Daily Spot

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) Tipping point. Monday’s gap up was followed by another Tuesday. It extended only slightly higher before dipping to fresh session lows. The 76.80-77.00 resistance was recovered, so not closing back under it Wednesday would confirm a bottom is in. Closing under it would put into play a retest of last week’s lows.

Gold Dec (GCZ) Quick on the draw. Rather than holding 1724.00 as support for a second consecutive session, another plunge tested 1681.00. The balance of the morning rallied to 1714.00, and the afternoon improved up to 1718.00. Retesting 1724.00 too soon, e.g. Wednesday, would be likely to react down sharply. Delaying its retest would help its recovery this week or next to extend to fresh highs above 1800.00.

Silver Dec (SIZ) A bigger beat. Monday’s pullback to 34.20 gave way to sharply lower lows at 32.10. The morning’s bounce to 33.65 was never recovered during the afternoon dip to 32.50. Immediately recovering above 33.65 would suggest Tuesday’s drop was an anomaly. Otherwise, fresh lows are likely.

30-year Treasury Dec (USZ) Correction on steroids. The 139’00 level did not hold for a second consecutive day, to say the least. It was recovered up to 142’23. That was not much improvement from the open’s gap up, making a dip down to 140’06 likely, regardless of its resolution.

Crude Oil Dec (CLZ) No news is eventually good news. There wasn’t necessarily a new catalyst to trigger a drop, other than continued Dollar strength. So Tuesday’s drop under 90.75 was recovered through the close to avoid a new downleg. The pattern is still considered to be topping, but not yet topped.

Natural Gas Dec (NGZ) Missed opportunity. Although Monday’s session did not extend Friday’s rally, its inside day did recover from gapping down. A fresh high above 3.95 would have gotten a benefit of the doubt for extending higher, but its test overnight held and sent price down sharply Tuesday. There is no compelling pattern active.

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