US Markets Set New Milestones

U.S. markets were up in pre-holiday trade yesterday as consumer confidence and other economic data came in better than expected. Today, all U.S. financial markets are closed for the Thanksgiving Holiday.

The Thomson Reuters gauge of consumer sentiment beat expectations and came in at 75.1. Economists expected 73.5. Leading economic indicators came in with a 0.2 percent rise in October. In other good economic news, jobless applications fell last week as less Americans applied for unemployment benefits. The all-important non-farm payroll report comes out next week.

STOCKS
U.S. markets has yet another day of milestone gains and closes. However the S&P 500, feels like it is losing some momentum.

The DJIA was up 24.53 points to close at 16,097.33. The S&P 500 was also up a little over 4 points to finish over 1,800 at 1807.23. Technology stocks led sector gainers on both indexes. The Nasdaq Composite is now at a 13 year high. We have seen its winning streak go to five straight sessions and the technology heavy index added 27 points to close at 4044.75.

The Nikkei was up over one percent today as the Japanese benchmark has hit a new six month high. The index has gone above Monday’s high at 15,619 thanks to the yen hitting new lows and good retail data. The USD/JPY is now trading near $102 which is a new six month high. In mainland China, the Shanghai Composite has soared 1.3 percent and to its highest level in over a month on comments from central bank governor Zhou Xiaochuan that he is committed to speed up reforms in the liberalizing of interest rates.

Other Pacific Rim Markets were also higher today. The Philippine market was up one percent after Q3 GDP came in better than economists had thought. Their economy grew at 7 percent last quarter. Economist thought it would grow at 7.1 percent. The Thailand SET was up 0.1 percent as their prime minister survived a no confidence vote. Their currency, the Baht came back from its lowest level against the USD dollar to trade at 32.20.

CURRENCIES
EUR/USD (1.3594) could not stay above 1.6 and moved lower as yield spreads rose again lending support to the Dollar. We have support at 1.3550 and a break below that can move us down towards 1.3490. Resistance today is at the key 1.3630 level.

USD/JPY (102.109) is now at a 2013 high. We should be careful at these levels as a pause could be coming. We will see some profit taking then another sharp rally. That has been the pattern over the last week. We have support at 101.63 and a little lower at 101.20. Resistance is at 102.20. The GBP/USD (1.6314) is spiked higher. Should we close above 1.63, then above 1.6380 expect a full out rally. A fall below 1.6130 is bearish.

COMMODITES
Gold (1236.40) continues to fall from 1254.61 and we are at support at this level. We are targeting 1225 with a break below that aiming for 1200. Silver (19.60) has also fallen and can now target 18.50. We can achieve this with a break below 19.52/1. We will wait and see. Copper (3.22) has risen above 3.20 but we remained range bound until we clear 3.30 or fall below 3.101.

TODAY’S OUTLOOK
ALL U.S. MARKETS ARE CLOSED FOR THE THANKSGIVING HOLIDAY.

This means little data to drive the markets. European markets could be up on the coalition deal in Germany, but expect thinner volumes most of the day.