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 @ $780.00 dollars or +7.80 points, Emini ES ($ES_F) futures @ $1,337.50 dollars or +26.75 points, Light Crude Oil CL ($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 @ $2,117.50 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=128&t=1741

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=234&t=2257

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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.

Markets Hit Pause As Investors Watch Asia


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

NEW YORK (CNNMoney)
With little U.S. economic or corporate news on the docket Monday, investors kept an eye on the rest of the world to get a sense of where the market is headed.

The Dow trimmed a loss of over 100 points earlier in the day, but still ended slightly in the red. The S&P 500 and Nasdaq finished flat.

The Dow and S&P 500 are near all-time highs as investors celebrated the five year anniversary of the current bull market.

But the Nasdaq is not back to all-time highs yet.

In fact, Monday is the 14-year anniversary of the tech-heavy index hitting its peak of above 5,130.

Still, the Nasdaq is now only about 15.5% below its dot-com boom record, thanks to a nearly 40% jump last year and strong start to 2014.

European markets closed mostly in the red. And Asian markets ended significantly lower after China trade data and revised Japanese GDP numbers came in weaker than expected.

Boeing (BA, Fortune 500) shares fell after Malaysia Airlines Flight 370, a Boeing 777, disappeared Saturday in mysterious circumstances en route to Beijing. The company also announced late Friday that "hairline cracks" had been found on some of its Dreamliner 787 jets still in production.

But one trader on StockTwits thought the stock's dip might be short-lived.

"$BA I wonder if BA jumps right back up after all this bad news," said bluegill1972. "I'm thinking this might be a buy soon."

Tension in Ukraine created volatility in global markets early last week. But investors have been breathing a sigh of relief the past few days as the crisis seems to be abating.

"As long as there's no feeling that an escalation into a wider conflict is imminent, the markets may remain calm," said Wasif Latif of USAA Investments in a note to clients Monday morning.

In other corporate news, Chiquita Brands (CQB) rallied more than 10% after the company said it was buying Ireland's Fyffes for about $526 million to create the world's leading banana company.

Shares of 3-D printer maker DDD Systems (DDD) plunged 5% after a report over the weekend claimed that investors may be overpaying for 3-D printing stocks. The stock is down around 30% this year after a huge run in 2013.

But StockTwits user johnnyquest felt that the report was "shortsighted" and that 3-D printing technology will continue to grow. "$DDD The law of accelerating returns will prevail in 3d printing. We'll be printing our wardrobes soon," he said.

LowRiskTrader echoed that sentiment. "$DDD ...Every sell off is a reason to buy," he said.

Shares of eBay (EBAY, Fortune 500), a member of CNNMoney's Tech 30 Index, slumped after Carl Icahn stepped up his campaign against the company's management.

In a letter Monday, the activist investor attacked John Donahue, the company's CEO, for failing to supervise his firm's board for alleged conflicts of interest related to their financial stakes in companies that Icahn believes are eBay competitors. eBay responded by defending Donahue's record. Icahn wants eBay to spin off its PayPal unit.

"$EBAY board. When will you guys learn. Mr. Icahn always gets his way," quipped tonytan0 on StockTwits.





4:15 pm: [BRIEFING.COM] The major averages began the new trading week on a slightly lower note with small caps leading the weakness. The Russell 2000 shed 0.3% while the S&P 500 slipped less than a point with six sectors ending in the red.

Equity indices began the day in negative territory with only the Nasdaq (-0.04%) making a very brief appearance in the green. After sliding through the first hour of action, the major averages reversed and spent the remainder of the session climbing off their lows with help from the three top-weighted sectors. Health care and financials gained 0.4% and 0.04%, respectively, while technology (-0.1%) ended just below its flat line. Also contributing to the rebound was the energy sector, which added 0.2% even as crude oil fell 1.4% to $101.07/bbl.

The S&P 500 tried to regain its flat line, but came up just short as the weakness among consumer discretionary (-0.4%), industrials (-0.5%), and materials (-0.1%) sectors kept a lid on the attempted rally.

