My Platinum Service generated over 2400 points yesterday as U.S. Equity Markets finished Thursday higher after one of the most dramatic key day reversals in the history of the American Indexes. The Dow led the surge higher with a gain of 2.80%. Markets rebounded from early losses following the September core Consumer Price Index (“CPI”) figure that ran hotter than expected – up 0.6% month over month, compared with the consensus of 0.4%. This week’s inflation figures should provide little resistance to any thought of slowing rate hikes from the Federal Reserve. A fourth 75-basis-point rate hike this year at the Fed’s November meeting looks very likely. Earnings season also kicks off today with major banks reporting. Investors are looking for greater net-interest-margin expansion and higher net-interest-income due to the high-rate environment. Within the S&P 500 Index, all 11 sectors finished higher. European Markets closed positive. Markets finished higher, recovering early losses following the highest U.S. core CPI print since 1982. The European Central Bank staff model forecasted rates peaking at 2.25%, lower than the market-implied rate at just above 3%. The U.K. and BOE’s policy movement continues to be put under the microscope as they attempt to stabilise rising inflation amid a low-growth environment. Meanwhile, investors are anticipating a large November rate increase from the BOE. In Asia, the markets were choppy as investors waited for the U.S. CPI data. Investors were also wary of whether the Bank of England (“BOE”) would intervene in the gilt market. Japan’s Producer Price Index surprised to the upside, extending the streak of inflation growth to 19 months. A big reason for the jump comes from increased export costs as the Yen continues to lose strength. And Chinese onshore companies are set to post the first quarterly profit growth in over a year, following multiple COVID-19 lockdowns. Overnight, the Japanese Yen touched a 32-year low against the U.S. Dollar. Elsewhere, Oil rose 2.39% while surprisingly Gold fell 0.29% despite a weaker Dollar.
To mark my 2650th 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 2458 points yesterday and is now ahead by 5792 points for October, after finishing September with an incredible gain of 6660 points, 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 2.60% higher at a price of 3669.
The Dow Jones Industrial Average closed 827 points higher for a 2.83% gain at a price of 30,038.
The NASDAQ 100 closed 2.30% higher at a price of 11,033.
The Stoxx Europe 600 Index closed 0.91% higher.
This morning, the MSCI Asia Pacific Index rose 1.2%.
This morning, the Nikkei closed 3.46% higher at a price of 27,144.
Currencies
The Bloomberg Dollar Spot Index closed 0.6% lower.
The Euro closed 0.5% higher at $0.9772.
The British Pound closed 2.9% higher at 1.1334.
The Japanese Yen fell 1.1% closing at $147.40.
Bonds
Germany’s 10-year yield closed 7 basis points lower at 2.29%.
Britain’s 10-year yield closed 42 basis points lower at 4.19%.
US 10 Year Treasury closed 1 basis points lower at 3.92%.
Commodities
West Texas Intermediate crude closed 2.39% higher at $88.72 a barrel.
Gold closed 0.29% lower at $1666.10 an ounce.
This morning on the Economic Front we already had the release of German September Wholesale Price Index which rose 1.6% versus 0.1% expected. Next, we have the Euro-Zone Trade Balance at 10.00 am, followed by U.S Retail Sales and the Import/Export Price Index at 1.30 pm. Finally, at 3.00 pm we have the University of Michigan Consumer Sentiment Index.
Cash S&P 500
My S&P plan worked really well as following a higher-than-expected CPI, the S&P hit my two buy levels at 3550 and 3515 before rallying an incredible 210 Handles off its 3490 low print generating a huge 1300 points in the process. It was an epic day for the S&P as we saw capitulation followed by a rip higher from my 3493/3530 aggressive support area. This was no surprise as the markets went into the CPI data with the most oversold technical signals that I have ever seen in my 30 years of trading equity markets. Bank shares had a massive 8% reversal of their lows and already this morning we are seeing follow-thorough ahead of earnings this afternoon. The S&P has support from 3655/3675 where I will again be a buyer with a tight 3639 fixed stop. Yesterday’s most aggressive rally rooted in technical was also so intense that I would not be surprised if there was intervention going on. However, we will only find out about this after the fact. It was curious that this rally occurred one day after Treasury Secretary voiced her concerns about the price action in Global Markets. We are short-term overbought but I would not press the downside, preferring to see if the S&P trades back to today’s buy range.
EUR/USD
Shortly, before the CPI was released, I emailed my Platinum Members to exit Wednesday’s .9690 long position at .9745. Subsequently I said to buy the Euro again at .9660 which was filled ahead of exiting this latest long position at .9760 and I am now flat. Today, I will again be a buyer of the Euro on any dip lower to .9670/.9730 with a .9595 ‘’Closing Stop’’.
March Dollar Index
No Change. I am still short at 108.90 with a now higher 110.85 exit level. If this level is triggered, I will be back with a new update for my Platinum Members.
Cash DAX
The DAX traded lower to my 12030-buy level before rallying over 600 points. This is an enormous move, enabling me to cover my long position at my too tight 12190 T/P level and I am now flat. The DAX has short-term support from 12340/12440 where I will be a small buyer with a tight 11275 stop
Cash FTSE
What a session for the FTSE, selling off aggressively after Gilts soared before rallying after the Bond Market fell 50 basis points. This is an enormous move, helping the FTSE to hit my 6895 T/P level on my 6850 average long position and I am now flat. This volatility in Sterling has been insane with Cable now trading 1000 points higher from its epic low of 1.0335 made two weeks ago. The FTSE has support from 6800/6880 where I will again be a buyer with a 6745 ‘’Closing Stop’’.
Dow Rolling Contract
My Dow plan again worked well as the market traded the whole of yesterday’s buy range for a 28950 average long position before rallying over 1300 points from yesterday’s low to sit at 30250 as I go to press. This move higher saw my 29380 T/P level triggered and I am still flat. The Dow is now short-term overbought but ahead of the weekend I will not press the downside. We have support from 29500/29800 where I will be a buyer with a 29395 tight stop.
Cash NASDAQ 100
Post CPI, the NDX traded lower to my 10650 second buy level for a 10725 average long position. As I had so many open positions I covered this long position at my revised 10890 T/P level and I am still flat. If we do finally see a fall in Bond Yields then the NDX should outperform given it has fallen over 35% at yesterday’s low print this year. The NDX has support from 10800/10950 where I will again be a buyer with a 10695 ‘’Closing Stop’’.
December BUND
My Bund plan worked well with the market trading lower to my 135.32 buy level before rallying to my 136.40 T/P level and I am still flat. This morning, the Bund is trading higher much higher at 138.30. We have short-term support from 136.30/137.10 where I will be a small buyer with a 135.65 ‘’Closing Stop’’.
Gold Rolling Contract
Gold traded lower to my 1648 buy level before rallying tom my 1663 T/P level and I am still flat. Gold has support from 1640/1655 where I will be a small buyer with a higher 1629 ‘’Closing Stop’’.
Silver Rolling Contract
No Change. I am still long Silver at an average rate of 20.05 with the same no stop strategy. I will leave my T/P level unchanged at 20.60.
Recent Comments