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: Emini TF ($TF_F) futures @ $1360.00 dollars or +13.60 points, EuroFX 6E futures @ $0.00 dollars or +0.0000 ticks and Light Crude Oil CL (WTI) futures @ $0.00 dollars or +0.00 points. Total Profit @ $1360.00 dollars.

Russell 2000 Emini TF Futures: 1 tick or 0.10 = $10.00 dollars and there's more contract information @ The ICE
Light Crude Oil CL (WTI) Futures: 1 tick or 0.01 = $10.00 dollars and there's more contract information @ CMEGroup
CME EuroFX 6E Futures: 1 tick or 0.0001 = $12.50 dollars and there's more contract information @ CMEGroup
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=111&t=1399

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.

Price Action Analysis via WRB Analysis Tutorials @ http://www.thestrategylab.com/WRBAnalysisTutorials.htm and there's a free study guide of the WRB Analysis Tutorial Chapters 1, 2 and 3 @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=119&t=718

Trade Signal Strategies via Volatility Trading Report (VTR) @ http://www.thestrategylab.com/VolatilityTrading.htm and there's a free trade signal strategy @ http://www.thestrategylab.com/tsl/forum/viewforum.php?f=89 so that you can freely test drive one of our price action trade strategies with support prior to purchasing the Volatility Trading Report (VTR).

Trading Plan Daily Routine @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=197&t=1686

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Market Summaries

The below summaries by Bloomberg, CNNMoney, Reuters 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 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 while using WRB Analysis from one trade to the next trade to give me the market context 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.

Stocks Bounce Back


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

NEW YORK (CNNMoney)
U.S. stocks pared sharp losses Thursday as lawmakers scrambled to come up with a solution to the fast-approaching fiscal crisis.

After being down more than 1% earlier in the day, all three major indexes briefly moved into positive territory before edging lower toward the close. The Dow Jones industrial average, the S&P 500 and the Nasdaq all ended down 0.1%.

The late-day bounce came after lawmakers in the House announced plans to meet Sunday to discuss the fiscal cliff. "That's being perceived as a positive by the market," said Quincy Krosby, market strategist with Prudential Financial.

Congress and the White House have less than a week to resolve an impasse over tax hikes and spending cuts set to kick in automatically on Jan. 1. The White House denied reports that President Obama would send a scaled-back fiscal cliff plan to the Senate later Thursday.

Investors are holding out hope that a stop-gap solution will be put in place to prevent a full-blown crisis. But concerns about the fiscal cliff have already taken a toll on American consumers, the main engine of the U.S. economy.

The closely watched Consumer Confidence Index, which measures the American public's sentiment every month, was driven sharply lower in November by fears that the economy may tumble over the fiscal cliff. It also marked the largest decline since Standard & Poor's cut the nation's top tier credit rating last year.

Stocks have sold off for four straight sessions as hopes for a substantial budget agreement have diminished. While a scaled back deal would be better than nothing, investors are not taking any chances until they have more clarity. All three indexes are on track to end December in the red.

"Everyone in our industry is sitting on the sidelines waiting to see what happens in Washington," said Ben Schwartz, chief market strategist at Lightspeed Financial in Chicago.

* Fear & Greed Index

Treasury Secretary Tim Geithner sent a letter to Congress late Wednesday warning that government borrowing will hit the debt ceiling on Monday. As a result, the Treasury Department will soon start using what it calls "extraordinary measures" to prevent government borrowing from exceeding the legal limit.

In other economic news, new home sales rose 4.4% in November, as a rebound in the housing market continues. Initial jobless claims came in at 350,000 for the week ended Dec. 22, falling 12,000 from the previous week.

Amazon (AMZN, Fortune 500) shares slid after the company was blamed for a one-day Netflix Inc (NFLX) service disruption. Marvell Technology Group (MRVL)roup shares tumbled, after a jury ruled against the chip maker in a $1.17 billion patent infringement case.

Shares of Smith & Wesson (SWHC) rose after the gun company announced plans to buy back $15 million of its own stock. Smith & Wesson previously announced a $20 million buyback that it said it has already completed.

* Investors yank $150 billion out

European markets ended modestly higher in the first trading session after the Christmas holiday. Asian markets ended mixed, with Japan's Nikkei posting the strongest gains. The index has risen nearly 10% in the past month on expectations of further monetary policy easing and new government measures to stimulate the economy.

