U.S. Equity Markets closed higher for the seventh consecutive trading session as both the Dow and S&P closed at new all-time highs. Markets rose to new all-time highs on a relatively quiet day. On Sunday, Treasury Secretary Janet Yellen said that inflation from the new stimulus bill would be manageable, adding that the Fed has tools to combat any pickup in inflation. She also said the focus should be on supporting the workforce. There was also optimism over the economic rebound. A jump in air travel was the main reason cited, as air passenger traffic hit the highest level in a year. And former FDA commissioner Dr. Scott Gottlieb said that another spike in cases in the U.S. in “unlikely,” adding to the hopes for a swift return to normal with vaccinations. Economic data were also positive, with the New York Fed’s Empire Manufacturing Survey rebounding in February and topping estimates. The big event this week remains the Federal Reserve’s policy decision tomorrow. All eyes will be on Fed Chair Jerome Powell’s press conference for any clues on inflation. European Markets closed mixed. Italian Health Minister Roberto Speranza said that coronavirus cases in the country should begin to fall by late spring, as the country continues the rollout of COVID-19 vaccines. AstraZeneca (AZN) said there was no evidence of increased blood clot risk from its COVID-19 vaccine. But that did not stop countries from halting the vaccine. Yesterday, the Netherlands, Ireland, France, and Germany all stopped using AZN’s vaccine. Bank of England Governor Andrew Bailey said the central bank is not out of firepower in supporting the economic recovery. European Union coronavirus vaccinations rose to 49.2 million yesterday, with a daily average of 1.26 million doses administered over the last week. Elsewhere, Oil closed 0.41% lower on little news while Gold rose 0.58% after investment manager VanEck said that the precious metal could soon hit $3,000.
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For anyone following my Platinum Service it made 35 points yesterday and is now ahead by 2078 points for March, having closed February with an impressive gain of 3286 points, having made 2077 points in January, 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 0.65% higher at a price of 3969.
The Dow Jones Industrial Average closed 174 points higher for a 0.53% gain at a price of 32,953.
The NASDAQ 100 closed 1.12% higher at a price of 13,082.
The Stoxx Europe 600 Index closed 0.3% higher.
The MSCI Asia Pacific Index rose 0.3%.
This morning the Nikkei closed 0.52% higher at a price of 29,921.
Currencies
The Bloomberg Dollar Spot Index closed 0.1% higher.
The Euro closed 0.2% lower at $1.1926.
The British Pound closed 0.4% lower at $1.3858.
The Japanese Yen closed 0.1% lower at 109.14 per dollar.
Bonds
Germany’s 10-year yield closed three basis points lower at -0.33%.
Britain’s 10-year yield closed three basis points lower at 0.80%.
US 10 Year Treasury closed one basis points lower at 1.61%.
Commodities
West Texas Intermediate crude closed 0.41% lower at $62.83 a barrel.
Gold closed 0.58% higher at $1,735.80 an ounce.
This morning on the Economic Front we have the German and Euro-Zone ZEW Survey at 10.00 am. This is followed at 12.30 pm by U.S Retail Sales and the Import/Export Price Index. At 1.15 pm we have Capacity Utilisation and Industrial Production. Finally, at 2.00 pm we have Business Inventories and the NAHB Housing Market Index.
June S&P 500
I have now switched to the June Contract which trades at a 10 Handle Discount to the March Contract. The S&P again missed my March Buy level before surging almost 40 Handles into the close. This move higher saw me go short the June Contract at a price of 3960. I will add to this trade at 3975 with a 3987 ‘’Closing Stop’’. My T/P level on this position will be at 3948. The June Contract has support from 3910/3925 where I will be an aggressive buyer with a 3899 ‘’Closing Stop’’. If I am taken long I will have a T/P level at 3938.
EUR/USD
I am still flat the Euro and today I will now lower my buy level slightly to 1.1850/1.1890 with a lower 1.1815 stop. If I am taken long I will have a T/P level at 1.1925. I still do not want to be short the Euro at this time.
June Dollar Index
I am still flat and I will now raise my sell level to 92.20/92.70 with a 93.05 stop.
June DAX
I have now rolled to the June Contract which trades at a small 8 point premium to the March Contract. I will continue to be a buyer on any dip lower to 14280/14360 with a 14215 stop. The DAX has resistance from 14605/14705 where I will be a small seller with a 14775 stop.
June FTSE
I have now rolled to the June Contract where the market trades at a 55 point Discount to the June Contract. The fact that Sterling is weak this morning should support the FTSE price. The June Contract has support from 6630/6680 where I will be a buyer with a 6285 stop. Ahead of the FOMC tomorrow, I do not want to be short the FTSE at this time.
Dow Rolling Contract.
I was lucky yesterday as the Dow traded lower to my 32680 T/P level on Friday’s 32730 average short position before the market rallied over 300 points into the close and I am still flat. The RSI on the Dow closed over 70 last night. Each time we see a test of 70 the market sells-off and this goes with my view that once we get the FOMC and Quadruple Expiration out of the way this week, we should finally have a meaningful move lower. Yesterday the VIX reversed earlier gains to close at 20 which is the lowest close in over a year before we saw the 35% Dow sell-off in February/March 2020. The Dow has resistance from 33050/33250 where I will again be a seller with a 33375 ‘’Closing Stop’’. We have short-term support from 32050/32230 where I will be a buyer with a 31895 ‘’Closing Stop’’.
June NASDAQ
I have now switched to the June Contract which trades at a 10 points Discount to the March Contract. Overnight the March Contract traded the whole of my sell range for a 13100 average short position. With the March Contract expiring on Friday, I have now exited this short position here for a small loss at 13115 and I am still flat. The June Contract has resistance from 13180/13250 where I will again be a seller with a 13345 ‘’Closing Stop’’. I still do not want to be long the NASDAQ at this time.
June BUND
The BUND never came close to my buy level before rallying 50 points and I am still flat. I will now raise my buy level to 170.75/171.15 with a higher 170.31 stop.
Gold Rolling Contract
I am still flat and today I will raise my buy level to 1697/1712 with a 1685 stop.
Silver Rolling Contract
Silver traded sideways for most of yesterday and I am still flat. I will continue to be a buyer on any dip lower to 24.70/25.40 with the same 23.95 wider stop.
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