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Trade Journal By M.A. Perry
Trader and Founder of WRB Analysis (wide range body analysis)

Trade journals are crucial in preventing us traders from becoming complacent or content with our trading plan or the markets because without having the ability to review archives of past trading days in a forever changing market...we won't know it's time to adapt when change occurs in the markets because broker statements alone doesn't help us keep that edge in comparison to a trade journal. In addition, although this journal contains advertisements involving my trade methods, it does contain useful trading tips a few times per week. Thus, if you're looking for trading tips that can improve your trading and understand that profitable trading involves more than just entry signals...consistently read this trade journal and the #FuturesTrades chat room logs where I post my trades in real-time from entry to exit (see link below) via my IRC user name wrbtrader that's the same as my user name on twitter.

Today's #FuturesTrades chat room logs is archived @ http://www.thestrategylab.com/ftchat/forum/viewtopic.php?f=74&t=515.



FYI - You can ask me questions here at the forum or you can tweet me on twitter about anything related to today's trading or related to your own trading.

@ http://twitter.com/wrbtrader

In addition, posted below are direct links about my trade methodology or trading approach 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 analysis).

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

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

Also, if you're interested in having free access to one of my profitable trade strategies along with earning extra income with little effort...join my referral program @ http://www.thestrategylab.com/ReferralProgram.htm

My Trading Performance: +75.10 points in the ICE Russell 2000 Emini TF ($TF_F) Futures

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Stocks Down On Day, Week, Year
By Alexandra Twin, senior writer
May 7, 2010: 6:03 PM ET

NEW YORK (CNNMoney.com) -- Stocks slumped Friday, with the three major indexes ending in negative territory for the year as investors mulled the Greek debt crisis and the aftermath of one of the most gut-churning days in Wall Street history.

The Dow Jones industrial average (INDU) lost 140 points, or 1.3%, after seesawing in the morning, having gained as much as 59 points and lost as much as 279 points. The S&P 500 index (SPX) lost 17 points, or 1.5%. The Nasdaq composite (COMP) lost 54 points, or 2.3%.

All three indexes ended in negative territory for the year. All three indexes also closed lower for the fourth straight session and the second straight week.

The selloff from the late April highs has been substantial enough that the Nasdaq, with a loss of 10.5%, is now considered to be in a correction.

The Dow and S&P 500 are also approaching double-digit losses, down 7.4% and 8.7% respectively.

Stocks were extremely volatile throughout the session, with the major indexes criss-crossing the breakeven line several times during the day. Investors looked past a big rise in April payrolls and instead focused on Europe in the aftermath of Thursday's roller-coaster ride.

Europe's debt woes were in focus as riots continued in Greece. British elections failed to produce a ruling majority, resulting in a hung Parliament for the first time since the 1970s.

Meanwhile, U.S. investors remained rattled after a session in which the Dow lost almost 1,000 points before rebounding two-thirds of the way back.

"Investors are very confused about how the market could drop hundreds of points in minutes, and until there are concrete answers, they aren't going to feel better," said Andrew Neale, head of wealth management at Fogel Neale Partners.

"The market erased two months of gains in a few days, and it's nerve wracking," he said.

Wall Street's fear gauge, the CBOE Volatility index, or the VIX (VIX), rose 26% Friday, to $41.43, ending at a fresh 13-month high.

Tech shares slumped across the board, including IBM (IBM, Fortune 500), Hewlett-Packard (HPQ, Fortune 500), Cisco Systems (CSCO, Fortune 500) and Microsoft (MSFT, Fortune 500). But losses were pretty spread out, with 26 of 30 Dow components sliding. Gains in JPMorgan Chase (JPM, Fortune 500) and Chevron (CVX, Fortune 500) helped protect the Dow from bigger losses.

Market breadth was negative. On the New York Stock Exchange, losers beat winners seven to three on volume of 2.42 billion shares. On the Nasdaq, losers beat winners three to one on volume of 4.18 billion shares.
296 'funked up' stocks -- trades canceled

Thursday's wild ride: An already weak Dow plunged 650 points in less than 10 minutes Thursday afternoon as erroneous trades on hundreds of stocks piled up, causing an investor panic. The blue-chip indicator had already been sporting a nearly 350-point loss on Greek debt worries ahead of the crash, bringing its losses to almost 1,000 points shortly before 3 p.m. ET.

