Daily Morning Report

Tuesday, June 15–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly firmer overnight. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins and at record highs in the S&P 500 and Nasdaq stock index futures. The past several weeks have seen little risk aversion in the marketplace and that’s been bullish for the global stock markets.  

Traders will be eyeing today’s U.S. retail sales report for May, expected to come in at down 0.6% from April. The May producer price index is another important data point out on a very busy report day today, and is expected to come in at up 0.5% from April.

The Federal Reserve’s FOMC meeting begins Tuesday morning and ends Wednesday afternoon with a statement. While no major changes are expected for U.S. monetary policy, focus will be on the Fed’s tenor on inflation prospects and when the central bank will start to taper its very easy money policies. Fed officials recently have hinted they will begin discussing a timetable for reducing its bond-buying program (quantitative easing) sooner rather than later.

The key outside markets today see the U.S. dollar index a bit firmer. Nymex crude oil prices are up and trading around $71.50 a barrel after hitting a 2.5-year high of $71.78 Monday. The key U.S. Treasury 10-year note yield is fetching 1.485%.

U.S. economic data due for release Tuesday includes the weekly chain store sales index and the Johnson Redbook retail sales report, the Empire State manufacturing survey, retail sales, the producer price index, industrial production and capacity utilization, manufacturing and trade inventories, the NAHB housing market index, and Treasury international capital data.

–Jim

U.S. STOCK INDEXES

September S&P 500 e-mini futures: Prices are slightly up in early U.S. trading and hit another record and contract high overnight. 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. 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 overnight contract high of 4,258.25 and then at 4,275.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at Monday’s low of 4,224.50 and then at last week’s low of 4,197.25. Sell stops likely reside below those levels. Wyckoff’s Intra-day Market Rating: 6.5

September Nasdaq index futures: Prices are higher and hit a record high in early U.S. trading. 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 overnight record high of 14,155.25 and then at 14,250.00. Buy stops likely reside just above those levels. On the downside, shorter-term support is seen at  14,000.00 and then at 13,900.00. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 6.5.

U.S. TREASURY BONDS AND NOTES FUTURES

September U.S. T-Bonds: Prices are slightly firmer in early U.S. trading. A price uptrend is in place on the daily chart and have the overall near-term technical advantage. Shorter-term moving averages (4- 9- 18-day) are bullish early 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 to bearish early today. Shorter-term technical resistance is seen at Monday’s high of 159 14/32 and then at last week’s high of 159 29/32. Buy stops likely reside just above those levels. Shorter-term support lies at Monday’s low of 158 16/32 and then at 158 even. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.5

September U.S. T-Notes: Prices are slightly up in early U.S. trading. A price uptrend is in place on the daily chart. Shorter-term moving averages (4- 9- 18-day) are bullish early 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 to bearish early today. Shorter-term resistance lies at Monday’s high of 132.29.5 and then at last week’s high of 133.06.5. Buy stops likely reside just above those levels. Shorter-term technical support lies at 132.12.0 and then at 132.08.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.5

EURO CURRENCY

The September Euro currency futures are near steady in early U.S. trading. The shorter-term moving averages for the Euro are bearish early today, as the 4-day is below the 9-day and 18-day. The 9-day is below the 18-day moving average. Short-term oscillators for the Euro are neutral to bearish early today. The Euro currency finds shorter-term technical resistance at the overnight high of 1.2169 and then at 1.2200. Buy stops likely reside just above those levels. Shorter-term support is seen at last week’s low of 1.2114 and then at 1.2081. Sell stops likely reside just below those levels. Wyckoff’s Intra Day Market Rating: 5.0

NYMEX CRUDE OIL

Nymex crude oil prices are firmer in early U.S. trading and not far below Monday’s 2.5-year high. Bulls have the solid overall near-term technical advantage. The shorter-term moving averages are bullish early today as the 4-day is above the 9-day. The 9-day is above the 18-day moving average. Short-term oscillators (RSI and slow stochastics) are neutral to bullish early today. Look for buy stops to reside just above technical resistance at Monday’s high of $71.78 and then at $72.50. Look for sell stops just below technical support at Monday’s low of $70.65 and then at $70.00. Wyckoff’s Intra-Day Market Rating: 6.0

GRAINS

U.S. grain futures are mixed to weaker in early U.S. pre-market trading. Bulls are fading fast and need to step up this week. The extended weather forecasts are still not calling for a whole lot of rain in the U.S. Midwest. However, next week’s weather is expected to be cooler with some better chances for rain. It’s still early in the growing season and don’t be surprised to see more fireworks in the grain futures in the coming weeks.  

