(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers. )
MUTED REACTION TO EBOLA IN NEW YORK
Markets are showing only a muted reaction to Ebola in New York. When the news broke last night, futures went down. However, this morning they have mostly recovered.
Just as a reminder, QE is ending at the end of this month. This is the main reason for recent volatility in the markets.
Our very, very shot-term early market indicator is neutral with a negative bias.
There is mild selling in oil and bonds.
Aggressive buying is seen by the momo crowd in gold and silver.
Gold futures are at $1232, silver futures are at $17.23, and oil futures are $80.90.
S&P 500 resistance levels are 1950, 1975, and 2000; support levels are 1925, 1900, and 1875.
DJIA futures are down 12 points.
GERMAN DATA TRUMPS TERROR IN CANADA, GOLD SHOWS ITS TRUE COLOR
Yesterday Smart Money sold lightly in the early morning when the market was up a lot. Smart Money also sold gold in the range of $1250 to $1254.
Then the market went down on the terror incident in Canada. Gold showed its true colors as it started going down when the news of terror broke. Gold is supposed to be a hedge against terrorism. Since gold was so close to breaking out of its range to the upside, the break should have happened on the terror incident. Instead Smart Money started selling it aggressively after earlier light selling.
All indications early this morning were that the market would be down, but then came surprising good economic data from Germany and the futures turned around.
Our very, very short-term early market indicator is positive.
Oil is struggling to hold above $80.
Gold is falling out of bed.
Interest rates are inching up.
Gold futures are at $1234, silver futures are at $17.17, and oil futures are $81.28.
S&P 500 resistance levels are 1950, 1975, and 2000; support levels are 1925, 1900, and 1875.
DJIA futures are up 133 points.
SMART MONEY LIGHTLY SELLING STOCKS, BONDS, GOLD AND SILVER
Our algorithms have detected light selling by Smart Money in stocks, bonds, gold and silver.
Our very, very short-term early market indicator is neutral.
Oil is rallying, gold is pulling back, and interest rates are inching up.
Gold futures are at $1243, silver futures are at $17.24, and oil futures are $82.98.
S&P 500 resistance levels are 1950, 1975, and 2000; support levels are 1925, 1900, and 1875.
DJIA futures are up 16 points.
STOCK MOMENTUM ON GOOD EARNINGS, GOLD TRYING TO BREAKOUT
Market is encouraged by good earnings from AAPL, UTX, and TRV. At least for the time being, market is ignoring lousy earnings from KO and MCD.
The data from China was better than consensus. Lot of buying in gold in China overnight may lift gold out of the present range.
There is more short covering in oil.
Interest rates are trying to inch up.
Our very, very short-term early market indicator is positive.
Gold futures are at $1252, silver futures are at $17.60, and oil futures are $82.89.
S&P 500 resistance levels are 1925, 1950, and 1975; support levels are 1900, 1875, and 1850.
DJIA futures are up 65 points.
IBM SPOILS THE PARTY, GOLD FLIES
Stock futures were up last night and early this morning following the momentum from late last week until IBM reported downright lousy earnings.
Gold started flying as European stocks weakened. This is one of those rare times when buying in gold is coming from Europe.
Oil is holding its gains from last week.
As stocks weaken, money is flooding into bonds. As a result, interest rates are falling.
Our very, very short-term market indicator is mild negative.
Gold futures are at $1244, silver futures are at $17.42, and oil futures are $82.52.
S&P 500 resistance levels are 1900, 1925, and 1950; support levels are 1875, 1850, and 1832.
DJIA futures are down 98 points.
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