Daily Morning Report

Monday, September 28–Jim Wyckoff’s Morning Markets Report

Global stock markets were mixed to mostly weaker overnight. U.S. stock indexes are set to open the New York day session lower and also set to score a fourth week in a row of declines. Risk aversion remains keener to end the trading week. “As we go into the fourth quarter, risks are starting to pile up,” said one analyst. Covid-19 cases are on the rise in many major industrialized countries, with no proven vaccine on the horizon. Questions about the U.S. presidential election and the smooth transfer of power if President Trump loses the electoral college vote count also are unsettling to traders and investors. Heightened trade and political tensions between the world’s two largest economies—the U.S. and China—are also dampening marketplace attitudes.

U.S. House of Representative Democrats are pushing a revised and smaller stimulus package for Americans and U.S. businesses, but Republicans say they doubt any deal before election day will occur.

Gold and silver bulls have been perplexed this week by their metals’ prices plunging despite the keener trader and investor anxiety that history suggests should support the precious metals markets. One FXTM analyst in this morning’s email dispatch laid out this bullish scenario: “Gold prices (are) likely to rise again as debt markets struggle with new issuance. Demand for debt in Southeast Asian markets falls (Bloomberg). If corporates and governments are not able to borrow then new equity will need to be raised. If governments are not able to issue more debt, then more cash may be printed or interest rates raised. Raising interest rates is not good for economic development and printing cash is normally viewed as inflationary. Either way gold prices look likely to rise.” Many market watchers would argue this thesis is an outlier.

The important outside markets early today see the U.S. dollar index up and near this week’s two-month high. Nymex crude oil prices are near steady and trading around $40.30. Meantime, the yield on the U.S. Treasury 10-year note is trading around 0.66% today.

U.S. economic data due for release Friday is light and includes durable goods orders.

–Jim

U.S. STOCK INDEXES

December S&P 500 e-mini futures: Prices are higher in early U.S. trading. Prices are still trending lower on the daily chart. The shorter-term moving averages (4-, 9- and 18-day) are still bearish early today. The 4-day moving average is below the 9-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 the overnight high of 3,350.00 and then at 3,375.00. Buy stops likely reside just above those levels. Downside support for active traders today is seen at the overnight low of 3,287.50 and then at 3,250.00. Wyckoff’s Intra-day Market Rating: 6.0

December Nasdaq index futures: Prices are solidly higher in early U.S. trading. Shorter-term moving averages (4- 9-and 18-day) are still bearish early today. The 4-day moving average is below the 9-day. The 9-day average is below the 18-day. Short-term oscillators (RSI, slow stochastics) are bullish early today. Shorter-term technical resistance is seen at 11,400.00 and then at 11,500.00. On the downside, shorter-term support is seen at 11,250.00 and then at the overnight low of 10,140.25. Wyckoff’s Intra-Day Market Rating: 6.5.

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 neutral early today. The 4-day moving average is above the 9-day. The 9-day is even with the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral to bearish 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 176 16/32 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 neutral to bearish 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 last week’s low of 139.12.0 and then at 139.05.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.5

EURO CURRENCY

The December Euro currency futures are higher in early U.S. trading, on short covering. Bulls are fading as prices are trending lower. 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 1.1700 and then at 1.1739. Shorter-term support is seen at last week’s low of 1.1630 and then at 1.1600. Wyckoff’s Intra Day Market Rating: 6.0

NYMEX CRUDE OIL

November Nymex crude oil prices are firmer 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 neutral to bullish early today. Look for buy stops to reside just above technical resistance at $41.00 and then at $41.72. Look for sell stops just below technical support at the overnight low of $39.78 and then at $39.00. Wyckoff’s Intra-Day Market Rating: 5.5

GRAINS

US grain futures are mixed to 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. A strong U.S. dollar has weighed on the grains. 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. Traders will closely examine today’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

Friday, September 25–Jim Wyckoff’s Morning Markets Report

Global stock markets were mixed to mostly weaker overnight. U.S. stock indexes are set to open the New York day session lower and also set to score a fourth week in a row of declines. Risk aversion remains keener to end the trading week. “As we go into the fourth quarter, risks are starting to pile up,” said one analyst. Covid-19 cases are on the rise in many major industrialized countries, with no proven vaccine on the horizon. Questions about the U.S. presidential election and the smooth transfer of power if President Trump loses the electoral college vote count also are unsettling to traders and investors. Heightened trade and political tensions between the world’s two largest economies—the U.S. and China—are also dampening marketplace attitudes.

