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)
wrbanalysis@gmail.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 @ $0.00 dollars or +0.00 points, Emini ES ($ES_F) futures @ ($125.00) dollars or -125.00 points, Light Crude Oil CL ($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 Loss @ ($125.00) 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

Trade Log: All of my trades were posted real-time in the timestamp ##TheStrategyLab free chat room. You can read today's price action trading information about my trades (e.g. time, price entry, contract size, price exit) as the trade traversed to its completion. Also, sometimes I'll post real-time trading tips in ##TheStrategyLab chat room involving WRBs, WRB Hidden GAPs, Key Market Events (KME), Tutorial Chapters 2 & 3, WRB Zones, Reaction Highs/Lows, Contracting Volatility or Expanding Volatility. Its all archived @ http://www.thestrategylab.com/ftchat/forum/viewtopic.php?f=156&t=2351


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 Advance WRB Analysis Tutorial Chapters @ 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

Analysis -----> Trade Signals

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). All WRB Analysis Tutorial Chapters 1 - 12 are included in the purchase of the Volatility Trading Report (VTR).

Daily Trading Plan Routine @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=291&t=3143 contains brief information about trading plan, market context, brokers, trading time frames, position size management and other discussions.

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

Market Context Summaries

The below summaries by Bloomberg, Briefing, 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.


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


4:10 pm: [BRIEFING.COM] The major averages began their week on a higher note as the S&P 500 (+0.8%) rebounded from last week's decline of 1.3%. Contributing factors for today's trade included below-consensus economic data, weakness from the oil pit, a leg lower in the dollar, and the outperformance of the heavily-weighted consumer discretionary (+1.4%) and financial (+1.1%) sectors. The Nasdaq Composite (+0.9%) ended ahead of the benchmark index (+0.8%) and the Dow Jones Industrial Average (+0.7%).

Equity indices began their session on a wobbly note as investors digested below-consensus economic data out of China and the U.S. Over the weekend, China released April PMI data that missed expectations (50.1; estimate: 50.3), but continued to show expansion. Reaction from China was muted as both the Shanghai Composite and the Hang Seng were closed for public holidays.

On the home front, the U.S. ISM Index for April (50.8; Briefing.com consensus 51.4) and Construction Spending for March (+0.3%; Briefing.com consensus +0.6%) each missed estimates. However, the datapoints could be seen as supportive of the Fed opting to hold off on raising rates at its June meeting.

The major averages extended their rally throughout the day as upticks in the heavily-weighted consumer discretionary (+1.4%) and financial (+1.1%) sectors outweighed weakness from the oil pit. All ten sectors ended in positive territory with countercyclical consumer staples (+1.0%) and utilities (+0.8%) following the pair on the leaderboard.

In the consumer discretionary space (+1.4%), Amazon (AMZN 683.85, +24.26) extended its post-earnings winning streak by gaining 3.7%. Since reporting earnings on April 28, the company has gained 13.6%. Conversely, fellow F.A.N.G. member Netflix (NFLX 93.11, +3.08) gained 3.4%, but remains down 14.1% since disappointing investors with its quarterly report on April 18. Separately, Wynn Resorts (WYNN 94.28, +5.98) gained 6.8% after revenue, as reported by the Macau Gaming Inspection and Coordination Bureau, came in better-than-feared (-9.5% year-over-year).

Heavily-weighted component Microsoft (MSFT 50.61, +0.74) displayed relative strength in the technology sector (+0.7%). Fellow large-cap Apple (AAPL 93.65, -0.09) ended off its low, but extended its losing streak to an eighth session. On the M&A front, Oracle (ORCL 40.30, +0.44) jumped 1.1% after agreeing to acquire Opower (OPWR 10.29, +2.39) for $10.30 per share in an all cash transaction. The broader technology space gained 0.7% as it rebounded from last week's 3.6% decline.

In the financial sector (+1.1%), rate-sensitive real estate investment trusts demonstrated related strength after underperforming last week. On that note, Public Storage (PSA 252.57, +7.76) gained 3.2% after declining 4.7% last week. Elsewhere, AIG (AIG 56.59, +0.77) gained 1.4% ahead of this evening's earnings report.

The commodity-sensitive energy sector (UNCH) ended its day above its flat line as natural gas and oil finished lower. WTI crude ended its day lower by 2.6% at $44.75/bbl while natural gas finished down 6.4% to $2.04/MMbtu. In the group, Halliburton (HAL 42.05, +0.74) gained 1.8% after announcing that it would terminate its merger with Baker Hughes (BHI 47.40, -0.96).

