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Key WRB Price Action

2min Regular Session Chart - The price action (key change in supply/demand) that had the most impact on today's price action ocurred @ 0936am est via providing resistance and trade signals for bearish reversals until the late rally around 1520pm est was able to push through the resistance area of that prior change in supply/demand.

In addition, today's intraday lows occurred after finding support from a key WRB price action from yesterday that was key in providing support in yesterday's price action.

As for my trading today, I missed the a.m. trading session and only did a few trades in the late afternoon trading session.

FYI - The above discussion is about one key WRB price action even though there were other key WRB price actions that occurred during the trading day that could be used to confirm entry signals, exit signals, profit targets et cetera.

Simply, knowledge of different types of key WRB's is what results in a complete understanding of the price action being traded as it is occurring in real-time.

http://www.thestrategylab.com/WRBAnalysisTutorials.htm

http://www.thestrategylab.com/TradingReports.htm

Today's trades that were posted in real-time in #FuturesTrades chat room via my IRC user name NihabaAshi. You can review each trade from entry to exit along with commentary and an occasional trading tip because its all archived @ http://www.thestrategylab.com/ftchat/forum/viewtopic.php?f=60&t=210

My Trading Performance: +5.50 Emini ES points



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Stocks Cut Losses
Wall Street pares some of its declines as investors gear up for major banks' plans for raising capital.
By Alexandra Twin, CNNMoney.com senior writer
Last Updated: June 8, 2009: 6:17 PM ET

NEW YORK (CNNMoney.com) -- Stocks cut losses Monday, ending mixed, as investors scooped up bank and consumer shares and kept an eye on Treasury bond yields, the dollar and commodity prices.

After the close, the Supreme Court granted a stay in the sale of Chrysler's assets to Italian automaker Fiat, at the behest of a group of shareholders. The move delays Chrysler's exit from bankruptcy, which had been expected to occur as soon as Monday.

The Dow Jones industrial average (INDU) ended just above unchanged and the S&P 500 (SPX) index ended just below unchanged. The Nasdaq composite (COMP) lost 7 points or 0.4%.

All three major indexes had slumped through the session, before turning higher near the close and ultimately ending mixed.

The late-session turnaround was positive, but deceptive, in that the market breadth numbers remained negative, said Donald Selkin, chief market strategist at National Securities. He was referring to the fact that more shares fell than gained, on both the Nasdaq and New York Stock Exchange.

He said that going forward, it's going to be difficult for the major indexes to push much higher.

"We saw some resiliency today, but I think the market is going to be laboring under the perception that the Federal Reserve is going to be forced to raise rates," Selkin said.

That's partly because Treasury yields have been rising, with the 2-year note yield now more than a full percentage point above the fed funds rate, which has been near zero since December.

Meanwhile, the 10-year note is edging closer to 4%, a level not seen since October. The spike has raised worries about the recovery hitting roadblocks before it's barely begun.

Some optimism about the bank sector Monday helped to counter worries about inflation, the dollar and the spike in Treasury bond yields, said Dave Rovelli, managing director of U.S. equity trading at Canaccord Adams.

"The banks are up because the rumor is that there are going to be nine banks that they allow to pay back TARP funds," Rovelli said.

The government will let the banks know this week, perhaps as soon as Tuesday morning, which ones they deem to be sufficiently capitalized to pay back the TARP funds received last fall.

Monday is the deadline for plans to be submitted by banks that need to raise additional cash as a result of the government's stress tests.

Stalling after the rally: Stocks were weaker through most of Monday's session as investors showed caution after a rally that has propelled the Dow off of 12-year lows hit in early March. The Dow has risen in 11 of the last 13 weeks, climbing 32.2% as of Friday's close. That's the blue-chip average's best 13-week run in 26 years.

The other major indexes have also rocketed since March 9. Since hitting a more than 12-year low, the S&P has gained 39% as of Friday's close. The Nasdaq has rallied 45.8% as of Friday's close, since bouncing off of a 6-year low.

Pacing a typical post-rally retreat is the start of a shift in investor perception, said Jeffrey Kleintop, chief market strategist at LPL Financial.

He said the spate of not-as-bad economic news, punctuated by last Friday's milder than expected job-loss report, has raised questions about whether the economy is healing faster than expected. If so, how will all the stimulus spending impact growth, and how will the government respond?

