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 @ $1,660.00 dollars or +16.60 points, Emini ES ($ES_F) futures @ $0.00 dollars or +0.00 points, Light Crude Oil CL ($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 @ $1,660.00 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

Trade Log: All of my trades were posted real-time in the timestamp ##TheStrategyLab chat room. You can read today's price action trading information about my trades (e.g. time, price entry, contract size, price exit) as the trade traversed to its completion. Also, sometimes I'll post real-time trading tips involving WRBs, WRB Hidden GAPs, Key Market Events (KME), Tutorial Chapters 2 & 3, WRB Zones, Reaction Highs/Lows, Contracting Volatility or Expanding Volatility. Its all archived @ http://www.thestrategylab.com/ftchat/forum/viewtopic.php?f=135&t=1915


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) general volatility analysis involving WRB Analysis 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 and I do not have the time/energy/resources to manage a signal calling chat room. Access instructions for chat room @ 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=248&t=2530

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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. Further, most financial websites remove (delete) their archives after a few years to make room for new content. Therefore, I maintain my own archives of the news content so that I have it available for me when financial websites no longer archives their content.


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

4:15 pm: [BRIEFING.COM] The stock market enjoyed another broad-based advance on Tuesday with the S&P 500 (+2.0%) posting its fourth consecutive gain. The benchmark index made its biggest jump in more than a year and recaptured its 200-day moving average (1906.95) while the Nasdaq Composite (+2.4%) outperformed throughout the session.

Equity indices began the trading day on an upbeat note with a set of better than expected results contributing to the early strength. However, the futures market received a separate overnight boost from a Reuters report suggesting the European Central Bank will look to begin buying corporate bonds. That report was followed by headlines from the Financial Times indicating the ECB has no plans to implement the aforementioned buying program at this time. The denial did not stop European equities from ending on their highs while the U.S. market built on its early strength throughout the day.

For the second day in a row, the Dow Jones Industrial Average (+1.3%) could not keep pace with the broader market, which was once again due in part to the relative weakness in the shares of IBM (IBM 163.23, -5.87). The third-largest index component lost 3.5% while only two other Dow members finished in the red. To that point, Coca-Cola (KO 40.68, -2.61) and McDonald's (MCD 91.01, -0.58) registered respective losses of 6.0% and 0.6% in reaction to cautious guidance from both consumer companies.

In turn, Coca-Cola pressured the consumer staples sector (+0.4%), which was the second-weakest group of the day. Similarly, telecom services (+0.7%) and utilities (+0.4%) lagged, while the last countercyclical sector-health care (+2.7%)-settled among the leaders.

The health care sector drew strength from biotechnology, which also contributed to the outperformance of the Nasdaq. The iShares Nasdaq Biotechnology ETF (IBB 278.27, +8.68) jumped 3.2% to extend its October gain to 1.7%. For its part, the Nasdaq also received significant support from its largest component-Apple (AAPL 102.47, +2.71)-and chipmakers.

Shares of Apple jumped 2.7% in reaction to better than expected earnings and improved guidance, but the technology sector (+1.8%) could not catch up to the market as IBM weighed. As for chipmakers, the PHLX Semiconductor Index (+3.6%) enjoyed broad strength after Texas Instruments (TXN 46.77, +2.36) reported better than expected earnings. ARM Holdings (ARMH 39.57, -1.99) also surpassed earnings estimates, but could not stay out of the red, falling 4.8%.

Elsewhere among cyclical sectors, energy (+2.9%) finished in the lead even as crude oil slipped from its morning high near $83.20/bbl to settle with a gain of 0.6% at $82.40/bbl.

Treasuries ended on their lows after spending the entire session in the red. The 10-yr yield climbed three basis points to 2.22%.

Participation remained above average with more than 795 million shares changing hands at the NYSE floor.

Economic data was limited to the Existing Home Sales report for September. After declining for the first time since March, existing home sales rebounded, rising 2.4% to 5.17 million SAAR from an unrevised 5.05 million SAAR. The Briefing.com consensus expected an increase to 5.11 million SAAR.

Sales in the Midwest declined 5.6% in September while all of the other regions -- Northeast (1.5%), South (5.0%), and West (7.1%) -- saw increased demand
A portion of the increase in sales resulted from more investor demand with all-cash sales accounting for 24% of all transactions, up from 23% in August.
Individual investor demand grew to 14% from 12%

Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET while the CPI report for September (Briefing.com consensus 0.0%) will cross the wires at 8:30 ET.

