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 @ $460.00 dollars or +4.60 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 @ $460.00 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=1430

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, Oil CL & Brent futures, Eurex DAX 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.

Stocks Slip On New Europe Fears


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

NEW YORK (CNNMoney)
U.S. stocks sank Monday, with the Dow retreating from the 14,000 milestone as concerns about European politics weighed on the market.

The Dow Jones industrial average fell 129 points, or 0.9%. The S&P 500 fell 0.8% and the Nasdaq lost 0.6%. On Friday, the Dow surged to close above 14,000 for the first time since October 2007, putting an all-time high in sight.

European markets closed sharply lower as concerns about political instability in the eurozone resurfaced. The DAX index in Germany and France's CAC 40 both fell more than 2%.

"Politics have been an important driver today," Scotiabank analyst Camilla Sutton wrote in a note to clients, pointing to corruption allegations against the Spanish Prime Minister and a banking scandal in Italy ahead of this month's election.

The sell-off comes after a strong rally for U.S. stocks in January. The Dow gained 5.9% last month, making it the best January performance since 1994. Given the recent strength, many analysts had suggested that stocks were due for a pullback.

"Last week is a tough act to follow," said Art Hogan, a managing director at Lazard Capital Markets.

Hogan said stocks could struggle for direction this week as corporate earnings season winds down and the flow of economic data is relatively light. But stocks could find some support as investors who missed out on the recent rally look for opportunities to get back in, he added.

"I don't think this is the beginning of a reversal of fortune," said Hogan.

Meanwhile, investors found little solace in economic data and corporate results released Monday.

The Census Bureau said new orders for manufactured goods rose 1.8% in December, which was weaker than expected. Economists had forecast a 2.4% increase in orders, according to estimates from Briefing.com.

Shares of Standard & Poor's owner McGraw-Hill (MHP, Fortune 500) plunged after the company said the U.S. Department of Justice would be suing it over favorable ratings tied to mortgage-related securities before the 2008 financial crisis. S&P rival Moody's (MCO) fell sharply as well.

Royal Caribbean Cruises (RCL) reported a fourth-quarter loss, but said it expects demand to improve this year in North America, while Europe will remain weak. Gannett (GCI, Fortune 500) shares fell nearly 7% after the media company said earnings excluding restructuring costs rose in the fourth quarter.

Yum! Brands (YUM, Fortune 500) will report after the close. Disney (DIS, Fortune 500) and BP (BP) will release quarterly results on Tuesday.

Shares of Dell (DELL, Fortune 500) were down 2.6% despite more reports that the company could go private early this week. Microsoft (MSFT, Fortune 500) is reportedly poised to assist in financing the deal.

Facebook (FB) shares fell more than 5%, as the social networking site marked the ninth anniversary since its inception. The company reported strong earnings and sales increases last week but investors were still disappointed by a slowdown in mobile advertising growth.

Herbalife (HLF)shares rose despite a report in the New York Post said the company is being investigated by the Federal Trade Commission. In a statement, Herbalife said it was unaware of any investigation and disputed the newspaper's claims.

BlackBerry, formerly Research In Motion, began trading under a new ticker symbol, BBRY. Shares surged more than 15% after analysts at Bernstein upgraded the stock.

Fear & Greed Index still showing Extreme Greed

Asian markets ended mixed. The Shanghai Composite added 0.4% and Japan's Nikkei advanced 0.6%, while the Hang Seng declined 0.2%.

Oil prices sank 1.6%, while gold prices edged higher. The yield on the 10-year U.S. Treasury note was unchanged at 2%. The U.S. dollar gained versus the euro, but lost value against the British pound and Japanese yen.




Market Update

3:30 pm :

Mar crude oil fell deeper into negative territory as a strong dollar index and renewed concerns over the European debt crisis put pressure on prices. The energy component brushed a session low of $95.89 per barrel and settled with a 1.6% loss at $96.18 per barrel.
Mar natural gas climbed up to a session high of $3.35 per MMBtu but retreated towards the unchanged line in afternoon floor trade. It eventually settled with a 0.6% gain at $3.32 per MMBtu.
Apr gold lifted off its session low of $1661.80 per ounce set in morning action and broke into positive territory about two hours later. It continued to inch higher in afternoon action despite strength in the dollar index. The yellow metal settled 0.3% higher at $1676.30 per once, just below its session high of $1678.60 per ounce.
Mar silver, on the other hand, lost momentum as it headed into afternoon floor trade. It pulled-back from its session high of $31.92 per ounce and settled 0.7% lower at $31.72 per ounce.

