U.S. Equity Markets rose on strong jobs data, finishing the day higher for the fourth consecutive trading session, led by the NASDAQ 100 which closed higher by 1.18%. Jobless Claims declined for the third straight week and came in below estimates. That marked the fifth decline in the last six weeks. And the four-week moving average resumed its decline after a recent pickup. Earnings are another continued tailwind. Half of the S&P 500 has now reported, with the percentage of companies beating expectations remaining elevated, according to data from FactSet. On the stimulus front, Senate Majority Leader Chuck Schumer said Democrats were united in pursuing a “big and bold” COVID-19 aid bill. Schumer also announced that Democrats were planning to unveil a plan to cancel $50,000 in student debt per person. European Markets again closed higher. Britain’s University of Oxford said it would combine COVID-19 vaccines from Pfizer and AstraZeneca in a new trial, in an attempt to increase the available global supply. Euro-Zone Retail Sales data for December rose more than expected, highlighting a strong consumer through the holiday season. Spain’s government is reportedly considering debt relief for businesses as Coronavirus restrictions and a slower-than-expected vaccine rollout hurt the economy. Oil cartel OPEC said its members would work to quickly get rid of any excess oil inventory caused by the coronavirus pandemic. Elsewhere, Oil continued its recent surge, closing higher by 1.20% as OPEC said its members would work to quickly get rid of any excess oil inventory caused by the coronavirus pandemic. Meanwhile Gold fell 2.23%, closing below the key 1800/1810 support area on continued Dollar strength.
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For anyone following my Platinum Service it made 65 points yesterday and is now ahead by 425 points for February, having finished January with a gain of 2077 points, 2273 points in December, 2025 points in November, 2779 points in October, 3042 points in September, 2383 points in August, 3128 points in July, 2580 points in June, 2456 points in May, 4773 points in April, and an incredible 9264 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
The S&P 500 closed 1.09% higher at a price of 3871.
The Dow Jones Industrial Average closed 332 points higher for a 1.08% gain at a price of 31,055.
The NASDAQ 100 closed 1.18% higher at a price of 13,560.
The Stoxx Europe 600 Index closed 0.5% higher.
The MSCI Asia Pacific Index rose 0.3%.
This morning, the Nikkei closed 1.54% higher at a price of 28,779.
Currencies
The Bloomberg Dollar Spot Index closed 0.3% higher.
The Euro closed 0.4% lower at $1.1968.
The British Pound closed 0.2% higher at $1.3671.
The Japanese Yen closed 0.3% lower at 105.50 per dollar.
Bonds
Germany’s 10-year yield closed one basis points higher at -0.45%.
Britain’s 10-year yield closed seven basis points higher at 0.44%.
US 10 Year Treasury closed one basis points lower at 1.13%.
Commodities
West Texas Intermediate crude closed 1.20% higher at $56.01 a barrel.
Gold closed 2.23% lower at $1,793.20 an ounce.
This morning on the Economic Front we already had the release of German Factory Orders, which disappointed with a fall of 1.9% versus -1% expected. At 1.30 pm we have the U.S Non-Farm Payrolls where the expectation is a rise of 50K versus last Month’s 140K fall. At the same time we will wee the latest Unemployment Rate and Average Earnings. Finally we have U.S Consumer Credit at 8.00 pm.
March S&P 500
The S&P has rise an incredible 205 Handles since the 3659 low print on Sunday night as yet again, one short position after another gets slammed. I am still concerned by last week’s 60% surge in the VIX even though the VIX closed lower by 5% last night to sit below all the main Moving Averages with a 21.77 closing print. My own view that this massive squeeze is a ‘’Bull Trap’’ with massive divergences across the Indices. I believe we are looking at a similar setup to January/February 2018 leading to a significant move in volatility that will makes last week’s move seem like a picnic. The S&P rallied into the close and again overnight and I am now short in small size at 3869. I will add to this trade at 3885 with a 3895 ‘’Closing Stop’’. I will now move my T/P level higher to 3860 and if any of the above levels are hit I will be back with a new update for my Platinum Members.
EUR/USD
The Euro traded lower to my 1.1975 buy level. I am still long and I will add to this position on any further move lower to 1.1935 with a 1.1895 tight stop. I will now lower my T/P level on this position to 1.2005.
March Dollar Index
I am still flat and I will now raise my sell level to 91.75/92.25 with a 92.55 stop. I still do not want to be long the Dollar at this time.
March DAX
More awful economic data from Germany this morning with Factory Orders falling 1.9% to go with the weak Retail Sales earlier this week. I am still flat the DAX and ahead of the NFP data I will now raise my sell level to 14150/14230 with a higher 14305 stop.
March FTSE
The FTSE is really struggling to rally and this should be a worry for the Bulls as the FTSE has led the main Indices lower when markets start to correct over the past few years. After the FTSE traded lower to my 6430 buy level I covered this position at my 6450 revised T/P level and I am still flat. This morning, the FTSE is unchanged despite the aggressive move higher in both European and U.S Indices. We have support from 6340/6390 where I will again be a buyer with a 6295 stop.
Dow Rolling Contract
While both the S&P and NASDAQ are trading at new all-time highs the Dow is again lagging. As I am short both the S&P and NASDAQ I will not have a sell level in the Dow. The Dow has short-term support from 30740/30920 and I will raise my buy level to this area with a 30595 stop.
March NASDAQ
The NASDAQ has continued its recent rise. Overnight the market has traded the whole of yesterday’s sell range and I am now short at an average price of 13555. I will leave my 13705 stop unchanged while raising my T/P level on this position to 13520.
March BUND
The BUND hit my second buy level at 176.20 for a now 176.45 average long position. I will leave my 175.85 stop unchanged while lowering my T/P level to 176.62.
Gold Rolling Contract
Gold got hit hard yesterday trading the whole of my buy range for a now 1796 average long position. This morning we are seeing a small rally of the lows from yesterday and ahead of the NFP data I will now lower my T/P level to 1800.
Silver Rolling Contract
My Silver plan worked well with the market trading lower to my 26.10 buy level. We have bounced this morning and as I am still long Gold I have now exited this long position here at my 26.55 T/P level and I am now flat. Silver has support from 25.40/26.05 where I will again be a buyer with a tight 24.85 stop.
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