Daily Morning Report

Friday, July 30–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly lower overnight. The U.S. stock indexes are pointed toward lower openings when the New York day session begins. The news on the delta variant of the coronavirus just keeps getting worse and that is starting to unnerve more and more traders and investors. China’s crackdown on Hong Kong protesters and some of its tech companies, as well as some big U.S. companies reporting misses on earnings this week are also giving the bulls pause as the calendar turns to August—typically a month of lower trading volumes as families take vacations before school starts. Friday is the last trading day of the week and of the month, making it an extra important trading day from a technical perspective.

In overnight news, the Euro zone’s July consumer price index came in at up 2.2%, year-on-year, compared to a rise of 1.9% in June and a forecast for up 2.0%. The July rise in CPI does not suggest problematic price inflation.

The key outside markets today see the U.S. dollar index a bit firmer on a corrective rebound from solid selling pressure seen this week that drove the index to a four-week low overnight. Nymex crude oil futures prices are slightly down and trading around $73.25 a barrel. The yield on the U.S. Treasury 10-year note is presently fetching 1.24%.

U.S. economic data due for release Friday includes personal income and outlays, the employment cost index, the Chicago ISM business survey, and the University of Michigan consumer sentiment survey.

–Jim

U.S. STOCK INDEXES

September S&P 500 e-mini futures: Prices are lower in early U.S. trading on profit taking from recent gains. 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 overnight high of 4,400.00 and then at the contract high of 4,416.75. Buy stops likely reside just above those levels. Downside support for active traders is seen at this week’s low of 4,364.75 and then at 4,340.00. 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 on profit taking. Bulls still have the solid chart advantage. 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 bearish early today. Shorter-term technical resistance is seen at 15,000.00 and then at the record high of 15,134.00. Buy stops likely reside just above those levels. On the downside, shorter-term support is seen at this week’s low of 14,774.25 and then at 14,700.00. 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 firmer in early U.S. trading. A 10-week-old price uptrend is in place on the daily chart and bulls still have the firm overall near-term technical advantage. 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 165 even and then at this week’s high of 165 12/32. Buy stops likely reside just above those levels. Shorter-term support lies at the overnight low of 164 3/32 and then at this week’s low of 163 23/32. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 6.0

September U.S. T-Notes: Prices are higher in early U.S. trading. Prices are in a 10-week-old uptrend on the daily bar chart. Shorter-term moving averages (4- 9- 18-day) are bullish today. The 4-day moving average is above the 9-day. The 9-day is above the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral early today. Shorter-term resistance lies at this week’s high of 134.19.0 and then at 134.26.5. 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 133.27.5. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 6.0

EURO CURRENCY

The September Euro currency futures are higher and hit a four-week high in early U.S. trading. While bears still have the overall near-term technical advantage, the bulls are having a good week and have momentum. A price downtrend on the daily bar chart has been negated this week. 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 the overnight high of 1.1919 and then at 1.1950. Buy stops likely reside just above those levels. Shorter-term support is seen at the overnight low of 1.1885 and then at Thursday’s low of 1.1851. Sell stops likely reside just below those levels. Wyckoff’s Intra Day Market Rating: 6.0

NYMEX CRUDE OIL

Nymex crude oil prices are a bit weaker 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 early today. Look for buy stops to reside just above technical resistance at this week’s high of $73.68 and then at $74.00. Look for sell stops just below technical support at $72.93 and then at $72.00. Wyckoff’s Intra-Day Market Rating: 4.5

GRAINS

U.S. grain futures were lower overnight. Some risk aversion in the marketplace to end the trading week is limiting buying interest in the grains. Grain market watchers are wondering if the bullish weather news has now been fully factored into prices. Hot and mostly dry weather in the western Corn Belt remains bullish, but the rest of the Corn Belt sees much better growing conditions. Grain market bulls still have the overall near-term technical advantage.

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

Here is what the Commodity Futures Trading Commission

(CFTC) has said about futures trading (and I agree 100%):

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

Jim Wyckoff

Thursday, July 29–Jim Wyckoff’s Morning Markets Report

Global stock markets were mixed but mostly higher overnight. The U.S. stock indexes are pointed toward mixed openings when the New York day session begins. Traders and investors are still digesting Wednesday afternoon’s conclusion of the meeting of the Federal Reserve’s Open Market Committee (FOMC), including a press conference from Fed Chair Jay Powell. After initially thinking the Fed was leaning less dovish, in the immediate aftermath of the FOMC statement, Powell’s press conference seemed to assuage the marketplace into thinking that while the Fed may start to taper its bond-buying program (quantitative easing) as soon as this year, due to a strengthening U.S. economy, the central bank will not be in a hurry to back off from its overall accommodative monetary policies. That rallied gold prices, pressured the U.S. dollar index and kept U.S. Treasury bond yields near steady by the end of the day Wednesday.

Market watchers are now focusing on the weekly U.S. jobless claims report and the latest reading on U.S. gross domestic product. The advance estimate for second-quarter GDP is seen up 8.4%, year-on-year. The closely watched PCE price index of the GDP data is seen up 3.7%, year-on-year.

