The S&P and Nasdaq stock index futures have seen strong rebounds this week, amid receding Omicron fears, to put the indexes back into bullish near-term technical postures. As has been the case for a long time, solid dips in the indexes have been buying opportunities. It appears new highs are on the horizon for the U.S. stock indexes and bulls are back in technical control. Stay tuned!
Daily Morning Report
Stocks in rally mode at mid-week as Omicron fears fade
Wednesday, December 8–Jim Wyckoff’s Morning Markets Report
Global stock markets were mixed but mostly up in overnight trading. U.S. stock indexes are pointed toward firmer openings when the New York day session begins. The Omicron fears seen over the past nearly two weeks have quickly faded as trader and investor risk appetite is robust at mid-week. Pfizer has just reported three vaccine doses neutralize the Omicron variant, while two doses likely still prevent serious effects from the variant.
As Omicron moves off the front burner of the marketplace, focus is on other matters such as new ideas the Federal Reserve will move even more quickly to end its bond-buying program, so it can start raising U.S. interest rates. The Fed’s FOMC meets next week. The marketplace now expects the Fed to hike rates in May of next year. The Fed recently abandoned its notion that inflation is just “transitory.”
In other news, China’s stock markets have been pressured this week as property giant Evergrande missed a bond payment deadline Monday.
Traders are also monitoring the Russia-Ukraine border situation, where Russia has amassed troops. U.S. President Biden and Russian President Putin discussed the matter on the telephone Tuesday, but no progress was made on a de-escalation of the apparent Russian intentions of invading Ukraine and even annexing it. It appears this situation will get more tense before it gets better, and that means safe-haven assets are likely to come more into favor in the near term, including gold, silver, the U.S. dollar and U.S. Treasuries.
The key “outside markets” today see Nymex crude oil prices firmer and trading around $72.50 a barrel. This week’s strong gains in crude oil suggest the market last week put in a near-term bottom. The U.S. dollar index is slightly lower. Meantime, the yield on the U.S. Treasury 10-year note is presently fetching 1.461%.
U.S. economic data due for release Wednesday is light and includes the weekly MBA mortgage applications survey and the weekly DOE liquid energy stocks report.
–Jim
U.S. STOCK INDEXES
March S&P 500 e-mini futures: Prices are higher in early U.S. trading and back near the contract and record high. 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 to bullish early today. Today, shorter-term technical resistance comes in at the contract high of 4,735.00 and then at 4,775.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at 4,650.00 and then at 4,625.00. Sell stops likely reside below those levels. Wyckoff’s Intra-day Market Rating: 6.0
March Nasdaq index futures: Prices are higher in U.S. trading. Bulls have momentum. Shorter-term moving averages (4- 9-and 18-day) are still bearish early today. The 4-day moving average is below the 9-day and 18-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 16,500.00 and then at 16,600.00. Buy stops likely reside just above those levels. On the downside, shorter-term support is seen at 16,300.00 and then at 16,200.00. 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 firmer 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 and 18-day. The 9-day is above the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral early today. Shorter-term technical resistance is seen at the overnight high of 162 26/32 and then at 163 even. Buy stops likely reside just above those levels. Shorter-term support lies at this week’s low of 161 23/32 and then at 161 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 in early U.S. trading. Shorter-term moving averages (4- 9- 18-day) are neutral early today. The 4-day moving average is even with the 9-day. The 9-day is above the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral early today. Shorter-term resistance is seen at the overnight high of 130.24.5 and then at 131.00.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at this week’s low of 130.08.5 and then at 130.00.0. 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 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. 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 this week’s high of 1.1341 and then at last week’s high of 1.1417. Buy stops likely reside just above those levels. Shorter-term support is seen at last week’s low of 1.1257 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. Bulls have momentum. The shorter-term moving averages 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 (RSI and slow stochastics) are bullish early today. Look for buy stops to reside just above technical resistance at $74.00 and then at $75.00. Look for sell stops just below technical support at the overnight low of $70.91 and then at $70.00. Wyckoff’s Intra-Day Market Rating: 6.0
GRAINS
U.S. grain futures were mostly weaker in overnight trading. Not much new so far this week. There is keener risk appetite in the marketplace this week and that is bullish for the grains. Grain traders will continue to look to the key outside markets for direction—crude oil and the U.S. stock indexes. Big gains in crude this week should support buying interest in the grains. Traders are looking ahead to Thursday’s USDA monthly supply and demand 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
Keener risk appetite supports equities Tues.
