U.S. Equity Markets finished Wednesday lower led by the hefty 3.39% fall in the NASDAQ 100. Markets ended the day lower as investors reacted to the Federal Reserve’s fourth-consecutive rate hike of 75 basis points. The Fed struck a dovish tone with its statement, saying that a slowdown decision could come soon, and further moves will consider cumulative tightening, policy lags, and additional economic data. Fed Chairman Jerome Powell also reiterated that it is too early to predict a terminal rate and that the central bank is not planning to pause its hikes anytime soon. Meanwhile, Automatic Data Processing’s (ADP) October employment survey showed private payrolls increased more than estimated, with additions more concentrated in goods producers as the service sector’s pace of hiring slowed. Within the S&P 500 Index , all 11 sectors finished lower. European Markets closed lower. Markets ended largely down as investors look ahead to the Fed’s rate decision and guidance Wednesday. Officials from the European Central Bank (“ECB”) continue to reinforce hawkish rhetoric, asserting that the ECB may toughen its monetary policy more than originally planned due to persistent inflation. Germany’s manufacturing Purchasing Manager Index (“PMI”) fell in October, led by slowing output and new orders. The Federal Statistical Office of Germany reported that Unemployment marginally increased in October, as the prospect of low-to-little global growth looms for the economy. The British Retail Consortium published its latest data, which showed shop price inflation registered another record high in October at 6.6% – up from 5.7% in September. In Asia, Markets ended largely higher following more social media reports indicating Beijing may announce plans to ease its zero-COVID policies. Elsewhere, markets anticipate the Fed’s decision Wednesday to raise interest rates by 75 basis points, with Dollar upside still holding consensus. And the Reserve Bank of Australia’s Governor Philip Lowe said that he would not rule out stepping up rate hikes if the data warrants it. Elsewhere, Oil rose 1.13% while Gold closed lower by 0.72% on a much higher Dollar.

To mark my 2650th 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 318 points yesterday and is now ahead by 658 points for November, after finishing October with a record gain of 9619 points, making 6660 points in 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 2.50% lower at a price of 3560.

The Dow Jones Industrial Average closed 505 points lower for a 1.55% loss at a price of 32,147.

The NASDAQ 100 closed 3.39% lower at a price of 10,906.

The Stoxx Europe 600 Index closed 0.30% lower.

Yesterday, the MSCI Asia Pacific Index fell 0.4%.

Yesterday, the Nikkei closed 0.05% lower at a price of 27,663.

Currencies 

The Bloomberg Dollar Spot Index closed 0.7% higher.

The Euro closed 0.5% lower at $0.9832.

The British Pound closed 0.8% lower at 1.1376.

The Japanese Yen rose 0.3% closing at $147.84.

Bonds

Germany’s 10-year yield closed 1 basis points lower at 2.12%.

Britain’s 10-year yield closed 5 basis points lower at 3.41%.

US 10 Year Treasury closed 5 basis points higher at 4.11%.

Commodities

West Texas Intermediate crude closed 1.13% higher at $89.98 a barrel.

Gold closed 0.72% lower at $1635.10 an ounce.

This morning on the Economic Front we have a speech from ECB President Lagarde at 8.05 am. This is followed by U.K. Composite PMI at 9.30 am and Euro-Zone Unemployment at 10.00 am. Next, we have the Bank of England rate decision at 12.00 pm, followed by U.S. Weekly Jobless Claims and the Trade Balance at 12.30 pm. Finally, we have ISM Services PMI and Factory Orders at 2.00 pm.

Cash S&P 500

What a day! The S&P surged to a post FOMC Statement high of 3895 before getting slammed for 2.5% on the work hawkish from Fed Chair Powell. This after four consecutive 75 basis point rate hikes which is guaranteed to cause at least a mild recession in America. This latest sell-off saw key MAs lost on both the Daily and Weekly charts for now. The only positive was the Dollar and Bond yields which moved higher but not dramatically given the aggressive equity sell-off. As I said in an email to my Platinum Members that Powell has no idea what he is doing. He is not an elected official and has managed to flush the S&P six days ahead of the Mid-Term Elections. The S&P is now well above it’s estimated neutral rate of 2.5%. We have not seen such level on the Funds rate since just before the busting of the housing and credit bubble in 2007. I bought the S&P on the sell-off at an average rate of 3797 believing that the market has overreacted to his press conference. Thankfully, the S&P rallied first to my 3880 T/P level on Tuesday’s 3865 long position before selling off. I have no stop on this long position while lowering my T/P level to 3820. The two-hour chart is severely oversold as I go to press.

EUR/USD

My Euro plan worked well as the market rallied to my revised .9958 T/P level on my latest .9905 long position. The late sell-off saw the Euro trade the whole of my second buy level as emailed to my Platinum Members for a now .9840 average long position. I will lower my stop to .9755 on a closing basis.  I will have a T/P level at .9905 and if any of the above levels are hit I will be back with a new update for my Platinum Members

March Dollar Index

No Change. I am still flat. I will continue to look to sell the Dollar from 112.20/112.90 with the same 113.45 stop.

Cash DAX

I am still flat as the DAX fell shy of yesterday’s buy range before the New York close. As I am now long both the S&P and Dow, I will now lower my DAX buy level to 11960/12040 with a lower 11885 ‘’Closing Stop’’.

Cash FTSE

No Change. I am still flat. I will continue to be a buyer on any dip lower to 6960/7040 with the same 6895 ‘’Closing Stop’’.

Dow Rolling Contract

Incredible volatility. The Dow having hit a post FOMC Statement high at 33074, before falling 1000 points into the close. This move lower saw the whole of my low buy level filled for a now 32200 average long position. I will now lower my T/P level to 32350 while leaving my 31885 ‘’Closing Stop’’ unchanged.

Cash NASDAQ 100

Just before the Fed announcement the NDX hit my second buy level at 11180 for a 11250 average long position before rallying to my revised 11365 T/P level and I am still flat. Subsequently, the NDX fell a massive 500 points into the close. This is an insane move. The NDX has support from 10670/10820 where I will again be a buyer with a 10545 ‘’Closing Stop’’.

December BUND

I am still flat as the Bund fell shy of yesterday’s buy range. I will now lower my buy level to 136.80/137.60 with a lower 135.95 ‘’Closing Stop’’.

Gold Rolling Contract

No Change. Gold has support from 1610/1625 where I will be an aggressive buyer with a 1599 ‘’Closing Stop’’.

Silver Rolling Contract

No Change. I am still long at 20.05 the same 20.60 T/P level.