U.S. Equity Markets closed lower on Wednesday with losses led by the NASDAQ as the Tech sector underperformed with semis weighed on by a poor ASML earnings report. Stocks had pared some of the weakness after a stellar 20 Year bond auction before selling resumed into the closing bell. Elsewhere, the Dollar was sold as it tracked US yields lower which in turn supported the Yen, Franc and Euro but the Antipodes outperformed despite the risk-off tone of trade. Sterling only saw slight gains vs the Dollar but it was weaker vs the Euro despite hotter-than-expected inflation, but Bank of England officials did not seem too concerned. There were few developments on geopolitics yesterday other than reports suggesting Israel was going to respond to Iran on Monday, but ultimately decided to wait – a response seems a given but it is still a matter of when and how. Elsewhere, trade concerns between the US and China are rising after US President Biden was calling for higher tariffs on Chinese steel. The lack of updates saw oil prices pare some of the recent strength with inventory data showing a larger build than expected supporting the move while gold prices saw slight losses, despite the weaker dollar. Attention turns to more Fed speak on Thursday, with Thursday US data focusing on Jobless Claims, Existing Homes Sales and the Philly Fed business index. Elsewhere, Oil closed 3.1% lower while Gold was also weak with a 1.2% loss on Wednesday.
To mark my 2975th 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 made 261 points yesterday and is now ahead by 2537 points for April after ending March with a gain of 2113 points. February closed with a gain of 1606 points, after closing January with a gain of 3675 points. December saw a gain of 1890 points after finishing November with a gain of 1734 points. October ended with a gain of 3184 points, after closing September with a small gain of 228 points, after finishing August with a gain of 1485 points, following a small gain of 285 points gain in July, after closing June with a gain of 2683 points. May closed with a gain of 3205 points. April saw a gain of 3354 points while March closed with a gain of 6168 points. The Platinum Service made a record 9619 points last October. Since I started this New Platinum Service in June 2015 it has averaged a monthly gain of over 1900 points. I have a YouTube Channel which contains recent interviews I have given This can be viewed by clicking HERE Please subscribe to this for new interview notification
Equities
The S&P 500 closed 0.58% lower at a price of 5022.
The Dow Jones Industrial Average closed 45 points lower for a 0.12% loss at a price of 37,753.
The NASDAQ 100 closed 1.24% lower at a price of 17,493.
The Stoxx Europe 600 Index closed 0.06% higher.
This Morning, the MSCI Asia Pacific closed 0.7% higher.
This Morning, the Nikkei closed 0.31% higher at a price of 38,079.
Currencies
The Bloomberg Dollar Spot Index closed 0.35% lower.
The Euro closed 0.3% higher at $1.0672.
The British Pound closed 0.2% higher at 1.2463.
The Japanese Yen rose 0.2% closing at $154.28.
Bonds
Germany’s 10-year yield closed 2 basis points lower at 2.47%.
Britain’s 10-year yield closed 8 basis points lower at 4.26%.
U.S.10 Year Treasury closed 5 basis points lower at 4.61%.
Commodities
West Texas Intermediate crude closed 3.1% lower at $82.67 a barrel.
Gold closed 1.2% lower at $2368.10 an ounce.
This morning on the Economic Front we have a speech from ECB Member De Guindos at 8.15 am, followed by Euro-Zone Construction Output at 10.00 am. Next, we have U.S. Weekly Jobless Claims and the Philly Fed Manufacturing Survey at 1.30 pm. At 3.00 pm we have Existing Home Sales. Meanwhile, Fed Members Bowman, Williams and Bostic are speaking at 2.05 pm, 2.15 pm and 4.00 pm respectively.
