U.S. Equity Markets opened the week on a high note, with both the S&P and Dow closing higher while the NASDAQ finished yesterday’s session with a loss of 0.48%. Manufacturing data were mixed. ISM Manufacturing PMI fell unexpectedly in April as New Orders and Employment dipped. But IHS Markit Manufacturing data rose, hitting the highest level in 11 years, though respondents voiced concerns over supply-chain issues. Infrastructure news was positive. The White House said it had invited Republicans to meet with President Joe Biden and begin negotiations over their competing infrastructure spending plans. And the Washington Post reported that Democrats were open to concessions to lower the price tag of Biden’s $2.3 trillion proposal. Earnings continue to be a tailwind for markets, with more than 86% of reporting S&P 500 companies beating estimates (a record high). European Markets closed higher. Economic data were positive. German Retail Sales data for March were stronger than anticipated, showing the strength of the consumer in Europe’s largest economy. IHS Eurozone Markit Manufacturing Purchasing Managers Index (“PMI”) also hit the highest level since 1997. There were also interesting central bank comments, as European Central Bank Vice President Luis de Guindos said it should start winding down economic support once the pace of vaccinations picks up. However, de Guindos said fiscal measures should remain to support the economy. This went against all comments from the central bank in recent weeks. In Asia, Stock markets in China and Japan are closed for holidays. South Korea’s export data for April were weaker than expected, but still hit the highest value on record for the month, as semiconductor demand remained strong. Markit Australia’s final Manufacturing PMI data for April rose versus the initial reading, marking the 11th straight month of expansion, and recording its highest level ever. Elsewhere, Oil closed 1.35% higher as positive economic data boosted the demand outlook for crude, while Gold rose 1.36% on Dollar weakness.

To mark my 2300th 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 63 points yesterday on the first trading session for May having closed April with a gain of 1244 points, having ended March with an impressive gain of 3769 points, having made 3286 points in February, 2077 points in January, 2273 points in December, 2025 points in November, 2779 points in October, 3042 points in September and 2383 points in August. 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 0.27% higher at a price of 4192.

The Dow Jones Industrial Average closed 238 points higher for a 0.70% gain at a price of 34,113.

The NASDAQ 100 closed 0.44% lower at a price of 13,799.

The Stoxx Europe 600 Index closed 0.4% higher.

Yesterday, the MSCI Asia Pacific Index rose 0.1%.

Yesterday, the Nikkei was closed having finished Friday at a price of 29,053.

Currencies

The Bloomberg Dollar Spot Index closed 0.2% higher

The Euro closed 0.3% lower at $1.2065.

The British Pound closed 0.1% higher at $1.3908.

The Japanese Yen closed 0.3% lower at 109.06 per dollar.

Bonds

Germany’s 10-year yield closed one basis points lower at -0.20%.

Britain’s 10-year yield closed four basis points higher at 0.84%.

US 10 Year Treasury closed four basis points lower at 1.60%.

Commodities

West Texas Intermediate crude closed 1.35% higher at $65.62 a barrel.

Gold closed 1.36% higher at $1,792.10 an ounce.

This morning on the Economic Front we have UK Mortgage Approvals, Money Supply and the Trade Balance at 9.30 am. This is followed by the U.S Trade Balance at 1.30 pm. Finally, we have ISM New York Business Conditions at 2.45 pm and Factory Orders at 3.00 pm.

June S&P 500

On Friday my S&P plan worked well with the market trading lower to my 4169 buy level before rallying to a rebound high at 4201 yesterday, thus enabling me to cover this position too early at 4175 and I am still flat. From yesterday’s high the S&P fell 20 Handles into the close as the NASDAQ moved into the red for the session. The S&P has support from 4148/4163 where I will again be a buyer with a 4135 ‘’Closing Stop’’. Meanwhile, I will continue to be a seller on any rally higher 4209/4225 with a 4236 ‘’Closing Stop’’.

EUR/USD

The Euro traded lower to my 1.2030 buy level on Friday before rallying to my revised 1.2060 T/P level as emailed to my Platinum Members yesterday and I am still flat. Today, I will again be a buyer on any dip lower to 1.1970/1.2020 with a tight 1.1935 stop. I still do not want to be short the Euro at this time.

June Dollar Index.

My latest long 90.50 Dollar position worked well with the market trading higher to my 90.80 T/P level on Friday and I am still flat. The Dollar has support from 90.15/90.55 where I will again be a buyer with a now lower 89.85 stop.

June DAX

No Change as my only interest in buying the DAX is still on a dip lower to 14980/15060 with the same 14925 stop. If I am taken long I will have a T/P level at 15105.

June FTSE

The FTSE traded in a narrow range before opening higher overnight after the long-weekend and I am still flat. I will now raise my buy level to 6840/6895 with a higher 6805 stop.

Dow Rolling Contract

My Dow plan worked well with the market trading lower to my 33830 buy level before rallying 400 points to yesterday’s high. Unfortunately, I covered this position too early late Friday at my revised 33870 T/P level as I wanted to be flat over the weekend. The Dow has strong support from 33720/33900 where I will again be a buyer with a 33585 ‘’Closing Stop’’. I still do not want to be short the Dow at this time.

June NASDAQ

After the NASDAQ traded lower on Friday to my 13830 buy level we rallied to my 13870 T/P level. Subsequently, I emailed my Platinum Members to buy the NASDAQ again yesterday at 13770 before the market again rallied to my 13813 revised T/P level and I am still flat. The NASDAQ price action is bearish despite the impressive earnings from tech stocks over the past few weeks. A market that cannot rally on ‘’Good News’’ needs to be wary. The NASDAQ has support below here from 13600/13680 where I will again be a buyer with a 13525 ‘’Closing Stop’’.

June BUND

Shortly after the Bund opened on Friday we rallied to my tight 170.10 T/P level on my 170.00 long position from last Thursday and I am still flat. The Bund has support from 168.90/169.50 where I will again be a buyer with a 168.45 stop. Despite the weak price action, I still do not want to be short the Bund at this time.

Gold Rolling Contract

Gold surged yesterday and I am still flat. I will now raise my buy level to 1755/1770 with a higher 1743 stop.

Silver Rolling Contract

I am still flat and I will now raise my buy level to 25.20/25.80 with a 24.85 tight stop. If I am taken long I will have a T/P level at 26.10.