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 @ $0.00 dollars or +0.00 points, Emini ES ($ES_F) futures @ $1562.50 dollars or +31.25 points, Light Crude Oil CL ($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 @ $1562.50 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=2216


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.

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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


4:15 pm: [BRIEFING.COM] The stock market ended Tuesday on a mixed note as the Nasdaq Composite (-0.2%) settled with a modest loss while the Dow Jones Industrial Average (+0.2%) and S&P 500 (+0.2%) overcame the weakness in the technology sector (-0.7%), eking out slim gains.

Equities stumbled at the start of the trading day with the opening move paced by the largest stock in terms of market cap. Specifically, Apple (AAPL 116.73, -3.84) fell 3.2% in reaction to a Credit Suisse report, which indicated the tech giant has cut its orders for iPhone 6s components by as much as 10.0%. Shares of Apple slid below their 100-day moving average (117.33) after struggling with the 200-day average (122.06) over the past few days. Meanwhile, supplier names like CirrusLogic (CRUS 29.43, -2.78), Broadcom (BRCM 51.45, -1.74), AvagoTechnologies (AVGO 119.86, -6.64) lost between 3.3% and 8.6% while the PHLX Semiconductor Index fell 1.8%.

Apple's weakness kept the technology sector (-0.7%) deep in the red throughout the session, which in turn, weighed on the Nasdaq. Meanwhile, six of the remaining nine sectors settled in the green. That included the health care sector (+1.0%), which gathered steam late in the day while biotechnology recovered from early weakness. The iShares Nasdaq Biotechnology ETF (IBB 331.96, +1.38) climbed 0.4% after being down more than 1.0% in the early going.

Elsewhere, influential sectors like consumer discretionary (+0.7%) and financials (+0.5%) held slim gains in morning action, but extended higher in the afternoon. Also of note, the energy sector (+0.2%) settled just above its flat line while crude oil rallied 0.8% to $44.21/bbl. Meanwhile, the other commodity-linked sector-materials (-0.7%)-spent the day at the bottom of the leaderboard.

Staying on the cyclical side, the industrial sector (unch) struggled throughout the day with transport stocks responsible for some of the weakness. However, the Dow Jones Transportation Average returned to unchanged by the end of the day. It is worth noting Norfolk Southern (NSC 88.57, -0.05) shed just 0.1% after surging 11.0% yesterday with today's downtick taking place after Canadian Pacific (CP 139.95, -2.23) denied interest in NSC.

Treasuries snapped their six-day skid with the 10-yr note settling near its high, dropping the benchmark yield three basis points to 2.32%.

Today's participation was just below average with about 820 million shares changing hands at the NYSE floor.

Economic data was limited to Import/Export Prices and Wholesale Inventories:

Export prices, excluding agriculture, decreased 0.3% in October after decreasing 0.5% (revised from -0.6%) in the prior reading
Excluding oil, import prices decreased 0.3%, which followed last month's decrease of 0.2% (revised from -0.3%)
Wholesale inventories increased 0.5% in September on top of an upwardly revised 0.3% increase (from 0.1%) for August
The Briefing.com consensus expected an increase of 0.1%
Wholesale sales increased 0.5% after declining 0.9% in August
The inventory-to-sales ratio held steady versus the prior month at 1.31, but is up from 1.20 in the same period a year ago

Investors will not receive any economic data tomorrow and the bond market will be closed for Veterans Day.

Nasdaq Composite +7.3% YTD
S&P 500 +1.1% YTD
Dow Jones Industrial Average -0.4% YTD
Russell 2000 -1.2% YTD

3:35 pm: [BRIEFING.COM]

