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)
Phone: +1 708 572-4885
Free Chat Room: http://www.thestrategylab.com/tsl/forum/viewforum.php?f=164
Business Hours: 8am - 5pm est (Mon - Fri)
questions@thestrategylab.com (24/7)
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click on the above image to view today's performance verification

Price Action Trade Performance for Today: Emini TF ($TF_F) futures @ $200.00 dollars or +2.00 points, Emini ES ($ES_F) futures @ $1125.00 dollars or +22.50 points, Light Crude Oil CL ($CL_F) futures @ $0.00 dollars or +0.00 points, Gold GC ($GC_F) futures @ $0.00 dollars or +0.00 points and EuroFX 6E ($6E_F) futures @ $0.00 dollars or +0.0000 ticks. Total Profit @ $1325.00 dollars.

Russell 2000 Emini TF Futures: 1 tick or 0.10 = $10.00 dollars and there's more contract information @ The ICE
S&P 500 Emini ES Futures: 1 tick or 0.25 = $12.50 dollars and there's more contract information @ CMEGroup
Light Crude Oil CL (WTI) Futures: 1 tick or 0.01 = $10.00 dollars and there's more contract information @ CMEGroup
Gold GC Futures: 1 tick or 0.10 = $10.00 dollars and there's more contract information @ CMEGroup
EuroFX 6E Futures: 1 tick or 0.0001 = $12.50 dollars and there's more contract information @ CMEGroup

In addition, all of my trades were posted real-time in the chat room. You can read today's chat room logs for details about each one of my trades via price action trading from entry to exit (e.g. time, price, contract size) along with price action commentary as the trade traversed to its completion...all archived @ http://www.thestrategylab.com/ftchat/forum/viewtopic.php?f=120&t=1585

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. Simply, my trade method is applicable for position trading, swing trading and day trading.

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=216&t=1913

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Market Context Summaries

The below summaries by Bloomberg, CNNMoney, Reuters and Yahoo! Finance helps me to do a quick review of the fundamentals, FED/ECB/BOE/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 for price action trading 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 Higher After Nasdaq's 3-Hour Halt


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

NEW YORK (CNNMoney)
U.S. stocks closed higher Thursday even after a technical glitch at the Nasdaq OMX caused a trading halt in all Nasdaq-listed stocks and options for more than three hours.

The Nasdaq is home to more than 2,700 stocks, particularly technology giants such as Apple (AAPL, Fortune 500), Google (GOOG, Fortune 500) and Microsoft (MSFT, Fortune 500). Trading at the exchange was halted around 12:14 p.m. ET due to issues with "quote dissemination." Options trading was also halted, and the New York Stock Exchange and the BATS exchange had also halted all Nasdaq securities.

Nasdaq resumed trading first in shares of Atlantic America (AAME)at 3 p.m ET, following a 15-minute quote only period. All other securities began trading at 3:25 p.m. ET, also following a 15-minute quote only period. The quote only period, which is typically used during initial public offerings, allowed the Nasdaq to accept buy and sell orders, and investors were also able to cancel orders during the period.

When trading resumed, stocks picked up where they left off around the midday stoppage. The Dow Jones industrial average broke a six-day losing streak while the S&P 500 climbed nearly 1%. The Nasdaq advanced more than 1%.

But there was one notable exception. Shares of Nasdaq OMX (NDAQ)dropped 3.4%. Before the halt, the exchange's stock was up nearly 1%.

SEC spokesman John Nester said the agency is "monitoring the situation" and that it is "in close contact with the exchanges."

* Trading glitches a sad new market reality

The trading glitch could be another blow to investor confidence, which has been rattled over the years by the Flash Crash in 2010, Facebook's botched IPO, and more recently, a fat finger trade affecting China's stock market.

"We know machines run the show, but we're beginning to see glitches more and more frequently," said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research. "That doesn't help overall confidence among investors."

* Video - High speed trading showdown

Broader market: Despite troubles at the Nasdaq, the broader stock market rallied as positive economic data from both China and Europe gave investors some optimism. European markets moved solidly higher, while Asian markets ended mixed.

