U.S. Equity Markets reversed earlier losses to close higher led by the NASDAQ 100’s gain of 1.21%. Just before the close, the S&P 500 Index hit the same resistance level (between 4,520 and 4,530) that caused the sharp sell-off into the close on Monday. Yesterday, though, the decline was not as drastic – more like a slow bleed from the day’s highs. Geopolitical tensions seemed to ease, which boosted investor sentiment today. French President Emmanuel Macron and Russian President Vladimir Putin said the two sides made some progress in discussions concerning Ukraine tensions. French officials also reportedly said that Putin agreed to not undertake more military actions for the time being. The two sides also agreed to continue negotiations. This could help ease the inflation outlook, as the tensions possibly could disrupt Europe’s energy supply (and push prices higher). Investors are still digesting earnings-related headlines, and are eagerly anticipating Thursday’s Consumer Price Index (“CPI”) release. On the earnings front, more than half of the S&P 500 has reported quarterly results. The earnings growth rate continues to improve, but the percentage of companies beating estimates is lagging the recent and historical average. Within the S&P 500, eight of the 11 sectors finished higher. European Markets closed mixed. European Central Bank President Christine Lagarde said central bank policy decisions will remain data-dependent and policy adjustments gradual. This was echoed by ECB governing council member Pablo Hernández de Cos, who said that the central bank will not tighten conditions too quickly. European Commission President Ursula von der Leyen announced a $17 billion plan to invest in semiconductor plants, to avoid any future chip supply crunches. In Asia, Japan and the U.S. announced an agreement that would roll back some steel tariffs imposed by the administration of former President Donald Trump. Chinese Foreign Ministry spokesperson Zhao Lijian said U.S. legislation to support domestic semiconductor manufacturing and supply chains undermines China’s development. Japan’s household spending figures for December gained versus November as more money went toward housing, education, and transportation. National Australia Bank’s Business Confidence Index data for January rose versus December, jumping back into positive territory, as optimism about overseas demand increased. Elsewhere, Oil fell 2% as de-escalating tensions in Europe lowered the chances of a supply disruption, while Gold gained a further 0.35%.
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For anyone following my Platinum Service it made 315 points yesterday and is now ahead by 2000 points for February, after ending January with a gain of 3878 points, more than making up for December’s 932 points loss, 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, after ending March with an impressive gain of 3769 points. Since I started this New Platinum Service in June 2015 it has averaged a monthly gain of over 1600 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 0.84% higher at a price of 4521.
The Dow Jones Industrial Average closed 372 points higher for a 1.06% gain at a price of 35,463.
The NASDAQ 100 closed 1.21% higher at a price of 14,747.
The Stoxx Europe 600 Index closed 0.6% higher.
Yesterday, the MSCI Asia Pacific Index fell 0.2%.
Yesterday, the Nikkei closed 0.13% higher at a price of 27,284.
Currencies
The Bloomberg Dollar Spot Index closed 0.1% higher.
The Euro closed 0.1% lower at $1.1421.
The British Pound closed 0.1% higher at 1.3549.
The Japanese Yen fell 0.3%, closing at $115.53.
Bonds
Germany’s 10-year yield closed four basis points higher at 0.27%.
Britain’s 10-year yield closed seven basis points higher at 1.49%.
US 10 Year Treasury closed three basis points higher at 1.96%.
Commodities
West Texas Intermediate crude closed 2% lower at $89.45 a barrel.
Gold closed 0.35% higher at $1,825.10 an ounce.
This morning on the Economic Front we have German Current Account and Trade Balance at 7.00 am. This is followed by U.S. Wholesale Inventories at 3.00 pm. Finally, we have a ten-year Treasury Auction at 6.00 pm and this will be important given the rise in Bond Yields over the past week.
Cash S&P 500
The idea of buying dips only in U.S. Indexes ahead of tomorrow’s key CPI data again paid dividends yesterday. The S&P hit my 4467 buy level before rallying to my 4484 T/P level with a high at 4532 as yet again anyone shorting the market was forced to cover. The $NYSE Stochastic is now finally on max oversold. This is not a day trading signal but it does tell us where we are are and sizeable lows do form from such readings as this especially when the $NYSI is this negative. Today, the S&P has strong support from 4490/4510 where I will be a buyer with a 4475 stop. My only interest in selling the S&P is still on a further rally to 4570/4590 where I will be a small seller with a 4608 stop.
EUR/USD
The Euro traded lower to my 1.1400 buy level which is no surprise when we see 10 Year Treasuries approaching 2%. I am still long with a now lower 1.1435 stop. I still do not want to be short the Euro at this time.
March Dollar Index
No Change. I will continue to look to sell the market from 95.80/96.30 with the same 96.55 tight stop.
Cash DAX
No Change. I refuse to chase the DAX higher, thus leaving my 14900/14980 buy level unchanged with the same 14815 stop. If I am taken long I will have a T/P level at 15050.
Cash FTSE
I am still flat. The FTSE again fell shy of yesterday’s buy range before rallying 50 points off its 7547 low print. Today, I will raise my buy level to 7490/7550 with a tight 7445 stop. I no longer want to be short the FTSE at this time.
Dow Rolling Contract
The Dow was strong all day yesterday before accelerating into the close to sit at 35500. The Dow has resistance from 35800/36000 where I will be a small seller with a 36205 stop. Ahead of tomorrow my only interest in buying the Dow is on a dip lower to 34900/35100 with a higher 34695 stop.
Cash NASDAQ 100
My NDX plan again worked well with the market trading lower to my 14500 buy level before rallying to my 15605 T/P level (high 14785) and I am still flat. The NDX has support from 14550/14650 where I will again be a buyer with no stop. If I am taken long I will have a T/P level at 14745.
March BUND
No Change. I am still long at 166.26 with the same 166.50 T/P level. Given we are having a nice month of gains I do not mind holding this Bund position with no stop given how oversold Bond Markets are at this time.
Gold Rolling Contract
Gold again consolidated above 1800 on little news and I am still flat. Today, I will raise my buy level to 1795/1809 with a tight 1783 stop. If I am taken long I will have a T/P level at 1817.
Silver Rolling Contract
My Silver plan worked well with the market trading lower to my 22.80 buy level before rallying to my 23.20 T/P level and I am now flat. Today, I will again be a buyer from 22.30/22.90 with no stop. If I am taken long I will have a T/P level at 23.35.
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