Daily Morning Report

Wednesday, February 28–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

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

The market place has pretty much digested new Fed Chairman Jerome Powell’s testimony to U.S. lawmakers Tuesday, in which he sounded a more hawkish tone on U.S. monetary policy. Powell intimated there could be four small U.S. rate hikes this year, beginning in March. His comments pressured the metals markets, U.S. Treasuries and the stock market, while supporting the U.S. dollar index.

In overnight news, the Euro zone February consumer price index was reported at up 1.2% from January’s up 1.3%, year-on-year. The February number was in line with market expectations and is the third month in a row of declining inflation in the Euro zone.

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Tuesday, February 27–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mixed to weaker overnight. U.S. stock indexes are pointed to slightly lower openings when the New York day session begins. The U.S. stock index bulls have now regained all of the sharp losses seen in February. Now, the specter of big and bearish double-top reversal patterns exists on the daily bar charts for the U.S. stock indexes, if prices challenge the January highs.

Traders are anxiously awaiting new Federal Reserve Chairman Jerome Powell’s first speech to the U.S. House of Representatives on Capitol Hill at 10:00 a.m. EST on Tuesday. He speaks to the U.S. Senate on Thursday. Traders and investors will parse his every word for clues on the direction and timing of U.S. monetary policy moves.

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The soybean futures market continues to be red hot, with prices scoring a new contract high on Monday. The bulls are in firm near-term technical command amid a serious weather market playing out in Argentina’s soybean-growing regions. However, the bean market is technically overbought on a short-term basis and due for a decent corrective pullback soon. Stay tuned!

Monday, February 26–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly higher overnight. U.S. stock indexes are pointed to higher openings when the New York day session begins. The stock index bulls have some momentum on their side.

Traders are anxiously awaiting new Federal Reserve Chairman Jerome Powell’s first speech to the U.S. House of Representatives on Capitol Hill on Tuesday. He speaks to the U.S. Senate on Thursday.

The key outside markets on Monday morning see the U.S. dollar index lower. Nymex crude oil prices are slightly lower and trading above $63.00 a barrel.

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Friday, February 23–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mixed in quieter trading overnight. U.S. stock indexes are pointed to firmer openings when the New York day session begins.

In overnight news, the Euro zone consumer price index was reported up 0.9% in January from December and up 1.3% year-on-year. The numbers were right in line with market expectations.

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The U.S. Treasury bond and note futures markets have recently hit new contract lows amid solid price downtrends on the daily charts. The bear market is Treasuries is strong and there are no early chart clues the price downtrends (rising yields) will end anytime soon. It is becoming more likely that the quarter-century bull market is U.S. Treasuries is coming to and end. Such also means rising inflationary pressures as well as rising interest rates. Stay tuned!