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


click on the above image to view today's performance verification

Price Action Trade Performance for Today: Emini TF ($TF_F) futures @ $1110.00 dollars or +11.10 points, EuroFX 6E futures @ $0.00 dollars or +0.0000 ticks and Light Crude Oil CL (WTI) futures @ ($700.00) dollars or -0.70 points. Total Profit @ $410.00 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 on the Freenode IRC network (chat room no longer located on the Othernet IRC network). You can read today's ##TheStrategyLab 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=1424

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.






Market Update

4:30 pm : Equities finished today's session on a mixed note. The Dow and S&P 500 gained 0.5% each, while the Nasdaq underperformed, and ended flat. However, looking below the surface revealed the sector rotation which took place today.

The energy space paced today's advance thanks in part to strong earnings from Valero (VLO 43.77, +4.96). In addition, the 1.1% advance in crude oil also contributed to the sector's strength.

After energy, health care, telecoms, and utilities were among the day's top performers as investors rotated into defensive-oriented stocks. In the health care space, Eli Lilly (LLY 54.32, +1.68) and Pfizer (PFE 27.70, +0.86) both gained 3.2% after reporting upbeat earnings.

Today's performance of telecoms expands on the theme of sector rotation. AT&T (T 34.68, +0.55), Sprint Nextel (S 5.64, +0.08), and Verizon Communications (VZ 43.50, +0.73) all gained near 1.5%.

While defensive sectors led the way, the discretionary space underperformed as the SPDR Consumer Discretionary Select Sector ETF (XLY 50.46, -0.20) slipped 0.4%. Ford Motor (F 13.14, -0.64) was a notable laggard after the carmaker shed 4.6% despite an earnings beat. While the company expressed concerns about its European sales, the remarks were in-line with comments made during past earnings calls.

The discretionary sector avoided wider losses thanks to the relative strength observed in homebuilders. This morning, DR Horton (DHI 23.82, +2.51) beat on both earnings and revenue. The strong report was welcomed by investors and shares of DR Horton spiked 11.8%. Meanwhile, the broader SPDR S&P Homebuilders ETF (XHB 29.10, +0.29) gained 1.0%.

Although the technology sector ended with gains, its true performance was masked by the relative strength of Apple (AAPL 458.27, +8.44), which gained 1.9% after announcing a 128GB version of its fourth generation iPad device.

Tech stocks saw broad weakness and VMware (VMW 77.14, -21.18) was a notable laggard. The company, which specializes in technology infrastructure, plunged 21.5% after issuing cautious guidance. In addition, VMware announced plans to cut about 7.0% of its workforce.

Elsewhere in tech earnings, Seagate (STX 33.91, -3.50) fell 9.4% after it too issued guidance which disappointed investors. Note that today's selling came after Seagate rallied nearly 50.0% in the eight weeks leading into yesterday's report.

Volume was slightly above its 50-day average as more than 700 million shares changed hands on the floor of the New York Stock Exchange.

The CBOE Volatility Index (VIX 13.33, -0.24) ended lower by 1.8% after the past two session saw the near-term volatility measure settle in the black.

The market received just two economic data points today. The November Case-Shiller 20-city Home Price Index rose by 5.5%, while a 5.2% increase had been expected by the Briefing.com consensus. This follows the previous month's increase of 4.3%.

Meanwhile, the January consumer confidence reading of 58.6 fell short of the 65.1 expected by the Briefing.com consensus. Though equities slipped immediately after the report hit the wires, the weakness proved to be short-lived.

Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET. At 8:15 ET, the January ADP Employment Change will be reported. Fourth quarter advanced GDP growth will hit the wires at 8:30 ET, and the Federal Reserve will top off the busy day of economic releases with its rate decision and policy statement scheduled for 14:15 ET. Among earnings of note, Boeing (BA 73.65, -0.35) will announce its quarterly results prior to the open.DJ30 +72.49 NASDAQ -0.64 SP500 +7.66 NASDAQ Adv/Vol/Dec 1345/1.91 bln/1102 NYSE Adv/Vol/Dec 1746/718.9 mln/1249

3:30 pm :

Mar crude oil extended yesterday's gains as it got a boost from a weaker dollar index. The energy component climbed to a floor session high of $97.82 per barrel and settled at $97.59 per barrel for a 1.2% gain.
Mar natural gas extended losses for a sixth consecutive session as it struggled in negative territory for all of pit trade. Prices rose to a session high of $3.30 per MMBtu but quickly pulled back and eventually settled 1.5% lower at $3.26 per MMBtu.
Feb gold traded higher for the first time in five sessions ahead of tomorrow's Fed decision. In addition, the weaker dollar index following lower-than-anticipated Consumer Confidence data also supported gold's advance. The yellow metal brushed a session high of $1665.00 per ounce and settled for a 0.5% gain at $1660.60 per ounce.
Silver also traded in the black for its entire floor session. It trended higher after brushing a session low of $31.05 per ounce and eventually settled with a 1.4% gain at $31.20 per ounce.

DJ30 +86.08 NASDAQ +1.94 SP500 +8.93 NASDAQ Adv/Vol/Dec 1243/1654.8 mln/1232 NYSE Adv/Vol/Dec 1654/500 mln/1298

3:00 pm : Equities are holding their levels as trade enters the final hour. The S&P 500 is higher by 0.5% as defensive sectors lead. Health care, telecoms, and utilities are all up in excess of 0.7%. In addition, energy stocks are adding 1.4% as crude oil nears $100 per barrel.

On the downside, the technology space is seeing broad weakness. Seagate (STX 33.64, -3.77) beat on earnings and revenue, but the cautious guidance issued by the company caused the stock to slide 9.8%. However, today's decline may be exacerbated by the fact Seagate has roared higher by nearly 50% in the eight weeks leading into last night's report.

The market will receive earnings from another notable tech component. The Capital IQ consensus expects Amazon.com (AMZN 266.93, -9.11) to report earnings of $0.27 on $22.26 billion in revenue. An in-line report would translate to year-over-year earnings decline of 28.9%.DJ30 +69.27 NASDAQ -3.29 SP500 +7.05 NASDAQ Adv/Vol/Dec 1207/1.45 bln/1269 NYSE Adv/Vol/Dec 1610/451.5 mln/1347

2:30 pm : The major averages are holding their recent levels as today's rotation into defensive-oriented sectors remains underway. Health care, telecoms, and utilities are among the top performers while technology and discretionary stocks are trading in the red.

The technology sector is underperforming amid broad weakness. VMware (VMW 78.00, -20.31) is a notable laggard, which is plunging 20.7% after the company beat on earnings, but provided a somewhat bearish outlook.

The underperformance of tech shares comes even as Apple (AAPL 457.11, +7.28) bulls attempt to retake control of the stock. AAPL is adding 1.6% after the company announced a 128GB version of its fourth generation iPad device.DJ30 +68.94 NASDAQ -3.94 SP500 +6.83 NASDAQ Adv/Vol/Dec 1202/1.33 bln/1247 NYSE Adv/Vol/Dec 1607/416.8 mln/1349

2:00 pm : Equity indices are holding near their respective highs as quiet afternoon trade continues. Health care stocks are among today's leaders after drug makers Eli Lilly (LLY 54.59, +1.95) and Pfizer (PFE 27.68, +0.84) reported earnings ahead of the Capital IQ consensus estimate.

Elsewhere, the energy sector is also seeing relative strength. Upbeat earnings are one of the contributing causes behind the relative strength of the sector. Valero (VLO 43.21, +4.40) is soaring 11.4% after the refinery crushed its earnings estimates by $0.59. The energy sector is also receiving support from crude oil, which is adding 0.9% to $97.29.

