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 @ $2210.00 dollars or +22.10 points, EuroFX 6E futures @ $0.00 dollars or +0.0000 ticks and Light Crude Oil CL (WTI) futures @ $2770.00 dollars or +2.77 points. Total Profit @ $4980.00 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=114&t=1442

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=203&t=1751

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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, EuroFX 6E futures, Gold GC futures, Light Crude Oil (WTI) CL & Brent Oil futures, Eurex DAX futures, Euronext FTSE100 futures, Emini ES futures, Emini TF futures, Treasury ZB futures and U.S. Dollar Index 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.







4:30 pm : The S&P 500 settled lower by 1.2% after spending the entire session in negative territory.

Equities began the day on a lower note amid mixed housing data and hovered near their lows ahead of the Fed's minutes.

Stocks then fell to fresh lows after the minutes indicated Committee members saw little change to the economic outlook. Along those lines, members-with the exception of Esther George-maintained their support for the continuation of highly accommodative policy.

Homebuilders were under pressure after Toll Brothers (TOL 33.56, -3.34) reported its quarterly results this morning. The builder missed on earnings and revenue, but saw an increase to its backlog. In addition, the company raised its full-year 2013 gross margin guidance during its earnings call.

Homebuilders sold off in reaction to Toll's earnings and afternoon weakness pushed builder stocks further into the red. Peers PulteGroup (PHM 18.60, -1.35) and D.R. Horton (DHI 21.92, -1.37) were off 6.8% and 5.9% respectively.

Elsewhere among discretionary shares, Office Depot (ODP 4.18, -0.84) and OfficeMax (OMX 12.09, -0.91) announced the completion of their stock-for-stock merger. Competitor Staples (SPLS 13.60, -1.05) fell 7.2% on the news.

As a result of today's selling, six of 10 S&P 500 sectors lost over 1.0%. Energy and materials were the weakest performers in early trade, and continued lower during the afternoon. The energy sector saw some pressure from crude oil, which fell 2.4% and settled just under $95.00.

Elsewhere, materials underperformed as industrial and precious metals displayed notable weakness for the second consecutive session. In addition, chemical producer CF Industries (CF 207.07, -11.46) fell 5.2% after missing on the top line.

The tech space was another notable laggard. The largest sector component, Apple (AAPL 448.85, -11.14) lost 2.4% after reports indicated Foxconn, which assembles Apple products, has instituted a hiring freeze. However, the initial report was followed by stories suggesting the hiring freeze may not be related to changes in demand for Apple products. Instead, Foxconn could be making adjustments to better suit other companies it conducts business with.

The first half of the session saw outperformance from defensively-oriented consumer staples, telecoms, and utilities. Though these sectors succumbed to broad pressure in afternoon trade, they settled with slimmer losses than the broader market.

Today's sell-off stirred up some demand for downside protection. This was reflected by the CBOE Volatility Index (VIX 14.62, +2.31), which surged over 15.0%. In the futures market, VIX contracts saw buying interest as well with the largest moves apparent in front-month contracts.

Volume was well above average today as 816 million shares changed hands on the floor of the New York Stock Exchange.

Taking a final look at the day's S&P 500 sector alignment, materials (-2.8%), energy (-1.8%), consumer discretionary (-1.6%), and technology (-1.5%) stocks were among the biggest laggards. Meanwhile, consumer staples (-0.1%), telecoms (-0.2%), and utilities (-0.2%) withstood the brunt of the selling.

Looking back at today's economic data, January housing starts were reported at an annualized rate of 890,000 units, which fell short of the 914,000 expected by the Briefing.com consensus. However, the prior month's reading saw a substantial upward revision.

Additionally, building permits beat expectations and rose to 925,000. This report is seen as a leading indicator suggesting demand for new homes remains intact.

