U.S. Equity Markets eventually closed higher following a volatile trading session that saw plenty of two-way price action. The NASDAQ 100 led the rally, closing higher by 1.29%. The latest economic projections from the Federal Reserve showed a revision lower to overall expansion – with the economy now expected to grow only 0.4% for the year. Treasury Secretary Janet Yellen told congressional lawmakers that regulators would be ready to take necessary steps if needed to protect deposits – slightly walking back remarks made a day earlier. JP Morgan Chase (JPM) reported that retail traders sold $1.4 billion worth of single stocks over the past week, as investors turn to the safety of fixed income and tech stocks. New Home Sales unexpectedly rose in February, pointing toward a stabilisation in housing activity and pricing pressures. Within the S&P 500 Index, two of 11 sectors finished higher. European Markets closed mixed. The Bank of England raised interest rates by another 25 basis points, and guidance points toward the likelihood of another rate hike in May. Rates are now at 4.25%. U.K. House fell at the fastest pace in 12 years in January, as mortgage loans are becoming increasingly expensive due to surging rates. In a letter to lawmakers, the BOE wrote that further volatility in asset prices could expose weaknesses in the financial and banking system. ECB President Christine Lagarde said it will take a steady approach to fight inflation growth while also supporting the financial system, if necessary, while Governor Madis Müller said that the central bank will likely need to raise rates further but admitted that the majority of tightening has already occurred. In Asia, Taiwan’s Central Bank raised its key interest rate by 12.5 basis points to 1.875%. Following the latest Federal Reserve rate hike, Bank of Korea Senior Deputy Governor Lee Seung-heon said it will intervene in the currency markets to stabilise the Won if necessary. China’s government accused a U.S. destroyer of entering its territorial waters in the South China Sea without permission, undermining regional political stability. Property developer China Evergrande said it had reached a deal with offshore bondholders that would allow it to restructure its debt and help it to resume operations. Elsewhere, Oil closed 2.34% lower while Gold rose 2.61% after equity markets fell.
To mark my 2750th issue of TraderNoble Daily Commentary I am offering a special 2-Year Rate of Euro 2750 for my Platinum Service which includes 1 to 4 updated emails throughout the trading day to demonstrate this value, a monthly subscription over the same period would cost 4440 euro in total This offer represents a 38% discount and is open to both new and existing members. If anyone is interested in this offer can you please email me on firstname.lastname@example.org for details
For anyone following my Platinum Service it made 440 points yesterday and is now ahead by 5531 points for March after finishing February with a gain of 3164 points, after closing January with a gain of 4687 points, while finishing December with a gain of 2054 points. November ended with a gain of 4789 points, while finishing October with a record gain of 9619 points, making 6660 points in September, after closing August with a gain of 2228 points, having made 2660 points in July, following a gain of 3371 points in June. The Service made 3651 points in May, after making 762 points in April, following a gain of 5883 points in March. The Platinum Service made an impressive 5324 points in February, after ending January with a gain of 3878 points, more than making up for December’s 932 points loss. Since I started this New Platinum Service in June 2015 it has averaged a monthly gain of over 1600 points. I have a YouTube Channel which contains recent interviews I have given This can be viewed by clicking HERE Please subscribe to this for new interview notification
The S&P 500 closed 0.30% higher at a price of 3948
The Dow Jones Industrial Average closed 75 points higher for a 0.23% gain at a price of 32,105.
The NASDAQ 100 closed 1.29% higher at a price of 12,729.
The Stoxx Europe 600 Index closed 0.19% lower.
Yesterday, the MSCI Asia Pacific rose 0.64%.
Yesterday, the Nikkei closed 0.173% lower at a price of 27,419.
The Bloomberg Dollar Spot Index closed 0.4% higher.
The Euro closed 0.3% lower at $1.0833.
The British Pound closed 0.2% higher at 1.2297.
The Japanese Yen rose 0.3% closing at $130.84.
Germany’s 10-year yield closed 9 basis points lower at 2.19%.
Britain’s 10-year yield closed 9 basis points lower at 3.36%.
