U.S. Equity Futures fell with Asian stocks and bond yields after Apple Inc. said quarterly sales would miss forecasts, illustrating the blow to corporate earnings and economic growth from the deadly coronavirus. Equity benchmarks in Tokyo, Seoul and Hong Kong saw declines of over 1%. Sydney and Shanghai saw more modest drops. Apple suppliers including TDK Corp. and Tokyo Electron Ltd. slumped after the iPhone maker warned on both production and sales disruptions due to the epidemic. Ten-year Treasury yields slumped as trading restarted following a U.S. holiday Monday. Australia’s Dollar dropped after the Central Bank said it had discussed cutting interest rates two weeks ago. Overnight trading saw renewed concerns about the coronavirus impact, even as the growth rate of cases in China’s Hubei province — the epicentre of the disease — continues to stabilize. It’s a turnaround from Monday, when sentiment was lifted by Chinese policy makers’ moves to support companies hit by the prolonged shutdown of large parts of the country. China’s stocks had recouped all of their losses following the Lunar New Year holiday. In a statement late Monday, Apple said that while work is starting to resume in China, “we are experiencing a slower return to normal conditions than we had anticipated.” Global iPhone supply will be “temporarily constrained,” the company said. The Australian Dollar weakened after the Reserve Bank of Australia said it reviewed the case for a further rate cut at its last meeting, but didn’t go ahead — to avoid extra borrowing as house prices rise. Elsewhere, Brent crude fell, and Sterling was under pressure amid concerns about the challenges in looming U.K.-European Union trade talks.
To mark my 2000th 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 35 points yesterday and is now ahead by 761 points for February, having made 2142 points in January, 818 points in December, 780 points in November, 1649 points in October, 1620 points in September and 2387 points in August. Since I started this New Platinum Service in June 2015 it has averaged a monthly gain of over 1600 points
I have a YouTube Channel which contains recent interviews I have given. This can be viewed by clicking HERE Please subscribe to this for new interview notification
Equities
Nasdaq 100 futures were down 0.6% compared with Friday’s close.
Futures on the S&P 500 Index were down 0.3%.
The Dow Jones Industrial average is down 210 points at 8.00 am London Time.
Topix index fell 1.3% at the close.
Shanghai Composite Index dropped 0.1%.
Hang Seng Index fell 1.3%.
Euro Stoxx 50 futures dropped 0.5%.
Currencies
Here is a summary of the main Changes in F.X. Rates:
The Japanese Yen edged up 0.1% to 109.75 per dollar.
The offshore Yuan fell 0.2% to 6.9998 per dollar.
The Pound was at $1.2995 after retreating 0.3% Monday.
The Euro was little changed at $1.0832.
The Aussie fell 0.4% to 66.89 U.S. cents.
Bonds
Ten-year Treasury yields fell about four basis points, to 1.55%.
Australia’s 10-year bond yield edged down two basis points, to 1.03%.
Commodities
Brent crude fell 1.1% to $57.05 a barrel.
Gold rose 0.3% to $1,586.23 an ounce.
This morning on the Economic Front we have UK Unemployment and Average Earnings at 9.30 am. This is followed at 10.00 am by the German and Euro-Zone ZEW Surveys. At 1.30 pm we have the New York Empire State Manufacturing Index, Finally, at 3.00 pm we have the NAHB Housing Market Index.
March S&P 500
After the Futures Market re-opened at 11.00 pm the S&P dropped to my 3372 buy level on the Apple warning. Subsequently I emailed my Platinum Members to exit any long position for a small gain at 3375.50 and I am now flat. Yet again we have a large Gap from Friday’s Chicago 3380 close and I would expect some of this ‘’Open Gap’’ to be filled when the U.S Markets open this afternoon. The S&P has initial support from 3346/3356 and I will be a buyer in this area with a 3338 stop. I will now lower my sell level to 3392/3407 with a lower 3416 stop.
EUR/USD
No Change as I am still long the Euro at 1.0860 with the same 1.0795 stop. I will leave my 1.0875 T/P level unchanged. The Euro has resistance from 1.0935/1.0985 and I will be a seller in this area with a 1.1025 stop. If I am taken short I will have a T/P level at 1.0905.
March Dollar Index
No Change as I am still a seller from 99.25/99.65 with the same 100.05 stop.
March DAX
The DAX just missed my 13845 sell level before opening 140 points lower on the Apple warning. Today I will lower my sell level to 13770/13840 with a lower 13885 stop. The DAX has initial support from 13500/13560 and I will be a buyer in this area with a 13445 tight stop.
March FTSE
This morning the FTSE is trading in my buy range and I have now bought the market in small size at 7325. With Sterling trading below 1.30 against the US Dollar I am happy to add to this position at 7280 with a 7245 stop. I will now lower my T/P level on this position to 7355 and if any of the above levels are hit I will be back with a new update for my Platinum Members.
Dow Rolling Contract
I am still flat the Dow and today I will lower my buy level slightly to 28990/29140 with a lower 28895 stop. I will also lower my sell level to 29580/29730 with a 29815 tight stop.
March NASDAQ
The NASDAQ is trading 130 points lower from where I marked prices 24 hours ago and I am still flat. The market has strong support from 9420/9480 and I will lower my buy range to this area with a lower 9370 stop. Given the huge move lower in the NASDAQ this morning I no longer want to be short the market at this time.
March BUND
The BUND has gaped higher this morning to yesterday’s sell range and I have now gone short in small size here at 174.88. I will look to add to this trade on any further move higher to 175.28 with a 175.65 stop. My T/P level on this short position will be 174.65.
Gold Rolling Contract
Gold continues to see safe-haven buying while Silver again underperforms. I am still flat Gold and today I will raise my buy level to 1556/1566 with a higher 1547 stop. I still do not want to be short the Gold market at this time.
Silver Rolling Contract
Despite the weak price action in Silver I will now raise my buy level to 17.32/17.72 with a higher 16.95 stop. If I am taken long I will have a T/P level at 17.97.
Recent Comments