The U.S. Dollar Index (92.60, -0.48) ended off its low as the greenback trimmed losses against the euro. The euro/dollar pair ended at 1.1525 (+0.6%) after bouncing off the 1.1470 level earlier today. Meanwhile, the dollar/yen pair ended flat at 106.45.

The Treasury complex finished at its session low with the yield on the 10-yr note rising three basis points to 1.87%.

Today's participation was above the recent average as more than 960 million shares changed hands on the NYSE floor.

Today's economic data included the April ISM Index and Construction Spending for March:

The Manufacturing ISM Index for April checked in at 50.8. That is down from 51.8 in March and 51.5 in the same period a year ago. The Briefing.com consensus estimate was pegged at 51.4, so the Manufacturing ISM Index report will qualify as another piece of weaker than expected data.
A number above 50 for this series denotes expansion in the manufacturing sector; however, the dip from March implies there was a slowdown in activity in April. This isn't the best signal for early second quarter growth expectations, yet it is a number the market could construe as being supportive of the argument that the Federal Reserve will hold off on raising rates at its June meeting.
The dip in April was driven by a drop in the New orders Index to 55.8 from 58.3. That is the fourth month in a row that the pace of new orders has slowed.
The Production Index fell to 54.2 from 55.3, and although the Employment Index rose to 49.2 from 48.1, it was below 50.0 for the fifth straight month.
The biggest uptick was seen in the Prices Index, which jumped to 59.0 from 51.5 as manufacturers responded to higher raw material prices.
The Inventories Index fell to 45.5 from 47.0, marking the tenth consecutive month that they have contracted at a faster pace.
Total construction spending increased 0.3% in March (Briefing.com consensus +0.6%), and followed some sizable revisions to construction spending data for the prior two months.
Specifically, revised data showed total construction spending increased 1.0% in February after it was previously reported to have declined 0.5%. The upshot of that positive revision was offset by a downward revision to January, which saw a 0.3% decline in total construction spending after a previously reported increase of 2.1%.
The increase in March was powered by a 1.1% increase in total private construction spending. That uptick was fueled by a 1.6% increase in residential spending and a 0.7% increase in nonresidential spending.
Total public construction spending declined 1.9% in March, dragged lower primarily by a 1.9% decline in nonresidential spending. The main pockets of weakness were a 7.6% decline in transportation spending and a 4.2% decline in sewage and waste disposal spending.
On a year-over-year basis, total construction spending is up 8.0%, which is a slower pace of growth than the 9.3% year-over-year rate seen in February.

Tomorrow's economic data will be limited to April Auto and Truck Sales, which will be released throughout the day. Separately, China's Caixin Manufacturing PMI will be released at 21:45 ET.

Dow Jones +2.7 % YTD
S&P 500 +1.8% YTD
Russell 2000 +0.4% YTD
Nasdaq Composite -3.8% YTD

3:30 pm: [BRIEFING.COM]

The dollar index extends this morning's losses even further, currently down -0.5% at the 92.66 level
Commodities, as measured by the Bloomberg Commodity Index, are down -0.9% around the 84.72 level
Crude oil extends Friday's losses, consolidating near the lows of the day in afternoon pit trading
June crude oil futures fell $1.21 (-2.6%) to $44.75/barrel
Reminder: The next OPEC meeting is scheduled for June 2, 2016
Natural gas plummets and closes notably lower, giving up all of Friday's gains and more
June natural gas closed $0.14 lower (-6.4%) at $2.04/MMBtu
A contributing factor to today's notable losses is a reaction to Friday's Texas Eastern pipeline explosion in Salem Township
This pipeline connects Louisiana & Texas to New England/New York and has 1.3 bln cubic feet of daily capacity, has yet to be fully operational
Friday, natural gas rallied and closed up +4.8%
In a knee-jerk reaction to Friday's pipeline explosion, natural gas futures have erased all of Friday's notable gains and more
In precious metals, gold closes near its year-to-date highs, extending yesterday's notable rally
June gold ended today's session up $5.20 (+0.4%) to $1295.90/oz
Silver consolidates and closes near the lows of the day
July silver closed today's session $0.13 lower (-0.7%) at $17.70/oz
Base metal copper drifts lower in afternoon pit trading
July copper closed $0.01 lower (-0.4%) at $2.27/lb

2:55 pm:

[BRIEFING.COM] As the stock market enters its final hour of trade, the S&P 500 (+0.7%) trades ahead of the Nasdaq Composite (+0.7%) and the Dow Jones Industrial Average (+0.6%).