"The focus has switched to 'yes, things are turning around, but maybe more rapidly than expected, and what does that mean for inflation?'" he said.

Financials: Banks were in focus Monday. The 10 banks that were required to raise a collective $75 billion as a result of the government "stress tests" have to submit detailed plans by Monday.

Bank of America (BAC, Fortune 500), Morgan Stanley (MS, Fortune 500) and PNC Financial Services (PNC, Fortune 500) are among the companies that have already met or exceeded requirements.

In addition, the government is expected to announce which banks can pay back the TARP funds.

Most major bank stocks were higher, boosting the KBW Bank sector index by 1.3%.

Apple: On Monday afternoon, the tech behemoth introduced a faster version of its iPhone, lowered the price on its existing phone and offered details on its revamped operating system. Apple (AAPL, Fortune 500) shares ended modestly lower.

Company news: Fidelity and private-equity firm KKR are teaming up to give customers of the mutual fund company access to initial public offerings of KKR companies.

The global airline industry is likely to lose $9 billion this year due to weaker demand and the impact of the recession, according to trade group the International Air Transport Association.

Among stock movers, consumer shares advanced, including Dow components' Home Depot (HD, Fortune 500) and Walt Disney (DIS, Fortune 500).

McDonald's shares dipped after the company reported May sales at stores open a year or more rose 5.1%, versus a rise of 6.9% in April.

Market breadth was negative. On the New York Stock Exchange, losers beat winners three to two on volume of 1.08 billion shares. On the Nasdaq, decliners topped winners eight to five on volume of just under 2 billion shares.

Other markets: In global trading, Asian markets ended mixed and European markets ended lower.

In currency trading, the dollar gained versus the euro and fell against the yen.

U.S. light crude oil for July delivery fell 35 cents to settle at $68.09 a barrel on the New York Mercantile Exchange.

COMEX gold for August delivery fell $10.10 to settle at $952.50 an ounce. To top of page



Yahoo! Finance

4:30 pm : A late session squeeze helped the major indices recover from sizable losses, but the move lost steam in the final few minutes of trading, leaving the major indices to pull back from positive ground and settle flat to modestly lower.

Stocks had been under pressure for nearly the entire session as many participants began to question whether the run up by stocks in recent weeks has become overextended and whether positive economic news has already been priced into stock prices. That line of thought was supported by the recognition that stocks have rallied more than 40% from their March lows amid better-than-feared data, but failed to hold gains last Friday despite what was conclusively an encouraging jobs report.

Catalysts will be lacking during the next several weeks, which could make for a slow start to the summer, but could also prove challenging for recent gains. Amid a lack of clear catalysts or headlines this session, most of the action was driven by traders' emotions.

Participants showed favor for financial stocks ahead of the Fed's official announcement regarding which companies will be allowed to repay TARP funds. Financials spent most of the session as the only major sector in positive ground, but saw their gains compound as buying intensified after the broader market moved past its afternoon highs. That prompted many short-sellers to quickly cover their positions. Financial stocks finished 1.1% higher as the best performing sector in the S&P 500.

Shares of large-cap tech weighed on the Nasdaq Composite. Apple (AAPL 143.85, -0.82) lagged after revealing a new iPhone and reducing prices on other products. Meanwhile, shares of Palm (PALM 12.16, -0.84) sunk after releasing this last weekend a highly anticipated mobile phone meant to rival Apple's iPhone.

Semiconductor giant Cisco (CSCO 19.87, +0.00) mostly showed weakness, but managed to close at the unchanged mark in its debut session on the Dow. Monday also marked the first session that Travelers (TRV 43.92, +0.47) traded in the blue chip index. The two stocks replaced shares of General Motors and Citigroup (C 3.42, -0.04) in the Dow.

Treasuries continue to grapple with sellers. In turn, the benchmark 10-year Note was knocked roughly 17 ticks lower, which pushed its yield to 3.89% from 3.86% Friday. Treasuries will remain in focus tomorrow as participants prepare for a $35 billion auction of 3-year Notes.DJ30 +1.36 NASDAQ -7.02 NQ100 -0.3% R2K -1.1% SP400 -0.7% SP500 -0.95 NASDAQ Adv/Vol/Dec 1026/1.99 bln/1657 NYSE Adv/Vol/Dec 1106/1.08 bln/1890

3:35 pm : The equity markets recently ticked up to fresh session highs. The major averages are now in positive territory after trading in the red for the entire session.

