(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers. )
GOLD AND BONDS DOWN, STOCK UP ON BLOWOUT EMPLOYMENT REPORT
January Non-Farm Private Payrolls came at 276K vs. 225K consensus. Bonds, gold, and silver are falling on the report that in early trading, finally stocks are treating good news as good news.
Oil is jumping on reduction in rig count.
Greek stocks are under pressure.
German and French leaders have a plan to resolve the Ukraine situation; Russian market is up strongly on hopes of a resolution and high oil prices.
Our very, very short-term early stock market indicator is positive.
Gold futures are at $1239, silver futures are at $16.87, and oil futures are $51.71.
S&P 500 resistance levels are 2100; support levels are 2038, 2017, and 2000.
DJIA futures are up 60 points.
A SAUDI RUSSIA DEAL MAY PROVIDE OPPORTUNITIES OF A LIFE TIME
There are early indications from our sources that a deal between Saudi and Russia may be in the works over Syria. If such a deal materializes, it will provide opportunities of a life time. Specifically buying oil commodity, oil and gas stocks, oil producing countries, and short selling sectors that have benefited from low oil.
Of course there is no guarantee that such a deal come to fruition. If a deal definitely fails, expect oil to go into $30’s. However, just the prospect of the deal may keep oil at much higher levels. Further it is too dangerous to short oil.
Expect volatility in the markets over wrangling between Greece and ECB.
Oil is running up as Smart Money contemplates Saudi and Russian deal. The Russian market is also running up.
Smart Money is short selling bonds, gold and silver over the prospect of Saudi Russia deal.
Our very, very short-term early stock market indicator is positive.
Gold futures are at $1262, silver futures are at $17.24, and oil futures are $49.39.
S&P 500 resistance levels are 2063 and 2100; support levels are 2017, 2000, and 1975.
DJIA futures are up 105 points.
GOLD JUMPED ON SURPRISE EASING IN CHINA, API DATA GIVES PAUSE TO OIL BULLS
In a surprise move, People’s Bank of China cut bank reserve requirements. Gold and silver jumped on the news but have since backed off.
API inventory data showed oil inventories at about twice the level compared to consensus. This has given oil bulls pause. Now oil traders eagerly await DOE data which will be released at 10:30 am ET.
ADP employment data is roughly in line with consensus.
Interest rates continue to inch up.
Our very, very short-term early stock market indicator is neutral.
Gold futures are at $1267, silver futures are at $17.38, and oil futures are $51.32.
S&P 500 resistance levels are 2063 and 2100; support levels are 2017, 2000, and 1975.
DJIA futures are down 29 points.
ENTHUSIASM OVER GREECE ABANDONING HARDLINE
There is significant enthusiasm over Greece potentially abandoning the hardline. Greek market is up about 10%.
Euro is flying.
Bonds are falling.
Gold is falling.
Short squeeze in oil continues.
Our very, very short-term early stock market indicator is positive.
Gold futures are at $1266, silver futures are at $17.26, and oil futures are $50.80.
S&P 500 resistance levels are 2038, 2063, and 2100; support levels are 2000, 1975, and 1950.
DJIA futures are up 62 points.
CROSS CURRENTS AS INSTITUTIONAL INVESTORS MAKE SHORT-TERM TACTICAL MOVES
There are significant cross currents in the markets this morning. These cross currents are attributable to the start of a new month and institutions making significant tactical moves. Since these moves are not strategically driven, they should be ignored by long-term investors. However, whenever possible, from a short to medium-term point of view, advantage should be taken of these tactical moves.
Institutions are selling bonds simply to lock in recent profits; this is causing interest rates to go up.
Institutions are buying to cover short positions in oil; this is causing a short squeeze in oil to the upside.
Institutions are selling gold and silver causing a down draft.
In stocks, we are seeing both heavy buying and selling.
Our very, very short-term early stock market indicator is neutral.
Gold futures are at $1268, silver futures are at $17.08, and oil futures are $49.61.
S&P 500 resistance levels are 2017, 2038, and 2063; support levels are 1975, 1950, and 1925.
DJIA futures are up 60 points.
