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 The long bond had fulfilled its minimum downside objective Thursday. That enabled a bounce in reaction to Friday’s Employment Situation report. But probably not a durable bounce, which is why so much of the reaction was returned before the weekend. Crude Oil is meanwhile retesting the rally’s target, and deciding whether to extend or to collapse.

Dollar Basket Sep Contract (DX, ETF: (UUP, UDN))
Reacting down to Friday’s Employment Situation report tested Thursday’s 82.10 low, which must hold as support to maintain the rally’s momentum.

Eurodollar Sep Contract (EC, ETF: (FXE))
Friday’s overnight retest of Thursday’s 1.3110 low reacted up on the Employment Situation report. But it is only a corrective bounce if 1.3205 is not also recovered.

Gold Dec Contract (GC, ETF: (GLD))
Lower lows overnight were blind-sided by Friday’s Employment Situation report. The reaction triggered a gap up above 1381.00. Its recovery through Friday’s close would have signaled momentum reversing up. Gapping up above it Friday is a proxy for at least having recovered 1377.00 to signal the decline is done, with upside objectives at 1410.00 and higher now in-play.

Silver Dec Contract (SI, ETF: (SLV))
Flat-to-lower ranging overnight responded well to the Employment Situation report, surging through the 23.55-23.75 buy signal and gapping up Friday above it. The Island’s gap back up to 24.40 and high is now in-play.

30-year Treasury Dec Contract (US, ETF: (TLT))
Fresh lows overnight down to 128-12 retested the three-week old overnight low before the Employment Situation report triggered a spike up to 130-01. Having greeted the report from weakness, the reaction up is likely just from being being oversold. In fact, the spike was retraced to its 129-04 pullback limit that we discussed during the Market Tour. Closing any lower would signal the decline had resumed, next targeting 127-04.

Crude Oil Oct Contract (CL, ETF: (USO))
Thursday’s close above 180.75 extended higher Friday to fulfill the minimum 110.65 target. Fresh highs above 112.25 are possible so long as 109.75 were to hold as support.

Natural Gas Oct Contract (NG, ETF: (UNG, UNL))
Friday extended Thursday’s dip back under 3.57, but without gaining momentum. Any initial strength Monday would again be likely to extend igher intraday.

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