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.

Euro Starts the Week by Undoing Last Week's Ending


Take a look at the intraday action in commodities.

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: The weekend brought a different perspective to many markets Monday, or at least extended the perspective from Friday afternoon. There are opportunities to extend, even if only temporarily such as with crude oil. But mostly, one end of a range was tested aggressively without breaking out, such as with gold and and bonds.

Dollar Basket
Friday's consolidation above prior highs had suggested it would at least try extending higher Monday. But the open gapped down and slid through the 81.00-81.05 support whose defense last week launched the new high. A second consecutive lower close signal momentum reversing down. Otherwise, filling the gap back to Friday's 81.33 close could resume the rally.

Dec Contract EC; (NYSEARCA:FXE)
Friday's drop had neutralized the prior two days' ineffectual optimism above 1.2800, while also neutralizing the open gap back to last Tuesday's 1.2700 close. Either the drop would extend mercilessly, or a durable bottom may have formed. Monday's gap up above Friday's range probed last week's highs further above 1.2800. Too much, too soon? A second consecutive higher close would confirm momentum had reversed up, but there is otherwise another downleg about to begin.

Dec Contract GC; (NYSEARCA:GLD)
Not closing under 1714.50 to signal a new downleg underway left the pattern vulnerable to an updraft. That came Monday by gapping up to test 1727.00 resistance. It extended higher, but a second consecutive higher close is needed to signal anything more substantial in-play.

Dec Contract SI; (NYSEARCA:SLV)
Monday's open gapped up to and through last week's highs, which had attacked 33.00. The session extended higher, but needs a second consecutive higher close to confirm the rally has resumed. I'm suspicious otherwise.

30-year Treasury
Dec Contract US; (NYSEARCA:TLT)
Friday's breakout attempt was rejected by Monday's gap down to 151-18 support. An intraday dip to 151-04 was retraced to test 151-18 into the close. Now a close under 151-04 is needed to confirm momentum has reversed down, or else a retest of last week's highs would be likely.

Crude Oil
Jan Contract CL; (NYSEARCA:USO)
A delayed reaction to Middle East hostilities? The week opened in rally mode. Ending last week back at 87.25 (basis Jan, 86.70 basis Dec) prior highs simplified extending higher to test 89.60 (basis Jan, 89.00 basis Dec) resistance. A higher high up to 90.65 is likely so long as pullbacks now hold 88.50.

Natural Gas
Thursday's wild intraday swings were still being absorbed Monday, but trending is now free to resume by closing above 3.80.

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.
Featured Videos