Nasdaq Composite +5.8% YTD
S&P 500 +5.0% YTD
Dow Jones Industrial Average +0.2% YTD
Russell 2000 -4.3% YTD

3:35 pm: [BRIEFING.COM]

Commodities ended the day mostly higher
WTI Dec oil prices pulled back below $83, but finished the day with a $0.50 gain at $82.40/barrel
Natural gas staged a late afternoon rally and closed near today's high. Nov nat gas rose 1.1% to $3.71/MMBtu
Gold and silver slowly slide lower off of today's highs, but still closed with gains
Dec gold rose 0.6% at $1251.70/oz, while Dec silver gained 1.2% to $17.56/oz
Copper closed near today's high. The Dec contract rose 1.2% to $3.02/lb.

3:00 pm: [BRIEFING.COM] The S&P 500 trades higher by 1.7% with one hour remaining in the session.

Market participants have received a fair share of quarterly reports since yesterday's closing bell with another batch of noteworthy earnings set to be released after today's closing bell. The technology sector will be in focus with Broadcom (BRCM 37.06, +0.76), VMware (VMW 87.73, +0.07), and Yahoo! (YHOO 40.10, +0.82) scheduled to report this evening.

Tomorrow morning, the focus will shift to the industrial sector with Boeing (BA 127.11, +2.80), General Dynamics (GD 123.88, +2.58), Northrop Grumman (NOC 125.67, +1.00), and Norfolk Southern (NSC 109.28, +2.21) expected to reveal their results ahead of the opening bell.

2:30 pm: [BRIEFING.COM] Equity indices have continued their upward drift with the S&P 500 extending its gain to 1.7%. Meanwhile, the Dow Jones Industrial Average (+1.1%) has returned into positive territory for the year.

The energy sector (+2.6%) seized the lead shortly after the open and has held its ground throughout the session. The sector has been able to hold the lead even as crude oil slipped from its morning high of $83.18/bbl. The energy component remains higher by 0.5% at $82.31/bbl while the energy sector has extended this week's gain to 3.3%.

Elsewhere, Treasuries remain near their lows with the 10-yr yield up one basis point at 2.20%.

2:00 pm: [BRIEFING.COM] Afternoon action continues with the S&P 500 trading higher by 1.6%. Meanwhile, the tech-heavy Nasdaq has padded its gain to 2.0%.

The Nasdaq Composite has enjoyed broad support from its top-weighted component and high-beta areas like biotechnology and chipmakers. The largest index component-Apple (AAPL 102.30, +2.54)-has added 2.6%, while the iShares Nasdaq Biotechnology ETF (IBB 276.61, +7.02) and the PHLX Semiconductor Index sport respective gains of 2.6% and 2.8%.

The PHLX Semiconductor Index has enjoyed broad strength with all but two components trading in the green. Texas Instruments (TXN 46.43, +2.03) trades up 4.6% following better than expected earnings, while ARM Holdings (ARMH 39.18, -2.38) and Cree (CREE 32.84, -0.06) hold respective losses of 5.7% and 0.2%. Shares of ARMH have been unable to stay out of the red despite reporting in-line results and guiding higher.

1:25 pm: [BRIEFING.COM] For the time being, the economic slowdown concerns that hit the market last week (and the week before) have been tempered. The evidence of that point has been reflected in the outperformance today of the cyclical industrials (+1.8%), materials (+1.7%), energy (+1.9%), and consumer discretionary (+1.5%) sectors. The Philadelphia Semiconductor Index (+2.2%) and Dow Jones Transportation Average (+2.2%), in turn, have turned in yet another strong showing.

The slowdown concerns aren't dead altogether. China reported 7.3% GDP growth for its third quarter. That was slightly better than expected but still the slowest growth rate in nearly six years. A presumption that the slowdown might lead to further stimulus measures to help meet the official growth target of 7.5% has aided in today's broad-based advance.

One pocket of considerable weakness is the CBOE Volatility Index (VIX 16.98, -1.59). It is down 8.5% today and down roughly 45% from the high it hit as recently as October 15. The plunge in the VIX Index arguably reflects a growing sense of ease that recent scare factors (e.g., Ebola, ISIS, German weakness, stock selling) won't prove as scary as initially thought.

