Daily Morning Report

Monday, July 27–Jim Wyckoff’s Morning Markets Report

Global stock markets were mixed in overnight trading. The U.S. stock indexes are pointed toward firmer openings when the New York day session begins. U.S. shares are boosted in part on weekend news that a $1 trillion U.S. government economic stimulus plan is moving through the legislative process more quickly than expected.

The feature in the marketplace to start the trading week is gold prices surging to a record high of $1,941.90, basis nearby Comex futures (as of this writing), and silver futures hitting a seven-year high of $24.82. A continued surge in Covid-19 infections in major industrialized countries, a new U.S. government stimulus package totaling $1 trillion, a slumping U.S. dollar index that hit a nearly two-year low overnight, rising U.S.-China trade tensions, and a big surge in buying of gold-back exchange traded funds, including the Robinhood platform, are propelling the safe-haven metals sharply higher. Said one broker in a morning email dispatch: “Investors see holding gold as offering less risk than other instruments while enjoying upside momentum.”

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 firmer and trading around $41.50 a barrel. The U.S. dollar index is solidly down and hit a nearly two-year low overnight. The yield on the benchmark U.S. Treasury 10-year note is currently dipping a bit and trading around the 0.58% level.

U.S. economic data due for release Monday includes durable goods orders and the Texas manufacturing outlook 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 four-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 early today. Today, shorter-term technical resistance comes in at 3,250.00 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 last week’s low of 3,191.50. Wyckoff’s Intra-day Market Rating: 6.0

September Nasdaq index futures: Prices are solidly higher in early U.S. trading. Bulls remain in firm overall technical control. Shorter-term moving averages (4- 9-and 18-day) are neutral early today. The 4-day moving average is below the 9-day. The 9-day average is above the 18-day. Short-term oscillators (RSI, slow stochastics) are neutral early today. Shorter-term technical resistance is seen at the 10,600.00 and then at 10,700.00. On the downside, shorter-term support is seen at the overnight low of 10,401.00 and then at last week’s low of 10,301. Wyckoff’s Intra-Day Market Rating: 6.5.

U.S. TREASURY BONDS AND NOTES FUTURES

September U.S. T-Bonds: Prices are higher in early U.S. trading and trading close to last week’s 4.5-month high overnight. Bulls have the solid 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 last week’s high of 181 30/32 and then at 182 16/32. Shorter-term support lies at the overnight low of 180 31/32 and then at 180 16/32. Wyckoff’s Intra-Day Market Rating: 6.0

September U.S. T-Notes: Prices are higher in early U.S. trading and close to last week’s 4.5-month high. 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 last week’s high of 139.25.0 and then at 140.00.0. Shorter-term technical support lies at the overnight low of 139.17.0 and then at last week’s low of 139.10.5. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 6.0

EURO CURRENCY

The September Euro currency futures are solidly higher and hit a nearly two-year high in early U.S. trading. 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 bullish early today. The Euro currency finds shorter-term technical resistance at 1.1750 and then at 1.1800. Shorter-term support is seen at 1.1700 and then at today’s low of 1.1655. Wyckoff’s Intra Day Market Rating: 7.0

NYMEX CRUDE OIL

September Nymex crude oil prices are slightly firmer in early U.S. trading. A gentle price uptrend on the daily chart has stalled out again. The shorter-term moving averages 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 (RSI and slow stochastics) are neutral 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: 5.5

GRAINS

US grain futures are mixed in early U.S. pre-market trading.  The big surge in precious metals markets is inviting some speculator buying interest in the grains. However, good U.S. growing conditions in the U.S. Midwest and deteriorating U.S.-China trade relations are bearish. Soybean futures are maintaining a near-term price uptrend. Same goes for wheat. My bias is that if corn continues to languish, the upside will be limited for soybeans and wheat. Here’s a wild card: It could be that some countries could start stockpiling historically cheap grains in the coming weeks. That could put, or maybe has put, market bottoms in place for the grains, and could even see price uptrends developing.

