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 @ $1,020.00 dollars or +10.20 points, Emini ES ($ES_F) futures @ $125.00 dollars or +2.50 points, Light Crude Oil CL ($CL_F) futures @ $920.00 dollars or +0.92 points, Gold GC ($GC_F) futures @ $0.00 dollars or +0.00 points and EuroFX 6E ($6E_F) futures @ $0.00 dollars or +0.0000 ticks. Total Profit @ $2,065.00 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=123&t=1649

Also, posted below are direct links to information about my price action trade methodology and trading plan (there's a difference between the two) that enables me to identify key trading areas in the price action that represent changes in supply/demand and volatility along with being able to exploit these changes via WRB Analysis (wide range body/bar analysis). I'm primarily a day trader because it suits my personal lifestyle but I do occasionally swing trade and position trade. Simply, my trade method is applicable for position trading, swing trading and day trading.

Price Action Analysis via WRB Analysis Tutorials @ http://www.thestrategylab.com/WRBAnalysisTutorials.htm and there's a free study guide of the WRB Analysis Tutorial Chapters 1, 2 and 3 @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=119&t=718

Trade Signal Strategies via Volatility Trading Report (VTR) @ http://www.thestrategylab.com/VolatilityTrading.htm and there's a free trade signal strategy @ http://www.thestrategylab.com/tsl/forum/viewforum.php?f=89 so that you can freely test drive one of our price action trade strategies with support prior to purchasing the Volatility Trading Report (VTR).

Trading Plan Daily Routine @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=223&t=2061

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

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.

The Bull Is Back! Dow And S&P Hit Records


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

NEW YORK (CNNMoney)
The Dow and S&P 500 both rose to another record Wednesday, resuming their march higher after taking a breather Tuesday. Investors remain focused on the economy as they attempt to gauge when the Federal Reserve will scale back its monetary stimulus.

The Dow Jones industrial average rose 0.4% and the S&P 500 rose 0.8%. The Nasdaq rose 1% and is inching closer to the psychologically key level of 4,000, a milestone it hasn't topped since the tech bubble burst in 2000.

The gains came amid uncertainty about when the Federal Reserve will finally begin reducing, or tapering, its bond-buying program.

"Commentary by Fed officials continues to confound, with some for more stimulus and some for less, some talking of a December taper and some of later," said Mike van Dulken, head of research at Accendo Markets.

Fed vice chair Janet Yellen may shed light on the topic when she appears before the Senate Banking Committee on Thursday for her confirmation hearing. Yellen is President Obama's nominee to replace Ben Bernanke as chairman of the Fed.

The Fed's stimulus policies have been a major driver of the bull market in stocks over the past few years. But recent reports on economic growth and hiring have some experts betting that the central bank will begin its exit strategy sooner rather than later.

Investors were also digesting a Chinese Communist Party communique on economic reform that was heavy on jargon but light on specifics.

That put pressure on Asian markets Wednesday, with the main stock indexes in Hong Kong and Shanghai declining by nearly 2%. European markets also fell. Shares in London sank amid concerns the Bank of England could hike interest rates after the bank raised its inflation expectations and lowered its outlook for unemployment.

What's moving: Macy's (M, Fortune 500) shares rose on better-than-expected quarterly earnings and strong same-store sales.

The retailer's results suggest American consumers could spend big this holiday season, according to some StockTwits traders.

"Nice results from $M heading into the holiday shopping season, could see very good retail numbers if price of gas continues to drop," said 5thStreetResearch.

"$M actually made a profit - shoppers prefer a store rather than putting up with mail return BS $AMZN," said elon_musketeer.

China's Sina (SINA), which operates the Twitter (TWTR) competitor Weibo, reported strong earnings and issued an upbeat revenue outlook. Shares rose 11%.

Shares of Chegg (CHGG) fell 23% to about $9.62 in the company's stock market debut. The operator of a text book rental service priced its initial public offering at $12.50 a share -- above its offering range -- on Tuesday.

Some traders were wondering why the company priced its stock so high, while others still believe Chegg is a good long-term bet.

