Daily Morning Report

Monday, January 11–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly weaker overnight. U.S. stock indexes are pointed toward lower openings when the New York day session begins. Trader and investor risk appetite is dented to start the trading week. A downbeat U.S. unemployment report last Friday and the aftermath of the U.S. Capitol riot have combined with the still-raging Covid-19 pandemic are weighing on the marketplace. The trading and investment climate “is a little bumpier” than at this time last week, said one market analyst.

Gold prices are posting decent gains Monday, on some safe-haven demand and bargain hunting after prices on Friday dropped sharply and hit a three-week low.

The key “outside markets” today see the U.S. dollar index solidly up. Said one market analyst in a morning email dispatch: “ Shorting the dollar was the most recommended trade in currency markets heading into 2021. However, rising (U.S. government bond) yields could now lead to a rethinking of this strategy. If the yield curve becomes steeper and differentials become much wider, expect to see a strong recovery in the dollar despite the new billions in expected stimulus. According to the latest CFTC data, we are already seeing a trimming of long positions in major currencies (futures) against the greenback.”

Meantime, Nymex crude oil futures prices are weaker and are trading around $51.75 a barrel. Profit taking is featured after crude oil prices last Friday hit a 10-month high.

The benchmark U.S. 10-year Treasury note yield is currently fetching 1.103%.

U.S. economic data due for release Monday is light and includes the employment trends index.

–Jim

U.S. STOCK INDEXES

March S&P 500 e-mini futures: Prices are lower on profit taking after hitting a record high last Friday. Bulls still 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 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 bearish 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 Friday’s low of 3,777.00 and then at 3,750.00. Wyckoff’s Intra-day Market Rating: 4.0

March Nasdaq index futures: Prices are weaker in early U.S. trading after hitting a contract high last Friday. 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 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 Friday’s low of 12,919.00. Wyckoff’s Intra-Day Market Rating: 4.5.

U.S. TREASURY BONDS AND NOTES FUTURES

March U.S. T-Bonds: Prices are slightly higher in early U.S. trading and hit another contract low overnight. 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 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 Friday’s high of 169 13/32 and then at 170 even. Shorter-term support lies at the overnight contract low of 168 2/32 and then at 167 16/32. Wyckoff’s Intra-Day Market Rating: 5.0

March U.S. T-Notes: Prices are near steady and hit a contract low in early U.S. trading. 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 resistance lies at Friday’s high of 136.29.5 and then at 137.00.0. Shorter-term technical support lies at the overnight contract low of 136.14.5 and then at 136.08.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.0

EURO CURRENCY

The March Euro currency futures are lower and hit a three-week low on more profit taking after hitting a two-year high last week. Bulls are fading. The shorter-term moving averages for the Euro 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 for the Euro are bearish early today. The Euro currency finds shorter-term technical resistance at the overnight high of 1.2235 and then at 1.2300. Shorter-term support is seen at the overnight low of 1.2171 and then at 1.2150. Wyckoff’s Intra Day Market Rating: 4.0

NYMEX CRUDE OIL

February Nymex crude oil prices are weaker in early U.S. trading after hitting a 10-month high last Friday. 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 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 $52.75 and then at $53.00. Look for sell stops just below technical support at Friday’s low of $50.81 and then at $50.00. Wyckoff’s Intra-Day Market Rating: 4.5

GRAINS

US grain futures are mixed in early U.S. pre-market trading. The grain markets bulls have the strong overall near-term technical advantage amid price uptrends in place on the daily charts. The steep price gains in the grains recently suggest market tops are likely to occur sooner rather than later. On tap today is weekly USDA export inspections. However, the big highlight of the week and of the month for the grain markets is Tuesday’s USDA supply and demand reports, which are expected to favor the bullish camps.

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, January 8–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly up overnight. U.S. stock indexes are pointed toward higher openings and new record highs when the New York day session begins. Trader and investor risk appetite remains upbeat, due in part to notions a Democratic president and Congress will provide massive spending in the coming months to prop up U.S. businesses and Americans hit hard by the Covid-19 pandemic, which is still raging but which also sees some light at the end of the dark tunnel due to successful vaccines.

