On 01/06/2021 TraderTalent.com is bringing you another guest post from Bryan Noble of TraderNoble.com.

U.S. Equity Markets traded in a narrow range on Friday on what turned out to be the last trading day for May, finishing the day higher, led by Dow which closed with a small gain of 0.21%. There was an important economic data release, though. Personal consumption expenditures (“PCE”), the Federal Reserve’s preferred measure of inflation, came in above estimates. This did not spook markets too much, as the April year-over-year comparison was the easiest given the low economic activity from last year. “Meme” stocks were in the news as well, as AMC Entertainment’s (AMC) shares whipsawed. This did not have an impact on the broader market, though. While Democrats shot down the most recent Republican infrastructure proposal, Senator Mitch McConnell (R-KY) said that this was just a starting point for Republican negotiations, and they could go higher. European Markets sold off into the close yesterday. French Consumer Price Index (“CPI”) data for May were in line with expectations, as the annualised numbers remained well below the European Central Bank’s 2% target. Britain’s economic optimism hit its highest level since 2016, as social-distancing restrictions were eased for pubs, bars, restaurants, and movie theatres. The same was seen in the broader Euro-Zone sentiment release. Spain’s government agreed to a deal with small businesses and unions to extend the country’s furlough scheme until September, supporting the spending outlook. In Asia, Japan’s Unemployment rate for April was higher than expected, rising versus March, as coronavirus-related restrictions remain in place in Tokyo and a number of prefectures. The People’s Bank of China tried to temper yuan strength expectations, pledging stability, while discussing the issue with participants at a foreign exchange meeting. South Korea’s Finance Minister Hong Nam-ki said the government would extend a tax break on automobiles by another six months to the end of this year. Elsewhere, Bitcoin fell 5% after Bank of Japan governor Haruhiko Kuroda made cautious comments on the cryptocurrency, while Gold closed over $1900 for the first time since early January.

To mark my 2325th 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 protected] for details

For anyone following my Platinum Service it made 94 points on Friday, closing May with a gain of 1439 points having made 1244 points in April, having ended March with an impressive gain of 3769 points, having made 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

Equities

The S&P 500 closed 0.08% higher at a price of 4204.

The Dow Jones Industrial Average closed 54 points higher for a 0.21% gain at a price of 34,529.

The NASDAQ 100 closed 0.21% higher at a price of 13,686.

The Stoxx Europe 600 Index closed 0.3% higher.

Yesterday, the MSCI Asia Pacific Index fell 0.3%.

Yesterday, the Nikkei closed 0.99% lower at a price of 28,860.

Currencies

The Bloomberg Dollar Spot Index closed 0.2% lower.

The Euro closed 0.2% higher at $1.2221.

The British Pound closed 0.1% higher at 1.4204.

The Japanese Yen rose 0.3%, closing at $109.49.

Bonds

Germany’s 10-year yield closed one basis points lower at -0.19%.

Britain’s 10-year yield closed one basis points lower at 0.80%.

US 10 Year Treasury closed three basis points lower at 1.58%.

Commodities

West Texas Intermediate crude closed 0.8% higher at $67.35 a barrel.

Gold closed 0.47% higher at $1,903.20 an ounce.

This morning on the Economic Front we have German Unemployment ay 8.55 am. This is followed by Euro-Zone and UK Manufacturing PMI at 9.00 am and 9.30 am respectively. Next, we have Euro-Zone CPI at 10.00 am. At 2.45 pm we have U.S Manufacturing PMI and this is followed at 3.00 pm by ISM Manufacturing PMI and Construction Spending, Finally, at 3.30 pm we have the Dallas Fed Manufacturing Business Index.

June S&P 500

On Friday, the S&P traded in just a range of 12 Handles, which was the second lowest of the year, eclipsed by the 11.83 range on April 26. The VIX was lower by 4% for most of the session before rising to close with a small gain of 0.12%. The S&P has support from 4158/4173 and I will now lower my buy level to this range with a tight 4147 ‘’Closing Stop’’. I will now lower my sell level to 4212/4227 with a lower 4241 ‘’Closing Stop’’. If I am taken long I will have a T/P level at  4184. If I am taken short I will have a T/P level at 4202.

EUR/USD

My Euro plan worked well with the market trading lower to my 1.2140 buy level before rallying to sit at 1.2225 as I go to press. Unfortunately, I covered this long position too early at 1.2169 and I am still flat. Today, I will again be a buyer on any dip lower to 1.2120/1.2165 with a 1.2075 stop. The Euro has resistance from 1.2280/1.2330 where I will be a seller with a 1.2365 stop. If I am taken long I will have a T/P level at 1.2195. If I am taken short I will have a T/P level at 1.2250.

June Dollar Index

I am still flat. I will now lower my buy level slightly to 89.00/89.45 with a 88.65 tight stop. If I am taken long I will have a T/P level at 89.75.

June DAX

I still do not trust the price action in the DAX. However, for me to turn bearish we need to break and close below 15150. I will now lower my buy level to 15120/15200 with a lower 15050 stop. If I am taken long I will have a T/P level at 15250.

June FTSE

No Change. The FTSE traded in a narrow range on Friday ahead of the long-weekend and I am still flat The FTSE has support from 6890/6940 where I will be a buyer with a 6855 stop. I still do not want to be short the FTSE at this time. If I am taken long I will have a T/P level at 6970.

Dow Rolling Contract

I am still flat as the Dow trades 100 points lower than Friday’s close as I go to press. The Dow has strong support from 34050/34250 where I will be an aggressive buyer with a 33895 ‘’Closing Stop’’. I will now lower my sell level slightly to 34700/37880 with the same 35075 ‘’Closing Stop’’. If I am taken long I will have a T/P level at 34395. If I am taken short I will have a T/P level at 34600.

June NASDAQ

I am still short the NASDAQ from 10 days ago at a price of 13575. I will leave my 13560 T/P level unchanged with the same 13705 ‘’Closing Stop’’. If any of the above levels are hit I will be back with a new update for my Platinum Members.

June BUND

My latest 169.75 long Bund position worked well with the market trading higher to my 170.05 T/P level and I am still flat. The Bund has support from 169.10/169.60 where I will again be a buyer with a 168.75 tight stop. If I am taken long I will have a T/P level at 169.90.

Gold Rolling Contract

Gold finally broke and closed over $1900 yesterday and I am still flat. I will now raise my buy level to 1847/1862 with a higher and tight 1839 stop. If I am taken long I will have a T/P level at 1870

Silver Rolling Contract

My Silver plan worked well with the market trading lower to my 27.40 buy level before rallying to my 27.75 revised T/P level and I am still flat. Today, I will again be a buyer from 27.00/27.60 with a 26.65 tight stop. If I am taken long I will have a T/P level at  27.95.

 

Your Platinum Subscription intraday updates will appear here once they are published.

Hi Everyone

The third standard deviation for the S&P comes in a 4221 and in my opinion the S&P will have a decent correction of this key level
Today the S&P traded the whole of my  sell range for a 4220 average short position before selling off and I have now exited this trade here at 4204
The Dow hit my sell range and I sold at 34740. We have also sold off and I have now exited this position here at 34625 and I am now flat
I will look to sell the S&P again from 4215/4229 with same 4241 ”Closing Stop”
If I am taken short I will have a T/P level at  4203.
Kind Regards
Bryan
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