Daily Morning Report

Thursday, November 19–Jim Wyckoff’s Morning Markets Report

Global stock markets were mixed to lower overnight. U.S. stock indexes are pointed toward lower openings when the New York day session begins. Increasing restrictions on businesses and the public in the U.S. and Europe, to fight off the out-of-control Covid-19 pandemic, are starting to bite global equity markets, after they had been looking past the matter because of the upbeat vaccine news recently. Hope has been clashing with fear in the marketplace, and on this day it appears fear is winning the battle. New U.S. Covid infections topped 170,000 Wednesday and the U.S. death toll has moved above a quarter-million citizens.

News reports said Goldman Sachs is forecasting bull markets in raw commodities as a hedge against impending inflation. Goldman forecast a return of around 27% over the next 12-months on the Goldman Sachs Commodity Index (GSCI) index, with a 19% return for precious metals, 40% for energy, 3% for industrial metals and a -1% return on agriculture. The grain futures markets are already in a major bull run. Goldman reportedly kept its target of $2,300 an ounce for gold and $30 an ounce for silver.

The U.S. dollar index is higher early today on a corrective bounce from selling pressure earlier this week. Many analysts are predicting further depreciation in the coming months for the greenback on the foreign exchange market. The other important outside market sees crude oil prices lower and trading around $41.15 a barrel. The yield on the benchmark 10-year U.S. Treasury note futures is currently trading at 0.85%.

U.S. economic data due for release Thursday includes the weekly jobless claims report, the Philadelphia Fed business survey, existing home sales, leading economic indicators, and the Kansas City Fed manufacturing survey.

–Jim

U.S. STOCK INDEXES

December S&P 500 e-mini futures: Prices are weaker in early U.S. trading. Bulls still have the solid overall near-term technical advantage and prices are not far below the recent spike high. The shorter-term moving averages (4-, 9- and 18-day) are bullish early today. The 4-day moving average is above the 9-day and 18-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 3,600.00 and then at this week’s high of 3,637.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at the overnight low of 3,542.50 and then at 3,525.00. Wyckoff’s Intra-day Market Rating: 4.5

December Nasdaq index futures: Prices are modestly down in early U.S. trading. Bulls have the firm overall near-term technical advantage, but stiff resistance layers lie just above the market. 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 bearish early today. Shorter-term technical resistance is seen at 12,000.00 and then at this week’s high of 12,096.25. On the downside, shorter-term support is seen at the overnight low of 11,804.50 and then at 11,700.00. Wyckoff’s Intra-Day Market Rating: 4.5.

U.S. TREASURY BONDS AND NOTES FUTURES

December U.S. T-Bonds: Prices are higher in early U.S. trading. Bears still 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 bullish early today. Shorter-term technical resistance is seen at this week’s high of 173 15/32 and then at 174 even. Shorter-term support lies at the overnight low of 172 24/32 and then at 172 5/32. Wyckoff’s Intra-Day Market Rating: 5.0

December U.S. T-Notes: Prices are higher in early U.S. trading. Bears still 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 resistance lies at the overnight high of 138.13.0 and then at this week’s high of 138.16.5. Shorter-term technical support lies at the overnight low of 138.07 and then at 138.00.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.5

EURO CURRENCY

The March Euro currency futures are lower in early U.S. trading. 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 the overnight high of 1.1886 and then at this week’s high of 1.1925. Shorter-term support is seen at this week’s low of 1.1849 and then at 1.1800. Wyckoff’s Intra Day Market Rating: 4.5

NYMEX CRUDE OIL

January Nymex crude oil prices are weaker in early U.S. trading. Bulls have the overall near-term technical advantage. 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 $42.08 and then at this week’s high of $42.68. Look for sell stops just below technical support at the overnight low of $41.57 and then at this week’s low of $40.40. Wyckoff’s Intra-Day Market Rating: 5.5

GRAINS

US grain futures are lower in early U.S. pre-market trading. Profit taking from recent gains is featured. Also, today’s risk-off trader mentality is negative for the grains. On tap today is the weekly USDA export sales report. The grain market bulls still have the solid overall near-term technical advantage amid price uptrends in place in all three markets.

