Daily Morning Report

Monday, March 21–Jim Wyckoff’s Morning Markets Report

Global stocks markets were mixed overnight. The U.S. stock indexes are pointed toward weaker openings when the New York day session begins. The Russia-Ukraine war continues on the front burner of the marketplace. Russia over the weekend reportedly used a hyper-sonic missile to attack a Ukrainian city, with some military analysts saying the war is entering a new chapter of deadlier consequences for Ukrainian citizens.

President Biden Thursday meets with NATO and EU leaders to discuss Russia’s invasion of Ukraine. The two-day summit will be held at NATO headquarters in Brussels. Biden will also join a European Council meeting. During the summit, Biden will “discuss ongoing deterrence and defense efforts” and reaffirm the U.S. commitment to NATO allies, said the Biden administration.

In other news, traders continue to watch with interest the nickel market on the London Metals Exchange. On Monday nickel dropped its daily limit of 15%, to $31,380 a ton, for the fourth limit-down session in a row, after trading above $100,000 just a couple weeks ago. A big Chinese metal trader, nicknamed “Big Shot,” got caught in a big short-squeeze trade, driving prices sharply up.

The key outside markets see Nymex crude oil prices solidly higher and trading around $109.00 a barrel. The U.S. dollar index is slightly firmer today. The benchmark U.S. 10-year Treasury note is presently yielding 2.187%. 

U.S. economic data due for release Monday is light and includes the Chicago Fed national activity index.

–Jim

U.S. STOCK INDEXES

June S&P 500 e-mini futures: Prices are slightly lower in early U.S. trading. A price downtrend has been negated on the daily chart to suggest a 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 early today. Today, shorter-term technical resistance comes in at last week’s high of 4,465.75 and then at 4,500.00. Support for active traders is seen at 4,400.00 and then at last Friday’s low of 4,364.50. Wyckoff’s Intra-day Market Rating: 4.5

June Nasdaq index futures: Prices are a bit weaker in early U.S. trading. A price downtrend on the daily chart has s been negated to suggest a market bottom is in place. 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 14,500.00 and then at 14,700.00. On the downside, shorter-term support is seen at 14,150.00 and then at 14,000.00. Wyckoff’s Intra-Day Market Rating: 4.5.

U.S. TREASURY BONDS AND NOTES FUTURES

June U.S. T-Bonds: Prices are lower in early U.S. trading. Bears are in command. Shorter-term moving averages (4- 9- 18-day) are bearish early today. The 4-day moving average is below the 9-day and 18-day. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are bearish early today. Shorter-term technical resistance is seen at Friday’s high of 152 27/32 and then at 153 even. Shorter-term support lies at Friday’s low of 151 14/32 and then at the contract low of 150 27/32. Wyckoff’s Intra-Day Market Rating: 4.0

June U.S. T-Notes: Prices are lower in early U.S. trading. Shorter-term moving averages (4- 9- 18-day) are bearish early today. The 4-day moving average is below the 9-day and 18-day. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral to bearish early today. Shorter-term resistance lies at Friday’s high of 124.25.5 and then at 125.00.0. Shorter-term technical support lies at the overnight low of 124.06.0 and then at 124.00.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0

EURO CURRENCY

The June Euro currency futures are slightly lower in early U.S. trading. Bears have the overall near-term technical advantage. However, recent price gains suggest a near-term market bottom is in place. The shorter-term moving averages for the Euro are neutral early today, as the 4-day is above the 9-day. The 9-day is below the 18-day moving average. Short-term oscillators for the Euro are neutral to bullish early today. The Euro currency finds shorter-term technical resistance at last week’s high of 1.1172 and then at 1.1200. Shorter-term support is seen at 1.1000 and then at last week’s low of 1.0936. Wyckoff’s Intra Day Market Rating: 4.5