A survey of European purchasing managers pointed to signs that the economy may be stabilizing there. Better-than-expected data from Chinese factories gave glimmers of hope for Asia and the broader global economy.

Emerging markets break losing streak too. Indian markets also jumped higher after four consecutive trading days of steep losses. The Mumbai Sensex popped up by nearly 2%. Markets have fallen by 11% over the past month due to concerns about a flagging economy, political gridlock and an outflow of foreign investment money.

A retail rout: Looking at individual stocks on the move, several retailers plunged Thursday following weak quarterly numbers.

Abercrombie & Fitch (ANF) shares plummeted after the teen-oriented clothing retailer reported a slump in quarterly sales and profits and a terrible outlook.

Traders on StockTwits are worried. American Eagle Outfitters (AEO) also had a lousy earnings report this week. Aeropostale (ARO) shares tumbled in after-hours trading after the teen retailer also posted weak results.

CapitalObserver: Is there a demographic issue facing teen retailers? Hard to believe they are all just performing poorly $ANF $ARO $AEOsh

tickertutor: $ANF My guess is most "kids" in their demographic are looking to dress more adult with offerings from the likes of $KORS and others

Sears Holding (SHLD, Fortune 500)reported another quarterly loss as revenues continue to fall. Investors were not pleased.

StockTwits: #3: $SHLD is down 8%. Earnings missed the Street's estimates this morning. Two big misses since Eddie Lampert became CEO.

Ralphed: $SHLD "Kmart Sucks". Sears needs realize that loss and ditch them

GameStop (GME, Fortune 500) bucked the trend in retail. The video game seller's stock soared on better-than-expected earnings and strong guidance around the promise of new gaming consoles. Traders made light of how the stock, which has been a popular target of short sellers, continues to go higher despite many bears trying to talk it down.

* Video - GameStop soars on PS4, Xbox hopes

FinancialJuice: GameStop $GME says sees a 'significant positive' for console demand

broseidon: Anyone remember when Cramer said short $GME, quoting "its in a secular decline" BAHAHA... Cramermerica gets burned agian

In the world of tech, Hewlett-Packard (HPQ, Fortune 500) shares dropped after the company announced its latest earnings on Wednesday, showing that PC sales are still in the dumps. HP is still the top stock in the Dow this year though, as investors have high hopes for the turnaround plan of CEO Meg Whitman.

After the closing bell, Gap (GPS, Fortune 500) reported better-than-expected revenue and lifted its outlook, sending shares higher in after-hours trading.

Pandora (P) also reported upbeat earnings, but the stock tumbled in after-hours trading after the online radio company issued weaker-than-expected guidance.





4:15 pm : The major averages registered gains across the board, but a three-hour halt of all Nasdaq-listed issues prevented normal trading from taking place throughout the afternoon.

Stocks climbed out of the gate after upbeat survey data from China and the eurozone reassured investors. China's HSBC Manufacturing PMI jumped to 50.1 from 47.7 (48.3 expected) while the eurozone Manufacturing PMI improved to 51.3 from 50.3 (50.8 forecast). In addition, the Services PMI reading rose to 51.0 from 49.8 (50.2 expected).

The economic data provided a boost to growth-sensitive sectors as five of six cyclical groups registered gains larger than 1.0%. The technology sector lagged with an advance of 0.5%. The largest sector component, Apple (AAPL 502.96, +0.60), ended little changed and Dow member Hewlett-Packard (HPQ 22.22, -3.16) endured its worst session in two years, falling 12.5%, after reporting in-line results and saying it is unlikely to experience revenue growth in 2014.

Speaking of technology, the tech-heavy Nasdaq fell victim to an early-afternoon glitch that kept all member shares from trading for three full hours. The impact could be felt across other indices as they drifted inside narrow ranges on thin volume.

Once normal trading resumed during the final hour of the day, the major indices rose to fresh highs. The S&P tested its 50-day moving average, but could not settle above that level.

The energy sector finished atop the leaderboard with a gain of 1.4% as crude oil advanced 1.2% to $105.05 per barrel.

Interestingly, the discretionary sector also finished among the leaders despite weakness in the retail space. Recent quarterly reports from retailers have not reflected very well on consumer spending. That theme remained in effect today as Abercrombie & Fitch (ANF 38.53, -8.27) missed on earnings and revenue while guiding third quarter earnings below analyst expectations. The SPDR S&P Retail ETF (XRT 79.14, +0.12) ended little changed, but the discretionary sector climbed 1.1% with home builders contributing to the strength.

Treasuries registered losses as the benchmark 10-yr yield added nearly five basis point to 2.90%.

Trading volume was well below average with only 573 million shares changing hands on the floor of the NYSE as the afternoon Nasdaq halt took a bite out of activity.

Investors received a handful of economic data today. The initial claims level rose to 336,000 for the week ending August 17 from an upwardly revised 323,000 (from 320,000) for the week ending August 10. The Briefing.com consensus expected the initial claims level to increase to 337,000. The upward move in the initial claims level is likely just normal volatility. Over the past four weeks, moving average for initial claims has dropped to its lowest level since November 2007.

Separately, the Conference Board's Index of Leading Indicators increased 0.6% in July after holding flat in June. That was the strongest increase since increasing 0.8% in April. The Briefing.com consensus expected the index to increase 0.5%.

Since eight of the 10 components of the index are known prior to the release, the difference between the actual number and the consensus is typically minor. In this case, a smaller-than-expected decline in manufacturers' new orders of nondefense capital goods excluding aircraft was the likely cause for the small upside surprise.

Lastly, the June FHFA Housing Price Index rose 0.7% to follow last month's 0.8% increase.

Tomorrow's economic data will be limited to July new home sales with the report set to be released at 10:00 ET.DJ30 +66.19 NASDAQ +38.92 SP500 +14.16 NASDAQ Adv/Vol/Dec 1968/891.7 mln/519 NYSE Adv/Vol/Dec 2576/573.2 mln/480

3:35 pm :

Oct crude oil lifted off its session low of $103.80 per barrel moments after equities markets opened. It touched a session high of $105.18 per barrel and settled at $104.99 per barrel, or 1.1% higher
Sep natural gas extended yesterday's gains when a better-than-anticipated inventory build of 57 bcf (consensus called for a build of 66-69 bcf) pushed prices to a session high of $3.56 per MMBtu. It eventually settled with a 2.6% gain at $3.55 per MMBtu
Dec gold and Sep silver rose to their respective session highs of $1381.40 and $23.33 per ounce after data released this morning showed the initial claims level rose to 336,000 for the week ending Aug 17 from an upwardly revised 323,000 for the week ending Aug 10.
However, both metals pulled-back as they headed into afternoon floor trade. Gold settled just 60 cents higher at $1370.60 per ounce while closed at $23.03 per ounce, booking a 0.3% gain.

DJ30 +80.40 NASDAQ +34.02 SP500 +15.08 NASDAQ Adv/Vol/Dec 1850/645.4 mln/580 NYSE Adv/Vol/Dec 2520/370 mln/517

3:05 pm : The S&P 500 trades higher by 0.7% as today's session enters its final hour. The Nasdaq halt remains the story of the afternoon as the latest indications suggest trading on the exchange will resume at 15:25 ET after a 15 minute quote-only period. This marks a slight change from prior reports that stated trading was scheduled to resume at 15:10 ET.

Although equities have been inactive through most of the afternoon, trading in the foreign exchange market has continued without any hitches. The Dollar Index tested its 200-day moving average in the early going, but has slipped back into the 81.50 area since. However, the Index remains poised to end the session with a slim gain of 0.3%.DJ30 +55.34 NASDAQ +31.38 SP500 +12.28 NASDAQ Adv/Vol/Dec 1907/577.9 mln/535 NYSE Adv/Vol/Dec 2427/333.4 mln/611

2:30 pm : Afternoon action remains subdued as the Nasdaq halt enters its third hour. The suspension of Nasdaq-listed issues has taken a bite out of overall trading volume as only 315 million shares have changed hands on the NYSE with 90 minutes to go in today's session.