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, November 18–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly up overnight, while U.S. stock indexes are pointed toward firmer openings when the New York day session begins. The marketplace is presently grappling with the specter of a Covid-19 vaccine coming to the public in the coming months that will likely give economies a strong boost, while at the same time realizing it’s going to be a grim winter as the pandemic continues to rage in many areas around the globe, including the U.S. and parts of Europe.

Also weighing on trader/investor sentiment is the likelihood that no new U.S. government stimulus package is on horizon despite millions of Americans struggling after Covid wiped out their jobs.

In overnight news, the Euro zone October consumer price index rose 0.2% from September and was down 0.3%, year-on-year. Those numbers were in line with market expectations and still don’t show any signs of problematic inflation any time soon. Once the pandemic is under control and economies start to recover rapidly, that’s likely when producer and consumer prices could start to rise at a faster clip.

The U.S. dollar index is lower again early today and the greenback bears are having a good week. The other important outside market sees crude oil prices firmer and trading around $41.80 a barrel. The yield on the benchmark 10-year U.S. Treasury note futures is currently trading at 0.86%.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, new residential construction and the weekly DOE liquid energy stocks report.

–Jim

U.S. STOCK INDEXES

December S&P 500 e-mini futures: Prices are firmer in early U.S. trading. Bulls have the solid overall near-term technical advantage and prices are not far below the recent spike high. The shorter-term moving averages (4-, 9- and 18-day) are bullish early today. The 4-day moving average is above the 9-day and 18-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 this week’s high of 3,637.00 and then at the November high of 3,668.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at the overnight low of 3,585.75 and then at 3,550.00. Wyckoff’s Intra-day Market Rating: 5.5

December Nasdaq index futures: Prices are firmer 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 neutral early today. Shorter-term technical resistance is seen at this week’s high of 12,096.25 and then at the October high of 12,249.00. On the downside, shorter-term support is seen at this week’s low of 11,851.75 and then at 11,775.00. Wyckoff’s Intra-Day Market Rating: 5.5.

U.S. TREASURY BONDS AND NOTES FUTURES

December U.S. T-Bonds: Prices are near steady in early U.S. trading. Bears still have the solid 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 15/32 and then at 174 even. Shorter-term support lies at 172 even and then at this week’s low of 171 9/32. Wyckoff’s Intra-Day Market Rating: 5.0

December U.S. T-Notes: Prices are near steady 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 resistance lies at the overnight high of 138.16.5 and then at 138.24.0. Shorter-term technical support lies at 138.00 and then at this week’s low of 137.27.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.0

EURO CURRENCY

The March Euro currency futures are higher in early U.S. trading. 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 this week’s high of 1.1925 and then at the November high of 1.1954. Shorter-term support is seen at this week’s low of 1.1849 and then at 1.1800. Wyckoff’s Intra Day Market Rating: 5.5

NYMEX CRUDE OIL

December Nymex crude oil prices are firmer in early U.S. trading. Bulls have the near-term technical advantage. 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 this week’s high of $42.09 and then at the November high of $43.06. Look for sell stops just below technical support at the overnight low of $41.08 and then at this week’s low of $40.15. Wyckoff’s Intra-Day Market Rating: 5.5

GRAINS

US grain futures are narrowly mixed in early U.S. pre-market trading. The grain market bulls have the solid overall near-term technical advantage amid price uptrends in place in all three markets. While there are no overwhelming technical clues that market tops are close at hand in the grains, there are a few technical signals that are suggesting market tops are probably close at hand. Watch for my bi-weekly newsletter that will be out later this week.

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, November 17–Jim Wyckoff’s Morning Markets Report

Global stock markets were mixed overnight, while U.S. stock indexes are pointed toward mixed to lower openings when the New York day session begins. The Dow and S&P 500 stock indexes had record-high closes Monday. However, more and more U.S. states are imposing restrictions on businesses and public gatherings, as Covid-19 rages and many hospital beds are full or close to it. This atmosphere in the U.S. and in Europe cannot help but dent trader and investor risk appetite heading into holidays that are likely to see families separated. Despite the very encouraging news on the vaccine front seen recently, there are dark days that lie ahead for the U.S., Europe and other countries hard hit by the pandemic.

