U.S. Equity Markets rallied again, led by the S&P 500 which closed at a new all-time high with a gain of 0.30%. However, after the close Futures Markets sold off following an earnings miss from Intel. Jobs data was the big headline of the day. In the week ending October 16, 290,000 individuals filed Initial Jobless Claims, according to the U.S. Department of Labour. This was below the prior week’s upwardly revised 296,000 figure and Wall Street’s estimate of 297,000. The number also marked a new low since the COVID-19 pandemic began. In other economic data, Existing Home Sales rose more than expected, and hit the highest annualised rate since January. In D.C., a corporate tax hike is likely out of the question to fund President Biden’s budget bill. And the price tag will likely come in well below the $3.5 trillion proposal. That change should continue to support the equity markets given the removal of a double whammy of corporate taxes going up and rising costs eating into profits. In the S&P 500, seven of the 11 sectors finished higher. European Markets closed lower. British Health Minister Sajid Javid warned the country would have to reinstitute COVID-19 restrictions if it did not see an uptick in people getting booster shots. French business confidence figures for October were stronger than expected, unexpectedly rising versus September, as services sector optimism hit its highest level in more than 20 years. The German Finance Ministry said tax revenues were up 9.1% versus last year. It expects strong growth to resume next year, while inflation pressures should moderate. In Asia, The People’s Bank of China injected roughly $14 billion worth of liquidity into the financial system for a second straight day, citing taxes and government bond payments. Japan’s Liberal Democratic Party was on track to maintain its parliamentary majority in the upcoming October 31 election, according to a poll by Kyodo News. South Korea’s preliminary export data for October rose versus September, as shipments to the U.S., China, and Japan gained thanks to continued strength in semiconductor demand. National Australia Bank’s third-quarter business confidence index declined versus the second quarter, as companies noted purchase costs increased to their highest level all year. Elsewhere, Oil closed 0.90% lower as some investors predicted oil demand to decline with milder winter weather, while Bitcoin fell 6% on profit taking after hitting an all-time high on Wednesday.
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For anyone following my Platinum Service it was flat yesterday and is still ahead by 669 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 0.30% higher at a price of 4550.
The Dow Jones Industrial Average closed 6 points lower for a 0.03% loss at a price of 35,603.
The NASDAQ 100 closed 0.66% higher at a price of 15,489.
The Stoxx Europe 600 Index closed 0.4% lower.
Yesterday, the MSCI Asia Pacific Index fell 0.9%.
Yesterday, the Nikkei closed 1.87% lower at a price of 28,708.
The Bloomberg Dollar Spot Index closed 0.3% higher.
The Euro closed 0.3% lower at $1.1621.
The British Pound closed 0.3% lower at 1.3790.
The Japanese Yen rose 0.3%, closing at $114.01.
Germany’s 10-year yield closed two basis points higher at -0.10%.
Britain’s 10-year yield closed six basis points higher at 1.21%.
US 10 Year Treasury closed three basis points higher at 1.69%.
West Texas Intermediate crude closed 0.90% lower at $82.94 a barrel.
Gold closed 0.05% higher at $1,782.10 an ounce.
This morning on the Economic Front we have U.K. Retail Sales at 7.00 am. This is followed by German, Euro-Zone, U.K. and U.S. Markit Services PMI at 8.30 am, 9.00 am, 9.30 am and 2.45 pm respectively. Finally, we have earnings from American Express.
December S&P 500
A frustrating trading session as a number of my calls just missed including the S&P which missed my buy level by 2 Handles before rallying to a new closing high at 4541 and I am still flat. Markets are selling off as I go to post on the back of the awful earnings miss from Intel. I will now raise my S&P buy level to 4498/4513 with a higher 4489 tight ‘’Closing Stop’’. The S&P has strong resistance from 4551/4566 where I will continue to be a seller with the same 4581 ‘’Closing Stop’’.
I am still flat the Euro as I lower my sell level to 1.1680/1.1730 with a tight 1.1765 stop. I still do not want to be long the Euro at this time.
December Dollar Index
The boring sideways price action in the Dollar continues and I am still flat. I will leave my 94.05/94.45 sell level unchanged with a 94.71 stop.
Political tensions are increasing in Germany and this is reflected in an underperforming DAX. Ahead of the weekend I will now lower my buy level again to 15200/15280 with a 15135 stop.
The UK is a mess. Higher Bond Yields coupled with COVID – 19 Cases rising to over 50,000 yesterday is not helping as the need for a booster vaccine increases dramatically. I am still flat the FTSE and I will now lower my sell level to 7235/7280 with a lower 7335 stop. If I am taken short I will have a T/P level at 7190.
Dow Rolling Contract
I am still flat the Dow as the market just missed making a second consecutive all-time high. Ahead of the weekend, I will now raise my sell level to 35830/35990 with a higher 36155 ‘’Closing Stop’’. Meanwhile, I will leave my 35150/35320 buy level unchanged with the same 34995 ‘’Closing Stop’’.
The NASDAQ missed my 15280 buy level by 19 points before rallying to a closing high at 15480 and in the process missed my sell level by 10 points before falling 120 points after the close on Intel’s missed earnings report. Today, I will leave my 15280/15190 buy level unchanged with the same 15055 ‘’Closing Stop’’. I will now lower my sell level slightly to 15470/15560 with a tight 15645 ‘’Closing Stop’’.
The Bund got hit hard yesterday and I am still flat. I will now lower my buy level to 167.00/167.50 with a 166.65 tight stop. If I am taken long I will have a T/P level at 167.85.
Gold Rolling Contract
No Change. I am still a buyer from 1740/1755 with a 1729 stop.
Silver Rolling Contract
Silver consolidated Wednesday’s 2% rally and I am still flat. With the U.S. Dollar trading higher I am reluctant to chase Silver higher, leaving my 22.90/23.50 buy level unchanged with the same 22.45 stop.