Daily Morning Report

Wednesday, September 29–Jim Wyckoff’s Morning Markets Report

Global stock markets were mixed in overnight trading, with Asian shares mostly weaker and European shares mostly up. The U.S. stock indexes are pointed to higher openings when the New York day session begins, after seeing sharp losses Tuesday. The marketplace appears a bit calmer at mid-week, following early-week risk aversion that was prompted by rising government bond yields and worries about energy shortages in major economies. It also appears financial markets had a bit of a delayed reaction to last week’s FOMC meeting that saw the Federal Reserve lay the groundwork for tapering its monthly bond-buying program that has been in place for quite some time.

President Biden’s infrastructure package is set for a House of Representatives vote on Thursday. Meantime, the U.S. government’s funding will run out at midnight Thursday, which if not extended, would shut down part of the government Friday.

The key outside markets today see the U.S. dollar index slightly higher and hitting an 11-month high overnight. Nymex crude oil futures are weaker and trading around $74.75 a barrel. Meantime, the 10-year U.S. Treasury note yield is presently fetching 1.501%.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, pending 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 after sharp losses suffered Tuesday. 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 early today. Today, shorter-term technical resistance comes in at 4,415.00 and then at Tuesday’s high of 4,442.00. 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: 6.0

December Nasdaq index futures: Prices are higher in early U.S. trading, on a rebound from sharp losses seen Tuesday. 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 15,000.00 and then at Tuesday’s high of 15,192.25. Buy stops likely reside just above those levels. On the downside, shorter-term support is seen at this week’s low of 14,740.75 and then at the August low of 14,699.00. 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 after hitting a 2.5.-month low in overnight 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 Tuesday’s high of 160 26/32 and then at this week’s high of 161 8/32. Buy stops likely reside just above those levels. Shorter-term support lies at the overnight low of 158 22/32 and then at 158 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 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 bullish early today. Shorter-term resistance 132.00.0 and then at this week’s high of 132.05.5. Buy stops likely reside just above those levels. Shorter-term technical support lies at 131.16.0 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: 6.0

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 1.1707 and then at this week’s high of 1.1743. Buy stops likely reside just above those levels. Shorter-term support is seen at the overnight low of 1.1671 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 weaker 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 bearish early today. Look for buy stops to reside just above technical resistance at this week’s high of $76.67 and then at $77.00. Look for sell stops just below technical support at the overnight low of $73.74 and then at $73.00. Wyckoff’s Intra-Day Market Rating: 4.5

GRAINS

U.S. grain futures were higher overnight. Risk aversion in the market place has receded a bit at mid-week and that’s supportive for the grains. The data points of the week for the grain markets are the quarterly USDA grain stocks and weekly exports sales reports on Thursday. 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

Tuesday, September 28–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly lower in overnight trading. The U.S. stock indexes are also pointed to lower openings when the New York day session begins. There is keener risk aversion in the marketplace early this week. Rising bond yields have gotten the attention of traders and investors. The 10-year U.S. Treasury note yield is presently fetching 1.529% and at a three-month high. The major central banks of the world are preparing to wind down their easy-money policies of the past many years and that’s bearish for bond prices.

Federal Reserve Chairman Powell and U.S. Treasury Secretary Yellen will appear before a Senate committee Tuesday morning to discuss the U.S. economy and monetary policy.

Also of concern, European countries and China are experiencing serious energy shortages that are not expected to be resolved anytime soon. Nymex crude oil futures prices are higher again today and trading around $76.25 a barrel. Meantime, natural gas futures prices are at a seven-year high. Rising energy prices heading into winter are sapping some trader and investor enthusiasm, especially in Europe, where some panic buying of gasoline is already occurring.

Focus this week is also 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. Some anxiety in the market place is already surfacing as Republicans shot down one plan to keep the government running. Democrats said they are working on another plan.

The other key outside market today sees the U.S. dollar index higher.

U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and chain store retail sales reports, the monthly house price index, the S&P Core-Logic home price indexes, the Richmond Fed business survey, and the consumer confidence index.

–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 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 bearish early today. Today, shorter-term technical resistance comes in at the overnight high of 4,442.00 and then at Monday’s high of 4,472.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at the overnight low of 4,388.00 and then at 4,375.00. Sell stops likely reside below those levels. Wyckoff’s Intra-day Market Rating: 4.0

December Nasdaq index futures: Prices are sharply lower in early U.S. trading. 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 bearish early today. Shorter-term technical resistance is seen at the overnight high of 15,192.25 and then at Monday’s high of 15,399.25. Buy stops likely reside just above those levels. On the downside, shorter-term support is seen at the September low of 14,807.50 and then at the August low of 14,699.00. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 3.0.

U.S. TREASURY BONDS AND NOTES FUTURES

December U.S. T-Bonds: Prices are sharply lower and hit a 2.5.-month low in early U.S. trading. Prices have 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 160 26/32 and then at Monday’s high of 161 8/32. Buy stops likely reside just above those levels. Shorter-term support lies at the overnight low of 159 7/32 and then at 159 even. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 3.0

December U.S. T-Notes: Prices are solidly lower and hit a three-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 the overnight high of 131.27.0 and then at 132.00.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at the overnight low of 131.09.0 and then at 131.00.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 3.5

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 Monday’s high of 1.1743 and then at last week’s high of 1.1775. Buy stops likely reside just above those levels. Shorter-term support is seen at the overnight low of 1.1688 and then at 1.1650. Sell stops likely reside just below those levels. Wyckoff’s Intra Day Market Rating: 3.5

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 $76.67 and then at $77.00. Look for sell stops just below technical support at the overnight low of $75.21 and then at Monday’s low of $74.16. Wyckoff’s Intra-Day Market Rating: 6.5

GRAINS

U.S. grain futures were mixed to weaker overnight. Risk aversion in the market place has the grain market bulls tentative today. 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 some 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

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