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 Commodities were eerily calm Tuesday against the backdrop (or as the backdrop?) of the stock market’s wild gyrations. Don’t be deceived by their narrow ranges — big moves are brewing.

Dollar Basket Dec Contract (DX, ETF: (UUP, UDN))
Tuesday’s dip retested Monday’s gap down, but didn’t extend it. Closing back above 81.05 would still signal momentum reversing up.

Eurodollar Dec Contract (EC, ETF: (FXE))
Monday’s failed gap up was retested Tuesday instead of reversing down. It was all noise, so buyers didn’t gain traction for their effort, and closing back under 1.3470 would still signal momentum reversing down.

Gold Dec Contract (GC, ETF: (GLD))
A fresh low at 1268.00 before Tuesday’s open wasn’t repeated intraday, as the session ranged narrowly above Monday’s lows up to 1278.00. The “ineffectual optimism” suggests that a bottom isn’t yet forming.

Silver Dec Contract (SI, ETF: (SLV))
Monday’s night’s probe under Monday’s range down to 20.20 wasn’t repeated intraday Tuesday. Neither was it rejected. But any sudden steep surge would be plausible for reversing back up to 20.85, and higher in a new rally.

30-year Treasury Dec Contract (US, ETF: (TLT))
Tuesday’s narrow range helps to confirm that Monday’s 133-06 high didn’t quite stretch the rubber band tightly enough to trigger a reaction down back to the lows.

Crude Oil Jan Contract (CL, ETF: (USO))
Coverage rolls forward from Dec to Jan, which trades at 40-cent premium. More important is the new front-month has made slightly higher lows during the past two weeks, while the expiring contract made lower lows. Perhaps some momentary dip on Wednesday wouldn’t be inappropriate to finish forming a bottom — but it would be bordering on overkill, and a rally should be obvious by Wednesday afternoon if the recent ranging has been forming a bottom.

Natural Gas Dec Contract (NG, ETF: (UNG, UNL))
The reaction down from Monday’s opening sentiment extreme extended down Tuesday to 3.56-3.57. Any lower would confirm a retest of recent lows is underway.

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