Daily Morning Report

Monday, August 23–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly firmer overnight. The U.S. stock indexes are pointed to higher openings when the New York day session begins. The focus of the marketplace this week is on the annual Federal Reserve symposium held in Jackson Hole, Wyoming. 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. Early this week, traders and investors are reassessing recent notions the Federal Reserve will lean hawkish on U.S. monetary policy at the Fed symposium. The rapidly spreading Covid variant has many now thinking the Fed will have to wait longer to reel in its easy-money policies. Dallas Fed President Rob Kaplan said Friday he is rethinking his call for an early tapering process for the Fed’s bond purchases, due to the spreading virus and its potential impact on the U.S. economy.

It appears there is less risk aversion in the global marketplace to start the trading week. There is still a chaotic situation in now-Taliban-controlled Afghanistan, with people, including Americans, still try to get out of that country. However, it appears the markets are now looking past the matter. Veteran market watchers are well aware of what can be the historically turbulent months of September and October that lie just ahead for the stock and financial markets.

The key outside markets today see the U.S. dollar index weaker after hitting a 10.5-month high last Friday. Nymex crude oil futures prices are solidly higher and trading around $64.00 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 1.28%.

U.S. economic data due for release Monday includes the Chicago Fed national activity index, the U.S. flash and services PMIs, and existing home sales.

–Jim

U.S. STOCK INDEXES

September S&P 500 e-mini futures: Prices are firmer in early U.S. trading. Bulls have the solid overall near-term technical advantage and have regained momentum. The shorter-term moving averages (4-, 9- and 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. Short-term oscillators (RSI, slow stochastics) are neutral to bullish early today. Today, shorter-term technical resistance comes in at the contract high of 4,476.50 and then at 4,500.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at the overnight low of 4,433.50 and then at 4,400.00. Sell stops likely reside below those levels. Wyckoff’s Intra-day Market Rating: 6.0

September Nasdaq index futures: Prices are firmer 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 neutral early today. The 4-day moving average is below the 9-day and 18-day. The 9-day average is even with the 18-day. Short-term oscillators (RSI, slow stochastics) are bullish early today. Shorter-term technical resistance is seen at the contract high of 15,172.50 and then at 15,250.00. Buy stops likely reside just above those levels. On the downside, shorter-term support is seen at the overnight low of 15,086.50 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

September U.S. T-Bonds: 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 and 18-day. The 9-day is even with the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral early today. Shorter-term technical resistance is seen at the overnight high of 165 28/32 and then at last week’s high of 166 6/32. Buy stops likely reside just above those levels. Shorter-term support lies at 165 even and then at last week’s low of 164 17/32. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0

September 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 the overnight high of 134.06.0 and then at 134.14.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at last week’s low of 133.29.0 and then at 133.24.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0

EURO CURRENCY

The September Euro currency futures are higher in early U.S. trading, on a corrective bounce after hitting a 12-month low last week. 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 bullish early today. The Euro currency finds shorter-term technical resistance at 1.1749 and then at 1.1800. Buy stops likely reside just above those levels. Shorter-term support is seen at the overnight low of 1.1697 and then at last week’s low of 1.1669. Sell stops likely reside just below those levels. Wyckoff’s Intra Day Market Rating: 6.0

NYMEX CRUDE OIL

Nymex crude oil prices are solidly higher in early U.S. trading after hitting a 2.5-month low overnight. 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 the overnight high of $64.32 and then at $65.00. Look for sell stops just below technical support at $63.00 and then at the overnight low of $61.74. Wyckoff’s Intra-Day Market Rating: 4.0

GRAINS

U.S. grain futures were higher overnight on corrective bounces after last week’s losses. Keener general marketplace risk appetite to start the week is friendly for the grains. The key outside markets are bullish for the grains today—sharply higher crude oil prices and a weaker U.S. dollar index.

