U.S. stocks rallied as President Donald Trump’s team began mapping out a phased country reopening amid dismal economic numbers. Futures that traded after the regular session pushed even higher, getting a boost from news that Boeing Co. will resume commercial airplane production in Washington. Gilead surged in late trading on a report that virus patients treated with its drug showed improvement. In a very volatile session, the S&P 500 climbed and the Nasdaq 100 wiped out its losses for 2020. Traders also assessed a fresh batch of corporate earnings, with Morgan Stanley posting a 24% jump in trading revenue, while casting doubt on whether those gains can continue. Treasuries and the US Dollar rose. Oil closed under $20 a barrel for a second day. Federal guidelines the Trump administration issued to states on Thursday recommend that they document a “downward trajectory” in cases of Coronavirus and flu-like illnesses before relaxing stay-at-home orders. States could then proceed into a three-phase reopening process, according to the guidelines, which Bloomberg News obtained. More than 5 million Americans filed for Unemployment benefits last week, bringing the total in the month since the outbreak throttled the U.S. economy to 22 million. New Home Construction declined in March from the previous month by the most since 1984. Asian stocks climbed with U.S. and European Futures amid tentative steps to restart the American economy and progress on the fight against the Coronavirus. Traders looked past Chinese data showing its economy contracted for the first time in decades. Shares saw strong gains across the region, while contracts on the S&P 500 jumped over 3%. Earlier, President Donald Trump outlined plans for the reopening and investors assessed a report that Gilead Sciences Inc. is seeing improvements in Coronavirus sufferers taking its drug. With investor focus on economic data this week, China’s Gross Domestic Product shrank 6.8% in the first quarter from a year ago, the worst performance since at least 1992 and below the consensus forecast of a 6% drop.
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For anyone following my Platinum Service it made 700 points yesterday and is now ahead by 3274 points for April, having made an incredible 9264 points in March, 2223 points in February, 2142 points in January, 818 points in December, 780 points in November, 1649 points in October, 1620 points in September and 2387 points in August 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 climbed 0.6%, closing at a price of 2800.
The Dow Jones Industrial Average closed flat at 23,537.
The NASDAQ 100 closed 2% higher at 8758.
The Stoxx Europe 600 Index rose 0.6%.
The MSCI Asia Pacific Index decreased 0.8%.
Currencies
Here is a summary of the main Changes in F.X. Markets:
The Bloomberg Dollar Spot Index climbed 0.4%.
The Euro dipped 0.7% to $1.0835.
The Japanese Yen weakened 0.3% to 107.80 per dollar.
Bonds
The yield on 10-year Treasuries dipped two basis points to 0.61%.
Germany’s 10-year yield decreased one basis point to -0.47%.
Britain’s 10-year yield was unchanged at 0.302%.
Commodities
The Bloomberg Commodity Index rose 0.1%.
West Texas Intermediate crude settled at $19.87 a barrel.
This morning on the Economic Front we have Euro-Zone Construction Output and CPI at 10.00 am. We have no other data of note as we wait to see the market’s reaction to Trump’s press conference overnight when Equity Cash Markets open at 2.30 pm.
June S&P 500
The Fed have bought everything apart from the US stock market and are now on their way to been the largest Hedge Fund in the world. It is so difficult to be short for any length of time as the Central Banks will do everything in their power to manipulate higher prices. The NASDAQ has led the way higher, and after yesterday’s volatile session has now erased all its losses for 2020. The 37- day crash of the US Indices could turn out to be the shortest crash in history. I have my doubts that the US economy will come roaring back anytime soon and I am still looking for the Phase 3 sell-off. As I have mentioned all week there is every chance we can trade as high as 2965 in the S&P which is the ‘’Gap’’ left from March 6.Yesterday the S&P was choppy trading back to the 2750 now key support before rallying to an overnight high at 2884. The 50-Day Moving Average is here at 2872 while the 200-Day MA is not far away at 3013. My best guess is that the S&P will run into strong resistance from 2930/3000. My S&P plan worked well with the market initially hitting my 2775 buy level before rallying to my 2793 T/P level with an initial rebound high at 2800. Subsequently we fell 50 Handles on the awful earnings and economic data before turning around in the last hour of trading. Overnight the S&P hit my 2875 sell level before selling off to my revised 2863 T/P level as emailed earlier to my Platinum Members and I am now flat. Yet again we have a massive ‘’Gap’’ from last night’s Chicago 2800 Cash Closing. Today I will be a small seller from 2890/2910 with a 2925 stop. I will still be an aggressive seller on any further rally to 2950/2980 with a 3010 higher stop. My only interest in buying the S&P is on a dip to 2785/2805 with a 2769 stop.
EUR/USD
The US Dollar was strong all-day yesterday. The Euro traded lower to my initial 1.0860 buy level before rallying to my revised 1.0890 T/P level and I am now flat. Today I will be a small seller from 1.0890/1.0940 with a tight 1.0975 stop. The Euro has support from 1.0710/1.0760 where I will be a buyer with a 1.0665 stop.
June Dollar Index
No Change as my only interest in buying the Dollar is on a dip lower to 99.00/99.50 with the same 98.45 stop.
June DAX
Late in yesterday’s session the DAX hit my 10220 buy level. This morning the DAX is trading 400 points higher. Another incredible move. As I wanted to be flat the DAX overnight I covered this position at my revised 10260 T/P level and I am now flat. The DAX has strong resistance from 10750/10880 where I will be a seller with a 10955 stop. I do not want to be long the DAX at this time.
June FTSE
This morning the FTSE has opened above yesterday’s sell range. As I had orders to sell both the Dow and S&P overnight I did not have any in the FTSE given the fact that the FUTURES Market does not re-open until 1.30 am after its 9.00 pm close. The FTSE has strong resistance from 5830/5920 where I will be a seller with a 6005 stop.
Dow Rolling Contract
Yet another trading session where the Dow has moved over 1000 points from yesterday’s intra-day low. After the Dow hit my 23320 buy level with a low of 23215 I covered this position at my revised 23445 T/P level. After the close it was announced that Boeing would start production in Seattle next month and the Dow soared hitting my 24400 sell level overnight. This morning I emailed my Platinum Members to exit this position at 24270 and I am now flat. The 50-Day Moving Average for the Dow comes in at 24659 this morning and this area should see strong resistance. I will be a seller from 24550/24800 with a wider 25005 stop. The Dow will have initial support at last night’s close and I will be a strong buyer from 23450/23700 with a 23295 stop.
June NASDAQ
My NASDAQ plan worked well with the market hitting my 8780 sell level before selling off 125 points. This move lower enabled me to cover this position at my 8720 T/P level and I am now flat. The NASDAQ has strong resistance from 8960/9100 where I will be a seller with a 9205 stop. I do not want to be long the NASDAQ at this time.
June BUND
After the Bund hit my 172.50 sell level I had too many positions. Subsequently I emailed my Platinum Members to exit any short position at 172.35 and I am now flat. Today I will be a small seller from 173.10/173.60 with a 174.05 stop.
Gold Rolling Contract
Gold got hit hard overnight after falling just shy of my 1752 sell level. Gold is trading at 1696 as I go to press and I will now lower my sell level to 1740/1755 with a 1765 stop.
Silver Rolling Contract
I am still flat Silver and today I will lower my sell level to 15.70/16.20 with a 16.65 stop.
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