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 Only Trading (no indicators)


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Trade Performance for Today: +1.80 points or $180 dollars in the ICE Russell 2000 Emini TF ($TF_F) Futures.
1 tick or 0.10 = $10 dollars and to find out more contract information about the Russell 2000 Emini TF...click here.

In addition, today's #FuturesTrades chat room logs provides details about each trade from entry to exit along with commentary as the trade traversed...all archived @ http://www.thestrategylab.com/ftchat/forum/viewtopic.php?f=83&t=673

Also, posted below are direct links to information about my trade methodology and trading plan (there's a difference between the two) that enables me to identify key trading areas in the price action that represent changes in supply/demand and volatility along with being able to exploit these changes via WRB Analysis (wide range body/bar analysis).

WRB Analysis Tutorials @ http://www.thestrategylab.com/WRBAnalysisTutorials.htm and there's a free study guide of the WRB Analysis Tutorial Chapters 1, 2 and 3 @ http://www.thestrategylab.com/tsl/forum/viewforum.php?f=119. However, you must join the TSL Support Forum to access the free study guide. To register...click here.

Volatility Trading Report (VTR) @ http://www.thestrategylab.com/VolatilityTrading.htm

Trading Plan Daily Routine @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=125&t=825

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Market Summaries

The below summaries by Bloomberg, CNNMoney and Yahoo! Finance helps me to do a quick review of the fundamentals, FED actions, global economics that had an impact on today's price action. Simply, I'm a strong believer that many variables causes key changes in supply/demand and volatility that's arguably just as important as my technical analysis.

CNNMoney.com - Stocks End At Fresh 2-Year Highs

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By Hibah Yousuf, staff reporter
November 5, 2010: 4:51 PM ET

NEW YORK (CNNMoney.com) -- U.S. stocks wavered Friday but ended with slight gains, as investors digested a strong jobs report at the end of a week full of big economic news. All three major indexes closed at fresh two-year highs and the Dow and S&P logged their biggest weekly gains in more than two months.

The Dow Jones industrial average (INDU) added 9 points, or 0.1%, to end at 11,444, the highest close since Sept. 8, 2008. The blue chip index jumped 2.9% during the week.

The S&P 500 (SPX) rose 5 points, or 0.4%, to 1,226, the highest level since Sept. 19, 2008. The broad index increased 3.6% during the week. The tech-heavy Nasdaq (COMP) added 2 points, or 0.1%, and finished the week up 2.9%, at 2,579, the highest since Jan. 3, 2008.

Stocks staged a major rally Thursday, a day after the Federal Reserve announced plans to pump $600 billion into the economy. All three main indexes finished at their highest levels since at least September 2008 -- the same month Lehman Brothers collapsed.

The labor market has been a focal point for investors hoping for recovery, but Friday's reaction was muted as investors reaped profits after the previous day's advance.

"I'm surprised the response isn't better, but a lot of money was put to work Thursday and stocks were up sharply, so it's not unusual for investors take a pause," said Tom Schrader, managing director at Stifel Nicolaus.

Despite a quiet end to the week, stocks posted their biggest weekly gains in about two months, as investors welcomed clarity following the midterm elections and the Fed's announcement.

As expected, the midterm elections on Tuesday resulted in big gains for the Republican party, which won control of the House by capturing at least 60 seats.

The shifting balance of power on Capitol Hill is largely seen as a positive for Wall Street, since Republican lawmakers are viewed as more business friendly and fiscally conservative than their Democrat rivals.

But the most-anticipated news of the week came Wednesday afternoon, when the Federal Reserve said it will buy $600 billion in U.S. Treasuries by the middle of next year to stimulate the economy.

Stocks had been climbing since the end of August, when the Fed first hinted at its plan for a second round of so-called quantitative easing, but fell into a tight range in the weeks leading up the Fed's meeting.

Economy: The U.S. added 151,000 jobs in October and the unemployment rate holds at 9.6%, the Labor Department says. The private sector grew by 159,000 jobs.

A consensus estimate from analysts polled by Briefing.com expected employers to have added 60,000 jobs in October after cutting payrolls by 95,000 the month before.

