Daily Morning Report

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

Thursday, December 10–Jim Wyckoff’s Morning Markets Report

Global stock markets were flat to weaker overnight. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins. The U.S. indexes have this week set more record highs. As the marketplace remains overall upbeat and continues to generally look over the horizon into 2021, when most believe the Covid-19 pandemic will be tamped down, veteran traders wonder if the stock markets will experience a “sell the fact” scenario, whereby all the good news will have been baked into the cake by the time the pandemic actually does fade away—and then the stock markets will have already put in major tops and will be declining.

Traders and investors are now wondering if the U.S. Congress will soon pass a financial aid package for Americans that totals just under $1 trillion. Earlier this week attitudes on the matter were more positive, but have faded late this week as there is still no agreement between Democrats and Republicans.

The marketplace is awaiting the conclusion of the meeting of the European Central Bank Thursday morning, which is expected to see the ECB expand its bond-buying program by 500 million Euros.

Negotiations between the U.K. and European Union regarding a smooth Brexit are ongoing but no agreement has been reached. This continues to create uncertainty and anxiety among European market participants. Reports said a Sunday deadline is in place for reaching an agreement.

In other news, the World Bank reported that gold exchange traded fund (ETF) outflows in November hit a record, due to and improving economic backdrop. Gold ETF’s are the main investment vehicle for those investors wanting to own gold.

The U.S. dollar index is weaker early today and not far above last week’s 2.5-year low. The other important outside market sees January Nymex crude oil futures prices higher and trading around $46.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note futures is currently trading at 0.91%.

U.S. economic data due for release Thursday includes the weekly jobless claims report, the consumer price index, real earnings and the monthly Treasury budget statement.

–Jim

U.S. STOCK INDEXES

March S&P 500 e-mini futures: Prices are near steady in early U.S. trading after hitting a record high Wednesday. Bulls have the solid overall near-term technical advantage. The shorter-term moving averages (4-, 9- and 18-day) are bullish early today. The 4-day moving average is above the 9-day. The 9-day is above the 18-day moving average. Short-term oscillators (RSI, slow stochastics) are neutral early today. Today, shorter-term technical resistance comes in at the 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 this week’s low of 3,651.50 and then at 3,625.00. Wyckoff’s Intra-day Market Rating: 5.0

March Nasdaq index futures: Prices are slightly lower in early U.S. trading after hitting a record high Wednesday. Strong selling pressure in the Nasdaq today would confirm a bearish “key reversal” down on the daily bar chart and would be a clue that a market top is in place. But  right now bulls have the solid overall near-term technical advantage. Shorter-term moving averages (4- 9-and 18-day) are bullish early today. The 4-day moving average is above the 9-day. The 9-day average is above the 18-day. Short-term oscillators (RSI, slow stochastics) are neutral to bearish early today. Shorter-term technical resistance is seen at 12,400.00 and then at 12,500.00. On the downside, shorter-term support is seen at the overnight low of 12,302.50 and then at 12,200.00. Wyckoff’s Intra-Day Market Rating: 4.5.

U.S. TREASURY BONDS AND NOTES FUTURES

March U.S. T-Bonds: Prices are firmer in early U.S. trading. Bears have the solid near-term technical advantage. Shorter-term moving averages (4- 9- 18-day) are bearish early today. The 4-day moving average is below the 9-day and 18-day. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral early today. Shorter-term technical resistance is seen at this week’s high of 173 16/32 and then at 174 even. Shorter-term support lies at 172 16/32 and then at 171 30/32. Wyckoff’s Intra-Day Market Rating: 5.5

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 even with 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 the overnight high of 137.25.5 and then at this week’s high of 137.31.5. Shorter-term technical support lies at 137.15.0 and then at last week’s low of 137.07.5. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.5

EURO CURRENCY

The March Euro currency futures are slightly higher 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 early today. The Euro currency finds shorter-term technical resistance at Wednesday’s high of 1.2180 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: 5.5

NYMEX CRUDE OIL

January 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 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 $46.33 and then at last week’s high of $46.68. Look for sell stops just below technical support at the overnight low of $45.52 and then at $45.00. Wyckoff’s Intra-Day Market Rating: 6.0

GRAINS

US grain futures are higher in early U.S. pre-market trading. 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 hurt the grains recently. Traders are awaiting Thursday morning’s latest USDA monthly supply and demand report and the weekly USDA export sales report. Look for more active trading in the grains today.

