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: +31.10 points or $3190 dollars in the Russell 2000 Emini TF ($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=96&t=1049.

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=119&t=718.

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=145&t=1269

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Market Summaries

The below summaries by Bloomberg, CNNMoney and Yahoo! Finance helps me to do a quick review of the fundamentals, FED/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 as Italy's Berlusconi Offers to Resign

Nov. 8 (Bloomberg) -- Bloomberg's Deborah Kostroun reports on the performance of the U.S. equity market today. Stocks rose, sending the Standard & Poor's 500 Index higher a second day, as Prime Minister Silvio Berlusconi's offer to resign boosted optimism Italy will appoint a new leader who can tame the debt crisis.





Market Update

4:30 pm : Stocks overcame morning selling pressure to stage a steady advance that continued into the close, giving stocks substantial gains. The move was broad based, but for the most part financials led the way.

Market participants bid stocks higher in the opening minutes of trade, but sentiment soured before long. Subsequent selling pressure came as traders shrugged off impressive gains by Europe's major bourses because of questions about how easily eurozone members can establish a unified political front capable of completing and implementing bailout plans.

A lack of follow through selling pressure enabled stocks to stabilize and even slowly work their way back to the flat line, but they bounded once it was reported that the prime minister of Italy will resign after the country's budget plans are passed into law. Concerns about the inability of the Italian government to shore up the country's precarious fiscal and financial conditions have driven the country's debt yields to record heights. There is currently no definitive reading on who will step in as prime minister of Italy, but Greece is expected to name Lucas Papademos to the position of prime minister.

The euro also bounced in response to the headlines about a new political makeup in Italy. At session's end the euro was up 0.6% to $1.384.

All 10 major sectors managed to score gains, but financials staged the strongest moves, scoring a collective a gain of nearly 2%. The financial sector's bounce actually marked a resumption of early leadership efforts. In the early going the sector was up well in excess of 1% before surrendering almost all of that gain amid broad market weakness.

Small-cap stocks and mid-cap stocks staged some sharp reversals of their own. Both the Russell 2000 and the S&P 400 were down in excess of 1% at their session lows, but settled with gains of about 1% or better.

The improved tone to afternoon trade helped push down the Volatility Index for the fifth day in a row. The VIX is still above its 10-day low, though.

Advancing Sectors: Financials +1.9%, Energy +1.4%, Tech +1.2%, Consumer Discretionary +1.1%, Materials +1.1%, Consumer Staples +1.0%, Industrials +1.0%, Health Care +0.9%, Utilities +0.5%, Telecom +0.3%
Declining Sectors: (None)DJ30 +101.79 NASDAQ +32.24 NQ100 +1.2% R2K +1.4% SP400 +1.0% SP500 +14.80 NASDAQ Adv/Vol/Dec 1844/1.85 bln/717 NYSE Adv/Vol/Dec 2231/879 mln/769

3:30 pm : It was, once again, a session focused mostly on the events taking place in the Eurozone. Precious metals rallied in mid-morning trade to their respective highs at $1804.40 and $35.35. Both metals finished just shy of those levels. Gold futures ended higher by 0.4% at $1799.20 per ounce, while silver finished up 0.9% at $35.15 per ounce. In afterhours trade both metals have sold off into negative territory following headlines that Italian Prime Minister Silvio Berlusconi will resign after the approval of the new budget law. A little clarity as to what will happen in Italy, moving forward, is taking some of the risk premium out of the markets.

Crude oil, which settled higher by 1.3% at $96.80 per barrel, rallied in the final hour of trade following the Berlusconi resignation news. Futures ended just shy of highs at $98.89. Worth pointing out is that crude oil futures did shake off the IAEA report, which indicated that Iran carried out work relevant for developing nuclear arm. Natural gas rallied heading into the close to finish up 1.4% at $3.75 per MMBtu.DJ30 +90.7 NASDAQ +29.43 SP500 +9.9 NASDAQ Adv/Vol/Dec 1751/1.5 bln/779 NYSE Adv/Vol/Dec 2140/619.7 mln/902

3:00 pm : After taking pause, stocks have resumed their afternoon ascent. The latest leg of gains has put the major equity averages at fresh session highs.

