On 31/08/2021 TraderTalent.com is bringing you another guest post from Bryan Noble.
U.S. Equity Markets bounced around to start the week, finishing the day mixed, in a session where the Dow closed lower by 0.16%, while the NASDAQ 100 surged to new all-time highs with a gain of 1.12%. Markets rose to new all-time highs on a relatively quiet day. The White House raised its 2021 domestic economic growth expectation from 5% to 7.2% due to a quicker-than-expected rebound driven by increasing vaccinations. Economic data was weak, with both Pending Home Sales and the Dallas Federal Reserve Manufacturing Index falling short of estimates. The big economic data point comes out later this week, with the Labour Department’s Non-Farm Payroll and Unemployment rate report. This will be closely watched, as the labour market’s recovery is a key indicator of when the Federal Reserve will begin to withdraw economic support European Markets closed higher. The European Union was said to prepare a recommendation to halt non-essential travel from the U.S. due to the rising rate of COVID-19 Delta variant infections. European Central Bank Governing Council member François Villeroy de Galhau said it needs to account for the improving economic conditions, implying a potential slowdown in bond purchases. German Chancellor Angela Merkel’s Christian Democratic Union Party continues to lose ground to the Social Democrats, ahead of the September 26 election. In Asia, Japanese Prime Minister candidate Fumio Kishida said the government must launch a new economic stimulus package worth roughly $300 billion “as soon as possible.” The People’s Bank of China added $6.2 billion worth of liquidity to the financial system in an attempt to keep the banking system well supplied with funds and support the growth outlook Japan’s Retail Sales data for July was stronger than expected, rising versus June on a year-over-year basis, as department store sales held up. Australia’s second-quarter company operating profits exceeded expectations, and the mining, information technology, and financial services sectors led the gains. Elsewhere, Oil rose 0.39% as Hurricane Ida shut down nearly all of U.S. production in the Gulf of Mexico, while Gold fell 0.35% on little news.
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 lost 180 points yesterday and is now ahead by 1247 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 0.43% higher at a price of 4526.
The Dow Jones Industrial Average closed 65 points lower for a 0.16% loss at a price of 35,399.
The NASDAQ 100 closed 1.12% higher at a price of 15,605.
The Stoxx Europe 600 Index closed 0.3% higher.
This morning, the MSCI Asia Pacific Index rose 0.5%.
This morning, the Nikkei closed 1.10% higher at a price of 28,110
The Bloomberg Dollar Spot Index closed 0.1% lower.
The Euro closed 0.1% higher at $1.1801.
The British Pound closed 0.1% higher at 1.3773.
The Japanese Yen fell 0.1%, closing at $109.85.
Germany’s 10-year yield closed two basis points lower at -0.44%.
Britain’s 10-year yield closed one basis points lower at 0.57%.
US 10 Year Treasury closed three basis points lower at 1.27%.
West Texas Intermediate crude closed 0.39% higher at $68.98 a barrel.
Gold closed 0.35% lower at $1,812.10 an ounce.
This morning on the Economic Front we have German Unemployment at 8.55 am. This is followed at 9.30 am by UK Money Supply, Mortgage Approvals and Net Lending to Individuals. At 10.00 am we have Euro-Zone CPI. Finally, we have U.S Housing Price Index at 2.00 pm, Chicago Purchasing Managers’ Index at 2.45 pm and Consumer Confidence at 3.00 pm.
September S&P 500
My latest short 4503 S&P position did not work well as I was stopped out of this position after a late sell-off into the close at 4521. This morning the S&P is trading in my second sell range and I am now short again here at 4541. I will add to this position on any further move higher to 4561 with a now higher 4573 ‘’Closing Stop’’. This morning’s ramp up in the S&P Futures Contract, has printed an 11th consecutive Weekly New All-Time High and we are now in trendline resistance at the 4540/4550 area. I will have a T/P level on this short position at 4524. The S&P has support from 4472/4487 and I will continue to be a buyer on any dip to this area with a 4458 ‘’Closing Stop’’. If I am taken long I will have a T/P level at 4499.
The Euro again fell shy of my 1.1750 buy level and I am still flat. I will now raise my buy level to 1.1725/1.1765 with a higher 1.1673 stop. If I am taken long I will have a T/P level at 1.1795.
September Dollar Index
No Change. I am still a seller from 93.05/93.45 with the same 93.71 stop. If I am taken short I will have a T/P level at 92.80.
The DAX is opening higher this morning, above 15900. The DAX has strong resistance from 15990/16060 where I will be a seller with a 16135 stop. Remember, the DAX needs to break and close below 15600 before we will see a more meaningful correction. If I am taken short I will have a T/P level at 15940.
The FTSE continues to struggle to follow the European Indexes higher. We have support from 7030/7080 where I will be a strong buyer with a 6985 stop. If I am taken long I will have a T/P level at 7115.
Dow Rolling Contract
The Dow struggled yesterday, just missing my initial 35300 buy level before rallying to sit higher at 34480 yesterday. Breadth was weak yesterday with the McClellan Oscillator closing lower, but still in positive territory at +43. Internally this market continues to struggle as it has been three months since the NYSE Advance/Decline line has made a new high. Today, I will continue to be an aggressive seller from 35850/36050 with the same 36305 ‘’Closing Stop’’. I will now raise my buy level slightly to 35160/35310 while leaving my 34895 ‘’Closing Stop’’ unchanged. If I am taken short I will have a T/P level at 35600. If I am taken long I will have a T/P level at 35420.
The NDX led yesterday’s advance, rallying 1.1% relative to the Dow’s decline of 0.14%. It was remarkable that the NASDAQ Breadth was negative. A new high accompanied by Negative Breadth often attends a market high. Yesterday, the NASDAQ traded the whole of my sell level for a now 15560 average short position. I will raise my T/P level on this trade to 15510 while leaving my 15705 ‘’Closing Stop’’ unchanged.
I am still flat the Bund. I will now raise my sell level to 176.70/177.20 with a higher 177.61 stop. If I am taken short I will have a T/P level at 176.35.
Gold Rolling Contract
No Change. I am still a small buyer on any dip lower to 1770/1785 with the same 1759 stop. If I am taken long I will have a T/P level at 1793.
Silver Rolling Contract
I am still flat. I will now raise my buy level to 23.00/23.60 with a higher 22.55 stop. If I am taken long I will have a T/P level at 24.05.
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