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 @ $80.00 dollars or +0.80 points, Emini ES ($ES_F) futures @ $3,125.00 dollars or +62.50 points, Light Crude Oil CL ($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 @ $3,205.00 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

In addition, all of my trades were posted real-time in the chat room. You can read today's chat room logs for details about each one of my trades via price action trading from entry to exit (e.g. time, price, contract size) along with price action commentary as the trade traversed to its completion...all archived @ http://www.thestrategylab.com/ftchat/forum/viewtopic.php?f=127&t=1716

Also, posted below are direct links to information about my price action trade methodology and trading plan (there's a difference between the two) that enables me to identify key trading areas in the price action that represent changes in supply/demand and volatility along with being able to exploit these changes via WRB Analysis (wide range body/bar analysis). I'm primarily a day trader because it suits my personal lifestyle but I do occasionally swing trade and position trade. Simply, my trade method is applicable for position trading, swing trading and day trading.

##TheStrategyLab Chat Room is free. Members and I use the chat room to post WRB Analysis commentary, real-time trades and to post anything else related to trading. The chat room helps me tremendously in my own trading because I use it to document (journal) my thought process from trade to trade so that I can easily review at a later date my thoughts as I interacted with the markets...info I can not get from my broker statements. Also, this is not a signal calling chat room where a head trader tells you when to buy or sell. If you join the chat room and then you do not ask any questions about WRB Analysis in your own trading or you do not document (journal) your own thoughts from trade to trade...the chat room will not be useful to you. Chat room access instructions @ http://www.thestrategylab.com/tsl/forum/viewforum.php?f=164

Price Action Analysis via WRB Analysis Tutorials @ http://www.thestrategylab.com/WRBAnalysisTutorials.htm and there's a free study guide of the WRB Analysis Tutorial Chapters 1, 2 and 3 @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=119&t=718

Trade Signal Strategies via Volatility Trading Report (VTR) @ http://www.thestrategylab.com/VolatilityTrading.htm and there's a free trade signal strategy @ http://www.thestrategylab.com/tsl/forum/viewforum.php?f=89 so that you can freely test drive one of our price action trade strategies with support (answering your questions) prior to purchasing the Volatility Trading Report (VTR).

Trading Plan Daily Routine @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=232&t=2209

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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.

Dow, S&P 500 Book Biggest Gains Of Year


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

NEW YORK (CNNMoney)
Stocks got a nice boost Thursday as investors welcomed some good news about the jobs market ahead of the government's all-important monthly employment report.

The Dow jumped 188 points, or 1.2%. The S&P 500 also gained 1.2%. These were the biggest gains for the two indexes so far this year.

The Nasdaq also finished higher, rising 1.1%.

Investors were encouraged after fewer-than-expected Americans filed for unemployment benefits last week. The data is a positive sign ahead of the January jobs report, which will be released Friday. Economists surveyed by CNNMoney expect that 178,00 jobs were created last month, up from only 74,000 jobs in December. They also forecast that the unemployment rate was 6.7%.

Though stocks were mostly higher, Twitter shareholders weren't feeling so chipper.

Shares of Twitter (TWTR) plunged more than 24% after the company released its first quarterly results since going public last year. Investors were disappointed by a forecast of slower sales growth. That made the stock the worst performer in CNNMoney's Tech 30 index Thursday and a hot topic among traders on StockTwits.

"$TWTR Love Twitter as a site and idea....," said DocStoc. "Not so confident in management...Bearish."

But not everyone was so glum.

"$TWTR Glad it is dropping, now I can get it cheaper," said cheddarfactory21. "This stock is going to be great in the long-run!! Bullish."

General Motors (GM, Fortune 500) ended in the red after the auto giant reported earnings that fell short of estimates. Revenue was roughly in line with forecasts.

Sony (SNE) shares rose even though the company announced a series of major changes and warned it would lose $1 billion this year. Investors welcomed news that the company is selling its Vaio PC unit, spinning out its television business and cutting 5,000 jobs.

Disney (DIS, Fortune 500) helped lead the Dow higher. The media conglomerate's stock climbed more than 5% thanks to solid sales and earnings. Strength in the company's cable network unit, which includes ESPN, and the movie studio unit helped lead the way. Disney had a huge box office smash in its latest quarter with the animated movie "Frozen."

Most traders on StockTwits are optimistic about Disney's prospects.

"$DIS Don't forget, this doesn't even include Star Wars...Bullish," said jelguindy.

