Daily Morning Report

Monday, April 30–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. Solid corporate earnings reports released recently have supported world stock markets.

Two important meetings will have the attention of the world marketplace this week: the Federal Reserve’s Open Market Committee (FOMC) meeting that begins Tuesday, and the U.S. high-level trade delegation that will be in China later this week. And then on Friday is the U.S. employment report from the Labor Department—arguably the most important U.S. data point of the month.

The key “outside markets” on Monday morning see the U.S. dollar index trading firmer. Prices last week hit a 3.5-month high. Meantime, Nymex crude oil prices are lower and trading just above $67.00 a barrel. The U.S. oil rig count hit a three-year high last week, which is pressing oil prices lower today.

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Friday, April 27–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly higher overnight. U.S. stock indexes are pointed toward mixed openings when the New York day session begins. Strong corporate earnings reports coming out of the U.S. late this week are helping the stock market bulls. A decline in government bond yields late this week is also a bullish development for equities.

In overnight news, a meeting between North Korean and South Korean officials, including North Korea’s Kim Jong Un and South Korean President Moon Jae-in made dramatic progress, with a peace treaty signed declaring the end of the Korean War that was fought 65 years ago. This shocking development has many wondering if Kim Jong Un is sincere.

The U.K.’s gross domestic product grew only 0.1% in the first quarter, which is the slowest growth rate for the country in five years.

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If you trade the currencies, you certainly noticed that the past couple weeks have seen stronger-trending price moves. The question is, are these moves sustainable? History shows that price trends in the currency markets tend to be stronger and longer-lasting that price trends in other markets. See on the daily bar chart for the Euro currency futures that prices are in a downtrend and have this week hit a 3.5-month low. The Euro bears have downside momentum to suggest more price pressure in the near term. Stay tuned!

Thursday, April 26–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly firmer overnight. U.S. stock indexes are also pointed toward modestly higher openings when the New York day session begins. Upbeat corporate earnings reports recently are working in favor of the stock market bulls today. However, worries about rising inflation are limiting the upside in world stock markets. The marketplace has viewed with trepidation this week the move above 3.0% in U.S. 10-year Treasury note yields.

The European central bank holds its regular monetary policy meeting Thursday. No change in policy is expected.

The key “outside markets” on Thursday morning see the U.S. dollar index trading slightly up and hitting another 3.5-month high overnight. Meantime, Nymex crude oil prices are firmer and trading around $68.50 a barrel.

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Wednesday, April 25–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly lower overnight. U.S. stock indexes are pointed toward weaker openings when the New York day session begins. Investor risk appetite has waned a bit this week on some disappointing corporate earnings reports and worries about rising interest rates and inflation.

A feature in the marketplace recently has been rising world government bond yields. The U.S. Treasury 10-year note yield on Tuesday moved above 3.0%–the highest level in four years.

The key “outside markets” on Wednesday morning see the U.S. dollar index trading firmer. A look at several currency-pair charts reveals near-term strong-trending, and even “breakout” price moves that have occurred over the past couple weeks.

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The gold market bulls have seen fits and starts in trying to sustain a price uptrend and push prices above strong layers of resistance that lie above the $1,350.00 area. This sideways trading action has been going on since the beginning of the year. Until there is a price “breakout” from the aforementioned trading range, look for more of the same choppy and sideways price action for the near term. I’m still giving the bulls the overall near-term technical advantage. Stay tuned!