Although the materials sector accounts for less than 4.0% of the entire S&P 500, the group was a notable early laggard after China reported disappointing trade figures for February. The country's trade balance swung from a surplus to a deficit of $22.98 billion (expected surplus of $14.50 billion) as exports fell 18.1% (expected +6.8%) while imports grew 10.1% (consensus +8.0%). The big miss did not come without an excuse as the Lunar New Year, which took place at the start of the month, was cited for causing distortions to the report.

The trade figures put additional pressure on copper futures, which continued their recent weakness. The metal fell 1.3% to $3.042/lb after starting the year in the 3.400/lb area. Miners and steelmakers were also pressured with Freeport-McMoRan (FCX 31.38, -0.81) and Market Vectors Steel ETF (SLX 43.87, -0.75) sliding 2.5% and 1.7%, respectively.

Elsewhere, the industrial space was pressured by Boeing (BA 126.89, -1.65), which lost 1.3% after a 777 jet operated by Malaysia Airlines vanished over the South China Sea during the weekend. Separately, a Tokyo-bound 787 from San Francisco was forced to make an emergency landing in Hawaii due to engine issues. Although the industrial space finished at the bottom of the leaderboard, transports fared a bit better. The Dow Jones Transportation Average shed 0.2%, trimming its March gain to 3.2%.

Also of note, the discretionary sector spent the duration of the session among the laggards. Homebuilders ended broadly lower with the iShares Dow Jones US Home Construction ETF (ITB 25.23, -0.49) falling 1.9%. Automakers also lagged with Ford (F 15.51, -0.11) and General Motors (GM 37.08, -0.61) ending lower by 0.7% and 1.6%, respectively.

The Treasury market spent the day inside a narrow range and the 10-yr yield slipped one basis point to 2.78%.

Trading volume was well below average with just over 615 million shares changing hands at the NYSE.

Tomorrow, the January Wholesale Inventories report will be released at 10:00 ET.
Related Stories

InPlay from Briefing.com Briefing.com
US STOCKS SNAPSHOT-Wall St ends session lower, S&P 500 down for the week Reuters
US STOCKS-S&P 500 ends at record after strong jobs data Reuters
S&P 500 ends at another record after strong jobs data Reuters
Stocks Ease From Session Highs; Akorn Breaks Out Investor's Business Daily

Nasdaq Composite +3.8% YTD
Russell 2000 +3.4% YTD
S&P 500 +1.6% YTD
Dow Jones Industrial Average -1.0% YTD

3:35 pm: [BRIEFING.COM]

Commodities ended the day mostly lower today with energy, excl natural gas, grains (corn, wheat and soybeans) and copper and silver all finishing in the red.
Gold and natural gas futures ended today's session higher.
Grains sold off today following the monthly USDA WASDE report.
Corn ended the day 2% lower at $4.87/bushel, soybeans lost 40 cents (or -2.7%) to $14.19/bu and wheat fell 14 cents (or ) to $6.39/bu.
Copper ended 1.6% to $3.03/lb following Friday's notable losses following news that China saw its "first" corporate bond default, with Shanghai Chaori Solar Energy unable to pay its debt in full today.
Since China is the largest importer of copper in the world, this kind of news is something to keep in mind.
Apr crude oil ended today's session $1.47/barrel lower at $101.07/barrel.
Apr nat gas rose 3 cents to $4.65/MMBtu.
April gold rose $3.80 to$1341.60/oz, May silver lost one cent to $20.91/oz.

3:00 pm: [BRIEFING.COM] The S&P 500 trades lower by 0.2% with one hour remaining in the trading day. Stocks slumped out of the gate amid disappointing trade data from China, but were able to erase about half of their losses thanks to the relative strength of financials (-0.1%), health care (+0.2%), and technology (-0.1%).

The benchmark index notched its low less than 90 minutes into the session and then returned to the middle of its trading range by 11:30 ET, where it continues trading at this time.

