Markets were mildly risk-off on Monday as investors weighed strong economic data from China, U.S. President-elect Joe Biden’s stimulus plans and surging Coronavirus trends. Carrefour SA tumbled 6.9% after Canada’s Alimentation Couche-Tard Inc. abandoned talks on a $20 billion merger. The US Dollar gave up earlier gains, while S&P 500 futures were little changed. U.S. financial markets were closed Monday for the Martin Luther King holiday. In Asia, chip stocks and Huawei Technologies Co. suppliers dropped after Reuters reported that the U.S. is planning to revoke their licenses to work with the Chinese company. After a strong start to the year, global stock markets are losing steam as investor focus shifts to the upcoming earnings season and the difficult negotiations facing Biden’s $1.9 trillion Covid-19 relief plan. His proposals could be watered down under Congressional opposition, and there is still the possibility that some taxes could rise. One bright spot in the global economy remains China. The country’s economy roared back to pre-pandemic growth rates, with Gross Domestic Product climbing 6.5% in the fourth quarter from a year earlier. That leaves the world’s second-largest economy driving global growth and potentially passing U.S. GDP sooner than previously expected. On the coronavirus front, cases topped 95 million, while the U.S. death toll from Covid-19 neared 400,000. Norway expressed increasing concern about the safety of the Pfizer Inc. vaccine on elderly people with serious underlying health conditions after deaths in 29 people who received inoculations. Just as I go to press, President Trump has announced lifting the travel ban from Europe and Brazil from January 26, which is the same day that a negative test is required to enter the U.S. Risk assets are rising on this announcement.
To mark my 2225th 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 139 points yesterday and is now ahead by 1070 points for January, having finished December with a gain of 2273 points, 2025 points in November, 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, and an incredible 9264 points in March 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
Futures on the S&P 500 Index rose 0.2% as of 2:34 p.m. New York time.
The Stoxx Europe 600 Index added 0.2%
The MSCI Asia Pacific Index decreased 0.3%.
Yesterday the Nikkei closed 0.97% lower at 28,242
Currencies
The Bloomberg Dollar Spot Index was little-changed.
The Euro was steady at $1.2078.
The British Pound decreased 0.1% to $1.3586.
The Japanese Yen strengthened 0.2% to 103.68 per dollar.
Bonds
Germany’s 10-year yield fell one basis point to -0.53%.
Britain’s 10-year yield decreased one basis point to 0.285%.
Commodities
West Texas Intermediate crude dropped to $52.74 a barrel.
Gold strengthened 0.5% to $1,837.64 an ounce.
This morning on the Economic Front we have German CPI at 11.00 am and this is followed at 9.00 am by Euro-Zone Current Account and the ECB Bank Lending Survey. At 10.00 am we have the German ZEW Survey and Euro-Zone Construction Output. Finally, we have the Net Long-Term TIC Flows at 9.00 pm.
March S&P 500
The S&P traded in a narrow range before having a small rally into the Globex Close and I am still flat. The S&P has resistance from 3795/3810 where I will be a small seller with a 3822 stop. I will now raise my buy level to 3740/3755 with a 3739 stop.
EUR/USD
No Change. I am still long at 1.2085 with the same 1.2105 T/P level. I will continue to add to this position at 1.2035 while leaving my stop unchanged at 1.1995. If any of the above levels are hit, I will be back with a new update for my Platinum Members.
March Dollar Index
I am still flat and I will continue to be a buyer from 89.35/90.35 with the same 89.65 stop. If I am taken long I will have a T/P level at 90.65.
March DAX
After a weak start, the DAX rallied into the close and I am still flat. I will now raise my buy level to 12680/12750 with a higher 12595 stop. I still do not want to be short the DAX at this time.
March FTSE
The FTSE missed my 6630 buy level by 20 points before trading in a narrow range for most of yesterday’s session. I will now raise my buy level to 6610/6650 with a higher 6575 stop.
Dow Rolling Contract
No Change as I am still an aggressive buyer from 30420/30620 with the same 30250’’Closing Stop’’. Ahead of tomorrow’s inauguration I still do not want to be short the Dow at this time.
March NASDAQ
I am still flat and I will now raise my buy level to 12580/12670 with a 12495 higher stop. If I am taken long I will have a T/P level at 12735.
March BUND
After the Bund traded lower to my 177.30 initial buy level I emailed my Platinum Members that I wanted to be flat overnight and I covered this position at my revised 177.39 T/P level. Today I will be a buyer from 176.50/176.95 with a 175.95 stop.
Gold Rolling Contract
Shortly after I posted Gold rallied to my 1817 T/P level on my 1807 average long position and I am still flat. So far Gold is holding the key 1802/1818 support level. Today, I will be a buyer in this range with a wider 1789 stop.
Silver Rolling Contract
My latest 24.60 Silver long position worked well with the market rallying to my 24.90 T/P level and I am still flat. Today, I will again be a buyer from 24.10/24.70 with a 23.65 stop.
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