(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers. )
GDP DISAPPOINTS
Q4 GDP-Advanced came at 2.6% vs. 3.2% consensus. The disappointment has caused interest rates to fall, stocks to fall, and gold to stabilize.
Oil is range bound.
Lower than expected GDP is seen by some as an indication that the Fed will stay dovish longer.
Our very, very short-term early stock market indicator is negative.
Gold futures are at $1262, silver futures are at $16.87, and oil futures are $44.53.
S&P 500 resistance levels are 2017, 2038, and 2063; support levels are 1975, 1950, and 1925.
DJIA futures are down 177 points.
TWO WORDS IN FED’S STATEMENT CAUSE DIVERGING REACTIONS, INITIAL JOBLESS CLAIMS PLUNGE
“International developments” are the two new words in the Fed’s statement that have caused diverging reactions. Bonds are up strongly because bond buyers think the statement is dovish. Dollar is falling because currency traders think the statement is dovish. Stocks and gold have fallen because these investors think the statement is hawkish.
Initial Jobless Claims plunge to 265K vs. consensus of 301K.
Our very, very short-term early stock market indicator is neutral.
Gold futures are at $1271, silver futures are at $17.51, and oil futures are $44.59.
S&P 500 resistance levels are 2017, 2038, and 2063; support levels are 1975, 1950, and 1925.
DJIA futures are up 64 points.
THE FED DAY
Today is the Fed day. The statement will be closely watched to see when the Fed plans to raise interest rates.
In Greece, the new government has continued its rhetoric leading to big losses.
Oil has fallen on API inventory data.
Gold and silver are seeing light selling by Smart Money.
Our very, very short-term early stock market indicator is neutral.
Gold futures are at $1286, silver futures are at $18, and oil futures are $45.10.
S&P 500 resistance levels are 2063 and 2100; support levels are 2017, 2000, and 1975.
DJIA futures are up 16 points.
LOUSY EARNINGS FROM KEY COMPANIES CAUSE JITTERS
Lousy earnings from the likes of MSFT, PG, PFE, and CAT are causing jitters in the market. Much of the problem with these multi-nationals is the strong dollar. Hereto the assumption has been that these multi-nationals know how to hedge currency risk. It is becoming clear that the dollar move has been too swift and these companies have not succeeded in properly hedging currency.
Gold and bonds are getting a bid because of down draft in the equity markets.
Oil is range bound.
Our very, very short-term early stock market indicator is strong negative.
Gold futures are at $1286, silver futures are at $17.97, and oil futures are $45.15.
S&P 500 resistance levels are 2038, 2063, and 2100; support levels are 2017, 2000, and 1975.
DJIA futures are down 285 points.
SYRIZA WINS IN GREECE, MARKETS GAINING FOOTING AFTER INITIAL JITTERS
Syriza scores a decisive win in Greece. On the news overnight, DJIA futures were down about 150 points at one time. Slowly the market has been gaining its footing and futures have been recovering.
In our analysis in spite of his radical platform, new Greek leader, Tsipras, is likely to turn more pragmatic in order to govern. There will be much drama and volatility but in the end there will not be much damage to the markets.
Oil is trying stage a rally.
Gold is falling.
Interest rates are range bound.
Our very, very short-term early stock market indicator is neutral.
Gold futures are at $1281, silver futures are at $18.02, and oil futures are $45.86.
S&P 500 resistance levels are 2063 and 2100; support levels are 2038, 2017, and 2000.
DJIA futures are down 29 points.
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