Recent reports indicate trading on the Nasdaq will resume around 14:45 ET after a 15-minute quoting-only period takes place. The initial resumption will only include symbols ZVZZT and AAIT while all other securities are expected to begin trading at 15:10 ET after they too experience 15-minute quoting periods.DJ30 +60.51 NASDAQ +31.38 SP500 +12.14 NASDAQ Adv/Vol/Dec 1906/577.9 mln/535 NYSE Adv/Vol/Dec 2449/314.5 mln/589

2:00 pm : The quiet afternoon continues as trading on the Nasdaq remains halted. Meanwhile, the S&P 500 has drifted back near its session high as it looks to make another run at its 50-day moving average, which sits just below 1,659.

Although equities have not moved much during the past 90 minutes, the commodity market saw crude oil spike to a fresh session high. The energy component trades up 1.0% at $104.87 per barrel.

Elsewhere in commodities, precious metals have retreated from their highs, but they remain in positive territory. Gold futures hold a slim gain of 0.1% while silver futures trade higher by 0.4% at their respective $1,372.00 and $23.05 per troy ounce.DJ30 +64.44 NASDAQ +31.38 SP500 +12.55 NASDAQ Adv/Vol/Dec 1906/577.9 mln/535 NYSE Adv/Vol/Dec 2482/298.9 mln/547

1:25 pm : There has been both a technical element and technological element behind today's trade. The latter manifested itself in a glitch that has caused a halt in the trading of Nasdaq securities for the last hour. CNBC, citing a Dow Jones report, said Nasdaq trading is expected to resume shortly.

The technical element, meanwhile, has been on display today and throughout the week for that matter. Specifically, the S&P 500 has had difficulty clearing resistance at its 50-day simple moving average (1656/1657). That was seen again when the opening rally took the S&P 500 as high as 1656.69 where it was promptly halted (but not for technological reasons).

Since 10:45 a.m. ET, the S&P has pretty much been trading in a narrow range of 1652-1655. That range may be broken when the issues surrounding the Nasdaq get worked out, but 1657 on the S&P 500 is the area to watch to see if today's buy-the-dip trade has some legs or if it once again causes the market's legs to get cut out from under it. DJ30 +47.53 NASDAQ +31.38 SP500 +11.08 NASDAQ Adv/Vol/Dec 1906/577 mln/533 NYSE Adv/Vol/Dec 2465/280 mln/531

1:00 pm : Equities have spent the entire first half of the session in positive territory after upbeat surveys from China and the eurozone helped spark a risk bid. China's HSBC Manufacturing PMI jumped to 50.1 from 47.7 (48.3 expected) while the eurozone Manufacturing PMI improved to 51.3 from 50.3 (50.8 forecast). In addition, the Services PMI reading rose to 51.0 from 49.8 (50.2 expected).

Although the major averages trade in the green, the magnitude of their gains varies across the indices. The Dow trades higher by 0.2%, S&P 500 sports a gain of 0.6%, and the Nasdaq outperforms with an advance of 0.9%.

While the Nasdaq trades ahead of the Dow and the S&P, its outperformance results from the relative strength of biotechnology. The iShares Nasdaq Biotechnology ETF (IBB 193.05, +1.94) is higher by 1.0%.

Meanwhile, the technology sector has not fared as well as other growth-sensitive areas. The group holds a modest gain of 0.1% while its largest component, Apple (AAPL 498.49, -3.87), underperforms. Also of note, Dow member Hewlett-Packard (HPQ 22.35, -3.03) registers its largest loss in two years after reporting in-line results and saying the company is unlikely to experience revenue growth in 2014.

Outside of technology, the remaining cyclical groups trade ahead of the broader market with energy and industrials in the lead.

The energy sector trades up 1.2% as crude oil adds 0.3% to $104.16 per barrel. Elsewhere, the industrial space holds a gain of 1.0% as transportation companies display solid gains. The Dow Jones Transportation Average is higher by 1.6%.

