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 @ $690.00 dollars or +6.90 points, Emini ES ($ES_F) futures @ $375.00 dollars or +7.50 points, Light Crude Oil CL ($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 @ $1,065.00 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=127&t=1718

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 or you do not document (journal) your own thoughts from trade to trade...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=232&t=2209

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

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 Subdued As Investors Wait For Yellen


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

NEW YORK (CNNMoney)
Stocks tiptoed higher Monday as investors await testimony from the new Federal Reserve chair.

After languishing for most of the day, the Dow Jones industrial average, the S&P 500 and the Nasdaq all inched higher in the final hour of trading.

Investors were reluctant to make any big moves before Tuesday's Congressional testimony by Fed Chair Janet Yellen. This will be Yellen's first time testifying since taking control of the central bank this month. Investors will be watching to see if she sheds any light on plans to further taper, or slow down, the Fed's stimulus program.

Some investors believe that the Fed might have second thoughts about tapering, especially after the disappointing jobs report on Friday. There have been other signs of economic weakness as well. The Dow surged 160 points Friday as investors shrugged off the tepid jobs report and put their faith in the Fed.

"The economy is moving somewhat slower than expected and possibly even slow enough to get the Fed to slow its tapering," said John Stoltzfus, chief investment strategist at Oppenheimer.

* Janet Yellen takes center stage

What's moving: Shares of Apple (AAPL, Fortune 500) rose after hedge fund manager Carl Icahn dropped a potential proxy fight with the iPhone maker regarding its share repurchase program. The stock was one of the top gainers in CNNMoney's Tech 30 index.

Icahn has been pushing Apple to use its cash to buy back more of its own stock. But Icahn said in a letter to Apple shareholders Monday that he now sees no reason to pursue a fight with Apple in light of the company's recent "opportunistic" and "aggressive" share purchases.

The market's reaction to Icahn's letter was a surprise to one StockTwits trader.

"Huh. looks like mkt LIKES Icahn's backtracking. Interesting," said kleo.

Apple's strength came amid weakness in Google shares, which have been on a tear recently. Google (GOOG, Fortune 500) was flat Monday, but the stock has gained more than 30% in the past six months.

* Tech stocks are the new safe havens?

"$AAPL Wall Street finally realizing that apple is extremely cheap relative to google," said proinvestor1.

Tesla (TSLA) shares rose to an all-time high after the Chinese government announced plans to extend subsides for electric cars. Investors are also gearing up for Tesla's next earnings report later this month. Some traders believe the stock will continue moving higher in the near term.

"$TSLA good chance 200 will be broken tomorrow. 250 after earnings?" said Jason100.

But others are betting on a big pullback after the report comes out.

"$TSLA Get ready to buy those puts before ER. This going to have one spectacular sell off," said AKEB

The news of the extended subsides, which are part of China's effort to curb pollution, also lifted shares of Chinese electric car maker Kandi Technologies (KNDI). The stock, which trades on the Nasdaq, was up more than 8%.

"$KNDI News is news though and this means more long term revenue now and way into the future," said Nosh.

Toy maker Hasbro (HAS) missed on earnings expectations but the company increased its dividend. Shares rose in early trading. The reaction to Hasbro's results was a big contrast to how investors treated rival Mattel (MAT, Fortune 500) after it reported weak holiday sales last month. Mattel plunged on that news.

Yelp (YELP) shares rose on reports the online review site will partner with Yahoo (YHOO, Fortune 500) to incorporate reviews in Yahoo's search engine's results.

European markets closed narrowly mixed. Most Asian markets ended with sizable gains.





4:15 pm: [BRIEFING.COM] The stock market began the new trading week on a subdued note. The Dow Jones Industrial Average, Nasdaq, and S&P 500 posted gains between 0.1% and 0.5% with the Nasdaq Composite ending in the lead.

Overall, the session had a 'wait-and-see' feel as many participants stuck to the sidelines ahead of tomorrow's Humphrey-Hawkins testimony on monetary policy. Although Fed Chair Janet Yellen is expected to strike a similar tone to the latest FOMC policy statement, the testimony will be the first public appearance for the new Fed Chair. Janet Yellen's prepared remarks will be released at 8:30 ET while the Q&A before the House Financial Services Committee is scheduled to begin at 10:00 ET.

