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 performance verification

Price Action Trade Performance for Today: +3.70 points or $370 dollars in the Russell 2000 Emini TF ($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 #TheStrategyLab chat room. You can read today's #TheStrategyLab trading chat room logs for 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 in comparison to what's shown in the above image...all archived @ http://www.thestrategylab.com/ftchat/forum/viewtopic.php?f=106&t=1283.

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).

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 price action trade strategies with support prior to purchasing the Volatility Trading Report (VTR).

Trading Plan Daily Routine @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=163&t=1526

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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 (e.g. Eurozone, MarketWatch.com) 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.





Market Update

4:15 pm : Equity markets were quiet for the duration of today's trading session. The Nasdaq opened slightly positive before a disappointing report from the Dallas Federal Reserve pushed all three indices into negative territory. After marking session lows, stocks could not gain enough traction to sustain a meaningful rally. As a result, the Nasdaq shed 0.4% while the Dow and the S&P 500 declined by less than 0.1% each.

In Europe, major indices finished on their highs as final hour buying pushed both Italy's MIB and Spain's IBEX to 2.8% gains. Italian bond yields eased as the country auctioned off 5- and 10-yr bonds, but finished the day higher with the 10-yr settling near 6.00%. Elsewhere, Germany's DAX advanced 1.3%, while France's CAC and Britain's FTSE both closed up 1.2%.

The European rally failed to extend into the U.S. session.

Low volume was the day's storyline with just over 650 million shares traded on the New York Stock Exchange.

The Dallas Federal Reserve released its monthly manufacturing survey which showed a business activity index of -13.2 when a reading of 2.5 was widely expected. The production index came in at 12 versus 15.5 last month.

Major financials traded in-line with the broader market. Down 2%, JPMorgan Chase (JPM 36.14, -0.75) was the outlier after being downgraded from ‘Buy' to ‘Hold' by Deutsche Bank.

Insurer Loews (L 39.54, -2.16) ended down 5.2% following a disappointing earnings report. Today's decline brought it to a level not seen since last month.

Sprint Nextel (S 4.51, +0.20) continued its advance after earnings exceeded market expectations. The stock finished up 4.6%, and was one of the S&P 500 leaders.

Shaw Group (SHAW 41.49, +14.80) gained 55% after the firm was acquired by Chicago Bridge & Iron Company (CBI 34.94, -5.76). CB&I will pay a total of $3 billion or $46 per share of Shaw. Shares of CB&I were down 14% in the wake of acquisition news. Shaw Group also received a downgrade from UBS after the transaction was announced.

The dollar index advanced almost 0.3%. At 82.90, it tested support levels dating back to early June. The greenback's strength was most apparent against the euro, up more than 0.5% at 1.2255.

Crude oil fell for the first time in five days as the dollar gained strength. The energy component briefly pushed into positive territory to a floor session high of $90.34 per barrel in morning action, but tumbled back down into the red. It touched a session low of $89.33 and settled with a 0.4% loss at $89.80.

Tuesday will bring a full slate of economic data. Personal income and spending will be released at 8:30 AM ET while the S&P Case-Shiller 20-city Index will hit the wires at 9 AM ET. In addition, Chicago PMI will be reported at 9:45 AM ET and consumer confidence at 10 AM ET.DJ30 -2.65 NASDAQ -12.25 SP500 -0.67 NASDAQ Adv/Vol/Dec 884/1.44 bln/1587 NYSE Adv/Vol/Dec 1473/659.1 mln/1560

3:35 pm : Crude oil fell for the first time in five sessions as the dollar gained strength. The energy component briefly pushed into positive territory to a floor session high of $90.34 per barrel in morning action but tumbled back down into the red. It touched a session low of $89.33 per barrel and settled with a 0.4% loss at $89.80 per barrel.

Conversely, natural gas spent its entire pit session climbing higher, brushing a new 6 month high of $3.23 per MMBtu for the September contract. It settled just below that level at $3.21 per MMBtu or 5.9% higher.

Gold came off its pit session low of $1617.60 per ounce and climbed out of negative territory in morning action. It touched a session high of $1626.50 per ounce but lost steam moments later and spent the remainder of floor trade chopping around near the break-even level. The yellow metal ultimately settled 0.1% higher at $1624.20 per ounce. Silver, on the other hand, spent its entire pit session in the black. Although it pulled-back slightly into a consolidative pattern after climbing to a session high of $28.11 per ounce, it managed to book a gain of 1.9% as it closed at $28.02 per ounce.DJ30 -2.12 NASDAQ -11.57 SP500 -0.75 NASDAQ Adv/Vol/Dec 932/1224.1 mln/1535 NYSE Adv/Vol/Dec 1469/441 mln/1553

3:00 pm : Heading into the final hour of trading, stocks are to stay marginally positive. The Nasdaq is down 0.3% while the Dow and the S&P 500 are unchanged.

