Technology shares led gains among U.S. stocks following mixed sessions in Europe and Asia as investors looked ahead to a busy week of corporate earnings. Oil gained amid tensions in the Persian Gulf. Apple rallied after Morgan Stanley boosted its price target, while Micron Technology was lifted to buy from neutral by Goldman Sachs, as were Lam Research and Applied Materials. The Dow Jones Industrial Average was little changed. Stocks slipped throughout Asia, led by declines in Shanghai and Hong Kong as traders watched escalating tensions there. Treasuries advanced after traders pared bets the Federal Reserve will slash rates by a half-point this month.
To mark my 1875th 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 email@example.com for details
For anyone following my Platinum Service it made 15 points yesterday and is now ahead by 862 points for July, having made 1346 points in June,1722 points in May, 955 points in April, 1027 points in March, 1013 points in February and 1671 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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Investors will be eyeing earnings this week for signs of economic slowdown and any indication that trade strife is affecting companies’ bottom lines. On the trade front, Chinese state media reported face-to-face negotiations with the U.S. may resume soon, as Beijing considers a plan to boost American soybean purchases to sweeten a deal, people familiar with the matter said. It is nice to see that restarting, as I think it will provide plenty of room for both sides to get something and for the U.S. to avoid the worst case of tariffs on another $300 billion. The S&P 500 Index rose 0.3% to close at 2985. The Nasdaq Composite Index gained 0.7% and the Dow Jones Industrial Average less than 0.1%. Meanwhile in Europe, the Stoxx Europe 600 rose 0.1%. The MSCI Asia Pacific Index dropped 0.5% as tensions increased in Hong Kong.
Here is a summary of the main changes in F.X Markets:
The Bloomberg Dollar Spot Index rose 0.1%, the second consecutive gain.
The Euro was little changed at $1.1209, while the Japanese Yen weakened 0.2% to 107.88 per dollar.
The British Pound fell 0.2% to $1.2476 after a forecast showed Brexit may have already pushed the U.K. into a technical recession, and as Conservative Party members vote on new leadership.
The yield on 10-year Treasuries eased 1 basis point to 2.05%.
Core European Bonds rose led by Germany’s 10-year yield which dropped 2 basis points to -0.35%, the fourth straight decline.
Britain’s 10-year yield fell 3 basis points to 0.71%.
Oil rose again, posting its biggest gain in more than a week, after Iran’s seizure of a British tanker fanned concerns of a confrontation that could disrupt Middle East supplies. West Texas Intermediate rose 1.1% to $56.22 a barrel. Precious metals were quiet with Gold little changed at $1,425 an ounce.
This morning on the Economic Front we have the ECB Bank Lending Survey at 9.00 am and this is followed at 9.30 am by U.K MPC Minutes Report. The new PM will be announced at 11.45 am. Next we have the US House Price Index at 2.00 pm. Finally, at 3.00 pm we have New Home Sales, Richmond Fed Manufacturing Index and Consumer Confidence.
September S&P 500
The S&P closed 0.3% higher as the market regained 50% of Friday’s losses as we wait for the ECB rate decision on Thursday and the FOMC next week. I am still flat the S&P and today I will raise my buy level to 2970/2980 with a 2961 stop. I still do not want to be short the market at this time.
I am still long the Euro at 1.1220 from last Friday with the same 1.1185 stop. I will now lower my T/P level on this position to 1.1225. If I am stopped out of this trade I will again look to buy the Euro from 1.1090/1.1130 with a 1.1055 tight stop. If I am taken long a second time I will have a T/P level at 1.1170. I will also be a small seller on any rally higher to 1.1260/1.1300 with a 1.1345 stop. If I am taken short I will have a T/P level at 1.1230.
September Dollar Index
No Change as my only interest in buying the Dollar is on a dip lower to 95.90/96.30 with the same 95.55 stop.
The DAX continues to hold the key 12200 support area as the market waits for the key ECB Rate announcement on Thursday. Today I will raise my buy level to 12170/12230 with a higher 12115 stop. I still do not want to be short the DAX at this time.
As we wait for the confirmation of Boris Johnson as new Conservative leader and PM I am still flat the FTSE. I am reluctant to chase this market higher despite the Pound having a small sell-ff yesterday and I will leave my 7365/7405 buy level with a 7330 stop.
Dow Rolling Contract
Even though the Dow is ripe for a decline I still believe we will hold in until we get the FOMC Rate Cut next week. This view will hold as long as we do not close below the key 26850/26950 support area. Today I will raise my buy level to 26920/27070 with a 26820 stop.
I am still flat the NASDAQ which was the strongest of the US Indices yesterday helped by the rally in Apple Shares. The market has resistance from 7995/8045 and I will be a seller in this area with a 8090 tight stop.
I am still short the market at 173.40 with the same 173.20 T/P level. I will continue to look to add to this position at 173.90 and if this happens I will then raise my T/P level on this double position to 173.50. For now my stop will be unchanged at 174.20 and if any of the above levels are hit I will be back with a new update for my Platinum Members.
Gold Rolling Contract
I am still flat Gold. As I am back long Silver, I will now lower my Gold buy level to 1398/1406 with a lower 1391 stop.
Silver Rolling Contract
My latest 16.20 long Silver position worked well with the market trading higher to my 16.35 T/P level. Subsequently I emailed my Platinum Members to re-buy the market at a price of 16.19. This level has just been hit as I go to press. I will now raise my stop on this position to 15.85 with a T/P level at 16.39.