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’s other shoe dropped Thursday. Wednesday’s deceptive calm was followed by the proverbial storm. Is a one day drop  from the two-day consolidation — no matter how large the drop — really enough to neutralize selling pressure?

Dollar Basket Sep Contract (DX, ETF: (UUP, UDN))
Thursday’s fresh low still recovered back above 81.45 to suggest the drop’s momentum is waning.

Eurodollar Sep Contract (EC, ETF: (FXE))
Early weakness Thursday was recovered intraday to retest Wednesday’s high, attacking the 1.3333 bounce limit again. Wednesday’s RSIs diverged negatively, so any further delay in resuming the rally would be bearish.

Gold Dec Contract (GC, ETF: (GLD))
Narrow ranging continued Wednesday instead of recovering, making the decline likelier to resume to its 1341.00 “lower prior highs.” Which it did overnight, and then extended to 1325.60 intraday Thursday. Closing back above 1337.50 would start to signal the drop had ended. Back above 1341.00 and 1344.00 would start to signal momentum reversing up.

Silver Dec Contract (SI, ETF: (SLV))
The drop was likely to resume if Thursday had not triggered a buy signal, but Thursday’s open was already plunging. The next lower target at 22.10 was tested down to 22.00. Closing any lower Friday — whether a little or a lot — would signal that the leg was extending.

30-year Treasury Dec Contract (US, ETF: (TLT))
Thursday quickly fulfilled the potential to probe 130-00 before resuming the decline. The balance of the session ranged around it. Closing back under 129-14 would now signal a move underway to new lows, potentially targeting 127-04.

Crude Oil Oct Contract (CL, ETF: (USO))
Room for improving further up to 108.75 was fulfilled early Thursday, testing it up to 109.25 before reversing to close back under 108.75. Extending any higher should be at a much steeper slope, or else the bounce has ended.

Natural Gas Oct Contract (NG, ETF: (UNG, UNL))
Thursday’s bullish reaction to the EIA report recovered initial weakness to rally sharply and trigger the 3.61 buy signal by a nickel. A second consecutive higher close Friday is required to confirm a new rally leg underway.

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