(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers. )
ANTI AUSTERITY SYRIZA AHEAD IN THE POLLS IN GREECE, DOLLAR STRENGTHENING, SAUDI KING PASSES AWAY
In Greece, elections are set for Sunday. Anti-austerity Syriza is ahead in the polls. There has been much apprehension about this party winning and the effect on Europe. In our analysis, even if Greece leaves Eurozone, it will not have disastrous effect like it would have had the last time. The reason is that the banks now own very little Greek debt. Moreover, in our analysis, if Syriza comes into power, to govern it will end up moderating its’ stance and end up working successfully with Troika.
The dollar is strengthening against the euro.
The momo crowd is still aggressively buying gold and silver, but just like yesterday morning, Smart Money is selling lightly into the strength.
Saudi king has passed away. Overnight oil jumped on the news. Oil has now pulled back as traders realize that the succession is likely to be very smooth.
Our very, very short-term early stock market indicator is neutral.
Gold futures are at $1295, silver futures are at $18.25, and oil futures are $45.83.
S&P 500 resistance levels are 2063 and 2100; support levels are 2038, 2017, and 2000.
DJIA futures are down 8 points.
ECB LAUNCHES QE
ECB has officially launched QE. Details are roughly in line with yesterday’s rumor. As an immediate reaction euro first fell, then rose, and then fell again, it was a logical move in response to words of Draghi as he continued to speak.
The momo crowd is aggressively buying gold and silver. Smart Money is lightly selling into the strength.
Oil is trying to rally.
Interest rates are very volatile.
Stock futures are very volatile.
Our very, very short-term early stock market indicator is mild positive.
Gold futures are at $1293, silver futures are at $18.24, and oil futures are $48.02.
S&P 500 resistance levels are 2063 and 2100; support levels are 2017, 2000, and 1975.
DJIA futures are up 69 points.
MASSIVE SHORT SQUEEZE BEFORE KEY ECB ANNOUNCEMENT
Tomorrow, ECB is likely to announce its bond buying program. Expectations are bond buying between 500 billion and 1 trillion euros. If no program is announced or a smaller program is announced, expect a major sell off. On the other hand if a plan is announced in line with expectations, there will be a battle between short covering and profit taking. Machines will simply exaggerate the move in whichever direction there is initial dominance after the announcement. Massive short squeeze is taking place in dollar, bonds, gold, silver and oil ahead of the announcement.
Gold is over $1300.
Brent crude is over $49.
Our very, very short-term early stock market indicator is neutral, after initial negative start.
Gold futures are at $1302, silver futures are at $18.37, and oil futures are $47.26.
S&P 500 resistance levels are 2017, 2038, and 2063; support levels are 2000, 1975, and 1950.
DJIA futures are down 80 points.
OPTIMISM OVER ECB AND CHINA
Growth in China was at 24 year low but still better than the consensus.
There is optimism that ECB will announce as much as $1 trillion worth of bond buying this week.
Interest rates and oil are falling.
The momo crowd continues to buy gold and silver.
Our very, very short-term early stock market indicator is mild positive.
Gold futures are at $1287, silver futures are at $17.80, and oil futures are $46.60.
S&P 500 resistance levels are 2038, 2063, and 2100; support levels are 2000, 1975, and 1950.
DJIA futures are up 60 points.
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