars but still has much to prove

Some traders were optimistic, including Constantine1 -- who said Twitter could be on its way to become the next Apple (AAPL, Fortune 500) or Google (GOOG, Fortune 500): "$TWTR Don't sell one share of this stock - has a chance to be the next $GOOG/$APPL."

But most were wary of Twitter's big jump.

"TWTR has reached unsustainable levels," said goprules. "Expect correction & profit taking soon."

Though there wasn't any clear news driving up shares of Twitter, some traders cited rumors that Carl Icahn, who has had a great year in part due to his investment in Netflix (NFLX), is buying Twitter.

"$TWTR So all the excitement is about Uncle Icahn trying to inflate this one like $NFLX? hmmmm....." said Silence.

* Why Cerberus still hasn't sold Freedom Group

Bank stocks edged higher after federal rules officially announced the final details of the long-awaited Volcker Rule -- a key piece of the 2010 Dodd-Frank financial reform law. Shares of Goldman Sachs (GS, Fortune 500) and Morgan Stanley (MS, Fortune 500) rose more than 1% while JPMorgan Chase (JPM, Fortune 500) also gained some ground. Bank of America (BAC, Fortune 500) shares finished slightly lower.

On the earnings front, Toll Brothers (TOL)were down slightly even though the homebuilder topped profit and revenue estimates.

Gun maker Smith & Wesson (SWHC) soared in extended trading after the company reported sales and earnings that topped forecasts as well as strong guidance. The company, as well as rival gun maker Sturm, Ruger (RGR), have surged this year as calls for stricter gun control laws of have started to wane in the year since the tragic shooting at Sandy Hook Elementary school in Newtown, Conn.





4:15 pm: [BRIEFING.COM] The major averages spent the entire session in a steady downtrend, but despite persistent selling pressure, today's losses were limited in scope. The Dow, S&P 500, and Nasdaq shed between 0.2% and 0.3% while the Russell 2000 lagged, falling 0.9%.

The underperformance of the Russell 2000 was likely owed in part to tax-loss selling, which tends to pick up this time of year. Small-caps often feel that pinch in a stronger fashion than large-cap issues since individual retail investors factor more prominently in the behavior of small-cap stocks. Large-cap stocks, on the other hand, have a stronger institutional shareholder base that may be less sensitive to the timing of tax-loss harvesting at year-end due to being tax exempt or having different taxable years.

U.S. equities began the session with modest losses, tracking the performance of their European counterparts. An early bid lifted the Nasdaq and S&P 500 briefly into positive territory, but a second round of selling into the European close pushed the indices back into the red where they spent the remainder of the session.

Countercyclical sectors lagged throughout the day with consumer staples and health care falling 0.9% and 0.4%, respectively. The health care space was pressured by biotechnology as the iShares Nasdaq Biotechnology ETF (IBB 219.64, -1.85) lost 0.8%. Meanwhile, the other two defensively-geared sectors-telecom services (-0.8%) and utilities (-1.0%)-ended at the bottom of the leaderboard.

Things looked a bit different on the cyclical side where all six groups finished in-line or ahead of the broader market. However, only materials (+0.3%) and discretionary shares (+0.1%) were able to register gains.

The materials sector received significant support from miners. The Market Vectors Gold Miners ETF (GDX 22.03, +0.82) jumped 3.9% as gold futures advanced 2.3% to $1262.00 per troy ounce.

Elsewhere, the discretionary space drew strength from momentum names as Amazon.com (AMZN 387.78, +2.89), eBay (EBAY 51.92, +0.23), and Netflix (NFLX 363.10, +7.43) gained between 0.4% and 2.1%.

Also of note, financials settled in-line with the broader market even as Goldman Sachs (GS 169.73, +2.06) outperformed with a gain of 1.2%. It is worth mentioning that the Volcker Rule received clearance from all five regulatory agencies today, but CFTC Commissioner Bart Chilton said the Rule is unlikely to be implemented before 2015.

Treasuries climbed throughout the day with the 10-yr yield falling five basis points to 2.80%.

Trading volume was well below average as only 619 million shares changed hands on the floor of the New York Stock Exchange.