Nine sectors trade in the green with consumer discretionary (+1.3%) and consumer staples (+1.0%) leading the pack. Conversely, energy (-0.1%) sports the only loss.

In the industrial sector (+0.4%) airlines demonstrate relative strength after Delta Air Lines (DAL 42.30, +0.63) and United Continental (UAL 46.65, +0.84) received positive comments in Barron's. The two have gained 1.5% and 1.6%, respectively. Elsewhere, United Technology (UTX 104.41, +0.04) trades on a flat note after receiving a downgrade at Goldman Sachs from "Buy" to "Hold". Separately, UPS (UPS 104.86, -0.21) has ticked lower by 0.2% as the name pulls back after last Thursday's earnings beat.

On the commodities front, WTI crude ended its day lower by 2.6% at $44.75/bbl while natural gas finished lower by 6.4% at $2.04/MMbtu.

2:30 pm:

[BRIEFING.COM] The major averages continue to float in the neighborhood of their session highs as the Nasdaq Composite (+0.7%) and the S&P 500 (+0.7%) lead the Dow Jones Industrial Average (+0.6%).

All ten sectors trade in the green with energy (+0.2%), materials (+0.2%), and health care (+0.2%) sporting the slimmest gains.

The financial sector (+1.1%) displays broad-based strength as the sector rebounds from last week's 1.0% decline. In the group, AIG (AIG 56.51, +0.59) has gained 1.2% ahead of the release of its earnings report this evening. The insurance name has gained 11.9% since reporting top- and bottom-line misses for the fourth quarter on February 11. Investors will be looking for clues as to the sale of the AIG Advisor Group, which is expected to close in the second quarter of 2016. Elsewhere, Dow component Goldman Sachs (GS 166.83, +2.72) has gained 1.7% as it tops the price-weighted index.

WTI crude trades lower by 2.4% ($44.80/bbl) ahead of its pit session close at 14:30 ET.

2:00 pm:

[BRIEFING.COM] The S&P 500 (+0.6%) has extended its recent gain as the index trades 12-points off its session low.

Nine sectors trade in positive territory with consumer discretionary (+1.3%) and utilities (+1.2%) trading neck-and-neck on the top of the leaderboard. The pair are followed by financials (+1.1%) and consumer staples (+1.0%).

In the consumer staples space (+1.0%), Colgate-Palmolive (CL 72.31, +1.38) demonstrates relative strength after receiving an upgrade from "Sell" to "Neutral" at Goldman Sachs. Elsewhere, Costco (COST 149.89, +1.76) has gained 1.2% after JP Morgan added the name to its Focus List. On the earnings front, Sysco (SYY 48.34, +2.27) has gained 4.9% after reporting above-consensus results for the first quarter.

On the commodities front, gold ended its pit session higher by 0.4% at $1,295.90/ozt. This represents a 22.2% gain in gold year to date, compared with a gain of 1.7% in the benchmark index over that period. The dollar-denominated commodity has enjoyed a 6.2% decline in the U.S. Dollar Index (92.63, -0.45) during that time.

1:30 pm:

[BRIEFING.COM] The major U.S. indices have ticked higher in recent trade, with stocks setting new intra-day highs since our last update.

A look inside the Dow Jones Industrial Average shows that Goldman Sachs (GS 166.87, +2.76), Procter & Gamble (PG 81.08, +0.96), and JPMorgan (JPM 63.93, +0.73) are outperforming amid broad strength in their respective sectors.

Conversely, Apple (AAPL 92.97, -0.77) is the worst-performing Dow component as shares extend their recent downtrend, having declined for eight straight sessions.

Rallying to kick off May, the DJIA has increased its year-to-date return to nearly 2.6%

1:10 pm:

[BRIEFING.COM] The stock market trades on a modestly higher note at midday as the major averages rebound from last week's downturn. Today's trade has featured a decline in crude oil, weaker than expected economic data, and the outperformance of the heavily-weighted consumer discretionary (+1.1%) and financial (+1.0%) sectors. The Dow Jones Industrial Average (+0.5%) trades ahead of the S&P 500 (+0.4%) and the Nasdaq Composite (+0.2%).

Today's session opened on a choppy note as investors ruminated over a downturn in oil and weaker than expected economic data at home and abroad. On that note, China's PMI for April came in a bit softer than expected (50.1; estimate 50.3) while the U.S. ISM Index for April declined to 50.8 from 51.8. Given the Fed's recent focus on global economic developments, the two readings may support the broader market's belief that the Fed will hold off on raising interest rates at its June meeting. Currently, the fed funds futures market projects a 17.0% likelihood of an interest rate hike at that meeting.

