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)


click on the above image to view today's trading summary

Trade Performance for Today: +10.50 points or $1050.00 dollars in the Russell 2000 Emini TF ($TF_F) Futures.
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.

In addition, all trades were posted real-time in the free #FuturesTrades chat room. Today's #FuturesTrades trading chat room logs provides details (e.g. time, price, contract size) about each one of my trades from entry to exit along with price action commentary as the trade traversed...all archived @ http://www.thestrategylab.com/ftchat/forum/viewtopic.php?f=94&t=992.

To join our free chat room...registration instructions located at a different forum @ http://www.thestrategylab.com/ftchat/forum/viewtopic.php?f=5&t=630

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

WRB Analysis Tutorials @ http://www.thestrategylab.com/WRBAnalysisTutorials.htm and there's a free study guide of the WRB Analysis Tutorial Chapters 1, 2 and 3 @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=5&t=180.

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 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=143&t=1197

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

Market Summaries

The below summaries by Bloomberg, CNNMoney and Yahoo! Finance helps me to do a quick review of the fundamentals, FED/ECB/IMF actions or any important global economic events that had an impact on today's price action. Simply, I'm a strong believer that many variables (key market events) causes key changes in supply/demand and volatility that results in swing points and strong continuation price actions. Thus, I pay attention to these key market events from one trade to the next trade to give me the market context for my technical analysis. Just as important, these summaries becomes my archives to allow me to understand what was happening on any given trading day in the past...something I can not get from my broker statements alone.

U.S. Stocks Rise on Speculation About Obama Jobs Plan

Sept. 7 (Bloomberg) -- Bloomberg's Deborah Kostroun reports on the performance of the U.S. equity market today. U.S. stocks rose, giving the Standard & Poor's 500 Index its biggest rally in two weeks, as investors speculated President Barack Obama's plan to inject more than $300 billion into the economy will bolster growth.

Stocks Surge After Three-Day Rout


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

By Hibah Yousuf September 7, 2011: 4:52 PM ET

NEW YORK (CNNMoney) -- Stocks rallied right out of the gate and picked up steam through the day to end sharply higher Wednesday. The gains game as concerns over Europe's debt crisis eased and investors geared up for President Obama's highly anticipated jobs speech Thursday evening.

The Dow Jones industrial average (INDU) surged 276 points, or 2.5%. All 30 of the blue-chip index's components posted gains. The S&P 500 (SPX) added 33 points, or 2.9%, and the Nasdaq Composite (COMP) jumped 75 points, or 3%.

Stocks got off to an ugly start in September, with all three indexes declining more than 4% during the first three trading days of the month, amid fears about Europe's money troubles and a stalling economic recovery in the United States.

After Wednesday's broad advance, the indexes are down just 1% for the month.

The renewed optimism came on the back of solid gains in stock markets around the world, after a German court ruling rejected lawsuits intended to block Germany's involvement in providing other eurozone members with bailout packages.

"The court ruling confirms [German Chancellor] Angela Merkel's ability to help bail out Europe's troubled areas, and that provides a great amount of confidence that we will see some sort of solution in Europe soon enough," said Brian Battle, director with Performance Trust Capital Partners.

* Big hedge funds are getting slaughtered

But the court's decision also said that the German parliament must have a greater say in the decisions, which could slow the process.

Investors are also preparing for President Obama to unveil a new $300 billion jobs proposal Thursday evening aimed at stimulating the stagnant labor market.

While details of the plan are limited ahead of the speech, Battle said investors will be listening for measures that haven't been "pre-announced."

"There are a number of things investors are already anticipating, and they're hoping that the president will also have some sort of a surprise -- maybe more tax cuts or help for homeowners -- but it's hard to say," Battle said.

Jobs are clearly on investors' minds, especially following last week's dismal government report that showed zero job growth in August -- stoking fears of another recession.

