(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers. )
LOWER GDP, GOLD SHORT COVERING CONTINUES
April 26, 2013
GDP for the United States rose only 2.5% for the quarter vs. 2.8% consensus. This simply means that the U.S. economy is growing slower than expectations of stock market bulls.
Earnings released since yesterday’s morning capsule are mixed.
Short covering in gold and silver continues. There is also a rumor that Janet Yellen will be the next Fed chief. She is a dove, this rumor is also partially contributing to the rise in gold and silver.
Gold futures are at $1467, silver futures are at $24.00, and oil futures are $93.04.
S&P 500 resistance levels are 1600; support levels are 1575, 1570, and 1565.
DJIA futures are down 37 points.
MIXED EARNINGS, GOLD RUN CONTINUES
April 25, 2013
As of this writing gold has crossed $1450. Our algorithms are detecting that the vast majority of buying is the result of short covering. It appears that many shorts failed to cover near the bottom and are now panicking.
Initial Unemployment Claims came at 339K vs. 351K. This leading indicator is showing that the employment picture is continuing to improve.
Earnings since yesterday’s morning capsule are mixed, projections are mostly lower. For the time being the stock market continues to ignore that earnings are decelerating.
Gold futures are at $1452, silver futures are at $23.66, and oil futures are $91.76.
S&P 500 resistance levels are 1600; support levels are 1575, 1570, and 1565.
DJIA futures are up 44 points.
MIXED EARNINGS, GOLD JUMPS ON SPECULATION OF EASING IN EUROPE
April 24, 2013
Earnings since yesterday morning’s capsule have been mixed. Over all earnings growth is decelerating. This is a red flag for conservative investors. For the time being bullish investors are simply ignoring this all important fact.
Gold is jumping on speculation of interest rate cut by the European Central Bank. This speculation is leading to more short covering putting temporary pressure on the upside in precious metals.
Gold futures are at $1427, silver futures are at $23.10, and oil futures are $89.51.
S&P 500 resistance levels are 1575, and 1600; support levels are 1565, 1558, and 1550.
DJIA futures are up 13 points.
DISMAL DATA FROM CHINA BUT THE U.S. EARNINGS EXCEED EXPECTATIONS
April 23, 2013
In China, the flash HSBC PMI fell to 50.5 in April from 51.6 in March. Stocks in Shanghai fell.
In contrast, earnings this morning in the United States are coming better than expectations. Expect at a bullish start to the day.
Gold futures are at $1420, silver futures are at $22.80, and oil futures are $88.25.
S&P 500 resistance levels are 1565, 1570, and 1575; support levels are 1558, 1550, and 1537.
DJIA futures are up 53 points.
ITALY ELECTS NEW PRESIDENT, YEN WEAKENS AND GOLD JUMPS
April 22, 2013
After a long stalemate, Italy has reelected Giorgio Napolitano as the new president. Italy still has the issue of electing the next prime minister pending. Italian stocks are rocketing and other European stocks are going along for the ride.
In Asia, yen has weakened and most Asian markets closed higher.
Gold has jumped and now is in the first resistance zone. How the metal behaves in this resistance zone will be very telling. Please note that on April 16th we upgraded our very, very short-term rating on precious metals to Mildly Bullish. Also on April 15th and 16th we took profits on our short silver position. The hindsight proves that both calls were spot on.
The streak of correct calls on metals continues unabated since 2007.
Gold futures are at $1425, silver futures are at $23.47, and oil futures are $88.52.
S&P 500 resistance levels are 1558, 1565, and 1570; support levels are 1550, 1537, and 1530.
DJIA futures are up 46 points.