U.S. House of Representative Democrats are pushing a revised and smaller stimulus package for Americans and U.S. businesses, but Republicans say they doubt any deal before election day will occur.

Gold and silver bulls have been perplexed this week by their metals’ prices plunging despite the keener trader and investor anxiety that history suggests should support the precious metals markets. One FXTM analyst in this morning’s email dispatch laid out this bullish scenario: “Gold prices (are) likely to rise again as debt markets struggle with new issuance. Demand for debt in Southeast Asian markets falls (Bloomberg). If corporates and governments are not able to borrow then new equity will need to be raised. If governments are not able to issue more debt, then more cash may be printed or interest rates raised. Raising interest rates is not good for economic development and printing cash is normally viewed as inflationary. Either way gold prices look likely to rise.” Many market watchers would argue this thesis is an outlier.

The important outside markets early today see the U.S. dollar index up and near this week’s two-month high. Nymex crude oil prices are near steady and trading around $40.30. Meantime, the yield on the U.S. Treasury 10-year note is trading around 0.66% today.

U.S. economic data due for release Friday is light and includes durable goods orders.

–Jim

U.S. STOCK INDEXES

December S&P 500 e-mini futures: Prices are lower in early U.S. trading and set to close at a technically bearish weekly low close and at a seven-week low close. Prices are trending lower on the daily chart. The shorter-term moving averages (4-, 9- and 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. Short-term oscillators (RSI, slow stochastics) are bearish early today. Today, shorter-term technical resistance comes in at the overnight high of 3,258.75 and then at 3,300.00. Buy stops likely reside just above those levels. Downside support for active traders today is seen at this week’s low of 3,198.00 and then at 3,175.00. Wyckoff’s Intra-day Market Rating: 4.0

December Nasdaq index futures: Prices are lower in early U.S. trading. Prices are trending down on the daily chart. Shorter-term moving averages (4- 9-and 18-day) are bearish early today. The 4-day moving average is below the 9-day. The 9-day average is below the 18-day. Short-term oscillators (RSI, slow stochastics) are neutral to bearish early today. Shorter-term technical resistance is seen at the overnight high of 10,976.50 and then at 11,100.00. On the downside, shorter-term support is seen at this week’s low of 10,660.25 and then at 10,500.00. Wyckoff’s Intra-Day Market Rating: 4.0.

U.S. TREASURY BONDS AND NOTES FUTURES

December U.S. T-Bonds: Prices are modestly firmer in early U.S. trading but poised for a technically bullish weekly high close. Bulls were working on a near-term price uptrend. 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 even with the 18-day moving average. Oscillators (RSI, slow stochastics) are bullish early today. Shorter-term technical resistance is seen at 177 14/32 and then at 178 even. Shorter-term support lies at the overnight low of 176 20/32 and then at 176 even. Wyckoff’s Intra-Day Market Rating: 6.0

December U.S. T-Notes: Prices are firmer in early U.S. trading and poised for a bullish weekly high close. 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 last week’s high of 139.24.0 and then at the September high of 139.29.0. Shorter-term technical support lies at last week’s low of 139.10.5 and then at 139.05.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 6.0

EURO CURRENCY

The December Euro currency futures are lower in early U.S. trading, near this week’s two-month low and poised for a technically bearish weekly low close today. Bulls are fading fast as prices are trending lower. 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 bearish early today. The Euro currency finds shorter-term technical resistance the overnight high of 1.1650 and then at 1.1706. Shorter-term support is seen at this week’s low of 1.1645 and then at 1.1600. Wyckoff’s Intra Day Market Rating: 4.0

NYMEX CRUDE OIL

November Nymex crude oil prices are lower 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 neutral to bearish early today. Look for buy stops to reside just above technical resistance at the overnight high of $40.64 and then at $41.00. Look for sell stops just below technical support at this week’s low of $38.87 and then at $38.00. Wyckoff’s Intra-Day Market Rating: 4.5

GRAINS

US grain futures are mixed to lower in early U.S. pre-market trading. Bulls have faded a bit this week but still have the overall near-term technical advantage in all three markets. A strong U.S. dollar and wilting raw commodity sector, overall, are weighing on the grains. Focus remains on U.S. harvest results, which are coming in better than expected, and export demand, as many wonder how long China will continue its buying binge, as seen in the daily USDA export sales announcements. There were none on Thursday—the first no-show by China in over two weeks.   

