U.S. Equity markets rose again on positive stimulus developments, finishing the day higher, led by the Dow which closed with a gain of +0.55%. House Speaker Nancy Pelosi said that negotiations between the White House and Democrats were “just about there.” Pelosi added that she believes both sides want to make an agreement. However, she said that it may take time for Congress to put together a Bill and vote on it. This could delay the package until after the election. Economic data were also positive, after Jobless Claims fell below 800,000. This marked the lowest level for Jobless Claims since they spiked in March. And Existing Home Sales surged to a 14-year high in another sign of strong housing demand. Meanwhile, European Indices closed lower as Coronavirus cases surged above 200,000 across the EU. German Consumer Confidence data for November were below expectations, falling versus October, as fears about another economic lockdown hurt income expectations. French Business Confidence data for October were weaker than expected due to concern about the reintroduction of Coronavirus restrictions. Bank of England Chief Economist Andrew Haldane said the central bank is studying negative interest rates, but that does not mean they will be implemented. Elsewhere, Oil recovered some of Wednesday’s loss, closing 1.67% higher as positive economic data sparked optimism over the growth picture. Gold closed 1.17% lower on Dollar strength. The Presidential Debate overnight, lacked the fireworks of the previous debate as President failed to land any knockout punch. The debate was the last time the two will meet before the election, giving Mr Trump a final chance to change the trajectory of the race. Mr Biden leads the national polls by 8.7 per cent, according to an FT analysis of data from RealClearPolitics. He is also leads every swing state, except for Ohio.
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For anyone following my Platinum Service it made 263 points yesterday and is now ahead by 2408 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 0.52% higher at a price of 3453.
The Dow Jones Industrial Average closed 152 points higher for a 0.55% gain at a price of 28,363.
The NASDAQ 100 closed 0.02% lower at a price of 11,662.
The Stoxx Europe 600 Index closed 0.9% lower.
The MSCI Asia Pacific Index fell 0.2%%.
This morning the Nikkei closed 0.18% higher at a price of 23,516.
The Bloomberg Dollar Spot Index closed 03% lower.
The Euro closed 0.4% lower at $1.1817.
The British Pound closed 0.5% lower at $1.3041.
The Japanese Yen closed 0.1% higher at 104.58 per dollar.
The yield on 10-year Treasuries closed three basis points higher at 0.84%.
Germany’s 10-year yield closed one basis point higher at -0.57%.
Britain’s 10-year yield closed five basis points higher at 0.28%.
The Bloomberg Commodity Index closed 0.3% lower.
West Texas Intermediate closed 1.67% higher at $39.73 a barrel.
Gold closed 1.17% lower at $1892 an ounce.
This morning on the Economic Front we already had the release of UK Retail Sales for September which rose 1.5% versus +0.2% 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. We have no other data of note on either side of the Atlantic.
December S&P 500
My S&P plan worked well with the market trading higher to my 3448 sell level before selling off to my 3440 revised T/P level as I wanted to be flat ahead of the Presidential Debate. This turned out to be a damp squib and Futures Markets are lower trading at 3440 as I go to press. The 3465/3480 area continues to act as strong resistance. I will be a small seller in this area with a 3491 tight stop. I will now raise my buy level slightly to 3402/3416 with a higher 3388 stop.
The Euro traded lower to my 1.1820 buy level. I am still long and I will add to this position at 1.1770 with a now lower 1.1725 stop. I will also lower my T/P level to 1.1845 and if any of the above levels are hit I will be back with a new update for my Platinum Members.
December Dollar Index
I am still flat and I will continue to be a seller from 93.30/93.80 with the same 94.25 stop. I will now raise my buy level to 92.00/92.40 with a higher 91.65 stop.
The DAX sold off after I posted yesterday morning to a low at 12328 before rallying over 200 points and I am still flat. Germany reported its second consecutive day of Coronavirus cases above 11000 with no sign yet that Europe is able to get Covid-19 under control. This increase in cases will lead to more Stimulus and as result I will now raise my buy level to 12350/12420 with a higher 12265 stop.
The FTSE made a low of 5680 after I posted before rallying to my revised 5758 T/P level on my 5725 latest long position and I am still flat. Today I will again be a buyer on any dip lower to 5680/5725 with a 5625 stop.
Dow Rolling Contract
My Dow plan worked well with the market trading higher to my 28410 sell level before trading lower to my 28335 revised T/P level and I am still flat. As long as the Dow does not break and close over 28600 I will continue to sell the rallies. The 50-Day Moving Average is at 28012 this morning and this level will act as strong support on any initial test. Today, my sell level will be from 28580/28750 with a tight 28885 stop. I will now raise my buy level to 27880/28080 with a 27745 stop. If I am taken short I will have a T/P level at 28440. If I am taken long I will have a T/P level at 28225.
The NASDAQ fell shy of my 11740 initial sell level and I am still flat. Ahead of the weekend I will now raise my sell level to 11820/11920 with a higher 12005 stop. The 50 Day Moving Average comes in at 11512 this morning and I will now raise my buy level to 11425/11525 with a 11295 wider stop.
10 Year Treasuries yields have risen to their highest level in four months which will be a concern to the Fed. On top of this the 30 Year Yield has risen above its 200 Day Moving Average. Meanwhile in Europe, Bond Yields are relatively stable with little or no movement. I am still flat the Bund and I will continue to be a buyer from 174.60/175.00 with the same 174.15 tight stop. I will also leave my 176.10/176.60 sell level unchanged with a 177.05 stop.
Gold Rolling Contract
My Gold plan worked well with the market trading lower to my 1890 buy level before rallying back above 1905. I covered this position at 1895 and I am still flat. Gold has support from 1868/1880 where I will be a buyer with an 1859 stop. If I am taken long I will have a T/P level at 1888.
Silver Rolling Contract
My Silver plan also worked well with the market trading lower to my 24.40 buy level before rallying to my 24.65 revised T/P level and I am still flat. Today, I will be a buyer on any dip lower to 23.60/24.20 with a 23.35 tight stop. If I am taken long I will have a T/P level at 24.55.