U.S. Equity Markets bounced around once again, before closing with slight gains on yet another low-volume trading session. Federal Reserve Board of Governors Member Lael Brainard said she expects employment progress in the coming months, but job gains remain a long way from the central bank’s goal. The comments on job gains went against what St. Louis Fed President James Bullard said yesterday. The Fed also released its Beige Book, showing that economic activity accelerated in April and May from the previous period. However, the central bank warned of pricing pressures as producers are reporting widespread shortages of materials. The release also showed that businesses were having trouble hiring workers, even with increased wages. President Joe Biden met with Republican Senators to discuss an infrastructure agreement, though there were no headlines that came out before the market closed on the talks. European Markets closed higher. Euro-Zone Producer Price Index data for April were in line with expectations, rising versus March and hitting the highest level since 2008, as energy prices surged. The European Commission said it will raise roughly $183 billion via long- and short-term bond issuance this year, beginning later this month, to fund regional stimulus. German Retail Sales rose in April, but missed estimates as COVID-19 restrictions hampered spending. In Asia, South Korea’s consumer price index data for May were in line with expectations, hitting its highest level in nine years, as commodity prices gained. China’s state-run media called for strengthening of government risk prevention and financial policies aimed at ensuring a stable financial system. Japan’s vehicle sales for May accelerated versus April, hitting the second-highest level since 2012, and signalling strength in a key part of the world’s third-largest economy. Elsewhere, Oil closed 1.48% higher as OPEC kept its output plan in place at its most recent meeting, while Bitcoin surged 5.50% on little news.
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For anyone following my Platinum Service it was flat yesterday and is still ahead by 280 points for June having made 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, 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
The S&P 500 closed 0.14% higher at a price of 4208.
The Dow Jones Industrial Average closed 25 points higher for a 0.07% gain at a price of 34,600.
The NASDAQ 100 closed 0.16% higher at a price of 13,675.
The Stoxx Europe 600 Index closed 0.3% higher.
Yesterday, the MSCI Asia Pacific Index rose 0.2%.
Yesterday, the Nikkei closed 0.46% higher at a price of 28,946.
The Bloomberg Dollar Spot Index closed 0.1% higher.
The Euro closed 0.1% lower at $1.2205.
The British Pound closed 0.2% higher at 1.4165.
The Japanese Yen fell 0.2%, closing at $109.57.
Germany’s 10-year yield closed two basis points higher at -0.20%.
Britain’s 10-year yield closed two basis points lower at 0.80%.
US 10 Year Treasury closed one basis points lower at 1.59%.
West Texas Intermediate crude closed 1.48% higher at $68.72 a barrel.
Gold closed 0.35% higher at $1,905.20 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 ADP Unemployment Change at 1.15 pm. Next, we have Weekly Jobless Claims, Unit Labour Costs and Non-Farm Productivity at 1.30 pm. Finally, we have Markit Services PMI at 2.45 pm and ISM Services PMI at 3.00 pm.
June S&P 500
Frustratingly, the S&P missed my 4215 sell level with a high of 4214.25 before falling 20 Handles and I am still flat. Over the last five trading sessions, the S&P 500 has closed within a tight 12-13 point range. This sideways trading range is either a pause that will lead to an upward push to new highs or it signals exhaustion of the rally at the end of an upward correction. Sentiment such as the CBOE Put/Call ratio indicates that the move is likely to be lower. Ahead of the Weekly Jobless Claims, I will now raise my sell level to 4222/4237 with a higher 4251 ‘’Closing Stop’’. I will now raise my buy level to 4169/4184 with a higher 4155 ‘’Closing Stop’’. If I am taken short I will have a T/P level at 4211. If I am taken long I will have a T/P level at 4196.
My Euro plan worked well with the market trading lower to my 1.2165 buy level before rallying to my 1.2195 T/P level and I am now flat. Today, I will again be a buyer on any dip lower to 1.2120/1.2170 with a 1.2075 stop. The Euro has resistance from 1.2280/1.2330 where I will continue to be a seller with the same 1.2365 stop. If I am taken long I will have a T/P level at 1.2205. If I am taken short I will have a T/P level at 1.2245.
June Dollar Index
I am still flat as I continue to look to buy the market on any further dip lower to 89.00/89.45 with the same 88.65 stop. If I am taken long I will have a T/P level at 89.75.
Despite the fact that the DAX rallied almost 200 points yesterday, I still do not trust this upward price action. The DAX has short-term support from 15210/15270 and I will move my buy level to this area with a 15165 stop. If I am taken long I will have a T/P level at 15315.
The FTSE rallied again yesterday and I am still flat. I will now raise my buy level to 6980/7030 with a higher 6935 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 7065.
Dow Rolling Contract
The Dow traded in a narrow range yesterday and I am still flat. A break and close below 34400 should see a move to the downside as this level has held any small sell-off over the past week. I will now raise my buy level to 34280/34430 with a higher 34145 ‘’Closing Stop’’. Meanwhile, I will leave my 34820/34970 sell level unchanged with the same 35095 ‘’Closing Stop’’. If I am taken long I will have a T/P level at 34550. If I am taken short I will have a T/P level at 34705.
Thankfully the NASDAQ sold off to my 13605 exit level on my 13575 average short position which I had held for the previous week and I am still flat. The NASDAQ has support from 13500/13580 and a break and close below here will signal at least a temporary top in the market. The NASDAQ has strong resistance from 13780/13860 where I will be an aggressive seller with a 13945 ‘’Closing Stop’’. I do not want to be long the NASDAQ at this time. If I am taken short I will have a T/P level at 13710.
I am still flat and today, I will raise my buy level to 169.10/169.60 with a 168.65 higher stop. If I am taken long I will have a T/P level at 169.90.
Gold Rolling Contract
No Change. I am still a buyer on any dip lower to 1847/1862 with the same 1839 stop. If I am taken long I will have a T/P level at 1870.
Silver Rolling Contract
I am still flat. I will now raise my buy level to 26.90/27.50 with a higher and tight 26.65 stop. If I am taken long I will have a T/P level at 27.80.
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