Disney bought Lucasfilm in 2012. Star Wars: Episode VII is set to begin filming later this year and hit the silver screen in late 2015.

Also on the bright side, shares of Green Mountain Coffee Roasters (GMCR) soared more than 25% on news that the firm is partnering with Coca-Cola (KO, Fortune 500) on its forthcoming cold-beverage-brewing system. The Keurig Cold system will be likely be released in late 2014 or 2015.

Though SodaStream (SODA) will face competition from the new product, its shares rose 7% following the announcement after a report from Citron Research suggested that Coke's archrival Pepsi (PEP, Fortune 500) may want to strike a deal with SodaStream so it could also enter the at-home beverage market.

Some traders on StockTwits speculated that Coke and Green Mountain may have announced their partnership to play catch-up because Pepsi has reportedly already approached SodaStream.

"$SODA Anyone think maybe $PEP has already beaten $KO to SODA and therefore Coke went with $GMCR?" asked SmallFishBigSea.

StockTwits trader Congostockchat said he believes a Pepsi-SodaStream deal could be imminent, and given that SodaStream already has a machine for in-home soda, Pepsi could beat Coke in this battle.

"$SODA I believe a $PEP deal is coming," he said. "Pepsi has GOT TO respond to what $KO did. We have the machine NOW. Not in 2 yrs. NOW. Pep can kill KO...Bullish."

Akamai Technologies, (AKAM) an Internet content delivery network, surged more than 20% after a strong earnings report.

AOL (AOL) shares lost ground despite the fact that the company's quarterly revenue came in higher than expectations thanks to stronger ad sales.

LinkedIn (LNKD) reported earnings and revenues after the closing bell that beat forecasts. But investors were disappointed by the company's guidance. Shares plunged more than 10% in after-hours trading.

Related: Fear & Greed Index still in extreme fear

Despite the day's gains, the three main indexes are still down about 5% from their most recent highs.

Peter Cardillo, chief market economist at Rockwell Global Capital, said that markets could have a tough time holding onto gains.

"You're looking at one step forward and two steps backward," he said.

European markets closed more than 1%, while Asian markets also mostly ended with modest gains. The European Central Bank kept interest rates on hold Thursday, despite growing concerns about the threat of deflation in the eurozone and the outlook for global growth.





4:15 pm: [BRIEFING.COM] The stock market enjoyed a broad-based rebound on Thursday that placed the Dow Jones Industrial Average (+1.2%) back above its 200-day moving average (15483). The S&P 500 also gained 1.2%, ending just north of its 100-day average (1772) after flirting with that level during the afternoon.

Stocks began on an upbeat note and climbed through the first 90 minutes of action. Much of the advance was paced by groups that faced aggressive selling during the recent pullback, suggesting short covering played a role in the rally.

Yen weakness also factored into the advance as the retreat of the Japanese currency calmed fears about some participants being forced out of yen-based carry trades due to strength in the funding currency. The dollar/yen pair ended the New York session right above 102.00 after starting the day near 101.20.

The consumer discretionary group (+2.1%) ended in the lead with media names making a significant contribution after Dow component Disney (DIS 75.56, +3.80) beat its Capital IQ consensus estimate by 13 cents on in-line revenue.

Elsewhere among discretionary shares, retailers and homebuilders displayed industry-wide strength. The SPDR S&P Retail ETF (XRT 80.00, +1.88) gained 2.4% and iShares Dow Jones US Home Construction ETF (ITB 24.82, +0.75) jumped 3.1%.

Also of note, the largest S&P 500 sector, technology (+1.2%) ended in line with the broader market. Most large cap components displayed strength, but Facebook (FB 62.16, -0.03) ended little changed after its peer, Twitter (TWTR 50.03, -15.94), reported earnings. Although the social media company announced above-consensus results, its Monthly Active Users metric showed disappointing growth.

On the countercyclical side, all four groups-consumer staples (+1.1%), health care (+0.5%), utilities (+0.6%), and telecom services (+0.1%)-were unable to keep pace with the S&P 500. Notably, the staples sector received support from Green Mountain Coffee Roasters (GMCR 102.10, +21.22) after the company announced a strategic partnership with Coca-Cola (KO 38.03, +0.42), in which KO will purchase a 10% minority stake in GMCR. In addition, GMCR reported a bottom-line beat on below-consensus revenue.

