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 While Veteran’s Day’s inhibition prevented trending Monday, releasing that pent-up pressure Tuesday seemed to push prices too far, too quickly. Energies are giving the clearest signals of trying to trend, but even they seem confused, with Crude Oil trying to trend downward and Natural Gas trying to trend upward.
Dollar Basket Dec Contract (DX, ETF: (UUP, UDN)) Monday’s Veteran’s Day did delay Friday’s gap down from extending further. Sort of. The pent-up buying pressure resolved down sharply Monday night to new highs at 81.32. But it was retraced entirely. Still, sellers gained no traction since positive territory was maintained.
Eurodollar Dec Contract (EC, ETF: (FXE)) Monday night’s drop to new lows at 1.2665 was eventually retraced back into positive territory Tuesday. But the open’s gap down to 1.2697 will want to be filled, possibly very soon since Tuesday did not recover positive territory.
Gold Dec Contract (GC, ETF: (GLD)) The weak rally did not extend higher. And a probe under 1727.00 support down to almost 1717.00 still failed to maintain its momentary recovery back above 1727.00. Closing under 1714.50 would confirm momentum had reversed down targeting 1700.00.
Silver Dec Contract (SI, ETF: (SLV)) Tuesday’s fresh high up to 32.85 was retraced back under the 32.50 prior highs, and back into negative territory. Now that a fresh high has been probed, any delay in extending higher would essentially signal the recovery attempt had failed.
30-year Treasury Dec Contract (US, ETF: (TLT)) It did not take very long after the Veteran’s Day holiday for the rally to resume and test its 152-16 target to within 1 tick. Its reaction down was recovered back above last week’s 152-00 prior high to prevent sellers from gaining traction. Retesting Tuesday’s high without delay could extend up to 152-30 and 153-14. Back under 151-08 would signal momentum reversing down.
Crude Oil Dec Contract (CL, ETF: (USO)) Monday’s delay in rejecting Friday’s bounce to 86.75 was fulfilled anyway by gapping down Tuesday to test 84.50. The open’s gap was filled, but the drop’s resumption and its 82.00 target get a benefit of the doubt so long as 86.00 is not recovered.
Natural Gas Dec Contract (NG, ETF: (UNG, UNL)) Monday’s bounce had avoided confirming Friday’s drop under the 3.53 prior lows. In fact, Monday’s bounce recovered to attack the 3.61 level where Thursday’s close had threatened to rally. Tuesday’s open did rally, gapping up sharply to 3.65 extending higher to 3.74. Closing any higher Wednesday would confirm 3.80 and new highs above 4.00 are in-play.
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