U.S. Equities capped one of the best years of the past decade with a slight gain, pushing the S&P 500 to an annual advance of 29% and a record $5.9 trillion in value added. The US Dollar fell for a fourth session and Treasuries slumped. The NASDAQ 100 Index notched a 38% gain for the year, its best since 2009. Bloomberg’s Dollar index ended the year lower by about 1% after a 2.9% slump in the fourth quarter. Ten-year Treasuries yielded 1.92%, down more than 75 basis points in the year. Gold looked to cap its best year since 2010, while crude oil pared its rise to 35%. European Equities slipped Tuesday, but notched a 23% gain in 2019, the most since 2009.
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For anyone following my Platinum Service it made 50 points on Monday to close the year with a gain of 818 points in 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
With several major markets shuttered and trading volumes depressed before the New Year’s holiday, the dominant moves on Tuesday were themes expected by many to feature heavily in 2020 — a weakening dollar, stabilising global economy and easing of U.S.-China trade tensions. The lull across markets on Tuesday draws a line under a year of spectacular returns for many asset classes.
The S&P 500 Index rose 0.3%, closing at 3230.
The Nasdaq 100 Index gained 0.3%.
The Dow Jones Industrial Average added 0.3%, to close at 28,538.
The Stoxx Europe 600 Index decreased 0.1%.
The MSCI Asia Pacific Index sank 0.2%.
Currencies
Here is a summary of the main Changes in F.X. Markets:
The Bloomberg Dollar Spot Index declined 0.3%.
The British Pound increased 1% to $1.3225.
The Euro advanced 0.2% to $1.1216.
The Japanese Yen strengthened 0.2% to 108.65 per dollar.
Bonds
The yield on 10-year Treasuries advanced four basis points to 1.92%.
Germany’s 10-year rate ended the year at -0.185%
Commodities
West Texas Intermediate crude fell 0.8% to $61.19 a barrel.
Gold climbed 0.1% to $1,520.20 an ounce.
This morning on the Economic Front we have German. UK and Euro-Zone Markit Manufacturing PMI at 8.55 am, 9.00 am and 9.30 am respectively. This is followed at 12.00 pm by U.S MBA Mortgage Applications and the Weekly Jobless Claims at 1.30 pm. Finally, at 2.45 pm we have U.S Markit Manufacturing PMI.
March S&P 500
The S&P made a nice recovery into the close on Tuesday having hit an intra-day low at 3211.50. I am still flat and today I will continue to be a seller on any further rally to 3252/3267 with the same 3278 stop. The ‘’Fear & Greed Index ended the year with an ‘’Extreme Greed’’ reading of 93 close to its 2019 high of 94. The 50 Day Moving Average is well below current pricing at 3120 again emphasising how stretched the S&P is at this time. Against this the first few trading sessions of a new year tend to be bullish hence the late rally into the close on Tuesday which is followed by another ‘’Gap Opening’’ this morning. The S&P has support from 3200/3212 and today I will raise my buy level to this area with a 3191 tight stop.
EUR/USD
The Euro had a strong finish to the year closing above the key 1.1200 resistance level that has held for most of last year. I am still flat and today I will now raise my buy level to 1.1135/1.1175 with a higher 1.1095 stop.
March Dollar Index
No Change as I am still a seller on any further rally to 96.80/97.25 with the same 97.55 stop.
March DAX
Despite the stronger Euro, the DAX is trading 125 points higher this morning at a price of 13288. The DAX has strong resistance from 13390/13450 and I will be a small seller in this area with a 13505 stop. The DAX has short-term support from 13120/13180 and I will be a buyer here with a 13075 tight stop.
March FTSE
This morning the FTSE is also opening higher as the market looks to recover most of its losses recorded last Monday and Tuesday, despite the fact that Sterling is over 1% higher. Today I will lower my sell level slightly to 7600/7640 with a lower 7675 stop. Even though the FTSE is ”gaping” higher this morning I still do not want to be long the market at this time.
Dow Rolling Contract
Finally, we saw some profit taking in the Dow on Monday and Tuesday with the market trading lower to my 28550 T/P level from last Friday’s 28600 average short position. The Dow made an intra-day low of 28370 on Tuesday before again surging to trade higher at 28650 as I go to press. Today I will be a small seller on any further rally to 28750/28900 with a 29040 stop. The Dow has short-term support from 28210/28360 and I will be a buyer in this area with a tight 28145 stop.
March NASDAQ
I am still flat the NASDAQ as the market also reversed earlier Tuesday lows to trade at a price of 8800 as I go to press. Today I will leave my 8845/8895 sell level unchanged with the same 8935 tight stop.
March BUND
I am glad that we stayed flat the Bund over the New Year with the market trading 150 points lower from where I last marked prices last week. The BUND has strong support from 169.45/169.90 and today I will be a buyer in this area with a 169.10 stop.
Gold Rolling Contract
I am still flat Gold as the market again officially bottomed for the fifth consecutive December. Today I will raise my buy level slightly to 1495/1505 with a higher 1487 stop.
Silver Rolling Contract
Silver continues to underperform Gold’s rally and I am still flat. I am not going to chase Silver higher and today I will again leave my 17.35/17.75 buy level unchanged with the same 17.05 stop. If I am taken long I will have a T/P level at 18.03.
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