DJ30 -110.39 NASDAQ -41.02 SP500 -14.74 NASDAQ Adv/Vol/Dec 645/1537.5 mln/1840 NYSE Adv/Vol/Dec 662/451 mln/2366

3:00 pm : With sixty minutes left during today's session, the major averages have yet to stage a significant move away from their respective lows. The S&P 500 is shedding 0.8% while Nasdaq is down 1.1% as it underperforms. Today's sentiment was dictated by cautious European trade where controversy continues to envelop Italian financials as well as the Spanish ruling party.

U.S. equities have faced selling pressure throughout the day as all ten S&P 500 sectors trade in the red. Financials are displaying weakness after their European counterparts underperformed notably. Meanwhile, the tech sector is lagging as Apple (AAPL 445.40, -8.22) trades with a loss of 1.8%. In addition, Oracle (ORCL 35.15, -1.05) is slipping 2.9% after the company acquired Acme Packet (APKT 29.24, +5.31) for $29.25 per share. The transaction price represents a 22.2% premium to Acme's Friday closing price.

The remainder of the week will be busy in terms of earnings as more than 450 companies covered by Briefing.com are scheduled to report their quarterly results before the weekend. Following today's close, YUM! Brands (YUM 65.06, -0.87) is expected to report year-over-year fourth quarter earnings growth of 9.3%. The Capital IQ consensus expects the restaurant operator to reveal earnings of $0.82 on $4.12 billion in revenue.DJ30 -97.61 NASDAQ -36.43 SP500 -12.59 NASDAQ Adv/Vol/Dec 695/1.37 bln/1794 NYSE Adv/Vol/Dec 688/401.8 mln/2341

2:30 pm : Equities are holding their recent levels as afternoon trade continues. Today's session saw European worries resurface as Spanish and Italian stocks faced a broad sell-off due to ongoing controversy. In Italy, investigators are looking into derivative deals conducted by several banks. Meanwhile, markets in Spain were rattled by a deepening alleged kickback scheme involving Prime Minister Mariano Rajoy.

As the health of the European financial system returns into question, domestic banks are subject to cautious trade. Goldman Sachs (GS 146.77, -3.13) and Morgan Stanley (MS 22.88, -0.62) are among the weakest performers as the two see respective losses of 2.1% and 2.7%.

In addition to financials, the tech sector is exerting pressure on the broader market. Oracle (ORCL 35.15, -1.05) is lower by 2.9% after the company acquired Acme Packet (APKT 29.24, +5.31) for $29.25 per share. The transaction price represents a 22.2% premium to Acme's Friday closing price.DJ30 -114.31 NASDAQ -38.21 SP500 -13.79 NASDAQ Adv/Vol/Dec 672/1.29 bln/1797 NYSE Adv/Vol/Dec 691/372.3 mln/2322

2:00 pm : Quiet trade continues as the major averages remain confined to the bottom of their respective ranges. The S&P 500 is off by 1.0% as European worries continue to weigh. This morning, markets in Italy and Spain saw broad sell-offs amid continued controversy. In Italy, regulators continue to investigate banks for failing to disclose large derivative losses. Meanwhile, Spanish politicians, including Prime Minister Mariano Rajoy, have been the subject of an alleged kickback scheme dating back to 1997.

Domestically, financials are among the weakest performers as the stability of the region's capital markets is called into question. The SPDR Financial Select Sector ETF (XLF 17.43, -0.18) is shedding 1.0%.

Additionally, technology stocks saw relative strength in the early going, but the sector has been pressured since. Apple (AAPL 443.43, -10.19) has been a notable recent underperformer as the largest tech stock trades lower by 2.3%. Elsewhere, Dell (DELL 13.28, -0.36) is slipping 2.6% after earlier reports indicated the company's leveraged buyout will likely be near $13.50 per share, with Microsoft (MSFT 27.53, -0.40) investing about $2 billion. Today's reports follow last week's indications suggesting the deal would net between $15 and $16 per share.DJ30 -126.80 NASDAQ -41.39 SP500 -15.08 NASDAQ Adv/Vol/Dec 642/1.18 bln/1835 NYSE Adv/Vol/Dec 633/341.1 mln/2357

1:30 pm : The major averages are holding their recent levels as trade continues near the bottom of the day's range. The S&P 500 is shedding 1.0% after European worries returned to the forefront. Stocks sold-off at the open as downbeat overseas trade weighed on European financials. In Italy, regulators continue to investigate Monte Paschi, as well as others, for failing to disclose large derivative losses. Elsewhere, Spain's IBEX was pressured as the alleged kickback scheme involving Prime Minister Mariano Rajoy and his ruling party continues to ripple through the markets.

Domestically, financials are lagging after their European counterparts registered notable losses. The SPDR Financial Select Sector ETF (XLF 17.45, -0.16) is lower by 0.9%.

In addition to financials, the nine remaining S&P 500 sectors are trading in the red as well. Utilities are outperforming as the sector trades with a loss of just 0.4%.DJ30 -122.10 NASDAQ -40.88 SP500 -14.73 NASDAQ Adv/Vol/Dec 652/1.11 bln/1814 NYSE Adv/Vol/Dec 651/321.5 mln/2338

1:00 pm : The major averages have spent the first half of today's session in the red. At midday, the S&P 500 is down 0.9% as European worries return to the forefront. The old continent saw losses across all of its main indices, but peripheral markets were the driving force.

In Italy, the MIB ended lower by 4.5% with notable weakness among financials. Banks underperformed as authorities continue to investigate Monte Paschi as well as others.

Meanwhile, Spain's IBEX fell 3.8% in its second session since the short-selling ban expired. Equities in Spain lagged as Prime Minister Mariano Rajoy has become the subject of an alleged kickback scheme dating back to 1997.

With European equities selling-off broadly, financials were among the worst performers with weakness spilling over to their U.S. counterparts. The SPDR Financial Select Sector ETF (XLF 17.45, -0.16) is off by 0.9% and Morgan Stanley (MS 23.08, -0.43) is one of the weakest performers among the majors, down 1.8%.

In addition to financials, consumer discretionary and technology stocks are both seeing losses near 1.0%. Discretionary stocks are seeing weakness as homebuilders trade broadly lower. The SPDR S&P Homebuilders ETF (XHB 28.46, -0.29) is slipping 1.0%.

Meanwhile, tech shares are exhibiting weakness with the largest sector component, Apple (AAPL 444.30, -9.32), down 2.0%.

Elsewhere in technology, Dell (DELL 13.21, -0.42) is slipping 3.1% after earlier reports indicated the company's leveraged buyout will likely be near $13.50 per share, with Microsoft (MSFT 27.60, -0.33) investing about $2 billion. Today's reports follow last week's indications suggesting the deal would net between $15 and $16 per share.

In notable earnings, Humana (HUM 78.90, +3.55) is adding 4.7% after reporting mixed results. Though the insurer beat on the bottom line, its revenue missed expectations. In addition, the company issued mixed guidance. For the first quarter, Humana expects its earnings to come in ahead of consensus estimates while its revenue is expected to fall short of analyst estimates.

The CBOE Volatility Index (VIX 14.53, +1.63) is adding over 10.0% as near-term downside protection receives considerable interest during today's session.DJ30 -121.70 NASDAQ -38.72 SP500 -14.08 NASDAQ Adv/Vol/Dec 650/1.01 bln/1800 NYSE Adv/Vol/Dec 651/294.3 mln/2321

12:30 pm : Downbeat trade continues with the S&P 500 down 1.0%. The major averages have seen steady selling since the open as European worries creep back into the markets. Specifically, Italian regulators have begun investigating several banks for improprieties while Spain's Prime Minister Mariano Rajoy has found himself in the middle of an alleged kickback scheme dating back to 1997. The news caused markets in Italy and Spain to lose in excess of 3.5% during today's session.

The weakness among European financials is being felt domestically as well with the SPDR Financial Select Sector ETF (XLF 17.42, -0.19) down 1.1%.

Elsewhere, consumer discretionary, health care, and tech sectors are all down near 1.0%.DJ30 -132.70 NASDAQ -37.80 SP500 -14.68 NASDAQ Adv/Vol/Dec 608/924.8 mln/1825 NYSE Adv/Vol/Dec 634/270.1 mln/2305

12:00 pm : The major averages have continued their push to fresh lows with the S&P 500 shedding 1.0%. The downbeat sentiment manifested itself at the open as worries over scandals in Italy and Spain prompted broad selling across European markets. The core indices fell between 1.5% and 3.0% while Italy's MIB and Spain's IBEX ended with respective losses of 4.5% and 3.8%. Italian financials were pressured over the course of the day, and the weakness is spilling over to U.S. banks.

The financial sector is the weakest performer among S&P 500 sectors. The SPDR Financial Select Sector ETF (XLF 17.43, -0.18) is down 1.0% and Morgan Stanley (MS 22.92, -0.59) is the biggest laggard among the majors, down 2.5%.

In notable earnings, Humana (HUM 78.70, +3.35) is adding 4.5% after reporting mixed results. Though the insurer beat on the bottom line, its revenue missed expectations. In addition, the company issued mixed guidance. For the first quarter, Humana expects its earnings to come in ahead of consensus estimates while its revenue is expected to fall short of analyst estimates.DJ30 -131.60 NASDAQ -39.03 SP500 -15.12 NASDAQ Adv/Vol/Dec 625/816.8 mln/1799 NYSE Adv/Vol/Dec 621/242.5 mln/2314

11:30 am : The major averages continue to trade within points of their respective lows as the European session draws to a close. The old continent was in focus this morning as regional indices experienced a broad sell-off. Markets in Italy and Spain led the declines with Italy's MIB falling nearly 4.0% while Spain's IBEX lost over 3.0%. In Italy, financials fell 6.0% in aggregate as regulators in Trani continue to investigate the country's banks. Meanwhile, Spanish Prime Minister Mariano Rajoy has been the subject of corruption allegations made by El Pais, Spain's largest daily newspaper.

U.S. financials are trading lower following the weakness observed in their European counterparts. The SPDR Financial Select Sector ETF (XLF 17.44, -0.17) is down 1.0% and the ETF represents the weakest S&P 500 sector.

Also of note, microprocessor manufacturers, which outperformed in early trade, have now recoupled with the broader market. The PHLX Semiconductor Index is down 0.7%.

With today's selling pressure, the CBOE Volatility Index (VIX 14.00, +1.10) is adding nearly 9.0%. Across the futures complex, February and April contracts are seeing the most notable rise.DJ30 -115.60 NASDAQ -34.51 SP500 -13.14 NASDAQ Adv/Vol/Dec 651/710.1 mln/1743 NYSE Adv/Vol/Dec 646/215.1 mln/2256

11:00 am : The major averages continue to trade near their lows. The S&P 500 is down 0.8% with all ten sectors trading lower. Stocks opened the day on a cautious note as downbeat European trade weighed on sentiment. Investors in Italy and Spain have turned their focus to two recent scandals. Italian markets are being pressured by an ongoing investigation of the country's financials. Today, Italian banks listed on the MIB are down 6.0% in aggregate with five of eight experiencing halts on their way down.

Elsewhere, Spain is underperforming as the alleged kickback scheme involving Prime Minister Mariano Rajoy threatens to further upset the markets. Mr. Rajoy, who is visiting Berlin today, was greeted by a protest organized by Spanish expatriates.

Domestically, financials are among the weakest performers as their European counterparts lag noticeably. Bank of America (BAC 11.54, -0.17) and Morgan Stanley (MS 22.91, -0.60) are among the weakest performers as they trade with respective losses of 1.5% and 2.6%. Meanwhile, the SPDR Financial Select Sector ETF (XLF 17.45, -0.15) is off by 1.0%.

On the upside, technology stocks are holding up relatively well as the PHLX Semiconductor Index trades flat, ahead of the broader market.DJ30 -120.10 NASDAQ -21.94 SP500 -12.25 NASDAQ Adv/Vol/Dec 696/560.5 mln/1663 NYSE Adv/Vol/Dec 649/181.1 mln/2219

10:35 am : Commodities are mostly lower this morning lower this morning, while the dollar index continues to trade higher.