With stocks looking stronger, Treasuries have turned lower. Earlier today the yield on the benchmark 10-year Note had been near 2.00%, but its recent downturn has taken its yield several basis points higher. DJ30 +73.75 NASDAQ +23.67 SP500 +10.00 NASDAQ Adv/Vol/Dec 1605/1.30 bln/905 NYSE Adv/Vol/Dec 2035/525 mln/930

2:30 pm : Stocks have paused near session highs to take a bit of a breather. Overall gains are solid, but not exactly robust.

Financials have reclaimed most of their gains and, as such, now trade 1.3% above where they ended the prior session. Although it is still shy of its session high, the financial sector is in the best shape of any group.

Utilities and telecom plays continue to trail. Their struggle to attract buyers has left telecom stocks stuck in negative territory with a 0.1% loss. Meanwhile, utilities are barely positive. DJ30 +57.12 NASDAQ +20.34 SP500 +9.00 NASDAQ Adv/Vol/Dec 1490/1.17 bln/990 NYSE Adv/Vol/Dec 1870/470 mln/1070

2:00 pm : Stocks have spiked higher in recent trade, but the broad market isn't quite back to its session high. Meanwhile, the euro has extended its advance, giving it a 0.5% gain against the dollar for the day.

The action coincides with headlines that suggest Italy Prime Minister Berlusconi will resign from his post once the country's budget plans are passed into law. Berlusconi's role in the post of prime minister became increasingly dubious during the weekend. DJ30 +51.42 NASDAQ +18.64 SP500 +7.99 NASDAQ Adv/Vol/Dec 1235/1.05 bln/1240 NYSE Adv/Vol/Dec 1505/420 mln/1430

1:30 pm : Stocks continue to struggle to push off of the flat line. Meanwhile, Treasuries have ticked slightly higher in recent trade.

Results from an auction of 3-year Notes were released at 1:00 PM ET. The auction drew a yield of 0.379% and produced a bid-to-cover of 3.41. The indirect bid took 38.7% of the offering, while direct bidders bought 19.9% of it. It was highest takedown by direct buyers since January 2010. DJ30 -16.54 NASDAQ +3.92 SP500 +0.96 NASDAQ Adv/Vol/Dec 1125/950 mln/1330 NYSE Adv/Vol/Dec 1310/380 mln/1605

1:00 pm : Stocks staged a solid advance at the start of the session, but subsequent selling pressure undercut the major averages, leaving them to trade with moderate losses. Recent efforts to grind higher have the broad market flat for the day.

Sentiment seemed to improve this morning market participants responded to the strong buying interest displayed in Europe. Many anticipate that Greece will soon announce a newly appointed prime minister, while some doubt has been cast on the future of Italy's current prime minister, who may face a confidence vote after he lost majority support in a budget vote today. Concern about the precarious fiscal and financial conditions of Italy have driven the country's debt yields to dizzying heights. Just this morning the yield on Italy's 10-year Bond hit 6.75%.

Lingering questions, and even skepticism, regarding the swiftness with which eurozone countries can establish a unified political front capable of progressing toward the completion and implementation of bailout plans likely played a part in the stock market's morning reversal, which took all three major equity averages into the red.

Broad market pressure even undermined leadership from the financial sector, which had been up well in excess of 1% before its gain was slashed. The sector has only recouped a portion of its gains; it is up just 0.3%.

Despite the absence of any legitimate leader or obvious positive catalyst, stocks have managed to make their way higher. However, momentum has slowed now that the broad market is back near the neutral line. DJ30 -24.56 NASDAQ +1.15 SP500 -0.27 NASDAQ Adv/Vol/Dec 1120/900 mln/1330 NYSE Adv/Vol/Dec 1290/350 mln/1615

12:30 pm : The Dow is trailing the Nasdaq and the S&P 500, both of which are back at the flat line. The Dow's relative weakness comes as many of its components struggle to fight off sellers. Of its 30 members, less than one-third of them are actually trading with gains. Walt Disney (DIS 34.52, -0.63) and Hewlett-Packard (HPQ 27.60, -0.28) are currently two of the heaviest drags on the price-weighted average.DJ30 -29.33 NASDAQ -0.60 SP500 -0.63 NASDAQ Adv/Vol/Dec 1050/820 mln/1385 NYSE Adv/Vol/Dec 1200/325 mln/1700

12:00 pm : Stocks are slowly working their way up from session lows. The gradual pace has kept the Dow, Nasdaq, and S&P 500 in negative territory.