The early weakness sent participants in search of volatility protection, which caused a spike in the CBOE Volatility Index (VIX 14.46, +0.35), which remains higher by 2.5%.

2:30 pm: [BRIEFING.COM] The key indices remain near their recent levels with the S&P 500 trading lower by 0.3%.

Over the course of this week, participants will receive a modest dose of quarterly earnings as the fourth quarter earnings season draws to a close with just six S&P 500 components remaining on the schedule.

However, due to the protracted nature of the Q4 earnings season, companies will begin reporting their first quarter results in just over a month. JPMorgan Chase (JPM 59.15, -0.25) will be the first Dow component to report its Q1 earnings with the announcement expected to take place on Friday, April 11 ahead of the opening bell.

2:00 pm: [BRIEFING.COM] The S&P 500 sits right in the middle of today's trading range as sector standing remains little changed from our midday update.

Outside of the disappointing trade data from China, participants did not receive any noteworthy economic news today. This week in general will be pretty quiet with only Thursday's Retail Sales report for February (Briefing.com consensus +0.2%), and Friday's preliminary reading of the Michigan Sentiment Survey (consensus 82.0) expected to garner added attention.

Tomorrow's data will be limited to the Wholesale Inventories report for January (consensus +0.4%) while the most notable data point from overseas will be the latest policy statement from the Bank of Japan.

1:30 pm: [BRIEFING.COM] The major indices are stuck in red figures, but have moved comfortably off their worst levels of the day. Similar to the earlier move down, which was broad based, the move back up has been, too.

There are pockets of relative strength in some defensive-oriented areas of the stock market, like the consumer staples (unch) and health care (+0.1%) sectors, but it is noteworthy that the financial (-0.04%) and energy (-0.1%) sectors are also included in the relative strength mix. All four sectors are heavily weighted in the S&P 500 and their resilience is helping to keep losses in check.

The financial sector has been the best-performing sector month-to-date (+3.0%) and is faring reasonably well today despite a downgrade at Wells Fargo to Market Weight from Overweight.

Concerns about a global economic slowdown and the diplomatic standoff in Ukraine have been frequently cited in narratives explaining today's weakness, yet such concerns don't look all that pronounced in the Treasury market where the 10-yr note is up just one tick.

1:00 pm: [BRIEFING.COM] At midday, the major averages trade lower across the board with the Russell 2000 (-0.6%) displaying the largest decline. The S&P 500 holds a more modest loss of 0.3% with nine sectors sitting in the red.

Although individual sectors trade broadly lower, only four groups-consumer discretionary (-0.5%), industrials (-0.7%), materials (-0.5%), and telecom services (-1.0%)-are seeing larger losses than the broader market. Furthermore, two of the four-materials and telecom services-account for less than 6.5% of the S&P 500.

The telecom sector is being pressured by Verizon (VZ 46.69, -0.46) while producers of basic materials trade lower following disappointing trade data from China. Specifically, China's trade balance swung from a surplus to a deficit of $22.98 billion (expected surplus of $14.50 billion) as exports fell 18.1% (expected +6.8%) while imports grew 10.1% (consensus 8.0%). Despite the big miss, the data is being taken with a grain of salt due to the Lunar New Year, which occurred at the beginning of the month and may have exacerbated the deficit.

While the broader market has not shown too much concern over the disappointing figures, the same cannot be said for the copper market, where the base metal trades lower by 1.5% at $3.037/lb after trading near 3.20/lb just last week. Miners and steelmakers are also seeing pressure with Cliffs Natural Resources (CLF 17.77, -0.88) and Freeport-McMoRan (FCX 31.15, -1.04) down 4.7% and 3.3%, respectively.

Elsewhere, the industrial sector lags amid notable weakness in shares of Boeing (BA 125.38, -3.16) after a 777 jet operated by Malaysia Airlines vanished over the South China Sea during the weekend. In addition, a Tokyo-bound 787 from San Francisco was forced to make an emergency landing due to engine issues. Boeing trades lower by 2.5%, which is contributing to the underperformance of the Dow Jones Industrial Average (-0.4%).

