Daily Morning Report

Tuesday, May 25–Jim Wyckoff’s Morning Markets Report

Global stock markets were mixed but mostly firmer overnight. U.S. stock indexes are pointed toward modestly higher openings when the New York day session begins. Trader and investor attitudes are more upbeat this week as inflation worries have subsided, at least for now. Several commodity market prices have backed down from their multi-year highs and Federal Reserve officials in the recent comments appear to be tamping down notions of problematic price inflation. It could be that the marketplace is finally taking heed to the Federal Reserve’s official stance, for some time now, on inflation rising at an accelerating pace recently: it’s only transitory.

In overnight news, the Euro zone got some upbeat economic data when Germany reported its Ifo business index hit its highest reading in two years, at 99.2 versus 96.6 in April.

China’s renminbi currency has hit a three-year high against U.S. dollar on China’s strong economic rebound. The renminbi has gained more than 10% over the past year, driven by China’s solid economic rebound from the Covid-19 pandemic and foreign capital flows into the country.

The key outside markets today see the U.S. dollar index weaker and hitting a 4.5-month low. Meantime, Nymex crude oil prices are higher and are trading around $65.50 a barrel as the market has made a good rebound from last week’s selling pressure. The yield on the benchmark 10-year U.S. Treasury note is presently fetching around 1.593%.

U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, the monthly house price index, the S&P-Case-Shiller home price index, the Richmond Fed business survey, the consumer confidence index, and new residential sales.

–Jim

U.S. STOCK INDEXES

June S&P 500 e-mini futures: Prices are modestly firmer in early U.S. trading and back near the recent record high. Bulls have the solid overall near-term technical advantage. The shorter-term moving averages (4-, 9- and 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. Short-term oscillators (RSI, slow stochastics) are neutral to bullish early today. Today, shorter-term technical resistance comes in at the overnight high of 4,212.75 and then at the contract high of 4,238.25. Buy stops likely reside just above those levels. Downside support for active traders is seen at 4,175.00 and then at Monday’s low of 4,142.50. Sell stops likely reside below those levels. Wyckoff’s Intra-day Market Rating: 6.0

June Nasdaq index futures: Prices are firmer in early U.S. trading. Shorter-term moving averages (4- 9-and 18-day) are neural early today. The 4-day moving average is above the 9-day and 18-day. The 9-day average is below the 18-day. Short-term oscillators (RSI, slow stochastics) are bullish early today. Shorter-term technical resistance is seen at the overnight high of 13,738.25 and then at the May high of 13,947.50. Buy stops likely reside just above those levels. On the downside, shorter-term support is seen at 13,600.00 and then at 13,500.00. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 6.0.

U.S. TREASURY BONDS AND NOTES FUTURES

June U.S. T-Bonds: Prices are firmer and hit a two-week high in early U.S. trading today. Bears still have the overall near-term technical advantage but bulls have gained some momentum recently. 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 158 16/32 and then at 159 even. Buy stops likely reside just above those levels. Shorter-term support lies at the overnight low of 157 21/32 and then at this week’s low of 157 10/32. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.5

June U.S. T-Notes: Prices are firmer and hit a two-week high 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 even with the 18-day moving average. Oscillators (RSI, slow stochastics) are bullish early today. Shorter-term resistance lies at the overnight high of 132.24.5 and then at this week’s high of 132.28.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at the overnight low of 132.19.0 and then at this week’s low of 132.15.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.5

EURO CURRENCY

The June Euro currency futures are higher and hit a three-month high in early U.S. trading. The shorter-term moving averages for the Euro are bullish early today, as the 4-day is above the 9-day and 18-day. The 9-day is above 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 February high of 1.2271 and then at 1.2300. Buy stops likely reside just above those levels. Shorter-term support is seen at the overnight low of 1.2216 and then at this week’s low of 1.2176. Sell stops likely reside just below those levels. Wyckoff’s Intra Day Market Rating: 6.5

NYMEX CRUDE OIL

Nymex crude oil prices are near steady in early U.S. trading. Bulls have the solid overall near-term technical advantage as prices are not far below this year’s highs. 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 early today. Look for buy stops to reside just above technical resistance at the overnight high of $66.34 and then at the May high of $67.02. Look for sell stops just below technical support at the overnight low of $65.41 and then at $65.00. Wyckoff’s Intra-Day Market Rating: 5.0

GRAINS

U.S. grain futures are mixed to weaker in early U.S. pre-market trading. Significant chart damage has been inflicted in the grain futures recently, to suggest that near-term market tops are in place. It’s going to very likely take a serious weather market scare in the Corn Belt this summer to revive the grain market bulls.

