Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Daily Commodity Spot: After Steep Overnight Moves, Currencies Retrace Back to Prior Close


A breakdown of the day's seven most active commodity futures.

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.

Today's Highlight: Currencies hit their precise targets as the product of steep overnight moves. Their reactions retraced entirely back to the prior session's close, but no further. Volatility is alive and well.

1. Dollar Basket
March Contract DX, ETF: (UUP, UDN)
After Wednesday's surge to the 80.85 target, Thursday's open immediately fulfilled the next higher 81.25 target, then reversed back down to 80.85. Session lows stopped short of probing Wednesday's last relative lows, preventing sellers from gaining traction and keeping alive the potential to retest 81.25 intraday.

2. Eurodollar
March Contract EC, ETF: (FXE)
Sharply lower lows overnight bottomed upon testing the 1.2870 target. Its reaction up peaked upon testing the 1.2975 bounce limit. Even if that was the low, the immediate reaction up has left outstanding a gap back to the 1.2895 open that should be retested. Back under 1.2925 would signal the low's retest underway.

3. Gold
Febuary Contract GC, ETF: (GLD)
The plunge extended overnight to attack its 1620.00 target within $4. Bounces had potential up to 1547.50, which was being tested Thursday afternoon. Dips have room down to 1536.00 before gaining traction to become a more substantial decline. But no buy signal could begin forming from under 1555.00. Meanwhile, there is potential for one more downleg targeting 1595.50-1506.00.

4. Silver
March Contract SI, ETF: (SLV)
The drop's 26.30 target was exceeded briefly at Wednesday night's low. Its recovery back to and through 27.40 filled the gap back to Wednesday's close. Retesting the regular session's 26.59 opening gap would help to form a bottom.

5. 30-Year Treasury
March Contract US, ETF: (TLT)
Wednesday's rally to 144-18 was retraced Thursday down to only 143-27. That was short of 143-18 and 143-12 whose breaks would signal a new downleg underway. Wednesday's reaction up probed a fresh high, but 144-18 held as resistance to keep alive the topping potential along with the 143-18 and 143-12 sell signals.

6. Crude Oil
March Contract CL, ETF: (USO)
Thursday's dip used the room for correcting down to 99.00-99.40 - and then some - recovering to close back above both. There is no reason to further delay a rally leg up to 103.00, unless there is not going to be a rally leg up to 103.00.

7. Natural Gas
March Contract NG, ETF: (UNG)
The potential for sealing a bottom failed to trigger its 3.21 signal. The decline extended down sharply to a fresh low. Another pattern formed that also has potential to seal a bottom, but it requires surging back up through 3.09 Friday. Otherwise, the trend trend remains down.

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.
< Previous
  • 1
Next >
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.
Featured Videos