Daily Morning Report

Wednesday, December 22–Jim Wyckoff’s Morning Markets Report

Global stock markets were mixed in overnight trading. U.S. stock indexes are pointed toward mixed openings when the New York day session begins. It’s been a choppy trading week so far and the U.S. stock indexes appear to be pausing at mid-week. There is less risk aversion in the market place, at least for now. There is a bigger slate of U.S. economic data due for release Wednesday that could impact markets. However, trading activity in many markets is likely to wane as the trading session progresses today, ahead of the Christmas holiday. Markets are closed on Friday.

President Biden on Tuesday afternoon said he and Sen. Joe Manchin will work on getting a U.S. spending bill complete, after Manchin nixed the latest White House proposal. That has helped to assuage the marketplace.

The key “outside markets” today see Nymex crude oil prices slightly higher and trading around $71.50 a barrel. The U.S. dollar index is weaker early today. Meantime, the yield on the U.S. Treasury 10-year note is presently fetching 1.474%.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the Chicago Fed national activity index, the third estimate of third-quarter GDP, existing home sales, the consumer confidence index, and the weekly DOE liquid energy stocks report.

–Jim

U.S. STOCK INDEXES

March S&P 500 e-mini futures: Prices are near steady in early U.S. trading. The shorter-term moving averages (4-, 9- and 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. Short-term oscillators (RSI, slow stochastics) are neutral to bearish early today. Today, shorter-term technical resistance comes in at 4,668.00 and then at 4,700.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at 4,600.00 and then at Tuesday’s low of 4,565.75. Sell stops likely reside below those levels. Wyckoff’s Intra-day Market Rating: 5.0

March Nasdaq index futures: Prices are slightly lower in early U.S. trading. 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 16,000.00 and then at 16,100.00. Buy stops likely reside just above those levels. On the downside, shorter-term support is seen at the overnight low of 15,881.00 and then at 15,750.00. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.5.

U.S. TREASURY BONDS AND NOTES FUTURES

March U.S. T-Bonds: Prices are higher 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 bearish early today. Shorter-term technical resistance is seen at the overnight high of 161 15/32 and then at 162 even. Buy stops likely reside just above those levels. Shorter-term support lies at this week’s low of 160 14/32 and then at 160 even. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.5

March U.S. T-Notes: Prices are near steady in early U.S. trading. 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 is seen at the overnight high of 130.28.5 and then at 131.00.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at 130.16.0 and then at 130.10.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.0

EURO CURRENCY

The March Euro currency futures are up in early U.S. trading. Bears still have the solid overall near-term technical advantage. However, prices have been trading sideways at lower levels for nearly four weeks. The shorter-term moving averages for the Euro are bearish early today, as the 4-day is below 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 1.1350 and then at the December high of 1.1388. Buy stops likely reside just above those levels. Shorter-term support is seen at the December low of 1.1247 and then at the November low of 1.1221. Sell stops likely reside just below those levels. Wyckoff’s Intra Day Market Rating: 6.0

NYMEX CRUDE OIL

Nymex crude oil prices are slightly higher in early U.S. trading. 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 neutral early today. Look for buy stops to reside just above technical resistance at $72.50 and then at the December high of $73.13. Look for sell stops just below technical support at $70.00 and then at $69.00. Wyckoff’s Intra-Day Market Rating: 5.5

GRAINS

U.S. grain futures were firmer in overnight trading, after solid gains Tuesday. Bulls are gaining momentum. The grain market bulls now have strength and prices may trend sideways to higher into the new year, and maybe longer.  

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, December 21–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly higher in overnight trading. U.S. stock indexes are pointed toward solidly higher openings when the New York day session begins. The global stock indexes are posting corrective bounces after Monday’s strong losses that were due mostly to worries about the pandemic starting to surge again. A look at the daily bar charts for the Nasdaq and S&P futures shows higher daily price volatility at higher price levels. That’s one warning signal of a topping process in a market and favors the bearish camp. Look for more daily increased price volatility in the near term, which could be amplified even more by thin holiday trading volumes in the coming days.

Part of the bounce-back in stock indexes Tuesday comes from reports President Biden and Sen. Joe Manchin held a phone conversation, which the White House believes could keep the door open to reviving talks on Biden’s spending bill. Presently, traders and investors are looking at the bright side of the matter, as both sides are still talking.

