Technology and consumer shares pushed U.S. Equity Markets higher as investors assessed the latest batch of earnings reports and efforts to reopen the American economy. Oil gained after a week of wild price swings. The S&P 500 gained 1.4% Friday, but still finished down 1.3% in a week that brought fresh evidence of deep damage to the American economy. In an optimistic sign, President Donald Trump signed a $484 billion spending package that includes more money for small businesses, the latest bid by lawmakers to rescue an economy devastated by the Coronavirus pandemic. The stability and resilience of the market in the face of what is still horrific economic data is probably a function of an assumption or hope that the compression in earnings and the economy, although deep, won’t be long lasting. Apple and Microsoft were the biggest percentage gainers in the tech sector of the benchmark Index. Earnings continued to roll in, with Intel Corp. joining the ranks that have withdrawn full-year guidance. West Texas Intermediate Crude Futures hovered around $17 a barrel in New York, after collapsing earlier this week. Treasury yields fell and the US Dollar strengthened on the week. In Europe, leaders signed off on a 540 billion-euro ($580 billion) plan tackling the immediate fallout from the pandemic, but failed to come up with a longer-term rebuilding programme. Stocks slumped and bonds rose. Data showed German business confidence fell to record low while virus cases in the region’s biggest economy rose by the most in nearly a week. A global stock rally built on optimism that infection rates were slowing faltered this week amid mounting evidence of a deep economic slowdown. With total job losses in the U.S. now exceeding 26 million, investors are focusing on effects of lockdowns and will study earnings for the effects of consumer-credit deterioration. In China, there was limited reaction to the central bank’s partial roll-over of maturing medium-term funding to banks, at a lower interest rate. Japanese bonds rallied after a Nikkei report that the Bank of Japan may replace its government bond-purchase target to allow for unlimited buying.
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For anyone following my Platinum Service it made 93 points on Friday and is now ahead by 4248 points for April, having made an incredible 9264 points in March, 2223 points in February, 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
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Equities
The S&P climbed 1.4%, closing at a price of 2836.
The Dow Jones Industrial Average rose 1.1% to close at 23,771.
The NASDAQ climbed 1.68% to close at 8786.
The Stoxx Europe 600 closed 0.8% higher.
Japan’s Nikkei closed 2.1% higher this morning.
MSCI Asia Pacific index rose 0.2%.
Currencies
Here is a summary of the main Changes in F.X. Markets;
The Bloomberg Spot Index rose 0.1% to close at 1262.
The Japanese Yen strengthened 0.2% to 107.40 per dollar.
The Euro increased 0.3% to $1.0809.
The British Pound climbed 0.2% to $1.2366.
Bonds
The yield on 10-year Treasuries decreased one basis point to 0.58%.
Germany’s 10-Yield fell four basis points to – 0.47%.
Britain’s 10-Year Yield closed unchanged at 0.29%.
Commodities
West Texas Intermediate crude expiring in June rose 3.6%.
Brent Crude climbed 2.2% to $22.04 a barrel.
Gold weakened 0.2% to $1,727 an ounce.
This morning on the Economic Front we have no Economic Data from either the UK or the Euro-Zone. The only U.S data of note is the Dallas Fed Manufacturing Business Index while will be released at 3.30 pm.
June S&P 500
After an unusually volatile week which included a plunge in the price of oil below zero, the S&P ended the week with a small loss. The rally on Friday saw the S&P close above its 50 Day Moving Average at 2807 while also building value above the key 2800/2820 resistance area. This area will now act as strong support as I look for the S&P to close both its March 4 and 6 ‘’Open Gaps’’ at 2935 and 2965 before we see both Intermediate and long-term trades come back in and short the market. This rally is built on the premise that we will see no new explosions of COVID-19 infections. History is against this theory as the world risks becoming too lenient too soon. I am still flat the S&P as the market rallied straight after I posted on Friday. I will be a strong buyer on any dip lower to 2805/2822 with a 2789 stop. The S&P has initial resistance at the 20-Month EMA which comes in at 2885. I will be a strong seller from 2880/2900 with a 2912 stop.
EUR/USD
Thankfully we had no sell level in the Euro on Friday with the market trading higher at 1.0850 this morning. The Euro has resistance from 1.0880/1.0920 where I will be a seller with a 1.0955 tight stop.
June Dollar Index
After the Dollar hit my 100.40 buy level, I emailed my Platinum Members to exit any long position at 100.48 as I did not want to have a position over the weekend. This morning the Dollar is opening weaker at 99.95. We have initial support from 99.00/99.50 where I will be an aggressive buyer with a 98.55 stop.
June DAX
The DAX continues to hold the key 10000/10200 support area. However, it is struggling to build value above here which is warning that this key support will again be tested, Today I will raise my buy level slightly to 10230/10350 with a 10145 stop. I still do not want to be short the DAX at this time.
June FTSE
My FTSE plan worked well as after the market hit my initial 5805 sell level we sold off to my revised 5770 T/P level and I am still flat. This morning the FTSE is back above 5800 but still looks tired. The FTSE has strong resistance from 5890’5970 where I will be a seller with a 6025 stop.
Dow Rolling Contract
The Dow continues to underperform both the S&P and NASDAQ. The Dow closed again below its 50 – Day Moving Average which comes in this morning at 23975. Overnight the Dow hit my sell range with a high of 24089. I went short at 23970. I will now raise my T/P level on this position to 23840. I will only add to this trade at 24200 with a now higher 24305 stop. If any of the above levels are hit I will be back with a new update for my Platinum Members.
June NASDAQ
Shortly after I posted on Friday the NASDAQ rallied to my 8570 T/P level on my latest 8520 long position and I ma still flat. The NASDAQ is bullish as it continues to build value above both its 50 and 200-Day Moving Averages. The NASDAQ has now regained 62% of its March loss, led by Facebook which closed the week with a 6% gain. The NASDAQ has strong support from 8700/8780 where I will be an aggressive buyer with a 8615 stop. I still do not want to be short the NASDAQ at this time as I look for an eventual move higher to 9050/9150.
June BUND
No Change as I am still a seller from 173.10/173.60 with the same 174.05 stop.
Gold Rolling Contract
I am still flat and today I will lower my buy level slightly to 1685/1696 with a lower 1676 stop.
Silver Rolling Contract
Silver just missed my 14.90 buy level before rallying into the New York close. Today I will leave my 14.50/14.90 buy level unchanged with the same 14.15 stop. If I am taken long I will have a T/P level at 15.20.
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