U.S. Equity Markets continued their relentless push higher even as the economic impact from the deadly coronavirus remains murky. Treasuries were mixed and Gold advanced. The S&P 500 Index’s four-day rally hit 3.7% as major equity benchmarks added to all-time highs on the strength of solid corporate results and signs that central banks stand ready to act if growth falters. The torrid ascent has some firms warning about a sense of euphoria taking over among investors, especially as the coronavirus epidemic continues to spread and China’s economy remains virtually locked down. Treasuries edged higher and Gold climbed in a sign of some demand for haven assets. In corporate news, Boeing spiked 3.6% after saying it fixed a software bug in its grounded plane. Twitter Inc. rallied 15% after topping projections for Fourth-Quarter revenue. Strong results helped powered the Stoxx Europe 600 Index to a record. Crude oil edged above $51 a barrel in New York.
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For anyone following my Platinum Service it made 15 yesterday and is now ahead by 197 points for February, having made 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 Index rose 0.3%, close at a new all-time high at 3347.
The Dow Jones Industrial Average closed at a new record high, at 29380.
The NASDAQ surged 0.9% to close at 9447.
The Stoxx Europe 600 Index increased 0.4%.
The MSCI Asia Pacific Index increased 1.8%.
The MSCI Emerging Market Index gained 1.3%.
Currencies
Here is a summary of the main Changes in F.X. Markets:
The Bloomberg Dollar Spot Index rose 0.2%.
The Euro fell 0.2% to $1.098.
The onshore Yuan was little changed at 6.9708 per dollar.
The Japanese Yen fell 0.1% to 109.98 per dollar.
Bonds
The yield on 10-year Treasuries fell one basis point to 1.65%.
Germany’s 10-year yield fell one basis point to -0.37%.
Japan’s 10-year yield rose two basis points to -0.024%.
Commodities
West Texas Intermediate crude rose 0.5% to $51.01 a barrel.
Gold Futures rose 0.5% to $1,570 an ounce.
This morning on the Economic Front we already had the release of German Industrial Production which fell 3.5% versus -0.2% expected. At 9.30 am we have the UK Halifax House Price Index. This is followed at 1.30 pm by the U.S Non- Farm Payrolls including the Employment Rate and Average Earnings. The consensus is for a rise of 160K versus last month’s 145K rise. Finally, at 3.00 pm we have Wholesale Inventories.
March S&P 500
Yesterday was the first trading session in over a week when the ‘’opening Gap’’ was filled after the markets opened in Chicago. Subsequently the S&P renewed its move higher to close at a new record high. This move higher is now parabolic. These Parabolic rallies are buying blow-off panics that typically do not end well. Interestingly that despite the three U.S Indices closing at new record highs, the McClellan Oscillator only closed barely in positive territory with a +5 print. The VIX is still high closing 1% lower last night at 14.96 as markets wait for the key NFP release at 1.30 pm. Ahead of NFP I will now raise my sell level slightly to 3363/3375 with a 3386 stop. If I am taken short and subsequently stopped out of this position I will be a more aggressive seller from 3394/3414 with a 3428 stop. I will also raise my buy level to 3305/3320 with a 3295 stop.
EUR/USD
I am still long the Euro at 1.1000. I will only add to this position at a price of 1.0940 with a now lower 1.0915 stop. Meanwhile I will leave my 1.1025 T/P level unchanged and if any of the above levels are hit I will be back with a new update for my Platinum Members.
March Dollar Index
I am still flat the Dollar and ahead of the NFP I will now raise my sell level to 98.75/99.15 with a higher 99.45 stop.
March DAX
I am shocked by the constant weak data being released by Germany. This morning’s 3.5% fall in Industrial Production confirms yesterday’s 2.1% fall in Factory Orders and last week’s 3% fall in Retail Sales. I know you have to respect a market that will not fall on weak data but these statistics are a shocker not only for Germany but for the whole Euro-Zone. I am still flat the DAX and today I will lower my sell level to 13660/13740 with a 13795 stop. I still do not want to be long the DAX at this time.
March FTSE
No Change as I am still a buyer on any dip lower to 7340/7380 with the same 7295 stop.
Dow Rolling Contract
The Dow closed at a new all-time high last night. The Industrials are just over 600 points below the 30,000 level. This level will act as a magnet for prices, so the odds of reaching that level are very high. I am still flat the Dow and today I will leave my 29650/29800 sell level unchanged with the same 29905 stop. I am not going to chase the market higher and I will leave my 28970/29120 buy level unchanged with the same 28845 stop.
March NASDAQ
The NASDAQ is also closing in on a significant round number, 10.000. That could be a magnet for Techs and could be reached over the coming weeks. I am still flat the market and today I will leave my 9260/9320 buy level unchanged with the same 9205 stop. If I am taken long I will have a T/P level at 9365.
March BUND
No wonder the Bund has rallied almost 500 points since Christmas as there is no chance of a rise in ECB Rates over the coming 18 months given the awful economic date being released. I am still flat the Bund and today I will raise my buy level to 173.25/173.65 with a 172.80 stop.
Gold Rolling Contract
The boring sideways action in Gold continues. I am surprised that Gold has not fallen given the recent strength in the US Dollar. I am still flat and today I will raise my buy level slightly to 1535/1545 with a higher 1527 stop.
Silver Rolling Contract
Just as I posted yesterday morning Silver rallied to my 15.70 T/P level on my latest 15.55 long position and I am now flat. Today my buy level will be from 17.25/17.65 with a 16.85 stop.
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