Daily Morning Report

Friday, January 29–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly weaker overnight. U.S. stock indexes are pointed toward modestly lower openings when the New York day session begins. It’s been a very interesting week on Wall Street. Veteran market watchers have never seen anything like the GameStock/Reddit ordeal that is playing out in the U.S. stock market, which has pitted the little guys against the big hedge funds, and the little guys are coming out on top—so far. “The retail traders, they are new actors in the market that people cannot ignore,” said one broker. There appear to be much bigger implications at play than just the GameStock shares rising sharply. Other stocks that are favorites of short-sellers have rallied this week, such as airline stocks. Yet other stocks have seen selling pressure possibly related to the GameStock matter, due to risk-off trading moves and a “sell what you can” mentality” for some worried hedge fund managers. Many traders were infuriated Thursday when some brokers changed their rules on trading Gamestock and other shares. There’s an old adage on Wall Street and in the commodity markets that says major trending price moves come to an end when the fundamentals markedly change, or the rules of the trading game are changed. The record-breaking bull run in the U.S. stock indexes has been both powerful and resilient. Many chart signals that appeared to be bearish and signal market tops have been repeatedly brushed aside by the confident bulls. So much money in the financial system at present and recent history shows the best game in town for that money is the stock market. There’s another old saying: Markets are the most very bullish at the very top in prices. This 35-year market watcher believes the seemingly unstoppable bull market run in equities now has its days numbered, and that hard assets like raw commodities and real estate will come into better favor for traders and investors in the coming months. What do you think? Send me an email at jim@jimwyckoff.com, as I always enjoy hearing from my valued readers.

The key “outside markets” today see the U.S. dollar index modestly higher. Meantime, Nymex crude oil futures prices are higher and trading around $52.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note stands at 1.07%.

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

–Jim

U.S. STOCK INDEXES

March S&P 500 e-mini futures: Prices are weaker in early U.S. trading, on profit taking after hitting a record high earlier this week. Bulls still have the firm overall near-term technical advantage. However, a near-term price uptrend on the daily bar chart has at least temporarily been negated. The shorter-term moving averages (4-, 9- and 18-day) are neutral early today. The 4-day moving average is below the 9-day and 18-day. The 9-day is above the 18-day moving average. Short-term oscillators (RSI, slow stochastics) are bearish early today. Today, shorter-term technical resistance comes in at the overnight high of 3,777.25 and then at 3,800.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at the overnight low of 3,721.50 and then at this week’s low of 3,703.50. Wyckoff’s Intra-day Market Rating: 4.5

March Nasdaq index futures: Prices are lower in early U.S. trading on profit taking after hitting a record high Tuesday. Bulls still have the firm overall near-term technical 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 the overnight high of 13,188.00 and then at 13,300.00. On the downside, shorter-term support is seen at 13,000.00 and then at this week’s low of 12,884.75. Wyckoff’s Intra-Day Market Rating: 4.0.

U.S. TREASURY BONDS AND NOTES FUTURES

March U.S. T-Bonds: Prices are lower in early U.S. trading. Bears have the firm overall near-term technical advantage and have regained some momentum late this week. Shorter-term moving averages (4- 9- 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. Oscillators (RSI, slow stochastics) are bearish early today. Shorter-term technical resistance is seen at the overnight high of 169 29/32 and then at 170 16/32. Shorter-term support lies at the overnight low of 168 28/32 and then at 168 16/32. Wyckoff’s Intra-Day Market Rating: 4.0

March U.S. T-Notes: Prices are lower in early U.S. trading. Shorter-term moving averages (4- 9- 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. Oscillators (RSI, slow stochastics) are bearish early today. Shorter-term resistance lies at the overnight high of 137.10.5 and then at 137.16.0. Shorter-term technical support lies at the overnight low of 137.02.0 and then at 136.28.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0

EURO CURRENCY

The March Euro currency futures are slightly up in early U.S. trading. 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 1.2182 and then at last week’s high of 1.2203. Shorter-term support is seen at the January low of 1.2067 and then at 1.2000. Wyckoff’s Intra Day Market Rating: 5.5