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, July 24–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly weaker in overnight trading. The U.S. stock indexes are pointed toward slightly lower openings when the New York day session begins. Risk aversion is keener to end the trading week. As expected China has retaliated against the U.S. for closing China’s consulate in Houston, Texas this week by kicking the Americans out of their consulate in Chengdu, China. The world’s two largest economies continue on a downward spiral in their already-tense relationship. U.S. Secretary of State Mike Pompeo on Thursday also delivered a harsh speech on China, coming close to suggesting a regime change.

At mid-week there were slightly upbeat ideas of another U.S. government financial aid package to Americans coming soon. However, reports said the Republican members of the Senate have scrapped their initial plan over disagreements with the Trump administration. Now, hopes for a new aid plan for consumers before the August congressional recess appear dim. This is also a negative for equities markets.

In overnight news, Russia’s central bank lowered its main interest rate by 0.25%, to 4.25%. The central bank said it may have to lower rates again, adding that it expects Russian GDP to be at -4.5 to -5.5% in 2020.

The Euro zone got some more better-than-expected economic news Friday, as its flash composite purchasing managers index came in at 54.8 in July versus expectations of 51.0. A reading above 50.0 suggests growth in the sector.

The important outside markets today see Nymex crude oil prices firmer and trading around $41.50 a barrel. The U.S. dollar index is slightly up in early trading after hitting a 1.5-year low overnight. The yield on the benchmark U.S. Treasury 10-year note is currently around the 0.58% level.

U.S. economic data due for release Friday includes the flash manufacturing purchasing managers index (PMI), the services PMI, and new residential sales.

–Jim

U.S. STOCK INDEXES

September S&P 500 e-mini futures: Prices are weaker in early U.S. trading on some profit taking from recent gains that saw prices hit a five-month high Thursday. Bulls still have the solid overall near-term technical advantage amid a four-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 bearish early today. Today, shorter-term technical resistance comes in at the overnight high of 3,239.00 and then at this week’s high of 3,384.50. Buy stops likely reside just above those levels. Downside support for active traders today is seen at this week’s low of 3,190.25 and then at 3,150.00. Wyckoff’s Intra-day Market Rating: 4.5

September Nasdaq index futures: Prices are lower in early U.S. trading on some profit taking. Bulls remain in firm overall technical control, but a bearish weekly low close on Friday would suggest a near-term market top is in place. 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 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 10,597.00 and then at 10,750.00. On the downside, shorter-term support is seen at the overnight low of 10,377.25 and then at 10,250. Wyckoff’s Intra-Day Market Rating: 4.0.

U.S. TREASURY BONDS AND NOTES FUTURES

September U.S. T-Bonds: Prices are slightly higher in early U.S. trading and hit a 4.5-month high overnight. Bulls have the solid 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 the overnight high of 181 30/32 and then at 182 16/32. Shorter-term support lies at the overnight low of 180 31/32 and then at 180 16/32. Wyckoff’s Intra-Day Market Rating: 6.0

September U.S. T-Notes: Prices are slightly weaker in early U.S. trading after hitting a 4.5-month high overnight. 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 the overnight high of 139.25.0 and then at 140.00.0. Shorter-term technical support lies at 139.16.0 and then at this week’s low of 139.10.5. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.5

EURO CURRENCY

The September Euro currency futures are weaker in early U.S. trading on a corrective pullback from recent solid gains. Bulls still 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 1.1640 and then at 1.1675. Shorter-term support is seen at Thursday’s low of 1.1553 and then at 1.1500. Wyckoff’s Intra Day Market Rating: 4.5

NYMEX CRUDE OIL

September Nymex crude oil prices are firmer in early U.S. trading. A gentle price uptrend on the daily chart is in place, but just barely. The shorter-term moving averages 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 (RSI and slow stochastics) are neutral early today. Look for buy stops to reside just above technical resistance at this week’s high of $42.51 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: 5.5

GRAINS

US grain futures are firmer in early U.S. pre-market trading. The weather in the U.S. Corn Belt remains non-threatening. U.S.-China relations are deteriorating. Those elements are bearish. Soybean futures are maintaining a near-term price uptrend but bulls need to show more power soon to keep it alive. Same goes for wheat. My bias is that if corn continues to languish, the upside will be limited for soybeans and wheat. Here’s a wild card: It could be that some countries could start stockpiling historically cheap grains in the coming weeks. That could put, or maybe has put, market bottoms in place for the grains, and could even see price uptrends developing.