The U.S. dollar rose against the euro, British pound and the Japanese yen. The yield on the 10-year Treasury note slid to 1.7%. Oil prices were modestly lower, while gold nudged higher.



Market Update

4:15 pm : The S&P 500 ended the day with minor losses following a volatile session. Equities began the day on a positive note, but comments from Senate Majority Leader Harry Reid caused a quick change in sentiment. Speaking from the Senate floor, Senator Reid said that all signs suggest the country will go over the fiscal cliff. In addition, the senator said the House of Representatives is being run as a "dictatorship" by Speaker Boehner. The comments caused the major averages to fall to their respective lows. However, an afternoon report out of Washington indicated the House of Representatives will reconvene on Sunday, December 30 at 18:30 ET in hopes of approving a budget. In response, the major averages raced off their lows, ending the day little changed after seeing losses of more than 1.0%.

Financial stocks showed the most intraday sensitivity to the headlines, and the sector led the late-morning decline. However, the late-afternoon rally helped the sector recover the bulk of its losses. Among the majors, Bank of America (BAC 11.47, -0.07) shed 0.6% and JPMorgan Chase (JPM 43.63, -0.33) fell 0.8%.

The SPDR Materials Select Sector ETF (XLB 37.29, -0.13) lost 0.4%. Provider of construction materials Headwaters (HW 8.18, -0.31) slipped 3.7% despite being upgraded at Avondale to ‘Market Perform' with a $10 price target.

Elsewhere, steelmakers underperformed. Mechel Steel (MTL 6.72, -0.04) settled lower by 0.6% and United States Steel (X 23.64, -0.62) slid 2.6%. Also of note, AK Steel (AKS 4.38, -0.22) lost 4.8%, and was a notable laggard.

Gold miners saw strength after this morning's developments painted a bullish picture for the yellow metal. Newmont Mining (NEM 45.47, +0.39) and Royal Gold (RGLD 80.10, +1.58) settled higher by 0.9% and 2.0% respectively.

The Dow Jones Transportation Average shed 0.4% and 17 of 20 components declined. Shipping stocks outperformed and Matson (MATX 24.66, +0.07) added 0.3% after signing an agreement to acquire the assets of Reef Shipping in the South Pacific. Meanwhile, peer Kirby (KEX 61.10, +0.20) settled higher by 0.3%.

On the downside, airlines extended their recent weakness. JetBlue Airways (JBLU 5.68, -0.05) and Alaska Air (ALK 43.26, -0.22) declined for a fourth consecutive session and lost 0.9% and 0.5%, respectively.

European markets ended on a mixed note. Germany's DAX added 0.3%, France's CAC settled higher by 0.6%, and the United Kingdom's FTSE finished unchanged.

The United Kingdom's FTSE ended flat, and most stocks saw little change. However, miners outperformed after the Chinese government revealed plans to boost infrastructure spending. Anglo American rose by 2.1% and Eurasian Natural Resources gained 3.7%.

In Germany, financials and carmakers outperformed. Commerzbank gained 1.2% and Deutsche Bank added 0.6%. Among carmakers, BMW advanced 0.8% and Volkswagen finished higher by 0.4%. The two saw strength after Germany's Finance Minister Wolfgang Schaeuble said the country's economy will expand at a "decent" rate next year with exports as the main growth driver.

France's CAC was supported by industrials. Schneider Electric gained 2.3% and Vinci tacked on 1.6%. On the downside, STMicroelectronics lost 1.1%.

Today's economic news was mixed. The latest weekly initial jobless claims count totaled 350,000, which was better than the 375,000 that had been expected by the Briefing.com consensus. The tally was below the revised prior week count of 362,000. As for continuing claims, they fell to 3.206 million from 3.238 million.

The December consumer confidence came in at 65.1, while economists polled by Briefing.com expected a reading of 70.0. This follows the prior month's revised reading of 71.5.

Separately, new home sales in November hit an annualized rate of 377,000, which was up from October's revised rate of 361,000, and worse than the rate of 379,000 that had been broadly expected by the Briefing.com consensus.

