Daily Morning Report

Tuesday, October 5–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, after suffering losses Monday. The U.S. stock indexes have hit three-month lows recently are now trending down on a near-term basis (daily charts). There are still risk-off attitudes in the marketplace early this week. Another Chinese property firm, Fantasia Group Holdings, missed a debt payment this week. Fantasia is not as big as the troubled Evergrande property firm, but there are growing concerns about a contagion effect in the financial markets. There are lingering worries about supply-chain bottlenecks that have many businesses unable to obtain their products in a timely fashion. That matter and rapidly rising energy prices have helped to stoke price inflation fears and even notions of a return of “stagflation” that gripped world economies in the early 1980s.

In other overnight news, the Euro zone reported its August producer prices up 1.1% from July and up 13.4%, year-on-year. Those numbers were in line with market expectations but are certainly “hot” inflation readings compared to recent years.

Australia’s central bank left its interest rates unchanged at its regular monetary policy meeting Tuesday, including keeping in place its bond-buying program. The bank said it won’t raise interest rates before 2024.

The key outside markets today see the U.S. dollar index modestly up. Nymex crude oil futures are slightly up and trading around $78.00 a barrel after hitting a nearly seven-year high on Monday. Meantime, the 10-year U.S. Treasury note yield is presently fetching 1.496%.

U.S. economic data due for release Tuesday includes the weekly chain store and Johnson Redbook retail sales reports, the international trade report, the U.S. and global services PMIs, the ISM report on business services, and the IDB/TIPP economic optimism index.

–Jim

U.S. STOCK INDEXES

December S&P 500 e-mini futures: Prices are modestly up in early U.S. trading, on a corrective bounce after Monday’s losses. The shorter-term moving averages (4-, 9- and 18-day) are bearish early today. The 4-day moving average is below the 9-day. The 9-day is below the 18-day moving average. Short-term oscillators (RSI, slow stochastics) are neutral early today. Today, shorter-term technical resistance comes in at Monday’s high of 4,362.00 and then at 4,389.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at the September low of 4,293.75 and then at 4,250.00. Sell stops likely reside below those levels. Wyckoff’s Intra-day Market Rating: 5.5

December Nasdaq index futures: Prices are slightly up in early U.S. trading, on tepid short covering. 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 14,835.00 and then at 14,926.00. Buy stops likely reside just above those levels. On the downside, shorter-term support is seen at Monday’s low of 14,367.75 and then at 14,200.00. 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 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 and 18-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 Monday’s high of 160 20/32 and then at 161 even. Buy stops likely reside just above those levels. Shorter-term support lies at Monday’s low of 159 15/32 and then at 159 even. 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 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 is seen at the overnight high of 132.04.5 and then at Monday’s high of 132.08.5. Buy stops likely reside just above those levels. Shorter-term technical support lies at 131.24.0 and then at 131.16.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0

EURO CURRENCY

The December Euro currency futures are down in early U.S. trading. Bears have the solid overall near-term technical advantage. The shorter-term moving averages for the Euro are bearish early today, as the 4-day is below the 9-day and 18-day. The 9-day is below the 18-day moving average. Short-term oscillators for the Euro are neutral to bearish early today. The Euro currency finds shorter-term technical resistance at Monday’s high of 1.1656 and then at 1.1690. Buy stops likely reside just above those levels. Shorter-term support is seen at the September low of 1.1578 and then at 1.1550. Sell stops likely reside just below those levels. Wyckoff’s Intra Day Market Rating: 4.0

NYMEX CRUDE OIL

Nymex crude oil prices are higher and hit a seven-year high in early U.S. trading. Bulls are in solid technical control. 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 early today. Look for buy stops to reside just above technical resistance at $79.00 and then at $80.00. Look for sell stops just below technical support at the overnight low of $77.47 and then at $76.00. Wyckoff’s Intra-Day Market Rating: 6.5

GRAINS

U.S. grain futures were weaker overnight. Harvesting of the U.S. corn and soybean crops is progressing rapidly and that’s bearish (commercial hedge pressure). The corn and soybean market bears have the near-term technical advantage, while the wheat bulls have the firm 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, October 4–Jim Wyckoff’s Morning Markets Report

Global stock markets were mixed but mostly lower in overnight trading. The U.S. stock indexes are pointed to lower openings when the New York day session begins. There is some risk aversion in the marketplace to start the trading week. Reports said trading in the Chinese property giant Evergrande was halted in Hong Kong Monday, amid reports the troubled firm may be acquired by another firm. China’s markets are closed for a national holiday, Golden Week, until Friday.

Meantime, the Biden administration and Democrats are continuing to struggle to agree on a big spending bill, while at the same time grappling with trying to get the U.S. debt limit raised so the government can pay its bills beyond this month.

Also, reports said mainland Chinese warplanes have been buzzing Taiwan airspace, with Taiwan officials asking the U.S. for help on the matter.

The key outside markets today see the U.S. dollar index weaker. Nymex crude oil futures are near steady and trading around $76.00 a barrel. Meantime, the 10-year U.S. Treasury note yield is presently fetching 1.491%.