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, June 14–Jim Wyckoff’s Morning Markets Report

Global stock markets were mixed but mostly higher overnight. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins and at or near record highs. Chinese and Australian markets were closed for holidays. The global marketplace remains quieter at present, amid no major geopolitical flareups in play.

The just-completed Group of Seven industrial countries meeting in the U.K. did not produce any news that significantly moved markets. A main focus of the meeting was how the group could engage China in a way that is non-confrontational.

The U.S. data point of the week is the Federal Reserve’s FOMC meeting that begins Tuesday morning and ends Wednesday afternoon with a statement. While no major changes are expected for U.S. monetary policy, focus will be on the Fed’s tenor on inflation prospects and when the central bank will start to taper its very easy money policies. Fed officials recently have hinted they will begin discussing a timetable for reducing its bond-buying program (quantitative easing) sooner rather than later.

The key outside markets today see the U.S. dollar index a bit weaker. Nymex crude oil prices are up and trading around $71.50 a barrel after hitting a 2.5-year high of $71.70 overnight. The key U.S. Treasury 10-year note yield is fetching 1.464%.

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

–Jim

U.S. STOCK INDEXES

September S&P 500 e-mini futures: Prices are slightly up in early U.S. trading and hit another record and contract high overnight. 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. 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 overnight contract high of 4,247.50 and then at 4,275.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at last week’s low of 4,197.25 and then at 4,180.00. Sell stops likely reside below those levels. Wyckoff’s Intra-day Market Rating: 6.5

September Nasdaq index futures: Prices are higher and hit a seven-week high in early U.S. trading. 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 bullish early today. Shorter-term technical resistance is seen at the record high of 14,050.00 and then at 14,150.00. Buy stops likely reside just above those levels. On the downside, shorter-term support is seen at Friday’s low of 13,924.00 and then at 13,800.00. 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 firmer in early U.S. trading. A price uptrend is in place on the daily chart and have the overall near-term technical advantage. Shorter-term moving averages (4- 9- 18-day) are bullish early 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 technical resistance is seen at last week’s high of 159 29/32 and then at 160 even. Buy stops likely reside just above those levels. Shorter-term support lies at 159 even and then at 158 16/32. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 6.0

September U.S. T-Notes: Prices are near steady in early U.S. trading. A price uptrend is in place on the daily chart. Shorter-term moving averages (4- 9- 18-day) are bullish early 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 to bearish early today. Shorter-term resistance lies at 133.00.0 and then at last week’s high of 133.06.5. Buy stops likely reside just above those levels. Shorter-term technical support lies at 132.20.0 and then at 132.16.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.0

EURO CURRENCY

The September Euro currency futures are firmer in early U.S. trading. 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 1.2150 and then at 1.2200. Buy stops likely reside just above those levels. Shorter-term support is seen at last week’s low of 1.2114 and then at 1.2081. Sell stops likely reside just below those levels. Wyckoff’s Intra Day Market Rating: 5.5

NYMEX CRUDE OIL

Nymex crude oil prices are firmer in early U.S. trading and hit another 2.5-year high overnight. Bulls have the solid overall near-term technical advantage. The shorter-term moving averages are bullish early today as the 4-day is above the 9-day. The 9-day is above the 18-day moving average. Short-term oscillators (RSI and slow stochastics) are neutral to bullish early today. Look for buy stops to reside just above technical resistance at the overnight high of $71.70 and then at $72.00. Look for sell stops just below technical support at the overnight low of $70.65 and then at $70.00. Wyckoff’s Intra-Day Market Rating: 6.5

GRAINS

U.S. grain futures are solidly lower in early U.S. pre-market trading. The extended weather forecasts are still not calling for much rain in the U.S. Midwest. However, it could be that market price action may have factored in that expected dry weather. Still, expect higher daily volatility in the grain futures markets 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

Friday, June 11–Jim Wyckoff’s Morning Markets Report

Global stock markets were mixed but mostly higher overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins and at or near record highs. The global marketplace remains calm at present, amid no major geopolitical flareups in play and some typical summertime-doldrums trading occurring. That leaves the discussion in the marketplace on inflation prospects.

The key U.S. Treasury 10-year note yield is fetching 1.44% and is at a more-than-three-month low. This comes despite the U.S. consumer price index on Thursday showing the biggest surge in inflation in 13 years—up 5.0% in May, year-on-year. Low U.S. Treasury yields are a major argument that inflation is not on course to become problematic. Other indicators do suggest otherwise and thus the debate continues on the matter.

