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)
http://twitter.com/wrbtrader (24/7)


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

Price Action Trade Performance for Today: Emini TF ($TF_F) futures @ $860.00 dollars or +8.60 points, Emini ES ($ES_F) futures @ $1,687.50 dollars or +33.75 points, Light Crude Oil CL ($CL_F) futures @ $0.00 dollars or +0.00 points, Gold GC ($GC_F) futures @ ($420.00) dollars or -4.20 points and EuroFX 6E ($6E_F) futures @ $0.00 dollars or +0.0000 ticks. Total Profit @ $2,127.50 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=127&t=1728

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.

##TheStrategyLab Chat Room is free. Members and I use the chat room to post WRB Analysis commentary, real-time trades and to post anything else related to trading. The chat room helps me tremendously in my own trading because I use it to document (journal) my thought process from trade to trade so that I can easily review at a later date my thoughts as I interacted with the markets...info I can not get from my broker statements. Also, this is not a signal calling chat room where a head trader tells you when to buy or sell. If you join the chat room and then you do not ask any questions about WRB Analysis in your own trading or you do not document (journal) your own thoughts from trade to trade...the chat room will not be useful to you. Chat room access instructions @ http://www.thestrategylab.com/tsl/forum/viewforum.php?f=164

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 (answering your questions) prior to purchasing the Volatility Trading Report (VTR).

Trading Plan Daily Routine @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=232&t=2209

-----------------------------

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.

S&P Fails To Hold Record Levels


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

NEW YORK (CNNMoney)
The bulls couldn't hold the line. After rising to an all-time high earlier Monday, the S&P 500 closed just shy of a record.

The S&P 500 soared above the key 1,850 level in the afternoon, before pulling back late in the day to end at 1,847.71.

The Dow Jones industrial average added just over 105 points. The Nasdaq also gained ground.

Stocks have bounced back from a rough January, when investors were rattled by turmoil in emerging markets. The S&P 500, which fell 3% in January, is now flat for the year.

J.J. Kinahan, chief derivatives strategist at TD Ameritrade, said investors have been encouraged by a flurry of corporate deal making and stock buybacks announced in recent weeks. "There seems to be some buying momentum in the market," he said.

Investors are also looking ahead to testimony from Federal Reserve chair Janet Yellen on Thursday. Yellen told lawmakers earlier this month that the Fed will continue to taper its bond buying program this year, but she stressed the need to keep interest rates low for a long time.

While the U.S. economy has shown some signs of weakness, many economists say major storms in December and January distorted the data. This week, investors will sort through reports on housing, consumer spending and the government's second reading of fourth-quarter gross domestic product -- the broadest measure of economic growth.

Meanwhile, corporate earnings have also helped give stocks a boost.

Earnings for the companies in the S&P 500 that have reported results so far grew 8.5% on average in the fourth quarter, according to FactSet Research. The growth was stronger than what analysts had predicted, with 72% of the S&P 500 topping expectations.

Companies have also reported improved sales numbers, though overall revenue growth remains weak. In the current quarter, analysts say cold weather could weigh on corporate sales and profits.

Icahn vs. eBay: Activist investor Carl Icahn blasted eBay (EBAY, Fortune 500) CEO John Donahoe for failing to address "blatant" conflicts of interest involving two members of the company's board, venture capitalist Marc Andreessen and Scott Cook.

Icahn, who owns a "significant position" in eBay stock, has proposed separating the company's traditional online auction business from its PayPal payment processing business.

eBay shot back, issuing a statement denouncing Icahn's "mudslinging attacks" on its directors.

Shares of eBay were up despite the noise. Traders on StockTwits seemed to believe the fight was just getting started.

"This $EBAY will be a freaking war. war. Andreeesen will NOT back down and take it to twitter with Carl. Thrilling board room drama ahead," said howardlindzon.

If they can't settle their differences on Twitter (TWTR), another trader suggested swords.

"$EBAY I am in favour of Icahn rocking their boat. Money men need to be challenged AND be forced to raise their sword every now and then," said Morpheus.

Netflix gets connected. Comcast (CCV) said Sunday that it will allow Netflix (NFLX) to connect directly to its broadband network, allowing for faster streaming. Netflix is expected to pay Comcast for the access, yet it's unclear how the added expense may impact subscription fees.

