Daily Morning Report

Friday, July 31–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly higher in overnight trading. The U.S. stock indexes are pointed toward modestly higher openings when the New York day session begins. Traders are weighing better-than-expected corporate earnings reports, especially from the big high tech companies, against a stunning drop in U.S. GDP in the second quarter and rising Covid-19 infections in the U.S. Also, Fed Chairman Powell said this week that recent U.S. economic data points to a slowing pace of the recovery. Don’t be surprised on this last trading day of the week and of the month if the latter few of the just-mentioned elements come more into play and the U.S. stock indexes come under selling pressure as the U.S. trading session progresses.

Gold prices surged to another record high overnight, at $1,981.80, basis August Comex futures. Gold and silver traders are apparently more concerned about the state of the world economies and geopolitics than are stock market traders. And there’s an old markets adage that the smartest traders are bond traders. U.S. Treasury bond yields this week have moved to near record lows, on safe-haven demand and a flight to quality. The yield on the benchmark U.S. Treasury 10-year note is currently trading around the 0.53% level.

In overnight news, China released more upbeat economic data from its purchasing managers. China’s economy is posting a solid recovery from the Pandemic lockdowns, if one is to fully accept the accuracy of China’s data.

The important outside markets today see Nymex crude oil prices a bit firmer and trading around $40.00 a barrel. The crude oil market bulls have seen their price uptrend on the daily chart stall out. The U.S. dollar index is a lower and hit another nearly two-year low overnight.

U.S. economic data due for release Friday includes personal income and outlays, the employment cost index, the ISM-Chicago business survey, and the University of Michigan consumer sentiment survey.

–Jim

U.S. STOCK INDEXES

September S&P 500 e-mini futures: Prices are firmer in early U.S. trading. Bulls have the solid overall near-term technical advantage amid a 4.5-month-old price uptrend in place. 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 bearish early today. Today, shorter-term technical resistance comes in at the overnight high of 3,273.75 and then at the July high of 3,284.50. Buy stops likely reside just above those levels. Downside support for active traders today is seen at this week’s low of 3,195.00 and then at 3,175.00. Wyckoff’s Intra-day Market Rating: 6.0

September Nasdaq index futures: Prices are higher in early U.S. trading. Bulls remain in firm overall technical control. 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 to bullish early today. Shorter-term technical resistance is seen at 11,000.50 and then at the July high of 11,058.50. On the downside, shorter-term support is seen at 10,650.00 and then at 10,500. Wyckoff’s Intra-Day Market Rating: 6.5.

U.S. TREASURY BONDS AND NOTES FUTURES

September U.S. T-Bonds: Prices are higher and hit a nearly five-month high in early U.S. trading. Bulls have the solid near-term chart 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 technical resistance is seen at the overnight high of 182 26/32 and then at 183 even. Shorter-term support lies at the overnight low of 182 4/32 and then at Thursday’s low of 181 10/32. Wyckoff’s Intra-Day Market Rating: 6.5

September U.S. T-Notes: Prices are higher and hit another contract high in early U.S. trading. Bulls have the solid 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 contract high of 140.06.0 and then at 140.12.0. Shorter-term technical support lies at the overnight low of 139.31.0 and then at Thursday’s low of 139.24.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 7.0

EURO CURRENCY

The September Euro currency futures are firmer and hit a nearly two-year high overnight. Bulls have the solid overall near-term technical advantage. The shorter-term moving averages for the Euro are bullish early today, as the 4-day is above the 9-day. The 9-day is above the 18-day moving average. Short-term oscillators for the Euro are neutral to bullish early today. The Euro currency finds shorter-term technical resistance at the overnight high of 1.1919 and then at 1.1950. Shorter-term support is seen at 1.1800 and then at Thursday’s low of 1.1742. Wyckoff’s Intra Day Market Rating: 6.0

NYMEX CRUDE OIL

September Nymex crude oil prices are slightly up in early U.S. trading. A gentle price uptrend on the daily chart has stalled out. 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 early today. Look for buy stops to reside just above technical resistance at the overnight high of $40.55 and then at $41.00. Look for sell stops just below technical support at $39.00 and then at this week’s low of $38.72. Wyckoff’s Intra-Day Market Rating: 5.5

GRAINS

US grain futures are firmer in early U.S. pre-market trading, on short covering. The slumping U.S. dollar index is bullish for the grain markets, making U.S. grains more competitive on the world markets. Still bearish is non-threatening U.S. weather in the Corn Belt. Corn remains the weak sister of the grain markets, and remember the old market saying, “corn is king.”