1:00 pm: [BRIEFING.COM] The major averages hold solid midday gains with the Nasdaq Composite (+1.7%) pacing the advance. The S&P 500 (+1.4%) follows right behind with all ten sectors trading in the green, while the Dow Jones Industrial Average (+0.9%) underperforms for the second day in a row.

Equity indices opened with solid gains following reports from Reuters suggesting the European Central Bank will look to begin buying corporate bonds. However, a later report from the Financial Times said the ECB has no plans to implement the aforementioned buying program at this time.

Yesterday, the Dow could not catch up to the broader market amid significant weakness in the third-largest index component. Today, IBM (IBM 162.23, -6.87) has once again pressured the price-weighted index with Big Blue extending yesterday's losses. IBM notwithstanding, the Dow has also faced weakness in the shares of Coca-Cola (KO 40.61, -2.68) and McDonald's (MCD 90.87, -0.72). The two names hold respective losses of 6.2% and 0.8% after both missed revenue estimates and issued cautious guidance.

On the flip side, investors have cheered better than expected results and guidance from Apple (AAPL 101.94, +2.18), which trades higher by 2.2%. Most other large cap names have also shown strength, but the technology sector (+1.2%) trails the broader market due to IBM's weakness.

Chipmakers, however, have taken part in the advance with better than expected results from Texas Instruments (TXN 46.03, +1.62) providing a measure of support. The stock has added 3.7% while the broader PHLX Semiconductor Index (+2.2%) has extended this week's gain to 3.8%.

Staying on the high-beta theme, biotechnology has displayed significant strength with the iShares Nasdaq Biotechnology ETF (IBB 274.30, +4.71) up 1.8%. The industry group has underpinned the health care sector (+1.9%) while the remaining countercyclical groups trail with gains between 0.2% (consumer staples) and 0.5% (telecom services).

Treasuries have held slim losses since this morning with the 10-yr yield up one basis point at 2.20%.

Economic data was limited to the Existing Home Sales report for September. After declining for the first time since March, existing home sales rebounded, rising 2.4% to 5.17 million SAAR from an unrevised 5.05 million SAAR. The Briefing.com consensus expected an increase to 5.11 million SAAR.

Sales in the Midwest declined 5.6% in September while all of the other regions--Northeast (1.5%), South (5.0%), and West (7.1%)--saw increased demand
A portion of the increase in sales resulted from more investor demand with all-cash sales accounting for 24% of all transactions, up from 23% in August.
Individual investor demand grew to 14% from 12%

12:25 pm: [BRIEFING.COM] Equity indices remain near their recent levels with all ten sectors showing gains. With the stock market starting the week on a higher note, all ten sectors are also positive on the week, but only two groups hold October gains at this juncture.

The utilities sector, which has served as a safe-haven of sorts during recent volatility, is only higher by 0.4% today, but up 3.9% since the end of September. That puts the countercyclical group well ahead of the second-best performer of the month-consumer staples.

Similar to utilities, the staples sector (+0.2%) is among today's laggards, but the modest uptick has padded its October gain to 0.6%.

On the flip side, the weakest performer of the month-energy-leads today's session with a 2.2% gain, but remains down 5.5% for the month.

11:55 am: [BRIEFING.COM] The stock market has inched to a fresh high with the S&P 500 extending its gain to 1.5%. Furthermore, today's advance represents the fourth consecutive gain for the benchmark index, which has surged from its October 15 low.

After ending September near the 1972 level, the S&P 500 was down as much as 7.7% for October at its lowest point last Wednesday; however, a steady rally has helped the index narrow its October loss to 2.0%. Meanwhile, the Dow, which has been a laggard so far this week, is still down 2.9% for the month.

Small cap stocks have been a bit more fortunate, but their outperformance follows a disappointing end to September. The Russell 2000 trades up 1.1% today and is higher by 0.5% since the end of September.

11:25 am: [BRIEFING.COM] Equity indices remain near their best levels of the day with the S&P 500 trading higher by 1.3%.

Five of six cyclical sectors trade ahead of the benchmark index while technology (+1.0%) has yet to catch up as IBM (IBM 162.83, -6.27) continues to weigh. Elsewhere, the materials sector (+1.9%) holds the lead with help from steelmakers after Steel Dynamics (STLD 21.90, +0.80) reported better than expected results. The Market Vectors Steel ETF (SLX 42.45, +0.65) is higher by 1.6%.