Interestingly, the discretionary sector is also among today's leaders despite weakness in the retail industry. Recent quarterly reports from retailers have not reflected very well on consumer spending. That theme remained in effect today as Abercrombie & Fitch (ANF 38.42, -8.38) missed on earnings and revenue while guiding third quarter earnings below analyst expectations. The SPDR S&P Retail ETF (XRT 78.96, -0.06) is little changed after seeing early gains. However, the consumer discretionary sector (+0.8%) hovers near its session high.

Trading activity slowed down to a crawl about an hour ago when an apparent glitch on the Nasdaq exchange caused halts in many stocks. The problem appears to be related to a quote dissemination issue, and it is not known when normal trading on the Nasdaq will resume.

Investors received a handful of economic data today. The initial claims level rose to 336,000 for the week ending August 17 from an upwardly revised 323,000 (from 320,000) for the week ending August 10. The Briefing.com consensus expected the initial claims level to increase to 337,000. The upward move in the initial claims level is likely just normal volatility. Over the past four weeks, moving average for initial claims has dropped to its lowest level since November 2007.

Separately, the Conference Board's Index of Leading Indicators increased 0.6% in July after holding flat in June. That was the strongest increase since increasing 0.8% in April. The Briefing.com consensus expected the index to increase 0.5%.

Since eight of the 10 components of the index are known prior to the release, the difference between the actual number and the consensus is typically minor. In this case, a smaller-than-expected decline in manufacturers' new orders of nondefense capital goods excluding aircraft was the likely cause for the small upside surprise.

Lastly, the June FHFA Housing Price Index rose 0.7% to follow last month's 0.8% increase.DJ30 +35.32 NASDAQ +31.38 SP500 +9.53 NASDAQ Adv/Vol/Dec 1908/576.9 mln/531 NYSE Adv/Vol/Dec 2446/269.1 mln/555

12:35 pm : Recent action hasn't produced much change in the major averages. This is partly due to an apparent glitch on the Nasdaq exchange causing halts in many stocks. The problem appears to be related to a quote dissemination issue and it is not known when normal trading on the Nasdaq will resume.

Elsewhere, the S&P 500 continues to hold its gain of 0.7% as energy and industrials remain in the lead.DJ30 +52.25 NASDAQ +31.38 SP500 +10.90 NASDAQ Adv/Vol/Dec 1910/575.8 mln/525 NYSE Adv/Vol/Dec 2481/251.9 mln/485

12:00 pm : The S&P 500 continues to hold its recent levels (+0.7%) while the Russell 2000 (+1.1%) trades just below its session high. Five of six cyclical sectors are trading with gains larger than the S&P while the tech space trails behind the remaining growth-sensitive groups.

Recent quarterly reports from retailers have not reflected very well on consumer spending. That theme remained in effect today as Abercrombie & Fitch (ANF 38.27, -8.53) missed on earnings and revenue while guiding third quarter earnings below analyst expectations. The SPDR S&P Retail ETF (XRT 79.02, 0.00) is little changed after seeing early gains. However, the consumer discretionary sector (+0.9%) is among today's leaders.

Elsewhere, countercyclical sectors lag broadly. Consumer staples and utilities are both up near 0.3% while the health care sector adds 0.4%. The lone decliner, telecom services, is lower by 0.1%.DJ30 +54.64 NASDAQ +31.20 SP500 +11.15 NASDAQ Adv/Vol/Dec 1887/550.2 mln/532 NYSE Adv/Vol/Dec 2477/230.2 mln/474

11:30 am : The S&P 500 is higher by 0.5% as most growth-oriented sectors trade ahead of the broader market after investors received some upbeat news from China and Europe. China's HSBC Manufacturing jumped to 50.1 from 47.7 (48.3 expected) while the eurozone Manufacturing PMI improved to 51.3 from 50.3 (50.8 forecast). In addition, the Services PMI reading rose to 51.0 from 49.8 (50.2 expected).

