Daily Morning Report

Friday, November 12–Jim Wyckoff’s Morning Markets Report

Global stock markets were mixed in overnight trading. The U.S. stock indexes are pointed to firmer openings when the New York day session begins. The U.S. stock indexes this week could have their first losing week in five weeks. Global stock markets have become a bit wobbly, on rising concerns about problematic consumer and producer price inflation. The U.S. Fed funds futures market is now signaling a more than 70% chance the Federal Reserve will raise interest rates by next June.

The marketplace is keeping an eye on Russia, which may be weighing a potential invasion of Ukraine. A buildup of Russian forces near the border Ukrainian border has the West concerned. U.S. Secretary of State Blinken said earlier this week the U.S. commitment to Ukraine is “ironclad.” On Thursday Russian ally Belarusian President Alexander Lukashenko threatened to shut gas supplies to the EU, escalating a dispute over migration of refugees through the country.

The key outside markets today see the U.S. dollar index near steady but and hitting another 15-month high overnight. Nymex crude oil prices are solidly lower and trading around $80.00 a barrel. The crude oil market bulls appear to have run out of gas and a market top could be in place. Meantime, the 10-year U.S. Treasury note yield is presently fetching 1.572%. 

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

–Jim

U.S. STOCK INDEXES

December S&P 500 e-mini futures: Prices are firmer in early U.S. trading and not far below last week’s record high. Bulls have the solid overall near-term technical advantage as prices are trending up. 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 neutral early today. Today, shorter-term technical resistance comes in at Wednesday’s high of 4,680.25 and then at the contract and record high of 4,711.25. Buy stops likely reside just above those levels. Downside support for active traders is seen at this week’s low of 4,625.25 and then at 4,600.00. Sell stops likely reside below those levels. Wyckoff’s Intra-day Market Rating: 5.5

December Nasdaq index futures: Prices are slightly higher in early U.S. trading. Prices last week hit a record high. 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 neutral early today. Shorter-term technical resistance is seen at Wednesday’s high of 16,243.00 and the at the contract and record high of 16,448.50. Buy stops likely reside just above those levels. On the downside, shorter-term support is seen at this week’s low of 15,896.50 and then at and then at 15,750.00. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.5.

U.S. TREASURY BONDS AND NOTES FUTURES

December U.S. T-Bonds: Prices are a bit 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 bearish early today. Shorter-term technical resistance is seen at Thursday’s high of 162 12/32 and then at 163 even. Buy stops likely reside just above those levels. Shorter-term support lies at this week’s low of 161 9/32 and then at 161 even. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.5

December U.S. T-Notes: Prices are firmer 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 early today. Shorter-term resistance is seen at Thursday’s high of 130.16.0 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 130.09.0 and then at 130.07.5. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.5

EURO CURRENCY

The December Euro currency futures are slightly up and hit a 16-month low overnight. 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 early today. The Euro currency finds shorter-term technical resistance at 1.1500 and then at 1.1550. Buy stops likely reside just above those levels. Shorter-term support is seen at the overnight low of 1.1442 and then at 1.1400. Sell stops likely reside just below those levels. Wyckoff’s Intra Day Market Rating: 5.0

NYMEX CRUDE OIL

Nymex crude oil prices are solidly lower in early U.S. trading. Bulls have the overall near-term technical advantage but are fading, to suggest a market top is in place. 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 bearish early today. Look for buy stops to reside just above technical resistance at the overnight high of $81.53 and then at $82.00. Look for sell stops just below technical support at the November low of $78.25 and then at $78.00. Wyckoff’s Intra-Day Market Rating: 3.5

GRAINS

U.S. grain futures were mixed overnight. On tap today is the weekly USDA export sales report. Key for soybeans in the near term is the soybean meal futures market. Meal is trending higher, which begins to signal a market bottom is close at hand for soybeans. Corn and wheat bulls have the near-term technical advantage. Corn is presently following the lead of the stronger wheat market.

