Daily Morning Report

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

Tuesday, January 5–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly firmer overnight. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins. Monday’s price action in the U.S. stock indexes hints the bulls are now exhausted. The S&P 500 and Nasdaq pushed to new record highs early on but by the end of the day finished near their daily lows, scoring bearish “outside days” down on the daily bar charts. And if there is follow-through selling pressure Tuesday, then more significantly bearish “key reversals” down would be confirmed in both markets, which would be one technical clue that market tops are in place. Keep in mind these potentially bearish chart patterns have occurred in the very recent past, only to see the stock indexes push to new highs.

Focus in the U.S. Tuesday is on the two U.S. Senate seats in Georgia that are being voted upon today, with big implications. If both seats go to the Democrats, they would control the Senate. Outcomes of the elections may not be known until later this week. The stock market fares better in gridlock, which would be more likely if the Democrats did not control the Senate. The commodity markets would likely get a lift if the Senate is controlled by the Democrats, as government spending would likely increase.

The U.S. dollar index is lower today and not far above Monday’s 2.5-year low in early U.S. trading. The other important outside market sees February Nymex crude oil futures prices higher and trading around $48.50 a barrel. Oil prices hit a nine-month high on Monday. The yield on the benchmark 10-year U.S. Treasury note futures is currently around 0.93%.

U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, the ISM New York report on business, the ISM report on business manufacturing and domestic auto industry sales.

–Jim

U.S. STOCK INDEXES

March S&P 500 e-mini futures: Prices are slightly higher in early U.S. trading. Bulls still have the overall near-term technical advantage but a bearish “key reversal” down on the daily bar chart would be confirmed if prices close lower today. A near-term price uptrend is still 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 3,705.00 and then at 3,730.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at Monday’s low of 3,652.50 and then at 3,625.00. Wyckoff’s Intra-day Market Rating: 5.0

March Nasdaq index futures: Prices are near steady in early U.S. trading. Bulls still have the overall near-term technical advantage but a bearish “key reversal” down on the daily bar chart would be confirmed if prices close lower today. 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 the overnight record high of 12,727.50 and then at 12,800.00. On the downside, shorter-term support is seen at 12,600.00 and then at Monday’s low of 12,522.50. 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. Bears have the firm 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 to bearish early today. Shorter-term technical resistance is seen at Monday’s high of 173 11/32 and then at 173 24/32. Shorter-term support lies at Monday’s low of 172 4/32 and then at 171 16/32. Wyckoff’s Intra-Day Market Rating: 4.0

March U.S. T-Notes: Prices are weaker 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. The 9-day is above the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral to bearish early today. Shorter-term resistance lies at Monday’s high of 138.05.5 and then at 138.08.0. Shorter-term technical support lies at Monday’s low of 137.26.0 and then at 137.20.0. 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 and near last week’s two-year high. 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 December high of 1.2330 and then at 1.2350. Shorter-term support is seen at the overnight low of 1.2265 and then at 1.2200. Wyckoff’s Intra Day Market Rating: 6.5

NYMEX CRUDE OIL

February Nymex crude oil prices are higher 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 $49.00 and then at Monday’s high of $49.83. Look for sell stops just below technical support at $48.00 and then at Monday’s low of $47.18. Wyckoff’s Intra-Day Market Rating: 6.0

GRAINS

US grain futures are again solidly higher in early U.S. pre-market trading and hit contract highs. Same story: The grain markets bulls have the solid overall near-term technical advantage amid price uptrends in place on the daily charts. The supply and demand fundamentals in the grains continue to favor the bulls, especially a huge appetite from China. Dry weather in South American growing regions is also bullish for corn and soybeans. Speculators are now keenly interested in playing the long side in the grain futures.

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 4–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly firmer overnight. U.S. stock indexes are pointed toward higher openings and record highs when the New York day session begins. Trader and investor risk appetite remains upbeat on this first trading day of the new year. The marketplace continues to look over the horizon at what is hoped will be a better second-half of 2021, in both economic and human health terms. The incoming Biden administration is expected to roll out more economic aid to the public and businesses. Also, Americans began receiving their U.S. government stimulus funds late last week, which gives many struggling Americans a bit of a temporary life line.

A feature in the marketplace Monday is sharp gains in gold and silver prices, with gold notching a seven-week high of $1,941.00, basis February Comex futures. Safe-haven demand amid surging Covid-19 cases in the U.S., Europe and other parts of the world are supporting the precious metals. Also, the specter of rising and possibly problematic price inflation appears to be gaining some steam and boosting the raw commodity sector.

Commodity markets are also getting a lift early this week in part on some notions the U.S. Senatorial elections in Georgia could see the Democrats win a majority in the Senate, which would make the Senate and the Congress in control of the Democrats. Such would suggest higher spending that would also likely help to stoke price inflation. However, many think it is still unlikely both Democratic senatorial candidates will win in Georgia. The vote is Tuesday.

In overnight news, the Euro zone December manufacturing purchasing managers index (PMI) came in at 55.2 versus 53.8 in November, but was a bit below market expectations. A reading above 50.0 suggests growth in the sector.

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 firmer and trading around $49.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note futures is currently around 0.925%.

U.S. economic data due for release Monday includes the manufacturing purchasing managers index (PMI), construction spending and the global manufacturing PMI.

–Jim

U.S. STOCK INDEXES

March S&P 500 e-mini futures: Prices are higher and hit a contract and record high in early U.S. trading. 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 3,773.25 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 3,738.25 and then at 3,700.00. Wyckoff’s Intra-day Market Rating: 7.0

March Nasdaq index futures: Prices are higher and hit a contract and 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 the overnight record high of 12,959.75 and then at 13,000.00. On the downside, shorter-term support is seen at 12,900.00 and then at the overnight low of 12,825.25. Wyckoff’s Intra-Day Market Rating: 7.0.

U.S. TREASURY BONDS AND NOTES FUTURES

March U.S. T-Bonds: Prices are weaker in early U.S. trading. Bears have the firm 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 to bullish early today. Shorter-term technical resistance is seen at last week’s high of 173 8/32 and then at 173 14/32. Shorter-term support lies at the overnight low of 172 9/32 and then at 172 even. Wyckoff’s Intra-Day Market Rating: 4.0

March U.S. T-Notes: Prices are slightly 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. The 9-day is above the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral to bullish early today. Shorter-term resistance lies at last week’s high of 138.03.5 and then at 138.08.0. Shorter-term technical support lies at the overnight low of 137.26.5 and then at 137.20.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.5

EURO CURRENCY

The March Euro currency futures are solidly higher in early U.S. trading and near last week’s two-year high. 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 December high of 1.2330 and then at 1.2350. Shorter-term support is seen at the overnight low of 1.2249 and then at 1.2200. Wyckoff’s Intra Day Market Rating: 6.5

NYMEX CRUDE OIL

February Nymex crude oil prices are near steady in early U.S. trading after hitting a nine-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 early today. Look for buy stops to reside just above technical resistance at the overnight high of $49.83 and then at $50.00. Look for sell stops just below technical support at $48.00 and then at last week’s low of $47.50. Wyckoff’s Intra-Day Market Rating: 5.5

GRAINS

US grain futures are solidly higher in early U.S. pre-market trading and hit contract highs. The grain markets bulls have the solid overall near-term technical advantage amid price uptrends in place on the daily charts. This bull run in the grains is a major run and one that only occurs once or twice in a decade. The supply and demand fundamentals in the grains continue to favor the bulls, especially a huge appetite from China. Dry weather in South American growing regions is also bullish for corn and soybeans. On tap Monday morning 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