U.S. Equities fell as investors took a cautious approach to a week full of central bank activity. Treasuries edged lower and Gold retreated. The S&P 500 slipped for a second day after Friday’s blow-out Jobs Report altered market calculus for Federal Reserve rate cuts. Tech and health-care shares led decliners, with Apple Inc. falling 2.1% after a downgrade. U.S.-listed shares of BASF SE tumbled more than 5% after the German company cut its forecast. Shorter-term Treasuries fell and Gold slipped for a third day, while the US Dollar edged higher versus major peers. The main focus for markets this week looks to be Fed Chairman Jerome Powell, who will testify in Congress just days after the latest Payroll Report signalled that the American economy remains on track. U.S. stocks hit a record last week and a bond rally took yields to multiyear lows amid expectations the Fed will lower interest rates by at least a quarter of a percentage point at its July meeting.
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 bryan@tradernoblecom for details
For anyone following my Platinum Service it was flat yesterday and is still ahead by 289 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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Deutsche Bank AG’s massive reorganisation will leave thousands of finance employees out of work. And with firms throughout the industry running lean, they won’t all find jobs easily. The German lender’s sweeping turnaround plan, including an exit from the equities sales and trading business, will slash Deutsche Bank’s workforce by about 18,000 employees globally. Workers from Sydney to London to New York received the details of their exit packages Monday — and were left pondering their next move. The S&P 500 Index decreased 0.5% closing at 2977. The Nasdaq 100 lost 0.7% and the Dow Jones Industrial Average fell 0.4%. The Stoxx Europe 600 Index slipped, with Deutsche Bank AG surrendering earlier gains as traders weighed a plan to cut its workforce by one-fifth. The Stoxx Europe 600 Index declined 0.1%. Meanwhile the DAX Index fared better closing only with a loss of 0.2% as the market so far holds the key 12400 support area. The MSCI Emerging Market Index fell 1.3%, the biggest fall in more than six weeks.
Here is a summary of the main changes in F.X. Markets:
The Bloomberg Dollar Spot Index gained 0.1%.
The Euro fell 0.1% to $1.1218, the weakest in almost three weeks.
The Japanese yen decreased 0.2% to 108.672 per dollar, the weakest in more than five weeks.
The Turkish lira declined 1.9% to 5.7392 per dollar, the biggest decrease in two months.
Despite the weaker Equity Markets, the yield on 10-year Treasuries rose more than one basis point to 2.05%. The two-year rate rose three basis points to 1.89%, while 30-year yields fell two basis points to 2.53%. In Europe, Germany’s 10-year yield was flat at -0.366%. Greek bonds rose amid hope a new government elected over the weekend will prove to be market-friendly.
West Texas Intermediate crude was flat near $57.50 a barrel.
Gold futures slipped 0.4% to $1,394.80 an ounce, its third consecutive trading loss.
This morning on the Economic Front we have no data of note from either the Euro-Zone or the U.K. The only data of note due from the U.S is the JOLTS Job Openings at 3.00 pm. However, we have a clatter of Fed speakers starting with Chair Powell at 1.45 pm, followed by Bullard at 3.10 pm, Quarles at 7.00 pm and Bostic at 7.05 pm.
September S&P 500
It took a while but finally overnight the S&P traded lower to my 2968 buy level. I will add to this position on any further move lower to 2958 with a now lower and tight 2952 stop. I will also lower my T/P level on this position to 2974 and if any of the above levels are hit I will be back with a new update for my Platinum Members.
I am still long the Euro from last Friday at a price of 1.1225. I will leave my stop unchanged at 1.1185 while now lowering my T/P level to 1.1235. If any of the above levels are hit I will be back with a new update for my Platinum Members.
September Dollar Index
No Change as I am still a buyer on any dip lower to 95.90/96.30 with the same 95.55 stop.
As mentioned in my Economic Commentary above, the DAX held in better than the other European Indices yesterday with the market needing to break and close below 12340/12400 in order to see a more sustained sell-off. I will now lower my buy level to this area with a 12290 tight stop.
Frustratingly, the FTSE just missed my 7515 sell level by three points before spending the rest of the session on the defensive. Today I will lower my sell level slightly to 7505/7545 with a 7575 stop. Despite the weaker Pound I still do not want to be long the market at this time.
Dow Rolling Contract
Overnight the Dow traded lower to my 26680 buy level. I am still long in small size and I will look to add to this position on any further move lower to 26540 with the same 26480 stop. I will also lower my T/P level on this existing long position to 26740.
The NASDAQ was the weakest of the US Indices yesterday with the market never coming close to my sell level and I am still flat. The market has good support from 7670/7730 and I will be a buyer in this area with a 7625 stop.
No Change as I am still a small seller from 173.90/174.30 with the same 174.70 stop.
Gold Rolling Contract
Gold just missed my buy level overnight and I am still flat. As I am still long Silver I will now lower my buy level to 1373/1383 with a 1365 stop. With a stronger US Dollar it is difficult to see much of a rally in Gold at this time.
Silver Rolling Contract
I am still long Silver from late Friday at 14.95 with the same 14.75 stop. I will now lower my T/P level on this position to 15.05.