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)
wrbanalysis@gmail.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 @ $00.00 dollars or +0.00 points, Emini ES ($ES_F) futures @ $4687.50 dollars or +93.75 points, Light Crude Oil CL ($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 @ $4687.50 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

Trade Log: All of my trades were posted real-time in the timestamp ##TheStrategyLab free 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 in ##TheStrategyLab chat room 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=149&t=2219


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 Advance WRB Analysis Tutorial Chapters @ 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

Analysis -----> Trade Signals

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). All WRB Analysis Tutorial Chapters 1 - 12 are included in the purchase of the Volatility Trading Report (VTR).

Daily Trading Plan Routine @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=277&t=2948 contains brief information about trading plan, market context, brokers, trading time frames, position size management and other discussions.

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

Market Context Summaries

The below summaries by Bloomberg, Briefing, 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


Dow -202.83 at 17245.24, Nasdaq -77.20 at 4927.88, S&P -22.93 at 2023.04

The stock market ended a down week on a woeful note after the release of some disappointing economic data and uninspiring retail earnings. The S&P 500 lost 1.1%, widening this week's decline to 3.6% while the Nasdaq Composite (-1.5%) underperformed to end the week lower by 4.3%.

Equity indices spent the duration of the trading day in negative territory, pressured mostly by heavily-weighted consumer discretionary (-2.6%) and technology (-2.0%) sectors. Both cyclical groups traded well behind the broader market throughout the day and that underperformance prevented the market from staging a meaningful rebound. The S&P 500 briefly rallied above its 100-day moving average (2,034) in late morning action, but the move was retraced fully into the afternoon as the two influential sectors remained weak and the rest of the market gave in to the weakness.

3:35 pm: [BRIEFING.COM]

Commodities are ending the day lower, while the dollar index remains in positive territory
Dec WTI crude oil remained in the red today and closed out the session -2.6% at $40.68/barrel
Natural gas futures went on to climb higher today, leaving the Dec front-month nat gas contract up +4% at $2.36/MMBtu

Metals ended modestly lower today with Dec gold falling $0.20 to $1080.80/oz and Dec silver closing -0.4% to $14.19/oz

Dec copper fell one cent to $2.16/lb

2:55 pm:

[BRIEFING.COM] The major averages have slumped to new lows going into the final hour with the S&P 500 now down 1.0%.

This week was relatively quiet on the economic front, but things will be a bit more active next week. Monday's data will be limited to the 8:30 ET release of the Empire Manufacturing Index for November (Briefing.com consensus -6.0) while Tuesday will feature October CPI (consensus 0.2%), October Industrial Production (expected 0.1%), and NAHB Housing Market Index (expected 64.5).

Housing data will be in focus on Wednesday morning with October Housing Starts (consensus 1.173 million) and Building Permits (expected 1.137 million) scheduled for an 8:30 ET release while the FOMC Minutes from the October meeting will be released at 14:00 ET.

2:25 pm:

[BRIEFING.COM] Not much change in today's trading dynamic with the S&P 500 remaining lower by 0.8%.

The Q3 earnings season is all but over and the focus will now turn to retailers, an industry group that's known for announcing results at the tail end of the reporting period. Today, the group has suffered from a one-two punch of disappointing economic data and poor results from Nordstrom (JWN 52.82, -10.65) and Fossil (FOSL 33.44, -17.59).

Next week, Urban Outfitters (URBN 24.61, -1.54) will report after Monday's closing bell while Dick's Sporting Goods (DKS 41.14, -1.64), TJX (TJX 64.56, -3.69), Home Depot (HD 120.77, -3.04), and Wal-Mart (WMT 56.70, -0.25) will release their results on Tuesday morning to continue the retail parade.

2:00 pm:

[BRIEFING.COM] The major averages remain well in the red with the S&P 500 trading lower by 0.6%.

Eight sectors are back in the red with the consumer discretionary space extending its decline to 2.0% while technology has surrendered 1.3%. Elsewhere, the energy sector (-0.1%) has held up relatively well considering crude oil has tumbled 3.1% to $40.47/bbl. That being said, today's relative strength comes after the commodity-sensitive sector surrendered more than 5.0% over the past four days.

On the upside, the materials sector (+1.3%) holds the lead while health care (+0.2%) continues drifting just above its flat line.