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, May 21–Jim Wyckoff’s Morning Markets Report

(NOTE: I will be out of the office all day Monday and there will be no A.M. or P.M. reports produced by me that day. I will be back at work Tuesday morning.—Jim)

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. The U.S. stock index bulls have regained momentum late this week following recent selling pressure.

In overnight news, the Euro zone May composite purchasing managers index (PMI) flash number was reported at 56.9 versus 53.8 in April. The May PMI beat market expectations. The May manufacturing PMI was 62.8 compared to 62.9 in April. A reading above 50.0 suggests growth in the sector.

Copper prices are in decline late this week, partly due to reports China may act to tamp down rising raw commodity prices.

The key outside markets today see the U.S. dollar index weaker and hitting a 4.5-month low. Meantime, Nymex crude oil prices are higher and are trading around $63.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching around 1.627%.

U.S. economic data due for release Friday includes the U.S. flash manufacturing PMI, the services PMI, and existing home sales.

–Jim

U.S. STOCK INDEXES

June S&P 500 e-mini futures: Prices are firmer in early U.S. trading. Bulls have the firm overall near-term technical advantage. The shorter-term moving averages (4-, 9- and 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. Short-term oscillators (RSI, slow stochastics) are bullish early today. Today, shorter-term technical resistance comes in at this week’s high of 4,179.50 and then at 4,200.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at 4,100.00 and then at this week’s low of 4,055.50. Sell stops likely reside below those levels. Wyckoff’s Intra-day Market Rating: 6.0

June Nasdaq index futures: Prices are firmer in early U.S. trading. Shorter-term moving averages (4- 9-and 18-day) are neural early today. The 4-day moving average is above the 9-day. The 9-day average is below the 18-day. Short-term oscillators (RSI, slow stochastics) are bullish early today. Shorter-term technical resistance is seen at the overnight high of 13,547.25 and then at 13,700.00. Buy stops likely reside just above those levels. On the downside, shorter-term support is seen at 13,400.00 and then at 13,300.00. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.5.

U.S. TREASURY BONDS AND NOTES FUTURES

June U.S. T-Bonds: Prices are near steady in early U.S. trading today. Bears still have the overall near-term technical advantage. 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 technical resistance is seen at this week’s high of 157 14/32 and then at 158 even. Buy stops likely reside just above those levels. Shorter-term support lies at 156 even and then at this week’s low of 155 25/32. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.0

June U.S. T-Notes: Prices are near steady in early U.S. trading. Shorter-term moving averages (4- 9- 18-day) are neutral early today. The 4-day moving average is even with 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 132.18.5 and then at this week’s high of 132.21.5. Buy stops likely reside just above those levels. Shorter-term technical support lies at 132.06.0 and then at this week’s low of 131.30.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.0

EURO CURRENCY

The June Euro currency futures are slightly higher in early U.S. trading. The shorter-term moving averages for the Euro are bullish early today, as the 4-day is above the 9-day and 18-day. The 9-day is above the 18-day moving average. Short-term oscillators for the Euro are bullish early today. The Euro currency finds shorter-term technical resistance at this week’s high of 1.2251 and then at the February high of 1.2271. Buy stops likely reside just above those levels. Shorter-term support is seen at Thursday’s low of 1.2174 and then at this week’s low of 1.2133. Sell stops likely reside just below those levels. Wyckoff’s Intra Day Market Rating: 5.5

NYMEX CRUDE OIL

Nymex crude oil prices are higher in early U.S. trading after hitting a four-week low overnight. Bulls have the overall near-term technical advantage but have faded this week. 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 early today. Look for buy stops to reside just above technical resistance at $64.00 and then at $65.00. Look for sell stops just below technical support at the overnight low of $61.56 and then at $61.00. Wyckoff’s Intra-Day Market Rating: 6.0

GRAINS

U.S. grain futures are lower in early U.S. pre-market trading. The “risk-off” trading attitudes much of this week are bearish for the grains. Significant chart damage has been inflicted in the grain futures this week, to suggest that near-term market tops are in place. It’s going to very likely take a serious weather market scare in the Corn Belt this summer to revive the grain market bulls.

