On 06/10/2021 TraderTalent.com is bringing you another guest post from Bryan Noble.
U.S. Equity Markets rebounded from Monday’s sell-off, finishing yesterday’s session higher, led by the 1.40% gain in the NASDAQ 100. Senate Majority Leader Chuck Schumer (D-NY) said Democrats do not need Republican help to suspend the debt-ceiling limit. He is planning a Senate vote today to move the process forward. If they accomplish the task, it should help to resolve interest rate and growth concerns. In terms of economic data, Markit’s September Services PMI came in above the initial reading, indicating that the economy is performing better than previously expected. Still, the data was at the lowest level in 2021 (though still in expansion territory), signalling the ongoing volatility to the economic recovery. European Markets closed higher. Markit Euro-Zone final composite Purchasing Managers’ Index (“PMI”) data for September rose versus the preliminary reading, marking the seventh straight month of expansion. Euro-Zone Produce Price Index (“PPI”) figures came in below estimates for August, falling versus July on a month-over-month basis, and indicating inflation may be easing. The Organisation of the Petroleum Exporting Countries and its allies agreed to maintain current output increase targets to support high prices. In Asia, China’s Ministry of Foreign Affairs Spokesperson Hua Chunying said the government in Beijing is determined to protect sovereignty and its territorial integrity with regards to Taiwan. Australia’s export figures for August unexpectedly gained, hitting a record as demand for natural gas and coal continued to rise. Japan’s final composite PMI data for September strengthened versus the initial reading as services sector business optimism hit the highest level in three months. Equity markets in China remained closed for a public holiday. Overnight, the Reserve Bank of New Zealand (RBNZ) raised Interest Rates for the first time since 2014 by a Quarter of a percentage point bringing the Base Rate to 0.50%. Elsewhere, Oil continued to rise after OPEC decided not to boost its monthly production by more than planned, while Bitcoin jumped 3.63% on news that U.S. Bank (USB) would begin offering cryptocurrency custody services.
To mark my 2400th 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 103 points yesterday and is now ahead by 53 points for October after making 2866 points in 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 1.05% higher at a price of 4345.
The Dow Jones Industrial Average closed 311 points higher for a 0.92% gain at a price of 34,314.
The NASDAQ 100 closed 1.40% higher at a price of 14,674.
The Stoxx Europe 600 Index closed 0.6% higher.
This morning, the MSCI Asia Pacific Index fell 1.1%.
This morning, the Nikkei closed 0.97% lower at a price of 27,552.
The Bloomberg Dollar Spot Index closed 0.2% higher.
The Euro closed 0.2% lower at $1.1598.
The British Pound closed 0.1% higher at 1.3611.
The Japanese Yen fell 0.5%, closing at $111.69.
Germany’s 10-year yield closed five basis points higher at -0.16%.
Britain’s 10-year yield closed seven basis points higher at 1.09%.
US 10 Year Treasury closed seven basis points higher at 1.56%.
West Texas Intermediate crude closed 2.02% higher at $78.98 a barrel.
Gold closed 0.40% lower at $1,754.10 an ounce.
This morning on the Economic Front we already had the release of German Factory Orders for August which fell 7.7% versus -2.2% expected. At 9.30 am we have U.K. Markit Construction PMI, followed by Euro-Zone Retail Sales at 10.00 am. Finally, we have U.S. MBA Mortgage Applications at 12.00 pm and the ADP Employment Change at 1.15 pm.
December S&P 500
Despite an awful lot of bad news to hit the S&P since last week, we are continuing to make higher lows which is bullish. This is no surprise to me given the ‘Fear & Greed Index’’ showing ‘’Extreme Fear’’. This morning S&P Futures are trading lower due to 10-Year Bond Yields trading to their highest level since June while as mentioned above the RBNZ hiked Interest Rates overnight. Oil close at yet a new seven-year high last night, just below $80, adding further evidence that the inflation story is not ‘’transitory’’. With Vice-Chairman Clarida trading markets ahead of key speeches it is difficult to see how Fed Chair Powell can be re-elected as the Federal Reserve continue to loose all creditability. The S&P has support from 4280/4295 and I will now move my buy level to this area with a higher 4269 ‘’Closing Stop’’. I still do not want to be short the S&P at this time. If I am taken long I will have a T/P level at 4308.
I am still long the Euro from last week at a price of 1.1620. The Euro again traded in a narrow range yesterday as I continue to leave my T/P level unchanged at 1.1645. I will add to this trade at 1.1560 with the same 1.1525 stop.
December Dollar Index
No Change. I am still a seller on any further rally to 94.25/94.65 with the same tight 95.01 stop. If I am taken short I will have a T/P level at 93.95.
I am still flat the DAX as I continue to look to buy the market from 14850/14930 while leaving my 14775 stop unchanged. If I am taken long I will have a T/P level at 14985.
Very little price action in the FTSE over the past week and I am still flat. The FTSE has support from 6890/6940 and I will continue to be a strong buyer in this area with a 6855 stop. If I am taken long I will have a T/P level at 6980.
Dow Rolling Contract
My Dow plan worked well with the market trading higher to my 34460 sell level before falling to sit at a price of 34180 this morning. I covered this short position at my 34397 revised T/P level and I am now flat. It is interesting that despite the strong sell-off in U.S. Indexes over the past month that internally the market is strong as shown by the McClellan Oscillator only closing barely in negative territory with a – 4 print last night. I will now raise my buy level in the Dow to 33830/33980 with a higher 33695 ‘’Closing Stop’’. We have resistance from 34520/34670 where I will be a small seller with a 34825 ‘’Closing Stop’’. If I am taken long I will have a T/P level at 34125. If I am taken short I will have a T/P level at 34385.
Shortly after I posted yesterday morning, the NASDAQ rallied to my 14540 T/P level on Monday’s 14500 average long position and I am now flat. This morning the NASDAQ is getting hit hard on the back of 10-year yields rising to 1.56%. We have support from 14410/14480 where I will be a buyer with a 14345 ‘’Closing Stop’’. The NASDAQ has resistance at yesterday’s 14763 high and I will now be a strong seller on any further rally to 14730/14810 with a 14905 ‘’Closing Stop’’. If I am taken long I will have a T/P level at 14545. If I am taken short I will have a T/P level at 14670.
The BUND has opened lower, in yesterday’s buy range. I have not bought the market and I am still flat as the trading range since opening has been extremely narrow. The Bund has support from 168.40/168.90 and I will now lower my buy level to this area with a lower 167.95 stop. If I am taken long I will have a T/P level at 169.30.
Gold Rolling Contract
No Change. I am still a buyer from 1717/1734 with the same 1703 stop. If I am taken long I will have a T/P level at 1742.
Silver Rolling Contract
I am still flat. I will now raise my buy level to 21.70/22.30 with a higher 21.15 stop. If I am taken long I will have a T/P level at 2275.
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