Equity Markets reversed early afternoon losses on hopes that a new Stimulus Bill will soon be published. Congress is increasingly worried about the increasing Coronavirus infections across the country. Trading was choppy yesterday before equities had a late rally. The vaccine news out of the U.K. sparked some optimism among investors, as it could indicate a similar approval from U.S. regulators soon. The U.S. job market continued to recover. ADP reported 307,000 jobs were added, lower than the expectation for 440,000. Additionally, the prior month’s number was revised from 365,000 to 404,000. While the economy added more jobs, the miss raised concerns that reinstated Coronavirus restrictions could force the recovery to stall. On the stimulus front, House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer said that yesterday’s bipartisan Stimulus proposal should be used as a baseline for future negotiations. European Indices also closed mixed. European Central Bank President Christine Lagarde said policymakers could take more action at their upcoming meeting to ensure the economic recovery continues. The European Banking Authority reinstated a freeze on debt repayments until the end of March, giving businesses relief as many countries reinstate Coronavirus-lockdown orders. European Union Chief Brexit Negotiator Michel Barnier said three key issues in Brexit talks still remain unresolved. Late in the day, British health officials approved Pfizer and BioNTech’s Coronavirus vaccine, adding that it would be available for use as soon as next week. Elsewhere, Oil rose 1.28% ahead of today’s OPEC meeting on productions, while Gold gained on Dollar weakness.
To mark my 2200th 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 10 points yesterday and is now ahead by 145 points for December, having finished November with a gain of 2025 points, 2779 points in October, 3042 points in September, 2383 points in August, 3128 points in July, 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
The S&P 500 closed 0.18% higher at a price of 3669.
The Dow Jones Industrial Average closed 60 points higher for a 0.20% gain at a price of 29,884.
The NASDAQ 100 closed FLAT at a price of 12,455.
The Stoxx Europe 600 Index closed 0.6% lower.
The MSCI Asia Pacific Index rose 0.3%.
Yesterday the Nikkei closed 0.05% higher at a price of 26,800.
Currencies
The Bloomberg Dollar Spot Index fell 0.3%.
The Euro closed 0.3% higher at $1.2098
The British pound fell 0.5% to close at $1.3360.
The Japanese yen fell 0.2% to 104.51 per dollar.
Bonds
Germany’s 10-year yield rose five basis points to -0.52%.
Britain’s 10-year yield closed unchanged at 0.35%.
US 10 Year Treasury closed two basis points higher at 0.95%.
Commodities
West Texas Intermediate crude increased 1.28% to $43.95 a barrel.
Gold closed 0.73% higher at $1,825.35 an ounce.
This morning on the Economic Front we have German, Euro-Zone and UK Markit Services PMI at 8.55 am, 9.00 am and 9.30 am respectively. This is followed at 10.00 am by Euro-Zone Retail Sales. At 1.30 pm we have the latest U.S Weekly Jobless Claims at 1.30 pm, followed by Markit Composite PMI at 2.45 pm. Finally, at 3.00 pm we have ISM Services PMI.
December S&P 500
The S&P fell shy of my 3628 buy level with a 3642 low print before rallying 25 Handles and I am still flat. Despite Optimism at extreme levels I will now raise my buy level to 3631/3647 with a higher 3619 stop. If I am taken long and subsequently stopped out of this position I will be an aggressive buyer on any further move lower to 3590/3610 with a wider 3573 ‘’Closing Stop’’. I will now raise my sell level to 3693/3710 with a 3721 stop.
EUR/USD
Unfortunately, the Euro missed my 1.2020 T/P level before stopping me out of my 1.2040 short position at 1.2105 and I am now flat. The Euro is severely overbought having made new all-time closing high for the year. The Euro has resistance from 1.2170/1.2210 where I will again be a seller with a 1.2245 stop. The Euro has strong support at its previous high of 1.2012. As a result, I will now be an aggressive buyer from 1.1990/1.2030 with a 1.1955 stop. If I am taken short I will have a T/P level at 1.2135. If I am taken long I will have a T/P level at 1.2085.
December Dollar Index
No Change as I am still long at a price of 91.35 with the same 90.85 ‘’Closing Stop’’. I will now lower my T/P level to 91.45 and if any of the above levels are hit I will be back with a new update for my Platinum Members.
December DAX
The surge in the Euro to multi-year highs weighed on the DAX yesterday and I am still flat. I will now lower my sell level to 13430/13500 with a lower 13565 stop. I still do not want to be long the DAX at this time.
December FTSE
The news that Pfizer will roll out its COVID 19 vaccine next week helped the FTSE to a positive outcome for yesterday’s session. The FTSE traded the whole of my sell range for a now 6400 average short position. I will leave my stop unchanged at 6475 while raising my T/P level to 6390.
Dow Rolling Contract
Unfortunately, the Dow missed my 29550 buy level by 55 points before rallying nearly 300 points and I am still flat. Today, I will raise my buy level to 29520/29720 with a higher 29285 stop. I still do not want to be short the Dow at this time.
December NASDAQ
My NASDAQ plan worked well with the market trading lower to my 12330 buy level before rallying to my 12405 T/P level and I am now flat. As I mentioned in yesterday’s commentary that as long as we do not break and close below Monday’s 12085 low print that I will continue to be a buyer on dips. Today, I will again be a buyer from 12300/12370 with a 12195 stop.
December BUND
No Change as I am still a small seller on any further rally to 174.95/175.35 with the same 175.71 stop.
Gold Rolling Contract
I am still flat and reluctant to chase the price of Gold higher. As a result, I will leave my 1765/1778 buy level unchanged with the same 1753 stop.
Silver Rolling Contract
Silver just missed my 23.50 buy level before having a small rally into the close. Just like Gold above I will not chase the market higher and I will leave my 22.90/23.50 buy level unchanged with the same 22.45 stop.
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