Daily Morning Report

Tuesday, March 15–Jim Wyckoff’s Morning Markets Report

Global stocks markets were mostly lower overnight. The U.S. stock indexes are pointed toward mixed openings when the New York day session begins. Trader and investor risk appetite remains elevated but there are some glimmers of hope that are pressing oil and gold prices down and bond yields up. Russia-Ukraine talks are continuing despite Russia stepping up its war campaign against Ukrainian citizens. Also, reports said high-level U.S.-China talks on the matter Monday were constructive.

China has locked down more cities due to the Covid virus again spreading rapidly. That has put price pressure on raw commodity futures markets early 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 begins Tuesday morning and ends Wednesday afternoon with a statement. It’s widely believed the Fed will raise its Fed funds rate by 0.25%. The Fed and chairman Jay Powell’s comments on the war and inflation will be closely scrutinized by the marketplace.

Traders will closely examine the latest U.S. inflation report out Tuesday morning—the producer price index for February, which is forecast up 0.9% from January. If realized, that number would be hot.

The key outside markets see Nymex crude oil prices sharply lower and trading around $97.50 a barrel. Crude prices have backed way off from last week’s 14-year highs. That strongly suggests oil prices may have put in at least near-term tops. The U.S. dollar index is lower again today. The benchmark U.S. 10-year Treasury note is presently yielding 2.11%. U.S. Treasury yields are on the rise and hit a 2.5-year high Monday.

U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and chain store sales reports, the Empire State manufacturing survey, the producer price index, and Treasury international capital data.

–Jim

U.S. STOCK INDEXES

June S&P 500 e-mini futures: Prices are slightly 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 bearish early today. The 4-day moving average is below the 9-day. The 9-day is below the 18-day moving average. Short-term oscillators (RSI, slow stochastics) are neutral to bearish early today. Today, shorter-term technical resistance comes in at this week’s high of 4,244.75 and then at 4,300.00. Support for active traders is seen at the overnight low of 4,129.50 and then at the February low of 4,094.25. Wyckoff’s Intra-day Market Rating: 5.5

June Nasdaq index futures: Prices are a bit firmer in early U.S. trading after hitting an 11-month low overnight. 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 neutral to bearish early today. Shorter-term technical resistance is seen at this week’s high of 13,441.00 and then at 13,600.00. On the downside, shorter-term support is seen at the overnight low of 12,942.50 and then at 12,800.00. Wyckoff’s Intra-Day Market Rating: 5.5.

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. Shorter-term moving averages (4- 9- 18-day) are neutral early today. The 4-day moving average is below the 9-day and 18-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 the overnight high of 153 10/32 and then at 154 even. Shorter-term support lies at the overnight contract low of 151 28/32 and then at 151 16/32. Wyckoff’s Intra-Day Market Rating: 5.5

June U.S. T-Notes: Prices are 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 neutral early today. Shorter-term resistance lies at the overnight high of 125.08.5 and then at 125.16.0. Shorter-term technical support lies at the overnight contract low of 124.30.5 and then at 124.24.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.5

EURO CURRENCY

The June Euro currency futures are firmer 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 the overnight 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: 5.5

NYMEX CRUDE OIL

Nymex crude oil prices are sharply lower in early U.S. trading and have dropped well below $100 a barrel. Recent price action strongly suggests at least a near-term market top is in place, if not a major top. The shorter-term moving averages are neutral early today as the 4-day is below the 9-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 the overnight high of $102.58. Look for sell stops just below technical support at $92.50 and then at $90.00. Wyckoff’s Intra-Day Market Rating: 3.0

GRAINS

U.S. grain futures prices were mixed but mostly lower in early U.S. pre-market trading. Corn and soybean market bulls remain in 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

Monday, March 14–Jim Wyckoff’s Morning Markets Report

Global stocks markets were mostly higher overnight. The U.S. stock indexes are pointed toward higher openings when the New York day session begins. There is just a bit of optimism on de-escalating the Russia-Ukraine war, despite the fact it still raging in Ukraine. The U.S. and China are set to hold their first high-level talks since Russia’s invasion of Ukraine. The White House said National Security Adviser Jake Sullivan will meet in Rome Monday with China’s top diplomat, Communist Party Politburo member Yang Jiechi. U.S. officials say Russia has asked China for military aid for its war with Ukraine. That suggests Russian President Putin has faced more setbacks in the war than he anticipated. U.S. officials say they haven’t seen evidence Beijing has tried to circumvent sanctions on Russia. The thinking is that if China and the U.S. show a united front on opposing the war, Russia may de-escalate. However, others doubt Putin will back off and show weakness. Meantime, Russia and Ukraine are still meeting for talks, although there have been no major break-throughs despite notions some progress has been made.

