(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers.)
STRONGER DURABLE GOODS BUT WEAK RALLY IN JAPAN, GOLD REACTS
May 24, 2013
April Durable Goods Orders ex-transports came at 1.3% vs. consensus of 0.5%.
After a 7.3% drop in the Japanese market, yesterday the talk on American trading desks was of a sharp rebound in Japan. However the rally in Japan was anemic.
Gold bulls in Asia took encouragement from weak bounce in Japan. However, after the Durable Goods report in the U. S. Smart Money is lightly selling gold and silver. The thinking is that strong Durable Goods orders higher probability of a QE taper. A QE taper will be bad for gold and silver.
Yesterday stock market bulls shrugged off bad news from China, bad news from Japan, bad news from Europe, and bad news from the Fed. Let us see if American stock bulls have second thoughts today.
Our stance remains cautious.
Gold futures are at $1386, silver futures are at $22.28, and oil futures are $93.72.
S&P 500 resistance levels are 1650, 1675, and 1700; support levels are 1635, 1625, and 1607.
DJIA futures are down 35 points.
JAPANESE MARKET FALLS 7.3% BUT AMERICAN BULL NOT READY TO GIVE UP
May 23, 2013
Over night, Nikkei fell 7.3% on Bernanke comments and lousy data from China. However, American momentum investors are not ready to throw in the towel. Our stance is that of caution.
Gold is running up on weakening dollar.
Gold futures are at $1390, silver futures are at $22.35, and oil futures are $92.74.
S&P 500 resistance levels are 1650, 1675, and 1700; support levels are 1625, 1607, and 1600.
DJIA futures are down 121 points.
ALL EYES ON QE TAPERING, GOLD RISING
May 22, 2013
All eyes are on Bernanke’s testimony before Congress. His prepared text will be released at 10:00 AM ET. The market is trying to figure out his stance on QE tapering.
In the meanwhile bulls remain in firm control of the stock market. Bernanke’s testimony may be market moving. Please stay alert in case an action is needed.
Gold is rising on short covering.
Gold futures are at $1392, silver futures are at $22.75, and oil futures are $96.16.
S&P 500 resistance levels are 1675, and 1700; support levels are 1650, 1635, and 1625.
DJIA futures are up 28 points.
AMERICAN MOMO CROWD BUYING GOLD BUT ASIANS SELLING AGGRESSIVELY
May 21, 2013
Yesterday there was heavy selling in precious metals, especially silver, in Asia. Yesterday morning as American investors woke up, American momo crowd started aggressively buying silver and gold. Fuel was poured over the fire when professional traders who were short had to scramble and cover. Our algorithms finally detected some buying by Smart Money in the afternoon. In all likelihood, such buying by Smart Money was covering short positions.
Today, we are again seeing heavy selling in precious metals in Asia. We will wait and see what the American momo crowd does. If the momo crowd does not step in to buy, gold and silver may fall much lower.
Ironically, one of the bullish arguments advanced by the American momo crowd is demand from Asia. The hard data is that Asians are aggressively selling.
Strong earnings from Home Depot are buoying the stock market. The bulls remain in control of the stock market but the market remains very overbought and vulnerable.
Gold futures are at $1369, silver futures are at $22.25, and oil futures are $96.65.
S&P 500 resistance levels are 1675, and 1700; support levels are 1650, 1635, and 1625.
DJIA futures are up 19 points.
SILVER SLAUGHTERED ON A LARGE SELL ORDER IN ASIA
May 20, 2013
Earlier today, in Asian trading, silver fell about 9% on a report of a large sell order. Silver has since recovered. Gold has also fallen dramatically but has also since recovered. The large silver sell trade appears to be the result of comments by Akira Amari, the Economy Minister of Japan. The yen strengthened after his comments leading to huge losses for those who where short yen, the silver sale was done to cover losses in yen.
The U. S. stock market does not seem to be bothered by anything but remains overbought.
Gold futures are at $1352, silver futures are at $21.60, and oil futures are $95.49.
S&P 500 resistance levels are 1675, and 1700; support levels are 1650, 1635, and 1625.
DJIA futures are down 16 points.
