U.S. Equity Markets surged yesterday, led by the incredible 7.49% gain in the NASDAQ 100. This across the board rally saw the VIX close lower by 10% at a price of 23.53. Markets ended the session higher after October headline and core Consumer Price Index (“CPI”) data from the U.S. Bureau of Labour Statistics came in lower than expected – with the lowest annualised figure since January. Investors are optimistic that easing inflation figures would preclude a pivot from the Federal Reserve. Additionally, Fedspeak leaned dovish as multiple nonvoting members asserted the need for slowing the pace of interest-rate hikes. The Dollar fell significantly because of the softer-than-expected CPI print and changes to the Fed’s policy outlook. And cryptocurrencies saw another day of volatile trading due to the fallout from the FTX exchange’s collapse. Within the S&P 500 Index, all 11 sectors finished higher. European Markets surged. Markets ended higher following another relatively quiet day of economic data news. Equities received momentum from the lower U.S. inflation print – which also spurred a rally for the Euro and Pound. The European Central Bank’s (“ECB”) bulletin stated that high inflation will continue for an extended period. The ECB’s Edward Scicluna said inflation may peak in Europe if peace between Russia and Ukraine is reached. And industry data showed hiring by U.K. firms has slowed, and that home purchases were cancelled at fastest rate since the great financial crisis. In Asia, Markets ended lower as economic sentiment and COVID-19 worries continue to fuel investor pessimism. China’s COVID-19 outbreak remains a focus, as the country reported nearly 9,000 new infections. Hopes of reopening are losing some traction as restrictions tighten in several regions. Reserve Bank of Australia Deputy Governor Michele Bullock said the central bank is nearing a point where it can consider pausing rate hikes – despite the National Australia Bank’s latest Business Confidence survey showing another jump in inflation expectations. Meanwhile, the Bank of Japan’s Haruhiko Kuroda said that it will centre any exit from loose monetary policy on the pace of interest-rate hikes and adjustments to the bank’s balance sheet. Elsewhere, Oil closed 0.44% higher while Gold rallied 2.64% higher on a much softer Dollar.
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For anyone following my Platinum Service it made 240 points yesterday and is now ahead by 2224 points for November, after finishing October with a record gain of 9619 points, making 6660 points in September, after closing August with a gain of 2228 points, having made 2660 points in July, following a gain of 3371 points in June. The Service made 3651 points in May, after making 762 points in April, following a gain of 5883 points in March. The Platinum Service made an impressive 5324 points in February, after ending January with a gain of 3878 points, more than making up for December’s 932 points loss. 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 5.54% higher at a price of 3956.
The Dow Jones Industrial Average closed 1201 points higher for a 3.70% gain at 1.95% loss at a price of 33,715.
The NASDAQ 100 closed 7.49%higher at a price of 11,605.
The Stoxx Europe 600 Index closed 2.75% higher.
Yesterday, the MSCI Asia Pacific Index rose 0.2%.
Yesterday, the Nikkei closed 0.98% lower at a price of 27,446.
Currencies
The Bloomberg Dollar Spot Index closed 2.9% lower.
The Euro closed 1.6% higher at $1.0010.
The British Pound closed 2.3% higher at 1.1701.
The Japanese Yen rose 3.8% closing at $141.60.
Bonds
Germany’s 10-year yield closed 16 basis points lower at 2.01%.
Britain’s 10-year yield closed 17 basis points lower at 3.28%.
U.S.10 Year Treasury closed 20 basis points lower at 3.84%.
Commodities
West Texas Intermediate crude closed 0.44% higher at $88.70 a barrel.
Gold closed 2.64% higher at $1752.10 an ounce.
This morning on the Economic Front we have U.K. GDP and German CPI at 7.00 am. Next, we have the latest Economic Forecasts from the EU Commission at 10.00 am. Finally, we have the University of Michigan Consumer Sentiment Index at 3.00 pm. Meanwhile ECB Members Panetta and De Guindos speak at 12.00 pm, followed by Lane at 4.00 pm.
