Following a volatile trading session, U.S. Equity Markets, reversed earlier gains before closing lower, led by the 2% fall in the NASDAQ 100. This move lower saw the VIX surge over 11%. The U.S. Department of Labour reported that another 184,000 individuals filed Initial Jobless Claims in the week ending April 16. This figure was lower than the week prior’s upwardly revised number of 186,000 and Wall Street’s projection of 180,000. On a historic basis, the reading is near all-time lows, implying continued tightness in the domestic labour market, potentially offering a positive sign for spending on goods. It also may support the U.S. Federal Reserve’s aggressive interest-rate hike, as more spending adds to growing inflation. Within the S&P 500 Index, all of the 11 sectors finished lower. European Markets closed higher. European Central Bank Governing Council member Olli Rehn said it may need to revise its growth outlook lower at some point this spring. European Central Bank Governing Council member Joachim Nagel said inflation is unlikely to return to 2% this year, increasing the potential for an early third-quarter interest-rate hike. Russian President Vladimir Putin called off storming the Ukrainian city of Mariupol, declaring his troops had asserted control. The French National Statistics Office’s Business Confidence Survey for April was stronger than anticipated as companies’ sentiment regarding demand improved compared with March. In Asia, the People’s Bank of China Monetary Policy Director Sun Guofeng said the central bank will use targeted policy measures in a timely manner to support economic growth. China’s State Council approved the construction of six new nuclear power plans to boost the nation’s long-term energy supply and lower costs. The Bank of Japan noted it would continue purchasing an unlimited number of sovereign bonds at a fixed rate to put a lid on rising yields. South Korea’s preliminary export growth for April increased compared with March as the expansion rate in shipments to the U.S. rose. Elsewhere, Oil rose 1.6% after reports were released suggesting Russian oil output is already declining, while Gold declined 0.32% on broader market volatility.
To mark my 2525th 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 193 points yesterday, and is now ahead by 2032 points for April after closing March with a gain of 5883 points. The Platinum Service made an impressive 5324 points gain in February, after ending January with a gain of 3878 points, more than making up for December’s 932 points loss, 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, after ending March with an impressive gain of 3769 points. 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 1.48% lower at a price of 4393.
The Dow Jones Industrial Average closed 368 points lower for a 1.05% loss at a price of 34,792.
The NASDAQ 100 closed 2% lower at a price of 13,720.
The Stoxx Europe 600 Index closed 0.8% higher.
Yesterday, the MSCI Asia Pacific Index rose 0.8%.
Yesterday, the Nikkei closed 1.23% higher at a price of 27,553.
Currencies
The Bloomberg Dollar Spot Index closed 0.2% higher.
The Euro closed 0.1% lower at $1.0835.
The British Pound closed 0.3% lower at 1.3026.
The Japanese Yen fell 0.3%, closing at $128.35.
Bonds
Germany’s 10-year yield closed eight basis points higher at 0.94%.
Britain’s 10-year yield closed 10 basis points higher at 2.03%.
US 10 Year Treasury closed eight basis points higher 2.92%.
Commodities
West Texas Intermediate crude closed 0.5% lower at $102.51 a barrel.
Gold closed 0.26% higher at $1955.10 an ounce.
This morning on the Economic Front we have U.K. Retail Sales at 7.00 am followed by Euro-Zone Current Account and Manufacturing PMI at 10.00 am. Next, we have a speech from ECB President Lagarde at 2.00 pm. Finally, we have U.S Manufacturing PMI at 2.45 pm.
Cash S&P 500
To call yesterday’s price action ‘’Ugly’’ would be an understatement as the S&P having made an early afternoon high at 4512, subsequently got slammed closing nearly 120 Handles lower at a price of 4393. The move lower was straight-out systemic liquidation as one long position after another was slammed. The main issue was the rise in Bond Yields after comments from Fed Member Bullard while Powell said nothing of note which disappointed the bulls. The S&P rejected the 200-Day MA while the late sell-off in the Dow meant we closed below its 200 Day MA at 35020 and this level will now act as short-term resistance. This move lower has me long at an average rate of 4430. I will now lower my exit level for a small loss at 4420 as I want where possible to be flat over the weekend. If my Exit level is executed, I will again look to buy the S&P on any further dip lower to 4340/4360 with a 4318 stop. If I am taken long at this level I will have a T/P level at 4382.
EUR/USD
My Euro plan worked well with the market trading higher to my initial 1.0935 sell level before trading lower to my 1.0900 T/P level and I am now flat. The rise in Bond Yields saw the Euro sell-off further, trading at 1.0835 as I go to press. I will now raise my buy level to 1.0710/1.0770 with a higher 1.0635 stop.
March Dollar Index
No Change. I am still a seller on any further rally to 100.80/101.30 with the same 101.61 stop. I still do not want to be long the Dollar at this time.
Cash DAX
The DAX made a new recovery high at 14600 before falling the S&P lower, falling 300 points from this high into the New York close. Despite the late sell-off the price action in European Shares has been bullish over the past two weeks. Today, I will lower my buy level slightly to 13960/14140 with a tight 13885 stop.
Cash FTSE
Frustrating. The FTSE just missed my initial 7680 sell level with a 7657 high before falling a huge 120 points into the New York close. I will now lower my sell level to 7590/7650 with a lower 7705 stop. With Gilt Yields closing over 2% yesterday, I do not want to be long the FTSE at this time.
Dow Rolling Contract
The Dow also had an ugly session yesterday falling from an afternoon high at 35490, to close at a price of 34792. After the Dow hit my 35050 buy level we saw a quick 150 point rally as I was lucky as I was able to exit this long position at my revised 35143 T/P level as emailed earlier to my Platinum Members and I am still flat. The Dow has support from 34300/34500 where I will be a small buyer with a 34145 tight stop. We have resistance from 35050/35250 where I will be a strong seller with a tight 35405 stop.
Cash NASDAQ 100
I am certainly being tested with my 14327 long NDX position. Yesterday afternoon, the NDX rallied to 14290 before getting slammed for over 400 points. The NDX needs to rally today or else I am going to have to look a lower exit level on this position. I will continue with this long position and no stop for now.
June BUND
My Bund plan worked well with the market trading lower to my 153.90 before thankfully rallying to my revised 154.55 T/P level and I am now flat. The Bund also had an ugly close falling over 100 points from my T/P level. We have short-term support from 152.50/153.10 where I will be a strong buyer with a 151.75 stop. If I am taken long I will have a T/P level at 153.70.
Gold Rolling Contract
No Change. I am still a buyer on any dip lower to 1910/1925 with the same 1897 stop.
Silver Rolling Contract
Silver traded lower to my 24.60 buy level. I am still long with a now lower 25.00 T/P level. I will add to this position at 24.00 while leaving my 23.45 stop unchanged. If any of the above levels are hit I will be back with a new update for my Platinum Members.
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