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.
Today’s Highlight One good swing deserves another… Volatility in Gold Thursday came one day after triggering a sell signal. An intraday rally to new relative highs was retraced entirely to probe under Wednesday’s lows. And the sell signal remains intact.
Dollar Basket Mar Contract (DX, ETF: (UUP, UDN)) Still ranging at recent lows, without sellers gaining traction. It’s not a buy signal, but the relative stability does suggest a turning point coming soon among currencies.
Eurodollar Mar Contract (EC, ETF: (FXE)) Another fresh high Thursday, coming nominally close to the 1.3333 target. Interestingly, very little play on the hyped Greek debt accord. Not sure what would push price through its target if that news barely attacked it.
Gold Apr Contract (GC, ETF: (GLD)) The 1740.00 bounce limit was tested into Thursday’s open. It was sharply exceeded intraday up to 1755.50, leaving outstanding a gap back to Wednesday’s 1731.00 close. It was already filled — a reversal back to 1740.00 extended down to 1728.00. Just closing under 1729.00 Friday would confirm the new downleg underway that was triggered by Wednesday’s close under 1740.00.
Silver Mar Contract (SI, ETF: (SLV)) While Thursday’s price action tracked Gold’s wild intraday ride, it lacked the fireworks. The retest of prior highs did continue the pattern of outperformance, although the missing fireworks suggests that Silver is simply more complacent. Regardless, closing under 33.60 still would signal a new downleg underway.
30-year Treasury Mar Contract (US, ETF: (TLT)) Thursday’s open gapped down and extended well under 141-28 and under 141-00. Just closing under 141-28 confirms the 140-00 target remains in-play. But another close under 141-00 may be difficult near-term if not broken immediately Friday.
Crude Oil Mar Contract (CL, ETF: (USO)) Wednesday’s rejection of the open’s gap up kept alive the last potential for resuming the decline. Thursday’s gap up to Wednesday’s ~100.00 area high — and then hovering there throughout the day without extending higher or retracing — still allows for resuming the decline, if only because a clear buy signal has not triggered.
Natural Gas Mar Contract (NG, ETF: (UNG)) Despite spiking up to 2.58 on EIA news, the reaction was retraced entirely back to the 2.48 area. The delay in exploiting the past week’s accumulative action is starting to suggest it wasn’t accumulation, at all. The buy signal remains at 2.61.
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