Daily Morning Report

Thursday, February 24–Jim Wyckoff’s Morning Markets Report

Russia has initiated a full-blown invasion of Ukraine Thursday, including bombing and missile strikes on key infrastructure and defense installations all over Ukraine. Russian President Putin claimed the attack is an effort to demilitarize Ukraine. Global stock markets sunk sharply on the news, including the U.S. stock indexes. Many major commodity markets saw their prices soar. Russia is a major raw commodity exporter, and Russia and Ukraine are major grain exporters. Nymex and Brent crude oil futures pushed above $100.00 a barrel, with Nymex oil hitting $100.54 a barrel as of this writing. Gold rallied to a 1.5-year high and is around $60 an ounce higher on the day, on safe-haven demand. Grain futures rocketed sharply higher and set multi-year highs in some markets. The U.S. dollar index appreciated sharply and U.S. Treasury yields dropped dramatically. Bitcoin, seen by some as a safe-haven asset, once again sold off sharply when the going in the marketplace gets really tough.

A news headline from Barrons today read, “Russia has actually invaded Ukraine; markets are not ready for that fallout.” The extreme price moves seen in many markets today bear out that notion.

So far, the West and NATO nations have not participated in defending Ukraine with their militaries. However, in the fog of war major mistakes can be made by armies and their leaders. Much of the world is hoping the West and NATO do not get sucked into this conflagration.

All of the above developments make the other worry in the marketplace even greater: rising inflation. The keen marketplace uncertainty and anxiety may well impact the timing of the Federal Reserve’s plans to raise U.S. interest rates. Falling U.S. Treasury yields and potential slowing global economic growth due to the Russia-Ukraine war, and sharply rising energy prices, risk the Fed and other central banks pushing their economies into recession if they raise interest rates too aggressively. A Dow Jones Newswires news headline Thursday morning read, “Russian invasion scrambles prospects for global economy.”

The key outside markets today see Nymex crude oil prices posting big gains and trading around $99.50 a barrel. The U.S. dollar index is sharply higher and hit a three-week high today. The benchmark U.S. 10-year Treasury note is presently yielding 1.875%, well down from over 2.0% seen earlier this month.

U.S. economic data due for release Thursday includes the weekly jobless claims report, the Chicago Fed national activity index, the second estimate of fourth-quarter gross domestic product, new residential sales, the Kansas City Fed manufacturing survey, and the weekly DOE liquid energy stocks report.

–Jim

U.S. STOCK INDEXES

March S&P 500 e-mini futures: Prices are sharply down and hit a 10-month low in early U.S. trading. Prices are trending lower on the daily bar chart and the bears are in firm 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 and 18-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 4,200.00 and then at the overnight high of 4,224.50. Support for active traders is seen at the overnight low of 4,101.75 and then at 4,075.00. Wyckoff’s Intra-day Market Rating: 3.0

March Nasdaq index futures: Prices are sharply down and hit a 10-month low in early U.S. trading. Bears are in firm control amid a price downtrend in place. Shorter-term moving averages (4- 9-and 18-day) are bearish early today. The 4-day moving below the 9-day and 18-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 the overnight high of 13,517.75 and then at 13,750.00. On the downside, shorter-term support is seen at the overnight low of 13,025.75 and then at 13,000.00. Wyckoff’s Intra-Day Market Rating: 3.0.

U.S. TREASURY BONDS AND NOTES FUTURES

March U.S. T-Bonds: Prices are sharply up in early U.S. trading, on flight-to-quality buying. Bears still have the overall near-term technical advantage but the bulls have some momentum. Shorter-term moving averages (4- 9- 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. Oscillators (RSI, slow stochastics) are bullish early today. Shorter-term technical resistance is seen at the overnight high of 154 26/32 and then at 155 even. Shorter-term support lies at 153 even and then at the overnight low of 152 9/32. Wyckoff’s Intra-Day Market Rating: 7.0

March U.S. T-Notes: Prices are solidly higher in early U.S. trading, on flight-to-quality buying. Shorter-term moving averages (4- 9- 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. Oscillators (RSI, slow stochastics) are bullish early today. Shorter-term resistance lies at the overnight high of 127.12.5 and then at 127.16.0. Shorter-term technical support lies at 127.00.0 and then at 126.24.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 6.5