In today's economic data, wholesale inventories increased 1.4% in October after increasing an upwardly revised 0.5% (from 0.4%) in September. The Briefing.com consensus expected wholesale inventories to increase 0.3%. The increase in inventories followed a sizable gain in overall inventories in the third quarter. It was expected that inventory growth would slow considerably throughout the fourth quarter.

Durable inventories increased 0.4% in October. Big gains in autos (2.7%) and furniture (1.3%) offset declines in computer (-5.7%) and professional (-1.4%) equipment. Meanwhile, nondurable inventories increased 3.0% in October, up from a 1.4% September gain. Almost two-thirds of the increase in nondurable goods inventories was the result of a 17.0% increase in farm product inventories.

Separately, the Job Openings and Labor Turnover Survey came in at 3.925 million, which follows the prior reading of 3.913 million.

Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET and the November Treasury Budget will cross the wires at 14:00 ET.

Nasdaq +34.5% YTD
Russell 2000 +31.8% YTD
S&P 500 +26.4% YTD
DJIA +21.9% YTD

3:35 pm: [BRIEFING.COM] Commodities ended mixed this morning with metals higher and energy and agriculture mixed.

Gold and silver ended today's session with strong gains and finished just under its HoD. Feb gold ended today $31.90 higher at $1261/oz, while Mar silver gained 0.80% to $20.33/oz.

Crude oil held gains ahead of inventory data with the Jan contract rising $0.85 higher at $98.55/barrel. Jan nat gas rose $0.12 to $4.24/MMBtu.

3:00 pm: [BRIEFING.COM] With one hour remaining in today's session, the major averages continue hovering near their lows. Even though today's selling pressure has been persistent enough to short-circuit the S&P 500's rally off its opening levels, it has not been strong enough to cause a significant decline for the benchmark index.

The story has been a bit different for small-caps as the Russell 2000 trades lower by 0.8%. As mentioned earlier, the underperformance of the index is likely owed in part to tax-loss selling, which tends to pick up this time of year.

Elsewhere, Treasuries hover near their highs after climbing steadily throughout the session. The 10-yr note trades higher by 12 ticks with its yield down five basis points at 2.80%.

2:30 pm: [BRIEFING.COM] Stocks remain near their lows as the underperformance of defensively-oriented consumer staples (-0.8%) and health care (-0.6%) outweighs the relative strength of cyclical groups like consumer discretionary (+0.1%), industrials (-0.1%), and materials (+0.3%).

Investors received just two economic reports today (October Wholesale Inventories and October JOLTS), but neither one is known for being a market-mover. Similarly, tomorrow's session is also unlikely to be impacted by economic data with only the weekly MBA Mortgage Index and the November Treasury Budget on the schedule.

On Thursday, consumer spending will be in focus with the November retail sales report set to be released at 8:30 ET. The Briefing.com consensus expects an increase of 0.6% to follow last month's uptick of 0.4%.

2:05 pm: [BRIEFING.COM] The S&P 500 has notched a fresh low in a move that involved the industrial sector (-0.1%) slipping into the red. The group continues to trade ahead of the broader market, but given the recent slip, only two groups remain in positive territory.

The materials sector has led since the open, but has trimmed its gain to 0.3%. Elsewhere, the discretionary space hovers just above its flat line with momentum names like Amazon.com (AMZN 388.45, +3.56), eBay (EBAY 52.04, +0.35), and Netflix (NFLX 363.09, +7.42) contributing to its outperformance.

1:30 pm: [BRIEFING.COM] The stock market is down today, but for the most part continues to exhibit a good bit of resilience to selling efforts. Just when it seems as if sellers are going to take control of the action, their efforts get thwarted with renewed buying interest.

One area of the market, though, that has proven to be less resilient in recent weeks is the small-cap universe. Including today's 0.7% decline, which leads all major indices, the Russell 2000 is down 1.8% this month versus the S&P 500, which is basically flat.

The underperformance of the Russell 2000 is probably owed in part to tax-loss selling, which tends to pick up this time of year. Small-caps often feel that pinch in a stronger fashion than large-cap issues since individual retail investors factor more prominently in the behavior of small-cap stocks. Large-cap stocks, on the other hand, have a stronger institutional shareholder base that may be less sensitive to the timing of tax-loss harvesting at year-end due to being tax exempt or having different taxable years.

