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 Gold extended sharply higher Friday to confirm Thursday’s breakout. The only two questions now seem to be how much higher, and how quickly. The third question should still have the same answer — then a move to new lows gets underway.

Dollar Basket Sep Contract (DX, ETF: (UUP, UDN))
Friday’s dip back under Thursday’s low recovered enough to spend the afternoon ranging around 81.45, whose recovery already suggests that a bottom has formed and that a new upleg is underway.

Eurodollar Sep Contract (EC, ETF: (FXE))
Friday’s bounce off of 1.3333 essentially filled the gap back up to Tuesday’s 1.3422 close. A reaction down prevented the bounce from gaining traction, and now back under 1.3360 would signal momentum reversing down.

Gold Oct Contract (GC, ETF: (GLD))
Thursday’s breakout to 1381.00 extended higher without delay Friday, extending to attack 1399.00. The rally’s momentum now targeting 1410.00 remains intact so long as pullbacks now hold 1388.00, and momentum would reverse down under 1383.00.

Silver Sep Contract (SI, ETF: (SLV))
Friday morning’s surge through 23.50 eventually probed a dime above 24.00. There is potential to 24.55 so long as pullbacks now hold 23.40. But a close under 23.20 would be needed to signal momentum reversing down.

30-year Treasury Sep Contract (US, ETF: (TLT))
Friday’s early break above 131-00 resistance extended to test 131-30 resistance intraday. Resistance stretches up to 132-04 and 132-10 before assuming Wednesday night’s drop to within 10 ticks of the 128-18 target has fulfilled the decline, which would be back in-play under 131-00.

Crude Oil Oct Contract (CL, ETF: (USO))
Despite not yet completing its pullback objective to at least 103.25, Thursday’s bounce to 105.20 extended Friday to 106.95. Back under 105.40 would signal the bounce had ended, and under 104.90 would resume the decline, targeting 103.25 and potentially 102.65.

Natural Gas Sep Contract (NG, ETF: (UNG, UNL))
The week was filled with not confirming Monday’s breakout, not immediately correcting the weak buying pressure, and then trying to extend higher prematurely. Even Friday’s dip was suspicious for perhaps being too shallow. But rallying Monday from the dip to 3.48-3.50 would still be credible for resuming the rally.

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