U.S. Equity Markets rose on a volatile day, finishing the day higher, led by the Dow which rebounded 300 points off its afternoon low to close higher by 0.72%. Markets opened higher before selling off and briefly turning negative. But they rose again through the close. Federal Reserve Chairman Jerome Powell’s press conference from yesterday remained in focus, after he said that the Fed was not currently thinking about tapering its bond purchases. In terms of economic data, Jobless Claims fell to another post-pandemic low, once again showing the ongoing recovery in the labour market. Another catalyst at work was Big Tech earnings. Facebook (FB) and Apple (AAPL) both put up good numbers late Wednesday, while Mastercard’s (MA) report reiterated the rebound in consumer spending. Earnings will continue to be a focus, with Amazon (AMZN) reporting stronger number after last night’s close. European Markets closed higher after a volatile session. Euro-Zone Economic Confidence data for April were stronger than expected, rising versus March, and hitting the highest level since 2018 on increasing coronavirus vaccinations. The U.K. reached a deal for 60 million doses of Pfizer and BioNTech’s coronavirus vaccine, with plans to use the doses for booster shots heading into winter. But German markets did not partake in the rally… German Unemployment data unexpectedly rose in April, as the country’s labour office said COVID-19 restrictions were slowing down the economic recovery. In Asia, President Joe Biden “talked tough” on China in his first speech to Congress, warning the U.S. needs to invest more to maintain its technology dominance. Australia’s export price data for the first quarter were stronger than expected, rising versus the fourth quarter, as commodity demand rebounded. The Bank of Korea’s manufacturing business conditions survey data for May rose versus April, hitting their highest level since 2011, as companies indicated domestic activity is improving. Consumer and industrial equipment maker Samsung Electronics reported a 46% increase in first-quarter profits, but warned the semiconductor shortage could hurt second-quarter sales. Elsewhere, Oil closed 1.72% higher after U.S. crude imports from OPEC hit the lowest level in 40 years, while Bitcoin fell 5% on little news.
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For anyone following my Platinum Service it made 418 points yesterday and is now ahead by 1077 points for April, having ended March with an impressive gain of 3769 points, having made 3286 points in February, 2077 points in January, 2273 points in December, 2025 points in November, 2779 points in October, 3042 points in September and 2383 points in August. 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 0.68% higher at a price of 4211.
The Dow Jones Industrial Average closed 240 points higher for a 0.71% gain at a price of 34,060.
The NASDAQ 100 closed 0.49% higher at a price of 13,970.
The Stoxx Europe 600 Index closed 0.4% higher.
Yesterday, the MSCI Asia Pacific Index rose 0.1%.
Yesterday, the Nikkei was closed having finished Wednesday at a price of 29,053.
The Bloomberg Dollar Spot Index closed 0.1% higher
The Euro closed 0.1% lower at $1.2110.
The British Pound closed 0.1% lower at $1.3931.
The Japanese Yen closed 0.3% lower at 108.92 per dollar.
Germany’s 10-year yield closed four basis points higher at -0.19%.
Britain’s 10-year yield closed four basis points higher at 0.84%.
US 10 Year Treasury closed three basis points higher at 1.64%.
West Texas Intermediate crude closed 1.72% higher at $64.82 a barrel.
Gold closed 0.3% lower at $1,769.10 an ounce.
This morning on the Economic Front we have German and Euro-Zone Unemployment at 7.00 am and 9.00 am respectively. Also, at 9.00 am we have Euro-Zone CPI. At 1.30 pm we have U.S Personal Income/Spending and the Employment Cost Index. Finally, we have the Chicago Purchasing Managers Index at 2.45 pm and the University of Michigan Consumer Sentiment Index at 3.00 pm.
June S&P 500
My S&P plan worked well with both my buy and sell levels hit yesterday in what turned out to be a volatile trading session which is no surprise when we have an S&P trading at three Standard Deviations above its mean. After the S&P hit my 4206 sell level I covered this position at 4196 before buying the market at 4172 only to exit this trade too early at 4180 before we rallied to a rebound high at 4206 and I am now flat. The S&P has resistance from 4211/4225 where I will again be a seller with a 4241 ‘’Closing Stop’’. The S&P has support from 4155/4170 where I will again be a buyer with a 4143 ”Closing Stop”.
No Change. I am still a seller from 1.2155/1.2195 with the same 1.2235 stop. My only interest in buying the Euro is still on a dip lower to 1.1995/1.2045 while leaving my 1.1955 stop unchanged.
June Dollar Index
The Dollar traded in a narrow range yesterday. I am still long at 90.50 with the same 90.80 T/P level. I will not add to this trade as I leave my stop unchanged at 90.15.
With so many of my positions hitting at the same time including the DAX which I bought at 15160. I covered this trade at 15163 and I am still flat. I do not like the price action for the DAX but the market must break and close below the key 14900 support level for me to go short. Today, I will be a buyer from 14970/15040 with a tight 14925 stop.
I am still flat as I continue to look to buy the market on any dip lower to 6820/6870 with a lower 6775 stop.
Dow Rolling Contract
My Dow plan worked well with the market trading lower to my 33750 buy level before rallying to my revised 33860 T/P level and I am now flat. I did not expect the Dow to have rallied a further 200 points which it did as yet again trying to short this market proves to be expensive. The Dow has strong support from 33700/33850 where I will again be a buyer with a 33585 ‘’Closing and tight Stop’’. Ahead of the long weekend I do not want to be short the Dow at this time.
Just like the S&P above, both my sell and buy levels for the NASDAQ were filled after a volatile session. Initially, the NASDAQ traded higher to my 14055 sell level before trading the whole of my buy range for a 13865 average long position. My 13995 T/P level was filled quickly before I emailed my Platinum Members to exit any long position at 13880 and I am still flat. The NASDAQ has resistance from 14040/14140 where I will again be a seller with a lower 14215 ‘’Closing Stop’’. The NASDAQ has strong support from 13760/13840 where I will again be a buyer with a tight 13695 ‘’Closing Stop’’.
The BUND got hit hard yesterday as the market traded the whole of my buy range for a now 170.00 average long position. I will now lower my T/P level to 170.10 while leaving my 169.55 stop unchanged as I want to be flat over the long weekend.
Gold Rolling Contract
After Gold hit my 1758 buy level the market rallied back above 1770. Unfortunately, I covered this position too early at 1761 and I am still flat. Gold has support below from 1725/1740 where I will again be a buyer with a 1716 tight stop. If I am taken long I will have a T/P level at 1748.
Silver Rolling Contract
My Silver plan worked well with the market trading lower to my 25.75 buy level before rallying to my 25.95 revised T/P level and I am now flat. Today, I will again be a buyer from 24.90/25.50 with a 24.45 tight stop. If I am taken long I will have a T/P level at 25.80.