As the broader market pushes higher, the CBOE Volatility Index (VIX 13.05, -0.52) is lower by 3.8%. Today's decline comes after the past two sessions saw the volatility measure settle in the black.DJ30 +72.51 NASDAQ -1.92 SP500 +7.44 NASDAQ Adv/Vol/Dec 1248/1.23 bln/1187 NYSE Adv/Vol/Dec 1657/385.7 mln/1290

1:35 pm : The major averages continue to trade near their respective highs. The S&P 500 and Dow are adding 0.5% each despite an earlier stumble caused by a disappointing January consumer confidence report.

Health care stocks are contributing to today's advance after Eli Lilly (LLY 54.80, +2.16) and Pfizer (PFE 27.68, +0.84) reported healthy quarterly results. Note that today's buying has lifted Pfizer to its best level in seven years.

On the downside, technology stocks continue to underperform. VMware (VMW 77.91, -20.41), which issued cautious guidance earlier, is down 20.8% as it remains near its session lows.DJ30 +68.90 NASDAQ -2.30 SP500 +6.73 NASDAQ Adv/Vol/Dec 1230/1.13 bln/1179 NYSE Adv/Vol/Dec 1623/353.9 mln/1304

1:05 pm : The major averages are trading in mixed fashion at midday. The S&P 500 is adding 0.4% while Nasdaq is off by 0.1%. The two indices are trading on opposite sides of their respective flat lines as earnings dictate the day's sentiment. The S&P 500 saw a brief morning stumble after the Conference Board said that January consumer confidence declined to 58.6, which fell short of the 65.1 expected by the Briefing.com consensus.

Though, the S&P 500 fell to its lows immediately following the announcement, the index halted its slide in the 1498 area, and headed to fresh highs. The health care sector has contributed to the advance as the space trades higher by 1.0%. The strength is partly due to upbeat quarterly results from Eli Lilly (LLY 54.64, +2.00) and Pfizer (PFE 27.72, +0.88). The two drug makers are seeing respective gains of 3.8% and 3.2%.

Strong earnings were not isolated to health care names. Homebuilder DR Horton (DHI 23.57, +2.26) is surging 10.7% after its earnings handily beat the Capital IQ consensus estimate. Other builders are gaining on the back of DR Horton's returns and the SPDR S&P Homebuilders ETF (XHB 28.98, +0.17) is higher by 0.6%.

While homebuilders are shining brightly among discretionary stocks, the sector is the biggest laggard. Weakness among for-profit education providers is contributing to the underperformance as New Oriental Education (EDU 16.28, -1.62) sinks 8.9% after its earnings disappointed investors.

Another quarterly report of note lies among discretionary stocks. Ford Motor (F 13.03, -0.75) beat on earnings and revenue, but the stock is shedding 5.4%. It should be noted that Ford saw gains of nearly 20.0% thus profit taking was to be expected. While the carmaker expressed concerns about its European sales, the remarks stayed true to form with comments made during past earnings calls.

The bulk of today's disappointing earnings can be found in the tech sector. Though Apple (AAPL 457.23, +7.40) is higher by 1.6%, the tech sector trades flat. Seagate (STX 34.00, -3.41) and VMware (VMW 77.88, -20.44) are down 9.1% and 20.7% respectively. Although the two companies reported earnings ahead of expectations, their guidance painted a somewhat cloudy outlook.

In addition to the previously mentioned consumer confidence, the market also received the November Case-Shiller 20-city Home Price Index. The index rose 5.5%, while a 5.2% increase had been expected by the Briefing.com consensus.DJ30 +66.95 NASDAQ -1.86 SP500 +6.56 NASDAQ Adv/Vol/Dec 1263/1.04 bln/1137 NYSE Adv/Vol/Dec 1643/328.5 mln/1273

12:30 pm : The S&P 500 is adding 0.3% as the benchmark average trades just beneath its session high. The bullish sentiment is holding strong despite a brief stumble after the Conference Board reported January consumer confidence at 58.6, which fell short of the 65.1 forecast by the Briefing.com consensus. The index tested support in the 1498 area before bargain hunters emerged, and pushed it to fresh highs.

