U.S. Equities fell on reports that a deadly respiratory illness that originated in China had migrated to the U.S., spurring concern about the potential economic impact. Industrial and consumer shares were among the worst performers as the S&P 500 Index pulled back from a record. That followed retreats in Asia and Europe, with Hong Kong the hardest hit. Luxury stocks posted their biggest drop since October on worries the virus will disrupt spending during a key Chinese holiday period. Banks declined after UBS Group AG missed profitability targets; Boeing slumped on speculation its 737 Max jet wouldn’t be cleared to fly until mid-year. The risk-off mood helped support some traditional haven assets, and the Japanese Yen and Treasuries advanced. The emergence of the illness in China — and concerns it will now spread outside the country — stirred memories of the SARS outbreak 17 years ago for some market watchers, though it is not yet as serious. The developments provided an excuse for investors who bid up U.S. stocks to record highs last week to take a pause and assess the outlook for global growth and corporate profits as earnings season picks up. Elsewhere, Germany’s DAX Index briefly surpassed the peak reached two years ago. The Stoxx Europe 600 Index posted a second day of losses. The Bank of Japan kept policy unchanged as expected, though raised its economic growth forecast for 2020. Crude held below $60 a barrel as ample global supplies offset the loss of exports from Libya.
To mark my 1975th 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 was flat yesterday and is still ahead by 1401 points for January, having made 818 points in December, 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
The S&P 500 Index fell 0.3% to close at 3320.
The Dow Jones Industrial Average fell 150 points to close at 29,196.
The Stoxx Europe 600 Index sank 0.1%.
The MSCI Asia Pacific Index fell 1.2%.
Currencies
Here is a summary of the main Changes in F.X. Markets:
The Bloomberg Dollar Spot Index rose 0.1%.
The Euro slipped 0.1% to $1.1088.
The British Pound gained 0.3% to $1.3045.
The Japanese Yen climbed 0.3% to 109.81 per dollar.
Bonds
The yield on 10-year Treasuries dipped five basis points to 1.77%.
Germany’s 10-year yield fell three basis points to -0.25%.
Britain’s 10-year yield fell two basis points to 0.63%.
Commodities
West Texas Intermediate crude slumped 0.3% to $58.34 a barrel.
Gold fell 0.1% to $1,558.62 an ounce.
This morning on the Economic Front we have UK PSBR and the CBI Industrial Trends Survey at 9.30 am and 11.00 am respectively. This is followed at 12.00 pm by the MBA Mortgage Applications. At 1.30 pm we have the Chicago Fed National Activity Index. Finally, at 3.00 pm we have the Housing Market Index and Existing Home Sales.
March S&P 500
Frustratingly the S&P just missed my sell level with a rebound high of 3329 before falling nearly 20 Handles. Subsequently the S&P rallied into the close and that rally has continued overnight with the S&P now trading at my 3335 sell level as I post this commentary. I am still short and I will add to this position on any further move higher to 3347 with the same 3355 stop. I will now raise my T/P level on this position to 3329. The VIX closed 6% higher at 12.85. I will now raise my buy level to 3288/3298 with a higher 3281 stop. If I am taken long I will have a T/P level at 3305.
EUR/USD
The Euro fell short of 1.1125 with a rebound high of 1.1117 before having a small sell-off into the close. I have this position too long and I will now lower my T/P level to 1.1110 with a now higher 1.1055 stop.
March Dollar Index
No Change as I am still a seller on any rally higher to 97.50/97.90 with s 98.25 stop.
March DAX
I am still flat the DAX and today I will now raise my buy level to 13350/13410 with a higher 13285 stop.
March FTSE
The FTSE is struggling to rally despite the weaker Pound. I will again lower my sell level to 7590/7630 with a lower 7665 stop. If I am taken short I will have a T/P level at 7560.
Dow Rolling Contract
The Dow also missed my buy level before selling off 200 points at one stage before a late small rally into the close. Today my only interest in selling the Dow is from 29395/29530 with the same 29605 stop.
March NASDAQ
Today I will continue to be an aggressive buyer from 9010/9070 with the same 8960 stop. Meanwhile I will leave my 9250/9310 sell level unchanged with the same 9345 stop.
March BUND
The BUND rallied hard today after yesterday’s non-event. I will now raise my buy level to 171.20/171.60 with a higher 170.85 tight stop.
Gold Rolling Contract
No Change as I am still a buyer on any dip lower to 1530/1540 with the same 1525 stop.
Silver Rolling Contract
Silver traded to a low of 17.61 which enabled me to buy the market at a price of 17.80. I am still long and I will now lower my T/P level to 17.95. I will raise my stop to 17.39 and if any of the above levels are hit I will be back with a new update for my Platinum Members
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