U.S. Equity Markets jumped to start the week, ending yesterday’s session higher, led again by the NASDAQ 100 which closed with a gain of 1.72%. This move higher saw the VIX fall 9%, closing at a price of 18.40. A drop off in inflation fears kickstarted a rally in tech names. Interest rates backed off, easing some of the recent concerns that high interest rates could handicap growth going forward. The main driver behind this was the Federal Reserve. Multiple Fed presidents spoke yesterday, preaching patience and saying that the increases in inflation this year will be largely transitory. St. Louis Fed President James Bullard said he would like to see the economy put the economic crisis behind it before the central bank tapers its asset purchases. These comments brought back some of the risk appetite that had been lacking in tech stocks over the past few weeks. On Saturday, a bipartisan group of senators proposed an agreement on the surface transportation Reauthorisation Bill, providing $304 billion for roads and bridges. But there were also reports that President Joe Biden was ready to push his new $1.7 trillion infrastructure proposal through without bipartisan support. European Markets closed mixed. A British coronavirus study, involving an Indian strain, demonstrated currently available vaccines offered significant protection against most COVID-19 variants. Iran’s Speaker of the Parliament said the country’s deal with international nuclear surveillance inspectors had ended, potentially complicating nuclear accord negotiations. The German government imposed travel restrictions on the U.K. due to the spread of a new COVID-19 variant from India, while France was considering doing the same. In Asia, China’s National Development and Reform Commission held a meeting with top metal producers on Sunday, saying it would have zero tolerance for speculation and hoarding in commodities markets. Japan’s COVID-19 vaccination campaign is building momentum after a slow start, stoking optimism that economic activity should follow suit. Taiwan’s industrial production data for April were weaker than expected, falling versus March, as growth in the output of semiconductor-related products slowed. Elsewhere, Bitcoin rebounded 10% from its weekend sell-off while Oil closed 4% higher.
To mark my 2325th 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 289 points yesterday and is now ahead by 1105 points for May having closed April with a gain of 1244 points, 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 0.99% higher at a price of 4197.
The Dow Jones Industrial Average closed 196 points higher for a 0.54% gain at a price of 34,393.
The NASDAQ 100 closed 1.72% higher at a price of 13,641.
The Stoxx Europe 600 Index closed 0.3% higher
Yesterday, the MSCI Asia Pacific Index rose 0.1%.
Yesterday, the Nikkei closed 0.17% higher at a price of 28,364.
The Bloomberg Dollar Spot Index closed 0.3% lower.
The Euro closed 0.4% higher at $1.2216.
The British Pound closed 0.1% lower at 1.4141.
The Japanese Yen rose 0.2%, closing at $108.72.
Germany’s 10-year yield closed one basis points lower at -0.14%.
Britain’s 10-year yield closed one basis points lower at 0.81%.
US 10 Year Treasury closed one basis points lower at 1.60%.
West Texas Intermediate crude closed 3.81% higher at $66.05 a barrel.
Gold closed 0.1% higher at $1,880.20 an ounce.
This morning on the Economic Front we have German GDP and the IFO Survey at 7.00 am and 9.00 am respectively. This is followed at 2.00 pm by U.S Housing Price Index. Finally, at 3.00 pm we have Consumer Confidence, New Home Sales and the Richmond Fed Manufacturing Index.
June S&P 500
Yesterday was the slowest trading session of the year with just 8.35 billion shares changing hands. The theme of making points one day and loosing them the next day continued again yesterday as after the S&P hit my average 4184 sell level I stopped myself out of this position at 4202 and I am now flat. I will now raise my buy level to 4155/4172 with a 4139 ‘’Closing Stop’’. The S&P has strong resistance from 4215/4230 where I will again attempt a short position with a 4242 ‘’Closing Stop’’ as this will be above the all-time high from two weeks ago at 4237. If I am taken long I will have a T/P level at 4184. If I am taken short I will have a T/P level at 4206.
The Euro traded higher to my 1.2225 sell level. As I wanted to be flat overnight, I covered this position at 1.2213. Today, I will again be a seller on any further move higher to 1.2260/1.2300 with a tight 1.2335 stop. I will now raise my buy level to 1.2100/1.2150 with a higher 1.2065 stop. If I am taken short I will have a T/P level at 1.2215. If I am taken long I will have a T/P level at 1.2190.
June Dollar Index
The Dollar traded lower to my 89.75 buy level. I am still long with a now higher 89.25 stop. Meanwhile, I will leave my 90.05 T/P level unchanged.
Shortly after the DAX opened yesterday morning, I was stopped out of my 15345 short position at 15471 and I am now flat. The DAX has support from 15230/15310 where I will be a small buyer with a 15145 stop. If I am taken long I will have a T/P level at 15355.
I am still flat and today I will now raise my sell level to 7090/7140 with a higher 7175 tight stop. I will now raise my buy level to 6925/6975 with a higher 6885 stop. If I am taken short I will have a T/P level at 7055. If I am taken long I will have a T/P level at 7010.
Dow Rolling Contract
The Dow again underperformed the other main U.S Indexes, closing higher by 0.54%. This move higher saw my 34460 sell level executed. I am still short and I will add to this position at 34610 while leaving my 34725 ‘’Closing Stop’’ unchanged. I will now raise my T/P level to 34370 and if any of the above levels are hit I will be back with a new update for my Platinum Members.
The NASDAQ traded the whole of my sell range and I am now short at an average rate of 13575. I will now raise my T/P level to 13530 while leaving my 13705 ‘’Closing Stop’’ unchanged.
Finally, the Bund hit my 169.35 T/P level on my 169.30 long position and I am now flat. The Bund has support from 168.30/168.80 where I will again be a buyer with a 167.95 stop. If I am taken long I will have a T/P level at 169.15.
Gold Rolling Contract
Gold again traded in a narrow range and I am still flat. I will not chase this market higher, leaving my 1825/1840 buy level unchanged with the same 1809 stop. If I am taken long I will have a T/P level at 1849.
Silver Rolling Contract
No Change. I am still a buyer from 26.40/27.00 with the same 25.95 tight stop. If I am taken long I will have a T/P level at 27.35.
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