It could also be that trader/investor sentiment has been somewhat dented by reports the Trump administration is planning to take a very hard line on China over the next two months, before Trump leaves office, including reportedly taking some steps that the incoming Biden administration would find hard to roll back. Just today, the U.S. Securities and Exchange Commission (SEC) came out with a plan to require Chinese companies traded on U.S. stock exchanges to have auditors overseen by the U.S. If the Chinese firms won’t comply they get shut out of U.S. stock exchanges.

It’s a big U.S. reports day, highlighted by retail sales for October that are forecast to be up 0.5% from September.

It’s worth mentioning that the “softs” futures markets (coffee, cocoa, sugar, orange juice and cotton) all had big upside days Monday, with most of those markets hitting multi-month highs. Part of those gains may be due to analysts at Citibank making a call that the U.S. dollar will decline by up to 20% in 2021. Most raw commodities for sale on the world market are priced in U.S. dollars. When the greenback declines, it makes those commodities cheaper to purchase in non-U.S. currency—possibly leading to more demand. Analysts at Citibank believe the Federal Reserve will maintain a very easy monetary policy even if inflation rises alongside the U.S. economy’s expected recovery, which in turn would prompt U.S. government bond and note yields to rise. Keep in mind these hotshot prognosticators like Citi and Goldman Sachs don’t have any better track records at calling major market moves than the other banks or brokers/analysts. The only difference may be that the big wheels front-loaded their trades and then made their calls public.

The U.S. dollar index is lower again early today. The other important outside market sees crude oil prices near steady and trading around $41.30 a barrel. The yield on the benchmark 10-year U.S. Treasury note futures is currently trading at 0.89%.

U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, retail sales, import and export prices, industrial production and capacity utilization, the NAHB housing index, manufacturing and trade inventories, and Treasury international capital data.

–Jim

U.S. STOCK INDEXES

December S&P 500 e-mini futures: Prices are weaker in early U.S. trading. Bulls have the solid overall near-term technical advantage and prices are not far below the recent spike high. The shorter-term moving averages (4-, 9- and 18-day) are bullish early today. The 4-day moving average is above the 9-day and 18-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 this week’s high of 3,637.00 and then at the November high of 3,668.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at this week’s low of 3,586.50 and then at 3,550.00. Wyckoff’s Intra-day Market Rating: 4.5

December Nasdaq index futures: Prices are firmer 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 neutral to bullish early today. Shorter-term technical resistance is seen at the overnight high of 12,096.25 and then at the October high of 12,249.00. On the downside, shorter-term support is seen at this week’s low of 11,851.75 and then at 11,775.00. Wyckoff’s Intra-Day Market Rating: 5.5.

U.S. TREASURY BONDS AND NOTES FUTURES

December U.S. T-Bonds: Prices are higher in early U.S. trading, on short covering. Bears still have the solid 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 bullish early today. Shorter-term technical resistance is seen at this week’s high of 172 22/32 and then at 173 even. Shorter-term support lies at this week’s low of 171 9/32 even and then at 171 even. Wyckoff’s Intra-Day Market Rating: 5.5

December U.S. T-Notes: Prices are a bit 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 even with 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 resistance lies at the this week’s high of 138.08.0 and then at 138.16.0. Shorter-term technical support lies at this week’s low of 137.27.0 and then at 137.20.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.5

EURO CURRENCY

The March Euro currency futures are higher in early U.S. trading. 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 1.1919 and then at the November high of 1.1954. Shorter-term support is seen at this week’s low of 1.1849 and then at 1.1800. Wyckoff’s Intra Day Market Rating: 6.0

NYMEX CRUDE OIL

December Nymex crude oil prices are near steady in early U.S. trading. Bulls have the near-term technical advantage. 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 this week’s high of $42.09 and then at the November high of $43.06. Look for sell stops just below technical support at $41.00 and then at this week’s low of $40.15. Wyckoff’s Intra-Day Market Rating: 5.0

GRAINS

US grain futures are mixed to firmer in early U.S. pre-market trading. Not much new. Corn and soybean futures last week hit contract highs amid continued strong export demand for U.S. grains. The grain market bulls have the solid overall near-term technical advantage amid price uptrends in place in all three markets. There are no strong, early technical clues that market tops are close at hand in the grains.

