Daily Morning Report

Friday, August 27–Jim Wyckoff’s Morning Markets Report

Global stock markets were mixed in quieter trading overnight. The U.S. stock indexes are pointed to firmer openings when the New York day session begins. The terrorist bombings in Kabul, Afghanistan Thursday that killed over a dozen American soldiers and many more Afghans did not have a major impact on markets, but has tempered risk appetite in the marketplace late this week.

The annual Federal Reserve symposium being held in Jackson Hole, Wyoming late this week saw three Fed officials on Thursday say they favor tapering the central bank’s very accommodative monetary policy sooner rather than later—despite the growing concerns about the resurgence of the coronavirus and its potential impact on the U.S. and global economies. Fed Chair Jerome Powell is slated to speak virtually on Friday morning at 10:00 a.m. EDT. Many traders and investors had believed the Federal Reserve would extend its easy-money policies for a longer period of time than they had planned just a few weeks ago, due to the spreading Covid delta variant. Powell may still feel that way and may provide more clarity to his intentions this morning. Some market watchers believe Powell in his speech won’t tip his hand on timing of any Fed policy moves.

The key outside markets today see the U.S. dollar index slightly lower but still trending higher. Nymex crude oil futures prices are higher and trading around $68.40 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 1.341%. U.S. bond yields are in the rise this week, hinting that bond traders are concerned about U.S. monetary policy tightening coming from the Fed sooner rather than later.

U.S. economic data due for release Friday includes personal income and outlays, advance economic indicators, and 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. Bulls have the solid overall near-term technical advantage. 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 to bullish early today. Today, shorter-term technical resistance comes in at the contract high of 4,488.00 and then at 4,500.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at 4,450.00 and then at this week’s low of 4,426.00. 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. Bulls have the solid chart advantage. 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 average is above the 18-day. Short-term oscillators (RSI, slow stochastics) are neutral to bullish early today. Shorter-term technical resistance is seen at the contract high of 15,383.25 and then at 15,500.00. Buy stops likely reside just above those levels. On the downside, shorter-term support is seen at 15,200.00 and then at this week’s low of 15,076.50. 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 near steady 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 technical resistance is seen at 163 even and then at Wednesday’s high of 163 19/32. Buy stops likely reside just above those levels. Shorter-term support lies at 162 even and then at this week’s low of 161 25/32. 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 neutral early today. The 4-day moving average is below the 9-day and 18-day. The 9-day is even with the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral early today. Shorter-term resistance lies at Thursday’s high of 133.04.0 and then at 133.10.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at this week’s low of 132.25.5 and then at the August low of 132.21.5. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.0

EURO CURRENCY

The December Euro currency futures are slightly 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 neutral early today, as the 4-day is above 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 1.1803 and then at 1.1831. Buy stops likely reside just above those levels. Shorter-term support is seen at Wednesday’s low of 1.1751 and then at this week’s low of 1.1720. 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 and hit a two-week high in early U.S. trading. Bulls have momentum to suggest still more upside. The shorter-term moving averages are neutral early today as the 4-day is above the 9-day and 18-day. The 9-day is below the 18-day moving average. Short-term oscillators (RSI and slow stochastics) are bullish early today. Look for buy stops to reside just above technical resistance at the overnight high of $68.76 and then at $69.00. Look for sell stops just below technical support at the overnight low of $67.52 and then at $67.00. Wyckoff’s Intra-Day Market Rating: 6.5

GRAINS

U.S. grain futures were weaker overnight. Late-season rains across much of the U.S. Midwest have likely improved the corn and soybean crops, and that’s bearish. The grain markets may pause just ahead of harvest and ahead of the Sept. 10 USDA monthly supply and demand report, when new crop production estimates will be released by the agency.

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, August 26–Jim Wyckoff’s Morning Markets Report

Global stock markets were mixed to weaker overnight. The U.S. stock indexes are pointed to narrowly mixed openings and not far below this week’s record highs in the S&P 500 and Nasdaq. There is scant risk aversion in the marketplace this week.

