U.S. Equity Markets closed higher for the third consecutive trading session, led by the NDX which has risen over 7% since Friday afternoon. The S&P 500 did not deviate much from Monday’s close until late afternoon. Around 8.00 pm., buyers stepped in and sent markets higher, and equities held on to the gains for the rest of the day. Investors had a lot to digest in terms of Federal Reserve speakers on rate hikes. Federal Reserve Bank of San Francisco President Mary Daly said it would be appropriate for the central bank to raise interest rates in March but keep its options open. Federal Reserve Bank of Kansas City President Esther George said a more aggressive reduction of the central bank’s balance sheet would reduce the need for interest-rate hikes. Later in the day, Philadelphia Fed President Patrick Harker said he was not in favour of a 0.50% rate hike in March, but four 0.25% hikes throughout the year. St. Louis Fed president James Bullard echoed this statement in the afternoon, adding that the January jobs report likely would not be good. Once again, there were only a couple important economic data releases yesterday. Markit Manufacturing Purchasing Managers’ Index (“PMI”) data rose and came in above estimates, while the ISM Manufacturing Index fell (but still beat expectations). Job Openings increased and beat estimates, showing that businesses are still looking to hire. The advances and declines were more balanced today. Two of the big movers were off dividend announcements. AT&T (T) was one of the worst performers in the S&P 500, after announcing it would spin off its media assets and slashed its dividend. On the positive side, United Parcel Service (UPS) shares surged after it topped fourth-quarter estimates and boosted its dividend by 49%. Within the S&P 500, eight of the 11 sectors finished higher. European Markets closed higher. Markit Euro-Zone’s final Manufacturing PMI figures for January were weaker than the preliminary data but still hit the highest level since last August. French preliminary Consumer Price Index (“CPI”) numbers for January unexpectedly rose, driven by food and services price increases. German economic data was mixed, with the December Unemployment Rate falling more than expected but Retail Sales coming in short of estimates. In Asia, Markit Japan’s final Manufacturing PMI numbers for January rose compared with the initial reading, hitting the highest level in eight years, as new order growth rose. South Korea’s export growth for January slowed from December as comparisons with last year grew more difficult. Australia’s Retail Sales contraction for December more than doubled economists’ expectations, as apparel- and department-store activity plummeted with the removal of COVID-19 restrictions. Equity markets remained closed in China, South Korea, and Taiwan for the Lunar New Year holiday. Elsewhere, Oil closed 0.12% higher as investors digest geopolitical tensions, while Gold rose 0.20% on Dollar weakness.
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For anyone following my Platinum Service it made 495 points yesterday on the first trading session 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 0.69% higher at a price of 4546.
The Dow Jones Industrial Average closed 273 points higher for a 0.78% gain at a price of 35,405.
The NASDAQ 100 closed 0.6% higher at a price of 15,019.
The Stoxx Europe 600 Index closed 0.7% higher.
Yesterday, the MSCI Asia Pacific Index fell 0.1%.
Yesterday, the Nikkei closed 0.28% higher at a price of 27,078.
Currencies
The Bloomberg Dollar Spot Index closed 0.3% lower.
The Euro closed 0.3% higher at $1.1270.
The British Pound closed 0.4% higher at 1.3520.
The Japanese Yen rose 0.3%, closing at $114.68.
Bonds
Germany’s 10-year yield closed two basis points higher at -0.03%.
Britain’s 10-year yield closed four basis points higher at 1.30%.
US 10 Year Treasury closed one basis points lower at 1.80%.
Commodities
West Texas Intermediate crude closed 0.12% higher at $88.14 a barrel.
Gold closed 0.2% higher at $1,801.10 an ounce.
This morning on the Economic Front we have Euro-Zone CPI at 10.00 am. Next, we have U.S. MBA Mortgage Applications at 12.00 pm, followed by the ADP Employment Report at 1.15 pm.
Cash S&P 500
It may take a while to pay dividends but yet again the McClellan Oscillator proved itself to be the most reliable buy signal when the MO generates a reading near – 300 which it did every day last week before improving on Friday after the late 80 Handle rally in the S&P. Thankfully, we had no sell level in any of the Equity Markets that I cover as one short position after another got slammed in the S&P’s 340 Handle Rally over the past few trading sessions. On Friday, the S&P hit my 4303 buy level before rallying to my 4312 revised T/P level and I am now flat. This morning as I go to press we are trading at 4560. Although the S&P is back above its 200 Day Moving Average (4438) the market is now short-term overbought. We have resistance from 4575/4600 where I will be a seller with a 4615 stop. The S&P has support from 4470/4495 where I will be a small buyer with a 4459 tight stop. If I am taken long I will have a T/P level at 4510. If I am taken short I will have a T/P level at 4558.
EUR/USD
The Equity rally saw the Dollar trade weaker, resulting in the whole of my sell range triggered for a now 1.1225 average short position. I will raise my stop to 1.1305 while also raising my T/P level to 1.1205. If any of the above levels are hit I will be back with a new update for my Platinum Members.
March Dollar Index
The Dollar just missed my 98.00 sell level before trading lower to sit at 96.30 as I go to press. I will now lower my sell level to 96.80/97.30 with a 97.75 tight stop.
Cash DAX
The DAX has rallied over 600 points since my last commentary as yet again one short position after another got stopped out. This morning, the DAX is trading at 15705. We have resistance from 15805/15885 where I will be a small seller with a 15950 stop. If I am taken short I will have a T/P level at 15755. I no longer not want to be long the DAX at this time.
Cash FTSE
Thankfully we stayed flat in the FTSE over the weekend as the market is trading higher at 7580. We have resistance from 7650/7710 where I will be a seller with a 7755 stop.
Dow Rolling Contract
My Dow plan worked well over the past few days by buying the dip with no stop. For the record, I bought the market at 33950 and 33770, before exiting at 34030 and 33930 respectively. Of course, I did leave 1500 points behind which hopefully some members were able to capture. The Dow will have short-term support at the 34956 level which is the 200 Day MA. I certainly do not believe that all the problems are over after the past three- day rally and I will now look to sell rallies. The Dow has strong resistance from 35550/35750 where I will be a seller with a 36005 stop. I will be a small buyer from 34900/35100 with a 34745 stop.
Cash NASDAQ 100
It is hard to believe that the NDX traded lower to my 13900 buy level on Friday, before rallying over 7% to sit at 15130 this morning. I covered my long position at 14030 and I am still flat. The NDX has corrected all the oversold conditions and is now short-term overbought. We have resistance from 15200/15320 where I will be a seller with a 15405 stop. I no longer want to be long the NDX at this time.
March BUND
My Bund plan worked well with the market trading lower to my 169.00 buy level before rallying yesterday to my 169.35 revised T/P level and I am now flat. The Bund continues to trade heavy, has support from 167.90/168.40 where I will be an aggressive buyer with a 167.45 stop.
Gold Rolling Contract
Gold is back above 1800 and I am still flat. We have support from 1765/1780 where I will be a small buyer with a 1749 stop.
Silver Rolling Contract
No Change. I am still long at 22.65 with a now lower 22.95 T/P level. I will add to this trade at 21.80 with no stop for now. If any of the above levels are hit I will be back with a new update for my Platinum Members.
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