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.
The long bond gapped down to attack last week’s lows, underscoring that Monday’s recovery effort had stopped short of credulity. But there is still a burden of proof on sellers to follow through Wednesday.
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
Mar Contract DX; (NYSEARCA:UUP), (NYSEARCA:UDN)
The bounce’s 79.85 target was attacked both overnight and intraday Tuesday. Back under 79.40 should signal the retest underway of the decline’s 79.05 target.
Mar Contract EC; (NYSEARCA:FXE)
The pullback’s 1.3465-1.3475 target was met Monday night, triggering a reaction up to 1.3600 Tuesday, targeting a retest of the rally’s 1.3635-1.3640 target, probably to 1.3680.
Apr Contract GC; (NYSEARCA:GLD)
Closing at 1675.00 Monday undermined buyers only enough for Tuesday’s surge to 1687.00 to react down sharply to probe under 1669.00. Still testing at 1675.00 Monday’s close prevented the reaction down from gaining traction. Tuesday’s close was again testing 1675.00.
Mar Contract SI; (NYSEARCA:SLV)
Tuesday’s narrow ranging avoided extending in either direction. But it did retest 32.00 again. Any further delay in breaking higher should soon break lower, if not already breaking lower at Wednesday’s open.
Mar Contract US; (NYSEARCA:TLT)
Monday’s failure to close above 143-18 wouldn’t have been a problem had it not been probed intraday. But it was, so the consequence was to gap down Wednesday under 143-04 and to probe under 142-26. Any lower close Wednesday would confirm that 141-26 is in-play.
Mar Contract CL; (NYSEARCA:USO)
Monday’s gap under 97.00 might have been “ineffectual pessimism,” mostly since it failed to extend down intraday, but also because Tuesday gapped back up. Tuesday’s gap up failed to extend higher, suggesting that it might be “ineffectual optimism.” The alternating sequence tends to favor the latter setup, so immediate strength Wednesday would be credible for extending the rally to 99.00.
Mar Contract NG; (NYSEARCA:UNG), (NYSEARCA:UNL)
The 3.36 buy signal was tested Tuesday, and essentially still being tested through the close. Immediate strength Wednesday would be credible for launching a rally leg.
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.