Tomorrow's economic data will be plentiful. At 8:30 ET, weekly initial and continuing claims, January CPI, and core CPI will all be released. Meanwhile, January existing home sales, leading indicators, and February Philadelphia Fed Survey will all be reported at 10:00 ET.DJ30 -108.13 NASDAQ -49.18 SP500 -18.99 NASDAQ Adv/Vol/Dec 546/1.92 bln/1963 NYSE Adv/Vol/Dec 715/816.0 mln/2327

3:30 pm :

Broad market weakness, a stronger dollar index, and speculation about a commodity fund running into trouble put pressure on the commodities complex during today's pit trade.
Apr crude oil pulled-back from its session high of $97.34 per barrel and trended lower into negative territory as floor trade progressed. It touched a session low of $94.33 per barrel and settled with a 2.0% loss at $95.20 per barrel.
Apr gold extended yesterday's losses and slumped below the $1600.00 per ounce level. The yellow metal dipped to a session low of $1575.60 per ounce and closed at $1578.40 per ounce, booking a loss of 1.6%. Prices have been inching lower in afternoon electronic trade following the release of FOMC minutes.
Mar silver also trended lower into negative territory as it retreated from its session high of $29.23 per ounce set at pit trade open. It brushed a session low of $28.42 and closed 2.8% lower at $28.61 per ounce.
Mar natural gas, on the other hand, extended yesterday's gains following chopping action in today's floor session. It fell off its session high of $3.31 per MMBtu to a session low of $3.26 per MMBtu in morning action. Despite the volatility, natural gas managed to recover into positive territory and settled 0.3% higher at $3.28 per MMBtu.

DJ30 -105.17 NASDAQ -43.81 SP500 -17.83 NASDAQ Adv/Vol/Dec 681/1567.8 mln/1809 NYSE Adv/Vol/Dec 718/516 mln/2271

3:00 pm : Heading into the final hour of trade, the major averages have pushed to fresh session lows. The S&P 500 is off by 0.9% as energy, materials, and technology lead to the downside.

Equities saw limited losses into the afternoon when selling accelerated and claimed some of the day's outperformers. Defensively oriented consumer staples, telecoms, and utilities have surrendered the bulk of their gains and the three sectors now trade flat.

The recent selling pressure is being reflected in the CBOE Volatility Index (VIX 13.55, +1.24). The near term volatility measure has jumped off its multi-year lows with VIX futures trading higher across the term structure as well.DJ30 -75.99 NASDAQ -35.86 SP500 -14.59 NASDAQ Adv/Vol/Dec 795/1.37 bln/1670 NYSE Adv/Vol/Dec 843/448.6 mln/2139

2:30 pm : The S&P 500 continues to trade near its lows after the Federal Reserve released the minutes from its January meeting. The report indicates Committee members saw little change to the economic outlook. Along those lines, members-with the exception of Esther George-maintained their support for the continuation of highly accommodative policy.

The dissent of Ms. George was a result of her belief that policy had become too accommodative. Ms. George believed that possible unintended side effects argued against continuing on the current path.

In addition, industrial reports suggested automotive, energy, and technology sectors have a more positive outlook than what was observed in the non-automotive manufacturing sector.DJ30 -18.84 NASDAQ -22.14 SP500 -7.88 NASDAQ Adv/Vol/Dec 932/1.23 bln/1516 NYSE Adv/Vol/Dec 1027/403.9 mln/1930

2:00 pm : The S&P 500 is off by 0.5% as the index continues to trade near its lows. Today's trade has been largely one-sided with sellers in control of the session. However, the selling effort has not put a major dent into the key averages. The Nasdaq is the weakest performer, down 0.7%.

The Nasdaq is lagging as Apple (AAPL 451.94, -8.13) trades lower by 1.8%. The largest tech stock is underperforming after reports indicated Foxconn implemented a recruitment freeze at their factories. Foxconn specializes in assembling electronics for Apple as well as other tech companies and it is unclear if the hiring freeze is directly related to change in demand for Apple products.DJ30 -24.42 NASDAQ -22.06 SP500 -8.38 NASDAQ Adv/Vol/Dec 903/1.11 bln/1543 NYSE Adv/Vol/Dec 1024/360.7 mln/1933

1:35 pm : Equities are holding their recent levels with the S&P 500 off by 0.4%. Although the benchmark average has spent the duration of the day in negative territory, its losses have been limited.

Higher risk sectors are behind today's weakness as energy, materials, and technology trade near their session lows. While the three sectors continue to hover in the red, consumer staples, telecoms, and utilities have continued building on their gains. The three sectors are up between 0.3% and 0.5%.

Today's selling has pushed the CBOE Volatility Index (VIX 13.22, +0.91) off multi-year lows. The near-term volatility measure is adding 7.4% as downside protection is receiving interest.DJ30 -22.00 NASDAQ -21.53 SP500 -7.48 NASDAQ Adv/Vol/Dec 890/1.05 bln/1550 NYSE Adv/Vol/Dec 1027/339.5 mln/1904

1:00 pm : At midday, the S&P 500 trades lower by 0.4%. The benchmark index has spent the duration of the day in negative territory as cautious trade continues to unfold.

