(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers. )
BLOWOUT EMPLOYMENT NUMBER
November Non Farm Payrolls came at 321K vs. 231K consensus. Temporarily stocks like it and bonds are not responding to this strong number. However, as the day progresses, large institutions may start taking some profits.
Gold first fell out of bed on this number as it should have, then the momo crowd started buying it aggressively.
Our very, very short-term early stock market indicator is negative.
Gold futures are at $1197, silver futures are at $16.38, and oil futures are $66.44.
S&P 500 resistance level is 2100; support levels are 2063, 2038, and 2017.
DJIA futures are up 23 points.
DRAGHI KILLS THE BUDDING RALLY, MOMO BUYS GOLD
Stocks in Asia have been higher overnight. European stocks were higher and U. S. stock futures were higher before Draghi stated in his press conference that ECB has started buying covered bonds. In plan English this means that ECB has NOT yet started full-blown QE. Stocks did not like this and have sold off.
Gold should have sold off on that news. Instead, the momo crowd started buying it aggressively. Two characteristics of the momo crowd are superficial analysis and panicking to buy. Psychologically momo crowd’s actions make sense considering the momo crowd has been sitting on huge losses in gold and silver, they have not cut their losses and instead continue to average down.
Oil and interest rates are falling based on the news from Europe.
Our very, very short-term early stock market indicator is negative.
Gold futures are at $1211, silver futures are at $16.62, and oil futures are $66.54.
S&P 500 resistance level is 2100; support levels are 2063, 2038, and 2017.
DJIA futures are down 38 points.
UNIT LABOR COSTS DECLINE
The most important economic data released this morning is that Q3 Unit Labor Costs have been revised to -1.0% vs. 0.0% consensus. This raises the specter of deflation.
Gold seems to be oblivious to the new data and momo crowd is buying aggressively this morning. Smart Money is inactive this morning in gold.
Oil and interest rates are range bound.
Our very, very short-term early stock market indicator is mild negative.
Gold futures are at $1203, silver futures are at $16.48, and oil futures are $67.57.
S&P 500 resistance level is 2100 ; support levels are 2063, 2038, and 2017.
DJIA futures are down 7 points.
MASSIVE SHORT SQUEEZES IN GOLD, SILVER, OIL, AND BONDS
Yesterday saw massive short squeezes in gold, silver, oil, and bonds. Typically up-moves on short squeezes are selling opportunities.
Stocks are in a seasonally strong period but extremely overbought.
Our very, very short-term early stock market indicator is mild positive.
Gold futures are at $1201, silver futures are at $16.40, and oil futures are $67.92.
S&P 500 resistance levels are 2063 and 2100; support levels are 2038, 2017, and 2000.
DJIA futures are up 27 points.
SWISS SAY NO TO GOLD
In a referendum that would have required Swiss Central Bank to buy large quantities of gold, Swiss voters overwhelmingly said no to this proposition.
After trading as low as $1140 last night in the wake of the Swiss referendum, gold has bounced by about $40.
Oil is also trying to bounce.
Interest rates are falling.
Our very, very short-term early stock market indicator is negative.
Gold futures are at $1179, silver futures are at $15.87, and oil futures are $66.52.
S&P 500 resistance levels are 2063 and 2100; support levels are 2038, 2017, and 2000.
DJIA futures are down 38 points.
You are receiving less than 2% of the content from our paid services …TO RECEIVE REMAINING 98%, TAKE A FREE TRIAL TO PAID SERVICES.
Please click here to take advantage of a FREE 30 day trial.
Check out our enviable performance in both bull and bear markets.