The data point of the week, if not the month, is today’s Employment Situation Report issued by the Labor Department. That report is expected to show a U.S. unemployment rate of 6.8% and a non-farm jobs rise of 50,000 in December, versus a rise of 245,000 in November. However, the big miss on the downside in the ADP national employment report on Wednesday has many thinking the same will occur in Friday’s jobs report—a big contraction in non-farm jobs. A big miss on the jobs consensus forecast may or may not significantly move markets. Reason: Traders and investors are so keenly focused on the bullish aspects of the likely end of the raging pandemic this year and the ensuing expected booms in world economies. That focus did not even waver when the U.S. Capitol was stormed by an angry mob this week, as the U.S. stock market continued to march higher.

A feature this first week of the trading year is the re-emergence of the inflation trade. Many commodity futures markets are in bull runs, led by crude oil. The U.S. Treasury markets are seeing rising yields, with the benchmark 10-year note yield now fetching 1.10%, after trading below the 1.0% level since late last winter. To anyone who has studied economics, it seems nearly unfathomable that the massive injections of liquidity into global financial systems over the past months (read that central banks printing money) cannot produce problematic inflation down the road. Rising commodity prices are a harbinger of that problematic inflation scenario.

The key “outside markets” today see the U.S. dollar index slightly up, while Nymex crude oil futures prices are higher, hit a 10-month high overnight and are trading around $51.50 a barrel.

Other U.S. economic data due for release Friday includes monthly wholesale trade data and consumer credit.

–Jim

U.S. STOCK INDEXES

March S&P 500 e-mini futures: Prices are firmer and hit a record high in early U.S. trading. 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 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 3,817.75 and then at 3,850.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at 3,773.00 and then at 3,750.00. Wyckoff’s Intra-day Market Rating: 7.0

March Nasdaq index futures: Prices are higher and hit a record high in early U.S. trading. 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 13,000.00 and then at 13,100.00. On the downside, shorter-term support is seen at the overnight low of 12,919.00 and then at 12,750.00. Wyckoff’s Intra-Day Market Rating: 7.0.

U.S. TREASURY BONDS AND NOTES FUTURES

March U.S. T-Bonds: Prices are weaker again in early U.S. trading and hit another contract low overnight. 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 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 170 even and then at 171 even. Shorter-term support lies at the overnight contract low of 168 15/32 and then at 168 even. Wyckoff’s Intra-Day Market Rating: 4.0

March U.S. T-Notes: Prices are weaker and hit a contract low in early U.S. trading. 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 resistance lies at 137.00.0 and then at Thursday’s high of 137.09.5. Shorter-term technical support lies at the overnight contract low of 136.23.5 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 lower on more profit taking after hitting a two-year high on Wednesday. Bulls are still in solid technical control. The shorter-term moving averages for the Euro 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 for the Euro are bearish early today. The Euro currency finds shorter-term technical resistance at 1.2300 and then at this week’s high of 1.2368. Shorter-term support is seen at the overnight low of 1.2230 and then at 1.2200. Wyckoff’s Intra Day Market Rating: 4.0

NYMEX CRUDE OIL

February Nymex crude oil prices are higher in early U.S. trading and hit another 10-month high overnight. 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 bullish early today. Look for buy stops to reside just above technical resistance at the overnight high of $51.66 and then at $52.00. Look for sell stops just below technical support at the overnight low of $50.81 and then at $50.00. Wyckoff’s Intra-Day Market Rating: 7.0

GRAINS

US grain futures are mixed but mostly higher in early U.S. pre-market trading. The grain markets bulls have the strong overall near-term technical advantage amid price uptrends in place on the daily charts. The steep price gains in the grains recently suggest market tops are likely to occur sooner rather than later. The next big highlight for the grain markets is next Tuesday’s USDA supply and demand reports.

