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 Natural Gas is getting a lot of attention as its relentless slide gets a shiny new $1 handle. New lows are not a buy signal, even if a target were being tested, which is not.
Dollar Basket Jun Contract (DX, ETF: (UUP, UDN)) Bouncing only slightly Tuesday allowed further delaying the recovery. So, Wednesday dipped under Monday’s 79.80 low. Its reaction up still left outstanding the gap back to Tuesday’s 80.10 close. The rally is still likely to resume so long as 79.80 holds as support.
Eurodollar Jun Contract (EC, ETF: (FXE)) Tuesday’s dip was too shallow to resume the decline. Wednesday’s bounce held 1.3145 resistance and closed back under prior highs. Back under 1.3075 should resume the decline.
Gold Jun Contract (GC, ETF: (GLD)) Tuesday’s test of the 1661.00 bounce target held through Wednesday. But there was no meaningful reaction down, suggesting that at least a probe of fresh highs is coming. Rejecting it to close back under 1657.00 would signal momentum reversing down.
Silver May Contract (SI, ETF: (SLV)) Tuesday’s dip held a test of 31.45 to avoid signaling momentum reversing down. Now having backed off from 31.75, closing back above it would target 32.30 and higher.
30-year Treasury Jun Contract (US, ETF: (TLT)) Rallying stocks lured money from Tuesday’s flight-to-safety destination. Wednesday’s pullback used all but 2 ticks of its 140-12 pullback limit, whose break through the close would have targeted 138-00. Meanwhile, a bounce to 141-16 has become likely first.
Crude Oil May Contract (CL, ETF: (USO)) Still range bound between 98.85-104.70, with recoveries above 102.25 being slightly likelier to test the range’s upper-end first, but no compelling pattern otherwise.
Natural Gas May Contract (NG, ETF: (UNG)) Dipping under $2 makes it more difficult to recover 2.13 and trigger a bigger rally. And now there is that much more room to absorb buying pressure before even threatening a better close.
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