More than 50 companies will report their quarterly results after the closing bell. Herbalife (HLF 51.99, -1.81) is hoping to rebound on earnings after last quarter's report caused the shares to plunge nearly 34%. After a recovery off the 52-week low, the stock is unchanged in 2012.DJ30 -4.35 NASDAQ -9.80 SP500 -0.37 NASDAQ Adv/Vol/Dec 941/1.09 bln/1508 NYSE Adv/Vol/Dec 1467/388.2 mln/1512

2:30 pm : Markets are maintaining their levels as the three indices trade within a tight range. Overall volume confirms a slow trading day. The Nasdaq remains as the biggest laggard, down 0.5%.

Insurer Loews (L 39.62, -2.08) is 5% lower following a disappointing earnings report. Today's steep decline brings it to a level not seen in one month. Traders are watching 38.25 as a significant support area which has held since December of last year.DJ30 -16.31 NASDAQ -14.26 SP500 -2.29 NASDAQ Adv/Vol/Dec 881/1.01 bln/1577 NYSE Adv/Vol/Dec 1394/359.2 mln/1559

2:00 pm : Mired in a slow session, the three indices are trying to maintain their unchanged levels. The Dow is down 0.1% while the S&P 500 is within three points below its flat line.

Major financials are trading in-line with the broader market. JPMorgan Chase (JPM 36.08, -0.81) is the outlier, currently down 2.2%.DJ30 -16.31 NASDAQ -12.41 SP500 -2.34 NASDAQ Adv/Vol/Dec 901/936.1 mln/1532 NYSE Adv/Vol/Dec 1371/328.4 mln/1571

1:30 pm : With the lack of a catalyst, equities continue to struggle for direction. The major indices are within 0.5% of their respective unchanged marks as the Nasdaq posts the largest decline with a 0.4% loss.

Sprint Nextel (S 4.44, +0.13) continues to advance after earnings exceeded market expectations. Up 3%, the company is one of the S&P 500 leaders on the day.DJ30 -7.19 NASDAQ -11.71 SP500 -1.78 NASDAQ Adv/Vol/Dec 905/872.1 mln/1533 NYSE Adv/Vol/Dec 1415/304.3 mln/1520

1:00 pm : After slipping into the red as a result of a negative Dallas Federal Reserve report, stocks are coming off session lows.

The European close indicated an extension of last week's rally. Major indices have finished on their respective session highs as final hour buying pushed Germany's DAX to a gain of nearly 1.3%, while France's CAC and Britain's FTSE both closed up 1.2%. Elsewhere, Italy's MIB and Spain's IBEX gained 2.8% each.

The Dallas Federal Reserve released its monthly manufacturing survey which showed a business activity index of -13.2 when a reading of 2.5 was widely expected. The production index came in at 12 versus 15.5 last month.

Apple (AAPL 596.34, +11.17) is up 2% as the company begins its patent trial against Samsung.

Shaw Group (SHAW 40.94, +14.25) is up 53% after the firm was acquired by Chicago Bridge & Iron Company (CBI 34.46, -6.24). CB&I will pay a total of $3 billion or $46 per share of Shaw. Shares of CB&I are down 15% in the wake of acquisition news.

The dollar index is rising 0.3%. At 82.90, it is testing support levels dating back to early June. The greenback's strength is most apparent against the euro, up nearly 0.5% at 1.2260.DJ30 -7.00 NASDAQ -13.76 SP500 -2.20 NASDAQ Adv/Vol/Dec 860/810.1 mln/1576 NYSE Adv/Vol/Dec 1383/283.6 mln/1542

12:30 pm : Stocks are trading near their recently established session lows. The Nasdaq paces the decline as technology stocks underperform the broader market.

Down nearly 8%, Alpha Natural Resource (ANR 6.46, -0.55) is the worst performing S&P 500 component. The company disclosed that on July 25, 2012, its subsidiary received an imminent danger order for one area of the Eagle Butte Mine located near Gillette, Wyoming. The company stock is trying to recover from all-time lows set last Thursday.DJ30 -16.65 NASDAQ -14.14 SP500 -3.08 NASDAQ Adv/Vol/Dec 831/735.4 mln/1575 NYSE Adv/Vol/Dec 1312/257.3 mln/1610

12:00 pm : Equities are testing session lows following the European close. Down 0.5%, the Nasdaq leads the decline.

The major European indices have closed on their respective session highs. Final hour buying pushed Germany's DAX to a gain of nearly 1.3%, while France's CAC and Britain's FTSE both closed up 1.2%.

