U.S. Equity Markets closed higher to end the week as the VIX fell by a further 2.6%, following a low volatile trading session. The NASDAQ led the rally with a gain of 0.35%. The S&P 500 Index made another closing high. It also marked the third-straight week of gains for the Index. Infrastructure was in the news after a bipartisan group of senators said they have reached a compromise on an infrastructure deal that would be fully paid for without raising taxes. But the proposal will be hard to sell to politicians on both sides, making passing any bill difficult. European Markets closed higher. European Central Bank President Christine Lagarde reiterated a commitment to increased central bank bond purchases to prevent the tightening of financial conditions. British Industrial Production data for April were weaker than expected, declining versus March, as the manufacturing of basic pharmaceuticals and transport equipment was a drag. The International Energy Agency said global crude demand will reach pre-pandemic levels by the end of next year. In Asia, China’s Banking and Insurance Regulatory Commission Chairman Guo Shuqing warned against speculating in the futures market, as the government tries to rein in commodity prices. The Japanese Ministry of Finance’s second-quarter business outlook survey showed companies are increasingly optimistic about business potential. The South Korean Ministry of Trade’s export price index data for May rose versus April, signalling global demand for technology goods remains strong. Elsewhere, Bitcoin closed 2.25% higher as the Basel Committee on Banking Supervision’s proposal to classify the digital currency as a risky asset pulls it further into traditional finance, while Oil closed at a three year high with a gain of 0.80%.
To mark my 2325th 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 15 points on Friday and is now ahead by 929 points for June having made 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 0.19% higher at a price of 4247.
The Dow Jones Industrial Average closed 13 points higher for a 0.04% gain at a price of 34,479.
The NASDAQ 100 closed 0.27% higher at a price of 13,998.
The Stoxx Europe 600 Index closed 0.3% higher.
Last Friday, the MSCI Asia Pacific Index fell 0.1%.
Last Friday, the Nikkei closed 0.04% lower at a price of 28,948.
The Bloomberg Dollar Spot Index closed 0.4% higher.
The Euro closed 0.5% lower at $1.2107.
The British Pound closed 0.5% lower at 1.4112.
The Japanese Yen fell 0.3%, closing at $109.67.
Germany’s 10-year yield closed one basis points lower at -0.27%.
Britain’s 10-year yield closed four basis points lower at 0.70%.
US 10 Year Treasury closed one basis points higher at 1.45%.
West Texas Intermediate crude closed 0.80% higher at $70.74 a barrel.
Gold closed 0.94% lower at $1,875.1.20 an ounce.
This morning on the Economic Front we have Euro-Zone Industrial Production at 10.00 am, which is the only data of note to be released on either side of the Atlantic.
June S&P 500
The Short-Term Trends in the Blue- Chip Stock Indexes are starting to mirror the trends in early 2000, at the end of the dot-com mania, which led to a 39% fall in the Dow and 51% decline in the S&P. Back then, The Dow topped on January 14, 2000, but the S&P rallied to a new high in March, peaking on March 24, 2000. Currently the Dow Jones made an intra-day rally high at 35,091 on May 10, 2021. It is now a month later and the S&P is making a new all-time high at 4250 as I go to press, which is unconfirmed by the Dow. Sentiment is clearly similar now to that of the dot-com mania. Instead of absurd valuations related to Technology and Internet Stocks, there are now absurd valuations related to MEME stocks from online chat rooms. SPACs, which are investment vehicles that raise money with no specified purpose at the time of the capital infusion; Electric Companies that cannot seem to produce any electric vehicles and Bitcoin, a difficult-to-use Cryptocurrency that consumes an inordinate amount of energy to produce. I am still flat the S&P and today, I will raise my buy level to 4218/4233 with a higher 4207 ‘’Closing Stop’’. I will now raise my sell level to 4263/4278 with a higher 4291 ‘’Closing Stop’’. If I am taken long I will have a T/P level at 4244. If I am taken short I will have a T/P level at 4254.
The Euro traded lower to my 1.2130 buy level. I am still long and I will now lower my T/P level to 1.2160. I will add to this trade on any further move lower to 1.2080 with the same 12055 tight stop. 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 flat and I will now raise my buy level to 89.40/89.90 with a tight 89.05 stop. If I am taken long I will have a T/P level at 90.20.
I am still flat and today, I will again raise my buy level to 15400/15480 with a tight 15335 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 15530.
The FTSE rose on Friday, albeit still trading in a narrow range and I am still flat. This sideways/higher price action may continue until we get Friday’s June Contract Expiration. I will now raise my buy level to 7010/7060 with a higher 6965 stop. If I am taken long I will have a T/P level at 7095.
Dow Rolling Contract
Frustratingly, the Dow missed my 34300 buy level by 22 points before rallying to sit at 34490 this morning and I am still flat. I will now raise my buy level to 34200/34360 with a higher 34105 ‘’Closing Stop’’. I will not chase the Dow lower, leaving my 34810/34980 sell level unchanged with the same 35105 ‘’Closing Stop’’. If I am taken long I will have a T/P level at 34460. If I am taken short I will have a T/P level at 34700.
I am still flat as I continue to be an aggressive buyer on any dip lower to 13820/13740 with a higher 13655 ‘’Closing Stop’’ stop. The NASDAQ has resistance from 14080/14150 where I will be a small seller with a 14225 ‘’Closing Stop’’. If I am taken long I will have a T/P level at 13890. If I am taken short I will have a T/P level at 14020.
After the Bund traded higher to my 173.10 sell level we had a small sell-off, enabling me to cover this position at my revised 172.95 T/P level and I am still flat. The Bund is overvalued with resistance from 173.30/173.80 where I will be a seller with a 174.15 stop. If I am taken short I will have a T/P level at 173.00.
Gold Rolling Contract
Gold continues to find strong resistance at the 1900/1910 area and I am still flat. We have short-term support from 1838/1852, where I will now lower my buy level to with an 1829 stop. If I am taken long I will have a T/P level at 1860.
Silver Rolling Contract
No Change. I am still a buyer on any dip lower to 26.90/27.50 with the same 26.45 stop. If I am taken long I will have a T/P level at 27.80.
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