Tomorrow, the December Chicago PMI will be reported at 9:45 ET and November pending home sales will be released at 10:00 ET.DJ30 -18.28 NASDAQ -4.25 SP500 -1.74 NASDAQ Adv/Vol/Dec 1066/1.31 bln/1401 NYSE Adv/Vol/Dec 1367/566.7 mln/1682

3:30 pm : Crude oil fell into negative territory and to a pit session low of $90.05 per barrel on lack of progress over fiscal cliff negotiations. The energy component spent afternoon action inching higher but was unable to erase all losses and settled 0.2% lower at $90.86 per barrel.

Natural gas lifted off its session low of $3.36 per MMBtu and climbed towards the unchanged line during morning floor trade. Despite touching a session high of $3.43 per MBMtu, it closed 0.3% lower at $3.41 per MMBtu.

Gold and silver rallied to their respective session highs of $1666.10 per ounce and $30.53 per ounce following remarks by Senator Reid where he said that all signs suggest the country will go over the fiscal cliff.

However, momentum stalled moments later and both metals slightly eased-off the session highs. Despite the dollar index climbing back into positive territory, gold settled 0.2% higher at $1663.80 per ounce while silver booked a 0.7% gain as it closed at $30.24 per ounce.DJ30 -14.75 NASDAQ -3.22 SP500 -1.47 NASDAQ Adv/Vol/Dec 992/1123.90/1473 NYSE Adv/Vol/Dec 1261/398 mln/1765

3:00 pm : The major averages have lifted off their respective lows after reports out of Washington indicated the House of Representatives will reconvene on Sunday at 18:30 ET. The S&P 500 is off by 0.5%.

The volatility index, or VIX, is adding 3.8%, and it now trades at 20.13. Today marked the first time in over five months that the VIX has crossed above 20.00. Since last Thursday, the VIX has added over 19.0% as investors continue to seek downside protection with the fiscal cliff fast approaching.DJ30 -60.34 NASDAQ -15.65 SP500 -7.12 NASDAQ Adv/Vol/Dec 772/991.1 mln/1700 NYSE Adv/Vol/Dec 937/348.6 mln/2069

2:30 pm : The major averages continue to hover near their respective lows, and the S&P 500 is down 1.1%.

The SPDR Energy Select Sector ETF (XLE 70.29, -0.92) is shedding 1.2%. Energy stocks are among the weakest performers despite the relative strength in crude oil, which is seeing little change. Major sector components Exxon Mobil (XOM 85.95, -1.12) and Chevron (CVX 107.40, -1.07) are both down near 1.0%.

Elsewhere, coal stocks are seeing notable pressure. Arch Coal (ACI 7.05, -0.35) is down 4.7% and Alpha Natural Resources (ANR 9.22, -0.31) is sliding 3.3%.DJ30 -137.61 NASDAQ -33.14 SP500 -15.49 NASDAQ Adv/Vol/Dec 614/895.1 mln/1848 NYSE Adv/Vol/Dec 679/311.8 mln/2327

2:00 pm : Equities are holding their levels and the S&P 500 is down 1.1%.

The SPDR Materials Select Sector ETF (XLB 36.91, -0.51) is lower by 1.4% and most sector components are registering losses. Provider of construction materials Headwaters (HW 8.15, -0.34) is down 4.0% despite being upgraded at Avondale to ‘Market Perform' with a $10 price target.

Elsewhere, steelmakers are broadly lower. Cliffs Natural Resources (CLF 35.60, -0.45) is slipping 1.2% and United States Steel (X 23.43, -0.83) is sliding 3.4%. Also of note, AK Steel (AKS 4.31, -0.29) is underperforming its peers, down 6.3%.

Lastly, gold miners are outperforming after this morning's developments painted a bullish picture for the yellow metal. Newmont Mining (NEM 45.55, +0.47) and Royal Gold (RGLD 80.55, +2.02) are higher by 1.0% and 2.6% respectively.DJ30 -133.10 NASDAQ -32.23 SP500 -15.15 NASDAQ Adv/Vol/Dec 621/821.1 mln/1817 NYSE Adv/Vol/Dec 705/285.7 mln/2289

1:30 pm : The S&P 500 is down 1.1% as it continues to trade near its session low.

