U.S. tech shares slumped as concern about trade tensions blunted optimism that slower-than forecast inflation would allow the Federal Reserve to cut Interest Rates. Oil plunged to a four-month low. Chipmakers were among the worst performers as the S&P 500 Index slipped, with defensive sectors like utilities faring the best. The tech-heavy Nasdaq 100 declined the most in a week as Facebook fell. Crude dropped to the lowest since January on concerns that the trade dispute between the U.S. and China could trip up the global economy. The US Dollar strengthened and Treasuries climbed. Just as investor concern over protectionism and global growth seemed to be easing, a fresh wave of uncertainty followed President Donald Trump’s announcement that he is personally delaying a trade deal with China and won’t complete the accord unless Beijing returns to terms negotiated earlier this year. The monthly inflation numbers released Wednesday supported the idea the Fed can cut borrowing costs after the president scowled at “way too high” interest rates.
To mark my 1850th 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 was flat yesterday and is still ahead by 393 points for June, having made 1722 points in May, 955 points in April, 1027 points in March, 1013 points in February and 1671 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
Just as investor concerns over protectionism and global growth seemed to be easing, a fresh wave of uncertainty followed President Donald Trump’s announcement that he is personally delaying a trade deal with China and won’t complete the accord unless Beijing returns to terms negotiated earlier this year. The monthly inflation numbers released Wednesday supported the idea the Fed can cut borrowing costs after the president scowled at “way too high” interest rates. The S&P 500 Index fell 0.2% to close at 2880. In Europe, The Stoxx Europe 600 Index dipped 0.3%, the biggest decrease this month while the U.K.’s FTSE 100 Index decreased 0.4%, the first retreat in more than a week. Finally, the MSCI Emerging Markets Index sank 0.7%, the biggest dip in almost three weeks.
Currencies
Here is a summary of the main changes in FX Markets:
The Bloomberg Dollar Spot Index rose 0.3%.
The Euro weakened 0.3% to $1.1289.
The British pound fell 0.3% to $1.2688.
The Japanese yen was little changed at 108.51 per dollar.
Bonds
The Bond Markets are on hold ahead of the G20 this weekend as the markets again traded sideways. The yield on 10-year Treasuries decreased two basis points to 2.12%, while Germany’s 10-year yield was little changed at -0.24% and Britain’s 10-year yield rose one basis point to 0.87%.
Commodities
Crude was hammered yesterday with West Texas Intermediate crude falling 4.2% to $51.01 a barrel, the lowest since January. In precious metals Gold gained 0.5% to $1,333.14 an ounce, while Silver was unchanged at $14.76.
This morning on the Economic Front we have German CPI at 7.00 am and this is followed at 10.00 am by Euro-Zone Industrial Production. The only US release is the Weekly Jobless Claims at 1.30 pm ahead of Retail Sales and Consumer Confidence tomorrow.
June S&P 500
Unfortunately the S&P just missed my 2875 buy level with a 2874 low print and I am still flat. Yesterday was one of the slowest trading sessions of the year so far. Despite the NYSE Advance/Decline ratio being mostly negative yesterday I still expect any dip to be contained over the next few days before we attack the all-time high from early May. Today I will raise my buy level slightly to 2864/2874 with a 2858 higher stop. My only interest in selling the S&P is still on a rally higher to 2908/2918 with a 2925 stop.
EUR/USD
Frustratingly the Euro just missed my 1.1355 sell level with a high of 1.1343 before falling 60 points and I am still flat. I will now lower my sell level to 1.1330/1.1370 with a 1.1410 stop. If the Euro can build value below 1.1220 I will then move my sell level lower.
June Dollar Index
I am still flat the Dollar and today I will now raise my sell level slightly to 97.50/97.90 with a 98.25 stop.
June DAX
The DAX traded in a narrow range yesterday as yet again the market is having difficulty in breaking the key 12200/12280 resistance level. I still believe that this resistance will be broken over the coming weeks. Today I will look to buy the DAX on any dip lower to 11970/12030 with a 11915 stop.
June FTSE
No Change as I am still a seller on any rally higher to 7430/7470 with the same 7510 stop.
Dow Rolling Contract
Although the Dow traded in a 100 point range 90% of the US trading session was spent in a 40 point range as yesterday’s session was must of the most boring in many months. I am still flat the Dow and today I will continue to be a buyer on any dip lower to 25720/25880 with a 25630 same stop. I still do not want to be short the Dow at this time.
June NASDAQ
The NASDAQ just missed my 7450 buy level before having a small rally into the close and I am still flat. Today I will leave my 7400/7450 buy level unchanged with the same 7355 stop.
September BUND
I am still flat the Bund and today I will again raise my sell level slightly to 171.85/172.25 with a higher 172.55 stop.
Gold Rolling Contract
The Gold sell-off over the previous two days was quickly reversed yesterday with the market closing 0.5% higher at $1333 and I am still flat. Today I will now raise my buy level to 1313/1321 with a 1305 stop. If I am taken log I will have a T/P level at 1327 and if any of the above levels are hit I will be back with a new update for my Platinum Members.
Silver Rolling Contract
No Change as I am still long at 14.78 with the same 14.93 T/P level. Meanwhile I will now raise my stop on this position to 14.43.
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