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 Summers removed himself from consideration for replacing Bernanke, sending shock waves through the system. Seemingly most removed from the turmoil’s influence is Natural Gas, which is forming an interesting setup. Three consecutive sessions have now recovered to fresh highs despite gapping down.

Dollar Basket Sep Contract (DX, ETF: (UUP, UDN))
Monday’s gap down attacked prior lows down to 81.13, including August’s pivotal low. At least a temporary probe of fresh lows is in-play — perhaps only intraday — without there first being two consecutive higher closes back above 81.45.

Eurodollar Sep Contract (EC, ETF: (FXE))
Room for noise above the 1.3333 bounce limit included 1.3380, which was tested Sunday night on the Larry Summers news.  The balance of the session drifted back down to 1.3340, which is not a sell signal, but does define an area that will launch the next substantial leg.

Gold Dec Contract (GC, ETF: (GLD))
A probe above the 1321.00 buy signal after Friday’s close extended eventually up to 1335.00 before being retraced entirely back down to 1307.00-1310.00 into Monday’s open. An intraday bounce was retraced back down to 1317.00 and lower, still failing to reverse momentum up.

Silver Dec Contract (SI, ETF: (SLV))
Friday’s post-close rally from under 21.80 eventually extended up to 22.40 but was retraced entirely into Monday’s open. An intraday bounce was also retraced, leaving open the door to one more lower close.

30-year Treasury Dec Contract (US, ETF: (TLT))
Chipping away at 130-00 resistance after Friday’s open back above 129-14 had begun suggesting a sizable probe higher was possible. The Larry Summers news did trigger a gap up that extended Monday morning to 131-12. It was retraced entirely back down into negative territory at 129-27, leaving open the door to resuming the decline.

Crude Oil Oct Contract (CL, ETF: (USO))
Monday morning’s gap down extended to 106.10 before bouncing. Last week’s rally up to its 108.75 target is still being consolidated, and still needs to hold tests of 106.75 support to maintain the recovery potential.

Natural Gas Oct Contract (NG, ETF: (UNG, UNL))
Monday’s gap down and recovery to fresh highs was the third consecutive session to form this pattern. Extending sharply higher Tuesday is likely so long as 3.62 support is not broken.

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