On 15/07/2021 TraderTalent.com is bringing you another guest post from Bryan Noble.
U.S. Equity Markets rose to new highs as Fed Chair Jerome Powell assured that the central bank would not pull support from the economy, before selling off into the close, led by the NASDAQ Composite which ended yesterday’s session with a loss of 0.22%. Investors had to digest inflation data and testimony from Federal Reserve Chair Jerome Powell. Producer Price Index (“PPI”) rose more than expected, fuelling the inflation fears. These data indicate that manufacturers’ input costs keep rising, making it likely that they will pass them onto customers. Powell was the other big story, as he gave Testimony before Congress. Powell said that the Federal Reserve still thinks it is too soon to remove economic support. He stated the Fed remains committed to attaining its goals of maximum employment and stable prices. This implies that bond purchases are not going away until the Fed feels the economy has recovered the jobs lost due to the pandemic. This helped ease some of the fears from the inflation data, pushing markets higher European Markets closed mixed. Trade representatives from the U.S. and U.K. agreed to strengthen bilateral ties going forward, including working together on competitive threats posed by China. British labour redundancies fell to the lowest level since 2015 in June, as businesses look to hire to keep up with the economic restart. European Central Bank Governing Council member Constantinos Herodotou said it is prepared to take action should inflation not prove transitory. In Asia, the White House was said to be preparing to warn American companies about the risks of doing business in Hong Kong, including the China’s ability to access data stored there. Japanese manufacturers’ business confidence rose in July according to the Reuters/Tankan survey, hitting its highest level since November 2018. South Korea Prime Minister Kim Boo-kyum said the government would raise coronavirus restrictions across most of the country as infections continue to rise. The Westpac-Melbourne Institute’s Australian Consumer Confidence data for July rose versus June, indicating households are increasingly positive about their income potential. Elsewhere, Oil fell 3.38% as investors weighed conflicting reports of a production agreement between OPEC and the United Arab Emirates, while Bitcoin rose 1.5% in Dollar weakness.
For anyone following my Platinum Service it made 95 points yesterday and is now ahead by 970 points for July after making 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, 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 0.12% higher at a price of 4374.
The Dow Jones Industrial Average closed 44 points higher for a 0.13% gain at a price of 34,933.
The NASDAQ 100 closed 0.17% higher at a price of 14,900.
The Stoxx Europe 600 Index closed 03% lower.
This morning, the MSCI Asia Pacific Index fell 0.4%.
This morning, the Nikkei closed 1.24% lower at a price of 28,254.
The Bloomberg Dollar Spot Index closed 0.4% lower.
The Euro closed 0.4% higher at $1.1830.
The British Pound closed 0.2% higher at 1.3853
The Japanese Yen rose 0.7%, closing at $109.76.
Germany’s 10-year yield closed four basis points lower at -0.32%.
Britain’s 10-year yield closed one basis points higher at 0.63%.
US 10 Year Treasury closed eight basis points lower at 1.33%.
West Texas Intermediate crude closed 3.38% lower at $74.62 a barrel.
Gold closed 0.95% higher at $1,826.10 an ounce.
This morning on the Economic Front we already had the release of UK June Jobless Claims which fell 115K versus -92.6K last month. At 1.30 pm we have U.S. Weekly Jobless Claims, New York Empire State Manufacturing Index, Export Price Index and the Philly Fed Survey. Finally, we have Industrial Production and Capacity Utilisation at 2.15 pm while Fed Chair Powell concludes his Testimony to Congress at 2.30 pm.
Earnings due from Cintas this afternoon.
September S&P 500
My S&P plan worked well with the market making another new all-time high, hitting my 4380 sell level before trading lower to my 4372 revised T/P level and I am still flat. After the Nikkei got hit hard overnight the S&P is trading lower at 4363 this morning. My only interest in buying the market is still on a further dip lower to 4323/4338 with the same 4309 ‘’Closing Stop’’. The S&P has resistance from 4379/4394 where I will again be a seller with a 4405 ‘’Closing Stop’’. If I am taken long I will have a T/P level at 4348. If I am taken short I will have a T/P level at 4370.
My latest 1.1810 average long position worked well with the market trading higher to my 1.1825 T/P level and I am now flat. Today. I will again be a buyer from 1.1770/1.1810 with a lower 1.1735 stop. If I am taken long I will have a T/P level at 1.1840.
September Dollar Index
I am still flat and I will now lower my sell level to 92.75/93.15 with a tight 93.51 stop. If I am taken short I will have a T/P level at 92.45.
The DAX continues to trade near all-time highs albeit in a small range. I refuse to chase this market higher, leaving my 15490/15550 buy level unchanged with the same 15435 stop. Again, if I am taken long and subsequently stopped out of this position I will be a more aggressive buyer from 15240/15310 with the same 15175 stop. If I am taken long I will have a T/P level at 15590. If I am taken long a second time I will have a T/P level at 15375.
The FTSE continues to trade heavy. I will now lower my buy level to 6900/6955 with a lower 6865 stop. If I am taken long I will have a T/P level at 6985.
Dow Rolling Contract
The most recent result of the Weekly Investors’ Intelligence Advisors’ Survey shows the percentage of bulls rose to 61.2%, a level that has had led to aggressive sell-offs. With the percentage of bears dropping to just 15.3%, there are now four times as many bulls as bears. Since the 1987 Crash, a span of 34 years, only 1.5% of the total weekly readings in the bull/bear ratio have seen higher than the 4-to-1ratio of the past week. At the same time, the 8-Day DSI Indicator is at 84.3% implying a major reversal is due for the U.S Indexes. I am still flat the Dow as the market just missed my sell level yesterday by 30 points. Today, I will lower my sell level to 35075/35225 with a lower 35345 ‘’Closing Stop’’. Meanwhile, I will leave my 34500/34650 buy level unchanged with the same 34395 ‘’Closing Stop’’. If I am taken short I will have a T/P level at 34975. If I am taken long I will have a T/P level at 34770.
No Change. I am still short at an average rate of 14860. I will now raise my T/P level to 14845 while leaving my 15005 ‘’Closing Stop’’ unchanged. I will be an aggressive buyer on any sell-off to 14500/14580 with a 14395 ‘’Closing Stop’’. If I am taken long I will have a T/P level at 14645.
The BUND is opening in yesterday’s sell range this morning. I have not gone short yet and I am still flat. I will be a seller from 174.90/175.50 with a wider 176.01 stop. If I am taken short I will have a T/P level at 174.60.
Gold Rolling Contract
I am still flat and I will now raise my buy level to 1780/1795 with a 1769 stop. If I am taken long I will have a T/P level at 1803.
Silver Rolling Contract
Silver again missed my buy level and I am still flat. I will now raise my buy level to 25.50/26.10 with a 24.95 higher stop. If I am taken long I will have a T/P level at 26.40.
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