U.S Equity Futures rallied to new all-time highs despite yesterday’s Presidents’ Day Holiday. The S&P is currently trading at 3952. U.K. Prime Minister Boris Johnson is drawing up plans for gradually lifting pandemic restrictions on socialising, shopping and traveling to work, and aims to set out target dates for when the curbs will be eased. “We want this lockdown to be the last,” he said at a news conference from 10 Downing Street on Monday. “We want progress to be cautious but irreversible.” Johnson’s priority will be to try to reopen schools from March 8, but no decision has yet been taken on whether all age groups will return to classrooms at the same time. As the region continues to struggle to put a lid back on the latest virus wave, U.K. travellers may need to prove they have been vaccinated against Covid-19 to enter some countries, Health Secretary Matt Hancock said, confirming Ministers are in talks with overseas counterparts on the issue. Oil prices surge over $60. The energy crisis that crippled Texas’s power system and sent energy prices soaring to record levels is deepening with at least 5 million people across the U.S. taking turns being plunged into darkness to avoid a total collapse of their grids. More than a million barrels a day of oil and 10 billion cubic feet of gas production are shut, while pipelines have declared force majeure and massive refineries have halted gasoline and diesel output. Natural Gas Futures are trading at their highest level since last November. Brent crude oil futures are holding on to Monday’s gains to above $63 a barrel in London. In Western Europe, a thaw is expected from the cold spell of recent weeks. Elsewhere both Gold and Bitcoin closed flat as we wait for the U.S Markets to re-open this afternoon.
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For anyone following my Platinum Service it lost 57 points yesterday and is now ahead by 1188 points for February, having finished January with a gain of 2077 points, 2273 points in December, 2025 points in November, 2779 points in October, 3042 points in September, 2383 points in August, 3128 points in July, 2580 points in June, 2456 points in May, 4773 points in April, and an incredible 9264 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 closed 0.47% higher at a price of 3934.
The Dow Jones Industrial Average closed 28 points higher for a 0.09% gain at a price of 31,458.
The NASDAQ 100 closed 0.53% higher at a price of 13,808.
The Stoxx Europe 600 Index closed 0.5% higher.
The MSCI Asia Pacific Index rose 0.3%.
This morning the Nikkei closed 1.28% higher at a price of 30,467.
Currencies
The Bloomberg Dollar Spot Index closed 0.1% lower.
The Euro closed 0.1% higher at $1.2138.
The British Pound closed 0.6% higher at $1.3920.
The Japanese Yen closed 0.6% lower at 105.52 per dollar.
Bonds
Germany’s 10-year yield closed one basis points higher at -0.39%.
Britain’s 10-year yield closed five basis points higher at 0.57%.
US 10 Year Treasury closed two basis points higher at 1.23%.
Commodities
West Texas Intermediate crude Futures are trading 2% higher at $60.18 a barrel.
Gold closed unchanged at $1,818.30 an ounce.
This morning on the Economic Front we have the German and Euro-Zone ZEW Survey at 10.00 am. At the same time we have the Euro-Zone GDP Report and Employment Change. Finally, we have the New York Empire State Manufacturing Index at 1.30 pm, followed by the Net Long-Term TIC Flows at 9.00 pm.
March S&P 500
No Change. I am still short at an average price of 3939 with the same 3961 ‘’Closing Stop’’. I will now raise my T/P level to 3935. I will continue to be an aggressive buyer on any further move lower to 3897/3915 with a higher 3885 stop. If I am taken long I will have a T/P level at 3929.
EUR/USD
The boring sideways price action in the Euro continues and I am still flat. I will leave my 1.2070/1.2110 buy level unchanged with the same 1.2025 stop.
March Dollar Index
The Dollar Index was shut yesterday and I am still flat. The Dollar has resistance from 90.55/90.95 where I will be a seller with the same 91.31 stop.
March DAX
Despite the US Futures trading at new all-time highs this morning I still do not like the price action for European Indices especially with Bond yields starting to firm across the globe. I am still flat the DAX and today I will again leave my 14180/14250 sell level unchanged with the same 14315 stop.
March FTSE
Thankfully, we have had no sell levels in the FTSE over the past week. This morning the FTSE is trading at 6740- 300 points higher from where I marked prices last Friday. The FTSE has short-term support from 6650/6710 and I will raise my buy level to this area with a 6595 stop.
Dow Rolling Contract
As I am still short both the S&P and NASDAQ, I will again raise my sell level in the Dow to 31810/32000 with a higher 32125 ‘’Closing Stop’’. Given how overbought the Dow is trading I still do not want to be long the market at this time.
March NASDAQ
I am still short from yesterday morning at a price of 13835. I will continue to look to add to this trade at 13915 while leaving my stop unchanged at a ‘’Closing Price’’ of 14005.
March BUND
Most traders have never experienced a ‘’Bear Market’’ in Bond Markets as Yields have continued to fall since the heady days of 15%+ inflation in the early 1980s. There is such a weight of money invested in Bonds with close to $18 Trillion trading with a negative yield that a reversal can occur at any time. Of course, Central Banks will do their best to prevent this scenario as there is much more money invested in Bond Markets than in Stocks and if we see a further rise in Yields then Pensions will suffer greatly. This morning the 10-Year Treasury is trading at 1.23%. This is a 50% move higher off the 0.80% low in early November. While the markets are due a bounce, the trend has changed and a break and close over 1.50% will likely see a further move higher to 2% over the coming weeks. If Yields rise this high then stocks will become extremely expensive. Yesterday I was stopped out of my latest 175.85 long Bund position at 175.28 and I am now flat. The Bund has strong resistance from 175.65/176.05 and I will be a seller in this area with a 176.41 stop.
Gold Rolling Contract
Gold is unchanged from where I marked prices 24 hours ago and I am still flat. I will continue to be a buyer on any further dip lower to 1788/1800 with the same 1779 stop.
Silver Rolling Contract
No Change as I am still a small buyer from 26.10/26.70 with the same 25.65 stop. If I am taken long I will have a T/P level at 27.10.
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