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 7–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly up overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. The stock and financial markets appeared to ignore the protesters that stormed and then occupied for several hours the U.S. Capitol Wednesday afternoon. Congress was disrupted but a few hours later voted to confirm Joe Bident as the next U.S. president. There was also, at least initially, not much markets reaction to the two Georgia U.S. Senate seats that went to the Democrats and gave them the majority in the Senate and in Congress.

Said one market analyst in an email dispatch Thursday morning, “The reflation trade is back on,” referring to the likely big government spending by the Democrats in the next couple years. Indeed, an examination of the actions of the raw commodity futures markets sees many of them rallying to multi-month or multi-year highs, led by Nymex crude oil futures surging to a 10-month high of $51.28 a barrel overnight. The U.S. dollar index has rebounded Thursday from a 2.5-year low hit on Wednesday. Still, the USDX is in deep technical trouble as a price downtrend remains firmly in place. The other market suggesting inflation is on the rise is the U.S. Treasury market, whose 10-year note yield this week has pushed above 1.0%. Thursday the 10-year was yielding 1.044%.

It’s hard for the general marketplace to ignore the price action in Bitcoin recently, as the crypto currency hit a record high above $39,000 on Thursday. Some are calling Bitcoin “the new gold.”

The Employment Situation Report issued by the Labor Department comes out on Friday morning. That report is expected to show a U.S. unemployment rate of 6.8% and a non-farm jobs rise of 50,000 in December, versus a rise of 245,000 in November. However, the big miss on the downside in the ADP national employment report on Wednesday has many thinking the same will occur in Friday’s jobs report—a big contraction in non-farm jobs.

U.S. economic data due for release Thursday includes the weekly jobless claims report, the Challenger job-cuts report, international trade in goods and services, and the ISM report on business.

–Jim

U.S. STOCK INDEXES

March S&P 500 e-mini futures: Prices are firmer in early U.S. trading. Bulls have the solid overall near-term technical advantage as prices are near this week’s record high. 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 early today. Today, shorter-term technical resistance comes in at the record high of 3,774.75 and then at 3,800.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at 3,700.00 and then at this week’s low of 3,652.50. Wyckoff’s Intra-day Market Rating: 6.0

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 below 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 Wednesday’s high of 12,844.25 and then at the record high of 12,959.75. On the downside, shorter-term support is seen at 12,600.00 and then at this week’s low of 12,491.25. Wyckoff’s Intra-Day Market Rating: 5.5.

U.S. TREASURY BONDS AND NOTES FUTURES

March U.S. T-Bonds: Prices are near steady in early U.S. trading and did hit a contract low overnight. 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 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 170 even and then at 171 even. Shorter-term support lies at the overnight contract low of 169 2/32 and then at 168 even. Wyckoff’s Intra-Day Market Rating: 4.5

March U.S. T-Notes: Prices are near steady and hit another seven-week low in early U.S. trading. 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 resistance lies at 137.16.0 and then at 137.24.0. Shorter-term technical support lies at the overnight low of 137.00.5 and then at 136.24.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.5

EURO CURRENCY

The March Euro currency futures are lower on profit taking after hitting a two-year high on Wednesday. Bulls are still in solid technical control. The shorter-term moving averages for the Euro 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 for the Euro are bearish early today. The Euro currency finds shorter-term technical resistance at this week’s high of 1.2368 and then at 1.2400. Shorter-term support is seen at 1.2250 and then at 1.2200. Wyckoff’s Intra Day Market Rating: 6.5

NYMEX CRUDE OIL

February Nymex crude oil prices are slightly higher in early U.S. trading and hit another 10-month high overnight. 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 bullish early today. Look for buy stops to reside just above technical resistance at the overnight high of $51.28 and then at $52.00. Look for sell stops just below technical support at $50.00 and then at $49.00. Wyckoff’s Intra-Day Market Rating: 6.0

GRAINS

US grain futures are mixed in early U.S. pre-market trading after this week setting contract highs. The grain markets bulls have the strong overall near-term technical advantage amid price uptrends in place on the daily charts. The steep price gains in the grains recently suggest market tops are likely to occur sooner rather than later. 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, January 6–Jim Wyckoff’s Morning Markets Report

Global stock markets were mixed overnight. U.S. stock indexes are pointed toward mixed to weaker openings when the New York day session begins. Tuesday’s vote for two U.S. Senate seats in Georgia sees one Democrat declared the winner and the other Democrat with a very slight lead. If both seats go to the Democrats, they would control the Senate. The U.S. stock indexes are seeing some selling pressure on the news, as a Democrat-controlled Congress would likely lead to higher corporate taxes.