NYMEX CRUDE OIL

March Nymex crude oil prices are slightly higher in early U.S. trading. Bulls still have the firm overall near-term technical advantage but a price uptrend in place on the daily chart has turned sideways. 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 neutral early today. Look for buy stops to reside just above technical resistance at this week’s high of $53.58 and then at the January high of $53.94. Look for sell stops just below technical support at today’s low of $51.93 and then at last week’s low of $51.44. Wyckoff’s Intra-Day Market Rating: 5.5

GRAINS

U.S. grain futures are higher in early U.S. pre-market trading. The bulls this week have regained upside momentum and power to suggest more price gains in the near term. This week’s lows in the grains are now the latest “reaction lows” in near-term price uptrends and are very important technical support levels that the bulls must defend.

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, January 27–Jim Wyckoff’s Morning Markets Report

Global stock markets were flat to mixed overnight. U.S. stock indexes are pointed toward mixed openings when the New York day session begins. It’s a busy week for U.S. economic data, highlighted by the Federal Reserve’s two-day Open Market Committee (FOMC) meeting that began Tuesday morning and ends Wednesday afternoon with a statement and Fed Chairman Powell’s press conference. Markets could become more active in the afternoon trade, following the FOMC statement’s release at 2:00 p.m. EDT. Fed Chairman Powell does have a history of making unexpected remarks during his press conference that have rattled markets.

Possibly flying just under the radar of the marketplace at present is talk among some traders and brokers that China is experiencing a serious food shortage. China has been making bigger purchases of U.S. grains lately, as part of a previous trade agreement between the two largest economies in the world. Also, there are some reports that Covid-19 is making a resurgence in some locations in China. All of the above could impact China’s economic growth prospects. Of course, the China government’s secretive nature makes anything of this nature hard to confirm, but it bears keeping a closer eye upon.

The key “outside markets” today see the U.S. dollar index higher. Meantime, Nymex crude oil futures prices are near steady and trading around $52.65 a barrel. The yield on the benchmark 10-year U.S. Treasury note stands at 1.04%.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, durable goods orders, the FOMC statement and the weekly DOE liquid energy stocks report.

–Jim

U.S. STOCK INDEXES

March S&P 500 e-mini futures: Prices are lower in early U.S. trading on profit taking after hitting a record high Tuesday. Bulls still have the solid overall near-term technical advantage. A near-term price uptrend is firmly in place on the daily bar chart. 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 bearish early today. Today, shorter-term technical resistance comes in at 3,840.00 and then at the record high of 3,862.25. Buy stops likely reside just above those levels. Downside support for active traders is seen at the overnight low of 3,800.50 and then at 3,788.50. Wyckoff’s Intra-day Market Rating: 4.0

March Nasdaq index futures: Prices are weaker on profit taking after hitting a record high Tuesday. Bulls have the solid overall near-term technical 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 bearish early today. Shorter-term technical resistance is seen at Tuesday’s record high of 13,599.75 and then at 13,700.00. On the downside, shorter-term support is seen at Tuesday’s low of 13,380.25 and then at 13,250.00. Wyckoff’s Intra-Day Market Rating: 4.5.

U.S. TREASURY BONDS AND NOTES FUTURES

March U.S. T-Bonds: Prices are firmer in early U.S. trading. Bears still have the firm overall near-term technical advantage amid a price downtrend in place on the daily chart. 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 to bullish early today. Shorter-term technical resistance is seen at this week’s high of 170 9/32 and then at 171 even. Shorter-term support lies at the overnight low of 169 20/32 and then at 169 even. Wyckoff’s Intra-Day Market Rating: 5.5

March 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 above the 9-day and 18-day. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are bullish early today. Shorter-term resistance lies at this week’s high of 137.14.5 and then at 137.20.0. Shorter-term technical support lies at the overnight low of 137.09.0 and then at 137.00.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.5

EURO CURRENCY

The March Euro currency futures are lower in early U.S. trading. 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 the overnight high of 1.2182 and then at last week’s high of 1.2203. Shorter-term support is seen at this week’s low of 1.2120 and then at 1.2100. Wyckoff’s Intra Day Market Rating: 4.0