"$CHGG Just wondering where was the demand that made the underwriters think to price this above the filing range? Somebody needed a favor..." asked the ipoguy.

"$CHGG is starting a new trend in education system. Their mobile apps are well ahead of the competition. Potential for long term growth," said TheRainmaker.

Potbelly (PBPB) surged after the sandwich shop reported strong results late Tuesday. The company recently went public and shares more than doubled on their first day of trading.

We know where this StockTwits user is going to have lunch today.

"$PBPB Only reason I bought this at ipo was because I eat there a lot. Thanks to me going there every week their earnings were good," said the modest WallStreetBaller.

Tesla (TSLA) shares edged higher after CEO Elon Musk said there "definitely" won't be a recall of the Model S, quashing rumors in the wake of three battery fires during the past five weeks.

Shares of Starbucks (SBUX, Fortune 500) drifted lower after the coffee chain agreed to pay $2.7 billion to Mondelez (MDLZ, Fortune 500)to settle a contract dispute.

Dow component Cisco Systems (CSCO, Fortune 500) reported earnings after the closing bell that topped forecasts. But sales missed and the stock dipped in extended trading.





4:10 pm : The major averages settled on their best levels of the session despite showing some early weakness. The S&P 500 rose 0.4% while the Nasdaq outperformed with an advance of 0.7%.

Stocks began the session in the red as cautious action in Europe contributed to the lower open. Although European indices hovered near their lows as the U.S. session got underway, they were quick to climb off their lows right alongside U.S. equities.

The tech-heavy Nasdaq paced the rebound as top-weighted index components like Google (GOOG 1032.47, +20.69), Microsoft (MSFT 38.16, +0.80), and Qualcomm (QCOM 70.03, +1.52) provided significant support. In addition, Cisco Systems (CSCO 24.00, +0.27) added 1.1% ahead of its after-hours quarterly report.

Momentum names also underpinned the Nasdaq after suffering group-wide weakness last week. Facebook (FB 48.71, +2.11), LinkedIn (LNKD 220.65, +11.37), and Priceline.com (PCLN 1124.20, +24.71) gained between 2.3% and 5.4%. Tesla (TSLA 138.70, +0.90) also displayed intraday strength, but surrendered the bulk of its gain into the close amid reports of fire department activity at the company's factory in California.

Outside of technology, the discretionary sector (+1.6%) was the only other outperformer among cyclical sectors. Apparel retailers climbed throughout the session after Macy's (M 50.68, +4.35) beat on earnings and revenue. Macy's jumped 9.4% while the broader SPDR S&P Retail ETF (XRT 87.31, +1.13) advanced 1.3%.

Homebuilders also provided a measure of support to discretionary shares as the iShares Dow Jones US Home Construction ETF (ITB 22.13, +0.30) settled higher by 1.4%.

Also of note, the financial sector ended in-line with the broader market despite underperforming in early action. The sector climbed into positive territory in conjunction with the S&P, and followed the benchmark index into the close.

With regard to countercyclical sectors, only consumer staples (+0.9%) finished ahead of the broader market while health care (+0.5%), telecom services (-0.2%), and utilities (+0.3%) lagged.

Treasuries finished near their highs with the 10-yr yield down four basis points at 2.74%.

Today's participation was on the light side as less than 700 million shares changed hands on the floor of the New York Stock Exchange.

The weekly MBA Mortgage Index fell 1.8% to follow last week's decline of 2.8%.

The Treasury Budget deficit fell to $91.6 billion in October from $120.0 billion in October 2012. Since the data are not seasonally adjusted, the October budget deficit cannot be compared to the surplus in September. The CBO, which typically releases its budget estimate a few days before the Treasury releases the actual numbers, did not release an advance projection for the October data. While the government shutdown likely had an effect on the decline in the October budget deficit, the Treasury Department did not issue a statement explaining what exactly the effects were.

Tomorrow, weekly initial claims, September trade balance, and preliminary Q3 productivity will all be reported at 8:30 ET. In addition, Janet Yellen's confirmation hearing will begin tomorrow with an appearance in front of the Senate Banking Committee.

