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 @ $60.00 dollars or +0.60 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 @ $60.00 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=113&t=1407

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=199&t=1715

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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 in many trading instruments I monitor during the trading day. Simply, I'm a strong believer that key market events causes key changes in supply/demand and volatility resulting in trade opportunities (swing points and strong continuation price actions) that reach profit targets. Thus, I pay attention to these key market events, intermarket analysis (e.g. Forex EurUsd, Gold GC futures, Oil CL & Brent futures, Eurex DAX futures, Emini ES futures, Emini TF futures, Treasury ZB futures) 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 Skid On Eve Of Earnings Season


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

NEW YORK (CNNMoney)
U.S. stocks tumbled Monday as investors shift their focus from the nation's fiscal woes to the outlook for corporate earnings.

The Dow Jones Industrial average fell 0.4%, the S&P 500 slid 0.3% and the Nasdaq edged down 0.1%.

The retreat comes as investors prepare for quarterly earnings reports from U.S. corporations. Aluminum producer Alcoa (AA, Fortune 500) will be the first major firm to report earnings after the closing bell Tuesday. Wells Fargo (WFC, Fortune 500) will release its results Friday.

Overall, earnings for the companies in the S&P 500 are expected to rise 3.3% in the fourth quarter compared with the same period in 2011, according to S&P Capital IQ.

In particular, companies in the industrial sector are expected to post losses in the quarter, while consumer discretionary and telecommunications companies are expected to lead earnings growth, according to Capital IQ.

While revenue could stabilize in the quarter, companies will struggle to beat earnings expectations, analysts at Barclay's wrote in a report. "We suspect earnings season will be a negative for the market overall," said Barclay's.

Meanwhile, bank stocks were in focus after federal regulators announced an agreement with 10 banks that will provide $8.5 billion in relief for troubled homeowners and settle charges the banks mishandled foreclosures for 3.8 million borrowers in 2009 and 2010. Bank of America (BAC, Fortune 500), Citigroup (C, Fortune 500), JPMorgan (JPM, Fortune 500), and Wells Fargo were among the banks involved in the agreement.

Separately, Bank of America announced a $10.3 billion settlement with Fannie Mae to resolve repurchase claims on mortgage loans that were originated before December 31, 2008.

On Sunday, the Basel Committee on Banking Supervision, an international standard setter, watered down some of the more stringent rules for banks, which would have required lenders to hold back cash they could use for lending. The rules were originally proposed to help strengthen banks in the event of another global financial crisis.

U.S.-listed shares of Deutsche Bank (DB) and UBS (UBS) were higher.

"There's a lot of focus on the financials today," said David Lutz, head ETF trader at Stifel Nicolaus.

* More savers can convert to Roth 401(k)s under fiscal cliff deal

U.S. stocks rallied in the first week of 2013, with the S&P 500 ending Friday at its highest level since December 2007.

After weeks of trepidation over the fiscal cliff, lawmakers reached a last-minute compromise that forestalled the worst of the crisis. But officials in Washington are now gearing up for a fight over the nation's legal borrowing limit, known as the debt ceiling.

If the ceiling isn't raised by late February or early March, the United States runs the risk of defaulting on its obligations because the Treasury would no longer have enough money available to pay all the country's bills.

"The debt ceiling is the new wall of worry for stocks," said Anthony Conroy, head trader at BNY ConvergEx Group.

* CNNMoney's Fear & Greed Index

European markets ended lower, with shares in Paris suffering the worst declines. The CAC 40 fell 0.9%, London's FTSE 100 sank 0.6% and the DAX in Frankfurt declined 0.6%.

Asian markets ended mixed. The Shanghai Composite added 0.4%, while Hong Kong's Hang Seng advanced 0.1%. Japan's Nikkei dropped 0.8%, despite media reports indicating the government is preparing a fiscal stimulus package.

In the bond market, the yield on the 10-year U.S. Treasury note dipped to 1.9%. The yield rose near 2% last week as investors pulled money out of safer investments and moved into more risky assets.

Oil prices edged higher while gold prices eased. The U.S. dollar edged higher versus the euro and British pound, but fell against the Japanese yen.



