U.S. Equity Markets struggled near record highs on speculation that a recent rally outpaced the risks to global economic growth. Bonds climbed. The S&P 500 Index wiped out an early advance after Federal Reserve Chairman Jerome Powell said that uncertainties about the outlook remain — including those around trade policy and the coronavirus. Meanwhile, Treasuries extended gains after he noted that the committee revised the language about inflation to clarify that policy makers aren’t comfortable with it below 2%. In a highly anticipated decision, the Fed kept its key rate unchanged and signalled policy would stay on hold. As the earnings season continued to roll in after the close, Microsoft Corp. reported sales and profit that topped analysts’ projections, while Tesla Inc.’s revenue exceeded estimates. Meantime, Facebook Inc.’s results underwhelmed investors. Elsewhere, oil fell after a government report showed the biggest jump in U.S. crude stockpiles since November. The European Parliament approved Prime Minister Boris Johnson’s Brexit deal, clearing the way for the U.K. to leave the EU on Jan. 31 with an agreement that, for the time being, will avoid a chaotic rupture. The Pound retreated.
To mark my 1975th 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 110 points yesterday and is now ahead by 1969 points for January, having made 818 points in December, 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
Some other corporate highlights:
Apple Inc.’s strong results sent the iPhone maker to a record.
General Electric Co. soared after its cash outlook topped Wall Street’s estimates.
Boeing Co. rallied on news the planemaker burned less cash than expected.
McDonald’s Corp. rose as sales in its home market beat expectations.
Mastercard Inc., Dow Inc. and T. Rowe Price Group Inc. reported better-than-estimated results.
AT&T Inc. topped earnings estimates as cost cuts helped offset steep TV-subscriber losses and higher spending on its media business.
EBay Inc., Advanced Micro Devices Inc. and Xilinx Inc. gave lackluster guidance.
The S&P 500 fell 0.1% to close at a price of 3273.
The Stoxx Europe 600 Index increased 0.4%.
The MSCI Emerging Market Index lost 0.4%.
Currencies
Here is a summary of the main Changes in F.X. Markets:
The Bloomberg Dollar Spot Index was little changed.
The Euro dipped 0.2% to $1.1005.
The Japanese Yen strengthened 0.1% to 109.09 per dollar.
Bonds
The yield on 10-year Treasuries dipped eight basis points to 1.58%.
Germany’s 10-year yield fell four basis points to -0.38%.
Britain’s 10-year yield decreased four basis points to 0.516%.
Commodities
The Bloomberg Commodity Index slid 0.6%.
West Texas Intermediate crude fell to $53.33 a barrel.
This morning on the Economic Front we have German Unemployment at 8.55 am. This is followed at 10.00 am by Euro-Zone Unemployment and Economic Sentiment. At 12.00 pm we have the Bank of England Policy Decision. Next we have German CPI at 1.00 pm and at 1.30 pm U.S Weekly Jobless Claims, PCE Deflator and most importantly GDP. Finally, at 6.00 pm we have a speech from Bundesbank President Weidmann.
March S&P 500
The S&P which just missed my 3299 sell level with a rebound high of 3293 before selling off post the FOMC to my 3265 buy level. Subsequently we had a late rally into the close with the S&P hitting my 3274 T/P level and I am now flat. While the NASDAQ Futures closed last Friday’s Gap both the Dow and S&P just missed. The S&P has short-term support from 3242/3254 and I will be a buyer in this area with a 3231 stop. I will also lower my sell level to 3290/3302 with a 3314 stop. If the S&P can build value below 3280 and especially 3250 then I will have more confidence that we have at least a temporary top in the market.
EUR/USD
My Euro plan worked well with the Euro trading lower to my 1.0995 buy level before rallying to my revised 1.1015 T/P level and I am now flat. Today I will again look to buy the Euro from 1.0955/1.0995 with a 1.0925 stop.
March Dollar Index
No Change as I am still short at an average rate of 97.70 with the same 98.12 stop and 98.45 T/P level. If any of the above levels are filled I will be back with a new update for my Platinum Members.
March DAX
I am still flat the DAX and today I will lower my buy level to 13110/13170 with a 13055 stop.
March FTSE
The FTSE continues to struggle and I am still flat. Today I will lower my buy level slightly to 7270/7320 with a lower 7235 stop.
Dow Rolling Contract
Frustratingly the Dow missed my 28950 sell level by 18 points before selling off to trade at 28700 as I post this commentary and I am still flat. Today I will lower my sell level to 28900/29050 with a lower 29140 stop. I still do not want to be long the Dow at this time.
March NASDAQ
The NASDAQ just missed my 9060 buy level after Facebook posted weaker earnings and I am still flat. I will now lower my buy level slightly to 8960/9020 with a lower 8915 stop.
March BUND
After the FOMC Meeting I raised my Bund sell level and I am still flat. Today my only interest in selling the Bund is from 174.70/175.10 with a 175.45 stop.
Gold Rolling Contract
Gold is still trading better than Silver which itself is struggling. I do not trust this move higher in Gold and today I will only raise my buy level to 1540/1552 with a 1532 stop.
Silver Rolling Contract
I am still flat Silver and today I will now raise my buy level to 16.85/17.25 with a higher 16.45 stop.
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