U.S. Equity Markets closed lower despite strong economic data, led again by the Small Cap Russell 2000, ending yesterday with a loss of 1.53%. Markets fell for the second straight day. Jobs data were one of the reasons for the selling. Jobless Claims rose and came in above estimates. And the four-week moving average picked up once again. This sparked concerns over a continually choppy job market, which could hamper the broader economy’s recovery. Vaccine news was mixed. PFE said that its vaccine was effective against variants, but was less effective against the South African variant. But the company also said it was working to develop a booster shot. In other economic data, Building Permits hit another near 15-year high, indicating continued strength in the housing market. European Markets also closed lower. Bank of England Economist Michael Saunders said the labour market is the best gauge of economic recovery, adding that he expects more Unemployment when government assistance ends. European Union Commissioner for Trade Vladis Dombrovskis said it would take a tougher stance in trade negotiations going forward, focusing on climate change. Pfizer and BioNTech were said to be behind on their agreement to supply the U.K. with coronavirus vaccine, coming about 10 million doses short. European Union coronavirus vaccinations rose to 23.3 million yesterday, with a daily average of 683,100 doses administered over the last week. Elsewhere, Oil closed 1.83% lower on profit-taking after a recent surge to 13-month highs, while Gold closed flat after a volatile trading session.
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For anyone following my Platinum Service it made 286 points yesterday and is now ahead by 2028 points for February, having finished January with a gain of 2077 points, 2273 points in December, 2025 points in November, 2779 points in October, 3042 points in September, 2383 points in August, 3128 points in July, 2580 points in June, 2456 points in May, 4773 points in April, and an incredible 9264 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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The S&P 500 closed 0.44% lower at a price of 3914.
The Dow Jones Industrial Average closed 119 points lower for a 0.38% loss at a price of 31,493.
The NASDAQ 100 closed 0.45% lower at a price of 13,637.
The Stoxx Europe 600 Index closed 0.6% lower.
The MSCI Asia Pacific Index fell 0.2%.
This morning the Nikkei closed 0.72% lower at a price of 30,017.
The Bloomberg Dollar Spot Index closed 0.3% lower.
The Euro closed 0.4% higher at $1.2092.
The British Pound closed 1% higher at $1.3961.
The Japanese Yen closed 0.2% higher at 105.62 per dollar.
Germany’s 10-year yield closed two basis points lower at -0.34%.
Britain’s 10-year yield closed five basis points higher at 0.62%.
US 10 Year Treasury closed three basis points lower at 1.30%.
West Texas Intermediate crude closed 1.83% lower at $59.79 a barrel.
Gold closed unchanged at $1,771.20 an ounce.
This morning on the Economic Front we already had the release of UK Retail Sales which fell a huge 8.2% versus -3% expected. We also had the release of German PPI which rose 1.4% versus 0.9% expected. Next, we have German, Euro-Zone, UK and U.S. Markit Services/Manufacturing PMI at 8.30 am, 9.00 am, 9.30 am and 2.45 pm respectively. Finally, at 3.00 pm we have Existing Home Sales and a speech from Fed Member Rosengren.
March S&P 500
My S&P plan again worked well with the market trading lower to my 3894 buy level before rallying to my 3903 T/P level and I am still flat. So far the S&P is holding the key 3875/3890 support level but the recent lower highs is warning that this support level may break. Today, I will be a small buyer in this area with a 3864 stop. I will now lower my sell level to 3930/3945 with a 3961 ‘’Closing Stop’’.
My latest 1.2050 long Euro position worked well with the market rallying to my 1.2070 T/P level. This morning the Euro has rallied to my 1.2100 sell level. I am still short but I will leave a tight 1.2041 tight stop on this position. The 1.2130 is key resistance as a break and close over this level will signal a move higher to 1.2200.
March Dollar Index
No Change. I am still short at 90.55 with the same 90.40 T/P level. I will now lower my stop on this position to 90.71.
The DAX again bounced off key support and I am still flat. I am not going to chase the market higher and I will leave my 13730/13810 buy level unchanged with the same 13675 stop.
My long 6675 FTSE position did not work well as the FTSE got hit hard yesterday, stopping me out of this position at 6626 and I am still flat. This morning the FTSE is trading lower at 6578, having hit an overnight low at 6540. The FTSE has strong support from 6480/6540 where I will again be a buyer with a 6435 stop. If I am taken long I will have a T/P level at 6575.
Dow Rolling Contract
My Dow plan worked well yesterday with the market trading lower to my 31350 buy level (low 31285) before rallying to my 31420 revised T/P level and I am still flat. The Dow has short-term support from 31100/31250 where I will again be a buyer with a 30995 tight stop. Ahead of the weekend I will not lower my sell level which will remain unchanged at 31770/31950 with the same 32125 ‘’Closing Stop’’.
The NASDAQ has now closed lower for the second consecutive session, which is unusual given the extent of its rally over the past few months. Yesterday the NASDAQ traded the whole of my buy range for a 13518 average long position before rallying to my revised 13568 T/P level and I am still flat. This morning, the NASDAQ has continued to rally, trading at 13640 as I go to press. We have short-term support from 13440/13510 where I will again be a buyer with a tight 13375 stop. Ahead of the weekend I do not want to be short the NASDAQ.
The BUND traded lower to my 174.50 buy level. I am still long and I will add to this position at 174.00 with the same 173.75 tight stop. I will now lower my T/P level to 174.70.
Gold Rolling Contract
Overnight both Gold and Silver sold off despite the U.S Dollar being weak. Gold hit my 1764 buy level before rallying to my 1770 revised T/P level and I am now flat. Today. I will be a small buyer from 1736/1751 with a tight 1727 stop.
Silver Rolling Contract
My Silver plan worked well with the market trading lower to my 26.50 buy level before rallying to my 26.95 T/P level and I am now flat. Today, I will again be a buyer from 25.70/26.30 with a 25.35 stop.