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.
Friday’s Highlight While Gold has been plummeting, Crude Oil has suddenly broken under prior lows. Its new breakout might not be independent of Precious Metals weakness if it were to bounce with Precious Metals on Monday.
Dollar Basket Dec Contract (DX, ETF: (UUP, UDN))
Having left at least a little upside on the table following Thursday’s surge, the impending weekend illiquidity exacerbated that with another surge Friday. Prior highs at 80.85 were retested, and held. Extending any higher through Monday’s close probably has to take the form of extending higher aggressively. The rally’s momentum still remains intact so long as 80.30 holds as support.
Eurodollar Dec Contract (EC, ETF: (FXE))
Slightly lower lows would have fulfilled the drop’s minimum objective Thursday. But leaving it on the table leveraged the shallow attraction into a deep plunge Friday, which tested prior lows at 1.3480. Extending the drop without delay at this stage probably needs to take the form of doing so aggressively, but a pullback has room up to 1.3600.
Gold Dec Contract (GC, ETF: (GLD))
Still testing 1321.50 at Thursday’s close required sellers not to skip a beat if the drop was going to extend down without delay. The overnight drop fulfilled that, and then set-up a similar challenge by testing 1306.00 support intraday. Regardless, the second consecutive lower close confirms Thursday’s breakout, requiring at least one more lower close eventually. Holding 1306.00 as support Friday would make the path down likely to include a bounce first.
Silver Dec Contract (SI, ETF: (SLV))
Friday’s narrow inside day underscored that a lot of selling pressure was expended and fulfilled in Thursday’s drop. A corrective bounce is likely before resuming the decline.
30-year Treasury Dec Contract (US, ETF: (TLT))
Thursday’s second consecutive lower close had confirmed Wednesday’s breakout, and Friday’s lower close has already fulfilled the setup’s minimum requirement of a third lower close. There is still potential down to 132-24, so long as 134-12 were to hold as resistance.
Crude Oil Dec Contract (CL, ETF: (USO))
Thursday’s dip to relevant support didn’t find any buyers Friday morning before extending under prior lows to test 94.55. Now bounces have room up to 96.25 before signaling momentum is reversing up.
Natural Gas Dec Contract (NG, ETF: (UNG, UNL))
Friday’s fresh lows suggest even lower lows on Monday, which tends to be a pattern with Natty Gas. Probing fresh lows Monday and closing positive would be the first opportunity for any kind of bottoming.
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