The dollar index trended strong in early trade, before seeing a modest pull-back from mid-day highs most recently
Sentiment ahead of this week's US employment data and moderate moves in the Euro and Yen drove a good portion of the dollar's action this session
The index is now holding gains for the day at +0.3% to 99.28
Gold closed near-unchanged, avoiding a sell-off seen in the more-industrial silver. The December contract ended $0.50 higher at $1088.40/oz
Copper and silver both closed negative for the day, following underwhelming Chinese copper-import data which showed a 4.2% Y/Y decline (for the first 10 months of this year)- re-affirming market conviction of weakness in global industrial demand for base metals.
Copper closed $0.01 lower (-0.4%) to $2.22/lb, with silver $0.03 lower (-0.1%) to $14.37
Crude rallied to highs near the $44.70/barrel level in mid-morning trade, amidst (and despite) a report by the IEA which called for a base-case of $80/barrel in 2020 and included the expectation for tepid demand growth in the intermediate-term.
The report stated that "developing Asia, a region in which India takes over from China as the largest source of consumption growth, is the leading demand centre for every major element of the world's energy mix in 2040-oil, gas, coal, renewables and nuclear. By 2040, China's net oil imports are expected to be nearly five times those of the United States, while India's easily exceed those of the European Union."
December WTI held a good portion of its gain going into the close, ending up $0.37 (+0.8%) to $4.24/barrel. Natural gas closed $0.03 higher (+1.3%) at $2.33/MMBtu
Agricultural commodities were driven to increased volatility this session, by the release of the USDA WASDE report mid-session
The report included a bearish view for corn, and calls for a fall in the world supply estimates for soybeans and wheat
Corn closed $0.08 lower (-2.2%) at $3.60/bushel, Wheat closed $0.08 lower (-1.6%) at $4.93/bushel and Soybeans closed $0.16 lower (-1.8%) at $8.58/bushel

2:55 pm:

[BRIEFING.COM] The major averages have extended to new session highs with the S&P 500 now up 0.2% while the Nasdaq (-0.3%) remains behind.

This week has been relatively quiet on the economic front and things will remain that way until Friday's Retail Sales report (Briefing.com consensus +0.3%). As for today, investors received the Wholesale inventories report for September, which showed an increase of 0.5% on top of an upwardly revised 0.3% increase (from 0.1%) for August. The Briefing.com consensus expected an increase of 0.1% in September.

Inventories of durable goods were down 0.4% month-over-month, led by a 2.2% decline in metals inventories and a 1.7% decline in computer equipment inventories. Meanwhile, inventories of nondurable goods were up 1.9%, bolstered by a 4.4% jump in drug inventories and a 6.7% increase in farm product inventories.

Wholesale sales increased 0.5% after declining 0.9% in August. Durable wholesale sales were up 0.7%, helped by a 2.3% jump in wholesale auto sales. Nondurable wholesale sales rose 0.3%, aided by a 2.3% increase in wholesale apparel sales.

The inventory-to-sales ratio held steady versus the prior month at 1.31, but is up from 1.20 in the same period a year ago.

2:30 pm:

[BRIEFING.COM] The major averages remain near their recent levels with the S&P 500 (-0.1%) hovering just below its flat line as relative weakness in the technology sector (-0.9%) outweighs gains in six other groups.

That being said, the industrial sector (-0.2%) has also exerted some pressure on the broader market with large cap names like Boeing (BA 144.77, -1.21) and United Technologies (UTX 98.50, -0.52) down 0.9% and 0.5%, respectively. In addition, transport stocks continue showing relative weakness with the Dow Jones Transportation Average trading lower by 0.2%.

Elsewhere, the health care sector has extended its gain to 0.5% while biotech names have climbed off their recent levels with iShares Nasdaq Biotechnology ETF (IBB 311.08, +0.50) now up 0.2%.

1:55 pm:

[BRIEFING.COM] Not much change in today's trading dynamic as the S&P 500 (unch) continues lurking near its flat line while the Nasdaq (-0.4%) trails.

The top-weighted technology sector (-0.9%) remains well behind the broader market with Apple (AAPL 116.67, -3.88) now down 3.2% amid demand concerns surrounding the iPhone. It is worth noting that today's decline has dropped the stock below its 100-day moving average (117.33) after struggling near the 200-day average (122.06) over the past four sessions.