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, September 24–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 mixed. Stock markets have turned more wobbly this week. Said one analyst in a morning email dispatch: “If the latest sell-off is just about the removal of froth and a healthy correction, it may indicate we are near a bottom and it’s time to reaccumulate stocks. This approach would be based on the notion that the U.S. and the global economy will continue heading in the right direction towards a full recovery. And with central banks across the globe remaining extremely generous with their policies, we should not worry about some bumps along the road. However, the risks of a stalling recovery are growing as spikes in Covid-19 cases surge across Europe and expectations are for similar trends in the U.S. if no action is taken. The virus continues to be winning at this stage and there are no clear answers as to when a vaccine will be delivered.”

Not quite half-way through the “rough waters” period (September and October) for the stock market, it seems odds do not favor a strong recovery to new record highs in the U.S. stock indexes. It’s also a period when North Americans and Europeans will be staying inside more as colder weather approaches, with the potential for new Covid restrictions on businesses crimping their revenues. And there is no new financial stimulus package for Americans in sight. Throw in the element of the high potential for a disputed and even protracted U.S. presidential election result (President Trump said Wednesday the presidential election in November will likely be decided by the Supreme Court), and all of the above should favor trader/investor demand safe-haven assets like gold, the U.S. dollar and U.S. Treasuries. Yet, many longtime market watchers are presently scratching their heads that only the greenback is benefiting at present, while gold and silver are tanking and U.S. Treasuries languish.

The important outside markets today see the U.S. dollar index slightly up and hitting another two-month high overnight. Nymex crude oil prices are near steady and trading around $40.00. Meantime, the yield on the U.S. Treasury 10-year note is trading around 0.67% today.

U.S. economic data due for release Thursday includes the weekly jobless claims report, new residential sales and the Kansas City Fed manufacturing survey. Once again, several Federal Reserve officials speak today, including Fed Chairman Powell speaking to a Senate panel.

–Jim

U.S. STOCK INDEXES

December S&P 500 e-mini futures: Prices are slightly firmer in early U.S. trading after hitting a seven-week low overnight. Prices are trending lower on the daily chart. The shorter-term moving averages (4-, 9- and 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. Short-term oscillators (RSI, slow stochastics) are bullish early today. Today, shorter-term technical resistance comes in at this week’s high of 3,326.25 and then at 3,350.00. Buy stops likely reside just above those levels. Downside support for active traders today is seen at the overnight low of 3,210.00 and then at 3,200.00. Wyckoff’s Intra-day Market Rating: 5.5

December Nasdaq index futures: Prices are weaker in early U.S. trading. Prices are trending down on the daily chart. Shorter-term moving averages (4- 9-and 18-day) are bearish early today. The 4-day moving average is below the 9-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 10,900.00 and then at 11,000.00. On the downside, shorter-term support is seen at this week’s low of 11,656.50 and then at 10,500.00. Wyckoff’s Intra-Day Market Rating: 4.5.

U.S. TREASURY BONDS AND NOTES FUTURES

December U.S. T-Bonds: Prices are slightly firmer in early U.S. trading. Bulls were working on a near-term price uptrend but it has stalled out. 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 176 31/32 and then at last week’s high of 177 14/32. Shorter-term support lies at last week’s low of 175 28/32 and then at 175 16/32. Wyckoff’s Intra-Day Market Rating: 5.5

December U.S. T-Notes: Prices are slightly up 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 neutral early today. Shorter-term resistance lies at last week’s high of 139.24.0 and then at the September high of 139.29.0. Shorter-term technical support lies at last week’s low of 139.10.5 and then at 139.05.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.5

EURO CURRENCY

The December Euro currency futures are weaker in early U.S. trading and hit a two-month low overnight. Bulls still have the overall near-term technical advantage but are fading fast as prices are now trending lower. 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 bearish early today. The Euro currency finds shorter-term technical resistance 1.1739 and then at 1.1793. Shorter-term support is seen at the overnight low of 1.1652 and then at 1.1600. Wyckoff’s Intra Day Market Rating: 4.0

NYMEX CRUDE OIL

November Nymex crude oil prices are near steady in early U.S. trading. The shorter-term moving averages are neutral early today as the 4-day is even with the 18-day. The 9-day is below 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 $40.75 and then at $41.00. Look for sell stops just below technical support at this week’s low of $38.87 and then at $38.00. Wyckoff’s Intra-Day Market Rating: 5.0

GRAINS

US grain futures are lower in early U.S. pre-market trading. Bulls are fading a bit but still have the near-term technical advantage in all three markets. A strong U.S. dollar and wilting raw commodity sector, overall, are weighing on the grains. Traders will closely examine this morning’s weekly USDA export sales report. Focus is on U.S. harvest and export demand, as China continues its buying binge, as seen in the daily USDA export sales announcements.   

