Daily Morning Report

Wednesday, June 1–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly lower overnight. U.S. stock indexes are pointed toward mixed openings when the New York day session begins. Traders and investors are still exhibiting some risk aversion amid the Russia-Ukraine war that is in its third month, as well as problematic global inflation and the prospect of a U.S. economic recession.

The key outside markets today see Nymex crude oil prices higher and trading around $116 a barrel. The U.S. dollar index is higher in early trading. The yield on the 10-year U.S. Treasury note is fetching 2.869%.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the weekly Johnson Redbook and chain store retail reports, the U.S. manufacturing PMI, the ISM report on business manufacturing, construction spending, the global manufacturing PMI, the Federal Reserve’s beige book, and domestic auto industry sales.

–Jim

U.S. STOCK INDEXES

June S&P 500 e-mini futures: Prices are near steady in early U.S. trading. A two-month-old downtrend on the daily bar chart has been negated to suggest a market bottom is in place. Last Friday’s bullish weekly high close is also a clue that a near-term market bottom is in place. The shorter-term moving averages (4-, 9- and 18-day) are bullish early today. The 4-day moving average is above the 9-day and 18-day. The 9-day is above the 18-day moving average. Short-term oscillators (RSI, slow stochastics) are neutral to bullish early today. Today, shorter-term technical resistance comes in at this week’s high of 4,202.25 and then at 4,250.00. Support for active traders is seen at Monday’s low of 4,102.75 and then at last Friday’s low of 4,041.25. Wyckoff’s Intra-day Market Rating: 5.0

June Nasdaq index futures: Prices are slightly lower in early U.S. trading. Last Friday’s bullish weekly high close is one clue that a near-term market bottom is in place. Also, a two-month-old downtrend on the daily bar chart has been negated. Shorter-term moving averages (4- 9-and 18-day) are neutral early today. The 4-day moving average is above the 9-day and 18-day. The 9-day average is below the 18-day. Short-term oscillators (RSI, slow stochastics) are neutral early today. Shorter-term technical resistance is seen at this week’s high of 12,883.00 and then at 13,000.00. On the downside, shorter-term support is seen at this week’s low of 12,480.00 and then at 12,350.00. Wyckoff’s Intra-Day Market Rating: 4.5.

U.S. TREASURY BONDS AND NOTES FUTURES

June U.S. T-Bonds: Prices are near steady in early U.S. trading. Bears are in overall near-term technical control. Shorter-term moving averages (4- 9- 18-day) are neutral early today. The 4-day moving average is below the 9-day. The 9-day is above the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral to bearish early today. Shorter-term technical resistance is seen at 141 even and then at this week’s high of 142 1/32. Shorter-term support lies at this week’s low of 139 22/32 and then at 139 even. Wyckoff’s Intra-Day Market Rating: 5.0

June U.S. T-Notes: Prices are lower in early U.S. trading. Bears are in overall near-term technical control. Shorter-term moving averages (4- 9- 18-day) are neutral early today. The 4-day moving average is even with the 9-day. The 9-day is above the 18-day moving average. Oscillators (RSI, slow stochastics) are bearish early today. Shorter-term resistance lies at 120.00.0 and then at 120.10.0. Shorter-term technical support lies at the overnight low of 119.16.5 and then at 119.10.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0

EURO CURRENCY

The June Euro currency futures are weaker in early U.S. trading. Bears have the overall near-term technical advantage but the bulls still have some momentum to suggest a market bottom is in place. The shorter-term moving averages for the Euro are bullish early today, as the 4-day is above the 9-day and 18-day. The 9-day is above the 18-day moving average. Short-term oscillators for the Euro are neutral to bearish today. The Euro currency finds shorter-term technical resistance at this week’s high of 1.0793 and then at 1.0850. Shorter-term support is seen at this week’s low of 1.0685 and then at 1.0650. Wyckoff’s Intra Day Market Rating: 4.5

NYMEX CRUDE OIL

Nymex crude oil prices are higher in early U.S. trading. The shorter-term moving averages are bullish early today as the 4-day is above the 9-day. The 9-day is above the 18-day moving average. Short-term oscillators (RSI and slow stochastics) are neutral early today. Look for buy stops to reside just above technical resistance at $117.50 and then at $119.00. Look for sell stops just below technical support at this week’s low of $114.15 and then at $112.50. Wyckoff’s Intra-Day Market Rating: 6.0

GRAINS

U.S. grain futures prices were mixed but mostly higher in early U.S. pre-market trading. Grain market bulls still have the overall near-term chart advantage but are fading. Bearish weather patterns in the U.S. Midwest and Plains (rain) are pressuring prices. Reports of Russia possibly allowing Ukraine to export some of its grain are also bearish. It could well be that the grains will languish for the next month, awaiting a possible summertime weather market that can occur right after the Fourth of July holiday.

IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any traders and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.

Here is what the Commodity Futures Trading Commission

(CFTC) has said about futures trading (and I agree 100%):

1. Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.

Jim Wyckoff

Tuesday, May 31–Jim Wyckoff’s Morning Markets Report

Global stock markets were mixed overnight. U.S. stock indexes are pointed toward lower openings when the New York day session begins. The feature in the marketplace to start the U.S. trading week is sharply higher crude oil prices that are trading above $118 a barrel in Nymex futures, on news the European Union has agreed to ban the import of most Russian oil by the end of this year.

China got some upbeat economic news early this week as its official purchasing managers index for May rose to 49.6 from 47.4 in April. Still, a reading below 50.0 suggests contraction in the sectors. Also, reports say China’s Covid lockdowns are starting to be eased in some major cities.

Meantime, the Eurozone saw some more bad inflation numbers Tuesday, as its May consumer price index came in at up 8.1%, year-on-year, compared to a reading of up 7.4% in April.

In other news, U.S. President Joe Biden has summoned Fed Chair Jerome Powell to the White House for a meeting Tuesday to discuss problematic price inflation that is gripping the U.S. at present.

The other key outside markets today see the U.S. dollar index is solidly up in early trading. The yield on the 10-year U.S. Treasury note is fetching 2.802%.

U.S. economic data due for release Tuesday includes the U.S. quarterly house price index, the monthly house price index, the S&P Core-Logic home price indexes, the ISM Chicago business survey, the consumer confidence index and the Texas manufacturing outlook survey.

–Jim

U.S. STOCK INDEXES

June S&P 500 e-mini futures: Prices are slightly lower in early U.S. trading after hitting a three-week high overnight. A two-month-old downtrend on the daily bar chart has been negated to suggest a market bottom is in place. Last Friday’s bullish weekly high close is also a clue that a near-term market bottom is in place. The shorter-term moving averages (4-, 9- and 18-day) are neutral early today. The 4-day moving average is above the 9-day and 18-day. The 9-day is below the 18-day moving average. Short-term oscillators (RSI, slow stochastics) are neutral early today. Today, shorter-term technical resistance comes in at the overnight high of 4,202.25 and then at 4,250.00. Support for active traders is seen at 4,100.00 and then at last Friday’s low of 4,041.25. Wyckoff’s Intra-day Market Rating: 4.5

June Nasdaq index futures: Prices are slightly higher in early U.S. trading and hit a three-week high overnight. Last Friday’s bullish weekly high close is one clue that a near-term market bottom is in place. Also, a two-month-old downtrend on the daily bar chart has been negated. Shorter-term moving averages (4- 9-and 18-day) are neutral early today. The 4-day moving average is above the 9-day and 18-day. The 9-day average is below the 18-day. Short-term oscillators (RSI, slow stochastics) are neutral early today. Shorter-term technical resistance is seen at the overnight high of 12,883.00 and then at 13,000.00. On the downside, shorter-term support is seen at 12,500.00 and then at 12,350.00. Wyckoff’s Intra-Day Market Rating: 5.5.

U.S. TREASURY BONDS AND NOTES FUTURES

June U.S. T-Bonds: Prices are lower in early U.S. trading. Bears are in overall near-term technical control. Shorter-term moving averages (4- 9- 18-day) are bullish early today. The 4-day moving average is above the 9-day and 18-day. The 9-day is above the 18-day moving average. Oscillators (RSI, slow stochastics) are bearish early today. Shorter-term technical resistance is seen at the overnight high of 142 1/32 and then at the May high of 142 22/32. Shorter-term support lies at the overnight low of 140 8/32 and then at 140 even. Wyckoff’s Intra-Day Market Rating: 4.0

June U.S. T-Notes: Prices are lower in early U.S. trading. Bears are still in overall near-term technical control. Shorter-term moving averages (4- 9- 18-day) are bullish early today. The 4-day moving average is above the 9-day. The 9-day is above the 18-day moving average. Oscillators (RSI, slow stochastics) are bearish early today. Shorter-term resistance lies at the overnight high of 120.18.5 and then at the May high of 120.31.0. Shorter-term technical support lies at the overnight low of 119.22.0 and then at 119.10.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0