As the S&P 500 climbs higher, the consumer discretionary sector is weighing on the broader market. Notably, Ford (F 12.99, -0.79) is sliding 5.7% despite beating on earnings and revenue. Shares of Ford have gained more than 19.0% in the eight weeks leading into last night's report so profit taking in the wake of upbeat earnings is not out of the ordinary. Regarding outlook, the company expects its 2013 operating profit to be in-line with its full-year 2012 results.

Elsewhere in discretionary shares, for-profit education stocks are broadly lower after New Oriental Education (EDU 16.37, -1.53) missed on earnings.

While discretionary shares weigh on the market, health care and energy stocks are contributing to today's advance. The two sectors are adding more than 1.0% each.DJ30 +54.31 NASDAQ -7.08 SP500 +4.29 NASDAQ Adv/Vol/Dec 1154/939.9 mln/1222 NYSE Adv/Vol/Dec 1540/296.8 mln/1377

12:00 pm : The S&P 500 and Dow are hovering near their recent highs. Meanwhile, the Nasdaq is seeing little change after recovering earlier losses. The tech-heavy index continues to lag as cautious guidance from Seagate (STX 34.15, -3.26) and VMware (VMW 78.36, -19.96) weighs on the sector. VMware fell hard immediately following its forecast, while Seagate has seen steady selling so far today. The two stocks are seeing respective losses of 20.6% and 8.6%.

Elsewhere, the S&P 500 is trading at its session high with energy and health care stocks in the lead. Both sectors are benefitting from upbeat quarterly results as they pace the advance. Among health care stocks, Boston Scientific (BSX 7.26, +0.39) is surging 5.7% after beating on the top line.

In the energy sector, Valero (VLO 42.02, +3.20) is soaring 8.3% after the refinery operator beat on earnings and revenue. Also of note, crude oil is adding 1.4%. The energy component is currently at $97.75.DJ30 +53.72 NASDAQ -2.03 SP500 +4.60 NASDAQ Adv/Vol/Dec 1196/860.9 mln/1170 NYSE Adv/Vol/Dec 1541/269.9 mln/1352

11:30 am : The major averages are holding their recent levels. The S&P 500 and Dow are climbing higher while the Nasdaq remains in the red. The tech-heavy index is being pressured by several names which beat on earnings, but issued cautious guidance. Notably, VMware (VMW 79.00, -19.32) and Seagate (STX 33.77, -3.64) are down 19.7% and 9.5% respectively. However, the tech sector is receiving support from Apple (AAPL 458.83, +9.00), which is adding 2.0%.

Elsewhere, the S&P 500 has surpassed its earlier session high, and the benchmark index is now firmer by 0.4%. The index is showing strength despite a mid-morning stumble after January consumer confidence was reported well below expectations. As the S&P 500 pushes to fresh highs, energy and health care stocks are pacing the advance.DJ30 +59.28 NASDAQ -0.79 SP500 +5.21 NASDAQ Adv/Vol/Dec 1245/763.2 mln/1085 NYSE Adv/Vol/Dec 1601/242.1 mln/1284

11:00 am : The major averages continue to trade in mixed fashion with Nasdaq as the main laggard. The tech-heavy index is down 0.3%. Meanwhile, the S&P 500 and Dow are seeing respective gains of 0.2% and 0.3%.

The Nasdaq is underperforming after several index components reported earnings. Though most results met or exceeded analyst expectations, forward guidance proved to be a point of concern. VMware (VMW 79.98, -19.34) is plunging 19.7% after the company forecast its first quarter and full-year 2013 revenue below consensus.

