(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers. )
TROUBLING PATTERN IN STOCKS
March 28, 2014
Lately the stock market sees a lot of buying in the morning and selling in the afternoon. This is a troubling pattern because morning buying is traditionally attributed to retail buyers and foreign buyers. The U. S. based institutions typically act in the afternoon.
In our back tests, depending upon other conditions, this pattern correctly forecasts a correction 60% to 75% of the time. It is important to stay tuned to the Real Time Feed for new developments.
Gold is falling below $1290.
Oil is spiking over $102.
Interest rates are at their recent lows.
Gold futures are at $1290, silver futures are at $19.78, and oil futures are $102.06.
S&P 500 resistance levels are 1850, 1875, and 1900; support levels are 1837, 1825, and 1800.
DJIA futures are up 32 points.
GOLD BREAKS $1300
March 27, 2014
Gold has broken below $1300 despite continuing tensions in Ukraine.
Oil is spiking over $101.
Stocks are attempting a rally in the pre-market.
Gold futures are at $1298, silver futures are at $19.70, and oil futures are $101.33.
S&P 500 resistance levels are 1850, 1875, and 1900; support levels are 1837, 1825, and 1800.
DJIA futures are up 5 points.
POSITIVE STOCK MOMENTUM CONTINUES BUT RESISTANCE AHEAD
March 26, 2014
In pre-market trading positive momentum from yesterday continues in stocks. Strong resistance is ahead. How stocks behave at the resistance level will be very telling.
Durable Goods ex Transports came at 0.2% vs. 0.3% consensus.
Gold, oil, and interest rates are range bound.
Gold futures are at $1312, silver futures are at $20.05, and oil futures are $99.78.
S&P 500 resistance levels are 1875, 1900, and 1925; support levels are 1850, 1837, and 1825.
DJIA futures are up 78 points.
U. S. HOME PRICE RISE SLOWS
March 25, 2014
January Case-Shiller 20 city index came at 13.2% vs. consensus of 13.4%, rise in home prices is slowing. In pre-market trading, many stocks are experiencing a short-term oversold bounce.
Oil, gold, and interest rates are range bound.
Gold futures are at $1312, silver futures are at $99.99, and oil futures are $100.10.
S&P 500 resistance levels are 1875, 1900, and 1925; support levels are 1837, 1825, and 1800.
DJIA futures are up 81 points.
CHINESE STOCK RALLY ON WEAK ECONOMIC DATA, GOLD FALLS
March 24, 2014
HSBC flash PMI for manufacturing fell for a third month in a row reaching 48.1 well below the estimates. Shanghai composite rallied 0.9% on speculation that the weak data would cause the government to introduce stimulus.
Euro is weaker on data showing that growth in German manufacturing is slowing.
The momo crowd was buying gold aggressively on Friday. This morning Smart Money is selling gold.
Oil is slightly higher.
Interest rates are range bound.
Gold futures are at $1317, silver futures are at $20.15, and oil futures are $100.06.
S&P 500 resistance levels are 1875, 1900, and 1925; support levels are 1850, 1835, and 1825.
DJIA futures are up 36 points.