* Video - Obama's uneven track record on jobs

U.S. stocks fell Tuesday, extending last week's losses, as the long-running debt crisis weighed on investor sentiment.

Economy: It's been a rough few weeks for investors as stocks have been quick to react to a series of mixed economic reports. That's resulted in a roller-coaster ride that doesn't seem to be ending anytime soon.

"Investors will be reacting to every headline, day by day," Battle said.

In the Federal Reserve's Beige Book report, a reading of the economic situation from the regional Fed banks, the central bank said "economic activity continued to expand at a modest pace," though some of the Fed's 12 districts noted "mixed or weakening" activity.

Signs of slower growth add pressure on the central bank to announce new steps to stimulate the economy followings its two-day meeting on monetary policy later this month.

Bonds: The price on the benchmark 10-year U.S. Treasury edged lower, with the yield rising to 2.02%.

* Worried bonds are no longer safe?

On Tuesday the 10-year yield hit record lows of 1.91% in overnight trading, as investors plowed into Treasuries amid fears about a slowing U.S. economy and a deepening European debt crisis.

Currencies and commodities: The dollar was down against the euro, the Japanese yen and the British pound.

Oil for October delivery gained $3.32, or almost 4%, to settle at $89.34 a barrel.

Gold futures for December delivery fell $55.70, or 3%, to settle at $1,817.60 an ounce.

* Video - Yahoo rises as Bartz departs

Companies: Shares of Yahoo (YHOO, Fortune 500) jumped 5.4%, after the company announced that CEO Carol Bartz was fired late Tuesday. Tim Morse, the company's chief financial officer, was named as Yahoo's interim CEO.

Also late Tuesday, Bank of America (BAC, Fortune 500) announced plans to reshape its management team by letting go of Joe Price, the president of consumer and small-business banking, and Sallie Krawcheck, president of wealth and investment management. Bank of America shares rose more than 7%.

* Brace for profit forecasts to be reeled in

Other financial stocks followed Bank of America's lead, with shares of Citigroup (C, Fortune 500) and JPMorgan (JPM, Fortune 500) up more than 4%. Goldman Sachs' (GS, Fortune 500) stock edged up 3.6%.

World markets: European stocks closed sharply higher. Britain's FTSE (UKX) 100 rose 3.2%, the DAX (DAX) in Germany gained 4% and France's CAC 40 (CAC40) jumped 3.4%.
Is the euro doomed?

Asian markets ended the session higher. The Shanghai Composite (SHCOMP) closed up 1.8%, the Hang Seng in Hong Kong (HSI) added 1.7% and Japan's Nikkei (N225) rose 2%.



Market Update

4:30 pm : An improved tone abroad brought buyers back into the fold today. Support was unwavering.

News that a German court rejected a lawsuit to prevent Germany from participating in European Union bailouts helped several of Europe's bourses rally between 3% and 4% after they had suffered a series of steep losses that left them deep in bear market territory. The notion that Germany, Europe's most robust and diverse economy, is still at the lending table also triggered support for the euro, which worked its way to $1.410 for a 0.7% gain against the greenback.

Renewed confidence in Europe compelled domestic participants to switch on the risk trade after they had sent the stock market lower in three straight sessions for a cumulative loss of more than 4%. The S&P 500 bounced back by staging a steady advance to settle at its session high with a gain of almost 3%. Small-caps and mid-caps staged more stronger performances.

Financials collectively spiked almost 5%. They were the best performing sector this session, but only after they had underperformed in each of the past three trading days, during which time the sector surrendered about 8% of its market value.

Bank of America (BAC 7.48, +0.49) was a top performer in the sector after it announced plans to streamline its management and create a co-chief operating officer role.

Yahoo! (YHOO 13.61, +0.70) also announced changes to its management. The company's CFO will take over the role of CEO. That announcement, along with broad market support, made YHOO one of the better performing names of the day.

