U.S. Equity Markets finished Tuesday higher after a late rally led by the NASDAQ 100 which ended yesterday’s session with a gain of 0.88%. Markets finished higher after a fairly uneventful day that lacked major macroeconomic catalysts. Fed speak maintained its stance of higher interest rates for longer, with no indication of pausing anytime soon. Treasury Secretary Janet Yellen is reportedly committed to staying at her post at the White House’s request in December. The latest National Federation of Independent Business’ (“NFIB”) Small Business Optimism Index for December showed the second-lowest figure since 2013, with expectations for the economy and earnings on the decline. Looking ahead, investors are playing a waiting game for new Consumer Price Index (“CPI”) data from the U.S. Bureau of Labour Statistics on Thursday and the University of Michigan Survey of Consumers’ inflation expectations and banking giants’ earnings on Friday. Within the S&P 500 Index, 10 of the 11 sectors finished higher. European Markets closed in the red. Euro-Zone Markets finished lower on the heels of multiple officials’ comments throughout the region regarding the 2023 outlook on inflation and economic growth. Bank of England Chief Economist Huw Pill said inflation pressures may be easing amid a weakening labour market, which could pave the way for a rate-policy pivot. In France, Prime Minster Élisabeth Borne unveiled a pension reform bill that could test the current government’s reach during trying economic times. Spain is set to propose to Brussels the removal of natural gas from the European wholesale market. Investors are still purchasing low on the Euro despite its mild recovery over the last three months against the Dollar. Goldman Sachs is now reporting that it does not expect a recession for the region in 2023. In Asia, Markets finished mixed on conflicting trading signals from the U.S. and lack of significant regional news. Regional focus remains on China’s economic support measures for the property market and larger economy. Chinese state media reported that many parts of the country are already past their peak COVID-19 infections, with cases declining in Beijing and other major cities. In Japan, the hotter-than-expected Tokyo core CPI data came in at a 40-year high, while household spending unexpectedly declined. Elsewhere, Oil closed flat while Gold rose 0.21%.
To mark my 2700th 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 375 points yesterday and is now ahead by 1918 points for January, after finishing December with a gain of 2054 points. November ended with a gain of 4789 points, while finishing October with a record gain of 9619 points, making 6660 points in September, after closing August with a gain of 2228 points, having made 2660 points in July, following a gain of 3371 points in June. The Service made 3651 points in May, after making 762 points in April, following a gain of 5883 points in March. The Platinum Service made an impressive 5324 points in February, after ending January with a gain of 3878 points, more than making up for December’s 932 points loss. 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 0.70% higher at a price of 3919
The Dow Jones Industrial Average closed 196 points higher for a 0.56% gain at a price of 33,704.
The NASDAQ 100 closed 0.88% higher at a price of 11,205.
The Stoxx Europe 600 Index closed 0.59% lower.
Yesterday, the MSCI Asia Pacific rose 0.7%.
Yesterday, the Nikkei closed 0.78% higher at a price of 26,175
Currencies
The Bloomberg Dollar Spot Index closed 0.2% higher.
The Euro closed 0.1% lower at $1.0731.
The British Pound closed 0.2% lower at 1.2148.
The Japanese Yen fell 0.2% closing at $132.18.
Bonds
Germany’s 10-year yield closed 6 basis points higher at 2.28%.
Britain’s 10-year yield closed 3 basis points higher at 3.56%.
U.S.10 Year Treasury closed 9 basis points lower at 3.62%.
Commodities
West Texas Intermediate crude closed 0.05% higher at $75.11 a barrel.
Gold closed 0.21% higher at $1874.10 an ounce.
This morning on the economic front we have no data of note from either the Euro-Zone or U.K. At 12.00 pm we have U.S. MBA Mortgage Applications. Finally, we have a 10 Year Treasury Auction at 6.00 pm.
Cash S&P 500
Despite Monday’s ugly reversal in the S&P, my strategy is still to be a buyer of dips unless we break and close below 3790. Yesterday’s plan worked well with the market hitting my 3874 buy level before rallying to my 3894 T/P level and I am still flat. The S&P had a nice rally in the last 30 minutes of trading, helping the S&P to close above its 50 Day Moving Average (3907). This level should now act as strong support on any initial test. Today, my buy level will be from 3893/3910 with a 3879 ‘’Closing Stop’’. I still do not want to be short the market at this time.
EUR/USD
No Change. I am still a strong buyer on any dip lower to 1.0610/1.0680 with the same 1.0545 ‘’Closing Stop’’. Given the price action, I still do not want to be short the Euro at this time.
March Dollar Index
My latest 102.70 long position worked well as the Dollar rallied to my 103.15 T/P level and I am now flat. This morning, the Dollar is trading slightly lower at 102.95. We have short-term support from 102.00/102.60 where I will again be a buyer with the same 101.55 ‘’Closing Stop’’.
Cash DAX
I am still flat as the DAX just missed yesterday’s sell range ahead of the New York close. The DAX is severely overbought. Ahead of tomorrow’s CPI I will again raise my sell level to 14910/14990 with a higher 15075 ‘’Closing Stop’’.
Cash FTSE
I am still flat the FTSE. I will now raise my buy level to 7610/7670 with a higher 7555 ‘’Closing Stop’’.
Dow Rolling Contract
Unfortunately, the Dow missed my 33300-buy level by 40 points before having a nice 350 point rally into the close. I will now raise my buy level to 33300/33550 with a higher 33095 ‘’Closing Stop’’. I still do not want to be short the Dow at this time.
Cash NASDAQ 100
Buying the dip on the NDX is continues to work well. After the market hit my 11030 buy level before lunch, we had a nice rally to my 11160 T/P level and I am still flat. With the S&P closing above its 50 Day Moving Average, it should see similar price action in the NDX where its 50 DAY MA comes in at 11362. Today, I will again be a buyer from 11000/11150 with a tight 10895 ‘’Closing Stop’’.
March BUND
A late sell-off saw the Bund hit my buy level at 136.15. I will add to this position on any further dip lower to 135.50 while leaving my 134.95 ‘’Closing Stop’’ unchanged. I will now lower my T/P level to 136.70. If any of the above levels are hit I will be back with a new update for my Platinum Members.
Gold Rolling Contract
Gold traded in a narrow range yesterday and I am still flat. I will not chase the market higher, leaving my 1832/1847 buy level unchanged with the same tight 1819 ‘’Closing Stop’’ on this position.
Silver Rolling Contract
No Change. Silver traded in a narrow range again yesterday. I am still long at 24.00 with the same no stop policy. I will now lower my T/P level to 24.50.
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