Separately, the $30 bln 3-yr note auction drew a high yield of 0.631% on strong demand that was evident in a solid 3.55x bid-to-cover ratio that exceeded the 12-auction average of 3.33x. The 10-yr note (+13/32 at 2.795%) is at its best levels of the day.

1:00 pm: [BRIEFING.COM] At midday, the S&P 500 trades lower by 0.2% as seven of ten sectors register losses. The benchmark index began the session with a three-point loss as cautious action in Europe contributed to the opening decline. The index then staged a recovery, but was only able to work its way back to the flat line before heading to fresh lows. That decline coincided with additional selling in Europe as markets sold off into the close. Since then, the S&P has been able to reclaim roughly three points.

Despite the downward trend that began around 11:00 ET, the benchmark index has held inside of a six-point range.

Countercyclical sectors have paced the bulk of the decline as consumer staples and health care display respective losses of 0.9% and 0.4%. Telecom services (-0.6%) and utilities (-0.9%) can also be found among the laggards, but the two groups have little impact when it comes to driving the broader market.

On the cyclical side, the situation is a bit more mixed as energy (-0.2%) and financials (-0.2%) trade in-line with the S&P while the materials (+0.4%) sector is the only group trading with a gain larger than 0.1%.

The materials space has received significant support from miners. The Market Vectors Gold Miners ETF (GDX 22.05, +0.84) is higher by 4.0% while gold futures trade up 2.3% at $1262.00 per troy ounce.

Also of note, today's modest losses have pushed some participants in the direction of volatility protection as the CBOE Volatility Index (VIX 14.16, +0.67) trades higher by 5.0%. However, the VIX remains below 14.50%, which marks the top end of a range that has held for the better part of the past two months.

Elsewhere, Treasuries have been climbing steadily since the start of the overnight session. The 10-yr yield is lower by three basis points at 2.81%.

In today's economic data, wholesale inventories increased 1.4% in October after increasing an upwardly revised 0.5% (from 0.4%) in September. The Briefing.com consensus expected wholesale inventories to increase 0.3%. The increase in inventories followed a sizable gain in overall inventories in the third quarter. It was expected that inventory growth would slow considerably throughout the fourth quarter.

Durable inventories increased 0.4% in October. Big gains in autos (2.7%) and furniture (1.3%) offset declines in computer (-5.7%) and professional (-1.4%) equipment. Meanwhile, nondurable inventories increased 3.0% in October, up from a 1.4% September gain. Almost two-thirds of the increase in nondurable goods inventories was the result of a 17.0% increase in farm product inventories.

Separately, the Job Openings and Labor Turnover Survey came in at 3.925 million, which follows the prior reading of 3.913 million.

12:25 pm: [BRIEFING.COM] Not much has changed since our last update as the S&P 500 remains near its low. The materials sector(+0.4%) continues to stand out while health care (-0.6%) is a notable laggard. The third-largest sector hovers near its low as biotechnology weighs. The iShares Nasdaq Biotechnology ETF (IBB 219.44, -2.05) trades down 0.9%.

With stocks on their lows, the CBOE Volatility Index (VIX 14.19, +0.70) indicates some participants have turned towards a measure of downside protection. However, the VIX Index remains below 14.50%, a level which marks the top end of a range that has held for the better part of the past two months.

12:00 pm: [BRIEFING.COM] The S&P 500 has slipped to a fresh low in a move that coincided with some end-of-day selling in Europe which pressured France's CAC (-1.0%) and Great Britain's FTSE (-0.6%) to lows of their own. With markets in Europe now closed for the day, the focus is expected to be squarely on U.S. equities.

The materials sector (+0.5%) is the only group which remains near its best level of the day, while other outperformers have retreated from their highs. On the downside, the weakest group of the day, consumer staples, has widened its decline to 1.0%. Another defensive group-health care-has also become a bit of a drag on the broader market as it trades lower by 0.4%.

11:25 am: [BRIEFING.COM] Recent action saw equity indices return towards their lows after the Nasdaq made a brief appearance in positive territory. Overall, the losses remain limited in scope as the S&P 500 (-0.1%) trades inside of a four-point range.