Elsewhere among large cap tech names, Microsoft (MSFT 53.52, -0.64) and Intel (INTC 33.17, -0.18) hold respective losses of 1.2% and 0.5% while Alphabet (GOOGL 755.29, +0.52), Visa (V 79.18, +1.28), and Facebook (FB 107.78, +1.29) hold gains between 0.1% and 1.7%.

1:35 pm:

[BRIEFING.COM] The major U.S. indices continue to linger in negative territory in a sideways trade.

A look inside the Dow Jones Industrial Average shows that Apple (AAPL 116.65, -3.92), Microsoft (MSFT 53.35, -0.81), and DuPont (DD 65.47, -0.92) are underperforming. Apple shares are lagging following a cautious note from Credit Suisse citing channel checks in Asia, while DuPont is giving back a portion of yesterday's gains.

Conversely, Visa (V 79.06, +0.16) is the best-performing Dow component.

Trading flat on the day, McDonald's (MCD 112.89, -0.04) shares are currently halted as the company holds its yearly investor day. Among materials covered, the company affirmed that after a close evaluation, it will not pursue a REIT transaction.
Related Quotes

Failing to bounce back from yesterday's decline, the DJIA has pushed further into the red for the year, now sporting losses of 0.65% for 2015.

Elsewhere, the Treasury's $24 bln 10-year not auction at the top of the hour drew a high yield of 2.304% on a bid-to-cover of 2.58.

12:55 pm:

[BRIEFING.COM] The major averages trade in the red at midday with the Dow Jones Industrial Average (-0.1%) and S&P 500 (-0.1%) hovering near their flat lines while the Nasdaq Composite (-0.5%) underperforms due to relative weakness in technology and biotechnology.

Equity indices have faced some selling pressure in the early going, but the majority of the selling has been concentrated in just a few areas while six sectors hold gains. The utilities sector (+0.8%) has led since the start while the remaining groups hold slimmer gains than 0.4%. Notably, the health care sector (+0.3%) has held its ground despite continued struggles in biotechnology. To that point, the iShares Nasdaq Biotechnology ETF (IBB 328.92, -1.66) is lower by 0.5% with Valeant Pharmaceuticals (VRX 83.68, -1.73) down 1.9% to continue its recent woes. Also of note, Mallinckrodt (MNK 61.16, +3.15) was down near 5.0% earlier, but now trades higher by 5.2% after Andrew Left of Citron Research appeared on CNBC to discuss yesterday's allegations against MNK.

Biotechnology has contributed to the underperformance in the Nasdaq, but the technology sector (-0.9%) has also done some damage. Specifically, Apple (AAPL 117.00, -3.57) trades lower by 3.0% after Credit Suisse raised concerns about the company reducing its orders from suppliers. Accordingly, supplier names like Cirrus Logic (CRUS 29.91, -2.30), Broadcom (BRCM 52.01, -1.18), Avago Technologies (AVGO 121.32, -5.18) show losses between 2.2% and 7.0%.

Elsewhere, the industrial sector (-0.3%) has also weighed on the broader market with transport stocks on the defensive. The Dow Jones Transportation Average is lower by 0.3% with Ryder System (R 68.53, -2.22) down 3.1% while Norfolk Southern (NSC 88.29, - 0.33) has given up 0.4% after Canadian Pacific (CP 139.90, -2.28) denied interest in NSC. Recall that yesterday, Norfolk Southern surged 11.0% after Bloomberg reported the company may be acquired by Canadian Pacific.

Unlike stocks, Treasuries have held slim gains through the bulk of the day with the 10-yr yield currently down three basis points at 2.32%.

