Daily Morning Report

Friday, October 27–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly firmer overnight, on generally upbeat corporate earnings that were reported late this week. U.S. stock indexes are pointed toward firmer openings when the New York day session begins.

Gold prices are slightly lower and hit a three-week low overnight, amid a lack of risk aversion in the marketplace. Gold and silver bears have downside technical momentum.

The currency markets are still feeling the effects of Thursday’s European Central Bank monetary policy meeting, which resulted in no interest rate changes from the ECB. However, the central bank said it is reducing its monthly bond-buying program amount by half, but is extending the timeframe of the bond buying. ECB Chief Mario Draghi’s press conference sounded a dovish tone on monetary policy, which has pressured the Euro currency to a three-month low Friday morning. Meantime, the U.S. dollar index pushed to a three-month high Friday. The marketplace is a bit unsettled by the appearance of U.S. Federal Reserve monetary policy and ECB monetary policy that are diverging.

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Thursday, October 26–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mixed in quieter trading overnight. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins. Stock markets and other financial markets are on hold as traders and investors are awaiting the key markets event of the week: Thursday’s European Central Bank regular monetary policy meeting. Many expect the ECB to announce more details on the winding down of its big bond-buying program.

The Euro currency could see volatile price action in the immediate aftermath of the ECB meeting, including ECB Chief Mario Draghi’s press conference.

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December corn futures have been trading in a choppy and sideways range at lower levels for weeks. This is likely “basing” that occurs when a market bottoms out and then trades sideways, before embarking on a price uptrend. I look for corn prices to trade sideways to higher into the end of the year, and even beyond that. Stay tuned!–Jim

Wednesday, October 25–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly weaker in overnight trading, pressured a bit by some downbeat corporate earnings reports. Japan’s Nikkei stock index saw its record-setting 16-session winning streak halted Wednesday.
U.S. stock indexes are pointed toward modestly lower openings when the New York day session begins.

Gold and silver prices are lower and hit a three-week low overnight. The bears have downside technical momentum in these two precious metals markets.

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Tuesday, October 24–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mixed overnight. U.S. stock indexes are pointed toward firmer openings when the New York day session begins, after a rare sell off that occurred on Monday. Global equities traders are focused on corporate earnings reports this week.

Gold prices are slightly lower in pre-U.S.-session trading. The bears have some technical momentum on their side early this week.

In overnight news, the Euro zone Markit purchasing managers’ survey (PMI) came in at 55.9 in October versus 56.7 in September. A reading above 50.0 signals growth in the sector. The October decline from September was more than expected and this report falls into the camp of the European Central Bank doves, who want to see the ECB hold off on tightening its monetary policy.

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December U.S. Treasury bond futures prices dropped sharply Friday and closed at a bearish weekly low close. Bears still have some downside technical momentum early this week, to suggest bulls will continue to stuggle in the near term. Fundamentally, the specter of a new U.S. Federal Reserve Chairman that will be more hawkish on U.S. monetary policy than present Chair Yellen, is also a negative for the U.S. Treasury markets. Stay tuned!–Jim