U.S. Equity Markets surged for the second consecutive trading session as the vertical move higher was led by the NASDAQ 100, closing with a gain of 3.03%. This move higher saw the VIX close 19.50% lower at a price of 21.89. Pharmaceutical giant GlaxoSmithKline and partner Vir Biotechnology said their COVID-19 antibody treatment has proven effective against all Omicron mutations in earlier trials. This boosted optimism that there is a COVID-19 treatment that won’t be less effective against Omicron and future variants. And Pfizer’s CEO said that the Omicron variant would likely be more mild than previous variants, despite being more transmissible. The lower severity could spark optimism that illness and hospitalisations will not be as bad as previously thought. Any negative news on Omicron would likely send markets lower. Omicron headlines will continue to dominate markets for the near term. Investors do have an eye on Friday’s Consumer Price Index (“CPI”) release, which will give up-to-date data on the inflation picture. Within the S&P 500, all 11 sectors finished higher. European Markets also surged. Euro-Zone third-quarter final gross domestic product (“GDP”) data rose from the preliminary reading, meaning economic growth is stronger than expected. German Industrial Production figures for October beat Wall Street’s expectations, implying automobile manufacturing is likely rebounding. European Central Bank Governing Council member Robert Holzman said he would be in favour of raising interest rates even if bond purchases have not ended. But the International Monetary Fund said the ECB should overlook “transitory” inflation pressures and keep policy accommodative. In Asia, The People’s Bank of China lowered banks’ reserve requirement ratio by 50 basis points, freeing up roughly $190 billion in lending capacity to support economic growth. Japan’s household spending data for October rose for the second straight month, indicating economic activity is rebounding as coronavirus social-distancing restrictions have eased. China’s export numbers for November exceeded expectations, setting a new record in Dollar terms, as shipments to the U.S. and European Union remained strong. The Reserve Bank of Australia left interest rates unchanged at its latest policy meeting, saying it does not expect the COVID-19 Omicron variant to derail the economic rebound. Elsewhere, Oil continued its recent surge as fears of the Omicron variant’s impact on the economy eased, closing higher by 2.73%, while Bitcoin rose 3% as Grayscale’s investor survey showed a growing appetite for bitcoin and crypto investment products.
To mark my 2450th 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 lost 439 points yesterday, and is now down by 344 points for December, having made 2466 points in November, 1028 points in October, 2866 points in September, 1543 points in August, and 996 points in July. The Platinum Service made 1366 points in June, 1439 points in May, 1244 points in April, having ended March with an impressive gain of 3769 points, 3286 points in February, 2077 points in January, and 2273 points last December. 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 2.07% higher at a price of 4686.
The Dow Jones Industrial Average closed 492 points higher for a 1.40% gain at a price of 35,719.
The NASDAQ 100 closed 3.03% higher at a price of 16,325.
The Stoxx Europe 600 Index closed 1.2% higher.
Yesterday, the MSCI Asia Pacific Index rose 0.9%.
Yesterday, the Nikkei closed 1.89% higher at a price of 28,455.
Currencies
The Bloomberg Dollar Spot Index closed 0.3% higher.
The Euro closed 0.20% lower at $1.1258.
The British Pound closed 0.1% lower at 1.3243.
The Japanese Yen fell 0.1%, closing at $113.59.
Bonds
Germany’s 10-year yield closed one basis points higher at -0.36%.
Britain’s 10-year yield closed two basis points lower at 0.74%.
US 10 Year Treasury closed four basis points higher at 1.48%.
Commodities
West Texas Intermediate crude closed 2.78% higher at $72.65 a barrel.
Gold closed 0.42% higher at $1,784.20 an ounce.
This morning on the Economic Front we have no data of note from either the UK or the Euro-Zone. At 12.00 pm we have U.S. MBA Mortgage Applications, followed by JOLTS Job Openings at 3.00 pm. Finally, at the same time we have the Bank of Canada Rate Decision.
December S&P 500
Not a good day for me. Hopefully, by the time you read my Daily Commentary yesterday morning the S&P was trading near 4650 and well above my sell range. I sold the S&P at an average rate of 4624 before getting stopped out of this position near the close at 4671 and I am now flat. I should have paid more attention to last weeks -218 closing print in the McClellan Oscillator as yet again this signal has proven to be a major buy signal. The Bull Market in the S&P may prove to be the ultimate illusion as it is only a Bull Market in a few stocks while the rest of the Market is in a Bear Market, making it extremely difficult to trade. One large Gap after another whether on the top side or on the low side every night for the past two weeks. As I go to press the S&P is overbought-trading 150 Handles above the 50 -Day Moving Average as we wait for Friday’s latest CPI figure. We have resistance from 4708/4722 where I will again be a small seller with a 4735 ‘’Closing Stop’’. I will now raise my buy level to 4640/4655 with a 4619 ‘’Closing Stop’’. If I am taken short I will have a T/P level at 4693. If I am taken long I will have a T/P level at 4669.
EUR/USD
The Euro sold off to my initial 1.1240 buy level before having a small rally into the New York close. I have now exited this position at 1.1271 and I am now flat. Today, I will be a buyer from 1.1160/1.1210 with a tight 1.1125 stop. I will now lower my sell level to 1.1340/1.1390 with a lower 1.1425 stop.
March Dollar Index
No Change. I am still a seller from 96.65/97.05 with the same 97.51 stop.
December DAX
Thankfully we had no sell level in either the DAX or FTSE yesterday as both markets surged. The DAX is now trading 900 points higher from where it was last Friday. This is insane especially when Factory Orders crashed. The power of QE keeps inflating these prices. The DAX has resistance from 15030/15090 where I will be a small seller with a 15145 stop.
December FTSE
The FTSE never came close to my buy level before rallying almost 150 points yesterday and I am still flat. I will now raise my buy level to 7185/7235 with a higher 7128 stop.
Dow Rolling Contract
As I was already short the S&P, I waited to sell the Dow at a price of 35600. I am still short with a now higher T/P level of 35480. I will now raise my Stop on this position to 35825 (Closing Price). The Dow has strong support from 35200/35380 where I will be a small buyer with a 34995 ‘’Closing Stop’’. If I am taken long I will have a T/P level at 35530.
December NASDAQ
The NDX rallied an incredible 500 points yesterday, one of the highest points rises in one trading session ever. Thankfully, we had no sell level and I am still flat. I am going to stay flat the NDX today as I cannot chase this market higher at these levels and I certainly do not want to be short against this massive uptrend.
March Bund
No Change. I am still a seller from 174.90/175.50 with the same 175.81 stop.
Gold Rolling Contract
No Change. I am still a buyer on any dip lower to 1739/1754 with a 1725 stop.
Silver Rolling Contract
I am still long at 22.75 with the same 22.85 T/P level. I will leave my 21.85 stop unchanged 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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