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.

Ending Gold's Corrective Bounce Forcibly Undermines the Fed's Determination

By

The ground gave way after Wednesday's close, as if markets only believed the Fed's intent while it was speaking

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's corrective bounce targets were rejected forcibly overnight. More important is how quickly the ground gave way after Wednesday's close, as if markets only believed the Fed's intent while it was speaking.

Dollar Basket
Dec Contract DX; (NYSEARCA:UUP), (NYSEARCA:UDN)
The fresh low overnight reversed only slightly into positive territory Thursday, which is technically bullish, but not decisive. Rejecting another fresh low would be more credible, or else rallying immediately into the weekend.

Eurodollar
Dec Contract EC; (NYSEARCA:FXE)
The fresh high overnight reversed only slightly into negative territory Thursday, which is technically bearish, but not decisive. Rejecting another fresh high would be more credible, or else sliding immediately into the weekend.

Gold
Feb Contract GC; (NYSEARCA:GLD)
The overnight reaction down from Wednesday's test of the 1720.00-1725.00 bounce target had already broken under the 1713.00-1710.00 sell signal to eventually test 1691.00. A bounce to 1703.50 could be retested before the drop resumes to test 1685.00.

Silver
Mar Contract SI; (NYSEARCA:SLV)
Wednesday's attack on the 34.00 target was rejected more forcibly than Monday's breakout attempt, as Thursday's open gapped down to the 32.65 prior lows and extended lower to 32.30. The outperformance vs. gold is no longer evident.

30-Year Treasury
Mar Contract US; (NYSEARCA:TLT)
Thursday's gap down from 148-00 extended to within nine ticks of the 147-00 target before bouncing back into positive territory at 148-10. Closing in negative territory maintains the drop's momentum, regardless of the intraday bounce.

Crude Oil
Jan Contract CL; (NYSEARCA:USO)
Thursday's gap down ranged around 86.50 throughout the day. Its break would resume the decline next targeting the 82.00 area.

Natural Gas
Jan Contract NG; (NYSEARCA:UNG), (NYSEARCA:UNL)
Thursday's fresh low again makes a buy signal impossible to trigger on Friday.

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.
PrintPRINT

Busy? Subscribe to our free newsletter!

Submit
 

WHAT'S POPULAR IN THE VILLE