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 Not that I am one of its proponents (I’m not), perhaps that’s why I’m always happy to point out when Crude Oil’s correlation becomes questionable.
Dollar Basket Dec Contract (DX, ETF: (UUP, UDN)) Tuesday’s rally was immediate, and it immediately surged, closing at new highs. Hardly even acknowledging 80.00 resistance on the way to fresh highs, suggest the tide has turned positive
Eurodollar Dec Contract (EC, ETF: (FXE)) Tuesday’s steep decline back to prior lows doesn’t prevent another corrective bounce. But it would likely peak upon testing 1.2950-1.2975, and — regardless of probing higher first — fresh lows are now likely, and likely targeting 1.2740.
Gold Dec Contract (GC, ETF: (GLD)) Holding 1770.00 as support Monday allowed the recovery to resume, but it didn’t prevent Tuesday from extending lower to 1762.00. Now recovering 1770.00 must be confirmed by closing above 1780.00 to signal that 1814.00 is in-play.
Silver Dec Contract (SI, ETF: (SLV)) Monday’s break lower targeting 33.00 could have been invalidated by Monday immediately recovering from testing 34.00. But the dip to almost 33.50 was largely recovered. The 33.00 target should be tested regardless of whether Tuesday’s close is much higher. But its support could still hold.
30-year Treasury Dec Contract (US, ETF: (TLT)) Monday’s bounce to just above 148-00 had peaked for short of even attacking the 148-26 bounce limit. That helped Tuesday’s gap down to 147-21 rally back up to 148-14. It’s still too shallow to qualify as fulfilling the pattern’s corrective bounce, but closing back under 147-26 would signal momentum already reversing down.
Crude Oil Nov Contract (CL, ETF: (USO)) Monday’s low stopped optimistically short of filling the gap back down to last Wednesday’s 88.20 close. Nevertheless, Tuesday’s open gapped up through 90.15 and extended sharply higher intraday to attack 93.00 to within a dime. A fresh low was required to form a durable bottom, but closing above 93.00 would still be credible for launching a sizable rally to test 100.00, first.
Natural Gas Nov Contract (NG, ETF: (UNG, UNL)) Rather than probe either of the past two sessions’ lows before rallying, Tuesday already surged through 3.45. I’ll give it a benefit of the doubt for being able to extend higher — if confirmed by a second consecutive higher close, and so long as 3.45 holds as support.
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