(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers.)
DURABLE GOODS ORDERS PLUNGE
August 24, 2012
Durable Goods Orders ex-transports came at -0.4% compared to consensus of +0.6%.
Gold futures are at $1666, silver futures are at $30.39, and oil futures are $95.85.
S&P 500 resistance levels are 1400, 1410, and 1415; support levels are 1380, 1368, and 1358.
DJIA futures are down 22 points.
GOLD SPIKES AGAIN ON CHINA PMI
August 23, 2012
China flash HSBC PMI fell to 47.8 in August from a final 49.3 in July. If the flash reading holds for the final August index, it will mark the tenth straight month below the 50.0 expansion/contraction threshold.
Gold spiked as high as $1663 on the news. Now it is pulling back.
Expectation of the bulls is that as the Chinese economy grows weaker, there will be more stimulus coming from China.
The next resistance in gold is $1672. Our rating on gold is neutral with a positive bias for the very, very short-term and neutral with a negative bias for the very short-term. Please see Trade Management Guidelines for definition of time frames.
In the U.S., initial jobless claims came at 372,000 in line with our expectations.
Gold futures are at $1661, silver futures are at $30.20, and oil futures are $97.82.
S&P 500 resistance levels are 1415, 1424, and 1437; support levels are 1400, 1380, and 1368.
DJIA futures are down 11 points.
FOMC MINUTES THIS AFTERNOON WILL BE A TELL ON QE3
August 22, 2012
Markets have been moving up with hope of QE3 from the Fed and something equivalent from the ECB.
FOMC minutes will be released this afternoon at 2:00 pm. The minutes will be a tell.
Please stay alert for opportunities right after 2:00 pm.
Gold futures are at $1638, silver futures are at $29.30, and oil futures are $96.42.
S&P 500 resistance levels are 1410, 1415, and 1424; support levels are 1400, 1380, and 1368.
DJIA futures are down 34 points.
HOPE IS NEVER A GOOD INVESTMENT STRATEGY
August 21, 2012
In our 30 years in the markets, we have never found ‘hope’ to be a good investment strategy. But do not tell that to investors who keep on bidding markets up in hopes that central banks will give them more. If central banks give bulls less than what they want, watch out below.
Gold futures are at $1634, silver futures are at $29.10, and oil futures are $96.76.
S&P 500 resistance levels are 1424, 1437, and 1444; support levels are 1415, 1410, and 1400.
DJIA futures are up 27 points.
EUROPEAN FIREWORKS AHEAD
August 20, 2012
In anticipation of a bazooka being fired from the ECB, Spanish 10 year bond yields have fallen to 6.21% and Italian bond yields have fallen to 5.74%.
Spiegel, the German magazine, reports that the ECB is considering pledging unlimited bond purchases to limit the maximum yields on sovereign debt.
Mario Draghi, the European Central Bank (ECB) Chief, may be ready to follow in the footsteps of Paulson and Bernanke to fire a bazooka.
One of the big concerns has been if Germany will go along. Previously the Bundesbank president made statements that caused some to believe that Germany is not wholeheartedly behind Draghi. However, Angela Merkel, the German chancellor, last week clearly stated that her thinking was in line with the ECB as long as certain conditions were met.
If Spiegel’s report is correct, expect fireworks ahead.
Gold futures are at $1611, silver futures are at $27.95, and oil futures are $95.95.
S&P 500 resistance levels are 1415, 1424, and 1437; support levels are 1410, 1400, and 1380.
DJIA futures are down 18 points.
