Daily Morning Report

Friday, October 2–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly weaker overnight. Some Asian markets were closed for a holiday. U.S. stock indexes are set to open the New York day session solidly lower. News that President Trump and his wife have tested positive for Covid-19 has rattled the marketplace. Trump’s re-election campaign has been thrown into turmoil when he was already well behind in the polls. The bottom line on this matter: even more marketplace uncertainty in an already very uncertain U.S. presidential election atmosphere. Trump’s positive Covid test puts the spotlight back on a resurgence of infections in many major countries that could turn into a “second wave” that again damages economies that have just begun to recover from the first lockdown.

Traders and investors are also awaiting the U.S. economic data point of the week, which is Friday morning’s monthly jobless report for September from the Labor Department. The key non-farm payrolls number is forecast at up 875,000 and the unemployment rate is forecast at 8.2%. Trump’s Covid-19 news will likely overshadow the impact of the jobs report—unless it is a major miss from forecasts.

In other overnight news, the Euro zone September CPI came in at -0.3% versus -0.2% in August. Year-on-year, the Euro zone CPI was up 0.2% in September. Once again, the data coming from most major world economies is not pointing to a resurgence of inflation anytime soon.

The important outside markets early today see the U.S. dollar index slightly up. Nymex crude oil prices are solidly lower, hit a three-week low and are trading around $37.00 a barrel. Meantime, the yield on the U.S. Treasury 10-year note is trading around 0.66% today.

Other U.S. economic data due for release Friday includes the ISN New York report on business, manufacturers’ shipments and inventories, and the University of Michigan consumer sentiment survey.

–Jim

U.S. STOCK INDEXES

December S&P 500 e-mini futures: Prices are lower in early U.S. trading. Bulls have the firm 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 above the 9-day and 18-day. The 9-day is below 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 3,388.00 and then at 3,420.00. Buy stops likely reside just above those levels. Downside support for active traders today is seen at this week’s low of 3,287.50 and then at 3,250.00. Wyckoff’s Intra-day Market Rating: 4.0

December Nasdaq index futures: Prices are lower in early U.S. trading. 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 average is above the 18-day. Short-term oscillators (RSI, slow stochastics) are neutral early today. Shorter-term technical resistance is seen at 11,500.00 and then at the overnight high of 11,604.75. On the downside, shorter-term support is seen at the overnight low of 11,290.50 and then at this week’s low of 11,140.25. Wyckoff’s Intra-Day Market Rating: 4.0.

U.S. TREASURY BONDS AND NOTES FUTURES

December U.S. T-Bonds: Prices are higher in early U.S. trading. Bulls have faded this week. Shorter-term moving averages (4- 9- 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. Oscillators (RSI, slow stochastics) are neutral to bullish early today. Shorter-term technical resistance is seen at the overnight high of 177 even and then at this week’s high of 177 12/32. Shorter-term support lies at the overnight low of 176 6/32 and then at 175 28/32. Wyckoff’s Intra-Day Market Rating: 6.0

December U.S. T-Notes: Prices are higher in early U.S. trading. Bulls still have the overall near-term technical advantage. 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 bullish early today. Shorter-term resistance lies at the overnight high of 139.24.0 and then at 139.29.0. Shorter-term technical support lies at the overnight low of 139.16.0 and then at 139.10.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 6.0

EURO CURRENCY

The December Euro currency futures are weaker in early U.S. trading. Prices are still trending lower on the daily chart. The shorter-term moving averages for the Euro are neutral early today, as the 4-day is above the 9-day. The 9-day is below 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 1.1765 and then at 1.1800. Shorter-term support is seen at 1.1700 and then at 1.1650. Wyckoff’s Intra Day Market Rating: 4.0

NYMEX CRUDE OIL

November Nymex crude oil prices are solidly lower and hit a three-week low in early U.S. trading. The shorter-term moving averages are neutral early today as the 4-day is below the 9-day and 18-day. The 9-day is above the 18-day moving average. Short-term oscillators (RSI and slow stochastics) are bearish early today. Look for buy stops to reside just above technical resistance at $38.00 and then at $39.00. Look for sell stops just below technical support at the September low of $36.58 and then at $36.00. Wyckoff’s Intra-Day Market Rating: 3.5

GRAINS

US grain futures are lower in early U.S. pre-market trading, on risk aversion after Trump tested positive for Covid-19. Also, markets are due for a correction and consolidation following this week’s solid gains. Focus is on U.S. harvest results, which are coming in better than expected so far.    

