U.S Indices started the week on a positive note as Stimulus optimism boosted markets. President Donald Trump called on Congress to come together and pass additional Coronavirus-stimulus legislation, before he left hospital after a three- night stay for treatment and promises to hit the campaign trail soon. Speaker of the House Nancy Pelosi said lawmakers were making progress in negotiations on another aid bill. White House Chief of Staff Mark Meadows echoed this later in the morning, saying that U.S. lawmakers continue to negotiate over the next round of relief. Meadows added that there was potential for a deal as long as politics don’t get in the way again. Economic data were also positive. ISM Non-Manufacturing beat estimates in September, in another positive sign for the economic recovery. The NASDAQ 100 led the gains, closing 2.25% higher. The European Union and the U.K. agreed to increase efforts to close the gap on differences in post-Brexit trade agreement negotiations, hoping for a deal by the end of October. Italian Health Minister Roberto Speranza said the government was preparing to introduce new measures to limit social gatherings in an effort to contain the recent Coronavirus resurgence. Euro-Zone Retail Sales rose more than expected in August, signalling that consumer spending continues to accelerate. Euro-Zone Final Services PMI for September came in above the initial reading, indicating the economic recovery is gaining momentum. Elsewhere, Oil surged 6.23%, as strong economic data sparked optimism on the economic recovery, while Gold rose 0.56% 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 made 220 points yesterday and is now ahead by 621 points for October, having made 3042 points in September, 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
I have a YouTube Channel which contains recent interviews I have given This can be viewed by clicking HERE Please subscribe to this for new interview notification
Equities
The S&P 500 closed 1.8% higher at a price of 3408.
The Dow Jones Industrial Average closed 465 points higher for a 1.68% gain at a price of 28,148.
The NASDAQ 100 closed 2.25% higher at a price of 11,509.
The Stoxx Europe 600 Index closed 1.2% higher.
The MSCI Asia Pacific Index rose 0.5%%.
This morning the Nikkei closed 0.52% higher at a price of 23,433
Currencies
The Bloomberg Dollar Spot Index closed 0.3% lower.
The Euro closed 0.4% higher at $1.1785.
The British Pound closed 0.6% higher at $1.2985.
The Japanese Yen closed 0.1% higher at 105.70 per dollar.
Bonds
The yield on 10-year Treasuries closed six basis points higher at 0.76%.
Germany’s 10-year yield closed three basis points higher at -0.50%.
Britain’s 10-year yield closed two basis points higher at 0.28%.
Commodities
The Bloomberg Commodity Index closed 0.9% higher.
West Texas Intermediate closed 6.23% higher at $39.23 a barrel.
Gold closed 0.5% higher at $1904 an ounce.
This morning on the Economic Front we already had the release of German Factory Orders for August which rose 4.5% versus +2.8% expected. At 9.30 am we have UK Markit Construction PMI and this is followed at 1.30 pm by U.S Trade Balance. Finally, we have the JOLTS Job Openings at 3.00 pm, followed by a virtual speech from Fed Chairman Powell at 3.40 pm.
December S&P 500
The S&P surged yesterday, closing 50 Handles higher with 90.7% of the 500 stocks closing in positive territory as yet again we have left another ‘’Open Gap’’ from Friday’s Chicago Cash closing at 3348 to yesterday’s intra-day low of 3366. This aggressive move higher saw the S&P close above its 50 Day Moving Average (3355 for the December Contract) while the McClellan Oscillator had a strong reading, closing at +138. The theme since the March 23 lows has been to buy every dip as the Central Banks and Governments will not allow these markets fall, not matter what the news. The S&P needs another Stimulus to maintain momentum as it is not able to do this on its own. Yesterday’s move higher has me short the S&P at a price of 3382. I emailed my Platinum Members that I will only add to this position at a price of 3402 with the same 3412 closing stop. I will now raise my T/P level on this position to 3375 and if any of the above levels are hit I will be back with a new update for my Platinum Members.
EUR/USD
The Euro just missed my initial 1.1805 sell level and I am still flat. As I am long the Dollar Index I will now raise my Euro sell level to 1.1820/1.1870 with a higher 1.1905 tight stop. The Euro has support from 1.1690/1.1730 and I will now raise my buy level to this zone with a 1.1655 stop.
December Dollar Index
The Dollar traded lower to my 93.45 buy level. I am still long and I will continue to add to this position at 93.05 with the same 92.65 stop. I will now lower my T/P level to 93.70 and if any of the above levels are hit I will be back with a new update for my Platinum Members.
December DAX
The DAX never came close to yesterday’s buy level and I am still flat as thankfully we had no sell level in this market over the past few trading sessions. I will now raise my buy level to 12630/12700 with a higher 12565 stop.
December FTSE
With Cable back trading a $1.30, the FTSE is struggling to gain any upward momentum as yet again the market traded in a narrow range over the past 24 hours. I am still flat and given the strength of Sterling I am reluctant to chase the market higher. Therefore, I will leave my 5790/5850 buy level unchanged with the same 5715 stop.
Dow Rolling Contract
My Dow plan worked well yesterday but you had to be quick. Shortly after the Dow traded higher to my 27980 sell level we sold off to my 27880 revised T/P level. Subsequently I sold the Dow again at a price of 28060 before covering this trade at 28020 and I am still flat. Yesterday was a solid up-day for the Dow with all 30 stocks closing higher. However Total Stock Volume was the lowest since August 28. The Dow ha support from 27730/27930 where I will be a buyer with a 27595 stop. My only interest in selling the Dow today is on a further rally to 28350/28500 with a 28625 tight stop.
December NASDAQ
My NASDAQ plan worked well with the market hitting my 11480 sell level just before the closing before thankfully selling off to my 11420 T/P level overnight and I am now flat. The NASDAQ has resistance from 11600/11700 where I will again be a seller with a 11805 stop. Given the 2.25% rally yesterday, I will now raise my buy level to 11250/11350 with a higher 11145 stop.
December BUND
Finally, we saw a small sell-off in the Bund which enabled me to cover last Thursday’s 174.60 short position at my 174.40 T/P level and I am now flat. This morning the Bund is trading at 174.25. We have resistance from 174.70/175.20 where I will be a seller with a 175.55 stop. I still do not want to be long the Bund at this time.
Gold Rolling Contract
The boring sideways price action in Gold continues and I am still flat. I will now raise my buy level slightly to 1860/1872 with a higher 1849 stop.
Silver Rolling Contract
I am still flat and today I will raise my buy level to 23.30/23.90 with a higher 22.65 stop.
Recent Comments