Daily Morning Report

Thursday, February 22–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

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

The marketplace has mostly digested Wednesday afternoon’s FOMC minutes that said stronger-than-expected U.S. economic growth in recent weeks is keeping the Federal Reserve on pace to keep gradually raising U.S. interest rates. The minutes prompted choppy trading in the stock and currency markets, and pushed U.S. Treasury yields up. The FOMC minutes contained elements that could be deemed as both hawkish and dovish on U.S. monetary policy.

The key outside markets on Thursday morning see the U.S. dollar index slightly up. Meantime, Nymex crude oil prices are weaker and trading just above $61.00 a barrel. Oil traders are awaiting today’s weekly U.S. oil stocks report.

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Wednesday, February 21–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

Global stock markets were mostly lower overnight. U.S. stock indexes are pointed toward slightly lower openings when the New York day session begins. Volatility in the U.S. stock market picked up Tuesday, and traders are wondering if such will continue today.

The highlight of the trading week will be the release today of the minutes of the last FOMC meeting of the Federal Reserve. The minutes are due out at 2:00 p.m. eastern time. Past FOMC minutes releases have been markets-movers. Keep in mind the last FOMC meeting occurred before the big increase in volatility in the stock markets.

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It’s been quite some time since all three major grain futures markets have been in near-term price uptrends, but such is the case at present. After being beaten down for months, corn, soybeans and wheat bulls are enjoying success. I look for the grain markets to continue to work sideways to higher until at least mid-summer, with weather market scares having the potential to really spike prices. Already early this year, dry and hot weather in Argentina has worked to boost corn and soybean futures prices. Stay tuned!

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

OVERNIGHT DEVELOPMENTS

Global stock markets were mostly lower overnight. U.S. stock indexes are pointed toward solidly lower openings when the New York day session begins. U.S. and China markets were closed Monday for holidays. Rising world government bond yields are prompting more selling pressure in equities early this week. Tuesday is setting up to be another volatile day in the U.S. stock market.

Gold prices are solidly lower early today. Bitcoin prices are sharply higher today and are continuing a solid rebound from the recent low.

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

OVERNIGHT DEVELOPMENTS

Global stock markets were mostly higher overnight. U.S. stock indexes are pointed toward firmer openings when the New York day session begins. The U.S. stock indexes have now regained all or most of last week’s strong losses.

China and other Asian markets were closed Friday for the Lunar New Year holiday.

The key outside markets on Friday morning see the U.S. dollar index firmer on a tepid rebound from this week’s strong selling pressure. Meantime, Nymex crude oil prices are near steady and trading around $61.50 a barrel.

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Some market watchers were scratching their heads at the big upside price moves in gold and silver markets Wednesday. What was the main driving force for the strong prices gains? Was it the depreciation of the U.S. dollar index this week? Was it a re-examination of the U.S. consumer price index report that may not be as indicative of problematic inflation as initially thought? Or, was it a high-volatility day in the U.S. stock indexes Wednesday that rekindled notions the stock market still has some rough days ahead, which produced some safe-haven demand for gold? Likely, it was all of the above factors that contributed in varying degrees to the rally in the precious metals markets today. The surprising gains in gold and silver triggered pre-placed buy stop orders in their futures markets, which sent prices even higher during the trading session. Also, the weak-handed shorts in the futures markets were forced to cover their bets Wednesday, pushing prices still higher. What’s more important is where gold and silver prices are headed from here. With Wednesday’s infusion of needed technical strength in the metals, more gains are likely in the near term, if not longer. Gold’s next upside near-term target is the January high of $1,370.50. Gold’s next longer-term upside price objective is the 2016 high of $1,377.50.  Silver’s next upside technical target is the January high of $17.555. Silver’s longer-term upside objective is $18.64. All of these price targets are now within striking distance in the coming days, or few weeks. Stay tuned!