On 08/07/2021 TraderTalent.com is bringing you another guest post from Bryan Noble.
U.S. Equity Markets reversed earlier losses to close higher, led by the S&P which closed at yet another new all-time high with a gain of 0.34%. Growth optimism led the way in the early morning, after reports that the St. Louis Fed’s second-quarter Gross Domestic Product “nowcast” model expects growth of 8.9% versus its initial projection of 8.2%. In terms of economic data, Job Openings rose to a new all-time high in May, showing that businesses are ready to hire to meet high demand throughout the summer. Later in the day, markets were focused on the Fed’s Minutes from the recent meeting. The Minutes did not tell us anything new, with the Fed saying that the economy still has a lot of progress to make to meet the central bank’s goals. That indicates that policy will remain in place. European Markets again closed higher. European and U.S. officials said Iran’s decision to start manufacturing enriched uranium metal capable of developing atomic weapons threatened nuclear accord talks. European Central Bank Governing Council member Ignazio Visco said he anticipates economic output of around 5% this year, with expansion likely to continue for the next two years. German Industrial Production fell unexpectedly in May, as the German economic ministry highlighted supply-chain constraints. In Asia, Chinese Foreign Ministry Spokesman Zhao Lijian said the government will never allow any foreign country to interfere in Taiwan, as it would undermine national sovereignty. Japan’s Osaka prefecture was said to be exploring a request for the extension of COVID-19-related restrictions, stoking domestic growth concerns. Technology giant Samsung Electronics forecast second-quarter operating profit of roughly $11 billion versus the $9.9 billion expectation, likely driven by strong memory chip sales. Australia’s largest city, Sydney, extended coronavirus-related social-distancing restrictions by a week due to an increasing number of new infections. Elsewhere, Oil fell 1.84% on reports that the United Arab Emirates was set to boost production while Bitcoin is trading lower by 1.50% this morning on no news.
To mark my 2350th 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 28 points yesterday and is now ahead by 435 points for July after making 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, 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 0.34% higher at a price of 4358.
The Dow Jones Industrial Average closed 104 points higher for a 0.30% gain at a price of 34,681.
The NASDAQ 100 closed 0.16% higher at a price of 14,810.
The Stoxx Europe 600 Index closed 0.4% higher.
This morning, the MSCI Asia Pacific Index fell 0.3%.
This morning, the Nikkei closed 088% lower at a price of 28,118.
The Bloomberg Dollar Spot Index closed 0.2% higher.
The Euro closed 0.2% lower at $1.1801.
The British Pound closed 0.2% lower at 1.3785.
The Japanese Yen rose 0.4%, closing at $110.22.
Germany’s 10-year yield closed five basis points lower at -0.31%.
Britain’s 10-year yield closed four basis points lower at 0.59%.
US 10 Year Treasury closed seven basis points lower at 1.30%.
West Texas Intermediate crude closed 1.84% lower at $73.76 a barrel.
Gold closed 0.1% higher at $1,801.10 an ounce.
This morning on the Economic Front we already had the release of the German Trade Balance which printed EUR 12.6 Billon versus 15.4 billion expected. At 1.30 pm we have U.S Weekly Jobless Claims and a speech from ECB President Lagarde. Finally, at 8.00 pm we have U.S. Consumer Credit.
September S&P 500
The S&P rebounded from Tuesday’s 4305 low print to hit a new all-time high of 4352. For anyone who did sell the S&P at or near my initial 4348 sell level, this plan worked well with the market trading lower at 4325 this morning and I would now take this gain if you have not done so already. I did not sell the S&P myself as the market did not hit my revised 4356 sell price and I am still flat. The S&P RSI close above 72 last night as this extended market becomes even more overbought. The S&P needs to break and close below Tuesday’ 4305 low print for me to feel comfortable that we have at least seen a short-term top. I will now raise my buy level to 4300/4314 with a 4289 ‘’Closing Stop’’. I will be a small seller on any further rally to 4355/4370 with a 4381 ‘’Closing Stop’’. If I am taken long I will have a T/P level at 4325. If I am taken short I will have a T/P level at 4345.
No Change. I am still long at 1.1830 with a now lower 1.1840 T/P level. Meanwhile I will leave my 1.1775 stop unchanged and if any of the above levels are hit I will be back with a new update for my Platinum Members.
September Dollar Index
I am still short at 92.50 with the same 92.91 tight stop. I will now move my T/P level higher to 9240.
Despite the DAX having its best trading day in three weeks yesterday, the market is already trading 150 points lower from last night’s close. I still do not trust this market but as long as we continue to trade above 15300 it is difficult not to be a buyer on dips. Today, I will move my buy level higher to 15360/15440 with a higher 15295 stop. If I am taken long I will have a T/P level at 15495.
I am still flat and I will now lower my buy level to 6910/6960 with a lower 6875 stop. If I am taken long I will have a T/P level at 6990.
Dow Rolling Contract
I am still flat the Dow as the market gets hit hard this morning, trading 300 points below last night’s close. The Dow has support from 34100/34280 where I will be a buyer with a lower 34045 ‘’Closing Stop’’. I am reluctant to chase the Dow lower and I will leave my 34820/34980 sell level unchanged with the same 35105 ‘’Closing Stop’’. If I am taken long I will have a T/P level at 34400. If I am taken short I will have a T/P level at 34720.
Amazon’s rally over the past few days has seen the wealth of Jeff Bezos increase by over $8bn. This is a further example of the disconnect to reality as reflected in the NASDAQ with the 14 -Day RSI touching a severely overbought 80 print during yesterday’s session. My NASDAQ plan worked well with the market trading higher to my 14845 sell level before selling off to my 14785 T/P level and I am now flat Today, I will again be a seller from 14850/14930 with the same 15005 ‘’Closing Stop’’. I will now raise my buy level to 14600/14680 with a higher 14525 ‘’Closing Stop’’. If I am taken long I will have a T/P level at 14745. If I am taken short I will have a T/P level at 14790.
Incredibly, the Bund has rallied 90 points since I posted yesterday morning to sit at 174.40, pushing yields to negative 33 basis points. Thankfully, I had a tight stop on my 173.18 latest short position which was hit at 173.65 shortly after I posted and I am now flat. The Bund has resistance from 174.70/175.15 where I will again be a seller with a 175.51 stop. If I am taken short I will have a T/P level at 174.35.
Gold Rolling Contract
I am still flat as I continue to be a buyer on any dip lower to 1757/1772 with the same 1749 stop. If I am taken long I will have a T/P level at 1779.
Silver Rolling Contract
Silver hit my 26.35 T/P level on Tuesday’s 26.20 long position and I am now flat. We have strong support from 24.90/25.50 where I will again be a buyer with a 24.45 stop. If I am taken long I will have a T/P level at 25.80.
Your Platinum Subscription intraday updates will appear here once they are published.