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Daily Spot – If, Then… Market Timing

Daily Spot

By Rod David | October 27, 2011 - 5:44 pm

A daily summary of high-profile members of several complexes…[pay] View a more detailed discussion of each at the end of today’s Market Wrap.

Dollar Basket Dec (DXZ) Why it won’t bottom. “The” deal sent the Euro sharply higher, while the Dollar tumbled to fresh lows. A second consecutive lower close would confirm lower lows to come. Not closing lower Friday would offer another opportunity to bottom. Regardless, Thursday’s opening gap down will need to be retested following a bounce back into Wednesday’s range.

Gold Dec (GCZ) Getting with the program that it started. Despite the Dollar’s tumble, Gold continued ranging around its 1724.00 resistance for an unseemly amount of time before finally breaking higher. A probe above 1800.00 is now likely so long as 1724.00 holds as support – and preferably without touching 1724.00 again first.

Silver Dec (SIZ) Don’t. Look. Down. Again. The pattern was unable to tolerate any weakness on the way to higher highs, so Thursday’s open rallied immediately and extended higher throughout the day. Unlike Wednesday’s close, Thursday’s gain does allow some room for retracement before fulfilling its 35.50 target. If a retracement is used, then 35.50 would be that much more difficult to break above durably.

30-year Treasury Dec (USZ) It only got heavier. Wednesday’s retest of 140’06 produced a gap down to new lows Thursday, and extended to 135’07. This is not the end, but the beginning — or, at least, a resumption. Next lower objectives are under 130’00 and 128’00… and lower.

Crude Oil Dec (CLZ) Holding its ground. Gapping up Thursday proved that Wednesday’s drop had not gained traction. Tuesday’s 91.44 opening gap up was retested to neutralize its attraction. Now closing under 90.75 would signal a new downleg underway.

Natural Gas Nov (NGX) Procrastination’s consequences. Unfinished business below was finally neutralized by filling the open gap back below. Closing lower Friday would all but require printing new, new lows. Not even rallying Friday might require that, too.

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Posted in Daily Spot