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)
Attachment:
082214-wrbtrader-Price-Action-Trading-PnL-Blotter-Profit+4190.00.png [ 176.13 KiB | Viewed 425 times ]
click on the above image to view today's performance verification
Price Action Trade Performance for Today: Emini TF ($TF_F) futures @ $2,190.00 dollars or +21.90 points, Emini ES ($ES_F) futures @ $2,000.00 dollars or +40.00 points, Light Crude Oil CL ($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 @ $4,190.00 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
 |
Quote:
If any of my real-time posted trades are via key concepts discussed in the WRB Analysis free study guide or the Fading Volatility Breakout (FVB) free trade signal strategy...I will discuss the reasons (trade strategy) behind those trades if/when a user of ##TheStrategyLab chat room ask questions about the trades. In contrast, real-time posted trades that are via the Advance WRB Analysis Tutorial Chapters 4 - 12 or the Volatility Trading Report (VTR) trade signal strategies...I discuss the reasons (trade strategy) behind those trades with fee-base clients in a different private chat room that's designated only for fee-base clients or discuss the strategies with fee-base clients on my Skype contact list.
Also, posted below are direct links to information about my price action trade methodology and trading plan (there's a difference between the two) that enables me to identify key trading areas in the price action that represent changes in supply/demand and volatility along with being able to exploit these changes via WRB Analysis (wide range body/bar analysis). I'm primarily a day trader because it suits my personal lifestyle but I do occasionally swing trade and position trade. Simply, my trade method is applicable for position trading, swing trading and day trading.
##TheStrategyLab Chat Room is free. Members and I use the chat room to post WRB Analysis commentary, real-time trades and to post anything else related to trading. The chat room helps me tremendously in my own trading because I use it to document (journal) general volatility analysis involving WRB Analysis so that I can easily review at a later date my thoughts as I interacted with the markets...info I can not get from my broker statements. Also, this is not a signal calling chat room where a head trader tells you when to buy or sell and I do not have the time/energy/resources to manage a signal calling chat room. Access instructions for chat room @ http://www.thestrategylab.com/tsl/forum/viewforum.php?f=164 Price Action Analysis via 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=244&t=2455 -----------------------------
 |
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. Further, most financial websites remove (delete) their archives after a few years to make room for new content. Therefore, I maintain my own archives of the news content so that I have it available for me when financial websites no longer archives their content.
Attachment:
082214-Key-Price-Action-Markets.png [ 1.37 MiB | Viewed 367 times ]
click on the above image to view today's price action of key markets
 |
4:10 pm: [BRIEFING.COM] The major averages punctuated a solid week with a subdued Friday session. The S&P 500 shed 0.2% to narrow its weekly gain to 1.7%, while the Nasdaq Composite (+0.1%) displayed relative strength. The tech-heavy index finished the week in line with the benchmark average.
Market participants went into today's session expecting to hear some new insight from Fed Chair Janet Yellen, who delivered the keynote address at this year's Jackson Hole Symposium. Unfortunately, the speech was a disappointment to those who looked for clues about the Fed's policy course in the near term.
Ms. Yellen said the FOMC sees significant underutilization of labor resources and that the labor market has not fully recovered even when taking into account the recent gains. She also indicated that faster progress on goals could lead to a quicker rate hike, but this approach should be expected from a data-dependent central bank.
The remarks were met with a brief retreat among Treasuries, but the 10-yr note returned to its flat line in short order and remained near that level into the close. The benchmark instrument added two ticks, sending its yield lower by one basis point at 2.40%.
Equities, meanwhile, spent the session near their flat lines as participants showed unwillingness to step in ahead of the weekend with geopolitical concerns contributing to the cautious posture. This morning, European markets and U.S. index futures tumbled after a Russian aid convoy crossed Ukraine's border without permission from the government; however, Ukraine said it will allow the convoy to proceed in order to 'avoid provocations.' The initial reports were followed by comments from NATO and the Pentagon with both bodies condemning the crossing into Ukraine.
