(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers. )
GOLD AND SILVER SPIKE ON HEADLINE PPI NUMBER
June 14, 2013
Gold and silver spiked on headline Producer Price Index (PPI). Headline PPI came at 0.5% vs. 0.1% consensus. As we have been sharing with you for a long time, other than a knee jerk reaction, it is best to focus on Core PPI. Core PPI came at 0.1% compared to 0.1% consensus. In other words, the buying on gold and silver is from less informed investors.
Yesterday afternoon the stock market rallied strongly in response to a Wall Street Journal article regarding taper of QE. A close read of the article shows that there was nothing new in the article. This market is just nervous and once it starts moving one way many jump on in that direction.
Gold futures are at $1388, silver futures are at $22.05, and oil futures are $98.03.
S&P 500 resistance levels are 1650, 1675, and 1700; support levels are 1625, 1607, and 1600.
DJIA futures are down 17 points.
A REPEAT OF YESTERDAY, BIG LOSSES IN ASIA BUT THE U.S. FUTURES RECOVER
June 13, 2013
So far it is a repeat of yesterday. There were big losses in Asia but the futures in the U. S. have reversed.
Advanced Retail Sales and initial Unemployment Claims were better than expectations.
There is mild selling in gold.
Our stance remains select buying, select shorting, and select profit taking.
Gold futures are at $1378, silver futures are at $21.71, and oil futures are $95.68.
S&P 500 resistance levels are 1625, 1635, and 1650; support levels are 1600, 1575, and 1570.
DJIA futures are up 4 points.
SEA OF RED ACROSS ASIA BUT BULLS TAKE CONTROL IN THE U.S.
June 12, 2013
There is a sea of red all across Asia. European markets are mixed but bulls have taken firm control of the stock market in the U.S. in early trading. Let us see how the day develops because technically the market is at a crucial juncture.
Gold futures are at $1374, silver futures are at $21.64, and oil futures are $96.27.
S&P 500 resistance levels are 1650, 1675, and 1700; support levels are 1625, 1607, and 1600.
DJIA futures are up 75 points.
STOCK MARKET BULLS TEMPORARILY LOSE CONTROL, A BUYING OPPORTUNITY MAY BE AHEAD
June 11, 2013
This morning, at least temporarily, stock market bulls have lost control. the reason is a big rise in interest rates as the economy improves. We will be carefully watching to see if the bull asserts itself quickly or bears gain traction.
If bears gain traction, I will be good news as it will allow out subscribers to accumulate good long-term positions at lower prices.
In addition to other hedges or holding a substantial amount of cash, one of the Top-Ten positions is TBF. TBF is an inverse ETF that goes up when interest rates go up. This morning when the Dow Jones futures are down 116 points, in the pre-market, TBF is up 0.7% and is staging a technical breakout.
Gold futures are at $1374, silver futures are at $21.58, and oil futures are $94.48.
S&P 500 resistance levels are 1635, 1650, and 1675; support levels are 1607, 1600, and 1575.
DJIA futures are down 122 points.
NIKKEI UP 4.9%, S&P REVISES U.S. OUTLOOK
June 10, 2013
Overnight Japan’s Nikkei jumped 4.9%. In Japan GDP was revised to 1% compared to consensus of 0.9%.
The U. S. stock futures are moving up on the news that S&P upgrades U. S. sovereign debt outlook to stable from negative.
Gold futures are at $1380, silver futures are at $21.65, and oil futures are $95.75.
S&P 500 resistance levels are 1650, 1675, and 1700; support levels are 1635, 1625, and 1607.
DJIA futures are up 31 points.
