(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers. )
THE SAME BAD CONGRESS BUT THE RELIEF RALLY CONTINUES
October 18, 2013
After the agreement in Washington, the stock market and the gold market has experienced strong relief rallies. What is lost is that there is still the same bad Congress that cannot get much done and the agreement is only a short-term agreement. There is another fight in the Congress straight ahead.
Interest rates are falling.
More short covering in gold and silver continues.
Oil is desperately trying not to break the $100 mark.
In the pre-market, S&P Futures are trading at an all time high.
Gold futures are at $1318, silver futures are at $21.93, and oil futures are $101.41.
S&P 500 resistance levels are 1750, and 1766; support levels are 1725, 1710, and 1700.
DJIA futures are up 28 points.
THE CAN KICKED DOWN THE ROAD, STOCKS MOURN BUT GOLD CELEBRATES
October 17, 2013
The politicians in Washington successfully kicked the can down the road.
Markets are perverse.
Stocks and oil, which will benefit from the accord, are falling.
Gold, which will be hurt by the accord is shooting up.
The reason behind the perverse behavior is the technical dynamics of the battle between the weak hands and the smart money.
Gold futures are at $1317, silver futures are at $21.74, and oil futures are $100.93.
S&P 500 resistance levels are 1725, and 1750; support levels are 1700, 1675, and 1650.
DJIA futures are down 106 points.
THE U. S. CREDIT RATING ON NEGATIVE WATCH, STOCKS RISE
October 16, 2013
Fitch, one of the three major credit rating agencies, has placed the U. S. on negative watch and has warned that it may cut the U. S. credit rating. The stock market seems unfazed and is up strongly this morning. Investors are hopeful that the two leaders in the Senate will reach an agreement, the Speaker will bring it on the House floor, and the bill will pass with Democrat support.
As a note of caution, the probability of the foregoing scenario occurring is not 100%.
Gold futures are at $1279, silver futures are at $21.30, and oil futures are $100.96.
S&P 500 resistance levels are 1710, 1725, and 1750; support levels are 1675, 1650, and 1635.
DJIA futures are up 105 points.
STOCK MARKET STAYS OPTIMISTIC ON A DEAL IN WASHINGTON
October 15, 2013
Stock market continues to stay optimistic on a deal in Washington.
Stocks are mostly up in the pre-market.
Interest rates are slightly weaker.
Oil is slightly weaker.
Gold and silver are weak.
Gold futures are at $1266, silver futures are at $21.08, and oil futures are $101.49.
S&P 500 resistance levels are 1710, 1725, and 1750; support levels are 1675, 1650, and 1635.
DJIA futures are down 18 points.
NO DEAL IN WASHINGTON BUT A SHIFT TO ADULT LIKE BEHAVIOR IN THE SENATE
October 14, 2013
There is no deal in Washington. On the positive side, there appears to be a shift in the Senate where a number of Senators are finally behaving like adults.
Even though the stock market is down this morning, there is optimism that a deal will be reached soon. However, there are no guarantees as the House remains a ‘wild card.’ Gold futures are at $1285, silver futures are at $21.59, and oil futures are $101.52.
S&P 500 resistance levels are 1700, 1710, and 1725; support levels are 1675, 1650, and 1635.
DJIA futures are down 106 points.
