WEEKLY MARKET DIGEST: WHAT DO BLOWOUT JOBS REPORT AND TRUMP FLIP ON TRADE MEAN FOR INVESTORS? $DIA $GLD $QQQ $SLV $SPY $TBT $USO

WEEKLY MARKET DIGEST: WHAT DO BLOWOUT JOBS REPORT AND TRUMP FLIP ON TRADE MEAN FOR INVESTORS? $DIA $GLD $QQQ $SLV $SPY $TBT $USO

Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights from the prior week gives them an edge over the coming weeks. Here is the day by day rundown from the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers of The Arora Report

Please scroll down for the section What To Do Now.

BLOWOUT JOBS REPORT, MOMO BUYS STOCKS, ITALIAN AND SPANISH BONDS RISE

To gain an edge, this is what you need to know today.

Blowout Jobs Report

Nonfarm Private Payrolls came at 218K vs. 177K consensus.

Average Hourly Earnings rose 0.3% vs. 0.3% consensus.

Average Work Week came at 34.5 vs. 34.5 consensus.

The report shows that the U. S. economy continues to be strong and this is a positive for stocks.  On the negative side,  the stronger jobs report means higher interest rates.

Momo Crowd And Smart Money

The momo crowd is aggressively buying stocks in the early trade. The buying is especially heavy in popular technology stocks and other high beta stocks.

The smart money is inactive.

Italian And Spanish Bonds Rise

In Italy, President Mattarella has given his go ahead to Giuseppe Conte to form the populist government.

Italian bonds are rising.

In Spain, Prime Minister Rajoy has been forced out of the office.  Pedro Sanchez is the next prime minister.  Sanchez is likely to pursue a moderate policy regarding the euro.

Spanish bonds are rising.

Trade War

Yesterday the market fell on concerns about the trade war after Trump imposed tariffs.  This morning the market has completely forgotten about the trade war.  However this concern may arise again.

Gold

Significant selling has come in gold after the jobs report on the prospect of higher interest rates.  Higher interest rates are bad for gold.

Oil

Light selling was occurring in oil before the jobs report.  Strong jobs report means a strong economy and more demand for oil.  After the report there is mild buying in oil.

Technical Patterns

None of note.

This is powerful information and many investors use this to enter trades in addition to our official signals.  Here are the three most common uses: 1) Short-term trades in ETFs  2) Decisions to trim or add to long-term positions, and 3) New option trades. These should be used judiciously only in conjunction with macro, fundamental and quantitative indicators.  To learn more please click here.

Markets

Our very, very short-term early stock market indicator is positive but can easily reverse.

The dollar is stronger.

Interest rates are rising and bonds are falling.

Gold futures are at $1295, silver futures are at $16.38, and oil futures are $66.44.

S&P 500 resistance levels are 2740, 2765 and 2800; support levels are 2700, 2688 and 2661.

DJIA futures are up 190 points.

ITALIAN BONDS RALLY AND TRADE WAR MAY BE BACK

To gain an edge, this is what you need to know today.

Italian Bonds Continue To Rally

Italian bonds continue to rally.  The yield earlier fell to below 1%.  As a reference, when the situation first arose, the yield spiked to 2.35%.

Nothing has fundamentally changed.  It is just market mechanics at work.

Tariffs

It appears that Trump is set to put tariffs on steel and aluminum coming from the European Union.  If Trump provides further extension, this will be a positive. On the other hand if tariffs go through as scheduled, this will generate negative sentiment in the stock market.

Momo Crowd And Smart Money

The momo crowd is lightly buying in the early trade.

Initial Jobless Claims

Initial Jobless Claims came at 221K vs. 227K consensus.

Personal Income And Personal Spending

The U. S. economy is about 70% consumer based.  This is the reason to pay special attention to personal income and personal spending.

Personal Income came at 0.3% vs. 0.3% consensus.  Personal Spending came at 0.6% vs. 0.3% consensus.

Gold

Gold is staying above $1300 in lackluster trading.

Oil

Oil first rose as OPEC and Russia tried to walk back the prospect of easing production cuts. At 4:30 pm API data came at a build of  1.0 million barrels vs. consensus of a decline of 600 thousand barrels.  Oil fell on the data.  The market is waiting for the EIA inventory data that will be released at 10:30 am ET.

