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 soared Monday morning when Bernanke made his next stop on the “QE3 is Coming” tour. The rally from Thursday’s Island pattern under 1640.00 came within several dollars of its 1691.00 objective. More to come, or back to the Island?
Dollar Basket Jun Contract (DX, ETF: (UUP, UDN)) Friday’s low had bottomed upon retracing 61.8% of the rally from last month’s low. Immediate fresh lows Monday were maintained through the close, giving the drop potential for extending down to 79.10 and 78.87
Eurodollar Jun Contract (EC, ETF: (FXE)) Friday’s rally extended higher immediately Monday morning, extending also the 1-1/2 week old rally. It could still extend further to 1.3360 or 1.3400, so long as Friday’s 1.3290 were to hold as support. A close under 1.3250 is needed to signal momentum reversing down.
Gold Apr Contract (GC, ETF: (GLD)) Monday’s $20 spike up from 1655.00 on Bernanke’s comments followed Sunday night’s fresh high attacking 1670.00.Higher highs intraday came within almost $3 of touching the 1691.00 target. It can be tested up to 1697.00 before suggesting a bigger rally is underway. Otherwise, the Island’s 1627.50 low requires a retest.
Silver Apr Contract (SI, ETF: (SLV)) Monday’s gap up firmed only slightly higher intraday. But the pattern’s reluctance to extend another nickel to fill the outstanding gap back to last Monday’s 33.00 close does reflect pessimism, and this might be bullish from a contrarian perspective. However, gradually ticking to fresh highs — instead of surging — would be vulnerable to reversing down sharply.
30-year Treasury Jun Contract (US, ETF: (TLT)) Monday’s gap down was quickly retraced to fill the gap back to Friday’s 137-26 close. A fresh low down to 136-27 was also recovered. Now a close under 137-06 would trigger a new downleg targeting 134-10 Otherwise, potential remains alive to test 138-10 or 139-05 first.
Crude Oil May Contract (CL, ETF: (USO)) Friday’s $3 spike up through 107.70 has yet to recover back above 107.70. It also has yet to be rejected.. Its extension targeting 111.75 remains possible, but not triggered until closing above 107.70.
Natural Gas Apr Contract (NG, ETF: (UNG)) The recent pullback had held 2.27 to maintain potential to resume the rally. Monday’s close under 2.27 squelched it. Now bounces have room up to 2.32 before signaling momentum may be reversing up.
[/pay]
Share your questions and comments on this post in the blog, or in the chartroom…