(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers. )
EMPLOYMENT DATA OFFERS NO CLARITY, MILDLY NEGATIVE FOR GOLD AND SILVER
June 7, 2013
May Non-Farm Payrolls came at 175K vs. 159K, in other words employment is improving in the private sector. However, unemployment rate rose to 7.6% vs. 7.5%.
Due to Obamacare there is a shift towards more part-time workers. Therefore, we take a careful look at average hours worked. Average work week came at 34.5 vs. 34.5; in other words, no clarity here either.
Both stocks and bonds are highly volatile here. Expect trading to be highly momentum driven. In other words, which ever side, bulls or bears gets an upper hand, the momentum crowd is likely to jump on that side and over shoot.
The data is mildly negative for gold and silver.
Gold futures are at $1410, silver futures are at $22.51, and oil futures are $95.08.
S&P 500 resistance levels are 1635, 1650, and 1675; support levels are 1625, 1607, and 1600.
DJIA futures are up 58 points.
ALL EYES ON TOMORROW’S EMPLOYMENT DATA, GOLD REACTS TO DRAGHI
June 6, 2013
All eyes are on tomorrow’s employment data that will be released at 8:30 AM ET.
The European Central Bank (ECB) left its key interest rate unchanged at 0.5%.
Gold is falling below $1400 based on Draghi’s comments.
Our stance remains select buying, select shorting, and select profit taking.
Gold futures are at $1397, silver futures are at $22.36, and oil futures are $94.24.
S&P 500 resistance levels are 1625, 1635, and 1650; support levels are 1607, 1600, and 1575.
DJIA futures are down 16 points.
ADP EMPLOYMENT CHANGE WORSE THAN EXPECTATIONS, GOLD RISES
June 5, 2013
ADP employment change came at 135K vs. 157K consensus.
The mother of all numbers, May employment data from the Department of Labor, will be released tomorrow at 8:30 AM ET.
Gold has moved up. The thinking is that a bad ADP number means taper is not likely in the near future. Going forward, gold traders should remember that taper equals lower gold prices unless market psychology changes.
Gold futures are at $1402, silver futures are at $22.55, and oil futures are $93.82.
S&P 500 resistance levels are 1635, 1650, and 1675; support levels are 1607, 1600, and 1575 .
DJIA futures are down 54 points.
IMPORTANT SPEECH BY ABE TOMORROW, SMART MONEY SELLS GOLD INTO THE STRENGTH
June 4, 2013
The Prime Minister of Japan Shinzo Abe is scheduled to deliver an important speech tomorrow that will outline ‘third arrow’ of his economic plan. The first two arrows have been monetary and fiscal policies. The third arrow will structural and regulatory reforms.
At this time, Japan has become very important because it is affecting all of our investments.
Last night and this morning, our algorithms detected light selling by Smart Money in gold and silver. It appears that Smart Money is a seller above $1410 in gold. We will wait for a follow through and more confirmation before changing our ratings on gold and silver. Sometimes such maneuvers are a head fake.
Gold futures are at $1394, silver futures are at $22.33, and oil futures are $93.13.
S&P 500 resistance levels are 1650, 1675, and 1700; support levels are 1635, 1625, and 1607.
DJIA futures are up 23 points.
STOCK BULLS TRYING TO ASSERT CONTROL AFTER FRIDAY’S DEBACLE, GOLD BUYING IN ASIA
June 3, 2013
After Friday’s afternoon debacle in stocks, bulls are trying to assert control again.
Considerable buying in gold was seen in Asia overnight. For a very brief period this morning aggressive buying was seen by the momo crowd in North America but it has fizzled out as of this writing.
Our stance remains select buying, select shorting, and select profit taking.
Gold futures are at $1394, silver futures are at $22.57, and oil futures are $92.58.
S&P 500 resistance levels are 1650, 1675, and 1700; support levels are 1625, 1607, and 1600.
DJIA futures are up 69 points.