1:35 pm:

[BRIEFING.COM] The major U.S. indices have resumed their move lower after attempting to bounce in recent trade.

A look inside the Dow Jones Industrial Average shows that Cisco (CSCO 25.90, -1.93), Nike (NKE 122.05, -3.93), and United Technologies (UTX 97.05, -2.17) are underperforming. Cisco is dragging the Dow lower after reporting its Q1 results and guiding for Q2 sales and earnings below analyst expectations. Nike on the other hand is seeing a sympathy move lower as the entire retail sector lags following this morning's weak retail sales data as well disappointing quarterly reports from Nordstrom (JWN 52.88, -10.59), Fossil (FOSL 33.70, -17.31), and Bebe Stores (BEBE 0.57, -0.38). United Technologies is pulling back following yesterday's outperformance.

Conversely, DuPont (DD 67.08, +0.97) is the best performing Dow-component as chemical names outperform following a Bloomberg report ChemChina launched and had a $42 bln takeover offer for Syngenta (SYT 73.56, +4.41) rejected.

Nearing the end of the day, the DJIA is poised to end the week lower by over 3.3%.

12:55 pm:

[BRIEFING.COM] The major averages trade lower across the board at midday, but they have erased a portion of their losses during recent action. The S&P 500 remains lower by 0.6% while the Nasdaq Composite (-0.8%) underperforms.

Equity indices began the day on a defensive note, pressured by disappointing earnings from a tech heavyweight and an uninspiring Retail Sales report for October (+0.1%; Briefing.com consensus 0.3%). In addition to the disappointing economic data, apparel and accessory retailers have been hit by weak quarterly results and/or guidance from Nordstrom (JWN 53.69, -9.78) and Fossil (FOSL 34.18, -16.83). The two names have tumbled 15.4% and 32.9%, respectively, while J.C. Penney (JCP 7.64, -1.15) has surrendered 13.0% despite reporting a slimmer than expected loss. Meanwhile, the broader SPDR S&P Retail ETF (XRT 42.79, -1.26) trades lower by 2.9% while the consumer discretionary sector (-1.7%) languishes at the bottom of the leaderboard.

Elsewhere, the technology sector (-1.3%) also trades well behind the broader market with shares of Cisco Systems (CSCO 26.01, -1.81) diving 6.5% in reaction to below-consensus guidance, which masked a three-cent beat. Other large cap tech names have fared better, but they have not been able to stay out of the red. Semiconductor names, meanwhile, have held up relatively well with the PHLX Semiconductor Index down 0.3%. Applied Materials (AMAT 17.40, +0.87) stands out, trading higher by 5.3%, in reaction to in-line earnings on below-consensus revenue.

The bulk of today's selling has been concentrated in the two cyclical sectors while other groups have spent the early action much closer to their flat lines. For instance, health care (+0.2%) has held a modest gain through the first half thanks to a solid showing from biotechnology as the iShares Nasdaq Biotechnology ETF (IBB 325.68, +5.57) stages a charge above its 50-day moving average (324.81).

Treasuries have traded comfortably in the green, but they have backed away from their highs as stocks climbed off lows. Still, the 10-yr yield remains lower by four basis points at 2.28%.

Economic data included Retail Sales, PPI, Michigan Sentiment, and Business Inventories:
Related Quotes

October Retail sales were up a weaker than expected 0.1% (Briefing.com consensus 0.3%), while sales, excluding autos, were up a weaker than expected 0.2% (Briefing.com consensus 0.4%)
Results for September were revised lower with total sales unchanged (from 0.1%) and sales excluding autos revised to -0.4% (from -0.3%)
The Producer Price Index for final demand declined 0.4% (Briefing.com consensus +0.1%) in October on top of an unrevised 0.5% decline in September
The index is down 1.6% year-over-year, which is a record 12-month decline for the final demand index
The downturn in October was led primarily by the index for final demand services, which declined 0.3% while the index for final demand goods declined 0.4%.
Excluding food and energy, PPI declined 0.3% (Briefing.com consensus +0.1%) versus an unrevised 0.3% decline in September
The preliminary reading for the University of Michigan Consumer Sentiment Index for November showed an uptick to 93.1 from the final reading of 90.0 for October and 88.8 in the same period a year ago
The Briefing.com consensus expected a reading of 92.0
The improvement in November was driven by higher readings for both the Current Economic Conditions Index (to 104.8 from 102.3) and the Index of Consumer Expectations (to 85.6 from 82.1)
Total business inventories increased 0.3% in September on top of an upwardly revised 0.1% increase for August (from 0.0%) while the Briefing.com consensus expected no change
The inventory-to-sales ratio edged up to 1.38 in September from 1.37 in August
In September 2014, the inventory-to-sales ratio stood at 1.31

12:25 pm:

[BRIEFING.COM] The major averages have bounce back considerably, spending the past 30 minutes in a steady charge higher. The S&P 500 has narrowed its loss to 0.4% and five sectors are now in the green while the financial space is dueling with its flat line.

