U.S. Equity Markets bounced around once again in a quiet trading before closing lower. Optimism from President Joe Biden drove the gains in the early morning. Biden said he believes the U.S. will be able to administer 150 million coronavirus inoculations over the next 100 days versus his previous target of 100 million. He also said he is willing to negotiate his $1.9 trillion Coronavirus Aid Package to garner bipartisan support, but he’s hoping for an agreement in the next few weeks. But Senate Majority Leader Chuck Schumer said that Democrats could push through Biden’s Stimulus Bill without Republican support. In terms of economic data, Consumer Confidence rose in January, as people turned optimistic on the near-term economic outlook. European Markets closed higher after Monday’s decline. Italian Prime Minister Giuseppe Conte resigned his post amid calls to form a new government coalition with stronger support. The World Health Organization said COVID-19 vaccinations would not achieve a level that stops ongoing infections for some time. French Finance Minister Bruno Le Maire said the country would miss its economic growth estimates for 2021 if it goes into lockdown once more. Banks rallied after UBS reported stronger-than-expected Quarterly Profits while announcing a $4.5 billion stock buyback and proposing a dividend. Elsewhere, Bitcoin sold off again closing 4.46% lower while Oil and Gold were essentially flat.
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The S&P 500 closed 0.15% lower at a price of 3849.
The Dow Jones Industrial Average closed 23 points lower for a 0.07% loss at a price of 30,937.
The NASDAQ 100 closed FLAT at a price of 13490.
The Stoxx Europe 600 Index closed 0.9% higher.
The MSCI Asia Pacific Index fell 0.3%.
Yesterday, the Nikkei closed 0.96% lower at a price of 28,546.
The Bloomberg Dollar Spot Index closed 0.2% lower.
The Euro closed 0.2% higher at $1.2162.
The British Pound closed 0.5% higher at $1.3740.
The Japanese Yen closed 0.2% higher at 103.60 per dollar.
Germany’s 10-year yield closed two basis points higher at -0.53%.
Britain’s 10-year yield closed one basis points higher at 0.27%.
US 10 Year Treasury closed unchanged at 1.03%.
West Texas Intermediate crude closed 0.51% lower at $52.30 a barrel.
Gold closed 0.22% lower at $1,844.20 an ounce.
This morning on the Economic Front we have German GFK Consumer Confidence at 7.00 am. This is followed by U.S MBA Mortgage Applications at 12.00 pm and Durable Goods Orders at 1.30 pm. Finally we have the FOMC Statement at 7.00 pm followed by the Powell Press Conference at 7.30 pm
March S&P 500
Most of yesterday’s price action took place in the morning with the S&P trading lower to my 3825 buy level before rallying to my 3835 T/P level and I am now flat. Positive vaccine news lifted the S&P into the close. I will continue to be a small seller on any further rally to 3868/3882 with a 3895 stop. Yet again the 3800/3820 support area has held the S&P despite the Dow trading heavy. I will continue to be a buyer on any dip lower to 3808/3823 with a 3796 ‘’Closing Stop’’.
My Euro plan worked well with the market trading lower to my 1.2110 buy level before rallying to my 1.2140 T/P level and I am now flat. Today, I will again be a buyer from 1.2080/1.2120 with a 1.2045 stop.
March Dollar Index
Late yesterday the Dollar traded lower to my 90.10 buy level. I am still long and I will now lower my T/P level on this position to 90.35. Meanwhile, I will raise my stop on this position to 89.65. If any of the above levels are hit I will be back with a new update for my Platinum Members.
Shortly after the DAX opened yesterday morning the market rallied to my 13745 T/P level on Monday’s 13715 average long position and I am now flat. As I have said countless times over the past few months Central Banks will not allow equity markets to fall as the DAX rallied to close at 13880 last night. I will continue to buy the dip as long as we do not break and close below 13500. Today, my buy level will be from 13650/13720 with a 13585 stop.
The FTSE continues to struggle to move higher, again trading sideways and I am still flat. I will lower my buy level slightly to 6480/6540 with a lower 6435 stop. If I am taken long I will have a T/P level at 6578.
Dow Rolling Contract
Frustratingly, the Dow missed my initial 30730 buy level before rallying 250 points and I am still flat. I am reluctant to chase the price of the Dow higher and therefore I will leave my 30550/30730 buy range unchanged with the same 30395 tight stop. Remember a break and close below 30600 is bearish.
Shortly after the close the NASDAQ rallied to my 13580 sell level. I am still short and I will add to this trade on any further move higher to 13660 with the same 13765 ‘’Closing Stop’’. I will now raise my T/P level on this short position to 13520 and if any of the above levels are hit I will be back with a new update for my Platinum Members.
I am still flat the Bund as the market fell shy of my buy level. I will now lower my buy level slightly to 176.65/177.10 with a lower 176.35 stop.
Gold Rolling Contract
Gold again traded in a narrow range and I am still flat. I do not trust the recent small rally in Gold. Therefore, I will leave my 1812/1824 buy level unchanged with the same 1799 stop.
Silver Rolling Contract
My Silver plan worked well with the market trading lower to my 25.25 buy level before rallying to my 25.55 T/P level and I am still flat. Today, I will again be a small buyer from 24.20/24.80 with a 23.85 stop. If I am taken long I will have a T/P level at 25.15.