U.S. Equity Markets rose to new intraday highs before pulling back, finishing the day lower with both the Dow and S&P closing with a loss of 0.22%. Markets rose in the early morning on news that the House of Representatives voted to increase the size of stimulus cheques to $2,000 (from $600). This sent markets to all-time intraday highs, before pulling back. In the afternoon, Senator Majority Leader Mitch McConnell did not pledge to hold a vote on bigger stimulus cheques. Instead, he said that the Senate would address the issue, as well as others brought up by President Donald Trump. McConnell did announce a vote on the new Defense Bill after the House passed it by a two-thirds majority to override Trump’s veto. In terms of economic data, Home Prices rose at the fastest pace in nearly seven years. This was another showing of strength from the housing market. European Markets gained led by the DAX which traded to a new all-time high. Germany’s BGA industry group said that exports could jump 13% next year, but warned that they won’t reach pre-pandemic levels until 2022. European Union member states officially approved the new Brexit Trade Agreement that was announced on Christmas Eve. EU Brexit negotiator Michel Barnier said the deal brings stability to the region, adding that it was a “relief” that an agreement was made before the December 31 deadline. A poll of economists showed expectations for the Euro-Zone to grow at its fastest rate since 1999 next year, boosted by the rollout of COVID-19 vaccines. This morning the UK announced that it has approved the Oxford- AstraZeneca vaccine and hopes to have most of the population vaccinated by the Spring, thus exiting the pandemic. Elsewhere, Oil closed 0.76% higher while Gold finished at +0.15% 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 303 points yesterday and is now ahead by 2273 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
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
The S&P 500 closed 0.22% lower at a price of 3727.
The Dow Jones Industrial Average closed 68 points lower for a 0.22% loss at a price of 30,335.
The NASDAQ 100 closed 0.04% higher at a price of 12843.
The Stoxx Europe 600 Index closed 0.6% higher.
The MSCI Asia Pacific Index rose 0.2%.
This morning the Nikkei closed 0.44% lower at a price of 27,444.
Currencies
The Bloomberg Dollar Spot Index closed 0.2% lower.
The Euro closed 0.6% higher at $1.2265.
The British Pound rose 0.1% to close at $1.3510.
The Japanese Yen closed 0.2% higher at 103.33 per dollar.
Bonds
Germany’s 10-year yield closed unchanged at -0.55%.
Britain’s 10-year yield closed seven basis points lower at 0.21%.
US 10 Year Treasury closed one basis point higher at 0.95%.
Commodities
West Texas Intermediate crude closed 0.76% higher at $47.49 a barrel.
Gold closed 0.15% higher at $1,874.20 an ounce.
This morning on the Economic Front we already had the release of UK Nationwide House Prices which rose 0.8% versus 0.4% expected. At 1.30 pm we have U.S Trade Balance and Wholesale Inventories, followed by the Chicago Fed Purchasing Managers’ Index at 2.45 pm. Finally, at 3.00 pm we have Pending Home Sales.
March S&P 500
The beauty of my Platinum Service is my updated emails which allows me to change price levels as the markets move. After the S&P traded higher last Monday to my 3720 sell level I emailed my Platinum Members to only add to this position at 3738 with a higher 3751 stop. Yesterday morning the March Contract made a new all-time high at 3747, which had me short at an average price of 3729 before the S&P sold off to my revised 3721 T/P level and I am now flat. I have been keeping a close eye on the VIX, especially since breaking below 20 at the end of November, has been unable to take out this key support out despite the U.S Indices making new all-time highs almost every day in the past month. Yesterday the VIX closed 6.36% higher at a price of 23.08. We are still in the bullish seasonal time of the year but valuations are at extreme levels, even higher than when the NASDAQ crashed 83% in 2000. This is a dangerous market. Today, I will be a small seller from 3750/3765 with a 3781 stop. I will now raise my buy level to 3672/3687 with a tight 3659 stop.
EUR/USD
Overnight the Euro finally traded higher to my initial 1.2290 sell level before selling off to my revised 1.2262 T/P level and I am now flat. The Euro has resistance from 1.2315/1.2355 where I will be a seller with a 1.2405 stop. I will now raise my buy level to 1.2130/1.2180 with a tight 1.2085 stop.
March Dollar Index
Yesterday the Dollar traded lower to my 89.80 buy level. I am still long and I will add to this trade at a price of 89.30 with the same 88.75 stop. I will now lower my T/P level to 90.05 and if any of the above levels are hit I will be back with a new update for my Platinum Members.
March DAX
The DAX has now risen over 800 points since its intra-day low last Monday week as thankfully we stayed flat over the Christmas Holiday and had no sell levels. With the DAX closed tomorrow and Friday for the New Year I will stay flat until my Daily Commentary resumes next Monday.
March FTSE
The FTSE has soared since Christmas Eve due to a combination of a Brexit Agreement and positive vaccine news. The FTSE only opens for a half-day tomorrow before normal trading hours resume next Monday. As a result I will also stay flat over the long-weekend.
Dow Rolling Contract
Yesterday’s latest new all-time high saw the Dow trade higher to my 30570 sell level before trading lower to my 30440 revised T/P level and I am still flat. This morning the Dow is opening higher on the Oxford-AstraZeneca approval. Internally the market continues to struggle as shown by the McClellan Oscillator which closed with a negative reading of 82 last night. This should not be happening with the three main US Indices trading near all-time highs. The Dow has resistance from 30780/30950 where I will be a small seller with a 31125 tight stop.
March NASDAQ
On Monday the NASDAQ traded higher to my 12815 sell level before selling off to my 12750 T/P level and I am still flat. The NASDAQ has further resistance from 12990/13060 where I will be a seller with a 13125 stop. If I am taken short I will have a T/P level at 12930.
March BUND
With the BUND again closed tomorrow and Friday I will stay flat the market until normal trading hours resume next Monday.
Gold Rolling Contract
I am still flat and today I will raise my buy level slightly to 1830/1845 with a higher 1819 stop.
Silver Rolling Contract
I am still flat and today I will raise my buy level to 25.10/25.70 with a higher 24.45 stop.
Recent Comments