U.S. Equity Markets eased off their highs to start the week, finishing the day lower, led by the NASDAQ which ended yesterday’s session with a loss of 0.36%. Markets declined from their highs set at the end of last week. There were not too many headlines driving the move. For one, investors are awaiting more economic data (on inflation and retail sales) later this week. And earnings season kicks off as well. So, investors are waiting for these events before placing any large bets on the market. There were a few things investors watched, though. Federal Reserve Chairman Jerome Powell said the central bank believes economic growth is gathering speed, strong job creation will start right now, and the outlook has “brightened substantially.” There are reports that the White House is still open to compromise on an infrastructure bill, while still preparing to push it through using reconciliation. And yesterday’s three-year and 10-year note auctions went off without a hitch… That should ease concerns around calls for a sharp move higher in Interest Rates. But again, all eyes are on the events later in the week for any catalysts on a market move. European Markets began the week with mixed results. European Union Trade Chief Valdis Dombrovskis said it had suggested suspending trade tariffs with the U.S for the next six months in an effort to settle an aircraft subsidy dispute. European Council President Charles Michel said the EU’s $892 billion recovery fund is “very robust” and will help the economy recover. Britain’s daily coronavirus infections hit the lowest level since September as pubs and restaurants with outdoor seating, hair salons, and non-essential shops prepared to reopen. European Union coronavirus vaccinations rose to 93.9 million yesterday, with a daily average of 2.1 million doses administered over the last week. Elsewhere, Bitcoin jumped 3.75% on optimism for more corporate adoption, while Gold closed 0.76% lower on little news.
To mark my 2300th 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 finished with a gain of 180 points yesterday and is now down 157 points for April, having ended March with an impressive gain of 3769 points, having made 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 0.02% lower at a price of 4127.
The Dow Jones Industrial Average closed 55 points lower for a 0.16% loss at a price of 33,745
The NASDAQ 100 closed 0.19% lower at a price of 13,819.
The Stoxx Europe 600 Index closed 0.2% lower.
Yesterday, the MSCI Asia Pacific Index fell 0.3%.
Yesterday, the Nikkei closed 0.77% lower at a price of 29,538.
The Bloomberg Dollar Spot Index closed 0.1% lower
The Euro closed 0.2% higher at $1.1915.
The British Pound closed 0.4% higher at $1.3745
The Japanese Yen closed 0.2% higher at 109.40 per dollar.
Germany’s 10-year yield closed one points higher at -0.29%.
Britain’s 10-year yield closed one basis points higher at 0.79%.
US 10 Year Treasury closed one basis points higher at 1.67%.
West Texas Intermediate crude closed 0.64% higher at $59.71 a barrel.
Gold closed 0.76% lower at $1,728.10 an ounce.
This morning on the Economic Front we have German Wholesale Price Index along with UK Industrial Production and GDP at 7.00 am. At 10.00 am we have the German and Euro-Zone ZEW Survey, followed by the U.S NFIB Business Optimism Index at 11.00 am. Finally, at 1.30 pm we have CPI.
June S&P 500
My latest 4113 average short position worked well with the market trading lower to my 4106 T/P level with a 4104.50 low print and I am still flat. The S&P DSI reading closed again above 90% bulls on Friday as the five-day DSI moved higher to 87.6%, matching the highest levels since this mega rally started in March 2020. The RSI closed again with a reading of 72% last night as optimism hits extreme levels. Equity Inflows have taken on epic proportions with traders piling into the highest valuations in history. There is a lot of vertical trapped money chasing these markets as this overbought market leaves so many unfilled gaps below the market. The S&P has resistance from 4132/4147 where I will again be a seller with a 4161 ‘’Closing Stop’’. The S&P has support below the market from 4020/4035 and I will be an aggressive buyer on any dip to this area with a 3999 ‘’Closing Stop’’. If I am taken short I will have a T/P level at 4120. If I am taken long I will have a T/P level at 4053.
I am still flat as the Euro missed my initial 1.1865 buy level by five points. I will now raise my buy level to 1.1840/1.1880 with a 1.1795 stop. If I am taken long I will have a T/P level at 1.1910.
June Dollar Index
No Change. I am still a small buyer on any dip lower to 91.25/91.65 with the same 90.85 stop. If I am taken long I will have a T/P level at a lower 91.95 level.
The DAX is struggling to move higher and I am still flat. I will now lower my buy level to 15015/15095 with a lower 14945 stop. If I am taken long I will have a T/P level at 15140.
Despite the UK Economy re-opening yesterday and Sterling trading weak, the FTSE closed lower. I am still flat and I will now lower my sell level to 6910/6960 with a lower 7005 stop. If I am taken short I will have a T/P level at 6875.
Dow Rolling Contract
My short 33780 Dow position worked well with the market trading lower to my 33690 T/P level and I am still flat. The Dow traded in a narrow range yesterday with volume again on the low side as just nine billion shares were traded, barley exceeding Friday’s 8.7 billion volume. The Dow has strong resistance from 33850/34010 where I will again be a seller with a 34135 ‘’Closing Stop’’. If I am taken short I will have a T/P level at 33730.
No Change. I am still a seller from 13910/14000 with the same 14085 stop. Given how overbought the NASDAQ is trading, I still do not want to be long the market at this time. If I am taken short I will have a T/P level at 13850.
Thankfully, the Bund rallied to my 171.80 T/P level on Friday’s 171.60 long position and I am now flat. The Bund traded the rest of yesterday’s session sideways to lower The Bund has support from 170.35/170.75 where I will again be a buyer with a 169.95 stop. If I am taken long, I will have a T/P level at 171.10
Gold Rolling Contract
As I am now long Silver, I will lower my Gold buy level to 1702/1716 with a lower 1689 stop. If I am taken long I will have a T/P level at 1723.
Silver Rolling Contract
Silver traded lower to my 24.80 buy level. I will add to this trade at 24.20 while leaving my stopped unchanged at 23.85. I will now lower my T/P level to 25.05 and if any of the above levels are hit, I will be back with a new update for my Platinum Members.