Vaccine optimism once again boosted U.S. Equity Markets, closing at new all-time highs, led by the Russel 2000 closing with a gain of 1.40%. After opening lower, vaccine news provided tailwinds for markets over the course of the day. An analysis by U.S. Food and Drug Administration (“FDA”) staff concluded Pfizer and BioNTech’s clinical trial data meet the requirements for an Emergency Use Authorisation (“EUA”). This comes as the FDA began its official review of the vaccine’s EUA application. Elsewhere, Stimulus negotiations hit a snag as the group working on the bipartisan proposal failed to reach consensus on liability reform as well as state and local aid. These are going to continue to be the two big drivers for the market over the near term. European Markets closed lower. British Prime Minister Boris Johnson was preparing to travel to Brussels for emergency post-Brexit trade negotiations with the European Union, as the two sides are still in the process of striking a deal. The Euro-Zone ZEW Indicator of Economic Sentiment for November rose versus October, implying businesses and analysts are increasingly optimistic about regional growth prospects. German Health Minister Jens Spahn said the country could soon tighten Coronavirus restrictions further. But the U.K. began inoculating citizens with Pfizer and BioNTech’s COVID-19 vaccine yesterday morning. Elsewhere, Oil closed 0.24% lower after a mixed trading session while Gold continued to rise ahead of tomorrow’s ECB meeting, where more Stimulus is expected to be announced, with a gain of 0.44%.
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For anyone following my Platinum Service it made 82 points yesterday and is now ahead by 325 points for December, having finished November with a gain of 2025 points, 2779 points in October, 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 0.28% higher at a price of 3702.
The Dow Jones Industrial Average closed 104 points higher for a 0.35% gain at a price of 30,174.
The NASDAQ 100 closed 0.30% higher at a price of 12,635.
The Stoxx Europe 600 Index closed 0.3% lower.
The MSCI Asia Pacific Index rose 0.3%.
This morning the Nikkei closed 1.33% higher at a price of 26,818.
The Bloomberg Dollar Spot Index rose 0.2%.
The Euro closed 0.1% higher at $1.2131.
The British pound fell 0.2% to close at $1.3360.
The Japanese Yen closed unchanged at 104.15 per dollar.
Germany’s 10-year yield closed one basis point lower at -0.60%.
Britain’s 10-year yield closed two basis points lower at 0.26%.
US 10 Year Treasury closed unchanged at 0.93%.
West Texas Intermediate crude closed 0.24% lower at $44.28 a barrel.
Gold closed 0.44% higher at $1,865.20 an ounce.
This morning on the Economic Front we already had the release of the German Trade Balance which came in at Eur 18.2 bn as expected. At 12.00 pm we have the U.S MBA Mortgage Applications. Finally, at 3.00 pm we have the JOLTS Job Openings and Wholesale Inventories.
December S&P 500
The S&P sold off after I posted yesterday morning hitting a low of 3665, just missing my 3664 buy level before surging to a new all-time high. This move saw my 3705 sell level being filled. As I did not want to be short overnight, I emailed my Platinum Members to exit any short position at 3702 and I am still flat. Despite optimism at extreme levels it is difficult to be short given the seasonal factors at play. The S&P has now risen nearly 500 Handles since the end of October in what is running out to be one of the most incredible rallies of all-time. The amount of ‘’Open Gaps’ left on this move higher is unprecedented and the market is due a correction. We have short-term resistance from 3715/3732 where I will be a seller with a 3745 ‘’Closing Stop’’. I am not going to chase the S&P higher and I will continue to be a strong buyer on any dip lower to 3655/3670 with a 3639 wider stop.
I am still flat the Euro which has hardly moved since last week. I will now raise my buy level to 1.2000/1.2050 with a higher 1.1965 stop. I will also raise my sell level slightly to 1.2180/1.2230 with a higher 1.2275 stop.
March Dollar Index
I have now rolled to the March Contract, which trades at a small 10 point Discount to the December Contract. The Dollar is severely oversold and due a correction. We have strong support at the 89.80/90.30 area where I will be a buyer with an 89.35 stop.
The DAX just missed my initial 13170 buy level before rallying to trade at 13330 this morning. There is so much good news priced into the DAX at this time as we wait for the ECB’ s Stimulus Package announcement tomorrow. I will now raise my buy level to 13140/13220 with a higher 13055 stop. I still do not want to be short the DAX at this time.
Optimism on a ‘’Brexit Deal’’ sees the FTSE opening higher this morning and I am now short again in small size at 6580. I will add to this trade at 6630 with the same 6671 stop. I will now raise my T/P level to 6550 and if any of the above levels are hit I will be back with a new update for my Platinum Members.
Dow Rolling Contract
Just when it looked like the Dow as going to break down we got a Tuesday turnaround from its 29867 low print, before the market rallied back above 30200. Frustratingly, the Dow just missed my 29850 buy level and I am still flat. I will now raise my buy level to 29820/30020 with a higher 29685 stop. I still do not want to be short the Dow at this time.
My NASDAQ plan worked well with the market trading lower to my 12510 buy level before rallying to my 12562 revised T/P level and I am still flat. The NASDAQ closed at a new all-time high and is currently trading at 12640 as I go to press. The NASDAQ has support from 12470/12540 where I will be a buyer with a 12395 stop. We have strong resistance from 12770/12850 where I will be an aggressive seller with a 12955 stop.
I have now rolled to the March Contract which trades at a hefty premium of 255 points to the December Contract. The March Contract is currently trading near record highs at 178.05 with the Bund Yield at -61 basis points. We have resistance from 178.40/178.80 where I will be a seller with a 179.25 wider stop. If I am taken short I will have a T/P level at 178.05.
Gold Rolling Contract
Gold is selling off this morning and I am still flat. I will continue to be a small buyer on any further move lower to 1812/1826 with the same 1799 stop.
Silver Rolling Contract
In the last few minutes, Silver has traded lower to my 24.20 buy level. I am still long and I will now lower my T/P level to 24.40. I will also raise my stop on this position to 23.65 and if any of the above levels are hit I will be back with a new update for my Platinum Members.