The National Association of Realtors said pending home sales fell 1.8% in September. Economists were expecting the report to show 2.5% uptick in sales. But pending home sales only indicate contracts being signed and not actual closed purchases.

The Federal Reserve reported consumer credit increased for the first time in eight months, rising at an annual rate of 1.1% in September to $2.41 trillion.

Companies: Shares of Starbucks (SBUX, Fortune 500) jumped 3.8% after the coffee chain reported a fiscal fourth-quarter profit of $278.9 million, or 37 cents per share. Starbucks, which was among the Nasdaq's top gainers, also boosted its fiscal year earnings guidance.

The news came as Starbucks said that it will no longer use Kraft Foods (KFT, Fortune 500) to distribute its coffee to grocery stores across the U.S.

Kraft was among the Dow's biggest losers Friday, with shares slipping 2.2%, after it posted a third-quarter profit that fell 8% to $754 million and missed expectations. Though Kraft's revenue rose 26% during the quarter, it wasn't enough to offset the company's increased spending.

AIG (AIG, Fortune 500) reported a loss of $2.4 billion, citing costs associated with the sale of certain insurance units that it needed to divest in order to repay the U.S. government. AIG's stock was rose 1.9%.

Toyota (TM) reported strong sales for the six months ending Sept. 30, posting a net income of $3.6 billion despite the negative impact of the stronger yen. The company attributed the earnings jump to cost-cutting measures. The report comes a day after Toyota reported a drop in monthly auto sales. The auto company's stock edged down 0.1%.

DISH Network (DISH, Fortune 500) reported an 11% rise in revenue to $3.21 billion and said it earned 55 cents a share. That was better than the 42 cents a share that analysts expected. Sales also topped forecasts, which called for the satellite TV provider to report revenue of $3.15 billion. Shares rose 0.6%.

World markets: European stocks ended mixed. Britain's FTSE 100 gained 0.2% and the DAX in Germany rose 0.4%. France's CAC 40 edged lower.

Asian markets ended the session higher. The Shanghai Composite was up 1.4%, while the Hang Seng in Hong Kong was up by 1.4%. Japan's Nikkei also rose 2.9%.

The Bank of Japan announced it would maintain its low interest rates, leaving the overnight call rate at between zero and 0.1%.

Currencies and commodities: The dollar strengthened against the euro, British pound, and the Japanese yen

Oil for December delivery gained 36 cents to settle at $86.85 a barrel.

Gold futures for December delivery rose $14.60 cents to settle at a record $1397.70 an ounce, retreating from an earlier intraday record high of $1398.70 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury fell, pushing the yield up to 2.54% from 2.48% late Thursday.



Yahoo! Finance - Market Update

4:30 pm : The S&P 500 scored a solid gain as stocks staged a late bounce in the face of a stronger dollar. The Nasdaq and S&P 500 were left mired near the neutral line, though.

The major indices were stuck in choppy trade for virtually the entire session. Any attempts to advance were restricted by a stronger dollar, which managed to gain 0.9%.

The dollar had shown early strength as it began to rebound from three straight slides, but extended the move following news that nonfarm payrolls for October climbed by 151,000 and that private payrolls increased by 159,000 -- each had been expected to show increases of 60,000. The increases were the biggest in several months, but the headline unemployment rate remained at 9.6%, as had been widely expected.

The greenback's gain tempered support for stocks, even as financials attempted to provide leadership. Financials outperformed for the entire session. They booked a 2.1% gain with help from bank stocks, which continued to climb amid speculation that better capitalized banks may soon receive a blessing from regulators to raise dividends and re-institute share purchases. The KBW Bank Index booked a 2.2% gain and set a three-month high, but finished just below its 50-day moving average.

Though the other sectors failed to follow financials, the sector's size and strength helped give the S&P 500 a modest lead over its counterparts.

AIG (AIG 45.61, +0.87) was able to share in the financial sector's strength as trade progressed. The stock was down close to 4% in the wake of a disappointing earnings report, but the stock rallied to finish with a gain of almost 2%.

Dow component Kraft (KFT 31.08, -0.71) was dogged all session as a disappointing revenue figure cast a pall over its upside earnings surprise.

