Daily Morning Report

Tuesday, January 16–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly higher overnight, boosted by increasing optimism on global economic growth. Along with that specter come tighter monetary policies from the world’s major central banks. U.S. stock indexes are pointed toward solidly higher openings and new record highs when the New York day session begins.

Gold prices are firmer and hit a four-month high overnight, while Bitcoin prices are plunging again early this week and hit a four-week low overnight.

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February Comex gold futures surged to a four-month high Friday. Prices are in a steep uptrend on the daily bar chart and the bulls have the technical power to suggest more upside action in the near term. A weakening U.S. dollar index and rallying Euro currency are working to boost the yellow metal. Stay tuned!–Jim

Friday, January 12–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly higher overnight. News that the German lawmakers have formed a coalition government worked to lift the Euro currency to a four-year high against the U.S. dollar, and also boosted the European stock markets. U.S. stock indexes are pointed toward firmer openings and new record highs when the New York day session begins.

Gold prices hit a four-month high overnight, on technical buying and on currency moves that included a rallying Euro and a weakening U.S. dollar.

The key outside markets on Friday morning see the U.S. dollar index solidly lower and at a 3.5-month low. The greenback bears have the solid overall near-term technical advantage, to suggest more pressure in the near term.

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Thursday, January 11–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mixed overnight, as a rout in world government bond markets stabilized Thursday. The Chinese government reportedly denied reports out Wednesday that it would scale back its purchases of U.S. Treasury securities. U.S. stock indexes are pointed toward firmer openings when the New York day session begins.

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March U.S. T-Bond futures have sunk to a contract low in rapid fashion. There have been recent prognostications from noted financial market analysts that the long-term bull market runs in U.S. Treasuries are over. Longer-term technical damage has been inflicted on T-Bond and T-Note charts. This suggests rising interest rates and rising inflation. While the tighter monetary policies that generally come with rising inflation have been bearish for the commodity markets, per recent history, longer-term history actually shows that hard assets benefit from rising inflation. Times of problematic inflation see the investing public generally opt for hard assets over paper assets. The next shoe to drop in this scenario of rising inflation will be a major top being put in the U.S. stock market. Stay tuned!–Jim

Wednesday, January 10–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly lower in overnight dealings. U.S. stock indexes are pointed toward lower openings when the New York day session begins. U.S. stock indexes hit record highs on Tuesday and some profit-taking pressure is not unexpected.

The feature in the marketplace Wednesday is rising world government bond yields. This has helped to pressure global stock markets, while boosting safe-haven gold and silver prices.

There have been recent prognostications from noted financial market analysts that the long-term bull market runs in U.S. Treasuries are over. Longer-term technical damage has been inflicted on T-Bond and T-Note charts. This suggests rising interest rates and rising inflation. While the tighter monetary policies that generally come with rising inflation have been bearish for the commodity markets, per recent history, longer-term history actually shows that hard assets benefit from rising inflation. Times of problematic inflation see the investing public generally opt for hard assets over paper assets. The next shoe to drop in this scenario of rising inflation will be a major top being put in the U.S. stock market.

Continue Reading