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, May 20–Jim Wyckoff’s Morning Markets Report

Global stock markets were mixed but mostly lower overnight. U.S. stock indexes are pointed toward lower openings when the New York day session begins. There is keener risk aversion in the marketplace late this week. Traders and investors are debating when the Federal Reserve will rein in its very easy monetary policy, following the FOMC minutes on Wednesday afternoon that contained included wording on the FOMC committee discussing tapering its bond-buying program when economic conditions warrant such—but not yet. At the last FOMC meeting in late April the Fed still believed rising inflation was transitory. And price action this week in several raw commodity markets makes the case for the Fed being correct on that assumption. Crude oil prices have backed well down from a two-month high scored earlier this week, copper prices have pulled back from a 10-year high and the grain futures markets have swooned. Iron ore prices in Asia are also dropping, while U.S. lumber futures have dropped over 25% from their highs seen recently. Still, there are many veteran market watchers, including this one, that believe the inflation genie is already out of the bottle, to suggest generally rising consumer and producer prices for some time to come—and likely inflation that is problematic.

Bitcoin and other crypto currencies have stabilized Thursday after a huge sell off Wednesday that was precipitated by China stating it will not allow payment for goods and services to be conducted with Bitcoin. Wednesday’s price action in cryptos reminds of the time-tested notion that major bull markets many times end when the rules of the game are changed. The crypto world should indeed shudder when the globe’s largest population and second-largest economy that is state-controlled sees its leadership take a major step toward nullifying cryptos’ authenticity.

The key outside markets today see the U.S. dollar index weaker. Meantime, Nymex crude oil prices are lower and are trading around $62.50 a barrel. Crude oil has sold off sharply this week, in part on reports heretofore sanctioned Iranian crude oil may be coming back onto the world market. The yield on the benchmark 10-year U.S. Treasury note is presently fetching around 1.659%.

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

June S&P 500 e-mini futures: Prices are weaker in early U.S. trading. Bulls have the overall near-term technical advantage. However, a near-term price uptrend on the daily chart was negated recently to suggest a market top is in place. The shorter-term moving averages (4-, 9- and 18-day) are bearish early today. The 4-day moving average is below the 9-day. The 9-day is below the 18-day moving average. Short-term oscillators (RSI, slow stochastics) are bearish early today. Today, shorter-term technical resistance comes in at Wednesday’s high of 4,123.00 and then at 4,150.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at this week’s low of 4,055.50 and then at the May low of 4,029.25. Sell stops likely reside below those levels. Wyckoff’s Intra-day Market Rating: 4.0

June Nasdaq index futures: Prices are weaker in early U.S. trading. The near-term price uptrend on the daily chart was negated last week to suggest a market top is in place. Shorter-term moving averages (4- 9-and 18-day) are neural early today. The 4-day moving average is even with the 9-day. The 9-day average is below the 18-day. Short-term oscillators (RSI, slow stochastics) are neutral early today. Shorter-term technical resistance is seen at the overnight high of 13,259.75 and then at this week’s high of 13,448.50. Buy stops likely reside just above those levels. On the downside, shorter-term support is seen at 13,000.00 and then at the May low of 12,915.00. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.5.

U.S. TREASURY BONDS AND NOTES FUTURES

June U.S. T-Bonds: Prices are firmer in early U.S. trading today. Bears still have the overall near-term technical advantage. Shorter-term moving averages (4- 9- 18-day) are bearish early today. The 4-day moving average is below the 9-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 157 even and then at this week’s high of 157 14/32. Buy stops likely reside just above those levels. Shorter-term support lies at this week’s low of 155 25/32 and then at the May low of 155 14/32. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.5

June U.S. T-Notes: 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 below the 9-day. The 9-day is even with the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral early today. Shorter-term resistance lies at the overnight high of 132.09.0 and then at 132.14.0. Buy stops likely reside just above those levels. Shorter-term technical support lies at this week’s low of 131.30.0 and then at 131.27.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.5

EURO CURRENCY

The June Euro currency futures are higher in early U.S. trading. The shorter-term moving averages for the Euro are bullish early today, as the 4-day is above the 9-day and 18-day. The 9-day is above the 18-day moving average. Short-term oscillators for the Euro are neutral to bullish early today. The Euro currency finds shorter-term technical resistance at this week’s high of 1.2251 and then at the February high of 1.2271. Buy stops likely reside just above those levels. Shorter-term support is seen at the overnight low of 1.2174 and then at this week’s low of 1.2133. Sell stops likely reside just below those levels. Wyckoff’s Intra Day Market Rating: 6.0

NYMEX CRUDE OIL

June Nymex crude oil prices are lower in early U.S. trading. Bulls still have the overall near-term technical advantage but are fading late this week. Prices earlier this week tried to push to a new high for the year but could not push above resistance at the March high. That’s a bearish development. The shorter-term moving averages are neutral early today as the 4-day is below the 9-day. The 9-day is above 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 $63.96 and then at $65.00. Look for sell stops just below technical support at this week’s low of $61.95 and then at $61.00. Wyckoff’s Intra-Day Market Rating: 4.0

GRAINS

U.S. grain futures are mostly firmer in early U.S. pre-market trading. The “risk-off” trading attitudes this week are bearish for the grains. Significant chart damage has been inflicted in the grain futures this week, to suggest that near-term market tops are in place. It’s going to very likely take a serious weather market scare in the Corn Belt this summer to revive the grain market bulls. 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, May 19–Jim Wyckoff’s Morning Markets Report

Global stock markets were mixed but mostly lower overnight. U.S. stock indexes are pointed toward lower openings when the New York day session begins.