NYMEX CRUDE OIL

Nymex crude oil prices are solidly higher in early U.S. trading. The shorter-term moving averages are bearish early today as the 4-day is below the 9-day and 18-day. The 9-day is below the 18-day moving average. Short-term oscillators (RSI and slow stochastics) are neutral to bullish today. Look for buy stops to reside just above technical resistance at $110.00 and then at $102.50. Look for sell stops just below technical support at $107.00 and then at $105.00. Wyckoff’s Intra-Day Market Rating: 7.0

GRAINS

U.S. grain futures prices were higher in early U.S. pre-market trading, boosted by strong gains in crude oil prices. Corn and soybean market bulls remain in firm overall technical control and wheat futures are bearish. Geopolitics remains the main driver of the grains and that suggests volatility continuing to be elevated for at least the near term. On tap today is the weekly USDA export inspections report. The all-important USDA planting intentions report on March 31 is coming into view for grain traders.

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, March 18–Jim Wyckoff’s Morning Markets Report

Global stocks markets were mixed overnight, with European shares mostly down and Asian shares mostly up. The U.S. stock indexes are pointed toward weaker openings when the New York day session begins. The Russia-Ukraine war that is into its third week, and its significant impact on sectors of world trade, continues to sap marketplace risk appetite. President Joe Biden and Chinese leader Xi Jinping are set to have a telephone conversation today, with its outcome potentially having pivotal implications on the war. The U.S. hopes to persuade China to distance itself from Russia to avoid U.S. sanctions. However, many think China may come to the aid of Russia in its war with Ukraine. On a more dour note, U.S. government defense officials believe the Russian army’s poor performance in Ukraine has backed Russian dictator Putin into a corner, which makes odds higher that Putin could resort to nuclear weapons amid his weakened conventional military. Heading into the weekend, look for risk aversion in the marketplace to become more elevated as Friday’s trading session progresses.

In a surprising development, Russia apparently has made a payment on U.S. dollar-denominated sovereign bonds, to avoid being in default. That rallied the Russian ruble just a bit. The Russian stock market remains closed.

The key outside markets see Nymex crude oil prices higher and trading around $104.00 a barrel. The U.S. dollar index is firmer today. The benchmark U.S. 10-year Treasury note is presently yielding 2.15%. 

U.S. economic data due for release Friday includes existing home sales and leading economic indicators.

–Jim

U.S. STOCK INDEXES

June S&P 500 e-mini futures: Prices are lower in early U.S. trading. The bears are in overall near-term technical control, but a price downtrend has stalled out to suggest a 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 this week’s high of 4,406.75 and then at 4,440.00. Support for active traders is seen at Thursday’s low of 4,320.25 and then at 4,300.00. Wyckoff’s Intra-day Market Rating: 4.0

June Nasdaq index futures: Prices are lower in early U.S. trading. Bears are in firm overall technical control but a price downtrend on the daily chart has stalled out. 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 14,132.50 and then at the March high of 14,389.00. On the downside, shorter-term support is seen at Thursday’s low of 13,819.00 and then at 13,500.00. Wyckoff’s Intra-Day Market Rating: 4.0.

U.S. TREASURY BONDS AND NOTES FUTURES

June U.S. T-Bonds: Prices are higher in early U.S. trading, on short covering after hitting a contract low Wednesday. Bears are still in command. Shorter-term moving averages (4- 9- 18-day) are bearish early today. The 4-day moving average is below the 9-day and 18-day. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral to bullish early today. Shorter-term technical resistance is seen at Thursday’s high of 153 9/32 and then at 154 even. Shorter-term support lies at the overnight low of 151 14/32 and then at the contract low of 150 27/32. Wyckoff’s Intra-Day Market Rating: 6.0

June U.S. T-Notes: Prices are higher in early U.S. trading, on short covering after hitting a contract low on Wednesday. Shorter-term moving averages (4- 9- 18-day) are bearish early today. The 4-day moving average is below the 9-day and 18-day. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral to bullish early today. Shorter-term resistance lies at Thursday’s high of 124.28.5 and then at 125.00.0. Shorter-term technical support lies at the overnight low of 124.11.5 and then at 124.00.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 6.0