Precious metals were under considerable selling pressure, down 2.1%.

Silver futures were a notable laggard. The July silver futures traded below $15 for most of the session. The contracts closed down 2.8% at $14.96 per ounce.

August gold futures closed at $952.50 per ounce, down 1%. Gold futures contracts are now down over $40 since hitting multi-month highs on June 3.

Energy commodities finished lower, but fared better than most other commodities, trading just 0.5% lower.

Natural gas futures closed 3.6% lower. The futures contracts finished at $3.73 per contract, just off session lows of $3.68 per contract.

Meanwhile, crude oil finished the session fractionally lower at $68.28 per barrel. DJ30 +38.62 NASDAQ +4.95 SP500 +4.26 NASDAQ Adv/Vol/Dec 1290/1.6 bln/1366 NYSE Adv/Vol/Dec 1342/768 mln/1643

3:00 pm : Consumer discretionary stocks have managed to pull up from a loss of 2.0% to trade with a much more modest loss of 0.2%. The upward move comes as shares of retailers improve their position.

Retailers, as a group, were down as much as 1.7%, but recently made their way all the way back to positive territory to trade with a 0.1% gain.

Home builder Home Depot (HD 24.40, +0.23) is a primary leader among shares of retailers. Shares of HD are up roughly 5% year-to-date, but retailers, as a group, are up nearly 20% this year.DJ30 -70.06 NASDAQ -21.10 SP500 -8.08 NASDAQ Adv/Vol/Dec 806/1.37 bln/1857 NYSE Adv/Vol/Dec 836/649 mln/2150

2:30 pm : The major indices remain in the red. Nine of the ten sectors post a loss.DJ30 -95.22 NASDAQ -24.19 SP500 -9.58 NASDAQ Adv/Vol/Dec 801/1.24 bln/1860 NYSE Adv/Vol/Dec 748/580 mln/2228

2:00 pm : Stocks have gradually ascended to fresh afternoon highs, but they still remain off of their best levels of the session.

Weakness has been particularly noticable among airline stocks. As such, the AMEX Airline Index is down 2.8%. According to The Wall Street Journal some expect that worldwide losses for airlines could total $9 billion in 2009.DJ30 -89.86 NASDAQ -21.40 SP500 -8.46 NASDAQ Adv/Vol/Dec 825/1.17 bln/1835 NYSE Adv/Vol/Dec 790/546 mln/2177

1:30 pm : Losses remain widespread, though financials (+0.2%) continue to show strength.

Treasuries are a bit mixed currently. The 2-year Note is down 4 ticks and yielding 1.37%. The 10-year Note is also down 4 ticks, but yielding 3.84%. The 30-year Bond is up 15 ticks and yielding 4.60%.DJ30 -106.48 NASDAQ -24.85 SP500 -10.42 NASDAQ Adv/Vol/Dec 779/1.08 bln/1863 NYSE Adv/Vol/Dec 717/506 mln/2231

1:05 pm : The major equity averages have been under pressure since the opening bell. Though there hasn't been any particular headline to drive the selling effort, many participants are paring their positions after stocks failed to hold their gains in the wake of what was actually a much better-than-expected jobs report last Friday.

The failure to move higher on relatively encouraging data has led some to question whether positive economic news is already being priced into stocks.

Amid such concern, participants are making a concerted, broad-based push against stocks, which has nine of the 10 major sectors in the red.

Financials are the only sector to trade with a gain. They are currently up 0.4%.

Strength in financials comes as bank stocks move higher ahead of the Fed's announcement regarding which companies will be allowed to repay TARP funds.

There is no economic data due today, and corporate headlines are lacking.DJ30 -108.75 NASDAQ -26.80 SP500 -11.29 NASDAQ Adv/Vol/Dec 753/1.00 bln/1874 NYSE Adv/Vol/Dec 684/474 mln/2240

12:30 pm : The S&P 500 and the Dow Jones Industrial Average eased up from fresh session lows in the last few minutes. The Nasdaq Composite has yet to violate the lows it set midmorning, however.