The U.S. economic data point of the day will be the ADP national employment report for December, which is expected to show jobs growth of 60,000 versus a rise of 307,000 in the November report. This report is the precursor to the more important Employment Situation Report issued by the Labor Department on Friday morning. That report is expected to show a U.S. unemployment rate of 6.8% and a non-farm jobs rise of 50,000 in December, versus a rise of 245,000 in November.

The other key economic report today is the afternoon release of the minutes of the last meeting of the Federal Reserve’s Open Market Committee (FOMC).

The U.S. dollar index is lower and hit another 2.5-year low in early U.S. trading. The other important outside market sees February Nymex crude oil futures prices higher, at a 10-month high, and trading around $50.30 a barrel. The yield on the benchmark 10-year U.S. Treasury note futures is currently around 1.02%, a 10-month high. For perspective, the German 10-year government bond (bund) sees its yield currently at -0.54%.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the ADP national employment report, manufacturers’ shipments and inventories, the global services PMI, the weekly DOE liquid energy stocks report, and the FOMC minutes from the last meeting.

–Jim

U.S. STOCK INDEXES

March S&P 500 e-mini futures: Prices are weaker in early U.S. trading. Bulls still 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 bearish early today. Today, shorter-term technical resistance comes in at the overnight high of 3,734.75 and then at the record high of 3,773.25. Buy stops likely reside just above those levels. Downside support for active traders is seen at this week’s low of 3,652.50 and then at 3,625.00. Wyckoff’s Intra-day Market Rating: 4.0

March Nasdaq index futures: Prices are sharply lower and hit a two-week low in early U.S. trading. Bulls still 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 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 12,700.00 and then at the overnight high of 12,844.25. On the downside, shorter-term support is seen at the overnight low of 12,491.25 and then at 12,400.00. Wyckoff’s Intra-Day Market Rating: 3.0.

U.S. TREASURY BONDS AND NOTES FUTURES

March U.S. T-Bonds: Prices are solidly lower and hit a contract low 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 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 171 even and then at 172 even. Shorter-term support lies at the overnight contract low of 170 16/32 and then at 170 even. Wyckoff’s Intra-Day Market Rating: 3.0

March U.S. T-Notes: Prices are sharply down and hit a seven-week low in early U.S. trading. 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 resistance lies at 137.16.0 and then at 137.24.0. Shorter-term technical support lies at the overnight low of 137.06.0 and then at 137.00.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 3.0

EURO CURRENCY

The March Euro currency futures are higher and hit a two-year high in early U.S. trading. Bulls are in solid technical control. The shorter-term moving averages for the Euro 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 for the Euro are bullish early today. The Euro currency finds shorter-term technical resistance at the overnight high of 1.2368 and then at 1.2400. Shorter-term support is seen at the overnight low of 1.2292 and then at this week’s low of 1.2249. Wyckoff’s Intra Day Market Rating: 6.5

NYMEX CRUDE OIL

February Nymex crude oil prices are slightly higher in early U.S. trading and hit a 10-month high overnight. 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 overnight high of $50.59 and then at $51.00. Look for sell stops just below technical support at $49.00 and then at $48.00. Wyckoff’s Intra-Day Market Rating: 6.0

GRAINS

US grain futures are again higher to sharply up in early U.S. pre-market trading and are at or near contract highs. The grain markets bulls have the strong overall near-term technical advantage amid price uptrends in place on the daily charts. The steep price gains in the grains recently suggest market tops are likely to occur sooner rather than later.

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