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 Thursday’s highlight was its lowlight, as Crude Oil gapped right back from Wednesday’s gap down. Will Gold follow it? If not, then another Gold drop remains likely.
Dollar Basket Dec Contract (DX, ETF: (UUP, UDN)) Thursday’s 80.13 opening gap was under all prior lows, so it requires being retested. Also testing the 79.75 target intraday and recovering to close back above 80.13 would form a bottom.
Eurodollar Dec Contract (EC, ETF: (FXE)) Thursday’s gap up to the 1.2995 prior high doesn’t require a retest. But having closed above 1.2955 keeps alive the 1.3050 target.
Gold Dec Contract (GC, ETF: (GLD)) The bounce potential to 1727.00 was tested Thursday, and held, allowing a new downleg to begin. Beware of any fresh high, because extending higher would likely be at a very steep pace.
Silver Dec Contract (SI, ETF: (SLV)) The outperformance vs. Gold gave its greatest display Thursday, gapping up and extending up above the 34.15 prior high. Closing back under 33.90 would start to seal a top, and prevent extending higher to 36.00.
30-year Treasury Dec Contract (US, ETF: (TLT)) Thursday’s gap down reacted to Wednesday’s “ineffectual optimism,” but did not extend down. Perhaps worse, the gap back to Wednesday’s close was filled, without extending higher, neutralizing the attraction above without putting into play any higher target. Back under 150-28 would target 150-14, and probably resume the decline.
Crude Oil Jan Contract (CL, ETF: (USO)) Rather than close under 85.75 to confirm that 82.00 was in-play, and despite closing under 86.70 Wednesday, Thursday’s open gapped up to recover all of Wednesday’s plunge from 87.20, ranging 87.65-88.70 intraday. That’s bullish only if followed by a higher close Friday. It otherwise suggests this range will persist for several days.
Natural Gas Jan Contract (NG, ETF: (UNG, UNL)) Wednesday’s complete recovery back up to 3.70 from testing 3.62 intraday did produce a gap up Thursday. But it was reversed back down to 3.63 on the EIA report. Thursday’s drop accomplished nothing that Wednesday’s drop had not done already, so it is not necessarily bearish, but there is currently no signal.
[/pay]
Share your questions and comments on this post in the blog, or in the chartroom…