On the upside, the materials sector (+1.6%) has bounced from recent weakness while energy (+0.4%) has also rebounded, but that move has been a bit more sluggish. Conversely, the consumer discretionary sector (-1.4%) remains under heavy pressure while technology (-1.0%) also trades well behind the broader market. In all likelihood, the two sectors will play a key role in determining where the market finishes the day. Retailers remain an area of focus with SPDR S&P Retail ETF (XRT 42.80, -1.24) trading lower by 2.8% at this juncture.

11:55 am:

[BRIEFING.COM] The major averages have tried to stage a sustained move off their lows, but that has not been an easy task as seven sectors continue showing losses between 0.1% (industrials) and 1.9% (consumer discretionary). Also of note, the top-weighted technology sector (-1.3%) continues trading well behind the broader market with its weakness offsetting the modest strength in health care (+0.2%).

As for health care, the countercyclical group has received support from biotechnology with iShares Nasdaq Biotechnology ETF (IBB 325.51, +5.40) climbing 1.8% to erase the bulk of its decline from yesterday. Taking a look at the bigger picture, the ETF has struggled with its 50-day moving average (324.81) over the past few days, but will look to end the week above that noteworthy level.

11:25 am:

[BRIEFING.COM] Equity indices remain pressured with the S&P 500 trading lower by 0.7% while the Nasdaq Composite (-0.9%) underperforms.

The benchmark index fell below its 200-day moving average (2064) yesterday and today, the index has continued its retreat, sliding below its 100-day average (2,034). As a result, the S&P 500 is back near levels last seen in mid-October. The energy sector was last month's standout, surging 11.3% in October, but the group has surrendered 6.3% this week alone. The growth-sensitive sector is down 1.3% today while crude oil has tumbled 3.0% to $40.48/bbl.

Elsewhere, Treasuries are near their best levels of the day with the 10-yr yield down four basis points at 2.28%.

10:55 am:

[BRIEFING.COM] Equity indices have continued their retreat with the Nasdaq (-0.9%) showing relative weakness while the S&P 500 (-0.7%) trades just a bit ahead.

The continued retreat has dragged most sectors into the red, leaving materials (+0.3%), utilities (+0.2%), and health care (+0.1%) above their flat lines. On the flip side, the consumer discretionary sector has extended its loss to 1.9%, suffering from disappointing earnings and a below-consensus retail sales report, while technology (-1.4%) also shows a considerable loss. The top-weighted sector has been pressured by disappointing earnings from Cisco Systems (CSCO 26.23, -1.60) while other large cap components have not fared much better.

That being said, biotechnology has held up well, evidenced by a 2.1% gain in the iShares Nasdaq Biotechnology ETF (IBB 326.78, +6.67).

10:40 am: [BRIEFING.COM]

The dollar traded positive overnight and early, holding modest gains going into the morning's US October retail sales and PPI data sets
Both retail sales (at +0.1% vs. +0.3% est) and PPI (-0.4% vs. +0.1% est) came in lighter-than-expected, causing a quick drop in the dollar
Following an initial sharp drop, the index then reversed and rallied to daily highs (near where it currently trades) putting notable pressure on oil and metals
The dollar is now +0.6% to 99.11
WTI trended modestly positive in early trade, before seeing a steep sell-off on the release of an IEA stockpile report and the stronger USD
The IEA report indicated that global oil stockpiles have risen to near ~3 bln barrels, noting a massive cushion from the addition of Iraqi and Russian supply
December crude is still holding losses, near its LoD at -2.8% to $40.60/barrel
Natural gas traded to strong gains ahead of its own EIA inventory storage report, which was expected to show a build of 51 bcf (down from the 4 wk avg. of 69 bcf)
Upon release of the report, which showed a build of 49 bcf, Natural gas rallied higher and is now +2.9% to $2.33/MMBtu
Precious metals are near-flat or modestly negative following the dollar's rally, with gold at flat to $1081.20/oz and silver at -0.4% to $14.17/oz
Copper is now holding losses of -0.4% to $2.16/lb, following tempered GDP growth metrics out of the EU and weakened lending conditions in China.