Some traders were surprised to see Netflix shares move higher, given the uncertainty around the cost of the deal with Comcast.

"$NFLX This stock is moving the wrong direction. Same service for more money?" said zer0sum.

At least one bearish trader was considering changing sides.

"$NFLX Maybe I should just go long and watch it hit $1000 in a month for no reason," said tangsting.

HSBC (HSBC) shares slid after the bank reported earnings that came in below expectations.

Blackberry (BBRY)shares rose on rumors that it could replace Microsoft (MSFT, Fortune 500) to power Ford's (F, Fortune 500) future generation cars with smartphone technology.

European markets ended higher, while most Asian markets moved lower.

The G20 -- the world's 19 richest nations and the European Union -- pledged to install policies that will add $2 trillion to the world economy over the next five years. The group committed to "significantly raise global growth," according to a statement following a weekend meeting in Australia.

In Ukraine, the whereabouts of ousted President Viktor Yanukovych remain unknown. Meanwhile, the acting government has issued an arrest warrant for Yanukovych over the killings of civilians in last week's bloodshed in Kiev.





4:20 pm: [BRIEFING.COM] The stock market kicked off the new trading week on an upbeat note, sending the S&P 500 (+0.6%) to a fresh nominal intraday record high of 1858.71. Despite the rally, selling during the final hour kept the benchmark index from finishing the session above its 2013 closing high of 1848.36.

Although the catalyst for today's buying rush could be debated, some attributed the bullish tone to the resilience of the S&P 500 futures in the face of some disappointing economic data and market performance in China. To clarify, a bearish catalyst was there for the taking, but it wasn't taken. Once the U.S. stock market started with a bullish bias, a fear of missing out on further upside helped fuel some renewed buying interest following Friday's lackluster session.

Seven of ten sectors posted gains with energy (+1.5%) ending in the lead. The sector seized the lead at the open and maintained its outperformance throughout the session. Top sector members factored into the strength as Dow components Chevron (CVX 114.15, +1.47) and ExxonMobil (XOM 96.44, +1.41) both gained near 1.4% while crude oil rose 0.6% to $102.81/bbl.

Staying on the commodity theme, precious metals extended their recent gains while copper sold off. Gold futures climbed 1.1% to $1337.90/ozt while silver futures advanced 1.2% to $22.04/ozt. Today's rally extended gold's monthly gain to 7.5% while silver ended the session with a February increase of 15.1%. For its part, copper slid 0.8% to $3.264/lb amid reports of Chinese banks cutting credit to property developers. On a related note, the materials sector shed 0.5%.

Outside of energy and materials, the remaining four cyclical sectors were mixed with respect to the broader market. Financials (+0.8%) and industrials (+0.8%) outperformed while consumer discretionary (+0.6%) and technology (+0.5%) lagged.

Notably, the tech sector was unable to keep up with the S&P 500 as several large components like Cisco Systems (CSCO 22.12, -0.01), Qualcomm (QCOM 75.43, -0.18), and Microsoft (MSFT 37.69, -0.29) lagged. The sector did see some M&A activity as TriQuint Semiconductor (TQNT 11.64, +2.41) announced a merger with RF Micro Devices (RFMD 7.03, +1.22).

On the countercyclical side, health care (+0.8%) outperformed while consumer staples (+0.4%), telecom services (-1.1%), and utilities (-0.3%) lagged.

Treasuries posted modest gains with the benchmark 10-yr yield slipping one basis point to 2.74%.

Today's participation was above average as just over 830 million shares changed hands on the floor of the NYSE.