That said, the major equity averages are faring far better than the the small-cap and mid-cap averages, which are having an even more difficult time trimming losses. Persistent pressure against the two smaller equity classes has both the S&P 400 Mid-Cap and the Russell 2000 down 1.0%. DJ30 -50.71 NASDAQ -4.08 SP500 -2.79 NASDAQ Adv/Vol/Dec 905/725 mln/1490 NYSE Adv/Vol/Dec 975/285 mln/1900

11:30 am : Stocks have descended to new session lows, but overall losses among the major averages remain moderate. However, all 10 major sectors have been imbued by recent weakness. In turn, there isn't a single sector in positive territory, although tech and financials are only down fractionally.

Amid the market's weakness Treasuries are ticking higher, albeit at a gradual pace. The benchmark 10-year Note is not even up 10 ticks yet. In turn, its yield is still just above 2.00%. Results from an auction of 3-year Notes are due at 1:00 PM ET. DJ30 -48.40 NASDAQ -7.13 SP500 -3.76 NASDAQ Adv/Vol/Dec 1220/600 mln/1100 NYSE Adv/Vol/Dec 1335/235 mln/1505

11:00 am : Stocks have spent the past hour trending lower in choppy fashion. There hasn't been any specific headline or catalyst to account for the shift in sentiment.

Financials continue to offer support to the broad market, but the sector's gains have been more than halved, leaving it to trade with a 0.6% gain. Still, that's better than what any other sector is doing.

Defensive-oriented stocks continue to underperform the rest of the market, even as trade weakens. Pressure against telecom has the sector down 0.5%, while weakness among utilities has the sector down 0.4%. DJ30 -9.16 NASDAQ +4.40 SP500 +0.88 NASDAQ Adv/Vol/Dec 1300/495 mln/1000 NYSE Adv/Vol/Dec 1445/195 mln/1360

10:35 am : Weakness in the dollar index this morning is helping provide some strength in the commodity complex this morning. Overall each sector is mixed (e.g. energy, metals, agriculture).

Crude oil futures have been in positive territory all morning and ran as high as $96.87/barrel earlier this morning. Since then (~9:15am EST), the energy component has been on a downtrend and has been heading back near the unchanged line, but is now at $96.06/barrel, up 0.6%. Natural gas has been in the red for the majority of the morning and is now down 0.6% at $3.78/MMBtu.

Gold has been chopping around the flat line this morning and is currently up 0.04% at $1791.80 oz. Silver gained some steam about 30 minutes ago and rallied to a new session high of $35.12/oz on broad market strength. Silver is now back in the red and is currently down 0.2% at $34.77/oz. Platinum futures are currently up 0.4% at $1664.80/oz.

Overnight, corn futures rose 2 cents to $6.55/bushel, but when pit trading opened a few minutes ago, the grain slightly extended gains and is now up 0.8% at $6.59/busehl.DJ30 -18.70 NASDAQ +5.47 SP500 +0.14 NASDAQ Adv/Vol/Dec 1242/449 mln/1045 NYSE Adv/Vol/Dec 1378/178 mln/1413

10:00 am : Stocks started to waver after trading higher in the first few minutes of trade, but they have since resumed an upward trend. That has made for strong broad-market gains.

Financials continue to provide leadership. The sector has extended its early run to a 1.4% gain, which puts it well ahead of the other sectors. Financials are currently being fueled by strength in diversified banks and financial services stocks. In particular, Bank of America (BAC 6.59, +0.14), Citigroup (C 31.28, +0.73), and JPMorgan Chase (JPM 34.95, +0.71) are all sporting gains of about 2% or more. DJ30 +58.80 NASDAQ +26.69 SP500 +9.17 NASDAQ Adv/Vol/Dec 1530/131 mln/540 NYSE Adv/Vol/Dec 1815/63 mln/810

09:45 am : Stocks are up nicely this morning. The move comes amid broad-based buying interest, which has eight of the 10 major sectors in positive territory.

