U.S. stocks climbed the most since October on speculation that efforts to contain the coronavirus will prevent a major economic fallout. The S&P 500 Index rebounded from its worst sell-off in four months, with technology shares leading the charge. Some of the companies that suffered the biggest losses during the latest equity rout, such as chipmakers, casino operators and airlines, advanced on Tuesday. Oil traded above $53 a barrel in New York. Demand for havens cooled, sending Treasuries and Gold lower. After the close of regular trading, Apple Inc. jumped on a revenue forecast that topped analyst estimates. Starbucks Corp. reported sales that beat Wall Street’s projections and said it closed more than half of its mainland China locations because of the viral outbreak. Both Advanced Micro Devices Inc. and EBay Inc. gave lackluster guidance. Equities rallied after a slide that wiped about $1.5 trillion off the value of world stocks since Jan. 20. As it’s too early to assess the full impact of the deadly virus, traders digested some positive readings on U.S. consumer confidence and home prices. With earnings continuing to roll in, investors will be looking for signs of how the disease is affecting operations in China.
To mark my 1975th 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 50 points yesterday and is now ahead by 1859 points for January, having made 818 points in December, 780 points in November, 1649 points in October, 1620 points in September, 2387 points in August, 1153 points in July, 1346 points in June,1722 points in May, 955 points in April and 1027 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 climbed 1% to close at 3276.
The Dow Jones Industrial Average rose 187 points to close at a price of 28,727.
The Stoxx Europe 600 Index rose 0.8%.
The MSCI Emerging Market Index fell 0.1%.
Currencies
Here is a summary of the main Changes in F.X. Markets:
The Bloomberg Dollar Spot Index decreased 0.1%.
The Euro was unchanged at $1.1019.
The Japanese Yen weakened 0.2% to 109.14 per dollar.
Bonds
The yield on 10-year Treasuries rose four basis points to 1.65%.
Germany’s 10-year yield climbed four basis points to -0.34%.
Britain’s 10-year yield jumped four basis points to 0.552%.
Commodities
The Bloomberg Commodity Index advanced 0.1%.
West Texas Intermediate crude rose to $53.48 a barrel.
Gold decreased 0.5% to $1,575.80 an ounce.
This morning on the Economic Front we have German GFK Consumer Confidence at 7.00 am. This is followed by Euro-Zone Money Supply at 9.00 am and the U.S MBA Mortgage Applications at 12.00 pm. At 1.30 pm we have Wholesale Inventories and the Trade Balance. Finally, at 3.00 pm we have Pending Home Sales ahead of the FOMC Rate Decision at 7.00 pm, where Federal Reserve policy makers are expected to open 2020 the same way they closed 2019 — by holding rates steady.
March S&P 500
I have said many times over the past eight years writing this commentary that all ‘’Open Gaps’’ get filled at some stage. There was no way Friday’s 3295 close to Monday’s 3257 rebound high was going to go unfilled and as I post this morning the S&P is now trading at 3288. This is 54 Handles higher than the low registered on Monday as yet again traders buy the dip. However, there was a lot of technical damage done with the sell-off from Friday afternoon to the close on Monday night, but as I mentioned yesterday everytime the S&P looks like we will roll over it bounces back even stronger. The S&P needs to break and close over 3300 for me to turn short-term bullish. Today I will be a small seller from 3299/3312 with a 3321 tight stop. I will also look to buy the S&P on any dip lower to 3252/3265 with a 3241 stop.
EUR/USD
The Euro just missed my 1.0995 buy level with a 1.0998 low print before having a small rally into the close. Today I will raise my buy level to 1.0960/1.1000 with a higher 1.0925 stop.
March Dollar Index
The Dollar rallied to my second sell level at 9290 for a now 9270 average short position. I will now raise my stop on this position to 98.20. I will also raise my T/P level to 97.45 and if any of the above levels are hit I will be back with a new update for my Platinum Members.
March DAX
European markets reacted as if nothing happened last Friday/Monday with the DAX closing 200 points higher. I am still flat and today I will raise my buy level to 13180/13240 with a 13125 stop.
March FTSE
It did not take long for the FTSE to regain a lot of Monday’s loss as the market made it back to the bottom of its Daily Bollinger Band. I am still flat and today I will raise my buy level to 7300/7360 with a 7255 stop.
Dow Rolling Contract
I am still flat the Dow as the market looks to test the key 28950/29100 resistance area. I will be a small seller in this range with a 29195 tight stop. Monday’s sell-off saw the market generate a Hindenburg Omen. We need a second HO within the next 30 days to have a confirmed HO on the clock. For this reason I do not want to be long the Dow at this time.
March NASDAQ
The NASDAQ exploded to the upside yesterday with the rise continuing after the close as Apple beat estimates. The NASDAQ has support from 9000/9060 and I will be a buyer in this area with a 8945 stop.
March BUND
The BUND fell short of my sell level with a 174.45 high print before following the US Treasury Market lower and I am still flat. Today I will lower my sell level to 174.20/174.60 with a lower 175.05 stop.
Gold Rolling Contract
Gold fell yesterday after the equity markets recovered. I am still flat. Gold has short-term support from 1538/1548 and I will be a buyer in this area with a 1529 stop.
Silver Rolling Contract
Silver fell shy of my 18.20 T/P level before my latest 18.05 long position was stopped out at 17.55 and I am now flat. Silver has support from 16.70/17.10 and I will be a buyer on any dip to this area with a 16.25 stop.
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