U.S. Equity Markets started the week in positive fashion, led by the Dow’s 1.87% gain as yet again one short position after another was stopped out. It was a relatively quiet day, with only COVID-19 making waves in the markets. National Institute of Allergy and Infectious Diseases Director Dr. Anthony Fauci said initial reports on the COVID-19 Omicron variant’s severity are encouraging, but more data is needed. This helped ease some of the recent concerns over the variant and how it could impact economic activity going forward. This news spurred a rally in the reopening stocks – like travel and entertainment names – as optimism increased. While markets were up today, Omicron will continue to be a market driver until we get more information on the variant. Within the S&P 500, all 11 sectors finished higher. European Markets closed higher. Sentix’s Euro-Zone investor confidence figures for December were stronger than expected, as the expectations for economic activity six months from now increased. British Deputy Prime Minister Dominic Raab said the government has no plans to introduce more COVID-19 restrictions around the Christmas holiday season. German Factory Order data for October disappointed, as demand for automobiles, engineering, and metal fabrication products eased. In Asia, The People’s Bank of China is expected to ease monetary policy following recent comments from Premier Li Keqiang that the government would support small business. Bank of Japan officials were said to see the spread of the COVID-19 Omicron strain as a reason to leave current pandemic-induced monetary support in place. The Bank of Korea said it expects the global economy to experience steady growth next year as supply-chain bottlenecks ease, while warning the Omicron variant posed risks. The Reserve Bank of Australia is expected to leave current policy unchanged when it meets later this week due to uncertainty around the growth outlook. Elsewhere, Oils surged 5.39%, along with other risk assets, while Bitcoin fell 9% on no apparent news.
To mark my 2450th 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 160 points yesterday, and is now ahead by 95 points for December, having made 2466 points in November, 1028 points in October, 2866 points in September, 1543 points in August, and 996 points in July. The Platinum Service made 1366 points in June, 1439 points in May, 1244 points in April, having ended March with an impressive gain of 3769 points, 3286 points in February, 2077 points in January, and 2273 points last December. 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 1.17% higher at a price of 4591.
The Dow Jones Industrial Average closed 646 points higher for a 1.87% gain at a price of 35,227.
The NASDAQ 100 closed 0.85% higher at a price of 15,846.
The Stoxx Europe 600 Index closed 0.7% higher.
Yesterday, the MSCI Asia Pacific Index fell 0.2%.
Yesterday, the Nikkei closed 0.36% lower at a price of 27,927.
Currencies
The Bloomberg Dollar Spot Index closed 0.3% higher.
The Euro closed 0.25% lower at $1.1281.
The British Pound closed 0.2% higher at 1.3258.
The Japanese Yen fell 0.6%, closing at $113.51.
Bonds
Germany’s 10-year yield closed two basis points higher at -0.37%.
Britain’s 10-year yield closed two basis points higher at 0.76%.
US 10 Year Treasury closed eight basis points higher at 1.44%.
Commodities
West Texas Intermediate crude closed 5.39% higher at $72.05 a barrel.
Gold closed 0.21% lower at $1,778.20 an ounce.
This morning on the Economic Front we have U.K. Manufacturing Output at 7.00 am. This is followed by the German ZEW Survey and Euro-Zone GDP and Employment Change at 10.00 am. At 1.30 pm, we have U.S. Trade Balance, Non-Farm Productivity and Unit Labour Costs. Finally, we have Consumer Credit at 8.00 am.
December S&P 500
My S&P plan worked well but you had to be quick as the market hit my initial 4570 sell level before trading lower to my 4558 T/P level and I am now flat. Subsequently, we hit an intra-day high of 4610 before selling off 20 Handles into the close. The S&P rallied over 110 Handles since 8.30 pm last Friday, and is now well above its 50-Day Moving Average (4547). The S&P has strong resistance from 4615/4630 where I will be a small seller with a 4642 ‘’Closing Stop’’. I will now raise my buy level to 4540/4555 with a tight 4528 ‘’Closing Stop’’.
EUR/USD
No Change. I am still a buyer from 1.1190/1.1240 with the same 1.1145 stop. I will again lower my sell level to 1.1350/1.1400 with a tight 1.1441 stop.
March Dollar Index
I have now rolled to the March Contract which trades at a tiny 2- point Discount to the December Contract. The March Contract has resistance from 96.65/97.05 where I will be a seller with a 97.51 stop. I still do not want to be long the Dollar at this time.
December DAX
The DAX fell shy of my buy 14970 buy level before rallying above 15400 and I am still flat. I will now raise my buy level to 15150/15230 with a 15075 stop. If I am taken long I will have a T/P level at 15285.
December FTSE
The weak Pound again helped the FTSE to rally strongly yesterday, closing above the key 7180 resistance level. I will now raise my buy level to 7135/7185 with a 7080 stop.
Dow Rolling Contract
The -218 MO print on Friday saved me yesterday as it prevented me from having any sell-level in the Dow. The Dow hit a high at 35400, almost 1200 points higher than where we were last Friday at 8.30 pm. Having tested the 50 Day MA (35300) the Dow closed just below this key resistance level. We have resistance from 35420/35600 where I will be a small seller with a 35755 ‘’Closing Stop’’. I will now raise my buy level to 34600/34800 with a 34445 ‘’Closing Stop’’.
December NASDAQ
My long 15750 NDX position from Friday worked out as the market rallied to my 15790 T/P level and I am now flat. Yesterday’s rally saw the NDX close again above its 50 Day MA (15636) which should act as support on any further test. I will be a small buyer from 15580/15680 with a 15445 ‘’Closing Stop’’. If I am taken long I will have a T/P level at 15760.
March BUND
No Change. I am still a seller from 174.90/175.50 with a higher 175.81 stop.
Gold Rolling Contract
The boring sideways action in Gold continues and I am still flat. I do not want to chase the market higher, leaving my 1737/1752 buy level unchanged with the same 1725 stop.
Silver Rolling Contract
I am still long at 22.75. I will now lower my T/P level to 22.85 as I have this position too long. I will also raise my stop to 21.85.
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