Technical Patterns

None of note.

This is powerful information and many investors use this to enter trades in addition to our official signals.  Here are the three most common uses: 1) Short-term trades in ETFs  2) Decisions to trim or add to long-term positions, and 3) New option trades. These should be used judiciously only in conjunction with macro, fundamental and quantitative indicators.  To learn more please click here.

Markets

Our very, very short-term early stock market indicator is neutral, the market can swing either way on news and rumors related to tariffs.

Currencies, interest rates and bonds are range bound.

Gold futures are at $1304, silver futures are at $16.50, and oil futures are $67.47.

S&P 500 resistance levels are 2740, 2765 and 2800; support levels are 2700, 2688 and 2661.

DJIA futures are down 74 points.

CALM ON A RELIEF RALLY IN ITALIAN BONDS, TRUMP’S FLIP, BEIGE BOOK

To gain an edge, this is what you need to know today.

Calm On Relief Rally In Italian Bonds

Yesterday’s plunge in two-year Italian bonds was the culprit in the stock market fall.  This morning a very strong relief rally has occurred in the same bonds calming the markets.

Trump Flip Causes Concerns

Yesterday morning it appeared like Trump was close to striking a deal with China.  Yesterday afternoon, Trump appears to have flipped regarding China. This may be a negotiating tactic.  There is a report that Trump is considering tariffs on Chinese imports again.

This flip caused a sell off in Asian markets.

If it was not for this flip, there would likely have been a stronger rebound in the U. S. stock market.

Momo Crowd And Smart Money

The momo crowd continued to aggressively sell until late yesterday.  In the late afternoon, the momo crowd started aggressively buying stocks.  The momo crowd continues to aggressively buy stocks this morning.

The smart money is inactive.

Beige Book

The Fed will release the Beige Book at 2:00 pm ET.  This may be a market moving event.

GDP

Q1 GDP-Second Estimate came a 2.2% vs. 2.3% consensus.

ADP Employment Change

ADP Employment Change came at 178K vs. 183K consensus.

Gold

There is buying in gold as the dollar weakens.

Oil

Trading in oil is listless as traders await API inventory data to be released at 4:30 pm ET.

Technical Patterns

None of note.

This is powerful information and many investors use this to enter trades in addition to our official signals.  Here are the three most common uses: 1) Short-term trades in ETFs  2) Decisions to trim or add to long-term positions, and 3) New option trades. These should be used judiciously only in conjunction with macro, fundamental and quantitative indicators.  To learn more please click here.

Markets

Our very, very short-term early stock market indicator is positive but can quickly turn negative.

Interest rates are rising and bonds are falling as the safe haven money that bought bonds yesterday is being to move out.

Gold futures are at $1305, silver futures are at $16.44, and oil futures are $67.01.

S&P 500 resistance levels are 2740, 2765 and 2800; support levels are 2688, 2661 and 2631.

DJIA futures are up 119 points.

PRICES IN ROME CAUSING NEGATIVE SENTIMENT

To gain an edge, this is what you need to know today.

Crisis In Rome

Power struggle in Italy is causing negative sentiment across the globe.  The power struggle is between pro-EU establishment and Eurosceptic populists who were victorious in the March election. Italy is heading toward another election.  The concern is that the election will become an implicit referendum on the euro.

Italian Bond Melt Down

The yield on Italian two-year bond rocketed to over 2.5% after having been below 0.3% recently. This is a huge move.

Momo Crowd And Smart Money

The momo crowd is aggressively selling stocks in the early trade.  The smart money is inactive.

Gold

Gold normally benefits from crisis.  Significant buying was coming into gold earlier today.  However, selling is coming into gold as of this writing because the dollar is strengthening.  Gold is priced in dollars. For this reason as the dollar strengthens, gold weakens.

Oil

Oil is falling on Saudi and Russia talking about easing production cuts.  The Morning Capsule on May 24th stated:

Oil is being aggressively sold on reports that OPEC and Russia are looking at easing production cuts.

The Morning Capsule of May 23rd stated:

Lately oil has been rising.  We have previously shared with you that this was positive for the stock market in the short-term.  Yesterday afternoon a rumor arose that OPEC may increase oil production.  Oil has dipped only slightly on the rumor but it  has caused a bigger sell off in oil stocks and dampened the optimism.