The bullish sentiment did not translate into strength in U.S. equities. The Dallas Federal Reserve released its monthly manufacturing survey which showed a business activity index of -13.2 when a reading of 2.5 was widely expected. The production index came in at 12 versus 15.5 last month.DJ30 -17.26 NASDAQ -11.89 SP500 -2.81 NASDAQ Adv/Vol/Dec 866/655.7 mln/1519 NYSE Adv/Vol/Dec 1292/231.3 mln/1622

11:30 am : Choppy trading continues through the morning session. All three indices are now lower as the Nasdaq is down 0.4%.

Amid the early indecision, the volatility index, or the VIX, is higher by 6.7% to 17.80.

Seagate Technologies (STX 30.20, +0.19) is up 0.6% ahead of its earnings report which is scheduled to be released after the market close. Investors are optimistic about Seagate results after its competitor, Western Digital (WDC 39.94, +0.02), easily exceeded revenue and earnings expectations.DJ30 -6.02 NASDAQ -11.84 SP500 -2.15 NASDAQ Adv/Vol/Dec 871/571.2 mln/1491 NYSE Adv/Vol/Dec 1286/204.6 mln/1570

11:00 am : Markets continue to seek direction with the Nasdaq giving up its early gains. The index is now down 0.1%. After lagging behind early in the session, the Dow has now taken the lead, up 0.1%. The S&P 500 remains unchanged.

European markets are seeking new highs heading into the close. With a 2.6% advance, Italy's MIB continues its recovery off all-time lows marked last week.

Apple (AAPL 594.55, +9.39) is up 1.6% as the company begins its patent trial against Samsung.DJ30 +16.87 NASDAQ -7.05 SP500 -0.23 NASDAQ Adv/Vol/Dec 928/457.3 mln/1374 NYSE Adv/Vol/Dec 1445/171.1 mln/1398

10:35 am : The dollar index is trading higher this morning, but many commodities are trading higher. Natural gas futures and silver are near their session highs.

In Energy, Sept crude oil was basically been trending lower all session and fell as low as $89.41 after dropping about $0.32 to a new session low of $89.46 a short while before that. Crude has since bounced back to erase most of its losses and is now -0.1% to $90.04/barrel.

Sept natural gas, on the other hand, has been trending higher all session and just extends gains to a new session high of $3.19/MMBtu. In current trade, nat gas is +5.2% at $3.17/MMBtu.

In metals, August gold and Sept silver are mixed this morning with silver trading higher and gold trading only modestly higher. Silver just hit a new session high of $28.11 and is now +1.9% at $28.02/oz, while gold is +0.06% at $1623.70/oz. July copper is trading lower this morning, now down 0.2% at $3.42/lb.

In agriculture, in overnight trading, December (and continuous contract) corn futures rose to a new all-time high of $8.17/bushel as drought conditions continue to be an issue. Since June 15, corn is trading 61.1% higher and is up 4% from last week. Wheat and soybeans are also showing nice gains overnight as Sept wheat rose 2.0% overnight and Nov soybeans rose 2.6%. In current trade, corn is +2.6% at $8.14/bu, wheat is +1.8% at $9.14/bu and soybeans are +2.5% at $16.43/bu.DJ30 +40.49 NASDAQ +5.09 SP500 +3.78 NASDAQ Adv/Vol/Dec 1158/331.1 mln/1108 NYSE Adv/Vol/Dec 1655/136 mln/1169

10:00 am : Equities are seeing choppy trade in the early part of the session. The Nasdaq (up 0.3%) is the only index which has remained in positive territory early on. Meanwhile, the Dow and the S&P 500 are hovering around their respective unchanged lines.

Following a $3 billion acquisition of Shaw Group (SHAW 42.55, +15.86), Chicago Bridge & Iron (CBI 35.32, -5.38) is down 13%.DJ30 +12.64 NASDAQ +6.70 SP500 +1.22 NASDAQ Adv/Vol/Dec 1166/178.2 mln/1018 NYSE Adv/Vol/Dec 1510/84.1 mln/1217

09:45 am : U.S. markets remain mixed during the first minutes of trading. The Nasdaq leads the way, up 0.3% while the S&P 500 and the Dow are essentially unchanged.

Crude oil lifted off session lows near $89.40 per barrel and is currently trading around $90.00.

Shares of Best Buy (BBY 18.21, +0.45) are advancing 2.5% higher after reports suggested the firm's founder Richard Schulze is planning to take the company private.DJ30 -8.97 NASDAQ +7.87 SP500 -0.91 NASDAQ Adv/Vol/Dec 1160/127.1 mln/983 NYSE Adv/Vol/Dec 1350/67.5 mln/1331

09:16 am : [BRIEFING.COM] S&P futures vs fair value: -1.80. Nasdaq futures vs fair value: +6.00. Heading into the U.S. open, futures indicate a mixed start. S&P 500 futures are pointing lower while the Nasdaq indicates a modestly higher open.

