U.S. Equity Markets recovered from an early sell-off to closed mixed with the S&P ending the day with a small loss of 0.03% while the Dow closed 0.20% higher. Early in the day, markets rose on COVID-19 treatment news. Pharmaceutical giant Eli Lilly’s coronavirus treatment received an emergency use authorisation from the Food and Drug Administration, potentially aiding the fight against new variants. Markets quickly sold off on little news. Later in the day, Federal Reserve Chairman Jerome Powell said that the Employment picture is a long way from where it needs to be to get back to pre-pandemic levels. He added that the real Unemployment rate is probably closer to 10% instead of the 6.3% reported. As a result, the Central Bank will keep market conditions accommodative to achieve full employment, he said. This was just about in line with his prior messaging. European Markets closed lower. German Chancellor Angela Merkel voiced support for a measured opening of hotels and stores next month if coronavirus cases continue to ease. Vaccine news was also positive. A British government study of Pfizer and BioNTech’s COVID-19 vaccine is said to have demonstrated 67% protection against the illness after just one dose. European Union coronavirus vaccinations rose to 17.8 million yesterday, with a daily average of 613,000 doses administered over the last week. Former European Central Bank President Mario Draghi has won over skeptics in Italy to garner almost unanimous support to form a “pro-euro” government. And ECB President Christine Lagarde said that the European economy will need support into 2022. Elsewhere, Oil closed 0.24% higher as EIA data showed a larger than expected drawdown in U.S. crude inventories, while Bitcoin fell 6% after hitting new all-time highs on Tuesday.
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For anyone following my Platinum Service it made 322 points yesterday and is now ahead by 1097 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 0.03% lower at a price of 3909.
The Dow Jones Industrial Average closed 62 points higher for a 0.20% gain at a price of 31,437.
The NASDAQ 100 closed 0.23% lower at a price of 13,655.
The Stoxx Europe 600 Index closed 0.4% lower.
The MSCI Asia Pacific Index rose 0.3%.
The Nikkei was closed today having finished 0.19% higher yesterday at a price of 29,562.
Currencies
The Bloomberg Dollar Spot Index closed 0.1% lower.
The Euro closed 0.1% higher at $1.2131.
The British Pound closed 0.2% higher at $1.3842.
The Japanese Yen closed 0.1% lower at 104.65 per dollar.
Bonds
Germany’s 10-year yield closed unchanged at -0.45%.
Britain’s 10-year yield closed two basis points higher at 0.48%.
US 10 Year Treasury closed two basis points lower at 1.14%.
Commodities
West Texas Intermediate crude closed 0.24% higher at $58.38 a barrel.
Gold closed 0.25% higher at $1,839.30 an ounce.
This morning on the Economic Front we already had the release of German Wholesale Price Index, rising 2.1% versus 0.6% expected. At 8.00 am we have a speech from ECB Member De Guindos and this is followed at 1.30 pm by the latest U.S Weekly Jobless Claims. Finally, at 3.30 pm we have the EIA Natural Gas Storage Change.
March S&P 500
For one hour yesterday we saw increased volatility with the S&P dropping 50 Handles before the ”buy the dip” saw the market recover 40 of these lost Handles with the market trading sideways for the rest of the session. This initial move lower saw my 3909 T/P level executed on my 3920 latest short position. Subsequently the S&P traded lower to my 3890 buy level with a 3878 low print before rallying to my 3898 revised T/P level and I am still flat. The S&P needs to break and close below 3860 before we can determine that we have at least put in some sort of top in the market. We have support at yesterday’s low and I will be a strong buyer from 3867/3882 with a 3855 ‘’Closing Stop’’. The S&P has resistance from 3925/3940 where I will be a seller with a 3951 ‘’Closing Stop’’.
EUR/USD
I am still flat and I will now raise my buy level to 1.2060/1.2095 with a higher 1.2015 stop. I still do not want to be short the Euro at this time.
March Dollar Index
The Dollar traded in a narrow range during the past 24 hours and I am still flat. I will now raise my buy level to 90.65/91.05 with a higher 91.55 stop.
March DAX
The DAX continues to trade heavy. I do not trust the price action as so much good news is priced into the market. Chancellor Merkel announced that Germany’s lockdown will extend until March 7 while it looks increasing likely that Ireland will be close to full lockdown until at least the middle of April. This is no surprise given how slow the vaccine is been administered in Europe in comparison to the UK where nearly 15 million people have got the first jab. I will now lower my DAX sell level to 14010/14090 with a lower 14165 stop. I still do not want to be long the DAX at this time.
March FTSE
After the FTSE traded lower to my 6450 buy level we had a small bounce and I covered this position at my 6472 revised T/P level and I am now flat. The FTSE has support from 6380/6430 where I will again be a buyer with a 6345 stop.
Dow Rolling Contract
The Dow fell shy of my 31100 initial buy range with a low of 31218 before rallying nearly 300 points and I am still flat. I will now raise my buy level to 30980/31180 with a higher 30805 stop. I will also raise my sell level slightly to 31700/31900 with a wider 32050 ‘’Closing Stop’’.
March NASDAQ
The NASDAQ got hit hard yesterday, falling over 250 points from where I marked prices 24 hours again before the ”buy the dip” saw 150 points of these losses recovered into the close. Unfortunately, I was too conservative on my latest 13760 short position as the market quickly hit my 13690 T/P level and I am still flat. This morning the NASDAQ is trading at 13670. We have resistance from 13740/13820 where I will again be a seller with a 13925 stop. A break and close below 13400 will finally see at least a temporary top in the market.
March BUND
My BUND plan worked well with the market trading lower to my 175.95 buy level before rallying to my 176.30 T/P level and I am now flat. Today, I will again be a buyer from 175.70/176.20 with a 175.25 stop.
Gold Rolling Contract
Gold hit a rebound high at 1855 yesterday before having a small sell-off into the close. I am still flat and I will not chase the market higher. Therefore, I will leave my 1800/1815 buy level unchanged with the same 1789 stop. If I am taken long I will have a T/P level at 1823.
Silver Rolling Contract
After Silver hit my 26.90 buy level yesterday, I covered this position for a small gain at 27.05 and I am now flat. Silver has support from 25.80/26.40 where I will again be a buyer with a 25.25 stop.
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