U.S. Equity Markets surged yesterday, led by the NASDAQ 100 which closed with a gain of 4.03% while the Dow closed flat. Stimulus news was another tailwind for markets. The House of Representatives received the stimulus package back from the Senate, and was reportedly ready to vote as soon as this afternoon. That would send the bill to President Biden’s desk before the end of the week. As part of the OECD’s report, it said that the stimulus bill will add 1% to global growth this year. Technology shares led the move higher, recovering from their steep drop on Monday. Bond yields also declined, easing some of the higher rate fears on the sector. Still a quiet day in terms of any economic data, while the Federal Reserve remains in its media blackout period ahead of its next meeting. European Markets closed higher. The Organisation for Economic Cooperation and Development (“OECD”) raised its global growth projection for 2021 to 5.6%, from 4.2%, in its interim economic outlook. Italy’s government was said to be readying another $11.9 billion in economic stimulus to support the job market. German Export data for January was stronger than expected, rising versus December, indicating global demand for goods continues to accelerate. European Union coronavirus vaccinations rose to 41.5 million through yesterday, with a daily average of 1.14 million doses administered over the last week. Elsewhere, Oil fell 1.84% while Gold closed 2.11% higher on Dollar weakness.
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For anyone following my Platinum Service it made 4 points yesterday and is now ahead by 1433 points for March, having closed February with an impressive gain of 3286 points, having made 2077 points in January, 2273 points in December, 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
The S&P 500 closed 1.42% higher at a price of 3875.
The Dow Jones Industrial Average closed 30 points higher for a 0.10% gain at a price of 31,832.
The NASDAQ 100 closed 4.03% higher at a price of 12,794.
The Stoxx Europe 600 Index closed 0.6% higher.
The MSCI Asia Pacific Index rose 0.1%.
This morning the Nikkei closed 0.03% higher at a price of 29,036.
Currencies
The Bloomberg Dollar Spot Index closed 0.3% lower.
The Euro closed 0.4% higher at $1.1895.
The British Pound closed 0.4% higher at $1.3855.
The Japanese Yen closed 0.1% higher at 108.69 per dollar.
Bonds
Germany’s 10-year yield closed two basis points lower at -0.31%.
Britain’s 10-year yield closed three basis points lower at 0.72%.
US 10 Year Treasury closed three basis points lower at 1.54%.
Commodities
West Texas Intermediate crude closed 1.84% lower at $62.71 a barrel.
Gold closed 2.11% higher at $1,714.60 an ounce.
This morning on the Economic Front we have no data of note from either the UK or the Euro-Zone. At 1.30 pm we have U.S CPI. Finally, we have the Monthly Budget Statement at 7.00 pm.
March S&P 500
My S&P plan worked well with the market trading the whole of my sell range for a 3879 average short position before trading to an overnight low at 3857. As I wanted to be flat overnight I exited this short position for a small loss at 3886. A combination of the FOMC Meeting next Wednesday and the Expiration of the March Contracts the following Friday, make it extremely difficult to be short the U.S Indices. The last six Quarterly Expirations have been on the high side before we finally saw some sort of correction after the Futures Contracts have expired. The S&P has support from 3838/3853 where I will be an aggressive buyer with a 3823 ‘’Closing Stop’’. The 50 -day MA comes in at 3827 and this should contain any sell-off ahead of next week. However a break and close below 3815 is bearish signalling a test of the next key support from 3675/3710. If I am taken long I will have a T/P level at 3859. The S&P has resistance at yesterday’s high and I will be a small seller from 3901/3918 with a 3931 ‘’Closing Stop’’.
EUR/USD
No Change. I am still flat and I will continue to be a buyer on any dip lower to 1.1805/1.1855 with the same 1.1745 stop.
June Dollar Index
Just as I posted the Dollar traded lower to my 92.15 T/P level on my latest 92.45 short position and I am now flat. The Dollar has resistance from 92.40/92.80 where I will again be a seller with a 93.15 stop.
March DAX
I am still flat as the DAX fell shy of my 14480 sell level. The DAX is severely overbought and due a correction. German COVID-19 cases remain stubbornly high as the lack of vaccine supplies continue to hinder the Euro-Zone. I will now raise my sell level to 14540/14610 with a higher 14675 stop. I still do not want to be long the DAX at this time.
March FTSE
My FTSE plan worked well with the market trading higher to my 6745 sell level before trading lower to my 6701 T/P level and I am still flat. The FTSE continues to trade heavy. We have resistance from 6740/6790 where I will again be a seller with a 6835 stop. The FTSE has support from 6560/6610 where I will be a small buyer with a 6525 stop.
Dow Rolling Contract
The Dow traded to a new all-time high at 32150 yesterday before falling 300 points into the close. The Dow will remain bullish as long as the key 31500 support area holds. The Dow has short-term support from 31570/31720 where I will be a buyer with a 31435 ‘’Closing Stop’’. The 50 Day MA comes in at 31045 this morning. If I am stopped out of my long position I will be an aggressive buyer from 30950/31100 with a 30785 ‘’Closing Stop’’. I still do not want to be short the Dow at this time.
March NASDAQ
The NASDAQ reversed Monday’s 3% fall, closing higher by 4.03%. The NASDAQ has resistance from 12930/13030 where I will be a seller with a wider ‘’Closing Stop’’ at 13155. Despite yesterday’s huge rally, my only interest in buying the NASDAQ is from 12380/13480 with a 12295 ‘’Closing Stop’’.
June BUND
Frustratingly, the Bund just missed my 170.60 buy level before rallying to sit at 171.20 this morning. I will now raise my buy level to 170.25/170.85 with a higher 169.85 stop.
Gold Rolling Contract
Gold rallied 2% yesterday as the market never came close to my buy level and I am still flat. I still do not trust this rally in Gold as everyone I know is long. Gold has short-term support from 1675/1688 and I will be a buyer in this area with a 1663 stop.
Silver Rolling Contract
I am still flat and I will now raise my buy level to 24.70/25.30 with a higher 24.35 tight stop.
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