U.S. economic data due for release Monday is light and includes manufacturers’ shipments and inventories.

–Jim

U.S. STOCK INDEXES

December S&P 500 e-mini futures: Prices are lower 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. 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 4,362.00 and then at 4,389.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at the overnight low of 4,315.00 and then the September low of 4,293.75. Sell stops likely reside below those levels. Wyckoff’s Intra-day Market Rating: 4.0

December Nasdaq index futures: Prices are 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 bearish early today. Shorter-term technical resistance is seen at the overnight high of 14,835.00 and then at 14,926.00. Buy stops likely reside just above those levels. On the downside, shorter-term support is seen at the overnight low of 14,633.50 and then at last week’s low of 14,537.00. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0.

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 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 bearish early today. Shorter-term technical resistance is seen at the overnight high of 160 20/32 and then at 161 even. Buy stops likely reside just above those levels. Shorter-term support lies at 159 even and then at last week’s low of 158 22/32. 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 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 is seen at the overnight high of 132.08.5 and then at 132.14.5. Buy stops likely reside just above those levels. Shorter-term technical support lies at 131.24.0 and then at 131.16.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0

EURO CURRENCY

The December Euro currency futures are up in early U.S. trading. Bears still have the solid overall near-term technical advantage. The shorter-term moving averages for the Euro are bearish early today, as the 4-day is below the 9-day and 18-day. The 9-day is below the 18-day moving average. Short-term oscillators for the Euro are bullish early today. The Euro currency finds shorter-term technical resistance at 1.1650 and then at 1.1690. Buy stops likely reside just above those levels. Shorter-term support is seen at the overnight low of 1.1603 and then at last week’s low of 1.1578. Sell stops likely reside just below those levels. Wyckoff’s Intra Day Market Rating: 5.5

NYMEX CRUDE OIL

Nymex crude oil prices are near steady in early U.S. trading. Bulls are still in solid technical control. 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 early today. Look for buy stops to reside just above technical resistance at last week’s high of $76.67 and then at $77.00. Look for sell stops just below technical support at $75.00 and then at $74.00. Wyckoff’s Intra-Day Market Rating: 5.0

GRAINS

U.S. grain futures were mixed to weaker overnight. The corn and soybean market bears have the near-term technical advantage, while the wheat bulls have the near-term technical advantage. Grain traders will look more to the outside markets in the near term, as the stock markets are wobbly at present and there is keener risk aversion in the marketplace. That’s bearish for grains. 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, October 1–Jim Wyckoff’s Morning Markets Report

Global stock markets were lower in overnight trading. The U.S. stock indexes are pointed to lower openings when the New York day session begins and set to post the worst weekly performance in around a year. Risk aversion has returned to the marketplace late this week. U.S. House Democrats are in-fighting on a government spending bill that was set to be voted upon Thursday but now appears to be putting in jeopardy President Biden’s economic agenda. Also, reports say China this week ordered its state-owned companies to secure energy supplies at all costs, including ordering coal producers to run at full speed even if they exceed annual quota limits. That news pushed natural gas and power prices to record highs in Europe. Rising energy prices heading into winter combined with central banks reeling in their heretofore easy money policies has many market watchers worried about slowing economic growth and rising inflation—called stagflation. And there are lingering worries about the troubled China property giant Evergrande. All of the above concerns are coming as the calendar turns to October, which has a history of sometimes being unkind to stock market investors.

In other overnight news, the Eurozone reported its September consumer price index at up 3.4%, year-on-year, versus a reading of up 3.0%. The September number is the fastest pace of inflation in 13 years.

The key outside markets today see the U.S. dollar index slightly lower after hitting a 12-month high Thursday. Nymex crude oil futures are weaker and trading around $74.40 a barrel. Meantime, the 10-year U.S. Treasury note yield is presently fetching 1.494%.

It’s a busy day for U.S. economic data releases Friday, including personal income and outlays, the U.S. manufacturing PMI, the ISM report on business manufacturing, the global manufacturing PMI, domestic auto industry sales, construction spending and the University of Michigan consumer sentiment survey.

–Jim

U.S. STOCK INDEXES

December S&P 500 e-mini futures: Prices are lower and hit a 2.5-month low 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. 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 4,311.00 and then at 4,350.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at the overnight low of 4,260.00 and then at the July low of 4,214.50. Sell stops likely reside below those levels. Wyckoff’s Intra-day Market Rating: 4.0

December Nasdaq index futures: Prices are lower and hit a nine-week 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 Thursday’s high of 14,883.50 and then at 15,000.00. Buy stops likely reside just above those levels. On the downside, shorter-term support is seen at the overnight low of 14,552.25 and then at the July low of 14,437.00. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0.