Only two sectors were able to register gains with the consumer discretionary space (+0.1%) ending in the lead. Retailers contributed to the relative strength after Foot Locker (FL 54.12, +1.55), Gap (GPS 45.43, +2.25), Gamestop (GME 42.90, +2.41), and Ross Stores (ROST 74.37, +5.12) reported better than expected earnings.
Outside of the discretionary sector, most cyclical groups ended in the red, but technology (+0.02%) eked out a miniscule gain. Large cap tech components traded in mixed fashion, but Apple (AAPL 101.32, +0.74) underpinned the sector with a solid gain of 0.7%. On the earnings front, Salesforce.com (CRM 59.80, +4.09) rallied 7.3% in reaction to a one-cent beat.
The relative strength of Apple also put in a floor under the Nasdaq Composite, which drew additional strength from biotechnology. The iShares Nasdaq Biotechnology ETF (IBB 266.43, +1.98) gained 0.8% and helped the health care sector end the day on its flat line.
Meanwhile, the remaining three countercyclical sectors ended in the red. Consumer staples (-0.2%) and utilities (-0.3%) settled near their flat lines, while the telecom services sector lost 0.4%.
Participation was well below average with fewer than 510 million shares changing hands at the NYSE, which made for one of the quietest sessions of the year.
There was no economic data reported today and Monday's data will be limited to the New Home Sales report for July (Briefing.com consensus 427,000).
Nasdaq Composite +8.7% YTD
S&P 500 +7.6% YTD
Dow Jones Industrial Average +2.6% YTD
Russell 2000 -0.3% YTD
Week in Review: S&P 500 Charges to New Highs
The stock market began the week on an upbeat note with small caps leading the charge. The Russell 2000 gained 1.5%, while the S&P 500 advanced 0.9% with eight sectors posting gains. Equity indices surged out of the gate and spent the entire afternoon in narrow ranges near their highs. Although the Russell 2000 paced the rally, the small-cap index could not climb above its 50-day moving average (1159), which served as resistance. The opening push took place after the reports that weighed on risk sentiment on Friday were refuted over the course of the weekend. To recap, comments made by Ukrainian officials on Friday suggested that a direct confrontation took place between Russian forces and Ukrainian troops, but those accounts were called into question by several parties, including the White House.
Equities continued their strong start to the week with a broad-based Tuesday rally that sent the S&P 500 higher by 0.5%. Nine of ten sectors registered gains while the benchmark index extended its week-to-date advance to 1.4%. Stocks received an opening boost from a pair of economic data points that crossed the wires in the morning. An in-line CPI report suggested inflationary pressures remain contained, while a better than expected Housing Starts report underpinned homebuilders and the discretionary sector (+0.8%).
Wednesday ended on a mixed note as blue chip listings bolstered the Dow Jones Industrial Average (+0.4%) and S&P 500 (+0.3%), while the Russell 2000 (-0.4%) and Nasdaq Composite (-0.02%) underperformed. The key indices were confined to narrow ranges until the minutes from the July FOMC meeting crossed the wires. The minutes revealed that many officials saw recent job gains as a potential reason to bring forward the first fed funds rate hike; however, most officials showed preference for waiting for more evidence before changing their outlook on rates. The minutes were followed by a retreat among equities, but the slide was not sustained. The S&P 500 was trading at a fresh session high within an hour of the release. Treasuries, meanwhile, slumped in reaction to the discussion on rates. The 10-yr note fell seven ticks with its yield climbing three basis points to 2.43%.
