Daily Spot: Week ender.
A weekly summary of one complex, including daily updates of other developments elsewhere.[pay]
Dollar Basket Mar (DXH) That first step is the hardest. Three of this week’s four sessions probed lower lows, including the last session. Mondays in this market tend to duplicate Fridays. And failing to close above prior lows Friday suggests the attraction to 79.15 prior lows above is now broken. Next targeting 77.25 and 76.05 unless 79.40 is recovered.
Gold Feb (GCH) Patient sellers, non-existent buyers. Friday’s gap down to new trend lows then ranged exclusively in negative territory. Although the open didn’t extend, it is not “ineffectual pessimism,” since no lower low was rejected and Thursday’s low wasn’t recovered (still being tested at the close). Still targeting 1333.00 and 1325.00, so long as 1349.00 is not recovered.
30-year Treasury Mar (USH) Not quite the bargain. Friday’s gap up was retraced to fill the gap back to Thursday’s close. A recovery through the morning finally probed the open’s high into the close. That’s too late to be predictive. Especially for an inside day. The strength was so late as to be considered weakness. Any early selling pressure Monday would be credible for extending down sharply to start the week.
Crude Oil Feb (CLG) Riding on fumes. Thursday afternoon’s range contained all of Friday’s inside day. The drop’s 89.00 target was retested, and held that second test. It has been thoroughly tested. Closing under 89.00 would trigger the next downleg targeting 84.00. Recovering 90.80 would target a retest of 92.00, first.
Natural Gas Feb (NGG) Reluctantly bullish. Reluctantly continuing to give the rally a benefit of the doubt. Fresh highs Friday up to 4.77 were retraced into negative territory, but recovered to a new high close – under the morning’s high. This rally leg is targeting 5.01 and 5.17 so long as pullbacks hold 4.63.
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Daily Spot coverage schedule is: Currencies (Mon), Metals (Tue), Energies (Wed), Rates (Thu), Weekender (Fri).