Market Update

4:15 pm : Stocks registered modest losses during today's quiet session. With no economic data or notable earnings to dictate the tone, the major averages were trapped in a relatively narrow range. The S&P 500 opened in the red, and traded near its opening levels for the duration of the session. As a result, the benchmark index finished lower by 0.3%. The Nasdaq outperformed and shed 0.1% after Apple (AAPL 523.90, -3.10) recovered the bulk of its early losses to ended lower by 0.6%.

The SPDR Energy Select Sector ETF (XLE 73.22, -0.57) shed 0.8% despite little change in the price of crude oil. Several energy companies lagged after receiving downgrades from Howard Weil. Among the most notable names, Phillips 66 (PSX 51.36, -1.78) was downgraded to ‘Sector Perform' and Tesoro (TSO 40.22, -2.32) was cut to ‘Sector Outperform.' Phillips 66 lost 3.4% and Tesoro fell 5.5%.

Financials performed in-line with the broader market after the Federal Reserve announced the results of the Independent Foreclosure Review. As a result of the review, ten major banks will be required to provide $3.3 billion in payments and $5.2 billion in other assistance to affected homeowners. The settlement comes after banks engaged in deficient practices in mortgage loan servicing and foreclosure processing. Looking at individual financials, Wells Fargo (WFC 34.57, -0.37) and US Bank (USB 32.92, -0.30) lost 0.5% and 0.9% respectively. Also of note, Bank of America (BAC 12.09, -0.02) announced it has reached a settlement with Fannie Mae to resolve agency mortgage repurchase claims on loans originated and sold directly to Fannie Mae through December 31, 2008. The settlement is expected to reduce Bank of America's fourth quarter pretax income by about $2.7 billion.

The health care sector registered gains thanks to the strength of health care tech companies. Allscripts Healthcare (MDRX 9.71, +0.34) rose by 3.6% after Avondale upgraded the stock to ‘Outperform.' Elsewhere, Quality Systems (QSII 18.21, +0.82) gained 4.7% after NextGen Healthcare Information Systems, which is a wholly owned subsidiary of QSII, announced it has entered into a strategic agreement with Medline Industries to expand its integrated solutions.

The Dow Jones Transportation Average slipped 0.4% as railroads underperformed. Earlier, Kansas City Southern (KSU 86.42, -2.40) was downgraded to ‘Equal Weight' from ‘Overweight' at Stephens. CSX (CSX 20.46, -0.48) and Kansas City Southern were two of the weakest rail operators, and both lost in excess of 2.0%.

On the upside, airlines saw relative strength. A weekend article published in Barron's discussed the industry's valuation and pointed to Delta Air Lines (DAL 12.99, +0.01) as one of top airline stocks.

For-profit education names were pressured after ITT Education (ESI 15.57, -3.72) announced it expects to record an after-tax charge of about $13.2 million to its fourth quarter net income. The charge stems from a settlement with Sallie Mae, and is expected to reduce ITT's fourth quarter bottom line by about $0.56. ITT Education slumped 19.3% on the news, and its peers underperformed as well. Strayer Education (STRA 57.69, -3.17) and New Oriental Education & Technology (EDU 19.50, -0.50) lost 5.2% and 2.5% respectively.

Tomorrow's economic data will be limited to November consumer credit, scheduled for a 15:00 ET release.

The U.S. Treasury will auction off $32 billion in 3-yr notes.DJ30 -50.92 NASDAQ -2.85 SP500 -4.58 NASDAQ Adv/Vol/Dec 1069/1.66 bln/1439 NYSE Adv/Vol/Dec 1374/625.7 mln/1653

3:30 pm : Crude oil erased overnight losses on support from a weakening dollar index. It lifted off it pit session low of $92.42 per barrel and climbed into positive territory in morning action. It settled with a 0.1% gain at $93.15 per barrel, slightly below its session high of $93.30 per barrel.

Natural gas, however, erased earlier gains as it fell off its session high of $3.35 per MBMtu. Despite trending upwards in afternoon action, it settled 0.6% lower at $3.27 per MMBtu.

Gold slid off its pit session high of $1656.40 per ounce and into negative territory, where it chopped around for most of today's floor trade. Despite the weaker dollar index, the yellow metal settled with a 0.2% loss at $1646.30 per ounce.