The Dow Jones Transportation Average is shedding 0.9% as 18 of 20 components trade lower. Shipping stocks are outperforming and Matson (MATX 24.65, +0.06) is adding 0.2% after signing an agreement to acquire assets of Reef Shipping in the South Pacific. Meanwhile, peer Kirby (KEX 61.07, +0.17) is higher by 0.3%.

On the downside, airlines are extending their recent weakness. JetBlue Airways (JBLU 5.64, -0.08) and Alaska Air (ALK 43.18, -0.30) are declining for the fourth consecutive session as they trade with respective losses of 1.5% and 0.7%DJ30 -132.01 NASDAQ -30.46 SP500 -15.03 NASDAQ Adv/Vol/Dec 628/756.2 mln/1802 NYSE Adv/Vol/Dec 735/261.6 mln/2247

1:00 pm : Equities saw gains at the outset of the session, but were met with a quick turn in sentiment after Senate Majority Leader Reid spoke from the Senate floor. During his remarks, Senator Reid said that all signs suggest the country will go over the fiscal cliff. In addition, the senator said the House of Representatives is being run as a "dictatorship" by Speaker Boehner. Also of note, Mr. Reid had scheduled a press conference for 13:00 ET, but the event has since been cancelled. At midday, the S&P 500 is down 1.1%.

Major financials were among the top performers early, but Speaker Reid's comments sent banks to fresh lows. Bank of America (BAC 11.29, -0.25) was up over 1.0% in early trade, but it now trades lower by 2.2%. Elsewhere, Citigroup (C 38.79, -0.76) and JPMorgan Chase (JPM 43.10, -0.86) are both down near 2.0%.

Consumer stocks were among the biggest laggards yesterday after MasterCard SpendingPulse reported disappointing growth in holiday sales. Today, the discretionary space trades in-line with the broader market. Several apparel producers and multi-line retailers are seeing an extension of yesterday's weakness. Macy's (M 36.46, -0.67) and J.C. Penney (JCP 19.31, -1.44) are down 1.9% and 6.9%, respectively.

On the upside, footwear designer Deckers Outdoor (DECK 37.70, +2.82) is surging 8.1% despite the lack of news to account for the move.

European markets ended on a mixed note. Germany's DAX added 0.3%, France's CAC settled higher by 0.6%, and the United Kingdom's FTSE finished unchanged.

The United Kingdom's FTSE ended flat, and most stocks saw little change. However, miners outperformed after the Chinese government revealed plans to boost infrastructure spending. Anglo American rose by 2.1% and Eurasian Natural Resources gained 3.7%.

In Germany, financials and carmakers outperformed. Commerzbank gained 1.2% and Deutsche Bank added 0.6%. Among carmakers, BMW advanced 0.8% and Volkswagen finished higher by 0.4%. The two saw strength after Germany's Finance Minister Wolfgang Schaeuble said the country's economy will expand at a "decent" rate next year with exports as the main growth driver.

France's CAC was supported by industrials. Schneider Electric gained 2.3% and Vinci tacked on 1.6%. On the downside, STMicroelectronics lost 1.1%.

Today's economic news was mixed. The latest weekly initial jobless claims count totaled 350,000, which was better than the 375,000 that had been expected by the Briefing.com consensus. The tally was below the revised prior week count of 362,000. As for continuing claims, they fell to 3.206 million from 3.238 million.

The December consumer confidence came in at 65.1, while economists polled by Briefing.com expected a reading of 70.0. This follows the prior month's revised reading of 71.5.

Separately, new home sales in November hit an annualized rate of 377,000, which was up from October's revised rate of 361,000, and worse than the rate of 379,000 that had been broadly expected by the Briefing.com consensus.DJ30 -125.11 NASDAQ -34.44 SP500 -15.03 NASDAQ Adv/Vol/Dec 570/684.2 mln/1853 NYSE Adv/Vol/Dec 658/237.1 mln/2313

12:30 pm : The S&P 500 has slid to fresh lows after reports out of Washington indicated Senator Harry Reid has called off his press conference originally scheduled for 13:00 ET. The benchmark index is now down 1.0%.

European markets have closed for the day, and the major averages ended on a mixed note. Germany's DAX added 0.3%, France's CAC settled higher by 0.6%, and the United Kingdom's FTSE finished unchanged.