In other news, China has locked down a major city, Shenzhen, which is a technology hub, due to Covid again spreading. Chinese stocks dropped on the news. That has also helped to put some price pressure on raw commodity markets to start the trading week.

The U.S. data point of the week will be the Federal Reserve’s FOMC meeting that begins Tuesday morning and ends Wednesday afternoon with a statement. It’s widely believed the Fed will raise its Fed funds rate by 0.25%.

The key outside markets see Nymex crude oil prices lower and trading around $104.00 a barrel. Crude prices have backed way off from last week’s 14-year highs. That suggests oil prices may have put in at least near-term tops. The U.S. dollar index is lower today. The benchmark U.S. 10-year Treasury note is presently yielding 2.08%. U.S. Treasury yields are on the rise. For perspective, the U.K. 10-year gild yield is presently 1.566% and the German 10-year bund is yielding 0.314%.

There is no major U.S. economic data due for release Monday.

–Jim

U.S. STOCK INDEXES

June S&P 500 e-mini futures: Prices are 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 bearish early today. The 4-day moving average is below 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 4,300.00 and then at last week’s high of 4,326.75. Support for active traders is seen at Friday’s low of 4,189.00 and then at last week’s low of 4,130.25. Wyckoff’s Intra-day Market Rating: 6.0

June Nasdaq index futures: Prices are firmer in early U.S. trading. Bears are still 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 neutral early today. Shorter-term technical resistance is seen at last week’s high of 13,875.50 and then at 14,000.00. On the downside, shorter-term support is seen at last week’s low of 13,106.75 and then at the February low of 13,031.00. Wyckoff’s Intra-Day Market Rating: 6.0.

U.S. TREASURY BONDS AND NOTES FUTURES

June U.S. T-Bonds: Prices are sharply down and hit a three-week low in early U.S. trading. Shorter-term moving averages (4- 9- 18-day) are neutral early today. The 4-day moving average is below 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 154 even and then at 155 even. Shorter-term support lies at the overnight low of 153 7/32 and then at 153 even. Wyckoff’s Intra-Day Market Rating: 4.0

June U.S. T-Notes: Prices are solidly lower and hit a contract low in early U.S. trading. Shorter-term moving averages (4- 9- 18-day) are neutral early today. The 4-day moving average is below 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 resistance lies at 125.20.0 and then at today’s high of 126.04.0. Shorter-term technical support lies at the overnight contract low of 125.05.0 and then at 125.00.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 3.0

EURO CURRENCY

The June Euro currency futures are higher in early U.S. trading. Bears 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 neutral to bullish early today. The Euro currency finds shorter-term technical resistance at the overnight high of 1.1026 and then at Friday’s high of 1.1081. Shorter-term support is seen at the overnight 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 solidly lower in early U.S. trading. Recent price action suggests at least a near-term market top is in place. The shorter-term moving averages are neutral early today as the 4-day is below the 9-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 $105.00 and then at the overnight high of $109.72. Look for sell stops just below technical support at $100.00 and then at $97.50. Wyckoff’s Intra-Day Market Rating: 3.5

GRAINS

U.S. grain futures prices were lower in early U.S. pre-market trading. Corn and soybean market bulls remain in technical control, but wheat has turned bearish. It’s my strong bias that wheat futures have put in a major market top, and that makes it likely that corn and soybeans have done the same. Look for continued higher daily price volatility in the near term. Grain traders, you need to keep an eye on crude oil, which is sharply down today. Crude has also shown signs of topping out. 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, March 11–Jim Wyckoff’s Morning Markets Report

Global stocks markets were mixed but mostly firmer overnight. The U.S. stock indexes are pointed toward solidly higher openings when the New York day session begins. Reports just out are saying Russian President Putin has made comments that the talks with Ukraine are seeing positive shifts. That has lifted trader and investor risk appetite, at least for now. However, many market watchers wonder how Putin can back off from his current aggression against Ukraine and still save face with Russians, who have a history of being very unkind to leaders who perform poorly in wars. Meantime, Russia said it will send thousands of fighters from the Middle East to join its forces in Ukraine. Two cities in western Ukraine were hit by airstrikes overnight. President Biden is lobbying Congress to end normal relations with Russia, which would put Russia in with the likes of North Korea and Iran.