That 998.5-point loss was the worst ever on an intraday basis. However, the Dow ended up recovering most of the sudden loss by the close, ending the day down 348 points. The loss of 348 points was the Dow's worst in 15 months.

On Friday, Nasdaq said it canceled trades on 296 stocks that saw their prices fluctuate by at least 60% between 2 p.m. and 3 p.m. ET on Thursday, including Accenture (ACN), which plunged from $40.13 to just one cent before recovering.

But trades were not canceled for Dow components Procter & Gamble (PG, Fortune 500), which fell 37%, and 3M (MMM, Fortune 500), which lost 22%, contributing 315 of the 998.50 points the Dow lost at its nadir.
Poof! Kiss investor confidence goodbye

European debt crisis: Worries about the European debt crisis have dragged on stocks all week as investors feared that problems in Greece will spread -- despite the country receiving a $146 billion bailout package. Those worries continued Friday, but were somewhat cooled after German lawmakers approved the country's contribution to the loan package, roughly $29.6 billion over the three years.

In Europe, markets tumbled across the board, with France's CAC 40 down 4.6%, the London FTSE down 2.6% and the German DAX down 3.3% after Britain's elections ended in a hung Parliament, with none of the ruling parties possessing enough seats for majority rule.

Asian markets tumbled in response to Wall Street's miserable Thursday, with the Japanese Nikkei losing 3.1% and Hong Kong's Hang Seng down 1%. The Bank of Japan infused $22 billion into financial markets Friday to increase the sense of security amid the Greek debt worries.
April jobs report: Best gain in four years

Jobs: Employers added 290,000 jobs to their payrolls in April, the government said, surprising economists who expected 187,000 new jobs. It was the biggest one-month gain since March 2006. March's number was revised up to 230,000 from the originally reported 162,000.

Company news: Troubled insurer AIG (AIG, Fortune 500) reported a quarterly profit Friday morning, versus a year-ago loss, as the company's insurance business continued to stabilize. The company's shares are up 23% this year on hopes it can pay back the more than $120 billion in loans it owes taxpayers.

The company received a bailout worth up to $182 billion from the government.
0:00 /6:02NYSE CEO explains selloff

Dollar and commodities: The dollar rose 1.1% against the yen, but slipped 1% versus the euro. On Thursday, the euro had fallen to the lowest point versus the dollar since March 2009.

U.S. light crude oil for June delivery dropped $2 to settle at $75.11 a barrel on the New York Mercantile Exchange.

COMEX gold for June delivery rose $13.10 to settle at $1,210.40 per ounce.

Bonds: Treasury prices fell, pushing the yield on the 10-year note to 3.42% from 3.40% Thursday. Treasury prices had fallen more in the morning, with the yield even higher, but cut losses as the session wore on. Treasury prices and yields move in opposite directions.



Yahoo! Finance

4:35 pm : The best monthly jobs report in four years couldn't keep sellers from sending stocks to their fourth straight loss, which contributed to the stock market's worst weekly performance in one year.

Despite persistent weakness overseas amid continued contagion concerns, stocks managed to attract some modest support as some speculated that a rebound may be in order after the stock market sank some 6% during the course of the three previous sessions. The worst of that loss came Thursday, when the Dow's intraday drop of almost 1000 points was blamed on the failure of computerized trades and electronic networks. In response, both the NYSE and Nasdaq cancelled trades from a 20 minute time block that saw prices greater than or less than 60% away from the consolidated last print price.

However, stocks were unable to sustain the early bid. News that nonfarm payrolls for April surged 290,000, the largest increase since March 2006, couldn't even secure support for stocks.

As an aside, the headline unemployment rate climbed to 9.9% from 9.7% as a result of workers re-entering the workforce.

With sellers reaffirming control, stocks were unable to make anything more than a few upward charges, each of which proved fruitless in the face of resistance.