Better-than-expected earnings from Starbucks (SBUX 30.87, +1.12), CBS (CBS 17.01, -0.65), Blue Nile (NILE 48.30, +2.80), and Crocs (CROX 14.46, -0.34) received less attention from the financial media as their announcements had little influence over broader market trade.

The tone of trade was also uninfluenced by news that pending home sales for September fell 1.8% month-over-month when they had been expected to make a monthly increase of 2.5%.

Consumer credit, which increased $2.1 billion in September, also did nothing to inspire participants. The consensus among economists polled by Briefing.com called for a $3.3 billion drop. Credit for the prior month was revised lower to reflect a $4.9 billion decline.

Precious metals put on another impressive performance. Gold in the continuous contract hit a new record of $1398.70 per ounce before they settled with a 1.1% gain at $1397.70 per ounce. Silver prices set a new 30-year record of $26.92 per ounce in the continuous contract. It settled with a 2.6% gain at $26.71 per ounce. For the week silver advanced 8.8% and gold gained 3.0%.

Advancing Sectors: Financials (+2.1%), Energy (+0.5%), Consumer Discretionary (+0.5%), Industrials (+0.5%), Materials (+0.3%)
Declining Sectors: Telecom (-0.6%), Health Care (-0.5%), Consumer Staples (-0.4%)
Unchanged: Utilities; TechDJ30 +9.24 NASDAQ +1.64 NQ100 -0.1% R2K +0.4% SP400 +0.6% SP500 +4.79 NASDAQ Adv/Vol/Dec 1456/2.10 bln/1168 NYSE Adv/Vol/Dec 1740/1.24 bln/1241

3:30 pm : Precious metals put in another strong session that was highlighted by their push to new highs. Gold in the continuous contract hit a new record of $1398.70 per ounce before the yellow metal settled near that mark with a 1.1% gain at $1397.70 per ounce. Gold prices gained 3.0% this week. Silver prices set a new 30-year record of $26.92 per ounce in the continuous contract. It settled with a 2.6% gain at $26.71 per ounce. Silver advanced 8.8% for the week.

Oil prices extended their string of gains with a 0.4% to settle the week at $86.86 per barrel. Oil prices ascended 6.7% this week.

Natural gas prices put in a strong session after they had lagged yesterday. The energy component climbed 2.0% to settle at $3.93 per MMBtu. Natural gas prices actually fell 2.4% this week. DJ30 -21.60 NASDAQ -3.60 SP500 +1.31 NASDAQ Adv/Vol/Dec 1369/1.72 bln/1263 NYSE Adv/Vol/Dec 1594/925 mln/1373

3:00 pm : The major averages continue to chop along in what has been an unexciting afternoon. There have been some dramatic swings among individual names, though.

CBS Corp (CBS 16.95, -0.72) is down 4% after the company reported lighter-than-expected revenue, which cast a pall over better-than-expected earnings. IAMGOLD (IAG 18.53, -0.91) reported an earnings miss and lowered its production forecast; that has its shares down close to 5%. Meanwhile, Crocs (CROX 14.41, -0.39) reported better-than-expected results for both its top and bottom line, but its shares are still down almost 3%.

Better-than-expected earnings from Boston Beer Co. (SAM 80.75, +7.08) have the stock up almost 10%. Blue Nile (NILE 48.60, +3.10) is up almost 7% even though its upside earnings surprise came amid a lighter-than-expected revenue figure. DJ30 -28.42 NASDAQ -4.19 SP500 +0.68 NASDAQ Adv/Vol/Dec 1329/1.58 mln/1281 NYSE Adv/Vol/Dec 1573/849 mln/1376

2:30 pm : Stocks have fallen under another flurry of selling pressure. The effort has taken the three major averages back to session lows. Overall losses remain modest in size, though.

