U.S. stocks touched four-week highs, led by health care and financial shares, as earnings season began in earnest. The Pound strengthened as the U.K. and European Union moved closer to a Brexit deal. The Nasdaq Composite Index jumped more than 1.2%, while the S&P 500 topped 3,000 on an intra-day basis for the first time in three weeks. Treasury Yields rose amid the risk-on backdrop. Things on the earnings front seem to have gotten off to a pretty decent start, Interest rates — although they’ve perked back up a little — are still extremely low, and this trade deal and positive Brexit talk are good for world growth. The Pound strengthened and UK Gilts fell after two EU officials said negotiators in Brussels are closing in on a draft Brexit deal that could lead to a breakthrough before the end of Tuesday. Crude oil fell for a second day and Gold dropped. Japan’s equity gauge jumped as trading resumed after a long weekend during which President Donald Trump announced progress on an interim trade accord with China. Markets elsewhere in Asia were mixed. The Stoxx Europe 600 Index rose, with all 19 sectors advancing.
To mark my 1925th 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 made 71 points yesterday and is now ahead by 866 points for October, having made 1620 points in September, 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
Investors are closely analysing earnings, given the global backdrop of slowing growth and a host of unpredictable macro risks. The International Monetary Fund made a fifth-straight cut to its 2019 global growth forecast, citing a broad deceleration across the world’s largest economies as trade tensions undermine the expansion. The earnings reports that will be particularly noteworthy are those from companies that are tied directly to the economic cycle,
The S&P 500 Index increased 1% to close at 2996.
The Dow Jones Industrial Average climbed 0.24% to 27,024.
The Stoxx Europe 600 gained 1.1% to 394, which is the highest in almost 17 months.
Currencies
Here is a summary of the main changes in F.X. Markets:
The Bloomberg Dollar Spot Index dipped 0.1%.
The Euro climbed 0.1% to $1.1033.
The British Pound rallied 1.4% to close at $1.2780 on hopes of an imminent announced of a Brexit Deal.
The Japanese Yen fell 0.4% to 108.66 per dollar, hitting the weakest level in more than 19 weeks with its fifth straight decline.
Bonds
The yield on 10-year Treasuries gained three basis points to 1.78%.
Germany’s 10-year yield increased five basis points to -0.42%.
Britain’s 10-year yield advanced 6 basis points to 0.694%..
Commodities
West Texas Intermediate crude declined 1.2% to $52.93 a barrel.
Gold depreciated 0.8% to $1,481.11 an ounce, the weakest in almost two weeks on the largest fall in two weeks.
This morning on the Economic Front we have UK CPI, PPI and the Retail Price Index at 9.30 am. This is followed at 10.00 am by Euro-Zone CPI and Trade Balance. Next we have US MBA Mortgage Applications at 1.00 pm and Retail Sales at 1.30 pm, Finally, we have the Fed’s Beige Book at 7.00 pm and Total Net TIC Flows at 9.00 pm.
December S&P 500
Thankfully we had no sell level in the S&P yesterday with the market rallying 30 Handles to close at 2996. This move higher was led by the VIX which fell a further 7% to close at 13.54. Trading can be a game of small margins as we saw on Monday when the S&P missed my 2953 buy level with a 2953.75 low print before having this huge run higher over the past 48 hours. Today I will move my buy level higher to 2958/2972 with a 2949 stop. My only interest in selling the S&P is from 3017/3030 with a 3038 tight stop.
EUR/USD
Unfortunately the Euro just missed my 1.0980 buy level with a 1.0990 low print before the market followed Cable higher. Today I will move my buy level higher to 1.0955/1.0995 with a 1.0920 stop. I no longer want to be short the Euro at this time.
December Dollar Index
I am still flat the Dollar and today I will leave my 98.45/98.85 sell level unchanged with the same 99.45 stop.
December DAX
Wow the DAX has now rallied 8% over the past 10 days as yet again anyone trying to short equity markets are getting slammed. With the Euro-Stoxx closing at 17 month highs the Central Banks will be delighted to see these near record closes given the fact that it is happening in what is traditionally the weakest month of the year for equity markets. The DAX has resistance from 12800/12880 and I will be a small seller on any further rally to this area with a 12940 stop.
December FTSE
The stronger Pound again saw the FTSE underperform with the market missing my 7135 buy level before rallying into the close. I am reluctant to chase this market higher and I will leave my 7085/7135 buy level unchanged with the same 7050 stop.
Dow Rolling Contract
The Dow traded the whole of my sell range for a 27040 average short position. Overnight the Dow sold off to my 27000 revised T/P level as emailed yesterday to my Platinum Members and I am now flat. Today I will again be a seller on any further rally to 27180/27320 with a 27395 tight stop.
December NASDAQ
As I was already short the Dow I waited to sell the NASDAQ which I did at a price of 7945. I am still short with a now higher 7915 T/P level. I will add to this position at 8020 with a 8055 stop. Again if any of the above levels are executed I will be back with a new update for my Platinum Members.
December BUND
After the Bund traded lower to my 171.80 buy level the market rallied to my 172.11 revised T/P level and I am now flat. Subsequently the BUND sold off further into the close. The Bund has support from 170.70/171.10 and I will be a strong buyer in this area with a 170.35 stop.
Gold Rolling Contract
No Change as I am still a buyer on any dip lower to 1455/1465 with the same 1447 stop.
Silver Rolling Contract
Silver traded lower to my 17.40 buy level. I am still long with a now lower 17.55 T/P level. I will add to this position at 16.90 with the same 16.65 stop. If any of the above levels are hit I will be back with a new update for my Platinum Members.
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