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 Gold’s wide $38 range Thursday almost paled in comparison to the size of Wednesday’s plunge. But it still qualifies as a highlight for stabilizing, and potentially allowing a significant corrective bounce.
Dollar Basket Mar Contract (DX, ETF: (UUP, UDN)) Thursday’s opening probe into negative territory quickly settled into a narrowing range around Wednesday’s close. While that’s not quite the confirmation prescribed for confirming a recovery underway, at least buyers weren’t rejected. Any immediately strength Friday would be credible for extending higher into the weekend, and then conditionally also out of the weekend.
Eurodollar Mar Contract (EC, ETF: (FXE)) Gapping down, probing under prior lows, and spending the entire session Thursday in negative territory was pretty pessimistic. But it was “ineffectual pessimism” for avoiding a close under the morning’s low. A probe under the morning’s low was avoided altogether, and therefore so was a recovery from fresh afternoon lows, which would have been bullish. Closing under 1.3333 is bearish, so initial weakness Friday would be credible for extending down into and out of the weekend. Initial strength at Friday’s open would more likely bounce intraday.
Gold Apr Contract (GC, ETF: (GLD)) Wednesday’s close at 1705.00-1710.00 was the lowest allowed for a corrective bounce to remain possible. Despite probing sharply lower overnight to 1688.00, Thursday’s open had already recovered and extended higher to test 1726.00. Closing back under 1708.50 would renew the decline. Meanwhile a corrective bounce has potential up to 1765.00.
Silver Mar Contract (SI, ETF: (SLV)) Closing above 34.50 Wednesday maintained potential to test 36.00 before resuming the decline. Thursday’s session mostly firmed back to 35.60 resistance, keeping alive the potential to test 36.00.
30-year Treasury Mar Contract (US, ETF: (TLT)) Although the effect of Bernanke’s testimony Wednesday already produced a devastating plunge to test 143-00, the long bond fell sharply again Thursday to 141-17. The drop’s momentum remains intact and next targeting 140-00 so long as bounces hold 142-00.
Crude Oil Apr Contract (CL, ETF: (USO)) Wednesday’s bullish recovery from under 105.50 to back above 106.50 extended higher Thursday for a second consecutive session to confirm momentum reversing up. A pullback from 108.90 must close above 107.90 to maintain potential to the 111.00-111.75 target.
Natural Gas Mar Contract (NG, ETF: (UNG)) Thursday’s gap down was not helped by the EIA report, as price tumbled further to 2.46 and a test of January’s lows.
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