(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers. )
GDP RISES BUOYED BY CONSUMER SPENDING, SHORT SQUEEZE IN GOLD AND OIL
This is what you need to know today.
Third quarter GDP came at 2% vs. 1.9% consensus. Digging below the surface, the GDP was buoyed by consumer spending but businesses struggled. This is good news in the short-term but in the long run, GDP growth cannot be sustained with businesses struggling.
Home Price Index rose by 0.5% vs. 0.5% consensus.
This is a holiday shortened week. Given many big money decision makers are on vacation, liquidity is low. In a low liquidity environment, short squeezes are common. This is exactly what is happening in gold, silver, copper and oil.
Expect short squeezes in some heavily shorted stocks.
Long bond is being sold aggressively, the reason is not clear at this time. Interestingly even though long rates are rising, dollar is staying weak. At least temporarily, the correlation between dollar, interest rates and gold is broken.
Our very, very short-term early stock market indicator is neutral.
What To Do Now?
It is important for investors to look ahead and not in the rear view mirror.
Consider only adding new positions per new posts since October 1st.
Consider continuing to hold existing positions. Based on individual risk preference, continue to hold 30-50% cash or hedges.
It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.
Gold futures are at $1074, silver futures are at $14.29, and oil futures are $35.91.
S&P 500 resistance levels are 2038, 2063, and 2100; support levels are 2000, 1962, and 1920.
DJIA futures are up 32 points.
Individual Trades
Please click on Home on the left side of the Menu. Scroll down on the Home Page for individual trades.
Click on the Search by Symbol/Tag on the right hand side and click on the symbols of interest.
SPAIN ELECTIONS, SANTA RALLY IN STOCKS AND COMMODITIES BUT BRENT OIL HITS 11 YEAR LOW
This is what you need to know today.
In Spanish elections, the governing party of Rajoy does not win the majority. Some are calling it the end of the two-party system in Spain. The Madrid Index is down 2%.
In the U. S., it is common for stocks and gold to rise the week of Christmas. This year is no different. Stocks, bonds, gold, silver, copper and other commodities are rallying with the exception of oil.
Earlier, Brent crude hit 11 year low before bouncing.
Our very, very short-term early stock market indicator is positive.
What To Do Now?
It is important for investors to look ahead and not in the rear view mirror.
Consider only adding new positions per new posts since October 1st.
Consider continuing to hold existing positions. Based on individual risk preference, continue to hold 30-50% cash or hedges.
It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.
Gold futures are at $1074, silver futures are at $14.24, and oil futures are $35.70.
S&P 500 resistance levels are 2017, 2038, and 2063; support levels are 2000, 1962, and 1920.
DJIA futures are up 121 points.
Individual Trades
Please click on Home on the left side of the Menu. Scroll down on the Home Page for individual trades.
Click on the Search by Symbol/Tag on the right hand side and click on the symbols of interest.
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