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Daily Spot – If, Then… Market Timing

Daily Spot

By Rod David | October 12, 2012 - 3:01 pm

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 Precious Metals like Gold and Silver already had plenty of opportunity to resume their rallies by Thursday, unless deeper corrective dips are in store. Friday’s action suggests those deeper dips are ready.

Dollar Basket Dec Contract (DX, ETF: (UUP, UDN)) Wednesday night’s failed rally that reversed down into Thursday was then extended down further into Friday’s open. Despite extending down initially, the Thursday’s lows were recovered. Now a recovery above 79.90 would target 80.55 and 81.00, but there is otherwise no signal.

Eurodollar Dec Contract (EC, ETF: (FXE)) Fresh highs that overnight extended to 1.300 were nevertheless retraced back into Thursday’s range down to 1.2945, settling within the 1.2950-1.2975 bounce limit. Potential for extending up to 1.3100 may have been lost.

Gold Dec Contract (GC, ETF: (GLD)) Thursday’s probing above 1770.00 resistance was not impressive and did not negate the potential for resuming the corrective drop targeting 1727.00 and 1717.00. Friday’s drop back under 1760.00 suggests that this move is underway, which would be confirmed by a second consecutive lower close Monday — although, this market tends to fulfill its objective the same day or next day as they are triggered.

Silver Dec Contract (SI, ETF: (SLV)) Thursday’s narrow ranging around the week’s ~34.15 prior highs did not negate the potential for extending the correction down to 33.00. Friday’s close

30-year Treasury Dec Contract (US, ETF: (TLT)) Closing so far above 149-00 during Thursday’s choppy ranging made a test of 149-16/149-24 likely. Friday’s rally extended momentarily up to 150-07 before reacting back down to 149-16. Any negative close on Monday would trigger at least a corrective dip targeting 148-16.

Crude Oil Nov Contract (CL, ETF: (USO)) The 93.00 resistance test still has not resolved up, but Friday’s reaction down once again held the 91.20 pullback limit instead of breaking lower. An early aggressive rallying would still be credible for extending to 100.00.

Natural Gas Nov Contract (NG, ETF: (UNG, UNL)) Friday’s narrow ranging around the rally’s 3.58 target that was met Thursday — instead of rejecting it — maintains potential for extending higher to the next higher target at 3.75.

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Posted in Daily Spot