The World Gold Council said global demand for gold has yet to recover from the pandemic. The WGC said gold demand during the first half of 2021 was the lowest since 2008. The April-to-June period saw global gold demand at 955.1 metric tons (MT), a reduction from 960.5 MT over the same period in 2020. The second quarter of 2019 saw demand of 1,132.1 MT. However, central banks bought more gold between April and June 2021 than any quarter for two years. ETFs also added considerable amounts of gold to their stockpiles in the second quarter of this year, said the WGC.

The key outside markets today see the U.S. dollar index lower in the wake of the FOMC meeting. Nymex crude oil futures prices are up and trading around $72.85 a barrel. The yield on the U.S. Treasury 10-year note is presently fetching 1.27%.

Other U.S. economic data due for release Thursday includes pending home sales.

–Jim

U.S. STOCK INDEXES

September S&P 500 e-mini futures: Prices are firmer in early U.S. trading and not far below Monday’s record high. 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 4,416.75 and then at 4,435.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at this week’s low of 4,364.75 and then at 4,340.00. Sell stops likely reside below those levels. Wyckoff’s Intra-day Market Rating: 6.0

September Nasdaq index futures: Prices are slightly lower but not far below the record high set Monday. 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. 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 record high of 15,134.00 and then at 15,250.00. Buy stops likely reside just above those levels. On the downside, shorter-term support is seen at Wednesday’s low of 14,866.00 and then at this week’s low of 14,774.25. 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 weaker in early U.S. trading. A 10-week-old price uptrend is in place on the daily chart and bulls have the solid overall near-term technical advantage. Shorter-term moving averages (4- 9- 18-day) are neutral early today. The 4-day moving average is 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 165 even and then at this week’s high of 165 12/32. Buy stops likely reside just above those levels. Shorter-term support lies at this week’s low of 163 23/32 and then at last week’s low of 163 9/32. 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. Prices are in a 10-week-old uptrend on the daily bar chart. Shorter-term moving averages (4- 9- 18-day) are neutral early today. The 4-day moving average is even with the 9-day. The 9-day is above the 18-day moving average. Oscillators (RSI, slow stochastics) are bearish early today. Shorter-term resistance lies at this week’s high of 134.19.0 and then at 134.26.5. 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 133.27.5. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.5

EURO CURRENCY

The September Euro currency futures are higher and hit a three-week high in early U.S. trading. While bears have the overall near-term technical advantage, a price downtrend on the daily bar chart has been negaed. 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 1.1900 and then at 1.1950. Buy stops likely reside just above those levels. Shorter-term support is seen at the overnight low of 1.1851 and then at 1.1800. Sell stops likely reside just below those levels. Wyckoff’s Intra Day Market Rating: 6.5

NYMEX CRUDE OIL

Nymex crude oil prices are a bit firmer 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 bullish early today. Look for buy stops to reside just above technical resistance at the overnight high of $73.27 and then at $74.00. Look for sell stops just below technical support at $71.70 and then at this week’s low of $70.56. Wyckoff’s Intra-Day Market Rating: 5.5

GRAINS

U.S. grain futures were firmer overnight, led by wheat. Trading has turned choppy as grain market watchers are wondering if the bullish weather news has now been fully factored into prices. Hot and mostly dry weather in the western Corn Belt this week is bullish, but the rest of the Corn Belt sees much better growing conditions. Grain market bulls still have the overall near-term technical advantage. 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, July 28–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly firmer overnight. The U.S. stock indexes are pointed toward steady to mixed openings when the New York day session begins but still near their record highs. Risk appetite remains generally upbeat amid quieter summertime trading.

The data point of the week comes Wednesday afternoon with the conclusion of the meeting of the Federal Reserve’s Open Market Committee (FOMC), including a press conference from Fed Chair Jay Powell. Traders and analysts want to know how the Fed is leaning on economic growth prospects and on inflation. A growing number of market watchers are concerned about slowing economic growth and rising inflation, what many call stagflation. The marketplace will also look for clues on the timing of the Fed’s expected tapering of its bond-buying program (quantitative easing).

The key outside markets today see the U.S. dollar index slightly firmer. Nymex crude oil futures prices are up a bit and trading around $72.00 a barrel. The yield on the U.S. Treasury 10-year note is presently fetching 1.25%.

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

–Jim

U.S. STOCK INDEXES

September S&P 500 e-mini futures: Prices are near steady in early U.S. trading and not far below Monday’s record high. 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 4,416.75 and then at 4,435.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at this week’s low of 4,364.75 and then at 4,340.00. Sell stops likely reside below those levels. Wyckoff’s Intra-day Market Rating: 5.0

September Nasdaq index futures: Prices are slightly higher and not far below the record high set Monday. 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. 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 record high of 15,134.00 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 14,866.00 and then at this week’s low of 14,774.25. 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. A 10-week-old price uptrend is in place on the daily chart and bulls have the solid overall near-term technical advantage. Shorter-term moving averages (4- 9- 18-day) are neutral early today. The 4-day moving average is 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 this week’s high of 165 12/32 and then at 166 even. Buy stops likely reside just above those levels. Shorter-term support lies at this week’s low of 163 23/32 and then at last week’s low of 163 9/32. 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. Prices are in a 10-week-old uptrend on the daily bar chart. Shorter-term moving averages (4- 9- 18-day) are neutral early today. The 4-day moving average is even with the 9-day. The 9-day is above the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral to bearish early today. Shorter-term resistance lies at this week’s high of 134.19.0 and then at 134.26.5. 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 133.27.5. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0