Tomorrow, the Case-Shiller 20-city Index and the FHFA Housing Price Index for December will both be released at 9:00 ET while the February Consumer Confidence report will cross the wires at 10:00 ET.
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Nasdaq Composite +2.8% YTD
Russell 2000 +1.0% YTD
S&P 500 UNCH YTD
Dow Jones Industrial Average -2.2% YTD

3:35 pm: [BRIEFING.COM]

Apr gold extended Friday's gains, trending higher after lifting from its session low of $1328.70 per ounce. It brushed a session high of $1339.20 per ounce in late morning action and eventually settled at $1337.90 per ounce, or 1.1% higher.
Mar silver also traded higher, advancing to a session high of $22.14 per ounce. It spent afternoon action trading in a consolidative pattern just below that level and settled with a 1.2% gain at $22.04 per ounce.
Apr crude oil rose to a session high of $103.45 per barrel in late morning pit trade. It pulled back slightly in afternoon action and settled at $102.81 per barrel, booking a gain of 0.6%.
Apr natural gas, on the other hand, retreated into negative territory after pulling back from its session high of $5.08 per MMBtu set in early morning floor action. It trended lower for most of the session and settled 6.8% lower at $4.66 per MMBtu, slightly above its session low of $4.59 per MMBtu.

3:00 pm: [BRIEFING.COM] The S&P 500 trades higher by 1.1% with one hour remaining in today's session.

Following the closing bell, participants will receive more than 30 quarterly reports with four S&P 500 components appearing on the reporting schedule. The four S&P 500 names include Frontier Communications (FTR 4.69, +0.06), ONEOK (OKE 61.16, +0.45), Vornado Realty (VNO 95.42, +0.64), and Tenet Healthcare (THC 48.23, +1.36).

Tomorrow morning, more than 50 companies will report their results with EOG Resources (EOG 180.77, +2.77), Home Depot (HD 77.76, +0.02), and Macy's (M 53.44, -0.27) headlining the list.

2:30 pm: [BRIEFING.COM] The S&P 500 trades higher by 1.1% with the energy sector (+2.0%) maintaining its lead over the remaining nine groups. However, outside of energy, only three other sectors trade ahead of the broader market.

The financial sector (+1.3%) outperforms with help from top components like Bank of America (BAC 16.60, +0.30) and Citigroup (C 49.22, +0.96). Both names trade with gains close to 2.0% apiece.

Elsewhere, industrials (+1.3%) continue showing relative strength thanks to defense contractors. The PHLX Defense Index is higher by 1.5%.

Lastly, the health care sector (+1.1%) remains among the outperformers with biotechnology displaying strength. The iShares Nasdaq Biotechnology ETF (IBB 273.06, +4.35) trades up 1.6%.

1:55 pm: [BRIEFING.COM] The S&P 500 trades less than four points below its record high of 1858.76 as the quiet afternoon continues.

There was no economic data reported today, but that will change tomorrow. Investors will receive a couple data points related to the December housing market with the Case-Shiller 20-city Index (Briefing.com consensus 13.6%) and the FHFA Housing Price Index (no consensus estimate) both set to be released at 9:00 ET. In addition, the Consumer Confidence report (Briefing.com consensus 80.8) for February will be released at 10:00 ET.

Also of note, Friday's data is expected to receive added attention with the second estimate of fourth quarter GDP (Briefing.com consensus 2.6%), February Chicago PMI (Briefing.com consensus 56.0), and January pending home sales (Briefing.com consensus +0.8%) all appearing on the schedule.

1:30 pm: [BRIEFING.COM] Buyers have controlled the trading action since the opening bell when the indices charged out of the gate, catching many sidelined investors and short sellers by surprise.

The catalyst for that buying rush is debatable, although one theory is that the resilience of the S&P futures in the face of some disappointing economic data and market performance in China set the bullish tone. That is, there was a bearish catalyst for the taking and it wasn't taken. Accordingly, when the US stock market started with a bullish bias, a fear of missing out on further upside helped precipitate some renewed buying interest following Friday's lackluster session.

Today's move has driven the S&P 500 to a new, all-time nominal high. As the afternoon session progresses, levels to watch on any pullback (should there be any) are 1850.84 (prior intraday high of 2014) and 1848.36 (2013 closing high). These levels had been areas of resistance, which have now pivoted to areas of technical support for the S&P 500.

There is ample participation in today's advance (if not particularly heavy volume) with nine out of ten sectors showing a gain at this point. The notable exception is the telecom services sector (-0.6%), which is being dragged lower by weakness in both Verizon (VZ 46.90, -0.37) and AT&T (T 32.52, -0.28), which are locked in a wireless pricing battle.

