On 07/10/2021 TraderTalent.com is bringing you another guest post from Bryan Noble.

U.S. Equity Markets rallied strongly off their lows on reports of a debt ceiling deal, finishing the day higher, led by the NASDAQ 100’s gain of 0.63%. Markets opened sharply lower again. This was despite strong ADP employment data. The ADP employment data came in above estimates, showing that the job market’s recovery continues. However, a strong labour market makes the case for the Federal Reserve to begin pulling back on its support for the U.S. economy. This is why we saw markets fall despite the beat. Late in the day, markets surged off their lows on reports that Senate Minority Leader Mitch McConnell (R-KY) had offered Democrats a short-term extension of the debt ceiling This would allow Democrats to raise the debt ceiling on their own through the reconciliation process, and avoid a default. Expect this headline to ease growth and interest rate fears in the markets. Now, investors look ahead to the other labour market data this week – Non-Farm Payrolls and the Unemployment Rate which will be released tomorrow. 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. Elsewhere, Oil fell 2.39% on a larger-than-expected increase in U.S. crude inventories and speculation that the U.S. could release more crude from its Strategic Petroleum Reserve, while Bitcoin surged a further 7.55% after the chairman of the SEC said it was not planning on banning cryptocurrencies.

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 403 points yesterday and is now ahead by 456 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

Equities

The S&P 500 closed 0.41% higher at a price of 4363.

The Dow Jones Industrial Average closed 102 points higher for a 0.30% gain at a price of 34,416.

The NASDAQ 100 closed 0.63% higher at a price of 14,766.

The Stoxx Europe 600 Index closed 0.8% higher.

This morning, the MSCI Asia Pacific Index fell 0.2%.

This morning, the Nikkei closed 0.54% higher at a price of 27,678.

Currencies

The Bloomberg Dollar Spot Index closed 0.4% higher.

The Euro closed 0.4% lower at $1.1548.

The British Pound closed 0.2% lower at 1.3585.

The Japanese Yen rose 0.2%, closing at $111.45.

Bonds

Germany’s 10-year yield closed two basis points lower at -0.18%.

Britain’s 10-year yield closed one basis points lower at 1.08%.

US 10 Year Treasury closed three basis points lower at 1.53%.

Commodities

West Texas Intermediate crude closed 2.39% lower at $77.09 a barrel.

Gold closed 0.25% higher at $1,760.10 an ounce.

This morning on the Economic Front we already had the release of German August Industrial Production which fell 4% versus -0.4% expected. At 12.30 pm we have the Minutes from last Month’s ECB Meeting and this is followed at 1.30 pm by U.S. Weekly Jobless Claims. Finally, we have speeches from Fed Member Williams at 1.40 pm and ECB Members Schnabel and Lane at 3.00 pm.

December S&P 500

A combination of the S&P making higher lows and the negative ‘’Fear &  Greed Index reading has led to the S&P trading 80 Handles higher from where I marked prices 24 hours ago as yet again anyone staying short for any length of time gets slammed. Thankfully we had no sell levels yesterday as the market rallied soon after the U.S. Markets opened before surging again overnight. In my opinion this is only a relief rally for now as the S&P needs to break and close over its 50-Day Moving Average (4428 in the December Contract) before we will see a more stable bullish environment. Inflation and higher rates are not going away anytime soon. Within two hours of me posting yesterday, nearly all of my calls had been hit. After the S&P traded the whole of my buy range for a 4287 average long position I covered this position at my 4297 revised T/P level and I am now flat. If you did hold some of this long position overnight, I would cover the rest of your trade here at 4382 and go flat. The S&P has resistance from 4398/4413 where I will be a seller with a 4431 wider ‘’Closing Stop’’. The S&P has support from 4337/4352 and I will be a small buyer on any dip to this area with a 4325 ‘’Closing Stop’’. If I am taken short I will have a T/P level at 4387. If I am taken long I will have a T/P level at 4365.

EUR/USD

The Euro traded lower to my 1.1560 second buy level for a now 1.1590 average long position. I will leave my stop unchanged at 1.1525 while lowering my T/P level to 1.1615.

December Dollar Index

The Dollar traded higher to my 94.38 sell level. I am still short with a now higher 94.10 T/P level. I will now lower my stop to 94.75 and if any of the above levels are hit I will be back with a new update for my Platinum Members.

December DAX

My DAX plan worked well with the market trading the whole of my buy range for a 14890 average long position. The 14900 proved to have strong support as expected with the DAX trading 230 points higher at 15130 this morning. I covered my own long position too early at 14932 and I am still flat. The DAX has support from 14850/14930 where I will again be a buyer with a 14785 stop. I still do not want to be short the DAX at this time. If I am taken long I will have a T/P level at 14980.

December FTSE

After the FTSE hit my 6925 buy level, the market reversed course, rallying to an overnight high at 7060. I covered my long position at 6952 and I am now flat. Today, I will again be a buyer on any dip lower to 6930/6980 with a 6875 stop. If I am taken long I will have a T/P level at 7020.

Dow Rolling Contract

My Dow plan also worked well with the market hitting my 33920 buy level before surging  over 700 points to 34600 this morning. I covered this long position at  my 34065 revised T/P level. This move higher has me short at a price of 34605. I will add to this  trade at 34755 while leaving my 34825 ”Closing Stop” unchanged. I will now raise my T/P level on this position to 34510.

December NASDAQ

My NASDAQ plan worked well with the market trading lower to my 14450 buy level before rallying to trade the whole of my sell range for a now 14775 average short position. Unfortunately, I covered my long position too early at 14504. I am still short with a now higher 14725 T/P level, while leaving my 14905 ‘’Closing Stop’’ unchanged.

December BUND

No Change. I do not trust yesterday’s rally in the Bund. However, I am reluctant to go short, preferring to be a buyer on any dip lower to 168.40/168.90 with the same 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

My Silver plan worked well with the market trading lower to my 22.20 buy level before rallying to my revised 22.55 T/P level and I am now flat. This morning, Silver is trading higher at 22.70. We have support from 21.90/22.50 where I will again be a buyer with a 21.35 stop. If I am taken long I will have a T/P level at 22.85.

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

Hi Everyone

In contrast to yesterday the S&P rallied further – up 125 handles off yesterday’s low, hitting my initial 4398 sell level before trading  lower to my 4387 T/P level and I am now flat
The Dow traded higher to my 34755 second sell level, for a now 34680 average short position.
I will now raise my T/P level on this position to 34640
Silver traded lower to my 22.40 buy level and I am still long with a lower 22.75 T/P level
Earlier the Dollar hit my 94.10 T/P level and I am now flat
Kind Regards
Bryan
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