Daily Morning Report

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

OVERNIGHT DEVELOPMENTS

World stock markets were mixed to lower overnight, on renewed trade tensions among the U.S. and other major world economies. U.S. stock indexes are also pointed toward weaker openings, on some more mild profit taking after hitting record highs on Wednesday.

Today is the deadline President Trump has set for Canada to come to terms with the U.S. on a trade agreement. Also, Trump said in a Bloomberg interview that the European Union “is almost as bad as China” regarding unfair trade practices with the U.S. The U.S. says it will impose another $200 billion in tariffs on China’s imports as early as next week.

Today is the last trading day of the week and of the month, which makes it an extra important trading day from a technical chart perspective. Also, the calendar turns to September on Saturday, and after the long U.S. holiday weekend traders and investors will come back to work in a more serious mood, after a summertime of fun and family vacations. The months of September and October many times find the marketplace focusing on matters of worry. The next couple of months could well find the marketplace closely examining the secondary currency markets and the beating they have taken against the U.S. dollar this year.

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A feature in the marketplace Thursday 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. 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. Such should continue to support gains in the U.S. dollar index, which has seen a corrective pullback this week.

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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