WEEKLY MARKET DIGEST: EMPLOYMENT UNEXPECTEDLY ROCKETS UP, GOLD FALLS BELOW $1300 $GLD $SLV $USO $DIA $SPY $QQQ $TBF $TBT

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(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 UNEXPECTEDLY ROCKETS UP, GOLD FALLS BELOW $1300

November 8, 2013

Nonfarm Private Payrolls came at 212K vs. 110K consensus.  Whisper numbers were under 100K.

Gold has fallen below $1300 on this report.

Interest rates are shooting up.

The question to be asked is, “Is the unemployment rocketing up like the report shows or this report is simply aberrant?”  We will be digging deeper to find the answer.  We will let you know when we reach a conclusion.

Gold futures are at $1293, silver futures are at $21.49, and oil futures are $94.30.

S&P 500 resistance levels are 1766, 1775, and 1800; support levels are 1725, 1710, and 1700.

DJIA futures are down 44 points.

ECB UNEXPECTEDLY CUTS RATES, GOLD INVESTORS TAKE NOTICE

November 7, 2013

ECB unexpectedly cut its main benchmark rate by 25 basis points to 0.75%. Euro is falling against the dollar.  Gold investors should take note that the reason behind ECB rate cut is fear of deflation.  Traditionally gold is a hedge against inflation and deflation is bad for gold.  However, these days the momo crowd controls most of gold trading.  The momo crowd buys gold on deflation.  Today was no different.  Upon the announcement of ECB rate cut the momo crowd started aggressively buying gold and ran it up to $1326.  The momo crowd contends that this time it is different, deflation means printing presses at Central Banks will go in high gear.

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In our 30 years of experience, “It is different this time” works only over short periods of time, not over the long-term.  Of course,  Smart Money knows this and slammed the momo crowd with aggressive sells as gold crossed $1325.  In the battle that ensued, as of this writing  Smart Money is winning, gold has fallen to $1302.

In the U. S. Q3 GDP-advanced came at 2.8%, much stronger than the consensus of 2.0%.  As a result, interest rates are rising.

Gold futures are at $1302, silver futures are at $21.50, and oil futures are $94.24.

S&P 500 resistance levels are  1775, and 1800; support levels are 1766, 1750, and 1725.

DJIA futures are up 69 points.

THE BULL TAKES CHARGE

November 6, 2013

In the absence of any significant economic data, the bull is taking charge again.  The interpretation of this simple fact is that the natural tendency of this market is to go higher.

Gold and silver are trying to stage a bounce.

Interest rates are jumping.

Oil keeps at low levels.

Gold futures are at $1317, silver futures are at $21.89, and oil futures are $93.97.

S&P 500 resistance levels are 1775, and 1800; support levels are 1750, 1725, and 1710.

DJIA futures are up 52 points.

GOOD NEWS FROM CHINA UNABLE TO OVERCOME OVERBOUGHT CONDITIONS

November 5, 2013

The People’s Bank of China injected liquidity.  In the past, such an event has caused the U. S. market to go up strongly, but not today.  The stock market is swimming up against very overbought conditions. Normally a 3 -5% correction is seen when similar conditions prevail.  However, this is the strongest seasonal period for the stock market and the junk momo crowd is aggressively buying junk momo stocks.  Junk momo stocks are the stocks that are levitating far above their fair values on continuing buying by junk momo investors simply because these stocks have gone up.

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Oil is hovering around $95.

Trading in gold and silver is light, mostly around unchanged levels.

Interest rates are ticking up.

Gold futures are at $1316, silver futures are at $21.73, and oil futures are $94.31.

S&P 500 resistance levels are 1766, 1775, and 1800; support levels are 1750, 1725, and 1710.

DJIA futures are down 51 points.

OPTIMISM CONTINUES

November 4, 2013

Optimism among stock market investors continues.  If the pre-market is any indication, stocks should open higher.

Interest rates are stable.  Oil is falling.

Gold is attempting a bounce.

Gold futures are at $1319, silver futures are at $21.85, and oil futures are $94.23.

S&P 500 resistance levels are 1766, 1775, and 1800; support levels are 1725, 1710, and 1700.

DJIA futures are up 46 points.

 

 

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