Tuesday, December 7–Jim Wyckoff’s Morning Markets Report
Global stock markets were higher in overnight trading. U.S. stock indexes are pointed toward higher openings when the New York day session begins. The worst fears of the Omicron variant are not materializing, so far, and risk appetite is back on the table for the marketplace, for now. Oil prices are also rallying and U.S. Treasury bond yields are rising on ideas U.S. and global economic growth will not be seriously impacted by Omicron.
Traders and investors are keeping an eye on a phone call today between U.S. President Biden and Russian President Putin. The West thinks the Russians might be poised to invade Ukraine, as Russian troops are gathered near the Ukraine-Russia border.
In overnight news, the Euro zone’s third-quarter gross domestic product came in at up 2.2% from the second quarter and up 3.9%, year-on-year. Those numbers were in line with market expectations.
In other news, China’s November exports were up 22%, year-on-year, while its imports were up 31.7% in the month. Both numbers handily beat market expectations.
The key “outside markets” today see Nymex crude oil prices solidly higher again and trading around $71.50 a barrel. The U.S. dollar index is slightly higher. Meantime, the yield on the U.S. Treasury 10-year note is presently fetching 1.441%.
U.S. economic data due for release Tuesday includes the weekly chain store index and Johnson Redbook retail reports, the international trade report, revised productivity and costs, the IBD/TIPP economic optimism index and consumer credit.
–Jim
U.S. STOCK INDEXES
March S&P 500 e-mini futures: Prices are solidly higher in early U.S. trading. Bulls have regained momentum this week. The shorter-term moving averages (4-, 9- and 18-day) are still 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 bullish early today. Today, shorter-term technical resistance comes in at 4,675.00 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 4,587.25 and then at this week’s low of 4,531.50. Sell stops likely reside below those levels. Wyckoff’s Intra-day Market Rating: 7.0
March Nasdaq index futures: Prices are solidly higher in U.S. trading. Bulls have regained momentum this week. Shorter-term moving averages (4- 9-and 18-day) are still bearish early today. The 4-day moving average is below the 9-day and 18-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 16,200.00 and then at 16,300.00. Buy stops likely reside just above those levels. On the downside, shorter-term support is seen at the overnight low of 15,824.50 and then at last week’s low of 15,538.00. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 7.0.
U.S. TREASURY BONDS AND NOTES FUTURES
March U.S. T-Bonds: Prices are slightly lower in early U.S. trading. Bulls are fading this week. Shorter-term moving averages (4- 9- 18-day) are still bullish early today. The 4-day moving average is above the 9-day and 18-day. The 9-day is above the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral to bearish early today. Shorter-term technical resistance is seen at the overnight high of 162 20/32 and then at 163 even. Buy stops likely reside just above those levels. Shorter-term support lies at 162 even and then at 161 16/32. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.5
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 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 resistance is seen at the overnight high of 130.25.5 and then at 131.00.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at the overnight low of 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 weaker 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 bearish early today. The Euro currency finds shorter-term technical resistance at this week’s high of 1.1341 and then at last week’s high of 1.1417. Buy stops likely reside just above those levels. Shorter-term support is seen at last week’s low of 1.1271 and then at the November low of 1.1221. Sell stops likely reside just below those levels. Wyckoff’s Intra Day Market Rating: 4.0
NYMEX CRUDE OIL
Nymex crude oil prices are again solidly higher in early U.S. trading. Bulls have gained momentum this week. The shorter-term moving averages are still 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 (RSI and slow stochastics) are bullish early today. Look for buy stops to reside just above technical resistance at $73.00 and then at $74.00. Look for sell stops just below technical support at $70.00 and then at $69.00. Wyckoff’s Intra-Day Market Rating: 7.0
GRAINS
U.S. grain futures were mixed to firmer in overnight trading. There is keener risk appetite in the marketplace early this week and that is bullish for the grains. Grain traders will continue to look to the key outside markets for direction—crude oil and the U.S. stock indexes. Big gains in crude so far today should support early buying interest in 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
Friday focus is U.S. jobs report
Friday, December 3–Jim Wyckoff’s Morning Markets Report
Global stock markets were mixed to firmer in overnight trading. The U.S. stock indexes are pointed to weaker openings when the New York day session begins. It’s been a choppy trading week for the U.S. stock indexes, but they are now in near-term price downtrends, to suggest market tops are in place. There remains marketplace uncertainty regarding the new Omicron strain of the coronavirus. The variant has prompted many countries to impose travel restrictions. Look for continued wobbly trading in the stock market until much more is known about Omicron.
