U.S. Equity Markets bounced around for most of yesterday before selling off into the close, finishing the day lower led by the S&P which finished the session with a loss of 0.85%. The VIX which had been lower for most of the session, closed 8% higher. Federal Reserve Vice Chairman Richard Clarida said there is still a lot of work to be done before the economy meets the central bank’s targets for removing support. Federal Reserve Bank of Dallas President Robert Kaplan said he anticipates inflation will moderate next year as supply-demand imbalances normalize, supporting the “transitory” inflation narrative. And Housing market data were also in focus. April’s Housing Starts and Building Permits missed estimates, with housing starts falling sharply from March. This sparked fears of a slowdown in the housing market, even though demand remains elevated (as seen in yesterday’s NAHB Housing Market Index). Investor sentiment also made headlines, after the Bank of America Fund Managers survey highlighted optimism on Wall Street. European Markets closed higher. Italy’s government was said to discuss the removal of a national curfew in an effort to support economic growth, as the number of COVID-19 infections has eased. The Netherlands was said to be preparing to roll back its coronavirus-related social-distancing restrictions, as the pace of vaccinations has eased pressure on the country’s hospital system. German Health Minister Jens Spahn said all adults in the country will be eligible to receive COVID-19 vaccines starting June 7. In Asia, Japan’s preliminary first-quarter gross domestic product data were weaker than expected, falling back into contraction territory, as renewed social-distancing restrictions weighed on economic activity. The People’s Bank of China added roughly $16 billion worth of liquidity to the financial system on Monday, easing concerns about policy tightening. Reserve Bank of Australia meeting minutes showed policy makers were willing to expand bond purchases in order to meet its target of full employment and support growth. India’s wholesale price data for April were stronger than expected, hitting a nine-year high, as the data laps easy year-over-year comparisons. Elsewhere, Bitcoin rebounded from yesterday’s sell-off before falling 2.05% into the New York close, while Oil fell 1.04% 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 lost 160 points yesterday and is now ahead by 1059 points for May having closed April with a gain of 1244 points, 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 0.85% lower at a price of 4127.
The Dow Jones Industrial Average closed 267 points lower for a 0.78% loss at a price of 34,060.
The NASDAQ 100 closed 0.72% lower at a price of 13,217.
The Stoxx Europe 600 Index closed 0.6% higher.
Yesterday, the MSCI Asia Pacific Index rose 0.7%.
Yesterday, the Nikkei closed 2.09% higher at a price of 28,406.
The Bloomberg Dollar Spot Index closed 0.3% lower
The Euro closed 0.5% higher at $1.2221.
The British Pound closed 0.3% higher at 1.4181.
The Japanese Yen rose 0.4%, closing at $108.85.
Germany’s 10-year yield closed one basis points higher at -0.10%.
Britain’s 10-year yield closed one basis points lower at 0.86%.
US 10 Year Treasury closed one basis points lower at 1.64%.
West Texas Intermediate crude closed 1.18% lower at $65.49 a barrel.
Gold closed 0.13% higher at $1,868.30 an ounce.
This morning on the Economic Front we have UK CPI, PPI and the Retail Price Index at 7.00 am. This is followed by Euro-Zone CPI at 10.00 am and the U.S MBA Mortgage Applications at 11.00 am Finally, we have the Minutes from last Month’s FOMC Meeting at 7.00 pm.
June S&P 500
Tops in markets are a process and extremely difficult to trade especially when the Fed are pumping so much money into the system on a Monthly Basis Everybody knows that when they stop there is no one left to buy and the market will sink. The big question is how long do they keep these fake markets from falling. The S&P’s late sell-off did not suit as I was stopped out of my 4131 long position at 4115 on the close and I am still flat. If the S&P can break and close below 4100, we could well see a quick test of the 50-Day Moving Average which comes in today at a price of 4074. I will be an aggressive buyer from 4067/4082 with a 4055 tight ‘’Closing Stop’’. I will now lower my sell level to 4140/4155 with a 4167 ‘’Closing Stop’’. If I am taken long I will have a T/P level at 4095. If I am taken short I will have a T/P level at 4130.
The Euro traded higher to my 1.2215 sell level. I am still short as the market is overbought. I will now raise my T/P level to 1.2180 while lowering my stop on this position to 12251.
June Dollar Index
I am still long and so far wrong at 90.35 from last week. I will now lower my exit level to a loss at 90.10 while leaving my 89.65 stop unchanged.
The DAX just missed my 15580 sell level before following the US Indexes lower into the New York close. I will now lower my sell level to 15405/15485 with a lower 15545 stop. If I am taken short I will have a T/P level at 15360.
Late in the New York session the FTSE hit my buy range and I am now long in small size at 6980. I will now lower my T/P level on this position to 7010. I will add to this trade at 6930 while leaving my 6895 stop unchanged. If any of the above levels are hit I will be back with a new update for my Platinum Members.
Dow Rolling Contract
As I was long both the S&P and NASDAQ, I waited to buy the Dow which I did near the close at a price of 34000. I will add to this trade at 33900 while lowering my T/P level to 34120. Meanwhile, I will leave my 33825 ‘’Closing Stop’’ unchanged.
The NASDAQ traded lower to my 13200 buy level. I am still long and I will now lower my T/P level on this position to 13250. I will add to this trade at 13100, while leaving my 12995 ‘’ Closing Stop’’ unchanged.
The Bund again traded in a narrow range yesterday. I am still long at 169.30 with the same 169.35 T/P level. I will also leave my 168.65 ‘’Closing Stop’’ unchanged and if any of the above levels are hit I will be back with a new update for my Platinum Members.
Gold Rolling Contract
No Change. I am still a buyer from 1815/1827 with the same 1799 stop. If I am taken long I will have a T/P level at 1835.
Silver Rolling Contract
I am still flat and today, I will again raise my buy level to 27.20/27.80 with a higher 26.85 tight stop. If I am taken long I will have a T/P level at 28.15.
Your Platinum Subscription intraday updates will appear here once they are published.