Elsewhere, EMC (EMC 23.58, -1.62), which owns 80% of VMware, and Seagate (STX 34.19, -3.22) are both down in excess of 6.5%. The two beat on earnings, but guided cautiously. Notably, Seagate is slipping after the stock has soared almost 50% since the start of December.

While the Nasdaq continues to trade near its session low, the S&P 500 is nearing its high despite an earlier stumble caused by a disappointing consumer confidence report. The January reading of 58.6 fell short of the 65.1 expected by the Briefing.com consensus. In addition, the expectations component fell 8.5 points to 59.6. The decline is notable as the expectations index hovered above 80 just three months ago.DJ30 +36.74 NASDAQ -9.53 SP500 +2.26 NASDAQ Adv/Vol/Dec 1100/611.3 mln/1207 NYSE Adv/Vol/Dec 1462/198.8 mln/1383

10:35 am : Crude oil futures took off this morning and crossed over the $97 level. This actually happened just minutes before the dollar index began to sell off. The index fell in the red earlier and now just hit a new LoD of 79.54. Crude oil is currently +0.6% at $97.03/barrel.

Natural gas is extending losses from yesterday and is now down about 6.6% from Friday's session high, after just falling to a new session low. In current activity, Mar natural gas is now -1.0% at $3.27/MMBtu.

Precious metals have been in positive territory all session. Feb gold rose as high as $1665.00 just after the stock market opened and is now +0.5% at $1660.30/oz. Mar silver just hit its own new HoD of $31.27/oz a short while ago. Silver is now +1.2% at $31.16/oz. Mar copper is +0.2 at $3.67/lb.DJ30 +27.22 NASDAQ -16.17 SP500 +0.30 NASDAQ Adv/Vol/Dec 985/504.9 mln/1288 NYSE Adv/Vol/Dec 1339/169 mln/1491

10:00 am : The major averages continue to trade in mixed fashion. The S&P 500 and Dow are registering modest gains while the Nasdaq is off by 0.4%.

The latest consumer confidence reading for January came in at 58.6, while economists polled by Briefing.com expected a reading of 65.1. This follows the prior month's revised reading of 66.7.DJ30 +17.51 NASDAQ -11.58 SP500 +0.50 NASDAQ Adv/Vol/Dec 834/279.2 mln/1347 NYSE Adv/Vol/Dec 1345/111.2 mln/1383

09:45 am : The major averages are trading in mixed fashion following a lower open. The S&P 500 and Dow are registering slim gains while the Nasdaq is down 0.4%.

The underperformance from the tech-heavy index comes after several components beat on earnings, but issued cautious guidance. VMware (VMW 77.62, -20.70) is plunging 21.2% after the company issued cautious guidance and announced plans to cut about 7% of its workforce.

Elsewhere, EMC (EMC 23.48, -1.72) and Seagate (STX 34.53, -2.88) are both down near 7.0% after the two issued cautious guidance as well.

In economic news, the November Case-Shiller 20-city Home Price Index rose 5.5%, while a 5.2% increase had been expected by the Briefing.com consensus. Today's economic data will be topped off with the 10:00 ET release of the January consumer confidence report.DJ30 +6.25 NASDAQ -11.21 SP500 +0.21 NASDAQ Adv/Vol/Dec 794/155.1 mln/1235 NYSE Adv/Vol/Dec 1256/76.4 mln/1387

09:16 am : [BRIEFING.COM] S&P futures vs fair value: -1.50. Nasdaq futures vs fair value: -3.00. As the open of the cash session nears, equity futures are pointing to a modestly lower start with the S&P 500 futures off by 0.2%.

The market has received a fair share of earnings announcements between yesterday's close and today's open. In general, a vast majority of the companies beat on the bottom line, but a fair share of names issued guidance which the market found disappointing. EMC (EMC 23.95, -1.25) and VMware (VMW 80.00, -18.32) are among the names which beat on earnings, but guided cautiously. The two are down 5.0% and 18.6% respectively.

