On 14/10/2021 TraderTalent.com is bringing you another guest post from Bryan Noble.

U.S. Equity Markets rose as the Federal Reserve teased plans for asset purchase tapering, finishing the day higher led by the NASDAQ 100 which closed higher by 0.77%. Inflation data was the big driver of the afternoon. The Consumer Price Index (“CPI”) rose 5.4% in September from the same period last year. That was above the 5.3% estimate and well above the Federal Reserve’s 2% target. This drove a lot of the choppiness early in the session, as investors digested what this could mean for central bank policy. In the evening, the Fed’s Minutes from the most recent meeting took centre stage. In the Minutes, the Fed said it could start tapering its asset purchases as soon as November. That is just about in line with what Wall Street has been expecting and is we saw markets hold on to their gains into the close – the Fed is not being seen as withdrawing support too quickly. Earnings season got off to a good start, with JPMorgan Chase (JPM) topping both earnings and revenue estimates, while also making positive comments on consumer spending. Earnings will continue to be a catalyst for markets in the coming weeks. European Markets closed lower. German application software giant SAP raised its full-year cloud and software revenue outlook by 200 million euros, saying it was seeing record adoption of its products and platform. Euro-Zone Industrial Production data for August was stronger than expected but fell versus July, due to supply issues for German automakers. French President Emmanuel Macron announced a new $33 billion plan to revive the country’s industrial production and support economic growth. In Asia, China’s export figures for September exceeded expectations, rising versus August, on record demand as transportation delays likely pulled forward holiday spending. Japan’s government was said to consider easing the approval system for COVID treatments and vaccines to increase emergency use. Apple suppliers dropped after Bloomberg reported the ongoing semiconductor supply shortage will cause the iPhone maker to reduce fourth-quarter production by 10 million units. South Korea’s unemployment rate for September was in line with expectations, as the economy added the most jobs in a month since March 2014 on coronavirus vaccine uptake. Elsewhere, Gold rose 1.90% on Dollar weakness, while Bitcoin jumped 4% as Fidelity said that the cryptocurrency could hit $100,000 in the next few years.

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 80 points yesterday and is now ahead by 903 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 0.30% higher at a price of 4363.

The Dow Jones Industrial Average closed 1 point lower for a 001% loss at a price of 34,377.

The NASDAQ 100 closed 0.77% higher at a price of 14,774.

The Stoxx Europe 600 Index closed 0.6% lower.

Yesterday, the MSCI Asia Pacific Index fell 0.4%.

Yesterday, the Nikkei closed 0.32% lower at a price of 28,140.

Currencies

The Bloomberg Dollar Spot Index closed 0.5% lower.

The Euro closed 0.5% higher at $1.1594.

The British Pound closed 0.6% higher at 1.3656.

The Japanese Yen rose 0.35%, closing at $113.22.

Bonds

Germany’s 10-year yield closed four points lower at -0.13%.

Britain’s 10-year yield closed four basis points lower at 1.10%.

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

Commodities

West Texas Intermediate crude closed 016% lower at $80.92 a barrel.

Gold closed 1.90% higher at $1,792.10 an ounce.

This morning on the Economic Front we have no data of note from either the Euro-Zone or the UK. At 1.30 pm we have U.S. Weekly Jobless Claims and PPI. Finally, we have a speech from Fed Member Williams at 6.00 pm.

December S&P 500

Despite the S&P trading in a wide range yesterday, the VIX managed to close 6% lower at a price of 18.64. Bond yields closed lower on the blatant admission that both the Fed and ECB will introduce more QE to prevent a market sell-off. At the same time the Bond buying over the last few years has caused massive Housing Bubbles and Housing unaffordability. Despite CPI printing higher than expected U.S Indexes reversed earlier losses to close positive. I am still flat the S&P. We have resistance from 4378/4393 where I will be a small seller with a 4411 ‘’Closing Stop’’. I will now raise my buy level to 4328/4343 with a higher 4315 ‘’Closing Stop’’. If I am taken short I will have a T/P level at 4366. If I am taken long I will have a T/P level at 4356.

EUR/USD

The Euro rallied yesterday. I am still long at price of 1.1590 from last week with the same 1.1605 T/P level. I will now raise my stop on this position to 1.1549.

December Dollar Index

The Dollar just missed my sell level before falling 0.5% and I am still flat. I will now lower my sell level to 94.30/94.70 with a lower 95.01 stop. If I am taken short I will have a T/P level at 94.00.

December DAX

It is very hard to be short the DAX when the ECB will do everything in their power to keep Bond Yields negative through their massive bond buying programme. This is happening against a soaring inflationary background. Thankfully we have had no sell level in the DAX and are still flat. I will now raise my buy level to 14980/15060 with a higher 14895 stop. If I am taken long I will have a T/P level at 15110.

December FTSE

The FTSE rallied hard yesterday and I am still flat as the market is now on a buy signal. We have short-term support from 7040/7090 and I will be a buyer in this area with a 6985 stop. If I am taken long  I will have a T/P level at 7130.

Dow Rolling Contract

My Dow plan worked well with the market hitting my 34150 buy level with a low of 34110 before turning around and rallying 300 points. I covered this position at my 34230 revised T/P level and I am still flat. The Dow has resistance from 34630/34780 where I will be a small seller with a 34905 ‘’Closing Stop’’. We have support from 33900/34050 where I will be an aggressive buyer with a 33775 ‘’Closing Stop’’. If I am taken short I will have a T/P level at 34495. If I am taken long  I will have a T/P level at 34195.

December NASDAQ

With 10 Year Treasuries falling another four basis points to 1.53%, the NASDAQ 100 was the strongest of the U.S. Indexes yesterday. I am still flat as I had no sell level in this market. We have resistance from 14895/14980 where I will be an aggressive seller with a 15075 ‘’Closing Stop’’. If I am taken short I will have a T/P level at 14835.

December Bund

More QE from the ECB yesterday saw Bund Yields fall four basis points to -13. Given the level of Government Debt, the ECB will continue with aggressive QE as they cannot afford yields to rally despite the fact that we all know there is no chance of inflation being ‘’transitory’’. The Bund has support from 167.80/168.40 and I will move my buy level to this area with a 167.25 stop. If I am taken long I will have a T/P level at 168.78.

Gold Rolling Contract

Gold surged 2% yesterday, and is back on a buy signal after closing over 1770. I will now raise my buy level to 1754/1769 with a 1743 tight stop. If I am taken long I will have a T/P level at 1778.

Silver Rolling Contract

Silver rallied hard yesterday and I am still flat. I will now raise my  buy level to 22.10/22.70 with a higher 21.65 stop. If I am taken long  I will have a T/P level at 23.10.

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