U.S. Equity Markets bounced around as investors digested more vaccine headlines before selling off into the close in what turned out to be a volatile trading session. Both the S&P and Dow led the decline, closing lower by 1.16%. Markets initially rallied after we got more positive vaccine news out of Pfizer and BioNTech. Pfizer said final data from its 19 late-stage COVID- vaccine trials had reached a safety milestone with 95% efficacy and it was now preparing to seek an emergency use authorisation. This was above the 90% effectiveness Pfizer reported from early analysis last week. In terms of Economic data, both Housing Starts and Building Permits came in above estimates. This is the latest sign that homebuilders are expecting continued high demand for homes. On the stimulus front, House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer called on Senate Republicans to restart negotiations on a fifth Coronavirus support package. New York became the latest state to threaten COVID restrictions, after governor Andrew Cuomo warned that the State could soon shut down indoor dining in gyms. Meanwhile European Indices closed higher. AstraZeneca’s Chief Financial Officer said results from final-stage Coronavirus vaccine trials in the U.K., Brazil, and South Africa should be available within weeks. Bank of England Chief Economist Andy Haldane said the British economy surpassed expectations in the Third Quarter, but remains below pre-pandemic levels. French Prime Minister Jean Castex said the country will maintain Coronavirus-related restrictions once the current lockdown is over in order to better contain the spread. European Union new car registration data for October weakened versus September, showing contraction, and implying economic growth was slowing. Elsewhere, Oil closed 0.65% higher on reports that OPEC was set to extend its production cuts into 2021 to combat rising crude inventories, while Gold fell 0.84% on little news.
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 firstname.lastname@example.org for details
For anyone following my Platinum Service it lost 18 points yesterday and is now ahead by 1454 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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The S&P 500 closed 1.16% lower at a price of 3567.
The Dow Jones Industrial Average closed 345 points lower for a 1.16% loss at a price of 29,438.
The NASDAQ 100 closed 0.69% lower a price of 11,894.
The Stoxx Europe 600 Index closed 0.4% higher.
The MSCI Asia Pacific Index rose 0.4%.
Yesterday, the Nikkei closed 1.11% lower at a price of 25,728
The Bloomberg Dollar Spot Index closed 0.2% lower.
The Euro closed 0.1% lower at $1.1855.
The British Pound closed 0.1% higher at $1.3270.
The Japanese Yen closed 0.3% higher at 103.82 per dollar.
The yield on 10-year Treasuries closed one basis point higher at 0.87%.
Germany’s 10-year yield closed unchanged at -0.56%.
Britain’s 10-year yield closed two basis points higher at 0.35%.
The Bloomberg Commodity Index closed 0.3% higher.
West Texas Intermediate closed 0.65% higher at $41.60 a barrel.
Gold closed 0.84% lower at $1664 an ounce.
This morning on the Economic Front we have a speech from ECB President Lagarde at 8.00 am and this is followed by Euro-Zone Current Account at 10.00 am. At 1.30 pm we have the U.S Weekly Jobless Claims and the Philly Fed Manufacturing Index. Finally, at 3.00 pm we have Existing Home Sales, following by the Kansas City Fed Manufacturing Index at 4.00 pm.
December S&P 500
Initially my S&P plan worked well with the market trading lower to my 3587 buy level before rallying to a morning high of 3622. Unfortunately, I bought the S&P again at a price of 3584 before being stopped out of this position on the close at 3561 and I am still flat. The S&P has now made a series of lower highs since it latest all-time high on November 9. The price action was bearish yesterday but unless we break and close below the key 3490/3510 support area then I will continue to be a buyer on dips. Today I will be a buyer from 3520/3535 with a 3505 ‘’Closing Stop’’ I will now lower my sell level to 3615/3630 with a tight 3643 stop.
No Change as I am still a buyer on any dip lower to 1.1770/1.1805 with the same 1.1735 stop. If I am taken long I will have a T/P level at 1.1845.
December Dollar Index
The boring sideways action in the Dollar continues and I am still flat. My buy level remains unchanged at 91.80/92.20 with the same 91.35 stop.
Despite the negative close to the US Indices, the DAX held in yesterday and I am still flat. I will now lower my buy level again to 12820/12905 with a 12755 stop. If I am taken long I will have a T/P level at 12965.
My FTSE plan worked well with the market trading higher to my 6372 sell level before selling off to my too-tight 6350 revised T/P level and I am still flat. Given how overbought the FTSE is trading I will continue to be a seller of rallies. Today, my sell level will be from 6345/6405 with a 6455 stop. If I am taken short I will have a T/P level at 6305.
Dow Rolling Contract
Since September 9, the Dow has gapped higher or lower at every open, a string of eight consecutive days. This is unusual and shows how fractured the market is at this time. Just before the close the Dow traded lower to my 29420 buy level. I will add to this trade at 29180 with a now lower 28995 stop. I will now lower my T/P level to 29550 and if any of the above levels are hit I will be back with a new update for my Platinum Members.
The NASDAQ also sold of to my buy range late in yesterday’s session and I am now long in small size at 11860. I will add to this trade at 11770 with the same 11695 stop. I will now lower my T/P level to 11930.
The BUND traded sideways yesterday, and I am still flat. Ahead of ECB President Lagarde’s speech at 8.00 am I will leave my 174.30/174.80 buy level unchanged with the same 173.85 stop.
Gold Rolling Contract
My Gold plan worked well with the market trading lower to my 1860 buy level before rallying to my 1867 T/P level and I am now flat. Gold has strong support from 1820/1835 where I will be a buyer with a tight 1809 stop.
Silver Rolling Contract
No Change as I am still a buyer from 23.10/23.70 with the same 22.65 stop.