Daily Morning Report

Tuesday, December 5–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

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

In overnight news, Australia’s central bank kept its monetary policy unchanged at its regular monetary policy meeting.

The key “outside markets” Tuesday morning see the U.S. dollar index slightly lower in early U.S. trading. Nymex crude oil futures prices are also weaker early today.

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The grain markets are seeing some new buying interest due in part to rallying world stock markets that are at or near record or multi-year highs. Traders reckon that rallying stock markets mean better world economic growth, which means more demand for grains. See on the daily bar chart for March corn futures that prices last Friday closed at a bullish weekly high close and on Monday hit a three-week high. It’s my bias that the grain markets have put in, or are very close to putting in, major market bottoms. Stay tuned!–Jim

Monday, December 4–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly higher overnight. U.S. stock indexes are pointed solidly higher openings when the New York day session begins. Major U.S. stock indexes are at or near record highs.

Risk appetite is keener to start the trading week after the U.S. Senate very early Saturday morning passed a tax-reform bill, which many believe will free up the U.S. economy for stronger growth in the coming months and years. Now, the House of Representatives and Senate must hammer out a final tax bill.

The risk-on trading mentality in the marketplace is bearish for safe-haven assets like gold and U.S. Treasuries.

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Friday, December 1–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, on corrective, profit-taking pullbacks after the S&P 500 and Dow soared to record highs Thursday.

Investors and traders are awaiting the U.S. Senate vote, likely today, on a tax-cut plan. The consensus is now that the bill will pass the Senate and eventually become law. That’s been a bullish element for the U.S. stock market late this week.

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Nymex crude oil futures remain in a solid price uptrend, even though the market has paused this week. Bulls remain in firm overall near-term technical control and there have been no near-term chart developments that would suggest prices have hit a top. However, it’s still my bias, based upon supply and demand fundamentals in the world at present, that oil prices cannot sustain levels much above $60.00 a barrel, if even that. Stay tuned!–Jim

Thursday, November 30–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mixed overnight, but European stock indexes were mostly up. U.S. stock indexes are set to open higher and at fresh record highs when the New York day session begins.

In overnight news, the Eurozone reported its consumer price index up 1.5% in November from up 1.4% in October. The October jobless rate came in at 8.8% from 8.9% in September. The November jobless rate was the lowest since January of 2009. Today’s Euro zone data falls into the camp of the monetary policy hawks, who want the European Central Bank to raise interest rate soon.

Investors and traders are awaiting the end result of a U.S. tax-cut plan being pushed through Congress. The Senate is likely to vote on the tax legislation soon. It is not a clear-cut consensus that this bill will pass the Senate.

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