Economic data was limited to Import/Export Prices and Wholesale Inventories:

Export prices, excluding agriculture, decreased 0.3% in October after decreasing 0.5% (revised from -0.6%) in the prior reading
Excluding oil, import prices decreased 0.3%, which followed last month's decrease of 0.2% (revised from -0.3%)
Wholesale inventories increased 0.5% in September on top of an upwardly revised 0.3% increase (from 0.1%) for August
The Briefing.com consensus expected an increase of 0.1%
Wholesale sales increased 0.5% after declining 0.9% in August
The inventory-to-sales ratio held steady versus the prior month at 1.31, but is up from 1.20 in the same period a year ago

12:25 pm:

[BRIEFING.COM] Recent action saw the S&P 500 inch back to its flat line while the Nasdaq (-0.5%) remains behind due to the continued weakness in technology (-0.8%) and biotechnology.

As mentioned earlier, the technology sector has been pressured by Apple (AAPL 117.00, -3.57) as the stock trades lower by 3.0% after Credit Suisse raised concerns about the company reducing its orders from suppliers. Accordingly, supplier names like Cirrus Logic (CRUS 29.91, -2.30), Broadcom (BRCM 52.12, -1.07), Avago Technologies (AVGO 121.77, -4.73) show losses between 2.0% and 7.2%.

On a separate note, it was just reported that the Portuguese government has collapsed due to a disagreement over austerity measures with the parliament approving a motion of no confidence against Prime Minister Pedro Passos Coelho. This was expected and will likely lead to a far-left coalition government. The euro remains near its recent levels, trading at 1.0688 against the dollar.

11:55 am:

[BRIEFING.COM] Equity indices continue ranging near their recent levels, but it is worth noting that six sectors are in the green once again. However, their gains are limited with five groups up no more than 0.2% while the countercyclical utilities sector (+0.9%) outperforms.

On the downside, technology (-0.6%) and industrials (-0.5%) remain weak, but it is the materials sector (-1.1%) that trades at the bottom of the leaderboard as low commodity prices continue pressuring the group. On a somewhat related note, the energy sector (+0.1%) has held just above its flat line while crude oil trades up 1.4% at $44.49/bbl after showing a modest loss earlier.

Elsewhere, the Dollar Index (99.39, +0.39) is higher by 0.4%, hovering at its best level since mid-April.

11:30 am:

[BRIEFING.COM] Equity indices continue trading in the red with the S&P 500 lower by 0.3%.

Technology (-0.8%) and industrials (-0.8%) remain responsible for the bulk of today's weakness while the health care sector (+0.1%) holds a slim gain despite a struggling biotechnology group. To that point, the iShares Nasdaq Biotechnology ETF (IBB 328.83, -1.75) is lower by 0.5% with Valeant Pharmaceuticals (VRX 79.86, -5.55) and Mallinckrodt (MNK 56.42, -1.58) showing respective losses of 6.6% and 2.7%.

Earlier today, Valeant management held a conference call to address continued questions about its revenue recognition practices. During the call, the company confirmed previously announced plans to terminate its relationship with the specialty pharmacy in question.

Meanwhile, MNK, like Valeant, has been targeted by Citron Research with Citron alleging that Mallinckrodt's accounting practices are worse than those at Valeant. Mallinckrodt's has denied any wrongdoing, but its shares trade lower by 3.3% following yesterday's 17.0% dive.

10:55 am:

[BRIEFING.COM] The major averages have stooped to new lows in recent action with the S&P 500 (-0.2%) returning into the red after a short-lived appearance just north of its flat line. That brief strength was fueled by opening gains in most sectors, but the picture has change a bit since then.

The top-weighted technology sector has extended its decline to 0.9% while the financial sector (-0.1%) has turned negative after showing early strength. Elsewhere, energy (-0.3%) and industrials (-0.4%) also trade in negative territory.

Notably, the industrial sector has been pressured by transport stocks, evidenced by a 0.7% decline in the Dow Jones Transportation Average. Norfolk Southern (NSC 86.39, -2.23) has surrendered 2.6% after Canadian Pacific (CP 139.77, -2.41) denied interest in NSC. That being said, NSC remains up 8.2% for the week following yesterday's Bloomberg report about a potential deal between the two rail heavyweights.

