The S&P led U.S. Equity markets higher, after finishing with a positive gain for the fourth consecutive trading session. However, after the close, weaker than expected earnings from Facebook sees the NASDAQ 100 trading over 1.5% lower, dragging the S&P with it. Earlier, Alphabet reported a blowout quarter, and its shares surged more than 7% as a result. Given its large market cap (it is the third-largest public company), GOOGL’s big move lifted markets yesterday. The S&P 500 Index hung around the next important technical indicator, the 100-day moving average, at 4,568. If it were to break through this level, we could see the index shoot higher toward the 50-day moving average at 4,629 in the coming days. In terms of economic data, the big release was the ADP Employment Change report. The survey showed that the economy lost 301,000 jobs in January. That was a surprise to Wall Street, which had estimated a 200,000 increase in employment. But a slowdown in job gains also has a silver lining… If we see signs the pace of economic growth is easing and the recent increases in inflation are slowing, it would signal that the Fed does not need to aggressively hike interest rates. That should soothe Wall Street fears of the Fed tightening too much into a slowing economy. The advances outnumbered the declines again. Some of the most notable gains came from Advanced Micro Devices (AMD) and Match (MTCH) on earnings reports, though GOOGL was the big one. On the downside, PayPal (PYPL) tumbled more than 20% on weak guidance. Within the S&P 500, 10 of the 11 sectors finished higher. Russian President Vladimir Putin said his government is open to additional talks with the U.S. and Europe about the Ukraine standoff, in an attempt to ease tensions. European Markets closed higher. Euro-Zone preliminary consumer price index (“CPI”) numbers for January unexpectedly increased, driven by rising energy costs. But British Prime Minister Boris Johnson was said to be ready to announce state-backed loans to energy firms, who would use the funds to provide consumer rebates to lower energy costs. The European Central Bank’s fourth-quarter Euro-Area bank lending survey showed lending standards tightened slightly as loan demand increased to the highest levels since early 2020. In Asia, Equity markets remained closed in China, South Korea, and Taiwan for the Lunar New Year holiday. Elsewhere, Japanese technology stocks gained on easing central bank rate-hike worries and better-than-expected earnings from GOOGL and AMD. Japanese Prime Minister Fumio Kishida said the government would prioritise the approval process for Shionogi’s COVID-19 pill if it files an application. Reserve Bank of Australia Governor Philip Lowe said it expects modest economic expansion this quarter as employment and inflation are stronger than anticipated. Elsewhere, Oil rose 0.18% on a larger-than-expected decline in U.S. crude inventories, while Gold gained 0.26% on Dollar weakness.
To mark my 2475th issue of TraderNoble Daily Commentary I am offering a special 2-Year Rate of Euro 2750 for my Platinum Service which includes 1 to 4 updated emails throughout the trading day to demonstrate this value, a monthly subscription over the same period would cost 4440 euro in total This offer represents a 38% discount and is open to both new and existing members. If anyone is interested in this offer can you please email me on bryan@tradernoble.com for details
For anyone following my Platinum Service it made 370 points yesterday and is now ahead by 865 points for February, after ending January with a gain of 3878 points, more than making up for December’s 932 points loss, having made 2466 points in November, 1028 points in October, 2866 points in September, 1543 points in August, and 996 points in July. The Platinum Service made 1366 points in June, 1439 points in May, 1244 points in April, after ending March with an impressive gain of 3769 points. Since I started this New Platinum Service in June 2015 it has averaged a monthly gain of over 1600 points I have a YouTube Channel which contains recent interviews I have given This can be viewed by clicking HERE Please subscribe to this for new interview notification
Equities
The S&P 500 closed 0.94% higher at a price of 4594.
The Dow Jones Industrial Average closed 224 points higher for a 0.63% gain at a price of 35,629.
The NASDAQ 100 closed 0.8% higher at a price of 15,139.
The Stoxx Europe 600 Index closed 0.5% higher.
Yesterday, the MSCI Asia Pacific Index rose 0.7%.
Yesterday, the Nikkei closed 1.68% higher at a price of 27,533.
