U.S. Equity Markets tumbled as Coronavirus cases rose, finishing the day lower, led by the Dow which closed with a loss of 2.29%. Coronavirus infections rose to new highs, as the daily total breached the 80,000 mark for the first time. The seven-day average hit a new high, prompting former FDA commission Scott Gottlieb to fuel these fears, saying that he expects the U.S. to face “exponential spread.” On the stimulus front, White House Economic Adviser Larry Kudlow said that talks would continue overnight, but sticking points remain. Later in the day, House Speaker Nancy Pelosi criticised the White House’s negotiations, adding that an agreement must be found “as soon as possible.” As for economic data, New Home Sales fell and missed estimates. This was the first sign of potential weakness in the housing market. The German DAX led the decline in European Indices, closing 3.4% in the red. Spain’s government announced new restrictions, including curfews and a ban on travel between certain regions, in an attempt to contain a resurgence in Coronavirus infections. But it was not the only country to do so… Italy’s government introduced new social-distancing measures, including closing bars and restaurants earlier, as well as shutting gyms and movie theatres, as COVID-19 cases continued to climb again. And economic data flashed a warnings signal. Germany’s IFO Business Confidence Index data for October fell more than expected, marking the first decline in six months, and signalling the regional rebound may be slowing. Elsewhere, Oil fell 3.21%, after OPEC warned that rising COVID-19 cases would hurt the demand recovery for crude oil, while Gold closed flat.

To mark my 2175th 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 6 points yesterday and is now ahead by 2414 points for October, having made 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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Equities

The S&P 500 closed 1.86% lower at a price of 3401.

The Dow Jones Industrial Average closed 650 points lower for a 2.29% loss at a price of 27,685.

The NASDAQ 100 closed 1.61% lower at a price of 11,504.

The Stoxx Europe 600 Index closed 1.5% lower.

The MSCI Asia Pacific Index fell 0.2%%.

Yesterday the Nikkei closed 0.1% lower at a price of 23,494.

Currencies

The Bloomberg Dollar Spot Index closed 0.3% higher.

The Euro closed 0.1% lower at $1.1809.

The British Pound closed 0.2% lower at $1.3019.

The Japanese Yen closed 0.3% lower at 104.89 per dollar.

Bonds

The yield on 10-year Treasuries closed four basis points lower at 0.80%.

Germany’s 10-year yield closed one basis point lower at -0.58%.

Britain’s 10-year yield closed one basis point lower at 0.27%.

Commodities

The Bloomberg Commodity Index closed 0.3% lower.

West Texas Intermediate closed 3.21% lower at $38.43 a barrel.

Gold closed flat at $1894 an ounce.

This morning on the Economic Front we have the ECB Bank Lending Survey and Money Supply at 10.00 am. This is followed at 12.30 pm by U.S Durable Goods Orders. At 1.00 pm we have the Housing Price Index. Finally, we have Consumer Confidence and the Richmond Fed Manufacturing Index at 2.00 pm.

December S&P 500

The S&P got slammed yesterday which I did not see coming, accelerating to a low at 3356 after the 50 Day Moving Average (3398) was broken. 92% of stocks comprising the Index closed the day lower despite the S&P rallying hard into the close (3392). Despite the huge loss since Friday, my S&P plan had worked well with the market trading lower to my 3415 buy level yesterday morning before thankfully rallying to my 3427 revised T/P level and I am still flat. I am still expecting the S&P to rally after the election (as was the case in 2016) and I am reluctant to chase the S&P lower despite the break and close below the 50-Day MA. Today, I will be a buyer from 3365/3380 with a wider 3349 ‘’Closing Stop’’.

EUR/USD

Shortly after I posted on Friday the Euro rallied to my 1.1845 T/P level on my latest 1.1820 long position. Subsequently I bought the Euro again yesterday at 1.1810 before selling this position for a small gain at 1.1822 and I am now flat. The Euro has strong support from 1.1745/1.1785 where I will be an aggressive buyer with a 1.1695 stop. If I am taken long I will have a T/P level at 1.1820.

December Dollar Index

No Change as I am still a seller from 93.30/93.80 with the same 94.25 stop. I will now raise my buy level to 92.30/92.70 with a higher 91.95 stop.

December DAX

The DAX opening hours are from 7.00 am to 9.00 pm. Outside these hours I do not trade the DAX as it is not a normal market. Yesterday the DAX opened below my buy range with a 2.7% decline and as a result I am still flat. After an initial rebound the DAX got slammed into the close, hitting a low at 12075. The DAX has support from 11950/12080 where I will be a small buyer with a 11865 stop. If I am taken long I will have a T/P level at 12145.

December FTSE

The FTSE just missed my 5725 buy level with a 5728 low print and I am still flat. The FTSE is oversold after last week’s sell-off and the market is telling you this. Today I will continue to be a buyer from 5680/5725 with the same 5625 stop.

Dow Rolling Contract

My Dow plan did not work well yesterday. After the 50 Day MA was broken we saw the Dow trading over 1000 points lower before a late rally saw the market finish with a decline of 650 points. Yesterday, saw the strongest selling pressure since late June. I bought the Dow at an average rate of 27960 before being stopped out of this position at 27745 and I am now flat. We have near-term support from 27200/27400 where I will be a buyer with a 27045 ‘’Closing Stop’’. I still do not want to be short the Dow at this time.

December NASDAQ

The NASDAQ traded the whole of my buy range for a 11475 average long position (low 11342) before rallying into the close to hit my 11502 revised T/P level and I am now flat. Today, I will again be a buyer from 11300/11400 with a lower 11195 stop. Just like the other Indices I still do not want to be short the NASDAQ at this time.

December BUND

Late Friday the Bund traded lower to my 175.00 buy level. Unfortunately, I covered this position too early at 175.07 and I am still flat. Today, I will be a small buyer from 174.35/174.75 with a 173.81 stop.

Gold Rolling Contract

No Change as I am still a buyer from 1866/1878 with the same 1859 tight stop. If I am taken long I will have a T/P level at 1886.

Silver Rolling Contract

My Silver plan worked well with the market trading lower to my 24.15 buy level before rallying to my revised 24.45 T/P level and I am still flat. Silver has support from 23.40/23.90 where I will be a buyer with a 22.95 stop.