EURO CURRENCY

The June Euro currency futures are lower in early U.S. trading. Bears have the firm overall near-term technical advantage. The shorter-term moving averages for the Euro are neutral early today, as the 4-day is above the 9-day. The 9-day is below the 18-day moving average. Short-term oscillators for the Euro are neutral early today. The Euro currency finds shorter-term technical resistance at this week’s high of 1.1172 and then at 1.1200. Shorter-term support is seen at 1.1000 and then at this week’s low of 1.0936. Wyckoff’s Intra Day Market Rating: 4.0

NYMEX CRUDE OIL

Nymex crude oil prices are higher in early U.S. trading. The shorter-term moving averages are neutral early today as the 4-day is below the 9-day and 18-day. The 9-day is above the 18-day moving average. Short-term oscillators (RSI and slow stochastics) are neutral today. Look for buy stops to reside just above technical resistance at the overnight high of $108.28 and then at $108.00. Look for sell stops just below technical support at $102.00 and then at $100.00. Wyckoff’s Intra-Day Market Rating: 6.0

GRAINS

U.S. grain futures prices were mixed in early U.S. pre-market trading. Corn and soybean market bulls remain in firm overall technical control and wheat futures are bearish. Geopolitics remains the main driver of the grains and that suggests volatility continuing to be elevated for at least the near term. The all-important USDA planting intentions report on March 31 is coming into view for grain traders.

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, March 17–Jim Wyckoff’s Morning Markets Report

Global stocks markets were mixed overnight. Asian equity markets rallied for a second day after the Chinese government said it would work to keep its stock and financial markets buoyant. The U.S. stock indexes are pointed toward weaker openings when the New York day session begins, following very strong gains Wednesday. Risk aversion has receded just a bit this week, on trader and investor hopes that Russia and Ukraine may be making some progress in their peace talks. However, Russian shelling and killing of civilians in Ukraine continues, as U.S. President Biden labeled Russian President Putin a war criminal. Don’t be surprised to see risk aversion in the marketplace become much keener in the near term, as it presently appears “hope” on the peace talks is trumping “reality.” The gold market is suggesting such, as the safe-haven metal trades sharply higher Thursday.

Traders are still digesting the Federal Reserve’s FOMC meeting that ended Wednesday afternoon with a statement and press conference from Fed Chairman Powell. The Fed, as expected, raised its Fed funds rate by 0.25%–the first rate hike since 2018. The FOMC signaled it may raise rates six more times this year and a few times next year, in an effort to tamp down problematic inflation. After the FOMC statement and Powell’s press conference, the marketplace deemed the Fed as being a bit more hawkish on fighting inflation than expected.

In overnight news, the Euro zone February consumer price index rose by 5.9%, year-on-year, which is a record high for the bloc.

The key outside markets see Nymex crude oil prices solidly higher and trading around $99.50 a barrel. The U.S. dollar index is lower again today. The benchmark U.S. 10-year Treasury note is presently yielding 2.123%. 

U.S. economic data due for release Thursday includes the weekly jobless claims report, the Philadelphia Fed business survey, new residential construction, and industrial production and capacity utilization.

–Jim

U.S. STOCK INDEXES

June S&P 500 e-mini futures: Prices are a bit weaker in early U.S. trading after strong gains posted Wednesday. Prices are still trending lower on the daily bar chart and the bears are in  overall near-term technical control. However, more price gains this week would negate the downtrend to suggest a 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. 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 this week’s high of 4,367.50 and then at 4,410.50. Support for active traders is seen at 4,300.00 and then at Wednesday’s low of 4,239.00. Wyckoff’s Intra-day Market Rating: 4.5

June Nasdaq index futures: Prices are a bit lower in early U.S. trading, after strong gains Wednesday. Bears are still in firm overall technical control amid a price downtrend in place. 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 neutral early today. Shorter-term technical resistance is seen at this week’s high of 14,025.00 and then at 14,250.00. On the downside, shorter-term support is seen at 13,750.00 and then at 13,500.00. Wyckoff’s Intra-Day Market Rating: 4.5.

