Daily Morning Report

Wednesday, August 15–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

Global stock markets were mixed overnight. U.S. stock indexes are also pointed toward weaker openings when the New York day session begins.

U.S.-Turkey relations have further deteriorated as Turkey has slapped economic sanctions on the U.S. The Turkish lira has stabilized at mid-week, but traders and investors worldwide are still jittery that a secondary currency contagion could still develop as the U.S. dollar continues to appreciate against most world currencies.

The economic highlight of the day for the U.S. is retail sales data for July, which is expected to come in at up just 0.1%.

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The Nymex crude oil futures market on Monday hit a six-week low and a downtrend line is in place on the daily bar chart. The bulls have lost momentum and the charts have become less bullish, suggesting a near-term market top has occurred and that prices will trade sideways at best in the near term, if not sideways to lower. Stay tuned!

Tuesday, August 14–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

Global stock markets were mostly higher overnight, on corrective rebounds from Monday’s selling pressure. U.S. stock indexes are also pointed toward firmer openings when the New York day session begins.

The currency markets have stabilized a bit today, following Monday’s and recent price action that have seen the world’s secondary currencies seriously depreciate against the U.S. dollar—especially the Turkish lira. Still, this matter is of serious concern to traders and investors as they worry about a contagion-type scenario that has gripped currency markets in recent history.

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Monday, August 13–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

It’s a risk-off day in the world marketplace to start the trading week Monday, as global stock markets were lower overnight. U.S. stock indexes are also pointed toward lower openings when the New York day session begins.

The stock and currency markets are roiled again today, with focus on a crumbling Turkish lira and that country’s financial troubles. The Lira was down as much as 10% today following sharp losses last week. Turkey’s government has so far done or said little to stem the drop in the lira.

The Indian rupee, South African rand and Mexican peso are included in those secondary currencies also getting hit hard today by an appreciating U.S. dollar. The U.S. dollar index rose to another 13-month high today, on safe-haven demand.

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The U.S. dollar index is a basket of six major currencies weighted against the greenback. The USDX soared to a 13-month high Friday, on safe-haven demand amid roiled currency markets—led by the tumbling Turkish lira. There are worries the depreciating lira could create a contagion in other world secondary currency markets. Stay tuned!

Friday, August 10–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

Global stock markets were mostly lower overnight, with European shares leading the way with solid losses. The currency markets are in keen focus late this week as the Russian ruble has sunk against the U.S. dollar and the Euro currency fell to a one-year low against the greenback. The Euro currency has taken a beating on the world foreign exchange market today, as the Euro zone has a heavier exposure to the Turkish lira, which has been pummeled recently on the foreign exchange market—losing around 15% of its value just this week. All of the above have pushed the U.S. dollar index to a 13-month high today, on safe-haven demand. The world marketplace is especially concerned about the Turkish lira’s situation expanding into a contagion of secondary world currencies. The Financial Times has reported the European Central Bank is examining several European banks’ exposure to the lira. U.S. stock indexes are also pointed toward lower openings when the New York day session begins.

The gold and silver market bulls are frustrated the that currency market turmoil has not at all benefitted the safe-haven metals—at least not yet.

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