Defensive-oriented utilities (-0.4%) and telecom (-0.1%) are the only two sectors not participating in the market's bounce this morning. Financials are out in front of the others, sporting a 0.9% gain. DJ30 +49.27 NASDAQ +21.80 SP500 +6.80 NASDAQ Adv/Vol/Dec NA/NA/NA NYSE Adv/Vol/Dec NA/NA/NA

09:15 am : S&P futures vs fair value: +8.40. Nasdaq futures vs fair value: +21.70. An improved tone of trade in Europe has helped bolster buying interest at home. In turn, stock futures suggest that the major equity averages will open with solid gains, which will help stocks extend their climb into the prior session's close. With sentiment in Europe strengthened, the euro has also garnered support. It was last quoted with a 0.4% gain at $1.381. The dollar is also down against the sterling pound and yen, for that matter. Given that corporate news has been inconsequential and no economic releases are scheduled for today, Europe remains the primary point of focus for market participants. Among the more interesting items are the expected selection of a new prime minister in Greece and the uncertain future of Italy's current prime minister.

09:05 am : S&P futures vs fair value: +7.10. Nasdaq futures vs fair value: +19.70. Amid an improved tone of trade oil prices have opened pit trade with impressive gains. The energy component currently sports a 1.0% gain at $96.45 per barrel. As for natural gas, prices are up only fractionally at $3.81 per MMBtu. Precious metals are essentialy unchanged this morning, keeping gold prices near $1791.50 per ounce and silver prices near $34.84 per ounce. Overall action in the commodity complex has the CRB Commodity Index up 0.4%.

08:35 am : S&P futures vs fair value: +7.10. Nasdaq futures vs fair value: +20.20. Sentiment in Europe has improved markedly since the prior session, giving the region's major bourses big gains in the latest round of trade. Among those that are more closely monitored, Germany's DAX is up 2.2%. Deutsche Post is the only name in the 30-member bourse that hasn't found positive ground. In France, the CAC ihas climbed 2.2%. Societe Generale is a top performer there following its latest quarterly report, which featured a steep writedown of its Greek sovereign debt. As for Britain's FTSE, it is up 1.8%. Lloyds Group -- ADR (LYG 1.82, +0.00) -- isn't yet trading on domestic exchanges, but it is a leader across the Atlantic, even though the firm's latest earnings were down precipitously. The latest data out of the United Kingdom featured a flat industrial production reading for September after a 0.3% increase in August.

Overnight trade in Asia ended with mixed results. Japan's Nikkei logged a loss of 1.3%. Olympus shares dove in a dramatic extension of their loss in the prior session. The stock is now at a new multi-year low on the Nikkei. Hong Kong's Hang Seng finished flat in its latest round of trade. Property plays were weak there. However, power producers were strong performers -- Huaneng Power and Datang International Power both surged following positive analyst commentary on the industry. Mainland China's Shanghai Composite closed with a 0.2% loss.

08:05 am : S&P futures vs fair value: +8.70. Nasdaq futures vs fair value: +23.20. Consistent with the action of the past several weeks, stock futures are tracking trade in Europe, where the region's major bourses are up sharply amid speculation that Italy's prime minister may be unable to maintain his post, given his challenges in implementing measures necessary to improve the country's precarious fiscal and financial conditions. Concerns about those conditions continue to take yields on Italian debt to new heights -- the yield on its 10-year Note recently hit 6.75% before pulling back some. As for Greece, the country is expected to announce a new prime minister sometime today. Former Prime Minister Papandreou stepped down from his post this past weekend. On the corporate front, droves of earnings results continue to come across news wires, but there haven't been any blue chips or bellwethers in the bunch. That has generally made the lot of secondary concern. No economic items of consequence are scheduled for today. Results from an auction of 3-year Notes will be released at 1:00 PM ET.

06:52 am : [BRIEFING.COM] S&P futures vs fair value: +6.00. Nasdaq futures vs fair value: +16.50.

06:52 am : Nikkei...8655.51...-111.60...-1.30%. Hang Seng...19678.47...+0.60...0.00.

06:52 am : FTSE...5573.40...+62.60...+1.10%. DAX...6023.94...+95.30...+1.60%.

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
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