Though the Nasdaq Composite hasn't pushed lower, its losses are actually steeper than those of its counterparts. That is largely the result of weakness in large-cap tech stocks like Microsoft (MSFT 21.67, -0.47), Google (GOOG 435.63, -8.69), Cisco (CSCO 19.57, -0.30), and Apple (AAPL 141.38, -3.29).

Apple is scheduled to host its worldwide developers concerence this afternoon, but many are speculating whether the company will unveil a new iPhone. There is also speculation regarding a potential return by Steve Jobs.DJ30 -116.99 NASDAQ -28.92 SP500 -12.14 NASDAQ Adv/Vol/Dec 734/897 mln/1880 NYSE Adv/Vol/Dec 661/423 mln/2269

12:00 pm : The major indices are on the backslide again, though they have yet to hit fresh session lows.

However, consumer staples stocks (-0.8%), energy stocks (-1.6%), health care stocks (-1.4%), materials stocks (-2.4%), and utilities stocks (-1.5%) are all trading at their worst levels of the session.

In the face of broad weakness in the equity markets, the U.S. dollar is garnering support. That has the Dollar Index up 0.5%, which has helped limit is year-to-date decline to 0.3%.DJ30 -109.43 NASDAQ -27.31 SP500 -11.22 NASDAQ Adv/Vol/Dec 715/805 mln/1873 NYSE Adv/Vol/Dec 650/384 mln/2258

11:30 am : Declining issues outnumber advancers by 4-to-1 in the S&P 500. The broad-based decline continues to counter the strength of financials (+0.5%).

Overall trading remains rather choppy, but relatively range bound. The S&P 500 has spent most of the morning gyrating between 928 and 935.DJ30 -99.45 NASDAQ -26.87 SP500 -9.99 NASDAQ Adv/Vol/Dec 690 mln/714 mln/1862 NYSE Adv/Vol/Dec 641/346 mln/2242

11:00 am : Stocks have pared their losses, but weakness remains widespread. Financials are showing strength, though; the sector is up 0.6% and is the only major sector to trade with a gain.

Diversified bank stocks have climbed to a 2.2% gain, helping lift the KBW Bank Index 1.2%, as participants await news from the Fed regarding which firms will be allowed to repay TARP funds. DJ30 -84.79 NASDAQ -23.14 SP500 -7.91 NASDAQ Adv/Vol/Dec 718/857 mln/1765 NYSE Adv/Vol/Dec 678/286 mln/2151

10:30 am : The financial sector recently turned a 0.7% loss into a 0.2% gain, helping the broader market pull up from its session lows.

Selling pressure on oil has subsided. Oil prices were down roughly 1.5% at the start of pit trading, but they were recently quoted 0.1% higher at $68.50 per barrel.

Natural gas prices are being hit with a stiff selling effort, though. Natural gas contracts were recently quoted 2.5% lower at $3.77 each.

Pressure on precious metals is also strong. Gold was recently quoted 1.7% lower at $945.10 per ounce, while silver is down a steep 3.4% to $14.86 per ounce.DJ30 -106.33 NASDAQ -27.77 SP500 -10.19 NASDAQ Adv/Vol/Dec 617/446 mln/1807 NYSE Adv/Vol/Dec 532/219 mln/2258

10:00 am : With stocks under a stiff bout of selling pressure, Treasuries have found favor. That has helped the benchmark 10-year Note climb 5 ticks, which has taken its yield down to roughly 3.81%. Just ahead of the stock market's opening bell the 10-year Note had been down and yielding roughly 3.85%.

As for equities, the early decline is steepest among materials stocks. The materials sector is down 2.2% as commodities come under pressure and participants push against stocks that have seen some of the strongest gains in recent weeks. Such gains have helped the materials sector to a 17.5% year-to-date gain.

Early movers: Trading up -- ANPI +49.4%, MITI +18.8%, DYAX +12.3%, SLM +11.2%, PMTI +8.6%, HEB +8.4%, ARNA +7.9%, UTA +7.5%; Trading down -- LYG -10%, VIP -9.8%, RGC -9.3%, AIB -8.8%, KIRK -8.5%, SVM -8.3%, EXM -8.1%DJ30 -108.15 NASDAQ -27.04 SP500 -10.05 NASDAQ Adv/Vol/Dec 575/288 mln/1751 NYSE Adv/Vol/Dec 484/148 mln/2259

09:40 am : Despite showing marked weakness in premarket trading, financial stocks are showing relative strength in the early going. The sector is currently trading near the unchanged mark while the rest of the market contends with sizable losses.

