U.S. Equity Markets were mixed for most of the day, before selling off into the close, finishing the day lower, led by the Dow which closed -0.80%. Treasury Secretary Steven Mnuchin and Speaker of the House Nancy Pelosi failed to resolve differences on stimulus legislation during a call Monday, according to Pelosi’s office. Later in the day, a White House spokeswoman confirmed that there was little chance of a deal getting done before next week’s election. On the vaccine front, Pfizer said it is not quite ready to publish late-stage data on its COVID-19 vaccine candidate. And Eli Lilly announced that it is ending the hospital study for its experimental antibody therapy, signalling the drugs may only be effective when given early during the infection. European Indices also closed lower led by France and Spain with both falling by 2%. The World Health Organization said Europe is falling behind in its fight against the COVID-19 outbreak and some “serious acceleration” will be needed to regain control. Following new restrictions in Spain and Italy, the German and French governments are said to be reviewing options to reimpose more strict lockdown measures in an effort to contain the Coronavirus resurgence. Volkswagen’s CEO said that the auto industry no longer needs stimulus, signalling a strong rebound from earlier in the year. French Producer Price Index data for September rose versus levels from August, meaning demand for raw materials used in finished goods is picking up. Elsewhere, Oil closed 2.23% higher after the Saudi Energy Minister said that the worst was over for the Oil market, while Bitcoin rose 4.63% after JPMorgan said that the cryptocurrency has “considerable upside.”
To mark my 2175th 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 email@example.com for details
For anyone following my Platinum Service it made 50 points yesterday and is now ahead by 2454 points for October, having made 3042 points in September, 2383 points in August, 3128 points in July, 2580 points in June, 2456 points in May, 4773 points in April, an incredible 9264 points in March, 2223 points in February and 2142 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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The S&P 500 closed 0.3% lower at a price of 3390.
The Dow Jones Industrial Average closed 222 points lower for a 0.80% loss at a price of 27,463.
The NASDAQ 100 closed 0.82% higher at a price of 11,598.
The Stoxx Europe 600 Index closed 0.9% lower.
The MSCI Asia Pacific Index fell 0.2%%.
Yesterday the Nikkei closed 0.04% lower at a price of 23,485.
The Bloomberg Dollar Spot Index closed 0.1% higher.
The Euro closed 0.1% lower at $1.1801.
The British Pound closed 0.2% higher at $1.3049.
The Japanese Yen closed 0.3% higher at 104.45 per dollar.
The yield on 10-year Treasuries closed four basis points lower at 0.76%.
Germany’s 10-year yield closed four basis points lower at -0.62%.
Britain’s 10-year yield closed three basis points lower at 0.24%.
The Bloomberg Commodity Index closed 0.3% lower.
West Texas Intermediate closed 2.23% higher at $39.57 a barrel.
Gold closed 0.3% higher at $1904 an ounce.
This morning on the Economic Front we have German Import Price Index at 7.00 am. This is followed at 11.00 am by U.S MBA Mortgage Applications. Finally, we have Wholesale Inventories and the Trade Balance at 12.30 pm.
December S&P 500
The S&P traded in a narrow range around it’s 50 Day Moving Average before a late sell-off after the close sees the S&P trading at 3365 as I go to press. This move lower has me long at 3378. I will add to this trade at a price of 3358 as emailed earlier to my Platinum Members and this has now been filled for an average long position at 3368. I will now lower my stop to 3343. I will lower my T/P level to 3378 and if any of the above levels are hit I will be back with a new update for my Platinum Members.
News that both France and Germany are considering a two-week lock-down similar to Ireland saw the Euro trade lower after the close to my 1.1785 buy level. I will add to this trade at 1.1735 with the same 1.1695 stop. Meanwhile, I will also lower my T/P level on this position to 1.1810.
December Dollar Index
I am still flat as the Dollar just missed my 92.70 buy level with a 92.73 low print. I will now raise my buy level to 92.40/92.80 with a 91.95 stop. I will also raise my sell level to 93.50/94.00 with a higher 94.45 stop.
My DAX plan worked well with the market trading lower to my 12080 buy level before rallying to my 12130 revised T/P level and I am now flat. The DAX is oversold after falling over 1300 points in the last two weeks. Germany will provide more stimulus and this will also support the market. Today, my buy level will be from 11730/11830 with a 11635 stop.
Late yesterday the FTSE traded the whole of my buy range for a now 5700 average long position. I am still long with the same 5625 stop. I will now lower my T/P level to 5725. If I am stopped out of this position I will be an aggressive buyer from 5550/5590 with a wider 5495 stop. If I am taken long a second time I will have a T/P level at 5645.
Dow Rolling Contract
Just like the S&P above, the Dow sold off after the close and I am now long at a price of 27365. I will only add to this position on a further move lower to 27165 with a now lower 26995 stop. I will also lower my T/P level to 27480 and if any of the above levels are hit I will be back with a new update for my Platinum Members.
The NASDAQ closed higher yesterday and I am still flat. I will continue to be an aggressive buyer from 11300/11400 with the same 11195 ‘’Closing Stop.’’ I still do not want to be short the NASDAQ at this time.
The BUND closed near all-time highs again yesterday with the yield again at an insane -62 basis points. We have resistance from 176.30/176.80 where I will be a seller with a 177.25 stop.
Gold Rolling Contract
No Change as I am still a buyer from 1866/1878 with an 1859 stop.
Silver Rolling Contract
I am still flat and I will now lower my buy level to 23.10/23.70 with a lower 22.65 stop.