On Thursday, the market ended on an upbeat note with blue chips showing relative strength once again. The Dow Jones Industrial Average (+0.4%) and S&P 500 (+0.3%) settled ahead of the Russell 2000 (+0.2%) and the Nasdaq Composite (+0.1%) with the benchmark index registering a new record closing high at 1992.35. Stocks climbed out of the gate thanks to early strength among the four countercyclical sectors. Despite the early outperformance, the defensively-oriented sectors ended below their opening highs, while the six cyclical groups were mixed. Financials (+1.1%) and technology (+0.5%) contributed to the modest advance, while other heavily-weighted groups like consumer discretionary (-0.1%), industrials (unch), and energy (unch) kept the market from going on a bigger run.
3:30 pm: [BRIEFING.COM]
Dec gold rose for the first time in six sessions as it gained support from Janet Yellen's speech at the Jackson Hole Symposium. Ms. Yellen said the FOMC sees significant underutilization of labor resources and that the labor market has not fully recovered despite recent gains. The yellow metal advanced to a session high of $1282.80 per ounce and settled with a 0.4% gain at $1280.30 per ounce, booking a 2.0% loss for the week.
Sep silver touched a session high of $19.50 per ounce after trading as low as $19.28 per ounce in morning action. However, It slipped back below the unchanged line heading into the close and settled 0.2% lower at $19.38 per ounce, bringing losses for the week to 0.7%.
Oct crude oil traded in negative territory today while the dollar index traded higher. The energy component brushed a session low of $92.88 per barrel in morning action after pulling back from a session high of $93.87 per barrel. It eventually settled 0.4% lower at $93.61 per barrel, bringing losses for the week to 1.8%.
Sep natural gas also traded in the red. It touched a session high of $3.89 per MMBtu in mid-morning pit trade but trended lower as the session progressed. It settled with a 1.3% loss at $3.84 per MMBtu, shaving gains for the week to 1.9%.
3:00 pm: [BRIEFING.COM] The S&P 500 trades lower by 0.1% with one hour remaining in the trading week. Market participants did not receive any economic data today, but next week will bring a few data points of note.
On Monday, the New Home Sales report for July will cross the wires at 10:00 ET with the Briefing.com consensus expecting a reading of 427,000. As the week goes on, Tuesday will feature the August Consumer Confidence report (consensus 88.3), while Thursday will bring the second estimate of Q2 GDP. The Briefing.com consensus expects second quarter growth to remain unrevised at 4.0%.
Finally, Friday's session will include the release of the August Michigan Sentiment Survey (consensus 54.8) and core PCE Prices for July (expected 0.1%).
2:30 pm: [BRIEFING.COM] Equity indices remain little changed with the S&P 500 trading within three points of its flat line. Going into today, participants were looking forward to Janet Yellen's Speech from the Jackson Hole Symposium, but those remarks did not inject any new developments into the discussion.
European Central Bank President Mario Draghi also appears on today's schedule with his speech set to begin shortly. The euro currently trades at 1.3239 versus the dollar, which is the lowest level for the single currency since September.
Elsewhere, Treasuries have returned into positive territory, pressuring the 10-yr yield to 2.40%.
1:55 pm: [BRIEFING.COM] Equity indices continue trading in mixed fashion with the Nasdaq (+0.3%) trading ahead of the remaining indices.
The tech-heavy index has benefitted from the relative strength in the biotech space (IBB +0.9%), the outperformance of its top component-Apple (AAPL 101.23, +0.65)-and modest gains among chipmakers. The PHLX Semiconductor Index is higher by 0.1% with 16 of its 30 components trading in the green. NXP Semi (NXPI 65.35, +1.32) is the top-performer, trading higher by 2.1%, while Marvell (MRVL 13.90, +0.25) trades up 1.9% after beating bottom-line estimates and guiding Q3 earnings below consensus.
1:30 pm: [BRIEFING.COM] The stock market continues to operate in mixed fashion with a little bit of role reversal seen today.
In recent sessions, the Dow (-0.05%) and S&P 500 (-0.04%) have outperformed the Nasdaq (+0.3%) and Russell 2000 (+0.2%). Not the case today as the tables have been turned.
