Daily Morning Report

Tuesday, January 30–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly weaker overnight. U.S. stock indexes are pointed toward lower openings when the New York day session begins. The equities markets worldwide are a bit worried about rising bond yields. The U.S. 10-year note rose to a more-than-three-year high yield on Monday.

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. Those numbers were in line with market expectations.

This is a busy events week for the marketplace. Tuesday evening President Trump delivers his state-of-the-union speech. The Federal Open Market Committee (FOMC) meets Tuesday and Wednesday, which will be Fed Chair Janet Yellen’s last meeting. And on Friday the monthly U.S. employment situation report from the Labor Department is due out.

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Monday, January 29–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

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

A feature in the marketplace recently is rising world bond market yields. That means rising interest rates and rising inflationary pressures. U.S. Treasury bonds and notes dropped to new contract lows in prices today.

The U.S. Dollar Index is higher in early U.S. trading Monday, on a corrective rebound after hitting a 3.5-year low last week. Meantime, Nymex crude oil prices are modestly lower and trading above $65.00 a barrel, on a corrective pullback after last week’s more-than-three-year high. A rising U.S. oil rig count, reported Friday, is also bearish for oil.

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Friday, January 26–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

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

The marketplace is still buzzing about comments from U.S.
President Donald Trump that were aired by CNBC on Thursday
afternoon. Trump said he ultimately wants a stronger U.S.
dollar. His remarks briefly roiled the currency markets,
with the U.S. dollar index popping on the news and other
currencies backing way off their daily highs. However, the
dollar-bullish comments from Trump quickly wore off, as
traders reckoned the slide in the dollar has been going on
for some time now and nothing changed from Trump’s
comments.

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Thursday, January 25–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mixed to weaker overnight. U.S. stock indexes are pointed toward firmer openings when the New York day session begins. Big moves in the currency markets Wednesday have thrown a bit of uncertainty at equities traders late this week.

The U.S. Dollar Index is weaker and hit another 3.5-year low overnight. The greenback slump is a bullish element for the raw commodity sector. Most major commodities are priced in U.S. dollars on the world market. The depreciating dollar makes those commodities cheaper to purchase in non-U.S. currency. The Euro currency rose to a more-than-two-year high overnight.

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The soybean futures market has made a solid rebound recently, to suggest a market bottom is in place and that prices can sustain a near-term uptrend. The corn market is also showing early signs of bottoming out. In the coming months, weather market scares during the U.S. planting and growing season will likely occur, to increase daily price volatility and likely prompt quick upside price action. It is my bias that the grain futures markets have put in major bottoms and their present prices are long-term value-buying opportunities. Stay tuned!–Jim