Stocks began on a slightly lower note amid mixed economic data. For January, housing starts hit an annualized rate of 890,000 units. This fell short of the Briefing.com consensus which had expected a reading of 914,000. However, the prior month's reading saw a substantial upward revision.

Also of note, building permits beat expectations, and rose to 925,000. This report is seen as a leading indicator suggesting demand for new homes remains intact.

Although today's housing data was mixed, homebuilders are trading broadly lower and the iShares Dow Jones US Home Construction ETF (ITB 22.63, -0.70) is down 3.0%. The weakness follows a disappointing quarterly report from Toll Brothers (TOL 35.07, -1.83). Shares of Toll are shedding 5.0% after the company missed on earnings and revenue.

Remaining in the discretionary space, Office Depot (ODP 4.28, -0.74) and OfficeMax (OMX 12.39, -0.61) have announced the completion of their stock-for-stock merger.

While the discretionary sector trades in-line with the market, other high-beta sectors are underperforming.

The materials space is lagging with notable weakness in miners and metal producers. In addition, chemical producer CF Industries (CF 208.78, -9.75) is down 4.5% after missing on the top line.

Another pocket of weakness lies in the energy sector where some pressure is being exerted by today's 2.3% decline in the price of crude.

On the upside, defensively-oriented consumer staples, telecoms, and utilities are seeing gains between 0.2% and 0.4%.

Today's economic data will be topped off with the 14:00 ET release of FOMC minutes from the January meeting.DJ30 -9.15 NASDAQ -18.76 SP500 -6.21 NASDAQ Adv/Vol/Dec 925/946.8 mln/1486 NYSE Adv/Vol/Dec 1075/309.4 mln/1845

12:30 pm : The S&P 500 has added about two points after notching its lows in the 1522 area. Defensively-oriented sectors are outperforming as the benchmark index attempts to shake off the early weakness.

Meanwhile, the materials sector remains as the biggest laggard. The space is down near 2.0% with miners and metal producers as the weakest components. In addition, chemical producer CF Industries (CF 208.11, -10.42) is down 4.8% after missing on the top line.

Elsewhere, the energy sector is shedding 0.8% as crude oil trades lower by 2.2%.DJ30 -18.08 NASDAQ -17.74 SP500 -6.42 NASDAQ Adv/Vol/Dec 930/862.7 mln/1463 NYSE Adv/Vol/Dec 1065/284.8 mln/1832

12:00 pm : The major averages have continued to push lower in recent trade. The S&P 500 is off by 0.5% as the index nears its closing levels from last week.

Sector rotation appears to be the day's theme as high-beta materials, energy, and technology register the widest losses. Also of note, consumer discretionary stocks are seeing broad weakness among homebuilders. The iShares Dow Jones US Home Construction ETF (ITB 22.58, -0.75) is down 3.4% after Toll Brothers (TOL 34.82, -2.08) missed on earnings and revenue. In addition, January housing starts fell short of expectations while building permits were reported above consensus estimates.

On the upside, consumer staples, telecoms, and utilities are registering gains as defensive stocks receive notable buying interest.DJ30 -33.94 NASDAQ -20.33 SP500 -7.59 NASDAQ Adv/Vol/Dec 876/775.5 mln/1490 NYSE Adv/Vol/Dec 1022/255.5 mln/1856

11:35 am : Equities continue to trade in the red as the S&P 500 hovers near its lows. The benchmark index is off by 0.4% with materials and energy as the two weakest sectors.

Stocks in the materials space are underperforming across the board. Sector component CF Industries (CF 208.11, -10.42) is down 4.8% after reporting mixed earnings. The chemical producer beat on the bottom line but fell short of revenue expectations. Meanwhile, the remainder of the sector is registering broad losses as industrial and precious metals trade notably lower for the second day in a row.

Elsewhere, energy stocks are also among the weakest performers as crude oil trades lower by 2.1%.DJ30 -19.09 NASDAQ -15.55 SP500 -6.26 NASDAQ Adv/Vol/Dec 932/664.5 mln/1391 NYSE Adv/Vol/Dec 1040/223.7 mln/1808

11:05 am : The major averages continue to trade lower with the S&P 500 off by 0.4%. Today's session began after the release of some mixed housing data.

