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 may be ready finally to resume its rally. It may have firmed Tuesday in sympathy with Crude Oil’s gains, but one more corrective dip should be its last.
Dollar Basket Sep Contract (DX, ETF: (UUP, UDN)) Monday’s “inside day” made Tuesday likely only to range sideways since Friday’s drop was unlikely to resume. Tuesday’s narrow range held just above 81.70, whose test as support is capable of launching a rally leg.
Eurodollar Sep Contract (EC, ETF: (FXE)) Sideways trending back up to 1.2670 was likely after Monday’s close. Tuesday’s opening dip under Monday’s low bounced from 1.2570 to 1.2640, leaving a little more room above before presumably resuming the decline.
Gold Aug Contract (GC, ETF: (GLD)) Monday’s “ineffectual pessimism” under 1602.00 was likely to resolve up and fill the next higher outstanding gap at 1613.00. That was actually Tuesday’s post-open low, as intraday trending up to 1625.70 filled another higher gap outstanding from 1623.40. Now a close under 1613.00 would signal momentum reversing down to 1598.00 and potentially much lower.
Silver Sep Contract (SI, ETF: (SLV)) Tuesday’s open above 27.75 extended higher intraday to attack 28.50. Closing above it would confirm a move underway targeting 30.00-30.35.
30-year Treasury Sep Contract (US, ETF: (TLT)) Monday’s failure to close above 149-18 still required a higher close to trigger a rally leg. Tuesday’s gap down instead corrected the rally from Friday’s low down to 148-19, and fell further post-close down to 148-11. A second consecutive lower close would all but require probing fresh lows under 147-24. Recovering 149-00 should make a new rally leg obvious, confirmed above 149-18.
Crude Oil Aug Contract (CL, ETF: (USO)) Steep overnight gains produced a sharply higher gap up Tuesday that ranged 87.00-88.00 through the session. Pullbacks have room down to 85.50 while next targeting 91.10.
Natural Gas Aug Contract (NG, ETF: (UNG, UNL)) The gap back to last week’s 2.86 opening high was filled Tuesday on the way to 2.90. Closing above 2.95 would signal a new upleg underway targeting 3.55. Meanwhile, one more dip down to 2.72 should be the last before resuming the rally.
[/pay]
Share your questions and comments on this post in the blog, or in the chartroom…