Meanwhile, the other commodity-related sector-energy (+1.4%)-remains near its best level of the session, but that gain may be in jeopardy considering crude oil has returned to its flat line. The energy component hovers just above its unchanged level ($81.92/bbl, +0.01) after sliding from a session high in the $83.20 area.

10:55 am: [BRIEFING.COM] The major averages have built on their early gains with the Nasdaq Composite (+1.6%) pacing the rally. Meanwhile, the S&P 500 follows a bit behind (+1.2%) while the Dow (+0.6%) lags once again.

Yesterday, the price-weighted Dow did not turn positive until the final hour of the session due to significant weakness in the shares of IBM (IBM 162.34, -6.76). The stock trades lower by 4.0% today, which is pressuring the Dow. In addition, Coca-Cola (KO 40.66, -2.63) and McDonald's (MCD 91.17, -0.42) hold respective losses of 6.1% and 0.5%, which has also contributed to the underperformance of the index.

Meanwhile, the remaining 27 Dow components hold gains with Home Depot (HD 93.73, +1.88) in the lead. The stock has been boosted by today's better than expected Existing Home Sales report for September (5.17 million; Briefing.com consensus 5.11 million).

10:35 am: [BRIEFING.COM]

Oil prices are trading higher today, despite strength in the dollar index (+0.4% at 85.27)
WTI Dec crude oil rallied after pit trading and rose as high as $83.26/barrel
In current trade, Dec crude is +0.5% at $82.32/barrel, while Brent is +0.4% at $85.77/barrel
Nov natural gas sold off in early morning trade and has a morning low of $3.64/MMBtu
Nov nat gas is now -0.2% at $3.66/MMBtu
Gold and sliver are showing morning strength.
Dec gold is now +0.7% at $1252.80/oz, Dec silver +1.3% at $17.59/oz
Dec copper is near its session high and is currently +1.1% at $3.02/lb

10:00 am: [BRIEFING.COM] The S&P 500 trades higher by 0.9%.

Just reported, existing home sales hit an annualized rate of 5.17 million units in September, while the Briefing.com consensus expected a reading of 5.11 million. The pace for September was up from the prior month's unrevised rate of 5.05 million units.

9:45 am: [BRIEFING.COM] The major averages began the session with broad-based gains that have placed the S&P 500 (+0.8%) back above its 200-day moving average (1906.39) for the first time since October 10. Eight of ten sectors display early gains with energy (+1.6%) in the lead.

The growth-sensitive energy sector has rallied alongside crude oil, which trades higher by 1.4% at $83.02/bbl. The energy component has been able to advance despite a 0.3% uptick in the Dollar Index (85.17, +0.22). Elsewhere among cyclical sectors, materials (+1.1%) and industrials (+1.0%) trade ahead of the broader market while technology (+0.7%) lags.

IBM (IBM 164.45, -4.68) and Google (GOOGL 531.94, -0.44) are among the early laggards contributing to the underperformance of the sector while Apple (AAPL 102.25, +2.49) trades higher by 2.6% after beating earnings estimates.

Treasuries remain in the red with the 10-yr yield up two basis points at 2.21%.

The Existing Home Sales report for September (Briefing.com consensus 5.11 million) will be released at 10:00 ET.

9:12 am: [BRIEFING.COM] S&P futures vs fair value: +12.40. Nasdaq futures vs fair value: +44.00. The stock market is on track for a higher open with the S&P 500 futures trading 12 points above fair value. Index futures spiked, and were up as much as 17 points, at the start of the European session after reports from Reuters suggested the European Central Bank will look to begin buying corporate bonds. However, futures on the benchmark index have backtracked to the tune of about eight points after the Financial Times said the ECB has no plans to implement the aforementioned buying program.

Interestingly, futures continue holding gains despite the refuted reports. Corporate news has factored into the pre-market strength with the likes of Apple (AAPL 102.96, +3.20), Texas Instruments (TXN 45.45, +1.04), United Technologies (UTX 103.44, +1.96), and Travelers (TRV 93.62, +0.42) on track to register early gains after reporting better than expected earnings.

On the flip side, Coca-Cola (KO 41.07, -2.21), Lockheed Martin (LMT 170.33, -5.20), McDonald's (MCD 89.90, -1.69), and Verizon (VZ 48.00, -0.48) are on course to begin the session in the red in reaction to disappointing results and/or guidance.

Treasuries are on their lows with the 10-yr yield up almost three basis points at 2.22%.

