Daily Morning Report

Wednesday, July 18–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

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

Global trader and investor attitudes remain upbeat, which is supportive for equities. Federal Reserve Chairman Jerome Powell gave a very upbeat assessment on the U.S. economy to a U.S. Senate panel on Tuesday, which helped to boost U.S. stock indexes to contract or multi-month highs.

In overnight news, the Euro zone consumer price index for June was reported up 0.1% from May and up 2.0%, year-on-year. Those numbers were right in line with market expectations.

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The Nymex crude oil futures market has backed way down from the early-July high above $75.00 a barrel. The recent sharp down-days have produced some near-term technical damage to begin to suggest this market has put in a near-term top, if not a major top. More solid selling pressure this week would better suggest a top is in place. Fundamentally, world oil production is on the rise again, after some producer outages kept supplies off the world market in recent weeks. Stay tuned!

Tuesday, July 17–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mixed overnight. U.S. stock indexes are pointed toward slightly lower openings when the New York day session begins. In quieter summertime trading, U.S. stock indexes are near multi-month highs, to underscore the “risk-on” trader mentality in the marketplace at present.

While not really market-sensitive, the media is still buzzing about the summit meeting between U.S. President Trump and Russian President Putin on Monday. The news coverage is somewhat taking trader and investor attention away from other matters that may be more relevant to markets.

On tap today, U.S. Federal Reserve Chairman Jerome Powell testifies before the Senate Banking Committee on monetary policy. The marketplace will parse his words for clues on timing of future interest rate increases.

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Monday, July 16–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

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

There is still little risk aversion among global traders and investors, despite a trade war between the world’s two largest economies. This is keeping a flow of monies into world stock markets, especially in light of a floundering raw commodity sector at present, due to the U.S.-China major trade dispute.

In overnight news, China’s gross domestic product growth in the second quarter was reported at 6.7%, year-on-year, which is lower than the 6.8% growth rate posted in the first quarter. The growth rate is also about in line with the Chinese government’s 6.5% annual growth target.

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The cotton market bulls are back in business after prices closed locked up the 400-point limit on Thursday, following a very bullish USDA supply and demand report. The big upmove put December cotton futures back into a bullish near-term technical posture. While a normal corrective pullback from Thursday’s big gains was seen as of this writing Friday morning, look for the cotton futures market to at least challenge the early-June high in the coming weeks. Stay tuned!

Friday, July 13–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly firmer overnight. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins. U.S. stock indexes hit multi-month highs overnight. There is little risk aversion in the marketplace at present, which is keeping a flow of investor monies into world equities markets.

The British pound is under some pressure versus the U.S. dollar today as President Trump has criticized U.K. Prime Minister May for her Brexit strategy. May is perceived to be in a very weak position in her leadership, at present.

The key “outside markets” today find Nymex crude oil prices weaker on follow-through selling from strong losses posted Wednesday, and are trading just above $70.00 a barrel. A lower close in the Nymex oil futures market today would be a technical clue that crude oil has put in at least a near-term top, if not a major top.

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