Daily Morning Report

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

Monday, October 23–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly higher overnight. U.S. stock indexes are also pointed toward firmer openings and new record highs when the New York day session begins.

Gold prices are lower in pre-U.S.-session trading, amid the better risk appetite seen in the marketplace in recent sessions. A firmer U.S. dollar index to start the trading week is also bearish for the gold and silver markets.

In overnight news, the Japanese yen saw pressure against the U.S. dollar after Japanese elections showed Prime Minister Abe and his coalition government with a lop-sided victory in snap elections. World stock markets were buoyed on the news from Japan, as Abe is considered to be more dovish on monetary policy.

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Friday, October 20–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly higher overnight. U.S. stock indexes are also pointed toward firmer openings when the New York day session begins. Global equities were boosted overnight in part on news the U.S. Senate passed a tax-reform blueprint package late Thursday. If the so-called blueprint becomes law it would likely help to stimulate the U.S. economy.

Gold prices are lower in pre-U.S.-session trading amid the keener risk appetite in the marketplace Friday, and on a higher U.S. dollar index. The greenback was also supported on the U.S. Senate passage of the tax-reform blueprint.

The Euro currency is under pressure late this week after the Spanish government got a rebuke from the Caladonia region’s leader on Thursday. Spanish government officials are holding an emergency meeting Saturday to discuss tightening their grip on the Caladonia region.

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Is it just coincidental that the U.S. stock indexes Thursday morning are seeing the largest declines in weeks–on the date of the 30th anniversary of the “Black Monday” stock market crash in 1987? Maybe, but these so-called coincidences sure seem to happen often in markets. On that day I was a reporter/editor for what is now Dow Jones Newswires. It was a crazy day. Markets were halted. Limit price moves occurred in the futures markets, and the Federal Reserve tried to make calming pronouncements to unnerved traders and investors. That Monday broke many traders, who would never return to the markets. And it made some, who happened to be short the stock index futures, rich. Back to today: The December e-mini stock index futures are still in a solid uptrend, but the U.S. stock indexes are in very mature bull markets. Traders and investors appear to be getting complacent, as evidenced by the very low volatility in the markets. Complacency is never a good thing in markets and suggests changes are coming soon. Stay tuned!–Jim