U.S. Equity Markets traded sideways for most of yesterday’s session as investors digested more Federal Reserve speakers, before rallying in the last hour, led by the NASDAQ 100 making new highs with a gain of 0.94%. The Federal Reserve was in focus once again. In the afternoon, New York Fed President John Williams said that the economy was rebounding, but it was not close to meeting the central bank’s goals yet. That implies further support for the economy. Later in the session, Fed Chairman Jerome Powell said that inflation would fall back down towards 2% next year, as supply chain issues work themselves out. This would fall in line with the “transitory” inflation narrative from the central bank. He added that the job market still needs to recover, thought the pace of recovery should accelerate as vaccinations pick up. In terms of economic data, May’s Existing Home Sales fell (but beat estimates) as limited supply continues to push home prices higher. European Markets closed mixed. European Central Bank President Christine Lagarde said it sees inflation as a moderate threat, and there is still room to add stimulus, in testimony before European Parliament. European Union Ambassador to the U.S., Stavros Lambrinidis, said the two nations should soon begin talks on removing steel tariffs put in place in 2018. Russia’s government was said to be preparing to propose another increase in crude output at the next Organisation of Petroleum Exporting Countries meeting. They are likely doing this to prepare for rising demand as economic activity rebounds. This could put downward pressure on oil prices. In Asia, The Bank of Japan was said to purchase exchange-traded funds for the first time in two months following the stock market drop on Monday. Large Chinese banks were said to consider a reduction in lending exposure to developer China Evergrande Group on financial health concerns. South Korea’s Producer Price Index data for May rose versus April, as the numbers lapped the easiest comparison versus last year’s levels. Taiwan’s export orders for May were weaker than expected, falling versus April, as the pace of growth in shipments to the U.S. and Europe eased. Elsewhere, Oil fell 0.60% on reports that Russia was pushing to have OPEC increase production, while Bitcoin broke support at 30,000, before reversing to sit higher at 33,000 this morning.
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For anyone following my Platinum Service it made 60 points yesterday and is now ahead by 760 points for June having made 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 0.51% higher at a price of 4246.
The Dow Jones Industrial Average closed 68 points higher for a 0.20% gain at a price of 33,945.
The NASDAQ 100 closed 0.94% higher at a price of 14,270.
The Stoxx Europe 600 Index closed 0.3% higher
This morning, the MSCI Asia Pacific Index rose 0.1%.
This morning, the Nikkei closed 0.67% higher at a price of 28,903.
The Bloomberg Dollar Spot Index closed 0.2% lower.
The Euro closed 0.2% higher at $1.1938.
The British Pound closed 0.1% higher at 1.3920.
The Japanese Yen fell 0.1%, closing at $110.61.
Germany’s 10-year yield closed one basis points higher at -0.16%.
Britain’s 10-year yield closed two basis points higher at 0.79%
US 10 Year Treasury closed three basis points lower at 1.47%.
West Texas Intermediate crude closed 0.60% lower at $73.06 a barrel.
Gold closed 0.38% lower at $1,775.10 an ounce.
This morning on the Economic Front we have German, Euro-Zone and UK Markit Services PMI at 8.30 am, 9.00 am and 9.30 am respectively. This is followed at 12.00 pm by U.S MBA Mortgage Applications and the Current Account at 1.30 pm. Next, we have a speech from Fed Member Bowman at 2.10 pm and the Markit Services PMI at 2.45 pm. Finally, we have New Home Sales at 3.00 pm and a speech from ECB President Lagarde at 7.00 pm.
September S&P 500
It looks increasingly likely that Friday’s post Expiration sell-off was a false break of the 50-Day Moving Average as the S&P gained for the second consecutive session, boosted by the NDX making new all-time highs. In my opinion, the last few months have been the most challenging of markets to trade for the U.S Indexes as we all know the market is severely overbought as we look for the elusive top in the S&P before seeing a more sustained sell-off. This morning the 50 Day MA comes in at 4180 for the September Contract and this level should hold any initial test. As the NASDAQ had traded the whole of yesterday’s sell-off I waited to sell the S&P which I did at a price of 4236. I will add to this trade at 4252 while leaving my 4261 ‘’Closing Stop’’ unchanged. I will now raise my T/P level on this position to 4234. The S&P has strong support from 4210/4225 and I will be a buyer on any dip to this area with a 4199 ‘’Closing Stop’’. If I am taken long I will have a T/P level at 4238.
I am still flat and today I will move my buy level higher to 1.1840/1.1890 with a higher 1.1795 stop. If I am taken long I will have a T/P level at 1.1920.
September Dollar Index
I am still flat as the Dollar traded in a narrow range yesterday. I will now lower my sell level to 92.15/92.55 with a lower 92.95 stop. If I am taken short I will have a T/P level at 91.85.
The DAX also traded in a narrow range yesterday resulting the market not coming anywhere close to my buy or sell levels and I am still flat. I will now raise my buy level to 15350/15430 with a tight 15295 stop. I no longer want to be short the DAX at this time. If I am taken long I will have a T/P level at 15475.
I am still flat and I will now raise my buy level to 6945/6995 with a higher 6895 stop. If I am taken long I will have a T/P level at 7030.
Dow Rolling Contract
After the Dow finally traded higher to my 34030 sell level we saw a small 90 point sell-off, enabling me to cover this position at my revised 33970 T/P level and I am still flat. After falling 11 consecutive trading sessions, the Dow has now rallied 1000 points off Monday Morning’s 33023 low print as yet again anyone trying to short the Dow gets slammed. The Dow has major resistance at the 50 – Day Moving Average which comes in at 34189 this morning. As a result, I will now be a small seller from 34170/34320 with a tight 34405 ‘’Closing Stop’’. If I am taken short I will have a T/P level at 34060.
The NASDAQ continues to defy logic, making yet another new all-time closing high. This move higher has me short at an average rate of 14235. I will now raise my exit level on this position to 14240. The NASDAQ has support from 14100/14190 where I will be a buyer with a wider 13995 ‘’Closing Stop’’. If I am taken long I will have a T/P level at 14260.
No Change. I am still a small seller from 172.65/173.10 with he same 173.45 stop. If I am taken short I will have a T/P level at 172.40.
Gold Rolling Contract
No Change. I am still a buyer from 1748/1763 with the same 1739 stop. If I am taken long I will have a T/P level at 1770.
Silver Rolling Contract
I am still flat and today I will raise my buy level slightly to 24.95/25.55 with a higher 24.62 tight stop. If I am taken long I will have a T/P level at 25.85.
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