U.S. Equity Markets finished lower as the ISM Manufacturing Purchasing Managers’ Index contracted for the fifth straight month. The Small Cap Russell 2000 led yesterday’s declines, closing lower by 1.81%. Inventories and prices entered contraction territory. This latest data is begging the central bank to stop raising interest rates. Bond Yields took notice with the 10 Year closing at 2023 lows. Fed Member Lisa Cook said that inflation has started to ease but that certain pricing pressures such as wages and other geo-political factors could impact the length of restrictive policy measures. Treasury Secretary Yellen said that the banking sector appeared to be stabilising but that regulators are prepared to take additional actions if needed. The market did not agree as the Bank Index closed lower by 2%. Fast Food company Mcdonalds’ typically considered a “recession proof” company, is temporarily closing its U.S. corporate office this week. It is getting ready to inform employees of a significant round of planned layoffs. Within the S&P 500 Index, seven of 11 sectors finished lower. European Markets closed higher. Euro-Zone PPI for February showed input prices falling for a fifth straight month as plummeting energy prices led the majority of the move lower. ECB Member Holzmann would not rule out another 50-basis point rate increase but said that the financial sector turmoil would have to prove itself to be contained. Finland officially joined NATO yesterday. This marks the latest addition to the military alliance that was brought about from Russia’s invasion of Ukraine. In Asia, South Korea’s CPI for March fell to a one-year low, hitting an annual growth rate of 4.2%, bolstering the chances the central bank ends rate hikes. The reserve Bank of Australia announced a pause to its nearly yearlong rate tightening cycle, citing substantial slowdowns in many parts of the economy. Elsewhere, Oil closed 0.19% higher while Gold surged over 2%, comfortably closing above the key $2000 pivot point.
To mark my 2750th 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.combryan@tradernoble.com for details
For anyone following my Platinum Service it made 235 points yesterday and is now ahead by 465 points for April after closing March with a gain of 6168 points, while finishing February with a gain of 3164 points, 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 HEREHERE Please subscribe to this for new interview notification
Equities
The S&P 500 closed 0.58% lower at a price of 4100
The Dow Jones Industrial Average closed 158 points lower for a 0.59% loss at a price of 33,402.
The NASDAQ 100 closed 0.37% lower at a price of 13,100.
The Stoxx Europe 600 Index closed 0.08% lower.
Yesterday, the MSCI Asia Pacific rose 0.49%.
Yesterday, the Nikkei closed 0.35% higher at a price of 28,287.
Currencies
The Bloomberg Dollar Spot Index closed 0.5% lower.
The Euro closed 0.4% higher at $1.0957.
The British Pound closed 0.4% higher at 1.2498.
The Japanese Yen rose 0.4% closing at $131.64.
Bonds
Germany’s 10-year yield closed 1 basis points lower at 2.25%.
Britain’s 10-year yield closed 1 basis points lower at 3.42%.
U.S.10 Year Treasury closed 8 basis points lower at 3.34%.
Commodities
West Texas Intermediate crude closed 0.19% higher at $80.57 a barrel.
Gold closed 1.92% higher at $2021.10 an ounce.
This morning on the Economic Front we have German Factory Orders at 7.00 am. Next, we have German, Euro-Zone and U.K Services PMI at 8.55 am, 9.00 am and 9.30 am respectively. At 12.00 pm we have U.S. MBA Mortgage Applications and the ADP Employment Change at 1.15 pm. This is followed by the Trade Balance at 1.30 pm and the Services PMI at 2.45 pm. Finally, at 3.00 pm we have ISM Services PMI.
Cash S&P 500
My S&P plan worked well as the market rallied to my 4137 sell level before falling 50 handles to an afternoon low at 4086. This move lower enabled me to cover this position at my too tight 4121 T/P level and I am now flat. I will now raise my buy level to 4040/4055 with a higher 4029 tight ‘’Closing Stop’’. As I am still short the Dow I will have no sell level in the S&P today.
EUR/USD
The Euro continues its relentless rally to 1.10. I am still flat as the market never came close to yesterday’s buy range. I will now raise my buy level to 1.0800/1.0880 with a higher 1.0745 ‘’Closing Stop’’. The Euro has resistance from 1.1060/1.1130. I will now raise my buy level to this range with a higher 1.1185 ‘’Closing Stop’’.
June Dollar Index
I am still flat. I will not chase the Dollar lower from here as we are oversold. The Dollar is trading at 101.50 as I go to press. We have support from 100.30/101.00 where I will be an aggressive buyer with a 99.65 ‘’Closing Stop’’.
Cash DAX
No Change. Given how overbought the DAX is currently trading my only interest in selling the market is still on a further rally to 15780/15900 with the same 16005 ‘’Closing Stop’’.
Cash FTSE
The FTSE hit a morning high at 7720 before falling 100 points. I am still flat. Today, I will continue to be a buyer from 7490/7570 with the same 7415 ‘’Closing Stop’’.
Dow Rolling Contract
I am still flat as thankfully the Dow had a small sell-off yesterday. This is no surprise given how extended the McClellan Oscillator has become given the recent 1500 point rally. I am still short at an average rate of 33325. I will now raise my T/P level on this position to 33270 while lowering my stop to a ‘’Closing Price at 33555. If any of the above levels are hit, I will be back with a new update for my Platinum Service.
Cash NASDAQ 100
I am still flat as the NDX missed yesterday’s sell range. Given the recent rally in Treasury Yields I will not chase the NDX lower. Today, I will continue to be a seller from 13280/13430 with a tight 13505 ‘’Closing Stop’’. I still do not want to be long the NDX at this time.
June BUND
My Bund plan worked well as the market traded lower to my 135.60 buy level before rallying to my 136.35 T/P level and I am now flat. Buying the dip in the Bund has worked really well over the past few weeks. Today, I will again be a buyer on any dip lower to 134.80/135.50 with a tight 134.15 ‘’Closing Stop’’.
Gold Rolling Contract
Thankfully we had no sell level in Gold as the market exploded over $2000. This level should now act strong support on any test. I will now raise my buy level to 1983/1997 with a higher 1969 ‘’Closing Stop’’.
Silver Rolling Contract
No Change. I am still long from Friday at a price of 23.75 with the same 25.20 T/P level. As I go to press, Silver is trading at 25.02. I will now raise my stop on this position to 24.40 as I want to protect the nice gains on my recent 23.75 long position. If this view changes I will be back with a new update for my Platinum Members.
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