(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers. )
GOOD NEWS FROM JAPAN, GOLD SET UP FOR A MINI RALLY
November 29, 2013
One of Japan’s biggest problems has been deflation. What happens in Japan matters because Japan is the third biggest economy in the world. Abenomics seems to be working. Core Consumer Price Index, year over year, rose 0.9%. This is indeed good news.
Gold is encouraged by news from Japan and is showing potential to stage a mini rally within the context of a bear market.
In the U. S. the stock trading is light after the holiday. Exchanges will close at 1:00 pm.
So far, the data on retail sales from Thanksgiving Day and this morning is encouraging.
Gold futures are at $1251, silver futures are at $19.94, and oil futures are $92.84.
S&P 500 resistance levels are 1825, 1835, and 1850; support levels are 1800, 1775, and 1766.
DJIA futures are up 41 points.
B-52 PLANES CHALLENGE CHINA
November 27, 2013
Two B-52 planes started from the U. S. base in Guam and flew over the disputed islands in the East China Sea. This was a bid by the U. S. to challenge China’s assertion of control over air zone. The markets are not taking note of this, but prudent investors should.
October Durable Goods Orders ex-transports came at -0.1% vs. 0.2% consensus; this is a very disappointing number but this series is volatile and we will be carefully watching for a trend.
Initial Jobless Claims came at 316K vs. 330K; this is a leading indicator in our systems, employment picture continues to improve.
In all U. S. markets, trading will be light today. Sometimes price moves are exaggerated during light trading days.
Gold futures are at $1251, silver futures are at $19.96, and oil futures are $92.72.
S&P 500 resistance levels are 1825, 1837, and 1850; support levels are 1800, 1775, and 1766.
DJIA futures are up 11 points.
BOOM IN BUILDING PERMITS AND SHORT COVERING IN GOLD
November 26, 2013
October building permits came at 1034K vs. 932K consensus. Building permits are a leading indicator of future construction. This explosion in building permits shows that the recent increase in interest rates has not slowed plans for new construction. This augurs well for the U. S. economy.
Our algorithms have been detecting massive short covering in gold. If this short covering continues and drives gold much higher, it will be a shorting opportunity.
Interest rates are drifting down.
Oil is holding as opponents heavily criticize the Iran nuclear deal.
Gold futures are at $1245, silver futures are at $19.97, and oil futures are $94.30.
S&P 500 resistance levels are 1825, 1837, and 1850; support levels are 1800, 11775, and 1766.
DJIA futures are up 1 points.
STOCKS MELT UP BUT GOLD AND OIL DROP ON NUCLEAR PACT WITH IRAN
November 25, 2013
Over the weekend, six world powers reached a pact with Iran on its nuclear program. The pact has produced enthusiasm in stock markets across the world. In the U. S. stock futures are melting up.
Both gold and oil are falling on the prospects of a move toward world peace.
Gold futures are at $1228, silver futures are at $19.64, and oil futures are $93.56.
S&P 500 resistance levels are 1825, 1837, and 1850; support levels are 1800, 1775, and 1766.
DJIA futures are up 67 points.