EURO CURRENCY

The June Euro currency futures are lower in early U.S. trading after hitting a five-week high overnight. Bears still have the overall near-term technical advantage but the bulls still have some momentum to suggest a market bottom is in place. The shorter-term moving averages for the Euro are bullish early today, as the 4-day is above the 9-day and 18-day. The 9-day is above the 18-day moving average. Short-term oscillators for the Euro are neutral to bearish today. The Euro currency finds shorter-term technical resistance at the overnight high of 1.0793 and then at 1.0850. Shorter-term support is seen at 1.0650 and then at 1.0600. Wyckoff’s Intra Day Market Rating: 4.0

NYMEX CRUDE OIL

Nymex crude oil prices are sharply higher in early U.S. trading and hit a three-month high overnight. The shorter-term moving averages are bullish early today as the 4-day is above the 9-day. The 9-day is above the 18-day moving average. Short-term oscillators (RSI and slow stochastics) are bullish early today. Look for buy stops to reside just above technical resistance at the overnight high of $119.43 and then at $120.00. Look for sell stops just below technical support at $117.00 and then at the overnight low of $114.86. Wyckoff’s Intra-Day Market Rating: 7.0

GRAINS

U.S. grain futures prices were mixed in early U.S. pre-market trading. Grain market bulls have the overall near-term chart advantage. However, bearish weather patterns in the U.S. Midwest and Plains (rain) are keeping the bulls timid. It could well be that the grains will languish for the next month, awaiting a possible summertime weather market that can occur right after the Fourth of July holiday. On tap today is the weekly USDA export inspections report.

IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any traders and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.

Here is what the Commodity Futures Trading Commission

(CFTC) has said about futures trading (and I agree 100%):

1. Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.

Jim Wyckoff

Friday, May 27–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly firmer overnight. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins, following solid gains posted Thursday. Bullish weekly high closes in the U.S. stock indexes today would be one technical clue that near-term market bottoms are in place. Today will be an extra-important trading day for the stock indexes.

The data point of the day is the April personal income and outlays report, including the closely watched core personal consumption expenditures (PCE) component, which measures inflation. The PCE is seen coming in at up 4.9%, year-on-year, compared to the March reading of 5.2%.

China’s President Xi Jinping’s strict zero covid and other socialist policies risk severely damaging China’s economy. That apparently prompted Premier Li Keqiang’s speech to the nation this week. The premier warned China’s economy is at a critical point and called on officials to work hard for second-quarter economic growth to reduce unemployment. China watchers note it is unprecedented for a premier to challenge the policies of the president. Over 200 million Chinese citizens have been living under lockdown restrictions, which is causing increasing unrest in the world’s second-largest economy.

The key outside markets today see Nymex crude oil futures prices weaker and trading around $113.50 a barrel. Meantime, the U.S. dollar index is slightly up in early trading. The yield on the 10-year U.S. Treasury note is fetching 2.75%.

U.S. economic data due for release Friday includes personal income and outlays, the University of Michigan consumer sentiment survey and advance economic indicators.

–Jim

U.S. STOCK INDEXES

June S&P 500 e-mini futures: Prices are slightly higher in early U.S. trading, following good gains on Thursday. Prices are still in a two-month-old downtrend on the daily bar chart, but just barely.

A bullish weekly high close today would be one clue that a near-term market bottom is in place. Bears still have the firm overall near-term technical advantage. The shorter-term moving averages (4-, 9- and 18-day) are neutral early today. The 4-day moving average is above the 9-day. The 9-day is below the 18-day moving average. Short-term oscillators (RSI, slow stochastics) are bullish early today. Today, shorter-term technical resistance comes in at 4,050.00 and then at 4,100.00. Support for active traders is seen at 4,000.00 and then at Thursday’s low of 3,960.50. Wyckoff’s Intra-day Market Rating: 6.0

June Nasdaq index futures: Prices are slightly higher in early U.S. trading, following good gains Thursday. A bullish weekly high close today would be one clue that a near-term market bottom is in place. Prices are still in a two-month-old downtrend on the daily bar chart but now just barely. Bears still have the firm overall technical advantage. Shorter-term moving averages (4- 9-and 18-day) are neutral early today. The 4-day moving average is above the 9-day. The 9-day average is below the 18-day. Short-term oscillators (RSI, slow stochastics) are bullish early today. Shorter-term technical resistance is seen at 12,400.00 and then at 12,594.00. On the downside, shorter-term support is seen at 12,200.00 and then at 12,000.00. Wyckoff’s Intra-Day Market Rating: 6.0.