The U.S. data point of the day Wednesday will be the minutes from the last meeting (April 27-28) of the Federal Reserve’s Open Market Committee (FOMC), due out at 2:00 p.m. EDT. Traders and investors will be looking for further clues on the path of the U.S. economic recovery and on the inflation front.

In overnight news, Bitcoin continues to crumble at mid-week, falling below $40,000 amid reports of China cracking down on crypto currencies’ use for payments and as Elon Musk has made disparaging remarks about cryptos recently. Bitcoin is down around 40% after hitting a high above $65,000 in mid-April. Such reminds of the phrase, “easy come, easy go.”

The key outside markets today see the U.S. dollar index higher on a rebound from hitting a nearly three-month low Tuesday. Meantime, Nymex crude oil prices are lower on a corrective pullback after hitting a two-month high Tuesday, and are trading around $64.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching around 1.66%.

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

–Jim

U.S. STOCK INDEXES

June S&P 500 e-mini futures: Prices are lower in early U.S. trading. Bulls have the overall near-term technical advantage. However, a near-term price uptrend on the daily chart has been negated to suggest a market top is in place. The shorter-term moving averages (4-, 9- and 18-day) are bearish early today. The 4-day moving average is below the 9-day. The 9-day is below 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 4,123.00 and then at 4,150.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at 4,050.00 and then at the May low of 4,029.25. Sell stops likely reside below those levels. Wyckoff’s Intra-day Market Rating: 4.0

June Nasdaq index futures: Prices are lower in early U.S. trading. The near-term price uptrend on the daily chart was negated last week to suggest a market top is in place. 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 early today. Shorter-term technical resistance is seen at the overnight high of 13,223.00 and then at this week’s high of 13,448.50. Buy stops likely reside just above those levels. On the downside, shorter-term support is seen at 13,000.00 and then at the May low of 12,915.00. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0.

U.S. TREASURY BONDS AND NOTES FUTURES

June U.S. T-Bonds: Prices are lower in early U.S. trading today. Bears have the overall near-term technical advantage. Shorter-term moving averages (4- 9- 18-day) are bearish early today. The 4-day moving average is below the 9-day. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are bearish early today. Shorter-term technical resistance is seen at the overnight high of 156 25/32 and then at 157 even. Buy stops likely reside just above those levels. Shorter-term support lies at 156 even and then at the May low of 155 14/32. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0

June 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 below 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 the overnight high of 132.14.0 and then at this week’s high of 132.21.5. Buy stops likely reside just above those levels. Shorter-term technical support lies at the overnight low of 132.05.0 and then at 132.00.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0

EURO CURRENCY

The June Euro currency futures are lower on a corrective pullback after hitting a nearly three-month high overnight. The shorter-term moving averages for the Euro are bullish early today, as the 4-day is above the 9-day and 18-day. The 9-day is above the 18-day moving average. Short-term oscillators for the Euro are neutral early today. The Euro currency finds shorter-term technical resistance at the overnight high of 1.2251 and then at the February high of 1.2271. Buy stops likely reside just above those levels. Shorter-term support is seen at Tuesday’s low of 1.2159 and then at this week’s low of 1.2133. Sell stops likely reside just below those levels. Wyckoff’s Intra Day Market Rating: 4.0

NYMEX CRUDE OIL

June Nymex crude oil prices are lower on a corrective pullback after hitting a two-month high Tuesday. Bulls still have the solid overall near-term technical advantage. The shorter-term moving averages are neutral early today as the 4-day is even with the 9-day. The 9-day is above 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 $65.35 and then at $66.00. Look for sell stops just below technical support at $64.00 and then at $63.00. Wyckoff’s Intra-Day Market Rating: 4.0

GRAINS

U.S. grain futures are lower in early U.S. pre-market trading, amid a “risk-off” trading day Wednesday that has buyers in grains timid. The corn and soybean markets are still in price uptrends on the daily and the longer-term charts. Wheat has seen its near-term price uptrends soundly negated, to suggest that market has topped out. Trading the rest of this week will be extra important and could set the tone for price action in the grains into late June.

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