Even though the key indices remain in the red, they have been able to climb off their lows thanks to the relative strength among the three top-weighted sectors. Financials (-0.1%) and technology (-0.1%) hover just below their flat lines while health care (+0.1%) represents the only group trading in the green at this juncture.

Treasuries hold modest gains with the 10-yr yield off one basis point at 2.78%.

12:30 pm: [BRIEFING.COM] Equity indices remain in the red with the Russell 2000 (-0.6%) showing the largest loss while the Dow Jones Industrial Average (-0.5%) follows not far behind.

As mentioned earlier, the Dow is seeing significant pressure from Boeing (BA 125.34, -3.20), which trades lower by 2.5%. Although Boeing is a major component within the price-weighted index, it is not the only source of weakness. Nike (NKE 78.55, -0.91) and Verizon (VZ 46.54, -0.61) also trade with losses in excess of 1.0% while only five components-Cisco Systems (CSCO 21.74, +0.01), ExxonMobil (XOM 95.03, +0.04), Intel (INTC 24.78, +0.14), Procter & Gamble (PG 78.41, +0.03), and UnitedHealth (UNH 77.50, +0.10)-hover in the green at this time.

Fittingly, two of the names trading higher fall under the umbrella of the health care sector, which sits just above its flat line.

12:00 pm: [BRIEFING.COM] The S&P 500 (-0.4%) has taken a step back from its rebound high as nine of ten sectors continue trading lower.

Currently, the health care sector (+0.1%) is the only group trading in the green even though biotechnology has not contributed to the relative strength. The iShares Nasdaq Biotechnology ETF (IBB 258.61, -0.73) is lower by 0.3% as the industry group continues its recent underperformance. Including the decline, the biotech ETF is lower by 2.1% so far in March, but remains up 14.0% in 2014.

11:30 am: [BRIEFING.COM] Recent action saw the S&P 500 (-0.3%) regain about eight points from its session low thanks, in part, to the relative strength of the three top weighted sectors. Financials (-0.2%), health care (+0.1%), and technology (-0.1%) trade ahead of the broader market and their relative strength is noteworthy considering the trio accounts for more than 46.0% of the entire market.

Meanwhile, consumer discretionary (-0.5%), industrials (-0.7%), and materials (-0.6%) continue showing relative weakness; however, their underperformance is being masked since the three sectors represent roughly a quarter of the S&P 500.

11:00 am: [BRIEFING.COM] The major averages have slid to fresh lows after failing to retake their flat lines. The Russell 2000 (-0.9%) continues trailing other indices while the S&P 500 trades lower by 0.5%.

The industrial sector (-1.0%) is the weakest performer at this juncture with Boeing (BA 125.30, -3.24) trading lower by 2.5% after a 777 operated by Malaysia Airlines vanished over the South China Sea during the weekend. Boeing's notable weakness is also contributing to the underperformance of the Dow Jones Industrial Average (-0.6%).

Outside of industrials, consumer discretionary (-0.7%) and materials (-0.8%) also trail the broader market while other sectors trade in-line or ahead of the broader market.

With stocks on lows, participants are showing some demand for volatility protection as indicated by a 7.3% increase in the CBOE Volatility Index (VIX 15.16, +1.05).

10:35 am: [BRIEFING.COM]

Commodities, especially including iron ore and steel futures, are trading lower this morning after a surprising decline in China's exports, which increased fears of China's economic growth outlook.
Chinese exports fell the most since 2009 last month, while inflation slowed to a 13-month low amid declining producer prices.
Iron ore futures (Mar contract) are down 6.8% at $116/ton, the lowest level seen since October 2012, which is hitting iron ore stocks this morning such as CLF, BHP, RIO, and VALE.
Overall, metals are lower today excluding gold, silver and aluminum futures.
Apr gold is currently +0.3% at $1342/oz, while May silver is -0.04% at $20.92/oz.
May copper is -1.2% at $3.05/lb, extending notable losses seen on Friday, which was driven by news that China saw its "first" corporate bond default, with Shanghai Chaori Solar Energy unable to pay its debt in full late last week.
Energy is weak as well this morning, including oil, natural gas, heating oil and RBOB futures.
Apr crude oil have been in negative territory all session so far and are now -1.2% at $101.35/barrel
Apr natural gas is -0.5% at $4.60/MMBtu
In the agriculture space, the USDA will release its World Agricultural Supply and Demand (WASDE) report at noon eastern time today, which should create volatility in grains such as corn, wheat, and soybeans.