The key “outside markets” today see Nymex crude oil prices higher on a corrective bounce from Monday’s steep losses, and trading around $69.50 a barrel. The U.S. dollar index is slightly lower early today. Meantime, the yield on the U.S. Treasury 10-year note is presently fetching 1.429%. For perspective, the 10-year German bond (bund) sees its yield at -0.362% and the 10-year U.K. bond (gilt) is fetching 0.798%. The premium the U.S. 10-year note yield is holding to most of its major counterparts is a main reason for the U.S. dollar’s appreciation in recent months. In fact, one report last week said many European banks are taking their excess Euros and buying U.S. Treasuries, which means they have to buy greenbacks with their Euros to do such—meaning even more dollar appreciation.

U.S. economic data due for release Tuesday is again light and includes the weekly Johnson Redbook and chain store retail reports.

–Jim

U.S. STOCK INDEXES

March S&P 500 e-mini futures: Prices are solidly higher in early U.S. trading, on a corrective bounce from Monday’s pressure. The shorter-term moving averages (4-, 9- and 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. Short-term oscillators (RSI, slow stochastics) are neutral early today. Today, shorter-term technical resistance comes in at Monday’s high of 4,621.500 and then at 4,650.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at the overnight low of 4,565.75 and then at Monday’s low of 4,520.25. Sell stops likely reside below those levels. Wyckoff’s Intra-day Market Rating: 6.0

March Nasdaq index futures: Prices are solidly higher in early U.S. trading, on a corrective bounce. 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 Monday’s high of 15,851.75 and then at 16,000.00. Buy stops likely reside just above those levels. On the downside, shorter-term support is seen at the overnight low of 15,670.00 and then at Monday’s low of 15,492.00. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 6.0.

U.S. TREASURY BONDS AND NOTES FUTURES

March U.S. T-Bonds: 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 technical resistance is seen at the overnight high of 162 3/32 and then at 162 13/32. Buy stops likely reside just above those levels. Shorter-term support lies at the overnight low of 161 13/32 and then at 161 even. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0

March U.S. T-Notes: Prices are lower in early U.S. trading, on a corrective pullback after hitting a three-month high Monday. 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 neutral to bearish early today. Shorter-term resistance is seen at the overnight high of 131.08.0 and then at this week’s high of 131.19.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at 130.26.0 and then at 130.20.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0

EURO CURRENCY

The March Euro currency futures are slightly up in early U.S. trading. Bears still have the solid overall near-term technical advantage. However, prices have been trading sideways at lower levels for nearly four weeks. The shorter-term moving averages for the Euro are neutral early today, as the 4-day below with the 9-day. The 9-day is even with 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 1.1350 and then at the December high of 1.1388. Buy stops likely reside just above those levels. Shorter-term support is seen at the December low of 1.1247 and then at the November low of 1.1221. Sell stops likely reside just below those levels. Wyckoff’s Intra Day Market Rating: 5.5

NYMEX CRUDE OIL

Nymex crude oil prices are higher in early U.S. trading on a corrective bounce from Monday’s sharp losses. 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 neutral early today. Look for buy stops to reside just above technical resistance at $71.00 and then at $72.00. Look for sell stops just below technical support at the overnight low of $68.56 and then at $67.50. Wyckoff’s Intra-Day Market Rating: 6.0

GRAINS

U.S. grain futures were mostly weaker in overnight trading. Importantly, the grain markets showed resilience on Monday, in the face of mostly bearish outside markets and keener risk aversion. If the big speculative funds wanted to lean on the short side of the grains, Monday was the day to do it—but they did not. Such suggests the grain markets have underlying strength and that prices may trend sideways to higher into the new year, and maybe longer. The corn, soybeans and wheat market bulls have the overall near-term technical advantage.

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, December 20–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly lower in overnight trading. U.S. stock indexes are pointed toward solidly lower openings when the New York day session begins. It’s a risk-off trading day in the marketplace to begin a Christmas-holiday-shortened trading week Monday. The coronavirus pandemic just won’t go away and is raging in several European countries, which is causing fresh business and travel restrictions. The Omicron strain is also surging in parts of the U.S. right as the holiday season approaches.