The limited participation was reflected in today's trading volume as only 640 million shares changed hands at the NYSE. In fact, the final tally marked the lowest daily volume since January 28.

Seven out of ten sectors posted gains with health care (+0.9%) ending in the lead. The group outperformed throughout the session thanks in part to the relative strength of biotechnology. The iShares Nasdaq Biotechnology ETF (IBB 250.72, +4.39) advanced 1.8% and also provided support to the Nasdaq Composite.

Like health care, the remaining countercyclical sectors also finished in the green, posting gains between 0.4% and 0.7%.

Things were a bit more mixed on the cyclical side where financials (+0.1%), technology (+0.3%), and materials (+0.4%) outperformed while consumer discretionary (-0.04%), energy (-0.6%), and industrials (-0.6%) lagged.

Notably, the industrial sector was pressured by broad weakness among transports. The Dow Jones Transportation Average fell 1.0% as 17 of its 20 components ended in the red. The bellwether complex lagged for the second consecutive session after coming up short of its 50-day moving average (7272) on Friday.

Elsewhere, the energy sector finished behind the remaining groups as large components like Chevron (CVX 111.69, -0.36) and ExxonMobil (XOM 89.52, -1.06) lagged. The two Dow members lost 0.3% and 1.2%, respectively.

Treasuries settled modestly higher with the 10-yr yield off one basis point at 2.67%.

Tomorrow, the wholesale inventories report for December will be released at 10:00 ET.
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Nasdaq Composite -0.7% YTD
S&P 500 -2.6% YTD
Russell 2000 -3.7% YTD
Dow Jones Industrial Average -4.7% YTD

3:35 pm: [BRIEFING.COM]

Natural gas futures lost steam, while crude oil futures rise above $100/barrel.
Mar natural gas finished today's session 20 cents lower at $4.58/MMBtu. Mar crude oil closed $0.20 higher at $100.07/barrel.
Precious metals showed some gains today with both gold and silver futures rising higher today.
Apr gold rose $11.90 to $1274.80/oz and Mar silver rose $0.19 to $20.12/oz.

3:00 pm: [BRIEFING.COM] The S&P 500 trades higher by 0.1% with one hour remaining in the session.

Today's participation has been very limited, which isn't all that surprising considering tomorrow's Humphrey-Hawkins testimony has the potential to move markets. Fed Chair Janet Yellen's prepared remarks will be released at 8:30 ET while the testimony is scheduled to begin at 10:00 ET.

At this time, only 370 million shares have changed hands on the floor of the NYSE, suggesting today's final tally is highly unlikely to cross the 200-day average of 717 million.

2:30 pm: [BRIEFING.COM] Recent action saw the S&P 500 and Russell 2000 join the Nasdaq (+0.4%) in the green. Meanwhile, the Dow (-0.1%) remains in the red as 16 of its 30 components register losses. Out of the 16 decliners, UnitedHealth Group (UNH 70.00, -1.36) is the only member that holds a loss in excess of 1.0%.

Dow underperformance has been a recurring theme so far in 2014 as the index holds a year-to-date loss of 4.8% versus a 2.7% decline for the broader S&P 500. Elsewhere, the tech-heavy Nasdaq is down 0.8% since the start of the year.

2:00 pm: [BRIEFING.COM] Not much has changed since our recent update as equity indices continue to hover near their flat lines. In our midday update, we highlighted the underperformance of small caps, but the Russell 2000 has trimmed its loss to 0.1%, and now trades essentially in-line with the broader market.

Elsewhere, there hasn't been much change among the ten economic sectors as six groups display gains between 0.2% and 0.5% while four-consumer discretionary, financials, energy, and industrials-hold losses between 0.2% and 0.7%.

Also of note, participants continue to show some demand for downside protection as indicated by a modest 0.4% gain in the CBOE Volatility Index (VIX 15.34, +0.05).