10:00 am: [BRIEFING.COM] Equity indices have climbed off their opening lows with the Nasdaq returning to its flat line.

The early outperformance of the Nasdaq has been aided by the relative strength of the technology sector, which trades higher by 0.2%. Most top weighted sector components display modest gains while Facebook (FB 71.66, +1.86) outperforms notably. The stock is higher by 2.7% after UBS hiked its price target to $90 from $72.

Elsewhere, the financial sector has made a brief appearance in the green before returning to its flat line. The financial sector is the top performer so far this month as it holds a 3.0% gain.

Treasuries continue to hover near their flat lines with the 10-yr yield at 2.79%.

9:45 am: [BRIEFING.COM] The major averages began the session in the red with the Russell 2000 (-0.4%) seeing the largest opening decline. The S&P 500, meanwhile, trades lower by 0.2% with nine sectors showing losses.

As expected, the materials space (-0.5%) began the day behind the remaining groups in reaction to disappointing trade data from China. Elsewhere among cyclical sectors, energy (-0.5%) and industrials (-0.5%) lag while financials (-0.2%) trade in-line with the S&P 500. Also of note, the tech sector hovers just above its flat line.

On the countercyclical side, telecom services (-0.6%) lag while consumer staples (-0.1%), health care (-0.2%), and utilities (-0.1%) display slim losses.

9:14 am: [BRIEFING.COM] S&P futures vs fair value: -2.00. Nasdaq futures vs fair value: +0.20. The stock market is on track to begin the week on a slightly lower note as futures on the S&P 500 trade two points below fair value.

Over the weekend, China reported a trade deficit of $22.98 billion while a surplus of $14.50 billion was generally expected. Exports fell 18.1% (+6.8% expected, +10.6% prior) while imports grew 10.1% (8.0% consensus, 10.0% prior). The data has been taken with a grain of salt since the large swing was attributed to adjustment issues surrounding the Lunar New Year. Elsewhere, Japan also reported disappointing data as its unadjusted current account deficit widened to JPY1.59 trillion from JPY0.64 trillion (deficit of JPY1.41 trillion expected). Meanwhile, the adjusted reading pointed to a deficit of JPY0.59 trillion, as expected. Also of note, fourth quarter GDP was revised down to indicate growth of 0.2% versus 0.3% observed in the preliminary reading.

The disappointing trade data from China is likely to weigh on the materials sector. On that note, Cliffs Natural Resources (CLF 18.11, -0.54) and Freeport-McMoRan (FCX 31.70, -0.49) hold pre-market losses of 2.9% and 1.5%, respectively.

Treasuries enter the session little changed with the 10-yr yield sitting just under 2.79%.

8:57 am: [BRIEFING.COM] S&P futures vs fair value: -3.40. Nasdaq futures vs fair value: -1.00. The S&P 500 futures have retreated from their highs and now trade three points below fair value.

The major Asian bourses ended mostly lower, spooked by the surprise Chinese trade deficit (-$22.98 billion versus $14.50 billion expected surplus). The deficit resulted from an 18.1% drop in exports and a 10.1% rise in imports, and was likely a result of timing of the Lunar New Year. In other data, CPI (2.0% year-over-year versus 2.1% expected) and PPI (-2.0% year-over-year versus -1.9% expected) were both slightly cooler than expected. Elsewhere, Japanese data also disappointed as the country posted a record adjusted current account deficit (JPY0.59 trillion versus JPY0.59 trillion expected) and the lowest final GDP (0.2%) since Prime Minister Shinzo Abe took office.