The major averages pulled back from their highs as crude oil extended its opening losses. The energy component abandoned the $45.95/bbl price shortly before the open as the commodity responded to reports indicating that OPEC members increased crude production to 32.6 million barrels per day in April. This represents a month-over-month increase of 170,000 barrels. Currently, WTI crude trades lower by 2.6% at $44.75/bbl.

The major indices have been able to tick higher in recent action as the heavily-weighted consumer discretionary (+1.1%) and financial (+1.0%) sectors lead the market higher. The pair are followed by countercyclical consumer staples (+1.0%) and utilities (+1.0%). On the flipside, energy (-0.5%), technology (UNCH), and health care (+0.1%) round out the board.

In the consumer discretionary sector (+1.1%), Wynn Resorts (WYNN 94.03, +5.73) outperforms after revenue, as reported by the Macau Gaming Inspection and Coordination Bureau, came in better-than-feared (-9.5% year-over-year). Meanwhile, Amazon (AMZN 678.23, +18.64) demonstrates relative strength, extending its post-earnings winning streak to 12.7%. This compares to a gain of 1.6% in the Consumer Discretionary SPDR ETF (XLY 80.03, +0.83) over that period.

Biotechnology demonstrates relative weakness in the health care space (+0.1%), evidenced by the 0.7% decline in the iShares Nasdaq Biotechnology ETF (IBB 266.16, -1.78). In the sub-group, Valeant Pharmaceuticals (VRX 31.93, -1.43) has declined 4.3% following bearish commentary from Warren Buffett and Charlie Munger on the business and its prior practices. The company has also slid following Perrigo (PRGO 95.20, -1.46) receiving FDA approval for a generic version of the company's BenzaClin Pump Gel.

In the technology space (UNCH), Seagate Technology (STX 20.32, -1.45) has surrendered 6.7% after receiving a downgrade at JP Morgan to "Underweight" from "Neutral." Meanwhile, Dow-component Apple (AAPL 92.76, -0.98) has extended its post-earnings loss as it looks to test its February low of 92.59 once more. Separately, Oracle (ORCL 40.01, +0.15) has gained 0.4% after agreeing to acquire Opower (OPWR 10.29, +2.39) for $10.30 per share in an all cash transaction.

The commodity-sensitive energy sector (-0.5%) rounds out the leaderboard as the group responds to losses in oil and natural gas. Halliburton (HAL 42.48, +1.17) has gained 2.8% after announcing that it would terminate its merger with Baker Hughes (BHI 47.18, -1.19). As a result of the merger termination, Halliburton will pay Baker Hughes a $3.5 billion break-up fee.

The U.S. Dollar Index (92.57, -0.52) hovers above its low as the greenback extends its loss against the euro. The single currency has gained 0.7% against the dollar (1.1532) after ticking off the 1.1470 level. Meanwhile, the dollar/yen pair trades flat at 106.46.

The Treasury complex has inched off its session low throughout the session as the yield on the 10-yr note slides from 1.86% (+3 bps) to 1.84% (+1 bps).

Today's economic data included the April ISM Index and Construction Spending for March:

The Manufacturing ISM Index for April checked in at 50.8. That is down from 51.8 in March and 51.5 in the same period a year ago. The Briefing.com consensus estimate was pegged at 51.4, so the Manufacturing ISM Index report will qualify as another piece of weaker than expected data.
A number above 50 for this series denotes expansion in the manufacturing sector; however, the dip from March implies there was a slowdown in activity in April. This isn't the best signal for early second quarter growth expectations, yet it is a number the market could construe as being supportive of the argument that the Federal Reserve will hold off on raising rates at its June meeting.
The dip in April was driven by a drop in the New orders Index to 55.8 from 58.3. That is the fourth month in a row that the pace of new orders has slowed.
The Production Index fell to 54.2 from 55.3, and although the Employment Index rose to 49.2 from 48.1, it was below 50.0 for the fifth straight month.
The biggest uptick was seen in the Prices Index, which jumped to 59.0 from 51.5 as manufacturers responded to higher raw material prices.
The Inventories Index fell to 45.5 from 47.0, marking the tenth consecutive month that they have contracted at a faster pace.
Total construction spending increased 0.3% in March (Briefing.com consensus +0.6%), and followed some sizable revisions to construction spending data for the prior two months.
Specifically, revised data showed total construction spending increased 1.0% in February after it was previously reported to have declined 0.5%. The upshot of that positive revision was offset by a downward revision to January, which saw a 0.3% decline in total construction spending after a previously reported increase of 2.1%.
The increase in March was powered by a 1.1% increase in total private construction spending. That uptick was fueled by a 1.6% increase in residential spending and a 0.7% increase in nonresidential spending.
Total public construction spending declined 1.9% in March, dragged lower primarily by a 1.9% decline in nonresidential spending. The main pockets of weakness were a 7.6% decline in transportation spending and a 4.2% decline in sewage and waste disposal spending.
On a year-over-year basis, total construction spending is up 8.0%, which is a slower pace of growth than the 9.3% year-over-year rate seen in February.

