U.S. Equity Markets finished yesterday’s session higher, led by NASDAQ 100 which closed higher by an impressive 3.58%. The real action took place in Europe, where most Indexes closed higher by 7/8%. Yesterday, we saw prices of oil, gold, silver, and agricultural commodities like corn and soybeans fall. Crude oil was the big standout – falling more than 10%, but still well above $100 per barrel. The rise in these commodities has added to inflation fears in recent weeks, so a decline in their prices was welcome news for investors. But, like oil, these commodities still remain elevated and could rise again depending on headlines out of Russia. Also, there was more optimism on a diplomatic ending to the Russia-Ukraine conflict. President Volodymyr Zelenskyy’s Deputy Chief of Staff Ihor Zhovkva said Kyiv would like to find a diplomatic resolution to the current conflict. Zhovkva said the government is willing to declare itself neutral. The comment means the country would not be allied with Russia, Europe, or NATO. The topic has been an important issue for Russian President Vladimir Putin. These developments helped push markets higher yesterday. But this situation still needs time to work out, which means the volatility will continue in the near term. However, markets surged higher on the optimism. Despite this, the S&P 500 Index remains well below the 200-day moving average – a key resistance level for equities, and is still down more than 10% from its all-time high. The advances far outweighed the declines in the S&P 500. Gaming stocks were among the winners, led by Caesars Entertainment (CZR) – which was named a top pick by analysts at Jefferies. Bumble (BMBL) and MongoDB (MDB) both surged higher on strong earnings reports. Energy was the underperforming sector today, alongside tumbling oil prices. Within the S&P 500, nine of the 11 sectors finished higher. European Markets surged. Putin was said to have made an offer to Zelensky to end the current conflict. In response to foreign sanctions, Russia’s government ordered a ban to restrict trade in raw materials and goods, saying the yet-to-be-determined list would go into effect on Thursday. British Transport Minister Grant Shapps said the country will step up its oil and gas production, as it looks to end Russian energy imports by the end of the year. In Asia, Chinese President Xi Jinping called the conflict in Ukraine “worrying,” saying Beijing wants to find a peaceful resolution and stop the situation from deteriorating. Japan’s final fourth-quarter gross domestic product (“GDP”) numbers fell versus the preliminary reading as household and business spending slowed. China’s consumer price index (“CPI”) figures for February were weaker than anticipated, while factory input costs eased for the fourth straight month. Australian consumer confidence remained in a steady decline since October as uncertainty about the war in Ukraine and local flooding stoked inflation fears. Elsewhere, Oil closed 11.34% lower on profit-taking after its recent surge higher, aided by reports that UAE would push OPEC to increase output, while Gold fell 4% as investor rotated back into risk assets.
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For anyone following my Platinum Service it lost 20 points yesterday and is now ahead by 1884 points for March. The Platinum Service made an impressive 5324 points gain in 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 2.57% higher at a price of 4277.
The Dow Jones Industrial Average closed 653 points higher for a 2% gain at a price of 33,286.
The NASDAQ 100 closed 3.58% higher at a price of 13,742.
The Stoxx Europe 600 Index closed 7% higher.
This morning, the MSCI Asia Pacific Index rose 2.2%.
This morning, the Nikkei closed 3.94% higher at a price of 25,690.
Currencies
The Bloomberg Dollar Spot Index closed 1.3% lower.
The Euro closed 1.7% lower at $1.1071.
The British Pound closed 0.7% higher at 1.3183.
The Japanese Yen fell 0.3%, closing at $116.12.
Bonds
Germany’s 10-year yield closed nine basis points higher at 0.20%.
Britain’s 10-year yield closed eight basis points higher at 1.53%.
US 10 Year Treasury closed 15 basis points higher 1.93%.
Commodities
West Texas Intermediate crude closed 11.34% lower at 109.67 a barrel.
Gold closed 4% lower at $1980.10 an ounce.
This afternoon on the Economic Front we have the ECB Rate Decision at 12.45 pm, followed by the Lagarde Press Conference at 1.30 pm. At the same time we have U.S. Weekly Jobless Claims and the release of the crucial CPI data. Finally, we have the Monthly Budget Statement at 7.00 pm.
