Daily Morning Report

Monday, September 27–Jim Wyckoff’s Morning Markets Report

Global stock markets were mixed but mostly firmer in overnight trading. The U.S. stock indexes are also pointed to mixed openings when the New York day session begins. Focus this week is on U.S. government spending. President Biden’s infrastructure package is set for a House of Representatives vote on Thursday, while the U.S. government’s funding will expire at midnight Thursday, which if not extended, would shut down part of the government Friday.

In other news, European countries and China are experiencing energy shortages that are not expected to be resolved anytime soon. That suggests crude oil and natural gas prices will remain elevated for some time to come. That’s a bullish underlying element for much of the raw commodity sector.

The key outside markets today see the U.S. dollar index slightly firmer. Nymex crude oil futures prices are higher and trading around $75.00 a barrel The 10-year U.S. Treasury note yield is presently fetching 1.446%. For perspective, the German 10-year bund is trading at minus 0.238% and the U.K. 10-year gilt at 0.831%.

U.S. economic data due for release Monday includes durable goods orders and the Texas manufacturing outlook survey.

–Jim

U.S. STOCK INDEXES

December 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 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 overnight high of 4,472.00 and then at 4,500.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at Friday’s low of 4,410.75 and then at 4,385.75. Sell stops likely reside below those levels. Wyckoff’s Intra-day Market Rating: 5.0

December Nasdaq index futures: Prices are lower in early U.S. trading. Bulls have the overall chart advantage. 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 below the 18-day. Short-term oscillators (RSI, slow stochastics) are neutral early today. Shorter-term technical resistance is seen at the overnight high of 15,399.25 and then at 15,500.00. Buy stops likely reside just above those levels. On the downside, shorter-term support is seen at 15,176.75 and then at 15,000.00. 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 and hit a 2.5.-month low in early U.S. trading. Prices have also seen a bearish downside “breakout” from a trading range at higher levels. 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 161 8/32 and then at 162 even. Buy stops likely reside just above those levels. Shorter-term support lies at the overnight low of 160 9/32 and then at 160 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 and hit a 2.5-month low 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 resistance lies at 132.00.0 and then at the overnight high of 132.05.5. Buy stops likely reside just above those levels. Shorter-term technical support lies at the overnight low of 131.23.0 and then at 131.18.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0

EURO CURRENCY

The December Euro currency futures are slightly lower and hit a five-week 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 to bearish early today. The Euro currency finds shorter-term technical resistance at last week’s high of 1.1775 and then at 1.1800. Buy stops likely reside just above those levels. Shorter-term support is seen at the August low of 1.1690 and then at 1.1650. 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 2.5-month high overnight. 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 the overnight high of $75.33 and then at $76.00. Look for sell stops just below technical support at the overnight low of $74.16 and then at $73.00. Wyckoff’s Intra-Day Market Rating: 6.5

GRAINS

U.S. grain futures were mixed overnight. Look for the grains to continue to be more impacted by outside market forces—namely global stock markets–for the near term. The corn and soybean market bears still have the near-term technical advantage, while the wheat bulls are showing resilience and have the slight near-term technical advantage. On tap today is the weekly USDA export inspections report.

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

Here is what the Commodity Futures Trading Commission

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

Jim Wyckoff

Friday, September 24–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly weaker in overnight trading. The U.S. stock indexes are also pointed to lower openings when the New York day session begins. There is some keener risk aversion to end the trading week, as the Chinese property giant Evergrande may have missed its $83 million debt payment that was due Thursday. There was no announcement the payment had been made, so many traders and investors are taking that to mean no payment was made Thursday. There are worries one of the biggest companies in the world’s second-largest economy being on the verge of insolvency could have a contagion effect not only in China but around the globe. History shows that when a financial market contagion begins, it’s very hard to contain. Mainly, it’s a crisis of confidence as traders and investors seek to pull their money out of riskier assets, and then the exit doors become clogged.

Also, it appears the marketplace is taking Wednesday’s FOMC meeting results, including Fed Chairman Powell’s comments at his press conference, to be more hawkish on U.S. monetary policy than at first reckoned. U.S. Treasury bond yields have risen the past two trading sessions, hitting the highest level since July. The yield on the benchmark U.S. 10-year Treasury note is presently fetching 1.41%. Powell is set to speak at a virtual event, along with other Federal Reserve officials, at 10:00 a.m. EDT Friday.

Meantime, the U.S. Congress is debating about how to extend the U.S. debt ceiling. Treasury Secretary Janet Yellen said the government will run out of money sometime in October. While looming over the marketplace, this situation has played out more than once over recent years, but it could still inject some anxiety into the marketplace, if the government actually nears a shutdown.

In other overnight news, China’s central bank declared all crypto-currency transactions to be illegal. China officials said the move was made to maintain national security and social stability. Bitcoin prices are down on the news.

The key outside markets today see the U.S. dollar index firmer. Nymex crude oil futures prices are near steady and trading around $73.35 a barrel

U.S. economic data due for release Friday is light and includes new residential sales.