EURO CURRENCY

The June Euro currency futures are sharply down in early U.S. trading. Bears have the solid overall near-term technical advantage and gained fresh power today. 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 bearish early today. The Euro currency finds shorter-term technical resistance at 1.1300 and then at the overnight high of 1.1345. Shorter-term support is seen at the overnight low of 1.1196 and then at the January low of 1.1168. Wyckoff’s Intra Day Market Rating: 3.0

NYMEX CRUDE OIL

Nymex crude oil prices are strongly up and hit a 7.5-year high in early U.S. trading. Bulls have the solid overall near-term technical advantage and gained more power today. 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 today. Look for buy stops to reside just above technical resistance at the overnight high of $100.54 and then at $102.00. Look for sell stops just below technical support at $96.00 and then at $95.00. Wyckoff’s Intra-Day Market Rating: 8.0

GRAINS

U.S. grain futures are posting very strong gains in early U.S. pre-market trading, on the Russia-Ukraine news. Soybeans and wheat futures hit multi-year highs. Keen uncertainty regarding the effects on global grain trade from the Russia-Ukraine conflict is boosting grains. Russia and Ukraine are major global grain producers. Grain market bulls have the strong overall near-term technical advantage. However, corn, soybeans and wheat prices are all in historically “thin air.” Look for high daily price volatility in the near term.

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, February 23–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly firmer overnight. The U.S. stock indexes are pointed toward higher openings when the New York day session begins. The S&P 500 stock index is being termed in “correction” territory, meaning a 10% decline from its recent record high.

On the front burner of the marketplace remains the Russian incursion into Ukraine. The U.S. and other nations have slapped sanctions on Russia, but it appears the West has no intention of military action against Russia. That has somewhat assuaged the marketplace, for now. It’s still a dicey situation, as a military mistake by either side could significantly escalate the conflict. The major question on traders’ and investors’ minds is whether the uncertainty/anxiety factor has peaked, from a markets perspective. Remember that markets many times overreact to major geopolitical events in the early stages of those events. Traders tend to factor into market prices a worst-case scenario, only to see that scenario typically not occur. Still, in this particular geopolitical situation another major “shoe could drop,” such as a full-blown Russia invasion of Ukraine, to further destabilize markets.

In overnight news, the Euro zone consumer price index for January came in at up 0.3% from December and up 5.1%, year-on-year. Those numbers were right in line with market expectations.

The key outside markets today see Nymex crude oil prices weaker and trading around $91.50 a barrel. The U.S. dollar index is a bit weaker early today. The benchmark U.S. 10-year Treasury note is presently yielding 1.977%.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, and the weekly Johnson Redbook and chain store sales indexes.

–Jim

U.S. STOCK INDEXES

March S&P 500 e-mini futures: Prices are higher in early U.S. trading. Prices are trending lower on the daily bar chart and the bears are in 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 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 Tuesday’s high of 4,391.25 and then at 4,425.00. Support for active traders is seen at 4,300.00 and then at 4,275.00. Wyckoff’s Intra-day Market Rating: 6.0

March Nasdaq index futures: Prices are higher in early U.S. trading. Bears are in control amid a price downtrend in place. Shorter-term moving averages (4- 9-and 18-day) are bearish early today. The 4-day moving below 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 Tuesday’s high of 14,157.50 and then at 14,300.00. On the downside, shorter-term support is seen at 13,706.00 and then at Tuesday’s low of 13,580.25. Wyckoff’s Intra-Day Market Rating: 6.0.

U.S. TREASURY BONDS AND NOTES FUTURES

March U.S. T-Bonds: Prices are weaker in early U.S. trading. Bears have the solid overall near-term technical advantage. Shorter-term moving averages (4- 9- 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. Oscillators (RSI, slow stochastics) are neutral early today. Shorter-term technical resistance is seen at the overnight high of 153 12/32 and then at 154 even. Shorter-term support lies at the overnight low of 152 15/32 and then at 152 even. Wyckoff’s Intra-Day Market Rating: 4.5

March 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 above the 9-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 the overnight high of 126.19.5 and then at 126.24.0. Shorter-term technical support lies at the overnight low of 126.05.0 and then at 126.00.0. 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 up in early U.S. trading. Bears have the overall near-term technical advantage. The shorter-term moving averages for the Euro 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 for the Euro are neutral early today. The Euro currency finds shorter-term technical resistance at last week’s high of 1.1437 and then at 1.1480. Shorter-term support is seen at last week’s low of 1.1325 and then at 1.1300. Wyckoff’s Intra Day Market Rating: 5.5

