Stocks were choppy on Monday with early optimism unwound at the open in a tech-led sell-off as Huawei AI chip ambitions continue to hit Nvidia (NVDA). Meanwhile, the only data point released yesterday also caused some concern. The Dallas Fed Manufacturing survey was very disappointing and accentuated the downside in equities. However, as E-mini S&P 500 futures tested 5,500, a sharp reversal was seen into the closing bell on little newsflow in what was likely technical-driven trade after a convincing break of 5,500 was rejected. T-Notes, however, pared the morning downside (induced by a slew of corporate issuance) with the risk-off trade post-opening bell supporting T-Notes to session highs, with the aforementioned data also supporting. As such, the Dollar underperformed on more economic fears ahead of an important week for US data (GDP, PCE, ISM Mfg. PMI, NFP). The lower moves and choppy risk environment helped support the Japanese Yen to outperform while the Canadian Dollar was flat ahead of Canadian election results overnight. Elsewhere, crude prices were sold as risk soured but settled marginally off lows amid the weaker Dollar and commentary from Energy Secretary Wright that the US is refilling the SPR, while some brief upside was seen earlier on India/Pakistan escalation fears. On trade, Treasury Secretary Bessent said the first trade deal could be announced as early as this week or next while noting they are doing bespoke deals with 18 trading partners, but noted China is more complex. The Treasury Secretary added that it is up to China to de-escalate and that Chinese exemptions show they want de-escalation on trade. However, Bessent said he has an escalation ladder in his back pocket but is anxious not to use it. The Dallas Fed Manufacturing Business Index tumbled to -35.8 in April from -16.3, the lowest reading since May 2020. Meanwhile, the company outlook index also retreated to a post-pandemic low of -28.3. The outlook uncertainty index pushed up 11 points to 47.1. The production index was largely unchanged at 5.1, indicative of modest growth. Delving into the report, it noted “Labor market measures suggested a slight decrease in head counts and shorter workweeks this month.” While price pressures accelerated and wage growth remained fairly stable. Looking ahead, expectations for manufacturing activity six months from now remained mixed. Elsewhere, Oil closed lower by 1.68% while Gold rallied, ending Monday with a gain of 0.85%following another volatile trading session.
To mark my 3175th 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 was flat yesterday and is still ahead by 7440 points for April after closing March with a gain of 2254 points while closing February with a gain of 4180 points. January ended with a gain of 2768 points while 1997 points were gained in December. October ended with a gain of 2179 points, after closing September with a gain of 4402 points, following a loss of 301 points in August. July gained 1908 points while June saw a gain of 2074 points. The Platinum Service made a record 9619 points in October 2022. Since I started this New Platinum Service in June 2015 it has averaged a monthly gain of over 1900 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
Recent Comments