Daily Morning Report

Friday, January 22–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly lower overnight. U.S. stock indexes are pointed toward lower openings and are seeing routine profit taking heading into the weekend, after hitting new record highs on Thursday. It could be that trader and investor enthusiasm was dented by the new Biden administration’s focus on the still-raging pandemic in the U.S. and other parts of the world. President Biden said Thursday that in the coming weeks the U.S. death toll could surpass half a million. The government’s chief virus expert, Dr. Anthony Fauci, said at a White House press conference on Thursday that the U.S. could begin to get back to normal by the fall, which reminded the marketplace that despite vaccines rolling out there will still be some rocky months ahead, both on a human and economic toll basis.

In overnight news, the Euro zone got some downbeat economic news, as the Markit composite purchasing managers’ index (PMI)fell to 47.5 in January from 49.1 in December. A reading below 50.0 suggests contraction in the sector. A similar report coming out of Japan also dented bullish attitudes in Asia overnight. “A double-dip” recession in the Euro zone is looking increasingly inevitable, said one European market analyst.

The key “outside markets” today see the U.S. dollar index slightly higher. Meantime, Nymex crude oil futures prices are solidly lower and trading around $51.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note stands at 1.10%.

U.S. economic data due for release Friday includes the U.S. flash manufacturing PMI, the services PMI, existing home sales 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 Thursday. 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 the overnight high of 3,849.00 and then at the record high of 3,859.75. Buy stops likely reside just above those levels. Downside support for active traders is seen at 3,800.00 and then at 3,788.50. Wyckoff’s Intra-day Market Rating: 4.0

March Nasdaq index futures: Prices are lower in early U.S. trading on routine profit taking after hitting a record high on Thursday. Bulls still 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 record high of 13,423.50 and then at 13,500.00. On the downside, shorter-term support is seen at 13,200.00 and then at 13,100.00. Wyckoff’s Intra-Day Market Rating: 4.5.

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 this week’s high of 169 12/32 and then at 169 22/32. Shorter-term support lies at this week’s low of 168 6/32 and then at 168 even. Wyckoff’s Intra-Day Market Rating: 5.5

March U.S. T-Notes: Prices are slightly up in early U.S. trading. Shorter-term moving averages (4- 9- 18-day) are neutral early today. The 4-day moving average is above the 9-day. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are bullish early today. Shorter-term resistance lies at this week’s high of 137.02.0 and then at 137.08.0. Shorter-term technical support lies at 136.25.5 and then at this 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 firmer in early U.S. trading. Bulls have stabilized the market this week. The shorter-term moving averages for the Euro are still 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 bullish early today. The Euro currency finds shorter-term technical resistance at the overnight high of 1.2203 and then at last week’s high of 1.2239. Shorter-term support is seen at the overnight low of 1.2164 and then at 1.2121. Wyckoff’s Intra Day Market Rating: 6.0

NYMEX CRUDE OIL

March Nymex crude oil prices are solidly lower in early U.S. trading, on profit taking from recent gains. 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 bearish early today. Look for buy stops to reside just above technical resistance at the overnight high of $53.16 and then at the January high of $53.94. Look for sell stops just below technical support at the overnight low of $51.60 and then at $51.00. Wyckoff’s Intra-Day Market Rating: 4.0

GRAINS

U.S. grain futures are sharply lower in early U.S. pre-market trading, on heavy profit taking from recent gains. The grain markets bulls still have the solid overall near-term technical advantage. How prices close on Friday—nearer the weekly highs or weekly lows—would be a good clue on the likely direction of the near-term price trends. Right now it strongly appears the grains are headed for bearish weekly low closes on a Friday, which would be a clue that near-term market tops are in place.

