WEEKLY MARKET DIGEST: PERFORMANCE CHASE TRUMPS ALL, 70% PROBABILITY OF RATE INCREASE IN DECEMBER $GLD $SLV $USO $DIA $SPY $QQQ $TBF $TBT

Twitter
LinkedIn
Facebook

 WEEKLY MARKET DIGEST:  PERFORMANCE CHASE TRUMPS ALL, 70% PROBABILITY OF RATE INCREASE IN DECEMBER $GLD $SLV $USO $DIA $SPY $QQQ $TBF $TBT

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

PERFORMANCE CHASE TRUMPS EVERYTHING ELSE, NOW 70% PROBABILITY OF RATE INCREASE IN DECEMBER

This is what you need to know today.

At least for the short-term, in this market, performance chase by the lagging money managers and the momo crowd trumps everything else.  Investors should realize that this creates higher risk in the markets.  The money managers buying stocks now are not buying houses to live in, they are simply renting hotel rooms until the year end.

Durable Goods ex-trans came at 0.5% vs. 0.5% consensus.

Initial Jobless Claims came at 260K vs. 272K consensus.

Personal Income came at 0.4% vs. 0.4% consensus.

After the release of this strong economic data, there is 70% probability of a rate increase in December.

Dollar and interest rates are getting stronger on this strong economic data, gold and silver and getting weaker.

Oil is range bound.

Our very, very short-term early stock market indicator is neutral.

Time To Say Thanks

Happy Thanksgiving to all of our subscribers.  We are thankful for receiving the highest satisfaction rating from our subscribers from across the globe.

For the holiday, our offices will be closed for the next two days.

What To Do Now?

It is important for investors to look ahead and not in the rear view mirror.

Consider only adding new positions per new posts since October 1st.

Consider continuing to hold existing positions.  Based on individual risk preference, continue to hold 30-50% cash or hedges.

It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.

Gold futures are at $1070, silver futures are at $14.07, and oil futures are $42.20.

S&P 500 resistance levels are 2100, 2111, and 2132; support levels are 2063, 2038, and 2017.

See also  PRUDENT INVESTORS PAY ATTENTION: GOLD MAKING A NEW HIGH AT A TIME NVIDIA AND BITCOIN ARE MAKING NEW HIGHS

DJIA futures are up 41 points.

Individual Trades

Please click on Home on the left side of the Menu.  Scroll down on the Home Page for individual trades.

Click on the Search by Symbol/Tag on the right hand side and click on the symbols of interest.

 

F16 FROM A NATO COUNTRY SHOOTS DOWN A RUSSIAN JET, GDP IN LINE

This is what you need to know today.

An F16 from a NATO country, Turkey, shoots down a Russian jet over Syria.  This is one of the most negative geopolitical developments over the last several years.

Gold, oil, Treasury bonds, German bunds, and Japanese yen are moving up.

U. S. stocks, Russian stocks, European stocks, Turkish lira, and Russian ruble are falling.

GDP came at 2.1% vs. 2.1% consensus.  Personal Consumption came at 3% vs. 3.2% consensus.

Our very, very short-term early stock market indicator is negative.

A Reminder

As our long time subscribers know well, that during the 2008 and early 2009 market crash, when stock market lost about 50%, subscribers to The Arora Report made money by the boat load.  For long only investors, this remarkable performance was achieved by using inverse ETFs.

Our models do not expect a repeat of 2008.  In the most likely worst case, there may be a garden variety bear market that typically occurred every 18 to 24 months prior to the recent six-year market run.

What To Do Now?

It is important for investors to look ahead and not in the rear view mirror.

Consider only adding new positions per new posts since October 1st.

Consider continuing to hold existing positions.  Based on individual risk preference, continue to hold 30-50% cash or hedges.

It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.

See also  A RUMOR HELPS BITCOIN BREAK OUT, NEW DATA SHOWS WEAKENING BUSINESS SPENDING

Gold futures are at $1077, silver futures are at $14.13, and oil futures are $42.42.

