U.S Equity Futures reversed earlier declines after it was announced that Nancy Pelosi and Treasury Secretary Steven Mnuchin are expected to have reached a potential stimulus agreement. The S&P rallied over 75 Handles off yesterday’s intra-morning low following the chaotic Presidential Debate on Tuesday night. The Senate passed a short-term spending bill to keep the government funded through mid-December, sending it to the House for approval, and avoid a shutdown. The Dow led the rally closing higher by 1.2%%. The ADP data showed that employers added more jobs than expected in September, marking the fifth straight month of increases in hiring. ADP’s data is another sign that the job market is recovering. Employers continue to add jobs back after steep declines in employment in both March and April. Markets turned higher after the ADP release and never looked back. Senate Majority Leader Mitch McConnell noted that both sides are still far apart on a deal. In vaccine news, Moderna’s (MRNA) chief executive said that the company’s Coronavirus vaccine will not be ready before the presidential election in November. But he said the company could seek emergency use authorisation later that month. The German Government said European Union economic stimulus was in danger of being delayed because of a disagreement over “democratic values” among member states. European Central Bank President Christine Lagarde said it is considering allowing inflation to overshoot its target to make up for a sustained undershoot. German Chancellor Angela Merkel warned lawmakers they cannot let Coronavirus restrictions undo all the economic progress made since the social-distancing lockdowns earlier this year. Britain’s House of Commons approved legislation allowing the government to break its Brexit treaty with the European Union. Elsewhere, Oil bounced back closing higher by 1.68%.
To mark my 2150th 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 130 points yesterday to close September with a gain of 3042 points, having made 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 0.83% higher at a price of 3363.
The Dow Jones Industrial Average closed 329 points higher for a 1.2% gain at a price of 27,781.
The NASDAQ 100 closed 0.84% higher at a price of 11,414.
The Stoxx Europe 600 Index closed 0.72% higher.
The MSCI Asia Pacific Index rose 0.5%%.
This morning the Nikkei closed unchanged after a system’s glitch suspended all trading
Currencies
The Bloomberg Dollar Spot Index closed 0.1% higher.
The Euro closed unchanged at $1.1731.
The British Pound closed 0.5% higher at $1.2925.
The Japanese Yen closed 0.2% lower at 105.42 per dollar.
Bonds
The yield on 10-year Treasuries closed five basis points higher at 0.69%.
Germany’s 10-year yield closed one basis point higher at -0.53%.
Britain’s 10-year yield closed three basis points higher at 0.23%.
Commodities
The Bloomberg Commodity Index rose 0.5%.
West Texas Intermediate closed 4.0% lower at $38.65 a barrel.
Gold closed 1% higher at $1892 an ounce.
This morning on the Economic Front we have German, UK and Euro-Zone Markit Manufacturing PMI at 8.55 am, 9.00 am and 9.30 am respectively. This is followed at 1.30 pm by Weekly Jobless Claims and Personal Income/Spending, followed by Markit Manufacturing PMI at 2.45 pm. Finally, a 3.00 pm we have ISM Manufacturing and Construction Spending.
December S&P 500
Just when it looked like the S&P was about to break lower we get a surprise announcement that a Stimulus Bill is close, sending the S&P 75 Handles higher. As I have said countless times since the March lows, both the Federal Reserve and US Government will not allow a crash as they have spent so much money supporting markets. This move higher did not suit yesterday’s call with the market trading the whole of my sell range for a 3356 average short position before stopping me out of this position near the high of the day at 3371 and I am now flat. However, for me to turn bullish I need the key 3393/3410 resistance area to be broken. As a result, I will be an aggressive seller in this range with a 3423 wider stop. I will now raise my buy level to 3325/3338 with a 3309 stop.
EUR/USD
My short 1.1735 Euro position worked well with the market trading lower to my 1.1710 T/P level and I am now flat. The Euro has strong support from 1.1630/1.1680 where I will be a buyer with a 1.1585 stop. We have short-term resistance from 1.1780/1.1820 where I will be a seller with a 1.1865 tight stop.
December Dollar Index
Shortly after I posted the Dollar rallied to my 94.15 T/P level on my 93.90 latest long position and I am still flat. Today, I will again be a buyer on any dip lower to 93.20/93.70 with a 92.75 stop.
December DAX
My 12675 long DAX position worked well with the market rallying to my 12750 T/P level and I am still flat. Today. I will again be a buyer on any dip lower to 12620/12700 with a 12535 stop.
December FTSE
I am still flat the FTSE which again struggled as Sterling rose. I will continue to be a buyer on any dip lower to 5760/5820 with the same 5715 stop.
Dow Rolling Contract
The Dow rallied an incredible 800 points off yesterday morning’s early 27160 low print as yet again the buy the dip won the day. This move higher had me short at an average rate of 27800. End of month rebalancing saw a brief spike lower after the Cash Dow closed and this enabled me to cover my short position at my revised 27695 T/P level as emailed to my Platinum Members and I am now flat The Dow has strong resistance from 28100/28250 where I will be a seller with a 28375 tight stop.
December NASDAQ
Selling the rallies in the NADAQ has worked well over the past two weeks. After the NASDAQ traded the whole of my sell range for an average rate of 11400, we saw a small move lower which enabled me to cover this position at my revised 11360 T/P level and I am now flat. This morning the NASDAQ is rallying again, trading at 11500 as I go to press. We have short-term resistance from 11560/11660 where I will be a seller with a 11715 tight stop. I will now move my buy level higher to 11230/11330 with a higher 11145 stop.
December BUND
The rally in Global Equity Markets saw Bond Yields rise as prices fell. This move lower in the Bund hit my 174.35 buy level before I covered this position at my revised 174.45 T/P level and I am still flat. The Bund has resistance from 174.50/175.00 where I will be a small seller with a 175.35 stop.
Gold Rolling Contract
No Change as I am still a buyer on any dip lower to 1854/1866 with the same 1842 stop.
Silver Rolling Contract
Ahead of the New York close, Silver traded lower to my 23.30 buy level. I am still long and I will add to this position at 22.70 with the same 22.35 tight stop. I will now lower my T/P level on this position to 23.75.
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