U.S. Equities dropped from record highs in the wake of lower European and Asian equities, rounding out a lackluster finale to the third straight month of gains for global benchmarks. The US Dollar strengthened. The S&P 500, Nasdaq 100 and Dow Jones Industrial Average all finished lower as trading resumed on Wall Street after the Thanksgiving break. Shares of energy and consumer discretionary goods companies were the biggest decliners, with overall trading volume about 30% below the 30-day average. The Stoxx Europe 600 Index slumped, while Asian shares closed lower. Treasuries were mixed as they returned to trading post-holiday. The US Dollar posted a ninth straight session of gains, the longest winning streak since January 2016. U.S. equity markets closed at 1 p.m. New York time. However, Financial markets started December with a risk-on mood following a better-than-expected reading on Chinese Manufacturing that added to evidence the global economy is turning a corner. Asian equity benchmarks rose, led by gains in Japan fuelled in part by a retreat in the Japanese Yen. S&P 500 Index futures edged up, though European contracts were little changed. Ten-year Treasury yields climbed to 1.82%, and their Japanese counterparts ticked up closer toward zero. The yen retreated. Sentiment could still be kept somewhat in check by the continuing lack of closure on a U.S.-China trade deal. China’s Global Times underscored that its government wants tariffs to be rolled back as part of “phase one.”
To mark my 1950th 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 62 points on Friday, to finish November with a gain of 780 points, having made 1649 points in October, 1620 points in September, 2387 points in August, 1153 points in July, 1346 points in June,1722 points in May, 955 points in April and 1027 points in March. Since I started this New Platinum Service in June 2015 it has averaged a monthly gain of over 1600 points
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Investors are hungry for evidence of progress on a Sino-U.S. trade deal, with the next batch of American tariffs on Chinese goods due to begin Dec. 15 and additional tension building over Hong Kong. China’s Foreign Ministry warned again of unspecified retaliation for U.S. President Donald Trump’s signing of legislation that expresses support for protesters in Hong Kong.
The Dow Jones Industrial Average decreased 0.4% to 28,054.
Japan’s Topix index added 0.9% at the close in Tokyo.
The Shanghai Composite Index rose 0.1%.
Hong Kong’s Hang Seng Index gained 0.4%.
Futures on the S&P 500 rose 0.3%. The underlying gauge slipped 0.4% on Friday to close at 3141 which was its largest fall in six weeks.
Euro Stoxx 50 futures advanced 0.1%.
Here is a summary of the main Changes in F.X. Markets:
The Japanese Yen dipped 0.1% to 109.64 per dollar.
The offshore Yuan held at 7.0331 per dollar.
The Pound was little changed at $1.2917.
The Euro advanced 0.1% to $1.1018.
Bloomberg Dollar Spot Index was little changed.
The yield on 10-year Treasuries climbed about four basis points to 1.82%.
Germany’s 10-year yield rose one basis point to 0.35%.
West Texas Intermediate crude sank 4.3% to $55.59 a barrel, the lowest in more than a week on the biggest tumble in more than 10 weeks.
Gold slipped 0.3% to $1,459.52 an ounce.
This morning on the Economic Front we have German, Euro-Zone, UK and U.S Manufacturing PMI at 8.55 am, 9.00 am, 9.30 am and 2.45 pm respectively. At 2.00 pm we have a speech by new ECB President Lagarde. Finally, we have ISM Manufacturing and Construction Spending at 3.00 pm.
December S&P 500
The S&P which closed lower at 3141 on Friday rallied overnight on the back of the stronger Chinses PMI which was released on Saturday. As a result the S&P has traded higher to my 3154 sell level. As I want to get December off to a positive start I have now cut this position here at 3151 and I am now flat. Today I will again look to sell the market from 3159/3172 with a 3181 stop. With the VIX closing 7.5% higher on Friday at 12.64 and the McClellan again turning negative I still do not want to be long the S&P at this time.
My Euro plan worked well with the market trading lower to my 1.0985 buy level before rallying to my revised 1.1007 T/P level and I am now flat. This morning the Euro is trading at 1.1020 as I go to press and I will again look to buy the market on any dip lower to 1.0955/1.0995 with a 1.0920 tight stop.
December Dollar Index
After the Dollar traded higher to my 98.45 sell level I emailed my Platinum Members to exit any short position at 98.30 and I am still flat. Today I will again look to sell the Dollar on any small rally higher to 98.40/98.80 with a 99.15 stop.
I am still flat the DAX as the market again struggles to break above its 13300 resistance level. I have not liked the price action in the DAX for the past few weeks and today I will only raise my buy level slightly to 13070/13140 with a higher 13025 stop. Ahead of ECB President Lagarde’s speech this afternoon I do not want to be short the DAX at this time.
My FTSE plan worked well with the market trading higher to my 7420 sell level before falling to my 7395 T/P level and I am now flat. The FTSE closed weak on Friday and today I will again look to be a seller from 7400/7440 with a 7475 stop. I still do not want to be long the market at this time.
Dow Rolling Contract
I am still flat the Dow as I continue to look for the market to put in a more significant top near current prices. As I am still short the NASDAQ from last week I will now raise my Dow sell level to 28230/28370 with a higher 28465 stop.
No Change as I am still short the NASDAQ at a price of 8415. I will now look to add to this position on a further move higher to 8475 with a now higher 8505 tight stop. I will also leave my T/P level unchanged at 8405 and if any of the above levels are hit I will be back with a new update for my Platinum Members.
On the back of the Four basis point rally in 10 Years U.S Treasuries the Bund has opened lower and is trading at the bottom of Friday’s buy range at 170.40. I have bought the market here in small size with a tight 169.95 stop. I will now lower my T/P level on this position to 170.58 and if any of the above levels are hit I will be back with a new update for my Platinum Members.
Gold Rolling Contract
I am still flat Gold as the market again traded in a narrow range on Friday. Today I will raise my buy level to 1440/1448 with a higher 1432 stop.
Silver Rolling Contract
No Change as I am still a buyer on any dip lower to 16.50/16.90 with the same 16.15 stop.