The upbeat surveys have provided support to cyclical groups, but this month's top sector, technology, trails behind the broader market. Dow component Hewlett-Packard (HPQ 21.95, -3.43) is enduring its worst session in two years after reporting in-line results and narrowing its full-year 2013 earnings guidance. In addition, the company said it is unlikely to experience revenue growth in 2014.

Although the tech sector underperforms, the Nasdaq trades ahead of the Dow and the S&P. Biotechnology has made a contribution to the advance as the iShares Nasdaq Biotechnology ETF (IBB 192.67, +1.56) adds 0.8%.DJ30 +33.20 NASDAQ +28.11 SP500 +8.94 NASDAQ Adv/Vol/Dec 1862/467.2 mln/545 NYSE Adv/Vol/Dec 2385/199.3 mln/557

11:00 am : The major averages have continued their climb and the S&P 500 now trades higher by 0.8% with the current levels coinciding with yesterday's session high. Nine of ten sectors trade with gains of at least 0.3% while the telecom services space holds a slim loss of 0.1%.

On the upside, energy, financials, and industrials are all up between 1.0% and 1.3% with energy providing leadership while crude oil adds 0.4% to $104.27 per barrel.

Treasuries have not been very active since the open and the benchmark 10-yr yield is unchanged at 2.89%.DJ30 +49.99 NASDAQ +35.06 SP500 +11.70 NASDAQ Adv/Vol/Dec 1906/381.6 mln/489 NYSE Adv/Vol/Dec 2469/168.9 mln/443

10:35 am : Commodities are mostly higher this morning following positive China and Eurozone econ data.

Copper futures rose as $3.37/lb following the data, but has since pulled back a few cents. Oct crude oil rallied overnight, hitting the current high for the day of $104.72. After erasing its gains earlier, falling back to the flat line, crude has managed to climb back up near its HoD. Oct crude oil is now +0.5% at $104.35/barrel.

Natural gas futures have been displaying nice strength all day so far and have been in positive territory all day. The Sept contract just hit a new HoD of $3.52/MMBtu ahead of the weekly EIA inventory data. Following the data, nat gas spiked to a new HoD of $3.55/MMBtu and is currently +2.4% at $3.54/MMBtu

Precious metals have climbed higher in recent action. Dec gold is now +0.5% at $1376.90/oz, while Sept silver is +1.1% at $23.22/oz. Sept copper is currently +0.8% at $3.33/lb.DJ30 +45.48 NASDAQ +32.30 SP500 +11.21 NASDAQ Adv/Vol/Dec 1850/295.1 mln/483 NYSE Adv/Vol/Dec 2413/138 mln/455

10:00 am : The S&P 500 trades higher by 0.5%.

The Leading Indicators report for July increased 0.6%. That followed no change in June and was better than the 0.5% increase expected by the Briefing.com consensus.DJ30 +20.62 NASDAQ +26.44 SP500 +7.80 NASDAQ Adv/Vol/Dec 1763/186.6 mln/491 NYSE Adv/Vol/Dec 2235/92.1 mln/537

09:45 am : The major averages began the session in positive territory. The S&P 500 trades higher by 0.5% as eight of ten sectors advance with cyclical groups contributing to the early strength. Consumer discretionary, financials, and materials are the top early performers with all three sectors holding gains between 0.6% and 0.7%.

Discretionary shares are among the leaders even after Abercrombie & Fitch (ANF 38.15, -8.65) continued the pattern of disappointing retail earnings with a miss on the top and bottom lines.

On the downside, rate-sensitive telecom services (-0.4%) and utilities (-0.1%) hold slim losses. On a related note, the benchmark 10-yr yield hovers at 2.89%.DJ30 +43.27 NASDAQ +29.65 SP500 +8.86 NASDAQ Adv/Vol/Dec 1730/100.4 mln/432 NYSE Adv/Vol/Dec 2125/61.0 mln/575

09:14 am : [BRIEFING.COM] S&P futures vs fair value: +4.50. Nasdaq futures vs fair value: +12.20. The S&P 500 futures trade higher by 0.5% as today's session appears poised for a modestly higher open. Index futures held slim overnight losses until a better-than-expected HSBC Manufacturing PMI from China and upbeat aggregate Eurozone PMI readings sparked a risk bid.