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, November 11–Jim Wyckoff’s Morning Markets Report

Global stock markets were flat to a bit higher in overnight trading. The U.S. stock indexes are pointed to firmer openings when the New York day session begins. The focus of the marketplace is now on the increasing odds of higher and even problematic price inflation worldwide. Two U.S. inflation reports this week ran hot and underscored inflation is tightening its grip on world economies. The U.S. consumer price index report released Wednesday showed inflation running at a 30-plus year high. Gold prices hit a five-month high and silver scored a three-month high on Wednesday, as traders and investors seek out inflation hedges in hard assets. There are now growing notions the Federal Reserve will be forced to raise U.S. interest rates much sooner that the central bank has recently suggested.

Today is a U.S. federal holiday, Veterans Day, and the U.S. government and Treasury markets are closed. There is no U.S. economic data due for release Thursday, due to the holiday.

In overnight news, the Euro zone forecast its economic growth in 2021 at 5.0%, at up 4.3% in 2022 and at 2.4% growth in 2023. The Euro zone forecast its inflation in 2021 at up 2.4%, up 2.2% in 2022 and up 1.4% in 2023. Those inflation forecasts seem low when compared to inflation numbers that have been released recently.

The key outside markets today see the U.S. dollar index higher and hitting a 15-month high overnight. Nymex crude oil prices are lower and trading around $80.50 a barrel. Meantime, the 10-year U.S. Treasury note yield is presently fetching 1.57%. 

–Jim

U.S. STOCK INDEXES

December S&P 500 e-mini futures: Prices are firmer in early U.S. trading but not far below last week’s record high. Bulls have the solid overall near-term technical advantage as prices are trending up. The shorter-term moving averages (4-, 9- and 18-day) are bullish early today. The 4-day moving average is above the 9-day and 18-day. The 9-day is above the 18-day moving average. Short-term oscillators (RSI, slow stochastics) are neutral early today. Today, shorter-term technical resistance comes in at Wednesday’s high of 4,680.25 and then at the contract and record high of 4,711.25. Buy stops likely reside just above those levels. Downside support for active traders is seen at this week’s low of 4,625.25 and then at 4,600.00. Sell stops likely reside below those levels. Wyckoff’s Intra-day Market Rating: 6.0

December Nasdaq index futures: Prices are higher in early U.S. trading. Prices last week hit a record high. Shorter-term moving averages (4- 9-and 18-day) are neutral early today. The 4-day moving average is even with the 9-day. The 9-day average is above the 18-day. Short-term oscillators (RSI, slow stochastics) are neutral early today. Shorter-term technical resistance is seen at Wednesday’s high of 16,243.00 and the at the contract and record high of 16,448.50. Buy stops likely reside just above those levels. On the downside, shorter-term support is seen at this week’s low of 15,896.50 and then at and then at 15,750.00. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 6.0.

U.S. TREASURY BONDS AND NOTES FUTURES

December U.S. T-Bonds: Prices are a bit 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. 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 163 even and then at this week’s high of 164 1/32. Buy stops likely reside just above those levels. Shorter-term support lies at this week’s low of 161 9/32 and then at 161 even. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.5

December U.S. T-Notes: Prices are slightly 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. The 9-day is above the 18-day moving average. Oscillators (RSI, slow stochastics) are bearish early today. Shorter-term resistance is seen at 131.00.0 and then at 131.08.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at the overnight low of 130.15.0 and then at 130.08.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.5

EURO CURRENCY

The December Euro currency futures are lower and hit a 16-month low 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 bearish early today. The Euro currency finds shorter-term technical resistance at 1.1500 and then at 1.1550. Buy stops likely reside just above those levels. Shorter-term support is seen at the overnight low of 1.1460 and then at 1.1400. Sell stops likely reside just below those levels. Wyckoff’s Intra Day Market Rating: 4.0

NYMEX CRUDE OIL

Nymex crude oil prices are lower in early U.S. trading. Bulls have the firm near-term technical advantage but there are stiff overhead resistance levels just above the market that have turned back rallies. The shorter-term moving averages 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 (RSI and slow stochastics) are bearish early today. Look for buy stops to reside just above technical resistance at the overnight high of $82.16 and then at $83.00. Look for sell stops just below technical support at the overnight low of $80.20 and then at $80.00. Wyckoff’s Intra-Day Market Rating: 4.0

GRAINS

U.S. grain futures were mixed to weaker overnight. Key for soybeans in the near term is the soybean meal futures market. Meal is now trending higher, which begins to signal a market bottom is close at hand for soybeans. Corn and wheat bulls have the near-term technical advantage. Corn is presently following the lead of the stronger wheat market.