Japan's Nikkei lost 1.0%, slipping off five-week highs. Real estate shares were weak with Sumitomo Realty & Development and Mitsui Fudosan off 2.1% and 2.4%, respectively.
Hong Kong's Hang Seng fell 1.8% to a one-month low. China Southern Airlines slid 3.5% on reports two passengers aboard the Malaysian Airlines flight that vanished over the weekend had purchased tickets through a code share with the company.
China's Shanghai Composite tumbled 2.9% below the 2000 level and is threatening its lowest close of 2014. Industrial & Commercial Bank of China saw sizable losses, off 2.9%.

Major European indices trade mixed after seeing early gains. Looking at economic data, Eurozone Sentix Investor Confidence improved to 13.9 from 13.3 (14.0 expected). French Industrial Production slipped 0.2% month-over-month (0.2% consensus, -0.6% prior). Italy's Industrial Production rose 1.0% month-over-month (0.4% expected, -0.8% prior) while the year-over-year reading increased 1.4% (-0.7% consensus, -0.7% last). Spain's Industrial Production increased 1.1% year-over-year (1.4% forecast, 2.2% prior). Swiss Retail Sales slipped 0.3% year-over-year (3.3% expected, 2.5% last).

Germany's DAX is lower by 0.4% with Deutsche Bank trading down 2.1%. Producers of basic materials also lag with K+S and ThyssenKrupp down 0.5% and 2.1%, respectively.
Great Britain's FTSE trades flat. Miners lag following China's disappointing trade data. Anglo American, Antofagasta, and Glencore Xstrata are all down close to 2.0% apiece. Defense contractor Rolls-Royce Holdings outperforms with a gain of 2.1%.
In France, the CAC is higher by 0.5%. Bouygues trades higher by 8.2% after agreeing to sell a spectrum network to Iliad. Telecom provider Orange also outperforms, up 3.4%.

8:25 am: [BRIEFING.COM] S&P futures vs fair value: -1.90. Nasdaq futures vs fair value: -1.00. The S&P 500 futures hover just below fair value amid quiet pre-market action. Futures began the trading week in the red following disappointing trade data from China, but have since erased the bulk of their losses.

Generally speaking, pre-market action has been very subdued with no notable data or earnings of note on the schedule. McDonald's (MCD 95.50, 0.00) served up a reminder regarding light consumer spending by saying its U.S. comparable store sales decreased 1.4% in February. Shares of the fast food giant, however, are flat in pre-market action.

8:00 am: [BRIEFING.COM] S&P futures vs fair value: -1.00. Nasdaq futures vs fair value: +1.20. The S&P 500 futures trade one point below fair value amid mostly upbeat overseas action.

Reviewing overnight developments:

Asian markets ended lower. Japan's Nikkei -1.0%, Hong Kong's Hang Seng -1.8%, and China's Shanghai Composite -2.9%.
Participants received several economic data points:
China reported a trade deficit of $22.98 billion (surplus of $14.50 billion expected, $31.86 billion prior surplus) as exports fell 18.1% (+6.8% expected, +10.6% prior) while imports grew 10.1% (8.0% consensus, 10.0% prior). Separately, CPI rose 0.5% month-over-month (0.8% expected, 1.0% last) while the year-over-year reading increased 2.0% (2.0% forecast, 2.5% prior). Also of note, PPI fell 2.0% year-over-year (-1.9% consensus, -1.6% previous).
Japan's trade deficit widened to JPY1.59 trillion from JPY0.64 trillion (deficit of JPY1.41 trillion expected). GDP ticked up 0.2% quarter-over-quarter (0.3% expected, 0.3% prior) while the year-over-year reading increased 0.7% (1.0% consensus, 1.0% prior). GDP Price Index fell 0.3% year-over-year (-0.4% expected, -0.4% previous) and the Economy Watchers Current Index fell to 53.0 from 54.7 (54.3 consensus).
In news:
In China, the surprising trade deficit was attributed to disruptions caused by the Lunar New Year.

