U.S. Equity Markets fell for the first time in four sessions after reports circulated that Moderna Inc.’s vaccine study, which was credited in part for Monday’s rally, did not produce enough critical data to assess its success. Crude oil and Treasuries gained. The S&P 500 and Nasdaq Composite turned negative in the last hour of trading, while the Dow Jones Industrial Average extended its losses. Equities had fluctuated much of the day after optimism over the drug as a potential Coronavirus vaccine sent the S&P up the most Monday in almost six weeks. Crude oil rose for a fourth day. Earlier, Federal Reserve Chairman Jerome Powell reiterated during a Senate hearing that the Central Bank is ready to use all the weapons in its arsenal to help the U.S. economy endure the Coronavirus pandemic. The Stoxx Europe 600 Index retreated as investors showed little reaction to both news of a $546 billion recovery fund for the region and a surprise jump in German investor confidence. European government bonds were mixed. Sterling strengthened after the U.K. announced plans for 30 billion pounds ($37 billion) in tariff cuts after Brexit. Riskier assets had started the week on the front foot after the Moderna news fuelled hopes for a coronavirus vaccine, but investors are struggling to maintain the optimism as they continue to monitor efforts to both contain the pandemic and restart economies. Headwinds remain for stocks, not least a deteriorating U.S.-China relationship. In a further sign of tightening scrutiny on capital flows to the Asian nation, Nasdaq is set to unveil new rules for initial public offerings including tougher accounting standards that will make it more difficult for some Chinese companies to list on the exchange. Asian equities rallied, tracking the big gains on Wall Street from a day earlier.
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For anyone following my Platinum Service it made 324 points yesterday and is now ahead by 1148 points for May, having made 4773 points in April, an incredible 9264 points in March, 2223 points in February, 2142 points in January, 818 points in December, 780 points in November, 1649 points in October, 1620 points in September and 2387 points in August 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
The S&P 500 Index dipped 1%%, closing near the low of the day at 2922.
The Dow Jones Industrial Average sank 1.6% to 24,206.
The NASDAQ 100 closed 0.3% lower at 9298.
The Stoxx Europe 600 Index decreased 0.6%.
The German DAX fell 0.5%
Currencies
Here is a summary of the main Changes in F.X. Markets:
The Bloomberg Dollar Spot Index was little changed at 1247.
The Euro advanced 0.1% to $1.0928.
The Japanese Yen depreciated 0.4% to 107.73 per dollar.
The British Pound jumped 0.5% to $1.2253.
Bonds
The yield on 10-year Treasuries fell three Basis Points to 0.69%.
Germany’s 10-year yield gained one basis point to -0.46%.
Britain’s 10-year yield decreased one basis point to 0.25%.
Commodities
The Bloomberg Commodity Index advanced 0.6%.
West Texas Intermediate crude increased 0.5% to $32.70 a barrel.
Gold advanced 0.8% to $1,746.10 an ounce.
This morning on the Economic Front we already had the release of the UK CPI which rose 0.8% versus +0.9% expected. Next, we have Euro-Zone Current Account at 9.00 am and CPI at 10.00 am. At 12.00 pm we have the MBA Mortgage Applications and this is followed at 3.00 pm by Euro-Zone Consumer Confidence. Finally, at 7.00 pm we have the FOMC Minutes.
June S&P 500
With the VIX finding it extremely difficult to break and hold a 20 Handle, it is no wonder that we are seeing such two-way fast action across all the US Indices. The S&P fell over 50 Handles from where I marked prices 24 hours ago into the Chicago close. This move lower saw the S&P hit my 2918 buy level before rallying to my 2931 T/P level and I am now flat. After three days of losses in the S&P it was nice to get a win. Today I will continue to be a buyer on any dip lower to 2898/2915 with a 2885 stop. I still believe that we will test the 200 Day Moving Average before we finally see a more sustained sell-off. For this reason I will leave my 2995/3035 sell range unchanged with the same 3051 stop.
EUR/USD
I am fed up being stopped out of some nice positions near the top or bottom of the market before reversing after my stop was exercised. Yesterday after the Euro stopped my out of my 1.0920 short position at 1.0971, the Euro traded back to 1.0920. I am still flat but I will now use my stop on a closing basis only unless I state otherwise in a separate email. The Euro has support from 1.0860/1.0900 where I will be a small buyer with a 1.0815 stop. I do not want to be short the Euro at this time.
June Dollar Index
I am still long at 99.60 with the same 99.25 stop. I will now lower my T/P level on this position to 99.80.
June DAX
My DAX plan worked well with the market trading lower to my 10955 buy level before rallying to my 11040 T/P level and I am still flat. Today I will again look to buy the DAX on any dip lower to 10870/10940 with a 10805 stop. The DAX has strong resistance from 11200/11325 where I will be a seller with a 11405 stop.
June FTSE
Shortly after I posted the FTSE traded lower to my 5985 T/P level on my 6020 average short position and I am still flat. Despite the weak Pound the FTSE is struggling to run higher. The FTSE has strong resistance from 6060/6130 where I will be a seller with a 6175 stop.
Dow Rolling Contract
My Dow plan worked well with the market selling off late in the day to my 24350 buy level. We did spike off this low to my 24530 T/P level before falling over 300 points into the close. I did not have a T/P level on this position myself and I ended up exiting this trade at 24440 and I am now flat. Today I will continue to be a buyer on any further dip lower to 23950/24200 with a 23785 stop. My only interest in selling the Dow is still on a rally higher to 24900/25150 with the same 25325 stop.
June NASDAQ
Shortly after I posted the NASDAQ sold off to my 9310 T/P level on my 9345 average short position and I am still flat. The NASDAQ has strong resistance from 9420/9520 where I will be a seller with a 9605 stop. I will continue to be a buyer on any dip lower to 9150/9230 with a 9075 stop.
June BUND
I am still long the Bund at 172.80 with the same 172.42 closing stop. The Bund just missed my 173.15 T/P level with a 173.10 high print and today I will lower my T/P level to 172.98. If any of the above levels are hit I will be back with a new update for my Platinum Members.
Gold Rolling Contract
I am still flat Gold having emailed my Platinum Members to cancel any sell order overnight. Gold is trading at 1745 this morning having hit a high so far at 1750. With the DSI at 91% bulls it is difficult to see Gold trade much higher from current prices even though we closed at a seven- year high last night. Gold has resistance from 1768/1780 where I will be a small seller with a 1792 stop.
Silver Rolling Contract
I am still flat and I will now raise my buy level to 16.70/17.10 with a higher 16.35 stop.
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