U.S. stock Indices closed at record highs on the back of better-than-forecast earnings while the US Dollar strengthened and Treasury yields dipped. The S&P 500 Index and the Nasdaq Composite marked new milestones as Twitter, Lockheed Martin and Hasbro climbed following favorable first-quarter reports, adding to a rally led by the biggest technology companies. The gains cap a momentous run for U.S. equities, with the larger gauge of U.S. stocks up 25 percent from a low reached on Christmas Eve. Investors found fresh catalysts to buy yesterday as earnings season gathered steam with a slew of major releases due this week. So far, almost 80 percent of S&P 500 companies reporting results have exceeded estimates. Traders are also focused on the U.S. economy, as First-Quarter Gross Domestic Product data is due Friday. Worries over Brexit rumble on in the background, and trade spats between the world’s top economies remain unresolved.
To mark my 1825th 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@tradernoblecom for details
For anyone following my Platinum Service it made 35 points yesterday and is now ahead by 696 points for April, having made 1027 points in March, 1013 points in February, 1671 points in January, 2803 points in December, 1541 points in November and 2094 points in October. 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 rose 0.9 percent at the close of trading in New York. The Stoxx Europe 600 Index rose as many markets reopened following the long Easter weekend closing 0.2 percent higher. In Asia, trading volumes were below average ahead of Japan’s Golden Week extended holiday. Equities climbed in Tokyo and slipped in Shanghai with the MSCI Asia Pacific Index advancing 0.2 percent.
Currencies
The Bloomberg Dollar Spot Index advanced 0.4 percent to the highest in six weeks. The Euro declined 0.3 percent to $1.1220, where it is opening in London this morning. The Pound weakened as U.K. Prime Minister Theresa May confronted further challenges to her leadership. Graham Brady is the chair of the 1922 committee and is meeting with PM May today. Reports from earlier this week said he would tell her to quit because 76% of Conservative MPs no longer support her. Under current Conservative rules she can’t be challenged on her leadership until December but Brady is threatening to change those rules unless she agrees to quit by June 30. That would require more than 65 constituency chairmen to demand her resignation and change the rules. Sterling fell 0.3 percent to $1.294 where it is also opening in London this morning.
Bonds
The yield on 10-year Treasuries decreased two basis points to 2.57 percent. Germany’s 10-year yield climbed two basis points to 0.04 percent while the UK Gilt closed three basis points higher at 1.22 percent.. Sri Lankan stocks slumped and bonds fell for a second day after terror attacks on Easter Sunday killed more than 300 people.
Commodities
Elsewhere, copper dropped alongside most metals and oil extended the previous session’s gains after the U.S. announced a tougher crackdown on supply from Iran with West Texas oil rising 0.9 percent to a six month high at $66.30 a barrel. Gold declined 0.2 percent to $1,272.34 an ounce, near a four-month low. Bitcoin continued its recent surge higher closing at $5600 in New York which is well above it key $5200 support level.
This morning on the Economic Front we have the German IFO Business Climate/Current Assessment and Euro-Zone Economic Bulletin at 9.00 am. This is followed at 9.30 am by UK Public Sector Net Borrowing and at 12.00 pm by US MBA Mortgage Applications. Finally at 3.00 pm we have the Bank of Canada Interest Rate decision and press conference at 3.15 pm.
June S&P 500
There is no stopping the rally in the S&P which has now reached an incredible 615 Handles since the low on Christmas Eve. This rally higher saw the S&P hit my 2933 sell level. I am still short with a 2930 T/P level. As emailed to my Platinum Members late yesterday I will only add to this position at a price of 2948 with a higher 2956 stop. If my 2930 T/P level is filled I will then look to sell the market at a price of 2943/2953 with a 2959 stop. My T/P level will be 2936. I will also raise my buy level to 2905/2913 with a 2898 stop.
EUR/USD
My Euro plan well with the market trading lower to my 1.1205 buy level before rallying to a rebound high of 1.1230 so far. I used this rally to exit this long position at my revised 1.1220 T/P level and I am now flat. As I mentioned over the last two weeks the Euro has strong support from 1.1140/1.1180 and today I will be a buyer in this area with a 1.1110 tight stop.
June Dollar Index
As I was long the Euro I waited to sell the Dollar which I did at 97.40 before covering this position at my revised 97.30 T/P level and I am now flat. Given how overbought the Dollar is trading I will now look to sell the market again on any further rally to 97.70/98.10 with a 98.45 stop. I still do not want to be long the Dollar at this time.
June DAX
Finally we are seeing the DAX underperform the US Indices. I am still flat and today I will lower my buy level slightly to 12070/12140 with a 12025 stop.
June FTSE
My FTSE plan also worked well with the market trading higher to my 7470 sell level before having a small sell-off to my revised 7460 T/P level and I am now flat. For those of you still short the FTSE is now trading lower at 7448 as I go to press. The next resistance level for the FTSE is from 7495/7535 and today I will be a seller in this area with a 7565 stop.
Dow Rolling Contract
Thankfully we have had no sell levels in the Dow over the past few weeks as the market looks to test my 26750 next resistance area. After this key resistance area is broken the Dow has strong resistance from 26950/27100 and I will be a seller in this area with a 27240 stop.
June NASDAQ
The beauty of my Platinum Service is my updated emails as I can change parameters during the day. This was done in the S&P above and also in the NASDAQ where after I went short at a price of 7790 I emailed my Platinum Members to only add to this position at 7840 which was filled before the close for a now average short position at 7815. I will now raise my T/P level on this position to 7805 with a higher 7875 stop. If this 7805 level is filled I will again look to sell the market on any further rally to 7880/7920 with a 7955 stop.
June BUND
No Change as I am still a seller on any rally higher to 165.40/165.70 with the same 166.05 stop.
Gold Rolling Contract
I have been right not to trust the Gold rally with the market now trading over $75 lower from its recent March high. Today I will leave my 1254/1262 buy level unchanged with the same 1247 stop.
Silver Rolling Contract
Silver traded lower to my 14.80 second buy level for a now average 14.98 long position. I will leave my stop unchanged at 14.55 with a now lower 15.05 T/P level. If any of the above levels are hit I will be back with a new update for my Platinum Members.
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