Fellow Nasdaq component NVIDIA (NVDA 14.25, +1.07) staged an even more impressive move. The stock's move toward its monthly high came in the wake of a pleasing revenue forecast for fiscal 2013.

Advancing Sectors: Financials +4.8%, Energy +3.7%, Industrials +3.1%, Tech +2.7%, Materials +2.7%, Consumer Discretionary +2.6%, Health Care +2.4%, Consumer Staples +1.6%, Telecom +1.2%, Utilities +1.0%
Declining Sectors: (None)DJ30 +275.56 NASDAQ +75.11 NQ100 +2.6% R2K +4.2% SP400 +3.8% SP500 +33.38 NASDAQ Adv/Vol/Dec 2207/1.78 bln/391 NYSE Adv/Vol/Dec 2738/954 mln/315

3:30 pm : A sharp rally in global equity indices pressured precious metals today, with Dec gold shedding 2.9% to close at $1817.60 per ounce, while Dec silver lost 0.6% to end at $41.63 per ounce. With investors returning, at least momentarily, to equities gold futures traded in close to a 100 point range from its electronic highs ($1883.20) to its intraday lows ($1793.80). Silver futures traded to their lowest levels in intraday trade but managed to rally of those lows to recoup a majority of losses.

The strength in equities supported the rally in Oct crude oil, which settled higher by 3.9% to $89.34 per barrel -its largest percentage gain in a month. Adding additional support was a new weather system developing out in the Bay of Campeche in Mexico. Futures traded to their best levels since the beginning of the month after notching highs at $89.79 in late morning trade. Oct natural gas, which finished near unchanged at $3.94 per MMBtu, also rallied on reports of the storm. However, heading into the close of pit trade futures gave back those gains to finish near flat on the day. DJ30 +258.69 NASDAQ +71.28 SP500 +31.49 NASDAQ Adv/Vol/Dec 2181/1.3 bln/418 NYSE Adv/Vol/Dec 2729/605.7 mln/328

3:00 pm : The Nasdaq Composite is now up almost 3% as it heads into the final hour of today's trade. Shares of Nasdaq OMX (NDAQ 23.59, +1.90) are among the best performers within the actual Nasdaq Composite, thanks partly to an analyst upgrade. Not to be outdone, shares of NVIDIA (NVDA 14.27, +1.09) are also up in excess of 8% after the company issued strong revenue guidance for fiscal 2013.DJ30 +259.90 NASDAQ +72.95 SP500 +32.21 NASDAQ Adv/Vol/Dec 2175/1.08 bln/395 NYSE Adv/Vol/Dec 2700/480 mln/305

2:30 pm : The stock market's steady ascent continues. As such, the S&P 500 is approaching a 3% gain. The stock market hasn't scored such a sizable gain since it spiked 3.4% on August 23, which was at the beginning of the winning streak that saw the S&P 500 climb in seven out of eight sessions.DJ30 +247.33 NASDAQ +69.93 SP500 +31.45 NASDAQ Adv/Vol/Dec 2175/1.08 bln/395 NYSE Adv/Vol/Dec 2700/475 mln/305

2:05 pm : Stocks started to drift off of their session highs in the minutes that had preceded the release of the Fed's Beige Book. The stock market has since regrouped and staged a nice bounce that has taken stocks to their best levels of the day.

According to the latest collection of regional anecdotal data, that is, to say, the Beige Book, economic activity continued to expand at a modest pace overall, but some Fed Districts reported mixed or weakening activity. Although signs of weaker activity would hurt economic growth prospects, those very signs bolster the case for further quantitative easing. DJ30 +233.10 NASDAQ +65.10 SP500 +29.87 NASDAQ Adv/Vol/Dec 2165/1.00 bln/395 NYSE Adv/Vol/Dec 2680/435 mln/315

1:30 pm : Stocks continue to crawl higher. The steady pace has all three major equity averages up more than 2% to their best levels of the day. The action comes in stark contrast to what had been exhibited in the three previous sessions, when stocks suffered a string of losses that left the S&P 500 to shed more than 4%.

