U.S. Equity Markets pulled back from Monday’s explosive rally, finishing lower, led by the Russell 2000 and NASDAQ which fell by 1.92% and 1.69% respectively. Markets sold off sharply at the open. There was no real catalyst, but Monday’s large move higher could have sparked some profit taking. On the stimulus front, there were reports of some Democrats seeking to tweak the House’s Bill. Any changes would send the Bill back to the House, and could lengthen the time for the Bill to be implemented. There were also a few Federal Reserve speakers yesterday. Federal Reserve Bank of Richmond President Thomas Barkin said the central bank is not worried about the increase in Treasury yields, but instead focused on economic growth. And Fed Governor Lael Brainard said that the Fed was watching the bond market situation closely, likely indicating that it will step in to push yields lower if they move too high. European Markets closed higher despite a late sell-off into the close. European Central Bank Vice President Luis de Guindos said he is open to “recalibrating” bond purchases to maintain favorable financing conditions. British researchers published a study showing a single dose of coronavirus vaccine from either Pfizer or AstraZeneca was able to reduce mortality and serious illness among the elderly. The European Commission is reportedly set to unveil a “green pass” allowing vaccinated U.K. travellers to head to tourist hotspots. European Union coronavirus vaccinations rose to 33.48 million through yesterday, with a daily average of 898,000 doses administered over the last week. Elsewhere, Oil closed 1.83% lower as the market fell with risk assets while Bitcoin fell 2.14% after CBOE Global Markets filed to list a Bitcoin Exchange-Traded Fund.
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For anyone following my Platinum Service it made 306 points yesterday and is now ahead by 486 points for March, having closed February with an impressive gain of 3286 points, having made 2077 points in January, 2273 points in December, 2025 points in November, 2779 points in October, 3042 points in September, 2383 points in August, 3128 points in July, 2580 points in June, 2456 points in May, 4773 points in April, and an incredible 9264 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 closed 0.81% lower at a price of 3870.
The Dow Jones Industrial Average closed 144 points lower for a 0.46% loss at a price of 31,391.
The NASDAQ 100 closed 1.68% lower at a price of 13,059.
The Stoxx Europe 600 Index closed 0.4% higher.
The MSCI Asia Pacific Index fell 0.3%.
This morning the Nikkei closed 0.51% higher at a price of 29,559.
Currencies
The Bloomberg Dollar Spot Index closed 0.3% lower.
The Euro closed 0.4% higher at $1.2080.
The British Pound closed 0.4% higher at $1.3955.
The Japanese Yen closed 0.1% higher at 106.65 per dollar.
Bonds
Germany’s 10-year yield closed three basis points lower at -0.35%.
Britain’s 10-year yield closed six basis points lower at 0.69%.
US 10 Year Treasury closed two basis points lower at 1.40%.
Commodities
West Texas Intermediate crude closed 1.83% lower at $58.52 a barrel.
Gold closed 0.55% higher at $1,727.70 an ounce.
This morning on the Economic Front we have German, Euro-Zone and UK Markit Services PMI at 8.55 am, 9.00 am and 9.30 am respectively. This is followed by Euro-Zone PPI at 10.00 am and by U.S. MBA Mortgage Applications at 12.00 pm. Next, we have the ADP Employment Report which will closely watched for any clues ahead of Friday’s NFP data, and Markit Services PMI at 2.45 pm. At 3.00 pm we have ISM Services PMI followed by the Beige Book at 7.00 pm. Finally, we have speeches from ECB Members Panetta, De Guindos and Schnabel at 1.00 pm, 3.00 pm and 7.30 pm respectively.
March S&P 500
My S&P plan worked well with the market trading lower to my 3871 buy level before rallying to my 3881 revised T/P level and I am now flat. The S&P made a high at 3904 before selling off over 30 Handles into the close. This sell-off has mostly been reversed overnight with the S&P sitting at 3891 as I go to press. The S&P has strong support from 3855/3870 where I will again be a buyer with a 3843 ‘’Closing Stop’’. A break and close below 3850 will potentially lead to another test of the 50 Day MA which comes in at 3813 this morning. Meanwhile, I will leave my 3915/3930 sell level unchanged with the same 3943 ‘’Closing Stop’’
EUR/USD
The Euro has rallied over the past 24 hours to sit 100 points higher at 1.2095 this morning. This move higher saw my 1.2035 T/P level filled on my latest 1.2008 long position and I am now flat. Today, I will be a buyer from 1.2010/1.2060 with a 1.1965 stop. The Euro has resistance at 1.2135 and a break and close over this level signals a move to 1.2250 and higher.
March Dollar Index
No Change as I am still a buyer from 90.00/90.50 with the same 89.55 stop.
March DAX
My DAX plan worked well with the market trading higher to my 14090 sell level before falling 80 points. Unfortunately, I covered this position too early at 14080 and I am still flat. The DAX has also reversed yesterday’s late sell-off to sit at 14160 this morning. We have resistance from 14230/14310 where I will again be a seller with a 14395 stop. I will now raise my buy level to 13850/13930 with a higher 13775 stop.
March FTSE
The FTSE never came close to my buy level as the market was bid all-day yesterday which is no surprise with over 20 million people having at least 1 shot of the vaccine. I read this morning that some of the London Boroughs had no cases yesterday which is a really positive sign for the UK re-opening the economy fully before the June 21 date set last month by PM Johnson. The FTSE has support from 6530/6580 where I will be a buyer with a 6485 stop. I still do not want to be short the FTSE at this time.
Dow Rolling Contract
Shortly after I posted yesterday morning the Dow traded lower to my 31340 buy level before rallying to my revised 31440 T/P level and I am still flat. Although the Dow is trading higher at 31560 this morning I did not like yesterday’s price action. The market has so much good news priced in that a proper correction is inevitable. With this in mind I will only be a small buyer from 31200/31350 with a tight 31095 ‘’Closing Stop’’. I will continue to be a seller on any further rally to 31850/32050 with the same 32205 ‘’Closing Stop’’.
NASDAQ 100
After the NASDAQ traded lower to my 13150 buy level it took a few hours before we finally saw a rally to my 13204 revised T/P level and I am still flat. Although the NASDAQ sold of into the close, finishing below its 50 Day MA (13155) we are back above this key pivot point this morning. I will be a small buyer from 13000/13080 with a 12935 ‘’Closing Stop’’. I still do not want to be short the NASDAQ at this time.
March BUND
I am still flat as the Bund continues to rally. With three key ECB Members speaking this afternoon, this rally is likely to continue. I will now raise my sell level to 175.20/175.70 with a higher 176.15 stop. As I am rolling to the June Contract tomorrow, I do not want to be long the March Contract today.
Gold Rolling Contract
I am still flat as Gold never came close to yesterday’s buy level. I will now raise my buy level to 1689/1701 with a 1673 stop.
Silver Rolling Contract
Silver hit my 26.25 T/P level on my 26.10 long position shortly after I posted yesterday morning and I am now flat. Silver continues to trade sideways. We have support from 25.30/26.00 where I will again be a buyer with a tight 24.95 stop. If I am taken long I will have a T/P level at 26.40.
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