At this juncture, there are just three sectors-consumer staples (-0.7%), telecom services (-0.5%), and utilities (-0.7%)-sporting losses larger than 0.3%, but only the staples sector is large enough to have a say in the direction of the broader market.

On the upside, the materials space trades higher by 0.4% with noteworthy support being provided by miners. The Market Vectors Gold Miners ETF (GDX 22.05, +0.84) is higher by 4.0% while gold futures trade up 2.2% at $1261.60 per troy ounce.

11:00 am: [BRIEFING.COM] With 90 minutes of the session in the rear-view mirror, the major averages have erased the bulk of their losses. In fact, the Nasdaq has retraced its entire opening decline and now trades with a modest gain of 0.1%.

Even though the Nasdaq sports a modest gain, the technology sector trades in-line with the S&P 500, which hovers just below its flat line. Only one other cyclical group-energy-hovers in the red while consumer discretionary, financials, industrials, and materials hold gains between 0.1% and 0.6%.

Elsewhere, Treasuries have trimmed their gains. The benchmark 10-yr note is higher by seven ticks with its yield down three basis points at 2.82%.

10:35 am: [BRIEFING.COM] Commodities are mostly higher this morning, while the dollar index is currently below 80 and modestly above its session low. Gold, silver and coffee futures are the leaders in the commodity complex this morning with agriculture futures among the worst performers. However, ag is only modestly lower.

Jan crude oil has been in positive territory all session so far as rose as high as +0.9% at $98.24/barrel.

Jan natural gas is +0.7% at $4.26/MMBtu.

Precious metals are showing strong gains and gold and silver remains near session highs. Feb gold is currently +2.4% at $1263.50/oz, while Mar silver is +3.4% at $20.36/oz.

10:05 am: [BRIEFING.COM] Equity indices have returned to their opening lows as most sectors continue to hover in the red. Defensively-minded groups are exerting pressure on the broader market as consumer staples and health care hold respective losses of 0.6% and 0.2%. On the cyclical side, the largest sector, technology, is lower by 0.2%.

Just reported, October wholesale inventories rose 1.4% while the Briefing.com consensus expected an increase of 0.3%. Today's report follows last month's revised increase of 0.5%.

Separately, the JOLTS report came in at 3.925 million, which follows the prior reading of 3.913 million.

9:45 am: [BRIEFING.COM] The major averages began the session on a modestly lower note with the early losses limited to no more than 0.3%. From a sector standpoint, eight of ten groups hover in the red while consumer discretionary (+0.1%) and materials (+0.2%) outperform.

Also of note, the financial sector (-0.1%) trades just ahead of the broader market with Goldman Sachs (GS 170.73, +3.05) contributing to the outperformance. The stock trades higher by 1.8% amid comments from CFTC Commissioner Bart Chilton, who said the Volcker Rule is unlikely to be implemented before 2015.

Elsewhere, Treasuries remain near their highs with the 10-yr yield down four basis points at 2.81%.

9:17 am: [BRIEFING.COM] S&P futures vs fair value: -4.00. Nasdaq futures vs fair value: -5.80. After gaining 1.3% over the past two sessions, the S&P 500 is set to start the day on a modestly lower note. The S&P 500 futures trade 0.3% below fair value with the entire decline coming in the past two hours. There was no specific news catalyst responsible for the turn, but the retreat has coincided with profit-taking in Europe where markets in France and Germany trade lower by 0.9% each.

With equity futures on the defensive, the bond market has received a steady bid, and the 10-yr note currently sits just off its high with its yield down four basis points at 2.81%.

Also of note, the foreign exchange market is seeing a bit of a safety bid with the EURJPY carry hovering near its low at 141.48. The Swiss franc has also received a bid, pressuring USDCHF to its lowest level since November 2011. The pair trades near 0.8870.

Today's economic data will be limited to the October wholesale inventories report and the October JOLTS -- Jobs Openings report. Both items will be released at 10:00 ET.

The U.S. Treasury will auction $30 billion in 3-yr notes.

8:57 am: [BRIEFING.COM] S&P futures vs fair value: -5.10. Nasdaq futures vs fair value: -7.50. The S&P 500 futures trade lower by 0.3%.

