On 09/11/2021 TraderTalent.com is bringing you another guest post from Bryan Noble.
U.S. Equity Markets finished the day higher, led by the Dow which again closed at a new all-time high after rising 0.29%. Markets rose after the House of Representatives passed the $1.2 trillion bipartisan infrastructure bill. This sent the bill to President Joe Biden’s desk to be signed, boosting the outlook for spending on roads, bridges, broadband, and the power grid. There were a bunch of Federal Reserve speakers yesterday afternoon, with Fed Vice Chair Richard Clarida saying that he thinks the conditions for a rate hike will be met by the end of next year. Philadelphia Fed President Patrick Harker said he does not expect the central bank to raise rates before the tapering process is done at some point next year. The U.S. also lifted the pandemic ban on international travel, spurring hope for airlines to begin to recoup some of that lost revenue and life to take another step back to “normal.” European Markets closed lower. Euro-Zone investor confidence data for November exceeded expectations, rising versus October, according to market-research firm Sentix. German government officials said tax revenue will increase by $185 billion more than forecast through 2025 thanks to the resurgence in economic growth. European Central Bank Chief Economist Philip Lane said the central bank remains committed to accommodative policy, adding inflation will ease going into next year. In Asia, China’s export growth for October was stronger than expected, as the total dollar value of goods sent abroad was just below September’s record level. Japan’s government was said to be considering a stimulus package worth $265 billion in an attempt to support economic growth. Bank of Japan meeting minutes showed policymakers supported maintaining easy-money policies as long as inflation remains weak. South Korean President Moon Jae-in’s popularity hovered just above the all-time lows in polls, as campaigning starts ahead of the March general election. Elsewhere, Oil rose 1.22% as the infrastructure bill’s passage likely means higher demand for crude, while Bitcoin surged over 8% as crypto-focused company BlockFi filed for a bitcoin spot ETF.
To mark my 2425th 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 150 points yesterday, and is now ahead by 461 points for November, after ending October with a gain of 1028 points, 2866 points in September, 1543 points in August, 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 0.09% higher at a price of 4701.
The Dow Jones Industrial Average closed 104 points higher for a 0.29% gain at a price of 36,432.
The NASDAQ 100 closed 0.14% lower at a price of 16,336.
The Stoxx Europe 600 Index closed 0.1% higher.
Yesterday, the MSCI Asia Pacific Index fell 0.2%.
Yesterday, the Nikkei closed 0.35% lower at a price of 29,507.
The Bloomberg Dollar Spot Index closed 0.2% lower.
The Euro closed 0.2% higher at $1.1587.
The British Pound closed 0.5% higher at 1.3564
The Japanese Yen rose 0.1%, closing at $113.22.
Germany’s 10-year yield closed four basis points higher at -0.24%.
Britain’s 10-year yield closed three basis points higher 0.87%.
US 10 Year Treasury closed three basis points higher at 1.49%.
West Texas Intermediate crude closed 1.22% higher at $81.71 a barrel
Gold closed 0.52% higher at $1,825.10 an ounce.
This morning on the Economic Front we have German Trade Balance and Current Account at 7.00 am, followed by the ZEW Survey at 10.00 am. Next, we have the U.S. NFIB Business Optimism Index at 11.00 am and PPI at 1.30 pm. Finally, we have speeches from ECB President Lagarde at 1.00 pm and Fed Chair Powell at 2.00 pm.
December S&P 500
The S&P has now closed higher for 17 of the past 19 trading sessions which is a new record. On top of this the S&P has now had eight consecutive record closes. Most Equity Houses are looking for the S&P to close at 5000 by the end of the year. What can go wrong when the elite are calling for this vertical rally to continue into 2022. With the 14-Day RSI above 77, I certainly will not be buying the market, preferring to short spikes, take the gain, then repeat this strategy until we finally break lower. The long awaited Trillion Dollar Infrastructure Bill was past late Friday after been watered down over the past few months and has at least been priced in 100 times during that time. Yesterday, the S&P traded the whole of my sell range for a 4698 average short position before selling off to my 4689 revised T/P level and I am now flat. With the DSI at 93% bulls, I am comfortable in selling rallies as history tells us that any move in the DSI above 90% always sees a decent correction. Even though the S&P always rallies on a Tuesday, I will be a seller today from 4698/4713 with a wider 4731 ‘’Closing Stop’’. If I am taken short I will have a T/P level at 4686.
The Euro rallied to my 1.1580 T/P level on my latest 1.1545 long position and I am now flat. Today, I will again be a buyer on any dip lower to 1.1490/1.1540 with a 1.1445 stop. If I am taken long I will have a T/P level at 1.1570.
December Dollar Index
The Dollar traded lower to my 94.10 T/P level on last week’s 94.35 short position and I am now flat. The Dollar has resistance from 94.45/94.90 where I will again be a seller with a 95.31 stop. If I am taken short I will have a T/P level at 94.15.
No Change. I am still short at 15975 with a now higher 15940 T/P level. Meanwhile, I will leave my 16105 stop unchanged and if any of the above levels are hit I will be back with a new update for my Platinum Members.
No Change. I am still a seller on any further rally to 7335/7385 with the same 7405 tight stop. If I am taken short I will have a T/P level at 7305.
Dow Rolling Contract
The Dow made a new high at 34565, before falling 200 points. Similar to Friday, the market re-grouped and rallied 100 points into the close. This move higher saw my 36450 sell level triggered. I am still short with a 36320 T/P level. I will add to this trade at 36600 while leaving my 36705 ‘’Closing Stop’’ unchanged.
I am still short at 16260 with a now higher 16240 T/P level. I will leave my stop unchanged at a ‘’Closing Price’’ of 16405 and if any of the above levels are hit I will be back with a new update for my Platinum Members.
The Bund sold off yesterday and I am still flat as I spent the session observing the price action. It makes absolutely no sense to have Bunds trading with negative yields when inflation is close to 5%. The Bund has resistance from 170.80/171.30 where I will be a seller with a 171.65 tight stop. If I am taken short I will have a T/P level at 170.45.
Gold Rolling Contract
Gold has now closed above a trendline that has held for the past 30 months. Gold has support from 1795/1810 where I will be a small buyer with a tight 1783 stop. If I am taken long I will have a T/P level at 1817.
Silver Rolling Contract
No Change. I am still a buyer on any dip lower to 23.30/23.90 with the same 22.65 stop. If I am taken long I will have a T/P level at 24.25.
Your Platinum Subscription intraday updates will appear here once they are published.