(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers. )
SANTA CLAUS RALLY CONTINUES
Santa Claus rally continues in stock markets across the world. Our volume based indicators are beginning to become cautious for the very, very short-term. However, over the last 45 years, the last five trading days of the year and first two trading days of the new year have produce an average gain of 1.6%.
There is considerable strength in commodities even though the dollar is higher.
Interest rates are range bound.
Gold and silver are mounting a significant rally.
Our very, very short-term early stock market indicator is neutral.
Gold futures are at $1195, silver futures are at $16.20, and oil futures are $56.27.
S&P 500 resistance level is 2100; support levels are 2038, 2017, and 2000.
DJIA futures are up 36 points.
JOBLESS CLAIMS FALL, MOMENTUM CONTINUES
Initial Jobless Claims came at 280K vs. 290K consensus.
Momentum in stocks continues.
Interest rates are inching up.
Gold and oil are having difficulty sustaining rallies.
Our very, very short-term early stock market indicator is mild positive.
Gold futures are at $1174, silver futures are at $15.74, and oil futures are $55.85.
S&P 500 resistance level is at 2100; support levels are 2063, 2038, and 2017 .
DJIA futures are up 40 points.
NEW HIGH ON STRONG GDP
Stock market to stage new highs in response to strong GDP.
Q3 GDP came at 5% compared to consensus of 4.3%.
Interest rates are rising in responses to strong GDP.
Oil and gold are range bound.
Our very, very short-term indicator is positive.
Gold futures are at $1177, silver futures are at $15.77, and oil futures are $55.82.
S&P 500 resistance level is at 2100; support levels are 2063, 2038, and 2017.
DJIA futures are up 67 points.
STOCK MOMENTUM CONTINUES, YIELD CURVE BEGINNING TO FLATTEN
In the absence of any significant economic data momentum from last week continues in stocks. Two – 10 year Treasure yield curve is beginning to flatten. This has heavy weighting in our models and we will be watching it carefully. In simpler words, shorter term rates are beginning to rise relative to longer term rates.
Interest rates, oil, and gold are range bound.
Our very, very short-term early stock market indicator is mild positive.
Gold futures are at $1195, silver futures are at $16.07, and oil futures are $56.58.
S&P 500 resistance level is 2100; support levels are 2063, 2038, and 2017.
DJIA futures are up 38 points.
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