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, July 30–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly lower in overnight trading. The U.S. stock indexes are pointed toward lower openings when the New York day session begins. Market participants are in a gloomier mood Thursday.

U.S. traders and investors are focused on some somber comments made by Fed Chairman Jerome Powell on Wednesday afternoon, at his press conference following the FOMC meeting that saw no change in U.S. monetary policy. “It looks like the data are pointing to a slowing pace of the recovery,” said Powell, citing evidence of a pullback by consumers and a slowdown in the rehiring of furloughed workers, particularly by small businesses.

The marketplace Thursday morning will get a first look at second-quarter U.S. gross domestic product and it won’t be pretty. Analysts forecast 1Q GDP to be down a stunning 35% from the first quarter. That would be the worst quarterly GDP reading since it began being recorded in 1947, and would beat the previous quarterly downturn by three-fold. Earlier today Germany released its 2Q GDP and it came in at -10.1% from 1Q and down 11.7%, year-on-year. Those numbers were the worst on record, dating back 50 years.

U.S. stock indexes had been supported recently by corporate earnings reports that have generally beat market expectations.

Meantime, the U.S. Congress is nowhere close to agreeing on a new stimulus package for Americans, heading into their August recess.

The important outside markets today see Nymex crude oil prices weaker and trading around $40.65 a barrel. The U.S. dollar index is a bit higher today after hitting a nearly two-year low on Wednesday. The yield on the benchmark U.S. Treasury 10-year note is currently trading around the 0.55% level.

Other U.S. economic data due for release Thursday includes the weekly jobless claims report, expected to show a figure of around 1.5 million new claims in the latest week.

–Jim

U.S. STOCK INDEXES

September S&P 500 e-mini futures: Prices are lower in early U.S. trading. Bulls still have the solid overall near-term technical advantage amid a 4.5-month-old price uptrend in place. 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 this week’s high of 3,257.00 and then at last week’s high of 3,284.50. Buy stops likely reside just above those levels. Downside support for active traders today is seen at the overnight low of 3,215.25 and then at last week’s low of 3,191.50. Wyckoff’s Intra-day Market Rating: 4.0

September Nasdaq index futures: Prices are lower in early U.S. trading. Bulls remain in firm overall technical control. However, the higher volatility at higher price levels is one clue of a topping process. Shorter-term moving averages (4- 9-and 18-day) are neutral early today. The 4-day moving average is below the 9-day and 18-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 this week’s high of 10,758.50 and then at 10,900.00. On the downside, shorter-term support is seen at 10,500.00 and then at this week’s low of 10,401. Wyckoff’s Intra-Day Market Rating: 4.0.

U.S. TREASURY BONDS AND NOTES FUTURES

September U.S. T-Bonds: Prices are higher and hit a nearly five-month high in early U.S. trading. Bulls have the solid near-term chart 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 technical resistance is seen at the overnight high of 182 2/32 and then at 183 even. Shorter-term support lies at the overnight low of 181 10/32 and then at Wednesday’s low of 180 29/32. Wyckoff’s Intra-Day Market Rating: 6.5

September U.S. T-Notes: Prices are higher and hit a contract high in early U.S. trading. Bulls have the solid 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 140.00.0 and then at 140.08.0. Shorter-term technical support lies at the overnight low of 139.24.0 and then at 139.16.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 6.5

EURO CURRENCY

The September Euro currency futures are a bit weaker in early U.S. trading, but near this week’s nearly two-year high. Bulls have the solid overall near-term technical advantage. 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 this week’s high of 1.1819 and then at 1.1850. Shorter-term support is seen at 1.1711 and then at this week’s low of 1.1655. Wyckoff’s Intra Day Market Rating: 5.0

NYMEX CRUDE OIL

September Nymex crude oil prices are lower in early U.S. trading. A gentle price uptrend on the daily chart has stalled out. 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 $41.39 and then at this week’s high of $41.93. Look for sell stops just below technical support at the overnight low of $40.50 and then at $40.00. Wyckoff’s Intra-Day Market Rating: 4.0

GRAINS

US grain futures are mixed to weaker in early U.S. pre-market trading. Bears are having the better week. Non-threatening U.S. weather and deteriorating U.S.-China trade relations are bearish. Wheat and soybeans are still in price uptrends on the daily charts, but just barely. Traders today will focus on the weekly USDA export sales 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

