Daily Morning Report

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!

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

OVERNIGHT DEVELOPMENTS

Global stock markets were mostly higher overnight and mostly overlooked the volatility seen in the U.S. stock market Wednesday. U.S. stock indexes are pointed toward firmer openings when the New York day session begins.

China and South Korean markets were closed Thursday for the Lunar New Year holiday.

Following the hotter-than-expected U.S. consumer price index report on Wednesday that initially roiled the marketplace, traders and investors today will get the U.S. producer price index report for January. The January PPI is forecast to come in at up 0.4% from December, and up 0.2% excluding food and energy.

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Wednesday, February 14–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

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

The big U.S. economic report of the week will be Wednesday’s consumer price index report. CPI for January is forecast to come in at up 0.4% from December and up 1.9% year-on-year. The so-called “core” inflation rate is forecast to come in at up 1.7%, year-on-year. How the U.S. dollar index reacts to the CPI will be key for the marketplace today.

In overnight news, the Euro zone reported its fourth-quarter gross domestic product at up 0.6% from the third quarter and up 2.7%, year-on-year.

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The U.S. Treasury bond and Treasury note markets have recently hit contract lows in price (rising yields). The downward treks in Treasury prices show no early clues of bottoming. That suggests rising U.S. interest rates and rising inflation. After a quarter-century bull market run in U.S. Treasury prices, it appears that bull has run out of gas. Stay tuned!–Jim