(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers.)
SMART MONEY SELLS GOLD ON BLOWOUT JOBS NUMBER
November 2, 2012
October Non-Farm Private Payrolls came at 184K vs. 130K consensus. This is a blowout number that favors Obama just days before the election.
So far this morning the momo crowd continues to aggressively buy gold and silver. In a departure from the last two days, buying by the momo crowd is being met with aggressive selling by Smart Money. Gold has now broken the support of $1700. However, it is worth noting that the pattern of the momo crowd is to always buy, whereas Smart Money is not a consistent seller. The conclusion to be drawn is that Smart Money short sells on the rips and buys back to realize profits on the riffs.
Gold futures are at $1694, silver futures are at $31.84, and oil futures are $86.93.
S&P 500 resistance levels are 1439, 1444, and 1450; support levels are 1415, 1410, and 1400.
DJIA futures are up 42 points.
BETTER THAN EXPECTED ECONOMIC DATA IN CHINA AND THE U.S.
November 1, 2012
China’s official Purchasing Manager’s Index (PMI) came at 50.2 in October compared to 48.8 in September. A number over 50 indicates expansion in the economy
In the U.S., October ADP employment change came at 158K vs. 143K consensus.
Initial unemployment claims came at 363K vs. 375K consensus.
Typically money pours in the markets in the first three days of the new month. Due to effect of Sandy and upcoming election, it is difficult to say what will happen this time.
It is best to stay nimble and on defensive.
Gold futures are at $1723, silver futures are at $32.53, and oil futures are $86.16.
S&P 500 resistance levels are 1410, 1415, and 1424; support levels are 1400, 1380, and 1368.
DJIA futures are up 21 points.
WALL STREET ENCOURAGED BY CHINESE EARNINGS AND MUTUAL FUND RE-BALANCING
October 31, 2012
Markets in Asia were higher encouraged by earnings from some stated owned Chinese companies. The bullish sentiment carried into Europe and now to Wall Street.
Momo crowd is buying gold and silver aggressively.
It is year-end for some mutual funds; expect volatility on re-balancing.
Gold futures are at $1718, silver futures are at $32.16, and oil futures are $86.17.
S&P 500 resistance levels are 1424, 1439, and 1444; support levels are 1410, 1400, and 1380.
DJIA futures are up 53 points.
THE MARKET IS CLOSED AGAIN TODAY
October 30, 2012
The market is closed again today due to the storm.
SEC ORDERS NO TRADING IN EQUITIES DUE TO THE STORM
October 29, 2012
SEC orders no trading in equities due to storm. Futures are trading but trading is thin and meaningless.
