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 Natural Gas reversed down from Monday’s gap up. But the reversal never closed low enough to actually reject the opening strength. Recovering it to close higher Tuesday would signal a much bigger rally leg underway.
Dollar Basket Mar Contract (DX, ETF: (UUP, UDN)) The reaction down from Friday’s test of the rally’s target extended lower Monday. There is room down to 80.20 before discounting a retest of last week’s highs up to 81.05.
Eurodollar Mar Contract (EC, ETF: (FXE)) The reaction up from Friday’s test of the decline’s target extended higher Monday, but not until after first dipping. That one bobble at this stage of the pattern makes the bounce likely to peak at either 1.3145 or 1.3180.
Gold Feb Contract (GC, ETF: (GLD)) Overnight probing above 1657.00 was rejected before Monday’s open. The session ranged narrowly to absorb Friday’s shock-to-the system. Under 1640.50 would at least test Friday’s 1634.70 opening gap, and closing under 1640.50 would target 1615.50. Avoiding that for another day would allow a buy signal to be calculated.
Silver Mar Contract (SI, ETF: (SLV)) It is premature to consider Monday’s ranging around 30.00 as reversing momentum up, or to make a further recovery attempt any more credible. But closing above 30.25 would be compelling for extending higher. There is otherwise no active signal.
30-year Treasury Mar Contract (US, ETF: (TLT)) Friday’s recovery from fresh lows did not extend higher Monday, still suggesting that any weakness would resume the decline next targeting 142-26/143-06.
Crude Oil Feb Contract (CL, ETF: (USO)) Little movement Monday at least avoided invalidating Friday’s recovery. But there is no reason to further delay the rally resuming Tuesday.
Natural Gas Jan Contract (NG, ETF: (UNG, UNL)) Monday’s second consecutive gap up was reversed back into negative territory (on a negative research outlook). Friday’s session was not bullish despite extending higher. Monday’s session is potentially bullish for leaving outstanding the open’s gap at 3.33. Closing above 3.35 would qualify as a breakout, with a second consecutive higher close Tuesday confirming.
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