Treasury yields were in focus yesterday with the benchmark 10-yr yield ending the session at 2.86%. This morning, yields remain elevated with the 10-yr at 2.89%.

Today's initial claims report was largely in-line with expectations as claims increased to 336,000 for the week ending August 17 from an upwardly revised 323,000 (from 320,000) for the week ending August 10. The Briefing.com consensus expected the initial claims level to increase to 337,000. The upward move in the initial claims level is likely just normal volatility. Over the past four weeks, moving average for initial claims has dropped to its lowest level since November 2007.

Separately, the June FHFA Housing Price Index rose 0.7% to follow last month's 0.8% increase. The day's economic data will be topped off with the 10:00 ET release of July Leading Indicators.

09:00 am : S&P futures vs fair value: +4.60. Nasdaq futures vs fair value: +12.50. The S&P 500 futures hover near their highs with a gain of 0.5%.

Markets across Asia were mostly lower as only India's Sensex (+2.3%) and Hong Kong's Hang Seng (+0.4%) ended in the green. Today's advance was the first in five days for the Sensex and came despite the rupee hitting a record low 65.55 against the dollar. In addition to the rupee, Indonesia's rupiah, Malaysia's ringgit, and Thailand's baht all fell to multi-year lows against the greenback. Overnight, Fitch held its sovereign rating for India at 'BBB-' while maintaining a 'Stable' outlook. Elsewhere, China's Shanghai Composite (-0.3%) slipped despite the HSBC Flash Manufacturing PMI posting an expansionary reading of 50.1 (48.3 expected, 47.7 previous) as the better than expected number provided some push back against hopes Beijing would move to stimulate the economy. The Philippines PSEi tumbled 6.0% in its first session of the week. Data from the rest of the region was limited to Taiwan's unemployment rate, which held at 4.2%.

In Japan, the Nikkei shed 0.4% as trade closed at its lowest level in nearly two months. Exporters were generally stronger thanks to the weaker yen as Honda Motor added 0.7% and Toyota tacked on 0.3%. Meanwhile, Tokyo Electric Power sank another 4.1% as it deals with leaking radioactive water.
Hong Kong's Hang Seng added 0.4% as commodity-related plays led the way. China Shenhua Energy rallied 2.3% and Jiangxi Copper tacked on 1.5%. Elsewhere, telecom equipment maker ZTE gained 1.5% following its better than expected quarterly results.
In China, the Shanghai Composite slipped 0.3% amid a choppy trade. Brokerage firms remained weak as the fallout continued from last week's flash smash higher. Everbright Securities gave up another 2.8% before being halted midday.

Major European indices trade with solid gains across the board after core economies reported their preliminary PMI readings. Germany's Manufacturing PMI climbed to 52.0 from 50.7 (51.2 consensus) while the Services PMI increased to 52.4 from 51.3 (51.8 expected). Elsewhere, French Manufacturing PMI remained unchanged at 49.7 (50.3 forecast) while the Services PMI slipped to 47.7 from 48.6 (49.2 expected). As a result, the aggregate Eurozone Manufacturing PMI increased to 51.3 from 50.3 (50.8 forecast) while the Services PMI rose to 51.0 from 49.8 (50.2 expected). Separately, Swiss trade surplus narrowed to CHF2.38 billion from CHF2.82 billion (CHF2.91 billion expected). In headlines of note, Bank of England member Martin Weale said the central bank has not ruled out implementing fresh stimulus measures.

