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 It is certainly interesting that the long-bond fell out of bed in tandem with stocks Thursday. Usually, it serves as a destination in a “flight-to-quality.” But the bond had a target in-play, and now it has been met.

Dollar Basket Sep Contract (DX, ETF: (UUP, UDN))
One of the two gaps outstanding below was filled when Thursday’s attempt to resume the rally was rejected decisively. The lower gap need not be filled before rallying more substantially, but no new signal is yet available from this pattern.

Eurodollar Sep Contract (EC, ETF: (FXE))
The congestion that was formed by Wednesday’s inside day did cause a bounce to fail. The bounce was a little shallower and a little shorter lived than was expected, reversing down into Thursday morning from barely probing 1.3333 overnight. The premature failure proved to be lacking sponsorship when its fresh low was reversed up sharply intraday well above 1.3333. A sell signal has been averted for now, but more topping is still likely.

Gold Oct Contract (GC, ETF: (GLD))
Fresh highs overnight up to 1346.00 were retraced back down to Tuesday’s 1319.00 lows. Breaking under it would have signaled a top had formed. Instead its test launched a surge to fresh highs testing 1369.00. The rally’s 1375.00 target remains in-play so long as pullbacks now hold 1352.00.

Silver Sep Contract (SI, ETF: (SLV))
The rally extended sharply higher to test 23.20. Pullbacks now have room all the way back down to 22.15 whose break would signal momentum reversing down. But the rally has room for extending further only to 23.50.

30-year Treasury Sep Contract (US, ETF: (TLT))
Having absorbed Tuesday’s shock to the system by ranging narrowly Wednesday, the drop resumed Thursday and quickly fulfilled the long-outstanding 131-06 objective. There is no new signal.

Crude Oil Sep Contract (CL, ETF: (USO))
The firming continued Wednesday night amid ongoing rioting in Egypt, attacking 108.00. The 110.65 target remains intact so long as pullbacks now hold 106.50 as support.

Natural Gas Sep Contract (NG, ETF: (UNG, UNL))
Thursday’s EIA report didn’t interfere with the firming already underway that has now extended back above 3.36 to signal a new rally leg underway. Its initial objective at 3.57 and then to 3.70 remain intact so long as pullbacks now hold 3.34 as support.

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