With onshore traded Chinese stocks closed last week for the Lunar New Year holiday, expectations were high that Mondays reopen would push domestic markets sharply higher if only to catch up with offshore proxies in Hong Kong and in the US, where the Nasdaq China Golden Dragon ETF has ramped sharply higher in recent days. And while Chinese stocks did initially push higher – buoyed by solid travel and tourism data that suggested consumption revved up even as the broader economy struggles with deflation and a property crisis – the early thrust quickly fizzled out as it has much of the past year, as investors quickly shifted to selling the lack of news and demanding more than just words from Beijing. Sentiment was not helped by property sales once again missing the mark as did the lack of rate reductions on the MLF, despite “Chinese Premier Li Qiang called for “pragmatic and forceful” action to boost the nation’s confidence in the economy.” As Goldman’s Rich Privorotksy wrote this morning, “even with a robust recovery in travel and spend data (LV raising prices in China) underlying issues in property remain thorny and policy support seems restrained. Copper giving back some of Friday’s gains as is iron ore, coking coal and the rest of the ferrous complex.” So in a bid to maintain the recent bullish sentiment, with stocks wobbly and threatening to close read after a 10 day hiatus, the plunge protection team appeared on the scene to do just that: protect against a plunge and in the process send Chinese stocks to session highs. Although, European Indexes closed flat, American Futures Markets are lower by 0.25% as I go to press. Elsewhere, Oil closed flat while Gold ended Monday with a small 0.2% gain.
To mark my 2925th 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 was flat yesterday and is still ahead by 1001 points for February after closing January with a gain of 3675 points. December saw a gain of 1890 points after finishing November with a gain of 1734 points. October ended with a gain of 3184 points, after closing September with a small gain of 228 points, after finishing August with a gain of 1485 points, following a small gain of 285 points gain in July, after closing June with a gain of 2683 points. May closed with a gain of 3205 points. April saw a gain of 3354 points while March closed with a gain of 6168 points. The Platinum Service made a record 9619 points last October. Since I started this New Platinum Service in June 2015 it has averaged a monthly gain of over 1900 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 0.48% lower at a price of 5005.
The Dow Jones Industrial Average closed 145 points lower for a 0.37% loss at a price of 38,627.
The NASDAQ 100 closed 0.90% lower at a price of 17,685.
The Stoxx Europe 600 Index closed 0.16% higher.
Yesterday, the MSCI Asia Pacific closed 0.4% lower.
Yesterday, the Nikkei closed 0.20% higher at a price of 38,545.
Currencies
The Bloomberg Dollar Spot Index closed 0.34% lower.
The Euro closed 0.1% lower at $1.0765.
The British Pound closed 0.1% lower at 1.2590.
The Japanese Yen fell 0.1% closing at $150.34.
Bonds
Germany’s 10-year yield closed 1 basis points higher at 2.42%.
Britain’s 10-year yield closed 1 basis points lower at 4.10%.
U.S.10 Year Treasury closed 2 basis points higher 4.28%.
Commodities
West Texas Intermediate crude closed 0.11% higher at $79.29 a barrel.
Gold closed 0.2% higher at $2017.10 an ounce.
This morning on the Economic Front we have Euro-Zone Current Account at 9.00 am followed by Construction Output at 10.00 am. The only other data of note on either side of the Atlantic is Canadian CPI which will be released at 1.30 pm.
Cash S&P 500
Having traded in a narrow six Handle range for most of Monday, Equity Futures Markets are selling off as I go to post this morning with the S&P now trading lower at 4991. I will lower my S&P buy level to 4960/4975 with a lower 4947 ‘’Closing Stop’’. If I am taken long, I will have a T/P level at 4988. I still do not want to be short the S&P at this time.
EUR/USD
No Change. I am still flat the Euro as that market again traded in a narrow range. The Euro has short-term support from 1.0670/1.0740 where I will continue to be a buyer with the same wider 1.0595 ‘’Closing Stop’’.
Dollar Index
The Dollar has traded flat over the past 24 hours. I will continue to be a seller on any further rally to 104.80/105.50 with the same 106.05 ‘’Closing Stop’’.
Cash DAX
No Change: Thankfully we have had no sell level in the DAX over the past few weeks as every dip continues to attract strong buying. ‘’Nothing Matters’’ has been my theme for markets this year. Early Thursday morning the German Economics Minister stating that the German Economy is in massive trouble. This comment was totally ignored by the market, as the DAX trades near all-time highs. Japan is in recession and the Nikkei surged over the past week, flirting with its 1989 all-time highs. My old adage ‘’that markets that cannot fall on bad news have to be respected’’ could not be truer given the madness of the last week despite higher U.S. Inflation data. This morning, the DAX is trading lower at 17060. We have short-term support from 16880/16950. I will leave my buy level unchanged with the same 16795 ‘’Closing Stop’’. If I am taken long, I will have a T/P level at 17020. I still do not want to be short the DAX at this time. If this view changes, I will be back with anew update for my Platinum Members.
Cash FTSE
No Change. The FTSE traded in a 30 point range yesterday and I am still flat. The FTSE has strong support from 7580/7650 where I will continue to be a buyer with the same 7525 ‘’Closing Stop’’. I still do not want to be short the FTSE at this time.
Dow Rolling Contract
I am still flat the Dow as the market never came close yesterday’s buy range. I will leave yesterday’s buy level unchanged at 38160/38400 with the same 37995 ‘’Closing Stop’’. If I am taken long, I will have a T/P level at 38590. I still do not want to be short the Dow at this time. If this view changes, I will be back with a new update for my Platinum Members.
Cash NASDAQ 100
The NDX is trading lower at a price of 17680 as I go to press. I will now lower my NDX buy level to 17420/17570 with a lower and wider 17295 ‘’Closing Stop’’. If I am taken long, I will have a T/P at 17680. I still do not want to be short the NDX at this time.
March BUND
No Change. I am still long from last week at a price of 133.10 with the same 133.65 T/P level. I will add to this position at 132.40 while leaving my 131.85 ‘’Closing Stop’’ unchanged. If any of the above levels are hit, I will be back with a new update for my Platinum Members.
Gold Rolling Contract
No Change. I am still flat Gold as the market only traded in a narrow range over the past 24 hours. I will continue to be a buyer on any dip lower to 1983/1998 with the same 1971 ‘’Closing Stop’’. If I am taken long, I will have a T/P level at 2007.
Silver Rolling Contract
No Change. The boring price action shows no sign of ending unfortunately. I still believe in the bull case for this precious metal. I will continue to hold my 24.40 average long position with no stop or T/P level for now. This morning, Silver is trading 100 points higher at a price of 23.35. I will continue to look to add to my existing long position on any further move lower to 21.50. If this view changes, I will be back with a new update for my Platinum Members
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