In Great Britain, the FTSE is higher by 0.9% as miners outperform following upbeat HSBC Manufacturing PMI data from China. Antofagasta, Glencore Xstrata, and Vedanta Resources are all up between 2.6% and 3.0%.
France's CAC trades up 0.9% as financials lead the way. BNP Paribas and Societe Generale are both up near 2.5%. On the downside, Publicis Groupe holds a loss of 0.8%.
In Germany, the DAX holds a gain of 1.1% as 28 of 30 components trade higher. Commerzbank and Deutsche Bank are in the lead with respective advances of 4.6% and 2.4%. K+S and Merck are the only two decliners as they sport respective losses of 1.9% and 0.5%.

In domestic economic data, the June Housing Price Index from the FHFA increased 0.7%, which follows a 0.8% uptick observed during the prior month.

08:32 am : [BRIEFING.COM] S&P futures vs fair value: +2.30. Nasdaq futures vs fair value: +8.20. The S&P 500 futures trade higher by 0.4%.

The latest weekly initial jobless claims count totaled 336,000, which was slightly lower than the 337,000 that had been expected by the Briefing.com consensus. Today's tally was above the revised prior week count of 323,000. As for continuing claims, they rose to 2.999 million from 2.970 million.

07:56 am : [BRIEFING.COM] S&P futures vs fair value: +1.50. Nasdaq futures vs fair value: +7.70. U.S. equity futures hold modest gains amid mostly upbeat overseas action. The S&P 500 futures are higher by 0.3%.

Looking at overnight developments:

Asian markets ended on a mixed note. Japan's Nikkei -0.4%, China's Shanghai Composite -0.3%, and Hong Kong's Hang Seng +0.4%.
In regional economic data:
China's HSBC Manufacturing PMI jumped to 50.1 from 47.7 (48.3 expected).
Japan's weekly foreign bonds buying report indicated net sales of JPY903.80 billion.
Australia's CB Leading Index slipped 0.2% month-over-month (0.0% prior).
Looking at news:
In India, the rupee continued its slide to fresh record lows against the dollar with the dollar/rupee pair rising to a session high of 65.56 before slipping back to its current 64.90.

Major European indices trade with solid gains following mostly upbeat PMI readings from the region as well as strong Manufacturing PMI from China. Great Britain's FTSE +0.8%, France's CAC +1.1%, and Germany's DAX +1.1%.
Economic data was limited to just a handful of reports:
Eurozone Manufacturing PMI increased to 51.3 from 50.3 (50.8 forecast) while the Services PMI rose to 51.0 from 49.8 (50.2 expected).
Germany's Manufacturing PMI climbed to 52.0 from 50.7 (51.2 consensus) while the Services PMI increased to 52.4 from 51.3 (51.8 expected).
France's Manufacturing PMI remained unchanged at 49.7 (50.3 forecast) while the Services PMI slipped to 47.7 from 48.6 (49.2 expected).
Swiss trade surplus narrowed to CHF2.38 billion from CHF2.82 billion (CHF2.91 billion expected).
In news:
Bank of England member Martin Weale said the central bank has not ruled out fresh stimulus measures.

In U.S. corporate news:

Abercrombie & Fitch (ANF 37.75, -9.04) is -19.3% after missing on earnings and revenue. In addition, the retailer guided third quarter earnings below consensus and said it will not be providing guidance past Q3 due to a lack of visibility.
Hewlett-Packard (HPQ 23.31, -2.07) is -8.2% after reporting in-line earnings and narrowing its full-year earnings guidance.
Microsoft (MSFT 32.01, +0.40) is +1.3% after Nomura upgraded the stock to 'Buy' from 'Neutral.'
Sears Holdings (SHLD 40.60, -2.67) is -6.2% after missing on earnings and revenue.

Weekly initial claims will be reported at 8:30 ET while the June FHFA Housing Price Index and July Leading Indicators will be announced at 9:00 ET and 10:00 ET, respectively.

06:28 am : [BRIEFING.COM] S&P futures vs fair value: +2.50. Nasdaq futures vs fair value: +7.50.

06:28 am : Nikkei...13365.17...-59.20...-0.40%. Hang Seng...21895.40...+77.70...+0.40%.

06:28 am : FTSE...6444.50...+53.70...+0.80%. DAX...8373.71...+88.10...+1.10%.

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

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

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