U.S. Equity Markets ended the week on a down note after flirting with all-time highs in the wake of mostly positive earnings reports. The US Dollar weakened to its lowest level since July. Boeing accounted for about two-thirds of the decline in the Dow Jones Industrial Average, while sagging technology stocks such as Microsoft weighed on the Nasdaq Composite. U.S. regulators said Boeing failed to turn over communications between its employees during the certification of the grounded 737 Max jet. Treasuries rose, while most Sovereign Bonds fell across Europe. Oil futures fluctuated. The lira gained after Turkey and the U.S. agreed Thursday to a temporary cease-fire plan for Syria. While Sterling was range bound it was still poised for a third week of gains. The U.K. accelerated its preparations to leave the European Union without an agreement on Oct. 31 as the bloc was reportedly poised to give Prime Minister Boris Johnson more time, if he needs it, to work out a deal. The government on Sunday activated “Operation Yellowhammer,” in which agencies and departments take action to offset the worst-case outcomes anticipated from an exit without a formal agreement. The deadline for leaving is the end of this month.
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 132 points on Friday and is now ahead by 1111 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
American earnings so far have been relatively upbeat, after Morgan Stanley on Thursday became the latest big bank to buck concerns about weak growth. Traders will also be mulling the data from China, which showed GDP slow to 6% in the third quarter, with limited pick-up from domestic demand, but factory output improve and retail sales hold up. Earlier in Asia, shares closed down in Shanghai after Chinese GDP rose by the least since the early 1990s last quarter. Benchmarks in Japan and South Korea gave up gains to finish lower.
The S&P 500 Index declined 0.4% to close at 2986.
The Dow Jones Industrial Average decreased 0.9% to close at 26,770.
The Stoxx Europe 600 declined 0.3% to 391.
Currencies
Here is a summary of the main changes in F.X. Markets:
The Bloomberg Dollar Spot Index fell 0.3%, its lowest level in over three months.
The Euro climbed 0.3% to $1.1162, the strongest in almost seven weeks on the biggest rise in almost four weeks.
The British Pound climbed 0.4% to close at $1.2944, the strongest in five months.
The Japanese Yen strengthened 0.2% to 108.42 per dollar, the largest gain in more than a week.
Bonds
The yield on 10-year Treasuries declined one basis point to 1.75%.
Germany’s 10-year yield advanced three basis points to -0.38%, the highest in more than eleven weeks.
Britain’s 10-year yield climbed three basis points to 0.703%.
Commodities
West Texas Intermediate crude declined 0.4% to $53.74 a barrel.
Gold weakened 0.1% to $1,490 an ounce.
This morning on the Economic Front we have German PPI at 7.00 am. This is followed at 11.00 am by release of the Bundesbank Monthly Report. We have no data of note due from America today while the Canadian Elections are being held this afternoon.
December S&P 500
My S&P plan worked well with the market trading lower to my initial 2986 buy level before rallying to my revised 2991 T/P level and I am now flat. Although the Dow fell on Boeing both the NASDAQ and S&P were relatively unchanged. Today I will again look to buy the S&P on any dip lower to 2972/2984 with a 2963 stop. I still do not want to be short the S&P at this time.
EUR/USD
I am still flat the Euro as the market again missed my buy level before rallying as expected. I will now raise my buy level to 1.1070/1.1110 with a 1.1035 stop. The Euro has strong resistance from 1.1280/1.1330 and I will be a seller on any rally to this area over the coming days with a 1.1375 stop.
December Dollar Index
I am still flat the Dollar which again missed my sell level before closing at three month lows. The Dollar has good support from 95.80/96.25 and I will be a buyer in this area with a 95.35 stop.
December DAX
Frustratingly the DAX just missed my 12820 sell level by a few points before falling 150 points into the close as the market was heavy due the stronger Euro. Today I will lower my DAX sell level to 12800/12870 with a 12925 stop. I still do not want to be long the DAX at this time.
December FTSE
Late on Friday the FTSE traded lower to my 7110 initial buy level. As I did not want to have a position over the weekend I emailed my Platinum Members to exit any long position at 7120 and I am still flat. Today I will again look to buy the market from 7060/7100 with a 7015 stop. I still do not want to be short the FTSE at this time.
Dow Rolling Contract
The beauty of my Platinum Service is my updated emails which in my opinion are vital. Shortly after the Dow traded lower to my initial 29900 buy level we had a small rally and I used this rally to exit this long position at my revised 29940 T/P level and I am now flat. Boeing shares were responsible for most of the Dow loss on Friday. However as long as the Dow does not build value below 29600 I will still be a buyer on dips. Today my buy level will be from 26550/26700 with a 26470 tight stop.
December NASDAQ
After the NASDAQ traded the whole of my buy range for a 7883 average long position I emailed my Platinum Members just before the close to exit any existing position at 7897 and I am still flat. Today I will again look to buy the market on any further dip lower to 7800/7860 with a 7755 stop.
December BUND
My Bund plan worked well with the market trading lower to my 171.30 buy level before rallying to my revised 171.48 T/P level and I am now flat. Today I will again look to buy the BUND from 170.30/170.80 with a 169.85 tight stop.
Gold Rolling Contract
No Change as I am still a buyer on any dip lower to 1467/1477 with the same 1459 stop.
Silver Rolling Contract
I am still flat Silver and today I will raise my buy level slightly to 16.95/17.35 with the same 16.55 stop. If I am taken long I will have a T/P level at 17.60.
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