12:25 pm:

[BRIEFING.COM] The major averages have traded sideways as the Dow Jones Industrial Average (+0.3%) trades in line with the S&P 500 (+0.3%).

Four sectors trade in the red with commodity-sensitive energy (-1.0%) and materials (-0.2%) trailing heavily-weighted health care (-0.1%) and technology (-0.1%).

In the health care space (-0.1%), biotechnology demonstrates relative weakness, evidenced by the 0.9% decline in the iShares Nasdaq Biotechnology ETF (IBB 265.54, -2.41). Meanwhile, Dow component Pfizer (PFE 32.69, -0.01) trades on a flat note ahead of its earnings report tomorrow morning. The company is expected to report adjusted earnings of $2.20 to $2.30 on $49 billion to $51 billion worth of revenue. Elsewhere, Eli Lilly (LLY 76.24, +0.71) has gained 0.9% after receiving a price target increase at Leerink Partners to $101 from $96. Eli Lilly is also benefiting from positive commentary in Barron's.

The U.S. Dollar Index (92.72, -0.36) continues to hover near its low as the greenback shows gains against the yen and the Canadian dollar. The dollar/Canadian dollar pair trades higher by 0.1% at 1.12547 while the dollar has gained 0.1% against the yen (106.60).

12:00 pm:

[BRIEFING.COM] The stock market has slid lower since our last update as the S&P 500 (+0.3%) remains ahead of the tech-heavy Nasdaq (+0.1%).

The commodity-sensitive energy sector (-0.7%) has extended its loss as it trades behind both health care (-0.1%) and technology (-0.1%). On the flipside, consumer discretionary (+1.0%) and financials (+0.9%) outperform.

In the technology sector (-0.1%), Dow component Apple (AAPL 93.11, -0.63) has extended its post-earnings loss to 10.8%. The tech giant recently defended its February 11 intra-day low (92.59) after rebounding from the 92.40 level. Seagate Technology (STX 20.29, -1.49) has surrendered 6.8% after receiving a downgrade at JP Morgan to "Underweight" from "Neutral." On the flipside, high-beta chipmakers outperform the broader sector, evidenced by the 0.2% gain in the PHLX Semiconductor Index. Meanwhile, LinkedIn (LNKD 127.86, +2.74) has gained 2.2% as the names extends its rebound. The stock remains down 43.2% in 2016.

On the commodities front, WTI crude trades lower by 2.7% at $44.69/bbl while gold trades higher by 0.5% ($1,297.40/ozt).

11:30 am:

[BRIEFING.COM] The S&P 500 (+0.3%) has ticked higher since our last update as the benchmark index trades six points off its session low.

Three sectors trade in the red with energy (-0.3%) trailing heavily-weighted health care (-0.2%) and technology (-0.1%).

In the consumer discretionary sector (+0.9%), Amazon (AMZN 676.59, +17.00) demonstrates relative strength as its extends its post-earnings winning streak. The stock has gained 12.4% since reporting above-consensus results on its quarterly report on April 28. This compares to a gain of 1.5% in the Consumer Discretionary SPDR ETF (XLY 79.95, +0.75) over that period. Separately, fast casual restaurant names outperform as Yum! Brands (YUM 80.65, +1.09) and Chipotle Mexican Grill (CMG 427.16, +6.19) gain a respective 1.4% and 1.5%.

The U.S. Dollar Index (92.68, -0.40) has drifted back towards its low as the greenback extends its loss against the euro. The single currency has gained 0.5% against the dollar (1.1515) after ticking off the 1.1470 level. Meanwhile, the dollar/yen pair trades higher by 0.1% at 106.55.