The latter point notwithstanding, there hasn't been much conviction in today's market, evidenced by the low volume at the NYSE. Regrettably for some traders, the speech about labor market dynamics from Fed Chair Yellen at the Jackson Hole Symposium didn't provide any dynamic insight to move the market in a meaningful way.
The speech was mostly academic and had a very conditional flavor to it (eg. labor market slack could be structural or it could be cyclical... this labor market indicator could mean this or it could mean that). That conditional quality, and the lack of a better sense as to when the Fed might actually raise the fed funds rate, has contributed to the mixed tone.
1:00 pm: [BRIEFING.COM] The major averages are mixed at midday with the S&P 500 (-0.1%) hovering right below its flat line, while the Russell 2000 (+0.2%) and Nasdaq Composite (+0.3%) hold modest gains.
Going into today's affair, participants were eager to hear the latest comments from Janet Yellen's speech at the Jackson Hole Symposium; however, the Fed Chair did not share any insights that could be considered as "new."
Ms. Yellen said the FOMC sees significant underutilization of labor resources and that the labor market has not fully recovered even with recent gains. She also indicated that faster progress on goals could lead to a quicker rate hike, but this approach should be expected from a central bank that claims to be data-dependent.
The comments from the Fed Chair had little impact on equities and the key indices remain near their flat lines with investors showing reluctance to step in ahead of a weekend that could potentially include some geopolitical developments. On that note, European markets and U.S. index futures tumbled in the early morning after a Russian aid convoy crossed Ukraine's border without permission from the government; however, Ukraine said it will allow the convoy to proceed in order to 'avoid provocations.'
Since the initial reports crossed the wires, NATO and the Pentagon have condemned the crossing into Ukraine. The developments have led some participants to seek volatility protection with the CBOE Volatility Index (VIX 11.92, +0.16) hovering near the 12.00% mark. Countercyclical sectors began the session in the lead, but telecom services (-0.5%) and utilities (-0.2%) have slipped from their highs, leaving consumer staples (+0.1%) and health care (+0.3%) as the remaining outperformers.
Biotechnology has rebounded from yesterday's weakness, thus giving a boost to the health care sector and the Nasdaq Composite. For its part, the iShares Nasdaq Biotechnology ETF (IBB 266.74, +2.29) trades higher by 0.9%.
The Nasdaq has also drawn strength from the technology sector (+0.2%), which trades ahead of the remaining five cyclical groups. Influential tech components are mixed, but the top-weighted sector and Nasdaq member-Apple (AAPL 101.40, +0.83)-is higher by 0.8%.
On the downside, the energy sector is lower by 0.6% with crude oil trading down 0.6% at $93.38/bbl.
Treasuries are little changed with the 10-yr yield at 2.40%. There was no economic data released today.
12:30 pm: [BRIEFING.COM] The S&P 500 continues trading lower by 0.1% with six sectors in the red. All in all, the market has held up relatively well today considering the first four sessions of the week ended with gains.
As a result, the S&P 500 is on track to end the week with a solid increase of 1.8%, while the Dow Jones Industrial Average (+2.2%) has had an even better showing. Meanwhile, the Russell 2000 and Nasdaq Composite lagged earlier in the week, but both groups are modestly higher today, which puts them on track to essentially end in line with the S&P 500.
Cyclical sectors have enjoyed a solid week with financials, industrials, and technology on pace to add 2.5% apiece. On the downside, the telecom services sector is the only decliner, down 0.4% this week.
12:00 pm: [BRIEFING.COM] Equity indices remain near their recent levels with the S&P 500 (-0.1%) hovering below its flat line.
Countercyclical sectors displayed early strength, but two of those groups have since slipped behind the broader market. Telecom services (-0.5%) and utilities (-0.5%) are now among the laggards, while consumer staples (unch) and health care (+0.1%) trade a bit ahead of the S&P 500.
