U.S. Equity Markets finished Wednesday higher following several days of falling markets. The S&P led the gain closing higher by 2%, helping the VIX to close lower by 7.50% at a price of 30.18. Markets sustained gains on the day for the first time in several sessions. The Bank of England’s intervention announcement provided a reprieve to rate pressures, sending Equities higher. Investors also lowered rate-hike expectations from the Federal Reserve with the latest implied Federal-Funds rate peak decreasing by around 25-basis points, or one entire rate hike. The Treasurys’ market encountered another volatile day of trading, with early yield gains for the 10-year Treasury forfeited as the day went on. Meanwhile, August Pending Home Sales slowed more than expected. Within the S&P 500 Index, all 11 sectors finished higher. European Markets closed higher. Markets responded well and recovered early losses following the Bank of England’s announcement that it will intervene in the gilt market to restore order. The central bank also assured that it will not hesitate to raise rates until lower inflation is achieved. European Central Bank President Christine Lagarde said that rates will continue to rise for several meetings. And German consumer confidence posted fresh all-time lows as inflation and energy fears intensify. In Asia, Markets tumbled Wednesday, following news that Apple (AAPL) would cut production in China, and the Dollar surged following the 10-year Treasury yield topping 4% for the first time since 2010. The China Beige Book survey warned of building deflationary pressures with demand weakening because of the property crisis unfolding. South Korea announced it was preparing to activate its stock stabilisation fund, while Thailand’s central bank raised its policy rate by 25-basis points to 1%. Elsewhere, Oil rose 4.52% while Gold closed 1.93% higher after a volatile trading session.

To mark my 2625th 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 1045 points yesterday and is now ahead by 6175 points for September, after closing August with a gain of 2228 points, having made 2660 points in July, following a gain of 3371 points in June. The Service made 3651 points in May, after making 762 points in April, following a gain of 5883 points in March. The Platinum Service made an impressive 5324 points in February, after ending January with a gain of 3878 points, more than making up for December’s 932 points loss. Since I started this New Platinum Service in June 2015 it has averaged a monthly gain of over 1600 points. I have a YouTube Channel which contains recent interviews I have given This can be viewed by clicking HERE Please subscribe to this for new interview notification 

 

Equities

 

The S&P 500 closed 1.97% higher at a price of 3719.

The Dow Jones Industrial Average closed 548 points higher for a 1.88% gain at a price of 29,683.

The NASDAQ 100 closed 1.97% higher at a price of 11,493

The Stoxx Europe 600 Index closed 0.30% higher.

This morning, the MSCI Asia Pacific Index rose 0.5%.

This morning, the Nikkei closed 0.95% higher at a price of 26,422.

Currencies 

The Bloomberg Dollar Spot Index closed 1.2% lower.

The Euro closed 1.5% higher at $0.9725.

The British Pound closed 1.4% higher at 1.0880.

The Japanese Yen rose 0.4% closing at $144.25.

Bonds

Germany’s 10-year yield closed 10 basis points lower at 2.12%.

Britain’s 10-year yield closed 47 basis points lower at 4.01%.

US 10 Year Treasury closed 24 basis points lower at 3.71%.

Commodities

West Texas Intermediate crude closed 4.52% higher at $81.10 a barrel.

Gold closed 1.93% higher at $1658.10 an ounce.

This morning on the Economic Front we have speeches from ECB Members, Panetta, De Guindos and Elderson at 8.00 am, 9.00 am and 9.15 am respectively. This is followed by Euro-Zone Economic Sentiment Indicator at 10.00 am. Next, we have German CPI at 1.00 pm, followed by U.S. Weekly Jobless Claims, GDP and PCE at 1.30 pm. Finally, we have a speech from ECB Member Lane at 6.00 pm.

Cash S&P 500

The positive divergences that I have been talking about over the past week finally paid off yesterday following the intervention by the Bank of England to buy U.K. Gilts. Is the Low finally in? I am not so sure but the ferocity of yesterday’s move is a start in the right direction. The driver of this rally of course was the massive reversal in Bond Yields and the Dollar. The key now is to see will see follow through ahead of tomorrow’s Quarter-End or is it just a one-day wonder. Yesterday’s 3601 low in the S&P saw the Weekly 200 MA hold which is now key support. My S&P plan worked well as the S&P hit my aggressive 3603 buy level before rallying 140 Handles. This move higher saw my revised 3644 T/P level filled. I am still long the S&P from last Friday at 3733. I will continue to hold this position with no stop. I will have a T/P level on this position at 3770. Today, I will again be a buyer on any further dip lower to 3650/3668 with a 3629 ‘’Closing Stop’’. If I am taken long I will have a T/P level at 3697.

EUR/USD

I am certainly wrong on my 1.0060 long Euro position. Given the number of points made this month, I will now look to exit this long position by tomorrow. I will now lower my exit level to .9720.

March Dollar Index

No Change as I need a miracle. I am still short at an average rate of 108.90 with the same 108.10 T/P level.

Cash DAX

Yesterday morning the continued sell-off in the Bund saw the DAX hit my second buy level at 11930 for a 12000 average long position. The market rallied to a high at 12300 enabling me to cover this position at my revised 12105 T/P level and I am now flat. This morning, the DAX is opening lower at 12100. We have support from 11890/11980 where I will again be a buyer with a 11795 ‘’Closing Stop’’.

Cash FTSE

Unfortunately, after the FTSE traded the whole of my buy range for a 6910 average long position, I covered this trade too early at 6940 and I am still flat. The FTSE made a rebound high near 7100 on the back of the BoE intervention before selling off again this morning. We have support from 6780/6860 where I will again be an aggressive buyer with a wider 6695 ‘’Closing Stop’’.

Dow Rolling Contract

My Dow plan worked well within the market trading lower to my 28980 buy level before rallying to a high above 29800 as the rally I have been looking for finally came thorough. Due to the number of positions that I had on board, I covered my Dow long at 29160 and I am still flat. This morning, the Dow is opening lower at 29400. We have support from 29060/29300 where I will again be a buyer with a 28895 ‘’Closing Stop’’.

Cash NASDAQ 100

Yesterday morning’s aggressive sell-off saw the NDX trade lower to my second buy level at 11150 for a 11270 average buy level before rallying to my revised 11420 T/P level and I am now flat. The renewed sell-off in U.S Treasuries this morning sees the NDX trading lower at 11350. We have support from 11130/11280 where I will again be an aggressive buyer with a 10995 wider ‘’Closing Stop’’.

December BUND

After several sessions of rising bond yields, the aggressive intervention by the Bank of England finally put a floor in Bond prices for now. The Bund again traded the whole of my buy range for a 136.20 average long position before rallying to my aggressive 137.50 T/P level and I am now flat. Today, I will again be a buyer on any dip lower to 135.80/136.60 with a wider 134.95 ‘’Closing Stop’’.

Gold Rolling Contract

Gold recorded a massive upside ‘’Key Day Reversal’’ off its 1610 morning low. This move higher saw my 1650 T/P level triggered on my existing 1646 long position and I am now flat. Today, I will again be a buyer on any further move lower to 1620/1635 with a 1609 ‘’Closing Stop’’.

Silver Rolling Contract

No Change. I am still long Silver at 18.40 with the same 19.60 T/P level and no stop. If this view changes I will come back with an update for my Platinum Members.