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Daily Spot – If, Then… Market Timing

Daily Spot

By Rod David | January 24, 2012 - 6:06 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.

Today’s Highlight Natty Gas extended its bounce, suggesting a peak coming on its third day — Wednesday.

Dollar Basket Mar Contract (DX, ETF: (UUP, UDN)) Tuesday’s ga up peaked at 80.35 resistance, which had been very relevant support when tested last week. Its entire post-open gain was retraced, leaving outstanding the gap back to Monday’s close. Even if the lower were in, a durable bottom has not formed.

Eurodollar Mar Contract (EC, ETF: (FXE)) Monday’s test of the 1.3050 target had room to react down to 1.2955. Tuesday’s low was 1.2956. Apparently that was close enough since it’s morning test launched a bounce back up to 1.3032. The rally is free to extend higher without delay, although that is not required.

Gold Feb Contract (GC, ETF: (GLD)) Gapping down Tuesday after missing the 1684.00 target by only $2 Monday suggests the target will be met.

Silver Mar Contract (SI, ETF: (SLV)) Tuesday’s open avoided gapping down and the morning avoided any weakness. This helps Monday’s range avoid becoming a bearish Island Reversal. An immediate drop is still possible, but likely to recover.

30-year Treasury Mar Contract (US, ETF: (TLT)) Firming only slightly at Tuesday’s open made any significant follow-through unlikely at this stage of the pattern. But the balance of the session didn’t extend down. So, now a corrective bounce with potential to 142-00 would be targeted above 141-14.

Crude Oil Mar Contract (CL, ETF: (USO)) Despite gapping down and essentially trading the entire session in negative territory, Tuesday’s session did not invalidate Monday’s gap up.A break under 98.25 is needed to resume the decline.

Natural Gas Mar Contract (NG, ETF: (UNG)) The second day of the (up)crash(down) setup extended higher again, all but ensuring another fresh high Wednesday — and for that fresh high to be reversed and close in negative territory.

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Posted in Daily Spot