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

Global stock markets were mostly up in overnight trading. The U.S. stock indexes are pointed toward higher openings when the New York day session begins. Upbeat U.S. corporate earnings are driving share prices higher, as traders and investors are at present looking past the worrisome rise in Covid-19 infection in the U.S.

There are also slightly increased hopes of another U.S. government financial aid package to Americans sooner. The Republican members of the Senate have agreed with the Trump administration on a measure worth around $1 trillion to send to the Democrats for their consideration. The Democrats want more funds, however. The European Union earlier this week agreed on a big spending package to help out its citizens and businesses.

Gold and silver prices continue on a bullish roll Thursday, as gold set a nearly nine-year high and is closing in on its all-time high of $1,920.70, basis Comex futures. Silver prices have gained over $3.00 an ounce just this week and hit a 6.5-year high overnight. More upside is likely for both metals in the near term.

The important outside markets today see Nymex crude oil prices firmer and trading around $42.25 a barrel and near this week’s 4.5-month high. The U.S. dollar index is lower in early trading and hit another 4.5-month low. The yield on the benchmark U.S. Treasury 10-year note is currently around the 0.59% level.

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

–Jim

U.S. STOCK INDEXES

September S&P 500 e-mini futures: Prices are firmer in early U.S. trading and hit a five-month high. Bulls have the solid overall near-term technical advantage amid a four-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 bullish early today. Today, shorter-term technical resistance comes in at 3,300.00 and then at 3,325.00. Buy stops likely reside just above those levels. Downside support for active traders today is seen at the overnight low of 3,258.50 and then at Tuesday’s low of 3,227.25. Wyckoff’s Intra-day Market Rating: 6.5

September Nasdaq index futures: Prices are higher and close to the record high in early U.S. trading. Bulls remain in solid overall technical control, to suggest more upside in the near term. 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 record high of 11,058.50 and then at 11,200.00. On the downside, shorter-term support is seen at Wednesday’s low of 10,761.25 and then at 10,650. Wyckoff’s Intra-Day Market Rating: 6.5.

U.S. TREASURY BONDS AND NOTES FUTURES

September U.S. T-Bonds: Prices are slightly higher in early U.S. trading. Bulls have the solid 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 bullish early today. Shorter-term technical resistance is seen at this week’s high of 181 even and then at the July high of 181 14/32. Shorter-term support lies at the overnight low of 180 16/32 and then at this week’s low of 179 22/32. Wyckoff’s Intra-Day Market Rating: 6.0

September U.S. T-Notes: Prices are slightly firmer 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 July high of 139.22.5 and then at the March high of 139.25.0. Shorter-term technical support lies at the overnight low of 139.16.5 and then at this week’s low of 139.10.5. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 6.0

EURO CURRENCY

The September Euro currency futures are higher and near this week’s 12-month high in early U.S. trading. 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 bullish early today. The Euro currency finds shorter-term technical resistance at this week’s high of 1.1616 and then at 1.1650. Shorter-term support is seen at Wednesday’s low of 1.1520 and then at 1.1500. Wyckoff’s Intra Day Market Rating: 6.5

NYMEX CRUDE OIL

September Nymex crude oil prices are near steady in early U.S. trading. A gentle price uptrend on the daily chart is in place. The shorter-term moving averages 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 (RSI and slow stochastics) are neutral early today. Look for buy stops to reside just above technical resistance at the overnight high of $42.36 and then at this week’s high of $42.51. Look for sell stops just below technical support at $41.14 and then at $40.00. Wyckoff’s Intra-Day Market Rating: 5.0

GRAINS

US grain futures are mixed but mostly a bit weaker in early U.S. pre-market trading. Focus today will be on the weekly USDA export sales report and how much grain China purchased. The weather in the U.S. Corn Belt is still benign. That’s bearish, especially for corn. Soybean futures are maintaining a near-term price uptrend but bulls need to show more power soon to keep it alive. Same goes for wheat. My bias is that if corn continues to languish, the upside will be limited for soybeans and wheat.