10:35 am: [BRIEFING.COM]

The dollar traded in a modest range overnight and in early trade, on a lack of market-moving economic data and modest movements in the Yen and Euro.
The index's early calm was mirrored by December gold trading, as the market looks near-term to Thursday's US initial/continuing unemployment data.
The dollar has most recently seen a small rally to modest positive's at +0.3% to 99.39, while gold is near unchanged at -0.1% to $1087.70/oz
Crude oil trended slightly positive overnight/early, before seeing a rally on the open of pit-trading, to moderate positives for the session
The late-move in WTI stands in contrast to a recent release by the IEA- which essentially forecasted that prices will need until 2020 to recover to $80/barrel
The base-case of $80/barrel in 2020 for the report, also included the expectation for tepid demand growth in the intermediate-term
Nevertheless oil is still holding onto late gains, now at +0.9% to $44.25/barrel
Natural gas trending moderately higher this morning, at +2.4% to $2.35/MMBtu
Both copper (and silver indirectly) are trading negative, after Chinese copper-import data showed a 4.2% Y/Y decline (to ~3.8 mln tons) for the first 10 months of this year
Copper is now -0.8% to $2.21/lb while silver is -0.7% to $14.32/oz

10:00 am:

[BRIEFING.COM] The S&P 500 has ticked above its flat line while the Nasdaq (-0.4%) remains behind.

Just released, September wholesale inventories rose 0.5% while the Briefing.com consensus expected an increase of 0.1%. Today's report followed last month's revised increase of 0.3% (from +0.1%).

9:40 am:

[BRIEFING.COM] The major averages have slipped lower to start the trading day with the Nasdaq Composite (-0.6%) leading the way while the S&P 500 hovers just below its flat line.

The early relative weakness in the Nasdaq is largely due to a 2.3% decline in the shares of Apple (AAPL 117.54, -3.03) as the stock trades lower in reaction to a Credit Suisse report, which indicated the tech giant has cut its orders for iPhone 6s components by as much as 10.0%. Apple's weakness has put an early damper on the technology sector (-0.9%) while most other groups trade in the green. Notably health care (+0.6%) and financials (+0.1%) trade ahead of the broader market.

Treasuries remain little changed with the 10-yr yield at 2.35%, but they could be on the move following the Wholesale Inventories report (Briefing.com consensus +0.1%), which will be released at 10:00 ET.

9:16 am: [BRIEFING.COM] S&P futures vs fair value: -5.00. Nasdaq futures vs fair value: -18.90.

The stock market is on track for a modestly lower open with S&P 500 futures trading five points below fair value. Index futures held larger losses just two hours ago, but they have cut their decline in half.

The rebound off lows peaked just ahead of the release of economic data, which showed that export prices, excluding agriculture, decreased 0.3% in October after decreasing 0.6% in the prior reading. Excluding oil, import prices decreased 0.4%, which followed last month's decrease of 0.3%. The greenback backed away from its best level of the day, but remains stronger against other currencies with the Dollar Index (99.27, +0.27) up 0.3%.

One more economic report will be released later today with September Wholesale Inventories (Briefing.com consensus 0.1%) expected at 10:00 ET.

Unlike equity futures, Treasuries traded in the green earlier, but they have returned to unchanged with the 10-yr yield at 2.35% after testing the 2.33% mark earlier.

Things have been relatively quiet on the corporate front this morning, but homebuilders are likely to see increased activity after D.R. Horton (DHI 29.25, +0.48) reported a one-cent beat and raised its quarterly dividend 28.0% to $0.08 while Beazer Homes (BZH 13.50, -0.01) missed revenue estimates on earnings that may not compare to analyst expectations.

8:52 am: [BRIEFING.COM] S&P futures vs fair value: -4.20. Nasdaq futures vs fair value: -18.00.

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

Asian markets ended Tuesday on a mostly lower note while Japan's Nikkei (+0.2%) eked out a modest gain amid reports Prime Minister Shinzo Abe is looking at lowering the corporate tax rate below 30.0%. That being said, the most significant data point released in Asia was China's October CPI, which came in below expectations at +1.3% (expected 1.5%). Although the initial speculation was that the decreased risk of inflation may open the door for further stimulus measures, the Shanghai Composite did not react as such, finishing down 0.2% on the day.