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, October 1–Jim Wyckoff’s Morning Markets Report

Global stock markets were mixed overnight. U.S. stock indexes are set to open the New York day session higher. Many Asian stock markets were closed for a holiday, while the Tokyo Stock Exchange had to halt stock trading due to technical problems. The stock and financial markets are half-way through what can be turbulent months of September and October. A glance across the markets spectrum shows no serious shocks or major volatility during September, although some markets did experience moderate rises in volatility—but also which can be considered not unusual. The U.S. stock indexes did get a bit wobbly during September but prices now appear to have stabilized.

Slight hopes for a new U.S. financial stimulus package for American citizens and businesses faded Wednesday after the Democrats and Republicans had a flurry of discussions earlier this week. Many doubt any plan will be agreed upon before the U.S. elections in early November.

In overnight news, the Euro zone September manufacturing purchasing managers index (PMI) was reported at 53.7 versus the August reading of 51.7. The September PMI was right in line with market expectations. A reading above 50.0 suggests growth in the sector.

Traders and investors are awaiting the U.S. economic data point of the week, which is Friday morning’s monthly jobless report for September from the Labor Department. The key non-farm payrolls number is forecast at up 875,000 and the unemployment rate is forecast at 8.2%.

The important outside markets early today see the U.S. dollar index weaker. Nymex crude oil prices are weaker and trading around $40.00 a barrel. Meantime, the yield on the U.S. Treasury 10-year note is trading around 0.68% today.

U.S. economic data due for release Thursday includes the weekly jobless claims report, the Challenger job-cuts report, personal income and outlays, the ISM report on business manufacturing, the U.S. manufacturing PMI, the global manufacturing PMI, construction spending, and domestic auto industry sales.

–Jim

U.S. STOCK INDEXES

December S&P 500 e-mini futures: Prices are higher and hit a two-week high in early U.S. trading. Bulls have the firm 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 above the 9-day and 18-day. The 9-day is below the 18-day moving average. Short-term oscillators (RSI, slow stochastics) are bullish early today. Today, shorter-term technical resistance comes in at 3,400.00 and then at 3,420.00. Buy stops likely reside just above those levels. Downside support for active traders today is seen at the overnight low of 3,343.25 and then at this week’s low of 3,287.50. Wyckoff’s Intra-day Market Rating: 6.0

December Nasdaq index futures: Prices are higher and hit a three-week high in early U.S. trading. Shorter-term moving averages (4- 9-and 18-day) are neutral early today. The 4-day moving average is above the 9-day and 18-day. The 9-day average is even with the 18-day. Short-term oscillators (RSI, slow stochastics) are bullish early today. Shorter-term technical resistance is seen at 11,600.00 and then at 11,700.00. On the downside, shorter-term support is seen at the overnight low of 11,375.00 and then at this week’s low of 11,140.25. 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. Bulls are fading late this week. Shorter-term moving averages (4- 9- 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. Oscillators (RSI, slow stochastics) are bearish early today. Shorter-term technical resistance is seen at the overnight high of 176 8/32 and then at 177 even. Shorter-term support lies at this week’s low of 175 14/32 and then at 175 even. Wyckoff’s Intra-Day Market Rating: 4.0

December U.S. T-Notes: Prices are lower in early U.S. trading. Bulls still have the overall 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 above the 18-day moving average. Oscillators (RSI, slow stochastics) are bearish early today. Shorter-term resistance lies at the overnight high of 139.17.0 and then at this week’s high of 139.26.0. Shorter-term technical support lies at this week’s low of 139.11.0 and then at 139.05.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0

EURO CURRENCY

The December Euro currency futures are firmer in early U.S. trading. Prices are still trending lower on the daily chart. The shorter-term moving averages for the Euro are neutral early today, as the 4-day is above 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 1.1776 and then at 1.1800. Shorter-term support is seen at 1.1700 and then at 1.1650. Wyckoff’s Intra Day Market Rating: 6.0

NYMEX CRUDE OIL

November Nymex crude oil prices are weaker in early U.S. trading. The shorter-term moving averages are neutral 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 (RSI and slow stochastics) are bearish early today. Look for buy stops to reside just above technical resistance at the overnight high of $40.47 and then at this week’s high of $40.80. Look for sell stops just below technical support at $39.00 and then at this week’s low of $38.41. Wyckoff’s Intra-Day Market Rating: 4.5

GRAINS

US grain futures are mostly up in early U.S. pre-market trading, on follow-through buying from Wednesday’s surprising and strong gains following a bullish USDA quarterly stocks report that shocked many long-time market watchers. Corn, soybean meal and wheat futures pushed to multi-month highs and closed out the month with technically bullish monthly and quarterly high closes. On tap today is the weekly USDA export sales report. Focus now returns to U.S. harvest results, which are coming in better than expected so far.    