Cash S&P 500
If you buy the S&P on the close every evening you are almost guaranteed to be in profit when you wake up the next morning. For the past week each down move has been met by aggressive buying overnight and this morning is no exception with the S&P trading 22-Handles higher than last night’s Chicago close of 5022. NIVIDA falling 4% weighed on both the S&P and NDX yesterday as the S&P came very close to breaking the key 5000 support level. I still believe that the Feb 22 ‘’Open Gap’’ of 4981/4991 is too close not to be at least tested – remember all ‘’Open Gaps’’ are always filled at some point. After the S&P traded the whole of my buy range for a 5015 average long position, we rallied back above 5040 before selling off into the close. This initial move higher saw my revised 5026 T/P level triggered and I am now flat. Today, I will be an aggressive buyer on and further move lower to 4982/5002 with a 4967 ‘’Closing Stop’’. The S&P is getting more and more oversold, and I do see a number of positive divergences meaning the market can rip higher at any moment. As a result, I have no interest in shorting any of the American Indexes. If this view changes, I will be back with a new update for my Platinum Members.
EUR/USD
Given the number of open positions on my books I decided to reduce risk on some of these positions. Yesterday, I emailed my Platinum Members to exit their 1.0610 long position at my revised 1.0651 T/P level and I am now flat. The Euro has strong support from 1.0560/1.0640 where I will again be a buyer with the same 1.0495 ‘’Closing Stop’’. I still do not want to be short the Euro at this time..
Dollar Index
The Daily Sentiment Index for the Dollar closed at 91 for the third consecutive trading session which is a rare occurrence. The DSI’s current extreme suggests that prices are nearing a short-term high. I am still short the Dollar at 106.05. I will add to this position at 106.85 while leaving my 107.35 ‘’Closing Stop’’ unchanged. Meanwhile I will leave my 105.60 T/P level unchanged. If any of the above levels are hit, I will be back with a new update for my Platinum Members.
Cash DAX
The DAX traded in a narrow range yesterday and I am still flat. I have no interest in chasing the market higher, preferring to be patient with my buy ranges. Today, I will continue to be a buyer on any dip lower to 17580/17660 with the same 17495 ‘’Closing Stop’’. I still do not want to be short the market at this time. If this view changes, I will be back with a new update for my Platinum Members.
Cash FTSE
Just like the Euro above, I exited my 7825 average long FTSE position at my revised 7865 T/P level, and I am now flat. The FTSE has support below from 7760/7830 where I will again be a buyer with a lower 7695 ‘’Closing Stop’’. I still do not want to be short the FTSE at this time.
Dow Rolling Contract
After the Dow sold off to my 37640-buy level, we had a nice 150-point rally. This move higher saw my revised 37710 T/P level executed and I am now flat. Given how oversold the Dow is trading, I will continue to be a buyer of this market on dips. The Dow has strong support from 37400/37650 where I will be an aggressive buyer with a wider 37195 ‘’Closing Stop’’. If I am taken long, I will have a T/P level at 37880.
Cash NASDAQ 100
Given the number of points made this month and the number of positive divergences that I am seeing in the NASDAQ, I emailed my Platinum Members to stay long the NASDAQ at 17780 with no stop for now. This strategy is paying off this morning with the market trading over 100 points higher from last night’s close at 17605. The NDX has resistance at 17720. I will now lower my exit level to this price. Meanwhile, I will continue to have no stop on my existing position. I will add to this trade on any further move lower to 17460. If any of the above levels are hit, I will be back with a new update for my Platinum Members.
March BUND
The Bund rallied small yesterday. I am still long at an average rate of 131.50 with the same 132.05 T/P level. I will leave my ‘’Closing Stop’’ unchanged at 130.75. If any of the above levels are hit, I will be back with a new update for my Platinum Members.
Gold Rolling Contract
Given how cheap as asset class Silver is, I have no problem in paying up for this precious metal. However, Gold is another beast and given how overbought this metal is I have no interest in been a buyer, preferring to sell rallies instead. The next resistance level for Gold is last Friday’s 2440 all-time-high. I will be a small seller from 2430/2445 with a higher and wider 2461 ‘’Closing Stop’’. If I am taken short, I will have a T/P level at 2415.
Silver Rolling Contract
No Change. I am still a buyer on any further dip lower to 27.00/27.80 buy level with the same 25.95 ‘’Closing Stop’’. I still do not want to be short Silver at this time. If I am taken long, I will have a T/P level at 28.50.
Please Note: There will no Daily Commentary tomorrow. Any of my calls that are not hit today and are subsequently triggered on Friday, will see me return with updated emails for my Platinum Members.
Recent Comments