In Germany, financials and carmakers outperformed. Commerzbank gained 1.2% and Deutsche Bank added 0.6%. Among carmakers, BMW advanced 0.8% and Volkswagen finished higher by 0.4%. The two saw strength after Germany's Finance Minister Wolfgang Schaeuble said the country's economy will expand at a "decent" rate next year with exports as the main growth driver.

France's CAC was supported by industrials. Schneider Electric gained 2.3% and Vinci tacked on 1.6%. On the downside, STMicroelectronics lost 1.1%.

The United Kingdom's FTSE ended flat and most stocks saw little change. However, miners outperformed after the Chinese government revealed plans to boost infrastructure spending. Anglo American rose by 2.1% and Eurasian Natural Resources gained 3.7%.DJ30 -113.51 NASDAQ -30.51 SP500 -14.48 NASDAQ Adv/Vol/Dec 633/599.5 mln/1760 NYSE Adv/Vol/Dec 698/210.8 mln/2250

12:00 pm : The S&P 500 is off by 0.9% as it continues to trade near its session low

The industrial sector is outperforming the broader market and shipping stocks are seeing strength. Kirby (KEX 61.06, +0.16) and Matson (MATX 24.73, +0.14) are higher by 0.2% and 0.6% respectively. Earlier, Matson signed an agreement to acquire assets of Reef Shipping in the South Pacific.

Elsewhere, Cleantech Solutions (CLNT 4.17, +0.28) is surging 7.2% after the company received a patent for new production technique to be used in dyeing machines.DJ30 -92.70 NASDAQ -27.17 SP500 -12.21 NASDAQ Adv/Vol/Dec 679/508.8 mln/1685 NYSE Adv/Vol/Dec 783/182.7 mln/2127

11:30 am : The major averages are holding their recent levels and the S&P 500 is off by 0.8%.

Consumer stocks were among the biggest laggards yesterday after MasterCard SpendingPulse reported disappointing growth in holiday sales. Today, the discretionary space trades in-line with the broader market. Several apparel producers and multi-line retailers are seeing an extension of yesterday's weakness. Macy's (M 36.53, -0.60) and J.C. Penney (JCP 19.77, -0.98) are down 1.6% and 4.7%, respectively.

On the upside, footwear designer Deckers Outdoor (DECK 38.17, +3.30) is surging 9.4%DJ30 -78.45 NASDAQ -19.46 SP500 -10.26 NASDAQ Adv/Vol/Dec 726/446.1 mln/1600 NYSE Adv/Vol/Dec 842/165.5 mln/2056

11:00 am : The financial sector was an early leader, but recent comments from Senate Majority Leader Harry Reid have sent the space to fresh lows. During his remarks from the Senate floor, Senator Reid said that all signs suggest the country will go over the fiscal cliff. In addition, the senator said the House of Representatives is being run as a "dictatorship" by Speaker Boehner. The comments resonated with the broader market, and the S&P 500 slid to fresh lows. The benchmark index is now down 0.6%.

Among the major financials, Bank of America (BAC 11.32, -0.21) was up over 1.0% in early trade, but it now trades lower by 1.9%. Elsewhere, Citigroup (C 38.90, -0.65) and JPMorgan Chase (JPM 43.20, -0.76) are both down near 1.7%.DJ30 -74.18 NASDAQ -14.86 SP500 -8.98 NASDAQ Adv/Vol/Dec 814/345.5 mln/1456 NYSE Adv/Vol/Dec 936/132.8 mln/1927

10:30 am : The dollar index has been rallying in recent trade, which has been weighing on select commodities such as crude oil.

Feb crude oil just sold off, showing a second leg down from its session high of $91.44. Crude oils is now below the $91 and just hit a new session low a few minutes ago at $90.68/barrel. In current action, crude is -0.2% at $90.76/barrel.

Feb natural gas has been in negative territory all session and fell to a new LoD of $3.36/MMBtu. In current action, nat gas is -1.8% at $3.36/MMBtu.

Precious metals metals are rallying here despite the rally in the dollar index. Feb gold is now -0.2% at $1657.20/oz, while Mar silver is +0.4% at $30.14/oz. Mar copper is flat at $3.60/lb.NASDAQ Adv/Vol/Dec 735/260.5 mln/1463 NYSE Adv/Vol/Dec 899/105 mln/1914

10:00 am : Equities have ticked lower in reaction to the latest consumer confidence and new home sales data. The S&P 500 is off by 0.1%.