Treasuries ended near their lows with the 10-yr yield up three basis points at 2.71%.

Participation was a bit above average as 730 million shares changed hands at the New York Stock Exchange.

Today's economic data featured three reports:
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Stock Market Claws Its Way Back After Early Loss Investor's Business Daily

The initial claims level settled back into the 330,000 range this week as the initial claims level fell to 331,000 from an upwardly revised 351,000 (from 348,000). The Briefing.com consensus expected the initial claims level to fall to 335,000.
Fourth quarter nonfarm labor productivity increased 3.2% while the Briefing.com consensus expected an increase of 2.4%. That was down from an upwardly revised 3.6% increase (from 3.0%) in the third quarter. Profit growth outperformed labor gains in the fourth quarter. Compensation per hour increased only 1.5%, down from a 1.6% increase in the third quarter. With compensation increasing at a slower rate than productivity, unit labor costs fell 1.6%. That was the third quarterly decline of 2013.
The U.S. trade deficit for December widened to $38.7 billion from an upwardly revised $34.6 billion (from $34.3 billion). The Briefing.com consensus expected the trade deficit to increase to $36.0 billion. The Bureau of Economic Analysis assumed the trade deficit in December increased to around $37.0 billion in the advance estimate for fourth quarter GDP. The slightly higher than expected deficit will likely contribute to lower GDP growth in the second estimate.

Tomorrow's data will focus on jobs with the nonfarm payrolls report for January set to be released at 8:30 ET. Hourly earnings and average workweek will also be announced at 8:30 ET while the December consumer credit report will cross the wires at 15:00 ET.

Nasdaq Composite -2.9% YTD
S&P 500 -4.1% YTD
Russell 2000 -5.1% YTD
Dow Jones Industrial Average -5.7% YTD

3:30 pm: [BRIEFING.COM]

Apr gold popped to a session high of $1267.50 per ounce in early morning pit trade but quickly gave up the gain. It chopped around near the unchanged line for the remainder of the session and settled 20 cents lower at $1256.80 per ounce.
Mar silver traded in positive territory today, advancing to a session high of $20.18 per ounce in early morning action. It brushed a session low of $19.83 per ounce and eventually settled at $19.92 per ounce, or 0.6% higher.
Mar crude oil traded higher but retreated from its session high of $98.83 per barrel set in early morning floor trade. It dipped to a session low of $97.47 per barrel in afternoon action and settled with a 0.5% gain at $97.84 per barrel.
Mar natural gas traded as high as $5.40 per MMBtu in overnight trade but fell below $5.00 following inventory data that showed a draw of 262 bcf. Expectations called for a larger draw of 270-273 bcf. Unable to regain momentum, it settled with a 2.2% loss at $4.93 per MMBtu.

3:00 pm: [BRIEFING.COM] The S&P 500 trade higher by 1.2% with one hour remaining in today's session.

Shortly after the closing bell, participants will receive a fair dose of quarterly earnings. Although there are more than 70 companies set to report, names like Activision Blizzard (ATVI 17.10, +0.21), Expedia (EXPE 65.03, +1.10), and LinkedIn (LNKD 223.02, +8.63) are expected to receive the most attention.

Tomorrow morning, just over 20 companies will release their results with ArcelorMittal (MT 16.98, +0.45), Cigna (CI 85.51, +0.44), and Wyndham Worldwide (WYN 72.06, +2.20) headlining the list.

2:35 pm: [BRIEFING.COM] Recent action saw the S&P 500 extend to a fresh session high just north of its 100-day moving average (1772). Earlier today, investors received three economic data points, but neither played a major role in determining the direction of the broader market.

Tomorrow, however, will be a bit different as the January nonfarm payrolls will be released at 8:30 ET. The Briefing.com consensus expects the reading to come in at 175,000 to follow last month's 74,000.

In addition to nonfarm payrolls, hourly earnings, average workweek, and the unemployment rate will also be released at 8:30 ET while the December Consumer Credit report will cross the wires at 15:00 ET.

2:00 pm: [BRIEFING.COM] Stocks continue to hover near their highs, which has been the case for the past three hours. Although the S&P 500 has climbed within a striking distance of its 100-day moving average (1772), the index has yet to breach that level.

With equities near highs, the CBOE Volatility Index (VIX 17.69, -2.26) remains at its lowest level of the session, suggesting participants are not scrambling in search of downside protection.