Major Asian markets ended modestly lower with Japan's Nikkei (-0.3%) and Hong Kong's Hang Seng (-0.3%) pacing the regional decline. In Japan, Prime Minister Shinzo Abe has suffered a notable drop in the polls with Kyodo News citing a 10.3 percentage point decline to 47.6%. This comes amid the passage of a highly-controversial secrecy bill. Elsewhere, China's Shanghai Composite settled little changed. In economic data, China's Fixed Asset Investment increased 19.9% year-over-year (20.0% forecast, 20.1% prior), industrial production increased 10.0% year-over-year (10.1% forecast, 10.3% prior), and retail sales increased 13.7% year-over-year (13.3% forecast, 13.3% prior). Elsewhere, Japan's M2 Money Stock rose 4.3% year-over-year (4.1% last), as expected. Separately, the Tertiary Industry Activity Index declined 0.7% month-over-month (0.3% forecast, 0.0% prior). Also of note, the Household Confidence Index rose to 42.5 from 41.2 (44.2 forecast) and Machine Tool Orders rose 15.4% (8.4% prior). Australia's Home Loans increased 1.0% month-over-month (1.0% forecast, 3.5% prior) and the NAB Business Confidence Index ticked down to 5 from 6.

In Japan, the Nikkei shed 0.3% with technology pacing the decline. Konami, Sony, and Trend Micro lost between 1.9% and 2.6%. Yahoo Japan outperformed, jumping 5.5%.
Hong Kong's Hang Seng ended lower by 0.3% as retailers Li & Fung and Want Want China Holdings fell 1.8% and 1.4%, respectively. Energy names displayed relative strength as CNOOC added 0.8%.
In China, the Shanghai Composite settled flat following an uneventful session. Financial China Vanke outperformed, rising 0.6%.

Major European indices spent the first half of the session near their flat lines, but have since dropped to lows. France's CAC (-0.6%) and Germany's DAX (-0.6%) are pacing the decline with the widely-followed EURJPY carry also sliding. The pair has retreated from the 142.15 area to just below 141.50, where it currently trades. Among news of note, The Financial Times reports that Germany and France are nearing an agreement on the structure of the elusive banking union. In a speech this morning, Mario Draghi also urged European governments to complete the union as quickly as possible.

Economic data was plentiful. French industrial production decreased 0.3% month-over-month (0.1% forecast, -0.3% prior). Italian industrial production decreased 0.5% year over-year (-2.5% forecast, -2.9% prior) while the month-over-month reading ticked up 0.5% (0.2% forecast, 0.2% prior). Third quarter GDP was unchanged quarter-over-quarter (-0.1% forecast, -0.1% prior) while the year-over-year reading declined 1.8%(-1.9% forecast, -1.8% prior). Great Britain's industrial production increased 3.2% year-over-year (3.2% expected, 2.2% prior) and 0.4% month-over-month (0.3% forecast, 0.9% prior). The country's trade deficit narrowed to GBP9.73 billion from GBP10.10 billion (-GBP9.35 billion forecast). Lastly, Norwegian CPI increased 0.1% month-over-month (0.1% forecast, 0.1% prior). Separately, PPI increased 3.2% year-over-year (2.7% forecast, 2.3% prior).

Great Britain's FTSE is lower by 0.5% with TUI Travel (-2.5%) pacing the decline after lowering its guidance for the first half of 2014. On the upside, Weir Group outperforms, trading higher by 3.2%.
In France, the CAC holds a loss of 0.6% as defense contractors EADS and Safran lag. The two names hold respective losses of 3.2% and 1.9% after EADS announced plans to cut nearly 6,000 jobs.
Germany's DAX trades down 0.7% as exporters weigh. BMW and Volkswagen are lower by 1.3% and 1.0%, respectively.

8:31 am: [BRIEFING.COM] S&P futures vs fair value: -3.60. Nasdaq futures vs fair value: -5.30. U.S. equity futures hover near their lows after spending the past hour in a steady decline with comparable price action across European indices. The S&P 500 futures trade lower by 0.2% while markets in France, Germany, and the United Kingdom display losses close to 0.4% apiece.

The retreat in futures has coincided with a continuation of an overnight bid in the Treasury market. The benchmark 10-yr note trades higher by nine ticks with its yield down three basis points at 2.81%, which represents a session low. Also of note, gold futures hover at their best levels of the session (+2.0% at $1259.60/ozt).