12:55 pm: [BRIEFING.COM] At midday, the major averages hover at their best levels of the session. Small caps are in the lead with the Russell 2000 higher by 1.4% while the S&P 500 trades up 1.1% after notching a fresh nominal record high at 1858.76.

Thanks to today's advance, the S&P 500 has erased its 2014 loss and is now higher by 0.5% for the year. Despite the rebound in the benchmark index, the Dow Jones Industrial Average remains lower by 1.7% for the year.

After being unable to notch a fresh record high on two occasions last week, the benchmark index powered the new highs during the first hour of action with a handful of influential sectors providing leadership. Energy (+2.3%) and health care (+1.2%) displayed early strength and maintained their outperformance into midday while other heavily-weighted sectors like financials (+1.3%) and industrials (+1.4%) joined the party shortly thereafter.

The energy sector remains in the lead with Dow components Chevron (CVX 114.80, +2.12) and ExxonMobil (XOM 97.14, +2.11) showing respective gains of 1.9% and 2.2%. Crude oil, meanwhile, trades up 1.0% at $103.21/bbl.

Elsewhere among commodities, gold and silver futures are seeing a continuation of their recent strength. Gold futures trade higher by 1.0% at $1337.10/ozt while silver futures display a 1.4% gain at $22.09/ozt. Including today's advance, the two metals hold respective February gains of 7.4% and 15.3%.

Despite the broad advance, the largest S&P 500 sector-technology (+0.8%)-has been unable to keep pace with the broader market as large cap names weigh. Apple (AAPL 522.76, -2.49) and Microsoft (MSFT 37.89, -0.09) hover in the red while Cisco Systems (CSCO 22.14, +0.01) and Qualcomm (QCOM 75.74, +0.14) trade flat.

Also of note, Treasuries have erased their overnight gains and now trade little changed with the 10-yr yield at 2.75%.

12:30 pm: [BRIEFING.COM] Stocks remain near their best levels of the session with the S&P 500 trading higher by 1.2%.

With just four more sessions remaining in February, the market is on track to end the month broadly higher. Nine of ten sectors are poised to finish with gains between 2.7% (consumer staples) and 6.1% (health care) while the telecom services space holds a month-to-date loss of 0.8%.

Interestingly, February's leading sector, health care, is also the top sector of the year, up 7.1%. Likewise, the weakest group of the month is also the weakest group of the year. The telecom services sector holds a year-to-date loss of 5.0%.

11:55 am: [BRIEFING.COM] The S&P 500 (+1.2%) has inched to a fresh session high with help from most sectors. Energy (+2.3%) remains well ahead of the remaining sectors while the three largest groups-technology (+0.9%), financials (+1.2%), and health care (+1.3%)-display gains comparable to the broader market.

Elsewhere, the materials sector (+0.3%) is the weakest performer among cyclical groups as steelmakers lag. Cliffs Natural Resources (CLF 21.40, -0.57) is lower by 2.6% while the broader Market Vectors Steel ETF (SLX 46.47, -0.10) holds a loss of 0.2%.

11:35 am: [BRIEFING.COM] The S&P 500 continues to trade within a striking distance of its recently-established nominal record high of 1855.01. Thanks to today's advance, the benchmark index has extended its February gain to 4.1%. Excluding the 2.3% decline that occurred during the first session of the month, the index has surged 6.5% off its February 3 low.

Similar to equities, commodities also trade at their best levels of the session. Crude oil has extended its gain to 0.9% at $103.14/bbl while gold futures now trade higher by 1.1% at $1338.60/ozt.

Elsewhere, Treasuries remain modestly higher with the 10-yr yield hovering near 2.75%.

Interestingly, with commodities, stocks, and Treasuries trading higher, the U.S. dollar is on the defensive. The Dollar Index (80.16, -0.08) is lower by 0.1%, sitting near its session low.

11:00 am: [BRIEFING.COM] Equity indices remain near their best levels of the session with the Russell 2000 (+1.1%) maintaining its lead. Meanwhile, the Dow, Nasdaq, and S&P 500 all display gains close to 0.9% apiece.

The energy sector (+2.0%) was among the early leaders and continues to outperform noticeably even as crude oil holds a more modest gain of 0.4% at $102.59/bbl. Outside of energy, only two other sectors-health care (+1.1%) and industrials (+1.2%)-display gains in excess of 1.0%.

