U.S. Equity Markets closed mixed yesterday following a quiet trading session. All eyes are on tomorrow’s April inflation data with economists expecting continued moderation in price growth. This latest look at domestic price growth comes just a week after the Federal Reserve raised rates for the tenth time since last March. A softer inflation reading would provide a major tailwind for the Fed’s decision to pause rate hikes at its June meeting. Political gridlock in Washington could continue to add angst to markets as investors’ concerns grow the closer, we get to June 1 – the date the U.S. is estimated to default on its debt. This week President Joe Biden is set to meet with lawmakers in an attempt to find a solution. Oil prices posted a third consecutive weekly decline for the first time since last November. Concerns over falling demand continue to dominate as investors fear a long-term recession could significantly weaken energy demand. However, the decline did not last long with Oil trading $6 higher than last Thursday’s low print. European Markets closed higher. The Bank of England (“BOE”) is expected to follow in the footsteps of its peers from the ECB and Fed and raise interest rates by 25 basis points on Thursday. The latest reading from the U.K. showed inflation remaining in the double-digits – far above that of the Euro-Zone and U.S. The BOE could be forced to raise rates further than its peers if price gains and a tight labour market do not start to soften. In Asia, overnight Bank of Japan Governor Ueda said inflation expectations have risen and remain at elevated levels. He said that if price target is met in sustainable, stable manner, the BoJ will end YCC. Elsewhere, Oil closed 2.55% higher while Gold rose 0.20% after a quiet trading session.
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For anyone following my Platinum Service it was flat yesterday and is now ahead by 1623 points for May. April saw a gain of 3354 points while March closed with a gain of 6168 points. The Platinum Service made 3164 points in February, 4687 points in January 2054 points in December, 4789 points in November and a record 9619 points last October. Since I started this New Platinum Service in June 2015 it has averaged a monthly gain of over 1900 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 0.05% higher at a price of 4138.
The Dow Jones Industrial Average closed 55 points lower for a 0.17% loss at a price of 33,618.
The NASDAQ 100 closed 0.25% higher at a price of 13,291.
The Stoxx Europe 600 Index closed 0.34% higher.
This morning, the MSCI Asia Pacific closed 0.30% higher.
This morning, the Nikkei closed 1.03% higher at a price of 29,247.
Currencies
The Bloomberg Dollar Spot Index closed 0.2% lower.
The Euro closed 0.3% lower at $1.1001.
The British Pound closed 0.1% lower at 1.2630.
The Japanese Yen fell 0.1% closing at $134.80.
Bonds
Germany’s 10-year yield closed 5 basis points higher at 2.33%.
Britain’s 10-year yield closed 13 basis points higher at 3.78%.
U.S.10 Year Treasury closed 5 basis points higher at 3.49%.
Commodities
West Texas Intermediate crude closed 2.55% higher at $73.16 a barrel.
Gold closed 0.20% higher at $2021.10 an ounce.
This morning on the Economic Front we already had the release of U.K. Halifax House prices which rose 0.1% versus last month’s 1.60% rise. At 9.00 am we have a speech from ECB Member Lane. This is followed by U.S. NFIB Business Optimism Index at 11.00 am. Finally, we have a three-year Note Auction at 6.00 pm.
Cash S&P 500
The S&P consolidated Friday’s aggressive move higher as all eyes turn to Wednesday’s CPI print. Regional Banks remain under pressure despite reassurances from both the Fed and Treasury Secretary Yellen last night. Regional Banks are responsible for 50% of all Commercial Lending in America and 70% of Commercial Real Estate lending. This is a big deal, as they are an important part of the economy. Ten rate hikes from the Fed have been insane as they are not allowing for the lag effect of these rate hikes to filter through the economy. If the S&P continues to melt up from here, we have strong resistance from 4235/4250 where I will be an aggressive seller. Apple shares continue to trade at all-time highs despite falling revenues. Apple has risen over 5% since reporting its earnings after the close on Thursday. Who in their right mind would want to buy both Apple and Microsoft with both companies trading outside the top of their respective Daily Bollinger Bands. However, as I said a few times over the past number of weeks until we break and close below the 50-Day MA it is pointless having a macro short position on board. Today, I will continue to be a buyer on any dip lower to 4100/4117 with a higher 4089 tight ‘’Closing Stop’’. Meanwhile, I will continue to be a small seller from 4160/4175 with the same 4191 ‘’Closing Stop’’.
EUR/USD
This morning the Euro hit my 1.0985 buy level. I am still long with a now lower 1.1040 T/P level. I will add to this position at 1.0920 while leaving my 1.0865 ‘’Closing Stop’’. Unchanged. I still do not want to be short the Euro at this time.
June Dollar Index
I am still flat the Dollar. I will continue to be a buyer on any dip lower to 99.90/100.60. with the same 99.35 ‘’Closing Stop’’.
Cash DAX
No Change. It does not matter what the News as the DAX continue to attract strong buying on any dip. The price action tells us not to be short while the economic backdrop makes its extremely hard to be a buyer. I will now raise my buy level to 15760/15840 with a higher 15685 ‘’Closing Stop’’. The DAX has resistance from 16100/16200 where I will be a small seller with a 16305 ‘’Closing Stop’’.
Cash FTSE
I am still flat as the FTSE is opening unchanged at 7800 this morning. We have support from 7680/7750 where I will be a strong buyer with a 7625 ‘’Closing Stop’’. I still do not want to be short the FTSE at this time.
Dow Rolling Contract
One of the quietest trading sessions for the year to date with little or no price action across the three American Indexes that I cover. The Dow has resistance from 33900/34150 where I will be a small seller with a 34305 ‘’Closing Stop’’. I will now raise my buy level to 33130/33380 with the same 32995 ‘’Closing Stop’’.
Cash NASDAQ 100
New highs in both Apple and Microsoft saw the NDX lead yesterday’s small gains. closing higher by 0.25%. The NDX has resistance from 13380/13530 where I will be a small seller with a 13605 tight ‘’Closing Stop’’. I do not want to be long the NDX at this time.
June BUND
Friday’s sell-off in the Bund continued yesterday. This move lower saw my 135.50 buy level triggered. I am still long with a now lower 136.10 T/P level. I will add to this position at 134.70 with the same 133.95 ‘’Closing Stop’’.
Gold Rolling Contract
No Change. I am still flat as Gold continues to absorb last Friday’s $50 fall. I will not chase the market higher leaving my 1980/1995 buy level unchanged with the same 1969 ‘’Closing Stop’’.
Silver Rolling Contract
No Change. I am still long from Friday at 25.40 with the same 26.20 T/P level. I will continue to add to this position at 24.60 while leaving my 23.85 ‘’Closing Stop’’ unchanged.
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