U.S. Equity Markets trended higher as U.S. weekly Jobless Claims fell below 300,000, finishing the day higher, led by the S&P having its best trading session in seven months with a gain of 1.71%. Weekly Jobless Claims fell below 300,000 for the first time since March, leaving unemployment levels at only a few thousand above pre-pandemic levels. U.S. banks beat profit estimates on a pickup in trading activity, fuelled by the recovering economy – which enabled them to release more loan-loss reserves. Meanwhile, the Producer Price Index (“PPI”) in the U.S. rose 8.6% in September compared with the anticipated increase of 8.7%. In the S&P 500, all 11 sectors finished higher. European Indices surged. The European Union and the U.S. are reportedly working on a solution to resolve steel tariffs, which were imposed by former President Donald Trump, by the end of October. EU officials discussed plans to give households and businesses tax breaks to protect them from rising energy costs, as they’re concerned about disrupting economic growth. European Central Bank President Christine Lagarde reiterated that she sees inflation as temporary, but warned it could persist if long-term supply-chain problems continue. The EU’s COVID-19 vaccination rates rose to 583.4 million, with 63.6% of its residents fully inoculated. In Asia, China’s Consumer Price Index (“CPI”) data for September was weaker than anticipated while the Producer Price Index (“PPI”) hit its highest level since 1995. Japanese Prime Minister Fumio Kishida said the government would set aside money in the country’s next stimulus package to fund domestic semiconductor manufacturing. South Korea’s Finance Minister Hong Nam-ki said the government plans to continue “expansionary fiscal policies” next year to support the economy. Australia’s job figures for September were weaker than estimated, as they were disrupted by COVID-19-related restrictions in the country’s two largest states. Elsewhere, Oil rose 1.17% after the Energy Information Administration (“EIA”) raised its global demand forecasts, while Bitcoin fell 6% following China’s ban of cryptocurrencies.
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For anyone following my Platinum Service it lost 335 points yesterday and is now ahead by 568 points for October after making 2866 points in September, having closed August with a gain of 1543 points, 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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The S&P 500 closed 1.71% higher at a price of 4438.
The Dow Jones Industrial Average closed 534 points higher for a 1.56% gain at a price of 34,912.
The NASDAQ 100 closed 1.88% higher at a price of 15,052.
The Stoxx Europe 600 Index closed 1.1% higher.
Yesterday, the MSCI Asia Pacific Index rose 0.8%.
Yesterday, the Nikkei closed 1.46% higher at a price of 28,550.
The Bloomberg Dollar Spot Index closed 0.1% lower.
The Euro closed 0.1% lower at $1.1588.
The British Pound closed 0.1% higher at 1.3671.
The Japanese Yen fell 0.3%, closing at $113.67.
Germany’s 10-year yield closed six basis points lower at -0.19%.
Britain’s 10-year yield closed six basis points lower at 1.04%.
US 10 Year Treasury closed two basis points lower at 1.51%.
West Texas Intermediate crude closed 1.17% higher at $81.86 a barrel.
Gold closed 0.1% higher at $1,796.10 an ounce.
This morning on the Economic Front we have Euro-Zone Trade Balance at 10.00 am. This is followed by U.S. Retail Sales, New York Empire State Manufacturing Index and the Import/Export Price Index. Finally, at 3.0 pm we have the University of Michigan Consumer Sentiment and Business Inventories.
December S&P 500
The S&P had it best session in seven months, closing 2 Handles above its 50-Day Moving Average as yet again anyone trying to short the market gets slammed including me. Yesterday’s move higher saw the market leave a huge 25 Handle Gap from Wednesday’s Chicago close. I went short at an average rate of 4386 before being stopped out of this trade at 4416 and I am still flat. The S&P has further resistance from 4452/4477 which must hold for the bears to have any chance of seeing lower prices. I will be a small seller in this area with a 4491 ‘’Closing Stop’’. Despite U.S CPI printing above 5% for the fourth consecutive month nobody cares with yesterday’s rally driven by a weaker Dollar and lower Bond Yields. The S&P has support from 4395/4410 where I will be a small buyer with a 4381 ‘’Closing Stop’’. If I am taken short I will have a T/P level at 4432. If I am taken long I will have a T/P level at 4422.
The Euro rallied to my 1.1605 T/P level on last week’s 1.1590 long position and I am now flat. The Euro has strong resistance from 1.1655/1.1695 where I will be a small seller with a 1.1731 tight stop. We have short-term support from 1.1495/1.1545 where I will be a buyer with a 1.1459 stop.
December Dollar Index
The Dollar traded in a narrow range yesterday and I am still flat. I will continue to be a seller from 94.30/94.70 with the same 95.01 stop.
Thankfully we had no sell level in the DAX yesterday as the market surged over 300 points and I am still flat. After closing above 15400 the DAX is now back on a buy signal. I will now raise my buy level to 15310/15380 with a 15245 tight stop.
The FTSE never came close to yesterday’s buy range and I am still flat. I will now raise my buy level to 7085/7135 with a higher 7039 stop.
Dow Rolling Contract
The Dow closed at 34910 last night – 800 points higher from the low on Wednesday afternoon, an incredible move. This move higher had me short at an average rate of 34755, before stopping me out on the close at 34905 and I am now flat. The Dow has resistance from 35100/35280 where I will again be a seller with a 35405 ”Closing Stop”. If I am taken short I will have a T/P level at 34950.
As I was already short both the Dow and S&P, I waited to sell the NASDAQ which I did at the top of yesterday’s range for a now 14980 short position. I will add to this trade at 15100 with a tight 15165 ‘’Closing Stop’’.
Frustratingly the Bund just missed my buy level yesterday before rallying 130 points as expected. Tuesday’s -9 basis point Yield high is now a line in the sand with the Bund Yield falling to -19 basis points last night. The Bund has resistance from 170.40/170.90 where I will be a small seller with a 171.25 stop.
Gold Rolling Contract
No Change. I am still a buyer on any dip lower to 1754/1769 with the same 1743 stop.
Silver Rolling Contract
Silver is on a buy signal and I will now raise my buy level to 22.50/23.10 with a higher 21.95 stop.