Cash S&P 500
Finally, the favourable CPI Report that I have been calling for the last two months showed up yesterday. This move lower saw both Bond Yields and the Dollar get crushed, leading to a massive 207 Handle rally in the S&P. Fact is all those traders who shorted or panic bought ‘’Puts’’ ON THE CRYPTO disaster got run over and the bulls have the year-end seasonality horn if Yields and the Dollar continue to cooperate. I am pleased with the recent price action as we stuck to our guns of not been short any asset class over the past few months. Buying the dip across the board has worked a dream, earning us thousands of points this year. The S&P has resistance from 4030/4060 where I will be an aggressive seller with a 4089 ‘’Closing Stop’’. We have short-term support from 3850/3880 where I will be a strong buyer with a 3829 ‘’ Closing Stop’’.
EUR/USD
The Euro had its largest one day up move in many years, closing over 2.5% higher off its .9935 morning low at 1.02. Earlier the Euro hit my .9950 buy level before rallying to my too tight 1.0025 T/P level and I am now flat. The 200-Day Moving Average for the Euro comes in at a price of 1.0445. I will be an aggressive seller over the coming days on any further rally to 1.0380/1.0480 with a wider 1.0605 ‘’Closing Stop’’. The Euro has short-term support from 1.0050/1.0130 where I will be a strong buyer with a .9975 ‘’Closing Stop’’.
March Dollar Index
Yesterday was the largest daily fall in the Dollar Index in seven years as the Dollar closed 3% lower on the back of the benign inflation data. This move lower saw my 109.80 T/P level triggered on my latest 110.40 short position. This morning the Dollar is trading at 108.20 as I go to press. The Dollar is short-term oversold. We have support from 106.40/107.10 where I will again be a buyer with a 105.75 ‘’Closing Stop’’.
Cash DAX
Wow!! The DAX is trading 600 points higher from where I marked prices yesterday morning. I am still flat as thankfully we had no sell level in this market. Although the DAX is severely overbought, I do still do not want to be short the market at this time. The DAX has short-term support from 13780/13880 where I will be a small buyer with a 13695 ‘’Closing Stop’’.
Cash FTSE
The 3% rally in Sterling yesterday saw the FTSE struggle to match the gain for the DAX or American Indexes. I am still Flat. The FTSE has resistance from 7450/7520 where I will be a strong seller with a 7605 ‘’Closing Stop’’. I do not want to be long the FTSE at this time.
Dow Rolling Contract
The Dow missed my initial 32350 buy level by 150 points before rallying an incredible 1200 points and I am still flat. The Dow is now overbought having outperformed the other American Indexes over the past few weeks. I certainly do not want to buy the Dow at these levels. We have resistance from 33950/34200 where I will be a strong seller with a 34405 ‘’Closing Stop’’. The Dow has support from 32800/33050 where I will be an aggressive buyer with a 32595 ‘’Closing Stop’’.
Cash NASDAQ 100
The NDX recorded its best day in well over 2 years closing almost 7% higher. The 20 basis point fall in Treasury Yields certainly helped the NDX to outperform yesterday. This move higher saw my too tight 10995 T/P level triggered in Wednesday’s latest 10890 buy level and I am now flat. The NDX has support from 11200/11300 where I will again be a buyer with a 11095 ‘’Closing Stop’’.
December BUND
The Bund soared yesterday, never coming close to my buy range and I am still flat. The Bund has support from 138.00/138.90. I will move my buy level to this area with a higher 136.95 ‘’Closing Stop’’.
Gold Rolling Contract
I am still flat. Gold rallied $45 yesterday, trading above 1750 as I go to press. I will now raise my buy level to 1717/1732 with a 1699 wider ‘’Closing Stop’’.
Silver Rolling Contract
Frustrating, Silver just missed my 20.90 buy level by 5 points before rallying to sit at 21.50 as I go to press. I am surprised that Silver did not rally further given the huge move higher in Gold. I will now raise my buy level to 20.60/21.30 with the same no stop. If I am taken long I will have a T/P level at 22.15.
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