11:00 am:

[BRIEFING.COM] The major averages have slipped from session highs as the Dow Jones Industrial Average (+0.3%) and the S&P 500 (+0.2%) remain ahead of the Nasdaq Composite (UNCH).

Eight sectors trade in the green with consumer discretionary (+0.7%), financials (+0.6%), and consumer staples (+0.4%) leading the pack.

The commodity-sensitive energy sector (-0.4%) displays relative weakness as it responds to downturn in oil and natural gas. Ahead of today's session, reports indicated that crude oil production by OPEC members increased to 32.6 million barrels per day in April. This represents an increase of approximately 170,000 barrels a day on a month-over-month basis. As a result, WTI crude trades lower by 1.7% at $45.15/bbl.

In the energy space, pipeline companies and independent oil and gas names demonstrate relative weakness. Separately, Halliburton (HAL 42.01, +0.70) has gained 1.7% after announcing that it would terminate its merger with Baker Hughes (BHI 48.08, -0.28). As a result of the merger termination, Halliburton will pay Baker Hughes a $3.5 billion break-up fee.

The Treasury complex trades at a session low as the yield on the 10-yr rises two basis points to 1.86%.

10:30 am: [BRIEFING.COM]

The dollar index plummets to a fresh low of the day, down (-0.4%) around the 92.71 level, not appearing to aid commodities
Commodities, as measured by the Bloomberg Commodity Index, are down -0.9% at the 84.76 level
Crude oil drifts lower, trading near its lows of the day in morning pit trading
June crude oil futures are down $0.75 (-1.7%) at $45.18/barrel
Reminder: The next OPEC meeting is scheduled for June 2, 2016
Natural gas plummets, giving up almost all of Friday's notable +4.8% gains
May natural gas futures are currently down $0.09 (-3.9%) at $2.09/MMBtu
A contributing factor to today's notable losses is Friday's Texas Eastern pipeline explosion in Salem Township
This pipeline connects Louisiana & Texas to New England/New York and has 1.3 bln cubic feet of daily capacity, has yet to be fully operational
Friday, natural gas rallied and closed up +4.8%
In a knee-jerk reaction to Friday's pipeline explosion, natural gas futures have erased almost all of Friday's notable gains
In precious metals, gold extends Friday's notable gains, reaching new year-to-date highs
June gold futures are up $7.10 (+0.5%) at $1297.30/oz
Silver loses steam & trades near parity with the previous session's close, directionless in morning pit trading
May silver futures are down $0.01 (-0.08%) at $17.81
Base metal copper inches lower in morning pit trading
May copper futures are down $0.02 (-0.9%) at $2.26/lb

10:00 am:

[BRIEFING.COM] The major averages trade on a mixed note with the S&P 500 (+0.2%) trading ahead of the Nasdaq Composite (UNCH).

Eight sectors remain in the green as energy (-0.3%) and technology (-0.2%) underperform. On the flipside, countercyclical consumer staples (+0.5%) and telecom services (+0.4%) top the leaderboard.

Just released, the ISM Index for April indicated a decrease to 50.8 from 51.8 while the Briefing.com consensus expected a reading of 51.4.

Separately, construction spending rose 0.3% (Briefing.com consensus +0.6%) in March, with a revision from -0.5% to 1.0% in February.

9:45 am:

[BRIEFING.COM] The stock market began its day on a higher note as the S&P 500 (+0.3%) and the Dow Jones Industrial Average (+0.3%) outpaced the gains in the Nasdaq Composite (+0.2%).

Eight sectors trade in the green with telecom services (+0.8%), consumer staples (+0.8%), and consumer discretionary (+0.6%) leading the advance. The remaining gainers show upticks between 0.1% (industrials) and 0.4% (health care). Conversely, energy (-0.4%) and materials (-0.2%) show the only losses.

On the M&A front, Oracle (ORCL 40.01, +0.15) has gained 0.4% after agreeing to acquire Opower (OPWR 10.32, +2.42) for $10.30 per share in an all cash transaction.

In the consumer discretionary space (+0.6%), Wynn Resorts (WYNN 93.22, +4.92) demonstrates relative strength following the Macau Gaming Inspection and Coordination Bureau reporting April gross gaming revenue. The reading showed that April gross gaming revenue declined 9.5% year-over-year, which was in-line with estimates.

On the commodities front, WTI crude trades lower by 0.8% ($45.55/bbl) while natural gas has declined 2.9% ($2.12/MMbtu).

9:14 am: [BRIEFING.COM] S&P futures vs fair value: +6.80. Nasdaq futures vs fair value: +9.90.

