Most Asian stocks fell with U.S. Equity Futures after the latest tariffs kicked in on Chinese goods and data showed further weakness in China’s Manufacturing sector. The Yen edged higher and the Yuan dipped. Japan, Hong Kong and Australia declined, though volumes were depressed. Chinese shares bucked the trend, rising amid words of support from authorities. S&P 500 futures dropped 1% before paring losses, and Treasury contracts edged up. President Donald Trump’s tariffs on $110 billion in Chinese imports came into effect on Sunday, as did retaliatory levies by China. Cash Treasuries won’t trade and U.S. equity markets will be shut for the Labor Day holiday. The US Dollar was steady.
To mark my 1900th 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 30 points on Friday to close August with a gain of 2387, having made 1153 points in July, 1346 points in June,1722 points in May, 955 points in April, 1027 points in March, 1013 points in February and 1671 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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Investors are still reeling from a volatile August that saw a collapse in Treasury yields and declines for global equities. A drop in the official China Purchasing Managers’ Index on Saturday highlighted the pressure facing the world’s second-largest economy from weaker demand and escalating trade tensions with the U.S. Also keeping a lid on sentiment are protests in Hong Kong, where a senior official said he won’t rule out imposing an emergency law in a bid to wrestle back control.
The S&P closed 0.1% higher at 2926 before trading to an overnight low of 2892. As I go to press the market is trading at 2912. The Dow closed 40 points higher at 26403 before falling to an overnight low of 26050.
Japan’s Topix index fell 0.4%.
Hong Kong’s Hang Seng slid 0.5%.
The Shanghai Composite Index rose 1.1%.
Here is a summary of the main changes in F.X Markets:
The Japanese Yen rose 0.1% to 106.16 per dollar.
The offshore Yuan slipped 0.1% to 7.1678 per dollar.
The Euro closed 0.5% lower at $1.0980, a new two year low
The Bloomberg Dollar Spot Index closed 0.4% higher at 98.80, which is the closing high for the year.
The British Pound was steady at $1.2170, as Boris Johnson all but sounded the election gun and told lawmakers from his party to back his Brexit plan or risk having to find another party.
Argentina’s Government is imposing currency controls to halt the flight of dollars out of the country as it teeters on the brink of default
Futures on 10-year Treasuries advanced 0.1%. The yield on 10-year Treasuries gained less than one basis point at 1.50% on Friday.
In Europe, Germany’s Bund closed unchanged at -0.69% while Britain’s 10-Year Yield was also unchanged at 0.44%.
West Texas Intermediate crude was at $55.10 a barrel.
Gold rose 0.4% to $1,525.76 an ounce.
This morning on the Economic Front we have German and Euro-Zone Markit Manufacturing PMI at 8.55 am and 9.00 am respectively. With the U.S Markets closed for the Labour Day Holiday the only other release is UK Manufacturing PMI at 9.30 am
September S&P 500
With the S&P just falling short of my 2952 sell level the market subsequently sold off to my 2914 buy level after the U.S Markets opened before rallying to my 2921 T/P level and I am now flat. As mentioned above the S&P traded to an overnight low of 2892 before rallying to trade at 2912 as I go to press. The Futures Market for the S&P closes at 4.30 pm before re-opening again this evening at 11.00 pm. The S&P has support from 2885/2895 and I will be a buyer on any dip to this area with a 2875 stop. As September is traditionally a weak month my own view is that the first two weeks of the month may see the US Indices rally before getting into trouble by mid-month.
The Euro sold off on Friday with the market trading lower to my 1.1000 buy level. I am still long helped by the fact that the DSI closed at 9% bulls on Friday. I will add to this position at 1.0950 with a now lower 1.0920 stop. I will also lower my T/P level on this position to 1.1040 and if any of the above levels are hit I will be back with a new update for my Platinum Members.
September Dollar Index
Unfortunately, I was stopped out of my 98.50 short position at 98.90 on Friday and I am now flat. The Dollar is closed today for the Labour Day Holiday and I will be back with tomorrow with a new forecast as I roll to the December Contract.
The rally in the DAX shows no sign of ending as it looks to break the key 12000 resistance level. Despite the weaker US Futures the lower Euro is helping the DAX to open in positive territory this morning. Today I will again raise my buy level to 11720/11800 with a 11650 stop.
I am still flat the FTSE and today I will also raise my buy level to 7140/7180 with a tight 7095 stop. I still do not want to be short the FTSE at this time.
Dow Rolling Contract
Last night when the US Markets re-opened the Dow got hit hard trading to an overnight low of 26050. I bought the Dow at 26200 before exiting this position this morning at my 26295 T/P level and I am now flat. As this trade happened in September these points gain will be reflected in tomorrow’s Commentary. Today I will again look to buy the Dow from 25970/26120 with a 25865 tight stop. I still do not want to be short the Dow at this time.
I am still flat the NASDAQ as the market just missed my sell level on Friday. The market has support from 7500/7550 and I will be a buyer on any dip to this area with a 7465 stop.
No Change as I am staying out of this market until I roll to the December Contract tomorrow morning.
Gold Rolling Contract
With the DSI still above 90% I am reluctant to chase the price of Gold higher. I am still flat and today I will leave my 1487/1497 buy level unchanged with a 1479 stop.
Silver Rolling Contract
I am still flat Silver and today I will raise my buy level to 17.70/18.10 with the same 17.45 stop.