–Jim

U.S. STOCK INDEXES

December S&P 500 e-mini futures: Prices are a bit weaker in early U.S. trading. The shorter-term moving averages (4-, 9- and 18-day) are bearish early today. The 4-day moving average is below the 9-day and 18-day. The 9-day is below the 18-day moving average. Short-term oscillators (RSI, slow stochastics) are neutral early today. Today, shorter-term technical resistance comes in at this week’s high of 4,455.00 and then at 4,480.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at Thursday’s low of 4,385.75 and then at 4,350.00. 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. Bulls have the overall chart advantage. 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 neutral early today. Shorter-term technical resistance is seen at this week’s high of 15,347.00 and then at 15,500.00. Buy stops likely reside just above those levels. On the downside, shorter-term support is seen at 15,100.00 and then at 15,000.00. 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 near steady in early U.S. trading. Bulls have the firm overall near-term technical advantage but trading has been choppy and sideways at higher levels. Shorter-term moving averages (4- 9- 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. Oscillators (RSI, slow stochastics) are neutral early today. Shorter-term technical resistance is seen at 163 even and then at 164 even. Buy stops likely reside just above those levels. Shorter-term support lies at the overnight low of 161 10/32 and then at 161 even. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.0

December U.S. T-Notes: Prices are near steady in early U.S. trading. Shorter-term moving averages (4- 9- 18-day) are bearish early today. The 4-day moving average is below the 9-day. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral early today. Shorter-term resistance lies at 132.16.0 and then at 132.24.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at the overnight low of 132.03.0 and then at 132.00.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.0

EURO CURRENCY

The December Euro currency futures are slightly 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 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 this week’s high of 1.1775 and then at 1.1800. Buy stops likely reside just above those levels. Shorter-term support is seen at the this week’s low of 1.1701 and then at the August low of 1.1690. Sell stops likely reside just below those levels. Wyckoff’s Intra Day Market Rating: 4.5

NYMEX CRUDE OIL

Nymex crude oil prices are near steady and hit a six-week high overnight. 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 the overnight high of $73.66 and then at $74.00. Look for sell stops just below technical support at $72.00 and then at $71.00. Wyckoff’s Intra-Day Market Rating: 5.5

GRAINS

U.S. grain futures were lower overnight, amid keener risk aversion to end the trading week. Look for the grains to continue to be more impacted by outside market forces—namely global stock markets–for the near term. The corn and soybean market bears still have the near-term technical advantage, while the wheat bulls are showing resilience and 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

Thursday, September 23–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly up in overnight trading. The U.S. stock indexes are also pointed to higher openings when the New York day session begins. Risk appetite is increasing late this week, following Monday’s sharp sell off in U.S. and global stock markets. The marketplace at present feels the troubled Chinese property giant, Evergrande, will not create a contagion effect in financial markets. Most believe the Chinese government will not let Evergrande fail. The firm had an $83 million interest payment due Thursday and it is not known if the payment was made.

The conclusion of the Federal Reserve’s FOMC meeting Wednesday afternoon saw the U.S. central bank make no monetary policy changes, but it did set the table for future tapering of its bond-buying program, and an increase in its key interest rate in 2022. Fed Chairman Powell at his press conference sounded upbeat on U.S. economic and jobs-growth prospects. Judging by the positive reactions of stock and financial markets, the Fed meeting’s results, while not leaning dovish, were not too hawkish on U.S. monetary policy.

The Bank of England held its regular monetary policy meeting Thursday and as expected made no major changes, leaving its key interest rate at 0.1%.

The U.S. government is grappling with extending the U.S. debt ceiling. Treasury Secretary Janet Yellen said the government will run out of money sometime in October. While looming over the marketplace, this situation has played out more than once over recent years, but it could still inject some anxiety into the marketplace, if the government actually nears a shutdown.

The key outside markets today see the U.S. dollar index lower. Nymex crude oil futures prices are a bit weaker and trading around $72.00 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 1.335%. 

U.S. economic data due for release Thursday includes the weekly jobless claims report, the Chicago Fed national activity index, the U.S. flash services and manufacturing PMIs, the Kansas City Fed manufacturing survey, and leading economic indicators.

–Jim

U.S. STOCK INDEXES

December S&P 500 e-mini futures: Prices are higher in early U.S. trading. A near-term price uptrend on the daily bar chart was negated earlier this week to still 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 bullish early today. Today, shorter-term technical resistance comes in at the overnight high of 4,424.75 and then at 4,450.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at the overnight low of 4,385.75 and then at 4,350.00. 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. Bulls have the overall chart advantage. 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 bullish early today. Shorter-term technical resistance is seen at this week’s high of 15,338.25 and then at 15,400.00. Buy stops likely reside just above those levels. On the downside, shorter-term support is seen at the overnight low of 15,176.00 and then at 15,000.00. 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 higher in early U.S. trading. Bulls have the solid overall near-term technical advantage. 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 early today. Shorter-term technical resistance is seen at this week’s high of 164 16/32 and then at 164 24/32. Buy stops likely reside just above those levels. Shorter-term support lies at Wednesday’s low of 163 12/32 and then at 163 even. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 6.0

