WEEKLY MARKET DIGEST: CURRENCIES IN THE FOREFRONT AFTER OBAMA SCHLACKED $GLD $SLV $USO $DIA $SPY $QQQ $TBF $TBT

Twitter
LinkedIn
Facebook

(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers. ) 

MARKET REACTION TO THE EMPLOYMENT REPORT WILL BE A TELL

October non-Farm Private Payrolls came at 209K vs. 230K consensus.  For the last several years, such below consensus numbers have been treated positively by stocks, bonds, and gold.  The reasoning has been that weaker numbers meant more QE.  Now that the QE is over, we will be carefully observing the internals of various markets in the aftermath of this employment number.

Gold is staging a rally on the weak number.

Stocks, bonds and interest rates are range bound.

Our very, very short-term early market indicator is neutral with a negative bias.

Gold futures are at $1149, silver futures are at $15.53, and oil futures are $78.46.

S&P 500 resistance levels are 2038, 2063, and 2100; support levels are 2017, 2000, and 1975.

DJIA futures are down 17 points.

CURRENCIES IN THE FOREFRONT

Currencies are in the forefront. Lately over the last few weeks,  the dollar has been screaming higher.  Today in the early trade, dollar is slipping ahead of a rate decision by ECB.

Dollar has been extremely volatile overnight against yen after racing to a seven-year high near 115.50.

Currencies of commodity countries such as Australia and Canada have been hit hard over the last few weeks. However, in early trade, today they appear to be heading towards a key reversal.

If there is a key reversal, this will have positive impact on gold and stocks.

See also  U.S. ACCUSED OF WAR PROFITEERING, HONG KONG STOCKS UP 5% ON A RUMOR

Stocks, interest rates, and oil are range bound in early trade.

Our very, very short-term early market indicator is neutral with negative bias.

Gold futures are at $1144, silver futures are at $15.28, and oil futures are $78.49.

S&P 500 resistance levels are 2017, 2038, and 2063; support levels are 2000, 1975, and 1950.

DJIA futures are down 23 points.

OBAMA SCHLACKED, STOCKS LOVE IT BUT GOLD HATES IT

Republicans have wrested control of the Senate.  Republicans have also increased their majority in the House, not seen since the 1940′s

Wall Street is mostly Republican and is celebrating by aggressively bidding up stocks.

Gold hates the Republican win.  With Republican majority in the Senate, the Fed is going to come under increasing scrutiny.  The bull case for gold has in part relied on  easy monetary policy of the Fed.

Interest rates are rising.

Oil is staging a dead cat bounce.

Gold has broken a key support at $1150 to the down side.

Our very, very short-term early market indicator is mild positive.

Gold futures are at $1144, silver futures are at $15.37, and oil futures are $77.47.

S&P 500 resistance levels are  2038 and 2063; support levels are 2017, 2000, and 1975.

DJIA futures are up 93 points.

EUROZONE FORECAST SLASHED, SAUDI ARABIA CUTS U.S. OIL PRICES

The European Commission slashed growth projection for the eurozone from 1.7% to 1.1%.

Saudi Arabia cut U. S. oil prices.  Now oil has decisively broken the $80 support level.

Interest rates and gold are range bound.

See also  MOMO CROWD DOES NOT BELIEVE THE FED AND AGGRESSIVELY BUYS STOCKS

Our very, very short-term early market indicator is mild negative.

Gold futures are at $1167, silver futures are at $15.96, and oil futures are $77.04.

S&P 500 resistance level is 2017; support levels are 2000, 1975, and 1950.

DJIA futures are down 31 points.

OPTIMISM OVER ELECTION RESULTS

Wall Street is mostly Republican.  There is considerable optimism over potential Republican control of the Senate.  If election results are in Republicans’ favor more than expectations, very short-term blow off top in the stock market is possible on Wednesday morning.  On the other hand, if Democrats manage to keep control of the Senate, the possibility of a sell off cannot be discounted.

Gold is trying to stage a dead cat bounce.

Oil and interest rates are range bound.

Our very, very short-term early market indicator is mild negative.

Gold futures are at $1169, silver futures are at $16.03, and oil futures are $80.74.

S&P 500 resistance levels is 2017; support levels are 2000, 1975, and 1950.

DJIA futures are down 18 points.

 

You are receiving less than 2% of the content from our paid services …TO RECEIVE REMAINING 98%, TAKE A FREE TRIAL TO PAID SERVICES.

Please click here to take advantage of a FREE  30 day trial.

Check out our enviable performance in both bull and bear markets.

Subscribe to 'Generate Wealth'

Free Forever

More To Explore

30 Day Free Trial

Cancel within 30 days and you owe nothing

When you take a FREE 30 day trial, you get access to powerful techniques used by billionaires and hedge funds to grow richer. You can continue to use these powerful techniques to grow richer even if you cancel your subscription. You come out ahead by subscribing no matter how you look at it.

Do you want to gain an edge in the markets? Join thousands of your fellow investors and money managers to subscribe to Generate Wealth newsletter.

FREE FOREVER

Follow The Most Accurate Stock Market Analysis

Unrivaled Insights
In Bull and Bear Markets

Generate Wealth Newsletter
Free Forever

Generate Wealth Newsletter
Free Forever