The latest consumer confidence reading for December came in at 65.1, while economists polled by Briefing.com expected a reading of 70.0. This follows the prior month's revised reading of 71.5.

Separately, new home sales in November hit an annualized rate of 377,000, which was up from October's revised rate of 361,000, and worse than the rate of 379,000 that had been broadly expected by the Briefing.com consensus. The SPDR S&P Homebuilders ETF (XHB 26.03, 0.00) held its ground in reaction to the data.DJ30 -10.64 NASDAQ -3.42 SP500 -1.73 NASDAQ Adv/Vol/Dec 1080/150.1 mln/1037 NYSE Adv/Vol/Dec 1483/66.3 mln/1223

09:45 am : The major averages have risen to their respective highs following a mixed open. Currently, the S&P 500 is adding 0.2%.

Of the ten S&P 500 sectors, only technology stocks are trading lower. On the upside, financials and consumer discretionary names are pacing the advance.

December consumer confidence and November new home sales will both be reported at 10:00 ET.DJ30 +22.84 NASDAQ +0.82 SP500 +2.43 NASDAQ Adv/Vol/Dec 1055/77.6 mln/963 NYSE Adv/Vol/Dec 1644/47.7 mln/971

09:16 am : [BRIEFING.COM] S&P futures vs fair value: +1.00. Nasdaq futures vs fair value: +1.50. Heading into the open, equity futures are pointing to a modestly higher start to the session. The S&P 500 futures are adding 0.1%.

Looking at pre-market movers, financials are poised for a strong open. Bank of America (BAC 11.66, +0.12), Citigroup (C 39.71, +0.16), and Morgan Stanley (MS 19.00, +0.12) are all up between 0.4% and 1.1%.

Today's economic data will be rounded out by December consumer confidence and November new home sales. Both figures will be reported at 10:00 ET.

09:00 am : [BRIEFING.COM] S&P futures vs fair value: +1.90. Nasdaq futures vs fair value: +2.30.

U.S. equity futures continue to trade higher with the S&P 500 futures up 0.2%.

The major Asian bourses finished mostly higher as Japan's Nikkei (+0.9%) was once again the leader. Today's strength came following reports which suggested the Bank of Japan will look to achieve 2-3% inflation through by buying longer dated government bonds, including those of other sovereigns, as well as REITs and shares. That news sent USDJPY upwards of 85.85, and to a 27-month high. Data from the region saw Hong Kong's trade deficit widen to $44.1 billion ($42.7 billion previous), Thai industrial production surge 83.3% year-over-year (68.5% year-over-year expected) due to low comparisons because of last year's floods, and South Korea's manufacturing BSI Index climb to 75 (69 previous).

In Japan, the Nikkei advanced 0.9% as exporters continued to gain on the weaker yen. Honda Motor added 1.6% and Panasonic tacked on 1.4%. Financials also remained strong with Nomura gaining 4.3%.
Hong Kong's Hang Seng finished higher by 0.4% as financials and insurers saw solid gains. China Merchants bank rose 2.7% and New China Life Insurance rallied 1.8% after a mysterious seller unloaded 17 million shares.

In China, the Shanghai Composite slipped 0.6% as traders booked profits from the 11.0% surge that has taken place in December. Cement makers saw profit taking as Anhui Conch Cement shed 2.9% to lead the space lower.

Core European markets are seeing modest gains. Looking at the region's economic data, French consumer confidence was reported at 86, while the general consensus expected a reading of 84. Meanwhile, the country's PPI slipped 0.5% month-over-month, while a 0.2% downtick was broadly expected. Elsewhere, Italian business confidence of 88.9 slightly beat expectations. Also of note, the Spanish government reported a budget deficit of EUR2.50 billion, while a much wider deficit of EUR7.50 billion was expected. In news, Germany's Finance Minister Wolfgang Schaeuble has said that the country's economy will expand at a "decent" rate next year with exports as the main growth driver.

Germany's DAX is adding 0.4% and financials are pacing the advance. Commerzbank and Deutsche Bank are seeing respective gains of 1.1% and 2.0%. Meanwhile, consumer stocks are lagging. Bayer, Henkel, and Merck are all down between 0.9% and 1.9%.

