U.S Indices closed lower for the third consecutive trading session as fears of a stalling job market recovery weighed on markets. New Initial Jobless Claims reached 898,000 in the week ending October 10, according to the Department of Labour. This was an increase from the prior week, and more than Wall Street’s estimate of 825,000. The recent stall in the numbers just above the 800,000 range could fuel the bearish case for a slowing economic recovery. On the vaccine front, BioNTech’s CEO said that while the company’s COVID-19 vaccine, being jointly developed with Pfizer, has some side effects, the trial could still publish safety data as early as this month. Scepticism around stimulus remained, as President Donald Trump said he would be in favour of a deal above the $1.8 trillion Republican proposal. The NASDAQ 100 led the decline, closing 0.72% lower. European Indices got hit hard yesterday, led by the DAX which finished 2.3% lower. French President Emmanuel Macron said he does not envisage national lockdowns but the country will impose nightly curfews and limit gatherings to contain the Coronavirus spread. The German government announced new restrictions on gatherings and mandates on wearing face masks as the number of daily COVID-19 infections passed 5,000. London Mayor Sadiq Kahn said the city was preparing for the introduction of stricter measures to contain the advance of Coronavirus cases. Group of 20 finance ministers pledged to do whatever it takes to support the global economy and promote financial stability. Elsewhere, Oil closed 0.5% lower as fears of rising Coronavirus cases across the world sparked concerns of slowing growth, while Gold closed flat after a mixed trading session.
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For anyone following my Platinum Service it made 295 points yesterday and is now ahead by 1495 points for October, having made 3042 points in September, 2383 points in August, 3128 points in July, 2580 points in June, 2456 points in May, 4773 points in April, an incredible 9264 points in March, 2223 points in February and 2142 points in January. 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 0.15% lower at a price of 3483.
The Dow Jones Industrial Average closed 19 points lower for a 0.07% loss at a price of 28,494.
The NASDAQ 100 closed 0.72% lower at a price of 11,898.
The Stoxx Europe 600 Index closed 1.5% lower.
The MSCI Asia Pacific Index rose 0.2%%.
This morning the Nikkei closed 0.41% lower at a price of 23,410.
The Bloomberg Dollar Spot Index closed 0.4% higher.
The Euro closed 0.4% lower at $1.1703.
The British Pound closed 0.7% lower at $1.2904.
The Japanese Yen closed 0.2% higher at 105.27 per dollar.
The yield on 10-year Treasuries closed two basis points higher at 0.73%.
Germany’s 10-year yield closed three basis points lower at -0.62%.
Britain’s 10-year yield closed four basis points lower at 0.18%.
The Bloomberg Commodity Index closed 0.1% lower.
West Texas Intermediate closed 0.5% lower at $40.80 a barrel.
Gold closed 0.1% lower at $1900 an ounce.
This morning on the Economic Front we have Euro-Zone Trade Balance and CCPI at 10.00 am. This is followed at 1.30 pm by U.S Retails Sales. At 2.15 pm we have Industrial Production and Capacity Utilisation. Finally, at 3.00 pm we have University of Michigan Consumer Sentiment and Business Inventories. Today’s main earnings are from Bank of New York Mellon, J.B. Hunt and VF Corp.
December S&P 500
I mentioned yesterday the importance of the key 3440/3455 support area and this proved correct as the S&P made a low at 3433 before rallying to hit an overnight high above 3490. Yesterday’ move lower closed the second of the four ‘’Open Gaps’’ from last week. As long as the S&P can hold the 3450 level I will continue to be a buyer of dips. Yesterday, the S&P traded the whole of my buy range for a 3447 average long position before rallying to my too tight 3456 T/P level and I am still flat. Today, I will again be a buyer from 3443/3458 with the same 3429 wider stop. Meanwhile ahead of the weekend I will leave my 3512/3527 sell level unchanged with the same 3541 stop.
The Euro sold off shortly after I posted yesterday morning and I am now long at a price of 1.1700. I will add to this trade at 1.1660 with a now lower 1.1625 stop. I will also lower my T/P level to 1.1730 and if any of he above levels are hit I will be back with a new update for my Platinum Members.
December Dollar Index
My latest 93.25 long Dollar position worked well with the market trading higher to my 93.50 T/P level and I am still flat. This morning the Dollar is trading higher at 93.82. Ahead of the weekend I will again be a buyer on any dip lower to 93.10/93.50 with a 92.79 stop.
This morning Germany has reported 7334 new Coronavirus Daily cases which brings the active cases to over 50,000. It is no wonder that the DAX fell over 300 points yesterday as the country faces further lockdowns. Yesterday I had the right view in buying the dip but unfortunately I did not give a ‘’Closing Stop’’ and after I bought the DAX at a 12675 average price I was stopped out near the low of the day at 12595 which is frustrating with the DAX trading higher at 12755 this morning. Today. I will again be a buyer on any further dip to 12540/12640 with a 12465 ‘’Closing Stop’’. Despite the bearish price action over the past 48 hours I still do not want to be short the market at this time.
My FTSE plan worked well as after the market traded lower to my 5770 buy level we rallied to my 5810 revised T/P level and I am still flat. This morning the FTSE is trading higher at 5860. Today, I will again be a buyer from 5770/5820 with a 5725 stop.
Dow Rolling Contract
My Dow plan worked well with the market trading lower to my 28240 buy level before rallying to my revised 28335 T/P level and I am still flat. As long as the Dow can hold the key 27800/28000 support zone I will continue to be a buyer on dips. Today my buy level will be from 28150/28350 with a 27995 stop. If I am taken long and subsequently stopped out of this position I will be an aggressive buyer from 27700/27900 with a 27595 stop.
Yesterday’s initial sell-off saw the NASDAQ trade lower to my 11780 buy level before rallying to my 11850 revised T/P level and I am still flat. As long as the NASDAQ does not break and close above 12000 there is every chance that we can trade back to the 11400 support level. Today, I will be a small seller from 11995/12075 with a 12155 tight stop. We have near-term support from 11680/11760 where I will be a buyer with a 11595 stop.
My Bund plan worked well with the market trading higher to my 176.10 sell level before selling off to my 175.90 revised T/P level and I am still flat. The Bund has strong resistance from 176.25/176.65 where I will be a seller with a 177.05 stop.
Gold Rolling Contract
The boring sideways price action in Gold continues and I am still flat. Given the strength of the Dollar I am not going to chase the market higher and I will leave my 1856/1868 buy level unchanged with the same 1847 stop.
Silver Rolling Contract
My Silver plan also worked well with the market trading lower to my 23.60 buy level before rallying to my 23.95 T/P level and I am still flat. Today, I will again be a buyer from 23.00/23.60 with the same 22.45. If I am taken long I will have the same 23.95 T/P level.