Daily Morning Report

Wednesday, December 16–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly higher overnight. U.S. stock indexes are pointed toward higher openings, and near the recent record highs, when the New York day session begins. The U.S. and other countries have rolled out Covid-19 vaccines in rapid fashion as there appears to be light at the end of the dark pandemic tunnel. The U.K. and the European Union appear to be getting closer to a smooth Brexit deal, and U.S. congressional Democrats and Republicans may be inching closer to a new financial stimulus package for Americans. Both parties have agreed some members won’t leave Washington, D.C., for the holidays until a deal is done.

The economic data point of the day and arguably of the week is today’s conclusion of the U.S. Federal Reserve’s Open Market Committee (FOMC) meeting that began Tuesday morning and ends Wednesday afternoon with a statement and press conference from Fed Chairman Jerome Powell, including the Fed’s economic projections. The marketplace will parse words and comments from Fed officials, for clues on U.S. monetary policy direction in 2021. Most believe the Fed will keep its very accommodative monetary policy. Specifically, the marketplace wants more guidance on the Fed’s bond-buying program (quantitative easing), as the Fed has said it plans to give an update on the matter.

In overnight news, the Euro zone got some upbeat economic data as the Markit composite purchasing managers index (PMI) came in at 49.8 in December from 45.3 in November. A reading above 50.0 suggests growth.

The U.S. dollar index is lower early today and hit another 2.5-year low overnight. The other important outside market sees January Nymex crude oil futures prices slightly higher and trading around $47.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note futures is currently trading around 0.92%.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, retail sales, the flash manufacturing PMI, the flash services PMI, the NAHB housing market index, manufacturing and trade inventories and the weekly DOE liquid energy stocks report.

–Jim

U.S. STOCK INDEXES

March S&P 500 e-mini futures: Prices are higher in early U.S. trading and near the recent record high. Bulls have the solid overall near-term technical advantage. The shorter-term moving averages (4-, 9- and 18-day) are neutral early today. The 4-day moving average is 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 the contract and record high of 3,707.00 and then at 3,725.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at the overnight low of 3,680.00 and then at this week’s low of 3,636.25. Wyckoff’s Intra-day Market Rating: 6.5

March Nasdaq index futures: Prices are higher in early U.S. trading and near the recent 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 neutral to bullish early today. Shorter-term technical resistance is seen at the contract high of 12,667.75 and then at 12,750.00. On the downside, shorter-term support is seen at this week’s low of 12,388.00 and then at 12,300.00. Wyckoff’s Intra-Day Market Rating: 6.5.

U.S. TREASURY BONDS AND NOTES FUTURES

March U.S. T-Bonds: Prices are slightly higher in early U.S. trading. Bears have the firm near-term technical advantage. Shorter-term moving averages (4- 9- 18-day) are neutral early today. The 4-day moving average is above the 9-day. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral early today. Shorter-term technical resistance is seen at this week’s high of 173 31/32 and then at last week’s high of 174 9/32. Shorter-term support lies at this week’s low of 172 16/32 and then at 172 even. Wyckoff’s Intra-Day Market Rating: 5.5

March U.S. T-Notes: Prices are near steady in early U.S. trading. Bears have the 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 resistance lies at this week’s high of 138.04.0 and then at last week’s high of 138.07.0. Shorter-term technical support lies at this week’s low of 137.23.0 and then at 137.16.0. 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 and hit a nearly 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 neutral to bullish early today. The Euro currency finds shorter-term technical resistance at the overnight high of 1.2241 and then at 1.2300. Shorter-term support is seen at the overnight low of 1.2174 and then at this week’s low of 1.2145. Wyckoff’s Intra Day Market Rating: 7.0

NYMEX CRUDE OIL

January Nymex crude oil prices are slightly up and hit a nine-month high 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 and 18-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 $47.91 and then at $49.00. Look for sell stops just below technical support at Tuesday’s low of $46.54 and then at this week’s low of $45.69. Wyckoff’s Intra-Day Market Rating: 6.0

GRAINS

US grain futures are higher in early U.S. pre-market trading. The grain markets are proving resilient amid still-solid worldwide demand for U.S. grains. Grain bulls still have the overall near-term technical advantage. The weaker U.S. dollar index continues to work in favor of the grain market bulls.

IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any traders and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.

Here is what the Commodity Futures Trading Commission

(CFTC) has said about futures trading (and I agree 100%):

1. Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.

Jim Wyckoff

Tuesday, December 15–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly higher overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. It’s risk-on for traders and investors early this week. The first U.S. Covid-19 vaccines have been rolled out to health care professionals, to hopefully turn the tide on the pandemic, which is the worst  respiratory pandemic in over 100 years, since the 1918 Spanish flu. The U.S. Congress appears to be making progress on a slightly slimmed-down ($748 billion) U.S. financial aid package for Americans. Also, reports this week say the U.K. and the European Union have extended the deadline to complete a deal on a smooth Brexit.

In overnight news, China’s economic recovery continued in November. China’s industrial production rose 7.0% versus 6.9% growth in October and 6.8% forecast, year-on-year. China’s retail sales rose 5.0% in November versus 4.3% growth in October and up 5.5% forecast, year-on-year. China’s economic growth comes as other major industrial economies are dealing with new lockdowns due to the spreading Covid-19. Total pandemic U.S. deaths this week surpassed 300,000, with some health experts predicting another 100,000 Americans will die from the virus by the end of January.

The U.S. Federal Reserve’s Open Market Committee (FOMC) meeting begins Tuesday morning and ends Wednesday afternoon with a statement and press conference from Fed Chairman Jerome Powell. The marketplace will parse words and comments from Fed officials, for clues on U.S. monetary policy direction in 2021. Most believe the Fed will keep its very accommodative monetary policy.

The U.S. dollar index is weaker early today after hitting another 2.5-year low on Monday. The other important outside market sees January Nymex crude oil futures prices slightly higher and trading around $47.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note futures is currently trading around 0.9%.

U.S. economic data due for release Tuesday includes the Empire State manufacturing index, import and export prices, industrial production and capacity utilization, and Treasury international capital data.

–Jim

U.S. STOCK INDEXES

March S&P 500 e-mini futures: Prices are higher in early U.S. trading. Bulls have the solid overall near-term technical advantage as prices are not far below last week’s record high. 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 early today. Today, shorter-term technical resistance comes in at Monday’s high of 3.691.50 and then at the contract and record high of 3,707.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at the overnight low of 3,636.25 and then at last week’s low of 3,620.75. 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 to bullish early today. Shorter-term technical resistance is seen at Monday’s high of 12,559.50 and then at the contract high of 12,667.75. On the downside, shorter-term support is seen at Monday’s low of 12,388.00 and then at 12,300.00. Wyckoff’s Intra-Day Market Rating: 6.0.

U.S. TREASURY BONDS AND NOTES FUTURES

March U.S. T-Bonds: Prices are slightly lower in early U.S. trading. Bears have the firm 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 the overnight high of 173 31/32 and then at last week’s high of 174 9/32. Shorter-term support lies at Monday’s low of 172 16/32 and then at 172 even. Wyckoff’s Intra-Day Market Rating: 4.5

March U.S. T-Notes: Prices are weaker in early U.S. trading. Bears have the 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 resistance lies at the overnight high of 138.04.0 and then at last week’s high of 138.07.0. Shorter-term technical support lies at Monday’s low of 137.23.0 and then at 137.16.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.5

EURO CURRENCY

The March Euro currency futures are firmer in early U.S. trading. Bulls remain 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 neutral early today. The Euro currency finds shorter-term technical resistance at the December high of 1.2208 and then at 1.2250. Shorter-term support is seen at Monday’s low of 1.2145 and then at 1.2100. Wyckoff’s Intra Day Market Rating: 6.0

NYMEX CRUDE OIL

January Nymex crude oil prices are near steady in early U.S. trading and close to last week’s eight-month high. 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 and 18-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 Monday’s high of $47.44 and then at last week’s high of $47.74. Look for sell stops just below technical support at Monday’s low of $45.69 and then at $45.00. Wyckoff’s Intra-Day Market Rating: 5.0

GRAINS

US grain futures are mixed to weaker in early U.S. pre-market trading. Not much new this week. Price action has turned choppy. However, grain bulls have the overall near-term technical advantage. The weaker U.S. dollar index continues to work in favor of the grain market bulls.

IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any traders and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.

Here is what the Commodity Futures Trading Commission

(CFTC) has said about futures trading (and I agree 100%):

1. Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.

Jim Wyckoff

Monday, December 14–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly higher overnight. U.S. stock indexes are pointed toward solidly higher openings when the New York day session begins. Trader and investor risk appetite is upbeat to start the trading week. The first U.S. Covid-19 vaccines are rolling out early this week to hopefully turn the tide on the pandemic that has ravaged much of the planet over the past many months. Also, the U.S. Congress’s on-again, off-again U.S. financial aid package for Americans appears to be on again, reports said, as Democrats and Republicans are reportedly closer to agreement on a deal that is a bit smaller in scope. Also, weekend reports said the U.K. and the European Union extended a Sunday deadline to complete a deal on a smooth Brexit.

On tap this week is the U.S. Federal Reserve’s Open Market Committee (FOMC) meeting, which could reveal insight on the plans for the U.S. central bank in the coming new year. The meeting starts on Tuesday morning and ends Wednesday afternoon with a statement and press conference from Fed Chairman Jerome Powell.

Markets are so far paying little attention to reports over the weekend that a major computer hack of some U.S. government offices has occurred over the past months, with many believing Russia is the culprit.

The U.S. dollar index is lower early today. The other important outside market sees January Nymex crude oil futures prices higher and trading around $47.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note futures is currently trading around 0.9%.

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

–Jim

U.S. STOCK INDEXES

March S&P 500 e-mini futures: Prices are higher in early U.S. trading. Bulls have the solid overall near-term technical advantage as prices are not far below last week’s record high. 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 contract and record high of 3,707.00 and then at 3,725.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at the overnight low of 3,667.25 and then at 3,650.00. 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 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 12,500.00 and then at 12,600.00. On the downside, shorter-term support is seen at the overnight low of 12,388.00 and then at 12,300.00. Wyckoff’s Intra-Day Market Rating: 6.0.

U.S. TREASURY BONDS AND NOTES FUTURES

March U.S. T-Bonds: Prices are lower in early U.S. trading. Bears have the firm 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 and 18-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 173 16/32 and then at 174 even. Shorter-term support lies at 172 16/32 and then at 172 even. Wyckoff’s Intra-Day Market Rating: 4.0

March U.S. T-Notes: Prices are lower in early U.S. trading. Bears have the near-term technical advantage. 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 138.00.5 and then at last week’s high of 138.07.0. Shorter-term technical support lies at 137.24.0 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. Bulls remain in solid technical control. The shorter-term moving averages for the Euro are neural 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 for the Euro are neutral to bullish early today. The Euro currency finds shorter-term technical resistance at the December high of 1.2208 and then at 1.2250. Shorter-term support is seen at the overnight low of 1.2145 and then at 1.2100. Wyckoff’s Intra Day Market Rating: 6.5

NYMEX CRUDE OIL

January Nymex crude oil prices are higher in early U.S. trading and closed to last week’s eight-month high. 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 and 18-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 $47.37 and then at last week’s high of $47.74. Look for sell stops just below technical support at the overnight low of $46.47 and then at $46.00. Wyckoff’s Intra-Day Market Rating: 6.0

GRAINS

US grain futures are mixed to higher in early U.S. pre-market trading. Price action has turned choppy. However, grain bulls have the overall near-term technical advantage. On tap Monday 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

Friday, December 11–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly lower overnight. U.S. stock indexes are pointed toward lower openings when the New York day session begins. Risk aversion is keener heading into the weekend, amid worrisome developments. Even though the U.S. is ready to roll out the just-approved by the FDA Covid-19 vaccine to the public, the daily death toll from the virus continues to rise and hit records. Thursday there were over 3,000 deaths in the U.S., while at the same time some states are starting to clamp down tighter their restrictions on businesses and the public. It had been the case where the marketplace was looking over the horizon at the pandemic being quashed by the middle of 2021 and life being back close to normal by the end of next year. However, it appears the marketplace on this day is focusing on the very tough road that lies just ahead, which sees a very dark Covid winter for many the Northern Hemisphere countries.

