Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the disable-gutenberg domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home4/jwl23/public_html/rd.johnlander.me/wp-includes/functions.php on line 6131
Daily Spot – If, Then… Market Timing

Daily Spot

By Rod David | November 11, 2013 - 2:11 pm

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 Reduced liquidity during the Veteran’s Day holiday inhibited trending Monday, but it probably also influence price action on Friday. How much in either case is irrelevant. But the sequence does suggest that volatility will expand considerably Tuesday and Wednesday.

Dollar Basket Dec Contract (DX, ETF: (UUP, UDN))
Veteran’s Day and no weekend developments combined to produce a narrowly ranging Monday session that had no impact on the pattern.

Eurodollar Dec Contract (EC, ETF: (FXE))
Monday’s “inside day” neither reinforced nor undermined the potential for extending or reversing the decline.

Gold Dec Contract (GC, ETF: (GLD))
Not immediately rallying Monday suggests that the decline is not finished. After Friday filled an outstanding gap and finally produced a third lower close, ranging narrowly doesn’t prevent a bounce, but it undermines a bounce’s ability to gain traction.

Silver Dec Contract (SI, ETF: (SLV))
Monday’s narrow ranging around the decline’s 21.35 target that already has been thoroughly tested doesn’t prevent a bounce, but it does suggest a bounce will only refuel sellers to extend the decline to its 20.70 target.

30-year Treasury Dec Contract (US, ETF: (TLT))
Slightly lower lows Monday extended Friday’s steep decline, making at least another lower close likely before any rally effort could have potential for reversing the trend up.

Crude Oil Dec Contract (CL, ETF: (USO))
The decline has yet to resume, even if only to probe fresh lows down to the outstanding 92.85 target. Monday’s flat-to-higher ranging probed the 94.60 bounce limit to also test 95.30 resistance, whose recovery would allow at least a corrective bounce to develop.

Natural Gas Dec Contract (NG, ETF: (UNG, UNL))
Narrow ranging Monday did not probe any higher high, or retrace any more of Thursday’s range than what Friday’s highs already held. There is no particular timing to attacking or retesting recent lows, but not extending higher after Friday’s “inside day” does suggest any earlier rally effort would be premature.

[/pay]

Share your questions and comments on this post in the blog, or in the chartroom…

Posted in Daily Spot