U.S. Equities limped into the weekend as renewed concern the coronavirus will slow global growth overshadowed fresh signs of a strong labour market. Treasuries jumped. The S&P 500 Index halted a four-day rally, but still notched its best week since June. The latest Jobs Report showed hiring stayed robust last month, bolstering optimism growth can persist. But stocks remained lower after reports of further infections, an increase in deaths and more quarantines. The Federal Reserve warned the outbreak posed a “new risk” to the economy. The fallout for companies is starting to come into focus, with corporations such as Toyota Motor Corp. and Honda Motor Co. temporarily halting operations in China. Apple Inc.’s iPhone maker Foxconn told employees not to return to work when China’s extended break ends Monday. The 10-year Treasury yield slumped below 1.6% and crude lost its grip on $51 a barrel. Australia’s Dollar dropped to its lowest level in a decade with the fallout from the coronavirus hurting riskier assets. Equities pushed lower across most of Asia as news of further infections on a cruise ship off Japan offered another reminder that cases remain on the rise. Singapore boosted its disease response to the second-highest level, the same one for the SARS epidemic. Confirmed cases worldwide now total 31,432, having risen more than 3,000 in one day, while the death toll reached 638. Meanwhile, the Presidents of China and the U.S. reaffirmed their commitment to the implementation of a phase-one trade deal in a phone call Friday.
To mark my 2000th 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 email@example.com for details
For anyone following my Platinum Service it made 217 points on Friday and is now ahead by 414 points for February, having made 2142 points in January, 818 points in December, 780 points in November, 1649 points in October, 1620 points in September and 2387 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 Index decreased 0.5% to close at a price of 3327.
The Dow Jones Industrial Average fell 278 points, closing at 29,102.
The Nasdaq 100 fell 0.5%, closing at 9401.
The Stoxx Europe 600 Index declined 0.3%.
The MSCI AC Asia Pacific Index fell 0.7%.
Here is a summary of the main Changes in F.X. Markets:
The Bloomberg Dollar Spot Index gained 0.2%.
The British Pound fell 0.3% to $1.2896.
The Euro fell 0.3% to $1.0946.
The Japanese Yen strengthened 0.2% to 109.77 per dollar.
The yield on 10-year Treasuries fell seven basis points to 1.57%.
The Two-year rate dropped to 1.4%
Britain’s 10-year yield fell one basis point to 0.57%.
Germany’s 10-year yield dipped two basis points to -0.39%.
West Texas Intermediate crude fell 1% to $50.42 a barrel.
Gold Futures added 0.3% to $1,574.20 an ounce.
Copper fell 1.7% to $2.55 a Pound.
This morning on the Economic Front we have Euro-Zone Investor Confidence at 9.00 am. This is the only data of note being released today on either side of the Atlantic. However, the Fed’s Bowman and Harker are speaking at 1.15 pm and 8.15 pm respectively.
March S&P 500
Late Friday after the Dow hit my buy range, I emailed my Platinum Members to lower their S&P buy level to 3308 which was filled overnight before the market rallied to my 3315 T/P level and I am now flat. For all other members no matter where you bought the S&P in my buy range you have woken up to a nice gain this morning. One worry for the bulls is the fact that the 50 Day and 200 Day Moving Averages are so far from the current price in all three U.S Indices. The 50 Day MA for the S&P is now 100 Handles lower at 3230, while the 200 Day MA is over 10% lower at 3021. Despite more cases of the coronavirus the markets are so far ignoring any economic risks. The S&P has strong support from 3295/3310 and I will be a buyer on any dip to this area with a 3287 stop. I still do not want to be short the S&P at this time.
Overnight the Euro traded lower to my second buy level at 1.0940 for a now average long position at 1.0970. I will now lower my T/P level on this position to 1.0985, while my stop will remain unchanged at 1.0915. If any of the above levels are hit I will be back with a new update for my Platinum Members.
March Dollar Index
No Change as I am still a seller from 98.75/99.15 with the same 99.45 stop.
I am still flat the DAX as the market again failed to trade higher to my sell range. I will now lower my sell level to 13580/13650 with a lower 13705 stop. I still do not want to be long the DAX at this time.
The FTSE traded lower to my 7380 buy level. As I wanted to be flat over the weekend, I covered this position at my revised 7390 T/P level and I am now flat. The FTSE has strong support from 7305/7345 and I will be a buyer in this area with a 7270 stop. Given how weak the Pound is I still do not want to be short the FTSE at this time.
Dow Rolling Contract
My Dow plan worked well with the market trading the whole of my buy range for a 29020 average long position before rallying earlier this morning to my revised 29140 T/P level and I am now flat. The Dow has strong support from 28830/28980 and I will be a buyer on any dip to this area with a 28745 stop. My only interest in selling the Dow is still on a rally higher to 29650/29800 with the same 29905 stop.
Frustratingly the NASDAQ just missed my 9020 buy level with an overnight low of 9330 before rallying to trade at 9420 as I go to press. The worry for the bulls is how extended the market is with the 50 and 200 Day Moving Averages well below current prices at 8812 and 8027 respectively. Today I will raise my buy level to 9290/9340 with a higher 9245 stop.
I am still flat the Bund as the market traded sideways on Friday. I do not want to chase the Bund higher and today I will leave my 173.25/173.65 buy level unchanged with the same 172.80 stop.
Gold Rolling Contract
I will now raise my buy level in Gold to 1542/1552 with a higher 1535 stop.
Silver Rolling Contract
My Silver plan worked well with the market trading lower to my 17.65 buy level after the NFP release before rallying to my revised 17.82 T/P level and I am now flat. Today I will continue to be a buyer on any dip lower to 17.15/17.55 with a 16.80 stop. If I am taken long I will have a T/P level at 17.75.