January housing starts were reported at 890,000, which was below the 914,000 expected by the Briefing.com consensus. However, with a solid increase in homes under construction, the headline number may reflect some seasonal volatility.

Meanwhile, building permits came in ahead of expectations suggesting builders are anticipating demand to remain intact.

Although data suggests key elements of demand remain healthy, homebuilders are trading lower today after Toll Brothers (TOL 35.15, -1.75) missed on earnings and revenue. The broader iShares Dow Jones US Home Construction ETF (ITB 22.76, -0.57) is lower by 2.5%.DJ30 -12.94 NASDAQ -12.32 SP500 -5.68 NASDAQ Adv/Vol/Dec 937/539.4 mln/1360 NYSE Adv/Vol/Dec 1028/182.1 mln/1786

10:30 am : Commodities are getting hammered today, while the dollar index is trading near its session high, in today's session in broad market weakness.

Gold prices fell back below the $1600 level in early morning action. In the most recent trading activity, gold and silver both continue to hit new session lows. Apr gold is now -1.4% at $1582.10/oz, while Mar silver is -2.8% at $28.58/oz.

Copper futures are also just above its session low and are currently -1.0% at $3.62/lb.

Crude oil futures chopped around the flat line earlier, but sold off in recent activity, falling below the $97 marker and to a new session low of $96.47/barrel. Currently, Apr crude oil is -0.5% at $96.66/barrel.

Natural gas was in positive territory all morning until selling off in recent activity. The energy component is now back in the black, currently showing a 0.5% gain at $3.29/MMBtu.DJ30 +12.13 NASDAQ -5.22 SP500 -2.39 NASDAQ Adv/Vol/Dec 1130/139 mln/1628 NYSE Adv/Vol/Dec 1006/393.8 mln/1217

10:00 am : The major averages continue to trade in the red, but their losses have been limited. The S&P 500 is the worst performing index, down 0.2%.

As early trade unfolds, defensively-oriented sectors have seen some buying interest. Consumer staples, telecoms, and utilities are outperforming after starting the session in-line with the broader market.

On the downside, materials are underperforming amid sector-wide weakness. The Materials Select Sector ETF (XLB 38.76, -0.42) is down 1.1%. Additionally, industrial metals are trading lower again today. Nickel and aluminum are down 2.0% and 0.5% respectively.DJ30 -8.64 NASDAQ -6.34 SP500 -3.08 NASDAQ Adv/Vol/Dec 981/250.9 mln/1192 NYSE Adv/Vol/Dec 1127/98.7 mln/1587

09:50 am : The major averages have slipped lower in early trade and the S&P 500 is off by 0.2%. Today's session followed the release of mixed economic data. While housing starts fell short of expectations, the prior month's reading saw an upward revision.

Looking at the early sector performance, defensively oriented consumer staples, telecoms, and utilities are registering gains. Meanwhile, the remaining seven sectors are trading lower.

In addition, Office Depot (ODP 5.48, +0.46) and OfficeMax (OMX 13.79, +0.79) have now confirmed the completion of their merger agreement. This comes after the initial announcement was released prematurely.DJ30 -2.00 NASDAQ -2.76 SP500 -2.24 NASDAQ Adv/Vol/Dec 1014/181.1 mln/1116 NYSE Adv/Vol/Dec 1190/78.2 mln/1466

09:18 am : [BRIEFING.COM] S&P futures vs fair value: +0.30. Nasdaq futures vs fair value: -0.80. Heading into the open, equity futures are signaling a flat start to the session. The markets will look to continue their upward climb as key indices hover at multi-year highs.

In today's economic data, housing starts hit an annualized rate of 890,000 units during January. Economists polled by Briefing.com had expected for housing starts to hit an annual rate closer to 914,000. Prior month figures were revised downward to reflect an annual rate of 973,000 housing starts. As for building permits, they increased from the prior month's rate of 909,000 to 925,000. That is below the pace of 918,000 permits that had been expected among economists polled by Briefing.com.

January producer prices rose 0.2%, which was cooler than the uptick of 0.3% forecast by the Briefing.com consensus. Core producer prices rose 0.2% which was slightly hotter than the expected uptick of 0.1%.

Also of note, recent reports have indicated Office Depot (ODP 5.32, +0.30) and OfficeMax (OMX 13.82, +0.82) have not yet completed their merger as previously reported. The earlier announcement was released prematurely.

