(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers.)
BETTER THAN EXPECTED ECONOMIC DATA CONTINUES TO POUR
January 4, 2013
Monthly employment from Bureau of Labor Statistics are popularly known as the mother of all numbers due to their importance. The most important number in the series is Nonfarm Private Payrolls; the number came at 168K vs. 145K consensus.
Futures are running higher on the positive number. However it is important to remember that this is a lagging indicator. Looking at investing based on this number is like driving looking through the rear view mirror.
Gold futures are at $1645, silver futures are at $29.66, and oil futures are $92.35.
S&P 500 resistance levels are 1465, 1472, and 1480; support levels are 1450, 1444, and 1439.
DJIA futures are up 15 points.
MORE GOOD ECONOMIC DATA
January 3, 2013
We have been writing for a while that the economic data in the U. S. is getting better. This morning ADP employment data was extremely positive; employment change 215K vs. 140K consensus. The report from the U. S. Department of Labor shows initial weekly unemployment claims at 372K about in line with consensus.
It is important not to get carried away as the super cliff is ahead. Super cliff consists of debt ceiling, spending cuts, and further attempts to raise taxes. It is likely to be an ugly fight in the Congress.
Gold futures are at $1676, silver futures are at $30.85, and oil futures are $92.79.
S&P 500 resistance levels are 1465, 1472, and 1480; support levels are 1450, 1444, and 1439.
DJIA futures are down 20 points.
GLOBAL RISK RALLY ON FISCAL CLIFF DEAL
January 2, 2013
Big institutional investors have been putting on risk (taking higher risk) in the wake of the last-minute fiscal cliff deal. DJIA futures jumped 250 points before backing off. Strong rallies are in progress in Asia and Europe.
Treasury bonds are falling. Gold and silver are rising as the momo crowd continues its aggressive buying.
Adding fuel to the fire is the fact that lots of new money flows into the markets during the first three trading days of the year.
It is worth noting that the can has been kicked down the road on two important issues of debt ceiling and sequestration (spending cuts).
Gold futures are at $1687, silver futures are at $31.16, and oil futures are $93.30.
S&P 500 resistance levels are 1450, 1465, and 1472; support levels are 1439, 1424, and 1415.
DJIA futures are up 206 points.
HUNT AND DESTROY ALGORITHMS ACTIVE AS THE FISCAL CLIFF APPROACHES
December 31, 2012
Hunt and destroy algorithms are active as the fiscal cliff approaches. The chart tells the story. The two big swoons on Friday in S&P 500 futures were the result of stops being taken out. Of course, today the market is bouncing. Those with stops lost lots of money.
During this period when the markets move rapidly based on news and rumors, please be especially careful about stops. Please study Trade Management Guidelines on how to use stops.
No body really knows with certainty how and when the fiscal cliff will be resolved. However two things are certain. first, it will be resolved; and second, fiscal cliff will offer opportunities on both long and short side.
Please stay tuned to the Real Time Feed for specific opportunities.
Gold futures are at $1661, silver futures are at $30.02, and oil futures are $90.33.
S&P 500 resistance levels are 1400, 1410, and 1415; support levels are 1380, 1368, and 1358.
DJIA futures are up 86 points.