Traders and investors are awaiting the Friday morning U.S. employment situation report for November from the Labor Department—arguably the most important U.S. data point of the month. The key non-farm payrolls figure is expected to come in at up 573,000 compared to a rise of 531,000 in October.
The key “outside markets” today see Nymex crude oil prices higher and trading around $68.00 a barrel, after hitting a three-month low of $64.43 on Tuesday. The OPEC cartel agreed Thursday to pump more oil starting in January, but left the door open to change its mind if the global economic conditions change. The U.S. dollar index is slightly higher. Meantime, the yield on the U.S. Treasury 10-year note is presently fetching 1.427%.
Other U.S. economic data due for release Friday includes the U.S. services PMI, the ISM report on business services, the global services PMI, and manufacturers’ shipments and inventories.
–Jim
U.S. STOCK INDEXES
March S&P 500 e-mini futures: Prices are weaker in early U.S. trading. Bulls have faded badly recently to suggest a near-term market top is in place. Prices are now 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 neutral to bearish early today. Today, shorter-term technical resistance comes in at 4,600.00 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 4,543.75 and then at this week’s low of 4,497.75. Sell stops likely reside below those levels. Wyckoff’s Intra-day Market Rating: 4.5
March Nasdaq index futures: Prices are slightly higher in lower U.S. trading. Prices Thursday hit a six-week low to suggest a market top is 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 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 Thursday’s high of 16,066.25 and then at 16,150.00. Buy stops likely reside just above those levels. On the downside, shorter-term support is seen at this week’s low of 15,762.75 and then at 15,600.00. 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 up in early U.S. trading. Bulls have momentum. Shorter-term moving averages (4- 9- 18-day) are bullish early today. The 4-day moving average is above the 9-day and 18-day. The 9-day is above the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral to bullish early today. Shorter-term technical resistance is seen at this week’s high of 163 4/32 and then at 163 16/32. Buy stops likely reside just above those levels. Shorter-term support lies at the overnight low of 162 6/32 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 and 18-day. The 9-day is above the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral to bullish early today. Shorter-term resistance is seen at 131.00.0 and then at this week’s high of 131.10.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at the overnight low of 130.17.0 and then at 130.10.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 6.0
EURO CURRENCY
The March Euro currency futures are slightly up 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 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 this week’s high of 1.1417 and then at 1.1450. Buy stops likely reside just above those levels. Shorter-term support is seen at this week’s low of 1.1271 and then at the November low of 1.1221. Sell stops likely reside just below those levels. Wyckoff’s Intra Day Market Rating: 5.0
NYMEX CRUDE OIL
Nymex crude oil prices are higher in early U.S. trading. Bears have the near-term technical advantage as prices are trending lower. The shorter-term moving averages 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 (RSI and slow stochastics) are bullish early today. Look for buy stops to reside just above technical resistance at the overnight high of $68.71 and then at $70.00. Look for sell stops just below technical support at the overnight low of $66.44 and then at $65.00. Wyckoff’s Intra-Day Market Rating: 6.5
GRAINS
U.S. grain futures were mixed in overnight trading. There is less risk aversion in the marketplace late this week and that has given the grain market bulls some strength. However, as long as some Omicron uncertainty exists in the general marketplace, gains in the grains will likely be constrained. Grain traders will continue to look to the key outside markets for direction—crude oil and the U.S. stock indexes.
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
Soybean meal giving bullish clues for soybeans
In the 1980s I was a grain markets reporter on the trading floor of the Chicago Board of Trade. The veteran soybean pit traders would tell me to closely watch soybean meal, as it can lead soybeans out of a bear market. A look at the March soybean meal futures market shows prices are trending higher and this week rebounded from selling pressure to keep a price uptrend alive. The resilience of the soybean meal market recently is a bullish clue that better times are ahead for the soybean futures market. Stay tuned!
