U.S. Equity markets fell to end a choppy week on Friday, led by the Dow which closed lower by 0.75%. Indices were mixed throughout much of the day before a late-sell-off in the last 20 minutes of trading. There was positive vaccine news, after Pfizer and BioNTech said they will request an emergency use authorisation for their COVID-19 vaccine from the Food and Drug Administration, a process that could take several weeks. But there were also concerns over economic support… Treasury Secretary Steven Mnuchin requested the Federal Reserve return $455 billion in unused funds to Congress to be spent elsewhere. This sparked fears that those funds would not be in place to ensure that markets continue to function. Chicago Fed President Charles Evans told financial news network CNBC he was disappointed by the move. He said the facilities have been very helpful and provide a necessary function in the event of a “more challenged situation.” He said they may be necessary for some time. European Indices closed higher. European Commission President Ursula Von Der Leyen said countries in the region should lift Coronavirus restrictions gradually to try and prevent further spread. Spain’s Economic Minister said the country plans to use all resources available through the European Union’s Coronavirus rescue fund, which could amount to as much as $166 billion. UK Retail Sales were stronger than expected in October, potentially signalling that consumer spending remains strong. Elsewhere, Oil closed 1.03% higher, after credit-ratings agency Fitch said that oil demand was likely to recover in 2021, while Gold +0.57%, bouncing  back after is recent decline.

To mark my 2200th 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 bryan@tradernoble.com for details

For anyone following my Platinum Service it made 140 points on Friday and is now ahead by 1686 points for November having made 2779 points in October, 3042 points in September, 2383 points in August, 3128 points in July, 2580 points in June, 2456 points in May, 4773 points in April, an incredible 9264 points in March, 2223 points in February and 2142 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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Equities

The S&P 500 closed 0.68% lower at a price of 3557.

The Dow Jones Industrial Average closed 220 points lower for a 0.75% decline at a price of 29,263.

The NASDAQ 100 closed 0.66% lower a price of 11,906.

The Stoxx Europe 600 Index closed 0.4% higher.

The MSCI Asia Pacific Index fell 0.5%.

Last Friday, the Nikkei closed 0.42% lower at a price of 25,527

Currencies

The Bloomberg Dollar Spot Index closed unchanged.

The Euro closed 0.1% lower at $1.1857.

The British Pound closed 0.2% higher at $1.3288.

The Japanese Yen closed 0.2% lower at 103.85 per dollar.

Bonds

The yield on 10-year Treasuries closed two basis points lower at 0.82%.

Germany’s 10-year yield closed unchanged at -0.58%.

Britain’s 10-year yield closed two basis points lower at 0.31%.

Commodities

The Bloomberg Commodity Index closed 0.3% higher.

West Texas Intermediate closed 1.03% higher at $42.15 a barrel.

Gold closed 0.57% higher at $1664 an ounce.

This morning on the Economic Front we have German, Euro-Zone and UK Markit Services/Composite PMI at 8.30 am, 9.00 am and 9.30 am respectively. This is followed at 1.30 pm by the Chicago Fed National Activity Index. Finally, at 2.45 pm we have U.S Markit Manufacturing PMI.

December S&P 500

Despite the U.S. Indices selling off in the last twenty Minutes of trading on Friday, the intensity of the selling was muted while Breadth was only mildly negative. This Thursday the U.S Market are closed and only open for a half-day on Friday for the Thanksgiving Holiday. Traditionally this is one of the strongest week’s for U.S Indices. I know we have rallied strongly this month but with the vaccine expected to be rolled out to U.S Citizens starting on December 11, it is difficult to be short. The S&P just missed my initial 3535 buy level with a 3542.50 low print and I am still flat. Today, I will raise my buy level to 3530/3545 with a higher 3515 stop. I will continue to be an aggressive buyer from 3485/3503 with the same 3469 ‘’Closing Stop’’. I still do not want to be short the S&P at this time.

EUR/USD

I am still flat and today I will lower my buy level to 1.1775/1.1815 with a 1.1735 stop. If I am taken long I will have a T/P level at 1.1845.

December Dollar Index

No Change as I am still a small buyer from 91.70/92.10 with a 91.35 stop. If I am taken long I will have a T/P level at 92.45.

December DAX

The DAX never came close to my buy level before rallying into the close and I am still flat. I will now raise my buy level to 12910/12990 with a 12825 higher stop.

December FTSE

My latest 6350 sell level in the FTSE worked well with the market trading lower to my 6320 T/P level and I am still flat. Encouraging news on the vaccine front where Pfizer may get approved first in the UK before the U.S plus optimism that a deal on Brexit is imminent should support the market despite the FTSE being overvalued. The FTSE has resistance from 6410/6470 where I will be a seller with a 6515 tight stop.

Dow Rolling Contract

After the Dow rallied on Friday morning I emailed my Platinum Members that I had exited my 29420 long position for a small gain at 29475 and I am still flat. This was a timely cut as the market sold off to trade below 29200 into the close. As long as the Dow can hold the key 28870/29070 support area I will continue to be a buyer on dips. Today, I will be a buyer in this support zone with a 28695 tight stop. If I am taken long I will have a T/P level at  29225.

December NASDAQ

Shortly before the US Indices closed on Friday the NASDAQ traded lower to my 11880 buy level. The NASDAQ has rallied as I go to press and I have now exited this position here at 11935 and I am now flat. Today I will be a buyer from 11780/11870 with a 11695 stop. If I am taken long I will have a T/P level again at 11935.

December BUND

The boring sideways action in the Bund continues and I am still flat. Given its insanely low yield at -58 basis points I am reluctant to chase the price of the Bund higher. Therefore, I will leave my 174.30/174.80 buy level unchanged with the same 173.85 stop.

Gold Rolling Contract

Gold missed my 1835 buy level before rallying into the close. I will now raise my buy level to 1830/1846 with an 1819 stop.

Silver Rolling Contract

No Change as I am still a small buyer from 23.00/23.60 with the same 22.65 tight stop. If I am taken long I will have a T/P level at 23.95.