Meanwhile, the six cyclical sectors trade mostly lower with energy (-0.8%) and industrials (-0.4%) trailing the remaining four groups.
Earlier we said that technology and financials could be key in determining the market's direction as the session continues, but the two sectors have not cooperated. The financial sector (-0.1%) trades in line with the S&P 500, while technology (+0.2%) outperforms.
11:30 am: [BRIEFING.COM] The S&P 500 (-0.1%) holds a modest loss, while yesterday's laggard-Nasdaq Composite (+0.1%)-hovers just above its flat line.
Janet Yellen's speech at the Jackson Hole Symposium was essentially a non-event as the Fed Chair revisited some of the points that have been previously made during FOMC policy meetings.
On a separate note, headlines related to Ukraine have continued crossing the wires with NATO's Secretary General commenting on a Russian troop buildup near the country's border with Ukraine. In addition, Mr. Rasmussen condemned the earlier entry of a Russian convoy into Ukrainian territory, saying the action was a breach of Russia's international commitments.
Participants have shown some interest in volatility protection ahead of the weekend with the CBOE Volatility Index (VIX 12.08, +0.32) climbing past the 12.00% mark.
10:55 am: [BRIEFING.COM] Equity indices have not gone anywhere over the past hour of action, while Janet Yellen's speech did not introduce any significant surprises.
Fed Chair Yellen discussed the labor market, saying the FOMC sees significant underutilization of labor resources and that the labor market has not fully recovered even with recent gains. Ms. Yellen also said the FOMC is now shifting its approach in order to better assess the level of slack in the job market. The Fed Chair indicated that faster progress on goals could lead to a quicker rate hike, but this approach should be expected from a central bank that claims to be data-dependent.
Although equity indices remain inside narrow ranges, Treasuries have slid to new lows, pushing the 10-yr yield higher by two basis points to 2.43%.
10:35 am: [BRIEFING.COM]
The dollar index is showing gains again, which is helping weigh on select commodities today
Gold and silver futures have been sliding lower this morning.
Dec gold is now +0.2% at $1277.50/oz, while Sept silver is -0.4% at $19.34/oz
Sept copper is showing strength again. It's been in positive territory all day so far and is now
WTI crude oil has been in the red all morning. The energy component attempted to rally back into the black this morning, but the rally fizzled.
Sept crude oil is currently -0.8% at $93.17/barrel. Sept natural gas is -0.4% at $3.87/MMBtu
9:55 am: [BRIEFING.COM] The major averages continue holding modest losses with the S&P 500 down 0.2%. Even with the early retreat, the benchmark index is still higher by 1.7% this week and up 3.0% for the month.
Cyclical sectors continue to weigh, while all four countercyclical groups trade a bit ahead of the broader market. Heavily-weighted technology and financials will be in focus as the session continues, considering the two top-weighted groups have the potential to influence the overall direction of the market. Currently, both sectors trade in line with the S&P 500.
On a separate note, Fed Chair Janet Yellen is expected to begin her speech from the Jackson Hole Symposium shortly.
9:40 am: [BRIEFING.COM] As expected, equity indices began the session with slim losses. The S&P 500 is lower by 0.2% with eight sectors showing early weakness. The energy sector (-0.7%) has slumped out of the gate, while industrials (-0.3%) and financials (-0.2%) also display relative weakness.
On the countercyclical side, consumer staples (+0.2%) and utilities (+0.4%) have been able to register early gains, while health care (-0.1%) and telecom services (-0.1%) hover just below their respective flat lines.
Despite the early weakness in equities, Treasuries have continued their retreat. The 10-yr note has returned to its flat line, pushing its yield up to 2.41%.
