WEEKLY MARKET DIGEST: GOLD RISES ON TRIFECTA OF FACTORS AND NOT EVEN A DEAD CAT BOUNCE IN STOCKS $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. ) 

GOLD RISES ON TRIFECTA OF FACTORS AND NOT EVEN A DEAD CAT BOUNCE IN STOCKS

August 16, 2013

Gold rocketed yesterday on Indian rupee weakening, Indian buying ahead of the festive season and U. S. dollar weakening.  So far gold and silver are holding their gains.

After a triple digit loss, stocks are not showing even a dead cat bounce.  The market has finally woken up that earnings have been mixed and taper is coming.

Gold futures are at $1367, silver futures are at $23.03, and oil futures are $107.35.

S&P 500 resistance levels are 1675, 1700, and 1710; support levels are 1635, 1625, and 1607.

DJIA futures are up 5 points.

CHAMBER DEFLATES THE BULL

August 15, 2013

Chambers is the CEO of CSCO.  He is one of those rare executives who provides significant macro economic analysis during earnings conference calls.  His track record is remarkable. He has often been early to see trouble ahead.   CSCO makes networking equipment, networking cuts across all industries and all geographical regions. This gives Chambers proprietary information as to what customers are actually doing across all industries.

Yesterday after the market close, Chambers was cautious and expects macro environment to be challenging.

Chambers has deflated the bull.  Expect the stock market to be down triple digits, at least at the start.

Gold futures are at $1325, silver futures are at $21.78, and oil futures are $107.56.

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S&P 500 resistance levels are 1700, 1710, and 1725; support levels are 1650, 1635, and 1625.

DJIA futures are down 114 points.

EUROZONE GROWS

August 14, 2013

Second quarter GDP in eurozone grew at 0.3% vs consensus of 0.2%.  The growth is anemic but it is important to note that this is the first positive GDP number since 2011.  In other words, eurozone is out of recession.  Europe offers a number of generational opportunities.

Interest rates are hanging near their highs.  Part of it is due to ‘stop hunting’ in ETFs and futures. Stop hunting is not over yet.  After stop hunting is over, if interest rates still persist at these levels, it will offer many opportunities both on the long and short sides.

Gold futures are at $1321, silver futures are at $21.47, and oil futures are $106.25.

S&P 500 resistance levels are 1700, 1710, and 1725; support levels are 1675, 1650, and 1635.

DJIA futures are down 16 points.

STRONG RETAIL SALES, INTEREST RATES RISE

August 13, 2013

July Retail Sales ex-auto came at 0.5% vs consensus of 0.3%.  Strong retail sales are supporting higher interest rates this morning.

Stocks in early morning trading are also strong taking a cue from strong performance of stocks in Japan after talk about cut in corporate tax rate.

Gold is mostly holding its gains from yesterday but higher interest rates are a negative.

Gold futures are at $1329, silver futures are at $21.54, and oil futures are $106.57.

S&P 500 resistance levels are 1700, 1710, and 1725; support levels are 1675, 1650, and 1635.

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DJIA futures are up 33 points.

 GOLD SOARS ON CONSUMPTION DATA FROM CHINA

August 12, 2013

According to China Gold Association (CGA), China consumed 706 tonnes of gold in the first six months of this year, a rise of 54% year over year.  China consumed 832 tonnes of gold in the entire 2012.

Both gold and silver have moved up strongly on this data.

In our analysis, this data should be taken with a grain of salt.

Stocks are lower this morning but so are interest rates.

Gold futures are at $1337, silver futures are at $21.20, and oil futures are $105.52.

S&P 500 resistance levels are 1700, 1710, and 1725; support levels are 1675, 1650, and 1635.

DJIA futures are down 43 points.

 

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