U.S. stocks fell, led by energy and technology shares, as investors mulled earnings reports and the prospects of trade negotiations. Treasuries rose after Retail Sales unexpectedly declined. In earnings, Bank of America jumped after deal fees surged, continuing a string of strong bank results. Nexflix rose in after-hour trading on positive results. The US Dollar also edged lower after the retail sales report renewed expectations for an October rate cut by the Federal Reserve. The S&P 500 briefly climbed from the lows of the day after President Donald Trump said a trade deal with China probably will not be signed until he meets with Chinese President Xi Jinping at the APEC summit next month in Chile. The Stoxx Europe 600 dropped, while benchmark indexes in Asia finished mostly higher, though most gauges trimmed the gains after China threatened to retaliate if the U.S. offered legislative support to pro-democracy protesters in Hong Kong. Stocks dipped in Shanghai and the yuan weakened. The Pound strengthened amid signs European leaders are getting ready to gather in Brussels to clinch a deal that will see the U.K. part ways with the European Union. Elsewhere, Turkish stocks fell with the lira after the U.S. brought a criminal case against one of the nation’s largest banks, in what could be an escalation of Washington’s efforts to reprimand Ankara for its military incursion into northern Syria.
To mark my 1925th 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 61 points yesterday and is now ahead by 927 points for October, having made 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
The S&P 500 Index fell 0.2% to close at 2990.
The Dow Jones Industrial Average dipped 0.1% to close at 27,007.
The Stoxx Europe 600 declined 0.1% to 393.
Currencies
Here is a summary of the main changes in F.X. Markets:
The Bloomberg Dollar Spot Index fell 0.2%, its lowest level in two months.
The Euro climbed 0.4% to $1.1075, the strongest in almost seven weeks on the biggest gain in four weeks.
The British Pound rallied 0.3% to close at $1.2836, the strongest in almost five months.
The Japanese Yen strengthened 0.1% to 108.77 per dollar.
Bonds
The yield on 10-year Treasuries declined three basis points to 1.75%.
Germany’s 10-year yield increased three basis points to -0.39%, the highest in a month.
Britain’s 10-year yield advanced 2 basis points to 0.713%, which is also the highest in a month.
Commodities
West Texas Intermediate crude gained 1.0% to $53.32 a barrel.
Gold gained 0.6% to $1,490 an ounce.
This morning on the Economic Front we have UK Retail Sales and the Bank of England Credit Conditions Survey at 9.30 am. This is followed at 10.00 am by Euro-Zone Construction Output. At 1.30 pm we have U.S. Building Permits, Housing Starts, Philly Fed Manufacturing Index and the Weekly Jobless Claims. Finally, we have Industrial Production and Capacity Utilisation at 2.15 pm.
December S&P 500
I am still flat the S&P as the market traded in a narrow range yesterday. Interestingly, the latest results of the Weekly Investors Intelligence Advisors’ Survey shows that for the second week in a row, bullish advisors remain below 50%. This implies that we are not finished with the market from moving higher and that it is only a matter of time before both the Dow and S&P make new all-time highs. Today I will raise my S&P buy level to 2972/2985 with a 2963 stop. I no longer want to be short the S&P at this time.
EUR/USD
I have had the correct view about a stronger Euro but unfortunately the market keeps missing my buy ranges and I am still flat. Today I will move my buy level higher to 1.0990/1.1030 with a higher 1.0955 stop.
December Dollar Index
The Dollar again just missed my sell level and I am still flat. I will now lower my sell level to 98.05/98.45 with a lower 98.80 tight stop.
December DAX
No Change as I am still a small seller on any further rally to 12820/12900 with a 12955 stop. Given how overbought the DAX is trading I still do not want to be long the market at this time.
December FTSE
The strong Pound helped the FTSE to trade lower to my 7130 buy level before rallying to my revised 7151 T/P level and I am now flat. Today I will again look to buy the FTSE on any further sip lower to 7070/7110 with a 7025 stop. Despite the stronger Pound I still do not want to be short the FTSE at this time.
Dow Rolling Contract
I am still flat the Dow and similar to the reasons given in my S&P commentary above I will now raise my Dow buy level to 26750/26900 with a 26670 stop. It is only a matter of time in my opinion before the September high of 27,306 is broken.
December NASDAQ
Just before lunch time I emailed my Platinum Members to exit any short position at a price of 7937 and to buy the market on any further dip to 7915. After both prices were filled I covered this long position at my revised 7947 T/P level and I am now flat. Today I will again look to buy the market from 7855/7905 with a 7805 stop. I no longer want to be short the NASDAQ at this time especially ahead of the Options Contracts which expire on Friday.
December BUND
I am still flat the Bund and today I will leave my 170.75/171.15 buy level unchanged with the same 170.35 stop.
Gold Rolling Contract
The Daily Sentiment Index for Gold has dipped to 24 from 31 last week, which itself is well below the 95 reading in early August. This dip in the DSI implies that most of the recent sell-off is close to being over. I am still flat Gold and today I will raise my buy level to 1462/1472 with a 1454 stop.
Silver Rolling Contract
No Change as I am still long the market at 17.40 with the same 17.55 T/P level. I will continue to add to this position at a price of 16.90. I will leave my stopped unchanged at 16.65 and if any of the above levels are hit I will be back with a new update for my Platinum Members.
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