(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers.)
S&P 500 RE-BALANCING ON TOP OF QUADRUPLE WITCHING
September 21, 2012
In addition to quadruple witching, today is also the day of S&P re-balancing. In quadruple witching various options expire.
In S&P 500 re-balancing, 350 companies will be bought and 150 will be sold.
These two events will generate buy pressure in the markets and sustain the overbought conditions.
Gold futures are at $1785, silver futures are at $35.15, and oil futures are $93.49.
S&P 500 resistance levels are 1472, 1480, and 1500; support levels are 1450, 1444, and 1439.
DJIA futures are up 58 points.
TRANSPORTATION PROFITS DECLINE IS A RED FLAG
September 20, 2012
Yesterday after the close, NSC, a railroad gave negative guidance. Recently we told you about FDX giving negative guidance. It was not long ago that several trucking firms gave negative guidance.
Transportation stocks are supposed to be a bellwether. The theory is that more goods are transported when economy is doing well.
Market seems to be ignoring all negative data points in its state of sugar high.
Gold futures are at $1766, silver futures are at $34.50, and oil futures are $91.77.
S&P 500 resistance levels are 1465, 1480, and 1500; support levels are 1450, 1444, and 1439.
DJIA futures are down 49 points.
BANK OF JAPAN JOINS THE PARTY
September 19, 2012
Bank of Japan increases its asset purchase program by 10 trillion yen to 80 trillion yen.
To keep its currency from rising, Japan was left with no choice but to do its own QE after the Fed announced QE3.
Bank of Japan is providing another dose of sugar to the markets that are already on a sugar high.
Gold futures are at $1771, silver futures are at $34.50, and oil futures are $94.50.
S&P 500 resistance levels are 1465, 1480, and 1500; support levels are 1450, 1444, and 1439.
DJIA futures are up 14 points.
OPTION EXPIRATION WEEK
September 18, 2012
Bank of Japan increases its asset purchase program by 10 trillion yen to 80 trillion yen.
To keep its currency from rising, Japan was left with no choice but to do its own QE after the Fed announced QE3.
Bank of Japan is providing another dose of sugar to the markets that are already on a sugar high.
Gold futures are at $1771, silver futures are at $34.50, and oil futures are $94.50.
S&P 500 resistance levels are 1465, 1480, and 1500; support levels are 1450, 1444, and 1439.
DJIA futures are up 14 points.
MARKETS ARE ON A SUGAR HIGH
September 17, 2012
Markets are on a sugar high. How long will it last? This is the key question.
India lowers bank reserve requirements and announces reforms for economic liberalization to spur growth.
The United States along with 20 other countries is conducting a big naval exercise in the Persian Gulf to make a show of strength against Iran. Oil prices are worth a careful watch.
Gold futures are at $1769, silver futures are at $34.49, and oil futures are $98.74.
S&P 500 resistance levels are 1465, 1480, and 1500; support levels are 1450, 1444, and 1439.
DJIA futures are down 33 points.