Traders and investors are awaiting the annual Federal Reserve symposium being held in Jackson Hole, Wyoming late this week. Fed Chair Jerome Powell is slated to speak virtually on Friday. Many traders and investors believe the Federal Reserve will extend its easy-money policies for a longer period of time than they had planned just a few weeks ago, due to the spreading Covid delta variant.

The key outside markets today see the U.S. dollar index firmer and still trending higher. Nymex crude oil futures prices are weaker and trading around $67.75 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 1.346%. U.S. bond yields are in the rise this week, hinting that bond traders are at least a bit worried about a hawkish U.S. monetary policy tone coming from the Fed at this week’s Jackson Hole confab.

U.S. economic data due for release Thursday includes the weekly jobless claims report, the second estimate of second-quarter gross domestic product, including the PCE price index that the Fed watches closely for inflation. The PCE index was up 6.4% from the first quarter in the first GDP estimate of the second quarter. Also due out today is the Kansas City Fed manufacturing survey.

–Jim

U.S. STOCK INDEXES

December S&P 500 e-mini futures: Prices are slightly lower in early U.S. trading. Bulls have the solid overall near-term technical advantage. 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 high of 4,488.00 and then at 4,500.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at 4,450.00 and then at this week’s low of 4,426.00. Sell stops likely reside below those levels. Wyckoff’s Intra-day Market Rating: 5.0

December Nasdaq index futures: Prices are slightly lower in early U.S. trading. Bulls have the solid chart advantage. 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 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 high of 15,383.25 and then at 15,500.00. Buy stops likely reside just above those levels. On the downside, shorter-term support is seen at 15,200.00 and then at this week’s low of 15,076.50. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.0.

U.S. TREASURY BONDS AND NOTES FUTURES

December U.S. T-Bonds: Prices are near steady 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 bearish early today. Shorter-term technical resistance is seen at 163 even and then at Wednesday’s high of 163 19/32. Buy stops likely reside just above those levels. Shorter-term support lies at 162 even and then at 161 16/32. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 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 neutral early today. The 4-day moving average is below the 9-day and 18-day. The 9-day is even with the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral to bearish early today. Shorter-term resistance lies at the overnight high of 133.04.0 and then at 133.10.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at the overnight low of 132.28.0 and then at the August low of 132.21.5. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.0

EURO CURRENCY

The December Euro currency futures are slightly 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 neutral early today, as the 4-day is above the 9-day. The 9-day is below the 18-day moving average. Short-term oscillators for the Euro are bullish early today. The Euro currency finds shorter-term technical resistance at 1.1831 and then at 1.1865. Buy stops likely reside just above those levels. Shorter-term support is seen at Wednesday’s low of 1.1751 and then at this week’s low of 1.1720. Sell stops likely reside just below those levels. Wyckoff’s Intra Day Market Rating: 5.5

NYMEX CRUDE OIL

Nymex crude oil prices are weaker in early U.S. trading on a corrective pullback from this week’s strong gains. 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 this week’s high of $68.54 and then at $69.00. Look for sell stops just below technical support at Wednesday’s low of $66.92 and then at $66.00. Wyckoff’s Intra-Day Market Rating: 4.5

GRAINS

U.S. grain futures were mixed overnight. Bulls have regained some footing this week. On tap today is the weekly USDA export sales report.

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

Here is what the Commodity Futures Trading Commission

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

Jim Wyckoff

Wednesday, August 25–Jim Wyckoff’s Morning Markets Report

Global stock markets were mixed to weaker overnight. The U.S. stock indexes are pointed to slightly higher openings and at or near record highs when the New York day session begins. Risk appetite is keener this week as attention of the marketplace is on the annual Federal Reserve symposium held in Jackson Hole, Wyoming late this week. Fed Chair Jerome Powell is slated to speak virtually on Friday. Many traders and investors are thinking the Federal Reserve will decide to extend its easy-money policies for a longer period of time than they had reckoned just a few weeks ago, due to the rapidly spreading Covid delta variant. The marketplace that remains flush with cash continues to see much of that cash flowing into stock markets.