U.S. TREASURY BONDS AND NOTES FUTURES

June U.S. T-Bonds: Prices are higher in early U.S. trading, on short covering after hitting a contract low Wednesday. Bears are still in command, to suggest more downside. Shorter-term moving averages (4- 9- 18-day) are bearish early today. The 4-day moving average is below the 9-day and 18-day. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral to bullish early today. Shorter-term technical resistance is seen at the overnight high of 153 9/32 and then at 154 even. Shorter-term support lies at the overnight contract low of 151 20/32 and then at the contract low of 150 27/32. Wyckoff’s Intra-Day Market Rating: 6.0

June U.S. T-Notes: Prices are higher in early U.S. trading, on short covering after hitting a contract low on Wednesday. Shorter-term moving averages (4- 9- 18-day) are bearish early today. The 4-day moving average is below the 9-day and 18-day. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral to bullish early today. Shorter-term resistance lies at the overnight high of 124.28.5 and then at 125.00.0. Shorter-term technical support lies at the overnight low of 124.04.0 and then at the contract low of 123.25.5. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 6.0

EURO CURRENCY

The June Euro currency futures are higher in early U.S. trading. Bears still have the firm overall near-term technical advantage. The shorter-term moving averages for the Euro are neutral early today, as the 4-day is above the 9-day. The 9-day is below the 18-day moving average. Short-term oscillators for the Euro are bullish early today. The Euro currency finds shorter-term technical resistance at last week’s high of 1.1159 and then at 1.1200. Shorter-term support is seen at 1.1000 and then at this week’s low of 1.0936. Wyckoff’s Intra Day Market Rating: 6.0

NYMEX CRUDE OIL

Nymex crude oil prices are solidly higher in early U.S. trading. Recent price action still strongly suggests a major market top is in place. The shorter-term moving averages are neutral early today as the 4-day is below the 9-day and 18-day. The 9-day is above the 18-day moving average. Short-term oscillators (RSI and slow stochastics) are neutral today. Look for buy stops to reside just above technical resistance at $102.50 and then at $105.00. Look for sell stops just below technical support at $95.00 and then at this week’s low of $93.53. Wyckoff’s Intra-Day Market Rating: 6.5

GRAINS

U.S. grain futures prices were mostly up in early U.S. pre-market trading. On tap today is the weekly USDA export sales report. Corn and soybean market bulls remain in firm overall technical control, but wheat is bearish. It’s my strong bias that crude oil and wheat futures have put in major market tops, and that makes it likely that corn and soybeans have done the same.

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

Wednesday, March 16–Jim Wyckoff’s Morning Markets Report

Global stocks markets were mostly higher overnight. The U.S. stock indexes are pointed toward solidly higher openings when the New York day session begins. News overnight that both Russia and Ukraine said there are signs of progress on their discussions to stop the war has boosted trader and investor risk appetite at mid-week. Reports said discussions include having Ukraine become a neutral country like Sweden. However, the shooting and shelling continues in Ukraine.

China and Asian markets rallied sharply overnight on comments from Chinese economic officials that the government will implement market-friendly policies and keep the capital markets running smoothly. Officials also said they wanted more transparency and predictability in their policies. The moves come as China has locked down cities due to the Covid virus again spreading rapidly. That has put price pressure on raw commodity futures markets this week, on notions of reduced demand coming from the world’s second-largest economy.

The U.S. data point of the week is the Federal Reserve’s FOMC meeting that began Tuesday morning and ends Wednesday afternoon with a statement and press conference from Fed Chairman Powell. It’s widely believed the Fed will raise its Fed funds rate by 0.25%–the first rate hike since 2018. Powell’s comments on the war and inflation will be closely scrutinized by the marketplace.