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, September 30–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly weaker overnight. U.S. stock indexes are set to open the New York day session lower. The first U.S. presidential debate between President Donald Trump and Joe Biden that took place in Cleveland, Ohio Tuesday night produced unprecedented acrimony but probably did not move the needle much regarding changing voters’ minds. Still, the rancor from both sides that included President Trump saying he did not trust the mail-in voting process and not committing to urge his supporters to remain calm if he lost the election served to inject more uncertainty into an already unsettled marketplace.

Rising Covid-19 infections in major countries heading into colder weather and more inside activities in the Northern Hemisphere have raised more concerns about a second wave of the virus again shutting down businesses and damaging economies.

The U.S. government slapped a $920 million fine on investment bank JP Morgan Tuesday, as the firm admitted to manipulating precious metals and Treasury markets. That’s the largest fine ever levied by the U.S. for the manipulation, called “spoofing,” in which big trading orders are entered but then quickly cancelled. This news can be seen as at least a partial redemption for a vocal group of metals market watchers who have claimed for many years that JP Morgan has had a heavy hand in manipulating the gold market.

The important outside markets early today see the U.S. dollar index firmer after being under pressure Monday and Tuesday. Nymex crude oil prices are weaker and trading around $38.85 a barrel, as the oil market bulls are fading this week. Meantime, the yield on the U.S. Treasury 10-year note is trading around 0.65% today.

The U.S. economic data point highlight of the week will be Friday morning’s monthly jobless report for September from the Labor Department. The key non-farm payrolls number is forecast at up 875,000 and the unemployment rate is forecast at 8.2%. Traders will closely examine today’s monthly ADP national employment report.

Today is the last trading day of the month and of the quarter, making it a more important day from a technical chart perspective.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the ADP national employment report, revised corporate profits and the third estimate of second-quarter GDP. Also on tap is the ISM Chicago business survey, pending home sales and the weekly DOE liquid energy stocks report.

–Jim

U.S. STOCK INDEXES

December S&P 500 e-mini futures: Prices are weaker in early U.S. trading. Bulls have stabilized prices at mid-week. The shorter-term moving averages (4-, 9- and 18-day) are neutral early today. The 4-day moving average is above the 9-day. The 9-day is even with 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 3,363.00 and then at 3,385.00. Buy stops likely reside just above those levels. Downside support for active traders today is seen at this week’s low of 3,287.50 and then at 3,250.00. Wyckoff’s Intra-day Market Rating: 4.0

December Nasdaq index futures: Prices are lower in early U.S. trading. Shorter-term moving averages (4- 9-and 18-day) are neutral early today. The 4-day moving average is above the 9-day and 18-day. The 9-day average is below 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 11,448.75 and then at 11,500.00. On the downside, shorter-term support is seen at this week’s low of 11,140.25 and then at 11,000.00. Wyckoff’s Intra-Day Market Rating: 4.0.

U.S. TREASURY BONDS AND NOTES FUTURES

December U.S. T-Bonds: Prices are weaker in early U.S. trading. Bulls were working on a near-term price uptrend. 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 early today. Shorter-term technical resistance is seen at this week’s high of 177 12/32 and then at 178 even. Shorter-term support lies at this week’s low of 176 19/32 and then at 176 even. Wyckoff’s Intra-Day Market Rating: 4.5

December U.S. T-Notes: Prices are weaker in early U.S. trading. Bulls have the overall near-term technical advantage. 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 bullish early today. Shorter-term resistance lies at this week’s high of 139.26.0 and then at the September high of 139.29.0. Shorter-term technical support lies at the overnight low of 139.20.5 and then at this week’s low of 139.16.5. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.5

EURO CURRENCY

The December Euro currency futures are weaker in early U.S. trading. Prices are trending lower on the daily chart. The shorter-term moving averages for the Euro are bearish early today, as the 4-day is below the 9-day. The 9-day is below 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 overnight high of 1.1773 and then at 1.1800. Shorter-term support is seen at last 1.1680 and then at week’s low of 1.1630. Wyckoff’s Intra Day Market Rating: 4.0

NYMEX CRUDE OIL

November Nymex crude oil prices are down in early U.S. trading. The shorter-term moving averages are neutral early today as the 4-day is below the 9-day. The 9-day is above the 18-day moving average. Short-term oscillators (RSI and slow stochastics) are bearish early today. Look for buy stops to reside just above technical resistance at the overnight high of $39.25 and then at $40.00. Look for sell stops just below technical support at this week’s low of $38.41 and then at $38.00. Wyckoff’s Intra-Day Market Rating: 4.5