1:25 pm: [BRIEFING.COM] In most respects, it has been a pretty aimless trade today with participants marking time ahead of tomorrow's testimony from Fed Chair Janet Yellen on the economy and monetary policy. That important happening notwithstanding, it is reasonable that the market would spend a bit of time consolidating recent buying efforts that have pushed the S&P 500 and Nasdaq higher by 3.4% and 4.0%, respectively, from their lows last Wednesday.

That consolidation effort is apt to take on more urgency, though, in the event Ms. Yellen sounds more hawkish than expected on Tuesday. For now, it is a wait-and-see kind of day.

A key drag on the broader market is that some of the most heavily-weighted sectors are on the defensive at this point -- nothing major, yet their lack of participation is a bit of a wet blanket on things. Laggards in that respect include energy (-0.7%), industrials (-0.7%), financials (-0.2%), and consumer discretionary (-0.2%).

1:00 pm: [BRIEFING.COM] At midday, the major averages are little changed. The Dow (-0.1%) and S&P 500 (-0.1%) hover right below their flat lines while the Nasdaq (+0.3%) outperforms.

Generally speaking, the new trading week has gotten off to a quiet start with most participants sticking to the sidelines ahead of tomorrow's Humphrey-Hawkins testimony on monetary policy. The testimony will be the first public appearance for the new Fed Chair Janet Yellen, and will begin with a 10:00 ET appearance before the House Financial Services Committee.

Even though equity indices are little changed, an underlying sense of caution is present in the market. Small caps are seeing larger losses than the broader market (Russell 2000 -0.3%), Treasuries have received a modest bid (10-yr yield -1 bps at 2.68%), and gold futures (+0.9% at $1274.70/ozt) hover near their highs.

Furthermore, the CBOE Volatility Index (VIX 15.35, +0.06) indicates some participants are showing demand for downside protection and the weakness of the dollar/yen pair (yen strength) has been a headwind to the yen-based carry trade once again. At this juncture, the currency pair trades near 102.20 while yen futures trade higher by 0.1%.

Interestingly, the S&P 500 remains in the red even as six of its ten sectors display gains. Health care (+0.5%) is in the lead while the largest S&P 500 group, technology, outperforms with a gain of 0.3%.

On the downside, energy and industrials both trade with losses close to 0.7% apiece. Notably, the industrial sector has been pressured by transports. The Dow Jones Transportation Average is lower by 1.2% after being unable to reclaim its 50-day moving average (7272) on Friday.

12:30 pm: [BRIEFING.COM] The S&P 500 sits right below its flat line as the quiet session continues. With equity indices holding narrow ranges, it appears participants are comfortable maintaining a wait-and-see approach with Janet Yellen's testimony before the House Financial Services Committee scheduled for tomorrow.

Ms. Yellen's prepared remarks will be released at 8:30 ET while the subsequent Q&A session is expected to receive significant attention since it will be the first public appearance for the new Chair of the Federal Reserve.

12:00 pm: [BRIEFING.COM] The Nasdaq (+0.3%) has climbed to a fresh session high while the S&P 500 remains near its flat line.

The tech-heavy Nasdaq has drawn some of its relative strength from its top component, Apple (AAPL 529.58, +9.90), which trades higher by 1.9%. Biotechnology has also factored into the outperformance of the index as the iShares Nasdaq Biotechnology ETF (IBB 248.79, +2.46) trades up 1.0%.

Fittingly, health care (+0.5%) and technology (+0.3%) sectors trade at their best levels of the day. Another outperforming group, materials, trades higher by 0.5% with help from miners. The Market Vectors Gold Miners ETF (GDX 24.71, +0.80) is higher by 3.4%.

11:30 am: [BRIEFING.COM] The S&P 500 (-0.1%) continues to hold a modest loss while the Nasdaq (+0.2%) has climbed back into the green. Both indices, however, remain inside narrow ranges.

Although the major averages trade little changed, there are several indications suggesting the overall sentiment remains cautious. Treasuries are now higher on the day (10-yr yield +1 bps at 2.67%), gold futures remain near their best levels of the session (+1.0% at $1275.50/ozt), and the CBOE Volatility Index (VIX 15.55, +0.26) suggests participants are showing some demand for volatility protection.