Nasdaq +31.3% YTD
Russell 2000 +30.9% YTD
S&P 500 +25.0% YTD
DJIA +20.7% YTD

DJ30 +70.96 NASDAQ +45.66 SP500 +14.31 NASDAQ Adv/Vol/Dec 1784/1.75 bln/769 NYSE Adv/Vol/Dec 2059/696.6 mln/947

3:30 pm :

Dec crude oil traded higher today, advancing to a session high of $94.54 per barrel in afternoon pit action. It pulled back slightly heading into the close and settled with a 0.8% gain at $93.91 per barrel.
Dec natural gas touched a session high of $3.63 per MMBtu in morning floor trade but slipped back into negative territory. It settled 1.4% lower at $3.57 per MMBtu, just above its session low of $3.56 per MMBtu.
Dec gold fell for a fifth consecutive session despite trading in the black for most of today's pit trade. The yellow metal rose to a session high of $1279.80 per ounce in morning action but gave up the gain as it slipped into the red in the last half hour of floor trade. It settled with a 0.2% loss at $1268.50 per ounce, just above its session low of $1267.70 per ounce.
Dec silver brushed a session high of $20.80 per ounce in early morning action but quickly fell into negative territory. It trended lower as the session progressed and settled 1.5% lower at $20.45 per ounce.

DJ30 +27.05 NASDAQ +30.00 SP500 +8.03 NASDAQ Adv/Vol/Dec 1592/1427.8 mln/923 NYSE Adv/Vol/Dec 1829/446 mln/1144

3:00 pm : The S&P 500 trades higher by 0.4% as the session enters its final hour. Following today's closing bell, participants will receive roughly 15 quarterly reports. Although most of the reports are not expected to resonate with the broader market, investors will keep an eye on Cisco Systems (CSCO 23.83, +0.10) and NetApp (NTAP 40.97, +0.77). Cisco is expected to report bottom-line growth of 6.3% on $12.35 billion in revenue while the Capital IQ consensus calls for NetApp to show earnings growth of 21.6% on revenue of $1.60 billion.

Tomorrow morning, retailers will be in focus with Kohl's (KSS 58.24, +0.64) and Wal-Mart (WMT 78.66, -0.05) scheduled to report their results before the opening bell.DJ30 +11.48 NASDAQ +27.39 SP500 +6.31 NASDAQ Adv/Vol/Dec 1546/1.28 bln/978 NYSE Adv/Vol/Dec 1753/406.3 mln/1201

2:30 pm : Equity indices remain near their best levels of the session with the Nasdaq (+0.7%) in the lead. The tech-heavy index has received significant support from top-weighted components like Google (GOOG 1029.05, +17.27), Microsoft (MSFT 37.71, +0.35), and Qualcomm (QCOM 69.77, +1.24) as well as momentum names. Facebook (FB 48.12, +1.52), Tesla (TSLA 140.35, +2.55), LinkedIn (LNKD 218.24, +8.96), and Priceline.com (PCLN 1122.46, +22.97) sport gains between 1.9% and 4.3%.

In addition, biotechnology has also contributed to the relative strength of the Nasdaq as the iShares Nasdaq Biotechnology ETF (IBB 207.35, +1.06) trades higher by 0.5%.DJ30 +25.11 NASDAQ +28.58 SP500 +8.04 NASDAQ Adv/Vol/Dec 1585/1.18 bln/926 NYSE Adv/Vol/Dec 1824/378.5 mln/1126

2:00 pm : The S&P 500 (+0.4%) hovers at its best level of the session.

Just reported, the October Treasury Budget showed a deficit of $91.6 billion, which followed the prior month's deficit of $120 billion. The report has mattered little to market participants as equity indices did not respond to the news.DJ30 +19.73 NASDAQ +28.68 SP500 +7.54 NASDAQ Adv/Vol/Dec 1586/1.09 bln/924 NYSE Adv/Vol/Dec 1817/353.9 mln/1129

1:30 pm : There has been another head fake of sorts by the market today, which looked like it was situated early on to endure a trend-down day of profit taking. That hasn't happened. Instead, there was yet another instance of buy-the-dip activity that stemmed the flow of early losses.

