question1-MW-ARTICLE-500x35924345 (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 U.S. ECONOMY RECOVERS ALL JOBS LOST DURING THE RECESSION, GOLD RALLIES AFTER A KNEE JERK DIP

June 6, 2014

The employment report released this morning shows that the U.S. has recovered all jobs lost during the 2008-2009 financial crises. May Nonfarm Private Payrolls  came at 216K vs 230K consensus. Stock market is encouraged , in early trading stocks are moving higher. Interest rates have slightly dipped because the nonfarm private number was lower than whisper numbers. Gold first dipped on headlines but when the market participants realized that nonfarm private number was weaker than the  whisper numbers, gold started a rally. Smart money is slightly selling into the rally. Oil traders started a knee jerk rally on strong headlines and have nor reversed as of this writing. Gold futures are at $1256, silver futures are at $19.09, and oil futures are $102.97. S&P 500 resistance levels are 1950 and  1970; support levels are 1925, 1900, and 1875 . DJIA futures are up 50 points.

MORNING CAPSULE: ECB CUTS RATES, GOLD JUMPS

June 5, 2014

ECB lowers main refinancing operations bps to 0.15% from 0.25%. Most importantly ECB WILL STOP WEEKLY STERLIZATIONS, this makes it more like the QE  from the Fed. Listening to the call, ECB is exceeding our expectations. Stocks are flying high in response to ECB exceeding expectations. Euro is lower. Gold is jumping as expected. Interest rates are slightly lower. Oil is lower. Gold futures are at $1254, silver futures are at $19.07, and oil futures are $102.38. S&P 500 resistance levels are 1950  and  1970; support levels are 1925, 1900,  and 1875 . DJIA futures are up 55 points.

MORNING CAPSULE: DOLLAR HIGHER AHEAD OF THE ECB MEETING

Dollar is moving higher ahead of  the ECB meeting tomorrow. In early trading stocks are quiet with slight downside bias. Oil is rising. Interest rates continue to inch up. Gold is range bound. Gold futures are at $1245, silver futures are at $18.73, and oil futures are at $103.29. S&P 500 resistance levels are 1925 , 1950 , and 1970 ; support levels are 1900,  1875, and 1850 . DJIA futures are down  7 points.

MORNING CAPSULE: WEAKNESS IN EARLY TRADING ON UNEXPECTED DIP IN EUROZONE INFLATION, DEFLATION CONCERNS RISING

Unexpectedly inflation in Eurozone dipped to  0.5% vs. consensus of 0.6%. Interestingly a big part of the dip is attributable to lower food prices at a time when food prices in most of the rest of the world are rising. The date is likely to force ECB’s hand on Thursday to cut interest rates and take other measures. In early trading, stocks are showing slight weakness  due to deflation concerns. Among respected analysts, a consensus is forming that the stock market will grind here;  if big institutions act on this consensus, it will more likely than not prove to be a contrary indicator. Markets are good at making fools of the maximum number of analysts. Interest rates, oil and gold are range bound in the early trade. Gold futures are at $1247, silver futures are at $18.86, and oil futures are $102.40. S&P 500 resistance levels are 1925, 1950,  and 1970 ; support levels are 1900,  1875,  and 1850. DJIA futures are down 30 points.

MORNING CAPSULE: STOCKS POSITIVE ON CHINA DATA, GOLD BELOW $1250

In early trading,  equities are positive encouraged by good PMI number from China. China PMI rose above 50.  A number over 50 indications expansion. Gold normally runs up on positive data from China, but that has not happened so far today.  Gold is staying below $1250. There is lots of important economic data ahead.  The stock market has a potential to make a significant move in either direction based on the upcoming data. Oil continues to pull back. Interest rates are inching up from a very low-level. Gold futures are at $1246, silver futures are at $18.79, and oil futures are $102.54. S&P 500 resistance levels are 1925 and 1950; support levels are 1900, 1875, and 1850.
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