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.

Long Bond's Spike Up May Be Short-Lived

By

The optimistic reaction forgot to first form an accumulative bottom.

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: The long bond had fulfilled its minimum downside objective Thursday. That enabled a bounce in reaction to Friday's Employment Situation Report. But this is probably not a durable bounce, which is why so much of the reaction was returned before the weekend. Meanwhile crude oil is retesting the rally's target and deciding whether to extend or to collapse.

Dollar Basket
Sep Contract DX; (NYSEARCA:UUP), (NYSEARCA:UDN)
Reacting down to Friday's Employment Situation Report tested Thursday's 82.10 low, which must hold as support to maintain the rally's momentum.

Eurodollar
Sep Contract EC; (NYSEARCA:FXE)
Friday's overnight retest of Thursday's 1.3110 low reacted up on the Employment Situation Report. But it is only a corrective bounce if 1.3205 is not also recovered.

Gold
Dec Contract GC; (NYSEARCA:GLD)
Lower lows overnight were blindsided by Friday's Employment Situation Report. The reaction triggered a gap up above 1681.00. Its recovery through Friday's close would have signaled momentum reversing up. Gapping up above it Friday is a proxy for at least having recovered 1677.00 to signal the decline is done, with upside objectives at 1410.00 and higher now in play.

Silver
Dec Contract SI; (NYSEARCA:SLV)
Flat-to-lower ranging overnight responded well to the Employment Situation Report, surging through the 23.55-23.75 buy signal and gapping up Friday above it. The island's gap back up to 24.40 and high is now in play.

30-year Treasury
Dec Contract US; (NYSEARCA:TLT)
Fresh lows overnight down to 128-12 retested the three-week old overnight low before the Employment Situation report triggered a spike up to 130-01. Having greeted the report from weakness, the reaction up is likely just from being being oversold. In fact, the spike was retraced to its 129-04 pullback limit. Closing any lower would signal the decline had resumed, next targeting 127-04.

Crude Oil
Oct Contract CL; (NYSEARCA:USO)
Thursday's close above 180.75 extended higher Friday to fulfill the minimum 110.65 target. Fresh highs above 112.25 are possible as long as 109.75 were to hold as support.

Natural Gas
Oct Contract NG; (NYSEARCA:UNG), (NYSEARCA:UNL)
Friday extended Thursday's dip back under 3.57, but without gaining momentum. Any initial strength Monday would again be likely to extend higher intraday.

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
 
Featured Videos

WHAT'S POPULAR IN THE VILLE