WEEKLY MARKET DIGEST: MARKETS PARTY POST FED BUT DO NOT IGNORE ANOMALIES, GOLD SHORT SQUEEZE $GLD, $SLV, $SPY, $QQQ, $TBT, $USO

Yesterday we informed you that according to our algorithms massive short squeeze was occurring in gold and miners especially GDXJ. We also informed you that smart money was selling into the strength. We also took a position in GDXJ on the short side.

Such short squeezes tend to fizzle out unless there is a new fundamental development

Gold futures are at $1313, silver futures are at $20.75, and oil futures are $106.40.

S&P 500 resistance levels are 1975  and 2000 ; support levels are 1925 ,  1900 and 1875 .

DJIA futures are up 26 points.

 MARKETS PARTY POST FED BUT DO NOT IGNORE ANOMALIES

June 19, 2014

All markets partied after FOMC statement but be cautious  of anomalies. Fed says inflation under control but gold runs. This morning oil is falling but gold is rising further. Bonds are also rising with the stocks and gold.No one rings a bell at the top. We are not saying that this the top but caution is warranted.

Gold futures are at $1288, silver futures are at $20.13, and oil futures are $105.65.

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S&P 500 resistance levels are 1975  and 2000 ; support levels are 1950 ,1925 and  1900.

DJIA futures are up 12 points.

EXPECTATIONS OF DOVISH VIEW FROM THE FED

June 18, 2014

FOMC is meeting today. Expectations are of a dovish view  both on the interest rates and inflation. The Fed is expected to continue to taper by $10 billion per month.Please stay tuned  this afternoon in case  there are opportunities arising out of the Fed statement.

In early trade, interest rates are falling and gold is higher in anticipation of the Fed.

Stocks are range bound waiting for the Fed.

Oil is range bound.

Gold futures are at $1272, silver futures are at $19.73, and oil futures are $106.65.

S&P 500 resistance levels are 1950 and 1975 ; support levels are 1925, 1900, and 1875 .

DJIA futures are up 2  points.

HOT CPI TEMPORARILY KILLS BUDDING STOCK RALLY

June 17, 2014

In the early trading,  a budding rally in stocks was under way until Consumer Price Index (CPI) number came too hot for the market. Core CPI  came at 0.3% vs. 0.2%.May building permits came at  991k vs. 1050k consensus. Housing starts came at 1001k vs. 1028k consensus.

Interest rates are ignoring weak permits data and inching up on hot CPI.

Yesterday we informed you that rise in gold price was an anomaly;  today gold is giving up those gains in spite of hot CPI.

Gold futures are at $1264, silver futures are at $19.57, and oil futures are $106.60.

S&P 500 resistance levels are 1950  and 1975 ; support levels are 1925 ,1900 , and 1875 .

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DJIA futures are down 28 points.

GOLD UP ON IRAQ BUT OIL AND STOCKS STABLE

June 16, 2014

Typically oil is the leading indicator of trouble in Iraq and gold follows oil. In an anomaly, gold is up  but oil is stable.It is worth noting that gold is approaching stiff resistance zone of $1288-1313.

Stocks are stable with slight downside bias.

Interest rates are stable.

 

Gold futures are at $1281, silver futures are at $19.77, and oil futures are at  $107.09.

S&P 500 resistance levels are 1950  and 1975 ; support levels are 1925, 1900, and $1875 .

DJIA futures are up/down points.