Silver bounced to a session high of $30.25 per ounce after trading as low as $29.86 per ounce in morning floor action. It closed with a 0.6% gain at $30.08 per ounce.DJ30 -41.60 NASDAQ -1.03 SP500 -4.08 NASDAQ Adv/Vol/Dec 1086/1366.9 mln/1395 NYSE Adv/Vol/Dec 1324/426 mln/1656

3:00 pm : The S&P 500 is down 0.4% as trade enters the final hour.

The fourth quarter earnings season will begin tomorrow when Dow component Alcoa (AA 9.12, -0.14) reports its results after the closing bell. The Capital IQ consensus expects the economic bellwether to report earnings of $0.06 on $5.61 billion in revenue.

Monsanto (MON 95.77, -0.34) is also among the notable names scheduled to report its quarterly results tomorrow. The chemical producer will release its quarterly report before the open, and forecasts call for earnings of $0.36 on revenue of $2.64 billion.DJ30 -55.35 NASDAQ -7.39 SP500 -6.09 NASDAQ Adv/Vol/Dec 999/1.23 bln/1475 NYSE Adv/Vol/Dec 1236/389.3 mln/1750

2:35 pm : The major averages are holding their recent levels, and the S&P 500 is slipping 0.4%.

For-profit education names are under pressure after ITT Education (ESI 15.77, -3.52) announced it expects to record an after-tax charge of about $13.2 million to its fourth quarter net income. The charge stems from a settlement with Sallie Mae, and is expected to reduce ITT's fourth quarter bottom line by about $0.56. ITT Education is slumping 18.3% on the news, and its peers are underperforming as well. Strayer Education (STRA 58.00, -2.86) and New Oriental Education & Technology (EDU 19.49, -0.51) are down 4.7% and 2.6%, respectively.DJ30 -54.41 NASDAQ -5.87 SP500 -6.02 NASDAQ Adv/Vol/Dec 1002/1.15 bln/1462 NYSE Adv/Vol/Dec 1216/364.5 mln/1771

2:00 pm : The S&P 500 is off by 0.6% as the index continues to trade near its recent levels.

The SPDR Energy Select Sector ETF (XLE 73.03, -0.75) is shedding 1.0% despite oil trading modestly higher. The relative weakness comes after several energy companies received downgrades from Howard Weil. Among the most notable names, Phillips 66 (PSX 51.56, -1.58) was downgraded to ‘Sector Perform' and Tesoro (TSO 40.31, -2.23) was cut to ‘Sector Outperform.' Phillips 66 is down 3.0% and Tesoro is sliding 5.3%.

Elsewhere, a handful of coal names are moving lower following analyst comments. Cloud Peak Energy (CLD 19.05, -0.41) and James River Coal (JRCC 3.47, -0.13) are both down over 2.0% after Raymond James downgraded the two stocks to ‘Market Perform' from ‘Outperform.'DJ30 -74.26 NASDAQ -11.97 SP500 -8.17 NASDAQ Adv/Vol/Dec 927/1.05 bln/1544 NYSE Adv/Vol/Dec 1143/332.1 mln/1830

1:30 pm : Equities are holding their recent levels and the S&P 500 is lower by 0.5%.

The Dow Jones Transportation Average is slipping 0.5% as railroads weigh. Earlier, Kansas City Southern (KSU 86.44, -2.38) was downgraded to ‘Equal Weight' from ‘Overweight' at Stephens. CSX (CSX 20.43, -0.50) and Kansas City Southern are two of the weakest rail operators as they both see losses in excess of 2.0%.

On the upside, airlines are seeing relative strength. A weekend article published in Barron's discussed the industry's valuation and pointed to Delta Air Lines (DAL 13.05, +0.07) as one of top airline stocks.DJ30 -70.39 NASDAQ -8.80 SP500 -7.66 NASDAQ Adv/Vol/Dec 947/982.5 mln/1511 NYSE Adv/Vol/Dec 1166/310.1 mln/1800

12:55 pm : Equities began today's session on a slightly lower note after the S&P 500 ended last week at its best level in five years. With no economic data or earnings of note, the benchmark index has continued to push to fresh lows through the first half of the session, trading lower by 0.6% at midday.

