Daily Morning Report

Tuesday, March 20–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mixed overnight. U.S. stock indexes are pointed toward modestly lower openings when the New York day session begins. The technology sectors in world stock markets are under pressure this week after Facebook gave consumer data to a firm involved with the Trump presidential campaign. The worries are that governments will slap restrictions on social media and their gathering of consumer data.

The major economic data point of the week will be the Federal Reserve’s Open Market Committee meeting (FOMC) that begins Tuesday morning and ends Wednesday afternoon with a statement. Federal Reserve Chairman Jerome Powell also holds his first press conference after the meeting. Most expect the Fed to slightly raise U.S. interest rates at this week’s meeting.

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Monday, March 19–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly lower overnight. U.S. stock indexes are pointed toward lower openings when the New York day session begins. The specter of a protectionist U.S. trade policy and a rise in U.S. interest rates this week are negatives for equity markets.

There was more turmoil in the Trump administration over the weekend, amid new accusations against President Trump’s administration after an FBI official was fired. However, the marketplace is not reacting much, as the situation has become almost routine.

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April Nymex crude oil futures price action has been choppy recently. Such has formed a bullish symmetrical triangle on the daily bar chart. Symmetrical triangles are continuation patterns. Given that the most recent trend before the pattern developed was up, technical odds favor an upside breakout from the pattern. However, the fundamentals of the crude oil market do not favor the bulls. Increasing U.S. crude oil production in recent months has put a cap on crude oil prices. Stay tuned!

Friday, March 16–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mixed to mostly firmer overnight. U.S. stock indexes are pointed toward near steady openings when the New York day session begins.

In overnight news, the Euro zone reported its consumer inflation rate in February was up 1.1%, year-on-year. That was slightly below expectations of a 1.2% rise. This is another report showing non-problematic inflation in the European Union. In fact, the European Central Bank would like to see an annual inflation rate of around 2.0%.

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Thursday, March 15–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

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

Reports overnight said the Trump administration is set to soon unveil more trade restrictions on China, after the U.S. has concluded China has been unfairly coercing U.S. firms to transfer their technology to China for years. This could become a major element in the world marketplace if the two largest world economies engage in a tit-for-tat trade war.

The key “outside markets” on Thursday morning see the U.S. dollar index slightly firmer. Trading in the USDX has been choppy and sideways recently. Meantime, Nymex crude oil prices are also slightly higher. The International Energy Agency said Wednesday that increasing world oil demand will offset the rise in U.S. shale-oil production, to keep the world supply and demand situation in balance.

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June U.S. Treasury bond futures prices have been trending gently higher the past few weeks, but a longer-term downtrend line is also in place. One trend line will be broken very soon, with the remaining trend line then suggesting the path of least resistance for price direction in the near term. Stay tuned!