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.

Gold Fulfilled Bounce Targets Overnight

By

Don't forget the Humphrey-Hawkins rule: Reactions on day one are often reversed on day two.

PrintPRINT
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: Gold fulfilled my bounce targets overnight. Tuesday's reaction up on Bernanke's testimony may prove to be only noise. Don't forget the Humphrey-Hawkins rule: Reactions on day one are often reversed on day two.

Dollar Basket
Mar Contract DX; (NYSEARCA:UUP), (NYSEARCA:UDN)
Monday's attack on 82.05 was duplicated Tuesday, and still held. A pullback to test 81.40 is likely.

Eurodollar
Mar Contract EC; (NYSEARCA:FXE)
The overnight low touched the 1.3020 target and bounced. Filling the gap back to Monday's close resolved down under the morning's lows, but held above the overnight lows. While there may be room for an interim bounce to 1.3140, the drop is likely to extend to 1.2955 and then potentially much lower.

Gold
Apr Contract GC; (NYSEARCA:GLD)
Monday's post-close test of the 1596.50-1601.00 target's lower-end was followed overnight by a test of its upper-end. Reacting down to 1584.00 support proved quite vulnerable to Bernanke's testimony, triggering a surge to fresh highs testing 1620.00. Having tested 1618.00 intraday, not closing above it suggests that Tuesday's buying was an isolated incident, and gained no traction for its efforts. But being a fresh high, no sell signal is indicated. The pattern can back-and-fill to test 1596.50-1601.00 before signaling that momentum is reversing down.

Silver
Mar Contract SI; (NYSEARCA:SLV)
Tuesday morning's initial reaction down was recovered back above Monday's high to attack 29.50, still targeting 29.85.

30-year Treasury
Mar Contract US; (NYSEARCA:TLT)
Monday's post-close test of the 145-03/145-06 target area extended higher overnight to test its next resistance at 146-06. That apparently discounted all of Tuesday morning's influence, as it held its retest intraday. Gapping down back into or under 145-03/145-06 would suggest that Tuesday was an isolated incident, and that momentum was reversing down fast.

Crude Oil
Apr Contract CL; (NYSEARCA:USO)
Trading remained subdued and ranging narrowly around 93.00. The utter lack of volatility, let alone lack of trending, while gold and bonds soar on Bernanke's reaffirmations, suggests that QE is having no economic impact.

Natural Gas
Mar Contract NG; (NYSEARCA:UNG), (NYSEARCA:UNL)
Monday's gap up extended higher overnight to test 3.45, retracing back down to 3.40. A pullback to 3.36 would be optimal before the rally were to resume.

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.
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.
PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE