U.S Equity Markets closed flat following an extremely quiet trading session. Apple’s annual Worldwide Developers Conference (“WWDC”) commenced with a keynote address on Monday, unveiling an array of updates across Apple’s device lineup. The highlight of the event was the introduction of the Apple Vision Pro, described by CEO Tim Cook as a “new kind of computer.” The Apple Vision Pro is positioned as a personal display worn on the face that incorporates the signature Apple interface elements and features a unique operating system. However, this cutting-edge technology comes at a significant price, with the Apple Vision Pro carrying a retail price tag of $3,499. Interested consumers can expect the product to become available for shipping in early 2024. In a recent development, the Securities and Exchange Commission (SEC) has filed a lawsuit against Binance, the world’s largest cryptocurrency exchange. The lawsuit alleges that Binance operated an illegal trading platform within the United States and misappropriated customers’ funds. Additionally, Changpeng Zhao, the founder and controlling shareholder of Binance, has been named as a defendant in the lawsuit. According to the SEC, Binance and Zhao allegedly misused customers’ funds and directed them towards a trading entity under Zhao’s control, called Sigma Chain. The SEC further claims that Sigma Chain engaged in fraudulent trading, manipulating Binance’s trading volume to appear larger than it actually was. U.S. regulators are planning to implement measures that would require major banks to bolster their financial stability, following a series of failures among midsize banks. These changes, set to be proposed this month, could lead to an average increase of around 20% in capital requirements for larger banks. The extent of the increase will depend on a bank’s specific business activities, with U.S. megabanks involved in significant trading operations expected to face the greatest impact. Banks heavily reliant on fee income, such as those engaged in investment banking or wealth management, may also face significant capital increases. The purpose of these changes is to ensure that banks maintain an adequate buffer of capital to absorb potential losses. Senior officials from the United States and China engaged in “candid” discussions in Beijing following a tense security forum that revealed the challenges in repairing the bilateral relationship. Daniel Kritenbrink, the top U.S. State Department official for Asia, met with Vice Foreign Minister Ma Zhaoxu on Monday, marking the highest-ranking public visit by a U.S. official to Beijing since an alleged Chinese spy incident strained relations in February. Both sides characterised the talks as “candid” and “productive” in their respective statements. The U.S. State Department emphasised that the dialogue was part of ongoing efforts to restore high-level diplomacy, while the Chinese side described the exchange as “constructive.” European Markets closed higher. European Central Bank (“ECB”) President Christine Lagarde emphasised the persistent strength of inflation pressures and indicated that borrowing costs would be raised further to address them. This statement solidifies expectations for an additional interest rate hike at the upcoming meeting. Lagarde reiterated that there is no conclusive evidence suggesting that underlying inflation has reached its peak. Lagarde further stated that future decisions by the ECB would aim to ensure that policy rates reach sufficiently restrictive levels, facilitating a timely return of inflation to the targeted 2% medium-term goal. Ukraine has reported that Russian forces blew up a large dam in the southern region, resulting in a deluge of floodwater engulfing the battlefield that separates the two armies. As Kyiv intensifies its efforts to reclaim occupied territory, the explosion at the Kakhovska hydroelectric power plant has led to rising water levels that pose a threat to 10 villages on the western bank of the Dnipro River, as well as putting a portion of Kherson city at risk. While crops remain unaffected directly, the prices of wheat have surged by up to 3% in response to concerns over potential supply disruptions. Experts warn that the destruction of the dam signifies a significant escalation with severe consequences and substantial headline risk, adding to the gravity of the situation in the ongoing Ukraine-Russia conflict. In Asia, Chinese authorities have requested the country’s largest banks to reduce their deposit rates. This move, which marks the second such request in less than a year, reflects an intensified effort by the Chinese government to stimulate growth in the world’s second-largest economy. While the decision is not mandatory (yet), the move is seen as a potential incentive for banks to improve its credit support and support spending. Elsewhere, Oil fell 0.90% while Gold fell 0.1% after a quiet session.
To mark my 2800th 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 as none of my calls were hit and is still ahead by 839 points for June. May closed with a gain of 3205 points. April saw a gain of 3354 points while March closed with a gain of 6168 points. The Platinum Service made 3164 points in February, 4687 points in January 2054 points in December, 4789 points in November and a record 9619 points last October. Since I started this New Platinum Service in June 2015 it has averaged a monthly gain of over 1900 points. I have a YouTube Channel which contains recent interviews I have given This can be viewed by clicking HERE Please subscribe to this for new interview notification
Equities
The S&P 500 closed 0.24% higher at a price of 4284.
The Dow Jones Industrial Average closed 10 points higher for a 0.03% gain at a price of 33,573.
The NASDAQ 100 closed 0.01% higher at a price of 14.558.
The Stoxx Europe 600 Index closed 0.41% higher.