That show of resilience led to a bit of a piling-on effect as the major average came bounding back from larger losses, aided by the outperformance of many of the momentum stocks that have been trampled on of late. Tesla (TSLA 141.23, +3.43) is a name that jumps out in that respect as does Facebook (FB 47.92, +1.31). Both are up nicely today and have helped spearhead the outperformance of the Nasdaq Composite.

Cisco's (CSCO 23.88, +0.15) earnings report after the close holds the potential to be a market mover on Thursday, although Janet Yellen's confirmation hearing in front of the Senate Banking Committee is set to be the focal point.

Separately, the $24 bln 10-yr note auction was met with strong demand, evidenced by a 2.7x bid-to-cover ratio that exceeded the prior auction's level of 2.58x. Demand from indirect bidders was strong as they took 47.6% of the supply versus a 12-auction average of 37.6%. Apparently, the latest debt ceiling showdown didn't upset them too much. DJ30 +2.44 NASDAQ +25.01 SP500 +5.72 NASDAQ Adv/Vol/Dec 1490/986 mln/1003 NYSE Adv/Vol/Dec 1714/323 mln/1202

1:00 pm : At midday, the major averages trade in mixed fashion. The Nasdaq (+0.5%) and S&P 500 (+0.3%) hold modest gains while the Dow Jones Industrial Average sits just below its flat line.

Equities displayed some early weakness amid cautious action in Europe where major averages traded with losses close to 1.0%. The overseas softness followed disappointing eurozone industrial production data and the lack of concrete plans coming out of China's third plenum. However, most European indices ended well off their lows.

Despite the opening losses, participants were quick to buy the dip in the Nasdaq and S&P while the Dow has been a bit more tentative in its recovery. Interestingly, the financial sector (+0.3%) was among the early laggards, but has now swung into a position of strength.

Outside of financials, other cyclical sectors are mixed. Consumer discretionary (+1.1%) and technology (+0.5%) outperform while materials (-0.1%) and industrials (+0.1%) lag.

The discretionary space has received support from apparel retailers after Macy's (M 50.77, +4.44) reported better-than-expected earnings. Homebuilders have also contributed to the sector's strength as the iShares Dow Jones US Home Construction ETF (ITB 22.19, +0.36) holds a solid gain of 1.7%.

Homebuilders are also drawing strength from lower interest rates as Treasuries hover on their highs with the 10-yr yield down five basis points at 2.73%.

The weekly MBA Mortgage Index fell 1.8% to follow last week's decline of 2.8%.

The October Treasury budget will be released at 14:00 ET.DJ30 -0.98 NASDAQ +21.58 SP500 +4.89 NASDAQ Adv/Vol/Dec 1389/891.2 mln/1073 NYSE Adv/Vol/Dec 1656/297.0 mln/1264

12:35 pm : The S&P 500 has climbed into positive territory as the broader market builds on the relative strength of financials (+0.2%). In some respects, the early portion of today's session has mirrored yesterday's affair. Yesterday, the S&P 500 saw early weakness, but was able to erase the bulk of its loss by the close. The index made a couple appearances in positive territory, but could not hold its flat line into the close.

Today, the benchmark index once again saw early losses, but has worked its way back into positive territory. Financials have shown some recent indecision as the sector outperforms today after pressuring the broader market on Tuesday.

Elsewhere, the Dow (-0.1%) continues to trail as 20 of 30 index components register losses.DJ30 -13.93 NASDAQ +16.94 SP500 +2.90 NASDAQ Adv/Vol/Dec 1321/811.5 mln/1130 NYSE Adv/Vol/Dec 1520/273.8 mln/1383

12:00 pm : Equity indices continue to hold their recent levels, but some movement has been observed among individual sectors.

Consumer staples (-0.2%) have surrendered their modest gains while financials regained their flat line after underperforming since the opening bell. Meanwhile, today's top sector, consumer discretionary, continues to hold its gain of 0.5%.