Health care has drawn some strength from Dow component Pfizer (PFE 31.85, +0.39), which trades higher by 1.2% after announcing positive results from one of its trials. Elsewhere, the industrial sector has received support from defense contractors. The PHLX Defense Index is higher by 1.7%.

10:35 am: [BRIEFING.COM]

Commodities are mostly higher this morning, while the dollar index is flat. Some key commodities that are showing losses include natural gas, copper and corn futures.
Overall gains today are led by coffee futures, which are over 4% higher as the drought/very dry and unfavorable weather in Brazil continues to hurt the coffee crop. Coffee futures are currently +4.1% at $1.76/lb.
The other story this morning is in natural gas futures, which sold off as much as 7.5% off of its overnight high when it hit a new morning low of $4.82/MMBtu in the April contract. Apr nat gas is now -1.5% at $4.94/MMBtu.
Apr crude oil is currently +0.3% at $102.53/barrel.
Gold and silver gained steam in overnight trade and have been in positive territory since. Apr gold is now +1% at $1337.10/oz and Mar silver is +1.4% at $22.08/oz.
Copper has been in the red all day so far and is now -1.3% at $3.25/lb.

10:00 am: [BRIEFING.COM] The major averages have built on their opening gains, pushing the S&P 500 to a fresh all-time high of 1851.46. Thanks to the advance, the benchmark index has now erased its 2014 loss and now trades with a year-to-date gain of 0.1%. Elsewhere, the Nasdaq has extended its 2014 advance to 2.9% while the Dow Jones Industrial Average remains down 2.0% so far this year.

Energy (+1.6%) and health care (+1.1%) remain in the lead while other top-weighted sectors like financials (+0.9%) and industrials (+1.0%) also display strength. However, the largest S&P 500 sector, technology (+0.6%), trails the broader market.

With the S&P 500 extending to a fresh high, participants have not shown much demand for volatility protection as the CBOE Volatility Index (VIX 14.07, -0.61) trades lower by 4.2%.

9:40 am: [BRIEFING.COM] The major averages jumped out of the gate with small caps in the lead. The Russell 2000 trades higher by 0.5% while the S&P 500 follows not far behind with eight of ten sectors showing gains.

The energy sector (+1.0%) has climbed into an early lead while other cyclical groups display gains between 0.3% and 0.6%. The materials sector, however, trades flat.

On the countercyclical side, health care (+0.9%) outperforms while consumer staples (+0.3%), utilities (+0.3%), and telecom services (-0.7%) lag.

Elsewhere, Treasuries continue showing modest gains with the 10-yr yield off two basis points at 2.73%.

9:11 am: [BRIEFING.COM] S&P futures vs fair value: +4.00. Nasdaq futures vs fair value: +11.50. The stock market is on track to begin the new trading week on a modestly higher note with the S&P 500 futures trading four points above fair value.

Futures saw an overnight dip as key Asian indices retreated amid worries concerning China's property sector after some banks reportedly cut credit to property developers. The early weakness, however, was erased shortly after Asian markets ended for the day.

Domestically, pre-market action has been fairly subdued with no notable economic data or market-moving earnings to digest. Among notable early movers, TriQuint Semiconductor (TQNT 11.43, +2.20) is higher by 23.8% after the company agreed to merge with RF Micro Devices (RFMD 6.85, +1.04).

Treasuries display modest gains with the benchmark 10-yr yield off nearly two basis points at 2.73%.

9:00 am: [BRIEFING.COM] S&P futures vs fair value: +4.30. Nasdaq futures vs fair value: +11.70. The S&P 500 futures trade four points above fair value.

Markets across Asia finished mostly lower. Home prices in China saw the pace of their gains slow for the first time in 14 months as data showed a 9.6% year-over-year jump in January (9.9% previous). In other regional data, New Zealand's Credit Card Spending increased 9.2% year-over-year (4.7% last).