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, August 20–Jim Wyckoff’s Morning Markets Report

Global stock markets were lower overnight. The U.S. stock indexes are pointed to lower openings when the New York day session begins. The U.S. stock index bulls are fading as the indexes are headed for their worst week since June. The CBOE volatility index has risen to its highest level since May. Keener risk aversion has been in play all this week. Many raw commodity futures markets have been hit by the risk-off attitudes. The surging coronavirus delta strain is starting to more significantly impact global economies. The Federal Reserve this week said it remains concerned about the effects of the pandemic on economies and financial markets. While the Fed appears to be presently leaning toward tightening its monetary policy as early as this fall, some market watchers now wonder if the Fed will have to hold off on tightening if the virus continues to negatively impact businesses. Traders and investors are looking ahead to the annual Federal Reserve symposium in Jackson Hole, Wyoming, next week. More clarity on U.S. monetary policy is likely to come out of that meeting.

The key outside markets today see the U.S. dollar index slightly higher and hitting another 10.5-month high overnight. Nymex crude oil futures prices are lower and near the 2.5-month low hit Thursday and are trading around $63.25 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 1.232%.

There is no major U.S. economic data due for release Friday.

–Jim

U.S. STOCK INDEXES

September S&P 500 e-mini futures: Prices are lower in early U.S. trading. Bulls still have the overall near-term technical advantage but are fading and need to show fresh power soon to avoid chart damage. The shorter-term moving averages (4-, 9- and 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. Short-term oscillators (RSI, slow stochastics) are bearish early today. Today, shorter-term technical resistance comes in at the overnight high of 4,406.25 and then at 4,435.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at the overnight low of 4,371.75 and then at this week’s low of 4,347.75. Sell stops likely reside below those levels. Wyckoff’s Intra-day Market Rating: 4.0

September Nasdaq index futures: Prices are lower in early U.S. trading. Bulls still have the chart advantage but are fading a bit. 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 bearish to early today. Shorter-term technical resistance is seen at 15,000.00 and then at 15,100.00. Buy stops likely reside just above those levels. On the downside, shorter-term support is seen at the overnight low of 14,851.00 and then at this week’s low of 14,710.50. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0.

U.S. TREASURY BONDS AND NOTES FUTURES

September U.S. T-Bonds: Prices are firmer in early U.S. trading. Shorter-term moving averages (4- 9- 18-day) are neutral early today. The 4-day moving average is above the 9-day and 18-day. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are bullish early today. Shorter-term technical resistance is seen at the overnight high of 166 6/32 and then at the contract high of 167 4/32. Buy stops likely reside just above those levels. Shorter-term support lies at Thursday’s low of 165 4/32 and then at this week’s low of 164 17/32. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 6.0

September U.S. T-Notes: Prices are slightly higher 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 and 18-day. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are bullish early today. Shorter-term resistance lies at this week’s high of 134.19.5 and then at 134.25.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at Thursday’s low of 134.05.5 and then at this week’s low of 133.29.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.5

EURO CURRENCY

The September Euro currency futures are slightly higher in early U.S. trading, on a tepid bounce after hitting a 12-month low Thursday. 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 Thursday’s high of 1.1721 and then at Wednesday’s high of 1.1749. Buy stops likely reside just above those levels. Shorter-term support is seen at this week’s low of 1.1670 and then at 1.1650. 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 and near this week’s 2.5-month low in early U.S. trading. 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 bearish early today. Look for buy stops to reside just above technical resistance at the overnight high of $64.10 and then at $65.00. Look for sell stops just below technical support at this week’s low of $62.63 and then at $62.00. Wyckoff’s Intra-Day Market Rating: 4.0

GRAINS

U.S. grain futures were firmer overnight on corrective bounces after Thursday’s losses. Risk-off attitudes this week have been bearish for the grains. The key outside markets have also been bearish—sharply lower crude oil prices and a solidly higher U.S. dollar index. The big event of the week for the grain markets is the annual Pro Farmer Midwest Crop tour that ends Friday afternoon with U.S. corn and soybean yield estimates.