In other overnight news, reports say China will tap state reserves to control surging commodity prices. China will offer copper, aluminum, zinc and other commodities directly to end-users in order to curb the rally in commodity prices, according to a Bloomberg report. China is also planning on expanding pork inventories and accelerating the construction of coal infrastructure in order to have greater control over both markets.

The marketplace will monitor the weekend meeting of the Group of Seven countries in the U.K. A draft of the meeting communique shows the group will focus on the pandemic and the G-7 collective relations with China and Russia.

The key outside markets today see the U.S. dollar index firmer. Nymex crude oil prices are slightly up and trading around $70.50 a barrel after hitting a 2.5-year high of $70.65 on Thursday.

U.S. economic data due for release Friday is light and includes the University of Michigan consumer sentiment survey.

–Jim

U.S. STOCK INDEXES

September S&P 500 e-mini futures: Prices are slightly up in early U.S. trading and very close to the record high set Thursday. 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. 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 contract high of 4,239.50 and then at 4,265.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at this week’s low of 4,197.25 and then at 4,180.00. Sell stops likely reside below those levels. Wyckoff’s Intra-day Market Rating: 6.0

September Nasdaq index futures: Prices are higher and hit a six-week high in early U.S. trading. 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 14,050.00 and then at 14,150.00. Buy stops likely reside just above those levels. On the downside, shorter-term support is seen at 13,850.00 and then at this week’s low of 13,716.25. 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 firmer and hit a more-than-three-month high overnight. Bulls have started a price uptrend on the daily chart and have overall near-term technical advantage. Shorter-term moving averages (4- 9- 18-day) are bullish early 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 technical resistance is seen at the overnight high of 159 29/32 and then at 160 even. Buy stops likely reside just above those levels. Shorter-term support lies at 159 even and then at 158 even. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 6.0

September U.S. T-Notes: Prices are higher and hit a more-than-three-month high overnight. Bulls have momentum amid a price uptrend in place on the daily chart. Shorter-term moving averages (4- 9- 18-day) are bullish early 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 the overnight high of 133.06.5 and then at 133.12.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at 132.26.0 and then at 132.20.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 6.0

EURO CURRENCY

The September Euro currency futures are lower in early U.S. trading. The shorter-term moving averages for the Euro are bearish early today, as the 4-day is below the 9-day and 18-day. The 9-day is below the 18-day moving average. Short-term oscillators for the Euro are bearish early today. The Euro currency finds shorter-term technical resistance at the overnight high of 1.2215 and then at this week’s high of 1.2241. Buy stops likely reside just above those levels. Shorter-term support is seen at this week’s low of 1.2156 and then at the June low of 1.2127. Sell stops likely reside just below those levels. Wyckoff’s Intra Day Market Rating: 4.0

NYMEX CRUDE OIL

Nymex crude oil prices are firmer in early U.S. trading and hit a 2.5-year high overnight. Bulls have the solid overall near-term technical advantage. The shorter-term moving averages are bullish early today as the 4-day is above the 9-day. The 9-day is above the 18-day moving average. Short-term oscillators (RSI and slow stochastics) are neutral to bullish early today. Look for buy stops to reside just above technical resistance at the overnight high of $70.80 and then at $71.00. Look for sell stops just below technical support at the overnight low of $69.68 and then at $69.00. Wyckoff’s Intra-Day Market Rating: 6.0

GRAINS

U.S. grain futures are lower in early U.S. pre-market trading. Trading remains choppy and volatile in a serious weather market in the grains. The extended weather forecasts for through at least late-June are calling for warmer and mostly drier weather conditions in much of the U.S. midsection. Expect more high daily volatility in the grain futures markets in the near term. Bulls still have the overall near-term technical advantage but wheat is the laggard at present.

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, June 10–Jim Wyckoff’s Morning Markets Report

Global stock markets were mixed overnight, with European shares mostly flat and Asian shares mostly firmer. U.S. stock indexes are once again pointed toward narrowly mixed openings when the New York day session begins. The global marketplace remains calm at present, amid no major geopolitical flareups in play and some typical summertime-doldrums trading occurring.

Traders are awaiting the U.S. economic data point of the week, which will be Thursday morning’s consumer price index report for May, which is expected to come in at up 0.5% from April and up 4.7%, year-on-year. Traders and investors continue their buzz regarding the prospects for inflation to heat up to uncomfortable levels in the coming months.