09:03 am : [BRIEFING.COM] S&P futures vs fair value: +0.20. Nasdaq futures vs fair value: -0.50.

U.S. equity futures have turned positive in recent trade. The S&P 500 futures are now registering marginal gains.

It was a sea of green across Asia as all of the major bourses, asides from Bursa Malaysia (-0.1%), saw gains. South Korea's Kospi (+2.0%) was a notable outperformer as shares rallied on the hopes yesterday's ZEW survey was a sign things are improving in the Eurozone. Japan's Nikkei (+0.8%) rallied despite the country reporting a record trade deficit of JPY1.63 trillion. The deficit came as exports climbed 6.4% while imports increased 7.3%. Meanwhile, the latest reports suggest the search for the next Bank of Japan Governor has been narrowed to four candidates. Notable is the exclusion of Former Deputy Governor Toshiro Muto, who was considered to be the most 'hawkish' of the candidates. The Bank of Thailand opined overnight, opting to hold its key rate unchanged at 2.75%. Elsewhere, Reserve Bank of New Zealand Governor Graeme Wheeler was the latest central banker to suggest his country's currency was 'overvalued.' Data from the region saw Australia's Wage Price Index increase an in-line 0.8% quarter-over-quarter and its CB Leading Index slipped 0.1% month-over-month (-0.2% expected). Also released was Malaysia's GDP, which expanded 6.4% year-over-year (5.5% expected).

In Japan, the Nikkei gained 0.8%, climbing to its best level in almost four and a half years. Toyota Motor rallied 1.9% on reports the co was looking to increase production by 10%. On the downside, cigarette maker Japan Tobacco was a laggard, sliding 3.2%.
Hong Kong's Hang Seng finished higher by 0.7% to post its first gain in three days. Shares of Prada rallied 3.3% after posting an impressive 29% year-over-year revenue increase. Elsewhere, gaming stocks continued their declines with Galaxy Entertainment off another 0.9% following yesterday's 4.4% decline.
In China, the Shanghai Composite added 0.6% as property stocks recovered some of their recent losses. Gemdale gained 2.7% and China Vanke tacked on 2.1%. However, financials remained under pressure as Shanghai Pudong Development gave up 2.6%.

European indices are little changed with the United Kingdom's FTSE outperforming on the back of better-than-expected employment numbers. The country's claimant count declined 12,500, well ahead of the 5,000 drop expected by the market. However, the unemployment rate ticked up to 7.8% from its prior reading of 7.7%. In other economic data, Germany's PPI rose 0.8% month-over-month, hotter than the 0.3% rise expected by the market. Meanwhile, the year-over-year reading added 1.7%, ahead of the 1.2% increase expected by the general consensus. French CPI declined 0.5% month-over-month, cooler than the 0.2% downtick expected by the consensus. Italian industrial new orders fell 1.8% month-over-month. Meanwhile, expectations called for growth of 0.4%.

Looking at news, Spain's Prime Minister Mariano Rajoy said he will bring forth a new bill aimed at regulating party expenditures. Mr. Rajoy also said it is "unjust" to call Spain a corrupt country. In Greece, the first general strike of 2013 is taking place today. The country's two largest unions as well as doctors, lawyers, and teachers are among those taking place in today's demonstrations. Yesterday, members of the media took part in a strike of their own in order to provide full coverage of today's events.

In the United Kingdom, the FTSE is adding 0.4% as industrials outperform. Packaging producer Rexam is jumping 5.5% on the back of better-than expected earnings. On the downside, RSA Insurance is plunging 13.1% after the company slashed its dividend by 33%.
Germany's DAX is firmer by 0.2% with industrials in the lead. HeidelbergCement is adding 3.1% after French peer Lafarge reported strong earnings. Meanwhile, Deutsche Lufthansa is down 4.9% after suspending its dividend.
In France, the CAC is down 0.2% as consumer stocks underperform. Hotel operator Accor is lower by 4.2% after announcing plans to cut costs. On the upside, Lafarge is surging 6.9% after reporting better-than-expected earnings.

08:34 am : [BRIEFING.COM] S&P futures vs fair value: -0.80. Nasdaq futures vs fair value: -1.30. U.S. equity futures were little changed in reaction to the latest housing and producer price data. The S&P 500 futures continue to trade flat.

