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 For a second consecutive session, many futures and commodities were volatile while indexes ranged relatively narrowly.
Dollar Basket Sep Contract (DX, ETF: (UUP, UDN)) Monday’s relatively narrow range did not produce a second consecutive lower close, so Friday’s breakout was not confirmed. Avoiding a lower close Tuesday would confirm instead that last week’s shallow basing could launch only a temporary new extreme.
Eurodollar Sep Contract (EC, ETF: (FXE)) Monday’s relatively narrow range did not produce a second consecutive higher close, so Friday’s breakout was not confirmed. Avoiding a higher close Tuesday would confirm instead that last week’s shallow basing could launch only a temporary new extreme.
Gold Dec Contract (GC, ETF: (GLD)) Monday’s weakness to 1729.00 shallow compared to Friday’s rally having fulfilled its 1744.00 target. A slightly lower low at 1727.00 may be deep enough to resume the rally leg, or else 1716.50 will be tested next.
Silver Sep Contract (SI, ETF: (SLV)) Initial weakness Monday was recovered to probe a fresh high above 34.00. The session essentially ranged sideways around Friday afternoon’s range without ever extending the rally. A corrective dip to 32.95 is likelier than extending next up to the rally’s 35.40 target.
30-year Treasury Dec Contract (US, ETF: (TLT)) Monday’s open extended Friday afternoon’s drop by gapping down. But the morning’s selling was contained within Friday morning’s spike. Resuming the decline prior to another corrective bounce all but requires resuming the decline Tuesday without any hesitation.
Crude Oil Oct Contract (CL, ETF: (USO)) Monday’s narrowly ranging inside day did not reverse momentum upward, which undermines the credibility of Friday’s recovery attempt.
Natural Gas Oct Contract (NG, ETF: (UNG, UNL)) Although Friday’s 2.66 low was unlikely to recover immediately, it pretty much did. Monday’s open firmed up to 2.74 and then the afternoon surged up to 2.84. Holding 2.76 as support would keep 3.08 targeted.
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