The financial sector is underperforming the broader market, and the SPDR Financial Select Sector ETF (XLF 16.95, -0.10) is slipping 0.6%. The Federal Reserve has recently announced that as a result of the Independent Foreclosure Review, ten major banks will be required to provide $3.3 billion in payments and $5.2 billion in other assistance to affected homeowners. The settlement comes after banks engaged in deficient practices in mortgage loan servicing and foreclosure processing. Looking at individual financials, Wells Fargo (WFC 34.57, -0.37) and Citigroup (C 42.19, -0.24) are down 1.1% and 0.6% respectively.

Also of note, Bank of America (BAC 12.04, -0.07) announced it has reached a settlement with Fannie Mae to resolve agency mortgage repurchase claims on loans originated and sold directly to Fannie Mae through December 31, 2008. The settlement is expected to reduce Bank of America's fourth quarter pretax income by about $2.7 billion.

The technology sector is off by 0.4% after recovering off its morning lows. Apple (AAPL 522.69, -4.31) was down over 1.5% in early trade, but the largest tech company has reclaimed a portion of its losses, and is now off by 0.8%.

Among the notable gainers, 3D Systems (DDD 61.34, +2.50) is firmer by 4.3% as the stock of the 3-D printing company trades at a fresh all-time high. Earlier, the company announced the launch of a new printer, which will be on display at the CES conference taking place this week in Las Vegas, Nevada.

Looking at names moving on analyst comments, Micron Technology (MU 7.23, +0.27) is rising by 3.7% after Citigroup added the stock to its ‘Top Picks Live' list. Elsewhere, Amazon.com (AMZN 265.95, +6.80) has marked a fresh all-time high after Morgan Stanley upgraded the stock to ‘Overweight' from ‘Equal Weight.'

Key European indices finished the day near their respective lows. The United Kingdom's FTSE slipped 0.4%, Germany's DAX shed 0.6%, and France's CAC slid 0.7%. Financials were among the best performers across the region after regulators said that Basel III rules will not be as strict as previously anticipated, and will not go into full effect until 2019. The enforcement of the regulations was originally scheduled to begin on January 1, 2015.

In the United Kingdom, utilities were among the weakest performers. Centrica and National Grid both lost over 2.0%. On the upside, Barclays led the index with a 3.8% gain.

In Germany, utilities underperformed as well. RWE slid 3.0% after HSBC Holdings downgraded the stock to ‘Neutral' from ‘Overweight.' Peer E.ON slipped 2.2%. On the upside, financials Commerzbank and Deutsche Bank registered respective gains of 4.4% and 2.8%.

In France, technology and communication stocks saw the most notable weakness. Gemalto and Vivendi lost 1.5% and 2.2% respectively. Meanwhile, financials advanced. Credit Agricole gained 3.5%, and Societe Generale added 2.7%.DJ30 -81.30 NASDAQ -12.29 SP500 -8.88 NASDAQ Adv/Vol/Dec 940/909.1 mln/1500 NYSE Adv/Vol/Dec 1154/287.9 mln/1781

12:30 pm : The S&P 500 is down 0.7% after marking a fresh session low.

The key European indices finished the day near their respective lows. The United Kingdom's FTSE slipped 0.4%, Germany's DAX shed 0.6%, and France's CAC slid 0.7%. Financials were among the best performers across the region after regulators said that Basel III rules will not be as strict as previously anticipated, and will not go into full effect until 2019.

In the United Kingdom, utilities were among the weakest performers. Centrica and National Grid both lost over 2.0%. On the upside, Barclays led the index with a 3.8% gain.

In Germany, utilities underperformed as well. RWE slid 3.0% after HSBC Holdings downgraded the stock to ‘Neutral' from ‘Overweight.' Peer E.ON slipped 2.2%. On the upside, financials Commerzbank and Deutsche Bank registered respective gains of 4.4% and 2.8%.

In France, technology and communication stocks saw the most notable weakness. Gemalto and Vivendi lost 1.5% and 2.2% respectively. Meanwhile, financials advanced. Credit Agricole gained 3.5%, and Societe Generale added 2.7%.DJ30 -87.92 NASDAQ -13.83 SP500 -9.71 NASDAQ Adv/Vol/Dec 890/829.8 mln/1533 NYSE Adv/Vol/Dec 1115/263.5 mln/1819

12:00 pm : The S&P 500 is down 0.6% after slipping to a fresh low while the Nasdaq is off by 0.4% as it outperforms.