December U.S. T-Notes: Prices are near steady 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 resistance lies at the overnight high of 133.06.0 and then at this week’s high of 133.12.5. Buy stops likely reside just above those levels. Shorter-term technical support lies at this week’s low of 132.24.0 and then at last week’s low of 132.20.5. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.0

EURO CURRENCY

The December 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 and 18-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 1.1775 and then at 1.1800. Buy stops likely reside just above those levels. Shorter-term support is seen at the overnight low of 1.1701 and then at the August low of 1.1690. Sell stops likely reside just below those levels. Wyckoff’s Intra Day Market Rating: 5.5

NYMEX CRUDE OIL

Nymex crude oil prices are modestly down 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 to bearish early today. Look for buy stops to reside just above technical resistance at the September high of $72.87 and then at the July high of $73.58. Look for sell stops just below technical support at $70.64 and then at this week’s low of $69.39. Wyckoff’s Intra-Day Market Rating: 4.5

GRAINS

U.S. grain futures were mixed to higher overnight. Better risk sentiment late this week is supporting the grains. On tap today is the weekly USDA export sales report. The corn and soybean market bears still have the near-term technical advantage, while the wheat bulls and bears are on a neutral playing field at present.     

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, September 22–Jim Wyckoff’s Morning Markets Report

Global stock markets were mixed in overnight trading. The U.S. stock indexes are also pointed to gains when the New York day session begins. There is less risk aversion in the global marketplace at mid-week. The troubled Chinese property giant, Evergrande, is still on traders’ and investors’ minds, but many believe the situation will not turn into a worldwide contagion and that the Chinese government will not let Evergrande fail. The company said it would make its latest debt payments—at least one of them anyway. The marketplace will continue to keep a close eye on the matter. China’s markets reopened today after a public holiday, with the Chinese stock market a bit weaker but not showing any stress.

Meantime, today sees the conclusion of the U.S. Federal Reserve’ two-day monetary policy meeting (FOMC). The Wednesday afternoon FOMC statement and press conference from Fed Chairman Jerome Powell will be closely scrutinized, especially any wording on the timing of the Fed’s likely tapering its bond-buying program and also inflation prospects. Markets could see some increased volatility in the immediate aftermath of the FOMC statement and during Powell’s press conference.

Just over the horizon, the U.S. government is now grappling with extending the U.S. debt ceiling. Treasury Secretary Janet Yellen said the government will run out of money sometime in October. The marketplace has seen this situation play out in years past, and it could inject some anxiety into the marketplace if the government actually nears a shutdown.

The key outside markets today see the U.S. dollar index near steady. Nymex crude oil futures prices are higher and trading around $71.70 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 1.34%. 

Other U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, existing home sales and the weekly DOE liquid energy stocks report.

–Jim

U.S. STOCK INDEXES

December S&P 500 e-mini futures: Prices are higher in early U.S. trading, on a corrective bounce from this week’s selling pressure. A near-term price uptrend on the daily bar chart has been negated 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 to bullish early today. Today, shorter-term technical resistance comes in at Tuesday’s high of 4,395.75 and then at this week’s high of 4,418.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at the overnight low of 4,321.25 and then at this week’s low of 4,293.75. Sell stops likely reside below those levels. Wyckoff’s Intra-day Market Rating: 6.0

December Nasdaq index futures: Prices are higher on a corrective rebound. Bulls have the overall chart advantage but have faded. A price uptrend on the daily bar chart is in jeopardy. 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 neutral to bullish early today. Shorter-term technical resistance is seen at Tuesday’s high of 15,163.25 and then at this week’s high of 15,338.25. Buy stops likely reside just above those levels. On the downside, shorter-term support is seen at the overnight low of 14,930.50 and then at this week’s low of 14,807.50. 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 weaker in early U.S. trading. Bulls have the solid overall near-term technical advantage. Shorter-term moving averages (4- 9- 18-day) are neutral early today. The 4-day moving average is even with 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 164 even and then at this week’s high of 164 6/32. Buy stops likely reside just above those levels. Shorter-term support lies at Tuesday’s low of 163 6/32 and then at Monday’s low of 162 19/32. 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 to bearish early today. Shorter-term resistance lies at this week’s high of 133.11.5 and then at 133.16.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at Tuesday’s low of 132.30.5 and then at this week’s low of 132.24.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0

EURO CURRENCY

The December Euro currency futures are slightly 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 and 18-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 1.1800 and then at 1.1850. Buy stops likely reside just above those levels. Shorter-term support is seen at this week’s low of 1.1719 and then at the August low of 1.1690. 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. 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 this week’s high of $71.93 and then at the September high of $72.87. Look for sell stops just below technical support at the overnight low of $70.74 and then at this week’s low of $69.39. Wyckoff’s Intra-Day Market Rating: 6.0

GRAINS

U.S. grain futures were higher overnight. Better risk sentiment at mid-week is helping to boost the grains. The corn and soybean market bears still have the near-term technical advantage, while the wheat bulls and bears are on a neutral playing field at present. If the stock and financial market turbulence resurfaces, buyers in the grains will again become very timid.    

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