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.

Be Careful With 'Ineffectual Optimism' in Gold


Gapping up, probing fresh highs, and avoiding negative territory... yet gold is barely closing higher?

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 fresh high Tuesday quickly peaked, but only to range sideways through the day. Is it a resumption of last week's string of gaps up, or a last gasp before reversing back down?

Dollar Basket
The 82.60 low in reaction to Ben Bernanke's speech was all but retested Tuesday. Back above 83.00 and 83.33 would signal momentum reversing back up.

Jun Contract EC; (NYSEARCA:FXE)
Last week's temporary surge on Bernanke's speech to 1.3212 was never attacked intraday, not until Tuesday's gap up above 1.3100 extended to test 1.3165. Back under 1.3180 after testing 1.3212 - if 1.3212 were retested - would signal momentum reversing back down.

Aug Contract GC; (NYSEARCA:GLD)
Tuesday's probe of fresh highs above 1288.00 and 1293.00 reacted back down twice to attack 1285.00 whose break would signal that buyers were absorbed. The session's "ineffectual optimism" essentially requires that break to develop Wednesday, or else a bigger rally leg would be underway.

Sep Contract SI; (NYSEARCA:SLV)
Tuesday's test of 20.00 held as resistance. Back under 19.55 would be likely to extend down at an accelerated pace, potentially targeting fresh lows.

30-year Treasury
Sep Contract US; (NYSEARCA:TLT)
Tuesday's retest of 135-00 could extend to 135-16 before suggesting that a detour was underway, with potential up to 137-00 before finally filling the gap back down to last Wednesday's 132-24 close.

Crude Oil
Aug Contract CL; (NYSEARCA:USO)
Monday's recovery back up to 106.35 resistance extended higher momentarily Tuesday before reversing back under 106.35. A deeper corrective dip to 103.30 would still be preferable to launch a more reliable rally leg targeting 110.65-110.75.

Natural Gas
The violent rejection of Monday's dip into 3.55-3.60 support tried extending higher Tuesday, but still failed to recover the 3.73 buy signal.

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