9:12 am: [BRIEFING.COM] S&P futures vs fair value: -2.60. Nasdaq futures vs fair value: +1.20. The stock market is on track for a cautious open as futures on the S&P 500 hover within three points of fair value. Index futures held slim gains during overnight action, but tumbled around 6:30 ET after it was reported that a Russian aid convoy has crossed into Ukraine without prior authorization. Ukraine's officials have called this a "direct invasion," but said they will allow the convoy to proceed to avoid "provocations." The news has weighed on risk sentiment, but futures (and European equities) have climbed off their lows.
Another item of note today will be Janet Yellen's speech from the Jackson Hole Symposium on the labor market, which is set to begin at 10:00 ET. Later in the day, ECB President Mario Draghi will speak at 14:30 ET.
Treasuries held gains in overnight action, but they have erased the bulk of that move. The 10-yr yield is lower by a basis point at 2.40%.
8:59 am: [BRIEFING.COM] S&P futures vs fair value: -2.30. Nasdaq futures vs fair value: +1.20. The S&P 500 futures trade two points below fair value.
Asian markets finished the week on a higher note, but Japan's Nikkei (-0.3%) was subject to some profit taking after registering nine consecutive gains. Stimulus chatter continued in China following yesterday's disappointing HSBC Manufacturing PMI. Analysts discussed an array of potential measures, including interest rate cuts and lower mortgage down payment requirements and rates.
------
Japan's Nikkei (-0.3%) was pressured by industrials. Japan Steel Works, Obayashi, and Shimizu lost between 2.5% and 3.0%.
Hong Kong's Hang Seng (+0.5%) settled near its high with property-related names showing strength. China Shenhua Energy gained 1.3% and Hang Lung Properties jumped 3.3%. Consumer names lagged with Li & Fung falling 4.6%.
China's Shanghai Composite (+0.5%) also finished near its best level of the session. Shanghai Xinhua Media and Songliao Automobile both surged the limit, 10.0%.
Major European indices trade in the red with France's CAC (-0.8%) trailing its peers. Earlier, a Russian aid convoy crossed Ukraine's border without permission from the government, but Ukraine said it will allow the convoy to proceed in order to 'avoid provocations.'
------
Great Britain's FTSE is lower by 0.1% with health care names on the defensive. Smith & Nephew and GlaxoSmithKline hold respective losses of 1.3% and 0.9%. Financials outperform with HSBC Holdings and Lloyds Banking both up near 1.0%.
Germany's DAX trades down 0.4% with Adidas leading the retreat. The stock is lower by 2.2%. Commerzbank and Deutsche Bank outperform, trading higher by 1.6% and 0.6%, respectively.
In France, the CAC holds a loss of 0.8%. Consumer names are among the laggards with Carrefour, Kering, and LVMH down between 1.0% and 1.4%. Gemalto outperforms with an increase of 1.3%.
8:31 am: [BRIEFING.COM] S&P futures vs fair value: -1.80. Nasdaq futures vs fair value: +1.20. U.S. equity futures continue hovering near their flat lines with the benchmark index set to enter the session with a week-to-date gain of 1.9%. The S&P 500 climbed in each of the first four sessions of the week with yesterday's affair ending at a new record high (1992.37).
With no economic data on the calendar, participants will be on a lookout for comments from Janet Yellen's keynote address at the Jackson Hole Symposium. In addition, geopolitical headlines have the potential to move the market after a Russian aid convoy entered Ukraine without prior authorization.
Treasuries hold modest gains, but are well below their overnight highs. The 10-yr yield is lower by one basis point at 2.40%.
7:59 am: [BRIEFING.COM] S&P futures vs fair value: -0.50. Nasdaq futures vs fair value: +0.50. U.S. equity futures hold slim losses amid cautious action overseas. The S&P 500 futures trade within a point of fair value after slipping from their highs during the past three hours. Similarly, European indices are on the defensive following another set of news from Ukraine. Specifically, an aid convoy from Russia has crossed the border without prior authorization and the situation is likely to remain in focus during the trading day. In addition, participants will be on the lookout for comments from Fed Chair Janet Yellen, who is scheduled to speak at the Jackson Hole Symposium at 10:00 ET. Also of note, European Central Bank President Mario Draghi will speak at 14:30 ET.