The technology sector is seeing relative strength after climbing off early-session lows. Apple (AAPL 524.31, -2.68) was down over 1.5% in early trade, but the largest tech company has reclaimed the bulk of its losses, and is now shedding 0.5%.

Among the notable gainers, 3D Systems (DDD 61.34, +2.50) is firmer by 4.3% as the stock of the 3-D printing company trades at a fresh all-time high. Earlier, the company announced the launch of a new printer, which will be on display at the CES conference taking place this week in Las Vegas, Nevada.

Lastly, Micron Technology (MU 7.15, +0.19) is higher by 2.9% after Citigroup added the stock to its ‘Top Picks Live' list.DJ30 -79.03 NASDAQ -12.02 SP500 -8.57 NASDAQ Adv/Vol/Dec 893/745.8 mln/1524 NYSE Adv/Vol/Dec 1110/237.3 mln/1811

11:30 am : The S&P 500 continues to trade near its opening level, down 0.4%.

The financial sector is trading in-line with the broader market and the SPDR Financial Select Sector ETF (XLF 16.98, -0.07) is slipping 0.4%. The Federal Reserve has recently announced that as a result of the Independent Foreclosure Review, ten major banks will be required to provide $3.3 billion in payments and $5.2 billion in other assistance to affected homeowners. The settlement comes after banks engaged in deficient practices in mortgage loan servicing and foreclosure processing. Looking at individual financials, Wells Fargo (WFC 34.61, -0.33) and Citigroup (C 42.25, -0.18) are down 1.0% and 0.5% respectively.

Also of note, Bank of America (BAC 12.10, -0.01) announced it has reached a settlement with Fannie Mae to resolve agency mortgage repurchase claims on loans originated and sold directly to Fannie Mae through December 31, 2008. The settlement is expected to reduce Bank of America's fourth quarter pretax income by about $2.7 billion.DJ30 -54.52 NASDAQ -2.63 SP500 -5.59 NASDAQ Adv/Vol/Dec 943/646.8 mln/1449 NYSE Adv/Vol/Dec 1164/210.2 mln/1718

11:00 am : The S&P 500 is off by 0.4% as the index trades near its opening level.

The health care sector is the lone advancer as companies specializing in health care technology lead the space. Allscripts Healthcare (MDRX 9.59, +0.22) is rising by 2.4% after Avondale upgraded the stock to ‘Outperform.' Elsewhere, Quality Systems (QSII 17.94, +0.55) is firmer by 3.1%. Earlier, NextGen Healthcare Information Systems, which is a wholly owned subsidiary of QSII, announced it has entered into a strategic agreement with Medline Industries to expand its integrated solutions.

Also of note, Viropharma (VPHM 24.90, +1.14) is rising by 4.8% after the company issued full-year 2013 guidance in-line with the Capital IQ consensus estimate.DJ30 -47.39 NASDAQ -6.69 SP500 -6.09 NASDAQ Adv/Vol/Dec 921/522.5 mln/1431 NYSE Adv/Vol/Dec 1128/176.8 mln/1718

10:30 am : The dollar index just sold off here in recent action, falling to a new session low and giving a select commodities a boost, especially crude oil.

Crude oil rallied off of its session low of $92.45/barrel this morning and recent rallied back into positive territory. In current action, Feb crude oil is +0.1% at $93.18/barrel.

Natural gas futures have been in positive territory all session. The energy component hit a fresh session high of $3.35 just over an hour ago and is now +1.3% at $3.33/MMBtu.

Precious metals dropped sharply earlier this morning, dropping into the red. Feb gold remains in negative territory and is now -0.05% at $1648.00/oz, while Mar silver is back in positive territory, now at +0.4% at $30.07/oz.DJ30 -45.62 NASDAQ -6.43 SP500 -4.93 NASDAQ Adv/Vol/Dec 899/422.6 mln/1425 NYSE Adv/Vol/Dec 1116/150 mln/1714

10:00 am : The major averages continue to trade near their respective lows. The S&P 500 is slipping 0.5%.

Utility stocks are seeing the most notable early weakness as gas producers weigh. National Fuel Gas (NFG 50.11, -0.96) is down 1.9% after Howard Weil downgraded the stock to ‘Sector Perform.'

