(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers. )
WINNING STREAK IN KING DOLLAR, BIG LOSS IN GOLD
This is what you need to know today.
King dollar is rallying for the fifth day in a row, the longest winning streak in two months.
Barring a rally today, gold is heading towards the biggest weakly loss in four months.
Oil and copper are falling.
Fall in commodities is leading stocks lower.
Durable Goods Orders ex-transport came at -1% vs. -0.3% consensus. This is a very volatile series. It is better to look at ex-transport to get a better base line. In our models we look at a moving average of this series.
Weakly New Unemployment Claims came at 265 K vs. 269K consensus. This is a leading indicator with heavy weighting in our models.
Money is rushing into bonds again causing yields to fall.
Our very, very short-term early stock market indicator is negative. A three day weekend is ahead. Often in the afternoon before the three day weekend, stocks rally on short covering.
Gold futures are at $1222, silver futures are at $15.30, and oil futures are $38.76.
S&P 500 resistance levels are 2038, 2063 and 2100; support levels are 2000, 1962, and 1920.
DJIA futures are down 106 points.
What To Do Now?
It is important for investors to look ahead and not in the rear view mirror.
Consider continuing to hold existing positions. Based on individual risk preference, consider holding cash 26 – 42%, and short to medium-term hedges of 25%.
It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.
A Reminder
As our long time subscribers know well, that during the 2008 and early 2009 market crash, when stock market lost about 50%, subscribers to The Arora Report made money by the boat load. For long only investors, this remarkable performance was achieved by using inverse ETFs.
Our models do not expect a repeat of 2008. In the most likely worst case, there may be a garden variety bear market that typically occurred every 18 to 24 months prior to the recent six-year market run.
Individual Trades
Please click on Home on the left side of the Menu. Scroll down on the Home Page for individual trades.
Click on the Search by Symbol/Tag on the right hand side and click on the symbols of interest.
STOCKS RESILIENT, GOLD FALLS, BREXIT WORRIES AND DOLLAR SCREAMS HIGHER
This is what you need to know today.
Yesterday morning we wrote,
In the past, negative effect of terrorists attacks on equities has been temporary.
So far stocks have proven resilient.
We also wrote about gold,
In the past such gains have been temporary.
Gold has fallen about $40 from that writing.
Dollar is screaming higher against all major currencies.
There are heightened worries of U. K. leaving EU after yesterday’s attacks. Brexit worries are causing pound to fall.
Oil and copper are lower as dollar rises.
Bonds and interest rates are range bound.
Our very, very short-term early stock market indicator is neutral.
Gold futures are at $1220, silver futures are at $15.36, and oil futures are $40.69.
S&P 500 resistance levels are 2063, 2100 and 2111; support levels are 2017, 2000, and 1962.
DJIA futures are down 30 points.
What To Do Now?
It is important for investors to look ahead and not in the rear view mirror.
Consider continuing to hold existing positions. Based on individual risk preference, consider holding cash 26 – 42%, and short to medium-term hedges of 25%.
It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.
A Reminder
As our long time subscribers know well, that during the 2008 and early 2009 market crash, when stock market lost about 50%, subscribers to The Arora Report made money by the boat load. For long only investors, this remarkable performance was achieved by using inverse ETFs.
Our models do not expect a repeat of 2008. In the most likely worst case, there may be a garden variety bear market that typically occurred every 18 to 24 months prior to the recent six-year market run.
Individual Trades
Please click on Home on the left side of the Menu. Scroll down on the Home Page for individual trades.
Click on the Search by Symbol/Tag on the right hand side and click on the symbols of interest.
TERRORISTS STRIKE BRUSSELS, EUROPEAN STOCKS COMING BACK AFTER A SELL-OFF
This is what you need to know today.
Terrorist attacks in Brussels leave at least 34 people dead. After initial sell-off, European equities are coming back. In the past, negative effect of terrorists attacks on equities has been temporary.
On the news of the attacks, safe havens of gold, bonds and yen rose but are now beginning to give up their gains. In the past such gains have been temporary.
There are reports that Saudi Arabia will agree to a production freeze even without support from Iran. This is positive news for oil.
In the United States, Housing Price Index came at 0.5% vs. 0.5% consensus.
Our very, very short-term early stock market indicator is negative.
Gold futures are at $1254, silver futures are at $15.93, and oil futures are $41.31.
S&P 500 resistance levels are 2063, 2100 and 2111; support levels are 2017, 2000, and 1962.
DJIA futures are down 63 points.
What To Do Now?
It is important for investors to look ahead and not in the rear view mirror.
Consider continuing to hold existing positions. Based on individual risk preference, consider holding cash 26 – 42%, and short to medium-term hedges of 25%.
It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.
A Reminder
As our long time subscribers know well, that during the 2008 and early 2009 market crash, when stock market lost about 50%, subscribers to The Arora Report made money by the boat load. For long only investors, this remarkable performance was achieved by using inverse ETFs.
Our models do not expect a repeat of 2008. In the most likely worst case, there may be a garden variety bear market that typically occurred every 18 to 24 months prior to the recent six-year market run.
Individual Trades
Please click on Home on the left side of the Menu. Scroll down on the Home Page for individual trades.
Click on the Search by Symbol/Tag on the right hand side and click on the symbols of interest.
CHINA EASES MARGIN RULES, GOLD AND BONDS FALL
This is what you need to know today.
China has eased margin lending rules. Stocks in Shanghai have rallied to over 3000 for the first time in two months.
Gold has broken the major support at $1250.
Bonds are falling and interest rates are rising.
Yen is beginning to give up its recent gains against the dollar.
Oil has rallied back to over $41.
Our very, very short-term early stock market indicator is neutral.
Gold futures are at $1246, silver futures are at $15.85, and oil futures are $41.25.
S&P 500 resistance levels are 2063, 2100 and 21111; support levels are 2017, 2000, and 1962.
DJIA futures are down 2 points.
What To Do Now?
It is important for investors to look ahead and not in the rear view mirror.
Consider continuing to hold existing positions. Based on individual risk preference, consider holding cash 26 – 42%, and short to medium-term hedges of 25%.
It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.
A Reminder
As our long time subscribers know well, that during the 2008 and early 2009 market crash, when stock market lost about 50%, subscribers to The Arora Report made money by the boat load. For long only investors, this remarkable performance was achieved by using inverse ETFs.
Our models do not expect a repeat of 2008. In the most likely worst case, there may be a garden variety bear market that typically occurred every 18 to 24 months prior to the recent six-year market run.
Individual Trades
Please click on Home on the left side of the Menu. Scroll down on the Home Page for individual trades.
Click on the Search by Symbol/Tag on the right hand side and click on the symbols of interest.
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