Cash S&P 500
For the first time in many days we saw a gap open that held, following by a drift higher all day before a late 20 Handle sell-off into the close. The S&P ended yesterday’s session with a gain of 2.57%, following profit-taking in most Commodities which saw eye-watering falls, including Oil closing nearly 12% lower. We have CPI at 1.30 pm we the consensus is for a print of 7.9%. We have been patient with any long positions by not having any stops and today definitely helped in exiting any stale positions, like the DAX which closed 8% higher. The Fed are now in a corner as they have to raise rates especially after we see the CPI print this afternoon. However, the Fed has never raised Interest Rates in the middle of a larger market correction nor when the VIX deep into the 30’s. Why? Because the Fed hates market volatility and they want calm markets. Market volatility is a threat to the economy while we are still in the biggest bubble ever with Market Cap to GDP at 175%. Despite yesterday’s surge, the VIX only closed 7% lower at a price of 32.45. They will want to see the VIX at 25 before hiking. Remember, most Hedge Funds are not allowed to trade when the VIX is over 20. One of the main reasons holding the S&P holding up is the record number of ‘’buybacks’’. These buybacks are enormous and certainly helped the market to rally yesterday. If the S&P does break lower, we have strong support from 4000/4050 where I will be an aggressive buyer with no stop and no T/P level if triggered. The ‘’Fear & Greed ‘’ Index closed again last night with a reading of 17 which is a slight improvement but still ‘’Extreme Fear’’. This in another reason to continue to be a buyer of dips. The S&P has short-term support from 4215/4245 where I will be an aggressive buyer with no stop. The S&P has resistance from 4365/4395 where I will be a strong seller with no stop.
EUR/USD
The Euro surged over 1.5% yesterday which was expected given how oversold the Euro has been for most of the past 10 days. I am still flat as the market rallied shortly after I posted yesterday morning. The Euro has resistance from 1.1090/1.1150 where I will be a seller with a 1.1205 stop.
March Dollar Index
The Dollar sold off yesterday, closing lower by over 1% as my 98.70 T/P level was triggered on my latest 99.20 short position. This morning the Dollar is trading at a price of 98.00. We have support from 97.00/97.60 where I will be a buyer with a 96.45 wider stop.
Cash DAX
Incredible surge. The DAX rallied 1000 points yesterday for an 8% gain. This move has been flagged over the past 48 hours given the size of the sell-off since last Friday. Unfortunately, I exited my 13500 average long position at a price of 13430, before the market tagged on a further 500 points. I am happy to be flat given the fact that I was so far offside after Tuesday’s gap lower. The DAX has support from 13510/13610 where I will be a small buyer with a 13415 stop. If I am taken long I will have a T/P level at 13690.
Cash FTSE
The FTSE just missed my 7030 buy level before rallying to sit at 7150 this morning. I will now raise my buy level to 7010/7090 with a 6945 stop. I still do not want to be short the FTSE at this time.
Dow Rolling Contract
The Dow never came close to yesterday’s buy range and I am still flat. The Dow has resistance from 33650/33950 where I will be a small seller with no stop for now. The Dow has support from 32650/32950 and I will move my buy level higher to this area with no stop. If any of the above levels are hit I will be back with a new update for my Platinum Members.
Cash NASDAQ 100
No Change. I am still long and wrong in the NDX at a price of 13905. Thankfully, the NDX rallied over 500 points, trading at 13700 this morning. I will now lower my exit level to 13800 and if this level is executed, I will come back with a new update for my Platinum Members.
June BUND
The Bund traded the whole of my buy range for a now 164.30 average long position. I am still long with the same 163.45 stop and a now lower 164.60 T/P level.
Gold Rolling Contract
I am still flat. Gold is now trading $80 lower from where I marked prices 24 hours ago. Gold has support from 1958/1973 where I will be a small buyer with a 1943 stop.
Silver Rolling Contract
Silver traded the whole of yesterday’s buy range and I am now long at an average rate of 25.30. I will leave my 24.05 wider stop unchanged while lowering my T/P level to 25.65.
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