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, January 21–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly higher overnight. U.S. stock indexes are pointed toward firmer openings and new record highs when the New York day session begins. The marketplace is more upbeat following the peaceful transition of U.S. power on Wednesday, with no civil unrest that some had feared would occur. It’s expected President Bident will quickly act with Congress to get his $1.9 trillion stimulus plan rolling, and that markets also like that. It’s also a big corporate earnings week in the stock market, with most of those reports being upbeat. For now, traders and investors have pushed aside the still-raging Covid-19 pandemic in the U.S. and other countries. In the U.S. the death toll has surpassed 400,000, with many more lives likely to be lost in the coming weeks. New strains of Covid are also a worry amid hopes that vaccine distribution will dramatically pick up with the new U.S. administration.

The key “outside markets” today see the U.S. dollar index lower as bulls are fading this week following the recent good rebound from a 2.5-year low scored earlier this month. The main rival to the greenback, the Euro currency, is also in a mild tailspin at present. The weaker dollar and weaker Euro, which usually trade divergently, suggest the “commodity” currencies such as the Australian and Canadian dollars are the better performers. Meantime, Nymex crude oil futures prices are lower and trading around $53.00 a barrel, but still not far below the recent 10-month high. The yield on the benchmark 10-year U.S. Treasury note stands at 1.09%.

U.S. economic data due for release Thursday includes the weekly jobless claims report, the Philadelphia Fed business survey, and new residential construction.

–Jim

U.S. STOCK INDEXES

March S&P 500 e-mini futures: Prices are firmer in early U.S. trading and hit a new 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 bullish early today. Today, shorter-term technical resistance comes in at the overnight record high of 3,859.75 and then at 3,880.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at 3,825.00 and then at 3,800.00. Wyckoff’s Intra-day Market Rating: 6.5

March Nasdaq index futures: Prices are higher in early U.S. trading and hit another record high. 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 the overnight record high of 13,392.00 and then at 13,500.00. On the downside, shorter-term support is seen at 13,200.00 and then at 13,100.00. Wyckoff’s Intra-Day Market Rating: 6.5.

U.S. TREASURY BONDS AND NOTES FUTURES

March U.S. T-Bonds: Prices are near steady in early U.S. trading. 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 neutral early today. Shorter-term technical resistance is seen at this week’s high of 169 12/32 and then at 169 22/32. Shorter-term support lies at this week’s low of 168 10/32 and then at 168 even. Wyckoff’s Intra-Day Market Rating: 5.0

March 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 above the 9-day. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral early today. Shorter-term resistance lies at this week’s high of 137.02.0 and then at 137.08.0. Shorter-term technical support lies at Wednesday’s low of 136.25.5 and then at this week’s low of 136.21.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.0

EURO CURRENCY

The March Euro currency futures are higher in early U.S. trading. Bulls have faded recently but have stabilized the market late this week. The shorter-term moving averages for the Euro are still 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 bullish early today. The Euro currency finds shorter-term technical resistance at this week’s high of 1.2174 and then at last week’s high of 1.2239. Shorter-term support is seen at the overnight low of 1.2121 and then at Wednesday’s low of 1.2091. Wyckoff’s Intra Day Market Rating: 6.0

NYMEX CRUDE OIL

March Nymex crude oil prices are weaker in early U.S. trading. Bulls 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 bearish early today. Look for buy stops to reside just above technical resistance at the January high of $53.94 and then at $55.00. Look for sell stops just below technical support at this week’s low of $51.81 and then at $51.00. Wyckoff’s Intra-Day Market Rating: 4.5

GRAINS

U.S. grain futures are higher in early U.S. pre-market trading, on good rebounds from this week’s price pressure. The grain markets bulls still have the solid overall near-term technical advantage. How prices close on Friday—nearer the weekly highs or weekly lows—would be a good clue on the likely direction of the near-term price trends.