Apparel retailers have provided support to the discretionary sector after Macy's (M 50.51, +4.18) reported better-than-expected earnings. The broader SPDR S&P Retail ETF (XRT 86.75, +0.57) trades higher by 0.5%.DJ30 -49.81 NASDAQ +4.80 SP500 -0.97 NASDAQ Adv/Vol/Dec 1130/703.2 mln/1291 NYSE Adv/Vol/Dec 1338/246.5 mln/1560

11:30 am : The major averages have slipped from their recent levels as the underperformance of heavily-weighted financials (-0.3%) and health care (-0.3%) outweighs the modest gains among discretionary shares (+0.5%) and energy (+0.2%).

Interestingly, small caps were unaffected by the modest retreat as the Russell 2000 (+0.1%) held above its flat line.

Overall, the broader market appears to be in position to continue its rebound as only the telecom services sector (-0.7%) trades with a loss larger than 0.5%.DJ30 -52.32 NASDAQ +3.04 SP500 -1.27 NASDAQ Adv/Vol/Dec 1132/601.8 mln/1275 NYSE Adv/Vol/Dec 1305/214.7 mln/1568

11:00 am : The Nasdaq and S&P 500 have returned to their flat lines while the Dow continues to trade near its worst level of the session.

The price-weighted Dow could not rebound alongside the other averages as 21 of 30 components trade in negative territory. Of those 21, four display losses of at least 1.0%. On the upside, Home Depot (HD 77.08, +0.90) is the top index component, trading higher by 1.1%.

Meanwhile, the broader market has built its rebound on the relative strength of consumer discretionary (+0.5%), energy (+0.3%), and technology (+0.1%) sectors.

Even though the S&P has erased its loss, the CBOE Volatility Index (VIX 13.02, +0.20) continues to trade modestly higher.DJ30 -46.94 NASDAQ +3.16 SP500 -0.73 NASDAQ Adv/Vol/Dec 1107/489.9 mln/1267 NYSE Adv/Vol/Dec 1358/180.2 mln/1486

10:30 am :

Commodities have weakened this morning as the dollar index has continued to push higher.
Natural gas, copper and silver all hit new session lows in recent activity and remains near those levels in current trade.
Overall, copper is the worst performing commodity this morning.
Crude oil has been in positive territory all day so far and rose as high as $93.94/barrel, which follows yesterday's sell-off. In current trade, Dec crude oil is +0.7% at $93.65.
Dec nat gas is now -0.9% at $3.58/MMBtu, Dec gold is +0.1% at $1272.80/oz, Dec silver is -0.7% at $20.64/oz, Dec copper is -2.4% at $3.16/lb.

DJ30 -57.52 NASDAQ -0.08 SP500 -1.85 NASDAQ Adv/Vol/Dec 1068/386.1 mln/1267 NYSE Adv/Vol/Dec 1252/150 mln/1558

10:00 am : The key indices have ticked up off their lows, but they continue to hold the bulk of their losses. Some hints of buying the dip can be spotted among discretionary shares (+0.1%) and technology (-0.1%). Meanwhile, the financial sector (-0.5%) continues to weigh.

Prior to the open, we mentioned the developing euro weakness. Since the 8:30 ET update, the single currency has slid to a fresh low against the dollar (-0.2% at 1.3400) amid comments from the ECB Chief Economist Peter Praet, who said the central bank could deploy an asset purchase program in order to meet its inflation target of 2.0%.DJ30 -46.54 NASDAQ -5.90 SP500 -3.23 NASDAQ Adv/Vol/Dec 848/214.8 mln/1393 NYSE Adv/Vol/Dec 1023/97.2 mln/1726

09:40 am : Equities began the session in the red with all ten sectors displaying early weakness. The financial sector (-0.5%) paced yesterday's retreat, and the group appears among the laggards once again today. Meanwhile, the remaining cyclical sectors trade essentially in-line with the broader market.

The discretionary sector is an exception as the group trades flat. Homebuilders have contributed to the relative strength as the iShares Dow Jones US Home Construction ETF (ITB 21.98, +0.15) trades higher by 0.7%.

