(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers. )
MORE RED ARROWS ON FAILED CHINA BOND AUCTION
April 11, 2014
In the pre-market, more red arrows after failed China bond auction. China had planned to sell 28 billion yuan of one year debt but bids came only for 20.7 billion. There are several bubbles in China including a debt bubble. So far Chinese government has been able to astutely manage all the bubbles. Assuming the Chinese government continues to succeed, the present swoon in the markets is likely to be a correct in an ongoing bull market.
Those with long only portfolios should be following the Taper Plan .
Interest rates are falling further.
Gold is showing mild weakness in early trading.
Oil is staying over $103.
Gold futures are at $1318, silver futures are at $19.99, and oil futures are $103.45.
S&P 500 resistance levels are 1837, 1850, and 1875; support levels are 1800, 1775, and 1766.
DJIA futures are up/down 89 points.
FOMC MINUTES TRIGGERS RALLY IN STOCKS AND GOLD
April 10, 2014
Yesterday afternoon, release of FOMC minutes triggered a rally in both stocks and gold. In Janet Yellen’s press conference, she gave a time frame of six months after taper is over to raise interest rates. This spooked the market. However, FOMC minutes make it clear that the market misread Yellen’s statement. FOMC intends to keep interest rates low for an extended period of time.
Gold is adding to yesterday’s rally this morning.
Stocks are muted in pre-market trading.
Oil is staying above $103.
Interest rates are mostly unchanged.
Gold futures are at $1318, silver futures are at $20.16, and oil futures are $103.23.
S&P 500 resistance levels are 1875, 1900, and 1925; support levels are 1850, 1837, and 1825.
DJIA futures are down 9 points.
FOMC MINUTES ON TAP, SELLING IN GOLD
April 9, 2014
FOMC minutes will be released this afternoon. The market participants will be looking for hawkish comments from certain board members. This may be a market moving event.
Stocks are bouncing from the oversold condition in pre-market trading.
Gold is seeing a fair amount of selling but still holding above $1300.
There is also a fair amount of selling in oil, but oil is still holding above $102.
Treasury bonds are stabilizing.
Gold futures are at $1302, silver futures are at $19.63, and oil futures are $102.56.
S&P 500 resistance levels are 1875, 1900, and 1925; support levels are 1837, 1825, and 1800.
DJIA futures are up 59 points.
UKRAINE TENSIONS RISE, GOLD SPIKES
April 8, 2014
Ukraine moves to take control of the government buildings in eastern Ukraine occupied by pro-Russian protesters. Stocks in Europe react by going down, gold and oil are moving up.
Stocks in the U. S. are oversold in the very short-term and at a support level. Expect attempts to rally. If the rally fails, 1800 in S&P 500 will be a magnet.
Gold futures are at $1311, silver futures are at $20.09, and oil futures are $101.22.
S&P 500 resistance levels are 1850, 1875, and 1900; support levels are 1825, 1800, and 1775.
DJIA futures are down 6 points.
MORE UNREST IN UKRAINE
April 7, 2014
There is more unrest in the eastern provinces of Ukraine. These provinces have large Russian populations. The situation is reminiscent of Crimea.
Stock markets world-wide are concerned and are lower.
Gold has not been able to hold $1300 level in early trading in spite of unrest in Ukraine.
Oil is range bound.
Interest rates are range bound.
Gold futures are at $1297, silver futures are at $19.82, and oil futures are $100.37.
S&P 500 resistance levels are 1875, 1900, and 1925; support levels are 1837, 1825, and 1800.
DJIA futures are down 42 points.
