After three consecutive positive trading sessions, U.S. Equity Markets closed lower yesterday, led by the NASDAQ 100 which fell 1.50%. This move lower saw the VIX rise almost 9%, closing at a price of 21.58. Jobless Claims were the big data release of the day. Weekly Claims fell to 184,000, marking the lowest level since March 1969. While this shows the labour market has strengthened significantly, it could force the Federal Reserve to pull back on stimulus. The change supports the Fed’s decision to pull back on stimulus efforts and possibly raise interest rates sooner than expected. Following, a strong three-day rally in equities like we’ve seen this week, some profit-taking is to be expected. Now, investors are focused on this afternoon’s Consumer Price Index (“CPI”) release, which will give an updated picture of inflation. This release could mean more pullback on support from the Fed in the eyes of Wall Street. Within the S&P 500, nine of the 11 sectors finished lower. German Export figures for the month of October were stronger than expected, expanding once more as regional trade surged. Regional economic growth concerns grew on rising COVID-19 infections after the U.K. and Sweden joined Austria, saying they would introduce restrictions to curb the spread. European Central Bank Executive Board member Isabel Schnabel said monetary policy is creating asset bubbles in financial markets, increasing the chances of a “costly downturn.” In Asia, China’s producer price index (“PPI”) data for November eased versus October, declining from a 26-year high, following Beijing’s recent efforts to control commodity costs. The Japanese Ministry of Finance’s fourth-quarter business condition index signaled large companies were increasingly optimistic about the economy and hiring. Bank of Korea Deputy Governor Park Jong-seok said policy remains accommodative, yet it’s monitoring the economic impact of the COVID-19 Omicron variant. Assistant Secretary of Defense Ely Ratner expressed concerns about China’s intentions for Taiwan, saying the U.S. needs to help it avoid economic intimidation. Elsewhere, Oil fell 2.40% on profit-taking after its recent bounce, while Bitcoin fell 8%, closing below $50,000.
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For anyone following my Platinum Service it lost 51 points yesterday, and is now down by 300 points for December, having made 2466 points in November, 1028 points in October, 2866 points in September, 1543 points in August, and 996 points in July. The Platinum Service made 1366 points in June, 1439 points in May, 1244 points in April, having ended March with an impressive gain of 3769 points, 3286 points in February, 2077 points in January, and 2273 points last December. 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 0.72% lower at a price of 4667.
The Dow Jones Industrial Average closed unchanged at a price of 35,754.
The NASDAQ 100 closed 1.49% lower at a price of 16,149.
The Stoxx Europe 600 Index closed 0.6% lower.
This morning, the MSCI Asia Pacific Index fell 0.5%.
This morning, the Nikkei closed 1.0% lower at a price of 28,437.
Currencies
The Bloomberg Dollar Spot Index closed 0.4% higher.
The Euro closed 0.4% lower at $1.1298.
The British Pound closed 0.1% higher at 1.3222.
The Japanese Yen rose 0.1%, closing at $113.58.
Bonds
Germany’s 10-year yield closed two basis points lower at -0.34%.
Britain’s 10-year yield closed one basis points higher at 0.77%.
US 10 Year Treasury closed two basis points higher at 1.52%.
Commodities
West Texas Intermediate crude closed 2.40% lower at $71.22 a barrel.
Gold closed 0.5% lower at $1,771.20 an ounce.
This morning on the Economic Front we already had the release of U.K. GDP which rose 0.1% versus +0.6% expected. ECB President Lagarde is due to speak at 9.05 am and this is followed by U.K. Consumer Inflation Expectations at 9.30 am. Next, at 1.30 pm we have the key U.S. Inflation data when CPI is released. Finally, we have the University of Michigan Consumer Sentiment at 3.00 pm.
December S&P 500
The S&P closed lower yesterday as we saw some small profit-taking which was no surprise given the 210 Handle rally since the 4498 low print last Friday. I am still flat as we wait for the CPI release at 1.30 pm. CPI is expected to print higher at 6.8%. The S&P has strong support from 4635/4650 and I will lower my buy level to this area while leaving my 4619 stop unchanged. The vertical rally this week saw the S&P close within 1% of its all-time high. Ahead of the weekend I will not lower my sell level, as I continue to be a seller from 4708/4733 with a 4751 Stop which is just above last month’s all-time high.
EUR/USD
The Euro traded lower to my 1.1322 revised T/P level on Wednesday’s 1.1347 short position and I am still flat. Ahead of today’s CPI, I will now lower my buy level to 1.1190/1.1240 with a lower 1.1945 stop. The Euro has resistance from 1.1380/1.1430 where I will be a small seller with a 1.1471 stop.
March Dollar Index
The Dollar rallied to my 96.25 sell level. I am still short with a now lower 96.81 stop. Meanwhile, I will raise my T/P level on this position to 95.90.
December DAX
The DAX saw some more profit taking yesterday, after this week’s run-up. This morning the DAX is opening lower at 15550 and I am still flat. I will now lower my buy level to 15370/15450 with a tight 15295 stop. If I am taken long I will have a T/P level at 15505.
December FTSE
The FTSE traded in a narrow range yesterday and I am still flat. I will not chase the market higher, leaving my 7185/7235 buy level unchanged with the same 7128 stop. If I am taken long I will have a T/P level at 7270.
Dow Rolling Contract
No Change. I am still short from Tuesday at a price of 35600 with the same 35480 T/P level. Meanwhile, I will leave my 35825 ‘’Closing Price Stop’’ unchanged. I will continue to be a buyer on any dip lower to 35210/35410 with the same 34995 wider stop. If I am taken long I will have a T/P level at 35540
December NASDAQ
I am still flat the NDX. The NDX had wide trading range yesterday, hitting a morning high of 165432 before falling 300 points which was no surprise given the 1100 points rise this week. The NASDAQ has strong support from 15920/16020 where I will be an aggressive buyer with a 15825 tight stop. If I am taken long I will have a T/P level at 16090.
March BUND
I am still flat the Bund as the market missed yesterday’s sell level by one point before falling 35 points into the close. Ahead of CPI, I will now raise my sell level to 174.60/175.10 with a higher 175.45 stop.
Gold Rolling Contract
The boring sideways price action in Gold continues. With a lot of traders trapped long $100 above current prices I will not chase Gold higher, leaving my 1739/1754 buy level unchanged with the same 1725 stop. If I am taken long I will have a T/P level at 1762.
Silver Rolling Contract
I was stopped out of my 22.75 long Silver position at a price of 21.99 yesterday and I am still flat. Despite getting stopped, I will continue to be a buyer of Silver on dips as this market in my opinion is severely undervalued. Silver has support from 20.80/21.40 where I will be a buyer with a 19.75 stop.
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