NYMEX CRUDE OIL

March Nymex crude oil prices are near steady in early U.S. trading. Bulls still have the solid overall near-term technical advantage amid a price uptrend in place on the daily chart. 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 neutral to bearish early today. Look for buy stops to reside just above technical resistance at this week’s high of $53.25 and then at the January high of $53.94. Look for sell stops just below technical support at $52.00 and then at last week’s low of $51.44. Wyckoff’s Intra-Day Market Rating: 5.0

GRAINS

U.S. grain futures are higher again in early U.S. pre-market trading, as the bulls this week have done just what they needed to do after last Friday’s big losses. The bulls have regained momentum and power to suggest at least a challenge of the recent highs, if not pushing to new highs. This week’s lows in the grains are very important technical support levels that the bulls must defend.

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, January 26–Jim Wyckoff’s Morning Markets Report

Global stock markets were mixed overnight, with Asian indexes mostly down and European indexes mostly up. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins. It’s a busy week for U.S. economic data, highlighted by the Federal Reserve’s two-day Open Market Committee (FOMC) meeting that begins Tuesday morning and ends Wednesday afternoon with a statement and Fed Chairman Powell’s press conference. The featured data point in the U.S. today is the consumer price index. It’s also a busy week for corporate earnings reports.

The marketplace continues to monitor progress or lack thereof on the Biden administration’s efforts to push a $1.9 trillion financial aid package through Congress, to help Americans and businesses hurt by the pandemic. Right now, most reckon the package will get through Congress with possible modifications.

In other news, the U.S. Senate on Monday confirmed former Fed chair Janet Yellen as the new U.S. Treasury Secretary. A Wall Street Journal story just out had the headline: “Treasury and Fed Set for Close Alliance.” That suggests more easy money policies coming from the Fed and Treasury for some time to come.

The key “outside markets” today see the U.S. dollar index near steady. Meantime, Nymex crude oil futures prices are firmer and trading around $53.15 a barrel. The yield on the benchmark 10-year U.S. Treasury note stands at 1.04%.

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

–Jim

U.S. STOCK INDEXES

March S&P 500 e-mini futures: Prices are near steady in early U.S. trading and not far below last week’s record high. Bulls have the solid overall near-term technical advantage. A near-term price uptrend is firmly in place on the daily bar chart. 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 record high of 3,859.75 and then at 3,885.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at the overnight low of 3,821.50 and then at 3,800.00. Wyckoff’s Intra-day Market Rating: 5.5

March Nasdaq index futures: Prices are slightly down after hitting a record high Monday. Bulls have the solid overall near-term technical 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 Monday’s record high of 13,554.50 and then at 13,650.00. On the downside, shorter-term support is seen at the overnight low of 13,380.25 and then at 13,250.00. Wyckoff’s Intra-Day Market Rating: 5.0.

U.S. TREASURY BONDS AND NOTES FUTURES

March U.S. T-Bonds: Prices are lower in early U.S. trading, on a mild pullback after solid gains and a three-week high scored overnight. Bears still have the solid overall near-term technical advantage amid a price downtrend in place on the daily chart. 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 the overnight high of 170 9/32 and then at 171 even. Shorter-term support lies at 169 even and then at Monday’s low of 168 19/32. Wyckoff’s Intra-Day Market Rating: 4.0

March U.S. T-Notes: Prices are weaker in early U.S. trading and seeing a mild pullback after hitting a three-week high Monday. 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 resistance lies at this week’s high of 137.14.5 and then at 137.20.0. Shorter-term technical support lies at 137.02.0 and then at 137.00.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.5

EURO CURRENCY

The March Euro currency futures are slightly lower in early U.S. trading. 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 bullish early today. The Euro currency finds shorter-term technical resistance at last week’s high of 1.2203 and then at 1.2239. Shorter-term support is seen at the overnight low of 1.2120 and then at 1.2100. Wyckoff’s Intra Day Market Rating: 5.0

NYMEX CRUDE OIL

March Nymex crude oil prices are firmer in early U.S. trading. Bulls still have the solid overall near-term technical advantage amid a price uptrend in place on the daily chart. 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 neutral early today. Look for buy stops to reside just above technical resistance at the overnight high of $53.24 and then at the January high of $53.94. Look for sell stops just below technical support at the overnight low of $52.29 and then at last week’s low of $51.44. Wyckoff’s Intra-Day Market Rating: 5.5

GRAINS

U.S. grain futures are mostly higher in early U.S. pre-market trading, as the bulls early this week work to stabilize their markets after last Friday’s big losses. So far, bulls are making progress on repairing the near-term technical damage inflicted last week, but the corn and bean bulls have more work to do to suggest near-term price uptrends can be restarted. Wheat remains in a near-term price uptrend. Monday’s lows in the grains are now very important technical support levels that the bulls must defend.