Financials are being helped by regional banks (+1.0%), diversified banks (+0.7%), and diversivied financial services companies (+0.5%) lead gains.DJ30 -78.14 NASDAQ -18.85 SP500 -7.36 NASDAQ Adv/Vol/Dec 589/132 mln/1596 NYSE Adv/Vol/Dec 518/84 mln/2084

09:20 am : S&P futures vs fair value: -6.10. Nasdaq futures vs fair value: -10.00. Market participants have been putting steady pressure on equities ahead of the opening bell so that the major indices appear poised for a downward start. The effort comes after the major averages failed to close higher last Friday, despite much better-than-expected jobs data. Since March stocks have been able to rally on "less worse than feared" economic data, but given Friday's action it now seems that legitimately positive economic news is fully expected. Though this morning's weakness looks to be widespread, financial firms are contending with what could become fairly considerable losses. The pressure on financial stocks comes ahead an announcement from the Fed that will identify which banks will be allowed to repay TARP funds. Meanwhile, the Treasury is expected to approve the capital raising plans of several banks. Many participants are keeping an eye on Treasuries, which have been grappling with sellers for several sessions. The benchmark 10-year Note is currently down roughly 5 ticks. That has put its yield at almost 3.85%. There is no economic data due today.

09:00 am : S&P futures vs fair value: -8.20. Nasdaq futures vs fair value: -11.50. Overall news flow remains rather slow as participants make a push against stocks ahead of the opening bell. Crude oil prices are also under pressure as pit trading gets started; crude oil was most recently quoted 1.5% lower at $67.40 per barrel.

08:30 am : S&P futures vs fair value: -9.00. Nasdaq futures vs fair value: -14.00. Stock futures continue to suggest a downward start is in order for the major U.S. indices. Sellers have also taken control of trading in Europe, where Germany's DAX, Britain's FTSE, and France's CAC are all trading with losses. The DAX is currently off by 1.6% amid weakness in 26 of its 30 components; Deutsche Bank (DB) is leading losses. The FTSE is down 1.6% as steel and metals outfits BHP Billiton (BHP), AngloAmerican (AAUK), and Rio Tinto (RTP) trade as primary laggardrs. The CAC is trading 1.2% lower with broad-based weakness of its own as more than 90% of its components currently trade with losses. Energy giant Total (TOT) is casting some of the heaviest weight on the index. In Asia, Japan's Nikkei managed to conclude the week's first trading session with a 1.0% gain. Canon (CAJ) and Kyocera were among the session's primary leaders. Meanwhile, Hong Kong's Hang Seng shed 2.3% as HSBC (HBC) and CNOOC (CEO) led losses.

08:00 am : S&P futures vs fair value: -8.40. Nasdaq futures vs fair value: -12.00. Regulators are expected to approve today the capital-raising plans of several banks, according to The Wall Street Journal, while the Fed is expected to announce which financial firms will be allowed to repay TARP funds. According to The Washington Post, the size of the repayments could be double the Treasury's initial $25 billion estimate. In corporate news, General Mills (GIS) coveyed a sense of confidence by stating that its current earnings forecast for fiscal 2009 exceeds its most recent guidance, which called for adjusted earnings that range from $3.87 to $3.89 per share. Meanwhile, the consensus estimate currently calls for $3.90 per share. General Mills went on to state that it will provide specific guidance for 2010 on July 1, but also that the company is comfortable with the 2010 consensus estimate of $4.15 per share. Shares of GIS are up roughly 1.6% to $53.00 per share ahead of the opening bell, but broader stock market futures point to a lower start for the session.

06:23 am : S&P futures vs fair value: -8.70. Nasdaq futures vs fair value: -13.00.

06:23 am : Nikkei...9865.63...+97.60...+1.00%. Hang Seng...18253.39...-426.10...-2.30%.

06:23 am : FTSE...4376.30...-62.30...-1.40%. DAX...4991.24...-85.90...-1.70%.

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