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 Mark-to-market influences for tax purposes can influence the last session’s price action. But Gold’s rally Monday seems very much in-line with expectations.
Dollar Basket Mar Contract (DX, ETF: (UUP, UDN)) Monday’s choppy sideways ranging kept alive potential to test 80.20, which would put into play higher targets.
Eurodollar Mar Contract (EC, ETF: (FXE)) After Sunday night’s temporary strength, Monday’s session ranged almost exclusively in negative territory. Friday’s 1.3325 close was still being tested, and not broken. Back under 1.3195 should trigger a delayed decline targeting 1.3080, but there is otherwise potential for fresh highs to test 1.3325.
Gold Feb Contract (GC, ETF: (GLD)) Having earned one extra day to make its case, the recovery began Monday by gapping up above 1660.00, and then extended higher to 1681.00. Just recovering 1675.00 was the minimum requirement, so a second consecutive higher close Wednesday would confirm a major recovery underway.
Silver Mar Contract (SI, ETF: (SLV)) Monday afternoon’s surge above last week’s 30.20 prior highs did not touch last week’s 30.501 prior high. If the hesitation is bullish — which it is, potentially, from a contrarian perspective — then the recovery should not hesitate extending higher Wednesday.
30-year Treasury Mar Contract (US, ETF: (TLT)) Monday’s blip-up peaked just under Friday’s 148-25 pre-open high before reversing down sharply to 147-03. There is no bullish reason for this retracement, and closing under 147-00 would signal signal momentum reversing down.
Crude Oil Feb Contract (CL, ETF: (USO)) Friday morning’s retest of 91.30-91.40 prior highs suggested that a distributive top was not forming. Monday’s fresh highs attacked 92.00. A second consecutive higher close Wednesday would confirm.
Natural Gas Jan Contract (NG, ETF: (UNG, UNL)) Friday’s recovery had stopped pessimistically short of extending to fresh highs. That didn’t prevent gapping down Monday, instead of extending higher. But there was no breakout to confirm, so buyers aren’t undermined. And gapping down Monday did not gain traction — in fact, it filled the gap back down to Thursday’s close. Above 3.45 would qualify as a breakout.
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