(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers.)

INFLATION DATA IN LINE

December 14, 2013

Core Consumer Price Index (CPI) came at 0.1% vs consensus of 0.1%.  CPI including food and energy fell 0.3%.

Low inflation numbers help the Federal Reserve stay on its present course.

Expect the markets to see saw based on news or rumors related to the fiscal cliff.

Gold futures are at $1696, silver futures are at $32.46, and oil futures are $86.49.

S&P 500 resistance levels are 1424, 1439, and 1444; support levels are 1415, 1410, and 1400.

DJIA futures are up 9 points.

NEW QE IN PRACTICAL TERMS

December 13, 2012

New QE is positive for U.S. stocks, positive for Japanese stocks, positive for emerging markets stocks, negative for treasury bonds, mildly negative for the U.S. dollar, negative for Japanese yen, positive for euro, mildly negative for gold and silver, and  mildly positive for oil and copper.

In the coming days, we will be explaining new QE in simple language that is  easy to understand.

Gold futures are at $1695, silver futures are at $32.75, and oil futures are $86.61.

S&P 500 resistance levels are 1439, 1444, and 1450; support levels are 1424, 1415, and 1410.

DJIA futures are up 19 points.

THE D-DAY FOR QE4, SERIOUS IMPLICATIONS FOR GOLD AND SILVER

December 12, 2012

All eyes are on FOMC statement after its meeting today.

The momo crowd is expecting QE4 with huge new treasury bond buying.

A majority of rational Fed watchers expect the Fed to simply replace or extend Operation Twist and not initiate any significant new program.  Operation Twist is currently scheduled to be terminated at the end of December.

What Fed does has serious implications for gold and silver.  The momo crowd is aggressively buying the metals this morning.

Stay tuned, as usual we will be back with our analysis and action items after the Fed releases its statement.

Gold futures are at $1716, silver futures are at $33.22, and oil futures are $86.33.

S&P 500 resistance levels are 1439, 1444, and 1450; support levels are 1424, 1415, and 1410.

DJIA futures are up 16 points.

OPTIMISM OVER FISCAL CLIFF TALKS

December 11, 2012

Markets are starting the day with optimism over the fiscal cliff talks.

A stronger than expected German ZEW survey is helping to improve the sentiment.

Futures are pointing higher.

Gold futures are at $1713, silver futures are at $33.10, and oil futures are $87.55.

S&P 500 resistance levels are 1439, 1444, and 1450; support levels are 1415, 1410, and 1400.

DJIA futures are up 27 points.

MARKETS SHUTTER OVER MONTI’S DECISION

December 10, 2012

Over the weekend, Italian Prime Minister Mario Monti decided to resign after 2013 budget passes into law.  The budget may become law as early as this month resulting in an election in February.

Italy’s borrowing costs jump sharply and the stock market fell.  10 year Italian bond yield rose 34 basis points.

Markets all across Europe are rattled. 10 year Spanish bond yields rose sharply.

The fear is that Silvio Berlusconi, the former Italian Prime Minister will return.

Depending upon what happens in Italy, there may be another round of uncertainties related to eurozone ahead.  Caution is warranted.  However there is a note of optimism arising out of a private meeting between Obama and Boehner.

Gold futures are at $1715, silver futures are at $33.33, and oil futures are $88.43.

S&P 500 resistance levels are 1424, 1439, and 1444; support levels are 1410, 1400, and 1380.

DJIA futures are up 7 points.

FREE: SUBSCRIBE TO ‘GENERATE WEALTH’ NEWSLETTER