Major European indices trade mostly higher. France's CAC +0.5%, Great Britain's FTSE +0.1%, and Germany's DAX -0.4%. Elsewhere, Spain's IBEX +0.4% and Italy's MIB +0.6%.
Economic data was limited:
Eurozone Sentix Investor Confidence improved to 13.9 from 13.3 (14.0 expected).
French Industrial Production slipped 0.2% month-over-month (0.2% consensus, -0.6% prior).
Italy's Industrial Production rose 1.0% month-over-month (0.4% expected, -0.8% prior) while the year-over-year reading increased 1.4% (-0.7% consensus, -0.7% last).
Spain's Industrial Production increased 1.1% year-over-year (1.4% forecast, 2.2% prior).
Swiss Retail Sales slipped 0.3% year-over-year (3.3% expected, 2.5% last).
Among news of note:
Germany's DAX trails the region amid weakness in producers of basic materials. K+S and ThyssenKrupp trade lower by 1.3% and 2.6%, respectively.

In U.S. corporate news:

Facebook (FB 70.77, +0.97): +1.4% after UBS raised its price target for the stock to $90 from $72.
Manufacturers of basic materials are seeing pressure following China's trade data. Alcoa (AA 11.96, -0.20), Cliffs Natural Resources (CLF 18.15, -0.50), and Freeport-McMoRan (FCX 31.79, -0.40) display losses between 1.2% and 2.4%.

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

5:59 am: [BRIEFING.COM] S&P futures vs fair value: flat. Nasdaq futures vs fair value: +2.50.

5:59 am: [BRIEFING.COM] Nikkei...15120.14...-153.90...-1.00%. Hang Seng...22264.93...-395.60...-1.80%.

5:59 am: [BRIEFING.COM] FTSE...6740.93...+28.30...+0.40%. DAX...9360.33...+9.60...+0.10%.

U.S. Stocks Fall as Industrial Shares Lead Drop on China

By Callie Bost and Joseph Ciolli Mar 10, 2014 5:17 PM ET



U.S. stocks slid, pulling the Standard & Poor’s 500 Index down from a record, as a slowdown in Chinese exports fueled concern about global economic growth.

Boeing Co. dropped 1.3 percent after a 777-200 plane disappeared with 239 passengers and crew during a Malaysia Airlines flight to Beijing on March 8. Chiquita Brands International Inc., owner of the namesake banana label, soared 11 percent after agreeing to buy Fyffes Plc. Industrials in the S&P 500 lost 0.5 percent as Joy Global Inc. and ADT Corp. fell at least 2.5 percent.

The S&P 500 declined less than 0.1 percent to 1,877.17 at 4 p.m. in New York, paring a drop of as much as 0.6 percent. The benchmark gauge is up 177 percent since reaching its bear-market low, which was five years ago yesterday. The Dow Jones Industrial Average slipped 34.04 points, or 0.2 percent, to 16,418.68 today. About 6 billion shares changed hands on U.S. exchanges, 10 percent lower than the three-month average.

“Chinese numbers gave the market an excuse to sell off,” Bruce Bittles, chief investment strategist at RW Baird & Co., said by telephone from Sarasota, Florida. His firm oversees $120 billion. “The markets did well last week considering the news backdrop was potentially threatening with the Ukraine and weak economic numbers, obviously not including the labor report.”

China’s CSI 300 Index dropped to a five-year low after customs data on March 8 showed exports from China fell 18.1 percent in February from a year earlier. That was the largest decline since August 2009. The median estimate of analysts surveyed by Bloomberg had called for a 7.5 percent increase.
Crimean Peninsula

Russian forces advanced in Ukraine’s Crimean peninsula, ignoring Western calls to halt a military takeover before the region’s separatist referendum. The U.S. estimates Russia now has 20,000 troops confronting a smaller Ukrainian force there.