Also of note, afternoon trading volume has been slowing a bit. At this juncture, just over 360 million shares have changed hands at the floor of the NYSE. The current tally suggests today's session could produce below-average volume.

1:30 pm: [BRIEFING.COM] It has been a good run so far for the equity market today -- surprisingly good. That last point has played a role in today's big gains as it has prompted some short-covering activity by participants positioned for further downside following the lack of follow through yesterday after a rebound effort on Tuesday.

Retailers have been a big beneficiary of that covering trade as many are trading noticeably higher despite some disappointing sales and/or EPS guidance for the fourth quarter. Kohl's (KSS 51.71, +1.88) is chief among them, getting a nice boost in spite of taking down its guidance due to unanticipated expenses and January sales being significantly lower than planned.

Strikingly, the broader market's rebound effort stalled just shy of the 100-day moving average for the S&P 500 (1772). That understanding has cooled some of the earlier buying efforts, but sellers have yet to force the issue, cognizant that there has been some broad-based participation in today's move. The financials (+0.8%), though, should be watched closely as the afternoon unfolds. They are trailing the S&P 500 (+0.9%) at the moment. If that influential leadership group starts to fade, it will likely weigh on today's rally effort.

1:00 pm: [BRIEFING.COM] At midday, the major averages hover near their best levels of the session with the Nasdaq Composite (+1.1%) in the lead. The Dow and S&P 500 both hold gains close to 1.0% as they trade in the vicinity of widely-watched technical levels.

The Dow overtook its 200-day moving average (15483) this morning after coming up short in each of the past two sessions. Meanwhile the S&P 500 trades just below its 100-day moving average (1772).

Nine of ten sectors trade in the green with cyclical groups in the lead. The consumer discretionary sector (+1.9%) is a clear outperformer while the other five growth-sensitive groups display gains between 0.9% and 1.3%.

The discretionary sector has drawn strength from Disney (DIS 75.40, +3.64) after the Dow component reported better-than-expected earnings. Homebuilders and retailers also outperform with SPDR S&P Retail ETF (XRT 79.80, +1.68) and iShares Dow Jones US Home Construction ETF (ITB 24.84, +0.77) up 2.2% and 3.2%, respectively.

The relative strength of the discretionary space comes after the sector lost nearly 6.0% last month. In addition, the price action that has accompanied today's advance suggests short covering has factored into the climb.

Once again, the Japanese yen has played a part in today's session. The yen has been weakening throughout the morning, which calmed fears about some participants being forced out of yen-based carry trades due to strength in the funding currency. Currently, the dollar/yen pair sits right below 102.00 while yen futures trade lower by 0.6%.

The steady rally in equities has weighed on the bond market. Treasuries hover near their session lows with the 10-yr yield up three basis points at 2.70%.

Today's economic data featured three reports:

The initial claims level settled back into the 330,000 range this week as the initial claims level fell to 331,000 from an upwardly revised 351,000 (from 348,000). The Briefing.com consensus expected the initial claims level to fall to 335,000.
Fourth quarter nonfarm labor productivity increased 3.2% while the Briefing.com consensus expected an increase of 2.4%. That was down from an upwardly revised 3.6% increase (from 3.0%) in the third quarter. Profit growth outperformed labor gains in the fourth quarter. Compensation per hour increased only 1.5%, down from a 1.6% increase in the third quarter. With compensation increasing at a slower rate than productivity, unit labor costs fell 1.6%. That was the third quarterly decline of 2013.
The U.S. trade deficit for December widened to $38.7 billion from an upwardly revised $34.6 billion (from $34.3 billion). The Briefing.com consensus expected the trade deficit to increase to $36.0 billion. The Bureau of Economic Analysis assumed the trade deficit in December increased to around $37.0 billion in the advance estimate for fourth quarter GDP. The slightly higher than expected deficit will likely contribute to lower GDP growth in the second estimate.

12:30 pm: [BRIEFING.COM] Not much change has taken place since our last update as the key indices remain near their highs. The S&P 500 hovers less than two points below its 100-day moving average with all six cyclical sectors trading in-line.

Meanwhile, all four countercyclical sectors lag, but telecom services (-0.1%) is the only group that trades in the red. The remaining three-consumer staples, health care, and utilities-display gains between 0.5% and 0.8%.

The steady rally in equities has weighed on the bond market as Treasuries hover near their session lows. The 10-yr note is lower by 9 ticks with its yield up three basis points at 2.71%.