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, November 16–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly higher overnight, while U.S. stock indexes are pointed toward mixed to higher openings when the New York day session begins. The global markets are still pricing in the news of a Covid-19 vaccine that will likely come on line for the general public in the coming few months, and then followed by a likely very rapid increase in economic growth in major countries hit hard by the pandemic. News just out that Moderna saw very promising results in its third stage of a vaccine trial further boosted the stock markets. Moderna’s vaccine is deemed at 94% effective and it only requires refrigeration of the vaccine, and not the extreme cold needed to keep Pfizer’s vaccine. The U.S. presently has 11 million Covid cases and many hospitals are full or nearly full.

Gold prices sold off sharply on the Moderna news this morning, while U.S. Treasury yields rose.

U.S. markets were also assuaged by weekend reports the incoming Biden administration is not planning to impose a national lockdown on the U.S. economy.

Asian shares were boosted in part on a trade deal signed by China, Japan, South Korea and 12 other countries, who produce one-third of global GDP.

In other overnight news, China got some more upbeat economic data as its industrial output in October rose 6.9%, year-on-year. Fixed-asset investment rose 1.8% in the January-October period, and retail sales were up 4.3% in October. China’s unemployment rate in October came in at 5.3%. China’s authoritarian regime was able to lock down the entire population early this year, to tamp down Covid-19, and its economy is now reaping the benefits. That compares to the democracies in the U.S. and Europe that were not able to completely control their populations and whose economies continue to struggle as Covid infections are in a steep ascent.

The U.S. dollar index is a bit weaker early today. The other important outside market sees crude oil prices higher and trading around $41.40 a barrel. The yield on the benchmark 10-year U.S. Treasury note futures is currently trading at 0.88%.

U.S. economic data due for release Monday is light and includes the Empire State manufacturing survey.

–Jim

U.S. STOCK INDEXES

December S&P 500 e-mini futures: Prices are higher in early U.S. trading. Bulls have the solid overall near-term technical advantage and are creeping back toward last week’s spike high. The shorter-term moving averages (4-, 9- and 18-day) are bullish early today. The 4-day moving average is above the 9-day and 18-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 high of 3,617.75 and then at 3,650.00. Buy stops likely reside just above those levels. Downside support for active traders is seen at the overnight low of 3,586.50 and then at 3,550.00. Wyckoff’s Intra-day Market Rating: 6.5

December Nasdaq index futures: Prices are firmer in early U.S. trading. Bulls have the solid overall near-term technical advantage and have momentum. 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 overnight high of 12,065.00 and then at 12,119.50. On the downside, shorter-term support is seen at 11,900.00 and then at 11,775.00. Wyckoff’s Intra-Day Market Rating: 6.0.

U.S. TREASURY BONDS AND NOTES FUTURES

December 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. 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 22/32 and then at 173 even. Shorter-term support lies at the overnight low of 171 16/32 even and then at 171 even. Wyckoff’s Intra-Day Market Rating: 4.5

December U.S. T-Notes: Prices are down 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. 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 138.08.0 and then at 138.16.0. Shorter-term technical support lies at the overnight low of 137.29.0 and then at 137.24.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0

EURO CURRENCY

The December Euro currency futures are near steady in early U.S. trading. The shorter-term moving averages for the Euro are neutral early today, as the 4-day is even with the 9-day. The 9-day is below the 18-day moving average. Short-term oscillators for the Euro are neutral to bullish early today. The Euro currency finds shorter-term technical resistance at the overnight high of 1.1877 and then at 1.1894. Shorter-term support is seen at 1.1800 and then at last week’s low of 1.1753. Wyckoff’s Intra Day Market Rating: 5.0

NYMEX CRUDE OIL

December Nymex crude oil prices are higher in early U.S. trading. Bulls have the near-term technical advantage. 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 $42.00 and then at last week’s high of $43.06. Look for sell stops just below technical support at $41.00 and then at the overnight low of $40.15. Wyckoff’s Intra-Day Market Rating: 6.5

GRAINS

US grain futures are mixed to firmer in early U.S. pre-market trading. Corn and soybean futures last week hit contract highs amid continued strong export demand for U.S. grains. The grain market bulls have the solid overall near-term technical advantage amid price uptrends in place in all three markets. Traders will closely examine this morning’s 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