U.S. Equity Markets pulled back on a relatively quiet day, to closed mixed as the Dow led the decline with a loss of 0.76% while the NASDAQ 100 closed at a new record high with a gain of 0.15%. Markets chopped around on little news. There was still concern over last week’s jobs report, which showed that fewer jobs than expected had been added to the economy. But many on Wall Street say that this will not change the Federal Reserve’s stance on tapering asset purchases. Goldman Sachs garnered some headlines, after strategists at the investment bank lowered their U.S. economic growth outlook for the year, citing the impact of the COVID-19 Delta variant. Like in Europe, investors are looking ahead to the rest of the week, when we get inflation data. That release will be closely watched, as inflation is the other part of the Fed’s mandate (along with the labour market). European Markets closed lower. Euro-Zone Final Second-Quarter Gross Domestic Product data increased 14.3% on an annualised basis, rising versus the initial reading, due to increased consumer spending. German Industrial Production figures for July were stronger than anticipated, rising versus June, due to a rebound in construction and factory output. But all eyes are looking ahead to later in the week. The European Central Bank will announce its latest monetary policy update Thursday, with investors awaiting any clues on the pace and duration of sovereign bond purchases. In Asia, China’s export numbers for August beat expectations, rising versus July, as shipments to the U.S. and Europe hit one of the highest levels this year. Japanese Prime Minister candidate Fumio Kishida called for more than $270 billion in stimulus spending, on the heels of Yoshihide Suga’s surprise resignation announcement. People’s Bank of China Deputy Governor Chen Yulu said it will improve oversight of its financial technology regulation as well as foreign exchange markets. South Korea’s military successfully tested a ballistic missile launch from a submarine, with a range of around 310 miles, ahead of a visit by China’s foreign minister. Elsewhere, Oil fell 1.30% on demand worries, while Bitcoin got slammed for 15%, before rebounding to close 7.25% lower on reports that El Salvador’s rollout of bitcoin as legal tender was bumpy.
To mark my 2375th 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 108 points yesterday and is now ahead by 483 points for September, having closed August with a gain of 1543 points, and 996 points in July. The Platinum Service made 1366 points in June, 1439 points in May, 1244 points in April, having ended March with an impressive gain of 3769 points, 3286 points in February, 2077 points in January, and 2273 points last December. 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 0.34% lower at a price of 4520.
The Dow Jones Industrial Average closed 269 points lower for a 0.76% loss at a price of 35,100.
The NASDAQ 100 closed 0.15% higher at a price of 15,675.
The Stoxx Europe 600 Index closed 0.5% lower.
This morning, the MSCI Asia Pacific Index rose 0.1%.
This morning, the Nikkei closed 0.38% higher at a price of 30,032
The Bloomberg Dollar Spot Index closed 0.2% higher.
The Euro closed 0.2% lower at $1.1843.
The British Pound closed 0.4% lower at 1.3781.
The Japanese Yen fell 0.3%, closing at $110.25.
Germany’s 10-year yield closed five basis points higher at -0.32%.
Britain’s 10-year yield closed five basis points higher at 0.74%.
US 10 Year Treasury closed two basis points higher at 1.36%.
West Texas Intermediate crude closed 1.30% lower at $68.06 a barrel.
Gold closed 2% lower at $1,795 an ounce.
This morning on the Economic Front we have no data of note from either the UK or the Euro-Zone. At 12.00 pm we have U.S. MBA Mortgage Applications and the JOLTS Job Openings at 3.00 pm. Finally, we have the Beige Book which will be released at 7.00 pm.
September S&P 500
After making a new high for the 14th consecutive week on Monday, the S&P hit a wall of resistance at the 4540/4550 area before selling off to an afternoon low of 4511. This move lower saw my 4517 buy level filled before rallying to my 4525 revised T/P level and I am now flat. The S&P has strong support from 4483/4498 where I will again be a buyer with a 4469 ‘’Closing Stop’’. A break and close below 4480 could be significant. I will now lower my sell level to 4535/4550 with a lower 4563 ‘’Closing Stop’’.
I am still flat. I will now lower my buy level to 1.1760/1.1810 with a lower 1.1715 stop.
December Dollar Index
The Dollar just missed yesterday’s buy level before rallying on the ‘’Risk Off’’ trade and I am still flat. I will now raise my buy range to 91.70/92.10 with a higher 91.35 tight stop.
The DAX fell shy of my 15990 sell level before selling off after the Dow got hit. The DAX has strong support from 15580/15650 where I will be an aggressive buyer with a 15515 tight stop. If I am taken long I will have a T/P level at 15710.
Overnight, the FTSE hit my buy range and I am now long in small size here at 7110. I will add to this trade at 7050 with a 7015 tight stop. I will now lower my T/P level on this position to 7135.
Dow Rolling Contract
The Dow traded the whole of yesterday’s buy range for a 34170 average long position. Thankfully, the Dow rallied to my revised 35200 T/P level as emailed earlier to my Platinum Members and I am now flat. The Dow has short-term support from 34750/34900 where I will again be a buyer with a 34635 ‘’Closing Stop’’. I will now lower my sell level to 35200/35350 with a lower 35525 ‘’Closing Stop’’.
Despite the NASDAQ closing at yet another new all-time high, the market just missed my 15720 sell level with a 15706 high print and I am still flat. I will continue to be a seller from 15720/15810 with the same 15905 ‘’Closing Stop’’. I still do not want to be long the NASDAQ at this time.
After the Bund traded lower to my initial 171.50 buy level I had too many ‘’Open’’ positions at the time and I covered this trade for a small gain at 171.58. With Equity Markets under pressure, I will continue to buy the Bund on dips. The Bund has support from 170.70/171.20 where I will be a buyer with a 170.35 stop. If I am taken long I will have a T/P level at 171.50.
Gold Rolling Contract
Gold fell 2% yesterday, hitting my buy range and I am now long at a price of 1796. I will now lower my T/P level on this position to 1801 while leaving my 1783 stop unchanged.
Silver Rolling Contract
Yesterday’s ‘’Risk Off’ saw Silver hit my 24.25 buy level. I am still long with a now lower 24.45 T/P level. I will look to add to this position at 23.65 with a tight 23.25 stop.