Daily Morning Report

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

Thursday, October 19–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly lower overnight. U.S. stock indexes are pointed toward solidly lower openings when the New York day session begins. The bourses are seeing some profit taking after recently hitting record or multi-year highs. Today is the 30th anniversary of the “Black Monday” record-setting crash of the U.S. stock market.

Gold and silver prices are firmer in pre-U.S.-session trading, on a bit of safe-haven demand amid the drop in world stock markets today.

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Wednesday, October 18–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly firmer overnight, but in quieter trading. U.S. stock indexes are pointed toward firmer openings when the New York day session begins. The U.S. stock indexes are at record highs this week. Hopes for tax cuts in the U.S. are helping to lift the U.S. stock market.

Gold prices are weaker again in pre-U.S.-day-session trading. The bears have gained some downside technical momentum this week. A higher U.S. dollar index this week is also working against the gold and silver bulls.

The geopolitical scene has been quieter the past couple weeks and that’s allowed world trader/investor risk appetite to uptick, which is bullish for the stock markets and bearish for safe-haven gold.

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The U.S. dollar index is a basket of six major world currencies weighted against the greenback. See on the daily bar chart for December USDX futures that price action has turned choppy just recently, after the index had rallied smartly from the September low. It still appears the dollar index has put in a market bottom, but it will take a move in prices above chart resistance at the October high of 94.100 to provide the bulls with power to suggest the price uptrend can be resumed. Stay tuned!–Jim