Adding to the cautious sentiment is the modest strength of the Japanese yen as futures on the Japanese currency trade higher by 0.2%.

10:55 am: [BRIEFING.COM] After being unable to hold its flat line, the S&P 500 has slipped to a fresh low. It should be noted the move coincided with a wave of yen strength that sent the dollar/yen pair to new session low of its own. Currently, the pair trades right above the 102.00 level while yen futures trade higher by 0.3%.

Also of note, the financial sector (-0.4%) outperformed during the opening minutes, but has since fallen behind the broader market. The performance of this influential group bears watching as the sector tends to lead the rest of the market.

On the upside, the utilities sector (+0.5%) trades ahead of the remaining groups while another defensive group, health care, has trimmed its gain to 0.2%.

10:35 am: [BRIEFING.COM] Crude oil has been slowly climbing off its LoD of $99.13 and is now in positive territory at $100.03/barrel, up 0.2%

Precious metals are higher this morning with Apr gold +0.9% at $1274.50/oz and Mar silver +1.1% at $20.15/oz. Copper, however, sold off this morning and is now -0.2% at $3.23/lb.

Natural gas futures were in the red all morning, but momentarily moved into positive territory. Mar nat gas is now -1.4% at $4.71/MMBtu.

10:00 am: [BRIEFING.COM] The tech-heavy Nasdaq continues to hold a modest gain of 0.2% while the S&P 500 remains just below its flat line.

Health care (+0.3%) and technology (+0.4%) have built on their opening gains while energy (-0.8%) and industrials (-0.3%) continue showing relative weakness. Notably, the industrial sector is being pressured by the Dow Jones Transportation Average, which trades lower by 0.8%. The bellwether complex lags after being unable to reclaim its 50-day moving average (7272) on Friday.

Defense contractors also weigh on the industrial space as the PHLX Defense Index trades lower by 0.4%.

9:45 am: [BRIEFING.COM] After starting the session with modest losses, the major averages trade in mixed fashion. The Nasdaq trades higher by 0.1% while the S&P 500 holds a loss of 0.1% with eight of ten sectors trading lower.

Growth-sensitive energy (-0.6%) and industrials (-0.3%) have paced the early weakness while technology (+0.1%) and health care (+0.2%) were able to shake off their early losses. Notably, the health care sector has received support from biotechnology as the iShares Nasdaq Biotechnology ETF (IBB 247.51, +1.18) trades higher by 0.5%. In addition to underpinning the health care sector, the biotech ETF has contributed to the outperformance of the Nasdaq Composite.

Treasuries remain little changed with the 10-yr yield at 2.69%.

9:15 am: [BRIEFING.COM] S&P futures vs fair value: -1.50. Nasdaq futures vs fair value: -1.00. Equities are on track to begin today's session on a slightly lower note as futures on the S&P 500 trade almost two points below fair value. Overnight, the global equity markets were fairly quiet but once the Asian session ended, the yen began strengthening.

Yen strength has been a recurring theme since the start of the year and the recent gains in the Japanese currency have pressured equities due to the popularity of the yen-based carry trade, which benefits from rising stocks and a weakening funding currency. Currently, the dollar/yen pair hovers near 102.20 after notching a session low just below 102.10. Meanwhile, yen futures trade higher by 0.1%.

Elsewhere, Treasuries are little changed with the benchmark 10-yr yield at 2.69%.

8:56 am: [BRIEFING.COM] S&P futures vs fair value: -1.60. Nasdaq futures vs fair value: -0.80. The S&P 500 futures trade less than two points below fair value.

Markets across Asia ended mostly higher, piggybacking Friday's gains on Wall Street. In China, the State Council reiterated its 2014 growth target remains at 7.5%. Elsewhere, Japan's December current account balance registered its largest deficit on record (JPY638.6 billion actual versus JPY685.4 billion expected) while the FY2013 number recorded the smallest surplus on record (JPY3.3 trillion).