Quotes from Fed Chairman Bernanke's speech at Jacksonville University are crossing newswires. In his speech, Bernanke stated that the economy is not growing fast and that inflation is below desired levels. Bernanke also said that inflation is likely to stay lower into 2011. DJ30 -27.47 NASDAQ -6.34 SP500 +0.43 NASDAQ Adv/Vol/Dec 1278/1.46 bln/1308 NYSE Adv/Vol/Dec 1542/781 mln/1391

2:00 pm : Fluor (FLR 55.16, +5.36) is one of this session's top performers by percent gained. The climb comes after the firm posted better-than-expected revenue and an upside earnings surprise for its latest quarter. The firm also issued upside guidance. The stock is also seeing some of its strongest trading volume of the past couple of weeks.

Strength in FLR has helped prop up the industrials sector, which currently sports a 0.5% gain. That's still twice as good as what the broader market has mustered. DJ30 -14.00 NASDAQ -0.66 SP500 +2.65 NASDAQ Adv/Vol/Dec 1405/1.36 bln/1184 NYSE Adv/Vol/Dec 1666/720 mln/1274

1:30 pm : The major averages continue to chop along in a relatively modest range. Underlying action remains mixed as the sectors are split evenly between those making gains and those declining -- financials continue to lead the advancing side with a 2.0% gain while telecom tops the declining side with a 0.9% loss. DJ30 -14.38 NASDAQ -0.28 SP500 +2.69 NASDAQ Adv/Vol/Dec 1404/1.27 bln/1175 NYSE Adv/Vol/Dec 1673/683 mln/1252

1:00 pm : A bounce by the dollar has offset a better-than-expected monthly jobs report and left stocks to spend the day chopping along.

Nonfarm payrolls for October climbed by 151,000, which is much better than the 60,000 increase that had been expected among economists polled by Briefing.com. Private payrolls for October increased by 159,000 and also exceeded expectations. Though the data made for the best jobs report in several months, the headline unemployment rate remained at 9.6%, but that had been widely expected.

The jobs numbers attracted a modest bid for stocks ahead of the open, but the data also drove the dollar higher. The greenback's gain, which currently stands at 0.8%, has undermined the stock market's effort to add to its gain in the prior session.

Financials have shown exceptional strength this session, however. The sector's 1.9% gain has also helped prop up the S&P 500 so that it sports a lead over its counterparts.

Bank stocks have been the primary boon behind the financial sector's strength. The banking space continues to benefit from the notion that better capitalized banks may soon be given freedom to raise dividends and re-institute share purchases.

AIG (AIG 44.66, -0.08) has failed to share in the financial sector's advance following its disappointing earnings report. The stock has recovered most of its losses, though.

Kraft (KFT 30.83, -0.96) has been under steady pressure all session. Though the company bested on the bottom line, investors were disappointed by its revenue figure. Weakness in KFT has weighed on the consumer staples sector, which is down 0.6% as one of the worst performing sectors this session.

Stocks showed no real reaction to pending home sales for September. The data was released just a half hour ago and indicated that pending sales fell 1.8%, which contrasts with the Briefing.com consensus call for a 2.5% increase. DJ30 -16.31 NASDAQ -2.63 SP500 +2.01 NASDAQ Adv/Vol/Dec 1369/1.18 bln/1198 NYSE Adv/Vol/Dec 1611/640 mln/1303

12:30 pm : The broader market has stabilized at the flat line since rolling over in recent trade. Financials have been quick to reclaim gains, though. That sector is back to boasting a 1.8% gain.

Pending home sales for September were just released. They actually fell 1.8% month-over-month. The consensus among economists polled by Briefing.com had called for a 2.5% monthly increase. DJ30 -28.45 NASDAQ -6.79 SP500 +0.46 NASDAQ Adv/Vol/Dec 1296/1.08 bln/1234 NYSE Adv/Vol/Dec 1581/595 mln/1320

12:00 pm : Stocks have rolled over in the past half hour. That has taken both the Dow and Nasdaq Composite to session lows and put the S&P 500 back at the neutral line.

The market's downturn comes amid a run up by the dollar, which is now back near its session high with a 0.9% gain.

Consumer staples (-0.7%), health care (-0.7%), and telecom (-0.9%) have been hit the hardest. Financials continue to trade with strength, though; they are up 1.2% at the moment. DJ30 -31.22 NASDAQ -7.49 SP500 -0.13 NASDAQ Adv/Vol/Dec 1236/958 mln/1280 NYSE Adv/Vol/Dec 1539/535 mln/1349

11:30 am : The S&P 500 has pulled back a bit in recent trade. While it is still sporting a solid gain, the Dow and Nasdaq remain stuck at the unchanged mark.