The Existing Home Sales report for September (Briefing.com consensus 5.11 million) will be released at 10:00 ET.

8:57 am: [BRIEFING.COM] S&P futures vs fair value: +12.60. Nasdaq futures vs fair value: +39.20. The S&P 500 futures trade 13 points above fair value.

Markets ended mixed across Asia. China's GDP (7.3%; expected 7.2%) beat expectations, but the reading represented a multi-year low. China's Statistics Bureau said the slowdown in GDP growth resulted from a high base that was set last year, but employment and inflation remained stable. Elsewhere, Japan Prime Minister Shinzo Abe's cabinet has lowered its economic assessment for the second month in a row.

In economic data:
China's Q3 GDP rose 1.9% quarter-over-quarter (expected 1.8%; previous 2.0%) while the year-over-year reading increased 7.3% (consensus 7.2%; prior 7.5%). Separately, Industrial Production rose 8.0% year-over-year (expected 7.5%; previous 6.9%), Fixed Asset Investment increased 16.1% year-over-year (consensus 16.3%; prior 16.5%), and Retail Sales climbed 11.6% year-over-year (expected 11.8%; previous 11.9%).
Japan's All Industries Activity Index slipped 0.1% month-over-month (expected -0.3%; previous -0.4%)
Hong Kong's CPI jumped 6.6% year-over-year (expected 3.6%; previous 3.9%), but the number has been declared a one off because of a low base for comparison due to public housing payments.

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Japan's Nikkei was rejected by the 200-day moving average and lost 2.0% after the minister responsible for Japan's Government Pension Investment Fund suggested he did not know anything about the weekend reports suggesting the fund would increase its equity exposure to 25% from 12%. Exporters outperformed despite the stronger yen as Toyota Motor and Honda Motor lost 1.6% and 1.5%, respectively.
Hong Kong's Hang Seng eked out a small gain of 0.1%, but was unable to reclaim the 200-day moving average. Heavyweight Tencent Holdings provided support, rising 1.0%.
China's Shanghai Composite lost 0.7%, sliding to a one-month low. Pharma was a drag with China Resources Double-Crane Pharmaceutical giving up 5.4%.
India's Sensex rose 0.6% to reclaim the 50-day moving average. IT service providers finished mixed as Wipro climbed 3.0% and Infosys fell 1.0%.

Major European indices trade higher across the board with Italy's MIB (+2.2%) in the lead. European equities surged after Reuters reported the European Central Bank is seeking to buy corporate bonds on the secondary market. The news weighed on the euro, sending the single currency from 1.2815 into the 1.2750 area against the dollar. However, the news was followed by reports from Financial Times, indicating the ECB has not put corporate bond purchases on its agenda. The euro trimmed a portion of its earlier decline, climbing to 1.2775.

In other news of note, Germany's Finance Minister Wolfgang Schaeuble said France and Germany will present a common position paper on investment and reform in December.

Economic data was limited:
Great Britain's Public Sector Net Borrowing came in at GBP11.07 billion (expected GBP9.20 billion; previous GBP10.96 billion)
Swiss trade surplus expanded to CHF2.45 billion from CHF1.33 billion (expected surplus of CHF2.65 billion)

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Great Britain's FTSE is higher by 1.0% with financials providing leadership. Hargreaves Lansdown, Old Mutual, and Standard Life are all up between 2.4% and 3.1%. ARM Holdings is the weakest performer, down 5.2%.
Germany's DAX has added 1.2% amid broad strength. Commerzbank leads with a gain of 4.2% while K+S and ThyssenKrupp follow not far behind. The two producers of basic materials hold respective gains of 3.5% and 3.1%.
In France, the CAC trades up 1.7% with 39 of 40 names in the green. Growth-sensitive names lead with ArcelorMittal, Cie de St-Gobain, and Lafarge up between 2.1% and 4.5%. Electricite de France is the weakest performer, down 0.6%.
Italy's MIB leads with a gain of 2.2%. Financials have paced the rally with BMPS, Banca di Milano Scarl, UBI Banca, Unicredit, and Intesa Sanpaolo up between 3.3% and 8.9%.

8:29 am: [BRIEFING.COM] S&P futures vs fair value: +9.80. Nasdaq futures vs fair value: +32.50. U.S. equity futures continue holding gains, but have slipped from their highs after Financial Times reported that corporate bond buying is not on the ECB's agenda. The recent report contrasted with the early morning headline that sparked a rally in U.S. futures and European markets. The S&P 500 futures have surrendered about seven points in reaction to the news.