Japan's Nikkei gained 1.8%, posting its best close in a week. Olympus was the top performer, adding 7.2%, after its earnings beat led to a slew of upgrades.
Hong Kong's Hang Seng shed 0.3% in response to the city's financial secretary indicating a potential tightening in fiscal policy. Property developers lagged with Henderson Land down 2.6% to lead the space lower.
China's Shanghai Composite gained 2.0%, closing at a one-month high. Automakers posted robust gains. BYD and FAW surged the limit, 10%, after Beijing announced it will continue to provide incentives on electrical vehicles for at least the next couple of years as it looks for ways to combat pollution.

Core European indices trade little changed while Spain's IBEX (-1.0%) is being pressured by financials after the European Central Bank Supervisory Chair said that weak banks need to fail for the ECB stress test to be credible.

Participants received several economic data points. Eurozone Sentix Investor Confidence improved to 13.3 from 11.9 (10.7 expected). France's Industrial Production slipped 0.3% month-over-month (0.1% expected, 1.2% last). Italy's Industrial Production fell 0.9% month-over-month (0.2% expected, 0.3% prior) while the year-over-year reading slipped 0.7% (0.4% consensus, 1.5% previous). Swiss unemployment rate held steady at 3.2%, as expected.

Germany's DAX is lower by 0.1% with materials producers BASF and HeidelbergCement both down near 1.0% apiece. Exporter Volkswagen outperforms with a gain of 0.4%.
Great Britain's FTSE is higher by 0.1% as miners provide support. Fresnillo has surged 6.6% and Randgold Resources trades up 2.3%. On the downside, asset manager Hargreaves Lansdown holds a loss of 4.0%.
In France, the CAC is higher by 0.2% as L'Oreal leads with a gain of 4.6%. On the downside, steelmaker ArcelorMittal is lower by 1.7%.
Spain's IBEX holds a loss of 1.0% as financials weigh. Banco Santander, CaixaBank, and Banco Bilbao Vizcaya Argentaria are all down between 0.7% and 1.6%.

8:25 am: [BRIEFING.COM] S&P futures vs fair value: -1.20. Nasdaq futures vs fair value: +0.20. U.S. equity futures remain modestly lower with the S&P 500 futures trading one point below fair value.

Global equity markets have kicked off the new trading week on a subdued note with most Asian indices posting gains. However, after Asian markets closed for the day, the Japanese yen began strengthening, which pressured equity futures.

Currently, the dollar/yen pair hovers near its session low at 102.15 while yen futures trade higher by 0.2%. The performance of the currency pair bears watching throughout the day as continued yen strength has the potential to pressure equities due to the popularity of the yen-based carry trade that benefits from rising stocks and a falling yen.

Elsewhere, Treasuries are little changed with the 10-yr yield at 2.69%.

7:58 am: [BRIEFING.COM] S&P futures vs fair value: -2.60. Nasdaq futures vs fair value: -2.50. U.S. equity futures hold modest pre-market losses amid cautious overseas action. The S&P 500 futures trade roughly three points below fair value.

Reviewing overnight developments:

Asian markets ended mixed. Hong Kong's Hang Seng -0.3%, China's Shanghai Composite +2.0%, and Japan's Nikkei +1.8%.
Economic data was limited:
Japan's adjusted current account deficit widened to JPY200 billion from JPY50 billion (deficit of JPY60 billion expected) and bank lending rose 2.3% year-over-year (2.3% prior). Separately, Household Confidence fell to 40.5 from 41.3 (43.9 forecast) and Economy Watchers Current Index ticked down to 54.7 from 55.7 (55.5 prior).
Among news of note:
In Japan, Yoichi Masuzoe, who is backed by the ruling LDP party, won the Tokyo Gubernatorial election by a wide margin. Most notably, Mr. Masuzoe supports the return to nuclear energy.
Core European indices trade little changed. Great Britain's FTSE +0.1%, France's CAC +0.2%, and Germany's DAX is flat. Elsewhere, Italy's MIB -0.3% and Spain's IBEX -1.0%.
Participants received several economic data points:
Eurozone Sentix Investor Confidence improved to 13.3 from 11.9 (10.7 expected).
France's Industrial Production slipped 0.3% month-over-month (0.1% expected, 1.2% last).
Italy's Industrial Production fell 0.9% month-over-month (0.2% expected, 0.3% prior) while the year-over-year reading slipped 0.7% (0.4% consensus, 1.5% previous).
Swiss unemployment rate held steady at 3.2%, as expected.
In news:
European financials are under pressure after the European Central Bank Supervisory Chair said that weak banks need to fail for the ECB stress test to be credible.