U.S.10 Year Treasury closed 1 basis points lower at 3.44%.
West Texas Intermediate crude closed 2.34% lower at $69.24 a barrel.
Gold closed 2.61% higher at $1995.10 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. Composite PMI at 8.30 am, 9.00 am, 9.30 am and 1.45 pm respectively. At 12.30 pm we have U.S. Durable Goods Orders. Finally, at 4.00 pm we have a speech from Bank of England Member Mann.
Cash S&P 500
Another wild trading session for the S&P. Initially the market rallied hard totally ignoring a weak Banking Sector before hitting an afternoon high at 4007. Subsequently the S&P fell almost 90 Handles. The S&P then rallied 30 Handles off it 3919 low into the close following comments from Treasury Secretary Yellen who reversed Wednesday’s bearish comments seemingly recognising her mistake and the impact on Financial stocks. These mistakes should not be happening at this level given the fact that three American Banks have gone bust in the past two weeks. My S&P plan worked well as the initial move higher saw my 3962 T/P level triggered on Wednesday’s late 3950 long position. Subsequently, I emailed my Platinum Members to buy the S&P again at 3923 before rallying to my 3944 T/P level and I am now flat. Today, I will again be a buyer from 3895/3920 with a 3881 wider ‘’Closing Stop’’. Ahead of the weekend I do not want to be short the market.
No Change as the Euro traded in a narrow range over the past 24 hours. The Euro made an afternoon high at 1.0924 before falling 60 points into the New York close. I am still flat as I continue to be a seller on any further rally to 1.0960/1.1030 with the same 1.1095 ‘’Closing Stop’’. I will now raise my buy level to 1.0690/1.0760 with a higher 1.0625 ‘’ Closing Stop’’.
June Dollar Index
I am still flat the Dollar. I will now lower my sell level to 103.20/103.90 with a lower 104.65 ‘’Closing Stop’’. The Dollar has support from 101.00/101.70 where I will be a strong buyer with a 100.45 ‘’Closing Stop’’.
The DAX hit an early afternoon high at 15245 before falling 160 points into the New York close. I am still flat. Today, I will continue to be a strong buyer from 14840/14940 with the same 14765 ‘’Closing Stop’’. Ahead of the weekend, I still do not want to be short the DAX at this time.
The FTSE sold off to my 7920 buy level before having a small rally into the New York close. I am still long with a lower 7475 T/P level. I will add to this position at 7350 while leaving my 7285 ‘’Closing Stop’’ unchanged.
Dow Rolling Contract
My Dow plan worked well as the market had a nice 400 point rally yesterday before again running into strong resistance at the 200 Day Moving Average. This move higher saw my 32290 T/P level filled on Wednesday’s latest 32180 long position and I am now flat. Despite the increased volatility I stayed flat the Dow into the close. With the Bank Index closing lower by 2% it is hard to get excited with a long Dow position. The market again closed below its 200 Day MA at 32363. However, given the number of signal chats on the floor it would be a brave man to go short especially ahead of a weekend. The Dow has support from 31600/31850 where I will again be a buyer with a 31395 wider ‘’Closing Stop’’.
Cash NASDAQ 100
I am still flat as the NDX again outperformed the main American Indexes. Given the further fall in Treasury Yields I will now raise my NDX buy level to 12370/12520, with a lower 12245 ‘’Closing Stop’’ if triggered.
The Bund continued its recent rally, and I am still flat. I will now raise my buy level to 136.10/136.80 with a higher 135.45 ‘’Closing Stop’’.
Gold Rolling Contract
My Gold plan worked well as the market rallied to my 2002 sell level before selling off to my 1995 revised T/P level and I am now flat. As I go to press Gold is trading at 1993. We have resistance from 2015/2030 where I will again be a small seller with a 2041 ‘’Closing Stop’’.
Silver Rolling Contract
I am still long Silver from last month at a price of 23.10. Silver rallied again yesterday, sitting at 23.07 as I go to press. I will leave my 21.45 ‘’Closing Stop’’ unchanged. I will now have a T/P level at 23.70 on this position. If any of the above changes I will be back with a new update for my Platinum Members.