The euro perked up in reaction to the Financial Times report, but has since returned near its earlier low (1.2750). Meanwhile, the Dollar Index (85.14, +0.19) continues holding a slim gain of 0.2%.

7:58 am: [BRIEFING.COM] S&P futures vs fair value: +14.90. Nasdaq futures vs fair value: +39.50. U.S. equity futures trade sharply higher amid upbeat action overseas. The S&P 500 futures hover 15 points above fair value with the entire gain coming after the start of the European session. The increased risk appetite followed reports indicating the European Central Bank is looking to start buying corporate bonds on the secondary market. The S&P 500 futures have climbed more than 25 points off their lows, putting the benchmark index on track to begin the session above its 200-day moving average (1906.39).

Treasuries hover in the red after erasing their overnight gains. The 10-yr yield is higher by one basis point at 2.21%.

The Existing Home Sales report for September (Briefing.com consensus 5.11 million) will be released at 10:00 ET.

In U.S. corporate news of note:

Apple (AAPL 101.69, +1.93): +1.9% after beating earnings/revenue estimates and guiding higher.
Chipotle Mexican Grill (CMG 618.05, -34.98): -5.4% despite beating earnings and revenue expectations.
Coca-Cola (KO 41.90, -1.39): -3.2% after missing revenue estimates and lowering full-year 2014 and 2015 forecast below long term targets.
Lockheed Martin (LMT 173.00, -2.53): -1.4% following its bottom-line beat on below-consensus revenue.
Texas Instruments (TXN 45.40, +0.99): +2.2% in reaction to upbeat results and guidance.
Travelers (TRV 94.50, +1.30): +1.4% after beating earnings estimates.
United Technologies (UTX 103.00, +1.52): +1.5% after reporting a one-cent beat and reaffirming its guidance.
Verizon (VZ 48.33, -0.15): -0.3% after missing bottom-line estimates on in-line revenue.

Reviewing overnight developments:

Asian markets ended mixed. Hong Kong's Hang Seng +0.1%, China's Shanghai Composite -0.7%, and Japan's Nikkei -2.0%
In economic data:
China's Q3 GDP rose 1.9% quarter-over-quarter (expected 1.8%; previous 2.0%) while the year-over-year reading increased 7.3% (consensus 7.2%; prior 7.5%). Separately, Industrial Production rose 8.0% year-over-year (expected 7.5%; previous 6.9%), Fixed Asset Investment increased 16.1% year-over-year (consensus 16.3%; prior 16.5%), and Retail Sales climbed 11.6% year-over-year (expected 11.8%; previous 11.9%).
Japan's All Industries Activity Index slipped 0.1% month-over-month (expected -0.3%; previous -0.4%)
Hong Kong's CPI jumped 6.6% year-over-year (expected 3.6%; previous 3.9%)
In news:
China's Statistics Bureau said the slowdown in GDP growth resulted from a high base that was set last year, but employment and inflation remained stable.
In Japan, Prime Minister Shinzo Abe's cabinet has lowered its economic assessment for the second month in a row.
Major European indices trade higher across the board. Great Britain's FTSE +1.1%, Germany's DAX +1.4%, and France's CAC +1.8%. Elsewhere, Spain's IBEX +2.0% and Italy's MIB +2.2%
Economic data was limited:
Great Britain's Public Sector Net Borrowing came in at GBP11.07 billion (expected GBP9.20 billion; previous GBP10.96 billion)
Swiss trade surplus expanded to CHF2.45 billion from CHF1.33 billion (expected surplus of CHF2.65 billion)
Among news of note:
European equities surged after Reuters reported the European Central Bank is seeking to buy corporate bonds on the secondary market. The news weighed on the euro, sending the single currency from 1.2815 into the 1.2750 area against the dollar.
Germany's Finance Minister Wolfgang Schaeuble said France and Germany will present a common position paper on investment and reform in December.

6:32 am: [BRIEFING.COM] Nikkei...14,804.28...-307.00...-2.00%. Hang Seng...23,088.58...+18.30...+0.10%.

6:32 am: [BRIEFING.COM] FTSE...6,323.75...+56.70...+0.90%. DAX...8,847.07...+132.30...+1.50%.

