WEEKLY MARKET DIGEST: EARLY ATTEMPTS TO SELL OFF ARE MET WITH BUYING $GLD $SLV $USO $DIA $SPY $QQQ $TBF $TBT

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

EARLY ATTEMPTS TO SELL OFF ARE MET WITH BUYING

May 30, 2014

Early attempts to sell stocks have met with buying.

Gold and silver are drifting lower.

Interest rates are slightly edging up.

Oil is falling.

Gold futures are at $1254, silver futures are at $19.00, and oil futures are $102.80.

S&P 500 resistance levels are 1925 and 1950; support levels are 1900, 1875, and 1950.

DJIA futures are down 22 points.

GDP FALLS, SILVER BREAKS $19 TO THE DOWN SIDE

May 29, 2014

Q1 GDP – second estimate falls 1% compared to consensus of -0.5%.  GDP deflator second estimate comes at 1.3% vs. 1.3% consensus.

The fall in GDP more than the consensus is not of much concern because GDP is a lagging indicator.  Our models focus on leading indicators.

A powerful leading indicator is Weekly Initial Unemployment Claims, they came at 300K vs. 318K consensus.  The lower the number, the better is the employment picture.

Gold continues its fall, silver breaks $19.00 level to the down side.

Oil is range bound but may move when Weekly Inventory numbers are released.

Interest rates continue to stay at extraordinary low levels.

Gold futures are at $1254, silver futures are at $18.88, and oil futures are $103.01.

S&P 500 resistance levels are 1925 and 1950; support levels are 1900, 1875, and 1850.

DJIA futures are up 22  points.

STRONG SENTIMENT FOR STRAIGHT SHOT TO 1970 IN S&P 500, BUT NOT SO FAST

May 28, 2014

In trading circles there is strong sentiment building that S&P 500 may see a straight shot to 1970.  As of this writing, S&P 500 is trading at 1910.  There is some validity to this line of thinking, after all S&P 500 has broken over 1900 and sellers may not emerge until S&P 500 is closer to 2000.  However, based on our over 30 years in the markets, it always pays to stay cautious especially when on a fundamental basis the market is fully valued.

Interest rates are falling sharply.  Lately when interest rates fall, stock market also goes down.

Gold is attempting a feeble rally.

Oil is range bound.

Gold futures are at $1264, silver futures are at $19.08, and oil futures are $103.97.

S&P 500 resistance levels are 1925 and 1950; support levels are 1900, 1875, and 1850.

DJIA futures are up 11 points.

DOZENS KILLED IN UKRAINE, GOLD FALLS AND STOCKS GO UP

May 27, 2014

Dozens of pro-Russians are killed in heavy fighting at Donetsk airport.  Gold is falling out of bed.  In early trading stocks are rising further encouraged by higher move in European stocks.

Oil is beginning to pull back.

Interest rates are range bound.

For the time being, the market is deciding to focus on positives and ignore the negatives.

Gold futures are at $1277, silver futures are at $19.14, and oil futures are $104.10.

S&P 500 resistance levels are 1925 and 1950; support levels are 1900, 1875, and 1837.

DJIA futures are up 71 points.

 

 

 

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