U.S. Equity Markets rose alongside Treasuries, while the US Dollar fell after the Federal Reserve left interest rates unchanged and its chairman signalled it would keep policy “somewhat accommodative.” The S&P 500 halted a two-day slide as investors viewed the last Fed decision of the year as dovish because the central bank signalled rate hikes are unlikely unless there is a meaningful change in the outlook for the economy. The 10-year Treasury rate fell below 1.8%. The Fed, in its first unanimous vote since May, said it will continue to monitor the implications of data for the economic outlook “including global developments and muted inflation pressures.” This accommodative stance should provide a measure of support for risk assets heading into the new year. The U.K. votes today to determine whether Prime Minister Boris Johnson gets the mandate he wants to “get Brexit done,” or Labour Party Leader Jeremy Corbyn replaces him in 10 Downing Street to pursue his “radical agenda” of wealth redistribution and nationalisations. British general elections are decided by separate races in 650 districts, with each assigned a seat in the House of Commons. Most won’t change hands: just 70 did in 2017, with 111 doing so two years earlier. A party needs 326 out of 650 seats for a majority in the House of Commons, though in practice, about 320 will suffice because the speaker and three deputies don’t vote, and Northern Ireland’s Sinn Fein chooses not to sit in the Westminster parliament. All will be revealed shortly after 10.00 pm when we get the ‘’Exit Polls’’.
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For anyone following my Platinum Service it made 70 points yesterday and is now ahead by 537 points for December, having made 780 points in November, 1649 points in October, 1620 points in September, 2387 points in August, 1153 points in July, 1346 points in June,1722 points in May, 955 points in April and 1027 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
Equity gains had been muted throughout the session as investors kept an eye out for trade headlines. The Dow Jones Industrial Average was little changed amid more trouble for Boeing Co.’s Max plane and Home Depot Inc.‘s weak forecast. Crude slipped after U.S. inventory data. With the world’s top two economies still wrangling over an interim deal, Thursday may bring news as Trump is expected to meet with his trade team, according to people familiar with the talks.
The S&P 500 rose 0.3% to close at 3,141.
The Dow Jones Industrial Average increased 0.1% to close at 27,911.
The NASDAQ Composite Index advanced 0.6%.
The MSCI All Country World-Index climbed 0.4%.
Currencies
Here is a summary of the main Changes in F.X. Markets:
The Bloomberg Dollar Spot Index fell 0.4%.
The Euro added 0.3% to close at $1.1131.
The Japanese Yen rose 0.2% to 108.55 per dollar.
Bonds
The yield on 10-year Treasuries fell six basis points to 1.79%.
Germany’s 10-year yield declined two basis points to -0.32%.
Britain’s 10-year yield fell three basis points to 0.75%.
Commodities
West Texas Intermediate crude fell 0.7% to $58.84 a barrel.
Gold Futures added 0.8% to $1,479.50 an ounce.
This morning on the Economic Front we already had the release of German Final CPI which came in as expected with a fall of 0.8%. At 10.00 am we have Euro-Zone Industrial Production and at 12.45 pm by the ECB Rate Decision where no change is expected. This is followed at 1.30 pm by new ECB President Lagarde first press conference. Also at 1.30 pm we have U.S Weekly Jobless Claims and PPI. Finally, at 5.45 pm we have a speech from Bank of Canada Governor Poloz.
December S&P 500
The S&P broke a 2-day losing streak as the market again continued to build on Tuesday’s 3116 low to close higher at 3141 as frustratingly the S&P just missed my 3128 buy level before rallying into the close after Fed Chair Powell’s press conference where he said the Fed will remain ‘’Somewhat Accommodative’’. As long as the S&P does not break and close below 3116 I will continue to be a buyer on dips and today I will raise my buy level to 3123/3133 with a 3114 wider stop. I still do not want to be short the S&P at this time.
EUR/USD
Finally, we saw a break and close over the key 1.1100 resistance level. The 1.1070/1.1110 area should now offer reasonable support and I will move my buy level to this area with a 1.1035 stop. My target level on the 1.1100 break being sustained is from 1.1250/1.1300.
December Dollar Index
I am still flat the Dollar and today I will lower my sell level to 97.45/97.85 with a lower 98.15 stop.
December DAX
The DAX is trading higher at 13150 this morning which is really frustrating having been stopped out of a nice long position near Tuesday’s low at 12920. The DAX has strong resistance from 13200/13250 and a break and close over this level tomorrow evening in New York will be bullish for new all-time highs. Today I will move my buy level higher to 13020/13090 with a higher 12955 stop.
December FTSE
I am still flat the FTSE as Election Day finally arrives after a boring campaign. The EXIT POLL which will not be released until shortly after the Polls close at 10.00 pm will determine the next move in both the Pound and FTSE. Obviously if we get a hung parliament then Sterling will get hit hard. If the Conservatives win an overall majority (as expected) then Sterling should rise but a lot of this is already priced into the market. Today I will leave my 7140/7185 buy level unchanged with the same 7110 stop.
Dow Rolling Contract
The weakness in Boeing Shares saw the Dow sell-off to my 27820 buy level before rallying to my 27890 T/P level and I am now flat. The Dow has resistance at last Friday’s 28035 high which if broken should see the market test the December 2 morning high of 28200. As I have mentioned all week as long as the Dow stay above the 27650 key support level I will continue to be a buyer on dips. Today my buy level will be from 27660/27820 with a tight 27575 stop. Despite the fact that Dow has strong resistance above the market I still do not want to be short the market at this time.
December NASDAQ
The NASDAQ fell short of my buy level before rallying 80 points and I am still flat. Today I will move my buy level higher to 8325/8375 with a 8270 stop.
March BUND
The Bund just missed my 171.95 buy level with a 172.10 low after I posted yesterday morning and I am still flat. Ahead of the ECB this afternoon I am reluctant to chase this market higher and therefore I will leave my 171.55/171.95 buy level unchanged with the same 171.15 stop.
Gold Rolling Contract
I am still flat Gold as the market continues to go nowhere. Today I will raise my buy level to 1445/1455 with a higher 1438 stop.
Silver Rolling Contract
I am still flat Silver and today I will again raise my buy level to 16.25/16.75 with a 15.80 stop. If I am taken long I will have a T/P level at 16.95.
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