Treasuries are on their highs with the 10-yr yield down two basis points at 2.39%.
In U.S. corporate news of note:
Aeropostale (ARO 3.64, -0.27): -6.9% after missing earnings estimates and guiding lower.
Foot Locker (FL 54.50, +1.93): +3.7% following its better than expected earnings and revenue.
Gap (GPS 44.05, +0.87): +2.0% after reporting earnings just ahead of its warning from August 7.
Gamestop (GME 43.28, +2.79): +6.9% in reaction to better than expected earnings, revenue, and guidance.
Ross Stores (ROST 72.85, +3.60): +5.2% following its bottom-line beat.
Salesforce.com (CRM 56.39, +0.68): +1.2% after reporting a one-cent beat
Reviewing overnight developments:
Asian markets ended mixed. Japan's Nikkei -0.3%, Hong Kong's Hang Seng +0.5%, and China's Shanghai Composite +0.5%.
There was no economic data of note
In news:
Stimulus chatter continued in China following yesterday's disappointing HSBC Manufacturing PMI. Analysts discussed an array of potential measures, including interest rate cuts and lower mortgage down payment requirements and rates
Major European indices trade in the red. Great Britain's FTSE -0.1%, Germany's DAX -0.5%, and France's CAC -0.8%. Elsewhere, Italy's MIB -0.4% and Spain's IBEX -0.5%.
The session has been free of economic data
Among news of note:
A Russian aid convoy crossed Ukraine's border without permission from the government, but Ukraine said it will allow the convoy to proceed in order to 'avoid provocations.'
6:49 am: [BRIEFING.COM] S&P futures vs fair value: flat. Nasdaq futures vs fair value: flat.
6:49 am: [BRIEFING.COM] Nikkei...15539.19...-47.00...-0.30%. Hang Seng...25112.23...+118.10...+0.50%.
6:49 am: [BRIEFING.COM] FTSE...6748.44...-29.20...-0.40%. DAX...9300.73...-100.40...-1.10%.
 |
By Elena Popina and Lu Wang Aug 22, 2014 4:46 PM ET
The Standard & Poor’s 500 Index fell after reaching an all-time high as investors weighed comments from central bank leaders for clues to monetary policy amid rising geopolitical tension.
The S&P 500 fell 0.2 percent to 1,988.40 at 4 p.m. in New York. The benchmark gauge ended the week with a 1.7 percent gain, its biggest advance since April. The Dow Jones Industrial Average lost 38.27 points, or 0.2 percent, to 17,001.22 today. The Nasdaq Composite Index added 0.1 percent to the highest since 2000. About 4.3 billion shares changed hands on U.S. exchanges today, the slowest full session this year. Volume has not topped 5 billion shares in each of the past four days.
“Janet Yellen does not appear to have broken any new ground,” Jim McDonald, chief investment strategist at Chicago-based Northern Trust Corp., said by phone. His firm manages about $924 billion of assets. “The advance to the record has been supported by good U.S. economic data of late. The Fed is also doing a good job at preparing the market for the eventual increase in interest rates. As long as the economy continues to perform well, the market is in good shape.”
Equities fluctuated after Federal Reserve Chair Yellen said in a speech at the Kansas City Federal Reserve’s annual economics conference in Jackson Hole, Wyoming, that slack remains in the labor market even after gains made during the five years of economic recovery. European Central Bank President Mario Draghi called for governments to do more to help the euro-area economy.
Record Level
The S&P 500 climbed to an all-time closing high of 1,992.37 yesterday as data from housing to manufacturing indicated that the world’s largest economy continues to strengthen. Minutes from the Fed’s July meeting released earlier this week reinforced the central bank’s commitment to supporting the recovery even as some policy makers indicated a willingness to raise rates sooner than anticipated.
