On 06/09/2021 TraderTalent.com is bringing you another guest post from Bryan Noble.
U.S. Equity Markets were volatile on Friday, ending the week mixed, with the Dow closing lower by 0.21% while the NASDAQ 100 closed at a new all-time high with a gain of 0.31%. The Bureau of Labour Statistics reported Non-Farm Payroll data for August showed 235,000 new hires compared with the expectation of 733,000. This was the weakest NFP Report since January. The U.S. Bond Market did not like the Average Earnings Component, which was up 0.6%. The Report indicated a weakening Demand aspect. This was also significantly lower than last month’s upwardly revised 1.05 million, suggesting the pace of economic growth is slowing. Meanwhile, the White House pledged to provide $2.7 billion for COVID-19 vaccine manufacturing to become the world’s “go-to” supplier. European Markets closed lower. Markit Euro-Zone’s final Composite PMI data for August declined compared with the preliminary number amid slowing growth of new orders. Euro-Zone Retail Sales figures for July fell unexpectedly after two months of gains, fuelled by a slowdown in German activity. Ahead of the election later this month, German polling data shows that Chancellor Angela Merkel’s Christian Democratic Union party continues to lose ground to the Social Democrats. The European Union’s COVID-19 vaccinations increased to 540.2 million through Thursday, with more than 255.5 million individuals having been fully inoculated. In Asia, China’s Caixin Composite Purchasing Managers’ Index (“PMI”) data for August shifted to contraction territory for the first time since April 2020 due to COVID-19-related restrictions putting pressure on services activity. China’s Foreign Affairs Committee said it was opposed to a proposal for political relations and cooperation between the European Union and Taiwan. Markit Japan’s final Composite PMI data for August fell compared with the initial reading thanks to a decline in services activity. South Korean Prime Minister Kim Boo-kyum said the government would extend social-distancing restrictions for another four weeks due to the resurgence of COVID-19 cases. Elsewhere, Oil fell 1.06% on news that the number of oil and gas rigs in the U.S. declined by 11 last week in the wake of Hurricane Ida, while Gold rose 1% on Dollar weakness.
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For anyone following my Platinum Service it made 120 points on Friday, and is now ahead by 375 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
The S&P 500 closed 0.05% lower at a price of 4535.
The Dow Jones Industrial Average closed 75 points lower for a 0.21% loss at a price of 35,369.
The NASDAQ 100 closed 31% higher at a price of 15,652.
The Stoxx Europe 600 Index closed 0.5% lower.
This morning, the MSCI Asia Pacific Index fell 0.4%.
This morning, the Nikkei closed 1.83% higher at a price of 29,659
The Bloomberg Dollar Spot Index closed 0.2% lower.
The Euro closed 0.1% higher at $1.1883.
The British Pound closed 01% higher at 1.3850.
The Japanese Yen rose 0.2%, closing at $109.78.
Germany’s 10-year yield closed two basis points higher at -0.36%.
Britain’s 10-year yield closed three basis points higher at 0.71%.
US 10 Year Treasury closed four basis points higher at 1.32%.
West Texas Intermediate crude closed 1.01% lower at $68.96 a barrel.
Gold closed 1% higher at $1,829.10 an ounce.
This morning on the Economic Front we already had the release of German Factory Orders which rose 3.4% versus -1.0% expected. At 9.30 am we have UK Markit Construction PMI. Finally, we have Euro-Zone Sentix Investor Confidence at 10.00 am. Remember both U.S. and Canada are closed today for the Labour Day Holiday.
September S&P 500
The S&P made an afternoon low of 4519, (just missing my initial 4510 buy level) before of course rallying, trading at a price of 4542 this morning. Friday’s NFP Report was extremely weak with higher Average Earnings. This is a bad combination as it shows wage pressures building across the board. Equity Bulls are delighted as it gives Fed Chair Powell another excuse not to taper. I am still flat the S&P and I will continue to be a seller from 4552/4567 with the same 4581 ‘’Closing Stop’’. I will now raise my buy level to 4505/4520 with a higher 4489 ‘’Closing Stop’’. If I am taken short I will have a T/P level at 4542. If I am taken long I will have a T/P level at 4531.
The Euro made a high of 1.1920 on Friday before selling off to sit at 1.1870 this morning. I am still flat and I will continue to be a buyer on any further dip to 1.1780/1.1830 with the same 1.1745 stop. If I am taken long I will have a T/P level at 1.1860.
September Dollar Index
No Change. I am still a buyer from 91.40/91.85 with the same 90.95 stop. I still do not want to be short the Dollar at this time. If I am taken long I will have a T/P level at 92.10.
The DAX continues on a buy signal, as long as we do not close below the key 15600 support level. Frustratingly, the DAX just missed my 15650 buy level with a 15680 low print before rallying to 15830 this morning. I will now raise my buy level to 15600/15680 with a higher 15535 stop. If I am taken long I will have a T/P level at 15730.
I am still flat and today I will raise my buy level to 7070/7120 with a higher 7035 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 7155.
Dow Rolling Contract
My Dow plan worked well with the market trading lower to my 35270 initial buy level before rallying to my 35390 T/P level and I am still flat. Today, I will again be a buyer on any dip lower to 35100/35250 with the same 34945 ‘’Closing Stop’’. The Dow has strong resistance from 35800/36000 where I will be an aggressive seller with a 36175 ‘’Closing Stop’’. If I am taken long I will have a T/P level at 35370. If I am taken short I will have a T/P level at 35600.
No Change. I am still a seller on any further rally to 15720/15810 with the same 15905 ‘’Closing Stop’’. I still do not want to be long the NASDAQ at this time. If I am taken short I will have a T/P level at 15660.
I have now rolled to the December Contract which trades at a 285 Point Discount to the September Contract. This morning the Dec Contract is trading at 172.23 and has strong resistance from 172.80/173.30 where I will be a seller with a tight 173.61 stop. The Dec Contract has support from 171.10/171.60 where I will be a small buyer with a 170.79 stop. If I am taken short I will have a T/P level at 172.50. If I am taken long I will have a T/P level at 171.90.
Gold Rolling Contract
Gold rallied 1% on Friday and I am still flat. I will now raise my buy level to 1786/1801 with a higher 1773 stop. If I am taken long I will have a T/P level at 1808.
Silver Rolling Contract
I am still flat Silver as the market again just missed my buy 23.30 buy level before surging, trading at 24.80 this morning. Silver has support from 23.60/24.20 and I will raise my buy level to this area with a 23.35 tight stop. If I am taken long I will have a T/P level at 24.55.
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