Japan's Nikkei shed 0.2%, slipping off three-week highs as the yen saw early strength. Financials were pressured as both Mitsubishi UFJ Financial and Sumitomo Mitsui both lost more than 1.0%.
Hong Kong's Hang Seng fell 0.8%, slumping for a second session as trade slipped back below the 200-day moving average. Property developers were weak as the Chinese data weighed. China Overseas Land & Investment led the sector lower, off 3.6%.
China's Shanghai Composite lost 1.8%, falling to its lowest level in two weeks as property shares weighed. Poly Real Estate tumbled 8.2% and China Vanke gave up more than 6.0%.

Major European indices trade mixed with Spain's IBEX (+0.6%) in the lead while Great Britain's FTSE (-0.2%) lags. Participants received several economic data points. Eurozone CPI fell 1.1% month-over-month (-1.1% expected, 0.3% prior) while the year-over-year reading increased 0.8% (0.7% consensus, 0.7% previous). Core CPI fell 1.7% month-over-month (0.3% last) while the year-over-year reading increased 0.8%, as expected (0.8% prior). Germany's Ifo Business Climate Index rose to 111.3 from 110.6 (110.6 expected) as Current Assessment improved to 114.4 from 112.4 (112.8 expected) while Business Expectations slipped to 108.3 from 108.9 (108.2 expected). Elsewhere, Spain's Business Confidence ticked up to -9 from -11 (-10 consensus).

In news, European Central Bank President Mario Draghi said the upcoming March policy meeting will be critical in determining whether to introduce additional stimulus.

Great Britain's FTSE is lower by 0.2% as financials lag. RSA Insurance trades lower by 4.0% and HSBC holds a loss of 3.3% after missing earnings estimates. Machinery manufacturer Bunzl leads with a gain of 5.8%.
Germany's DAX trades down 0.1% with Volkswagen seeing the largest loss. The carmaker trades lower by 4.4% after making an offer to acquire truck maker Scania. On the upside, Deutsche Lufthansa trades up 1.5%.
In France, the CAC is higher by 0.2%. Telecom names outperform with Orange and Vivendi up 1.1% and 1.4%, respectively. On the downside, defense contractor Safran is lower by 2.0%.
Spain's IBEX holds an advance of 0.5% amid broad strength. Industrial name Sacyr leads with a gain of 2.5%.

8:27 am: [BRIEFING.COM] S&P futures vs fair value: +5.70. Nasdaq futures vs fair value: +14.50. U.S. equity futures hold modest gains after climbing off their overnight lows. Index futures saw some pressure during the Asian session, but began climbing once regional markets ended for the day. A retreat back to the flat line followed not long after, but futures have since climbed to new highs. Currently, the S&P 500 futures trade nearly six points above fair value.

Elsewhere, precious metals have continued their recent strength. Gold futures trade higher by 0.6% at $1331.30/ozt, extending their February advance to more than 7.0%. Also of note, silver futures trade up 1.1% at $22.01/ozt and are now up more than 15.0% in February.

Treasuries display slim gains with the 10-yr yield down one basis point at 2.74%.

8:00 am: [BRIEFING.COM] S&P futures vs fair value: +4.50. Nasdaq futures vs fair value: +11.00. U.S. equity futures hold modest pre-market gains amid subdued overseas action. The S&P 500 futures hover almost five points above fair value.

Reviewing overnight developments:

Asian markets ended on a lower note. Japan's Nikkei -0.2%, Hong Kong's Hang Seng -0.8%, and China's Shanghai Composite -1.8%.
Economic data was limited:
China's House Prices rose 9.6% year-over-year (9.9% prior).
New Zealand's Credit Card Spending increased 9.2% year-over-year (4.7% last).
Among news of note:
Markets in China underperformed amid worries related to the property sector after banks tightened lending to property developers.

Major European indices trade mixed. Great Britain's FTSE -0.2%, Germany's DAX -0.1%, and France's CAC +0.3%. Elsewhere, Italy's MIB -0.3% and Spain's IBEX +0.6%.
Participants received several economic data points:
Eurozone CPI fell 1.1% month-over-month (-1.1% expected, 0.3% prior) while the year-over-year reading increased 0.8% (0.7% consensus, 0.7% previous). Core CPI fell 1.7% month-over-month (0.3% last) while the year-over-year reading increased 0.8%, as expected (0.8% prior).
Germany's Ifo Business Climate Index rose to 111.3 from 110.6 (110.6 expected) as Current Assessment improved to 114.4 from 112.4 (112.8 expected) while Business Expectations slipped to 108.3 from 108.9 (108.2 expected).
Spain's Business Confidence ticked up to -9 from -11 (-10 consensus).
In news:
European Central Bank President Mario Draghi said the upcoming March policy meeting will be critical in determining whether to introduce additional stimulus.