Amid the decidedly positive tone of today's trade, advancing volume outnumbers declining volume by about 15-to-1 on the NYSE. Overall share volume isn't that robust, though. DJ30 +225.46 NASDAQ +62.82 SP500 +27.60 NASDAQ Adv/Vol/Dec 2180/900 mln/375 NYSE Adv/Vol/Dec 2675/400 mln/300

1:00 pm : Stocks are trading at session highs as buyers move back into the market following three straight losses. An improved mood abroad has helped the case for stocks.

The major equity averages dropped sharply yesterday amid weakness in Europe, where lingering concerns about economic, fiscal, and financial health in the region frequently undermine investor sentiment, but stocks eventually rebounded to finish the day at session highs. Momentum from the move has carried over into today's action, partly because word that a German court rejected a lawsuit to prevent Germany from participating in European Union bailouts prompted Europe's bourses to bounce big in their latest effort.

The stock market had shed more than 4% during the course of the previous three sessions, so today's buying effort has been generally broad. That said, financials have garnered the most interest. The sector's swing to a 3.7% gain comes after it had logged losses of 2.4%, 4.0%, and 1.8%, respectively, during course of the past three sessions (recall that US markets were closed on Monday in observance of Labor Day).

Bank of America (BAC 7.43, +0.44) is a top performer among financial plays. The diversified banking and financial services giant announced plans to streamline its management, including the creation of a co-chief operating officer role.

Yahoo! (YHOO 13.40, +0.49) also announced a management shake up that featured the firing of its CEO.

The improved tone of today's trade has prompted many participants to sell their positions in precious metals. Gold prices actually set a new record high above $1920 per ounce on Tuesday night, but closed trade on Wednesday with a 0.1% loss. The downturn has extended into today's action, leaving the yellow metal to trade with a 2.5% loss at $1827 per ounce. Prices actually dipped below $1800 per ounce earlier today.

Treasuries have also fallen out of favor, such that the yield on the benchmark 10-year Note has moved back above 2.0% after it descended to a multi-decade low yesterday.

The dollar is also down today. Its weakness is largely owed to the euro, which is up 0.4% to $1.406 in the wake of the German court ruling. DJ30 +203.28 NASDAQ +56.68 SP500 +25.65 NASDAQ Adv/Vol/Dec 2150/815 mln/375 NYSE Adv/Vol/Dec 2650/365 mln/315

12:30 pm : Stocks have made an incremental move higher so that they now sit at their best levels of the day. Although the Dow is still a bit behind its counterparts, it is flirting with a 200-point gain.DJ30 +197.61 NASDAQ +55.52 SP500 +25.53 NASDAQ Adv/Vol/Dec 2125/735 mln/385 NYSE Adv/Vol/Dec 2612/330 mln/665

12:05 pm : Financials have stretched their gains so that the sector is now up 3.2%. Bank of America (BAC 7.36, +0.38) remains a top performer following news that the outfit has established a co-chief operating officer role.DJ30 +178.31 NASDAQ +52.06 SP500 +23.37 NASDAQ Adv/Vol/Dec 2130/670 mln/360 NYSE Adv/Vol/Dec 2600/295 mln/335

11:30 am : After chopping along for about an hour, stocks have moved another leg higher. Although the move erased yesterday's loss only shortly after the open, losses from last Friday (US markets were closed on Monday in observance of Labor Day) haven't quite been eclipsed.

Stocks may be at session highs, but gold prices have managed to move up from their worst levels of the day. The precious metal had been just below $1800 per ounce about an hour ago, but it is now up to $1817 per ounce. That still makes for a 3.0% loss, however. DJ30 +189.40 NASDAQ +49.84 SP500 +23.84 NASDAQ Adv/Vol/Dec 2095/540 mln/350 NYSE Adv/Vol/Dec 2590/240 mln/290

11:00 am : Stocks sitting just shy of their session highs. The strong, broad bid has put pressure on Treasuries, such that the yield on the benchmark 10-year Note is now several basis points above 2.0%, which was breached yesterday as the Note's yield descended to its lowest level in decades.