Currencies
The Bloomberg Dollar Spot Index closed 0.3% lower.
The Euro closed 0.3% higher at $1.1307.
The British Pound closed 0.3% higher at 1.3563.
The Japanese Yen rose 0.2%, closing at $114.41.
Bonds
Germany’s 10-year yield closed one basis points lower at -0.04%.
Britain’s 10-year yield closed four basis points lower at 1.26%.
US 10 Year Treasury closed three basis points lower at 1.77%.
Commodities
West Texas Intermediate crude closed 0.18% higher at $88.29 a barrel.
Gold closed 0.26% higher at $1,807.10 an ounce.
This morning on the Economic Front we have German, Euro-Zone and U.K Markit Services PMI at 8.55 am, 9.00 am and 9.30 am respectively. This is followed by Euro-Zone PPI at 10.00 am. Next, at 12.00 pm, we have the Minutes from last month’s Bank of England Meeting. At 12.45 pm we have the ECB Rate decision followed by the Lagarde Press Conference at 1.30 pm. At the same time, we have U.S. Weekly Jobless Claims, Unit Labour Costs and Non-Farm Productivity. Finally, we have Markit Services PMI at 2.45 pm and Factory Orders at 3.00 pm.
Cash S&P 500
My S&P plan worked well with the market stopping at the 61.8 Fibonacci Retracement of January’s sell-off. This move higher saw my 4578 sell level triggered before we traded lower to my 4558 T/P level with a 4545 low print. Subsequently, the S&P ripped higher into the close hitting my second sell level at 4592 as emailed earlier to my Platinum Members. Weaker than expected earnings from Facebook saw the S&P hit my 4577 T/P level on this position and I am now flat. This morning, the S&P is trading lower at 4555. We have support from 4500/4518 and I will move my buy level higher to this area with a 4483 stop. The S&P has resistance from 4600/4620 where I will again be a seller with a 4635 wider stop. If I am taken long I will have a T/P level at 4533. If I am taken short I will have a T/P level at 4586.
EUR/USD
My short Euro position was stopped at 1.1305 and I am still flat. The Euro has now risen almost 200 points off Friday’s 1.1130 low print. The Euro has support from 1.1220/1.1270, where I will be a small buyer with a 1.1175 stop.
March Dollar Index
I am still flat. I will now lower my sell level to 96.60/97.10 with a 97.45 tight stop.
Cash DAX
The DAX just missed my 15805 sell level and I am still flat. I have no interest in buying the market at these lofty levels even though the DAX will probably stay bid ahead of Lagarde’s press conference at 1.30 pm. Today, I will lower my sell level to 15740/15845 with a tight 15905 stop. If I am taken short I will have a T/P level at 15685.
Cash FTSE
No Change. We have resistance from 7650/7710 where I will be a seller with a 7755 stop.
Dow Rolling Contract
The Dow traded in a narrow range for most of yesterday’s session before surging in the last 30 minutes. This move higher saw my 35590 sell level triggered. I am still short and I will add to this trade at 35800 with a 35955 stop. I will now raise my T/P level to 35450 and if any of the above levels are hit I will be back with a new update for my Platinum Members
Cash NASDAQ 100
We saw a brutal sell-off after the close in the NDX on the back of Facebook earnings. As I am short and offside the Dow I emailed my Platinum Members to buy the NDX which I did at a price of 14852. I will add to this trade at 14722 and I will have no stop for now. I will have a T/P level on this position at 14980 and if any of the above levels are hit I will be back with a new update for my Platinum Members. Earlier, the NDX hit my 15230 sell level before selling off to my 15130 T/P level.
March BUND
The Bund continues to trade weak and I am still flat. The Bund is oversold. Ahead of the ECB, I will now lower my buy level to 167.50/168.10 with a lower 166.95 stop.
Gold Rolling Contract
No Change. We have support from 1765/1780 where I will be a small buyer with a 1749 stop.
Silver Rolling Contract
No Change. I am still long at 22.65 with a now lower 22.95 T/P level. I will add to this trade at 21.80 with no stop for now. If any of the above levels are hit I will be back with a new update for my Platinum Members.
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