NYMEX CRUDE OIL

Nymex crude oil prices are weaker in early U.S. trading. Bulls have the solid overall near-term technical advantage. 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 bearish today. Look for buy stops to reside just above technical resistance at the overnight high of $92.37 and then at $94.00. Look for sell stops just below technical support at Tuesday’s low of $89.06 and then at last week’s low of $87.46. Wyckoff’s Intra-Day Market Rating: 4.5

GRAINS

U.S. grain futures are mixed in early U.S. pre-market trading. Grain markets this week are seeing price gains on the uncertainty regarding the Russia-Ukraine conflict. Russia and Ukraine are major global grain producers. Grain market bulls have the solid overall near-term technical advantage. However, corn, soybeans and wheat prices are all in historically “thin air.”

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, February 22–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly lower overnight. The U.S. stock indexes are pointed toward weaker openings when the New York day session begins. Trader and investor risk aversion elevated following a three-day U.S. markets-holiday weekend. Russia has sent troops into breakaway parts of Ukraine, with Russian President Putin calling it a “peace-keeping” mission. The U.S. and the West have slapped new sanctions on Russia, including Germany halting operations on a key oil pipeline into Russia. The U.S. says Russia now has 190,000 troops at the Ukrainian border. This matter is likely to remain on the front burner of the marketplace for some time to come. “Markets are on war footing” was a news headline from Barrons today.

Gold prices hit an eight-month high of $1,918.00 an ounce overnight, on safe-haven demand.

The key outside markets today see Nymex crude oil prices sharply higher, hitting a 7.5-year high of $96.00 a barrel and presently trading around $94.25 a barrel. The U.S. dollar index is a bit weaker early today. The benchmark U.S. 10-year Treasury note is presently yielding 1.925%. U.S. Treasury yields are falling early this week, on safe-haven demand for U.S. debt.

U.S. economic data due for release Tuesday includes the monthly house price index, the quarterly house price index, the U.S. flash manufacturing and services purchasing managers indexes, the Richmond Fed business survey and the consumer confidence index.

–Jim

U.S. STOCK INDEXES

March S&P 500 e-mini futures: Prices are slightly lower and hit a four-week low in early U.S. trading. Prices are trending lower on the daily bar chart. The shorter-term moving averages (4-, 9- and 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. Short-term oscillators (RSI, slow stochastics) are bearish early today. Today, shorter-term technical resistance comes in at the overnight high of 4,391.25 and then at 4,425.00. Support for active traders is seen at 4,321.00 and then at 4,300.00. Wyckoff’s Intra-day Market Rating: 4.5

March Nasdaq index futures: Prices are lower in early U.S. trading and hit an eight-month low overnight. Shorter-term moving averages (4- 9-and 18-day) are bearish early today. The 4-day moving below the 9-day and 18-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 the overnight high of 14,157.50 and then at 14,300.00. On the downside, shorter-term support is seen at 14,706.00 and then at the overnight low of 13,580.25. Wyckoff’s Intra-Day Market Rating: 4.0.

U.S. TREASURY BONDS AND NOTES FUTURES

March U.S. T-Bonds: Prices are slightly down in early U.S. trading. Bears still have the solid overall near-term technical advantage. Shorter-term moving averages (4- 9- 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. Oscillators (RSI, slow stochastics) are neutral early today. Shorter-term technical resistance is seen at 153 16/32 and then at 154 even. Shorter-term support lies at the overnight low of 152 17/32 and then at 152 even. Wyckoff’s Intra-Day Market Rating: 4.5

March 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 above the 9-day. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral early today. Shorter-term resistance lies at 126.25.5 and then at 127.00.0. Shorter-term technical support lies at 126.07.0 and then at 126.00.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0

EURO CURRENCY

The March Euro currency futures are firmer in early U.S. trading. Bears have the overall near-term technical advantage. The shorter-term moving averages for the Euro 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 for the Euro are neutral early today. The Euro currency finds shorter-term technical resistance at last week’s high of 1.1402 and then at 1.1450. Shorter-term support is seen at last week’s low of 1.1287 and then at 1.1250. Wyckoff’s Intra Day Market Rating: 5.5

