On 23/08/2021 TraderTalent.com is bringing you another guest post from Bryan Noble.
U.S. Equity Markets finished the week on a positive note, led by the NASDAQ 100, which closed with a gain of 1.06%. This move higher saw the VIX fall a huge 14%. Markets opened lower, before rising strongly. The growth outlook was the big story of the day after the Commerce Department’s Quarterly Services Survey indicated second-quarter economic activity was stronger than the preliminary reading of 6.5%. Equity market flows also got some attention, with Bank of America (BAC) reporting that U.S. equities saw their largest inflows ($12.8 billion) in nine weeks for the week ending August 18. BAC also made comments on positive earnings trends and corporate buybacks in its flow report. Even with Friday’s move higher, markets fell for the week due to ongoing concerns over the COVID-19 Delta variant and falling U.S. Consumer Sentiment. European Markets also closed higher after a difficult week. Germany’s Producer Price Index (“PPI”) data for July was stronger than expected, rising versus June and hitting the highest level this year. European Central Bank (“ECB”) Chief Economist Philip Lane said the ECB should be flexible with its monetary policy tools to ensure inflation stabilizes at 2%. ECB Governing Council Member Ollie Rehn said the regional government should set state-by-state debt targets, allowing for more deficit spending. In Asia, China’s legislature passed the Personal Information Protection Law, meant to clamp down on Big Tech companies’ use of personal data and curb their influence. Japan’s consumer price index (“CPI”) data for July was stronger than expected, but remained in contraction territory for the 10th-straight month. South Korea’s PPI numbers for July rose versus June, hitting their highest level this year, as the cost for manufacturing products continued to accelerate. Taiwan’s export order figures for July were in line with expectations, as the rate of growth in shipments to China, Europe, and the U.S. slowed. Elsewhere, Oil fell 2.50%, extending its losing streak as investors continue to worry about the Delta variant’s impact on the demand outlook, while Bitcoin surged over 5% as Coinbase (COIN) said it would invest 10% of its profits in cryptocurrencies.
To mark my 2375th 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 15 points on Friday and is now ahead by 1552 points for August, having closed July with a gain of 996 points. 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 0.81% higher at a price of 4441.
The Dow Jones Industrial Average closed 225 points higher for a 0.65% gain at a price of 35,120.
The NASDAQ 100 closed 1.09% higher at a price of 15,092.
The Stoxx Europe 600 Index closed 0.3% higher.
This morning, the MSCI Asia Pacific Index rosel 0.8%.
This morning, the Nikkei closed 1.84% higher at a price of 27,584
The Bloomberg Dollar Spot Index closed 0.1% lower.
The Euro closed 0.1% higher at $1.1699.
The British Pound closed 0.1% lower at 1.3620.
The Japanese Yen fell 0.1%, closing at $109.79.
Germany’s 10-year yield closed one basis points higher at -0.49%.
Britain’s 10-year yield closed one basis points lower at 0.53%.
US 10 Year Treasury closed three basis points higher at 1.26%.
West Texas Intermediate crude closed 2.50% lower at $62.32 a barrel.
Gold closed 0.04% higher at $1,781.10 an ounce.
This morning on the Economic Front we have German, Euro-Zone and U.K. Markit Services PMI at 8.30 am, 9.00 am and 9.30 am respectively. This is followed by U.S. Chicago Fed National Activity Index at 1.30 pm. Finally, we have Markit Services PMI at 2.45 pm and Existing Home Sales at 3.00 pm
September S&P 500
Aggressive buying of the S&P, started mid-morning on Friday from a low of 4370, helped drive the S&P to a rebound high so far at 4450 this morning. I am now caught short with this rally, at an average rate of 4435, as I broke my own rule by attempting a short position ahead of a weekend. I will leave my stop unchanged at a ‘’Closing Price’’ of 4451 while Raising my exit level on this position to a small loss at 4439. The break and close over 4425 on Friday has to be respected and today, I will be a buyer on any dip lower to 4420/4435 with a 4407 ‘’Closing Stop’’. If I am taken long I will have a T/P level at 4445.
The Euro missed my 1.1640 buy level on Friday with a 1.1663 low print before rallying to sit higher at 1.1720 this morning I will now raise my buy level to 1.1640/1.1680 with a higher 1.1595 stop. I still do not want to be short the Euro at this time. If I am taken long I will have a T/P level at 1.1710.
September Dollar Index
I am still flat and I will now lower my sell level to 93.65/94.05 with a lower 94.41 stop. If i am taken short I will have a T/P level at 93.40.
Frustratingly, the DAX missed my buy level by 20 points before turning around to trade 280 points higher at 15920 this morning. I have no doubt that Central Banks again intervened in the stock markets on Friday as they are watching the technical levels like the rest of us. At some stage the key 15500/155600 support area will break. The DAX has resistance at last week’s 16020 all-time high. I will be a small seller from 16020/16100 with a tight 16165 stop. If I am taken short I will have a T/P level at 15965.
The FTSE also missed my 6980 initial buy level by a few points before rallying to open at 7114 this morning I will now raise my buy level to 7030/7075 with a higher 6985 stop. If I am taken long I will have a T/P level at 7110.
Dow Rolling Contract
Despite the Dow registering an Outside-Down-Week, with a new all-time high and the lowest weekly close in two weeks, It does not feel like that this morning with the Dow trading over 600 points higher off Friday Morning’s 34628 low print. I am still flat as thankfully we had no sell level in Friday’s commentary. The Dow has strong support at 34850 while we have strong resistance here at 35250. A break and close over 35250 will see a move higher 35400 and possibly 35850/36150. Today, I will be an aggressive buyer from 34900/35050 with a 34795 ‘’Closing Stop’’. I still do not want to be short the Dow at this time. If I am taken long I will have a T/P level at 35170.
The NASDAQ traded the whole of my sell range on Friday for a 15030 average short position. After the market had a small sell-off, I emailed my Platinum Members to exit any short position at 15015 and I am still flat. The NASDAQ has support from 14980/15060 where I will be a small buyer with a 14895 ‘’Closing Stop’’. If I am taken long I will have a T/P level at 15115.
No Change I am still a small seller from 177.50/177.90 with the same 178.21 stop If I am taken short I will have a T/P level at 177.25.
Gold Rolling Contract
I am still flat. I will now raise my buy level to 1755/1770 with a higher 1743 stop. If I am taken long I will have a T/P level at 1777.
Silver Rolling Contract
Silver missed my 22.70 buy level with a 22.84 low print and I am still flat. I will now raise my buy level to 22.30/22.90 with a higher 21.85 stop. If I am taken long I will have a T/P level at 23.20.
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