Another negative on this last trading day of the week is that hopes have once again rapidly faded that the U.S. Congress will soon pass a financial aid package for Americans. Earlier this week attitudes on the matter were much more positive. Now it looks like no agreement between Democrats and Republicans is on the horizon.

And, negotiations between the U.K. and European Union regarding a smooth Brexit appear to be breaking down. Reports said U.K. Prime Minister Boris Johnson has warned Britons to prepare for a “hard Brexit.” Some analysts are still expecting a last-minute compromise before the U.K.-Euro zone economic ties expire on January 1. Still, the Bank of England said Friday it expects some market volatility and disruption to markets following the break-up of the two.

The U.S. dollar index is higher early today. The other important outside market sees January Nymex crude oil futures prices weaker and trading around $46.50 a barrel, after prices hit an eight-month high Thursday. The yield on the benchmark 10-year U.S. Treasury note futures is currently trading around 0.88%.

U.S. economic data due for release Friday includes the producer price index and the University of Michigan consumer sentiment survey.

–Jim

U.S. STOCK INDEXES

March S&P 500 e-mini futures: Prices are lower in early U.S. trading, on profit taking. Bulls still have the solid overall near-term technical advantage. The shorter-term moving averages (4-, 9- and 18-day) are neutral early today. The 4-day moving average is below 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 3,667.00 and then at the contract and record high of 3,707.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at the overnight low of 3,620.75 and then at 3,600.00. Wyckoff’s Intra-day Market Rating: 4.0

March Nasdaq index futures: Prices are lower in early U.S. trading, on normal profit taking. 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 the overnight high of 12,412.75 and then at 12,500.00. On the downside, shorter-term support is seen at this week’s low of 12,217.00 and then at 12,100.00. Wyckoff’s Intra-Day Market Rating: 4.0.

U.S. TREASURY BONDS AND NOTES FUTURES

March U.S. T-Bonds: Prices are higher in early U.S. trading. Bears have the 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 and 18-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 the overnight high of 174 4/32 and then at 175 even. Shorter-term support lies at the overnight low of 173 11/32 and then at 173 even. Wyckoff’s Intra-Day Market Rating: 6.0

March U.S. T-Notes: Prices are higher in early U.S. trading. Bears still have the 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 bullish early today. Shorter-term resistance lies at the overnight high of 138.04.0 and then at 138.08.0. Shorter-term technical support lies at the overnight low of 137.26.5 and then at Thursday’s low of 137.20.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 6.0

EURO CURRENCY

The March Euro currency futures are slightly lower in early U.S. trading. Bulls remain in solid technical control. The shorter-term moving averages for the Euro are neural 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 for the Euro are neutral to bearish early today. The Euro currency finds shorter-term technical resistance at the overnight high of 1.2193 and then at last week’s high of 1.2208. Shorter-term support is seen at this week’s low of 1.2090 and then at 1.2050. Wyckoff’s Intra Day Market Rating: 4.5

NYMEX CRUDE OIL

January Nymex crude oil prices are slightly down in early U.S. trading after hitting an eight-month high Thursday. 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 and 18-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 $47.29 and then at this week’s high of $47.74. Look for sell stops just below technical support at $46.00 and then at $45.00. Wyckoff’s Intra-Day Market Rating: 5.0

GRAINS

US grain futures are mixed in early U.S. pre-market trading. Bulls are squelched late this week amid keener risk aversion in the marketplace. Grain bulls have regained some footing this week. The Covid-19 pandemic in the U.S. and other parts of the world and worries about demand, especially from China, have dented the grains recently.

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