Housing starts hit an annualized rate of 890,000 units during January. Economists polled by Briefing.com had expected for housing starts to hit an annual rate closer to 914,000. Prior month figures were revised downward to reflect an annual rate of 973,000 housing starts. As for building permits, they increased from the prior month's rate of 909,000 to 925,000 for January. That is below the pace of 918,000 building permits that had been expected among economists polled by Briefing.com.

January producer prices rose 0.2%, which was cooler than the uptick of 0.3% forecast by the Briefing.com consensus. Core producer prices rose 0.2% which was slightly hotter than the expected uptick of 0.1%.

08:03 am : [BRIEFING.COM] S&P futures vs fair value: -0.70. Nasdaq futures vs fair value: -4.00.

U.S. equity futures are mixed amid cautious European trade. The S&P 500 futures are off by 0.1% while futures on the Dow are registering marginal gains.

Looking at overnight developments:

Asian markets climbed higher. China's Shanghai Composite added 0.6%, Hong Kong's Hang Seng advanced 0.7%, and Japan's Nikkei gained 0.8%.
Regional economic data was limited:
Chinese foreign direct investment declined 7.3% during the first eight weeks of the year. This follows the prior decline of 3.7%.
Japan's trade deficit of JPY0.68 trillion was worse than the deficit of JPY0.59 trillion expected by the market.
Australia's wage price index climbed 0.8% quarter-over-quarter, in-line with expectations.
Looking at news:
The list of candidates to replace Bank of Japan Governor Masaaki Shirakawa has been narrowed down to four names. Toshiro Muto, who was thought to be the favorite, is not among the finalists.
Reserve Bank of New Zealand Governor Graeme Wheeler said he is prepared to intervene in the event the New Zealand dollar strengthens and weighs on manufacturers.

European indices are mixed. France's CAC is down 0.2% while Germany's DAX is adding 0.2% and United Kingdom's FTSE is up 0.3%. Elsewhere, Italy's MIB is off by 0.3% and Spain's IBEX is shedding 0.4%.
Several notable economic data points were released across the region:
Germany's PPI rose 0.8% month-over-month, hotter than the 0.3% rise expected by the market. Meanwhile, the year-over-year reading added 1.7%, ahead of the 1.2% increase expected by the general consensus.
French CPI declined 0.5% month-over-month, cooler than the 0.2% downtick expected by the consensus.
Italian industrial new orders fell 1.8% month-over-month. Meanwhile, expectations called for growth of 0.4%.
The United Kingdom's claimant count declined 12,500, well ahead of the 5,000 drop expected by the market. However, the unemployment rate ticked up to 7.8% from its prior reading of 7.7%.
Looking at news:
Spain's Prime Minister Mariano Rajoy said he will bring forth a new bill aimed at regulating party expenditures. Mr. Rajoy also said it is "unjust" to call Spain a corrupt country.
In Greece, the first general strike of 2013 is taking place today. The country's two largest unions as well as doctors, lawyers, and teachers are among those taking place in today's demonstrations. Yesterday, members of the media took part in a strike of their own in order to provide full coverage of today's events.

In U.S. corporate news:

Office Depot (ODP 5.40, +0.38) has agreed to buy OfficeMax (OMX 13.75, +0.79) in an all-stock transaction. Per the agreement, Office Depot will issue 2.69 new shares of common stock for each outstanding share of Office Max. This values OfficeMax at $13.50 per share, representing a 3.8% premium to yesterday's closing price.
Toll Brothers (TOL 35.65, -1.25) is down 3.4% after missing on earnings and revenue. Peers D.R. Horton (DHI 23.00, -0.29) and KB Home (KBH 19.30, -0.20) are both down near 1.0% in sympathy.

The weekly MBA Mortgage Index slipped 1.7% to follow the prior week's 6.4% decline.

At 8:30 ET, January housing starts, building permits, PPI, and core PPI will all be announced. Lastly, the Federal Reserve will release the minutes from its latest meeting at 14:00 ET.

06:29 am : [BRIEFING.COM] S&P futures vs fair value: +0.50. Nasdaq futures vs fair value: +1.50.

06:29 am : Nikkei...11468.28...+95.90...+0.80%. Hang Seng...23307.41...+163.50...+0.70%.

06:29 am : FTSE...6401.97...+23.00...+0.40%. DAX...7767.16...+14.70...+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

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