U.S Indices had a strong start to the week, following the lead from European Markets which surged after Italy and France both reported slowdowns in the number of daily Coronavirus infections as the French Health Minister rejected the idea of new economic lockdown measures. The British government was said to be preparing lockdown measures across the northern part of the country and possibly London, closing pubs, bars, and restaurants for at least two weeks. European Union and U.K. negotiators are scheduled to begin their final round of post-Brexit trade deal talks today in Brussels. The ECB’s Pablo Hernandez de Cos said the central bank should maintain its extensive stimulus, and should not hesitate if more is needed. Equity Markets followed Friday’s move higher with more gains. After sharply selling off early last week (and entering a correction on an intraday basis), markets have seemingly resumed their march higher. Stimulus optimism rose again, after Speaker of the House Nancy Pelosi (D-CA) said Coronavirus stimulus negotiations are ongoing with Treasury Secretary Steven Mnuchin and she is hopeful the two can strike a deal. In terms of economic data, the Dallas Federal Reserve Manufacturing survey rose above estimates in September, marking the fourth straight month of increases, as it reached the highest level in nearly two years. The Food and Drug Administration (“FDA”) halted Inovio’s (INO) Coronavirus vaccine trial until the drug company answered additional questions. But Inovio said the halt was not due to any adverse effects from the vaccine. Elsewhere, Gold closed 1% higher while Oil rebounded 0.77% on Dollar weakness.
To mark my 2150th 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 lost 50 points yesterday and is now ahead by 2622 points for September, having made 2383 points in August, 3128 points in July, 2580 points in June, 2456 points in May, 4773 points in April, an incredible 9264 points in March, 2223 points in February and 2142 points in January. 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 1.61% higher at a price of 3351.
The Dow Jones Industrial Average closed 410 points higher for a 1.51% gain at a price of 27,584.
The NASDAQ 100 closed 1.91% higher at a price of 11,364.
The Stoxx Europe 600 Index closed 1.2% lower.
The MSCI Asia Pacific Index rose 0.5%%.
This morning the Nikkei closed 0.12% higher at 23539
Currencies
The Bloomberg Dollar Spot Index closed 0.3% higher.
The Euro closed 0.2% higher at $1.1654.
The British Pound closed 0.8% higher at $1.2828.
The Japanese Yen closed unchanged at 105.54 per dollar.
Bonds
The yield on 10-year Treasuries closed one basis point higher at 0.66%.
Germany’s 10-year yield closed one basis point lower at -0.53%.
Britain’s 10-year yield closed unchanged at 0.20%.
Commodities
The Bloomberg Commodity Index rose 0.5%.
West Texas Intermediate closed 0.7% higher at $40.15 a barrel.
Gold closed 1% higher at $1874 an ounce.
This morning on the Economic Front we have UK Mortgage Approvals and Net Lending to Consumers at 9.30 am. This is followed at 10.00 am by Euro-Zone Economic Sentiment Indicator and German CPI at 1.00 pm. Next, we have U.S Trade Balance and Wholesale Inventories at 1.30 pm, followed by Consumer Confidence at 3.00 pm. Finally, we have speeches from Fed Members, Clarida, Quarles and Williams at 3.40 pm, 5.50 pm and 6.00 pm respectively.
December S&P 500
The S&P surged yesterday and in the process left a massive ‘’Open Gap’’ from Friday’s 3286 Chicago close to yesterday’s 3322 intra-day low. The S&P has now rallied 155 Handles since Friday’s lunchtime low at 3206 as yet again anyone shorting the market got slammed. This move higher saw the S&P trade the whole of my sell range for a 3329 average short position before stopping me out of this position into the close at a price of 3351 and I am now flat. The S&P managed to close above it’s 50 Day Moving Average while the McClellan Oscillator closed in positive territory at +9. Despite the massive rally since Friday lunchtime I am reluctant to chase the S&P higher as this could be another false move to trap bulls. The S&P needs to break and close over 3410 for me to turn bullish. Today, I will be a seller from 3358/3373 with a 3385 stop. I will be an aggressive seller from 3390/3405 with a wider 3421 stop. Given the extent of the ‘’Open Gap’’ left from Friday’s close I would expect some if not all of this ‘’Gap’’ to be filled over the coming days. As a result I will now raise my buy level to 3305/3320 with a 3289 stop.
EUR/USD
The rally in Equity Market saw the Euro trade higher which enabled me to cover my late Friday 1.1615 long position at my 1.1655 T/P level and I am now flat. I will look to buy the Euro again from 1.1570/1.1620 with a 1.1525 stop. The Euro has short-term resistance from 1.1730/1.1770 where I will be a seller with a 1.1815 stop.
December Dollar Index
No Change. I am still a buyer from 93.60/94.00 with the same 93.25 stop. I will continue to be a seller from 95.10/95.50 with a 95.85 tight stop.
December DAX
An incredible 540 point rally in the DAX since Friday morning’s 12321 low print as thankfully we had no sell level in this market yesterday. The German Government have been extremely supportive of the German Economy and once a vaccine is found, businesses should thrive going forward given the left of support they have received. I am still flat and today I will raise my buy level to 12600/12680 with a higher 12515 stop.
December FTSE
I am still flat and today I will raise my buy level slightly to 5795/5855 with a higher 5745 stop.
Dow Rolling Contract
Initially, the Dow led yesterday’s US Markets higher as the market closed above it’s 50-Day Moving Average with a gain of 1.51%. The Dow has now rallied over 1000 points since Friday’s low on little or no news. I have said countless times the Fed will do everything in their power to prevent a crash ahead of the U.S Presidential Election on November 3rd. The Dow traded the whole of my sell range and I am now short at an average rate of 27580. I will raise my T/P level on this position to 27530 while leaving my stop unchanged at 27785. If any of the above levels are hit I will be back with a new update for my Platinum Members.
December NASDAQ
My NASDAQ plan worked well with the market trading higher to my 11300 average sell level before selling off to my too tight 11260 T/P level. The NASDAQ traded heavy for most of yesterday before a late surge saw the market close with a gain of 1.91%. This second move higher saw me go short again at an average price of 11380 as emailed earlier to my Platinum Members. I will have a T/P level on this position at 11310 while leaving my stop unchanged at 11525. Meanwhile, I will leave my 10970/11070 buy level unchanged with the same 10895 stop. If I am taken long I will have a T/P level at 11140.
December BUND
No Change as I am still a buyer from 173.55/174.05 with the same 173.15 stop.
Gold Rolling Contract
My Gold plan worked well with the market trading lower to my 1845 buy level shortly after I posted before rallying to my 1854 T/P level and I am still flat. Gold has support from 1840/1854 where I will be a small buyer with a 1829 stop.
Silver Rolling Contract
I am still flat and I will now raise my buy level to 22.30/22.90 with a higher 21.65 stop.
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