6:30 am: [BRIEFING.COM] S&P futures vs fair value: +12.00. Nasdaq futures vs fair value: +27.00.

Treasuries Decline as U.S. Home Sales Increase to One-Year High

By Daniel Kruger Oct 21, 2014 5:07 PM ET

Treasuries fell after a report showed existing home sales rose to their highest level in a year, indicating the U.S. economy is still improving amid slowing global growth.

The benchmark 10-year note yield increased as prospects for additional stimulus from the European Central Bank boosted equities and curbed demand for the safest assets. A government report tomorrow is forecast to show that U.S. inflation declined for a third consecutive month in September. Market volatility slowed and trading volume declined after reaching a record last week.

“This is a market that’s in suspended animation, even while risk markets are doing better today,” said George Goncalves, head of interest-rate strategy at Nomura Holdings Inc., one of 22 primary dealers that trade directly with the Federal Reserve. “We’re in a low inflation world with very highly accommodative central banks globally.”

The U.S. 10-year yield rose three basis points, or 0.03 percentage point, to 2.22 percent at 5 p.m. New York time, Bloomberg Bond Trader data show. It fell as much as six basis points. The 2.375 percent note due in August 2024 dropped 9/32, or $2.81 per $1,000 face amount, to 101 10/32.

The Standard & Poor’s 500 Index of stocks rose 2 percent, while all major indexes in Europe gained.

Price Swings

Volatility in the Treasury market reached a 13-month high of 101.28 on Oct. 15, as measured by the Bank of America Merrill Lynch MOVE index. It fell yesterday for a third day to 79.24 and has averaged 60.24 this year.

Trading of U.S. government securities at ICAP Plc, the world’s largest interdealer broker, was $312 billion, down from the $946 billion record set Oct. 15. The average volume at ICAP this year is $336 billion.

The Labor Department is likely to report tomorrow that consumer prices rose 1.6 percent in the 12 months ended September, according to the median forecast of 41 economists in a Bloomberg News survey. That’s down from 2.1 percent in June.

The gap between five-year yields on Treasury Inflation-Protected Securities and non-indexed U.S. debt with comparable maturity, traded at 1.53 percentage points. It reached 1.41 percentage points on Oct. 16, the lowest level since October 2011.

Neutral Stances

Treasuries investors were the most neutral in five months as of the week ended yesterday, according to a survey by JPMorgan Chase & Co.

Investors raised neutral bets to 65 percent from 54 percent to reach the highest level since the week ending May 19. Investors raised the proportion of net shorts to nine percentage points, from six percentage points the previous week. Outright shorts dropped to 22 percent from 26 percent, while outright longs dropped to 13 from 20 percent.

The ECB bought Italian covered bonds as it returned to the market for a second day, according to two people familiar with the matter.

Debt issued by Intesa Sanpaolo SpA (ISP) was included in the purchases, according to one of the people, who asked not to be identified because the information is private. The ECB bought short-dated French notes from Societe Generale SA and BNP Paribas SA as well as Spanish securities from other lenders yesterday.

Risk Spur

ECB buying “spurs risk-on and takes some of the fear bid out of the market,” said Larry Milstein, managing director in New York of government-debt trading at R.W. Pressprich & Co.

Sales of previously owned U.S. homes advanced 2.4 percent in September to a 5.17 million annual rate, the National Association of Realtors reported today in Washington. A gain of 1 percent was forecast in a Bloomberg News survey of economists.

“I don’t see the movement in the rates market as being an indicator of a slowdown in domestic economic growth,” said Jennifer Vail, head of fixed income at U.S. Bank Wealth Management in Minneapolis. “There are some fears of economic slowdown, but there aren’t any data points to support, at this point, a sharp economic slowdown, which is why we don’t believe the Fed’s going to be altering its path.”

Futures on federal funds indicate a 65 percent likelihood the Federal Reserve will raise interest rates by its December 2015 meeting.

The central bank, which holds a policy meeting Oct. 28-29, has held its short-term interest-rate target at zero to 0.25 percent since December 2008. The Fed has expanded its balance sheet assets to $4.5 trillion from less than $1 trillion in 2008 in an effort to stimulate growth after the global financial crisis.

To contact the reporter on this story: Daniel Kruger in New York at dkruger1@bloomberg.net

To contact the editors responsible for this story: Dave Liedtka at dliedtka@bloomberg.net Paul Cox, Greg Storey

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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