Elsewhere, Treasuries remain near their best levels of the session with the 10-yr yield down four basis points at 2.73%.DJ30 -71.28 NASDAQ -14.89 SP500 -6.34 NASDAQ Adv/Vol/Dec 668/104.9 mln/1461 NYSE Adv/Vol/Dec 795/63.1 mln/1929

09:13 am : [BRIEFING.COM] S&P futures vs fair value: -7.50. Nasdaq futures vs fair value: -19.30. The major averages are expected to face an uphill climb at the start of today's session as index futures hover near their worst levels of pre-market action. Futures held slim losses throughout the night, before seeing additional weakness during the past four hours as broad selling pressure sent European indices to their lows.

It would be difficult to pin the early equity weakness on tapering fears since Treasuries hover on their highs. The benchmark 10-yr yield is lower by four basis points at 2.74%.

08:55 am : [BRIEFING.COM] S&P futures vs fair value: -8.20. Nasdaq futures vs fair value: -20.50. The S&P 500 futures trade lower by 0.5%.

Asian markets registered losses across the board with indices in Hong Kong (-1.9%) and Shanghai (-1.8%) pacing the decline after the statement from the recently concluded third plenum failed to provide sufficient guidance to market participants. The statement was very broad and did not focus on addressing specific issues. In regional economic data, Japan's core machinery orders fell 2.1% month-over-month (-1.4% forecast, 5.4% prior) while the year-over-year reading increased 11.4% (12.6% expected, 10.3% last). Separately, CGPI slipped 0.1% month-over-month (-0.2% expected, 0.3% previous) while the year-over-year reading rose 2.5%, as expected (2.3% last). Elsewhere, Australia's Wage Price Index rose 0.5% quarter-over-quarter (0.7% expected, 0.7% last) while the year-over-year reading reflected an increase of 2.7% (2.9% forecast, 2.9% previous). Lastly, South Korea's unemployment rate held steady at 3.0%, as expected.

In Japan, the Nikkei shed 0.2% as heavy industrials lagged. Kajima and Obayashi both lost near 4.5% apiece. Exporters Mazda Motors and Sony outperformed with respective gains of 3.0% and 2.7%.
Hong Kong's Hang Seng ended lower by 1.9% as financials weighed. Bank of China and Industrial & Commercial Bank of China lost 3.4% and 3.6%, respectively. Energy giant CNOOC also underperformed, falling 2.6%.
China's Shanghai Composite fell 1.8% as growth-sensitive names underperformed. CCS Supply Chain Management and Xinjiang Dushanzi Tianli High lost close to 7.0% each. China Vanke outperformed with a loss of 0.6%.

Major European indices hover near their worst levels of the session with Great Britain's FTSE (-1.5%) leading the weakness even after the Bank of England released an upbeat-sounding quarterly inflation report. Most notably, the central bank said it now expects the unemployment rate threshold (7.0%) to be reached in late 2014 rather than 2016, and that, "The recovery has finally taken hold." In addition, the central bank said the probability of CPI being at or above 2.5% has decreased following the recent deceleration of inflation trends. Looking at economic data, Eurozone industrial production slipped 0.5% month-over-month (-0.3% expected, 1.0% prior) while the year-over-year reading reflected an increase of 1.1% (0.2% forecast, -1.1% last). Elsewhere, Great Britain's claimant count declined by 41,700 (-35,000 expected, -44,700 previous) while the unemployment rate ticked down to 7.6% from 7.7% (7.7% expected). In addition, average earnings ex-bonus rose 0.8% (0.9% expected, 0.8% prior) while average earnings + bonus increased 0.7%, as expected (0.8% last). Also of note, Spain's CPI rose 0.4% month-over-month (0.5% expected, -0.2% last) while the year-over-year reading ticked down 0.1%, as expected (0.3% prior).

In Germany, the DAX is lower by 1.0% as 26 of 30 components register losses. Banks are among the laggards with Commerzbank and Deutsche Bank down 3.5% and 1.9%, respectively. Utilities outperform with E.ON and RWE both up near 0.5%.
France's CAC trades down 1.0% as steelmaker ArcelorMittal leads the index lower with a loss of 3.7%. Exporter Renault also lags, trading lower by 2.1%.
Great Britain's FTSE holds a loss of 1.5% with financials contributing to the weakness. Barclays, RSA Insurance Group, and Standard Chartered are all down between 3.3% and 3.8%.

