(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers.)
QUADRUPLE WITCHING DAY
June 21, 2013
Today is the quadruple witching day when stock index futures, stock index options, stock options, and single stock futures expire. At times quadruple witching can cause excess volatility.
This morning markets are showing signs of stability with small oversold bounces. It will be interesting to see how the market closes. Friday afternoons, especially after an event like this week, are especially treacherous.
Our stance remains selective buying, selective shorting, and selective profit taking.
Gold futures are at $1292, silver futures are at $19.86, and oil futures are $95.21.
S&P 500 resistance levels are 1600, 1607, and 1625; support levels are 1575, 1570, and 1565.
DJIA futures are up 38 points.
POST BERNANKE CONFERENCE SHOWS VALUE OF GETTING AHEAD OF THE CURVE, GOLD FALLS UNDER $1300
June 20, 2013
We have been telling you for a while to be cautious because of the upcoming taper. In ZYX Buy, we named our overarching plan ‘The Taper Plan.’ Yesterday, as soon as Bernanke mentioned taper in his press conference, the market fell out of bed. This morning futures are down 97 DJIA points. The market action shows that many market participants have been behind the curve and are now catching up by selling. The market action shows the validity of an old saying, “In the short-term, the market is like a voting machine but in the long-term it is a weighing machine.”
The market action of yesterday shows how wealth can be built over a long period of time by consistently attempting to get ahead of the curve.
As expected, gold has fallen below $1300. As a full disclosure, ZYX Short issued a signal to short silver yesterday and is also short on gold miner ABX.
The plan is to take advantage of the volatility to continue select buying, select shorting, and select profit taking while protecting the long-term portfolio.
Gold futures are at $1298, silver futures are at $20.06, and oil futures are $96.91.
S&P 500 resistance levels are 1625, 1635, and 1650; support levels are 1607, 1600, and 1575.
DJIA futures are down 97 points.
THE FED DAY IS HERE, PLEASE STAY ALERT FOR OPPORTUNITIES
June 19, 2013
The FOMC will release its statement at 2:00 PM ET. Bernanke’s press conference will take place at 2:30 PM ET. Please stay alert for opportunities especially in gold and silver.
Gold futures are at $1370, silver futures are at $21.59, and oil futures are $98.43.
S&P 500 resistance levels are 1675, and 1700; support levels are 1635, 1625, and 1607.
DJIA futures are down 10 points.
CRUDE OIL SPIKES, GOLD DIPS
June 18, 2013
This morning WTI crude oil has spiked to as high as $98.46. Typically in the short run a spike in crude oil is good for the stock market because oil related stocks move up. However in the long run higher crude prices are a drag on the economy and bad for the stock market.
The reason behind the crude oil spike is the situation in Syria. It is worth noting that Syria does not produce much oil. The concern is that the conflict will escalate. However the election of a moderate as Iran’s new President should somewhat alleviate the situation .
Gold has made several rally attempts but each attempt has failed. The reason is that gold and silver are in the hands of the momo crowd which represents weak hands.
Gold futures are at $1374, silver futures are at $21.75, and oil futures are $98.30.
S&P 500 resistance levels are 1650, 1675, and 1700; support levels are 1635, 1625, and 1607.
DJIA futures are up 3 points.
RISK ON AHEAD OF FOMC ANNOUNCEMENT
June 17, 2013
The stock market is in the risk on mode ahead of FOMC announcement. FOMC meets tomorrow and Wednesday. Expectations are that Ben Bernanke will backtrack from his congressional testimony regarding taper.
In our analysis, Bernanke is not likely to backtrack from his prior statement. However, it is impossible to say how the market will react. The market is at a stage where many players jump on in the direction of the first move.
Gold futures are at $1384, silver futures are at $21.79, and oil futures are $98.15.
S&P 500 resistance levels are 1650, 1675, and 1700; support levels are 1625, 1607, and 1600.
DJIA futures are up 111 points.
