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) Monday bounced back to 79.30-79.35 resistance — instead of either recovering it to signal the gap down was absorbed, or not yet touching it to leave its attraction above outstanding. Rather than immediately extend higher, Tuesday’s open gapped down again. The session’s “inside day” suggests the consolidation is ongoing, and not that sellers have gained traction.
Gold Dec (GCZ) Monday’s close while testing 1712.00 resistance neither extended higher nor reacted down Tuesday. A lot of buying pressure was expended just to tread water. Price did firm into late-afternoon, but a recovery cannot afford to hesitate or else 1712.00 will not let go later.
Silver Dec (SIZ) Tuesday’s gap down held 31.65-31.70 as support to range sideways throughout the day. Its intraday high peaked modestly short of filling the modestly higher gap back to Monday’s close, pessimism that is potentially bullish from a contrarian perspective.
30-year Treasury Dec (USZ) Monday’s complete recovery from 141.25 to 144’03 expended all the buying pressure created by gapping down, without gaining any traction for the effort. Tuesday’s reaction down to 142’15 was largely recovered back up to 143’29. But buyers still gained no traction for their effort.
Crude Oil Mar (CLH) Firmer prices early Tuesday rewarded Monday’s buyers for having maintained strength after filling the gap back down to Friday’s close. Storming the British embassy in Iran caused further firming to 100.25, although notably short of touching Sunday night’s 100.89 high. Constructive pessimism, perhaps? That would be bullish from a contrarian perspective.
Natural Gas Mar (NGH) Monday’s session-long slide from 3.7o down to 3.55 would have fallen off a cliff to new lows had it extended any deeper Tuesday. But the open gapped up and extended higher to retrace 61.8% of the drop back to 3.65. That’s an “inside day,” which already is not very predictive, let alone when its action doesn’t trend in one direction or the other.
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