8:03 am: [BRIEFING.COM] S&P futures vs fair value: -1.40. Nasdaq futures vs fair value: -0.80. U.S. equity futures hold modest losses following a range-bound overnight session. The S&P 500 futures trade lower by 0.1%.

Reviewing overnight developments:

Major Asian markets ended modestly lower. Japan's Nikkei -0.3%, Hong Kong's Hang Seng -0.3%, and China's Shanghai Composite settled little changed.
Investors received several economic data points:
China's Fixed Asset Investment increased 19.9% year-over-year (20.0% forecast, 20.1% prior), industrial production increased 10.0% year-over-year (10.1% forecast, 10.3% prior), and retail sales increased 13.7% year-over-year (13.3% forecast, 13.3% prior)
Japan's M2 Money Stock rose 4.3% year-over-year (4.1% last), as expected. Separately, the Tertiary Industry Activity Index declined 0.7% month-over-month (0.3% forecast, 0.0% prior). Also of note, the Household Confidence Index rose to 42.5 from 41.2 (44.2 forecast) and Machine Tool Orders rose 15.4% (8.4% prior)
Australia's Home Loans increased 1.0% month-over-month (1.0% forecast, 3.5% prior) and the NAB Business Confidence Index ticked down to 5 from 6
In news:
In Japan, Prime Minister Shinzo Abe has suffered a notable drop in the polls with Kyodo News citing a 10.3 percentage point decline to 47.6%. This comes amid the passage of a highly-controversial secrecy bill
Major European indices are little changed. France's CAC -0.2%, Great Britain's FTSE -0.1%, and Germany's DAX hovers just below its flat line. Elsewhere, Italy's MIB -0.1% and Spain's IBEX +0.4%.
In economic news:
French industrial production decreased 0.3% month-over-month (0.1% forecast, -0.3% prior)
Italian industrial production decreased 0.5% year over-year (-2.5% forecast, -2.9% prior) while the month-over-month reading ticked up 0.5% (0.2% forecast, 0.2% prior). Third quarter GDP was unchanged quarter-over-quarter (-0.1% forecast, -0.1% prior) while the year-over-year reading declined 1.8%(-1.9% forecast, -1.8% prior)
Great Britain's industrial production increased 3.2% year-over-year (3.2% expected, 2.2% prior) and 0.4% month-over-month (0.3% forecast, 0.9% prior). The country's trade deficit narrowed to GBP9.73 billion from GBP10.10 billion (-GBP9.35 billion forecast)
Norwegian CPI increased 0.1% month-over-month (0.1% forecast, 0.1% prior). Separately, PPI increased 3.2% year-over-year (2.7% forecast, 2.3% prior)
Looking at news:
The Financial Times reports that Germany and France are nearing an agreement on the structure of the elusive banking union. In a speech this morning, Mario Draghi also urged European governments to complete the union as quickly as possible.

In U.S. corporate news:

PVH (PVH 125.00, -2.43): -1.9% after its below-consensus Q4 earnings and revenue guidance overshadowed its bottom-line beat on better-than-expected sales.
Toll Brothers (TOL 34.85, +1.27): +3.8% after reporting better-than-expected earnings on in-line revenue.

Today's economic data will be limited to the October wholesale inventories report and the October JOLTS -- Jobs Openings report. Both items will be released at 10:00 ET.

The U.S. Treasury will auction $30 billion in 3-yr notes.

6:41 am: [BRIEFING.COM] S&P futures vs fair value: +3.00. Nasdaq futures vs fair value: +6.50.

6:41 am: [BRIEFING.COM] Nikkei...15611.31...-38.90...-0.30%. Hang Seng...23744.19...-67.00...-0.30%.

6:41 am: [BRIEFING.COM] FTSE...6568.20...+8.60...+0.10%. DAX...9210.06...+14.90...+0.20%.

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

http://www.thestrategylab.com
Phone: +1 708 572-4885
Business Hours: 8am - 5pm est (Mon - Fri)
Skype Messenger: kebec2002
questions@thestrategylab.com
Go Back To TheStrategyLab.com Homepage
Market Update