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 20–Jim Wyckoff’s Morning Markets Report

Global stock markets were mixed but mostly higher overnight. U.S. stock indexes are pointed toward firmer openings when the New York day session begins. The highlight of the U.S. trading day will be the presidential inauguration of Democrat Joe Biden. Look for Biden to hit the ground running by reversing many of outgoing President Trump’s executive orders. Biden and his Democrat-controlled Congress are also set to roll out big spending plans that could further lay the seeds for problematic price inflation down the road. Incoming U.S. Treasury Secretary Janet Yellen on Tuesday told lawmakers that going “big” on spending is needed to begin to repair the severe economic damage caused by the pandemic.

Aside from the inauguration, it’s a big corporate earnings week in the stock market.

In overnight news, the Euro zone December consumer price index came in at up 0.3% from November and down 0.3%, year-on-year. Those numbers are not anywhere close to suggesting rising inflation, and even hint that deflation may become the problem.

The key “outside markets” today see the U.S. dollar index slightly lower as bulls are fading this week following the recent good rebound from a 2.5-year low scored earlier this month. Meantime, Nymex crude oil futures prices are higher, trading around $53.50 a barrel and near a 10-month high. The yield on the benchmark 10-year U.S. Treasury note stands at 1.12%.

U.S. economic data due for release Wednesday is light and includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, the NAHB housing market index.

–Jim

U.S. STOCK INDEXES

March S&P 500 e-mini futures: Prices are firmer in early U.S. trading and not far below the recent record high. Bulls have the solid overall near-term technical advantage. A near-term price uptrend is in place on the daily bar chart. The shorter-term moving averages (4-, 9- and 18-day) are neutral early today. The 4-day moving average is below the 9-day. The 9-day is above the 18-day moving average. Short-term oscillators (RSI, slow stochastics) are neutral to bullish early today. Today, shorter-term technical resistance comes in at the record high of 3,824.50 and then at 3,850.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at Tuesday’s low of 3,740.50 and then at 3,700.00. Wyckoff’s Intra-day Market Rating: 6.0

March Nasdaq index futures: Prices are higher in early U.S. trading and close to the record high. Bulls have the solid overall near-term technical advantage. Shorter-term moving averages (4- 9-and 18-day) are neutral early today. The 4-day moving average is even with the 9-day. The 9-day average is above the 18-day. Short-term oscillators (RSI, slow stochastics) are bullish early today. Shorter-term technical resistance is seen at the record high of 13,125.00 and then at 13,250.00. On the downside, shorter-term support is seen at 13,000.00 and then at 12,800.00. Wyckoff’s Intra-Day Market Rating: 6.5.

U.S. TREASURY BONDS AND NOTES FUTURES

March U.S. T-Bonds: Prices are weaker in early U.S. trading. 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 neutral to bearish early today. Shorter-term technical resistance is seen at Tuesday’s high of 169 8/32 and then at 169 22/32. Shorter-term support lies at Tuesday’s low of 168 10/32 and then at 168 even. 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 neutral early today. The 4-day moving average is above the 9-day. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral early today. Shorter-term resistance lies at Tuesday’s high of 136.31.5 and then at 137.06.0. Shorter-term technical support lies at Tuesday’s low of 136.21.0 and then at 136.16.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0

EURO CURRENCY

The March Euro currency futures are weaker in early U.S. trading. Bulls have faded recently. 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 1.2174 and then at last week’s high of 1.2239. Shorter-term support is seen at 1.2100 and then at Tuesday’s low of 1.2067. Wyckoff’s Intra Day Market Rating: 4.5

NYMEX CRUDE OIL

March Nymex crude oil prices are firmer in early U.S. trading. Bulls have the solid overall near-term technical advantage amid a price uptrend in place on the daily chart. 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 January high of $53.94 and then at $54.50. Look for sell stops just below technical support at the overnight low of $53.05 and then at Tuesday’s low of $51.81. Wyckoff’s Intra-Day Market Rating: 6.5

GRAINS

U.S. grain futures are solidly lower in early U.S. pre-market trading, on good follow-through selling pressure from Tuesday’s losses. The grain markets bulls still have the solid overall near-term technical advantage. However, more selling pressure this week would be a clue that markets have topped out. Trading the rest of this week will be extra important.