Wednesday, July 29–Jim Wyckoff’s Morning Markets Report

Global stock markets were mixed in overnight trading. The U.S. stock indexes are pointed toward modestly higher openings when the New York day session begins. Focus at mid-week is on the Federal Reserve’s Open Market Committee (FOMC) that began meeting Tuesday to discuss U.S. monetary policy and ends this afternoon with a statement and press conference from Fed Chairman Powell. No changes in policy are expected but the Fed is expected to reiterate U.S. interest rates will remain low for a long time amid the challenges of dealing with the pandemic. As always, the FOMC statement and comments from Powell will be closely scrutinized. The Federal Reserve on Tuesday extended by three months (until December) some emergency lending programs.

U.S. stock indexes have been supported recently by corporate earnings reports that have generally beat market expectations.

Meantime, Republican senators are presently splintered regarding a new stimulus package for Americans, heading into their August recess.

The important outside markets today see Nymex crude oil prices firmer and trading around $41.50 a barrel. The U.S. dollar index is weaker. The yield on the benchmark U.S. Treasury 10-year note is currently trading around the 0.59% level.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, advance economic indicators, pending home sales, and the weekly DOE liquid energy stocks report.

–Jim

U.S. STOCK INDEXES

September S&P 500 e-mini futures: Prices are a bit firmer in early U.S. trading. Bulls have the solid overall near-term technical advantage amid a 4.5-month-old price uptrend in place. 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 bearish early today. Today, shorter-term technical resistance comes in at this week’s high of 3,246.75 and then at last week’s high of 3,284.50. Buy stops likely reside just above those levels. Downside support for active traders today is seen at last week’s low of 3,191.50. Wyckoff’s Intra-day Market Rating: 5.5

September Nasdaq index futures: Prices are higher in early U.S. trading. Bulls remain in firm overall technical control. However, the higher volatility at higher price levels is one clue of a topping process. Shorter-term moving averages (4- 9-and 18-day) are neutral early today. The 4-day moving average is below the 9-day and 18-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 this week’s high of 10,758.50 and then at 10,900.00. On the downside, shorter-term support is seen at 10,500.00 and then at this week’s low of 10,401. Wyckoff’s Intra-Day Market Rating: 5.5.

U.S. TREASURY BONDS AND NOTES FUTURES

September U.S. T-Bonds: Prices are weaker in early U.S. trading. Bulls still have the firm chart 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 technical resistance is seen at last week’s high of 181 30/32 and then at 182 16/32. Shorter-term support lies at this week’s low of 179 30/32 and then at 179 even. Wyckoff’s Intra-Day Market Rating: 4.5

September U.S. T-Notes: Prices are weaker in early U.S. trading. Bulls have the solid 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 139.25.0 and then at 140.00.0. Shorter-term technical support lies at this week’s low of 139.08.0 and then at 139.00.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.5

EURO CURRENCY

The September Euro currency futures are higher and near this week’s nearly two-year high. Bulls have the solid overall near-term technical advantage. 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 1.1794 and then at 1.1850. Shorter-term support is seen at 1.1700 and then at this week’s low of 1.1655. Wyckoff’s Intra Day Market Rating: 6.0

NYMEX CRUDE OIL

September Nymex crude oil prices are firmer in early U.S. trading. A gentle price uptrend on the daily chart has stalled out again. 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 early today. Look for buy stops to reside just above technical resistance at this week’s high of $41.93 and then at the July high of $42.51. Look for sell stops just below technical support at this week’s low of $40.48 and then at $40.00. Wyckoff’s Intra-Day Market Rating: 5.5

GRAINS

US grain futures are mixed in early U.S. pre-market trading. Bears are having the better week, so far. Non-threatening U.S. weather and deteriorating U.S.-China trade relations are bearish. Wheat and soybeans are still in price uptrends on the daily charts, but just barely. It could be that rallies in other raw commodity markets, such as the metals, could invite some fresh speculative interest 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

Tuesday, July 28–Jim Wyckoff’s Morning Markets Report

Global stock markets were mixed in overnight trading, with European indexes mostly weaker and Asian indexes mostly firmer. The U.S. stock indexes are pointed toward weaker openings when the New York day session begins. One market analyst summed up the recent stock market strength in the face of rising Covid-19 infections and a “second wave” by saying markets seem to be pricing in a return to normalcy by the end of the year, largely on hopes of a proven vaccine by then. Those market participants “taking the other side of that trade” wonder when markets will start pricing in a worsening pandemic situation and no successful vaccine on the horizon. Some argue gold and silver markets are now pricing in the latter notion.