GRAINS

US grain futures are mixed in early U.S. pre-market trading. On tap today is the USDA quarterly grain stocks report, which is not expected to be bullish, but will not likely be a bit markets mover. Grain market bulls have faded a bit recently but still have the overall near-term technical advantage in all three markets. Focus remains on U.S. harvest results, which are coming in better than expected so far. Grain traders, keep a close eye on the crude oil market, because if that market falters then such would be a bearish omen for 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

Tuesday, September 29–Jim Wyckoff’s Morning Markets Report

Global stock markets were mixed overnight. U.S. stock indexes are set to open the New York day session slightly lower. Risk appetite is a bit more upbeat early this week. The first U.S. presidential debate between Donald Trump and Joe Biden takes place in Cleveland, Ohio Tuesday night. Most agree the debates will change very few voters’ minds. Still, the marketplace remains a bit skittish ahead of the debate, which is likely to produce some fireworks.

The important outside markets early today see the U.S. dollar index down again on a corrective pullback after hitting a two-month high late last week. Nymex crude oil prices are weaker and trading around $40.40. Meantime, the yield on the U.S. Treasury 10-year note is trading around 0.65% today.

The U.S. economic data point highlight of the week will be Friday morning’s monthly jobless report for September from the Labor Department. The key non-farm payrolls number is forecast at up 875,000 and the unemployment rate is forecast at 8.2%.

U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook reports, the weekly chain store sales index, the S&P-Core Logic home indexes, and the consumer confidence index. Several Federal Reserve officials also speak today.

–Jim

U.S. STOCK INDEXES

December S&P 500 e-mini futures: Prices are near steady in early U.S. trading. Bulls have stabilized prices early this week. The shorter-term moving averages (4-, 9- and 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. Short-term oscillators (RSI, slow stochastics) are neutral to bullish early today. Today, shorter-term technical resistance comes in at the overnight high of 3,363.00 and then at 3,385.00. Buy stops likely reside just above those levels. Downside support for active traders today is seen at 3,325.00 and then at 3,300.00. Wyckoff’s Intra-day Market Rating: 5.0

December Nasdaq index futures: Prices are slightly lower in early U.S. trading. Shorter-term moving averages (4- 9-and 18-day) are neutral early today. The 4-day moving average is above the 9-day. The 9-day average is below the 18-day. Short-term oscillators (RSI, slow stochastics) are neutral to bullish early today. Shorter-term technical resistance is seen at 11,500.00 and then at 11,600.00. On the downside, shorter-term support is seen at 11,300.00 and then at 11,200.00. Wyckoff’s Intra-Day Market Rating: 4.5.

U.S. TREASURY BONDS AND NOTES FUTURES

December U.S. T-Bonds: Prices are firmer in early U.S. trading. Bulls were working on a near-term price uptrend. 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 technical resistance is seen at last week’s high of 177 9/32 and then at 177 14/32. Shorter-term support lies at Monday’s low of 176 19/32 and then at 176 even. Wyckoff’s Intra-Day Market Rating: 5.5

December U.S. T-Notes: Prices are firmer in early U.S. trading. Bulls have the overall near-term technical advantage. 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 139.23.5 and then at the September high of 139.29.0. Shorter-term technical support lies at Monday’s low of 139.16.5 and then at last week’s low of 139.12.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.5

EURO CURRENCY

The December Euro currency futures are a bit higher in early U.S. trading, on more short covering. Prices are trending lower on the daily chart. The shorter-term moving averages for the Euro are bearish early today, as the 4-day is below 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 1.1716 and then at 1.1750. Shorter-term support is seen at last week’s low of 1.1630 and then at 1.1600. Wyckoff’s Intra Day Market Rating: 5.5

NYMEX CRUDE OIL

November Nymex crude oil prices are slightly down in early U.S. trading. The shorter-term moving averages are neutral 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 (RSI and slow stochastics) are neutral to bearish early today. Look for buy stops to reside just above technical resistance at Monday’s high of $40.80 and then at $41.72. Look for sell stops just below technical support at Monday’s low of $39.78 and then at $39.00. Wyckoff’s Intra-Day Market Rating: 4.5

GRAINS

US grain futures are weaker in early U.S. pre-market trading. Bulls have faded a bit recently but still have the overall near-term technical advantage in all three markets. Focus is on U.S. harvest results, which are coming in better than expected so far, and export demand, as many wonder how long China will continue its buying binge, as seen in the daily USDA export sales announcements. New speculators coming into the long side of the grain futures markets are helping to keep price uptrends alive in all three 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