U.S. Equity Markets rebounded yesterday from the selling earlier in the week, with all three main Indexes closing in positive territory. The NASDAQ led the rally with a gain of 1.19%, while the VIX closed lower by 6.5%. Markets rose after starting the week with two straight down days. It was another quiet day, keeping the theme from the rest of the week. There was still some focus on Federal Reserve chairman Jerome Powell’s letter to Senator Rick Scott (R-FL), where Powell said that the central bank Will not allow inflation to exceed 2% for an extended period of time. In other central bank news, the Bank of Canada became the first notable central bank to dial back asset purchases. On infrastructure, Republicans are reportedly working on a $600 billion to $800 billion compromise, which would be funded by unused COVID-19 stimulus funds. Mortgage rates backed off, spurring the first increase in mortgage applications since February. This shows that the housing market remains strong in 2021. Earnings continues to be better than expected. Eighty-five percent of reporting S&P 500 companies have beat estimates so far this quarter, which is above the historical average. Earnings season has just begun, so this will be a closely watched theme and will be a catalyst for markets. European Markets closed higher. The European Medicines Agency said the rewards from Johnson & Johnson’s coronavirus vaccine outweigh the risks, while adding a blood clot warning to the label. And EU vaccinations rose to 115.4 million through yesterday, with a daily average of 2.4 million doses administered over the last week. But the European Commission warned that consumer spending will not reach pre-pandemic levels for a while after lockdowns are eased. EU officials said more work was needed to salvage the 2015 nuclear accord with Iran, following talks over the last two weeks, and ahead of their resumption next week. Meanwhile, the Governors of Japan’s Osaka province and Tokyo told reporters they would ask the government to declare states of emergency in an effort to fight rising coronavirus infections. South Korea’s preliminary export and import data for April rose versus the same period in March, as gains were seen in 14 out of 15 sectors, indicating accelerating economic momentum. Taiwan’s export data for March was weaker than expected, falling versus February, as the Economics Ministry anticipates continued growth in April, albeit at a slower pace. Elsewhere, Oil closed 2.60% lower after an unexpected jump in U.S. crude inventories, while Gold rose 0.94% on further Dollar weakness.
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 185 points yesterday and is now ahead by 264 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 0.93% higher at a price of 4173.
The Dow Jones Industrial Average closed 316 points higher for a 0.93% gain at a price of 34,137.
The NASDAQ 100 closed 0.91% higher at a price of 13,935.
The Stoxx Europe 600 Index closed 0.8% higher.
Yesterday, the MSCI Asia Pacific Index fell 0.9%.
Yesterday, the Nikkei closed 2.03% lower at a price of 28,508.
The Bloomberg Dollar Spot Index closed 0.1% lower
The Euro closed 0.1% higher at $1.2036.
The British Pound closed 0.1% lower at $1.3927.
The Japanese Yen closed 0.1% lower at 108.12 per dollar.
Germany’s 10-year yield closed five basis points lower at -0.27%.
Britain’s 10-year yield closed one basis points higher at 0.74%.
US 10 Year Treasury closed one basis points lower at 1.55%.
West Texas Intermediate crude closed 260% lower at $60.98 a barrel.
Gold closed 0.94% higher at $1,793.20 an ounce.
This morning on the Economic Front we have the ECB Rate Decision at 12.45 pm This is followed at 1.30 pm by the Lagarde Press Conference, the Chicago Fed National Activity Index and Weekly Jobless Claims. Finally, at 3.00 pm we have Existing Home Sales and Euro-Zone Consumer Confidence.
June S&P 500
The S&P rallied 50 Handles off its 4112 morning low, smacking of more Fed intervention as yet again the Central Banks will do whatever they can to keep the party going. Internally the market continues to struggle and it was interesting that Bitcoin fell over 3% yesterday despite the rebound in stocks Unfortunately, my S&P plan did not work well. After the market hit my 4141 sell level I was stopped out on the close at 4161 and I am still flat. Despite yesterday’s aggressive rebound I am still convinced we will run into trouble as we approach the end of April/Beginning of May. The S&P has resistance from 4180/4195 where I will again be a seller with a 4211 ‘’Closing Stop’’. I will now raise my buy level to 4120/4136 with a 4108 ‘’Closing Stop’’. If I am taken short I will have a T/P level at 4168. If I am taken long I will have a T/P level at 4148.
The Euro again missed my 11990 buy level before closing unchanged. I will not chase the Euro higher, leaving my 1.1940/1.1990 buy level unchanged with the same 1.1895 stop. If I am taken long I will have a T/P level at 1.2025.
June Dollar Index
The Dollar rallied to my 91.25 T/P level on my 91.10 long position and I am now flat. I will look to buy the Dollar again from 90.50/90.90 with a wider 89.95 stop. If I am taken long I will have a T/P level at 91.20.
I am still flat and I will now raise my buy level to 14960/15040 with a higher 14895 stop. I still do not want to be short the DAX at this time. If I am taken long I will have a T/P level at 15090.
I am still flat and today I will raise my buy level to 6760/6820 with a higher 6705 stop. Just like the DAX above I do not want to be short the FTSE at this time. If I am taken long I will have a T/P level at 6855.
Dow Rolling Contract
The Dow rallied over 400 points off its 33700 morning low and I am still flat. As long as the Dow can hold the key 33550/33750 support zone I will continue to be a buyer on dips. I will now move my buy level to this support area with a higher 33395 ‘’Closing Stop’’. If I am taken long I will have a T/P level at 33890.
The NASDAQ just missed my 13650 buy level before surging late in yesterday’s session to my 13920 sell level. I am still short and I will now raise my T/P level on this position to 13860. I will also raise my buy level to 13650/13750 with a higher 13575 ‘’Closing Stop’’. If I am taken long I will have a T/P level at 13810.
As we wait for today’s key ECB Statement and Lagarde press conference at 1.30 pm, I will leave my 169.80/170.25 Bund buy level unchanged with the same 169.45 tight stop. Yesterday, the Bank of Canada announced that it was reducing its Bond Buying Programme. If I am taken long I will have a T/P level at 170.55.
Gold Rolling Contract
Gold rallied hard for the second consecutive trading session and I am still flat. I will now raise my buy level to 1745/1759 with a higher 1732 stop. If I am taken long I will have a T/P level at 1765.
Silver Rolling Contract
I am still flat and today I will raise my buy level to 25.00/25.60 with a tight 24.65 stop. If I am taken long I will have a T/P level at 25.85.
Your Platinum Subscription intraday updates will appear here once they are published.