(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers.)
PRESIDENT OBAMA TO SPEAK
November 30, 2012
President Obama is scheduled to speak later today. Expect the stock market to move up if there is optimism about the fiscal cliff and the market to move down strongly is there is pessimism.
There may be trading opportunities from Obama’s statement. Please stay alert.
Gold futures are at $1725, silver futures are at $34.12, and oil futures are $89.72.
S&P 500 resistance levels are 1424, 1439, and 1444; support levels are 1415, 1410, and 1400.
DJIA futures are up 8 points.
A POSITIVE STOCK MARKET TECHNICAL SIGNAL
November 29, 2012
As the chart shows, the U.S. stock market today traced out an ‘outside day’. In traditional technical analysis, an outside day is formed when the day bar is both higher and lower than the previous day’s bar. The outside day occurring in a fashion as shown on the chart is considered very positive in traditional technical analysis.
We do want to caution that traditional technical analysis is only 8% of our methodology.
In the morning the Dow Jones Industrial Average (DJIA) was down more than 100 points as a result of a comment by the Senate Majority Leader, Harry Reid, that not much progress had been made to resolve the fiscal cliff.
The market reversed sharply when the House Speaker, John Boehner, made optimistic comments about the fiscal cliff. Later President Obama added fuel to the fire by stating that he will shoot for a resolution by Christmas.
The market ended up over 100 points.
Gold futures are at $1726, silver futures are at $33.88, and oil futures are $89.73.
S&P 500 resistance levels are 1424, 1439, and 1444; support levels are 1410, 1400, and 1380.
DJIA futures are up 77 points.
GOLD GETTING HAMMERED
November 28, 2012
Gold is getting hammered this morning. No obvious news. There is no corresponding move in currencies. Our algorithms show that yesterday afternoon Smart Money stepped in with selling to meet heavy buying by the momo crowd.
This morning the momo crowd has continued to aggressively buy. Momo crowd’s aggressive buying is being met with aggressive selling by the Smart Money.
As we have been telling you for the last several months, there is a consistent pattern in gold trading. Smart Money consistently generates huge profits by short selling gold and silver every time the ill-informed momo crowd runs it up. After Smart Money has generated enough profits, they realize the profits by buying to cover and allow the momo crowd to run up gold and silver again to give another opportunity for Smart Money to short sell.
Those readers who have not watched our seminar Gold And Silver Post QE3 may want to take 48 minutes and watch this seminar to get better insights into precious metal markets as it relates to QE3. To get the link for the seminar, please email GoldQE3@TheAroraReport.com
Full disclosure: earlier this week we added to our short position in silver in ZYX Short Sell Change Alert.
Gold futures are at $1711, silver futures are at $33.31, and oil futures are $87.57.
S&P 500 resistance levels are 1400, 1410, and 1415; support levels are 1380, 1368, and 1358.
DJIA futures are down 38 points.
SHOCKING INCREASE IN DURABLE GOODS ORDERS
November 27, 2012
Lately it has been consensus that American business is not spending money on capital equipment, first due elections and now due to fiscal cliff.
The consensus has been for a drop of 0.4% in Durable Goods Orders ex-transport. Traditionally transport orders are excluded from any analysis because of their tremendous volatility.
This morning in a shocking development, Durable Goods Orders ex-transport came at +1.5%. Obviously a vast majority of gurus have been wrong.
Durable Goods Orders number is volatile, none the less the strength in the American economy is undeniable.
This development illustrates why it is best to leave opinions at the door and use only rigorous analytical analysis based on data for making investment decisions.
Gold futures are at $1748, silver futures are at $34.13, and oil futures are $89.81.
S&P 500 resistance levels are 1410, 1415, and 1424; support levels are 1380, 1368, and 1358.
DJIA futures are down 5 points.
HOLIDAY RETAIL SALES GET OFF TO A GOOD START
November 26, 2012
Black Friday weekend sales are estimated to be $59.1 billion roughly in line with consensus. This is up 12.8% over last year. Stores that combine online and mobile channels with physical stores such as Wal-Mart and Macy’s did well.
Market rally last week has already discounted in advance the good news from retail sales.
Drivers of market this week will be weakening Japanese yen, fiscal cliff negotiations, the aftermath of voting in Catalan in Spain seeking independence, and unrest in Egypt.
Gold futures are at $1751, silver futures are at $34.17, and oil futures are $84.76.
S&P 500 resistance levels are 1410, 1415, and 1439; support levels are 1380, 1368, and 1358.
DJIA futures are down 39 points.