The U.S. Senate overnight passed a one-year, $1.5 trillion federal funding bill, ending the risk of a U.S. government shutdown. The legislation included $13.5 billion in humanitarian and security funds for Ukraine.

The key outside markets see Nymex crude oil prices higher and trading around $108.00 a barrel. Crude prices have backed way off from this week’s 14-year highs. That suggests oil prices may have put in at least near-term tops. The U.S. dollar index is a bit weaker today. The benchmark U.S. 10-year Treasury note is presently yielding 1.98%. U.S. Treasury yields are on the rise this week. It’s been said that bond traders are the smartest traders around. This week’s rising U.S. Treasury yields hint that bond market traders sense peak anxiety from a markets perspective, regarding the Russia-Ukraine war, is now past and that attention is turning more toward rising inflation.

U.S. economic data due for release Friday is light and includes the University of Michigan consumer sentiment survey.

–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 near-term technical control. The 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 is below 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 the overnight high of 4,326.75 and then at 4,375.00. Support for active traders is seen at the overnight low of 4,222.00 and then at this week’s low of 4,130.25. Wyckoff’s Intra-day Market Rating: 6.0

June Nasdaq index futures: Prices are higher in early U.S. trading. Bears are still in solid 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 neutral to bullish early today. Shorter-term technical resistance is seen at 14,000.00 and then at 14,250.00. On the downside, shorter-term support is seen at the overnight low of 13,451.50 and then at this week’s low of 13,106.75. Wyckoff’s Intra-Day Market Rating: 6.0.

U.S. TREASURY BONDS AND NOTES FUTURES

June U.S. T-Bonds: Prices are a bit weaker in early U.S. trading. Bulls have faded badly this week. 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 even with the 18-day moving average. Oscillators (RSI, slow stochastics) are  bearish early today. Shorter-term technical resistance is seen at the overnight high of 155 23/32 and then at 156 even. Shorter-term support lies at this week’s low of 154 13/32 and then at 154 even. Wyckoff’s Intra-Day Market Rating: 4.5

June U.S. T-Notes: Prices are lower in early U.S. trading. Shorter-term moving averages (4- 9- 18-day) are neutral early today. The 4-day moving average is below 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 resistance lies at the overnight high of 126.13.5 and then at 126.26.5. Shorter-term technical support lies at 125.20.0 and then at the February low of 125.14.5. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0

EURO CURRENCY

The June Euro currency futures are firmer in early U.S. trading. Bears have the solid overall near-term technical advantage. The shorter-term moving averages for the Euro 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 for the Euro are bullish early today. The Euro currency finds shorter-term technical resistance at this week’s high of 1.1159 and then at 1.1200. Shorter-term support is seen at 1.1000 and then at 1.0950. Wyckoff’s Intra Day Market Rating: 5.5

NYMEX CRUDE OIL

Nymex crude oil prices are slightly higher in early U.S. trading. Bulls have the overall near-term technical advantage but are exhausted to suggest at least a near-term market top is in place. The shorter-term moving averages are neutral early today as the 4-day is even with the 9-day. The 9-day is above the 18-day moving average. Short-term oscillators (RSI and slow stochastics) are neutral to bearish today. Look for buy stops to reside just above technical resistance at the overnight high of $110.25 and then at Thursday’s high of $114.88. Look for sell stops just below technical support at this week’s low of $103.63 and then at $100.00. Wyckoff’s Intra-Day Market Rating: 5.5

GRAINS

U.S. grain futures prices were mostly lower in early U.S. pre-market trading. Corn and soybean market bulls remain in solid technical control, but wheat has turned bearish. It’s my strong bias that wheat futures have put in a major market top, and that makes it likely that corn and soybeans have done the same. Look for continued higher daily price volatility in the near term. Grain traders, you need to keep an eye on crude oil. Crude has also showed signs of topping out this week. As goes crude, so goes much of the raw commodity sector, including the grains.

