U.S. Equities finished mixed as investors ditched the companies behind the latest risk-on rally, while Sovereign Bond Yields rose in Europe and America. High-flying health-care shares led declines Monday, as some on Wall Street including Goldman’s Asad Haider sounded the alarm to a “potential onslaught of drug pricing headlines in the coming weeks following Congress’s August recess.” Mega=cap tech names also retreated. Stocks coveted for their high dividend yields, including real-estate and utility names, retreated as the 10-year rate topped 1.6%. German Bunds led the drop in sovereign debt, with yields on longer-dated notes climbing more than shorter-dated securities, as traders pared back expectations that the European Central Bank will unveil a big stimulus package this week. In other news, Members of Parliament voted again to deny Boris Johnson an early general election, which the prime minister wants to break the Brexit impasse. The government suspended Parliament as planned.

Key Developments:

Johnson fell short of two-thirds majority needed to secure an early general election

Parliament was suspended at the end of business until Oct. 14

Speaker John Bercow said he plans to step down by Oct. 31

To mark my 1900th 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 30 points yesterday and is now ahead by 365 points for September, having made 2387 points in August, 1153 points in July, 1346 points in June,1722 points in May, 955 points in April and 1027 points in March. 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

Treasury Secretary Steven Mnuchin said earlier that the U.S. and China have made “lots of progress” on trade talks. Trade sentiment is driving the market movements on the margin up and down. The commentary that we’ve heard over the past week or so, clearly markets have taken note of that and already priced some of that in.”

 The S&P 500 Index closed unchanged at 2978.

The Dow gained 0.1% to close at 26836.

The NASDAQ fell 0.2% to close at 7825

Currencies

Here is a summary of the main changes in F.X. Markets:

The Bloomberg Dollar Spot Index edged higher.

The Euro traded at $1.1043, little changed.

The Pound closed 0.5% higher at $1.2341.

The Japanese Yen slipped 0.1% to 107.32 per dollar.

The offshore yuan was flat at 7.1169 per dollar.

Bonds

Rates on longer-dated Treasury notes climbed more than those on shorter-dated securities, reversing an inversion in the yield curve.

The yield on 2 Year Treasuries gained 4 basis points to 1.58%, the highest in more than two weeks.

The Yield on 10-year Treasuries rose seven basis points to 1.63%, the highest in almost four weeks.

Germany’s 10-year bond yield gained five basis points to -0.59%, the highest in a month.

Commodities

Oil advanced after Saudi Arabia’s new energy minister signalled that OPEC and its allies will continue with production cuts, as the group prepares to gather in Abu Dhabi.

West Texas Intermediate crude gained 0.3% to $58.01 a barrel.

Gold fell 1.2% to $1,489.96 an ounce.

This morning on the Economic Front we have UK Average Earnings and the Unemployment Rate at 9.30 am. This is followed at 11.00 am by the U.S. NFIB Business Index. Finally, at 3.00 pm we have the JOLTS Job Openings for July.

September S&P 500

The S&P hit a wall of resistance at 2990 before falling 20 Handles in the late afternoon before subsequently trading sideways to higher into the close. As long as the S&P can hold above the key 2925/2940 support area then the market will continue to be a buy on dips. I am still flat the S&P and today I will leave my 2950/2960 buy level unchanged with the same 2939 wider stop. I still do not want to be short the market at this time.

EUR/USD

No Change as I am still a buyer on any dip lower to 1.0940/1.0980 with the same 1.0905 stop.

December Dollar Index

The Dollar again traded sideways after last week’s sell-off and I am still flat. I am still a seller on any rally higher to 98.35/98.75 with the same 99.05 stop.

September DAX

The DAX again closed over 12200 despite the Euro holding above 1.10. I am still flat the market and today I will again raise my buy level to 12050/12120 with a higher 11995 stop. Despite the DAX being overbought I still do not want to be short the market at this time.

September FTSE

The FTSE made a high of 7350 shortly after I posted yesterday morning before falling 150 points on a combination of the worsening political situation and a higher Pound. The FTSE has strong support from 7110/7160 and I will be a buyer on any further sell-off to this area with a 7075 tight stop.

Dow Rolling Contract

The Dow closed at a six-week high yesterday at 26830 which is just below the 78% retracement of the whole sell-off at 26958. A break and close over 27000 should see new highs as most traders are still trapped short after last month’s incredible two-way volatility. I am still flat the Dow and today I will lower  my level slightly to 26540/26680 with a lower 26460 stop. Despite the huge rally over the past two weeks I still do not want to be short the Dow at this time.

September NASDAQ

The NASDAQ was the weakest of the US Indices yesterday with the market soon trading lower to my 7855 T/P level on Friday’s 7860 short position. Subsequently the NASDAQ hit my second buy level at 7810. I am still long and I will only add to this position on any further sell-off to 7750 with a lower 7715 stop. I will now lower my T/P level on this long position to 7850. If any of the above levels are hit I will be back with a new update for my Platinum Members.

December BUND

The BUND fell hard yesterday closing over 100 points lower as the yield traded to its highest level in a month. This move lower saw the Bund hit my 174.30 buy level before thankfully rallying to my revised 174.55 T/P level as emailed earlier to my Platinum Members and I am now flat. I mentioned countless times over the past few months that funds buying the US Bond Market will regret this aggressive approach to the market as Bond Yields invariably rise. Yesterday the 10-Year Treasury closed over 10 Basis points higher as the DSI again proved what a fantastic technical signal it is. Today I will be a small seller of the Bund from 174.55/174.95 with a 175.20 tight stop. The Bund has support from 173.20/173.60 and I will be a buyer here with a 172.90 stop.

Gold Rolling Contract

Despite the weaker Dollar, Gold has sold off since I posted yesterday morning with the market hitting my 1488 buy level overnight. I do not like the price action in the precious metals and I will now lower my T/P level on this position to 1494.

Silver Rolling Contract

Silver just missed my 18.45 sell level with a 18.40 high print before selling off to trade at 18.00 as I go to press. Silver is now trading 9% lower since last week’s 19.70 high which corresponded with a DSI reading of 95% bulls. Silver has strong support from 17.30/17.70 and I will be a buyer in this  area with a 16.95 tight stop.

 

 

 

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