Daily Morning Report

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

Tuesday, August 17–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly lower overnight. The U.S. stock indexes are pointed to lower openings when the New York day session begins. Risk-off attitudes are on the rise early this week. The stunningly rapid takeover of Afghanistan by the Taliban has left Americans stranded in the country and its own population running scared. This is the biggest crisis yet for the Biden Administration that was caught completely off-guard by the situation in Afghanistan.

Also, the surging Covid delta virus is starting to impact major economies, including and especially China. The U.S. is also seeing a rapid rise in cases. Traders and investors remember too well the masks and lockdowns that crippled economies just one year ago.

The marketplace is also focusing on the Federal Reserve possibly and even likely tightening its monetary policy as soon as this fall. A town hall speech by Fed Chairman Powell to educators and students today will be very closely parsed. Next week’s annual Jackson Hole Fed symposium is likely to see clarification on the Fed’s monetary policy and the timing of any upcoming actions by the central bank.

In overnight news, the Euro zone second-quarter GDP rose 2.0% from the first quarter and was up 13.6%, year-on-year. Those numbers were in line with market expectations.

The key outside markets today see the U.S. dollar index firmer. Nymex crude oil futures prices are lower and trading around $67.00 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 1.23%.

It’s a very busy day for U.S. economic data Tuesday, including the weekly chain store and Johnson Redbook retail sales reports, retail sales, industrial production and capacity utilization, the NAHB housing market index, and manufacturing and trade inventories.

–Jim

U.S. STOCK INDEXES

September S&P 500 e-mini futures: Prices are lower in early U.S. trading on more 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 bearish 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 Monday’s low of 4,432.50 and then at last week’s low of 4,412.25. 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 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 bearish 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 Monday’s low of 14,917.25 and then at the August low of 14,849.00. 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 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 technical resistance is seen at the overnight high of 165 31/32 and then at 166 16/32. Buy stops likely reside just above those levels. Shorter-term support lies at the overnight low of 164 29/32 and then at Monday’s low of 164 20/32. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 6.0

September U.S. T-Notes: Prices are up 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 the overnight 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 Monday’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: 6.0

EURO CURRENCY

The September 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 to bearish early today. The Euro currency finds shorter-term technical resistance at last week’s high of 1.1811 and then at 1.1850. Buy stops likely reside just above those levels. Shorter-term support is seen at 1.1750 and then at the August low of 1.1713. Sell stops likely reside just below those levels. Wyckoff’s Intra Day Market Rating: 4.5

NYMEX CRUDE OIL

Nymex crude oil prices are lower 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 $67.66 and then at Monday’s high of $68.27. Look for sell stops just below technical support at Monday’s low of $65.73 and then at $65.00. Wyckoff’s Intra-Day Market Rating: 4.0

GRAINS

U.S. grain futures were steady to mixed overnight. The wheat market bulls are in solid technical control and presently the leader of the pack, corn bulls have the firm 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.

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, August 16–Jim Wyckoff’s Morning Markets Report

Global stock markets were mixed to weaker overnight. The U.S. stock indexes are pointed to lower openings when the New York day session begins. The market place is uneasy to start the trading week, amid a geopolitical flare-up. In stunningly rapid fashion, the Taliban has taken over Afghanistan following the recent U.S. military withdrawal from the country. Reports say there are still American citizens trapped in the country.

Meantime, the marketplace is also focusing on the prospect of the Federal Reserve tightening its monetary policy sooner than the central bank has heretofore suggested. Federal Reserve officials appear to be sounding that alarm in their comments. Some Fed watchers are now saying the tightening could come as early as this fall. The stronger-than-expected U.S. jobs report for July has helped stoke those ideas.

Weaker-than-expected economic data out of China Monday also has traders and investors edgy to start the trading week. China’s industrial production in July was up 6.4%, year on year, but the marketplace expected a rise of 7.8%. The surging delta variant of Covid-19 likely has crimped China’s economic growth and that has traders worried the same could happen to other major economies in the coming weeks/months.

The key outside markets today see the U.S. dollar index a bit firmer. Nymex crude oil futures prices are lower and trading around $67.25 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 1.263%. The German 10-year bond (bund) is trading at minus 0.469% and the U.K. 10-year gilt at 0.563%.

U.S. economic data due for release Monday includes the Empire State manufacturing survey and Treasury international capital data.

–Jim

U.S. STOCK INDEXES

September S&P 500 e-mini futures: Prices are weaker in early U.S. trading on profit taking after hitting a contract and record high last Friday. 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 to bearish early today. Today, shorter-term technical resistance comes in at the contract high of 4,463.25 and then at 4,480.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at last week’s low of 4,412.25 and then at 4,365.25. Sell stops likely reside below those levels. Wyckoff’s Intra-day Market Rating: 4.5

September Nasdaq index futures: Prices are a bit lower in early U.S. trading. Bulls still have the solid chart advantage and 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 below the 9-day. The 9-day average is above the 18-day. Short-term oscillators (RSI, slow stochastics) are neutral to bearish 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 last week’s low of 14,941.25 and then at the August low of 14,849.00. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.5.

U.S. TREASURY BONDS AND NOTES FUTURES

September U.S. T-Bonds: Prices are higher in early U.S. trading. Shorter-term moving averages (4- 9- 18-day) are bearish early today. The 4-day moving average is below the 9-day and 18-day. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral to bullish early today. Shorter-term technical resistance is seen at the overnight high of 165 13/32 and then at 166 even. Buy stops likely reside just above those levels. Shorter-term support lies at 164 16/32 and then at 164 even. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 6.0

September U.S. T-Notes: Prices are up in early U.S. trading. Shorter-term moving averages (4- 9- 18-day) are bearish early today. The 4-day moving average is below the 9-day and 18-day. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are bullish early today. Shorter-term resistance lies at the overnight high of 134.12.0 and then at 134.16.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at 134.00.0 and then at 133.26.0. 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. Bears have the solid overall near-term technical advantage. The shorter-term moving averages for the Euro are bearish early today, as the 4-day is below the 9-day and 18-day. The 9-day is below the 18-day moving average. Short-term oscillators for the Euro are neutral early today. The Euro currency finds shorter-term technical resistance at last week’s high of 1.1811 and then at 1.1850. Buy stops likely reside just above those levels. Shorter-term support is seen at 1.1750 and then at the August low of 1.1713. Sell stops likely reside just below those levels. Wyckoff’s Intra Day Market Rating: 4.5

NYMEX CRUDE OIL

Nymex crude oil prices are lower in early U.S. trading. 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 to bearish early today. Look for buy stops to reside just above technical resistance at the overnight high of $68.27 and then at $69.00. Look for sell stops just below technical support at the overnight low of $66.83 and then at $66.00. Wyckoff’s Intra-Day Market Rating: 4.0

GRAINS

U.S. grain futures were mixed to firmer overnight. The wheat market bulls are in solid technical control and presently the leader of the pack, corn bulls have the firm 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 gets under way today.

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