12:00 pm: [BRIEFING.COM] The S&P 500 has extended to a fresh high and now sits less than three points below its 100-day moving average (1772). The benchmark index fell below this level during Monday's selloff, which also sent the Dow Jones Industrial Average below its 200-day moving average (15483). The price-weighted Dow tested its 200-day average in each of the past two sessions, but wasn't able to move decidedly above the key level until today.

The discretionary sector (+1.9%) remains in the lead while the other five cyclical groups display gains between 1.0% and 1.2%.

11:30 am: [BRIEFING.COM] The stock market has held near its high for the past 30 minutes after spending the initial 90 minutes of action in a steady climb. The Dow, Nasdaq, and S&P 500 all hold gains close to 1.0%, but this still leaves the three indices down for the week. Including its 1.1% gain, the Nasdaq Composite remains down 1.2% for the week. Meanwhile, the Dow and S&P 500 are both down 0.8% this week.

With regard to individual sectors, only the discretionary group trades in the green for the week. The sector is higher by 0.4% this week after losing nearly 6.0% in January. The remaining nine sectors display week-to-date losses between 0.4% (materials) and 3.7% (telecom services).

Today's rally has pushed some investors away from volatility protection as the CBOE Volatility Index (VIX 17.85, -2.10) trades lower by 10.5%. The near-term volatility measure is back near its January highs after retreating from levels last seen in June.

11:00 am: [BRIEFING.COM] Equities have continued their rally with some recent laggards providing leadership. The outperformance of beaten-down groups like consumer discretionary (+1.9%), industrials (+1.2%), and technology (+1.0%) suggests some short covering is contributing to today's advance.

Notably, the industrial sector trades ahead of the broader market with transports contributing to the relative strength. Con-way (CNW 39.12, +2.12) trades up 5.9% after beating on earnings while the broader Dow Jones Transportation Average sports an advance of 1.3% as 18 of its 20 components trade in the green.

Elsewhere among industrials, the largest component, General Electric (GE 25.02, +0.50), is higher by 2.0%.

10:35 am: [BRIEFING.COM]

The dollar index dropped following initial claims data this morning, which gave precious metals a boost. In more recent trade, both precious metals sold off and Apr gold is now -0.2% at $1254.90/oz, while Mar silver is +0.6% at $19.92/oz
Natural gas began to rally after the close of pit trading yesterday and following yesterday's decline to near $5/MMBtu (NG ended pit trading down 33 cents @ $5.04/MMBtu yesterday).
Mar nat gas continued its volatility today by selling off sharply this morning and was about 2.2% higher at $5.14/MMBtu just ahead of the weekly inventory data (morning high is listed at $5.40/MMBtu
Following the data, nat gas briefly dropped into negative territory and is now -0.5% at $5.00/MMbtu.
Crude oil has been in positive territory all day so far and ran as high as $98.82/barrel. Mar crude oil is now +1% at $98.35/barrel.

10:00 am: [BRIEFING.COM] Equities have extended their early gains with the discretionary sector (+1.7%) maintaining its outperformance thanks to the relative strength of retailers, homebuilders, and upbeat earnings from Dow component Disney (DIS 76.11, +4.35). The stock trades higher by 6.2%.

Elsewhere, the consumer staples sector (+0.7%) trades ahead of the remaining countercyclical groups. Green Mountain Coffee Roasters (GMCR 104.20, +23.32) is providing a measure of support as it trades higher by 29.7% after announcing a strategic partnership with Coca-Cola (KO 38.00, +0.39), in which KO will purchase a 10% minority stake in GMCR. In addition, GMCR reported a bottom-line beat on below-consensus revenue.

Elsewhere among staple stocks, Kellogg (K56.52, -0.85) is lower by 1.5% after issuing cautious guidance along with its one-cent beat.

9:50 am: [BRIEFING.COM] Equities began the session in the green with the Nasdaq (+0.6%) showing the largest early gain. Meanwhile, the S&P 500 trades higher by 0.5% as nine of ten sectors display gains.

The discretionary group (+1.2%) is among the early leaders with retailers contributing to the strength. The SPDR S&P Retail ETF (XRT 79.31, +1.19) is higher by 1.5%. Homebuilders are also showing early strength with the iShares Dow Jones US Home Construction ETF (ITB 24.57, +0.50) up 2.1%.

On the downside, the utilities sector (-0.1%) is the lone decliner at this juncture.