Also a negative for the U.S. markets is the blockage of the Biden administration’s $1.7 trillion Build Back Better spending program by Sen. Joe Manchin. Many analysts are saying Biden’s big plan is dead in the water now—dealing a huge blow to Biden. Some economists are already dialing back U.S. economic growth projections for 2022.

Pressuring Asian shares overnight is news that another China property firm is in trouble. Reports said the Kaisa firm has announced it defaulted on several U.S. dollar-denominated bonds. The developer is in discussions with creditors regarding a restructuring plan. The bigger troubled China property developer, Evergrande, has had two land parcels in Chengdu reclaimed by local government without compensation, said reports. The Asian markets got little help from China’s central bank cutting its one-year loan prime rate, in a move to shore up the world’s second-largest economy.

The key “outside markets” today see Nymex crude oil prices solidly lower on the pandemic worries, and trading around $68.20 a barrel. The U.S. dollar index is slightly lower early today. Meantime, the yield on the U.S. Treasury 10-year note is presently fetching 1.387%.

U.S. economic data due for release Monday is light and includes leading economic indicators.

–Jim

U.S. STOCK INDEXES

March S&P 500 e-mini futures: Prices are solidly lower in early U.S. trading. The shorter-term moving averages (4-, 9- and 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. Short-term oscillators (RSI, slow stochastics) are bearish early today. Today, shorter-term technical resistance comes in at 4,600.000 and then at the overnight high of 4,621.50. Buy stops likely reside just above those levels. Downside support for active traders is seen at the overnight low of 4,526.25 and then at 4,500.00. Sell stops likely reside below those levels. Wyckoff’s Intra-day Market Rating: 4.0

March Nasdaq index futures: Prices are solidly lower and hit a nearly two-month low in early U.S. trading. 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 the overnight high of 15,851.75 and then at 16,000.00. Buy stops likely reside just above those levels. On the downside, shorter-term support is seen at the overnight low of 15,503.00 and then at 15,350.00. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0.

U.S. TREASURY BONDS AND NOTES FUTURES

March U.S. T-Bonds: Prices are slightly higher 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 even with 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 163 19/32 and then at 164 even. Buy stops likely reside just above those levels. Shorter-term support lies at 162 13/32 and then at 162 even. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.5

March U.S. T-Notes: Prices are higher and hit a three-month high in early U.S. trading. 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 is seen at the overnight high of 131.19.0 and then at 131.24.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at Friday’s low of 130.30.5 and then at 130.26.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 6.0

EURO CURRENCY

The March Euro currency futures are firmer in early U.S. trading. Bears still have the solid overall near-term technical advantage. However, prices have been trading sideways at lower levels for nearly four weeks. The shorter-term moving averages for the Euro are neutral early today, as the 4-day below with the 9-day. The 9-day is even with the 18-day moving average. Short-term oscillators for the Euro are neutral early today. The Euro currency finds shorter-term technical resistance at 1.1350 and then at the December high of 1.1388. Buy stops likely reside just above those levels. Shorter-term support is seen at the December low of 1.1247 and then at the November low of 1.1221. Sell stops likely reside just below those levels. Wyckoff’s Intra Day Market Rating: 5.5

NYMEX CRUDE OIL

Nymex crude oil prices are solidly lower in early U.S. trading but up from overnight lows. 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 early today. Look for buy stops to reside just above technical resistance at $70.00 and then at $71.00. Look for sell stops just below technical support at the overnight low of $66.84 and then at $66.00. Wyckoff’s Intra-Day Market Rating: 3.5

GRAINS

U.S. grain futures were lower in overnight trading, as keen risk aversion in the marketplace is squelching the grain market bulls. On tap today is the weekly USDA export inspections report. The corn and wheat market bulls still have the overall near-term technical advantage, while the soybean bulls now have the slight technical edge.

