U.S. stocks ended their longest winning streak in two months as investors weighed the outlook for trade talks and interest rate policy. Treasuries were steady along with the US Dollar. The S&P 500 Index closed slightly lower as a drop in industrial companies weighed on the gauge, which had climbed more than 5% over the previous five sessions. U.S. President Donald Trump’s threat to raise duties again on China if President Xi Jinping doesn’t meet with him at this month’s Group of 20 summit overshadowed some of the optimism generated by last week’s deal to avoid tariffs on Mexican imports.
To mark my 1850th 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 firstname.lastname@example.org for details
For anyone following my Platinum Service it made 162 points yesterday and is now ahead by 393 points for June, having made 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
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
Sentiment is still cautious among stock buyers after a horrific month of May for global equity markets, with investors looking to the G-20 summit in Japan as the next possible site for a breakthrough in the trade dispute between the world’s two largest economies. As traders have added bets on lower U.S. Interest Rates, Trump stepped up his criticism of Fed policy in tweets Tuesday, calling borrowing costs “way too high” amid “VERY LOW INFLATION.” The S&P 500 Index fell 0.03% to close at 2886 at the close of trading in New York. Elsewhere, mining and automobile shares pulled the Stoxx Europe 600 Index higher as the main Euro-Zone Index increased 0.7%, its sixth gain in seven sessions. The Shanghai Composite Index jumped 2.6% on the biggest surge in more than a month.
Here is a summary of the main Changes in the FX Markets:
The Bloomberg Dollar Spot Index was little changed.
The Japanese Yen was little changed at 108.5 per dollar.
The onshore yuan climbed 0.3%, the biggest increase in almost eight weeks.
The MSCI Emerging Markets Currency Index gained 0.3%.
Mexico’s Peso added to gains after posting its best day in almost a year following the country’s accord with the U.S. late Friday.
Finally the Euro closed unchanged at $1.1319
Despite the two-way volatility in Equity Markets, the Bond markets were subdued with the yield on 10-year Treasuries falling one basis point to 2.14%. In Europe, Germany’s 10-year yield fell one basis point to -0.23%. and the U.K.’s 10-year yield rose two basis points to 0.86%
Gold slipped 0.1% to $1,326.98 an ounce after hitting an intra-day low of $1320, while West Texas Intermediate crude rose 0.1% $53.32 a barrel.
This morning on the Economic Front we have a speech from ECB President Dragi at 9.15 am. This is followed at 12.00 pm by US MBA Mortgage Applications and CPI which will be released at 1.30 pm. Finally the ECB’s Coeure speaks at 3.15 pm.
June S&P 500
My S&P plan worked well with the market trading higher to my 2908 sell level before falling 30 Handles. This move lower saw my 2900 T/P level executed and I am still flat. Today I will leave my 2862/2872 buy level unchanged with the same 2853 stop. I will again look to sell the S&P on any rally higher to 2908/2918 with a 2925 stop.
The boring sideways action in the Euro continues and today I will continue to be a seller from 1.1355/1.1395 with a 1.1430 stop. I still do not want to be long the Euro at this time.
June Dollar Index
No Change as I am still a seller on any rally higher to 97.25/97.65 with the same 97.95 stop.
My DAX plan worked well with the market trading higher to my 12205 sell level before falling nearly 80 points. In anticipation of the S&P and Dow trading higher to my sell ranges I covered this DAX position for a small gain at 12193 and I am still flat. Today I will again look to sell the DAX from 12260/12340 with a 12385 tight stop.
The FTSE also hit my sell range with a 7420 high print before falling 60 points. As I was already short the other Indices I did not sell the FTSE myself. If you did sell the market you should have made some nice points. Today I will again look to sell the market on any further rally to 7435/7475 with a 7510 stop.
Dow Rolling Contract
My Dow plan worked well with the market trading higher to my 26240 sell level before falling 250 points. This move lower enabled me to cover this short position at my 26170 T/P level and I am now flat. Today I will leave my 25700/25860 buy level unchanged with the same 25630 stop. As I have sell levels in the S&P, DAX and FTSE I will not have a sell level in the Dow today.
No Change as I am still a buyer on any dip lower to 7410/7460 with the same 7355 stop. Despite the aggressive rally in the NASDAQ off last week’s 6940 low I still do not want to be short the market at this time.
I am still flat the Bund and today I will now raise my sell level to 171.75/172.05 with a 172.35 stop.
Gold Rolling Contract
After eight consecutive updays, Gold has now closed lower for the second straight session and I am still flat. Today I will leave my 1305/1314 buy level unchanged with the same 1298 stop.
Silver Rolling Contract
I am still long at 14.78 with the same 14.39 stop and 14.93 T/P level.