In U.S. corporate news:

3D Systems (DDD 77.30, -3.44): -4.5% in reaction to a Bank of America/Merrill Lynch downgrade to 'Underperform' from 'Buy.'
GT Advanced Technologies (GTAT 12.40, +0.29): +2.4% after reporting an earnings beat on below-consensus revenue.
HSBC Holdings (HSBC 52.60, -1.73): -3.2% after missing the Capital IQ consensus estimate by eight cents.
Palo Alto Networks (PANW 77.50, +3.88): +5.3% following its one-cent beat on above-consensus revenue.
Pfizer (PFE 32.20, +0.74): +2.4% after the company announced positive results from one of its trials.

There is no economic data of note on today's schedule.

6:46 am: [BRIEFING.COM] S&P futures vs fair value: +3.00. Nasdaq futures vs fair value: +7.50.

6:46 am: [BRIEFING.COM] Nikkei...14837.68...-28.00...-0.20%. Hang Seng...22388.56...-179.70...-0.80%.

6:46 am: [BRIEFING.COM] FTSE...6817.37...-20.70...-0.30%. DAX...9644.67...-12.30...-0.10%.

S&P 500 Touches Record, Ukraine Stocks Jump; Coffee Gains

By Stephen Kirkland and Lu Wang Feb 24, 2014 4:29 PM ET

U.S. equities rallied, with the Standard & Poor’s 500 Index touching an intraday record and all but erasing its 2014 decline, amid confidence the economy is strong enough to weather cuts to monetary stimulus. Commodities gained while Ukrainian shares jumped the most since 2010.

The S&P 500 (SPX) advanced 0.6 percent to 1,847.61, less than one point shy of the record close reached Jan. 15 after paring gains of as much as 1.2 percent. The Ukrainian Equities Index jumped 15 percent on speculation the nation will get international aid after the president was ousted. Ten-year Treasury yields rose one basis point to 2.75 percent by 4:25 p.m. in New York. Coffee, sugar, silver and oil led commodities higher. The shekel weakened after the Bank of Israel cut interest rates.

Janet Yellen, in her first global forum as Federal Reserve chair, won praise at the Group of 20 nations meeting for helping ease concern over emerging markets as the U.S. tapers stimulus. China’s Industrial Bank Co. temporarily tightened financing for property developers as it takes stock of market conditions and prepares new credit policies, a statement showed. The U.S. and the European Union said they’re ready to help Ukraine as lawmakers work to set up a coalition government.

Natural gas is flared at the Handy Gas Unit #1, a Pioneer Natural Resources well, in... Read More

“The market is really willing to focus on the positives and dismiss the negatives,” Mark Freeman, who oversees about $18.9 billion as chief investment officer at Westwood Holdings Group Inc. in Dallas, said by phone. “We’re just seeing a shift in mentality. The market is, on the forward basis, operating on the assumption that the economy is going to continue to improve and corporate profits are going to continue to grow at some rate.”

Retreat, Recovery

The S&P 500 slumped as much as 5.8 percent after closing at the highest level since its inception Jan. 15 as investor concern over continuing cuts in the Fed’s bond buying program fueled a rout in emerging markets. The index has rebounded from a low touched Feb. 3 and climbed to within six points of its 1,848.38 record close every day last week.

Gauges of energy, industrial and financial stocks rose at least 0.8 percent to lead gains in eight of the 10 main industry groups in the S&P 500 today, with telephone and commodity companies as well as utilities posting the only declines.

Humana Inc. rallied 11 percent for the biggest gain in the S&P 500 after saying a rate cut in 2015 for Medicare Advantage patients will be less than an earlier estimate. EBay Inc. climbed 3.1 percent as investor Carl Icahn pushed for the spin-off of PayPal.

Turned Bearish

Investors using S&P 500 futures turned bearish this month for the first time since September 2012, concerned that emerging-market turmoil and signs of slower growth will drag equities down.

