U.S Indices recovered from earlier losses to close flat on Friday in a low-volume trading session. Investors weighed stimulus headlines with economic data. Speaker of the House Nancy Pelosi (D-CA) said stimulus negotiations would not restart unless Republicans were willing to raise their proposal up to $2 trillion from the current $1 trillion. In terms of Economic data, Retail Sales rose in July, but fell short of estimates due to weak auto sales. It marked the third straight month of increases. Industrial Production for July also rose, matching expectations and signalling a continued rebound in the economy. Consumer Sentiment rose, but remained subdued as investors weigh the shape and speed of the economic recovery. The Dow ended the week with a gain of 0.12% while the NASDAQ closed lower by 0.21%. In contrast, European Indices got hit hard closing between 1 and 2% lower. Preliminary second-quarter Gross Domestic Product data for the Euro-Zone was in line with expectations, down 12.1%, indicating the worst of the downturn is behind the regional economy. The Euro-Zone economy shed nearly 5 million jobs in the first half of the year, indicating the rebound may be more drawn out than previously anticipated. Germany’s Economic Ministry said the economy is set to grow “strongly” in the third quarter, but added that a full recovery may take years. The U.K. also imposed Quarantine rules on travelers from France. This hit the FTSE, while fell over 2%. Elsewhere, Gold fell 1% after another volatile trading session while Oil closed flat.
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For anyone following my Platinum Service it made 70 points on Friday and is now ahead by 1607 points for August having ended July with a gain of 3128 points, 2580 points in June, 2456 points in May, 4773 points in April, an incredible 9264 points in March, 2223 points in February and 2142 points in January. 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
Earlier this week, Joe Biden announced Sen. Kamala Harris (D-CA) would be joining the ticket as the potential vice president of the United States. Among her qualifications, she brings key knowledge from her Senate experience that could help spur the domestic growth picture and improve the outlook for stocks. Biden’s choice of Sen. Kamala Harris as Vice President has appeal from a geographic and growth standpoint. Her role on the Senate Committee on the Budget could help a new administration quickly advance a growth-friendly budget. This would support a continued rally in the S&P 500 Index
The S&P 500 closed unchanged at a price of 3372.
The Dow Jones Industrial Average rose 35 points for a 0.12% gain to close at 27,931.
The NASDAQ fell 0.12%, closing at 11,164.
The Stoxx Europe 600 Index decreased 1.0%.
The MSCI Asia Pacific Index fell 0.2%.
This morning the Nikkei is closed 0.17% higher at 23,289.
Currencies
The Bloomberg Dollar Spot Index decreased 0.2%.
The Euro closed rose 0.3% to close at $1.1840.
The British Pound closed 0.2% at $1.3092.
The Japanese Yen closed 0.25% higher at 106.60 per dollar.
Bonds
The yield on 10-year Treasuries closed unchanged at 0.71%.
Germany’s 10-year yield closed unchanged at -0.40%.
Britain’s 10-year yield also closed unchanged at 0.24%.
Commodities
The Bloomberg Commodity Index rose 0.1%.
West Texas Intermediate closed unchanged at $41.79 a barrel.
Gold closed 1% lower at $1,948.10 an ounce.
This morning on the Economic Front we have no data of note from the UK or the Euro-Zone. At 1.30 pm we have U.S New York Empire State Manufacturing Index. Finally, at 3.00 pm we have the NAHB Housing Market Index.
September S&P 500
My S&P plan worked well with the market trading lower to my 3353 buy level with a 3350 low print before rallying over 25 Handles soon after the U.S Markets opened. Yet again, anyone buying the dip is rewarded with this move higher hitting my 3366 T/P level and I am now flat. After the S&P closed the Gap, we traded sideways for the rest of the session before a small sell-off in the Futures Market into the close. This morning the S&P is trading higher at 3370 and I will continue to be an aggressive seller from 3392/3408 with the same 3421 stop. As long as the S&P can hold the 3320 support level, I will continue to buy the dip. Today my buy level will be from 3338/3353 with a 3324 stop.
EUR/USD
The Euro traded in a narrow 60 point range on Friday and I am still flat. I will now raise my sell level slightly to 1.1905/1.1945 with a 1.1985 stop. I will also raise my buy level to 1.1760/1.1810 with a wider 1.1695 stop.
September Dollar Index
No Change as I am still a buyer from 9280/92.40 with the same 92.15 stop. If I am taken long I will have a T/P level at 93.15.
September DAX
The DAX got hit hard shortly after I posted on Friday as thankfully we had no buy level for the session and I am still flat. The DAX has strong support from 12700/12780 where I will be a buyer with a 12615 stop. I will now lower my sell level to 13050/13150 with a 13225 stop.
September FTSE
The FTSE got hit hard just as I posted on Friday. My buy plan did not work as soon after I went long at a 6095 average level, I was stopped out of this trade near the low of the day at 6035. This is frustrating with the FTSE trading high at 6075 this morning. Today I will be a buyer again from 5980/6025 with a 5935 stop. Given how oversold the FTSE is trading I no longer want to be short the market at this time.
Dow Rolling Contract
The Dow led the rebound in the Futures Markets after Friday’s initial sell-off. I am still flat and today I will continue to be a small seller from 28120/28320 with the same 28405 stop. I will now raise my buy level to 27500/27700 with a 27395 tight stop.
September NASDAQ
The NASDAQ traded sideways for most of Friday’s US session and I am still flat. We have strong resistance from 11270/11370 where I will be an aggressive seller with the same 11455 stop. I will now raise my buy level to 10880/10980 with a higher 10795 stop.
September BUND
Friday was one of the quietest trading sessions for Global Bonds in many months with little or no price movement as shown above with the T-Note, Bund and Gilt all closing unchanged on the day. The Bund has resistance from 176.25/176.75 where I will be a seller with a 177.15 stop.
Gold Rolling Contract
News that Warren Buffet had bought shares in Gold Mining Company Barrick Gold helped Gold to rally 1% on Friday. I am still flat and today I will raise my buy level to 1901/1916 with a higher 1899 stop.
Silver Rolling Contract
I am still flat Silver and today I will raise my buy level to 25.10/25.70 with a higher 24.65 stop. If I am taken long I will have a T/P level at 26.15.
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