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 shutdown countdown wasn’t alone in influencing Monday’s markets. But it’s interesting how little influence that story had, compared to other influences. Gold may be the best example, fluctuating widely in reaction to a totally unassociated story.

Dollar Basket Dec Contract (DX, ETF: (UUP, UDN))
Sunday night’s initial strength was barely perceptible, and in eventually resolved down to fresh lows. A second consecutive lower close Monday was too borderline to call, but any strength from fresh lows at 80.05-80.10 would be credible for reversing up sharply.

Eurodollar Dec Contract (EC, ETF: (FXE))
Despite Sunday night’s open breaking lower, price firmed into Monday’s open. Prior highs weren’t tested, let alone fresh highs at 1.3580 which would be likely before a reliable downleg can begin.

Gold Dec Contract (GC, ETF: (GLD))
Sunday night’s probing above 1341.00 formed an Ascending Triangle that broke lower intraday on rumors of planned liquidation. Attacking the range’s 1321.00 lower-end reacted back up to 1335.00. Closing any higher would be likely also to break above 1341.00. Otherwise, reacting down from 1335.00 to retest 1321.00 would be likelier to break through the range’s lower-end.

Silver Dec Contract (SI, ETF: (SLV))
Another early test of 21.88-21.95 was unable to break higher Monday. At least some fresh probe attacking 23.00 is becoming likelier.

30-year Treasury Dec Contract (US, ETF: (TLT))
Only slightly higher highs Sunday night accompanied the stock market’s gap down, which isn’t much of a “flight-to-safety.” The premium had disappeared entirely by Monday’s open, and the session ranged flat-to-lower. At least one more new high close remains likely.

Crude Oil Nov Contract (CL, ETF: (USO))
Repeatedly chipping away at 102.30 support became all but required to extend the drop to 99.10. Breaking lower to 101.05 was retraced to attack 102.30 as resistance, which can be probed up to 102.95 before suggesting a deeper break lower may be avoided.

Natural Gas Nov Contract (NG, ETF: (UNG, UNL))
Monday’s gap down couldn’t be confused with initial strength, so there was no likelihood for extending higher. But the gap down was almost all recovered, and initial strength Tuesday would again be credible for becoming  a bigger corrective rally.

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