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 22–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. Traders and investors are more risk averse at mid-week.

China-U.S. relations continue to erode after the U.S. abruptly closed the Chinese consulate in Houston, Texas. China called the U.S. move an “unprecedented escalation” in U.S-China tensions.

President Trump has started doing Covid-19 briefings again and on Tuesday said the pandemic in the U.S. will “get worse before it gets better.” Trump also did an about-face by urging Americans to wear masks.

Hopes of another U.S. government financial aid package to Americans coming quickly have faded this week, amid disagreement among legislators on the package’s contents.

A feature in the marketplace this week is the gold and silver markets bulls on a rampage. Gold prices hit a nearly nine-year high overnight and are not far below the record high of $1,920 scored in 2011. Silver prices hit a 6.5-year high overnight and prices are poised for more big gains. Safe-haven demand, technical buying, a weaker U.S. dollar index, rising crude oil prices, and increasing consumer demand from China and possibly India are all fueling the bull runs in the two precious metals markets.

The important outside markets today see Nymex crude oil prices weaker and trading around $41.50 a barrel after hitting a 4.5-month high on Tuesday. The U.S. dollar index is weaker in early trading and near this week’s 4.5-month low. The yield on the benchmark U.S. Treasury 10-year note is currently around the 0.59% level.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the monthly house price index, existing home sales, and the weekly DOE liquid energy stocks story.

–Jim

U.S. STOCK INDEXES

September S&P 500 e-mini futures: Prices are weaker in early U.S. trading on some mild profit taking in a bull market. Bulls still have the solid overall near-term technical advantage amid a four-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 early today. Today, shorter-term technical resistance comes in at this week’s high of 3,273.25 and then at 3,300.00. Buy stops likely reside just above those levels. Downside support for active traders today is seen at the overnight low of 3,227.25 and then at this week’s low of 3,190.25. Wyckoff’s Intra-day Market Rating: 4.5

September Nasdaq index futures: Prices are slightly higher and very close to the record high in early U.S. trading. Bulls remain in solid overall technical control and have gained fresh power this week, to suggest more upside in the near term. 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 the record high of 11,058.50 and then at 11,200.00. On the downside, shorter-term support is seen at the overnight low of 10,781.25 and then at 10,650. Wyckoff’s Intra-Day Market Rating: 6.0.

U.S. TREASURY BONDS AND NOTES FUTURES

September U.S. T-Bonds: Prices are higher in early U.S. trading. Bulls have the solid 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 bullish early today. Shorter-term technical resistance is seen at the July high of 181 14/32 and then at 182 even. Shorter-term support lies at the overnight low of 180 8/32 and then at this week’s low of 179 22/32. Wyckoff’s Intra-Day Market Rating: 6.0

September U.S. T-Notes: Prices are firmer 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 July high of 139.22.5 and then at the March high of 139.25.0. Shorter-term technical support lies at the overnight low of 139.15.5 and then at this week’s low of 139.10.5. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 6.0

EURO CURRENCY

The September Euro currency futures are higher and hit a 12-month high in early U.S. trading. 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 bullish early today. The Euro currency finds shorter-term technical resistance at the overnight high of 1.1598 and then at 1.1650. Shorter-term support is seen at the overnight low of 1.1520 and then at 1.1500. Wyckoff’s Intra Day Market Rating: 7.0

NYMEX CRUDE OIL

September Nymex crude oil prices are weaker in early U.S. trading, on a corrective pullback. A gentle price uptrend on the daily chart has been restarted. The shorter-term moving averages 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 (RSI and slow stochastics) are bearish early today. Look for buy stops to reside just above technical resistance at the overnight high of $41.93 and then at this week’s high of $42.51. Look for sell stops just below technical support at $40.74 and then at $40.00. Wyckoff’s Intra-Day Market Rating: 4.5

GRAINS

US grain futures are mixed but mostly firmer in early U.S. pre-market trading. The weather in the U.S. Corn Belt is benign. That’s bearish, especially for corn. China is still stepping up and buying U.S. grains—mostly soybeans–and that has supported U.S. beans. Wheat futures have backed off this week but bulls are now working on keeping an uptrend alive in SRW wheat.

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