U.S. Equities fell for a second day as investors pulled back ahead of the Federal Reserve rate decision, U.K. election and Sunday’s tariff deadline. Treasuries slipped. The S&P 500 Index fluctuated for most of the day before ending lower. Trade took centre stage, with investors debating whether China and the Trump administration will reach a meaningful trade deal to avert fresh tariffs. Multiple reports indicated a delay was likely, before administration officials said the outcome depends on how talks progress. The two sides say a partial deal remains within reach, though the contours have not been made clear. Crude rose. In other trade news, Canada, Mexico and the U.S. moved toward an agreement that appeared to have legislative support in each of the countries. Mexico’s Peso was little changed. The Pound rose ahead of a key political poll before a general election dominated by Brexit which takes place tomorrow. The Euro advanced while European bonds drifted lower after French and German economic data beat expectations.
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For anyone following my Platinum Service it made 262 points yesterday and is now ahead by 467 points for December, having made 780 points in November, 1649 points in October, 1620 points in September, 2387 points in August, 1153 points in July, 1346 points in June,1722 points in May, 955 points in April and 1027 points in March. 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
Trade continued to dominate sentiment on equity markets, with the dispute between the world’s two largest economies taking much of the blame for a slowdown in global growth. The spat is overshadowing a spate of central bank meetings this week, including the Federal Reserve gathering today. House Democrats unveiled impeachment charges yesterday afternoon against President Donald Trump.
The S&P 500 declined 0.1% to close at 3,133.
The Dow Jones Industrial Average decreased 0.1% to close at 27,881.
The Stoxx Europe 600 Index closed flat after a volatile session.
The MSCI Asia Pacific Index dipped 0.1%.
Currencies
Here is a summary of the main Changes in F.X. Markets:
The Bloomberg Dollar Spot Index fell 0.1%.
The Euro added 0.2% to close at $1.1085.
The Japanese Yen fell 0.2% to 108.75 per dollar.
Bonds
The yield on 10-year Treasuries rose two basis points to 1.85%, the highest in four weeks.
Germany’s 10-year yield gained one basis point to -0.30%.
Britain’s 10-year yield gained two basis points to 0.78%.
Commodities
Oil slipped, trimming last week’s rally spurred by Saudi Arabia promising significant additional production cuts beyond what was agreed with fellow OPEC+ members.
West Texas Intermediate crude rose 0.6% to $59.32 a barrel.
Gold Futures added 0.3% to $1,469.10 an ounce.
Today on the Economic Front we have no data of note from either the UK or the Euro-Zone. At 12.00 pm we have the U.S MBA Mortgage Application, followed at 1.30 pm by CPI. At 7.00 pm we have the FOMC Rate Decision where rates are expected to be left unchanged. Finally, at 7.30 pm we have Fed Chair Powell’s last press conference for 2019.
December S&P 500
My S&P plan worked well with the market trading the whole of my buy range for a 3121 average buy level before rallying to my 3132 T/P level and I am now flat. Subsequently I emailed my Platinum Members to buy the S&P again at a price of 3125 before the market again rallied to my 3132 T/P level and I am now flat. Where possible I will try to stay flat ahead of the FOMC this evening. My buy level will be from 3115/3128 with a 3107 stop. Despite the S&P closing lower for the last two sessions I still do not want to be short the market at this time as I still believe the market is unbalanced and due a further move higher.
EUR/USD
The Euro is now trading at the same level it was four years ago as volatility has just disappeared. I am still flat the Euro as I look to see if the key 1.1100 resistance area is broken. Today I will move my buy level higher to 1.1010/1.1050 with a 1.0975 stop.
December Dollar Index
Ahead of the FOMC I will again leave my 97.90/98.30 sell level unchanged with the same 98.65 stop.
December DAX
Three times I have been caught out by having a ‘’Stop’’ in the markets so far this month. Personally when I am trading in small size I prefer to wait to see where the market closes before stopping myself out of a position. My DAX view to buy the dip was correct but frustratingly after the DAX traded lower to my second buy level at 12950 before getting stopped out of this position near the low of the day at 12920, the market turned around and rallied almost 200 points into the close which is extremely frustrating. Today I will again look to buy the DAX from 12940/13000 with a 12875 stop.
December FTSE
My FTSE plan worked well with the market trading lower to my 7160 buy level before rallying to my 7195 T/P level and I am now flat. Volatility should pick up in both the Pound and FTSE as the results come in from tomorrow’s election shortly after the polls close at 10.00 pm when we have the ‘’Exit Polls’’. Today I will again look to buy the market from 7140/7185 with a 7110 stop.
Dow Rolling Contract
My Dow plan worked well with the market trading lower to my second buy level at 27780 for a 27858 average long position before rallying to my 27945 T/P level. Subsequently I emailed my Platinum Members to re-buy the Dow at 27800 before the market again rallied to my 27880 T/P level and I am now flat. As long as the Dow does not close below 27650 I am happy to buy the dip. The McClellan Oscillator again closed in positive territory with a +13 print which is encouraging. Today I will be a buyer from 27660/27820 with a 27550 stop.
December NASDAQ
Frustratingly I was stopped out of my 8360 long position bear the low of the day at 8305 before the market turned around and rallied into the close. I am still flat and today I will again look to buy the market on any dip lower to 8270/8320 with a 8230 stop.
March BUND
I am still flat the Bund and today I will raise my buy level slightly to 171.55/171.95 with a higher 171.15 stop.
Gold Rolling Contract
I am still flat Gold and ahead of the FOMC I am reluctant to chase the price of Gold higher and so I will again leave my 1442/1450 buy level unchanged with the same 1435 stop.
Silver Rolling Contract
I am still flat Silver as I continue to be a buyer from 16.10/16.50 with the same 15.70 stop. If I am taken long I will have a T/P level at 16.70.
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