The dollar has remained under steady pressure, too. It continues to trail the euro by 0.4% after a German court rejected a lawsuit that was aimed at preventing Germany from participating in European Union bailouts. Just yesterday the euro retreated sharply, even though it was learned that the Swiss National Bank will fix its franc at 1.20 euros and stands ready to purchase foreign currencies in unlimited quantities. The Swiss franc has been one of the best performing currencies of the past year. It currently trades at $1.165. DJ30 +155.26 NASDAQ +40.44 SP500 +19.58 NASDAQ Adv/Vol/Dec 2090/435 mln/320 NYSE Adv/Vol/Dec 2585/193 ,;m/270

10:30 am : Higher oil prices, last qouted with a 2.8% gain at $88.43 per barrel, have helped take the CRB Commodity Index 1.1% higher. Natural gas has also provided support to the CRB; the energy component was last quoted with a 1.8% gain at $4.01 per MMBtu after it had been in negative territory ahead of pit trade.

Precious metals are under pressure amid an improved tone of trade in the equity market. With the risk trade switched back on today, gold prices are down 3.7% to $1803 per ounce, which is only a few dollars above the session low that it set only minutes ago. Meanwhile, silver has fallen 2.6% to $40.78 per ounce. That's still about $0.40 above silver's session low, though. DJ30 +154.28 NASDAQ +42.91 SP500 +19.24 NASDAQ Adv/Vol/Dec 2070/290 mln/245 NYSE Adv/Vol/Dec 2575/135 mln/225

10:00 am : The stock market is gradually adding to its opening gain. Stocks now sit at session highs.

Energy stocks and financial stocks have extended their lead over the rest of the market. Energy stocks are now up 2.4% as a group. They are currently led by Peabody Energy (BTU 47.98, +2.40) and Williams Companies (WMB 26.75, +1.22). As for financials, regional lenders like Regions Financial (RF 4.11, +0.21) and insurance and financial services issues like Hartford Financial (HIG 17.48, +0.77) are atop the list of leaders. DJ30 +166.20 NASDAQ +43.14 SP500 +19.66 NASDAQ Adv/Vol/Dec 1985/100 mln/200 NYSE Adv/Vol/Dec 2495/62 mln/200

09:45 am : The major equity averages are up big this morning. The underlying bid has been broad based, but energy stocks, tech stocks, and financial stocks have attracted the strongest interest. Those sectors are up 2.1%, 1.9%, and 1.8%, respectively.

Utilities and telecom are up 0.4% and 0.5%, respectively, but their modest gains suggest that participants are less interested in the sectors, which are commonly labeled as defensive in nature, given their steady, stable businesses. The lack of growth opportunities in those two sectors often prompt member firms to return capital to shareholders via dividends. DJ30 +146.22 NASDAQ +42.17 SP500 +17.30

09:15 am : S&P futures vs fair value: +15.80. Nasdaq futures vs fair value: +26.20. Taking a cue from Europe's major bourses, which are up big amid news that a court rejected a lawsuit intended to block Germany's participation in European Union bailouts, domestic markets are poised for a decidedly positive open. That would put stocks on track to snap their three-session losing streak, which already has the S&P 500 down more than 4% this month. Although the bid ahead of the open has been broad based, both Bank of America (BAC) and Yahoo! (YHOO) are early leaders. The pair announced management shake-ups that feature newly created co-chief operating officer roles at "B of A" and the removal of Carol Bartz as CEO of Yahoo!. The positive tone this morning has prompted participants to rotate out of safe havens like gold, which was last quoted with a 2.6% loss at $1825 per ounce. Meanwhile, selling among Treasuries has taken the yield on the benchmark 10-year Note back above 2.0%. The dollar is down, too; it currently trails a collection of competing currencies by 0.4%. There hasn't been any economic data to trade yet, but the Fed's Beige Book will be offered up at 2:00 PM ET.