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 19–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly lower overnight. The U.S. stock indexes are pointed to solidly lower openings when the New York day session begins. The U.S. stock index bulls are fading this week and need to stop the bleeding very soon to avoid near-term technical damage being inflicted. Risk-off attitudes are in play this week. It appears the summertime doldrums have come to an abrupt and early end this year. The surging coronavirus delta strain is keeping traders and investors tentative, especially heading into what history shows can be the rough months of September and October for the stock markets. The chaos in Afghanistan and the botched U.S. pullout are also causing market jitters. And Wednesday afternoon’s FOMC minutes showed a still wary Fed that remains concerned about the effects of the pandemic on economies and financial markets. The Fed also continues to lean toward tightening its monetary policy as early as this fall. Traders and investors are looking ahead to the annual Federal Reserve symposium in Jackson Hole, Wyoming, next week. More clarity on U.S. monetary policy and the timing of any policy moves are likely to be revealed at that meeting.

The key outside markets today see the U.S. dollar index higher and hitting a 10.5-month high overnight. Nymex crude oil futures prices are sharply lower, hit a 2.5-month low overnight and  are trading around $63.00 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 1.243%.

U.S. economic data due for release Thursday includes the weekly jobless claims report, the Philadelphia Fed business survey and leading economic indicators.

–Jim

U.S. STOCK INDEXES

September S&P 500 e-mini futures: Prices are solidly lower and hit a four-week low in early U.S. trading. Bulls still have the overall near-term technical advantage but are fading and need to show fresh power soon to avoid chart damage. The shorter-term moving averages (4-, 9- and 18-day) are neutral early today. The 4-day moving average is below the 9-day. The 9-day is above the 18-day moving average. Short-term oscillators (RSI, slow stochastics) are bearish early today. Today, shorter-term technical resistance comes in at the overnight high of 4,399.50 and then at 4,425.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at the overnight low of 4,347.75 and then at 4,325.00. Sell stops likely reside below those levels. Wyckoff’s Intra-day Market Rating: 3.5

September Nasdaq index futures: Prices are lower and hit a four-week low in early U.S. trading. Bulls still have the chart advantage but are fading and need to show fresh power soon. Shorter-term moving averages (4- 9-and 18-day) are neutral early today. The 4-day moving average is below the 9-day and 18-day. The 9-day average is even with the 18-day. Short-term oscillators (RSI, slow stochastics) are bearish to early today. Shorter-term technical resistance is seen at the overnight high of 14,874.75 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 14,710.50 and then at 14,600.00. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0.

U.S. TREASURY BONDS AND NOTES FUTURES

September U.S. T-Bonds: Prices are solidly higher 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 and 18-day. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are bullish early today. Shorter-term technical resistance is seen at the overnight high of 166 6/32 and then at the contract high of 167 4/32. Buy stops likely reside just above those levels. Shorter-term support lies at the overnight low of 165 4/32 and then at this week’s low of 164 17/32. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 6.5

September U.S. T-Notes: Prices are higher 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 bullish early today. Shorter-term resistance lies at this week’s high of 134.19.5 and then at 134.25.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at the overnight low of 134.05.5 and then at this week’s low of 133.29.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 6.0

EURO CURRENCY

The September Euro currency futures are weaker in early U.S. trading and hit a 12-month low overnight. Bears have the solid overall near-term technical advantage. The shorter-term moving averages for the Euro are bearish early today, as the 4-day is below the 9-day. The 9-day is below the 18-day moving average. Short-term oscillators for the Euro are neutral to bearish early today. The Euro currency finds shorter-term technical resistance at Wednesday’s high of 1.1749 and then at Tuesday’s high of 1.1790. Buy stops likely reside just above those levels. Shorter-term support is seen at the overnight low of 1.1670 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 sharply lower and hit a 2.5-month low in early U.S. trading. 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 bearish early today. Look for buy stops to reside just above technical resistance at the overnight high of $64.76 and then at $65.00. Look for sell stops just below technical support at $63.00 and then at $62.50. Wyckoff’s Intra-Day Market Rating: 3.5

GRAINS

U.S. grain futures were lower overnight. Risk-off attitudes are bearish for the grains this week. The key outside markets are also bearish—lower crude oil and stock markets and a higher U.S. dollar index. The big event of the week for the grain markets is the annual Pro Farmer Midwest Crop tour that got under way Monday and ends with corn and soybean yield estimates on Friday.

