(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers. ) 

SHORT COVERING BEFORE THE LONG WEEKEND, GOLD MOVES HIGHER

January 17, 2014

Expect a fair amount of short covering before the long weekend.  Short covering is helping prop up the stock market.

December Housing Starts came at 999K vs. 986K consensus.

December Building Permits came at 986K vs. 1000K consensus.

Gold is attempting a strong rally this morning in response to housing starts and build permit numbers.

Oil is going higher and will meet stiff resistance around $95.

Yesterday interest rates fell and are now hovering near their lows.

Gold futures are at $1247, silver futures are at $20.21, and oil futures are $94.70.

S&P 500 resistance levels are 1850 and 1900; support levels are 1825, 1800, and 1775.

DJIA futures are up 12 points.

STOCKS OVERBOUGHT IN THE VERY SHORT-TERM

January 16, 2014

Stocks are overbought in the very short-term.  The day is likely to start out with choppy trading and then momentum traders will simply jump on which ever side, bulls or bears, are prevailing and thus exaggerating the move.

Core CPI came at 0.1% vs. 0.2% consensus.

Weekly Unemployment Claims came at 326K vs 330K consensus.

Interest rates are falling.

Gold is attempting to rally.

Oil is stable.

Gold futures are at $1240, silver futures are at $20.12, and oil futures are $94.26.

S&P 500 resistance levels are 1850 and 1900; support levels are 1825, 1800, and 1775.

DJIA futures are down 32  points.

INFLATION HEATS UP, GOLD FALLS

January 15, 2014

December Core PPI came at 0.3% vs. 0.1%.  The theory is that producer prices move before consumer prices.  Therefore this is a leading indicator.

We keep a careful watch on Core PPI and many other leading indicators of inflation, because predicting inflation trends early can help generate significant wealth.

Gold is supposed to go up on higher inflation data, but it is falling by about $16.  Our algorithms are detecting heavy selling by the momo crowd.  The momo crowd behaves contrary to conventional wisdom.  This is the reason that investing in gold has become so treacherous.

Gold futures are at $1235, silver futures are at $20.02, and oil futures are $92.86.

S&P 500 resistance levels are 1850 and 1900 ; support levels are 1825, 1800, and 1775.

DJIA futures are up 38 points.

EXCELLENT RETAIL SALES DATA CONTRADICTS REPORTS FROM COMPANIES

January 14, 2014

December Retail Sales ex-auto came at 0.7% compared to consensus of 0.4%.  This data flies in the face of reports from retailers.  Most retailers with the notable exception of Macy’s, have been reporting poor holiday retail sales.  This discrepancy may provide some short-term trading opportunities, we will be actively researching.

Stocks rebounding strongly in early trading  from yesterday’s dip.

Gold futures are at $1250, silver futures are at $20.37, and oil futures are $92.26.

S&P 500 resistance levels are 1825, 1837, and 1850; support levels are 1800, 1775, and 1766.

DJIA futures are up 33 points.

NEW OPPORTUNITIES FROM EARNINGS SEASON AHEAD, INTEREST RATES ARE FALLING

January 13, 2014

Earnings season is starting in full swing this week.  Expect big investors to hold off making big moves until earnings’ trends become clear.

We follow 3000 U. S. stocks.  This earnings season has a potential to offer more opportunities than normal both on long and short sides.

It is important to be patient and keep some powder dry for these upcoming opportunities.

Trading for the most part in stocks, gold, and oil is lackluster in early morning.

Interest rates are falling.

Gold futures are at $1245, silver futures are at $20.06, and oil futures are $91.92.

S&P 500 resistance levels are 1837, 1850, and 1900; support levels are 1825, 1800, and 1775.

DJIA futures are down 25 points.

 

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