10:00 am:

[BRIEFING.COM] The S&P 500 remains lower by 0.3%.

Just released, the preliminary reading of the University of Michigan Consumer Sentiment survey for November rose to 93.1 from the reading of 90.0 that was reported in October. The Briefing.com consensus expected an uptick to 92.0.

Separately, Business Inventories rose 0.3% in September while the Briefing.com consensus expected no change. This followed the prior month's unrevised flat reading.

9:45 am:

[BRIEFING.COM] As expected, the major averages began the trading day in negative territory. The S&P 500 trades lower by 0.3% while the Nasdaq Composite (-0.5%) underperforms.

Five of ten sectors display opening losses with the early weakness concentrated in technology (-0.5%) and consumer discretionary (-0.9%). The underperformance of the discretionary sector is not surprising considering the October retail sales report missed estimates while Nordstrom (JWN 52.00, -11.47) and Fossil (FOSL 35.81, -15.12) have plunged 18.1% and 29.6%, respectively, in reaction to cautious guidance.

Elsewhere, Treasuries have returned near their highs with the 10-yr yield down three basis points at 2.29%.

9:14 am: [BRIEFING.COM] S&P futures vs fair value: -4.70. Nasdaq futures vs fair value: -9.40.

The stock market is on track for a modestly lower open with S&P 500 futures trading five points below fair value after showing volatility in the wake of this morning's economic data.

Specifically, October producer prices fell 0.4% while the Briefing.com consensus expected an increase of 0.1%. Meanwhile, core producer prices decreased 0.3% while the consensus expected an uptick of 0.1%. Separately, October retail sales rose 0.1% while the Briefing.com consensus expected an increase of 0.3%. The prior month's reading was left unrevised at +0.1%. Excluding autos, retail sales increased 0.2% while the consensus expected an increase of 0.4%.

Index futures stumbled to new pre-market lows immediately after the data was released, but a swift rebound has ensued, putting index futures back where they were prior to the data. However, it is worth mentioning that the Dollar Index (99.00, +0.44) also stumbled, but that move has been followed by a charge to a fresh session high.

Elsewhere, Treasuries spiked to new highs, but they have backed away from those levels. That being said, the 10-yr yield remains lower by two basis points at 2.30%.

On the corporate front, Cisco Systems (CSCO 26.65, -1.18) is on track to open lower by 4.2% after below-consensus guidance overshadowed a three-cent beat. Also of note, Nordstrom (JWN 50.35, -13.12) and Fossil (FOSL 39.20, -11.81) have both given up more than 20.0% in reaction to disappointing results and/or guidance.

8:55 am: [BRIEFING.COM] S&P futures vs fair value: -3.00. Nasdaq futures vs fair value: -7.90.

The S&P 500 futures trade three points below fair value.

Equity markets across Asia ended the week on a lower note, partially playing catch down to the declines seen in US equities yesterday. Starting in China, the Shanghai Composite lost 1.4%. Recall that yesterday weaker than expected lending data was released after the Mainland markets were closed, thus the Chinese stocks were hit in response. There was also chatter overnight that the yuan may be at risk of not being included in the IMF's SDR basket after the IMF offered a cautious tone surrounding the recent economic data out of China. Japanese stocks fell as well, with the Nikkei ending lower by 0.5%, representing its first losing day in nearly 2 weeks. The recent strength in the yen over the past couple of sessions may have also kept investors at bay.