Also of note, major electricity producers are underperforming. Entergy Corporation (ETR 63.35, -1.08) and Southern Company (SO 43.58, -0.59) are down 1.7% and 1.3% respectively.DJ30 -65.37 NASDAQ -12.60 SP500 -6.54 NASDAQ Adv/Vol/Dec 792/266.2 mln/1454 NYSE Adv/Vol/Dec 966/108.8 mln/1800

09:45 am : The major averages have seen an extension of the bearish pre-market sentiment. The S&P 500 is shedding 0.5%.

All ten S&P 500 sectors are declining with energy stocks and utilities showing the biggest weakness. On the upside, health care and the consumer discretionary sector are registering slimmer losses than the broader market.

Elsewhere, Bank of America (BAC 12.17, +0.05) has notched a fresh 52-week high after the bank announced it has reached a settlement with Fannie Mae to resolve agency mortgage repurchase claims on loans originated and sold directly to Fannie Mae through December 31, 2008.

Also of note, Apple (AAPL 519.35, -7.64) is slipping 1.6%. Earlier, Barclays cut its price target for the stock to $740 from $800.DJ30 -65.69 NASDAQ -11.82 SP500 -6.81 NASDAQ Adv/Vol/Dec 769/168.1 mln/1443 NYSE Adv/Vol/Dec 905/82.5 mln/1812

09:16 am : [BRIEFING.COM] S&P futures vs fair value: -6.00. Nasdaq futures vs fair value: -12.00.

Heading into the open, equity futures are pointing to a modestly lower start. The S&P 500 futures are off by 0.2%.

Looking at pre-market movers, Micron Technology (MU 7.03, +0.07) is adding 1.0% after Citigroup added the stock to its ‘Top Picks Live' list.

Kansas City Southern (KSU 87.60, -1.22) is shedding 1.4% after Stephens downgraded the stock to ‘Equal Weight' from ‘Overweight.'

Apple (AAPL 5221.22, -5.78) is slipping 1.1% as it underperforms.

08:56 am : [BRIEFING.COM] S&P futures vs fair value: -5.70. Nasdaq futures vs fair value: -11.80.

U.S. equity futures are near their pre-market lows and the S&P 500 futures are off by 0.2%.

The major Asian bourses ended mostly lower with Japan's Nikkei (-0.8%) underperforming as the yen strengthened. Weekend comments from Japanese Finance Minister Taro Aso put a bid in the yen after he suggested the government will not ask the Bank of Japan to put its 2.0% inflation target in writing. Data from the region was light as Taiwan's trade surplus climbed to $4.13 billion ($3.04 billion expected, $3.40 billion previous).
In Japan, the Nikkei slipped 0.8% as traders booked profits in exporters. Canon fell 2.6% while Toyota Motor slipped 1.8%. Elsewhere, utilities were under pressure after select names in the space were downgraded at Nomura. Kansai Electric was a laggard, tumbling 5.1% as Nomura downgraded the stock to ‘Reduce' from ‘Neutral'.
Hong Kong's Hang Seng finished unchanged despite outperformance from real estate developers. Shares in the space rallied ahead of a new project launch by Sun Hung Kai. The developer gained 2.1%, only to be bettered by Henderson Land which jumped 2.8%.
In China, the Shanghai Composite added 0.4% to end at its best level since June. Financials lagged as Agricultural Bank of China fell 0.7% and Bank of China lost 0.3%.

European markets are seeing modest losses. Looking at economic data, the United Kingdom's Halifax House Price Index rose by 1.3% month-over month, while an uptick of 0.1% was broadly expected. Eurozone Sentix Investor Confidence was reported at -7.0, which was ahead of the reading of -15.0 expected by analysts. Eurozone PPI slipped 0.2% month-over-month, while an uptick of 0.1% was expected by the market. Germany's Minister of Economy Philipp Roesler said the county's economy grew at a pace of 0.75% in 2012, and he expects robust growth during 2013.
France's CAC is shedding 0.7% and consumer stocks are underperforming. Cie Generale d'Optique Essilor and L'Oreal are both down near 1.5%. On the upside, financials are seeing strength after international regulators said Basel III rules will not be as strict as originally planned, and will not be fully effective until 2019. BNP Paribas, Credit Agricole, and Societe Generale are all up between 2.5% and 3.5%.
Germany's DAX is lower by 0.6% with most components declining. Infineon Technologies is down 2.8% after Bank of America downgraded the stock to ‘Underperform.' Meanwhile, financials are rallying following the relaxation of Basel III rules. Commerzbank and Deutsche Bank are both up near 3.5%.
The United Kingdom's FTSE is slipping 0.4% as utilities lag. Centrica and National Grid are down 2.0% and 2.3% respectively. Financial Barclays is the top advancer as it trades higher by 4.0%.