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, November 10–Jim Wyckoff’s Morning Markets Report

Global stock markets were mixed in overnight trading. The U.S. stock indexes are pointed to weaker openings when the New York day session begins. Traders and investors are a bit more risk-averse at mid-week–paying more attention to the prospects for rising and even problematic price inflation. China’s producer price index on Wednesday was reported up 13.5% in October, year-on-year, and up from a 10.7% rise in September. That is the fastest factory gate price rise on recent record. Extreme weather and coal shortages are being reflected in China’s rising PPI.

Meantime, the U.S. consumer price index for October is due out today and is expected to come in at up 0.6% from September and up 5.9%, year-on-year. If those numbers are met or exceeded it would be the highest U.S. CPI reading in over 30 years. Tuesday’s U.S. producer price index showed a rise of 8.6%, year-on-year.

The key outside markets today see the U.S. dollar index higher. Nymex crude oil prices are weaker and trading around $83.75 a barrel. Meantime, the 10-year U.S. Treasury note yield is presently fetching 1.481%. 

Other U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the weekly jobless claims report, real earnings, monthly wholesale trade, the weekly DOE liquid energy stocks report and the monthly Treasury budget statement. Thursday is a U.S. federal holiday and thus the weekly jobless claims report is out today.

–Jim

U.S. STOCK INDEXES

December S&P 500 e-mini futures: Prices are weaker in early U.S. trading but not far below last week’s record high. Bulls have the solid overall near-term technical advantage as prices are trending up. The shorter-term moving averages (4-, 9- and 18-day) are bullish early today. The 4-day moving average is above the 9-day and 18-day. The 9-day is above the 18-day moving average. Short-term oscillators (RSI, slow stochastics) are bearish early today. Today, shorter-term technical resistance comes in at the contract and record high of 4,711.25 and then at 4,750.00. 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: 4.5

December Nasdaq index futures: Prices are lower in early U.S. trading. Prices last week hit a record high. Shorter-term moving averages (4- 9-and 18-day) are bullish early today. The 4-day moving average is above 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 16,300.00 and the at the contract and record high of 16,448.50. Buy stops likely reside just above those levels. On the downside, shorter-term support is seen at 16,000.00 and then at and then at 15,850.00. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.5.

U.S. TREASURY BONDS AND NOTES FUTURES

December U.S. T-Bonds: 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. 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 163 22/32 and then at this week’s high of 164 1/32. Buy stops likely reside just above those levels. Shorter-term support lies at 163 even and then at 162 9/32. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0

December 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. 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 131.25.0 and then at last week’s high of 131.30.5. Buy stops likely reside just above those levels. Shorter-term technical support lies at this week’s low of 131.08.0 and then at 131.00.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0

EURO CURRENCY

The December 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. 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 1.1600 and then at last week’s high of 1.1625. Buy stops likely reside just above those levels. Shorter-term support is seen at the November low of 1.1520 and then at 1.1500. Sell stops likely reside just below those levels. Wyckoff’s Intra Day Market Rating: 4.0

NYMEX CRUDE OIL

Nymex crude oil prices are weaker in early U.S. trading. Bulls have the firm near-term technical advantage. 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 neutral early today. Look for buy stops to reside just above technical resistance at the overnight high of $84.97 and then at the October high of $85.41. Look for sell stops just below technical support at Tuesday’s low of $81.78 and then at this week’s low of $81.05. Wyckoff’s Intra-Day Market Rating: 4.5

GRAINS

U.S. grain futures were mixed overnight. Tuesday’s monthly USDA supply and demand report was a bit bullish for soybeans. However, key for soybeans is the soybean meal market. Meal is now trending higher, which begins to signal a market bottom is close at hand for soybeans. Corn and wheat bulls have the near-term technical advantage, but corn bulls have faded.

