Daily Spot
A weekly summary of high-profile members of several complexes.[pay]
Dollar Basket Jun (DXM) Imagine what sellers could do with traction. Buyers had lost traction Tuesday after rallying to the 77.10 objective. But sellers didn’t gain traction. Last week’s rally was built on excessive optimism, but a pullback could have been contained to 75.85-75.90. It wasn’t. Wednesday’s session tumbled on Bernanke’s testimony – in which he did not back away from QE3 talk – back to Friday afternoon’s 75.40 low. Bounces should now hold 75.75 on the way down to 74.15.
Gold Aug (GCQ) Not too shabby, considering it’s not really money. Effects from Bernanke’s QE3 talk had legs, and helped Gold to extend its surge into new highs Wednesday. Tuesday’s rally had extended higher after the pit close, and so did Wednesday, attacking 1589.00. This is the second consecutive higher close, which requires at least one more higher high. Indications of weakness upon testing 1589.00 would suggest the higher high had held.
30-year Treasury Sep (USU) Waiting for 1:00. Two consecutive closes above 125’28 had confirmed 127’24 was in-play. The setup also helped to recover from Wednesday’s early weakness that tested 125’28 as support. A very busy calendar – including a 30-year auction – all but assure a volatile day Thursday.
Crude Oil Aug (CLQ) Buyers shooting themselves in the foot(s). The Dollar and the EIA report helped to improve Crude Oil through its 97.00 bounce limit Wednesday. Session highs at 99.21 filled the 98.46 gap back to Thursday’s Island. Closing above 99.00 would confirm a new upleg underway. Meanwhile, there is potential for Tuesday and Wednesday’s bounce to have formed a Double Top, which would be triggered by closing back under 96.90, targeting a probe under 91.00.
Natural Gas Aug (NGQ) This resistance test should be different. Despite not clearly recovering 4.30 in a timely manner, Wednesday gapped up to test 4.40. Its resolution wasn’t likely to be much different than at 4.30. In fact, 4.40 was still being tested as resistance through the close. Now there are two gaps outstanding below (~4.30 and ~4.20) to inhibit a rally effort. Let’s see how EIA’s weekly inventory report is negotiated.
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