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 10–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 lower openings when the New York day session begins. Some stock market bears are calling Wednesday’s U.S. rally a “dead-cat bounce.” The U.S. stock indexes remain in near-term price downtrends on the daily charts. Risk aversion remains elevated amid the ongoing Russia-Ukraine war. Talks between the two warring nations have produced no positive results, including those held today.

The U.S. data point of the day Thursday is the consumer price index report for February, which is expected to come in up 0.7% from January and up 7.8%, year-on-year. If realized, those numbers would be hot, at a four-decade high, and would continue to stoke inflation that threatens to derail global economic growth just as most countries are finally getting past the Covid pandemic.

Meantime, in the Euro zone the European Central Bank is meeting today. No major changes in ECB monetary policy are expected but the wording of comments from ECB President Legarde will be parsed by the marketplace.

Reports said a bipartisan group of U.S. senators is considering passing a bill for sanctions on the purchase or sale of Russian ‘blood’ gold. Russia reportedly has a gold stockpile valued at $132 billion. The lawmakers want to limit Russia’s ability to utilize its gold reserves—namely selling gold for cash. Some analysts say such a move is also targeting China and India, as Russian gold is already cut off from London and New York markets. The U.S. lawmakers pointed to Venezuela’s apparent ability to bypass U.S. sanctions and launder money through gold sales.

The key outside markets see Nymex crude oil prices higher and trading around $113.50 a barrel. The U.S. dollar index is firmer today. The benchmark U.S. 10-year Treasury note is presently yielding 1.924%. U.S. Treasury yields are on the rise this week.   

U.S. economic data due for release Thursday includes the weekly jobless claims report, the consumer price index, real earnings and the monthly Treasury budget statement.

–Jim

U.S. STOCK INDEXES

June S&P 500 e-mini futures: Prices are lower in early U.S. trading. Prices are trending lower on the daily bar chart and the bears are in solid near-term technical control. The 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 is below the 18-day moving average. Short-term oscillators (RSI, slow stochastics) are bearish early today. Today, shorter-term technical resistance comes in at the overnight high of 4,273.25 and then at this week’s high of 4,317.00. Support for active traders is seen at this week’s low of 4,130.25 and then at the February low of 4,094.25. Wyckoff’s Intra-day Market Rating: 4.0

June Nasdaq index futures: Prices are lower in early U.S. trading. Bears are in solid 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 bearish early today. Shorter-term technical resistance is seen at this week’s high of 13,875.50 and then at 14,000.00. On the downside, shorter-term support is seen at this week’s low of 13,106.75 and then at the February low of 13,031.00. Wyckoff’s Intra-Day Market Rating: 4.0.

U.S. TREASURY BONDS AND NOTES FUTURES

June U.S. T-Bonds: Prices are weaker in early U.S. trading. 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 the overnight high of 156 3/32 and then at 157 even. Shorter-term support lies at this week’s low of 155 8/32 and then at 155 even. Wyckoff’s Intra-Day Market Rating: 4.5

June U.S. T-Notes: Prices are slightly lower in early U.S. trading. 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 resistance lies at the overnight high of 126.26.5 and then at 127.00.0. Shorter-term technical support lies at 126.10.0 and then at 126.00.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.5

EURO CURRENCY

The June Euro currency futures are lower in early U.S. trading. Bears have the solid overall near-term technical advantage. The shorter-term moving averages for the Euro 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 for the Euro are neutral early today. The Euro currency finds shorter-term technical resistance at this week’s high of 1.1133 and then at 1.1200. Shorter-term support is seen at 1.1050 and then at 1.1000. Wyckoff’s Intra Day Market Rating: 4.0

NYMEX CRUDE OIL

Nymex crude oil prices are higher in early U.S. trading. Bulls have the firm overall near-term technical advantage but are exhausted to suggest a near-term market top is in place. 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 today. Look for buy stops to reside just above technical resistance at $115.00 and then at $116.57. Look for sell stops just below technical support at $110.00 and then at the overnight low of $107.01. Wyckoff’s Intra-Day Market Rating: 6.5

GRAINS

U.S. grain futures prices were higher in early U.S. pre-market trading. Grain market bulls remain in technical control, but there are a few warning signs that, from a time perspective, the markets are close to or have topped out. It’s my bias that wheat futures have put in a major market top, and such makes it likely that corn and soybeans have done the same. Look for continued higher daily price volatility in the near term. 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