Heavy volume to the downside made for widespread weakness. As such, nearly 90% of the names in the S&P 500 logged losses and declining share volume on represented 85% of the NYSE's total trading volume, which surpassed 2 billion shares for the second straight session. Volume on the NYSE has not broken 2 billion shares in back-to-back sessions in more than one year. What's more, neither of those two sessions have been options expirations sessions.

Such steep losses amid such heavy volume has caused volatility to spike to its highest level in more than a year. The Volatility Index settled this session roughly 25% higher.

The heightened volatility has given support to gold, which closed this session at $1213 per ounce, up 1.3% for the session. Gold prices actually set a new 2010 high of almost $1215 per ounce earlier in the session.

Treasuries failed to secure support, though. The benchmark 10-year Note fell several ticks, such that its yield moved back above 3.40%.

Meanwhile, the stock market booked its worst closed in two months. That contributed to a weekly loss of more than 6%, which makes for the stock market's worst weekly slide in one year.

Advancing Sectors: (None)
Declining Sectors: Tech (-2.3), Industrials (-2.1%), Consumer Discretionary (-1.9%), Energy (-1.5%), Health Care (-1.4%), Materials (-1.3%), Financials (-1.2%), Telecom (-0.6%), , Utilities (-0.6%), Consumer Staples (-0.5%) DJ30 -139.89 NASDAQ -54.00 NQ100 -2.3% R2K -2.9% SP400 -2.5% SP500 -17.27 NASDAQ Adv/Vol/Dec 577/4.11 bln/2115 NYSE Adv/Vol/Dec 887/2.41 bln/2229

3:30 pm : The CRB Commodity Index shed 0.6% to log its fourth straight loss. It finished this week 5.9% lower, which makes for its worst weekly loss in one year.

Crude prices continued to roll over. Oil prices had been above $87 per barrel at the beginning of the week, but it closed the week at $75.11 per barrel. This session alone the energy component shed 2.6% to close below its 200-day moving average and at its lowest level since February.

Natural gas garnered support, though. The price of the forward contract climbed 2.2% to $4.02 per MMBtu.

Gold prices continued their ascent. The yellow metal closed with a 1.3% gain at $1213 per ounce after it had set a new 2010 high of almost $1215 per ounce.

Silver was even stronger this session. It spiked 6.2% to $18.61 per ounce, which puts it slightly below the 2010 high of $18.89 per ounce that was set earlier this week. DJ30 -152.96 NASDAQ -56.01 SP500 -17.25 NASDAQ Adv/Vol/Dec 594/3.50 bln/2099 NYSE Adv/Vol/Dec 868/1.89 bln/2236

3:00 pm : Participation remains strong as the final hour of trade approaches. Based on the current pace of things, trading volume will likely break 2 billion shares this session. Should that prove to be the case, it would mark the first time in more than one year that volume on the NYSE has broken 2 billion shares in back-to-back sessions. What's more, neither of those two sessions have been options expirations sessions.

Most volume over the past two sessions has been toward the downside, though. In turn, weakness has been widespread. DJ30 -144.50 NASDAQ -52.68 SP500 -16.45 NASDAQ Adv/Vol/Dec 621/3.23 bln/2059 NYSE Adv/Vol/Dec 894/1.73 bln/2204

2:30 pm : The stock market has drifted to a fresh afternoon low. Declining issues now outnumber advancers by more than 6-to-1 in the broad-based S&P 500. As things currently stand, the stock market is on track for its fourth straight loss, each of which has exceeded 1%. In turn, the stock market is on track for a weekly loss of more than 6%, which would make for the stock market's worst weekly slide in one year. DJ30 -152.66 NASDAQ -50.74 SP500 -17.29 NASDAQ Adv/Vol/Dec 665/2.98/1998 NYSE Adv/Vol/Dec 890/1.56 bln/2204

2:00 pm : With a 0.5% loss against a basket of competing currencies, the dollar is back near its afternoon low. Most of the dollar's downturn comes as a result of a rally by the euro, which is at 1.2737 per dollar after it was at a one-year low of 1.2529 per dollar in the prior session. Despite the greenback's pullback this session, it is still up more than 3% week-to-date and more than 8% year-to-date.

