U.S. Equity Markets rebounded as tensions eased in the Ukraine, closing higher, led by the NDX ending yesterday’s session higher with a gain of 2.47%. Yesterday morning, Russia said military exercises near the border of Ukraine are ending. Russia’s Defense Ministry said on its website that a series of combat readiness drills had been completed according to plan. As a result, it would begin to pull some troops away from the border. This potentially lowers the chance of a conflict, while also easing the upward pressure on energy supplies (and inflation in Europe). That is why we saw markets surge back near the 200-day moving average (4,459) and close above that key technical level. The optimism even overshadowed higher-than-expected inflation data. The U.S. Bureau of Labour Statistics’ Producer Price Index (“PPI”) data for January gained 9.7% year over year (“YOY”) compared with the expectation for a 9.1% rise and the prior month’s upwardly revised 9.8% jump. PPI measures input costs for businesses, so it could indicate that they will try and pass the costs on to customers. Normally, this could spook investors, but that was not the case yesterday. Tech stocks were the biggest gainers. as Semiconductors rose after Intel (INTC) agreed to acquire Tower Semiconductor (TSEM) for a 60% premium. This boosted valuations across the space. Energy stocks were among the underperformers, as the potential de-escalation of tensions in Europe lowered the chances of disrupted energy supply. Within the S&P 500, nine of the 11 sectors finished higher. European Markets closed higher. Russia pulled back some troops from the Ukraine border, adding that it is confident diplomatic talks with the West will succeed in easing tensions. Euro-Zone preliminary fourth-quarter gross domestic product figures were in line with expectations, despite German output contracting. European Central Bank (“ECB”) President Christine Lagarde said it will adjust interest rates gradually when it feels the time is appropriate. So, the ECB continues to fight off the trend of central banks tightening policy. In Asia, Japan’s preliminary fourth-quarter gross domestic product growth was weaker than anticipated despite the fact the economy experienced its first annual expansion in three years. The People’s Bank of China left its medium-term lending facility rates unchanged but added $15.7 billion worth of funds to the banking system to boost liquidity. The Reserve Bank of Australia Minutes from its most recent policy meeting showed it wanted to wait longer before reacting to recent price increases. India’s Consumer Price Index (“CPI”) data for January rose from December, hitting the Reserve Bank of India’s 6% threshold. Elsewhere, Oil fell 3.65% as the potential de-escalation of tensions in Europe lowered the chances of disrupted energy supply, while Gold closed 0.75% lower as investors rotated back into risk assets.
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For anyone following my Platinum Service it made 60 points yesterday and is now ahead by 3475 points for February, after ending January with a gain of 3878 points, more than making up for December’s 932 points loss, 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, after ending March with an impressive gain of 3769 points. 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 1.58% higher at a price of 4471.
The Dow Jones Industrial Average closed 422 points higher for a 1.22% gain at a price of 34,989.
The NASDAQ 100 closed 2.47% higher at a price of 14,620.
The Stoxx Europe 600 Index closed 0.9% higher.
Yesterday, the MSCI Asia Pacific Index fell 0.4%.
Yesterday, the Nikkei closed 0.79% lower at a price of 26,865.
Currencies
The Bloomberg Dollar Spot Index closed 0.2% lower.
The Euro closed 0.4% higher at $1.1353.
The British Pound closed 0.2% higher at 1.3545.
The Japanese Yen fell 0.1%, closing at $115.58.
Bonds
Germany’s 10-year yield closed four basis points higher at 0.31%.
Britain’s 10-year yield closed one basis points lower at 1.58%.
US 10 Year Treasury closed six basis points higher at 2.04%.
Commodities
West Texas Intermediate crude closed 3.65% lower at $91.95 a barrel.
Gold closed 0.75% lower at $1,853.10 an ounce.
This morning on the Economic Front we have U.K CPI, PPI and GDP at 7.00 am. Next, we have Euro-Zone Industrial Production at 10.00 am. This is followed by U.S. Retail Sales and the Import/Export Price Index at 1.30 pm. Industrial Production and Capacity Utilisation will be released at 2.15 pm. Next, we have Business Inventories and the NAHB Housing Market Index at 3.00 pm. Finally, at 7.00 pm we have the FOMC Minutes from last month’s meeting.
Cash S&P 500
For the last three weeks I have been consistent with the view of buying every dip given how oversold my charts are. Yesterday, the S&P rallied 70 Handles without reaching my buy level first but at least we were not short. Although the S&P closed over its 200 Day Moving Average, Long-Term Charts are bearish and trading will become trickier from here I suspect. The S&P has resistance from 4500/4520 where I will be a small seller with a 4535 wider stop. We have support from 4415/4435 and I will now move buy level higher to this area with a tight 4398 stop.
EUR/USD
No Change. My only interest in selling the Euro is still on a rally higher to 1.1390/1.1450 with the same 1.1505 stop. I do want to be long the Euro at this time.
March Dollar Index
No Change. I am still short at 96.05 with the same 95.80 T/P level and a now lower 96.51 stop. If any of the above levels are hit I will be back with a new update for my Platinum Members.
Cash DAX
The DAX never came close to yesterday’s buy level before surging to sit at 15400 as I go to press. Thankfully, we had no sell level in the DAX with the market now trading 600 points higher than Monday’s low print. I will now raise my buy level to 15010/15100 with a higher 14895 stop. I still do not want to be short the DAX at this time. If I am taken long I will have a T/P level at 15170.
Cash FTSE
My 7500 long FTSE position worked well with the market trading higher to my 7560 T/P level and I am now flat. The FTSE continues to trade bullishly ignoring most of the sell-offs we have witnessed in other major markets so far in 2022. The FTSE has support from 7490/7540 where I will again be a buyer with a 7435 stop. I still do not want to be short the FTSE at this time.
Dow Rolling Contract
Frustratingly, the Dow missed my buy level by just 80 points before rallying 600 points, hitting an afternoon high at 35050 before having a small sell-off into the close and I am still flat. The Dow has resistance from 35100/35300 where I will be a small seller with a 35505 stop. I no longer want to be long the Dow at this time.
Cash NASDAQ 100
The NDX led yesterday’s rally higher despite the fact the 10-Year Treasuries closed higher at 2.04%. I will now raise my buy level to 14350/14450 with a wider 14195 stop. I still do not want to be short the market. If I am taken long I will have a T/P level at 14540.
March BUND
In hindsight, I should have exited my long Bund position above 166 yesterday morning as my view was that Russia would back down from invading Ukraine. I have paid for this error with the Bund closing lower at 164.70 last night. I will continue to hold my 166.26 long position and today I will lower my exit level to 165.40 as I have this position far too long. If this exit price is filled I will be back with a new update for my Platinum Members.
Gold Rolling Contract
No Change. I am still a buyer on any dip lower to 1805/1820 with the same 1789 stop. If I am taken long I will have a T/P level at 1831.
Silver Rolling Contract
Silver hit yesterday’s buy range and I am now long at 23.30 with no stop. I will add to this trade at 22.60 while lowering my T/P level to 23.70.
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