Crude oil futures really sold off this morning, falling as low as $96.07/barrel. Crude has been in the red all session so far and after erasing some losses, it is still down 1.2% at $96.65/barrel.

Natural gas futures surged higher earlier this morning, pushing back into positive territory and to a new HoD of $3.34/MMBtu. In current trade, nat gas is +0.7% at $3.32/MMBtu.

Precious metals have also been in the red all session. Apr gold is now -0.2% at $1666.90/oz and Mar silver is -0.9% at $31.67/oz. Mar copper is currently -0.2% at $3.78/lb.DJ30 -116.00 NASDAQ -16.38 SP500 -11.11 NASDAQ Adv/Vol/Dec 737/449.1 mln/1589 NYSE Adv/Vol/Dec 668/153 mln/2166

10:00 am : The major averages saw little change in reaction to the latest factory orders data. The S&P 500 is down 0.5%.

December factory orders rose 1.8%, which fell below the 2.4% increase expected by the Briefing.com consensus. Today's uptick follows last month's unchanged reading.DJ30 -81.67 NASDAQ -12.09 SP500 -7.34 NASDAQ Adv/Vol/Dec 789/261.9 mln/1475 NYSE Adv/Vol/Dec 798/104.1 mln/1948

09:45 am : The major averages are trading near their early lows following a downbeat open. The S&P 500 is off by 0.6% with the initial weakness stemming from cautious European trade. Benchmark indices in France, Germany, and the United Kingdom are all down in excess of 1.0%. Meanwhile, Italy's MIB and Spain's IBEX are down 3.0% and 1.8% respectively. Italian stocks are pressured by an ongoing investigation into the country's banks. Elsewhere, Spanish Prime Minister Mariano Rajoy has become entangled in a corruption scandal, which has sparked calls for his resignation from opposition leaders.

Domestically, all ten S&P 500 sectors are trading in the red. Energy, health care, and financials are among the weakest performers in the early going. Meanwhile, utilities and telecoms are outperforming as they register slimmer losses than the broader market.

In acquisition news, Acme Packet (APKT 29.31, +5.38) is surging 22.5% after the networking company was acquired by Oracle (ORCL 35.92, -0.28) for $29.25 per share. The transaction price represents a 22.2% premium to Acme's Friday closing price.

The day's lone economic data point will come in the form of December factory orders. This report will hit the wires at 10:00 ET.DJ30 -109.10 NASDAQ -15.88 SP500 -9.61 NASDAQ Adv/Vol/Dec 633/161.1 mln/1575 NYSE Adv/Vol/Dec 718/79.9 mln/1963

09:19 am : [BRIEFING.COM] S&P futures vs fair value: -8.20. Nasdaq futures vs fair value: -13.50. Heading into the open, equity futures are pointing to a modestly lower start. The S&P 500 futures are off by 0.4%. The pre-market weakness follows downbeat European trade where markets in Italy and Spain face notable selling pressure. In Italy, regulators are investigating several banks for concealing derivative losses and other improprieties. Meanwhile, Spanish markets are pressured after the country's largest daily newspaper, El Pais, alleged Prime Minister Mariano Rajoy has withdrawn up to EUR250,000 from his party's secret accounts. The withdrawals date back to 1997 when Mr. Rajoy was the party's Deputy Secretary General.

In U.S. earnings news, Sysco (SYY 32.42, +0.33) is adding 1.0% despite missing on earnings.

Elsewhere, Humana (HUM 74.98, -0.37) is shedding 0.5% after reporting mixed earnings. The insurer beat on the bottom line, but fell short of revenue estimates. In addition, the company guided first quarter revenue below consensus.

Volatility is expected to increase at the open, with the iPath S&P 500 VIX ST Futures ETN (VXX 23.88, +0.79) currently higher by 3.4% in pre-market trade.

Today's economic data will be limited to December factory orders. This report will be released at 10:00 ET.

09:04 am : [BRIEFING.COM] S&P futures vs fair value: -9.50. Nasdaq futures vs fair value: -17.00.

