On 21/09/2021 TraderTalent.com is bringing you another guest post from Bryan Noble.
U.S. Equity Markets plummeted to start the week, led by the NASDAQ 100 which closed lower by 2.10% on day that saw the VIX rise 24%, closing at a price of 25.71. Markets trended lower as investors await tomorrow’s Federal Open Market Committee meeting – where the Federal Reserve is expected to provide information on when the central bank will begin “tapering” its bond purchases. A potential default by China’s Evergrande, the second-largest property developer in the world, weighed on the global economic growth picture as well as the U.S’s. The stock market’s bears have control of the broader market narrative. They are going to continue to try and take advantage of tapering, COVID-19, and growth fears in order to press the market lower. Meanwhile, U.S. homebuilder sentiment rose in September, reversing a three-month decline as some elevated material costs showed signs of easing. European Markets also closed lower. European Central Bank Governing Council member Gabriel Makhlouf said increasing interest rates in response to temporary inflation would be harmful to the nascent economic recovery. Germany’s ruling Christian Democratic Union party saw the opposition Social Democrats and Greens suggest they could form a coalition, potentially changing the makeup of regional politics. Commodities were under pressure on worries a growth slowdown in Asia, due to China’s Evergrande debt issues, could weigh on demand. In Asia, Chinese Premier Li Keqiang said Beijing will use policy tools to continue its efforts to stabilize commodity prices. The Bank of Japan is anticipated to leave policy unchanged when it meets later this week, but it could warn of growing risks to the economic outlook due to supply-chain disruptions. The leaders of Australia, India, Japan, and the U.S. are set to meet in Washington, D.C. later this week to discuss securing the global semiconductor supply chain. Taiwan said 10 Chinese aircraft entered its air defense identification zone on Friday, potentially stoking regional political tensions. Elsewhere, Bitcoin fell 8%, with the rest of the market, fuelled by increased regulatory concerns and investors shifting away from riskier assets, while Oil close over 1.50% lower as growth fears sparked concerns of lower demand for crude.
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 110 points yesterday and is now ahead by 1601 points for 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
The S&P 500 closed 1.70% lower at a price of 4357.
The Dow Jones Industrial Average closed 614 points lower for a 1.78% loss at a price of 33,970.
The NASDAQ 100 closed 2.10% lower at a price of 15,012.
The Stoxx Europe 600 Index closed 1.6% lower.
This morning, the MSCI Asia Pacific Index fell 0.6%.
This morning, the Nikkei closed 1.72% lower at a price of 29,976
The Bloomberg Dollar Spot Index closed 0.1% lower.
The Euro closed 0.1% lower at $1.1715.
The British Pound closed 0.4% lower at 1.3675.
The Japanese Yen rose 0.4%, closing at $109.53.
Germany’s 10-year yield closed three basis points lower at -0.31%.
Britain’s 10-year yield closed six basis points lower at 0.78%.
US 10 Year Treasury closed five basis points lower at 1.32%.
West Texas Intermediate crude closed 1.50% lower at $70.82 a barrel.
Gold closed 0.76% higher at $1,765 an ounce.
This morning on the Economic Front we have no data of note from either the UK or the Euro-Zone. At 1.30 pm we have U.S. Housing Starts and Building Permits.
September S&P 500
Yesterday was a 90% down day with 90% of the S&P stocks closing in the red and 90.7% of the volume on the Big Board was down volume. It was the first 90% down day that includes downside breadth and volume since October of last year. Yesterday’s Gap Lower has left a massive ‘’Breakaway Gap’’ from Friday’s 4425 Chicago close. However, once the S&P broke the 4300 support level we saw aggressive buying into the close and this buying continued overnight to hit a high so far for today at 4375. The S&P has strong resistance from 4393/4410 where I will be a small seller with a 4425 ‘’Closing Stop’’. Yesterday, the S&P hit my second buy level of 4369 for a 4379 average long position before unfortunately stopping me out of this position on the close at 4355 and I am still flat. With the VIX closing 23% higher, above 25, we can expect plenty of two-way trading. The S&P has strong support from 4310/4325 where I will be an aggressive buyer with a 4289 wider ‘’Closing Stop’’. If I am taken short I will have a T/P level at 4379. If I am taken long I will have a T/P level at 4339.
I am still flat the Euro. I will now raise my buy level to 1.1650/1.1695 with a 1.1595 stop. I still do not want to be short the Euro at this time. If I am taken long I will have a T/P level at 1.1730.
December Dollar Index
I am still flat the Dollar as the market traded in a narrow range over the past 24 hours. I will now lower my sell level to 93.35/93.85 with a lower 94.21 stop. If I am taken short I will have a T/P level at 93.05.
The DAX traded the whole of my buy range for a 15120 average long position before rallying to hit my 15150 revised T/P level as emailed to my Platinum Members. I am now flat with the market opening higher at 15210 this morning. We have strong support from 14950/15050 where I will again be a buyer with a tight 14885 stop. The DAX is oversold and I do not want to be short the market at this time. If I am taken long I will have a T/P level at 15120.
My FTSE plan worked well with the market trading lower to my 6795 buy level before rallying to my 6860 T/P level and I am still flat. This morning, the FTSE is following the U.S Indexes higher, trading at 6910 as I go to press. The appetite to buy the dip is ferocious, making it very difficult to be short for any length of time, as shown by the price movements since 8.30 pm last night. The FTSE has support from 6790/6840 where I will again be a buyer with a 6745 tight stop. If I am taken long I will have a T/P level at 6875.
Dow Rolling Contract
My Dow plan worked well but you had to be quick to take gains. After the Dow traded the whole of my buy range for a 34030 average long position, the market rallied to my revised 34210 T/P level and I am now flat. Subsequently the Dow made a low of 33613 before turning around to trade higher at 34200 this morning. The Dow has resistance from 34320/34470 where I will be a small seller with a 34625 ‘’Closing Stop’’. The Dow has support from 33600/33750 where I will be a strong buyer with a 33485 ‘’Closing Stop’’. If I am taken short I will have a T/P level at 34195. If I am taken long I will have a T/P level at 33930.
The NASDAQ traded the whole of my buy range for a now 15100 average long position. I will now lower my T/P level on this position to 15120. We have resistance from 15180/15250 where I will be a small seller with a 15325 tight ‘’Closing Stop’’. If I am taken short I will have a T/P level at 15120.
Shortly, after I posted yesterday morning the Bund rallied to my 171.20 T/P level on Friday’s 170.85 long position and I am still flat. The Bund is trading slightly higher at 171.50 this morning. We have support from 170.60/171.00 where I will again be a buyer with a 170.25 tight stop. If I am taken long I will have a T/P level at 171.30.
Gold Rolling Contract
Gold reversed most of Friday’s sell-off and rally to my 1767 T/P level on my 1763 latest long position and I am still flat. Gold has support from 1734/1749 where I will again be a buyer with a 1723 stop. If I am taken long I will have a T/P level at 1757.
Silver Rolling Contract
No Change. I am still a buyer on any further dip lower to 21.50/22.10 with the same 20.95 stop. If I am taken long I will have a T/P level at 22.50.
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