S&P 500 resistance levels are 2100, 2111, and 2132; support levels are 2063, 2038, and 2017.

DJIA futures are down 112 points.

Individual Trades

Please click on Home on the left side of the Menu.  Scroll down on the Home Page for individual trades.

Click on the Search by Symbol/Tag on the right hand side and click on the symbols of interest.

 

VENEZUELA SEES OIL IN $20s, OPPORTUNITY IN ARGENTINA AND CHINA ADRS, BELGIUM IGNORED, BIGGEST PHARMA BORN

This is what you need to know today.

Belgium is still in lock down but markets are ignoring it.

PFE to buy AGN creating the largest pharmaceutical firm in the world.  The new company will be headquartered in Dublin, Ireland.  (As a full disclosure, ZYX Buy has a position in AGN.)

This morning oil went into a free fall as headlines came that Venezuela sees oil in $20s if OPEC does not curtail production.  Gurus bearish on latched onto comments from Venezuela and started pushing the idea of $20 oil.

Oil falling on Venezuelan comment is a case of gurus not understanding what it really means.  Venezuela is talking about price at the well head in Venezuela.  Add transportation cost of $10 to $15 per barrel, Venezuela means oil in the range of mid $30s to $40s.   (As a full disclosure, ZYX Short has a short position in oil.)  It is important for investors to not act on headlines or proclamations by gurus who do not have depth or have an agenda.

Conservative, Mauricio Macri, wins election in Argentina.  This will create an opportunity in Argentina.  Argentina ETF ARGT is not very liquid.  A list of a basket of Argentinean stocks to buy will be published in ZYX Emerging.

MSCI is adding 15 New York traded Chinese ADRs to its index.  This is a big deal as over $1 trillion of investments will be influenced by this decision.  Only six of these 15 stocks have good fundamentals.  This list will also be published in ZYX Emerging.

See also  NVIDIA AND GAMMA SQUEEZE OVERPOWER HOTTER INFLATION DATA

Historical this week is positive for the U. S. stock market but the market is overbought in the very, very short-term.

Gold, copper and silver continue to fall.

Dollar is roaring higher.

Interest rates are range bound.

Our very, very short-term early stock market indicator is neutral.

What To Do Now?

It is important for investors to look ahead and not in the rear view mirror.

Consider only adding new positions per new posts since October 1st.

Consider continuing to hold existing positions.  Based on individual risk preference, continue to hold 30-50% cash or hedges.

It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.

Gold futures are at $1070, silver futures are at $13.95, and oil futures are $41.54.

S&P 500 resistance levels are 2100, 2111, and 2132; support levels are 2063, 2038, and 2017.

DJIA futures are down 6 points.

Individual Trades

Please click on Home on the left side of the Menu.  Scroll down on the Home Page for individual trades.

Click on the Search by Symbol/Tag on the right hand side and click on the symbols of interest

 

You are receiving less than 2% of the content from our paid services …TO RECEIVE REMAINING 98%, TAKE A FREE TRIAL TO PAID SERVICES.

Please click here to take advantage of a FREE  30 day trial.

Check out our enviable performance in both bull and

Subscribe to 'Generate Wealth'

Free Forever

More To Explore

30 Day Free Trial

Cancel within 30 days and you owe nothing

When you take a FREE 30 day trial, you get access to powerful techniques used by billionaires and hedge funds to grow richer. You can continue to use these powerful techniques to grow richer even if you cancel your subscription. You come out ahead by subscribing no matter how you look at it.

A fortune is to be made from AI stocks.
Get the list of 18 AI stocks to grab your share of the profits — no cost to you.

A fortune is to be made from AI stocks.

Get the list of 18 AI stocks to grab your share of the profits.

AI is a $1 Trillion Market

Making A Fortune
In Artificial Intelligence

Golden Age of Artificial Intelligence