U.S. equity futures are lower this morning, alongside weakness in Europe (DAX -1.5%, CAC -1.5%, Spain's IBEX -2.2%, Italy's MIB -2.7%). The move to lows in futures coincided with a move to lows in the major European averages and a move lower in the euro (currently -0.5% at 1.3572). As mentioned in prior comments, the weakness in Europe follows weekend political issues.

Looking at yields, Italy's 10-yr benchmark yield is adding 13 basis points, to 4.33% while Spain's 10-yr is higher by 20 basis points, to 5.41%. In notable economic data points, Spanish unemployment change came in slightly better than feared. The actual increase of 132,100 fell short of the expected 150,000. The Eurozone Sentix investor confidence was reported at -3.9, which was worse than the generally expected -3.0. Meanwhile, the region's PPI declined 0.2% month-over-month, in-line with expectations. Also of note, the United Kingdom's construction PPI of 48.7 fell short of the broadly expected 49.1.

In news, Spanish Prime Minister Mariano Rajoy rejected the corruption allegations made by El Pais-Spain's highest-circulation daily newspaper. To recap, El Pais has brought to public light ledger books allegedly belonging to Rajoy's People's Party. The accounting books indicate Mr. Rajoy has received as much as EUR250,000 in regular payments dating back to 1997 when he was the party's Deputy Secretary General. Opposition leaders, as well as civilian protesters, have called on Mr. Rajoy to submit his resignation.

Italy's MIB is down 2.7% as several listings experience trading halts on their way down. Notably, UniCredit and defense contractor Finmeccanica are both down near 5.0% after being halted. Italian stocks continue to underperform as regulators continue their investigation into derivative deals conducted by several financials, including the world's oldest bank, Banca Monte dei Pasci di Siena
Spain's IBEX is sliding 2.2% as the political scandal envelops financial markets. Construction names as well as financials are among the biggest decliners. Acciona is down 4.0% and Banco Santander is lower by 3.2%.
In the United Kingdom, the FTSE is slipping 1.2% as several miners underperform. Antofagasta and Kazakhmys are down 4.2% and 3.7% respectively. On the upside, Randgold Resources is higher by 4.2% after reporting strong earnings
France's CAC is down 1.5% as industrials and financials underperform. Credit Agricole is sliding 2.7% and Vallourec is shedding 3.6%.
In Germany, the DAX is down 1.5%. Commerzbank is lower by 4.8% after recording a fourth quarter loss of EUR720 million, its largest quarterly loss in three years.

The major Asian bourses ended mixed with some giving up their early gains that came in response to Friday's U.S. jobs report. Also helping regional bourses was the uptick in China's Non-Manufacturing PMI (56.2 actual v. 56.1 previous), which grew at its fastest pace since August. Data from the rest of the region was quiet with Australian building approvals slipping 4.4% month-over-month (1.1% expected). The Reserve Bank of Australia will opine tonight with analysts expecting the central bank to stand pat at 3.00%.

In Japan, the Nikkei added 0.6% to end at its best level in 33 months. Electronics maker Sharp surged 17% (limit up) after posting better than expected earnings and reaffirming its full-year forecast. Elsewhere, financials remained strong as Sumitomo Financial climbed 5.6% to lead the sector's advance.
In Hong Kong, the Hang Seng shed 0.2% after early buying saw the index hit a fresh 21-month high. The losses came despite outperformance from property developers, which saw New World Development and Sino Land tack on 2.3% and 1.0% respectively.
In China, the Shanghai Composite gained 0.4% to end at its best level in nine months. Coal-based energy stocks were strong as China Shenhua Energy added 1.0% and China Coal Energy gained 2.7%. Meanwhile, mobile phone manufacturer ZTE slumped 8.1% on word the U.S. International Trade Commission is investigating the space.

Volatility is expected to increase at the open, with the iPath S&P 500 VIX ST Futures ETN (VXX 23.88, +0.79) currently higher by 3.4% in pre-market trade.

08:30 am : [BRIEFING.COM] S&P futures vs fair value: -10.00. Nasdaq futures vs fair value: -18.50. U.S. equity futures have slipped to fresh pre-market lows with the S&P 500 futures down 0.5%. Downbeat pre-market trade continues as European indices trade near their lows. Peripheral indices are contributing to the notable underperformance as the Italian MIB and Spanish IBEX trade with respective losses of 2.5% and 2.0%.

