U.S. Equity Markets rose again on Inauguration Day, with both the NASDAQ 100 and S&P closing at new all-time highs. The NASDAQ led the market higher closing with a gain of 2.31%. Vaccine optimism was a big driver today. Moderna said that it is on track to deliver 100 million U.S. doses of its vaccine by the end of March, increasing the chances of success for Biden’s 100 million inoculations in 100 days plan. Economic data were also positive. Homebuilder optimism fell from December and missed estimates. But it remained within touching distance of the all-time high set in November, and it was well above the key reading of 50 that distinguishes bullish and bearish sentiment. Strong reports out of the early part of earnings season also provided a boost. As of this morning, 91% of S&P 500 companies that have reported have beaten expectations. That is well above the average of 75% over the past four quarters. As a result, Wall Street has revised its earnings estimate to a decline of about 6% versus the initial estimate for a 9% drop. European Markets also closed higher. Italian Prime Minister Giuseppe Conte won a confidence vote in the Senate by a slim margin, staving off a collapse of the current government. Conte also planned to boost the budget deficit in order to offer grants for businesses hurt by pandemic lockdowns, as well as help keep people in jobs and delay tax deadlines. A lab-based study showed that Pfizer and BioNTech’s vaccine was effective at preventing COVID-19 infections from the new U.K. strain. This should go even further to inspire confidence in the vaccine. German Chancellor Angela Merkel warned the country may have to close its borders if other European nations do not get their infection rates under control. Elsewhere, Gold rose 1.58% as President Joe Biden was inaugurated, likely leading to more stimulus, while Bitcoin fell over 4% on little news.
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For anyone following my Platinum Service it lost 193 points yesterday and is now ahead by 937 points for January, having finished December with a gain of 2273 points, 2025 points in November, 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, and an incredible 9264 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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The S&P 500 closed 1.39% higher at a price of 3851.
The Dow Jones Industrial Average closed 257 points higher for a 0.83% gain at a price of 31,188.
The NASDAQ 100 closed 2.31% higher at a price of 13296.
The Stoxx Europe 600 Index closed 0.7% higher.
The MSCI Asia Pacific Index fell 0.3%.
Yesterday the Nikkei closed 0.38% lower at a price of 28,523.
The Bloomberg Dollar Spot Index closed 0.1% lower.
The Euro closed 0.1% lower at $1.2106.
The British Pound closed 0.2% higher at $1.3656.
The Japanese Yen closed 0.3% higher at 103.49 per dollar.
Germany’s 10-year yield closed unchanged at -0.53%.
Britain’s 10-year yield closed one basis point higher at 0.30%.
US 10 Year Treasury closed one basis points lower at 1.08%.
West Texas Intermediate crude closed flat at $53.37 a barrel.
Gold closed 1.58% higher at $1,873.20 an ounce.
This morning on the Economic Front at 9.00 am we have UK Bank of England Credit Conditions. This is followed at 12.45 pm by the ECB Rate Decision and the Lagarde press conference at 1.30 pm. At the same time, we have U.S Weekly Jobless Claims, Housing Starts and Building Permits. Finally, at 3.00 pm we have Euro-Zone Consumer Confidence.
March S&P 500
The S&P soared 60 Handles yesterday as thankfully we had only one sell level in any of my Indices yesterday. After the S&P traded the whole of my sell range for a 3819 average short position, I was stopped out of this position on the close at 3841 and I am now flat. Yesterday’s move higher saw all three US Indices leave more ‘’Open Gap’s. The next resistance level for the S&P is from 3867/3883 where I will be an aggressive seller with a 3901 wider stop. I will now raise my buy level to 3798/3815 with a 3783 tight stop. A break and close below 3771 is required for me to turn bearish again.
After the Euro traded lower to my 1.2085 buy level we saw a small rally, enabling me to cover this position at my revised 1.2112 T/P level and I am now flat. Today, I will again be a buyer from 1.2040/1.2080 with the same 1.1995 stop.
March Dollar Index
No Change as I am still a buyer from 89.80/90.20 with the same 89.35 stop.
Despite the weaker Euro the DAX is struggling to break the key 14000 resistance level. I am still flat and I will now raise my buy level to 12705/12785 with a 12645 stop. Ahead of the ECB Meeting this afternoon I still do not want to be short the DAX at this time.
Frustratingly, the FTSE just missed my buy level by three points before having a small rally into the New York close and I am still flat. I will continue to be a small buyer from 6610/6655 with a 6575 tight stop.
Dow Rolling Contract
The Dow made a new all-time high before having a small sell-off into the close and I am still flat. The Dow has strong resistance from 34420/31600 where I will be an aggressive seller with a 31735 stop. If I am taken short, I will have a T/P level at 34290. I will now raise my buy level to 30750/30950. If I am taken long, I will have a T/P level at 31110. My stop on any long position will be at 30595.
The NASDAQ exploded yesterday, closing 300 points higher. Valuations are now at more extreme levels. The NASDAQ has strong resistance from 13380/13460 where I will be an aggressive seller with a 13525 stop. I will now raise my buy level to 12950/13050 with a 12875 tight stop.
The BUND has traded in a narrow range over the past week and I am still flat. I will now raise my buy level to 176.65/177.05 with a higher 176.31 stop.
Gold Rolling Contract
The 1805 low on Sunday night looks to be significant given the fact that Gold is trading at 1875 now. I am still flat and today I will raise my buy level to 1835/1850 with an 1821 stop.
Silver Rolling Contract
I am still flat and I will now raise my buy level to 24.70/25.30 with a higher 24.35 stop.