In today's economic data, the November Case-Shiller 20-city Home Price Index rose 5.5%, while a 5.2% increase had been expected by the Briefing.com consensus. This follows the prior month's increase of 4.3%.

The market will also receive the January consumer confidence report. This announcement is scheduled for 10:00 ET.

The U.S. Treasury will auction off $35 billion in 5-yr notes.

09:01 am : [BRIEFING.COM] S&P futures vs fair value: -1.70. Nasdaq futures vs fair value: -4.30. Equity futures have lifted off their lows, but they continue to trade in the red. The S&P 500 futures are off by 0.2%.

The November Case-Shiller 20-city Home Price Index rose 5.5%, while a 5.2% increase had been expected by the Briefing.com consensus. This follows the previous month's increase of 4.3%.

08:30 am : [BRIEFING.COM] S&P futures vs fair value: -2.40. Nasdaq futures vs fair value: -5.00.

U.S. equity futures continue to trade near their pre-market lows with the S&P 500 futures off by 0.3%.

The major Asian bourses ended mostly higher with Australia's ASX and South Korea's Kospi both climbing 1.1% to lead the way. In a widely expected move, the Reserve Bank of India lowered its benchmark interest rate 25 basis points to 7.75%. By doing so, the Reserve Bank became the first major central bank to cut rates in 2013. Data out overnight saw both Australia's NAB Business Confidence (3 actual v. -9 previous) and South Korea's Manufacturing BSI Index (76 actual v. 73 previous) improve versus prior readings.

In Japan, the Nikkei added 0.4% as financials led the way. Sumitomo Mitsui Financial (+4.4%) was the top performer in the group while rival Mizuho Financial (+2.9%) also recorded a strong gain. Elsewhere, mobile phone operator KDDI jumped 2.8% after raising its full-year profit forecast by 1%.
Hong Kong's Hang Seng shed 0.1%, sliding for the fourth time in five days. Shares of ICBC gave up 2.2% after Goldman Sachs announced it sold 1.35 billion shares, raising $1 billion. Peer Agricultural Bank of China piggybacked the news with its own loss of 0.9%. Meanwhile, Sands China ticked up 1.6% as traders speculate next month's earnings will see a boost after receiving regulatory approval to add table games.
In China, the Shanghai Composite gained 0.5% to enter a bull market as it is now up 20% off its December lows. Brokerage firms remained strong as Citic Securities and Haitong Securities rallied 4.3% and 7.3% respectively after yesterday's announcement to open up more holdings to short selling and margin trading.

European markets are mostly lower, but their losses are limited. Looking at economic data, Germany's import price index slipped 0.5%, while a decline of 0.2% was broadly expected. Meanwhile, the country's GfK consumer climate was reported at 5.8, which was slightly better than the reading of 5.7 forecast by the consensus. Elsewhere, French consumer confidence was reported at 86, in-line with expectations. Also of note, Spanish retail sales fell 10.7% year-over-year, which was worse than the expected decline of 8.9%.

In news, Eurozone and Russian officials are discussing ways to involve Russia in the Cypriot bailout. Note that Russia has granted Cyprus a EUR2.5 billion loan in 2011. Shifting to another troubled sovereign, Eurozone commissioner Olli Rehn said that Spain's targets could be relaxed if the country's economy deteriorates further.

The United Kingdom's FTSE is adding 0.1% as miners see relative strength. Anglo American is rising by 2.3% after JPMorgan Chase said the miner's $4 billion charge taken for a Brazilian unit was near the low end of estimates. On the downside, financials are underperforming after the Wall Street Journal reported U.S. authorities are aiming for a guilty plea in the alleged LIBOR manipulation case. Royal Bank of Scotland is down 5.3% and Barclays is off by 2.0%.
Germany's DAX is down 0.2%. Drug maker Bayer is sliding 1.9% after the company was hit with a lawsuit alleging failure to warn of risks associated with a contraceptive device manufactured by the company. On the upside, ThyssenKrupp is adding 1.9% after reports indicated the company may be close to selling its Brazil and North Americas units.
In France, the CAC is slipping 0.2% as financials weigh. Credit Agricole and Societe Generale are both down near 3.0%. Meanwhile, exporter Renault is the top performer, up 2.0%.