Ukrainian Prime Minister Arseniy Yatsenyuk said yesterday he’d travel to Washington this week as Russian President Vladimir Putin defended Crimea’s local government, which may use the March 16 vote to leave Ukraine and join the country’s Soviet-era master.

“The U.S. market started off poorly, but it made a nice recovery through the rest of the day,” Phil Orlando, who helps oversee just under $400 billion as chief equity market strategist at Federated Investors Inc., said by phone. “We saw with the jobs data on Friday that the numbers were stronger than anticipated. Now that the weather is getting better, investors are thinking there’s no reason to be dumping stocks right now.”
Volatility Index

Six of 10 main industries in the S&P 500 declined today, The Chicago Board Options Exchange Volatility Index (VIX), a gauge for U.S. stock volatility, rose 0.6 percent to 14.20.

Boeing lost 1.3 percent to $126.89. Malaysia still had no information about the Boeing aircraft. A team from the U.S. National Transportation Safety Board was heading to Malaysia to be in place once the wreckage of the plane is located. The team was being joined by experts from the Federal Aviation Administration and Boeing.

Joy Global fell 2.5 percent to $55.43 and ADT decreased 2.8 percent to $29.98.

Chiquita soared 11 percent to $12, the highest level since October. The company agreed to buy Fyffes in an all-stock transaction that values it at about $526 million. The deal will create a business with annual revenue of about $4.6 billion, according to a statement.
Cliffs Natural

Cliffs Natural Resources Inc. slipped 3.8 percent to $17.95, the weakest level since July. Axiom Capital Management initiated coverage with a sell rating on the Cleveland-based mining company. Axiom said that a possible bankruptcy is a “growing reality” due to Cliffs’s reliance on iron ore production. The firm forecasts that the average price of iron ore will decline by year-end.

3D Systems Corp. fell 5.1 percent to $63.90, while Stratasys Ltd. (SSYS) declined 1.8 percent to $112.41. Barron’s said 3D printer stocks look overvalued and that the two companies have “exorbitant” share prices, according to its March 10 issue. 3D Systems traded at almost 85 times its projected earnings, and Stratasys traded at a multiple of 52 as of the start of trading today, according to data compiled by Bloomberg.
Cablevision, Regado

Cablevision Systems Corp. dropped 1 percent to $17.97. Directors on the board of the fifth-largest U.S. cable company were sued by an investor for wrongfully approving “grossly excessive” compensation for Chairman Charles Dolan and members of his family who serve as Cablevision executives.

Regado Biosciences Inc. jumped 38 percent to a record $11.30 after announcing that the U.S. Food and Drug Administration has designated its REG1 anticoagulant drug for fast-track development.

Alexion Pharmaceuticals Inc. surged 7.1 percent to $180. Alexion said revenue this year will be higher, citing a reimbursement agreement for its drug Soliris.

FMC Corp. jumped 6.7 percent to record $83.10. The research company plans to create two independent public companies, separating its agriculture and healthcare units from other businesses including lithium and alkali chemicals. The transaction will be in the form of a tax-free distribution of shares to existing shareholders, FMC said.

The U.S. equity rally that just turned five years old is starting to match the 1990s Internet bubble when it comes to its speed. That’s where most of the resemblances end.

Unlike then, when technology stocks drew 85 percent of the cash and surged four times as much as anything else, investors today are spreading their money around, sending $2 billion or more to exchange-traded funds tracking everything from drugmakers to oil drillers, data compiled by Bloomberg and Morningstar Inc. show. While gains are extending to almost every industry, they’ve only been enough to push valuations to close to half the level when the bubble popped in 2000.

While the S&P 500’s multiple of 17 times reported earnings is close to the average since 1937, it’s about 40 percent below where it was in 2000, data compiled by Bloomberg and S&P show.

To contact the reporters on this story: Callie Bost in New York at cbost2@bloomberg.net; Joseph Ciolli in New York at jciolli@bloomberg.net

To contact the editors responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net

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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