U.S. TREASURY BONDS AND NOTES FUTURES

June U.S. T-Bonds: Prices are higher in early U.S. trading. Bears are still in overall near-term technical control but the bulls have momentum as a fledgling price uptrend is in place. Shorter-term moving averages (4- 9- 18-day) are bullish early today. The 4-day moving average is above the 9-day and 18-day. The 9-day is above the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral to bullish early today. Shorter-term technical resistance is seen at this week’s high of 142 22/32 and then at 143 even. Shorter-term support lies at the overnight low of 141 17/32 and then at 141 even. Wyckoff’s Intra-Day Market Rating: 6.0

June U.S. T-Notes: Prices are higher in early U.S. trading. Bears are still in overall near-term technical control but the bulls have momentum as a fledgling price uptrend is in place. Shorter-term moving averages (4- 9- 18-day) are bullish early today. The 4-day moving average is above the 9-day. The 9-day is above the 18-day moving average. Oscillators (RSI, slow stochastics) are bullish early today. Shorter-term resistance lies at this week’s high of 120.31.0 and then at 121.08.0. Shorter-term technical support lies at the overnight low of 120.16.0 and then at 120.10.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 6.0

EURO CURRENCY

The June Euro currency futures are weaker in early U.S. trading after hitting a four-week high overnight. Bears still have the overall near-term technical advantage but the bulls have some momentum to suggest a market bottom is in place. The shorter-term moving averages for the Euro are bullish early today, as the 4-day is above the 9-day and 18-day. The 9-day is above the 18-day moving average. Short-term oscillators for the Euro are neutral today. The Euro currency finds shorter-term technical resistance at the overnight high of 1.0772 and then at 1.0800. Shorter-term support is seen at 1.0650 and then at 1.0600. Wyckoff’s Intra Day Market Rating: 4.5

NYMEX CRUDE OIL

Nymex crude oil prices are slightly lower in early U.S. trading after hitting a 2.5-month high overnight. The shorter-term moving averages are bullish early today as the 4-day is above the 9-day. The 9-day is above the 18-day moving average. Short-term oscillators (RSI and slow stochastics) are neutral early today. Look for buy stops to reside just above technical resistance at the overnight high of $114.99 and then at the March high of $116.33. Look for sell stops just below technical support at $112.00 and then at $110.00. Wyckoff’s Intra-Day Market Rating: 5.0

GRAINS

U.S. grain futures prices were mixed to weaker in early U.S. pre-market trading. Grain market bulls have the overall near-term chart advantage but are fading amid the generally keener risk aversion in the marketplace that has sparked heightened U.S. recession fears. Bearish weather patterns in the U.S. Midwest and Plains (rain) are also keeping the bulls at bay. It could well be that the grains will languish for the next month, awaiting a possible summertime weather market that can occur right after the Fourth of July holiday.

IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any traders and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.

Here is what the Commodity Futures Trading Commission

(CFTC) has said about futures trading (and I agree 100%):

1. Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.

Jim Wyckoff

Thursday, May 26–Jim Wyckoff’s Morning Markets Report

Global stock markets were mixed overnight. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins. The U.S. stock indexes have been wobbly this week, amid geopolitical and inflation concerns.

Reports overnight said Chinese Premier Li Keqiang gave a dour warning about the world’s second-largest economy as it struggles from Covid-19 outbreaks and lockdowns. The premier said the situation is worse than 2020 when the pandemic first emerged. He urged more efforts to reduce a soaring unemployment rate. China’s supply-chain bottlenecks and the Russia-Ukraine war have driven up the prices of goods and services worldwide.

Broker SP Angel reports in an email dispatch today that inflation is causing consumers to slow their consumption of non-essential items so they can pay for fuel, energy and food. “Consumers are also increasingly wary of the risk of unemployment and are rebuilding cash and paying down debt. Companies are also postponing or even cancelling capital expansion plans as increasing input prices and variable logistics create uncertainty as the era of cheap money is coming to an end.  …Netflix seems to be an early indicator of cancelled subscriptions in response to financial stress and a dramatic fall in consumer sentiment.”

The key outside markets today see Nymex crude oil futures prices higher and trading around $111.25 a barrel. Meantime, the U.S. dollar index is weaker in early trading. The yield on the 10-year U.S. Treasury note is fetching 2.724%.