EURO CURRENCY

The September Euro currency futures are weaker in early U.S. trading. Bears have the firm 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 this week’s high of 1.1852 and then at 1.1900. Buy stops likely reside just above those levels. Shorter-term support is seen at this week’s low of 1.1780 and then at the July low of 1.1764. Sell stops likely reside just below those levels. Wyckoff’s Intra Day Market Rating: 4.5

NYMEX CRUDE OIL

Nymex crude oil prices are firmer 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 bullish early today. Look for buy stops to reside just above technical resistance at the overnight high of $72.60 and then at $73.00. Look for sell stops just below technical support at this week’s low of $70.56 and then at $70.00. Wyckoff’s Intra-Day Market Rating: 5.5

GRAINS

U.S. grain futures were mixed to weaker overnight. Trading has turned choppy as grain market watchers are wondering if the bullish weather news has now been fully factored into prices.

It’s going to be a scorcher in much of the Corn Belt this week. Grain market bulls still have the overall near-term technical advantage. Look for some more higher daily price volatility in the near term.

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, July 27–Jim Wyckoff’s Morning Markets Report

Global stock markets were mixed to weaker overnight. China’s shares remain under pressure on the prospect of great government oversight of some companies. The U.S. stock indexes are pointed toward weaker openings when the New York day session begins but still near their record highs. Overall risk sentiment remains upbeat at present, despite some worries about the pandemic flaring up in some countries, including the U.S. Solid corporate earnings reports are keeping equities prices elevated.

In focus now is the two-day meeting of the Federal Reserve’s Open Market Committee (FOMC) that begins Tuesday morning and ends Wednesday afternoon with a statement. Inflation and economic growth prospects will be the hot topics traders and investors want to see the FOMC meeting address. Some market watchers are buzzing about the prospects of slower U.S./global economic growth and rising inflation, which in the past has been called stagflation. The conclusion of the meeting Wednesday afternoon, including Fed Chairman Jay Powell’s press conference, is likely to cause some market gyrations.

The marketplace is watching a meeting between U.S. and China officials this week, with  indications that the two nations remain wary of each other.

The key outside markets today see the U.S. dollar a bit firmer. Nymex crude oil futures prices are near steady and trading around $72.00 a barrel. The yield on the U.S. Treasury 10-year note is presently fetching 1.25%.

U.S. economic data due for release Tuesday includes the weekly chain store sales index and the Johnson Redbook retail report, durable goods orders, the monthly house price index, the Case-Shiller home price index, the Richmond Fed business survey and the consumer confidence index.

–Jim

U.S. STOCK INDEXES

September S&P 500 e-mini futures: Prices are a bit weaker in early U.S. trading and not far below Monday’s record high. 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 4,416.75 and then at 4,435.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at Monday’s low of 4,375.50 and then at 4,350.00. Sell stops likely reside below those levels. Wyckoff’s Intra-day Market Rating: 4.5

September Nasdaq index futures: Prices are slightly weaker after hitting a new record high Monday. 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. 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 record high of 15,134.00 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 15,038.75 and then at 14,900.00. 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. A 10-week-old price uptrend is in place on the daily chart and bulls have the solid overall near-term technical advantage. Shorter-term moving averages (4- 9- 18-day) are neutral early today. The 4-day moving average is 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 Monday’s high of 165 12/32 and then at 166 even. Buy stops likely reside just above those levels. Shorter-term support lies at the overnight low of 163 24/32 and then at last week’s low of 163 9/32. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 6.0

September U.S. T-Notes: Prices are higher in early U.S. trading. Prices are in a 10-week-old uptrend on the daily bar chart. Shorter-term moving averages (4- 9- 18-day) are neutral early today. The 4-day moving average is even with the 9-day. The 9-day is above the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral early today. Shorter-term resistance lies at Monday’s high of 134.19.0 and then at 134.26.5. 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 133.27.5. 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 firm 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 Monday’s high of 1.1828 and then at last week’s high of 1.1842. Buy stops likely reside just above those levels. Shorter-term support is seen at the July low of 1.1764 and then at the March low of 1.1746. 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. 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 bullish early today. Look for buy stops to reside just above technical resistance at Monday’s high of $72.43 and then at $73.00. Look for sell stops just below technical support at Monday’s low of $70.56 and then at $70.00. Wyckoff’s Intra-Day Market Rating: 5.0

GRAINS

U.S. grain futures were mostly higher overnight. It’s going to be a scorcher in much of the Corn Belt later this week and that has the bulls in charge today. Grain market bulls still have the overall near-term technical advantage. Traders in the near term will continue to focus mainly on U.S. weather patterns in the Corn Belt and northern Plains.

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