In U.S. corporate news:

American Express (AXP 87.89, +0.89): +1.0% after being upgraded to 'Overweight' from 'Equal-Weight' at Morgan Stanley with a $100 price target.
Hasbro (HAS 48.50, -1.59): -3.2% after missing on earnings and revenue. The company raised its quarterly dividend 8.0% to $0.43 per share.
Sohu.com (SOHU 67.00, -4.52): -6.3% after its below-consensus first quarter guidance overshadowed its bottom-line beat.
St. Jude Medical (STJ 63.75, +1.75): +2.8% after William Blair upgraded the stock to 'Outperform' from 'Market Perform.'

There is no economic data on today's schedule.

6:45 am: [BRIEFING.COM] S&P futures vs fair value: -5.00. Nasdaq futures vs fair value: -7.00.

6:45 am: [BRIEFING.COM] Nikkei...14718.34...+255.90...+1.80%. Hang Seng...21579.26...-57.60...-0.30%.

6:45 am: [BRIEFING.COM] FTSE...6572.32...+0.60...0.00. DAX...9312.62...+10.80...+0.10%.

Gold Climbs to 2014 High to Head for Longest Rally Since August

By Glenys Sim Feb 10, 2014 9:31 PM ET

Gold jumped to the highest level since November as investors assessed further cuts to U.S. monetary stimulus and Chinese buyers resumed purchases to extend last year’s record consumption. Silver was set for the longest rally since August.

Bullion for immediate delivery rose as much as 0.8 percent to $1,284.34 an ounce, the highest price since Nov. 18, and traded at $1,284.08 by 10:29 a.m. in Singapore. A fifth day of gains would be the longest such run since August. Silver added 0.7 percent to $20.213 an ounce, advancing for an eighth day.

Janet Yellen will deliver her first testimony to Congress since being sworn in as Federal Reserve chairman, after U.S. jobs growth data missed estimates last week. Volumes for Shanghai’s benchmark spot contract climbed to a nine-month high after a report showed demand rose to a record last year. Holdings in the SPDR Gold Trust, the biggest exchange-traded product backed by bullion, were unchanged for a fourth day after the first back-to-back weekly increase since August.

“Chinese buyers have been quite active but the longer-term picture for gold remains bearish against the backdrop of continued stimulus reduction in the U.S.,” said Yang Xi, a Hangzhou-based analyst at Yongan Futures Co. “Gold’s support may come in the form of haven demand if further tapering results in more capital outflows from emerging markets.”

The Fed said Jan. 29 it will trim monthly bond buying by $10 billion after policy makers decided in December to make the first cut to purchases by the same amount amid a strengthening economy. That drove gold down 28 percent last year for its biggest annual decline since 1981, ending a 12-year rally. Bullion is up 6.5 percent this year as a rout in emerging markets spurred demand for haven assets.

Chinese Demand

Bullion for April delivery increased as much as 0.8 percent to $1,284.50 an ounce on the Comex, the highest for a most-active contract since Nov. 18, before trading at $1,283.10. A fifth day of gains would be the longest such run since August.

Volumes for spot bullion of 99.99 percent purity on the Shanghai Gold Exchange climbed to 25,725 kilograms yesterday, the most since May. Demand in China, which probably overtook India as the world’s largest user last year, surged 41 percent to 1,176.4 metric tons in 2013, the China Gold Association said yesterday. Holdings in the SPDR Gold Trust, expanded 0.5 percent last week after contracting a record 41 percent last year.

Platinum gained 0.3 percent to $1,391.13 an ounce, rising for a third day. Talks to end a strike over pay that has crippled production at the world’s largest platinum mines have been delayed to Feb. 13 from today after the companies requested more time. Palladium advanced 0.3 percent to $719.75 an ounce, gaining for a fifth day in the longest rally since October.

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)
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