In economic data:
Japan's September Capacity Utilization +1.5% month-over-month (prior -0.9%), September Industrial Production +1.1% month-over-month (expected +1.0%; previous +1.0%), and Tertiary Activity Industry Index -0.4% month-over-month (expected +0.2%; last +0.2%)
Hong Kong's Q3 GDP +0.9% quarter-over-quarter (prior 0.4%); +2.3% year-over-year (consensus 1.8%; last 2.8%)
Singapore's September Retail Sales -3.7% month-over-month (prior +5.4%); +4.6% year-over-year (expected +6.5%; prior +6.6%)

------

Japan's Nikkei declined 0.5%. The Nikkei started to trade lower right out of the gate, falling over 1% after the first hour of trade. The index managed to gain half of the early losses back before the mid-way point of the session, but after that, the range was very tight. Some of the movers that lagged the broader market were Showa Shell (-1.3%), Sony Financial (-1.2%) and T&D Holdings (-1.1%) all after reporting earnings. On the positive side, Nissin Food Holdings closed 8.1% higher after the co posted better than expected earnings results.
Hong Kong's Hang Seng declined 2.2% and finished at its lows in a seesaw session. Although the index opened lower, trading was muted and rangebound thereafter, with volumes lighter than average. Among the consumer discretionary space, Sun Art Retail Group lost 3.2% after it reported its 9-month earnings. Among the Industrials, Yue Yuen Industrial also dropped 5.4% after the company posted a weaker than expected Sep quarter.
China's Shanghai Composite declined 1.4%. The index opened roughly 0.5% lower, and traded back to the unchanged level shortly after the first hour of trade. But that was as far as the market would go, with some of the chatter mentioned above weighing on stocks. A final attempt to rally in the last hour was stalled and left the composite closing near session lows. Some of the most notable movers were PetroChina (-4.1%), CNOOC (-4.1%) and China Unicom (-1.9%).

Major European indices trade lower across the board with France's CAC (-1.1%) at the bottom of the barrel. Regional markets are on track to erase last week's gains and then some.

In economic data:
Eurozone Q3 GDP +0.3% quarter-over-quarter (expected 0.4%; previous 0.4%); +1.6% year-over-year (expected 1.7%; last 1.5%)
Germany's Q3 GDP +0.3% quarter-over-quarter, as expected (prior 0.0%); +1.8% year-over-year, as expected (last 1.6%)
France's Q3 GDP +0.3%, as expected (prior 0.0%) and Nonfarm Payrolls +0.1% quarter-over-quarter, as expected (last 0.0%)
Italy's Q3 GDP +0.2% quarter-over-quarter (expected 0.3%; last 0.3%); +0.9% year-over-year (consensus 1.0%; last 0.6%). Separately, October CPI +0.2% month-over-month, as expected; +0.3% year-over-year, as expected
Spain's October CPI +0.6% month-over-month (consensus 0.7%; prior -0.3%); -0.7% year-over-year, as expected (previous -0.9%)
Swiss October PPI +0.2% month-over-month (consensus -0.2%; last -0.1%); -6.6% year-over-year (expected -6.9%; previous -6.8%)

------

Germany's DAX has given up 0.7% with most components trading in the red. Heavyweights Deutsche Bank, Siemens, Merck, and SAP are down between 1.3% and 1.8% while Volkswagen outperforms, trading higher by 2.6%.
UK's FTSE is lower by 0.9% with consumer and health care names under pressure. Burberry, Pearson, Hikma Pharmaceuticals, Shire, and GlaxoSmithKline show losses between 1.5% and 3.4%. On the upside, miners outperform with Anglo American, BHP Billiton, Rio Tinto, and Fresnillo up between 0.2% and 2.4%.
In France, the CAC is down 1.1% amid relative weakness in consumer names. Louis Vuitton, Kering, Carrefour, Danone, and L'Oreal lead the decline with losses between 1.6% and 2.9%. Automakers outperform with Peugeot and Renault both up near 0.9%.

8:32 am: [BRIEFING.COM] S&P futures vs fair value: -4.00. Nasdaq futures vs fair value: -11.70.

The S&P 500 futures trade four points below fair value.

October producer prices fell 0.4% while the Briefing.com consensus expected an increase of 0.1%. Core producer prices decreased 0.3% while the consensus expected an uptick of 0.1%.

Separately, October retail sales rose 0.1% while the Briefing.com consensus expected an increase of 0.3%. The prior month's reading left unrevised at 0.1%. Excluding autos, retail sales increased 0.2% while the consensus expected an increase of 0.4%.

8:00 am: [BRIEFING.COM] S&P futures vs fair value: -5.00. Nasdaq futures vs fair value: -14.70.

U.S. equity futures trade modestly lower after slipping to their worst levels of the morning within the past 90 minutes. The S&P 500 futures hover five points below fair value.

Meanwhile, Treasuries have built on yesterday's gains, but the 10-yr note has backed away from its high, leaving the benchmark yield down one basis point at 2.31%.