08:31 am : [BRIEFING.COM] S&P futures vs fair value: -4.80. Nasdaq futures vs fair value: -9.80. Equity futures continue to trade lower and the S&P 500 futures are off by 0.1%.

Major financials are seeing notable pre-market strength after global regulators announced that Basel III rules will not be as stringent as originally planned. In addition, the regulation package will not be fully enforced until 2019. Global banks are welcoming the news. Barclays (BCS 18.42, +0.58) and Deutsche Bank (DB 46.95, +1.12) are higher by 3.3% and 2.4%, respectively.

Elsewhere, Bank of America (BAC 12.35, +0.24) is adding 2.0% following the announcement of a settlement with Fannie Mae to resolve agency mortgage repurchase claims on loans originated and sold directly to Fannie Mae through December 31, 2008.

07:58 am : [BRIEFING.COM] S&P futures vs fair value: -4.60. Nasdaq futures vs fair value: -10.30.

U.S. equity futures are modestly lower amid cautious overseas trade. Over the weekend, Washington lawmakers began setting the stage for the upcoming debt ceiling battle. This began with a Friday night release from the Congressional Budget Office, which said the 'Fiscal Cliff' deal will increase budget deficits over the coming years. In addition, the deal is expected to add about $600 billion in deficits due to increased debt servicing costs. In a Sunday morning television interview, House Minority Leader Nancy Pelosi said that more revenues have to be put on the table in the upcoming debate. In response, Senator Mitch McConnell said during an interview on ABC that "The tax issue is finished" and spending needs to be addressed next.

Taking a look at overseas markets:

Asian indices were mixed. Japan's Nikkei shed 0.8%, Hong Kong's Hang Seng ended flat, and China's Shanghai Composite added 0.4%.
In economic data:
Japan reported an 11.5% year-over-year increase in its monetary base. This reading was well ahead of the broadly expected increase of 5.0%.
In news:
Japan's Prime Minister Shinzo Abe said the new government's top priority is pulling the country out of economic malaise.
Japan's Finance Minister Taro Aso suggested the government will not ask the Bank of Japan to put its 2.0% inflation target in writing.

European markets are trading lower. France's CAC is down 0.6%, Germany's DAX is lower by 0.5%, and the United Kingdom's FTSE is off by 0.4%.
Looking at economic data:
The United Kingdom's Halifax House Price Index rose by 1.3% month-over month, while an uptick of 0.1% was broadly expected.
Eurozone Sentix Investor Confidence was reported at -7.0, which was ahead of the reading of -15.0 expected by analysts.
Eurozone PPI slipped 0.2% month-over-month, while an uptick of 0.1% was expected by the market.
In news:
Germany's Minister of Economy Philipp Roesler said the county's economy grew at 0.75% in 2012, and he expects robust growth during 2013.

In U.S. corporate news:

Amazon.com (AMZN 265.10, +5.95) is higher by 2.3% after Morgan Stanley upgraded the stock to ‘Overweight' from ‘Equal-Weight.'
Delta Air Lines (DAL 13.14, +0.16) is adding 1.2% after Barron's said airline stocks are poised for a bounce, and Delta appears to be in the best position to capitalize on the strength. Note that since December 1, Delta has added nearly 32.0%.
Yahoo! (YHOO 19.50, -0.36) is lower by 1.8% after Bernstein downgraded the stock to ‘Market Perform' from ‘Outperform.'

There is no notable economic data scheduled to be released today.

06:41 am : [BRIEFING.COM] S&P futures vs fair value: -5.00. Nasdaq futures vs fair value: -9.00.

06:41 am : Nikkei...10599.01...-89.10...-0.80%. Hang Seng...23329.75...-1.30...0.00.

06:41 am : FTSE...6070.63...-19.70...-0.30%. DAX...7735.64...-40.70...-0.50%.

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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