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, December 9–Jim Wyckoff’s Morning Markets Report

Global stock markets were mixed but mostly up overnight. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins. The U.S. indexes have this week set more record highs. The marketplace continues to generally look over the horizon into 2021, when most believe the Covid-19 pandemic will be tamped down by successful vaccines taken by hundreds of million people and major global economies will be well on the road to full recoveries. However, the World Health Organization has just said, “The epidemic in the U.S. is punishing. It’s widespread. It’s quite frankly shocking to see one to two persons a minute die in the U.S.” The virus is blamed for more than 286,000 deaths and over 15 million confirmed infections in the U.S. New records on daily deaths, infections and hospitalizations continue to be set in the U.S.

Traders and investors are also more upbeat on the increasing likelihood the U.S. Congress will soon pass a financial aid package for Americans that totals just under $1 trillion.

The U.S. dollar index is weaker early today and not far above last week’s 2.5-year low. The other important outside market sees January Nymex crude oil futures prices a bit higher and trading around $45.70 a barrel. The yield on the benchmark 10-year U.S. Treasury note futures is currently trading at 0.91%.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, monthly wholesale trade and the weekly DOE liquid energy stocks report.

–Jim

U.S. STOCK INDEXES

March S&P 500 e-mini futures: Prices are slightly up in early U.S. trading and hit another record high overnight. Bulls have the solid overall near-term technical advantage. The shorter-term moving averages (4-, 9- and 18-day) are bullish early today. The 4-day moving average is above the 9-day. The 9-day is above the 18-day moving average. Short-term oscillators (RSI, slow stochastics) are neutral to bullish early today. Today, shorter-term technical resistance comes in at the overnight 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 this week’s low of 3,656.50 and then at 3,625.00. Wyckoff’s Intra-day Market Rating: 6.0

March Nasdaq index futures: Prices are slightly lower in early U.S. trading after hitting a record high overnight. Bulls have the solid overall near-term technical advantage. Shorter-term moving averages (4- 9-and 18-day) are bullish early today. The 4-day moving average is above the 9-day. The 9-day average is above the 18-day. Short-term oscillators (RSI, slow stochastics) are neutral to bearish early today. Shorter-term technical resistance is seen at the overnight record 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 12,473.00 and then at 12,400.00. Wyckoff’s Intra-Day Market Rating: 4.5.

U.S. TREASURY BONDS AND NOTES FUTURES

March U.S. T-Bonds: Prices are lower in early U.S. trading. Bears have the solid near-term technical advantage. Shorter-term moving averages (4- 9- 18-day) are bearish early today. The 4-day moving average is below 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 172 28/32 and then at this week’s high of 173 16/32. Shorter-term support lies at 172 even and then at last week’s low of 171 4/32. Wyckoff’s Intra-Day Market Rating: 4.0

March U.S. T-Notes: 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 bearish early today. The 4-day moving average is below the 9-day and 18-day. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are bearish early today. Shorter-term resistance lies at the overnight high of 137.23.5 and then at this week’s high of 137.31.5. Shorter-term technical support lies at 137.16.0 and then at last week’s low of 137.07.5. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0

EURO CURRENCY

The March Euro currency futures are slightly higher 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 bearish early today. The Euro currency finds shorter-term technical resistance at last week’s high of 1.2208 and then at 1.2250. Shorter-term support is seen at this week’s low of 1.2111 and then at 1.2072. Wyckoff’s Intra Day Market Rating: 5.5

NYMEX CRUDE OIL

January Nymex crude oil prices are slightly 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 and 18-day. The 9-day is above the 18-day moving average. Short-term oscillators (RSI and slow stochastics) are neutral to bearish early today. Look for buy stops to reside just above technical resistance at the overnight high of $46.24 and then at last week’s high of $46.68. Look for sell stops just below technical support at $45.00 and then at $44.00. Wyckoff’s Intra-Day Market Rating: 5.5

GRAINS

US grain futures are mixed to slightly higher in early U.S. pre-market trading. Grain bulls are wobbly now. The Covid-19 pandemic in the U.S. and other parts of the world and worries about demand, especially from China, are hurting the grains. Traders are awaiting Thursday morning’s latest USDA monthly supply and demand report and trading may be quieter today, ahead of that data.

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