U.S. economic data due for release Thursday includes the weekly jobless claims report, the second estimate of first-quarter gross domestic product, pending home sales and the Kansas City Fed manufacturing survey.

–Jim

U.S. STOCK INDEXES

June S&P 500 e-mini futures: Prices are slightly higher in early U.S. trading. Prices are in a two-month-old downtrend on the daily bar chart and bears have the solid near-term technical advantage. The shorter-term moving averages (4-, 9- and 18-day) are neutral early today. The 4-day moving average is even with the 9-day. The 9-day is below the 18-day moving average. Short-term oscillators (RSI, slow stochastics) are bullish early today. Today, shorter-term technical resistance comes in at 4,000.00 and then at 4,050.00. Support for active traders is seen at this week’s low of 3,872.00 and then at the May low of 3,807.50. Wyckoff’s Intra-day Market Rating: 5.5

June Nasdaq index futures: Prices are slightly lower in early U.S. trading. Prices are in a two-month-old downtrend on the daily bar chart and bears have the solid technical advantage. Shorter-term moving averages (4- 9-and 18-day) are bearish early today. The 4-day moving average is below the 9-day. The 9-day average is below the 18-day. Short-term oscillators (RSI, slow stochastics) are neutral early today. Shorter-term technical resistance is seen this week’s high of 12,075.50 and then at 12,250.00. On the downside, shorter-term support is seen at Thursday’s low of 11,672.00 and then at the May low of 11,491.25. Wyckoff’s Intra-Day Market Rating: 4.5.

U.S. TREASURY BONDS AND NOTES FUTURES

June U.S. T-Bonds: Prices are firmer in early U.S. trading. Bears are still in overall near-term technical control but the bulls have some momentum as a price downtrend has been negated and a fledgling price uptrend is in place. Shorter-term moving averages (4- 9- 18-day) are bullish early today. The 4-day moving average is above the 9-day and 18-day. The 9-day is above the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral to bullish early today. Shorter-term technical resistance is seen at this week’s high of 142 22/32 and then at 143 even. Shorter-term support lies at the overnight low of 141 10/32 and then at 141 even. Wyckoff’s Intra-Day Market Rating: 5.5

June U.S. T-Notes: Prices are higher and hit a six-week high in early U.S. trading. Bears are still in overall near-term technical control but the bulls have momentum as a price downtrend has been negated and a fledgling price uptrend is in place. Shorter-term moving averages (4- 9- 18-day) are bullish early today. The 4-day moving average is above the 9-day. The 9-day is above the 18-day moving average. Oscillators (RSI, slow stochastics) are bullish early today. Shorter-term resistance lies at 121.00.0 and then at 121.10.0. Shorter-term technical support lies at the overnight low of 120.12.0 and then at 120.00.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 6.0

EURO CURRENCY

The June Euro currency futures are firmer in early U.S. trading. Bears have the overall near-term technical advantage but the bulls have some momentum to suggest a market bottom is in place. The shorter-term moving averages for the Euro are bullish early today, as the 4-day is above the 9-day and 18-day. The 9-day is above the 18-day moving average. Short-term oscillators for the Euro are bullish today. The Euro currency finds shorter-term technical resistance at this week’s high of 1.0757 and then at 1.0800. Shorter-term support is seen at 1.0650 and then at 1.0600. Wyckoff’s Intra Day Market Rating: 6.0

NYMEX CRUDE OIL

Nymex crude oil prices are higher in early U.S. trading. The shorter-term moving averages are bullish early today as the 4-day is above the 9-day. The 9-day is above the 18-day moving average. Short-term oscillators (RSI and slow stochastics) are neutral to bullish early today. Look for buy stops to reside just above technical resistance at this week’s high of $111.96 and then at the May high of $113.20. Look for sell stops just below technical support at this week’s low of $108.61 and then at $107.00. Wyckoff’s Intra-Day Market Rating: 6.0

GRAINS

U.S. grain futures prices were mixed to lower in early U.S. pre-market trading. Grain market bulls have the overall near-term chart advantage but are fading amid the keener risk aversion in the marketplace that has sparked heightened U.S. recession fears. More bearish weather patterns in the U.S. Midwest are also keeping the bulls squelched. On tap today is the weekly USDA export sales report.

IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any traders and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.

Here is what the Commodity Futures Trading Commission

(CFTC) has said about futures trading (and I agree 100%):

1. Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.

Jim Wyckoff