The stock market is on track for a modestly higher open as the S&P 500 futures trade seven points above fair value.

On the corporate front, Sysco (SYY 46.70, +0.63) has gained 1.4% after beating top- and bottom-line estimates for the third quarter. The company saw gross profits increase 4.1% year-over-year, totaling $2.1 billion. Separately, mortgage servicer name Altisource Portfolio Solutions (ASPS 29.03, -2.26) has declined 7.2% after being downgraded to "Underweight" from "Neutral" at Piper Jaffray. The firm also lowered its price target on the stock from $24 to $16.

The U.S. Dollar Index (92.91, -0.17) has lifted from its low as the greenback extends its lead against the yen. The dollar/yen pair trades higher by 0.2% (106.68) after ticking off the 106.35 level overnight. Elsewhere, the euro has gained 0.2% against the dollar (1.1473).

Today's economic data will be limited to the 10:00 ET release of the April ISM Index (Briefing.com consensus 51.4) and Construction Spending for March (Briefing.com consensus -0.5%).

8:56 am: [BRIEFING.COM] S&P futures vs fair value: +5.80. Nasdaq futures vs fair value: +8.30.

The S&P 500 futures trade six points above fair value.

Equity markets across Asia began the trading week on a lower note with Japan's Nikkei (-3.1%) leading the region lower while other markets posted slimmer losses. Overall trading volumes were a bit below average considering markets in China and Hong Kong were closed for Labor Day.

In economic data:
China's April Manufacturing PMI 50.1 (expected 50.4; last 50.2) and Non-Manufacturing PMI 53.5 (last 53.8)
Japan's April Manufacturing PMI 48.2 (expected 48.0; last 48.0)
South Korea's April trade surplus narrowed to KRW8.80 billion from KRW9.90 billion (expected surplus of KRW7.70 billion). April Exports declined 11.2% year-over-year (expected -11.0%; last -8.1%) and Imports fell 14.9% (consensus -12.5%; last -13.9%). April Nikkei Manufacturing PMI 50.0 (last 49.5)
India's April Nikkei Markit Manufacturing PMI 50.5 (last 52.4)

---Equity Markets---

Japan's Nikkei lost 3.1% amid broad weakness. All ten sectors ended in the red with technology (-4.6%), consumer discretionary (-4.4%), and financials (-3.4%) leading the retreat. Nippon Electric Glass sank 16.8% after issuing cautious guidance while Tokyo Gas, Alps Electric, TDK, Panasonic, Suzuki Motor, Yamaha, Isuzu, and Konica Minolta posted losses between 5.8% and 9.9%.
Hong Kong's Hang Seng was closed.
China's Shanghai Composite was closed.

Most major European indices have spent the first half of action in the green while UK's FTSE is closed for Early May Bank Holiday. According to reports, Greek officials have reached an agreement with creditors regarding a framework for sales of bad loans to a distressed debt fund.

In economic data:
Eurozone April Manufacturing PMI 51.7 (expected 51.5; last 51.5)
Germany's April Manufacturing PMI 51.8 (consensus 51.9; last 51.9)
France's April Manufacturing PMI 48.0 (consensus 48.3; previous 48.3)
Italy's April Manufacturing PMI 53.9 (last 53.0; previous 53.5)
Spain's April Manufacturing PMI 53.5 (consensus 53.0; prior 53.4)
Swiss April SVME PMI 54.7 (expected 52.8; prior 53.2) and March Retail Sales -1.3% year-over-year (consensus 0.3%; last -0.4%)

---Equity Markets---

UK's FTSE is closed.
France's CAC is higher by 0.5% with Orange, Valeo, Kering, Michelin, Pernod Ricard, and Louis Vuitton in the lead. The six names hold gains between 1.2% and 2.1%. On the downside, Veolia Environnement is down 2.8% and Lafarge trades down 1.0%.
Germany's DAX has climbed 1.0% amid strength in most names. Exporters BMW, Volkswagen, and Daimler show gains between 1.0% and 1.8% while financials lag. Commerzbank and Deutsche Bank hold respective losses of 0.4% and 2.7%.

8:31 am: [BRIEFING.COM] S&P futures vs fair value: +5.80. Nasdaq futures vs fair value: +7.60.

The S&P 500 futures trade six points above fair value.

Over the weekend, Puerto Rico's Governor Alejandro Garcia Padilla announced that the U.S. territory does not plan to make an approximately $370 million bond payment due today. Expectations of a default were already raised after bondholders filed a lawsuit last month seeking to block withdrawals from the territory's Government Development Bank.