The feature in the global marketplace this week is gold and silver prices surging to record and seven-year highs, respectively. Nearby Comex gold futures hit a new high of $1,974.70 an ounce overnight. Silver futures hit a high of $26.275. Both metals then backed off on some normal profit taking by the shorter-term futures traders. Bullish fundamental drivers of the rallies in the precious metals include a continued rise in Covid-19 infections in major industrialized countries and new shutdowns, a pending U.S. government stimulus package totaling $1 trillion, a depreciating U.S. dollar index that hit a nearly two-year low this week, rising U.S.-China political tensions, and a surge in buying of gold-back exchange traded funds.

The Federal Reserve’s Open Market Committee (FOMC) will meet Tuesday and Wednesday to discuss U.S. monetary policy. No changes in policy are expected but the Fed is expected to reiterate U.S. interest rates will remain low for a long time amid the challenges of dealing with the pandemic.

The important outside markets today see Nymex crude oil prices weaker and trading around $41.35 a barrel. The U.S. dollar index is firmer on a corrective bounce after hitting a nearly two-year low Monday. The yield on the benchmark U.S. Treasury 10-year note is currently trading around the 0.6% level.

U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, the S&P-Core Logic-Shiller home price index, the Richmond Fed business survey, and the consumer confidence index.

–Jim

U.S. STOCK INDEXES

September S&P 500 e-mini futures: Prices are a bit weaker in early U.S. trading. Bulls still have the solid overall near-term technical advantage amid a 4.5-month-old price uptrend in place. The shorter-term moving averages (4-, 9- and 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. Short-term oscillators (RSI, slow stochastics) are bearish early today. Today, shorter-term technical resistance comes in at the overnight high of 3,246.75 and then at last week’s high of 3,284.50. Buy stops likely reside just above those levels. Downside support for active traders today is seen at last week’s low of 3,191.50. Wyckoff’s Intra-day Market Rating: 4.5

September Nasdaq index futures: Prices are weaker in early U.S. trading. Bulls remain in firm overall technical control. However, the higher volatility at higher price levels is one clue of a topping process. Shorter-term moving averages (4- 9-and 18-day) are neutral early today. The 4-day moving average is below the 9-day and 18-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 10,758.50 and then at 10,900.00. On the downside, shorter-term support is seen at 10,500.00 and then at this week’s low of 10,401. Wyckoff’s Intra-Day Market Rating: 4.5.

U.S. TREASURY BONDS AND NOTES FUTURES

September U.S. T-Bonds: Prices are slightly down in early U.S. trading. Bulls still have the firm chart 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 technical resistance is seen at 181 even and then at last week’s high of 181 30/32. Shorter-term support lies at the overnight low of 179 30/32 and then at 179 even. Wyckoff’s Intra-Day Market Rating: 5.0

September U.S. T-Notes: Prices are near steady in early U.S. trading. Bulls have the solid 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 139.25.0 and then at 140.00.0. Shorter-term technical support lies at the overnight low of 139.08.0 and then at 139.00.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.0

EURO CURRENCY

The September Euro currency futures are slightly lower after hitting a nearly two-year high Monday. Bulls have the solid overall near-term technical advantage. 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 this week’s high of 1.1794 and then at 1.1850. Shorter-term support is seen at 1.1700 and then at this week’s low of 1.1655. Wyckoff’s Intra Day Market Rating: 5.0

NYMEX CRUDE OIL

September Nymex crude oil prices are slightly lower in early U.S. trading. A gentle price uptrend on the daily chart has stalled out again. 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 last week’s high of $42.51 and then at $43.00. Look for sell stops just below technical support at $41.00 and then at $40.00. Wyckoff’s Intra-Day Market Rating: 4.5

GRAINS

US grain futures are lower in early U.S. pre-market trading. There were surprisingly large increases in the good to excellent U.S. corn and soybean crop condition ratings released Monday afternoon by USDA. That’s pressuring those markets and wheat is following. Non-threatening U.S. weather and deteriorating U.S.-China trade relations are also bearish. Wheat and soybeans are still in price uptrends on the daily charts, however.

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