Technology shares led gains in U.S. stocks as investors assessed a raft of corporate earnings against the backdrop of a global economic slowdown. The Pound fell. The S&P 500 Index traded above the 3,000 level, approaching its all-time high. Microsoft Corp. jumped after earnings beat expectations, while a positive outlook from Lam Research Corp. spurred a surge in chipmakers. Tesla Inc. soared after posting a surprise profit. The Dow Jones Industrial Average underperformed as 3M Co.’s results showed the downturn continued to hobble the manufacturer. Twitter Inc. tumbled on a disappointing forecast. After the close of regular trading, Amazon.com Inc. sank as the company posted its first profit drop in more than two years. Intel Corp. rose on an upbeat forecast. Visa Inc. had to shell out more money to entice banks to issue their cards on its network. Elsewhere, U.K. Prime Minister Boris Johnson’s bid for a snap election on Dec. 12 was up in the air after his opponents said they want to rule out a no-deal Brexit first. The Pound held losses. The European Central Bank kept monetary stimulus unchanged in the final meeting of Mario Draghi’s presidency.
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For anyone following my Platinum Service it made 65 points yesterday and is now ahead by 1301 points for October, having made 1620 points in September, 2387 points in August, 1153 points in July, 1346 points in June,1722 points in May, 955 points in April and 1027 points in March. 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
With the earnings season, investors are getting numerous chances to see how corporations are withstanding the effects of trade tension, slowing growth and Brexit. Two key measures of U.S. business investment posted declines that were worse than analysts expected in September. Other data indicated consumers are still healthy enough to keep spending and driving growth. There is some nervousness that is good enough to avoid any signs within the broad market of irrational exuberance or animal spirits. Overall, the story is reflecting a watch-and-wait kind of scenario as investors and traders really absorb the news coming across on earnings.
The S&P 500 rose 0.2% to close at 3,010.
The Dow Jones Industrial Average declined 0.1%.
The Nasdaq Composite Index jumped 0.8%.
The Stoxx Europe 600 Index increased 0.6.
The MSCI Asia Pacific Index advanced 0.4%.
Currencies
Here is a summary of the main Changes in F.X. Markets:
The Bloomberg Dollar Spot Index rose 0.2%.
The Euro decreased 0.2% to $1.1103.
The British Pound dipped 0.5% to $1.2845.
The Japanese Yen was little changed at 108.64 per dollar.
Bonds
The yield on 10-year Treasuries slid less than one basis point to 1.76%.
Germany’s 10-year yield fell one basis point to -0.40%.
Britain’s 10-year yield declined six basis points to 0.625%.
Commodities
The Bloomberg Commodity Index increased 0.4%.
West Texas Intermediate crude rose to $56.23 a barrel.
Gold advanced 0.6% to $1,504.70 an ounce.
This morning on the Economic Front we have the German GFK Consumer Confidence at 7.00 am, followed by the IFO Survey at 9.00 am. Finally, at 3.00 pm we have the U.S. University of Michigan Consumer Sentiment.
December S&P 500
The S&P made an intra-day high of 3015 before spending the rest of the session trading sideways/lower. Amazon reporting weaker than expected earnings after the close has led to a small sell-off in the market as I go to press. The S&P has been grinding higher for three weeks while the Dow has been lagging and has not made a new high over the past seven trading days. I am watching this negative divergence closely as a sign for a break lower in the market. However, if all three Indexes exceed their October highs, this immediately bearish setup will no longer exist. Today I will lower my buy level slightly to 2982/2994 with a 2974 stop.
EUR/USD
No Change as I am still a small buyer on any dip lower to 1.1030/1.1070 with a lower 1.0995 stop.
December Dollar Index
The Dollar has had one of its quietest weeks of the year-to-date and I am still flat. I am still a buyer on any dip lower to 96.20/96.60 with the same 95.75 stop.
December DAX
A no change policy from Dragi’s last meeting as President of the ECB saw the DAX again trade higher despite the awful economic data being released over the past few months. With Interest Rates so low fund managers have no where else to put money to work. I am still flat the market and today I will raise my buy level to 12645/12705 with a higher 12595 stop.
December FTSE
There is no stopping the FTSE as the market again missed my buy level by rallying 100 points since Wednesday. The fall in the Pound certainly helped the market to rally and today I will raise my buy level to 7200/7245 with a 7160 stop.
Dow Rolling Contract
My Dow plan again worked well with the market trading lower to my 26700 buy level before rallying to my 26765 revised T/P level and I am now flat. Today my only interest in buying the Dow is on a further dip lower to 26470/26630 with a 26395 stop. Remember a break and close below 26600 for a few days is a signal that at least a temporary top is in the market.
December NASDAQ
Despite the NASDAQ trading the best of the U.S. Indexes yesterday I am reluctant to chase this market higher. Therefore, I will leave my 7820/7870 buy level unchanged with the same 7775 tight stop.
December BUND
The BUND just missed my 171.00 buy level before rallying on Dragi to close at 171.60. Today I will raise my buy level to 170.80/171.20 withy a higher 170.35 stop.
Gold Rolling Contract
I am still flat Gold which rallied to close above 1500. Gold is going nowhere trading up one day and down the next while at the same time holding the key 1459 September low. Today I will raise my buy level to 1472/1484 with a 1465 stop.
Silver Rolling Contract
Frustratingly Silver just missed my 17.40 buy level by a few points before rallying to close at 17.80 and I am still flat. I will now raise my buy level to 17.25/17.65 with a 16.80 stop. If I am taken long I will have a T/P level at 17.90.
As next Monday is a Bank Holiday in Ireland there will be no Daily Commentary Posted. For Platinum Members any trades that do not get hit today and are subsequently executed on Monday I will send an updated email where needed. My next full Daily Commentary will be posted on Tuesday October 29.
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