U.S. Equity Markets were mixed as investors look ahead to this week’s Federal Reserve announcement. A late rally cut the Dow’s loss to 0.26% while the NASDAQ 100 closed with a gain of 0.93%. Markets opened higher before drifting lower throughout the rest of the day and bouncing into the close. All eyes are on tomorrow’s Federal Reserve policy announcement, where investors will look for any clues on inflation and future policy decisions. With the focus there, it was a relatively quiet day. There were some headlines out of this past weekend’s Group of Seven (“G7”) meeting, where leaders agreed to work together on the need to present a united front on the growing competitive threat from China. They also expressed support for ongoing fiscal stimulus efforts to support the global economy while working to keep interest rates in check. European Markets closed higher. Euro-Zone Industrial Production data for April were stronger than expected, rising versus March, and indicating the regional economy continues to build momentum. European Central Bank Governing Council member Klaas Knot said he still anticipates rising inflation in the second half of this year, but the impact will be short lived. British Prime Minister Boris Johnson delayed the June 21 deadline for relaxing social-distancing restrictions by four weeks due to increasing Indian-variant infections. In Asia, The People’s Bank of China issued new rules aimed at tighter regulation of cash management and reducing the amount of leverage allowed in order to better control speculation. India’s government is said to be considering an expansion of COVID-19 related relief measures, including credit guarantees, construction tax breaks, and rural stimulus. The Bank of Japan releases its latest policy update on Friday, and Governor Haruhiko Kuroda could give more detail on extending corporate stimulus measures. South Korea’s Ministry of Trade said exports of logic semiconductors rose 56% to a record $3 billion last month, while memory chip sales increased 14% to $6.6 billion. Elsewhere, Bitcoin gain 7% as Tesla CEO Elon Musk hinted that the company may begin accepting bitcoin payments again in the future, while Gold fell 0.66% as investors await this week’s Fed policy announcement.
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For anyone following my Platinum Service it made 130 points yesterday and is now ahead by 1059 points for June having made 1439 points in May, 1244 points in April, having ended March with an impressive gain of 3769 points, 3286 points in February, 2077 points in January, 2273 points in December, 2025 points in November, 2779 points in October, 3042 points in September and 2383 points in August. 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 0.18% higher at a price of 4255.
The Dow Jones Industrial Average closed 85 points lower for a 0.26% loss at a price of 34,393.
The NASDAQ 100 closed 0.93% higher at a price of 14,128.
The Stoxx Europe 600 Index closed 0.4% higher.
Yesterday, the MSCI Asia Pacific Index rose 0.3%.
Yesterday, the Nikkei closed 0.74% higher at a price of 29,161.
The Bloomberg Dollar Spot Index closed 0.1% lower.
The Euro closed 0.1% higher at $1.2118.
The British Pound closed 0.1% lower at 1.4102.
The Japanese Yen fell 0.4%, closing at $110.07.
Germany’s 10-year yield closed two basis points higher at -0.25%.
Britain’s 10-year yield closed five basis points higher at 0.75%.
US 10 Year Treasury closed four basis points higher at 1.49%.
West Texas Intermediate crude closed 0.16% higher at $70.88 a barrel.
Gold closed 0.66% lower at $1,864.20 an ounce.
This morning on the Economic Front we have German CPI and UK Unemployment including Average Earnings at 7.00 am. Next, we have Euro-Zone Trade Balance at 10.00 am, followed by U.S Retail Sales, PPI and the New York Empire State Manufacturing Index at 1.30 pm. Finally, we have Industrial Production at 2.15 pm and the NAHB Housing Market Index at 3.00 pm.
June S&P 500
Frustratingly, the S&P missed my 4233 buy level with a 4233.50 low print before rallying 20 Handles into the close, to register yet another new all-time high. Despite the rally in both the S&P and NASDAQ, the VIX closed 5% higher on an otherwise very quiet trading session. I will now raise my buy level to 4221/4236 with a higher 4209 ‘’Closing Stop’’. I will also raise my sell level to 4270/4285 with a higher 4297 ‘’Closing Stop’’.
No Change. I am still long at 1.2130 from last Friday with the same 1.2160 T/P level. I will continue to add to this position at 1.2080 while leaving my 1.2055 stop unchanged.
September Dollar Index
I am still flat as the Dollar again traded in a narrow range. The Dollar has support from 89.60/90.10 where I will be a buyer with an 89.25 tight stop.
The relentless move higher in the DAX show no sign of ending and I am still flat. Today, I will again raise my buy level to 15480/15550 with a higher 15405 stop. If I am taken long I will have a T/P level at 15595.
The boring sideways price action continued in the FTSE and I am still flat. I will again raise my buy level to 7030/7080 with a tight 6995 stop.
Dow Rolling Contract
The Dow continues to diverge from the S&P. Yesterday the Dow closed lower for the sixth consecutive trading session while the S&P closed at a new all-time high. The Dow has now moved net sideways for the past two months while Small Traders increased their Net- Dow Futures Purchases to 10.9% of Total Open Interest, the highest in three years. Yesterday’s move lower saw my 34340 buy level filled. Unfortunately, the Dow missed my second buy level of 34200 by five points before rallying nearly 200 points off this low in the last twenty minutes of trading. I will leave my 34420 T/P level unchanged. I will now only add to this position at 34160 with a now lower 34065 ‘’Closing Stop’’. I will now lower my sell level to 34700/34900 with a lower 35085 ‘’Closing Stop’’. If I am taken short I will have a T/P level at 34580. If any of the above levels are hit I will be back with a new update for my Platinum Members.
The NASDAQ surged in the last twenty minutes of trading, hitting my 14100 sell level. I am still short and I will now add to this position at a higher price of 14180 while leaving my 14225 ‘’Closing Price Stop’’ unchanged. I will now raise my T/P level on this position to 14050. I will continue to be an aggressive buyer on any dip lower to 13820/13740 with the same 13890 T/P level and 13655 ‘’Closing Stop’’.
The Bund had a small sell-off yesterday and I am still flat. I will now lower my sell level to 172.95/173.45 with a lower 173.81 stop.
Gold Rolling Contract
My Gold plan worked well with the market trading lower to my 1850 buy level before rallying to my 1860 T/P level and I am now flat. Gold has support from 1832/1845 where I will again be a buyer with a 1819 stop.
Silver Rolling Contract
My Silver plan also worked well with the market trading lower to my 27.50 buy level before rallying to my 27.80 T/P level and I am now flat. Today, I will again be a buyer from 26.80/27.40 with a tight 26.45 stop.