U.S. Equity markets traded in wide range before ending yesterday’s session mixed as investors digest the start of earnings season. The earnings season officially kicked off – with reports from JPMorgan (JPM) and Goldman Sachs (GS). Both companies handily beat earnings and revenue estimates, with JPMorgan CEO Jamie Dimon reiterating his stance that the U.S. economy is set for multiple years of strong growth. Vaccine news was also positive, after Pfizer CEO Albert Bourla said that the company could deliver 10% more doses of its COVID-19 vaccine by the end of May than previously agreed, boosting the supply outlook. And the Federal Reserve’s most recent Beige Book highlighted that the economic recovery was accelerating going into April. The pause on the Johnson & Johnson vaccine will still weigh on sentiment until the issues are cleared up. In a speech yesterday afternnon, Federal Reserve chair Jerome Powell said that the central bank would dial back its bond purchase before it raised Interest Rates. But he reiterated that this would happen no time soon. Investors will continue to watch the rollout of earnings reports for any major catalysts in the markets. European Markets closed higher. European Commissioner for Economy Paolo Gentiloni said the ECB might raise its guidance for 2021 growth when it releases its latest update in May. European Central Bank Governing Council Member Francois Villeroy de Galhau said it should use its 2% inflation goal as a target and not a ceiling with regards to stimulus. Euro-Zone Industrial Production data for February were stronger than expected, but fell versus January, signalling economic activity slowed. Early yesterday, Johnson & Johnson announced that it had halted the rollout of its vaccine across Europe over blood clot fears. Elsewhere, Oil gained 4.60% on a large drawdown in U.S. crude inventories while Gold reversed Tuesday’s gain by closing lower by 0.63%.
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 230 points yesterday and is now ahead by 128 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 0.41% lower at a price of 4124.
The Dow Jones Industrial Average closed 53 points higher for a 0.16% gain at a price of 33,730.
The NASDAQ 100 closed 1.31% lower at a price of 13,803.
The Stoxx Europe 600 Index closed 0.2% higher.
Yesterday, the MSCI Asia Pacific Index fell 0.1%.
Yesterday, the Nikkei closed 0.28% higher at a price of 29,620.
The Bloomberg Dollar Spot Index closed 0.3% lower
The Euro closed 0.3% higher at $1.1981.
The British Pound closed 0.2% higher at $1.3775.
The Japanese Yen closed 0.2% higher at 108.89 per dollar.
Germany’s 10-year yield closed four points higher at -0.26%.
Britain’s 10-year yield closed five basis points higher at 0.82%.
US 10 Year Treasury closed two basis points higher at 1.64%.
West Texas Intermediate crude closed 4.60% higher at $63.17 a barrel.
Gold closed 0.63% lower at $1,732.20 an ounce.
This morning on the Economic Front we have German CPI at 7.00 am. This is followed by U.S Weekly Jobless Claims, Retail Sales, Philly Fed and the New York Empire Manufacturing Index at 1.30 pm. At 2.15 pm we have Industrial Production and Capacity Utilisation. Finally, at 3.00 pm we have Business Inventories and the NAHB Housing Market Index.
June S&P 500
It took a while but finally the S&P traded lower to my 4125 T/P level on Tuesday’s 4135 short position and I am now flat. I am getting more and more certain that both the S&P and Dow are close to at least a short-term top. Today. I will again be a seller from 4132/4148 with the same 4161 ‘’Closing Stop’’. My only interest in buying the S&P is still from 4020/4038 with a wider 3999 ‘’Closing Stop’’. If I am taken short I will have a T/P level at 4122. If I am taken long I will have a T/P level at 4053.
The Euro fell shy of my 1.1920 buy level before rallying to close higher at 1.1980. I am still flat and I will now raise my buy level to 1.1910/1.1950 with a higher 1.1875 stop. If I am taken long I will have a T/P level at 1.1985.
June Dollar Index
No Change. I am still a small buyer from 91.05/91.45 with the same 90.65 stop. If I am taken long I will have a T/P level at 91.75.
I am still flat the DAX as the market again traded heavy. The DAX has resistance from 15270/15340 where I will be a small seller with a 15385 stop. I will now lower my buy level to 14980/15060 with a lower 14925 tight stop. If I am taken short I will have a T/P level at 15225. If I am taken long I will have a T/P level at 15105.
I am still flat and today I will tighten my sell range to 6930/6980 while leaving my stop unchanged at 7005. If I am taken short I will have a T/P level at 6895.
Dow Rolling Contract
My Dow plan worked well as the market rallied to my 33880 sell level before trading lower to my 33790 revised T/P level and I am now flat. As I mentioned in my S&P Commentary above I am convinced that the Dow is close to at least a short-term high. Today, I will again be a seller from 33880/34050 with a higher 34205 ‘’Closing Stop’’. I still do not want to be long the Dow at this time. If I am taken short I will have a T/P level at 33740.
Late in the European session the Bund traded lower to my 170.85 average buy level. I am still long and I will now lower my T/P level on this trade to 171.00. I will also raise my stop on this position to a tight price of 170.39. If any of the above levels are hit I will be back with an update for my Platinum Members.
Gold Rolling Contract
The boring sideways price action continues, and I am still flat. I will now lower my buy level to 1700/1715 with a lower 1689 stop. If I am taken long I will have a T/P level at 1723.
Silver Rolling Contract
I am still flat and I will also lower my buy level to 24.20/24.80 while leaving my stop unchanged at a tight 23.81. If I am taken long I will have a T/P level at 25.05.
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