This post was published as Morning Capsule to the paying subscribers to ZYX Buy Change Alert and ZYX Short Sell Change Alert at 9:11 a.m. before the market open.
Yellen sees dissention by the Philadelphia Fed president. There are serious concerns that the Fed will have to tighten sooner than anticipated. Markets are addicted to easy monetary policy and may start experiencing withdrawal symptoms.
The world economy is improving and once over bought conditions are relieved, it will be a buying opportunity in stocks.
Please consider studying INCREASING THE HEDGE BY 5% ON MALAYSIAN AIR NEWS, IF THERE IS A BIG PULL BACK IT WILL BE A BUYING OPPORTUNITY.
Gold has a major support in the zone of $1284 to $1287. There is a serious risk that this support will break. There are a lot of stops under this support. A typical pattern is for the price to be artificially suppressed as stops are taken out. This attracts the momo crowd, leading to a sharp rally. The rally then fails as Smart Money sells into it.
As a full disclosure, ZYX Short is short on gold and a few miners.
Gold futures are at $1287, silver futures are at $20.61, and oil futures are $99.61.
S&P 500 resistance levels are 1975, 2000, and 2017; support levels are 1950, 1925, and 1900.
DJIA futures are down 118 points.
