U.S. stocks fell to a one-week low as the drop in health-care providers extended amid concern about policy changes and the latest batch of corporate earnings did little to boost confidence in the economy. Treasuries edged higher. The S&P 500 Index closed at 2,900 as health providers from UnitedHealth to Anthem and Humana tumbled. Merck fell the most in the Dow Jones Industrial Average, which slipped 26 points. The Nasdaq 100 Index surpassed its August record after Qualcomm Inc.’s two-day surge topped 40 percent, though gains were tempered by a slump among biotech shares. The rout in health-care shares overshadowed the latest batch of earnings reports, which painted a mixed picture on the state of the economy. Morgan Stanley rose, but a rout in Bank NY Mellon weighed on financial shares lower. PepsiCo. Inc. jumped to an all-time high after posting solid results, while CSX Corp. and Kansas City Southern lifted transportation stocks. IBM Corp. slumped as sales fell. Health providers and hospital operators have come under pressure as national politicians debate the merits of expanding Medicare to all Americans, a move that has the power to upend earnings models for large parts of the system.
To mark my 1825th 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@tradernoblecom for details
For anyone following my Platinum Service it made 74 points yesterday and is now ahead by 613 points for April, having made 1027 points in March, 1013 points in February, 1671 points in January, 2803 points in December, 1541 points in November and 2094 points in October. Since I started this New Platinum Service in June 2015 it has averaged a monthly gain of over 1600 points
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Equities
Data yesterday showing China’s economic growth, Industrial Production and Retail Sales all topped estimates boosted equities around the world. The Stoxx Europe 600 Index erased a drop, while shares rose in Japan and Shanghai. As earnings continue to pour in, investors are growing more confident the anticipated drop in first-quarter results won’t spoil the year. At the same time, central banks around the world remain accommodative, and the latest Chinese data appears to have calmed jitters that the world’s second-largest economy was headed for a slowdown.
The S&P 500 fell 0.2 percent to 2,900.49 having made a new high for the year at 2919 shortly after the US Markets opened with the Dow Jones falling 0.1% and the NASDAQ 100 Making a new all-time high to close 0.3% higher. In Europe the Stoxx Europe 600 Index advanced 0.1 percent. Finally, the MSCI Emerging Market Index jumped 0.3 percent to the highest level in 10 months.
Currencies
The boring sideways movement for the FX Market shows no sign of ending anytime soon with the Bloomberg Dollar Spot Index closing less than 0.1% from Tuesday’s close. The Euro closed unchanged at $1.13 where is sits this morning. Meanwhile the British pound continues to weaken falling another 0.05% to close at $1.3044 in New York.
Bonds
The yield on 10-year Treasuries was virtually unchanged after climbing to a four-week high amid data showing the U.S. trade gap unexpectedly narrowed. European debt also dropped, while the Euro strengthened even as Germany’s economy ministry revised its growth forecast lower. The yield on 10-year Treasuries was little changed at 2.59 percent after hitting the highest in more than four weeks. Germany’s 10-year yield added one basis point to 0.08 percent which is a one month high. Japan’s 10-year yield rose two basis points to -0.013 percent.
Commodities
Oil markets were quiet yesterday with West Texas Intermediate crude falling 0.1 percent to $63.96 a barrel. Gold made a new low for the year to date closing at $1272 an ounce in New York while Silver again closed above $15 as the positive divergence with Gold remains.
This morning on the Economic Front we already had the release of German PPI which fell 0.1% against +0.2% expected. Next we have German and Euro-Zone Markit Manufacturing PMI at 8.30 am and 9.00 am respectively. This is followed at 9.30 am by UK Retail Sales. At 1.30 pm we have US Weekly Jobless Claims and the Philly Fed Manufacturing Survey. Finally we have Markit Services/Composite PMI at 2.45 pm and Business Inventories at 3.00 pm.
Meanwhile the Fed’s Bostic is speaking at 5.10 pm.
June S&P 500
My S&P plan worked well with the market trading lower to my 2905 buy level before rallying to my 2910 T/P level and I am now flat. My concerns about the Daily Sentiment Index showing consecutive reading over 90% certainly played out yesterday with both the S&P and Dow having Outside Downside Reversals. There is no doubt markets are nervous ahead of the Mueller Report being released this afternoon. As mentioned yesterday the S&P has strong support from 2874/2884 and today I will be a buyer on any dip to this area with a 2865 tight stop. Remember the US Markets are closed tomorrow for the Easter Holidays but unlike Europe will be open on Monday. I will now lower my sell level in the S&P to 2920/2930 with a 2938 stop.
EUR/USD
The boring action continues in the Euro despite German growth being revised lower it had no affect on the Euro. I am still flat and today I will now lower my buy level to 1.1190/1.1230 with a 1.1145 stop. I still do not want to be short the Euro as we are close to strong support plus as mentioned yesterday the market is short a near record 100,000 Futures Contracts for the single currency against the US Dollar.
June Dollar Index
No Change as I am still a seller on any rally higher to 97.05/97.45 with a 97.75 stop.
June DAX
I am still flat the DAX with the market again outperforming the US Indices. With the DAX closed tomorrow and Monday liquidity will disappear as the day goes on with traders leaving for the Easter Holidays. Today I will leave my 11970/12040 buy level unchanged with the same 11915 stop.
June FTSE
I am still flat the FTSE as the market rallies reluctantly despite the weaker than expected Pound. Today I will raise my sell level to 7440/7480 with a higher 7525 stop. As London is also closed from this evening until Tuesday I do not want to be long the market at this time.
Dow Rolling Contract
Overnight the Dow traded lower to my 26340 buy level. Earlier this morning I emailed my Platinum Members to exit any long position at a price of 26364 and I am now flat. Just like the S&P above yesterday’s Outside Downside Reversal is a worry for the bulls. However the Dow needs to break and close below 26000 for me to get worried. Today I will look to buy the Dow on any further dip lower to 26050/26200 with a 25940 tight stop.
June NASDAQ
The NASDAQ made a new all-time high yesterday before having a small sell-off and I am still flat. Today I will lower my buy level to 7550/7600 with a 7495 stop.
June BUND
I am still flat the Bund. The market is opening higher this morning on the back of the weaker equity market and the lowering of growth expectations for the German Economy. Today I will raise my sell level slightly to 165.05/165.45 with a 165.75 stop.
Gold Rolling Contract
No Change as my only interest in buying Gold is on a further dip lower to 1255/1263 with a 1247 stop. Gold has good support at the 1250 level and I would expect a decent bounce off any test of this key support.
Silver Rolling Contract
I am still long Silver at 15.15 with the same 15.25 T/P level and 14.55 stop. I will continue to look to add to this existing position at 14.80 and if any of the above levels are hit I will be back with a new update for my Platinum Members.
As most European Markets are closed tomorrow and Monday for the Easter Holidays my next Daily Commentary will be on Tuesday April 23. The U.S. Markets are closed tomorrow but will have a full trading session on Monday. If any of my calls not hit today and are subsequently triggered on Monday I will be back with an update for my Platinum Members.
Finally I would like to wish all my Members a Happy Easter and to thank everyone for their continued support.
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