Materials stocks, which outperformed in the prior session, are putting on another strong performance. As such, the materials sector is up 0.7% at the moment. Within the sector steel stocks (+2.4%), shares of diversified metals and miners (+2.5%), and forest products plays (+3.1%) are up the most. DJ30 +3.07 NASDAQ +0.45 SP500 +4.18 NASDAQ Adv/Vol/Dec 1399/821 mln/1080 NYSE Adv/Vol/Dec 1798/466 mln/1049

11:00 am : Financials continue to climb, leaving the broader market in its trail. As a group, financials are now up 2.4%. Such strength has the Financial Select SPDR (XLF 15.61, +0.38) up to a five-month high.

Strength among financials has helped prop up the S&P 500 so that the benchmark index is out in front of its counterparts.

Year to date, though, financials continue to trail the broader market. Specifically, financials are up 8.2% in 2010 while the S&P 500 is up 10.0% this year. DJ30 +10.30 NASDAQ +3.80 SP500 +5.60 NASDAQ Adv/Vol/Dec 1392/665 mln/1055 NYSE Adv/Vol/Dec 1832/391 mln/989

10:30 am : Commodities are trading with varied gains this morning. Lack of consistent strength has the CRB Commodity Index up only fractionally.

Oil has had a lackluster morning, so far. The commodity was last quoted at $86.55 per barrel, up 0.1%.

Natural gas has climbed a sharp 1.8% to trade at $3.93 per MMBtu. Its rise follows a relatively modest gain in the prior session.

Silver continues to climb with little resistance. The precious metal was last priced at $26.49 per ounce, up 1.7%. Silver in the continuous contract set a new 30-year high of $26.65 per ounce overnight.

Gold prices are also up. The yellow metal was last priced 0.5% higher at $1390 per ounce. Its price in the continuous contract fractionally extended its record high to $1394.40 per ounce overnight. DJ30 -0.07 NASDAQ +0.44 SP500 +4.33 NASDAQ Adv/Vol/Dec 1252/497 mln/1122 NYSE Adv/Vol/Dec 1720/306 mln/1063

10:00 am : The major indices continue to chop along without much direction. That has kept them stuck near the neutral line.

While the broader market has had a hard time finding direction, financials have extended their lead over the other sectors. Financials, collectively, are now up 1.6%. That takes the sector to a new five-month high.

Pending home sales data for September were originally scheduled to be released at 10:00 AM ET, but the report has been delayed until 12:30 PM ET. Previous comments have been edited to reflect this change in release time.

Advancing Sectors: Financials (+1.6%), Materials (+0.2%), Consumer Discretionary (+0.2%), Industrials (+0.1%)
Declining Sectors: Telecom (-0.6%), Utilities (-0.4%), Consumer Staples (-0.9%), Tech (-0.2%), Health Care (-0.2%)
Unchanged: Energy DJ30 -15.13 NASDAQ -3.06 SP500 +1.23 NASDAQ Adv/Vol/Dec 1081/318 mln/1198 NYSE Adv/Vol/Dec 1539/195 mln/1173

09:45 am : The major equity averages are mixed this morning, but financial issues have sprinted ahead to a 0.9% gain that has added to their 3.4% surge in the prior session.

For the second straight session financials are being led by bank stocks. Strength in the banking space has the KBW Bank Index up 1.2% to its best level in about three weeks. Their strength remains underpinned by the notion that better capitalized banks may soon be given freedom to raise dividends and re-institute share purchases.