U.S. stock indexes still wobbly Thursday
Thursday, December 2–Jim Wyckoff’s Morning Markets Report
Global stock markets were mixed to weaker in overnight trading. The U.S. stock indexes are pointed to higher openings when the New York day session begins. The U.S. stock indexes overnight recovered some of their late-Wednesday losses that came after news that a case of Omicron was discovered in California. That news was not surprising but still rattled the stock market. Overnight news that the World Health Organization said vaccinations would offer at least some protection against the new strain helped assuage worries on the matter. Also, reports say Omicron is no more severe than the other coronavirus strains and may be milder. However, by no means has the marketplace reached calm on the matter. Don’t be surprised to see more markets volatility in the near term as more becomes known about Omicron.
In overnight news, the Euro zone reported its October producer price index at up 5.4% from September and up 21.9%, year-on-year. Those hot numbers were even hotter than the elevated PPI numbers that were forecast.
The Bank of America staff of commodity market analysts has forecast the price of Brent crude oil to possibly reach $120 a barrel by the middle of next year. Prices are trading around $70.00 at present. Meantime, OPEC officials said Wednesday that oil markets face a surplus in the first quarter of next year. If I have learned one thing in being in the commodity markets news and analysis business for nearly 40 years, it’s that forecasting future price levels for a commodity is mostly an exercise in futility that sets the prognosticating analysts up for future embarrassment. Still, many of us do it out of being compelled or even required to do so.
The key “outside markets” see Nymex crude oil prices higher and trading around $66.75 a barrel, after hitting a three-month low of $64.43 on Tuesday. The U.S. dollar index is slightly lower. Meantime, The yield on the U.S. Treasury 10-year note is presently fetching 1.492%.
The marketplace is awaiting the U.S. employment situation report for November from the Labor Department on Friday morning. The key non-farm payrolls figure is expected to come in at up 573,000 compared to a rise of 531,000 in October.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the Challenger job-cuts report, and the monthly retail chain sales index. Several Federal Reserve officials are also scheduled to speak today.
–Jim
U.S. STOCK INDEXES
March S&P 500 e-mini futures: Prices are higher in early U.S. trading on a corrective bounce after hitting a six-week low on Wednesday. Bulls have faded badly recently to suggest a near-term market top is in place. 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 the overnight high of 4,552.00 and then at 4,600.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at the overnight low of 4,508.00 and then at this week’s low of 4,497.75. Sell stops likely reside below those levels. Wyckoff’s Intra-day Market Rating: 6.0
March Nasdaq index futures: Prices are slightly higher in early U.S. trading. Prices Wednesday hit a six-week low to suggest a market top is in place. 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 average is even with the 18-day. Short-term oscillators (RSI, slow stochastics) are neutral to bearish early today. Shorter-term technical resistance is seen at 16,000.00 and then at 16,150.00. Buy stops likely reside just above those levels. On the downside, shorter-term support is seen at this week’s low of 16,825.25 and then at 15,700.00. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.0.
U.S. TREASURY BONDS AND NOTES FUTURES
March U.S. T-Bonds: Prices are up in early U.S. trading. Bulls have momentum. Shorter-term moving averages (4- 9- 18-day) are bullish early today. The 4-day moving average is above the 9-day and 18-day. The 9-day is above the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral early today. Shorter-term technical resistance is seen at this week’s high of 163 1/32 and then at 163 16/32. Buy stops likely reside just above those levels. Shorter-term support lies at the overnight low of 162 4/32 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 lower 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 and 18-day. The 9-day is above the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral early today. Shorter-term resistance is seen at the overnight high of 131.04.0 and then at this week’s high of 131.10.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at the overnight low of 130.19.0 and then at 130.12.0. 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 solid 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 this week’s high of 1.1417 and then at 1.1450. Buy stops likely reside just above those levels. Shorter-term support is seen at this week’s low of 1.1271 and then at the November low of 1.1221. Sell stops likely reside just below those levels. Wyckoff’s Intra Day Market Rating: 4.0
NYMEX CRUDE OIL
Nymex crude oil prices are near steady in early U.S. trading. Bears have the near-term technical advantage as prices are trending lower. The shorter-term moving averages 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 (RSI and slow stochastics) are neutral to bearish early today. Look for buy stops to reside just above technical resistance at the overnight high of $67.36 and then at $68.00. Look for sell stops just below technical support at this week’s low of $64.43 and then at $64.00. Wyckoff’s Intra-Day Market Rating: 4.5
GRAINS
U.S. grain futures were higher in overnight trading on more corrective buying after strong losses posted Tuesday. There is less risk aversion in the marketplace late this week and that is giving the grain market bulls some strength. However, as long as some Omicron uncertainty exists in the general marketplace, gains in the grains will likely be constrained. 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