The following are the latest daily summaries of my ongoing intraday coverage, providing context to interpret price action. Any prices listed are for a contract's current "front month." Their direction tends to correlate with any ETFs listed for each.
Sometimes we can be our own best (contrary) indicators. Wednesday’s deep plunge to fresh lows had me entertaining the idea of lowering my target. Of course, Thursday recovered almost the entire plunge.
Editor's note: Rod's analytical techniques are designed to efficiently identify targets and turning points for any liquid stock or market in any time frame. He applies his techniques live intraday, primarily to S&P futures, at RodDavid .com
Dec Contract DX; (NYSEARCA:UUP), (NYSEARCA:UDN)
Without immediately extending to fresh highs after Wednesday’s peak at the range’s upper-end, a drop back to and through the range’s lower-end was likely. Thursday’s open gapped down back to Tuesday’s 79.80 close and then slid below prior lows to 79.35, next targeting 79.00.
Dec Contract EC; (NYSEARCA:FXE)
Wednesday’s dip from Tuesday’s “ineffectual optimism” was less damaging than the session could have been. In fact, it neutralized the attraction back down to Monday’s 1.2900 close. Thursday’s gap up above the 1.2955 buy signal extended higher intraday to 1.3040, targeting the 1.3100 area next.
Dec Contract GC; (NYSEARCA:GLD)
Narrow extended ranging around 1780.00 had established that the rally’s sponsorship had worn thin, but also that sellers were not ready to retake control. Thursday’s gap up to fresh highs attacking 1798.00 suggests the final upleg targeting 1814.00 is underway.
Dec Contract SI; (NYSEARCA:SLV)
Thursday’s gap up above 35.00 did not extend higher, and the balance of the day ranged choppily around 35.00. But the initial reaction down did essentially fill the gap back to Wednesday’s close, so a second consecutive higher close Friday would confirm 36.75 is in-play.
Dec Contract US; (NYSEARCA:TLT)
Drifting lower Thursday to probe slightly under the past week’s lows at 148-27 is too shallow and hesitant to be credible for triggering a durable drop. Closing under 148-10 could be bearish, but the dip should otherwise recover to probe recent highs up to 150-16.
Nov Contract CL; (NYSEARCA:USO)
Thursday’s gap up to 88.80 extended sharply higher intraday to test 91.80. That might seem to reject Wednesday’s even deeper drop, but it does not. The pattern may yet go on to do so, and can firm further to retest 93.55 before reversing down. Regardless, gapping up from Wednesday’s 88.00 close and trending up sharply reflect too much optimism at a low to form a durable bottom.
Nov Contract NG; (NYSEARCA:UNG), (NYSEARCA:UNL)
Thursday morning firmed, but did not recover the 3.45 buy signal that would resume the rally and reinstate its 3.58 and 3.75 targets.
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.