(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers.)
PLEASE BE ALERT FOR OPPORTUNITIES IN THE WAKE OF BERNANKE SPEECH
August 31, 2012
The much-anticipated Bernanke speech starts at 10:00 am ET at Jackson Hole. Headlines may start leaking out around 9:00 am ET. Will Bernanke announce QE3? If yes, what will be the size of QE3? Will Bernanke not announce QE3 but give a strong indication that in the September meeting the Fed will announce QE3? These are the main questions.
Gold futures are at $1661, silver futures are at $30.66, and oil futures are $95.38.
S&P 500 resistance levels are 1410, 1414, and 1424; support levels are 1400, 1380, and 1368.
DJIA futures are up 88 points.
ALL EYES ON JACKSON HOLE
August 30, 2012
All eyes are on Jackson Hole where Bernanke will speak tomorrow. Expect today to be a day of position squaring by professionals and institutions.
Gold futures are at $1662, silver futures are at $30.77, and oil futures are $95.21.
S&P 500 resistance levels are 1410, 1415, and 1424; support levels are 1400, 1380, and 1368.
DJIA futures are down 43 points.
GDP GROWS AT 1.7%
August 28, 2012
Q2 GDP official estimate came at 1.7% vs. 1.6% consensus and 1.4% whisper number.
Not long ago those addicted to candy from the Fed were projecting that this number would be negative.
The point is that this is another one of the recent economic numbers showing that the U.S. economy is improving.
It is difficult to see how anyone looking at hard data can reconcile massive QE3 with improving economy.
Gold futures are at $1665, silver futures are at $30.80, and oil futures are $95.94.
S&P 500 resistance levels are 1415, 1424, and 1437; support levels are 1400, 1380, and 1368.
DJIA futures are up 16 points.
NEGATIVE INTEREST RATE IN GERMANY
August 27, 2012
In a 12 month paper auction of sovereign debt in Germany, interest rate is negative. In other words investors are willing to pay interest to the German government to lend it money.
For practical purposes it means there is still a lot of fear among big institutional investors.
Gold futures are at $1669, silver futures are at $30.85, and oil futures are $97.35.
S&P 500 resistance levels are 1415, 1424, and 1437; support levels are 1410, 1400, and 1380.
DJIA futures are up 19 points.
SURPRISE DRAGHI JACKSON HOLE CANCELLATION PUTS A FLOOR UNDER THE MARKETS
August 28, 2012
In a surprise, Mario Draghi, the ECB chief, has cancelled his speech at Jackson Hole at the Kansas Fed Symposium. Draghi sites schedule as the reason.
Cancellation is likely to brew speculation that something big from ECB is coming soon. Such speculation is putting a floor under the markets.
Gold futures are at $1664, silver futures are at $30.81, and oil futures are $95.95.
S&P 500 resistance levels are 1410, 1415, and 1424; support levels are 1400, 1380, and 1368.
DJIA futures are down 22 points.