Insurers have been held back, however. Their relative weakness stems from disappointment over the latest quarterly report from AIG (AIG 43.69, -1.05). DJ30 +1.02 NASDAQ -1.35 SP500 +1.84 NASDAQ Adv/Vol/Dec 980/181 mln/1189 NYSE Adv/Vol/Dec 1531/130 mln/1124

09:15 am : S&P futures vs fair value: +2.10. Nasdaq futures vs fair value: -0.50. Stock futures made a nice push into positive territory with the help of a better-than-expected monthly jobs report, but that data also drove up the dollar, which has quelled some of the enthusiasm over what was the best jobs report of the past several months. The only other item on today's economic calendar is the pending home sales report for September (12:30 PM ET). The 10-year Treasury is down a bit this morning after staging strong gains in each of the past two sessions. However, the 30-year Bond continues to languish amid knowledge that the Fed is not a buyer of it -- the Bond is currently down more than a point. AIG (AIG) is the biggest name to recently report earnings results, but the firm disappointed with a rather steep loss. Starbucks (SBUX) beat on both the bottom line and top line, but better-than-expected earnings from Kraft (KFT) came amid a light revenue figure.

09:05 am : S&P futures vs fair value: +1.00. Nasdaq futures vs fair value: -1.30. Futures for the S&P 500 are now near the neutral line. Meanwhile, action in Europe has improved a bit following the better-than-expected U.S. jobs report. Germany's DAX is up 0.4% at the moment. Though the move has been modest, it has been enough to put the German bourse at a new two-year high. Deutsche Bank (DB) has been a primary leader, but Daimler (DAI) has been a drag. In France, the CAC is up 0.4% after it slipped from a modestly higher start into the red. Societe Generale and BNP Paribas have hampered action, but ArcelorMittal (MT) has provided some support. Britain's FTSE is now up 0.2% after it had been plodding along with a modest loss amid weakness in HSBC (HBC) and Royal Bank of Scotland (RBS), which reported a more narrow third quarter net loss than it recorded in the prior year. GlaxoSmithKline (GSK), BP Plc (BP), and Rio Tinto (RIO) have provided the most leadership. As for data, the United Kingdom October Core Output Producer Price Index increased 0.4% month-over-month after a 0.1% monthly increase in September.

Asia's major averages rallied sharply overnight in response to the gains made on Wall Street yesterday. Japan's Nikkei booked a 2.9% gain amid broad support - some 96% of the names in the Index staged gains. Fast Retailing was among the strongest movers. Its advance added to those of recent sessions, leaving the stock up 14% over the past three sessions. Following the close Toyota Motor (TM) reported second quarter results that featured net income of $98.7 billion yen. To little surprise, Japan's central bank made no move on the country's interest rates. Mainland China's Shanghai Composite climbed 1.4% to set a new six-month high. Its gains were also broad, but strength was most pronounced in shares of Industrial & Commercial Bank, PetroChina (PTR), and China Life Insurance. Hong Kong's Hang Seng extended its two-year high with a 1.4% advance. It was led by HSBC, which booked its second straight gain of more than 3% on the Hang Seng. The stock advanced more than 9% there this week.

08:35 am : S&P futures vs fair value: +2.80. Nasdaq futures vs fair value: +3.50. Stock futures have spiked into higher ground with the release of the latest nonfarm payrolls report. The data have also helped the dollar extend its advance so that it is now up 0.9% against competing currencies. Nonfarm payrolls for October climbed by 151,000, which is much better than the 60,000 increase that had been expected among economists polled by Briefing.com. It was also the biggest increase since May. Nonfarm payrolls for the prior month were revised upward to reflect a decrease of 41,000. Private payrolls for October increased by 159,000 in October. That was their biggest increase since April and also exceeded the 60,000 increase that had been widely expected. Private payrolls for the prior month were revised upward to reflect an increase of 107,000. The headline unemployment rate still stands at 9.6%, as expected.

08:00 am : S&P futures vs fair value: -2.80. Nasdaq futures vs fair value: -2.80. The nonfarm payrolls report for October -- likely today's biggest announcement -- is due at the bottom of the hour. Pending home sales numbers for September will be released much later at 12:30 PM ET. For now, though, premarket participants are taking their cues from the dollar, which has rebounded to a 0.5% gain after falling for three straight sessions. That has stock futures down modestly. Earnings remain less of a consequence, given the lack of market movers making reports. However, AIG (AIG) was out earlier this morning with its latest results, which featured a net loss of $2.4 billion. Management noted that it sees adequate liquidity for at least 12 months.

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

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

Phone: +1.708.572.4885
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