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.
Gold and silver had begun rallying sharply before Wednesday’s FOMC announcement. Their rallies extended sharply into the following morning. But no net improvements on Thursday made them vulnerable, and Friday reclaimed almost all of Wednesday’s gains.
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)
Narrow ranging in slightly positive territory ended the week. No new signal is offered, but closing above Monday’s high after probing under Thursday’s low would trigger a rally.
Dec Contract EC; (NYSEARCA:FXE)
Friday’s narrow ranging offered no new signals, except the “ineffectual optimism” that prevented a deeper, healthier dip that could have refueled buyers to help extend the rally.
Dec Contract GC; (NYSEARCA:GLD)
Thursday failed to extend the FOMC rally, opening the door to a correction back down to 1341.00. It was tested Friday down to 1327.20, and not recovered by the close. Recovering it immediately Monday is probably the only way to resume the rally without first testing 1321.00, whose break would target new lows.
Dec Contract SI; (NYSEARCA:SLV)
Friday’s gap down held 22.75 as resistance and extended another dollar lower, testing “lower prior highs” that had preceded the FOMC news. But for probing any lower intraday, Monday should resume the rally to avoid retesting its lows.
Dec Contract US; (NYSEARCA:TLT)
Friday morning’s test of 131-02 was resolved up to attack 132-00. A second consecutive higher close on Monday would launch a new rally leg. But closing back under 131-02 would still signal a new downleg underway.
Oct Contract CL; (NYSEARCA:USO)
The reaction down from retesting 108.75 fell back under 105.00 Friday, which is too deep for a rally leg that should have been ready to extend higher This doesn’t necessarily turn the pattern bearish, but a close back above 106.75 is the minimum requirement to become bullish.
Oct Contract NG; (NYSEARCA:UNG), (NYSEARCA:UNL)
Friday’s fresh low down to 3.65 did not extend down, but was not recovered back above 3.71. The pattern cannot tolerate much delay past Monday’s open to launch a new 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.