9:16 am: [BRIEFING.COM] S&P futures vs fair value: +2.10. Nasdaq futures vs fair value: +8.50. The stock market is on track to begin today's session on a quiet note as futures on the S&P 500 hover roughly two points above fair value. Futures climbed to highs shortly after the European session began, but reversed just after 5:00 ET when the S&P 500 futures reached their high.

Staying on the European theme, the Bank of England and the European Central Bank both left their key interest rates unchanged at 0.50% and 0.25%, respectively. Furthermore, ECB President Mario Draghi sounded a bit more hawkish than expected during today's press conference, which has pressured European indices off their highs. Germany's DAX has trimmed its gain to 0.4% after being up more than 1.0% not long ago.

With stocks looking to continue their rebound after the recent downdraft, participants are likely to keep an eye on the performance of yen crosses today to see if a strengthening yen starts putting pressure on yen-funded carry trades once again. Currently, dollar/yen hovers near 101.31 while yen futures trade flat.

On the earnings front, General Motors (GM 34.48, -0.76) is lower by 2.1% after missing the Capital IQ bottom-line estimate by $0.22 on below-consensus revenue. Elsewhere, Twitter (TWTR 50.42, -15.55) holds a pre-market loss of 23.3% after the company's slow growth in Monthly Active Users overshadowed its earnings beat on above-consensus revenue.

Treasuries hold slim losses with the 10-yr yield up one basis point at 2.68%.

8:56 am: [BRIEFING.COM] S&P futures vs fair value: +0.70. Nasdaq futures vs fair value: +6.20. The S&P 500 futures have slipped from their highs and currently trade just one point above fair value.

Markets across most of Asia rallied as traders stepped in to scoop up shares at discounted prices. Bangko Central ng Pilipinas held its benchmark interest rate steady at 2.50%, as expected.

In economic data, Japan's weekly foreign bonds buying report indicated net sales in the amount of JPY1.82 trillion (-JPY357 billion prior). Elsewhere, Australia's retail sales rose 0.5% month-over-month (0.4% forecast, 0.7% previous) and NAB Quarterly Business Confidence improved to 8.0 from 5.0. Separately, the trade surplus expanded to AUD468 million from AUD83 million (-AUD300 million expected) as exports rose 4.0% month-over-month (0% prior) and imports increased 2.0% month-over-month (-1.0% last).

Japan's Nikkei maintained a narrow range, but slipped to lows into the close. The index ended lower by 0.2%. Sony added 1.5% ahead of its earning's report while Takeda Pharmaceuticals shed 2.7% in response to its earnings miss.
Hong Kong's Hang Seng rose 0.7%, gaining for the first time in four days. Casino stocks recovered from yesterday's slide as Sands China surged 10.9% and Galaxy Entertainment jumped 7.3%.
China's Shanghai Composite was closed.

Major European indices hover near their best levels of the session after comments from two central banks. The Bank of England left its key interest rate and purchasing program unchanged at their respective 0.50% and GBP375 billion, as expected. The European Central Bank also left its key interest rate unchanged at 0.25%, as expected.

Participants received several economic data points. Great Britain's Halifax House Price Index rose 1.1% month-over-month (1.0% expected, -0.5% prior) while the year-over-year reading jumped 7.3% (7.2% forecast, 7.5% last). Eurozone retail PMI increased to 50.5 from 47.7. Germany's factory orders declined 0.5% month-over-month (0.4% expected, 2.4% prior). Elsewhere, Swiss trade surplus narrowed to CHF503 million from CHF2.03 billion (CHF2.41 billion forecast) and SECO Consumer Climate rose to 2 from -5 (1 expected).

Germany's DAX trades higher by 1.1% as 28 of its 30 components register gains. Fertilizer producer K+S leads with a gain of 3.2% while exporters BMW and Daimler also show strength. The two stocks hold respective gains of 1.6% and 2.3%.
Great Britain's FTSE holds an advance of 1.1% with financials contributing to the strength. Hargreaves Lansdown is higher by 3.4% and Prudential trades up 2.4%.
In France, the CAC trades up 1.2% with support from most of its 40 components. Alcatel-Lucent leads with a gain of 12.1% while drug maker Sanofi lags. The stock is lower by 3.2%.

8:33 am: [BRIEFING.COM] S&P futures vs fair value: +6.90. Nasdaq futures vs fair value: +16.20. The S&P 500 futures trade seven points above fair value.

