Daily Morning Report

Thursday, August 30–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mixed to lower overnight. U.S. stock indexes are pointed toward weaker openings, on mild profit taking after hitting record highs on Wednesday.

A feature in the marketplace today is weakness in secondary market currencies versus the U.S. dollar. The Argentine peso hit a record low against the greenback and the Turkish lira is also under pressure today. The Brazilian real and Indian rupee are also solidly lower against the dollar. As the calendar turns to September next week, look for focus on secondary currencies and their countries’ problematic debt loads to become in keener focus among traders and investors.

Reports say the U.S. and Canada are close to agreeing on a trade deal, after the U.S and Mexico reached a deal on Monday. Optimism the U.S. will reach more trade agreements with its major trading partners has in part lifted world stock markets this week.

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

OVERNIGHT DEVELOPMENTS

World stock markets were mixed to lower overnight. European
bourses were down as the Euro currency is under some
pressure today, following recent gains. U.S. stock indexes
are pointed toward narrowly mixed openings and hit new
record highs overnight. Traders and investors at present
reckon the stock market is the “main game in town” as money
keeps flowing into those paper assets—at the expense of
hard assets like gold and other raw commodities, except
crude oil, which is not far below this year’s highs.

The U.S. is presently negotiating a trade agreement with
Canada after reaching a deal with Mexico earlier this week.
Part of the investor/trader optimism in the world
marketplace this week is due to ideas the U.S. will come to
terms with more of its trading partners at some point down
the road, and some sooner rather than later.

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The Nymex crude oil bulls have gained fresh power in recent sessions as prices last Friday scored a six-week high. However, the bulls have their work cut out for them as strong layers of technical resistance lie just overhead. It’s my bias that those resistance layers still stall the fledgling uptrend. Stay tuned!

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

OVERNIGHT DEVELOPMENTS

World stock markets were again mostly higher overnight. U.S. stock indexes are pointed toward higher openings and at new record highs when the New York day session begins.

The world marketplace is still buzzing about the U.S. and Mexico coming to terms on a trade agreement. World stock markets rallied on the news. Some now reckon the U.S. will get to work on agreements with its other major trading partners, including the EU and China. However, President Trump has indicated he’s in no rush to make a deal with China.

The key outside markets today find the U.S. dollar index weaker. The greenback bulls are fading a bit now. Meantime, Nymex crude oil prices are slightly up and trading around $69.00 a barrel.

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

OVERNIGHT DEVELOPMENTS

World stock markets were mostly higher overnight. U.S. stock indexes are pointed toward firmer openings when the New York day session begins.

Asian markets were supported by moves by China’s central bank to stabilize its currency, the yuan. The yuan in recent weeks had depreciated against the U.S. dollar.

Reports over the weekend said the U.S. and Mexico could reach a deal on trade (NAFTA 2.0)as soon as today.

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The Euro currency futures market has rebounded from its recent more-than-one-year low. There are some very chart clues that a market bottom is in place. See at the bottom of the chart that the Moving Average Convergence Divergence (MACD) indicator has just produced a bullish line crossover signal. However, the Euro bulls have more work to do to better suggest the market has bottomed out. Price action the next few sessions will go a long way in determining if the Euro has indeed put in a market low. Stay tuned!