08:00 am : [BRIEFING.COM] S&P futures vs fair value: -3.00. Nasdaq futures vs fair value: -7.50.

U.S. equity futures are modestly lower amid cautious European trade. The S&P 500 futures are off by 0.4% as traders appear to favor the wait-and-see mindset with the results of the Federal Reserve's two-day policy meeting on tomorrow's schedule. The meeting will be concluded with an interest rate decision and a policy statement at 14:15 ET. Tomorrow, the market will also receive the advanced fourth quarter GDP reading ahead of the open. The Briefing.com consensus expects fourth quarter growth to come in at 1.0%.

Looking at overseas developments:

Asian markets finished generally higher. Japan's Nikkei added 0.4%, China's Shanghai Composite gained 0.5% while Hong Kong's Hang Seng shed 0.1%.
In economic data:
New Zealand reported a trade surplus of NZD486 million, which was ahead of the NZD106 million deficit expected by the general consensus.
Australia's NAB business confidence was reported at 3, ahead of the -9 reported in the prior month.
The Reserve Bank of India cut its key interest rate by 25 basis points to 7.75%.This decision was widely expected. In addition, the central bank also cut its cash reserve ratio by 25 points to 4.00%.
Looking at news:
UBS believes China could implement new policy restrictions during National People's congress. Limits on auto sales may be implemented as part of the reforms.

European markets are mostly lower, but their losses are limited. France's CAC is off by 0.3%, Germany's DAX is shedding 0.2% while the United Kingdom's FTSE is adding 0.1%.
Looking at economic data:
Germany's import price index slipped 0.5%, while a decline of 0.2% was broadly expected. Meanwhile, the country's GfK consumer climate was reported at 5.8, which was slightly better than the reading of 5.7 forecast by the consensus.
French consumer confidence was reported at 86, in-line with expectations.
Spanish retail sales fell 10.7% year-over-year, which was worse than the expected decline of 8.9%.
In news:
Eurozone and Russian officials are discussing ways to involve Russia in the Cypriot bailout. Note that Russia has granted Cyprus a EUR2.5 billion loan in 2011.
Eurozone commissioner Olli Rehn said that Spain's targets could be relaxed if the economy deteriorates further.

In U.S. corporate news:

Seagate (STX 35.16, -2.25) is down 6.0% after the company reported earnings following yesterday's close. Though Seagate beat on earnings and revenue, the cautious guidance issued by the company sparked a round of profit taking after the stock had ran nearly 50% since December 1.
Ford Motor (F 13.47, -0.31) is down 2.2% despite beating on earnings and revenue. In addition, the company said its first quarter production is expected to show an improvement of more than 10% as compared to the first quarter of last year.
Corning (GLW 12.56, +0.41) is higher by 3.4% after the company beat on earnings and revenue.

Today's economic data will include the November Case-Shiller 20-city Index, which will be reported at 9:00 ET. In addition, January consumer confidence will cross the wires at 10:00 ET.

The U.S. Treasury will auction off $35 billion in 5-yr notes.

06:29 am : [BRIEFING.COM] S&P futures vs fair value: -2.50. Nasdaq futures vs fair value: -7.50.

06:29 am : Nikkei...10866.72...+42.40...+0.40%. Hang Seng...23655.17...-16.70...-0.10%.

06:29 am : FTSE...6287.38...-7.00...-0.10%. DAX...7817.03...-16.00...-0.20%.

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 @ http://stocktwits.com/wrbtrader

http://www.thestrategylab.com
Phone: +1 708 572-4885
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