In economic data:
China's October CPI -0.3% month-over-month (expected -0.2%; previous 0.1%); +1.3% year-over-year (consensus 1.5%; prior 1.6%). Separately, October PPI -5.9% year-over-year (consensus -5.8%; previous -5.9%)
Japan's September Current Account JPY1.47 trillion (expected JPY2.24 trillion; previous JPY1.65 trillion), October Bank Lending +2.5% year-over-year (consensus 2.6%; previous 2.6%), and October Economy Watchers Current Index 48.2, as expected (prior 47.5)
Australia's September Home Loans +2.0% month-over-month (expected 0.1%; previous 1.5%) and October NAB Business Confidence 2 (expected 3; previous 5)
New Zealand's October Electronic Card Retail Sales 0.0% (expected 0.3%; previous 0.9%); +5.6% year-over-year (last 6.1%)

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Japan's Nikkei increased 0.2%. Shares were mixed across the board, and my have begun a consolidation period with the index trading higher for an 8th straight day. Health Care (+1.4) and Consumer Discretionary (+0.6%) names led the pack, while weakness was seen in Utilities (-1.1%), Energy (-1.1%), and Materials (-0.9%). Among the consumer names, Toray Industries was flat on the day after it released its first half earnings results.
Hong Kong's Hang Seng declined 1.4% and finished at its lows in a seesaw session. The index was weaker on the day, led lower by Macau gaming names, which saw sharp declines after Wells Fargo lowered its outlook for Macau's November gaming revenues. On that token, Galaxy Entertainment was down 4%, while Sands China dropped 3.3%. PetroChina (-2.2%) and CNOOC (-1.8%) also closed lower with energy prices continuing to be suppressed.
China's Shanghai Composite declined 0.2% after being down shortly after the start of trading. Participants bought the dip, although some selling pressure emerged in the final hour to tip the market back into negative territory. With the market absent of many significant movers, China Merchants Property Dev Co finished the day down 1.3% after it released its latest sales update for October. Likewise, Universal Scientific Industrial Shanghai Co settled 1.1% lower after it reported its latest earnings.

Major European indices trade mostly lower, but they have climbed off their worst levels of the day. Elsewhere, British Prime Minister David Cameron said there will be no second vote on the country's membership in the European Union; however, Mr. Cameron indicated he intends to establish "a British model of membership" for member states that do not use the euro.

Economic data was limited:
France's September Industrial Production +0.1% month-over-month, as expected (prior 1.7%)
Italy's September Industrial Production +0.2% month-over-month (expected 0.5%; prior -0.5%); +1.7% year-over-year (consensus 1.8%; previous 1.0%)
Swiss October Unemployment Rate held at 3.4%, as expected

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Germany's DAX has returned to its flat line with help from Adidas, Daimler, and Continental. The three names are up between 0.5% and 1.1%. On the downside, Lufthansa has surrendered 1.7% amid news cabin crews will expand their strike to all flights on Wednesday. Financials also lag with Deutsche Bank and Commerzbank down 1.1% and 0.8%, respectively.
France's CAC trades down 0.3% with most components in the red. Growth-sensitive names lead the slide with Vinci, Saint Gobain, Lafarge, and Schneider Electric down between 1.5% and 2.4%. On the upside, countercyclical names outperform with Orange and Veolia Environnement up 1.4% and 0.7%, respectively.
UK's FTSE is lower by 0.3% with consumer names among the laggards. Burberry, Morrison Supermarkets, and Tesco show losses between 2.5% and 3.3%. Telecom and media names outperform with Vodafone, BT Group, Pearson, and ITV have gained between 0.6% and 4.7%. Vodafone leads the pack in reaction to better than expected results and upbeat guidance.

8:31 am: [BRIEFING.COM] S&P futures vs fair value: -4.50. Nasdaq futures vs fair value: -16.50.