In Italy, financials are under considerable pressure as the country's regulators investigate five banks for improprieties. Today, a handful of shares on the Italian exchange were halted on their way down. Financial Unicredit and defense contractor Finmeccanica were among those affected by trading halts.

Elsewhere, Spain's IBEX is extending its recent weakness after Spain's largest daily newspaper, El Pais, alleged Prime Minister Mariano Rajoy has been involved in his party's kickback scheme dating back to 1997. Opposition leaders have called on Mr. Rajoy to resign. However, the prime minister claims no wrongdoing has taken place.

08:00 am : S&P futures vs fair value: -5.90. Nasdaq futures vs fair value: -7.30.

U.S. equity futures are modestly lower amid downbeat European trade. The S&P 500 futures are off by 0.2%.

Looking at overseas developments:

Asian markets finished mixed. China's Shanghai Composite added 0.4%, Japan's Nikkei gained 0.6% while Hong Kong's Hang Seng shed 0.2%.
In economic data:
Japan's monetary base expanded 10.9% year-over-year, while growth of 13.2% was broadly expected.
Australian building approvals fell 4.4% month-over-month, while an uptick of 1.0% was forecast by the market.
Looking at news:
Japan has released the Chinese fishing boat, which had been detained off the coast of Okinawa.
Reports indicate South Korea and the United States will conduct a joint naval exercise aimed at discouraging North Korea from attempting another nuclear test.

European markets are broadly lower with peripheral indices underperforming. Germany's DAX is shedding 0.8%, the United Kingdom's FTSE is slipping 0.9%, and France's CAC is down 1.0%. Also of note, the Italian MIB and Spanish IBEX are seeing respective losses of 2.4% and 2.0%. In peripheral yields, Italy's 10-yr yield is adding nine basis points, to 4.41% while Spain's 10-yr is higher by 16 basis points, to 5.21%.
Looking at notable economic data points:
The Spanish unemployment change came in slightly better than feared. The actual increase of 132,100 fell short of the expected 150,000.
The Eurozone Sentix investor confidence was reported at -3.9, which was worse than the generally expected -3.0. Meanwhile, the region's PPI declined 0.2% month-over-month, in-line with expectations.
The United Kingdom's construction PMI of 48.7 fell short of the broadly expected 49.1.
In news:
Over the weekend, Spanish Prime Minister Mariano Rajoy rejected the corruption allegations made by El Pais-Spain's highest-circulation daily newspaper. To recap, El Pais has brought to public light ledger books belonging to Rajoy's People's Party. The accounting books indicate Mr. Rajoy has received as much as EUR250,000 in regular payments dating back to 1997 when he was the party's Deputy Secretary General. Opposition leaders, as well as civilian protesters, have called on Mr. Rajoy to submit his resignation.
In Italy, Saipem is the only advancing stock on the MIB as shares of the oil-services company continue to rebound from Wednesday's 34% plunge. Remaining Italian stocks are underperforming as the regulators expand their investigation into at least five financials, including world's oldest bank, Banca Monte dei Pasci di Siena. Monte Paschi, which is closely linked to the front running party in the upcoming elections, came under scrutiny in recent days for hiding derivative losses as well as conducting a questionable acquisition.

In U.S. corporate news:

Cisco Systems (CSCO 20.90, +0.07) is adding 0.3% after Oppenheimer raised its target for the stock to $24.
Merck (MRK 41.28, -0.55) is slipping 1.3% following a pair of downgrades. The drug maker was downgraded to 'Market Perform' from 'Outperform' at Leerink Swann while Morgan Stanley cut the stock's rating to 'Underweight' from 'Equal-Weight.'
Randgold Resources (GOLD 100.31, +4.26) is higher by 4.5% after its reporting revenue in-line with the Capital IQ consensus estimate.

Today's economic data will be limited to December factory orders. This report will be released at 10:00 ET.

06:29 am : [BRIEFING.COM] S&P futures vs fair value: -4.50. Nasdaq futures vs fair value: -3.00.

06:29 am : Nikkei...11260.35...+69.00...+0.60%. Hang Seng...23685.01...-36.80...-0.20%.

06:29 am : FTSE...6313.06...-34.20...-0.50%. DAX...7797.56...-34.60...-0.40%.

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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