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, November 9–Jim Wyckoff’s Morning Markets Report

Global stock markets were mixed in overnight trading. The U.S. stock indexes are pointed to mixed openings when the New York day session begins. There remains little risk aversion in the global marketplace at present. Recent positive news on the Covid-19 front—falling infection rates in the U.S. and new, powerful drugs to combat the virus—have contributed to the upbeat marketplace attitudes and are also helping to lift equities markets. For now, traders and investors are pushing aside the growing prospects for rising and even problematic price inflation. Speaking of inflation, the U.S. data point of the day is the producer price index report for October, which is seen coming in at up 0.6% from September. The September report showed a rise of 0.5%. A hotter PPI reading is likely to impact several markets, including bonds, gold, currency markets and the U.S. stock market.

In overnight news, Bitcoin prices rose to another record high near $68,000.

The key outside markets today see the U.S. dollar index weaker on a corrective pullback after prices last week hit a new high for the year. Nymex crude oil prices are higher and trading around $82.35 a barrel. Meantime, the 10-year U.S. Treasury note yield is presently fetching 1.482%. 

Other U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and chain stores sales indexes, and the NFIB small business index.

–Jim

U.S. STOCK INDEXES

December S&P 500 e-mini futures: Prices are slightly up in early U.S. trading and not far below last Friday’s record high. Bulls have the solid overall near-term technical advantage as prices are trending up. The shorter-term moving averages (4-, 9- and 18-day) are bullish early today. The 4-day moving average is above the 9-day and 18-day. The 9-day is above the 18-day moving average. Short-term oscillators (RSI, slow stochastics) are neutral early today. Today, shorter-term technical resistance comes in at the contract and record high of 4,711.25 and then at 4,750.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at last Friday’s low of 4,667.50 and then at 4,650.00. Sell stops likely reside below those levels. Wyckoff’s Intra-day Market Rating: 5.5

December Nasdaq index futures: Prices are a bit firmer in early U.S. trading. Prices last Friday hit a record high. Shorter-term moving averages (4- 9-and 18-day) are bullish early today. The 4-day moving average is above the 9-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 the  contract and record high of 16,448.50 and then at 16,500.00. Buy stops likely reside just above those levels. On the downside, shorter-term support is seen at 16,129.50 and then at and then at 16,000.00. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.5.

U.S. TREASURY BONDS AND NOTES FUTURES

December 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 bullish early today. Shorter-term technical resistance is seen at the overnight high of 163 4/32 and then at 163 18/32. Buy stops likely reside just above those levels. Shorter-term support lies at the overnight low of 162 9/32 and then at 162 even. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 6.0

December 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 bullish early today. Shorter-term resistance is seen at Monday’s high of 131.25.5 and then at last week’s high of 131.30.5. Buy stops likely reside just above those levels. Shorter-term technical support lies at 131.15.0 and then at this week’s low of 131.08.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 6.0

EURO CURRENCY

The December Euro currency futures are slightly higher 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 early today. The Euro currency finds shorter-term technical resistance at last week’s high of 1.1625 and then at 1.1650. Buy stops likely reside just above those levels. Shorter-term support is seen at this week’s low of 1.1558 and then at last week’s low of 1.1520. Sell stops likely reside just below those levels. Wyckoff’s Intra Day Market Rating: 5.5

NYMEX CRUDE OIL

Nymex crude oil prices are a bit higher in early U.S. trading. Bulls have the near-term technical advantage but have become wobbly recently. 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 $83.42 and then at $84.00. Look for sell stops just below technical support at Monday’s low of $81.05 and then at $80.00. Wyckoff’s Intra-Day Market Rating: 5.5

GRAINS

U.S. grain futures were firmer overnight on position evening ahead of Tuesday’s monthly USDA supply and demand report. That report is expected to favor the bearish camp—especially in soybeans. Look for more active trading following the 11:00 a.m. CST release. Corn and wheat bulls have the near-term technical advantage, while soybean bears have the 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