Equity Markets advanced as major economies moved toward reopening and policy makers in Japan and Europe sought to reduce pressure on credit markets. The US Dollar weakened, and Oil took another dive. The S&P 500 Index climbed to its highest close since March 10, led by financial companies after a surprisingly good earnings report from Deutsche Bank and amid continued talk of easing lockdowns. The Stoxx Europe 600 Index also rose after Covid-19 deaths slowed in Spain, Italy and France and the countries signalled tentative moves to reopen their economies. The misery for West Texas Oil continued and futures in New York traded near $13 a barrel amid a glut of crude. Treasury yields rose amid a report that European regulators will provide banks with a fourth round of capital relief and as the Bank of Japan ratcheted up its stimulus measures with plans to buy as many government bonds as needed. With the S&P 500 Index up more than 25% since its lows in March but still down more than 10% this year, investors are waiting on a slew of corporate earnings this week and forecasts on what’s to come, with reports due from Amazon.com Inc., Barclays Plc and Samsung Electronics Co. For now, traders are focused on the positive, with all 11 of the S&P 500’s major subgroups gaining on the day. Stocks held gains throughout the day amid good news on the fight against the pandemic. A Coronavirus vaccine could be available as early as this year, according to a coalition funding nine projects. U.S. cases rose at the slowest pace this month, while the U.K. reported the lowest daily increase in deaths since March. New York recorded 337 deaths, down sharply from daily peaks earlier this month.
To mark my 2050th 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 360 points yesterday and is now ahead by 4608 points for April, having made an incredible 9264 points in March, 2223 points in February, 2142 points in January, 818 points in December, 780 points in November, 1649 points in October, 1620 points in September and 2387 points in August 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 advanced 1.4%, closing at a price of 2878.
The Dow Jones Industrial Average rose 350 points to close at 24,133.
The NASDAQ 100 advanced 0.6% to close at 8837
The Stoxx Europe 600 Index climbed 1.8%.
The MSCI Asia Pacific Index advanced 2%.
Currencies
Here is a summary of the main Changes in F.X. Markets:
The Bloomberg Dollar Spot Index fell 0.4%.
The Euro rose 0.1% to $1.0832.
The Japanese Yen appreciated 0.3% to 107.24 per dollar.
Bonds
The yield on 10-year Treasuries increased six basis points to 0.66%.
Germany’s 10-year yield climbed two basis points to -0.45%.
Britain’s 10-year yield advanced one basis point to 0.301%.
Commodities
The Bloomberg Commodity Index decreased 1.1%.
West Texas Intermediate crude dropped 23% to $13.11 a barrel.
Gold fell 0.8% to $1,716.15 an ounce.
This morning on the Economic Front we have the ECB Lending Survey at 9.00 am and this is followed at 11.00 am by the UK CBI Distributive Trades Survey. At 1.30 pm we have U.S Trade Balance and Wholesale Inventories. Finally, at 3.00 pm we have Consumer Confidence and the Richmond Fed Manufacturing Index.
June S&P 500
My S&P plan worked well with the S&P trading higher to my 2880 sell level before having a small sell-off into the close which enabled me to cover this position at 2869 and I am now flat. The S&P closed comfortably ahead of its 50-Day Moving Average which comes in at 2798 this morning. This level should act as strong support on any subsequent test over the coming days. I was brought up on the mantra that never fight the Central Banks as they may loose a few battles but will eventually win the war. The level of Central Bank intervention across the globe is staggering and makes it impossible to be short the market. As I have said countless times over the past few years the Central Banks will do everything in their power to prevent an all-out crash. The level of debt is staggering and will not end well but for now nobody is focusing on this. The 200- Day Moving Average is at 3007 and there is every chance that this level will be tested before Phase 3 commences. Today I will move my buy level higher to 2832/2852 with a 2815 stop. My only interest in selling the market is from 2935/2960 with a 2975 stop.
EUR/USD
No Change as I am still a seller on any rally higher to 1.0880/1.0930 with the same 1.0955 stop. The Euro ha strong support from 1.0710/1.0760 where I will be a buyer with a 1.0675 stop.
June Dollar Index
I am still flat the Dollar and today I will move my buy level higher to 99.15/99.75 with a higher 98.70 stop.
June DAX
The DAX continues to build value above 10200. I will now raise my buy level to 10350/10470 with a 10265 stop. I still do not want to be short the market at this time.
June FTSE
No Change as I am still a small seller from 5895/5975 with the same 6025 stop. The FTSE is the one Index that is struggling and caution is warranted here as this was the first Equity Index to top back in early January. As a result I still do not want to be long the FTSE at this time.
Dow Rolling Contract
The Dow has closed higher for four consecutive trading sessions. While the S&P carried to a new recovery high at 2888, the Dow remains below its April 17, 24264 intra-day high, creating an inter-market non-confirmation. I am not worried about this as I still expect the Dow to trade higher to the 25000/25550 resistance area over the coming days. Yesterday the Dow finally joined both the NASDAQ and S&P by closing over its 50-Day MA (23869). Today I will be a buyer on any dip lower to 23730/23930 with a 23595 tight stop. I will be an aggressive seller from 25050/25300 with a 25450 stop.
June NASDAQ
Overnight the NASDAQ traded lower to my 8780 buy level before rallying to my revised 8830 T/P level as emailed to my Platinum Members earlier this morning and I am now flat. Today I will again be a buyer on any dip lower to 8720/8780 with a 8655 stop.
June BUND
I am still flat the Bund and today I will lower my sell level to 172.95/173.45 with a lower 173.80 stop. I still do not want to be long the Bund at this time.
Gold Rolling Contract
My Gold plan worked well with the market trading lower to my 1696 buy level earlier this morning before hitting my 1703 T/P level just as I go to press and I am now flat. Gold has strong support from 1668/1680 where I will again look to buy the market with a 1659 stop.
Silver Rolling Contract
Early this morning Silver traded lower to my 14.90 buy level. I am still long and I will now lower my T/P level on this position to 15.10. I will raise my stop to 14.65 and if any of the above levels are hit I will be back with a new update for my Platinum Members.
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