U.S. congressional Democrats on Tuesday agreed upon a $1 trillion spending bill for infrastructure, and that is also boosting risk appetite at mid-week.

Meantime, Asian stock markets were mostly weaker Wednesday on fears the surging coronavirus variant will once again dent economic growth in Asia.

In Europe, the closely watched German Ifo business expectations index fell in August for the second month in a row.

The key outside markets today see the U.S. dollar index a bit firmer and still trending higher. Nymex crude oil futures prices are higher and trading around $67.50 a barrel. This week’s strong rebound in crude prices suggests the market has put in a near-term bottom. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 1.30%.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, durable goods orders and the weekly DOE liquid energy stocks report.

–Jim

U.S. STOCK INDEXES

December S&P 500 e-mini futures: Prices are slightly firmer in early U.S. trading. Bulls have the solid overall near-term technical advantage and still have momentum. 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 to bullish early today. Today, shorter-term technical resistance comes in at the contract high of 4,481.50 and then at 4,500.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at this week’s low of 4,426.00 and then at 4,400.00. Sell stops likely reside below those levels. Wyckoff’s Intra-day Market Rating: 5.5

December Nasdaq index futures: Prices are slightly firmer in early U.S. trading. Bulls have the solid chart advantage and have momentum. 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 average is above the 18-day. Short-term oscillators (RSI, slow stochastics) are neutral to bullish early today. Shorter-term technical resistance is seen at the overnight contract high of 15,368.25 and then at 15,500.00. Buy stops likely reside just above those levels. On the downside, shorter-term support is seen at 15,200.00 and then at this week’s low of 15,076.50. 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. Shorter-term moving averages (4- 9- 18-day) are bullish early today. The 4-day moving average is above the 9-day and 18-day. The 9-day is above the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral to bearish early today. Shorter-term technical resistance is seen at 164 even and then at this week’s high of 164 10/32. Buy stops likely reside just above those levels. Shorter-term support lies at 163 even and then at 162 16/32. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0

December U.S. T-Notes: Prices are weaker 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 even with the 18-day moving average. Oscillators (RSI, slow stochastics) are bearish early today. Shorter-term resistance lies at the overnight high of 133.15.0 and then at this week’s high of 133.22.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at 133.05.0 and then at 133.00.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0

EURO CURRENCY

The December Euro currency futures are weaker in early U.S. trading. Bears have the solid overall near-term technical advantage. The shorter-term moving averages for the Euro are neutral early today, as the 4-day is even with the 9-day. The 9-day is below the 18-day moving average. Short-term oscillators for the Euro are neutral early today. The Euro currency finds shorter-term technical resistance at this week’s high of 1.1790 and then at 1.1831. Buy stops likely reside just above those levels. Shorter-term support is seen at this week’s low of 1.1720 and then at last week’s 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 in early U.S. trading. It appears a near-term market bottom is in place. The shorter-term moving averages are bearish early today as the 4-day is below the 9-day. The 9-day is below the 18-day moving average. Short-term oscillators (RSI and slow stochastics) are neutral to bullish early today. Look for buy stops to reside just above technical resistance at $68.00 and then at $69.00. Look for sell stops just below technical support at the overnight low of $66.92 and then at $66.00. Wyckoff’s Intra-Day Market Rating: 5.0

GRAINS

U.S. grain futures were weaker overnight. Corn and soybeans saw corrective pullbacks overnight after good gains posted Tuesday. Late-season rains in the U.S. Midwest and northern Plains states are providing some benefit to the crops and that’s a bit bearish at mid-week.

