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 Like tremors felt before an earthquake, several markets retraced opening gaps Monday. Currencies never extended their opens and only ranged narrowly sideways. Gold and Silver probed fresh highs before reversing back to Friday’s closing levels. Energies held up, but Natural Gas behaved much more strongly than Crude Oil.
Dollar Basket Dec Contract (DX, ETF: (UUP, UDN)) Sunday night’s fresh high was rejected before Monday’s open. Its gap down never extended lower, and the session developed entirely within Friday’s range. Probing any lower Tuesday would be credible for extending into a downleg.
Eurodollar Dec Contract (EC, ETF: (FXE)) Fresh lows were unavoidable after Friday’s session. Sunday night fulfilled that, and recovered before Monday’s open. Its gap up spent the entire session in positive territory, but held resistance at Friday’s high. Probing any higher Tuesday would be credible for triggering a rally.
Gold Dec Contract (GC, ETF: (GLD)) Last week I criticized Thursday’s recovery from Wednesday’s dip to the 1740.00 corrective target as being too quick. That is still a problem, despite Monday extending higher to retest the 1790.00 prior highs up to 1794.40. In fact, the fresh high was retraced to close back under Thursday and Friday’s highs. Back under 1770.00 would signal a deeper corrective leg underway, targeting 1727.00 and 1717.00. Otherwise, another fresh high would instead target 1814.00.
Silver Dec Contract (SI, ETF: (SLV)) The long-standing 35.40 target was met Monday. It was retraced abruptly back under prior highs, and back under 35.00. Almost any higher close Tuesday would get a benefit of the doubt for putting into play 36.75.
30-year Treasury Dec Contract (US, ETF: (TLT)) Monday’s inside day maintained the prior three days’ trading range that has been hovering narrowly at recent highs. A failed probe of fresh highs is still likelier to trigger a new downleg than simply to try probing lower.
Crude Oil Nov Contract (CL, ETF: (USO)) Monday morning’s fresh highs at 93.33 ultimately held 93.00 as resistance. In fact, much of the remaining session ranged narrowly around Friday’s 92.35 high, suggesting that buying pressure has been expended so the decline can resume.
Natural Gas Nov Contract (NG, ETF: (UNG, UNL)) Monday’s gap up quickly fulfilled the 3.40 target and extended higher to 3.48. So long as 3.40 now holds as support, the 3.58 and 3.75 targets are in-play.
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