09:00 am : S&P futures vs fair value: +15.90. Nasdaq futures vs fair value: +26.00. After descending deeper into bear market territory yesterday, the EuroStoxx 50 is up 1.7% today. The rebound comes amid an improved tone of trade throughout the region, helped by news that a court rejected a lawsuit intended to block Germany's participation in European Union bailouts. Germany's DAX has advanced 3.0% in its latest showing. BMW, Daimler, and Adidas are top performers there. France's CAC has climbed 2.3%. Of the CAC's 40 components, there isn't a single stock in the red. Renault and EADS are leading the pack with gains of more than 5%. Buying in Britain has fueled the FTSE to a 1.9% gain. Tullow Oil and Lloyds Group (LYG) top the list of leaders. The latest dose of data from the United Kingdom indicated that industrial production slipped 0.2% in July after no change in June.

Overnight action in Asia was broadly positive. That helped Japan's Nikkei put together a 2.0% gain, which makes for a nice rebound from the 2.2% loss that it suffered in the prior session. Nippon Soda, Toho Zinc, and Tokyo Tatemono were the top three performers; each advanced by at least 6%. Kansai Electric was a laggard after it had outperformed in the prior session. In its most recent meeting, Japan's central bank opted to leave its monetary policy plan unchanged. Hong Kong's Hang Seng ascended to a 1.7% gain. China Construction Bank was a primary leader there. Mainland China's Shanghai Composite scored a 1.8% gain. Banks also provided leadership there.

08:35 am : S&P futures vs fair value: +12.60. Nasdaq futures vs fair value: +19.50. The improved tone surrounding stocks has caused morning participants to make a push against precious metals. Their effort has left gold to trade with a 2.1% loss at $1834 per ounce. Silver has slumped 2.3% to $40.91 per ounce. That comes on top of the 1.2% slide that it suffered in the prior session. As for energy components, oil futures prices are up 1.0% to $86.90 per barrel ahead of pit trade. Natural gas prices were last quoted with a 0.3% loss at $3.93 per MMBtu. Overall action in the commodity complex has the CRB Commodity Index up 0.4%.

08:05 am : S&P futures vs fair value: +12.40. Nasdaq futures vs fair value: +19.00. Stock futures are up sharply this morning. The bid marks a continuation of the prior session's intraday climb, which helped the major averages settle at session highs. Strong gains abroad have helped perpetuate a positive tone. Most of Asia's major averages scored strong gains overnight. Japan's Central Bank made no changes to its monetary policy. As for Europe, its major bourses are up sharply amid news that a court in Germany rejected a lawsuit to block the country's participation in European Union bailouts. On the corporate front, Bank of America (BAC) has streamlined its management and operations, establishing co-chief operating officers in the process. Also, Yahoo! (YHOO) has ousted its CEO, Carol Bartz. The economic calendar is relatively light today. It features the latest Fed Beige Book, which contains regional anecdotal data, but is ultimately likely to be just as exciting as it sounds. It is due at 2:00 PM ET.

06:43 am : [BRIEFING.COM] S&P futures vs fair value: +12.50. Nasdaq futures vs fair value: +18.00.

06:43 am : Nikkei...8763.41...+172.80...+2.00%. Hang Seng...20048.00...+337.50...+1.70%.

06:43 am : FTSE...5239.23...+82.40...+1.60%. DAX...5306.70...+112.70...+2.20%.

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

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

Phone: +1.708.572.4885
Business Hours: 8am - 5pm est (Mon - Fri)
Skype Messenger: kebec2002
questions@thestrategylab.com
Go Back To TheStrategyLab.com Homepage