The December trade deficit widened to $38.7 billion from $34.6 billion. The Briefing.com consensus expected the deficit to come in at $36.0 billion.

Separately, the latest weekly initial jobless claims count totaled 331,000, which was lower than the 335,000 that had been expected by the Briefing.com consensus. Today's tally was below the revised prior week count of 351,000 (from 348,000). As for continuing claims, they rose to 2.964 million from 2.949 million.

Also of note, fourth quarter unit labor costs decreased 1.6%, which was noticeably lower than the 0.5% decrease that had been anticipated by the Briefing.com consensus. During the same period, productivity increased 3.2%, according to the preliminary reading. The consensus expectation was for an increase of 2.4%.

8:05 am: [BRIEFING.COM] S&P futures vs fair value: +3.30. Nasdaq futures vs fair value: +10.50. U.S. equity futures hold modest gains amid upbeat overseas action. The S&P 500 futures trade three points above fair value.

Reviewing overnight developments:

Asian markets ended mixed. Japan's Nikkei -0.2%, Hong Kong's Hang Seng +0.7%, and China's Shanghai Composite remained closed for Lunar New Year.
In economic data:
Japan's weekly foreign bonds buying report indicated net sales in the amount of JPY1.82 trillion (-JPY357 billion prior).
Australia's retail sales rose 0.5% month-over-month (0.4% forecast, 0.7% previous) and NAB Quarterly Business Confidence improved to 8.0 from 5.0. Separately, the trade surplus expanded to AUD468 million from AUD83 million (-AUD300 million expected) as exports rose 4.0% month-over-month (0% prior) and imports increased 2.0% month-over-month (-1.0% last).
Among news of note:
Bank of Japan deputy Hiroshi Nakaso said the Japanese economy is on track to reach the 2.0% inflation target, but the BoJ is ready to act if necessary.

Major European indices hover near their best levels of the session. Germany's DAX +0.5%, Great Britain's FTSE +0.7%, and France's CAC +0.9%.
Participants received several economic data points:
The Bank of England left its key interest rate and purchasing program unchanged at their respective 0.50% and GBP375 billion, as expected. Separately, Great Britain's Halifax House Price Index rose 1.1% month-over-month (1.0% expected, -0.5% prior) while the year-over-year reading jumped 7.3% (7.2% forecast, 7.5% last).
The European Central Bank also left its key interest rate unchanged at 0.25%, as expected.
Eurozone retail PMI increased to 50.5 from 47.7.
Germany's factory orders declined 0.5% month-over-month (0.4% expected, 2.4% prior).
Swiss trade surplus narrowed to CHF503 million from CHF2.03 billion (CHF2.41 billion forecast). Separately, SECO Consumer Climate rose to 2 from -5 (1 expected).
In news:
Germany's DAX fell from its session high in reaction to the policy statement out of the European Central Bank, suggesting some participants were expecting the central bank to introduce some additional easing.

In U.S. corporate news

Akamai Technologies (AKAM 55.50, +8.08): +17.0% after reporting above-consensus results and issuing upbeat guidance.
Disney (DIS 74.30, +2.54): +3.5% after beating the Capital IQ consensus estimate by 13 cents on in-line revenue.
Green Mountain Coffee Roasters (GMCR 114.65, +33.67): +43.2% after announcing a strategic partnership with Coca-Cola (KO 38.00, +0.39), in which KO will purchase a 10% minority stake in GMCR. In addition, GMCR reported an earnings beat on below-consensus revenue.
General Motors (GM 33.99, -1.25): -3.6% after missing earnings estimates by $0.22 on below-consensus revenue.
Twitter (TWTR 51.25, -14.72): -22.3% after the company's slow growth in Monthly Active Users overshadowed its earnings beat on above-consensus revenue.

The Challenger Job Cuts report for January pointed to an increase of 11.6% year-over-year to follow the prior decline of 5.9%.

Weekly initial claims, December trade deficit, and fourth quarter productivity data will all be released at 8:30 ET.

6:33 am: [BRIEFING.COM] S&P futures vs fair value: +6.50. Nasdaq futures vs fair value: +14.00.

6:32 am: [BRIEFING.COM] Nikkei...14155.12...-25.30...-0.20%. Hang Seng...21423.13...+153.80...+0.70%.

6:32 am: [BRIEFING.COM] FTSE...6508.33...+50.40...+0.80%. DAX...9221.18...+104.20...+1.20%.

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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