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 19–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly higher overnight. U.S. stock indexes are also pointed toward higher openings when the New York day session begins. Traders and investors are more upbeat to start the U.S. trading week, following the three-day holiday weekend. Market participants may become more cautious heading into the transition of U.S. power at midday Wednesday, amid high security in Washington, D.C. and at other state capitals around the country. Also, the U.S. just surpassed 400,000 Covid-19 deaths—the most in the world—and there are new concerns about the virus mutating. Those concerns are presently being offset by the vaccines that continue to roll out, albeit after a rocky start in the U.S.

The marketplace today will pay close attention to former Federal Reserve Chair and incoming U.S. Treasury Secretary Janet Yellen as she testifies before a U.S. Senate finance committee. Yellen is expected to talk about the Biden Administration’s spending plans to reinvigorate the U.S. economy from the pandemic’s damage. Last week Biden laid out a $1.9 trillion government spending and assistance plan.

The key “outside markets” today see the U.S. dollar index lower following the recent good rebound from a 2.5-year low scored earlier this month. Meantime, Nymex crude oil futures prices are firmer and are trading around $52.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note stands at 1.12%.

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

–Jim

U.S. STOCK INDEXES

March S&P 500 e-mini futures: Prices are higher in early U.S. trading and not far below the recent record high. Bulls have the solid overall near-term technical advantage. A near-term price uptrend is in place on the daily bar chart. The shorter-term moving averages (4-, 9- and 18-day) are neutral early today. The 4-day moving average is even with the 9-day. The 9-day 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 3,824.50 and then at 3,850.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at the overnight low of 3,740.50 and then at 3,700.00. Wyckoff’s Intra-day Market Rating: 6.5

March Nasdaq index futures: Prices are higher in early U.S. trading. Bulls have the solid overall near-term technical advantage. Shorter-term moving averages (4- 9-and 18-day) are neutral early today. The 4-day moving average is even with the 9-day. The 9-day average is above the 18-day. Short-term oscillators (RSI, slow stochastics) are neutral to bullish early today. Shorter-term technical resistance is seen at 13,000.00 and then at the record high of 13,125.00. On the downside, shorter-term support is seen at the overnight low of 12,727.00 and then at 12,600.00. Wyckoff’s Intra-Day Market Rating: 6.5.

U.S. TREASURY BONDS AND NOTES FUTURES

March U.S. T-Bonds: Prices are lower in early U.S. trading. 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 even with the 9-day. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral to bearish early today. Shorter-term technical resistance is seen at the overnight high of 169 8/32 and then at 169 22/32. Shorter-term support lies at the overnight low of 168 10/32 and then at 168 even. 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 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 to bearish early today. Shorter-term resistance lies at the overnight high of 136.31.5 and then at 137.06.0. Shorter-term technical support lies at 136.16.5 and then at 136.08.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0

EURO CURRENCY

The March Euro currency futures are higher in early U.S. trading after hitting a six-week low overnight. Bulls have faded recently. 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 bullish early today. The Euro currency finds shorter-term technical resistance at 1.2178 and then at last week’s high of 1.2239. Shorter-term support is seen at 1.2100 and then at the overnight low of 1.2067. Wyckoff’s Intra Day Market Rating: 6.5

NYMEX CRUDE OIL

February Nymex crude oil prices are firmer in early U.S. trading. Bulls have the solid overall near-term technical advantage amid a price uptrend in place on the daily chart. 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 last week’s high of $53.93 and then at $54.50. Look for sell stops just below technical support at the overnight low of $51.76 and then at $51.00. Wyckoff’s Intra-Day Market Rating: 6.0

GRAINS

US grain futures are mixed to firmer in early U.S. pre-market trading. The grain markets bulls still have the strong overall near-term technical advantage and are showing resilience. The grain futures are in major bull runs that could see still-higher prices, as speculators continue to show interest on the long side of the markets. However, expect much 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