Fed Bank of St. Louis President James Bullard said in an interview the U.S. central bank may begin tightening monetary policy earlier than officials previously expected, while Atlanta Fed President Dennis Lockhart urged more patience.
“The evidence is leading toward an earlier increase than would have been in the works earlier this year,” Bullard said on Bloomberg Radio in Jackson Hole. “Labor markets have improved quite a bit relative to what the committee was thinking.”
‘Snuffing Out’
Atlanta’s Lockhart, who spoke in a separate Bloomberg Radio interview yesterday, still warned of the risk of “moving prematurely and snuffing out some progress.”
Draghi’s call for politicians to play their part in safeguarding the euro-area recovery comes as pressure mounts on the ECB for radical measures such as quantitative easing. One year after the end of the currency bloc’s longest-ever recession, the economy has stalled, unemployment remains near a record high and inflation is the weakest in almost five years.
“Draghi has been very good at letting the market know that the ECB is ready to act, but the market will ultimately call his bluff if he doesn’t deliver,” Todd Lowenstein, who helps manage $16 billion at Highmark Capital Management in Los Angeles, said in a phone interview. “There’s a sense of impatience going on with the deterioration in the Eurozone, and there’s a growing desire to see an action plan.”
In June, the ECB introduced targeted long-term refinancing operations to improve bank lending in the non-financial private sector.
Three rounds of Fed stimulus and better-than-projected corporate earnings have helped the S&P 500 almost triple since its low in March 2009. The S&P 500 has not had a decline of 10 percent in almost three years. It trades at 17.8 times the reported earnings of its companies, near the highest level since 2010.
Ukraine Tension
The S&P 500 has rebounded 4.1 percent from a two-month low on Aug. 7, bolstered by easing tensions in Ukraine and speculation that central banks will keep interest rates low.
Stocks dropped early in the day after NATO said it has seen large transfers of advanced weapons and sees an “alarming build-up” of Russian forces near Ukraine. Trucks carrying what Russia says is humanitarian aid crossed the border into Ukraine, whose government said the move amounted to an invasion because the convoy moved without its consent.
Russia is invading under the cover of the aid trucks, Valentyn Nalyvaychenko, the head of Ukraine’s security council, said on TV5.
The Chicago Board Options Exchange Volatility Index, the gauge of S&P options prices known as the VIX, slipped 2.5 percent to 11.47, the lowest level since July 16. The gauge has lost 16 percent this year.
Keurig Jumps
Seven of the 10 main S&P 500 groups declined today, with energy stocks falling 0.7 percent for the worst performance.
Intuit Inc. fell 2.6 percent to $83.57 after the company forecast 2015 earnings and revenue that missed analysts’ estimates.
Keurig Green Mountain Inc. surged 13 percent to $133.36, the highest on record, after announcing a deal to bring Kraft Foods Group Inc. coffee brands such as Maxwell House, Yuban and McCafe to its home brewing system.
GameStop Corp. added 6 percent to $42.90 after the video-game chain reported profit that beat estimates as consumers bought new players and software.
Ross Stores increased 7.4 percent, the most since January 2013, to $73.37. The operator of bargain-priced clothing and home-goods stores reported earnings of $1.14 per share in the second quarter, exceeding analysts’ projection for $1.08. Ross Stores raised its full-year earnings target.
Gap Inc. gained 5.2 percent to $45.43. The largest U.S. apparel-focused retailer said profit excluding a gain from an asset sale was 70 cents a share in the second quarter. Net income rose 9.6 percent to $332 million, or 75 cents a share. That beat the average analyst projection of 69 cents.
To contact the reporters on this story: Elena Popina in New York at epopina@bloomberg.net; Lu Wang in New York at lwang8@bloomberg.net
To contact the editors responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net Jeff Sutherland
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/wrbtraderhttp://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