U.S. Equity Markets were volatile yesterday as investors digest jobs data and Federal Reserve actions, ending the day lower, led by the NASDAQ 100 which closed with a loss of 1.07%. This move lower saw the VIX rise over 3%. The Federal Reserve and jobs data were the main focuses during yesterday’s session. After I posted yesterday morning, the Fed said it would sell the roughly $14 billion worth of corporate bonds and exchange-traded funds acquired during the market rout last year by the end of 2021. This removed some of the central bank support from the economy. But jobs data were positive. Jobless Claims hit a post-pandemic low for the fifth straight week. And ADP’s Employment Survey showed that private companies added nearly 1 million jobs last month. Both of these data points are strong signs for the economic recovery. Infrastructure was also in the news, with reports that President Joe Biden said he could back a $1 trillion infrastructure bill (versus the current $1.7 trillion proposal). But talks are still ongoing, and there is minimal progress. European Markets closed lower despite positive economic data. Markit Euro-Zone’s final composite Purchasing Managers’ Index (“PMI”) data for May rose versus the preliminary reading, as services sector momentum continued to build. European Central Bank President Christine Lagarde said it is committed to favorable financing and strong policy support will remain in place to ensure an economic. The International Monetary Fund boosted its Italian economic growth estimate, from 4.2% to 4.3%, as Rome plans to run a higher deficit in order to spur activity. In Asia, The White House was said to prepare plans for a new China blacklist, that would impose financial penalties on companies with ties to the defense and surveillance technology sectors. Markit Caixin’s composite PMI numbers for May weakened versus April, but remained in expansion territory, as new orders fell and input prices rose. Markit Japan’s final composite PMI data for May rose versus the preliminary reading, as services sector output and new orders weakened. Australia’s export figures for April were weaker than expected, as two of the country’s top exports – iron ore and gold – saw shipments abroad decline. Elsewhere, Oil closed flat while Gold fell 1.93% on renewed Dollar strength.
To mark my 2325th 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 220 points yesterday and is now ahead by 500 points for June having made 1439 points in May, 1244 points in April, having ended March with an impressive gain of 3769 points, 3286 points in February, 2077 points in January, 2273 points in December, 2025 points in November, 2779 points in October, 3042 points in September and 2383 points in August. 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 0.36% lower at a price of 4192.
The Dow Jones Industrial Average closed 23 points lower for a 0.07% loss at a price of 34,577.
The NASDAQ 100 closed 1.07% lower at a price of 13,529.
The Stoxx Europe 600 Index closed 0.4% lower.
Yesterday, the MSCI Asia Pacific Index rose 0.2%.
Yesterday, the Nikkei closed 0.39% higher at a price of 29,058.
Currencies
The Bloomberg Dollar Spot Index closed 0.8% higher.
The Euro closed 0.8% lower at $1.21.25.
The British Pound closed 0.5% lower at 1.4099.
The Japanese Yen fell 0.7%, closing at $110.30.
Bonds
Germany’s 10-year yield closed two basis points higher at -0.18%.
Britain’s 10-year yield closed four basis points higher at 0.84%.
US 10 Year Treasury closed three basis points higher at 1.62%.
Commodities
West Texas Intermediate crude closed 0.06% higher at $68.81 a barrel.
Gold closed 1.96% lower at $1,871.20 an ounce.
This morning on the Economic Front we have UK Markit Construction PMI at 9.30 am and Euro-Zone Retail Sales at 10.00 am. At 1.30 pm we have U.S Non-Farm Payrolls, Unemployment Rate and Average Earnings at 1.30 pm. Finally, we have Factory Orders at 3.00 pm.
June S&P 500
The S&P continues to build value below the 4221 Third Standard Deviation but so far is holding the key 4160/4175 support area. Yesterday my S&P plan worked well with the market trading the whole of my buy range for a 4175 average long position, before rallying to my 4188 revised T/P level and I am still flat. With NFP this afternoon I would expect increased volatility. I will be a buyer on any dip lower to 4154/4169 with a 4143 ‘’Closing Stop’’. I will now lower my sell level to 4212/4227 with a lower 4241 ‘’Closing Stop’’. If I am taken long I will have a T/P level at 4180. If I am taken short I will have a T/P level at 4202.
EUR/USD
The Euro traded the whole of my buy range for a now 1.2140 average long position. I will leave my stop unchanged at 1.2075 while lowering my T/P level to 1.2165. If any of the above levels are hit I will be back with a new update for my Platinum Members.
June Dollar Index
The Dollar rallied 0.9% yesterday and I am still flat. I will now raise my buy level to 89.60/90.10 with a higher 89.15 stop.
June DAX
The DAX refuses to trade lower as the market rallied a further 100 points yesterday, despite the sell-off in US Indexes and I am still flat. I will now raise my buy level to 15310/15380 with a higher 15245 stop.
June FTSE
My FTSE plan worked well with the market trading lower to my 7020 buy level before rallying to my revised 7050 T/P level and I am now flat. Today, I will again be a buyer from 6950/7005 with a wider 6895 stop. I still do not want to be short the FTSE at this time.
Dow Rolling Contract
After the Dow traded lower to my 34400 buy level I had to many positions. Unfortunately, I covered this long position too early at 34460 before the Dow rallied a further 200 points and I am still flat. The Dow continues to hole the key 34180/34350 support area. Today, I will again be a buyer in this area with a 34045 ‘’Closing Stop’’. Ahead of the weekend I do not want to be short the Dow at this time.
June NASDAQ
The NASDAQ was the weakest of the U.S Indexes yesterday, closing lower by over 1%. We are now trading back below the 50-Day Moving Average which is a further warning for renewed weakness. I will now lower my sell level to 13620/13700 with a lower 13805 ‘’Closing Stop’’. The NASDAQ has short-term support from 13310/13390 where I will be a small buyer with a 13245 ‘’Closing Stop’’.
June BUND
No Change. I am still a buyer from 169.10/169.60 with the same 168.65 stop.
Gold Rolling Contract
Gold fell almost 2% yesterday as thankfully we did not raise are buy level after the market broke 1900 and are still flat. I will now lower my buy level to 1840/1853 with a lower 1829 stop.
Silver Rolling Contract
Silver traded lower to my 27.40 buy level. I am still long and I will now lower my T/P level to 27.65.
Recent Comments