After trading to new all-time highs earlier in the session, U.S. Equity markets sold off throughout the day on fears of another shutdown led by the Dow which closed 0.62% lower. The U.S had joined the UK by rolling out the COVID-19 vaccine. Late Friday, the U.S. Food and Drug Administration approved Pfizer and BioNTech’s Coronavirus vaccine for an Emergency Use Authorisation. And the first patients received the vaccine in the U.S. yesterday morning. As a result, optimism rose over a return to “normal.” On the stimulus front, bipartisan lawmakers were said to be ready to unveil their proposal today. There were reports that the $900 billion proposal would be split into two separate bills, with the contentious issues being broken into a smaller bill to be negotiated later. This had markets rising in the early morning. Markets gave up some of their gains throughout the day. New York City Mayor Bill de Blasio warned of a “full lockdown” if cases continue to rise. This sparked fears of another abrupt hit to the economic growth picture. Meanwhile the Electoral College formally approved Joe Biden as the next President with a decisive majority of 306/232. This was the same margin that Trump had bragged about four years ago as a ‘’Landslide’’. European Markets closed higher on ‘’Brexit’’ hopes. British Prime Minster Boris Johnson and European Commission President Ursula von der Leyen agreed to continue trade talks in hopes of securing a deal before year’s end. The German government announced it would be closing shops and schools from Wednesday until January 10 to contain the rising spread of Coronavirus infections. European Central Bank Governing Council Member Fabio Panetta said that the central bank’s Asset Purchase Programme could be expanded further as needed. European Union countries pulled out of an international business forum with Iran after an Iranian journalist who had been living in France was executed in Iran for anti-government dissent. Elsewhere, Oil closed 0.79% higher as OPEC lowered its demand outlook for 2021, while Gold finished the day with a 0.66% loss.
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For anyone following my Platinum Service it made 225 points yesterday and is now ahead by 1090 points for December, having finished November with a gain of 2025 points, 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 0.44% lower at a price of 3647.
The Dow Jones Industrial Average closed 184 points lower for a 0.62% loss at a price of 29,861.
The NASDAQ 100 closed 0.70% higher at a price of 12,462.
The Stoxx Europe 600 Index closed 0.5% higher.
The MSCI Asia Pacific Index rose 0.3%.
This morning the Nikkei closed 0.17% lower at a price of 26,687.
The Bloomberg Dollar Spot Index closed 0.2% lower.
The Euro closed 0.1% higher at $1.2148.
The British Pound rose 0.7% to close at $1.3330.
The Japanese Yen closed 0.1% lower at 104.15 per dollar.
Germany’s 10-year yield two basis points lower at -0.63%.
Britain’s 10-year yield closed five basis points higher at 0.22%.
US 10 Year Treasury closed two basis points lower at 0.89%.
West Texas Intermediate crude closed 0.79% higher at $46.06 a barrel.
Gold closed 0.66% lower at $1,821.20 an ounce.
This morning on the Economic Front we already had the release of UK Average Earnings which rose 2.7% versus +2.2% expected, while The Unemployment Rate fell to 4.9% from 5.1% last month. At 1.30 pm we have the U.S Import/Export Price Index. This is followed by Industrial Production and Capacity Utilisation at 2.15 pm. Finally, at 9.00 pm we have the Net Long-Term TIC Flows.
December S&P 500
On a day that the VIX closed 6% higher at a price of 24.72 my S&P plan worked well with the market trading higher to my 3695 sell level before falling to an intra-day low of 3644 on fears that the U.S is going into further lock-down. This move lower saw my 3686 T/P level filled. Subsequently I bought the S&P at 3658 before emailing my Platinum Members to exit any long position at 3664 as I was also long the Dow and had enough overnight risk on board. I am now flat. The S&P has strong support at last Friday’s 3628 low print. As a result, I will be a buyer from 3616/3632 with a 3605 stop. We have strong support from 3585/3600 where I will be an aggressive buyer with a ‘’Closing 3573 Stop’’. With the VIX closing over the key 23.00 level for the second consecutive day I will now be a small seller from 3670/3685 with a 3701 stop which is just above yesterday’s 3697 high print.
No Change as I am still a seller from 1.2195/1.2245 with the same 1.2281 stop. I will now raise my buy level to 1.2040/1.2090 with a higher 1.1995 stop.
March Dollar Index
The Dollar just missed my 90.30 buy level before rallying into the New York close and I am still flat. I will now raise my buy level to 89.90/90.40 with the same 89.45 stop. If I am taken long I will have a T/P level at 90.75.
Despite the late sell-off in U.S Indices the DAX held on to most of yesterday’s gains. I am still flat and I will continue to be a buyer on any dip lower to 13050/13120 with the same 12985 stop.
The FTSE traded ‘’heavy’’ all-day yesterday and I am still flat. I will now lower my sell level to 6570/6630 with a lower 6675 stop. I still do not want to be long the FTSE at this time.
Dow Rolling Contract
While the S&P did not make a new all-time high both the NASDAQ and Dow did. Although the NASDAQ held on to most of it’s gains, the Dow fell almost 500 pints into the close. This move lower has me long at a price of 29990. I will continue to add to this trade at 29790 with a now lower 30030 T/P level. Meanwhile I will leave my 29675 stop unchanged and if any of the above levels are hit I will be back with a new update for my Platinum Members.
My NASDAQ plan worked well with the market trading higher to my 12510 sell level before trading lower to my revised 12460 T/P level and I am now flat. Today, I will again be a seller on any rally higher to 12530/12610 with a 12705 stop. I will leave my 12160/12280 buy level unchanged with the same 12095 stop.
The Bund traded lower to my 178.35 T/P level on my latest 178.60 short position and I am now flat. With the BUND trading at an insane yield of -63 basis points I will continue to be a seller of rallies. Today, my sell level will be from 178.75/179.25 with a 179.61 stop.
Gold Rolling Contract
Gold made a low of 1810, just missing my initial 1805 buy level before surging to trade at 1835 this morning. I will now raise my buy level to 1800/1812 with a higher 1789 stop.
Silver Rolling Contract
I am still flat and I will now raise my buy level to 23.00/23.70 with a higher 22.65 stop.