U.S Indices closed lower for the second consecutive session as COVID-19 continues to weigh on investor sentiment. Drug manufacturer Eli Lilly’s Coronavirus treatment trial was placed on hold after an independent monitoring board recommended suspending enrolment for potential safety concerns. This followed Johnson & Johnson’s COVID-19 vaccine pause on Tuesday. Stimulus remained a drag. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin continued negotiations yesterday but still did not reach a consensus. Mnuchin said that there was likely not going to be an agreement before the November election. This should not be all that surprising, but Mnuchin has been one of the main backers for continuing negotiations. European Markets also closed lower. French President Emmanuel Macron announced new measures to contain the Coronavirus, including a curfew. Germany’s leading Economic Institutes said that the country’s recovery is losing momentum as fears of rising COVID-19 cases grow. But it was not all bad news. The British government is said to remain interested in negotiating a post-Brexit trade deal with the European Union beyond its October 15 deadline. The International Monetary Fund upgraded its global growth outlook for this year and next, saying the banking system is sound enough to withstand another adverse shock. Elsewhere, Oil continued its recent rally, closing 2.06% higher as Russia and Saudi Arabia urged other OPEC members to comply with production cuts.
To mark my 2175th 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 125 points yesterday and is now ahead by 1200 points for October, having made 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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The S&P 500 closed 0.66% lower at a price of 3488.
The Dow Jones Industrial Average closed 165 points lower for a 0.58% loss at a price of 28,514.
The NASDAQ 100 closed 0.81% lower at a price of 11,985.
The Stoxx Europe 600 Index closed 0.4% lower.
The MSCI Asia Pacific Index rose 0.2%%.
This morning the Nikkei closed 0.50% lower at a price of 23,507.
The Bloomberg Dollar Spot Index closed 0.1% higher.
The Euro closed 0.1% higher at $1.1750.
The British Pound closed 0.3% higher at $1.2995.
The Japanese Yen closed 0.1% lower at 105.45 per dollar.
The yield on 10-year Treasuries closed two basis points lower at 0.71%.
Germany’s 10-year yield closed three basis points lower at -0.59%.
Britain’s 10-year yield closed two basis points lower at 0.22%.
The Bloomberg Commodity Index closed 0.1% lower.
West Texas Intermediate closed 2% higher at $41.01 a barrel.
Gold closed 0.3% higher at $1904 an ounce.
This morning on the Economic Front we have the Bank of England Credit Conditions Survey at 9.30 am. This is followed at 1.30 pm by U.S Weekly Jobless Claims and the Philly Fed Manufacturing Survey. Finally, at 4.25 pm we have the UK August Forecast Statement and another speech from ECB President Lagarde at 7.00 pm.
December S&P 500
My S&P plan worked well with the market trading the whole of my buy range for a 3482 average long Position before rallying to my revised 3488 T/P level and I am now flat. Overnight the S&P has sold off further, trading at 3465 as I go to press. The S&P left four ‘’Open Gap’s’’ from the recent 200 Handle four-day rally. As we know all ‘’Gaps’’ are filled whether it takes a few days or a few months. Yesterday the first of these Gaps at 3472 was filled. The next ‘’Gap’’ to be filled is from 3445/3455 which is interesting as the 3440/3455 area offers strong support. I will be a buyer in this area with a tight 3429 stop. I will now lower my sell level to 3512/3527 with a lower 3541 stop.
Shortly after I posted yesterday the Euro rallied to my 1.1755 T/P level on my latest 1.1740 long position and I am now flat. With the 50 Day Moving Average at 1.1801, I will continue to be a seller from 1.1800/1.1840 with the same 1.1875 stop. We have short-term support from 1.1670/1.1710 where I will be a buyer with a 1.1625 stop.
December Dollar Index
Late yesterday the Dollar traded lower to my 93.25 buy level. I am still long with a lower 93.50 T/P level. I will raise my stop to 92.95 and if any of the above levels are hit I will be back with a new update for my Platinum Members.
After four of my Indices hit yesterday, I emailed my Platinum Members to lower their DAX buy level and I am still flat. This morning the DAX is opening lower at 12875. The DAX has support rom 12700/12770 where I will be an aggressive buyer with a 12635 tight stop.
The FTSE traded the whole of my buy range and I am now long at an average rate of 5890. As I go to press I have been stopped out of this position at 5835. The FTSE has support from 5730/5780 where I will again be a buyer with a 5685 stop. If I am taken long I will have a T/P level at 5825.
Dow Rolling Contract
After the Dow traded lower to my 28480 buy level we saw a nice 120 point rally and I used this move to cover my long position at my revised 24540 T/P level and I am now flat. The Dow has strong support at 28250 and today I will be a buyer from 28120/28280 with a 27985 tight stop. I will now lower my sell level to 28750/28950 with a lower 29125 stop.
My NASDAQ plan worked well with the market trading the whole of my buy range for a 11955 average long position. Subsequently we rallied back above 12025 which allowed me to cover this long position at my 11980 revised T/P level and I am now flat. The NASDAQ is trading lower this morning at 11860 as I go to press. If we close below 11900 this evening it will be a short-term sell signal, but as we have seen over the past few weeks anytime we look like we are going to move lower, the buy the dip supports the market. As I have said countless times that since 2008 most of the up-move in stocks is due to QE from the Fed along with the aggressive support of the markets since the March 23 lows this year. Today, I will be a small buyer from 11700/11800 with a 11615 stop. I will now lower my sell level to 12080/12180 with a 12265 stop.
The BUND has now rallied over 150 points in the last 10 days, pushing Bund yields to an incredible -60 basis points. The Bund has resistance from 176.05/176.45 where I will be a seller with a 176.85 stop. I do not want to be long the Bund at this time.
Gold Rolling Contract
No Change as I am still a buyer from 1856/1868 with the same 1847 stop.
Silver Rolling Contract
My latest 24.20 long Silver position worked well as the market traded higher to my 24.40 T/P level and I am now flat. Silver has support from 23.00/23.60 where I will be a buyer with a 22.45 stop. If I am taken long I will have a T/P level at 23.95.