08:31 am : [BRIEFING.COM] S&P futures vs fair value: -8.50. Nasdaq futures vs fair value: -16.50. The S&P 500 futures hover near their lows (-0.5%) after spending the past three hours in a steady downtrend. The continued weakness can be traced back to European indices as they also hover at their worst levels of the session. Great Britain's FTSE trades lower by 1.5% and Germany's DAX holds a loss of 0.9%.

In the foreign exchange market, the euro has been slipping versus the dollar (1.3415) while the yen trades at its session high against the greenback (99.31).

With money moving out of equities, Treasuries have climbed to their best levels of the morning. The 10-yr yield is lower by four basis points at 2.73%.

08:00 am : S&P futures vs fair value: -5.30. Nasdaq futures vs fair value: -9.30. U.S. equity futures hover in the red amid cautious overseas action. The S&P 500 futures trade lower by 0.4%.

Reviewing overnight developments:

Asian markets registered losses across the board. Japan's Nikkei -0.2%, China's Shanghai Composite -1.8%, and Hong Kong's Hang Seng -1.9%.
In regional economic data:
Japan's core machinery orders fell 2.1% month-over-month (-1.4% forecast, 5.4% prior) while the year-over-year reading increased 11.4% (12.6% expected, 10.3% last). Separately, CGPI slipped 0.1% month-over-month (-0.2% expected, 0.3% previous) while the year-over-year reading rose 2.5%, as expected (2.3% last).
Australia's Wage Price Index rose 0.5% quarter-over-quarter (0.7% expected, 0.7% last) while the year-over-year reading reflected an increase of 2.7% (2.9% forecast, 2.9% previous).
South Korea's unemployment rate held steady at 3.0%, as expected.
Looking at news:
Markets in China paced the regional decline after the statement from the recently concluded third plenum failed to provide sufficient guidance. The statement was very broad and did not focus on specific issues.

Major European indices hover near their worst levels of the session. Germany's DAX -0.7%, France's CAC -0.9%, and Great Britain's FTSE -1.4%.
Looking at economic data:
Eurozone industrial production slipped 0.5% month-over-month (-0.3% expected, 1.0% prior) while the year-over-year reading reflected an increase of 1.1% (0.2% forecast, -1.1% last).
Great Britain's claimant count declined by 41,700 (-35,000 expected, -44,700 previous) while the unemployment rate ticked down to 7.6% from 7.7% (7.7% expected). In addition, average earnings ex-bonus rose 0.8% (0.9% expected, 0.8% prior) while average earnings + bonus increased 0.7%, as expected (0.8% last).
Spain's CPI rose 0.4% month-over-month (0.5% expected, -0.2% last) while the year-over-year reading ticked down 0.1%, as expected (0.3% prior).
In news:
The Bank of England released its quarterly inflation report, which was generally upbeat, stating, "The recovery has finally taken hold." In addition, the central bank said the probability of CPI being at or above 2.5% has decreased following the recent deceleration of inflation trends.

In U.S. corporate news:

Potbelly (PBPB 30.03, +2.97): +11.0% after beating on earnings and guiding Q3 comparable store sales above consensus.
Taylor Morrison Home (TMHC 20.00, -0.73): -3.5% despite beating on earnings and revenue. The stock was downgraded at Susquehanna and Sterne Agee following its quarterly report.
YRC Worldwide (YRCW 6.97, -2.76): -28.4% after reporting a loss of $4.45 on in-line revenue.

The weekly MBA Mortgage Index fell 1.8% to follow last week's decline of 2.8%.

The October Treasury budget will be released at 14:00 ET.

The U.S. Treasury will auction $24 billion in 10-yr notes.

06:09 am : [BRIEFING.COM] S&P futures vs fair value: -2.00. Nasdaq futures vs fair value: -4.50.

06:09 am : Nikkei...14567.16...-21.50...-0.20%. Hang Seng...22463.83...-437.60...-1.90%.

06:09 am : FTSE...6655.46...-71.30...-1.00%. DAX...9048.45...-28.00...-0.30%.

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