U.S. Equity Markets took a breather after Monday’s gains closing lower, led by the Dow which closed with a small loss of 0.24% Markets were largely flat as investors digested inflation news and economic data. On the inflation front, Federal Reserve regional bank Presidents James Bullard and Raphael Bostic reiterated they expect the rise in inflation to be temporary, diminishing the need to remove monetary support. Infrastructure was also in focus. Senate Republicans were said to be preparing a counteroffer worth as much as $1 trillion compared to President Joe Biden’s $1.7 trillion infrastructure proposal. This was echoed by Senator Shelley Moore Capito (R-WV), who said that this is more than enough to earn bipartisan support in Congress. Housing market data were mixed, but leaning toward positive. Home prices jumped again, driven by a lack of available inventory. And while New Home Sales fell unexpectedly, the data remain elevated. Consumer Confidence also fell short of expectations, driven by a drop off in future expectations. European Markets closed higher. The Information and Research Institute’s (“IFO”) German Business Climate Index data for May beat expectations, rising versus April, as authorities loosened coronavirus restrictions. Spain’s Producer Price Index (“PPI”) data for April were stronger than expected, accelerating versus March, as higher energy and metals prices drove the gains. Bank of England officials said they were watching inflation closely, but added they see any increases this year as temporary. In Asia, China’s government was said to be planning to introduce new initiatives to lower taxes and costs for manufacturers and small businesses, including new loans. Japan’s government was said to be considering extending its zero-interest loan programme to mid- and small-sized businesses as the country deals with ongoing social-distancing restrictions. South Korea’s consumer confidence data for May rose versus April, touching its highest level in three years, and boosting confidence in the nation’s growth outlook. Elsewhere, Bitcoin closed 6% lower on continued concerns about a Chinese cryptocurrency crackdown while Gold rose 0.84% on Dollar weakness.
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 made 100 points yesterday and is now ahead by 1205 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 0.21% lower at a price of 4188.
The Dow Jones Industrial Average closed 81 points lower for a 0.24% loss at a price of 34,312
The NASDAQ 100 closed 0.12% higher at a price of 13,657.
The Stoxx Europe 600 Index closed 0.4% higher.
Yesterday, the MSCI Asia Pacific Index rose 0.2%.
Yesterday, the Nikkei closed 0.67% higher at a price of 28,553.
The Bloomberg Dollar Spot Index closed 0.3% lower.
The Euro closed 0.3% higher at $1.221
The British Pound closed 0.1% higher at 1.4149.
The Japanese Yen fell 0.1%, closing at $108.84.
Germany’s 10-year yield closed three basis points lower at -0.17%.
Britain’s 10-year yield closed three basis points lower at 0.78%.
US 10 Year Treasury closed four basis points lower at 1.56%.
West Texas Intermediate crude closed 0.11% lower at $65.99 a barrel.
Gold closed 0.84% higher at $1,897.20 an ounce.
This morning on the Economic Front we have no data of note from either the UK or the Euro-Zone. At 12.00 pm we have U.S MBA Mortgage Applications and this is followed by a speech from the Fed’s Quarles at 3.00 pm.
June S&P 500
Frustratingly, the S&P just missed both my buy and sell levels before having nice moves off both of these ranges and I am still flat. I will now lower my buy level to 4150/4165 with a lower 4139 ‘’Closing Stop’’’. I am reluctant to chase the S&P lower and I will only adjust my sell level to 4210/4225 with a lower 4239 ‘’Closing Stop’’. If I am taken long I will have a T/P level at 4178. If I am taken short I will have a T/P level at 4200.
After the Euro traded higher to my 1.2265 sell level we saw a small sell-off to my 1.2235 revised T/P level and I am now flat. The Euro has resistance from 1.2290/1.2340 where I will again be a seller with a 1.2375 stop. I will now raise my buy level higher to 1.2140/1.2180 with a higher 1.2095 stop. If I am taken short I will have a T/P level at 1.2260. If I am taken long I will have a T/P level at 1.2220.
June Dollar Index
No Change. I am still long at 89.75 with the same 90.05 T/P level. Meanwhile, I will leave my 89.25 stop unchanged.
I am still flat the DAX, refusing to chase this market higher As a result, I will leave my 15230/15310 buy level unchanged with the same 15145 stop. If I am taken long I will have a T/P level at 15355.
The FTSE again traded heavy, in a narrow range and I am still flat. I will now lower my buy level to 6900/6950 with a lower 6845 stop. I will leave my 7090/7140 sell range unchanged with the same 7175 tight stop. If I am taken long I will have a T/P level at 6985. If I am taken short I will have a T/P level at 7055.
Dow Rolling Contract
My latest 34460 short position worked well with the market trading to a low of 34265, allowing me to cover this position at my 34395 revised T/P level and I am still flat. Today, I will again be a seller on any further rally to 34550/34700 with a 34825 ‘’Closing Stop’’. The Dow has support from 34050/34220 where I will be a buyer with a 33895 ‘’Closing Stop’’. If I am taken short I will have a T/P level at 34400 If I am taken long I will have a T/P level at 34385.
No Change. I am still short at 13575 with the same 13530 T/P level and 13705 ‘’Closing Stop’’.
I am still flat and I will now raise my buy level to 168.80/169.20 with a higher 168.45 stop. I still do not want to be short the Bund at this time. If I am taken long I will have a T/P level at 169.55.
Gold Rolling Contract
Gold tested $1900 yesterday for the first time since January 8 and I am still flat. I will now raise my buy level to 1840/1855 with a higher 1839 stop. If I am taken long I will have a T/P level at 1864.
Silver Rolling Contract
Silver again traded in a narrow range and I am still flat. I will now raise my buy level to 26.80/27.40 with a higher 26.35 tight stop. If I am taken long I will have a T/P level at 27.75
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