A stronger dollar has acted as a headwind for stocks for several months now, but its weakness this session has had little effect on stocks since sellers remain in control of trade. DJ30 -89.93 NASDAQ -36.25 SP500 -10.10 NASDAQ Adv/Vol/Dec 759/2.80 bln/1899 NYSE Adv/Vol/Dec 1055/1.48 bln/2040

1:30 pm : Stocks continue to contend with sellers, who have put the broader market on the retreat once again. In turn, all three major indices are down with losses in excess of 1%.

Despite the stock market's slide, Treasuries have failed to move back into positive ground. Instead, the 10-year Note is down several ticks so that its yield is back above 3.40%. DJ30 -108.61 NASDAQ -41.04 SP500 -13.69 NASDAQ Adv/Vol/Dec 702/2.66 bln/1945 NYSE Adv/Vol/Dec 952/1.40 bln/2079

1:00 pm : Despite a stronger-than-expected payrolls report, stocks continue to whip along with losses in high volume, high volatility trade.

Stocks attracted a bit of support in the early going as some market participants speculated that a rebound may be in order after the stock market sank some 6% during the course of the past three sessions. The mood remained relatively positive amid news that April nonfarm payrolls increased by a stronger-than-expected 290,000, the largest increase since March 2006.

However, sellers quickly made their presence known as they sent the Dow down more than 300 points from its opening gain to its session low. Though stocks were able to bounce off of their lows, they have been unable to break back into positive territory as sellers seem to control the tone of trade.

Volatility remains strong amid this session's whipsaw action. At the moment the Volatility Index is up more than 6%, but it was up nearly 30% at its session high.

Trading volume remains strong, too. In fact, more than 1 billion shares have already exchanged hands on the NYSE.

Tech is the worst performing sector this session. The sector is down 1.5% at the moment. Particular weakness among large-cap tech issues has caused the Nasdaq to lag its counterparts for the entire session.

Defensive-oriented utilities have found favor this session. The sector is up 0.2% at the moment. It is the only sector to sport a gain.

An interest in safety continues to favor gold prices. Gold prices are currently up 1.1% to $1210.40 per ounce, just below the 2010 intraday high near $1212 per ounce, which was registered in the prior session. Silver has been even stronger this session. The precious metal is up 6.2% to $18.60 per ounce at the moment.

Oil prices are under stiff pressure for the fourth straight session. The price of crude was last quoted at $75.45 per barrel, down 2.2%. DJ30 -74.89 NASDAQ -30.75 SP500 -8.78 NASDAQ Adv/Vol/Dec 788/2.50 bln/1846 NYSE Adv/Vol/Dec 1046/1.30 bln/2034

12:30 pm : Once again the stock market attempted to move into positive territory but it ran into resistance as sellers make a stance near the neutral line.

While the broader market is back in the red, utilities stocks have managed to make their way to higher ground to sport a 0.3% gain. Utilities make up the only major sector to trade in positive territory.

Despite its relative strength this session, utilities, for the most part, have lagged the broader market this year. As such, the defensive-oriented sector is down nearly 6% year-to-date, while the S&P 500 is up fractionally year-to-date. DJ30 -76.33 NASDAQ -24.74 SP500 -7.56 NASDAQ Adv/Vol/Dec 890/2.32 bln/1719 NYSE Adv/Vol/Dec 1067/1.19 bln/2002

12:00 pm : The Dow and S&P 500 recently made another upward push, but the move fizzled out. Still, stocks are up substantially from their lows, which saw the Dow trade with a loss of 2.7%.

Trade in Europe has come to a close. The major bourses had traded with varied losses midway through their session, but pressure intensified as the U.S. indices fell under renewed selling. The European exchanges were unable to recover, such that Britain's FTSE fell 2.6%, Germany's DAX dropped 3.3%, and France's CAC plummeted 4.6%.

Weakness abroad and at home has taken the Dow Jones World Index down another 1.8%, which makes for its fourth straight loss of more than 1%. The index is down nearly 8% week-to-date. DJ30 -41.03 NASDAQ -21.42 SP500 -5.53 NASDAQ Adv/Vol/Dec 822/2.12 bln/1782 NYSE Adv/Vol/Dec 1005/1.05 bln/2065

11:30 am : A recent flurry of buying briefly put the Dow into positive territory after it had been down nearly 280 points, or roughly 2.7%, but pressure has picked back up to take the headline index back to a loss of roughly 100 points, or 1.0%.