Yesterday, the MSCI Asia Pacific closed 0.4% higher.
Yesterday, the Nikkei closed 0.90% higher at a price of 32,506.
Currencies
The Bloomberg Dollar Spot Index closed 0.40% higher.
The Euro closed 0.1% lower at $1.0694.
The British Pound closed 0.1% lower at 1.2423.
The Japanese Yen fell 0.1% closing at $139.70.
Bonds
Germany’s 10-year yield closed 2 basis points lower at 2.36%.
Britain’s 10-year yield closed 1 basis points higher at 4.21%.
U.S.10 Year Treasury closed 1 basis points higher at 3.71%.
Commodities
West Texas Intermediate crude closed 0.90% lower at $71.50 a barrel.
Gold closed 0.10% lower at $1960.10 an ounce.
This morning on the Economic Front we have German Industrial Production at 7.00 am, followed by speeches from ECB Members De Guindos and Panetta at 8.50 am and 10.10 am respectively. Next, we have U.S. MBA Mortgage Applications at 12.00 pm and the Trade Balance at 1.30 pm. Finally, we have the Bank of Canada Rate Announcement at 3.00 pm.
Cash S&P 500
It is incredible what has happened over the past few months: Mortgage Rates at 7%, 500 BPS Rate Hikes, QT, PMI and ISM in contraction, Negative Retail Sales, LEI down for 13 months, Bank Deposit outflows, S&P earnings declining, Yield Curve Inversion and Elevated Credit Spreads yet nothing matters as the S&P again closed at new 2023 highs. Adding to the mix was the 13 Handle close in the VIX after falling 5% yesterday to a new three year low. The VIX is now below the June/July 2021 lows when we were at zero rates with $120 BN in QE every month. The Fear & Greed Index closed with a reading of Extreme Greed last night. Yes, I can make a case for being a buyer of the Dow given the oversold readings in both the $NYSI and $BPSPX but not the NDX with the 14-Day RSI above 75. Recent history tells us that we are looking for some major mean reversion. The market is now going into next week’s Fed Meeting with zero fear. A benign Fed and a low CPI may well see the S&P squeeze to 4400 before all this is over but given all of the above, I just cannot chase the market higher from here preferring to be a seller of rips or buyer of dips. The S&P has strong resistance from 4310/4325. I will now raise my sell level to this area with no stop. I will not chase the S&P higher leaving my 4240/4255 buy level unchanged with the same 4225 tight ‘’Closing Stop’’.
EUR/USD
No Change. I am still long from last Friday at 1.0710. I will continue to look to add to this position at 1.0650 with the same 1.0595 ‘’Closing Stop’’. I will now lower my T/P level to 1.0755. If any of the above levels are hit, I will be back with a new update for my Platinum Members.
June Dollar Index
No Change. I am still flat as I continue to be a seller on any further rally to 104.50/105.10 with the same 105.65 ‘’Closing Stop’’.
Cash DAX
The DAX traded in a narrow range before having a small rally into the New York close. I will now raise my sell level to 16150/16250 with a higher 16325 ‘’Closing Stop’’. If I am taken short, I will have a T/P level at 16080. I still do not want to be long the DAX at this time.
Cash FTSE
The FTSE consolidated its gains since Friday. Despite Gilt Yields at 4.20% the FTSE does not care as every dip since the March lows continues to be bought. I am still flat the FTSE and will now raise my buy level to 7500/7570 with a higher 7445 ‘’Closing Stop’’.
Dow Rolling Contract
Frustratingly, the Dow missed my 33400-buy level by three points before rallying 175 points off this low into the New York close. I am still flat. I will now raise my buy level slightly to 33180/33430 with the same 33095 ‘’Closing Stop’’. I still do not want to be short the Dow at this time.
Cash NASDAQ 100
No Change. I am still short at an average rate of 14495 with the same 14430 T/P level. The only positive in being short is that the NDX has gone nowhere so far this week which is understandable given the valuations and the price of the RSI. I will leave my 14705 ‘’Closing Stop’’ unchanged. If any of the above levels are hit, I will be back with anew update for my Platinum Members.
June BUND
No Change. I am still long from Monday at an average rate of 134.90 with the same 133.85 ‘’Closing Stop’’. Today, I will lower my T/P level to 135.20. If any of the above levels are hit, I will be back with anew update for my Platinum Members.
Gold Rolling Contract
I am still flat. Gold has traded in a narrow range over the past 24 hours. I will continue to be a buyer on any dip lower to 1930/1945 with the same 1919 ‘’Closing Stop’’.
Silver Rolling Contract
No Change. I am still long from Monday at 23.40 with the same 24.20 T/P level. I will add to this position at 22.70 with the same no stop policy. If this changes I will be back with a new update for my Platinum Members.
Recent Comments