With no economic data of note being released today, investors will look for direction provided by corporate earnings.

09:00 am : [BRIEFING.COM] S&P futures vs fair value: -2.30. Nasdaq futures vs fair value: +4.00. Global markets extended their bullish tone from late last week. In Asia, the Nikkei closed 0.8% up, while the Hang Seng advanced 1.6% and closed near session highs. Shares listed in Shanghai did not follow through with the regional trend as the composite declined nearly 1%.

Today's bid was a continuation of Friday's surge on Wall Street as equity markets begin pricing in the possibility of central bank action this week as the Fed, European Central Bank, and Bank of England all opine. The weakness in China's Shanghai Composite was apparent with today's selling dropping the index to its lowest close since March 2009. Data in the region was light as Japan's preliminary industrial production slipped 0.1% during the last month (1.6% rise expected).

In Tokyo, Fujifilm and Konica Minolta rose near 6% each after an upside surprise in quarterly earnings.

In Hong Kong, the Hang Seng finished higher as shares with heavy exposure to Europe led the advance. HSBC climbed 1.7% ahead of its earnings while conglomerate Hutchinson Whampoa tacked on 1.3%.

In China, the Shanghai Composite settled -0.9% to close lower for a fourth consecutive session. Metals companies were among the worst performers as Jiangxi Copper plunged 5.7% and aluminum producer Chalco dropped 1.3%.

European markets are continuing the Asian optimism. British data disappointed as net lending to individuals rose a less than expected GBP0.3 billion (GBP0.8 billion expected) while CBI Realized Sales tumbled to 11 (17 expected, 42 previous). Despite the negative data, London's FTSE is trading near session highs after opening up in excess of 0.5%. Germany's DAX is 0.75% higher while France's CAC is advancing more than 0.4%.

In Germany, financials and car makers are the biggest beneficiaries of the market rally. Deutsche Bank is holding a 3.3% gain as Volkswagen is up 2.5%.

France's market is also being lifted by financials and automakers. Credit Agricole and Peugeot are among notable outperformers.

08:29 am : [BRIEFING.COM] S&P futures vs fair value: -3.40. Nasdaq futures vs fair value: +1.70. As U.S. futures point to a mixed open, the dollar index continues to push higher. At 83.05, the index is testing support levels dating back to early June.

The dollar is gaining most of its strength against the euro, up nearly 0.8% at 1.2230.

Elsewhere, buying lifted the Australian dollar to 1.0500, a level not seen since March.

08:00 am : [BRIEFING.COM] S&P futures vs fair value: -2.20. Nasdaq futures vs fair value: +0.70. Global markets continued higher in the early part of today's session on hopes of more central bank stimulus. Italy's MIB and Spain's IBEX are the biggest beneficiaries of the ongoing rally, as the two sovereigns would benefit most from further easing undertaken by European authorities. The two indices are advancing by 2.1% and 1.8% respectively.

Italian yields eased as the country auctioned off 5- and 10-yr bonds. The debt cleared the market at 5.29% and 5.96% respectively.

Earlier this morning, Spanish authorities reported a 0.4% GDP contraction observed during the last quarter. The report was in-line with expectations, but higher than the 0.3% contraction observed in the previous quarter.

The dollar index has firmed up slightly ahead of the U.S. open, with the biggest gains (over 0.5%) seen against the euro.

Agricultural futures are posting considerable advances in early trade as drought conditions persist in the Midwest. Corn is up nearly 3%, while soybeans and wheat are rising by 2.5% and 2% respectively. Shaw Group (SHAW) is up 70% in pre-market trading as the firm was acquired by Chicago Bridge & Iron Company (CBI). CB&I will pay $46 per share of Shaw.

Following today's closing bell, technology firms Cirrus Logic (CRUS) and Seagate Technology (STX) will report their quarterly earnings. The reports bear watching as other firms in the sector have returned mixed results so far.

The week will bring a full batch of economic data. Most notably, the Federal Open Market Committee will hold a policy meeting followed by a Wednesday interest rate decision.

In addition, Friday will provide some insight into the employment picture with nonfarm payrolls and the unemployment rate scheduled to be released.

06:45 am : [BRIEFING.COM] S&P futures vs fair value: -2.50. Nasdaq futures vs fair value: -1.00.

06:45 am : Nikkei...8635.44...+68.80...+0.80%. Hang Seng...19585.40...+310.40...+1.60%.

06:45 am : FTSE...5658.28...+31.10...+0.60%. DAX...6740.88...+51.50...+0.80%.

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)
@ http://twitter.com/wrbtrader and http://stocktwits.com/wrbtrader

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