On 21/10/2021 TraderTalent.com is bringing you another guest post from Bryan Noble.
U.S. Equity Markets continued their weekly rally, finishing the day higher, led by the Dow which made a new all-time high, before closing with a gain of 0.43%. Markets surged at the open and held onto their gains for the rest of the day. On Tuesda night, President Joe Biden held meetings at the White House with groups of moderate and progressive Democratic lawmakers in an attempt to resolve differences on the budget proposal. After the meetings, Biden said that he believed a deal could be reached. In terms of Federal Reserve speakers, Federal Reserve Board of Governors member Christopher Waller said the economic rebound warrants tapering bond purchases, while interest rate hikes are some time off. And Fed Governor Randal Quarles said that the economy has clearly met the requirements for the central bank to begin tapering asset purchases. Earnings season continues to go better than Wall Street expected, with S&P 500 earnings coming in 13.5% ahead of estimates. While this is less than the previous two quarters, it still shows that companies are faring better than expected. In the S&P 500, eight of the 11 sectors finished higher. European Markets closed higher. European Commission Executive Vice President Valdis Dombrovskis said the regional government plans to suspend budget deficit rules again next year to allow for a full recovery. European Central Bank Chief Economist Philip Lane said investor expectations for future rate hikes don’t match the central bank’s guidance, as it will continue to support the economy. Euro-Zone Consumer Price Index (“CPI”) data came in above the ECB’s 2% target in September, as surging energy prices fuelled inflation. In Asia, China’s National Development and Reform Commission said it’s studying ways to intervene in the markets to lower coal prices while having zero manipulation tolerance. The People’s Bank of China left its key one-year loan prime rate unchanged, while injecting roughly $14 billion worth of liquidity into the financial system. Japan’s export data for September exceeded expectations, as strength in semiconductor, medical product, and steel demand offset weak automobile shipments. South Korea Finance Minister Hong Nam-ki said the government is considering a fuel surcharge cut as soon as next week to ease rising consumer costs. Elsewhere, Oil gained 0.93% as EIA data showed an unexpected decline in U.S. crude inventories, while Bitcoin continued its recent surge and hit an all-time high as Paul Tudor Jones said cryptos were a better inflation hedge than gold, closing higher by 4% at $66,000.
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For anyone following my Platinum Service it made 25 points yesterday and is now ahead by 669 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
The S&P 500 closed 0.37% higher at a price of 4536.
The Dow Jones Industrial Average closed 152 points higher for a 0.43% gain at a price of 35,609.
The NASDAQ 100 closed 0.14% lower at a price of 15,388.
The Stoxx Europe 600 Index closed 04% higher.
Yesterday, the MSCI Asia Pacific Index rose 0.1%.
Yesterday, the Nikkei closed 0.14% higher at a price of 29,255.
The Bloomberg Dollar Spot Index closed 0.2% higher.
The Euro closed 0.2% higher at $1.1651.
The British Pound closed 0.3% higher at 1.3827.
The Japanese Yen fell 0.1%, closing at $11435.
Germany’s 10-year yield closed one basis points lower at -0.12%.
Britain’s 10-year yield closed one basis points lower at 1.15%.
US 10 Year Treasury closed two basis points higher at 1.66%.
West Texas Intermediate crude closed 0.93% higher at $83.73 a barrel.
Gold closed 0.83% higher at $1,781.10 an ounce.
This morning on the Economic Front we have UK Public Sector Net Borrowing Requirement at 7.00 am. This is followed by U.S. Weekly Jobless Claims, Employment Cost Index and the Philly Fed Manufacturing Survey at 1.30 pm Finally, we have Existing Home Sales and Euro-Zone Consumer Confidence at 3.00 pm.
December S&P 500
The S&P has now rallied 220 Handles in just four trading sessions despite a lower than expected Industrial Production, Slowing Housing Data and the Atlanta Fed showing Q3 GDP at just +0.5%. The latter implies negative real GDP growth, but nothing matters as the ‘’Buy Everything Rally’’ even saw Bitcoin make a new all-time high above $66,000. This market which has been complacent all-year how now hit rock bottom in terms of Option Put/Call Ratios. There is just no fear. With charts vertical I find it almost impossible to buy any of these Indexes. The S&P has strong resistance from 4548/4563 where I will be an aggressive seller with a 4581 wider ‘’Closing Stop’’. We have near-term support from 4493/4508 and I will move my buy level to this area with a 4479 ‘’Closing Stop’’. If I am taken short I will have a T/P level at 4539. If I am taken long I will have a T/P level at 4520.
No Change. I am still a seller from 1.1695/1.1745 with the same 1.1781 stop. If I am taken short I will have a T/P level at 1.1660.
December Dollar Index
I am still flat and I will now lower my sell level slightly to 94.05/94.45 with a 94.71 tight stop. If I am taken short I will have a T/P level at 93.80.
The DAX continues to struggle and I am still flat. I will now lower my buy level to 15290/15360 with a lower 15235 stop. If I am taken long I will have a T/P level at 15405.
No Change. I am still a seller from 7260/7310 with the same 7355 stop. Meanwhile, I will leave my 7090/7140 buy level unchanged with a tight 7045 stop. If I am taken short I will have a T/P level at 7225. If I am taken long I will have a T/P level at 7170.
Dow Rolling Contract
The Dow made a new all-time high at 35,669 before having a small 60 point sell-off into the close and I am still flat. Given how overbought this market is trading I will continue to be a seller of rallies. The Dow has resistance from 35740/35920 where I will be a seller with the same 36125 ‘’Closing Stop’’. The Dow has support from 35150/35320 where I will be a small buyer with a 34995 ‘’Closing Stop’’. If I am taken short I will have a T/P level at 35620. If I am taken long I will have a T/P level at 35460.
The NASDAQ has resistance from 15490/15590 where I will be a seller with a 15705 ‘’Closing Stop’’. If the market sells off I will be an aggressive buyer from 15280/15190 with a 15055 ‘’Closing Stop’’. If I am taken short I will have a T/P level at 15420. If I am taken long I will have a T/P level at 15350.
The BUND traded higher to my 168.70 T/P level on my 168.45 long position and I am now flat. Today, I will again be a buyer from 167.30/167.90 with a 166.85 stop. If I am taken long I will have a T/P level at 168.35.
Gold Rolling Contract
I will now raise my buy level to 1740/1755 with a 1729 stop. If I am taken long I will have a T/P level at 1762.
Silver Rolling Contract
Silver rallied 2% yesterday and I am still flat I will now raise my buy level to 22.90/23.50 with a tight 22.45 stop. If I am taken long I will have a T/P level at 23.85.
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