The key outside markets see Nymex crude oil prices lower and trading around $96.00 a barrel. Crude prices have backed way off from last week’s 14-year highs to strongly suggest oil prices have put in major tops. The U.S. dollar index is lower again today. The benchmark U.S. 10-year Treasury note is presently yielding 2.165%. U.S. Treasury yields are on the rise amid inflation fears that are high.

Other U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, retail sales, import and export prices, the NAHB housing market index, manufacturing and trade inventories and the weekly DOE liquid energy stocks report.

–Jim

U.S. STOCK INDEXES

June S&P 500 e-mini futures: Prices are solidly higher in early U.S. trading. Prices are still trending lower on the daily bar chart and the bears are in firm overall near-term technical control. 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 last week’s high of 4,326.75 and then at 4,375.00. Support for active traders is seen at the overnight low of 4,239.90 and then at 4,200.00. Wyckoff’s Intra-day Market Rating: 6.5

June Nasdaq index futures: Prices are higher in early U.S. trading, on short covering after hitting an 11-month low Tuesday. Bears are in solid overall technical control amid a price downtrend in place. 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 bullish early today. Shorter-term technical resistance is seen at last week’s high of 13,858.00 and then at 14,000.00. On the downside, shorter-term support is seen at the overnight low of 13,417.25 and then at 13,000.00. Wyckoff’s Intra-Day Market Rating: 6.5.

U.S. TREASURY BONDS AND NOTES FUTURES

June U.S. T-Bonds: Prices are slightly up in early U.S. trading after hitting a contract low overnight. Bears are in command, to suggest more downside. Shorter-term moving averages (4- 9- 18-day) are bearish early today. The 4-day moving average is below the 9-day and 18-day. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are bearish early today. Shorter-term technical resistance is seen at Tuesday’s high of 153 13/32 and then at 154 even. Shorter-term support lies at the overnight contract low of 151 6/32 and then at 151 even. Wyckoff’s Intra-Day Market Rating: 5.5

June U.S. T-Notes: Prices are slightly higher in early U.S. trading but hit a contract low overnight. Shorter-term moving averages (4- 9- 18-day) are bearish early today. The 4-day moving average is below the 9-day and 18-day. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are bearish early today. Shorter-term resistance lies at Tuesday’s high of 125.12.0 and then at 125.20.0. Shorter-term technical support lies at the overnight contract low of 124.10.5 and then at 124.00.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.5

EURO CURRENCY

The June Euro currency futures are higher in early U.S. trading. Bears still have the solid overall near-term technical advantage. The shorter-term moving averages for the Euro are neutral early today, as the 4-day is even with the 9-day. The 9-day is below the 18-day moving average. Short-term oscillators for the Euro are bullish early today. The Euro currency finds shorter-term technical resistance at this week’s high of 1.1056 and then at 1.1100. Shorter-term support is seen at this week’s low of 1.0936 and then at 1.0900. Wyckoff’s Intra Day Market Rating: 6.0

NYMEX CRUDE OIL

Nymex crude oil prices are slightly lower in early U.S. trading. Recent price action strongly suggests a major market top is in place. The shorter-term moving averages are neutral early today as the 4-day is below the 9-day and 18-day. The 9-day is above the 18-day moving average. Short-term oscillators (RSI and slow stochastics) are bearish today. Look for buy stops to reside just above technical resistance at $100.00 and then at Tuesday’s high of $102.58. Look for sell stops just below technical support at this week’s low of $93.53 and then at $92.00. Wyckoff’s Intra-Day Market Rating: 4.0

GRAINS

U.S. grain futures prices were mixed in early U.S. pre-market trading. Corn and soybean market bulls remain in firm technical control, but wheat is bearish. It’s my strong bias that crude oil and wheat futures have put in major market tops, and that makes it likely that corn and soybeans have done the same. Remember that just because markets may have put in tops, that does not mean that their prices cannot remain elevated for some time to come.

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