(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers. )
POTENT NEW SPIKE TO THE PUNCH
Overnight, China added a potent new spike to the punch by lowering interest rates and taking a series of measures to stimulate the economy.
Gold, oil and stocks are spiking.
Our very, very short-term early stock market indicator is positive.
Gold futures are at $1201, silver futures are at $16.40, and oil futures are $77.21.
S&P 500 resistance levels is 2100; support levels are 2063, 2038, and 2017.
DJIA futures are up 145 points.
THE FED IS CONFUSED
Our take on FOMC minutes released yesterday afternoon is that the Fed is confused. In our view this is not a welcome development. We would rather have a Fed that knows what it is doing. This was the case under Bernanke. Yellen does not seem to be providing the same quality of leadership.
Core CPI came at 0.2% vs. 0.1% consensus.
In spite of slightly higher inflation data, interest rates are slightly pulling back.
Oil is range bound.
Gold is highly volatile.
Our very, very short-term early stock market indicator is mild negative.
Gold futures are at $1191, silver futures are at $16.19, and oil futures are $74.79.
S&P 500 resistance levels are 2063 and 2100; support levels are 2017, 2000, and 1975.
DJIA futures are down 71 points.
FED MINUTES MAY MOVE THE MARKETS, IGNORE POOR HOUSING STARTS
The Fed will release minutes from the last FOMC meeting at 2:00 pm ET today. Please stay extra alert as there may be opportunities.
October Housing Starts came at 1.009M vs. 1.025M consensus. These numbers are poor but this is like looking in the rear view mirror. The forward-looking data is building permits; October Building Permits came at 1.080M vs. 1.040M consensus.
Interest rates are inching up in early trade.
Gold and oil are range bound.
Our very, very short-term early stock market indicator is neutral
Gold futures are at $1198, silver futures are at $16.26, and oil futures are $74.99.
S&P 500 resistance levels are 2063 and 2100; support levels are 2038, 2017, and 2000.
DJIA futures are down 5 points.
HIGHER THAN EXPECTED INFLATION NUMBER
October Core PPI came at 0.4% vs. 0.1% consensus. Core PPI carries a heavy weight in our models because inflation tends to show up in producer prices well in advance of consumer prices.
Interest rates and stock market are ignoring this higher number for the time being.
Oil is range bound.
Short squeeze in gold continues.
Our very, very short-term early stock market indicator is neutral with a negative bias.
Gold futures are at $1197, silver futures are at $16.24, and oil futures are $75.45.
S&P 500 resistance levels are 2063 and 2100; support levels are 2017, 2000, and 1975.
DJIA futures are down 10 points.
JAPAN ENTERS RECESSION, U. S. INDUSTRIAL PRODUCTION FALLS
Japan is important because it is the third largest economy in the world. In the last quarter, Japanese economy shrank by 1.6% compared to consensus of a gain of 2.2%. Having shrunk two quarters in a row, Japan has officially entered into a recession.
U. S. Industrial Production came at -0.1% vs. +0.2% consensus.
Interest rates are falling.
Oil is pulling back.
Gold is slightly pulling back from Friday’s massive short squeeze.
Our very, very short-term early stock market indicator is neutral
Gold futures are at $1187, silver futures are at $16.16, and oil futures are $75.07.
S&P 500 resistance levels are 2038, 2063, and 2100; support levels are 2017, 2000, and 1975.
DJIA futures are down 36 points.
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