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, August 24–Jim Wyckoff’s Morning Markets Report

Global stock markets were flat to firmer overnight. The U.S. stock indexes are pointed to higher openings and at or near record highs when the New York day session begins. The U.S. stock index bulls are back in full technical command, to suggest still more upside in the near term. Fundamentally, traders are presently putting more emphasis on strong corporate earnings reports and recent solid U.S. economic data, and less emphasis on the surging coronavirus that may have the potential to damage major economies again in the coming months. This long-time market watcher is wondering if that pendulum will swing the other way after the U.S. Labor Day holiday, when the stock and financial markets enter what can be the historically rough waters of September and October.

The attention of the marketplace this week is on the annual Federal Reserve symposium held in Jackson Hole, Wyoming, starting Thursday. Fed Chair Jerome Powell is slated to speak virtually on Friday. The confab has been pared back a bit and parts of it will be virtual this year due to the spreading delta variant of the coronavirus. Many traders and investors are now thinking the Federal Reserve will lean less hawkish on U.S. monetary policy at the Fed symposium, due to the rapidly spreading Covid variant.

The key outside markets today see the U.S. dollar index a bit firmer and still trending higher. Nymex crude oil futures prices are higher and trading around $66.60 a barrel. This week’s strong rebound in crude prices suggests the market has put in a near-term bottom. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 1.267%.

U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and chain store sales indexes, the Richmond Fed business survey, and new residential sales.

–Jim

U.S. STOCK INDEXES

December S&P 500 e-mini futures: Prices are firmer and hit a contract and record high in early U.S. trading. Bulls have the solid overall near-term technical advantage and have momentum. 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 bullish early today. Today, shorter-term technical resistance comes in at the overnight contract high of 4,481.50 and then at 4,500.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at Monday’s low of 4,426.00 and then at 4,400.00. Sell stops likely reside below those levels. Wyckoff’s Intra-day Market Rating: 6.0

December Nasdaq index futures: Prices are firmer and hit a contract and record high in early U.S. trading. Bulls have the solid chart advantage and have regained momentum. 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 average is above the 18-day. Short-term oscillators (RSI, slow stochastics) are bullish early today. Shorter-term technical resistance is seen at the overnight contract high of 15,368.00 and then at 15,500.00. Buy stops likely reside just above those levels. On the downside, shorter-term support is seen at 15,200.00 and then at Monday’s low of 15,076.50. 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 lower in early U.S. trading. Shorter-term moving averages (4- 9- 18-day) are bullish early today. The 4-day moving average is above the 9-day and 18-day. The 9-day is above the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral early today. Shorter-term technical resistance is seen at this week’s high of 164 10/32 and then at last week’s high of 164 20/32. Buy stops likely reside just above those levels. Shorter-term support lies at the overnight low of 164 1/32 and then at 163 16/32. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0

December U.S. T-Notes: Prices are weaker 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 early today. Shorter-term resistance lies at this week’s high of 133.22.0 and then at 133.27.5. Buy stops likely reside just above those levels. Shorter-term technical support lies at this week’s low of 133.11.5 and then at 133.06.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.5

EURO CURRENCY

The December Euro currency futures are weaker 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 the overnight high of 1.1775 and then at 1.1800. Buy stops likely reside just above those levels. Shorter-term support is seen at this week’s low of 1.1720 and then at last week’s 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 solidly higher in early U.S. trading on short covering and bargain hunting after hitting a 2.5-month low on Monday. It appears a near-term market bottom is in place. 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 $67.50 and then at $68.00. Look for sell stops just below technical support at $66.00 and then at the overnight low of $65.41. Wyckoff’s Intra-Day Market Rating: 6.0

GRAINS

U.S. grain futures were mixed to higher overnight. Keener general marketplace risk appetite so far this week is friendly for the grain markets. A strong rally in crude oil prices this week is also a bullish outside element for the grains.

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

Here is what the Commodity Futures Trading Commission

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

Jim Wyckoff