There hasn't been any particular news item to account for the swings. Instead, the whipsaw action comes as a consequence of renewed volatility in the stock market. As such, the Volatility Index is up more than 12% at the moment. DJ30 -107.62 NASDAQ -36.07 SP500 -12.89 NASDAQ Adv/Vol/Dec 724/1.86 bln/1868 NYSE Adv/Vol/Dec 725/925 mln/2323

11:00 am : Selling pressure has intensified to take stocks deeper into negative territory, but the major indices have managed to make their way up modestly from session lows, which were reached roughly 30 minutes ago. Still, weakness remains widespread as all 10 major sectors in the S&P 500 trade with losses.

Tech, which is the largest sector by market weight, continues to trade with the worst loss. The sector is now down 2.1% as computer hardware and computer storage and peripherals fall 3.9% and 3.4%, respectively.

Financials, the second heaviest sector by market weight, have gone from a source of early strength to a loss of 1.6%. The sector's reversal comes as consumer finance plays push to a 3.6% loss and life and health insurers slide 3.2%.

With so many inclined to sell, Treasuries have garnered renewed support. As such, the benchmark 10-year Note has seen its yield drop to 3.35%. DJ30 -154.85 NASDAQ -51.02 SP500 -19.42 NASDAQ Adv/Vol/Dec 492/1.49 bln/2067 NYSE Adv/Vol/Dec 518/723 mln/2528

10:30 am : Oil prices continue to push sharply lower for the fourth straight session. The price of crude had dropped 4.0% on Tuesday, 3.3% on Wednesday, and 3.6% on Thursday. It is down another 3.2% to $74.65 per barrel this session.

Natural gas prices have managed to find higher ground, but they have started to give up some of their gains. The commodity was last quoted at $3.94 per MMBtu, up 0.2%. It traded as high as $3.99 per MMBtu earlier this morning.

Gold prices continue to benefit from an increased aversion to risk. The yellow metal has made its way up 0.5% to $1202.80 per ounce, which is slightly below the 2010 intraday high of almost $1212 per ounce that was set in the prior session.

Though its strength has been less consistent than that of gold, silver has also moved higher. The precious metal was last quoted at $17.66 per ounce, up 0.8%. DJ30 -253.65 NASDAQ -87.54 SP500 -26.97 NASDAQ Adv/Vol/Dec 506/1.04 bln/2008 NYSE Adv/Vol/Dec 533/528 mln/2481

10:00 am : A flurry of selling has undercut the stock market and taken it to a modest loss. Financials and materials have managed to remain in higher ground, though each sector has given up a chunk of its gain -- both sectors currently trade with a 0.2% gain.

Pressure has been more intense among tech stocks as the tech sector drops to a 1.3% loss, which is the worst of any other major sector. Particular weakness among large-cap tech has the Nasdaq on a sharper backslide than the broader S&P 500. DJ30 -11.33 NASDAQ -15.47 SP500 -2.03 NASDAQ Adv/Vol/Dec 1148/486 mln/1273 NYSE Adv/Vol/Dec 1508/254 mln/1384

09:45 am : Stocks are up modestly in the first few minutes of trade. Early leadership comes from financials and materials stocks. The two groups are up 1.3% and 1.4%, respectively.

On the other hand, health care and consumer staples are weak. The two groups make up the only two sectors that currently trade with a loss. They are down 0.3% and 0.1%, respectively.

Treasuries have also come under a bit of pressure in the early going. After strong buying in the prior session drove the yield on the 10-year Note below 3.40% for the first time this year, the Note's yield has made its way back up to 3.42%. DJ30 +39.83 NASDAQ +4.16 SP500 +3.73 NASDAQ Adv/Vol/Dec 1330/259 bln/1007 NYSE Adv/Vol/Dec 1680/158 mln/1124