The United Kingdom's FTSE is higher by 0.4% and miners are outperforming. Anglo American, Eurasian Natural Resources, and Rio Tinto are all up between 1.9% and 4.1%. The relative strength comes after the Chinese government reiterated its plans to step up urban infrastructure spending.

In France, the CAC is firmer by 0.8% with most stocks advancing. Steelmaker ArcelorMittal is one of the top performers as it trades higher by 1.9%. On the downside, GDF Suez, Pernod-Ricard, and Public Groupe are all down between 0.3% and 0.5%.

08:34 am : [BRIEFING.COM] S&P futures vs fair value: +2.40. Nasdaq futures vs fair value: +2.80. Equity futures have shown little reaction to the latest claims data. The S&P 500 futures are higher by 0.2%.

The latest weekly initial jobless claims count totaled 350,000, which was better than the 375,000 that had been expected by the Briefing.com consensus. The tally was below the revised prior week count of 362,000. As for continuing claims, they fell to 3.206 million from 3.238 million.

08:02 am : [BRIEFING.COM] S&P futures vs fair value: +2.30. Nasdaq futures vs fair value: +3.30.

U.S. equity futures are modestly higher amid mixed European trade. The overnight bias has been mostly positive with lawmakers set to resume the budget negotiations in Washington. This will begin with a 14:30 ET conference call between House GOP members. In addition to the fiscal cliff, the U.S. also faces the rapidly approaching debt ceiling. In a letter sent yesterday to Senate Majority Leader Reid, Treasury Secretary Tim Geithner said that the country will hit the statutory debt limit on December 31. Similar to actions undertaken last August, the Treasury will use "extraordinary measures" in order to make room for an additional $200 billion in spending, which under normal circumstances ought to last for about two months.

Looking at the global markets:

Asian indices were mixed: China's Shanghai Composite slipped 0.6%, Hong Kong's Hang Seng added 0.4%, and Japan's Nikkei gained 0.9%.

Economic data was generally light:

Japan's housing starts rose by 10.3% year-over-year, which was ahead of the 10.0% rise forecast by the general consensus.

Hong Kong's trade deficit came in at HKD44.1 billion, while a wider deficit of HKD44.8 billion was expected.

In news:

A special adviser to Japanese Prime Minister Noda said the Bank of Japan should purchase more government debt as well as more domestic and foreign risk assets in order to achieve the 2.0% inflation target.

The South Korean finance ministry has cut its growth forecast for 2013 to 3.0% from 4.0%. In addition, GDP growth outlook for 2012 was trimmed to 2.1% from 3.3%.

Core European markets are higher across the board: Germany's DAX and the United Kingdom's FTSE are both adding 0.4% while France's CAC is higher by 0.6%.

A handful of economic data points crossed the wires:

In France, the country's consumer confidence was reported at 86, while the general consensus expected a reading of 84. Meanwhile, French PPI slipped 0.5% month-over-month, while a 0.2% downtick was broadly expected. Italian business confidence of 88.9 slightly beat expectations. The Spanish government reported a budget deficit of EUR2.50 billion, while a much wider deficit of EUR7.50 billion was expected.

In news:

Spain's Bankia is down over 10% following a negative valuation report from the bank's rescue fund.

In U.S. corporate news:

BCD Semiconductor (BCD 7.80, +3.82) is surging 96.0% after the company has agreed to be acquired by Diodes (DIOD 17.37, +0.46) for $8.00 per share. The transaction price represents a 101% premium to BCD's Wednesday closing price. Ford Motor (F 12.76, -0.03) has announced plans to spend more than $773 million on new plant equipment and capacity expansion across six facilities in Southeast Michigan.

Weekly initial and continuing claims will be reported at 8:30 ET. In addition, November new home sales and December consumer confidence will both be reported at 10:00 ET.

06:40 am : [BRIEFING.COM] S&P futures vs fair value: +0.80. Nasdaq futures vs fair value: +2.00.

06:40 am : Nikkei...10322.98...+92.60...+0.90%. Hang Seng...22619.78...+78.60...+0.40%.

06:40 am : FTSE...5967.53...+13.40...+0.20%. DAX...7661.01...-11.10...-0.10%.

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

Best Regards,
M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
@ http://twitter.com/wrbtrader and http://stocktwits.com/wrbtrader

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