U.S. Equity Markets closed mixed as the Dow finished higher by 0.50% while the NASDAQ 100 closed Friday with a loss of 0.62% following another spike in Bond Yields. Federal Reserve Governor Christopher Waller expressed criticism for cryptocurrency, calling it “a speculative asset,” but cautioned regulators from encroaching too far on the potential growth of the utility. The U.S. is set to hit Chinese firms linked to China’s spy balloon shot down last week with trade sanctions. Following a relatively quiet week of macroeconomic news, investors will be paying close attention to the latest updates on inflation when the U.S. Bureau of Labour Statistics releases its January Consumer Price Index (“CPI”) and Producer Price Index (“PPI”) readings. The University of Michigan’s Consumer Expectations Survey for February showed a slight uptick in short-term inflation expectations despite an improvement in consumer sentiment. Within the S&P 500 Index, eight of the 11 sectors finished higher. European Markets closed lower. ECB Governing Council member Joachim Nagel said it must continue to raise interest rates rapidly to ensure inflation expectations do not become anchored. Russia announced that it will cut its oil output by 500,000 barrels per day (about 5% of existing production) in response to Western sanctions. The German Chamber of Commerce and Industry said the German economy will stagnate this year – in a revision to its previous forecast for a 3.0% contraction. U.K. Fourth Quarter GDP showed zero growth over the time frame. It also showed that the economy narrowly avoided a recession but now faces a tougher outlook for 2023 as consumers deal with double-digit inflation. In Asia, the Reserve Bank of Australia raised its inflation expectation for the year ending in June from 5.5% to 6.25%, saying it likely peaked in December and will return to the target rate over time. China’s CPI data for January was in-line with expectations, while the PPI contracted, signalling stable inflation. Japan’s PPI gains for January slowed more than expected – falling compared with December’s results – as commodity prices eased. Elsewhere, Oil surged 2.27% while a stronger Dollar saw Gold closed 0.17% lower.
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For anyone following my Platinum Service it made 60 points on Friday and is now ahead by 1564 points for February after closing January with a gain of 4687 points, while finishing December with a gain of 2054 points. November ended with a gain of 4789 points, while finishing October with a record gain of 9619 points, making 6660 points in September, after closing August with a gain of 2228 points, having made 2660 points in July, following a gain of 3371 points in June. The Service made 3651 points in May, after making 762 points in April, following a gain of 5883 points in March. The Platinum Service made an impressive 5324 points in February, after ending January with a gain of 3878 points, more than making up for December’s 932 points loss. 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 0.22% higher at a price of 4090
The Dow Jones Industrial Average closed 169 points higher for a 0.50% gain at a price of 33,869.
The NASDAQ 100 closed 0.62% lower at a price of 12,304.
The Stoxx Europe 600 Index closed 0.96% lower.
This morning, the MSCI Asia Pacific fell 0.8%.
This morning, the Nikkei closed 0.88% lower at a price of 27,427.
Currencies
The Bloomberg Dollar Spot Index closed 0.4% higher.
The Euro closed 0.5% lower at $1.0681.
The British Pound closed 0.4% lower at 1.2055.
The Japanese Yen fell 0.5% closing at $132.20.
Bonds
Germany’s 10-year yield closed 7 basis points higher at 2.37%.
Britain’s 10-year yield closed 10 basis points higher at 3.38.
U.S.10 Year Treasury closed 6 basis points higher at 3.74%.
Commodities
West Texas Intermediate crude closed 2.27% higher at $79.83 a barrel.
Gold closed 0.17% lower at $1859.10 an ounce.
Today on the economic front we have no date of note from either side of the Atlantic. All eyes will be on tomorrow’s U.S. CPI which will be released at 1.30 pm.
Cash S&P 500
The S&P fell shy of my aggressive 4020/4035 buy range with a morning low of 4050 before trading sideways to higher before a late rally saw the market close at 4090. I am still flat. Friday, was the smallest daily range so far this year and with no economic data due, today promises to be quiet ahead of tomorrow’s key CPI release. The Bears will be happy that we ended last week below the Daily 5EMA and 8MA while new Cash lows on Friday should see some follow through this week. However, I still do not want to be short the market as the seasonal charts still points to a rip higher into April. Today, I will continue to be an aggressive buyer from 4020/4035 with the same 3999’ Closing Stop’’.
EUR/USD
Overnight, the Euro traded lower to my initial 1.0660 buy level. I will add to this position at 1.0590. I will have a T/P level at 1.0710 on this position. If any of the above levels are hit I will be back with a new update for my Platinum Members.
March Dollar Index
I am still flat the Dollar as the market again traded in a narrow range. I will now raise my buy level to 102.30/102.90 with a higher 101.75 ‘’Closing Stop’’.
Cash DAX
On Friday we finally saw some weakness in the DAX. I am still flat as the market never came close to my buy range. We have support from 15080/15160 where I will be a strong buyer with a 14995 ‘’Closing Stop’’. I no longer want to be short the DAX at this time.
Cash FTSE
The FTSE continues to ignore all political and economic woes, trading close to all-time highs albeit in a tiny range on Friday. I am still flat. I will continue to be a buyer from 7770/7840 with the same 7715 ‘’Closing Stop’’.
Dow Rolling Contract
Having hit a morning low at 33515, the Dow finally rallied to my 33810 revised T/P level in the afternoon and I am still flat. The Dow mainly traded in a 100-point range for most of the Cash session as traders took the afternoon off given the lack of economic data. We have support from 33400/33650 where I will again be a buyer with a 33195 wider ‘’Closing Stop’’. My only interest in selling the Dow is on a further rally higher to 34350/34600. If triggered, I will have a T/P level at 34180 while my stop will be fixed at 34755.
Cash NASDAQ 100
No Change. I am still long from Thursday at an average rate of 12420. I will leave my 12295 ‘’Closing Stop’’ unchanged. I will now lower my T/P level to 12480. If any of the above levels are hit I will be back with a new update for my Platinum Members.
March BUND
I am still long the Bund from late Thursday at 136.10. I will continue to add to this position at 135.30 with the same 134.75 ‘’Closing Stop’’. Ahead of CPI tomorrow, I will now lower my T/P level to 136.50.
Gold Rolling Contract
No Change. Gold has support below from 1828/1843 where I will be a buyer with the same 1817 ‘’Closing Stop’’.
Silver Rolling Contract
No Change. Silver traded sideways on Friday following Thursday’s aggressive sell-off. I am still long at an average rate of 23.10 with the same no stop policy. I will leave my T/P level unchanged at 23.50. If any of the above levels are hit I will be back with a new update for my Platinum Members.
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