Equity Markets slid as political turmoil in the U.S. whipsawed shares after reports said Democrats would launch a formal impeachment inquiry amid the Ukraine controversy. The S&P 500 fell the most in a month after it was reported that House Speaker Nancy Pelosi would announce a formal impeachment inquiry of President Donald Trump. The benchmark cut losses earlier in the day after Trump said he would release a complete transcript on Wednesday of his phone call with the Ukrainian president, which is the subject of a congressional investigation and a whistle-blower complaint from an unidentified intelligence official. A host of other factors also weighed on equities. FAANG stocks — made up of Facebook Inc., Amazon.com Inc., Apple Inc., Netflix Inc., and Google parent Alphabet Inc. — fell after Trump made negative remarks about China and the growing power of social media platforms during his speech at the United Nations Tuesday. Weakening Consumer Confidence added to the gloom. The 10-year Treasury yield hit a two-week low, while the US Dollar fell to session lows. The Pound gained after the U.K.’s top judges inflicted an unprecedented legal defeat on Prime Minister Boris Johnson, adding to Brexit chaos. After the close Speaker Nancy Pelosi said the House is opening a formal impeachment inquiry of President Donald Trump, saying he’s violated his oath of office and obligations under the Constitution.
“The president must be held accountable. No one is above the law,” Pelosi said at a news conference Tuesday after a closed-door meeting with her party.
To mark my 1900th 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 lost 80 points yesterday and is now ahead by 1151 points for September, having made 2387 points in August, 1153 points in July, 1346 points in June,1722 points in May, 955 points in April and 1027 points in March. 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 new impeachment push in the U.S. adds to swirling concerns hovering over global markets. Trump’s speech at the United Nations yesterday ratcheted up tensions between the U.S. and China, keeping markets on edge ahead of planned high-level talks between the world’s two biggest economies in October. His renewed pressure on some of the biggest American companies sent a jolt through technology Indexes. Meanwhile, underwhelming economic indicators are muddying the picture, with the U.S. consumer showing signs of losing momentum adding to worries. Downbeat numbers from Japan and mixed data from Germany were stark reminders of the fragility of global growth. And political risks loom large for investors, from Brexit to a U.S. Congressional investigation into Trump’s dealings with Ukraine.
The S&P 500 Index fell 0.8% to close at a price of 2966.
The Nasdaq 100 sank 1.4%.
The Stoxx Europe 600 Index ended virtually unchanged. The DAX Index dropped 0.3% and the FTSE fell 0.5%
The MSCI Emerging Market Index slid 0.4%.
Currencies
Here is a summary of the main Changes in F.X Markets:
The Bloomberg Dollar Spot Index slid 0.3%.
The Euro increased 0.2% to $1.1019.
The British Pound jumped 0.5% to $1.2493.
The Japanese Yen rose 0.5% to 107.03 per dollar.
Bonds
The yield on 10-year Treasuries sank nine basis points to 1.64%.
The yield on two-year Treasuries declined six basis points to 1.61%.
Germany’s 10-year yield dropped two basis points to -0.60%.
Britain’s 10-year yield fell two basis points to 0.528%.
Japan’s 10-year yield fell three basis points to -0.234%.
Commodities
Oil fell on signs Saudi Arabia is making progress in restoring lost output following a drone attack on its facilities. This resulted in West Texas Intermediate crude closing 2.8% lower at $57.03 a barrel.
Gold Futures rose 0.6% $1,540.40 an ounce.
This morning on the Economic Front we have UK CBI Distributive Trades Survey at 11.00 am. This is followed at 12.00 pm by U.S. MBA Mortgage Applications. Finally, at 3.00 pm we have New Home Sales.
December S&P 500
My S&P pan did not work well as after the market dropped the whole of my buy range for a 2988 average long position, a combination of weak Consumer Confidence and rumours of impeachment saw the S&P quickly stop me out of this position at 2975 and I am now flat. The 50 Day Moving Average for the S&P comes in at 2950 and should offer strong support on its first test and lead to a decent rebound. As a result I will again look to buy the S&P from 2942/2954 with a 2935 stop. As long as the 50-Day MA holds I do not want to be short the market at this time.
EUR/USD
The boring sideways action shows no sign of ending for the EUR/USD. I am still flat and I will continue to be a buyer on any dip lower to 1.0920/1.0960 with the same 1.0885 stop.
December Dollar Index
No Change as I am still a small seller from 98.50/98.90 with the same 99.30 stop.
December DAX
With all five of my Indices getting hit at or near the same time I did not buy the DAX as I had enough exposure. The main reason for this was the fact that the DAX closes at 9.00 pm and does not re-open until 7.00 am the next morning and I did not want to get caught with an overnight position especially having been wrong with my S&P call. As it turns out the DAX has not moved much. The DAX has strong support at 12150 which must hold or else we will see an acceleration to the downside. Today I will be a small buyer from 12090/12150 with a 12035 tight stop.
December FTSE
The FTSE traded the whole of my buy range for a now average long position at 7225. I am still long and I will now raise my stop on this position to 7180. I will also lower my T/P level to 7245 and if any of the above levels are hit I will be back with a new update for my Platinum Members.
Dow Rolling Contract
The Dow got hit hard yesterday closing at a price of 26807. This move lower saw the McClellan Oscillator finally close in negative territory with a -50 print, while the VIX exploded to the upside, closing 14.5% higher at 17.05. This could be significant as we are now above both the 50 Day and 200 Day Moving Averages which come in at 16.48 and 16.66 respectively this morning. Yesterday my Dow plan worked well as after I bought the market at 26820, the Dow traded lower to my second buy level at 26730 for a 26775 average long position before we turned around and rallied to my revised 26880 T/P level and I am now flat. The 50 Day MA for the Dow is at 26600 and today I will again look to buy the market on any dip lower to 26530/26680 with a 26450 tight stop. I still do not want to be short the Dow at this time.
December NASDAQ
My NASDAQ plan also did not work well as after the market traded lower to my 7780 buy level I was quickly stopped out of this position at 7725 and I am now flat. The NASDAQ did close below its 50 Day MA which comes in at 7790 this morning. Today I will be a small seller from 7790/7850 with a 7895 stop. I do not want to be long the NASDAQ at this time.
December BUND
The sell-off in equity markets saw the Bund trade higher to my 174.74 sell level. I am still short and I will now add to this trade on any further move higher to 175.20 with a tight 175.40 stop. I will now raise my T/P level on this position to 174.54 and if any of the above levels are hit I will be back with a new update for my Platinum Members.
Gold Rolling Contract
I am still flat Gold and today I will now raise my buy level to 1501/1511 with a 1494 stop.
Silver Rolling Contract
I am still flat Silver as the market just missed my 18.20 buy level with a 18.29 low print. Today I will raise my buy level to 17.95/18.35 with a higher 17.60 stop.
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