(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers.)
BIGGEST SOVEREIGN RESTRUCTURING IN HISTORY
March 9, 2012
Greece has now finally pulled off the biggest sovereign debt restructuring in history.
A ton of economic data has been released in China today. Almost all of it shows that Chinese economy is slowing.
The U.S. Department of Labor released monthly employment data. The data is slightly better than the published consensus, but slightly worse than the whisper numbers.
Stock market is up against a strong resistance zone, 1368 to 1400 in S&P.
Gold futures are at $1692, silver futures are at $33.70, and oil futures are $106.78.
S&P 500 resistance levels are 1380, 1400, and 1410; support levels are 1368, 1358, and 1352.
DJIA futures are up 20 points.
TUESDAY NEVER HAPPENED
March 8, 2012
If futures are any indication, market has recouped all of the 200+ drop from Tuesday.
ECB and Bank of England left interest rates unchanged. Draghi slightly lowers growth outlook for 2012-13 in Europe.
German industrial production rose 1.6% vs consensus of 1.1%.
In the U.S. unemployment claims were 362,000 vs 350,000 consensus.
The market is mainly excited about an accord being finalized in Greece today.
Gold futures are at $1698, silver futures are at $33.80, and oil futures are $106.45.
S&P 500 resistance levels are 1368, 1380, and 1400; support levels are 1358, 1352, and 1348.
DJIA futures are up 58 points.
U.S. EMPLOYMENT PICTURE IMPROVING
March 7, 2012
ADP data released today shows that employment picture in the U.S. is improving. All markets are experiencing a relief rally from yesterday’s swoon. Markets are still overbought and vulnerable.
Gold futures are at $1676, silver futures are at $32.98, and oil futures are $105.02.
S&P 500 resistance levels are 1352, 1358, and 1368; support levels are 1339, 1330, and 1324.
DJIA futures are up 49 points.
HAS A CORRECTION STARTED?
March 6, 2012
Has a correction started? No one, including us, can foretell with absolute certainty. Yesterday morning we forewarned you that probability of a correct had risen to 65%.
Gold futures are at $1676, silver futures are at $32.97, and oil futures are $105.27.
S&P 500 resistance levels are 1352, 1358, and 1368; support levels are 1348, 1339, and 1340.
DJIA futures are down 130 points.
CHINA LOWERS GROWTH TARGET
March 5, 2012
China has lowered GDP growth target to 7.5%. This is the first target under 8% since 2004. Initially, this announcement sent shudders through global markets, but now they are recovering.
This is not a surprise to us; subscribers to ZYX Emerging Markets ETF Alert know well that we have been projecting this trajectory of slower growth. This is simply showing that our long-term call on China has been spot on.
Stock market is vulnerable here. Also vulnerable are gold and oil markets.
Gold futures are at $1698, silver futures are at $34.30, and oil futures are $106.47.
S&P 500 resistance levels are 1368, 1380, and 1400; support levels are 1358, 1352, and 1348.
DJIA futures are down 36 points.
