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 The long bond probed fresh highs after Friday’s Employment Situation report. It could be the start of something big, if it isn’t already the end of something small.
Dollar Basket Jun Contract (DX, ETF: (UUP, UDN)) The volatile reaction to Friday’s Employment Situation report was recovered to fresh highs testing 79.60. Almost any higher close Monday would target 80.35-80.40.
Eurodollar Jun Contract (EC, ETF: (FXE)) Friday’s volatile reaction to the Employment Situation report ultimately resoved down, probing under Thursday’s overnight low to test 1.3085. It may be further probed down to 1.3065. But closing under 1.3050 would signal a much bigger drop underway.
Gold Jun Contract (GC, ETF: (GLD)) Fresh lows overnight probed 1627.00, but Thursday’s 1631.30 low was recovered at Friday’s open. The recovery extended to test Monday and Wednesday’s “higher prior lows” at 1645.00-1646.00. Although the 1638.00 bounce limit failed to hold, breaking under it Monday would be credible for resuming the decline to 1617.00 since Friday’s bounce essentially held 1644.00 resistance.
Silver Jun Contract (SI, ETF: (SLV)) Thursday’s probe under the 30.00 area’s prior low wasn’t entirely rejected through the close. Friday’s open extended higher temporarily without gaining traction. Closing under 30.00 would still resume the decline.
30-year Treasury Jun Contract (US, ETF: (TLT)) A blip-down that attacked the 142-10 sell signal was absorbed by the Employment Situation report’s negative surprise, reversing to new relative highs at 143-25. I have ahd no active buy signal, but a second consecutive higher close would confirm the breakout, targeting 144-20.
Crude Oil Jun Contract (CL, ETF: (USO)) The reaction down from 105.25‘s false breakout extended down sharply Friday to 97.50. And that’s probably not the end of it. A correction has room up to 100.40 without sellers losing traction, and back to 102.10 before buyers gain traction. Otherwise, the next lower target is 95.50.
Natural Gas Jun Contract (NG, ETF: (UNG, UNL)) Friday’s weak open soon slipped under 2.30, which needed to hold as support to maintain the pattern’s bullish potential. Its test Wednesday was recovered already, so probing it again Friday is not helpful to the recovery. The close was still testing 2.30, so any initial trending Monday would be credible for extending in that direction.
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