The rumor turned out to be true on Friday May 25th causing the start of a deep selloff in oil.

Earlier this morning, the momo crowd was aggressively selling oil.  As of this writing, the momo crowd has switched and is aggressively buying oil.  The real reason appears to be that oil became very oversold and as it started bouncing off of the low to relieve the oversold condition, the momo crowd switched from selling to buy.

The smart money is inactive.

Technical Patterns

None of note.

This is powerful information and many investors use this to enter trades in addition to our official signals.  Here are the three most common uses: 1) Short-term trades in ETFs  2) Decisions to trim or add to long-term positions, and 3) New option trades. These should be used judiciously only in conjunction with macro, fundamental and quantitative indicators.  To learn more please click here.

Markets

Our very, very short-term early stock market indicator is negative but can reverse quickly.

Safe haven money is flowing into bonds causing yields of U. S. bonds to fall and bond prices to rise.

Euro is weaker on the crisis in Italy.

Gold futures are at $1297, silver futures are at $16.31, and oil futures are $67.23.

S&P 500 resistance levels are 2740, 2765 and 2800; support levels are 2688, 2661 and 2631.

DJIA futures are down 172  points.

WHAT TO DO NOW

Looking ahead and not only in the rear view mirror, consider continuing to hold existing core portfolio positions.  Based on individual risk preference, consider holding cash or treasury bills 20% – 35% and short to medium-term hedges of  15% – 25% and very short term hedges of 10%.

 

A knowledgeable investor would have turned $100,000 into over $1,000,000 with the help from The Arora Report. NOW YOU TOO CAN ALSO SPECTACULARLY SUCCEED AT MEETING YOUR GOALS WITH THE HELP OF THE ARORA REPORT. You are receiving less than 2% of the content from our paid services. …TO RECEIVE REMAINING 98% INCLUDING MANY ATTRACTIVE INVESTMENT OPPORTUNITIES, TAKE A FREE TRIAL TO PAID SERVICES.

Please click here to take advantage of a FREE  30 day trial.

Check out our enviable performance in both bull and bear markets.

FREE: SUBSCRIBE TO ‘GENERATE WEALTH’ NEWSLETTER

Related Posts

HERE IS WHY STOCK MARKET MAY GO 12% HIGHER ON A DEMOCRATIC SWEEP $AMAT $AAPL $AMD $AMZN $DIA $DJIA $FB $GOOG $GOOGL $MSFT $NDX $NVDA $QCOM $QQQ $SPX $SPY

The stock market has loved President Trump. His policies have been the major factor behind the market’s rise. Some people think ...

WEEKLY MARKET DIGEST: SHOCKING INFLATION DATA, INTEREST RATES RISE SLOWING STOCK MARKET MOMENTUM $DJIA $SPX $QQQ $GLD $SLV $USO

Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights ...

AFTERNOON CAPSULE: $38 BILLION NEW BORROWING BY THE GOVERNMENT SHOWS THAT THE BUBBLE IS STILL STRONG $DJIA $SPX $NDX $QQQ $GLD $SLV $USO $SPY

This post was published  in The Arora Report  paid feeds as Afternoon Capsule. To gain an edge, this is what you ...

TRUMP ORDER TO SPIKE STOCK MARKET BY ENDANGERING SOCIAL SECURITY $DJIA $DIA

After Republicans and Democrats reached a stalemate in Congress, President Trump issued executive orders intended to help the economy. The ...

AFTERNOON CAPSULE: TODAY SHOWS AN ADVANCE GLIMPSE OF THINGS TO COME IF MASSIVE BORROWING STOPS $DJIA $SPX $NDX $QQQ $GLD $SLV $USO $SPY

This post was published yesterday in The Arora Report  paid feeds as Afternoon Capsule. To gain an edge, this is what ...

WEEKLY MARKET DIGEST: LOWEST JOBLESS CLAIMS SINCE THE SHUTDOWN, POLITICIANS RUNNING AMUCK, HOUSE PRICES HIGHER $DJIA $SPX $QQQ $GLD $SLV $USO

Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights ...