NYMEX CRUDE OIL

March Nymex crude oil prices are solidly higher and hit a 7.5-year high in early U.S. trading. Bulls have the solid overall near-term technical advantage. 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 today. Look for buy stops to reside just above technical resistance at the overnight high of $96.00 and then at $97.50. Look for sell stops just below technical support at $92.50 and then at $90.00. Wyckoff’s Intra-Day Market Rating: 6.5

GRAINS

U.S. grain futures are higher in early U.S. pre-market trading. Grain markets are seeing price gains on the uncertainty regarding the Russia-Ukraine conflict. Russia and Ukraine are major global wheat producers. Grain market bulls have the overall near-term technical advantage. 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, February 18–Jim Wyckoff’s Morning Markets Report

Global stock markets were mixed overnight. The U.S. stock indexes are pointed toward firmer openings when the New York day session begins, on corrective bounces after strong losses posted Thursday. Bears continue to have the near-term technical advantage in the U.S. stock indexes, which means the path of least resistance for prices is sideways to lower. Trader and investor risk aversion is still on the high side heading into the weekend. The U.S. insists Russia is poised to invade Ukraine and has the intelligence to back up that claim. Russia still insists it has no plans to invade its neighbor, despite massing 150,000 troops on Ukraine’s border. The major unknown to this geopolitical crisis is now the U.S. and NATO will respond to any Russian incursion into Ukraine. Much will likely depend on the degree to which any invasion occurs. Will any invasion be full-blown or will it be measured? Some are predicting the invasion is coming this weekend.

The other element on the front burner of the marketplace is inflation concerns. This week saw more hot inflation readings come from the U.S. and China. The yield on the U.S. 10-year Treasury note is presently fetching 1.975%, which is down from levels over 2.0% seen earlier this week—likely due to “flight-to-quality” buying of U.S. Treasuries amid the geopolitical crisis.

The key outside markets today see crude oil prices solidly lower and trading around $89.50 a barrel. The U.S. dollar index is a bit firmer today.

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

–Jim

U.S. STOCK INDEXES

March S&P 500 e-mini futures: Prices are higher in early U.S. trading. The shorter-term moving averages (4-, 9- and 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. Short-term oscillators (RSI, slow stochastics) are neutral early today. Today, shorter-term technical resistance comes in at this week’s high of 4,484.50 and then at 4,525.00. Support for active traders is seen at this week’s low of 4,354.00 and then at 4,300.00. Wyckoff’s Intra-day Market Rating: 5.5

March Nasdaq index futures: Prices are higher in early U.S. trading. Shorter-term moving averages (4- 9-and 18-day) are neutral early today. The 4-day moving below the 9-day and 18-day. The 9-day average is above 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 14,668.50 and then at 14,800.00. On the downside, shorter-term support is seen at this week’s low of 14,031.00 and then at 13,800.00. Wyckoff’s Intra-Day Market Rating: 5.5.

U.S. TREASURY BONDS AND NOTES FUTURES

March U.S. T-Bonds: Prices are slightly up in early U.S. trading, on short covering after hitting a contract low on Wednesday. Bears still have the solid overall near-term technical advantage. 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 this week’s high of 152 17/32 and then at 153 even. Shorter-term support lies at the overnight low of 151 20/32 and then at 150 29/32. Wyckoff’s Intra-Day Market Rating: 5.5

March U.S. T-Notes: Prices are slightly 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. 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 126.22.0 and then at this week’s high of 126.25.5. Shorter-term technical support lies at the overnight low of 126.07.0 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 March Euro currency futures are slightly lower in early U.S. trading. Bears have the overall near-term technical advantage. The shorter-term moving averages for the Euro 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 for the Euro are bearish early today. The Euro currency finds shorter-term technical resistance at this week’s high of 1.1402 and then at 1.1450. Shorter-term support is seen at 1.1328 and then at this week’s low of 1.1287. Wyckoff’s Intra Day Market Rating: 4.5

NYMEX CRUDE OIL

March Nymex crude oil prices are solidly lower in early U.S. trading. Bulls still have the overall near-term technical advantage but are fading late this week. 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 bearish today. Look for buy stops to reside just above technical resistance at the overnight high of $91.87 and then at $93.36. Look for sell stops just below technical support at the overnight low of $89.03 and then at $88.00. Wyckoff’s Intra-Day Market Rating: 3.5

GRAINS

U.S. grain futures are mixed in early U.S. pre-market trading. Not much new late this week. Grain market bulls still have the overall near-term technical advantage. Inflation worries are overall bullish for the grain markets, but the keener risk aversion this week is mostly bearish.

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