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, January 25–Jim Wyckoff’s Morning Markets Report

Global stock markets were flat to mostly firmer overnight. U.S. stock indexes are pointed toward modestly higher openings when the New York day session begins. It’s a busy week for U.S. economic data, highlighted by the Federal Reserve’s two-day Open Market Committee (FOMC) meeting that begins Tuesday morning and ends Wednesday afternoon with a statement and Fed Chairman Powell’s press conference.

Attention will also be on the Biden administration’s efforts to push through Congress its $1.9 trillion stimulus package for Americans and businesses. Republicans are balking at the size of the package.

The key “outside markets” today see the U.S. dollar index near steady. Meantime, Nymex crude oil futures prices are higher and trading around $52.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note stands at 1.10%.

U.S. economic data due for release Monday includes the Chicago Fed national activity index and the Texas manufacturing outlook survey.

–Jim

U.S. STOCK INDEXES

March S&P 500 e-mini futures: Prices are firmer in early U.S. trading and not far below last week’s record high. Bulls have the solid overall near-term technical advantage. A near-term price uptrend is firmly in place on the daily bar chart. 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 record high of 3,859.75 and then at 3,885.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at Friday’s low of 3,834.00 and then at 3,800.00. Wyckoff’s Intra-day Market Rating: 6.0

March Nasdaq index futures: Prices are higher and hit a record high in early U.S. trading today. Bulls have the solid overall near-term technical 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 bullish early today. Shorter-term technical resistance is seen at 13,500.00 and then at 13,600.00. On the downside, shorter-term support is seen at the overnight low of 13,368.75 and then at 13,250.00. Wyckoff’s Intra-Day Market Rating: 6.5.

U.S. TREASURY BONDS AND NOTES FUTURES

March U.S. T-Bonds: Prices are higher in early U.S. trading, on short covering. Bears have the solid overall near-term technical advantage amid a price downtrend in place on the daily chart. 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 last week’s high of 169 12/32 and then at 169 22/32. Shorter-term support lies at the overnight low of 168 19/32 and then at last week’s low of 168 6/32. Wyckoff’s Intra-Day Market Rating: 6.0

March U.S. T-Notes: Prices are slightly up in early U.S. trading and hit a two-week high. 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 137.08.0 and then at 137.12.0. Shorter-term technical support lies at the overnight low of 136.30.0 and then at last week’s low of 136.21.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.5

EURO CURRENCY

The March Euro currency futures are slightly lower in early U.S. trading. 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 early today. The Euro currency finds shorter-term technical resistance at last week’s high of 1.2203 and then at 1.2239. Shorter-term support is seen at the overnight low of 1.2153 and then at 1.2121. Wyckoff’s Intra Day Market Rating: 5.0

NYMEX CRUDE OIL

March Nymex crude oil prices are firmer in early U.S. trading. Bulls still have the solid overall near-term technical advantage amid a price uptrend in place on the daily chart. 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 neutral early today. Look for buy stops to reside just above technical resistance at the overnight high of $52.88 and then at the January high of $53.94. Look for sell stops just below technical support at the overnight low of $52.04 and then at last week’s low of $51.44. Wyckoff’s Intra-Day Market Rating: 5.5

GRAINS

U.S. grain futures are mixed to firmer in early U.S. pre-market trading, as the bulls work to stabilize their markets after Friday’s big losses that produced near-term technical damage to suggest market tops are in place. Prices Friday closed at technically bearish weekly low closes and near-term price uptrends were either negated or are now in serious jeopardy. On tap today is the weekly USDA export inspections 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