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

Export prices, excluding agriculture, decreased 0.3% in October after decreasing 0.6% in the prior reading. Excluding oil, import prices decreased 0.4%, which followed last month's decrease of 0.3%.

7:58 am: [BRIEFING.COM] S&P futures vs fair value: -6.00. Nasdaq futures vs fair value: -18.10.

U.S. equity futures hold modest losses amid cautious action overseas. The S&P 500 futures hover six points below fair value after hitting pre-market lows within the past few minutes.

Meanwhile, Treasuries sit near their best levels of the morning with the 10-yr yield down almost three basis points at 2.32%.

The Tuesday session will be relatively light in terms of economic data with October Import/Export prices set to be reported at 8:30 ET while the Wholesale Inventories report for September (Briefing.com consensus 0.1%) will be released at 10:00 ET.

In U.S. corporate news of note:

D.R. Horton (DHI 29.20, +0.43): +1.5% in reaction to a one-cent beat and news of a 28.0% quarterly dividend increase to $0.08.
SunEdison (SUNE 7.11, -0.29): -3.9% after missing earnings expectations on better than expected revenue.
Canadian Solar (CSIQ 25.56, +2.53): +11.0%: in reaction to better than expected results and above-consensus guidance.
Rockwell Automation (ROK 103.01, -4.78): -4.4% after missing estimates and guiding below analyst expectations.
Zebra Technologies (ZBRA 82.00, -0.99): -1.2% despite beating earnings estimates and guiding in-line.
Wayfair (W 49.00, +3.16): +6.9% in reaction to a smaller than expected loss on above-consensus revenue.

Reviewing overnight developments:

Asian markets ended mostly lower. China's Shanghai Composite -0.2%, Hong Kong's Hang Seng -1.4%, and Japan's Nikkei +0.2%
In economic data:
China's October CPI -0.3% month-over-month (expected -0.2%; previous 0.1%); +1.3% year-over-year (consensus 1.5%; prior 1.6%). Separately, October PPI -5.9% year-over-year (consensus -5.8%; previous -5.9%)
Japan's September Current Account JPY1.47 trillion (expected JPY2.24 trillion; previous JPY1.65 trillion), October Bank Lending +2.5% year-over-year (consensus 2.6%; previous 2.6%), and October Economy Watchers Current Index 48.2, as expected (prior 47.5)
Australia's September Home Loans +2.0% month-over-month (expected 0.1%; previous 1.5%) and October NAB Business Confidence 2 (expected 3; previous 5)
New Zealand's October Electronic Card Retail Sales 0.0% (expected 0.3%; previous 0.9%); +5.6% year-over-year (last 6.1%)
In news:
Japan's Prime Minister Shinzo Abe is reportedly looking at the possibility of lowering the corporate tax rate below 30.0%, which would represent a larger than expected reduction to the rate that currently stands at 35.0%

Major European indices trade mostly lower. Germany's DAX -0.5%, UK's FTSE -0.6%, and France's CAC -0.7%. Elsewhere, Italy's MIB +0.2% and Spain's IBEX -0.5%
Economic data was limited:
France's September Industrial Production +0.1% month-over-month, as expected (prior 1.7%)
Italy's September Industrial Production +0.2% month-over-month (expected 0.5%; prior -0.5%); +1.7% year-over-year (consensus 1.8%; previous 1.0%)
Swiss October Unemployment Rate held at 3.4%, as expected
Among news of note:
British Prime Minister David Cameron said there will be no second vote on the country's membership in the European Union; however, Mr. Cameron indicated he intends to establish "a British model of membership" for member states that do not use the euro

5:47 am: [BRIEFING.COM] S&P futures vs fair value: -5.80. Nasdaq futures vs fair value: -13.00.

5:47 am: [BRIEFING.COM] Nikkei...19671.26...+28.50...+0.20%. Hang Seng...22401.70...-325.10...-1.40%.

5:47 am: [BRIEFING.COM] FTSE...6271.24...-23.90...-0.40%. DAX...10763.66...-52.00...-0.50%.

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

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