09:15 am : S&P futures vs fair value: +3.60. Nasdaq futures vs fair value: +0.80. Stock futures suggest that a mildly positive start is in order for this session. The uptick would come after stocks dropped in excess of 6% during the course of the past three sessions, the last of which saw the stock market fall more than 3%. Though the prior session's loss was the worst single-session percentage slide of 2010, it wasn't as bad as near 9% loss that it had seen during an intraday drop. That drop has been blamed on the failure of computerized trades and electronic networks. In turn, both the NYSE and Nasdaq have cancelled trades from a 20 minute time block that saw prices greater than or less than 60% away from the consolidated last print price yesterday. Aside from a retelling of the prior session's selloff, many market participants are discussing a better-than-expected Nonfarm Payrolls Report, which showed that 290,000 nonfarm jobs were added in April. The strong jobs report and uptick in stock futures has caused some to rotate out of the dollar after seeking safety in the greenback for four straight sessions.

09:05 am : S&P futures vs fair value: +2.10. Nasdaq futures vs fair value: -0.30. U.S. equity futures remain above fair value, but Europe's primary bourses remain under pressure. In Germany, the DAX is down 0.4%. E.On is a primary source of weakness - its shares are down more than 6% on the German bourse. According to reports, Germany's Parliament approved a draft version of a plan to provide financial aid to Greece, which remains at the center of contagion concerns. In France, the CAC has fallen by 0.9%. Financial issues BNP Paribas and Societe Generale are under some of the most pressure. Meanwhile, Britain's FTSE is off by 0.2%. Barclays (BCS) has offered some support, but the broader market has had to contend with widespread weakness. As an aside, the general election in the U.K. has not resulted in a decisive winner. Asia's major market averages closed the week on a weak note. Japan's Nikkei fell 3.1%, which gave it a weekly loss of more than 6% even though it was closed for the first few sessions of this week. The latest round of selling came with more than 95% of the names in the Nikkei fell to a loss. In Hong Kong, the Hang Seng shed 1.1% to close the week with a loss of more than 5%. HSBC (HBC) was a primary source of weakness in Friday's trade. The Shanghai Composite dropped 1.9% Friday and more than 6% for the week. PetroChina (PTR) was a primary source of weakness in the final session of the week.

08:35 am : S&P futures vs fair value: +3.00. Nasdaq futures vs fair value: +2.50. Though still above fair value, stock futures have gyrated in the minutes around the 8:30 AM ET release of the government's official Nonfarm Payrolls Report. The latest government statistics showed that nonfarm payrolls increased by 290,000 in April. That was a pleasant surprise since an increase of 200,000 nonfarm payrolls had been expected. Nonfarm payrolls for the prior month were revised upward to reflect an addition of 230,000 nonfarm jobs. Despite the stronger-than-expected increase in nonfarm payrolls and the upward revision to figures for March, the Unemployment Rate increased from 9.7% to 9.9%, which is above the 9.8% that had been expected, as more people entered the labor force. The average workweek for April totaled 34.1 hours, which is in step with the 34.0 hour workweek that had been forecasted.

08:00 am : S&P futures vs fair value: +1.20. Nasdaq futures vs fair value: +2.00. The S&P 500 has fallen some 6% during the course of the past three sessions, the last of which was the worst single-session percentage drop of the year. Such selling has perpetuated further weakness in overseas markets, which remain jittery over Greece contagion concerns. Though Asia's major market averages have already closed with steep losses and Europe has had to contend with varied losses this session, U.S. stock futures have managed to attract some support. Meanwhile, the dollar's four-session streak of gains has been challenged by a rebound in the euro, which fell to a one-year low against the greenback in the prior session. The general tone among premarket participants appears positive, but the Employment Report for April could be a market mover. The report is due at the bottom of the hour.

06:58 am : S&P futures vs fair value: +7.90. Nasdaq futures vs fair value: +13.30.

06:58 am : Nikkei...10364.59...-331.10...-3.10%. Hang Seng...19920.29...-213.10...-1.10%.

06:58 am : FTSE...5250.85...-10.20...-0.20%. DAX...5874.58...-32.80...-0.50%.

Special thanks to Yahoo! Finance and CNNMoney for their market summaries.

Best Regards,
M.A. Perry
Trader and Founder of WRB Analysis (wide range body analysis)
@ http://twitter.com/wrbtrader and http://stocktwits.com/wrbtrader

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