What has possibly flown under the radar screen of many in the marketplace recently is the quiet, steady decline in U.S. Treasury yields, which this week dropped to more-than-three-month lows. The yield on the benchmark 10-year U.S. Treasury note is presently fetching 1.503%. Rising raw commodity prices and some supply shortages, combined with major economies busting out of their pandemic shackles, have raised the specter of rising and possibly problematic price inflation in the coming months. However, the big element that does not jibe with the steepening inflation theory is U.S. government bond yields that remain near historically low levels. The stubbornly low U.S. bond yields support the Federal Reserve’s assertions that the rising trajectory of inflation is only transitory.

The European Central Bank is holding its regular monetary policy meeting on Thursday. No change in monetary policy is expected.

The marketplace will monitor the weekend meeting of the Group of Seven countries. A draft of the meeting communique shows the group will focus on its collective relations with China and Russia.

The key outside markets today see the U.S. dollar index slightly higher. Nymex crude oil prices are slightly up and trading around $70.00 a barrel after hitting a 2.5-year high of $70.62 on Wednesday.

Other U.S. economic data due for release Wednesday includes the weekly jobless claims report, real earnings and the monthly Treasury budget statement.

–Jim

U.S. STOCK INDEXES

September S&P 500 e-mini futures: Prices are slightly up in early U.S. trading and very close to the recent 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. 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 4,228.25 and then at 4,250.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at 4,180.00 and then at last week low of 4,155.50. Sell stops likely reside below those levels. Wyckoff’s Intra-day Market Rating: 5.5

September Nasdaq index futures: Prices are a bit lower in early U.S. trading. 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 bearish early today. Shorter-term technical resistance is seen at the overnight high of 13,829.25 and then at this week’s high of 13,906.00. Buy stops likely reside just above those levels. On the downside, shorter-term support is seen at this week’s low of 13,685.00 and then at 13,600.00. 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 lower on profit taking after hitting a more-than-three-month high on Wednesday. Bulls have started a price uptrend on the daily chart. Shorter-term moving averages (4- 9- 18-day) are bullish early 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 technical resistance is seen at this week’s high of 159 6/32 and then at 159 16/32. Buy stops likely reside just above those levels. Shorter-term support lies at Wednesday’s low of 157 26/32 and then at this week’s low of 156 31/32. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.5

September U.S. T-Notes: Prices are lower on profit taking after hitting a more-than-three-month high on Wednesday. Bulls have momentum amid a price uptrend in place on the daily chart. Shorter-term moving averages (4- 9- 18-day) are bullish early 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 to bearish early today. Shorter-term resistance lies at the overnight high of 132.27.0 and then at this week’s high of 132.29.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at Wednesday’s low of 132.11.5 and then at this week’s low of 132.00.5. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0

EURO CURRENCY

The September Euro currency futures are slightly lower in early U.S. trading. The shorter-term moving averages for the Euro are bearish early today, as the 4-day is below the 9-day and 18-day. The 9-day is below the 18-day moving average. Short-term oscillators for the Euro are bearish early today. The Euro currency finds shorter-term technical resistance at the overnight high of 1.2203 and then at this week’s high of 1.2241. Buy stops likely reside just above those levels. Shorter-term support is seen at this week’s low of 1.2168 and then at last week’s low of 1.2127. Sell stops likely reside just below those levels. Wyckoff’s Intra Day Market Rating: 4.5

NYMEX CRUDE OIL

Nymex crude oil prices are a bit higher in early U.S. trading after hitting a 2.5-year high on Wednesday. Bulls have the solid overall near-term technical advantage. The shorter-term moving averages are bullish early today as the 4-day is above the 9-day. The 9-day is above the 18-day moving average. Short-term oscillators (RSI and slow stochastics) are neutral early today. Look for buy stops to reside just above technical resistance at this week’s high of $70.62 and then at $71.00. Look for sell stops just below technical support at the overnight low of $69.29 and then at $68.00. Wyckoff’s Intra-Day Market Rating: 5.5

GRAINS

U.S. grain futures are mixed to firmer in early U.S. pre-market trading. It’s still a weather market in the grains. The extended weather forecasts for through at least late-June are calling for warmer and mostly drier weather conditions in much of the U.S. midsection. Expect more high daily volatility in the grain futures markets this week. Today comes the monthly USDA supply and demand report, but focus will quickly turn to the weather after the report is released, which is expected to contain no big changes to last month’s numbers.  

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