On the economic front, October PPI (Briefing.com consensus 0.1%) and October Retail Sales (consensus 0.3%) will be reported at 8:30 ET while September Business Inventories (expected 0.0%) and the preliminary reading of the Michigan Sentiment Index for November (consensus 92.0) will be released at 10:00 ET.

In U.S. corporate news of note:

Cisco Systems (CSCO 26.25, -1.58): -5.7% after below-consensus guidance overshadowed a three-cent beat.
Nordstrom (JWN 50.40, -13.07): -20.6% after missing earnings/revenue expectations and guiding lower.
Fossil (FOSL 40.50, -10.51): -20.6% after below-consensus revenue and cautious guidance overshadowed a bottom-line beat.
J.C. Penney (JCP 8.37, -0.42): -4.8% following a smaller than expected loss and reaffirmed guidance.
El Pollo Loco (LOCO 9.95, -1.57): -13.6% in reaction to better than expected earnings on below-consensus revenue.

Reviewing overnight developments:

Asian markets ended lower. Japan's Nikkei -0.5%, China's Shanghai Composite -1.4%, and Hong Kong's Hang Seng -2.2%
Economic data was limited:
Japan's September Capacity Utilization +1.5% month-over-month (prior -0.9%), September Industrial Production +1.1% month-over-month (expected +1.0%; previous +1.0%), and Tertiary Activity Industry Index -0.4% month-over-month (expected +0.2%; last +0.2%)
Hong Kong's Q3 GDP +0.9% quarter-over-quarter (prior 0.4%); +2.3% year-over-year (consensus 1.8%; last 2.8%)
Singapore's September Retail Sales -3.7% month-over-month (prior +5.4%); +4.6% year-over-year (expected +6.5%; prior +6.6%)
In news:
In Japan, Finance Minister Taro Aso and Minister for Economic Revitalization Akira Amari said there are no plans for an extra budget even if Q3 GDP indicates contraction, which would put Japan back in a technical recession. The GDP report will be released on Sunday evening and is expected to show a 0.1% decline quarter-over-quarter (-0.2% year-over-year)

Major European indices trade lower across the board. UK's FTSE -0.9%, Germany's DAX -0.8%, and France's CAC -1.1%. Elsewhere, Italy's MIB -0.8% and Spain's IBEX -0.8%
In economic data:
Eurozone Q3 GDP +0.3% quarter-over-quarter (expected 0.4%; previous 0.4%); +1.6% year-over-year (expected 1.7%; last 1.5%)
Germany's Q3 GDP +0.3% quarter-over-quarter, as expected (prior 0.0%); +1.8% year-over-year, as expected (last 1.6%)
France's Q3 GDP +0.3%, as expected (prior 0.0%) and Nonfarm Payrolls +0.1% quarter-over-quarter, as expected (last 0.0%)
Italy's Q3 GDP +0.2% quarter-over-quarter (expected 0.3%; last 0.3%); +0.9% year-over-year (consensus 1.0%; last 0.6%). Separately, October CPI +0.2% month-over-month, as expected; +0.3% year-over-year, as expected
Spain's October CPI +0.6% month-over-month (consensus 0.7%; prior -0.3%); -0.7% year-over-year, as expected (previous -0.9%)
Swiss October PPI +0.2% month-over-month (consensus -0.2%; last -0.1%); -6.6% year-over-year (expected -6.9%; previous -6.8%)
Among news of note:
European markets trade broadly lower and are on track to erase last week's gains and then some. The euro, meanwhile, has held its ground against the greenback, adding about 30 pips from last week's settlement to 1.0775

5:53 am: [BRIEFING.COM] S&P futures vs fair value: -0.50. Nasdaq futures vs fair value: -4.50.

5:53 am: [BRIEFING.COM] Nikkei...19596.91...-100.90...-0.50%. Hang Seng...22396.14...-492.80...-2.20%.

5:53 am: [BRIEFING.COM] FTSE...6138.74...-39.60...-0.60%. DAX...10761.10...-21.50...-0.20%.

Special thanks to Bloomberg, Briefing, 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

http://www.thestrategylab.com
Phone: +1 708 572-4885
Business Hours: 8am - 5pm est (Mon - Fri)
Skype Messenger: kebec2002
wrbanalysis@gmail.com