The Nasdaq Composite climbed to a fresh record on the back of gains in mega-cap tech companies even as the Dow Jones Industrial Average sank following disappointing reports from retailers. Gains in Facebook, Broadcom and Tesla lifted the Nasdaq while Home Depot was the biggest drag on the Dow after the company cut its annual forecast for the second time this year. Investors also mulled the implications of a report that U.S. and Chinese negotiators may link the size of tariff rollbacks to terms set during talks in May. Ten-year Treasury yields dipped below 1.8%, while oil tumbled for a second day. The US Dollar edged higher against its major peers after President Donald Trump said he “protested” U.S. interest rates that he considers too high in a meeting with Federal Reserve Chairman Jerome Powell at the White House. The Fed said Powell’s remarks were “consistent” with his recent public comments. Meanwhile, Labour Leader Jeremy Corbyn defied his negative ratings to draw level with Prime Minister Boris Johnson in a crucial television debate ahead of the U.K.’s general election. The opposition leader, who’s been lagging behind Johnson in personal approval scores, effectively tied with the premier in a snap poll on which candidate won the clash last night. The Pound remained lower after the survey.
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For anyone following my Platinum Service it made 57 points yesterday and is now ahead by 459 points for November, having made 1649 points in October, 1620 points in September, 2387 points in August, 1153 points in July, 1346 points in June,1722 points in May, 955 points in April and 1027 points in March. Since I started this New Platinum Service in June 2015 it has averaged a monthly gain of over 1600 points
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Investors remain sensitive to any signs of whether U.S. consumers can continue supporting economic growth and are looking for developments on trade after months of closely watched negotiations. One challenge for stocks across developed markets lies in the MSCI World Index’s 21% advance this year, which has propelled the benchmark to its highest estimated price-earnings ratio since 2017.
The S&P 500 Index slipped less than 0.1% to close at 3120.
The Dow Jones Industrial Average fell 100 points to close at a price of 27,934 while the NASDAQ Composite gained 0.2% for a new closing high.
The Stoxx Europe 600 Index fell 0.1%
The MSCI Emerging Market Index gained 0.4%.
Here is a summary of the main Changes in F.X. Markets:
The Bloomberg Dollar Spot Index rose less than 0.1%.
The Pound fell 0.2% to $1.2926.
The Euro increased less than 0.1% to $1.1077.
The Japanese Yen gained 0.1% to 108.55 per dollar.
The yield on 10-year Treasuries dipped three basis points to 1.78%.
Germany’s 10-year yield was little changed at -0.34%.
Australia’s 10-year yield declined four basis points to 1.13%.
West Texas Intermediate crude declined 3.2% to $55.25 a barrel.
Gold was little changed at $1,472.17 an ounce.
This morning on the Economic Front we already had the release of German PPI which fell 0.2% versus 0.0% expected. At 9.00 am we have a Euro-Zone Financial Stability Review and this is followed at 12.00 pm by U.S. MBA Mortgage Applications. Finally, at 1.30 pm we have Canadian CPI followed by the FOMC Minutes at 7.00 pm.
December S&P 500
Finally, we saw a small in US Indices yesterday with the S&P having made a high of 3131.50 before falling to an overnight low of 3108. This late move lower saw the S&P hit my 3112 T/P level on my 3113.50 average short position from last Monday and I am now flat. I am not looking for a major sell-off in the market especially as we are near what is traditionally the strongest part of year for US Equity Markets as we have the Thanksgiving Holiday next Thursday. The S&P is overbought and due a further correction and if we get this move lower I will be an aggressive buyer from 3055/3065 with a 3043 stop. Internally the market is weak as shown by the VIX closing another 3% higher, while the McClellan Oscillator weakened further to close at -51 last night. I will also be a seller on any further rally to 3122/3135 with a 3145 stop.
I am still flat the Euro and ahead of the FOMC Minutes this evening I will leave my 1.1000/1.1040 buy level unchanged with the same 1.0965 stop. I still do not want to be short the Euro at this time as I look for the market to trade back above 1.12 over the coming days.
December Dollar Index
I am still flat the Dollar as I continue to be a seller from 97.95/98.35 with a tight 98.65 stop.
The DAX had a strong Key Day Reversal yesterday after the market made a high at 13380 before falling 200 points into the close. Earlier this morning the DAX traded lower to my 13140 buy level before bouncing to my revised 13162 T/P level as emailed earlier to my Platinum Members and I am now flat. Today I will be a buyer on any further dip lower to 13000/13060 with a 12945 stop. If I am taken long I will have a T/P level at 13095.
I am still flat the FTSE as the UK Election finally comes to life after last night’s Leaders’ Debate. Today I will lower my buy level to 7190/7230 with a lower 7155 tight stop.
Dow Rolling Contract
Frustratingly the Dow missed my 28160 sell level by three points as the market made a high of 28157 shortly after I posted before getting hit hard after Home Depot cut its annual forecast and I am still flat. Today I will lower my sell level slightly to 27995/28145 with a lower 28225 stop. If the Dow gets hit hard over the coming days I will be an aggressive buyer from 27320/27470 with a 27195 stop.
My NASDAQ plan worked well with the market trading higher to my 8370 sell level before falling 90 points. Unfortunately as I was still offside on my short S&P position I covered this trade at my revised 8350 T/P level and I am now flat. Today I will again look to sell the market on any further rally to 8345/8385 with a 8420 stop.
The BUND just missed my 170.40 buy level before rallying as expected to currently trade at 171.50 as I go to press. I will now raise my buy level to 170.70/171.10 with a higher 170.35 tight stop.
Gold Rolling Contract
A combination of a weaker US Dollar and lower equity markets sees Gold opening higher in London this morning at 1478. I am still flat and I will now raise my buy level to 1458/1468 with a 1451 stop.
Silver Rolling Contract
Frustratingly Silver again just missed my buy level yesterday and I am still flat. I am reluctant to chase this market higher as I was not looking for a move above 17.20. Therefore I will leave my 16.45/16.85 buy level unchanged with the same 16.10 stop.