On 22/09/2021 TraderTalent.com is bringing you another guest post from Bryan Noble.
U.S. Equity Markets tried to rebound from Monday’s sharp sell-off but sold off towards the end of the day, ending yesterday’s session mixed, as the Dow closed 0.15% lower, while the NASDAQ 100 closed with a small 0.10% gain. Markets opened sharply higher before tumbling and bouncing around throughout the rest of the day. The main factor at play was a “buy the dip” mentality after Monday’s steep decline. In fact, data from Vanda Research showed that retail traders bought $1.9 billion worth of assets during Monday’s session. The majority of this was done in U.S. Equity Indexes, Bloomberg said. In terms of economic data, Housing Starts and Building Permits surged in August, topping expectations. This is a sign of continued strength in the housing market. Investors are still looking ahead to this evening’s Federal Reserve meeting for any clues on asset purchase tapering. European Markets closed higher. The Organisation for Economic Co-operation and Development said the world economic recovery remains uneven, lowering its 2021 growth forecast from 5.8% to 5.7%. European Union Foreign Policy Chief Josep Borrell said there would not be a meeting of Foreign Ministers to discuss the 2015 Iran nuclear accord at this week’s United Nations gathering. U.K. manufacturing firms were said to see record numbers of new orders this month, but supply-chain issues hampered their ability to turn these orders into products. In Asia, China’s Evergrande Group is unlikely to receive direct government support and is on the precipice of defaulting on upcoming bond payments, according to S&P Global. The Reserve Bank of Australia’s Minutes from the September policy meeting showed the central bank considered delaying its bond taper plans due to economic growth concerns. Markets in Japan reopened after a public holiday, playing catch up with other global equity indexes on concerns any economic slowdown in China could weigh on trade. South Korea’s Disease Control and Prevention Agency said more than 71% of the population had received at least one COVID-19 vaccine dose while more than 43% have been fully vaccinated. Elsewhere, Oil rose 0.80% as the EIA said that crude inventories in Cushing, Oklahoma were down 41% in 2021, while Bitcoin fell 4% on regulatory concerns.
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 305 points yesterday and is now ahead by 1906 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 0.08% lower at a price of 4354.
The Dow Jones Industrial Average closed 50 points lower for a 0.15% loss at a price of 33,920.
The NASDAQ 100 closed 0.10% higher at a price of 15,027.
The Stoxx Europe 600 Index closed 0.5% higher.
This morning, the MSCI Asia Pacific Index fell 0.6%.
This morning, the Nikkei closed 0.54% lower at a price of 29,677
The Bloomberg Dollar Spot Index closed 0.1% lower.
The Euro closed 0.1% higher at $1.1722.
The British Pound closed 0.2% lower at 1.3650.
The Japanese Yen rose 0.1%, closing at $109.48.
Germany’s 10-year yield closed one basis points lower at -0.32%.
Britain’s 10-year yield closed two basis points higher at 0.80%.
US 10 Year Treasury closed one basis points higher at 1.33%.
West Texas Intermediate crude closed 0.80% higher at $71.38 a barrel.
Gold closed 0.66% higher at $1,774 an ounce.
This morning on the Economic Front we have U.S. MBA Mortgage Applications at 12.00 pm. This is followed by Euro-Zone Consumer Confidence and US. Existing Home Sales at 3.00 pm. Finally, at 7.00 pm we have the FOMC Statement and Powell Press Conference at 7.30 pm.
December S&P 500
My S&P plan worked really well yesterday with the market trading higher to my 4393 sell level before selling off overnight to my 4324 buy level. I covered my short position at 4385, while my 4339 T/P level was filled on my long position and I am now flat. This morning, the S&P is rallying ahead of the FOMC Statement at 7.00 pm. I do not expect the Fed to announce any tapering this evening given the 250 Handle fall in the S&P in the last week. All major trendlines have been broken following the sell-off in the S&P on both Friday and Monday. This will lead to plenty of two-way trading as we have witnessed over the past 72 hours. The S&P has resistance from 4377/4392 where I will again be a seller with a 4409 ‘’Closing Stop’’. We have support from 4295/4310 where I will be an aggressive buyer with a 4279 ‘’Closing Stop’’. If I am taken short I will have a T/P level at 4365. If I am taken long I will have a T/P level at 4326.
I am still flat the Euro. Ahead of the FOMC, I will leave my 1.1645/1.1695 buy level unchanged with the same 1.1595 stop. If I am taken long I will have a T/P level at 1.1730.
December Dollar Index
No Change I am still a small seller from 93.40/93.90 with the same 94.21 tight stop. If I am taken short I will have a T/P level at 93.15.
Despite the aggressive sell-off in U.S. Indexes, The DAX is holding the 15100 support level, trading higher at 15400 this morning. I will now raise my buy level to 15100/15180 with a wider 14995 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 15240.
I am still flat as the FTSE trades higher, helped by the weaker Pound. I will now raise my buy level to 6850/6910 with a tight 6795 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 6945.
Dow Rolling Contract
My Dow plan worked well with the market trading higher to my 34340 sell level before falling 600 points from its 34369 high print. Frustratingly, I covered this short position too early at 34285 and I am still flat. The Dow has resistance from 34270/34440 where I will again be a seller with a 34605 ‘’Closing Stop’’. Meanwhile, I will leave my 33580/33750 buy level unchanged with the same 33485 ‘’Closing Stop’’. If I am taken short I will have a T/P level at 34150. If I am taken long I will have a T/P level at 33910.
Shortly after I posted yesterday morning the NASDAQ rallied to my 15120 T/P level on Monday’s 15100 average long position and I am still flat. The NASDAQ has strong resistance from 15180/15250, where I will continue to be a seller with a 15325 tight ‘’Closing Stop’’. I still do not want to be long the NASDAQ at this time. If I am taken short I will have a T/P level at 15120.
No Change. I am still a buyer on any dip lower to 170.60/171.00 with the same 170.25 stop. If I am taken long I will have a T/P level at 171.35.
Gold Rolling Contract
Gold has now bounced $30 off Monday’s low and I am still flat. Ahead of the FOMC this evening, I will leave my 1734/1749 buy level unchanged with a 1723 stop. I still do not want to be short Gold at this time. If I am taken long I will have a T/P level at 1757.
Silver Rolling Contract
I am still flat. I will now raise my buy level to 21.70/22.30 with a higher 21.25 stop. If I am taken long I will have a T/P level at 22.75.
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