(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers.)
MADRID PROTEST BRINGS MARKETS DOWN
July 20, 2012
Police fired rubber bullets on protested in a huge demonstration in Madrid against austerity. 39 people are reportedly injured.
Yield on Spanish bonds has surged over 7%.
After a string of earnings better than the worse case scenarios, GE disappointed this morning.
Some of the positive move in the stock market this week is technical in nature as it relates to option expiration.
Expect a volatile day ahead.
Gold futures are at $1575, silver futures are at $26.85, and oil futures are $90.98.
S&P 500 resistance levels are 1368, 1380, and 1400; support levels are 1358, 1352, and 1348.
DJIA futures are down 66 points.
EARNINGS BETTER THAN THE WORSE FEARS
July 19, 2012
Earnings season is in full swing. So far, earnings are better than the worse fears.
Market is encouraged. There has been massive short covering.
Some of the up move this week is related to option expiration. Please note that an up move related to option expiration usually reverses the next week.
Please also note that in absolute terms, earnings momentum from previous quarters is declining and projections are getting lower.
Gold futures are at $1590, silver futures are at $27.49, and oil futures are $91.21.
S&P 500 resistance levels are 1380, 1400, and 1410; support levels are 1368, 1358, and 1352.
DJIA futures are up 53 points.
OPTION EXPIRATION AHEAD
July 18, 2012
This is the option expiration week. Now that Bernanke testimony is known, the action in the stock market will be dominated by activity related to expiring options.
Bernanke is before the House today. If there is anything different from the Q&A yesterday, it may move the markets.
Gold futures are at $1572, silver futures are at $26.90, and oil futures are $89.02.
S&P 500 resistance levels are 1358, 1368, and 1380; support levels are 1348, 1339, and 1330.
DJIA futures are down 44 points.
MARKETS AWAIT BERNANKE TESTIMONY
July 17, 2012
Markets are anxiously awaiting Bernanke’s testimony in front of the Senate Banking Committee. Some expect a hint of additional easing. Market direction will be based on what Bernanke says.
Core CPI came at 0.2% vs 0.2% consensus. This shows that at least officially inflation is under control.
Gold futures are at $1588, silver futures are at $27.21, and oil futures are $89.17.
S&P 500 resistance levels are 1358, 1368, and 1380; support levels are 1348, 1339, and 1330.
DJIA futures are up 47 points.
QUIET OPENING AHEAD OF AN AVALANCHE OF EARNINGS
July 16, 2012
Markets are quiet ahead of an avalanche of earnings including those from KO, GS, JNJ, YHOO, INTC, BAC, HON, AXP, EBAY, IBM, and YUM.
Asian markets are mixed based on hopes of easing in China.
As of this writing, the European markets are holding small losses.
Gold futures are at $1590, silver futures are at $27.16, and oil futures are $87.25.
S&P 500 resistance levels are 1352, 1358, and 1368; support levels are 1339, 1330, and 1324.
DJIA futures are down 30 points.