HERE IS HOW HIGH THE STOCK MARKET MAY GO AFTER A DIP $AAPL $AMZN $DDOG $DIA $DJIA $FB $FSLY $GLD $IAU $GOOG $MSFT $NDX $QQQ $SPX $SPY $GOOGL

Investors are asking me how high can this stock market go. The July employment report, released Friday, is providing a relief ...

GOLD ON WAY TO $3000 — STOCK MARKET BULLS SHOULD CONSIDER IT AS INSURANCE $GLD $DJIA

This article is in response to questions after I predicted gold was on its way to $3,000 an ounce. Gold has ...

WEEKLY MARKET DIGEST: UGLY GDP BUT IGNORE IT, IMPORTANT CHANGE IN FED’S POLICY $DJIA $SPX $QQQ $GLD $SLV $USO

Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights ...

TWO BIG STOCK MARKET RISKS ARE HIDING IN APPLE, AMAZON, FACEBOOK AND GOOGLE $GOOG $AMZN $AAPL $FB $GOOGL $DIA $DJIA $SPX

Stock market bulls are giddy. What is there not to be happy about — the stock market mostly rises, and making ...

GOLD MAY PRODUCE BIGGER GAINS THAN THE STOCK MARKET UNLESS THERE IS A VACCINE $GLD $DJIA $SLV $GDX $NUGT $DUST $GOOG $MSFT $FB $AMZN $AAPL

I have never been afraid to make bold predictions for the stock, commodities, bond and currency markets when supported by ...

AFTERNOON CAPSULE: DOLLAR FALLS TO A TWO YEAR LOW ON U. S. INABILITY TO CONTROL THE VIRUS $DJIA $SPX $NDX $QQQ $GLD $SLV $USO $SPY

This post was published yesterday in The Arora Report  paid feeds as Afternoon Capsule. To gain an edge, this is what ...

WEEKLY MARKET DIGEST: GOLD AT RECORD HIGH AS INVESTORS MOVE TO PROTECT STOCK MARKET PORTFOLIOS $DJIA $SPX $QQQ $GLD $SLV $USO $GDX $AZN

Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights ...

GOLD AND SILVER ARE HOT— HERE ARE THE WORLD RENOWNED RATINGS $GLD $SLV $GDX

This post was just published on ZYX Buy Change Alert. Please scroll down for current ratings in six time frames and current allocation ...

A NEW STOCK MARKET HIGH AHEAD FROM MONEY PRINTING AND BORROWING — IS THERE A LIMIT? $GDX $GLD $SLV $GOOG $AMZN $AAPL $MSFT $FB $TSLA $ZM $NFLX $PTON $DIA $DJIA

The stock market is likely headed toward a new high fueled by borrowing and money printing, European leaders have agreed ...

VACCINE IS GOOD FOR EVERYBODY BUT NOT FOR YOUR FAVORITE STOCKS $INO $PFE $NVAX $NIO $MRNA $AZN $TSLA $AMZN $DIA $DJIA $FSLY $PTON $ZM $DOCU $MSFT $GOOG $NFLX

We all want a safe and effective vaccine for the coronavirus. Certainly one or more effective vaccines will be good ...

AFTERNOON CAPSULE: CONSUMER SENTIMENT BEGINS TO WEAKEN $DJIA $SPX $NDX $QQQ $GLD $SLV $USO $SPY

This post was published yesterday in The Arora Report  paid feeds as Afternoon Capsule. To gain an edge, this is what ...

WEEKLY MARKET DIGEST: A BREAK ABOVE THE UPPER BAND, RECORD COMPLACENCY AMONG TRADERS $DIA $GLD $QQQ $SLV $SPY $TBT $USO

Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights ...

A BEARISH PATTERN IN THE STOCK MARKET — THIS ALSO HAPPENED BEFORE THE LAST BIG TECH CRASH $AAPL $AMZN $DIA $DJIA $DOCU $FB $FSLY $PTON $QQQ $SPX $SPY $SQ $TSLA $ZM

The stock market has traced what’s called a negative reversal pattern, which reminds me of March 2000. In the year 2000, ...

WEEKLY MARKET DIGEST: SILVER ON THE VERGE OF A BREAKOUT, MOMO BUYING UNDETERRED, BEARISH DATA ON CRUDE OIL $DIA $GLD $QQQ $SLV $SPY $USO

Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights ...

Follow

Get every new post delivered to your Inbox

Join other followers