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 18–Jim Wyckoff’s Morning Markets Report

Global stock markets were mixed overnight, with Asian shares mostly down and European shares steady to firmer. The U.S. stock indexes are pointed to lower openings when the New York day session begins. Risk-off attitudes are keener at mid-week. The surging coronavirus delta strain is keeping traders and investors more tentative, especially heading into what history shows can be the rough months of September and October for the stock markets. Tuesday’s U.S. retail sales report was weaker than expected, with the spreading virus possibly to blame.

Federal Reserve monetary policy and the likely tapering of the central bank’s bond-buying program are near the front burner of the marketplace. This afternoon’s minutes from the last FOMC meeting in July will be parsed for any further clues on the timing of policy moves by the Fed. Many market watchers believe the Fed will start tapering this fall. Next week’s annual Jackson Hole Fed symposium is likely to see some clarification on the Fed’s monetary policy and the timing of any upcoming actions by the Fed.

In overnight news, the Euro zone July consumer price index was reported down 0.1% from June and up 2.2%, year-on-year. Those numbers are not problematic for price inflation.

The key outside markets today see the U.S. dollar index a bit weaker after solid gains posted Tuesday. Nymex crude oil futures prices are firmer and trading around $67.00 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 1.26%.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, new residential construction, the weekly DOE liquid energy stocks report and the FOMC minutes.

–Jim

U.S. STOCK INDEXES

September S&P 500 e-mini futures: Prices are slightly lower in early U.S. trading on mild profit taking after hitting a contract and record high Monday. Bulls still 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 4,476.50 and then at 4,500.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at Tuesday’s low of 4,411.75 and then at 4,375.00. Sell stops likely reside below those levels. Wyckoff’s Intra-day Market Rating: 5.0

September Nasdaq index futures: Prices are firmer in early U.S. trading. Bulls still have the solid chart advantage and prices are not far below the recent contract and record high. Shorter-term moving averages (4- 9-and 18-day) are neutral early today. The 4-day moving average is even with the 9-day. The 9-day average is above the 18-day. Short-term oscillators (RSI, slow stochastics) are neutral to early today. Shorter-term technical resistance is seen at the contract high of 15,172.50 and then at 15,250.00. Buy stops likely reside just above those levels. On the downside, shorter-term support is seen at this week’s low of 14,897.00 and then at 14,750.00. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.5.

U.S. TREASURY BONDS AND NOTES FUTURES

September U.S. T-Bonds: 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 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 165 6/32 and then at this week’s high of 165 31/32. Buy stops likely reside just above those levels. Shorter-term support lies at this week’s low of 164 20/32 and then at 164 even. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0

September 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 early today. Shorter-term resistance lies at this week’s high of 134.19.5 and then at 134.25.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at this week’s low of 134.02.0 and then at 133.26.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0

EURO CURRENCY

The September Euro currency futures are near steady in early U.S. trading and hit a 12-month low overnight. 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 above the 9-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 Tuesday’s high of 1.1790 and then at last week’s high of 1.1811. Buy stops likely reside just above those levels. Shorter-term support is seen at 1.1700 and then at 1.1650. Sell stops likely reside just below those levels. Wyckoff’s Intra Day Market Rating: 5.0

NYMEX CRUDE OIL

Nymex crude oil prices are higher in early U.S. trading. 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 this week’s high of $68.27 and then at $69.00. Look for sell stops just below technical support at this week’s low of $65.73 and then at $65.00. Wyckoff’s Intra-Day Market Rating: 5.5

GRAINS

U.S. grain futures were mixed to firmer overnight. Not much new this week. The markets are pausing and consolidating. The wheat market bulls are still in solid technical control and presently the leader of the pack, corn bulls have the overall chart advantage, and the soybean bulls have the slight overall near-term technical advantage. The big event of the week for the grain markets is the annual Pro Farmer Midwest Crop tour that got under way Monday and ends with corn and soybean yield estimates on Friday.

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