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, December 17–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly lower in overnight
trading. U.S. stock indexes are pointed toward weaker
openings when the New York day session begins. Today is the
quarterly triple- witching phenomenon–the simultaneous
expiration of stock options, index options and index
futures. These days can cause higher volatility. The stock
market bulls late this week have quickly pulled in their
horns. It seems traders and investors have pivoted after
the U.S. stock indexes posted strong gains in the immediate
aftermath of the FOMC meeting Wednesday afternoon.
Thursday’s and Friday’s price action in the stock markets
suggest traders and investors have realized they are now
staring down the double-barrel shotgun of rising interest
rates/inflation and a resurging coronavirus that threatens
to again crimp global economic growth. It could be that
other major central banks moving to tighten their monetary
policies or signaling their intent to do so, shortly after
the Wednesday FOMC meeting pushed traders and investors
into risk-averse postures.

Gold prices surged to a nearly three-week high Friday,
above $1,800.00, on safe-haven demand and as traders seek
out the metals as an inflation hedge.

In overnight news, the Euro zone reported its November
consumer price index up 0.4% from October and up 4.9%,
year-on-year.

The key “outside markets” today see Nymex crude oil prices
lower and trading around $71.00 a barrel. The U.S. dollar
index is slightly higher today. Meantime, the yield on the
U.S. Treasury 10-year note is presently fetching 1.429%.

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

–Jim

U.S. STOCK INDEXES

March S&P 500 e-mini futures: Prices are weaker in early
U.S. trading. The shorter-term moving averages (4-, 9- and
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. Short-term oscillators (RSI, slow stochastics) are
bearish early today. Today, shorter-term technical
resistance comes in at the overnight high of 4,668.00 and
then at 4,700.00. Buy stops likely reside just above those
levels. Downside support for active traders is seen at the
overnight low of 4,634.50 and then at this week’s low of
4,596.25. Sell stops likely reside below those levels.
Wyckoff’s Intra-day Market Rating: 4.5

March Nasdaq index futures: Prices are solidly lower and
hit a two-week low in early U.S. trading. Shorter-term
moving averages (4- 9-and 18-day) are neutral early today.
The 4-day moving average is below the 9-day. The 9-day
average is above the 18-day. Short-term oscillators (RSI,
slow stochastics) are bearish early today. Shorter-term
technical resistance is seen at the overnight high of
15,897.50 and then at 16,000.00. Buy stops likely reside
just above those levels. On the downside, shorter-term
support is seen at the overnight low of 15,676.75 and then
at the December low of 15,547.25. Sell stops likely reside
just below those levels. Wyckoff’s Intra-Day Market Rating:
4.0.

U.S. TREASURY BONDS AND NOTES FUTURES

March U.S. T-Bonds: Prices are higher in early U.S.
trading. 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 neutral to bullish
early today. Shorter-term technical resistance is seen at
this week’s high of 162 23/32 and then at 163 even. Buy
stops likely reside just above those levels. Shorter-term
support lies at the overnight low of 161 29/32 and then at
161 16/32. Sell stops likely reside just below those
levels. Wyckoff’s Intra-Day Market Rating: 6.0

March U.S. T-Notes: Prices are higher in early U.S.
trading. 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 neutral to bullish
early today. Shorter-term resistance is seen at the
December high of 131.16.0 and then at 131.20.0. Buy stops
likely reside just above those levels. Shorter-term
technical support lies at the overnight low of 130.30.5 and
then at 130.26.0. Sell stops likely reside just below those
levels. Wyckoff’s Intra-Day Market Rating: 6.0

EURO CURRENCY

The March Euro currency futures are weaker in early U.S.
trading. Bears still have the solid overall near-term
technical advantage. However, prices have been trading
sideways at lower levels for three week. 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 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 this week’s high of 1.1388 and
then at 1.1417. Buy stops likely reside just above those
levels. Shorter-term support is seen at 1.1300 and then at
this week’s low of 1.1247. Sell stops likely reside just
below those levels. Wyckoff’s Intra Day Market Rating: 4.5

NYMEX CRUDE OIL

Nymex crude oil prices are lower 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 beaerish early today. Look for
buy stops to reside just above technical resistance at the
overnight high of $72.26 and then at last week’s high of
$73.34. Look for sell stops just below technical support at
$70.00 and then at $69.00. Wyckoff’s Intra-Day Market
Rating: 4.0

GRAINS

U.S. grain futures were steady to firmer in overnight
trading. Risk aversion in the marketplace Friday will
squelch the grain market bulls. The corn and wheat market
bulls have the overall near-term technical advantage, while
the soybean bears have the edge.

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