The biggest U.S. technology shares slumped, weighing on major Equity gauges as Consumer Confidence crashed and more companies withdrew earnings guidance. The US Dollar weakened. The Nasdaq Composite snapped a two-day winning streak, pulled down by Facebook, Amazon.com and Netflix as data showed U.S. consumer confidence dropped in April to the lowest since 2014. Most stocks in the S&P 500 Index rose amid gains for casino operators, cruise lines and other Coronavirus-sensitive shares, pushing up a version of the Index that strips out market-value biases by more than 1%. The Stoxx Europe 600 climbed to a seven-week high as several major economies moved toward loosening restrictions. Oil futures in New York slumped to about $10 a barrel before paring losses in a volatile session. Treasuries edged higher. With U.S. Equities up more than 25% since the lows of March, investors are in search of new catalysts to drive further gains. This week has policy decisions due from the Federal Reserve and European Central Bank as well as earnings still to come from some of the world’s biggest companies, among them Amazon.com Inc., Microsoft Corp. and Samsung Electronics Co. At the same time, traders are monitoring Coronavirus infection rates and the ongoing discussions of how to restart activity. China’s top scientists said the novel Coronavirus will not be eradicated, joining a growing consensus that the pathogen will likely return in waves. Spain said it aimed to lift its lockdown within eight weeks as Europe moves to loosen restrictions. The Trump administration issued a strategy to expand U.S. testing, including partnering with retail chains. On the earnings front, Alphabet Inc. reported better-than-estimated sales after the close of trading Tuesday. Caterpillar Inc. and PepsiCo Inc. joined companies shelving earnings forecasts for the rest of the year. Merck & Co. reported profit that beat estimates, while UBS Group AG gained after earnings rose. Elsewhere, it was a choppy session in Asia, where South Korean and Hong Kong equities climbed, shares in Japan finished slightly higher and those in Australia edged down.
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For anyone following my Platinum Service it made 100 points yesterday and is now ahead by 4708 points for April, having made 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 fell 0.5%, closing at a price of 2863.
The Dow Jones Industrial Average closed flat at 24,101.
The NASDAQ I00 fell 1.8%, closing at a price of 8678.
The Stoxx Europe 600 Index rose 1.7%.
The MSCI Asia Pacific Index climbed 0.5%.
The MSCI All-Country World Index rose 0.2%.
Currencies
Here is a summary of the main Changes in F.X. Markets:
The Bloomberg Dollar Spot Index sank 0.3%.
The Euro was little changed at $1.0833.
The British Pound was little changed at $1.243.
The Japanese Yen strengthened 0.4% to 106.87 per dollar.
Bonds
The yield on 10-year Treasuries dipped five basis points to 0.61%.
Germany’s 10-year yield decreased one basis point to -0.47%.
Britain’s 10-year yield fell one basis point to 0.28%.
Commodities
West Texas Intermediate crude fell 0.7% to $12.69 a barrel.
Copper fell 0.1% to $2.343 per pound.
Gold weakened 0.4% to $1,707.43 an ounce.
This morning on the Economic front we already had the release of German March Import Index which fell 3.5% versus -2.5% expected. At 10.00 am we have Euro-Zone Consumer Confidence, Industrial Confidence, Money Supply and the Economic Sentiment Indicator. This is followed by the U.S. MBA Mortgage Applications at 12.00 pm and German CPI at 1.00 pm. Next, we have U.S. GDP at 1.30 pm, where the expectation is for a fall of 4%. At 3.00 pm we have Pending Home Sales. Finally, at 7.00 pm we have the FOMC Rate Decision and the Powell Press Conference at 7.30 pm.
June S&P 500
The S&P just missed my 2852 buy level after a late sell-off ahead Alphabet Earnings. Subsequently we saw higher sales reported and the S&P Gaped higher on the re-open with the market now trading at 2895 to take back most of yesterday’s loss. The S&P should trade sideways to higher as we wait for GDP at 1.30 pm, followed by the FOMC Statement at 7.00 pm and Fed Chair Powell’s press conference thirty minutes later. Despite all the bearish views in the market, I still believe that with the Fed’s intervention, the S&P will eventually test or come close to testing its 200 Day MA at 3005 before we see a more meaningful decline. Today I will raise my buy level to 2845/2865 with a 2829 stop. My only interest in selling the S&P is from 2935/2960 with the same 2975 stop.
EUR/USD
My Euro plan worked well despite the narrow range that the Euro has traded in for all of April. After the Euro hit my 1.0885 sell level I emailed my Platinum Members to exit any short position at 1.0860 and I am still flat. The Euro has resistance from 1.0920/1.0960 where I will be a seller with a 1.1005 stop. Meanwhile I will leave my 1.0710/1.0760 buy level unchanged with the same 1.0675 stop.
June Dollar Index
My Dollar plan worked well with the market trading lower to my 99.60 buy level before rallying to my revised 99.95 T/P level and I am now flat. Today I will again look to buy the Dollar on any dip lower to 98.80/99.20 with a 98.35 stop.
June DAX
I am still flat the DAX as the market trades higher to test the 10800 resistance area. I will now raise my buy level to 10480/10620 with a 10395 stop. Ahead of the ECB Meeting tomorrow I still do not want to be short the DAX at this time.
June FTSE
The FTSE rallied hard yesterday and again overnight to trade the whole of my sell range for a now 5945 average short position. I am still short and I will now raise my T/P level on this position to 5920. I will lower my stop to 6010 and if any of the above levels are hit I will be back with a new update for my Platinum Members.
Dow Rolling Contract
Despite falling 450 points form yesterday’s afternoon’s high, the Dow fared best of the three main US Indices and closed flat. Today I will raise my buy level to 23780/23980 with a higher 23650 stop. I will continue to be an aggressive seller on any rally to 25050/25300 with a 25450 stop.
June NASDAQ
The NASDAQ reversed hard yesterday trading the whole of my buy range for a 8760 average long position. The NASDAQ made a low at 8668 before gaping higher on the Alphabet earnings to hit my revised 8780 T/P level with an overnight high so far at 8855. Today I will again look to buy the market on any dip lower to 8650/8730 with a 8595 tight stop.
June BUND
I am still flat the Bund and ahead of the Fed this evening I will now raise my sell level to 173.35/173.85 with a 174.20 stop.
Gold Rolling Contract
No Change as I am still a buyer from 1668/1680 with the same 1659 stop.
Silver Rolling Contract
My 14.90 long Silver position worked well with the market trading higher to my 15.10 T/P level and I am still flat. Today I will again look to buy Silver from 14.55/14.95 with a 14.25 tight stop.
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