On 22/07/2021 TraderTalent.com is bringing you another guest post from Bryan Noble.
U.S. Equity Markets rose as the bulls took back the reins, ending yesterday’s session higher, led again by the Dow closing higher by 0.83%. The McClellan Oscillator improved off Monday’s extreme -300 print, closing at -56 last night. Earnings remained a tailwind for markets, with Coca Cola (KO), Verizon (VZ), and Johnson & Johnson (JNJ) all putting up strong numbers. Earnings will continue to be a catalyst in the coming days and weeks, with reports from Big Tech on the horizon. On infrastructure, Senator Mitt Romney (R-UT) said the differences with Democrats surrounding the bipartisan infrastructure bill could be resolved by the end of the week if a vote is delayed. This breathed some life into the discussions, which had largely stalled. However, the Senate’s procedural vote on the package was expected to fail, as Republicans said they would not vote for the bill before it was written. European Markets closed higher. The German government is said to have approved a relief package worth $471 million to provide aid to areas of the country damaged by recent floods. The European Union announced it had begun reviewing a COVID-19 vaccine from GlaxoSmithKline and Sanofi, making it the fifth shot currently under review. French Health Minister Olivier Veran said Delta strain COVID-19 cases were rising at an unprecedented rate ahead of a vote requiring vaccination or tests to enter public buildings. In Asia, China’s state-run media warned that the U.S. has undermined the country’s sovereignty and regional stability by expanding diplomatic and military exchanges with Taiwan. Japan’s exports and imports for June exceeded expectations, as demand from the U.S., China, and the rest of Asia continued to build, hitting some of the highest levels this year. South Korea’s preliminary export data for July rose versus June, as foreign demand for semiconductors and automobiles continued to increase. Australia’s preliminary Retail Sales data for June was weaker than expected, falling versus May, as COVID-19 lockdowns weighed on consumer spending. Elsewhere, Oil surged 4.49% along with risk assets, while Bitcoin closed 6.68% higher as Tesla (TSLA) CEO Elon Musk said the company does not plan to sell any of its bitcoin.
To mark my 2350th 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 583 points yesterday and is now ahead by 705 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 0.82% higher at a price of 4356.
The Dow Jones Industrial Average closed 286 points higher for a 0.83% gain at a price of 34,796.
The NASDAQ 100 closed 0.78% higher at a price of 14,842.
The Stoxx Europe 600 Index closed 0.5% higher.
This morning, the MSCI Asia Pacific Index rose 0.6%.
This morning, the Nikkei was closed due to a bank holiday for the Olympics having finished yesterday at a price of 27,548.
The Bloomberg Dollar Spot Index closed 0.3% lower.
The Euro closed 0.3% lower at $1.1798.
The British Pound closed 0.8% higher at 1.3710.
The Japanese Yen fell 0.2%, closing at $110.15.
Germany’s 10-year yield closed two basis points higher at -0.40%.
Britain’s 10-year yield closed six basis points higher at 0.60%.
US 10 Year Treasury closed ten basis points higher at 1.29%.
West Texas Intermediate crude closed 4.49% higher at $70.30 a barrel.
Gold closed 0.35% lower at $1,796.10 an ounce.
This afternoon on the Economic Front we have the ECB Rate Decision at 12.45 pm, followed by the press conference from ECB President Lagarde at 1.30 pm. Also, at 1.30 pm we have the U.S. Weekly Jobless Claims, followed by Existing Home Sales and Euro-Zone Consumer Confidence at 3.00 pm. Finally, at 3.30 pm we have the Kansas City Fed Manufacturing Activity Index.
Earnings today are due from Biogen, Dow and Intel.
September S&P 500
Just when I thought that the 140 Handle sell-off from Friday’s 4367 afternoon high was the start of a more meaningful correction, the buy the dip stepped in aggressively as yet again the 50 – Day Moving Average held. My Closing Price stop went against me yesterday as I was stopped out of my 4301 short position near the close at 4337 and I am still flat. The 4333 level is now key support, as building value above this level signals new highs while building value below 4329 will see me look to set up shorts for 4290 and lower. I will now raise my buy level to 4322/4337 with a tight 4309 ‘’Closing Stop’’ If I am taken long I will have a T/P level at 4349.
The boring sideways price action in the Euro continues and I am still flat. I will now raise my buy level to 1.1710/1.1760 with a higher 1.1675 stop. I no longer want to be short the Euro at this time. If I am taken long I will have a T/P level at 1.1790
September Dollar Index
I am still flat and I will now lower my sell level to 93.05/93.45 with a lower 93.81 stop. If I am taken short I will have a T/P level at 92.80.
Just when it looked like the break of the key 15300 support area would turn into a decent correction, the DAX regained its composure, sitting higher at 15475 this morning. After the DAX hit my initial 15340 sell level I emailed my Platinum Members to exit any short position at 15308 and I am still flat. Now, I have to respect yesterday’s move higher and today, I will be a buyer from 15250/15330 with a 15185 stop. If I am taken long I will have a T/P level at 15375.
The FTSE surged yesterday, reversing all of Monday’s 2% fall and I am still flat. The FTSE has short-term support from 6840/6890 and I will be a buyer on any dip to this area with a 6795 stop. If I am taken long I will have a T/P level at 6930.
Dow Rolling Contract
This is a frustrating job at the minute with markets moving at an unreal pace in both directions. It is almost impossible to have a stop in the Dow given the volatility. Yesterday was one of the worst days for my service since I began in 2013 as I was stopped out of my 34400 short position at 34705 and I am still flat. The Dow has resistance from 34930/35080 where I will be a small seller with a 35165 ‘’Closing Stop’’. Building value above 35100 signals further gains to 35700 and higher. The Dow has short-term support from 34280/34450 where I be a buyer with a 34145 ‘’Closing Stop’’. If I am taken short I will have a T/P level at 34810. If I am taken long I will have a T/P level at 34590.
I was lucky that the NASDAQ sold off to my 14670 T/P level yesterday morning on my latest 14720 short position and I am now flat. The NASDAQ has support from 14760/14680 where I will be a buyer with a 14550 wider ‘’Closing Stop’’. If I am taken long I will have a T/P level at 14840.
No Change. I am still a seller from 176.20/176.70 with the same 1792 stop. If I am taken short I will have a T/P level at 175.85.
Gold Rolling Contract
As I am still long Silver, I will now lower my Gold buy level to 1765/1780 with a lower 1752 stop. If I am taken long I will have a T/P level at 1788.
Silver Rolling Contract
I am still long at an average rate of 25.40. I will leave my 24.75 stop unchanged while raising my T/P level to 25.80.
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