Hedge funds and other large speculators have been net short for the last two weeks, wagering that the S&P 500 will decrease in value, according to data compiled by Bloomberg and the U.S. Commodity Futures Trading Commission. The Chicago Board Options Exchange Volatility Index, used to hedge against S&P 500 moves, rose above its average since 2012 last week as investors sought protection against a slide in stocks.

The Shanghai Composite Index dropped 1.8 percent, the most since Jan. 6, and the Hang Seng China Enterprises Index of mainland companies listed in Hong Kong fell 1.4 percent.

“China is the main risk for EM assets,” Maarten-Jan Bakkum, an emerging-markets strategist at ING Investment Management Co. in The Hague, said by e-mail. “Slower growth in Chinese real-estate investment would have a big impact on Chinese growth and on EM growth as the emerging world is very dependent on Chinese demand.”

G-20 Statement

The world’s major economies pledged at the G-20 to maintain generally accommodative policies and pay heed to the international repercussions of their actions. Before the concluding communique was released yesterday in Sydney, India and South Africa were among nations calling for the Fed to consider the impact beyond the U.S. as it tapers stimulatory asset purchases.

Officials from the U.K. and Australia had backed the Fed’s right to set policy to its own needs and said some were using the impact of tapering as an excuse for domestic failings.

The shekel weakened 0.4 percent to 3.5183 per dollar. The Bank of Israel unexpectedly lowered its benchmark lending rate for the first time in five months, as inflation slows and growth remains muted. The five-member monetary policy panel, led by Governor Karnit Flug, cut borrowing costs by a 25 basis points, or 0.25 percentage point, to 0.75 percent. Five of 24 economists surveyed by Bloomberg predicted the decision, while the remainder estimated there would be no cut.

Ukrainian Bonds

Ukraine’s April 2023 dollar bonds rose a third day, sending yields down 1 percentage point to 9.25 percent, the lowest level in about a month. The country’s interim government said it needs $35 billion of aid to avoid default as it issued an arrest warrant for President Viktor Yanukovych for his role in last week’s violence.

The Stoxx Europe 600 Index added 0.6 percent to a six-year high.

HSBC Holdings Plc dropped 2.8 percent after Europe’s largest bank reported full-year pretax profit that missed analysts’ estimates. PostNL NV lost 20 percent after the Dutch mail service posted a full-year loss that was wider than forecast. RSA Insurance Group Plc slid 3.7 percent after the U.K. company said it is considering a rights offer.

Volkswagen AG tumbled 6.5 percent after offering to buy the remaining stake in Swedish truckmaker Scania AB for 6.7 billion euros ($9.2 billion). Scania soared 32 percent to its highest price since July 2007.

Commodity Markets

Asian index futures climbed, with contracts on Japan’s Nikkei 225 Stock Average gaining 1.1 percent in Osaka and in Chicago. Futures on Australia’s S&P/ASX 200 Index, South Korea’s Kospi Index and the Hang Seng and Hang Seng China Enterprises gauges in Hong Kong climbed at least 0.2 percent.

Coffee extended a rally in New York, rising 4 percent to lead commodities higher, as dry weather may cut output in Brazil, the world’s largest producer. The drought could potentially push the global coffee market into its first shortage in four years. Sugar advanced 3.6 percent.

U.S. natural gas turned lower, sinking 11 percent after rallying as much as 5.8 percent to the highest level since December 2008. A midday update to the National Weather Service’s Global Forecast System model showed higher temperatures than previously forecast in the Midwest from March 6 to March 10. West Texas Intermediate oil added 0.6 percent at $102.82 a barrel.

Copper fell 0.7 percent to $7,103.25 a metric ton in London. Gold climbed 0.9 percent to $1,336.94 an ounce, a third consecutive advance.

The euro weakened against 13 of its 16 major peers as reports showed euro-area inflation stayed below the European Central Bank’s 2 percent target for a fourth month.

The cost of insuring high-yield corporate bonds in euros against losses fell to the lowest since October 2007, with the Markit iTraxx Crossover index of credit-default swaps on 50 European companies with speculative-grade ratings dropping almost 8 basis point to 266 basis points.

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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