U.S. Equity Markets advanced amid positive signs on trade talks and as investors awaited earnings from some of the world’s biggest companies. Treasuries fell. The S&P 500 Index climbed to a one-month high, surpassing the 3,000 level, led by energy and financial shares. Apple Inc. rallied to a record, while Teva Pharmaceutical Industries Ltd. surged after saying it has an agreement to settle thousands of opioid lawsuits. The Dow Jones Industrial Average underperformed major equity gauges as Boeing Co. tumbled on pessimism over the 737 Max crisis. The British Pound dropped after Prime Minister Boris Johnson was thwarted in his latest attempt to get a Brexit deal approved. Investors monitored the latest developments on trade talks between the two largest economies, with U.S. President Donald Trump saying China has indicated that negotiations over an initial deal are advancing. Earlier Monday, Commerce Secretary Wilbur Ross said it was more important to get details of the agreement right than it was for Trump to sign it at the expected meeting with Chinese President Xi Jinping next month in Chile. Meanwhile, Prime Minister Boris Johnson will seek to rush his crucial Brexit law through the U.K.’s House of Commons in just three days after he was thwarted in his latest attempt to get his divorce deal approved. Late yesterday, Commons Speaker John Bercow rejected the government’s bid to trigger a second parliamentary vote on the Brexit deal that the PM Johnson will now concentrate his efforts on fast-tracking the detailed law he needs to pass through Parliament — starting Tuesday, and completing its passage through the Commons by Thursday. It will then go to the House of Lords, Parliament’s upper chamber, in an attempt to deliver Brexit by his Oct. 31 deadline.
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 22 points yesterday and is now ahead by 1133 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
With industry heavyweights McDonald’s Corp., Caterpillar Inc. and Amazon.com Inc. all scheduled to deliver earnings this week, investors will get numerous chances to see how corporations are withstanding the effects of trade tension, slowing growth and Brexit. It looks like the needle is pointing mildly positive. As much as the trade issue is a headwind, I think companies are quite sensible in how they are spending their capital on healthy cash flow growth.
The S&P 500 climbed 0.7% to close at 3,006.
The Stoxx Europe 600 Index rose 0.6%.
The MSCI Asia Pacific Index increased 0.4%.
The MSCI Emerging Market Index added 0.5%.
Currencies
Here is a summary of the main Changes in F.X. Markets:
The Bloomberg Dollar Spot Index was little changed.
The Euro decreased 0.2% to $1.1148.
The British Pound declined 0.2% to $1.2962.
The Japanese Yen fell 0.2% to 108.64 per dollar.
Bonds
The yield on 10-year Treasuries jumped four basis points to 1.80%.
Germany’s 10-year yield increased four basis points to -0.34%.
Britain’s 10-year yield rose four basis points to 0.75%.
Commodities
The Bloomberg Commodity Index slid 0.5%.
West Texas Intermediate crude fell 0.9% to $53.31 a barrel.
Gold lost 0.4% to $1,488.10 an ounce.
This morning on the Economic Front we have the ECB Bank Lending Survey at 9.00 am and this is followed at 9.30 am by UK Public Sector Net Borrowing Requirement and the CBI Industrial Trends Survey at 11.00 am. Finally, at 3.00 pm we have the U.S Existing Homes Sales and the Richmond Fed Manufacturing Index.
December S&P 500
Although the Dow closed 57 points higher yesterday, the market’s senior Index was laggard due mainly to the price decline in the shares of Boeing, the S&P closed above 3000 for the first time since September 19. 76% of the approximate 500 stocks that comprise the Index closed higher. However volume was light at just 5.9 billion shares traded. Despite the negative divergence with the Dow it seems only a matter of time before the S&P trades to a new all-time high. The S&P just missed my initial 2984 buy level before spending most of the US session trading sideways to higher and I am still flat. Today I will raise my buy level to 2889/2999 with a 2879 tight stop. I still do not want to be short the S&P at this time.
EUR/USD
I am still flat the Euro and today I will lower my buy level to 1.1050/1.1090 with a lower 1.1015 stop. I will also lower my sell level to 1.1250/1.1320 with a 1.1370 stop.
December Dollar Index
No Change as I am still a buyer on any dip lower to 96.00/96.40 with a higher 95.55 stop. Given how oversold the Dollar is trading I no longer want to be short the market at this time.
December DAX
I am still flat the DAX with the market closing over 12700 despite the stronger Euro over recent days. The DAX has good support from 12570/12640 and I will be a buyer on any dip to this area with a 12515 stop. I no longer want to be short the DAX at this time.
December FTSE
Frustratingly the FTSE just missed my 7100 buy level before having a small rally into the close after Sterling fell. Today I will raise my buy level to 7075/7115 with a higher 7040 tight stop.
Dow Rolling Contract
If it were not for Boeing shares most US Indices would be close to record highs. Yesterday Financial Stocks were one of the strongest sectors, led by Bank of America which is already trading above its intra-day highs for the year. State Street also surged to a six- month high. Normally a strong banking sector leads to a rally in the Dow. The Dow just missed my 26700 buy level with a 26740 low print before rallying to close 100 points higher. Today I will raise my buy level to 26610/26760 with a higher 26595 stop. Despite the negative divergence with the S&P I still do not want to be short the Dow at this time.
December NASDAQ
I am still flat the NASDAQ and today I will now raise my buy level to 7855/7905 with a 7810 stop.
December BUND
After the BUND traded lower to my 170.80 buy level I emailed my Platinum Members to exit any long position for a small gain at 171.02 and I am still flat. The BUND is oversold and due a correction despite trading with a negative yield. Today I will again look to buy the market from 170.15/170.55 with a 169.70 wider stop.
Gold Rolling Contract
Gold needs to hold the September low of 1459 or else we could see a further acceleration to the downside. The market has made lower highs over the past few weeks which is bearish. Today I will lower my buy level to 1455/1468 with a tight 1447 stop.
Silver Rolling Contract
Silver popped to high of $17.91 yesterday but could not hold the rise. Spot prices have now closed within a tick of 17.58 for three straight sessions. As a result I will now lower my buy level to 16.80/17.20 with a lower 16.45 stop. If I am taken long I will have a T/P level at 17.42.
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