Daily Morning Report

Monday, June 4–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly higher overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. Traders and investors are in generally upbeat moods following Friday’s stronger U.S. jobs report and easing concerns about the political situation in Italy.

So far early this week, the marketplace is not reacting much to reports over the weekend that said the U.S. and China have made no progress in their trade talks. Meantime, the U.S. is getting heavily criticized by the European Union, Canada and Mexico for its protectionist trade posture.

In other news overnight, the Euro zone producer price index for April was unchanged from March and up 2.0%, year-on-year. Those numbers were lower than forecast.

The key “outside markets” today find Nymex crude oil prices weaker and trading just above $65.00 a barrel. The U.S. dollar index is lower.

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Friday, June 1–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mixed overnight, with Asian indexes mixed and European indexes mostly higher. U.S. stock indexes are pointed toward higher openings when the New York day session begins.

In overnight news, worries regarding the financial and political stability of Italy were somewhat assuaged when the two major antiestablishment parties made a deal on a coalition government. This is apparently the better alternative than new elections, according to the sense of the marketplace at present.

The U.S. on Thursday implementing previously announced tariffs on imports of aluminum and steel does have traders and investors worried about a global trade war. Retaliatory tariffs against U.S. products are already being announced from other countries.

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The cotton market is in a major bull run and this week hit a contract high, including a big limit-up daily trade on Tuesday. The cotton bulls remain in strong near-term technical control, have gained more strength this week, and there are no early warning signals that a market top is close at hand. In fact, an examination of a longer-term monthly cotton chart shows prices at present are nowhere near historic highs. Stay tuned!

Thursday, May 31–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

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

There were no major, new developments overnight on the geopolitical front.

Today is the last trading day of the month, which makes it a more important trading day from a technical perspective.

Traders are awaiting Friday’s U.S. jobs report for May. The key non-farm payrolls number is expected to come in at up around 190,000. Wednesday’s ADP jobs report showed a rise of 178,000.

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Wednesday, May 30–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

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

It’s a very busy day for U.S. economic data Wednesday, including the weekly Goldman Sachs and Johnson Redbook retail sales reports, the weekly MBA mortgage applications survey, the ADP national employment report, the advance economic indicators report, the second estimate of first-quarter GDP, and the Federal Reserve’s beige book.

The key data point for today is likely to be the national employment report for May, which is forecast to come in at up 187,000. That report is the precursor to the Labor Department’s employment situation report on Friday morning.

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The wheels have quickly come off the Nymex crude oil bullish train. The recent steep downdraft in prices have negated a price uptrend and there are now strong clues that a market top is in place. The bearish fundamental of rising U.S. crude oil production, which is now at a record high of over 10 million barrels a day, and the added specter of Russia and Saudi Arabia now opening up their oil spigots more, have put a knife in the heart of the bullish crude oil camp. Now, major psychological resistance lies at $70.00 a barrel. The next downside target for the empowered crude oil bears is pushing prices below chart support at $65.00. Stay tuned!