U.S. Equity Markets reversed 50% of Friday’s declines, as health officials and Governments tried to play down the threat of Omicron. The NDX led the rally, closing higher by 2.33%. The White House said it would join other nations banning travellers from eight southern African nations in an attempt to limit the spread of the COVID Omicron variant. But Wall Street thinks (for now at least) that the Omicron variant won’t be as bad as initially feared. President Joe Biden said the U.S. will not need a new round of lockdowns to fight the newly discovered variant, meaning economic activity can continue as is. That helped markets bounce back in yesterday’s session. In terms of economic data, Pending Home Sales surged, beating estimates. This puts the U.S. housing market on the best yearly sales pace in 15 years, according to the National Association of Realtors. That is another sign of strength for the housing market. Within the S&P 500, all 11 sectors finished higher. European Markets closed higher. The British government called for a Group of Seven meeting of health ministers to discuss the new COVID variant and steps that can be taken to prevent its spread. The Organisation of Petroleum Exporting Countries (“OPEC”) and its non-member allies delayed an output meeting until later this week to assess the impact of the new COVID variant. European Central Bank Governing Council member Fabio Panetta said it has no desire to raise interest rates, as it would cause more harm than good. In Asia, China’s National Development and Reform Commission said it had summoned coal producers and miners to discuss pricing improvements, following recent increases. Japan’s Ministry of Economy, Trade, and Industry’s October Retail Sales data was stronger than expected, as spending increased on fuel and clothing. China’s industrial profit figures for October rose from September, gaining for the second straight month, as Beijing said price-stability policies were taking hold. Taiwan’s Ministry of National Defense said 27 airplanes from China entered its southwest air defense identification zone in response to a visit from a U.S. politician. Elsewhere, Bitcoin rose 7.42% along with risk assets, while Oil closed 1.50% higher.
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For anyone following my Platinum Service it made 135 points yesterday, and is now ahead by 1503 points for November, after ending October with a gain of 1028 points, 2866 points in September, 1543 points in August, and 996 points in July. The Platinum Service made 1366 points in June, 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, and 2273 points last December. 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 1.32% higher at a price of 4655.
The Dow Jones Industrial Average closed 236 points higher for a 0.68% gain at a price of 35,135.
The NASDAQ 100 closed 2.33% higher at a price of 16,399.
The Stoxx Europe 600 Index closed 1.4% higher.
Yesterday, the MSCI Asia Pacific Index0.8%.
Yesterday, the Nikkei closed 1.63% lower at a price of 28,283.
The Bloomberg Dollar Spot Index closed 0.3% higher.
The Euro closed 0.2% lower at $1.1278.
The British Pound closed 0.2% lower at 1.3298.
The Japanese Yen fell 0.3%, closing at $113.65.
Germany’s 10-year yield closed three basis points higher at -0.31%.
Britain’s 10-year yield closed five basis points higher at 0.88%.
US 10 Year Treasury closed four basis points higher at 1.52%.
West Texas Intermediate crude closed 1.50% lower at $69.55 a barrel.
Gold closed 0.19% lower at $1,784.10 an ounce.
This morning on the Economic Front we have German Unemployment at 8.55 am, followed by Euro-Zone CPI at 10.00 am. Next, we have U.S. Housing Price Index and the Chicago Purchasing Managers’ Index at 2.00 pm and 2.45 pm respectively. This is followed by Consumer Sentiment at 3.00 pm. Finally, Fed Chair Powell will speak at 3.00 pm and Fed Member Clarida at 6.00 pm
December S&P 500
The S&P recovered 52% of Friday’s sell-off as expected given the large ‘’Open Gap’’ from last Thursday of 4710. This move higher saw my 4658 sell level executed. I am still short with a now higher 4645 T/P level. I will add to this position at a higher level of 4678 with a now 4691 ”Closing Stop”. While, it is still possible for the S&P to completely close the Gap from last Thursday’s Chicago close, I will be a seller into this rally as sentiment is still compatible with a rally that is at or near an end given the level of complacency in the market. It is no coincidence that the CEO of Microsoft sold 50% of his holding over the past few days while of course we know that Elon Musk sold $10bn of his Tesla Holdings at the same time. The S&P has support from 4595/4610 where I will be a buyer with a 4683 stop
The Euro traded in a narrow range since I posted early yesterday morning and I am still flat. I will continue to be a buyer on any dip lower to 1.1190/1.1240 with the same 1.1145 stop. The Euro has resistance from 1.1335/1.1435 where I will be a small seller with a 1.1481 stop.
December Dollar Index
No Change. I am still a small seller from 96.50/97.00 with the same 97.35 tight stop. I still do not want to be long the Dollar at this time given Friday’s possible trend reversal.
Although the DAX closed higher, higher than expected German Inflation capped the DAX’s move higher yesterday. I am still flat as the market never came close to my buy range. I will now raise my buy level to 14980/15130 with a higher 14875 Stop. I still do not want to be short the DAX at this time.
The FTSE rallied small yesterday and I am still flat. I will now raise my buy level to 6990/7050 with a higher 6935 stop. I still do not want to be short the FTSE at this time.
Dow Rolling Contract
My Dow plan worked well with the market trading higher to my 35280 sell level before falling over 350 points. This move lower saw my 35145 T/P level filled and I am still flat. So far the 50 Day MA is holding (35280) while both the S&P and NDX continue to trade above their respective 50-Day Moving Averages. Today, I will again be a seller from 35380/35540 with a tight 35685 ‘’Closing Price’’ stop. I will now raise my buy level higher to 34780/34930 with a wider 34615 ‘’Closing Stop’’.
The NDX reversed most of Friday’s sell off, closing higher by almost 2.5%. This move higher saw the whole of my sell range executed and I am now short at an average rate of 16265 with the same 16405 ‘’Closing Stop’’. Yet again the McClellan Oscillator proved what an excellent trading signal it is as you just cannot be short any of the U.S. Indexes when the MO is -230 or lower. I will now raise my T/P level on this position to 16220.
The Bund missed yesterday’s buy level before trading lower and I am still flat. I will now lower my sell level to 172.60/173.20 with a tight 173.61 stop.
Gold Rolling Contract
Gold traded in a narrow range yesterday and I am still flat. As I am still long Silver, I will now lower my Gold buy level to 1748/1763 with a lower 1735 stop.
Silver Rolling Contract
No Change. I am still long at a price of 23.05 with the same 23.40 T/P level. I will add to this trade at 22.45 while leaving my 21.95 stop unchanged.