U.S. Equity Markets traded in a narrow range before closing below Monday’s record highs, led by the Dow which finished lower by just 0.29%. The International Monetary Fund boosted its global growth outlook for 2021 on strength from accelerating COVID-19 vaccinations. On infrastructure, Senate Parliamentary Elizabeth MacDonough confirmed the Chamber could use the reconciliation process again this calendar year to pass President Joe Biden’s infrastructure plan. Economic data were also positive. JOLTS Job Openings for February came in well above estimates, signalling that businesses are preparing to increase hiring. That is a good sign for the economic recovery. There was also talk about stocks becoming more comfortable with the higher Interest Rate environment after the initial shock from a spike in yields has worn off. Now, Wall Street strategists are focusing on the 2% level for the 10-year Treasury rate as a key level that may trigger a sell-off in stocks. There was also optimism about the pace of vaccinations, with Biden pushing up the timeline for all adults to be eligible for shots. European Markets closed higher as it plays cacthup to Monday’s move to record highs in the U.S. Sentix’s Euro-Zone Investor Confidence data for April hit their highest level since August 2018, as optimism about economic expectations hit an all-time high. The U.K. will make free coronavirus test kits available through local facilities starting February 9 and reopen restaurants next week in an attempt to restart the economy. But it was not all positive news… Christian Democratic Union Chairman Armin Laschet suggested Germany introduce strict coronavirus social-distancing restrictions until vaccinations can stem rising infections. Elsewhere, Oil closed 1.19% higher after Russia slashed its production forecasts for 2021, while Gold rose 0.80% on Dollar weakness.
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For anyone following my Platinum Service it finished flat yesterday as none of my calls were hit and is still down 585 points for April, having ended March with an impressive gain of 3769 points, 3286 points in February, 2077 points in January, 2273 points in December, 2025 points in November, 2779 points in October, 3042 points in September and 2383 points in August. 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 0.10% lower at a price of 4073.
The Dow Jones Industrial Average closed 97 points lower for a 0.29% loss at a price of 33,430.
The NASDAQ 100 closed 0.14% lower at a price of 13,578.
The Stoxx Europe 600 Index closed 0.6% higher.
Yesterday, the MSCI Asia Pacific Index fell 0.4%.
Yesterday, the Nikkei closed 1.30% lower at a price of 29,696.
The Bloomberg Dollar Spot Index closed 0.4% lower.
The Euro closed 0.5% higher at $1.1868.
The British Pound closed 0.5% lower at $1.3830.
The Japanese Yen closed 0.5% higher at 109.76 per dollar.
Germany’s 10-year yield closed one basis points lower at -0.33%.
Britain’s 10-year yield closed two basis points lower at 0.78%.
US 10 Year Treasury closed six basis points lower at 1.66%.
West Texas Intermediate crude closed 1.19% higher at $59.34 a barrel.
Gold closed 0.80% higher at $1,742.20 an ounce.
This morning on the Economic Front we have German, Euro-Zone and UK Markit Services PMI at 8.55 am, 9.00 am and 9.30 am respectively. This is followed by U.S MBA Mortgage Applications at 12.00 pm and the Trade Balance at 1.30 pm. Finally, we have the Minutes from last Month’s FOMC Minutes at 7.00 pm.
June S&P 500
The S&P fell shy of my 4082 sell level with a 4075 high print before having a small sell-off into the close and I am still flat. Today, I will leave my 4082/4100 sell level unchanged with the same 4115 ‘’Closing Stop’’. The S&P has short term support from 4015/4030 where I will be a small buyer with a 4003 ‘’Closing Stop’’. The S&P needs to break and close 3980 for markets to turn bearish.
I am still flat and I will now raise my buy level to 1.1800/1.1840 with a tight 1.1755 stop. If I am taken long I will have a T/P level at 1.1875.
June Dollar Index
No Change. I am still long at 92.55 with the same 92.18 stop. I will now lower my T/P level on this position to 92.75.
The DAX opened strong before spending the rest of the session selling off and I am still flat. The DAX has support from 14930/15010 and I will be a buyer in this area with a 14865 stop. I will now lower my sell level to 15405/15485 with a lower 15555 stop.
I am still flat and today I will raise my sell level slightly to 6830/6880 with a 6925 stop. The FTSE has support from 6660/6710 where I be a small buyer with a 6615 stop.
Dow Rolling Contract
After Monday’s explosive move to the upside, the Dow traded in a narrow range yesterday and I am still flat. Ahead of the FOMC Minutes, I will not chase the market lower and I will leave my 33660/33830 sell level unchanged with the same 34005 ‘’Closing Stop’’. The Dow has support from 33130/33300 and I will raise my buy level to this area with a 32975 ‘’Closing Stop’’.
I am still flat as the market never came close to yesterday’s sell range. Just like the Dow above I will not chase the market lower and I will leave my 13750/13850 sell level unchanged with the same 13925 tight ‘’Closing Stop’’. The NASDAQ has short-term support from 13370/13280. I will be an aggressive buyer on any dip to this area with a 13195 ‘’Closing Stop’’.
The Bund missed my 171.30 buy level by two points before rallying to close at 171.70 and I am still flat. Ahead of this evening’s FOMC Minutes, I will now lower my buy level to 170.75/171.15 with a lower 170.29 stop. I still do not want to be short the Bund at this time.
Gold Rolling Contract
Gold has rallied $70 off last week’s low print and I am still flat. With everyone that I know long Gold, I still do not trust this market as I believe we will eventually break the key 1650 support level. Short-term, Gold has support from 1695/1710 and I will raise my buy level to this area with a 1683 stop.
Silver Rolling Contract
I am still flat and I will now raise my buy level to 24.00/24.60 with a higher 23.55 stop.