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 23–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly firmer overnight. U.S. stock indexes are set to open the New York day session higher. At mid-week there is less risk aversion in the global marketplace compared to Monday. The U.S. House of Representatives late Tuesday passed a short-term funding bill that will keep the federal government running until early December. However, it’s still unlikely the Congress and President Trump will get a new, second financial stimulus package for Americans out the door before the November elections. 

Reports overnight said a U.K. scientist has warned a full second lockdown is coming, as Prime Minister Boris Johnson considers banning household visits and other restrictions. Johnson warned the U.K. faces a long, hard winter of lockdowns.

Meantime, the Euro zone composite purchasing managers index (PMI) for September came in at 50.1 vs 51.9 in August. Better growth in manufacturing led by Germany was offset by a renewed downturn in the service sector as a result of Covid-19 restrictions.

The important outside markets today see the U.S. dollar index near steady following solid gains this week that have pushed the USDX to a six-week high. Nymex crude oil prices are slightly firmer and trading around $40.00. Meantime, the yield on the U.S. Treasury 10-year note is trading around 0.66% today.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the monthly house price index, the U.S. flash and services PMI’s, and the weekly DOE liquid energy stocks report. Several Federal Reserve officials are slated to give speeches today, including Fed Chairman Powell to a House committee.

–Jim

U.S. STOCK INDEXES

December S&P 500 e-mini futures: Prices are firmer in early U.S. trading. Prices are still trending lower on the daily chart. The shorter-term moving averages (4-, 9- and 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. Short-term oscillators (RSI, slow stochastics) are bullish early today. Today, shorter-term technical resistance comes in at this week’s high of 3,326.25 and then at 3,350.00. Buy stops likely reside just above those levels. Downside support for active traders today is seen at Tuesday’s low of 3,256.50 and then at this week’s low of 3,217.75. Wyckoff’s Intra-day Market Rating: 6.0

December Nasdaq index futures: Prices are firmer in early U.S. trading. Prices are still trending down on the daily chart. Shorter-term moving averages (4- 9-and 18-day) are bearish early today. The 4-day moving average is below the 9-day. The 9-day average is below the 18-day. Short-term oscillators (RSI, slow stochastics) are bullish early today. Shorter-term technical resistance is seen at the overnight high of 11,222.00 and then at 11,300.00. On the downside, shorter-term support is seen at the overnight low of 11,076.00 and then at 11,000.00. Wyckoff’s Intra-Day Market Rating: 5.5.

U.S. TREASURY BONDS AND NOTES FUTURES

December U.S. T-Bonds: Prices are weaker in early U.S. trading. Bulls are working on a near-term price uptrend but need to show more power soon to keep it going. 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 neutral early today. Shorter-term technical resistance is seen at the overnight high of 176 31/32 and then at last week’s high of 177 14/32. Shorter-term support lies at last week’s low of 175 28/32 and then at 175 16/32. Wyckoff’s Intra-Day Market Rating: 4.5

December U.S. T-Notes: Prices are weaker 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 neutral to bearish early today. Shorter-term resistance lies at last week’s high of 139.24.0 and then at the September high of 139.29.0. Shorter-term technical support lies at last week’s low of 139.10.5 and then at 139.05.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.5

EURO CURRENCY

The December Euro currency futures are slightly up in early U.S. trading after hitting another seven-week low overnight. Bulls still have the overall near-term technical advantage but are fading as trading has turned sideways-to-lower at higher levels and the uptrend has ended. 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 bearish early today. The Euro currency finds shorter-term technical resistance 1.1793 and then at 1.1850. Shorter-term support is seen at the overnight low of 1.1691 and then at 1.1650. Wyckoff’s Intra Day Market Rating: 5.0

NYMEX CRUDE OIL

November Nymex crude oil prices are slightly higher in early U.S. trading. The shorter-term moving averages are neutral early today as the 4-day is even with the 18-day. The 9-day is below the 18-day moving average. Short-term oscillators (RSI and slow stochastics) are bullish early today. Look for buy stops to reside just above technical resistance at $40.27 and then at $41.00. Look for sell stops just below technical support at this week’s low of $38.87 and then at $38.00. Wyckoff’s Intra-Day Market Rating: 5.5

GRAINS

US grain futures are steady to weaker in early U.S. pre-market trading. Bulls still have the near-term technical advantage in all three markets and appear to have stabilized prices following Monday’s sharp sell off. Focus is on U.S. harvest and export demand, as China continues its buying binge, as seen in the daily USDA export sales announcements.   

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