U.S Indices closed higher, boosted by strong economic data, as they rebounded following a bad week and a down October. The ISM Manufacturing Index came in above estimates in October, and hit the highest level since September 2018. And IHS Markit Manufacturing PMI rose from the initial reading. Both of these data points, signal a continued recovery in the U.S. economy, especially following last week’s release of record Third-Quarter Gross Domestic Product (“GDP”) growth. There are still plenty of catalysts throughout the week. Today’s Presidential Election (and the potential lack of decisive results) is one, as is the Federal Reserve’s policy meeting later this week. The Dow led yesterday’s rally, closing 1.6% higher. European Indices also closed higher despite most of the EU in lockdown. The British government announced a new monthlong lockdown that will include remaining at home and the closure of bars and restaurants in an effort to contain the Coronavirus spread. Austria and Portugal announced additional COVID-19 related lockdowns that will allow schools and business to remain open to better contain the outbreak. Markit Euro-Zone’s final Manufacturing Purchasing Managers’ Index (“PMI”) data for October were better than expected, signalling the economy is weathering the storm. COVID-19 vaccine candidates from AstraZeneca and Pfizer were said to be under accelerated reviews in the U.K., suggesting one could be approved for use soon. Elsewhere, Oil closed 3.6% higher as strong manufacturing data signalled positive demand for crude, while Gold finished 0.86% higher ahead of policy decisions from the Federal Reserve and Bank of England.

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 137 points on the first trading session for November having made 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

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 1.23% higher at a price of 3310.

The Dow Jones Industrial Average closed 423 points higher for a 1.6% gain at a price of 26,925.

The NASDAQ 100 closed 0.29% higher at a price of 11,084.

The Stoxx Europe 600 Index closed 1.2% higher.

The MSCI Asia Pacific Index fell 0.5%%.

Yesterday the Nikkei closed 1.39% higher at a price of 23,295.

Currencies

The Bloomberg Dollar Spot Index closed 0.1% higher.

The Euro closed 0.1% lower at $1.1635.

The British Pound closed 0.2% lower at $1.2919.

The Japanese Yen closed 0.1% lower at 104.82 per dollar.

Bonds

The yield on 10-year Treasuries closed four basis points lower at 0.84%.

Germany’s 10-year yield closed two basis points lower at -0.64%.

Britain’s 10-year yield closed four basis points lower at 0.23%.

Commodities

The Bloomberg Commodity Index closed 1.2% higher.

West Texas Intermediate closed 1.5% higher at $37.05 a barrel.

Gold closed 0.86% higher at $1890 an ounce.

This morning on the Economic Front we have no data pf note from either the UK or the Euro-Zone. At 2.45 pm we have ISM New York Business Conditions. Finally, at 3.00 pm we have Factory Orders.

December S&P 500

My S&P plan worked well with the market rallying to my 3312 sell level before selling off to my 3301 T/P level and I am now flat. The VIX gave a rare buy signal late Friday, buy closing back inside its Daily Bollinger Band. The same signal triggered in September and led to a 300 Handle Rally. I know that with everything going on both politically and in relation to the escalation of Covid that traders would be scared in buying the S&P. However, the increase in lockdown will lead to more stimulus across the Globe. The Cash S&P has two large ”Open Gaps” above the market at 3390 (Oct 27) and 3465 (Oct 23). I would expect that the first Gap will get filled over the coming days and then we will see what direction the market takes after today’s election. I will move my buy level higher to 3270/3285 with a 3254 stop. I no longer want to be short the S&P at this time.

EUR/USD

My Euro plan worked well with the market trading lower to my 1.1625 buy level before rallying to my 1.1652 revised T/P level. Subsequently I emailed my Platinum Members to buy the Euro again at 1.1625. I am still long with a 1.1655 T/P level. I will now raise my stop on this position to 1.1565.

December Dollar Index

No Change as I am still a buyer from 93.20/93.70 with a 92.85 stop. If I am taken long I will have a T/P level at 94.05.

December DAX

The DAX never came close to my buy level before rallying and I am still flat. I will now raise my buy level to 11550/11630 with a 11465 stop.

December FTSE

I am still flat and I will now raise my buy level to 5590/5640 with a 5545 stop.

Dow Rolling Contract

Thankfully we had no sell level in the Dow with the market closing higher by 423 points. The Dow has support from 26550/26750. I will raise my buy level to this area with a 26375 wider stop. If I am taken long I will have a T/P level at 26925.

December NASDAQ

The NASDAQ just missed my sell level before selling off into the close and I am still flat. I will now raise my sell level to 11320/11470 with a 11605 higher stop. If I am taken short I will have a T/P level at 11245.

December BUND

I am still flat the Bund which traded in a narrow range yesterday. The Bund has resistance from 176.60/177.10 where I will be a seller with a 177.45 stop.

Gold Rolling Contract

No Change as I am still a buyer from 1855/1871 with a higher 1843 stop.

Silver Rolling Contract

I am still flat and I will now raise my buy level to 23.10/23.70 with a higher 22.65 stop. If I am taken long I will have a T/P level at 24.15.