Theresa May tells Parliament she’s still trying to get a Brexit deal approved to avoid getting stuck in a long extension. She also hinted that a compromise on what trade ties with the bloc should look like after Brexit might be possible in talks with the opposition Labour Party.

Key Developments:

EU leaders agree to extend Brexit to Oct. 31

May still aims to leave next month, if a deal can get done

PM hints at possible compromise over a customs union

Brexiteer MP Bill Cash calls on May to resign

May repeats she opposes a second referendum

The party being set up by 11 Conservative and Labour defectors will stand candidates for European Parliament in all regions of the U.K. — if it can register on time with the Electoral Commission. The Independent Group of Members of Parliament, who all quit their respective parties in February largely over Brexit, are in the process of setting up official party structures and plan to be called “Change U.K. – The Independent Group.” They’ve named former Tory Heidi Allen as their leader, with former Labour MP Chuka Umunna their spokesman. “All of our candidates will be making the case for a People’s Vote,” Umunna said in a statement. “Brexit is proving to be undeliverable, we believe the people should have the final say on this matter, and the best option is for the U.K. to remain a full member of the European Union.” Theresa May suggested there isn’t much difference between Labour and her government on their trade proposals. Her comments indicate a customs union is a possible area for compromise in cross-party talks aimed at finding a new Brexit approach.

To mark my 1800th 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@tradernoblecom for details

For anyone following my Platinum Service it was flat yesterday and is now ahead by 352 points for April, having made 1027 points in March, 1013 points in February, 1671 points in January, 2803 points in December, 1541 points in November and 2094 points in October. 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

Most U.S. equity benchmarks declined amid thin volumes yesterday as investors cast an eye toward the start of earnings season. Treasuries dropped as data confirmed the economy remains on solid footing.

The S&P 500 was an outlier among stock indexes, eking out its 10th gain in 11 sessions in trading more than 20 percent below its 30-day average. Health insurers led decliners as political risks intensified, while industrials paced gains as Boeing, still embattled in the 737 Max crisis, snapped a four-day losing streak. Banking shares rose before Wells Fargo and JPMorgan report first-quarter earnings that will lead off the season Friday. The S&P 500 Index closed little changed at 2,888.32, while the Nasdaq Composite Index fell 0.2 percent, and the Dow industrial dropped 0.1 percent.In Europe the Stoxx Europe 600 Index increased 0.1 percent.

Bonds

The 10-year Treasury yield pushed toward 2.50 percent after data showed a strong U.S. labor market and tepid price gains closing three basis points higher  at 2.495 percent. Meanwhile in Europe Germany’s 10-year yield climbed two basis points to -0.01 percent and Britain’s 10-year yield advanced five basis points to 1.15 percent.

Currencies

The US Dollar advanced the most in more than a week, while the Pound fell as Prime Minister Theresa May accepted the European Union’s offer to push the Brexit deadline out six months. The Bloomberg Dollar Spot Index climbed 0.3%, Even though the Euro fell 0.2 percent to close  at $1.1256 in New York last night it is opening higher at 1.1285 this morning. The British pound declined 0.2 percent to $1.3062, where it sits this morning

Commodities

Oil in New York retreated from a five-month high as an increase in U.S. inventories to the highest since late 2017 overshadowed OPEC’s efforts to reduce production. West Texas crude fell 1.4 percent to $63.72 a barrel. Gold had bad day falling 1.4% to close at $1295 an ounce. Overnight Gold fell to 1289 before rallying to open at 1293 in London this morning.

This morning on the Economic Front we already had the release of German Wholesale Inventories which rose 0.3% as expected. Next we have Euro-Zone Industrial Production at 10.00 am and this is followed by US Import/Export Price Index at 1.30 pm. Finally at 3.00 pm we have the University of Michigan Consumer Sentiment Index.

June S&P 500

So far this has been the quietest trading week of the year so far with yesterday’s volume the lowest for the year to date. It hard to make points when we do not have any movement. This is especially true for all the main asset classes with the Euro now trading with the same 1.12 Handle for two weeks now. With the DSI at such elevated levels I am reluctant to chase this market higher and today I will leave my 2865/2873 buy level unchanged with the same 2654 stop. I will continue to be a small seller on any rally higher to 2908/2918 with a 2926 stop.

EUR/USD

The Euro again just missed my 1.1235 buy level and I am still flat. Today I will raise my buy level to 1.1200/1.1240 with a higher 1.1160 stop. I still do not want to be short the Euro at this time.

June Dollar Index

I am still flat the Dollar and today I will lower my sell level to 97.00/97.40 with a 97.75 stop.

June DAX

The DAX also missed my buy level by 25 points before spending the rest of yesterday’s session trading sideways to higher and I am still flat. As long as the DAX can stay above 11800 the technical picture is bullish despite German Growth being downgraded to just 0.5% this year from 1.0% previously. Today I will raise my buy level to 11795/11865 with a 11740 higher stop.

June FTSE

I am still flat the market and today with the Pound under pressure will raise my sell level to 7420/7460 with a higher 7495 stop. Given how overbought the FTSE is trading I still do not want to be long the FTSE at this time.

Dow Rolling Contract

I had the right idea of trying to fade the Dow yesterday but unfortunately the Dow fell just shy of my sell level before falling 150 points. Subsequently the Dow rallied 100 points of the above losses in the last 30 minutes of trading and I am still flat. Today I will leave my 25830/25980 buy level unchanged with the same 25740 stop. Ahead of a weekend I no longer want to be short the Dow.

June NASDAQ

No Change as I am still a small seller of the NASDAQ on any rally higher to 7680/7730 with the same 7765 stop.

June BUND

The boring sideways action in the Bund continues. With the ECB saying no rate hikes this year it is difficult to see much volatility in the Bund unless we see a pick up in both growth and inflation which going by the economic releases this year will be a long shot. Today I will lower my sell level to 165.95/166.35 with a 166.65 stop.

Gold Rolling Contract

Gold fell $20 after I posted yesterday morning and I am still flat. Gold has good support from 1268/1276 and today I will be a buyer on any dip to this area with a 1261 stop.

Silver Rolling Contract

Late yesterday Silver traded lower to my 15.05 buy level with a 14.86 low print. I am still long and I will now lower my T/P level on this position to 15.15. I will only add to this position on any further move lower to 14.70 with a now lower 14.50 stop. If any of the above levels are hit I will be back with a new update for my Platinum Members.