U.S Equity Markets closed mixed after bouncing around for most of Friday’s session. The Dow closed 0.24% lower while the NASDAQ 100 finished Friday with a gain of 0.11%, to have it’s best week since April at +7%. COVID-19 trends still weighed on investor sentiment. New Jersey Governor Phil Murphy indicated the State is close to introducing more restrictive measures to try and combat the COVID-19 spread. But economic data were positive. Non-Farm Payroll data for October was much stronger than expected. And the Unemployment rate fell below 7%, also beating expectations. These are two indications that the U.S. economy continues to recover. On the Stimulus front, Senate Majority Leader Mitch McConnell said that a Coronavirus Support Bill will be a top priority when Congress returns from recess. European Indices closed lower after four consecutive days of gains. French Health Minister Olivier Véran warned the country must respect the current lockdown measures or prepare for a stronger, longer second wave. German Industrial Production data for September was weaker than expected, pointing to a slowing economic recovery. Italy’s statistics bureau said that the country’s economic indicators have returned to pre-COVID levels, while warning the outlook remains uncertain. Paris announced new lockdown measures, while Italy began enforcing previously announced restrictions. Elsewhere, the Dollar weakened further, while Oil closed 3.51% lower on oversupply fears due to reports that Iraq has boosted production above the OPEC quota. This morning U.S Equity Futures are surging, led again by the NASDAQ which is trading higher by 2%.
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For anyone following my Platinum Service it made 140 points on Friday and is now ahead by 987 points for November having made 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, an incredible 9264 points in March, 2223 points in February and 2142 points in January. 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 0.03% lower at a price of 3509.
The Dow Jones Industrial Average closed 68 points lower for a 0.24% loss at a price of 28,323.
The NASDAQ 100 closed 0.11% higher at a price of 12,091.
The Stoxx Europe 600 Index closed 0.7% lower.
The MSCI Asia Pacific Index rose 0.4%.
On Friday, the Nikkei closed 0.91% higher at a price of 24,325.
Currencies
The Bloomberg Dollar Spot Index closed 0.4% lower.
The Euro closed 0.3% higher at $1.1872.
The British Pound closed unchanged at $1.3145.
The Japanese Yen closed 0.2% higher at 103.31 per dollar.
Bonds
The yield on 10-year Treasuries closed five basis points higher at 0.82%.
Germany’s 10-year yield closed two basis points higher at -0.62%.
Britain’s 10-year yield closed six basis points higher at 0.29%.
Commodities
The Bloomberg Commodity Index closed 0.4% lower.
West Texas Intermediate closed 3.51% lower at $37.16 a barrel.
Gold closed 0.21% higher at $1947 an ounce.
This morning on the Economic Front we have the German Trade Balance at 7.00 am and this is followed at 10.00 am by Euro-Zone Sentix Investor Confidence. We have no data of note due from the U.S this afternoon.
December S&P 500
My S&P plan worked well with the market trading lower mid-morning, to my 3461 buy level before rallying to my 3475 T/P. Overnight the Futures have gapped higher to my sell range from Friday and I am now short in small size at a price of 3545. I will add to this trade at 3570 with a higher 3581 stop. I will now raise my T/P level on this position to 3531. The S&P is trading at 3550 as I go to press, a huge 330 Handles higher than where we opened last Sunday night. So much good news is now priced into the market. We have short-term support from 3480/3495 where I will be an aggressive buyer with a 3469 stop. If I am taken long I will have a T/P level at 3507.
EUR/USD
I am still flat the Euro and today I will again raise my buy level to 1.1785/1.1835 with a higher 1.1745 stop. I still do not want to be short the Euro at this time.
December Dollar Index
No Change as I am still a buyer from 91.40/91.90 with the same 91.15 stop.
December DAX
The DAX closed lower on Friday after four consecutive higher closes. I am still flat as my sell range on Friday was never hit. I will now raise my sell level slightly to 12810/12910 with a 13005 stop. Given how overbought the DAX is trading I still do not want to be long the DAX sat this time.
December FTSE
I am still flat the FTSE and today I will raise my sell level to 5980/6040 with a 6095 stop. Given the strength of Sterling I would expect the FTSE to have difficulty in making further gains at this time.
Dow Rolling Contract
Frustratingly, the Dow missed my 28050 buy level by 25 points before rallying over 400 and I am still flat. I am reluctant to chase the Dow higher and I will only raise my buy level slightly to 27920/28120 with a higher 27785 stop. I will raise my sell level to 28850/29050 with a higher 29205 stop.
December NASADAQ
I am still flat and I will now raise my buy level to 11920/12020 with a 11825 tight stop. If I am taken long I will have a T/P level at 12105.
December BUND
I am still flat as the Bund again traded in a narrow range despite the increase in US and UK Bond Yields on Friday. I will now lower my sell level to 176.40/176.90 with a lower 177.35 stop.
Gold Rolling Contract
I refuse to chase the price of Gold higher and today I will leave my 1902/1914 buy level unchanged with the same 1889 stop.
Silver Rolling Contract
No Change as Silver rallied on Friday without coming close to my buy range. Silver is trading at 25.60 as I go to press. Just like Gold above I do not want to chase the price of Silver higher and I will leave my 24.20/24.70 buy level unchanged with the same 23.75 stop.
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