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 bearish early today. The 4-day moving average is below the 9-day and 18-day. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral early today. Shorter-term technical resistance is seen at the overnight high of 160 9/32 and then at 160 26/32. Buy stops likely reside just above those levels. Shorter-term support lies at the overnight low of 159 18/32 and then at this week’s low of 158 22/32. 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 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 bullish early today. Shorter-term resistance is seen at this week’s high of 132.05.5 and then at 132.10.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at the overnight low of 131.24.0 and then at 131.16.0. 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 up but near this week’s 14-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 and 18-day. The 9-day is below the 18-day moving average. Short-term oscillators for the Euro are neutral early today. The Euro currency finds shorter-term technical resistance at Thursday’s high of 1.1625 and then at 1.1650. Buy stops likely reside just above those levels. Shorter-term support is seen at the overnight low of 1.1578 and then at 1.1550. Sell stops likely reside just below those levels. Wyckoff’s Intra Day Market Rating: 5.0

NYMEX CRUDE OIL

Nymex crude oil prices are weaker in early U.S. trading. Bulls are still in solid technical control. 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 bearish early today. Look for buy stops to reside just above technical resistance at the overnight high of $75.57 and then at this week’s high of $76.67. Look for sell stops just below technical support at this week’s low of $73.14 and then at $72.00. Wyckoff’s Intra-Day Market Rating: 4.5

GRAINS

U.S. grain futures were mixed overnight. Thursday’s quarterly USDA grain stocks report was bearish for soybeans and corn. The corn and soybean market bears have the near-term technical advantage, while the wheat bulls have the slight near-term technical advantage. Grain traders will look more to the outside markets in the near term, as the stock markets are wobbly at present and there is keener risk aversion in the marketplace. That’s bearish for grains.

IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any traders and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.

Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%): 1. Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.

Jim Wyckoff

Thursday, September 30–Jim Wyckoff’s Morning Markets Report

Global stock markets were mixed to firmer in overnight trading. The U.S. stock indexes are pointed to higher openings when the New York day session begins. Risk aversion has abated a bit late this week, following Tuesday’s big sell off in the U.S. stock indexes. The U.S. Senate will vote today on a bill extending government funding until Dec. 3 to avoid a shutdown when the fiscal year ends at midnight tonight. The bill is expected to pass.

In other overnight news, China’s official manufacturing purchasing managers index (PMI) declined to 49.6 in September from 50.1 in August. That’s the first time in 18-months that the manufacturing reading fell below 50.0. However, the services PMI number was 53.2 in September from 47.5 in August. A reading below 50.0 suggests contraction and a reading above 50.9 suggests growth in the sector. Separately, Reuters reported China’s big property giant Evergrande has indeed missed debt payments to offshore bond holders this month.

Thursday is the last trading day of the month and of the quarter, which makes it an extra important trading day from a technical perspective.

The key outside markets today see the U.S. dollar index higher and hitting a 12-month high overnight. Nymex crude oil futures are near steady and trading around $74.75 a barrel. Meantime, the 10-year U.S. Treasury note yield is presently fetching 1.527%.

U.S. economic data due for release Thursday includes the weekly jobless claims report, the third estimate of second-quarter GDP, and the ISM Chicago business survey. Several Federal Reserve officials are slated to speak today, including Fed Chairman Powell, who with Treasury Secretary Yellen will speak to a House of Representatives committee.

–Jim

U.S. STOCK INDEXES

December S&P 500 e-mini futures: Prices are firmer 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. 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 4,389.00 and then at 4,400.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at this week’s low of 4,334.75 and then at 4,315.00. Sell stops likely reside below those levels. Wyckoff’s Intra-day Market Rating: 5.5

December Nasdaq index futures: Prices are firmer 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 14,926.00 and then at 15,000.00. Buy stops likely reside just above those levels. On the downside, shorter-term support is seen at the August low of 14,699.00 and then at 14,600.00. 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 firmer 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 and 18-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 Wednesday’s high of 160 3/32 and then at 160 26/32. Buy stops likely reside just above those levels. Shorter-term support lies at this week’s low of 158 22/32 and then at 158 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 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 to bearish early today. Shorter-term resistance Wednesday’s high of 131.25.5 and then at 132.00.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at 131.12.0 and then at this week’s low of 131.07.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.5

EURO CURRENCY

The December Euro currency futures are lower and hit a 14-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 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 the overnight high of 1.1625 and then at 1.1650. Buy stops likely reside just above those levels. Shorter-term support is seen at the overnight low of 1.1583 and then at 1.1550. Sell stops likely reside just below those levels. Wyckoff’s Intra Day Market Rating: 4.0

NYMEX CRUDE OIL

Nymex crude oil prices are a bit weaker in early U.S. trading. Bulls are still in solid technical control. 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 bearish early today. Look for buy stops to reside just above technical resistance at Wednesday’s high of $75.79 and then at this week’s high of $76.67. Look for sell stops just below technical support at this week’s low of $73.74 and then at $73.00. Wyckoff’s Intra-Day Market Rating: 4.5

GRAINS

U.S. grain futures were firmer overnight. The data points of the week for the grain markets are the quarterly USDA grain stocks and weekly exports sales reports on Thursday. Look for higher volatility after the data is released at noon EDT. The corn and soybean market bears still have the near-term technical advantage, while the wheat bulls have the slight 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