On 26/07/2021 TraderTalent.com is bringing you another guest post from Bryan Noble.
U.S. Equity Markets ended the week at new all-time highs, led by the NASDAQ 100 which ended Friday’s session with a gain of 1.15%. On infrastructure, Senate Republicans struck an increasingly optimistic tone on negotiations, implying the chances of reaching a deal early this week are improving. In terms of economic data, IHS Markit Manufacturing PMI hit another all-time high in June. But Services PMI fell to a five-month low as businesses cited labour shortages. All in all, the data points to continued strength in the U.S. economy. Now, all eyes are on this week, with the Federal Reserve’s policy meeting and earnings from Big Tech companies like Apple (AAPL), Facebook (FB), and Alphabet (GOOGL). These companies make up a large weighting in the markets, so their results will be a catalyst for markets. European Markets closed higher. European Central Bank President Christine Lagarde said it was prepared to maintain easy-money policy for the foreseeable future in order to ensure a lasting economic recovery. Markit Euro-Zone’s preliminary composite purchasing managers’ index (“PMI”) data for July was stronger than expected as services-sector activity strengthened. UK Retail Sales rose more than expected in June, boosted by spending throughout the European Football Championship tournament. In Asia, Japanese markets remained closed for a holiday. China’s State Council said it would further open up its financial markets to foreign investment in an effort to boost growth. Markit Australia’s preliminary PMI data for July fell back into contraction territory for the first time since last August, as coronavirus lockdowns weighed on services and manufacturing activity. South Korea’s government said it would extend a ban on gatherings of three or more people in the Seoul area for another two weeks as it tries to combat rising COVID-19 infections. Elsewhere, Oil closed 0.18% higher, while Bitcoin surged over the weekend, trading 9.5% higher at $38,730 this morning.
To mark my 2350th 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 50 points on Friday and is now ahead by 784 points for July after making 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, 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 1.01% higher at a price of 4411.
The Dow Jones Industrial Average closed 238 points higher for a 0.68% gain at a price of 35,061.
The NASDAQ 100 closed 1.15% higher at a price of 15,111.
The Stoxx Europe 600 Index closed 0.7% higher.
This morning, the MSCI Asia Pacific Index rose 0.1%.
This morning, the Nikkei closed 1.04% higher at a price of 27,833.
The Bloomberg Dollar Spot Index closed 0.1% lower
The Euro closed 0.1% higher at $1.1778.
The British Pound closed 0.1% higher at 13751.
The Japanese Yen fell 0.1%, closing at $110.36.
Germany’s 10-year yield closed two basis points lower at -0.43%.
Britain’s 10-year yield closed two basis points higher at 0.59%.
US 10 Year Treasury closed three basis points lower at 1.25%.
West Texas Intermediate crude closed 0.18% higher at $72.04 a barrel.
Gold closed 0.05% higher at $1,807.10 an ounce.
This morning on the Economic Front we have the German IFO Survey at 9.00 am. This is followed by U.S. New Home Sales at 3.00 pm. Finally, we have the Dallas Fed Manufacturing Business Index at 3.30 pm.
September S&P 500
Having hit a low of 4224 last Monday, the S&P rallied to close at a new all-time high of 4410 on Friday as yet again the ‘’Buy the Dip’’ paid dividends. Since May 10, the S&P has made an incredible 20 new all-time highs while the Dow made its first new high since that date on Friday. Despite all three U.S. Indexes closing at new all-time highs, the McClellan Oscillator continues to print one negative close after another, closing at -60 last Friday. This is not the sign of a healthy market, with rampant inflation resulting from the Fed’s refusal to stop it’s $120bn Monthly QE. The last time we saw inflation over 5%, the Fed Funds Rate was at 5%. Can you imagine where stocks would be today if the Fed Funds Rate was back at 5%? The S&P has short-term support from 4365/4380 and I will move my buy level higher to this area with a 4353 ‘’Closing Stop’’. We have resistance from 4418/4433 where I will be a small seller with a 4445 ‘’Closing Stop’’. If I am taken long I will have a T/P level at 4390. If I am taken short I will have a T/P level at 4409.
I am still flat and today I will move my buy level higher to 1.1690/1.1735 with a higher 1.1655 stop. If I am taken long I will have a T/P level at 1.1765.
September Dollar Index
No Change. I am still a seller from 93.05/93.45 with the same 93.81 stop. If I am taken short I will have a T/P level at 92.80.
I am still flat the market as the DAX continues to consolidate above the 15320/15400 support area. I will be a small buyer in this range with a 15245 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 15445.
The FTSE is selling off this morning as I post this commentary. I am still flat and I will continue to be a buyer on any dip lower to 6810/6860 with the same 6765 stop. If I am taken long I will have a T/P level at 6895.
Dow Rolling Contract
My Dow plan worked well on Friday with the market trading higher to my 35080 initial sell level before selling off 200 points to sit at 34870 this morning. Unfortunately, as I wanted to be flat over the weekend I covered this position at my 35030 revised T/P level. The Dow has initial support from 34600/34750 where I will be a buyer with a 34495 ‘’Closing Stop’’. The Dow has resistance from 35130/35380 where I will be a seller with a 35505 ‘’Closing Stop’’. If I am taken long I will have a T/P level at 34870. If I am taken short I will have a T/P level at 35030.
The narrowness of the Technology rally is reflected in the NASDAQ Composite which also hit a new all-time high on Friday. However, only 2.09% of its members are at new 52-week highs. This continues to be a fractured market. The NDX has support from 14950/15030 and I will now move my buy level to this area with a higher 14845 ‘’Closing Stop’’. If I am taken long I will have a T/P level at 15090.
I am still flat. Today, I will again raise my sell level to 176.35/17685 with a 177.21 tight stop. If I am taken short I will have a T/P level at 176.05.
Gold Rolling Contract
No Change. My only interest in buying Gold is on a further move lower to 1767/1782 with a 1759 stop. If I am taken long I will have a T/P level at 1789.
Silver Rolling Contract
I am still long Silver from last week at 25.40 with the same 24.75 stop. I will now lower my T/P level to 25.70.
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