U.S. Equity Futures advanced after Apple Inc.’s upbeat forecast, with traders expecting lower than average volumes for global stocks today due to holiday closures in much of Asia and Europe. The New Zealand Dollar sank after hiring unexpectedly declined. Futures on the S&P 500 and Nasdaq 100 Indexes were lifted as Apple’s sales forecast topped analyst projections. That points to a rebound for American technology shares after a revenue miss at Alphabet Inc. triggered its worst day in more than five years. Australian shares rose. Treasury Futures were steady and the US Dollar edged higher ahead of the Federal Reserve’s policy decision.
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 87 points yesterday to finish April with a gain of 955 points, 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
The main focus this evening will be Jerome Powell’s press conference, with Fed officials expected to keep interest rates on hold and express concern over muted inflation. Corporate earnings and developments in the trade conflict between U.S. and China remain front and centre, with bullish investors looking for fresh reasons to push the S&P 500 Index higher after closing Tuesday at a record. After the close on the Apple news,S&P 500 Futures rose 0.5 percent and Nasdaq futures climbed 0.8 percent as I go to press. In Europe the DAX was unchanged while the FTSE closed 0.4% higher despite the stronger Pound.
Currencies
Following Monday’s late rebound in the Euro the market held steady yesterday with both the Euro and USD/YEN closing unchanged at $1.1215 and 111.45 respectively. The British Pound rose as expected closing 0.3% higher at $1.3042.
Bonds
The yield on 10-year Treasuries declined about two basis points to 2.50 percent Tuesday. Futures were little changed in early Asia trading, with the cash market closed because of a Tokyo holiday all week.
Commodities
Commodity markets were weak yesterday with the West Texas Intermediate crude falling 1.1 percent to $63.22 a barrel. Meanwhile Gold slid 0.3 percent to $1,279.57 an ounce.
This morning on the Economic Front we have UK Markit PMI Manufacturing, Money Supply and Mortgage Approvals at 9.30 am. The rest of mainland Europe is closed for the May Bank Holiday with all these markets re-opening tomorrow. At 12.00 pm we have US MBA Mortgage Applications, followed by the ADP Employment Change at 1.15 pm. At 2.45 pm we have Manufacturing PMI. Next we have Construction Spending and ISM Manufacturing PMI at 3.00 pm. Finally we have the FOMC Statement and Powell press conference at 7.00 pm and 7.30 pm respectively. I expect the Fed to reiterate their still patient stance, as they announced at the start of the year, and reaffirm their position to the sidelines with Interest Rates remaining unchanged.
June S&P 500
My S&P plan worked well with the market trading lower to my 2927 buy level shortly after the US Markets opened before the ”buy the dips” again swamped the market with a 30 Handle rally. This move higher saw the S&P hit my 2934 T/P level before incredibly rallying to my 2953 sell level. Just after 11.00 pm I emailed my Platinum Members to exit any short position as I do not want to be short ahead of the FOMC Statement and Powell press conference this evening. The S&P is severely overbought and with the VIX again refusing to move lower despite the record closing prices and we have to be on guard for a reversal. The S&P has strong resistance from 2972/2982 and I will be a seller on any rally to this area with a 2990 stop. Given the large rally off yesterday’s 2926 low I would expect the 2930/2940 area to offer strong support and I will be a buyer on any dip to this area with a 2919 stop.
EUR/USD
Late yesterday the Euro traded higher to my 1.1220 sell level before having a 22 point sell-off. I used this move lower to cover this short position at my revised 1.1214 T/P level and I am now flat. Today I will again look to sell the Euro on any rally higher to 1.1245/1.1285 with a tight 1.1315 stop.
June Dollar Index
I am still flat the Dollar which fell as expected yesterday. I will now lower my sell level to 97.80/98.20 with a lower 98.55 stop.
June DAX
Germany is closed today for the May Bank Holiday and as a result there will be no commentary in either the BUND or DAX for today. Normal service for these two contracts will resume tomorrow.
June FTSE
No Change as I am still a small seller on any further rally to 7450/7490 with the same 7510 stop.
Dow Rolling Contract
Unfortunately yesterday’s 160 point fall in the Dow stopped short of my 26380 buy level with a 26420 low print and I am still flat. This morning the Dow is trading much higher at a price of 26700 as I go to press. The Dow has strong resistance above here at 26850/27000 and I will be a small seller in this area with a 27120 stop. I am not going to chase the Dow from here as I have a buy level in the S&P above.
June NASDAQ
After the US Futures Market re-opened last night the market trading higher to my 7455 sell level. As I wanted to be flat overnight I emailed my Platinum Members to exit any short position at 7444 and I am now flat. The next resistance level for the NASDAQ is from 7895/7945 and I will be a seller on any rally to this area with a 7985 stop.
June BUND
Please refer to the DAX commentary above.
Gold Rolling Contract
I am still flat Gold and as I am already long Silver I will now lower my Gold buy level to 1260/1268 with a lower 1253 stop.
Silver Rolling Contract
No Change as I am still long Silver at 14.90 with the same 14.55 stop. I will now lower my T/P level to 15.00 and if any of the above levels are hit I will be back with a new update for my Platinum Members.
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