(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers. )
BAD NEWS TEMPORARILY STOPS CORRECTION IN ITS TRACKS
August 1, 2014
Markets are perverse. After over 300 point drop, DJIA futures were down another 90 points this morning. Then came the bad news in terms of the employment report; stocks, bonds, gold and oil jumped.
July nonfarm private payrolls came at 198K vs. 225K consensus and whisper numbers of around 240K.
There will be a lot of cross currents today. On the negative side, lot of technical damage has been done to the markets. On the positive side, it is the first of the month and new money will enter the market. It being a Friday, there may be short covering leading to a push up.
Gold futures are at $1288, silver futures are at $20.45, and oil futures are $97.67.
S&P 500 resistance levels are 1925, 1950, and 1975; support levels are 1900, 1875, and 1850.
DJIA futures are down 14 points.
GOLD RISKS BREAK OF THE MAJOR SUPPORT AND STOCKS RISK START OF A CORRECTION, CORRECTION WILL BE A BUYING OPPORTUNITY
July 31, 2014
Yellen sees dissention by the Philadelphia Fed president. There are serious concerns that the Fed will have to tighten sooner than anticipated. Markets are addicted to easy monetary policy and may start experiencing withdrawal symptoms.
The world economy is improving and once over bought conditions are relieved, it will be a buying opportunity in stocks.
Please consider studying INCREASING THE HEDGE BY 5% ON MALAYSIAN AIR NEWS, IF THERE IS A BIG PULL BACK IT WILL BE A BUYING OPPORTUNITY.
Gold has a major support in the zone of $1284 to $1287. There is a serious risk that this support will break. There are a lot of stops under this support. A typical pattern is for the price to be artificially suppressed as stops are taken out. This attracts the momo crowd, leading to a sharp rally. The rally then fails as Smart Money sells into it.
As a full disclosure, ZYX Short is short on gold and a few miners.
Gold futures are at $1287, silver futures are at $20.61, and oil futures are $99.61.
S&P 500 resistance levels are 1975, 2000, and 2017; support levels are 1950, 1925, and 1900.
DJIA futures are down 118 points.
OUR CALL ON U.S. ECONOMY PROVES SPOT ON, BLOWOUT GDP NUMBER AND GOLD FALLS
July 30, 2014
The U.S. economy grew by 4% annual rate in the second quarter vs. 3% consensus but not far from our expectations. From our leading indicators, we have been telling you that the U.S. economy is improving. Now there is proof in hard numbers that this call is spot on.
ADP employment number came at 218,000 vs. 230,000 consensus. This is a precursor to this coming Friday’s important employment data.
FOMC meeting minutes will be released today at 2:00 p.m. ET. Please stay extra alert as the minutes may create opportunities.
Oil and interest rates are rising on strong GDP number.
Gold futures are at $1294, silver futures are at $20.53, and oil futures are $101.38.
S&P 500 resistance levels are 1975, 2000, and 2017; support levels are 1950, 1925, and 1900.
DJIA futures are up 61 points.
BETTER EARNINGS ENCOURAGE STOCK MARKET, GOLD GOING AGAINST OIL
July 29, 2014
Since yesterday’s Morning Capsule, on the average earnings on important companies have been better than expectations. The stock market is encouraged by these earnings; after staging a comeback yesterday from a deficit of 80 points in DJIA to a positive close, in the pre market, stocks are trading higher.
Oil is falling in spite of heightened geo political tensions, but gold is trying to stage a rally. Both can not be right, traditionally oil traders are right more often than gold traders.
Interest rates are range bound.
Gold futures are at $1309, silver futures are at $20.77, and oil futures are $ 100.60.
S&P 500 resistance levels are 2000 and 2017; support levels are 1975, 1950 and 1925 .
DJIA futures are up 39 points.
A WEEK FULL OF MARKET MOVING DATA
July 28, 2014
This is a week full of market moving data. The three most important data points are Q2 GDP-advance, FOMC rate decision on July 30, and employment data on Aug 1.
The week is also heavy with earnings.
Oil is giving up gains made late last week on geopolitics but gold is holding such gains.
Interest rates are range bound.
Gold futures are at $1305, silver futures are at $20.71, and oil futures are $101.31.
S&P 500 resistance levels are 1975, 2000 and 2017 and; support levels are 1950, 1925 and 1900.
DJIA futures are down 2 points.
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