In specific company news, Berkshire Hathaway (BRK.B 145.75, +0.00) held its annual meeting over the weekend and announced that operating earnings likely fell to $3.737 billion from $4.244 billion last year. The company's full earnings report will be released on May 6. Separately, AIG (AIG 56.18, +0.36) announced that the sale of 740 million shares of PICC Property and Casualty will likely net the company $1.25 billion. The deal is set to close on May 5.

The U.S. Dollar Index (92.75, -0.33) has ticked off a fresh session low as the euro extends its gain against the greenback. The euro/dollar pair trades higher by 0.3% at 1.1492. Meanwhile, the dollar has gained 0.1% against the yen (106.50).

8:00 am: [BRIEFING.COM] S&P futures vs fair value: +5.80. Nasdaq futures vs fair value: +7.80.

U.S. equity futures hover below overnight highs with the S&P 500 futures trading six points above fair value. Futures moved higher overnight as oil rebounded from its low ($45.46/bbl; -1.0%) in light overseas action. Currently, the energy component trades flat at $45.92/bbl. Over the weekend, China's April PMI missed expectations (50.1; estimate: 50.3), but remained in expansion territory. Reactions from China were muted as both the Shanghai Composite and the Hang Seng were closed for public holidays. On the home front, Baker Hughes (BH 47.69, -0.67) and Halliburton (HAL 41.35, +0.04) announced that they would terminate their proposed merger agreement.

The Treasury complex trades on a higher note with the yield on the 10-yr note lower by two basis points to 1.82%.

On the economic front, data will be limited to the April ISM Index (Briefing.com consensus 51.4) and Construction Spending for March (Briefing.com consensus -0.5%), which will each cross the wires at 10:00 ET.

In U.S. corporate news of note:

Baker Hughes (BHI 47.69, -0.67): -1.4% after confirming the termination of its merger agreement with Halliburton (HAL 41.35, +0.04)
Apollo Education (APOL 8.88, +1.08): +13.9% following a revised offer from a consortium of investors to acquire the company for $10 per share in an all cash deal
ACADIA Pharmaceuticals (ACAD 34.21, +1.91): +5.9% after confirming FDA approval for its Parkinson's disease psychosis treatment

Reviewing overnight developments:

Asia-Pacific markets began the week lower with Japan's Nikkei -3.1% while Hong Kong's Hang Seng and China's Shanghai Composite were closed for Labor Day.
In economic data:
China's April Manufacturing PMI 50.1 (expected 50.4; last 50.2) and Non-Manufacturing PMI 53.5 (last 53.8)
Japan's April Manufacturing PMI 48.2 (expected 48.0; last 48.0)
South Korea's April trade surplus narrowed to KRW8.80 billion from KRW9.90 billion (expected surplus of KRW7.70 billion). April Exports declined 11.2% year-over-year (expected -11.0%; last -8.1%) and Imports fell 14.9% (consensus -12.5%; last -13.9%). April Nikkei Manufacturing PMI 50.0 (last 49.5)
India's April Nikkei Markit Manufacturing PMI 50.5 (last 52.4)

European indices trade higher with Germany's DAX +1.0% and France's CAC +0.6%. Separately, the U.K.'s FTSE is closed for Early May Bank Holiday
In economic data
Eurozone April Manufacturing PMI 51.7 (expected 51.5; last 51.5)
Germany's April Manufacturing PMI 51.8 (consensus 51.9; last 51.9)
France's April Manufacturing PMI 48.0 (consensus 48.3; previous 48.3)
Italy's April Manufacturing PMI 53.9 (last 53.0; previous 53.5)
Spain's April Manufacturing PMI 53.5 (consensus 53.0; prior 53.4)
Swiss April SVME PMI 54.7 (expected 52.8; prior 53.2) and March Retail Sales -1.3% year-over-year (consensus 0.3%; last -0.4%)
In news:
According to reports, Greek officials have reached an agreement with creditors regarding a framework for sales of bad loans to a distressed debt fund.

5:55 am: [BRIEFING.COM] S&P futures vs fair value: +2.30. Nasdaq futures vs fair value: -0.60.

5:55 am: [BRIEFING.COM] Nikkei...16147...-518.70...-3.10%. Hang Seng...Holiday.........

5:55 am: [BRIEFING.COM] FTSE...Holiday......... DAX...10123.03...+84.10...+0.80%.

Special thanks to Bloomberg, Briefing, 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
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