Daily Morning Report

Tuesday, October 17–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly weaker overnight, on corrective pullbacks from recent gains that have put many stock indexes at record or multi-year highs. U.S. stock indexes are narrowly mixed in early U.S. electronic trading. Focus so far this week is on corporate earnings reports.

Gold prices are solidly lower in pre-U.S.-session trading. The geopolitical scene has been quieter the past couple weeks and that’s allowed world risk appetite to uptick, which is bearish for safe-haven gold.

In overnight news, consumer prices in the U.K. hit a five-year high in September, at up 3.0%, year-on-year. That’s well above the Bank of England’s target inflation rate of 2.0% annual inflation. The BOE is expected to raise its interest rate slightly in November.

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Monday, October 16–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly firmer overnight. Many world stock indexes are at or near record or multi-year highs. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins.

Gold prices are modestly up and poked to a three-week high overnight. The yellow metal bulls have the near-term technical advantage, which means the path of least resistance for prices will be sideways to higher in the near term.

The U.S. dollar index is firmer in early U.S. trading Friday. The other key outside market sees Nymex crude oil futures prices higher and trading above $52.00 a barrel. The oil bulls have the overall the near-term technical advantage.

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The soybean market rallied strongly Thursday, in the wake of the monthly USDA supply and demand report that traders deemed bullish. January soybean futures prices are in an uptrend and hit a six-week high Thursday. It’s my bias that soybean and corn prices can work sideways to higher into the end of the year. Stay tuned!–Jim

Friday, October 13–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly firmer overnight. Many world stock indexes are at or near record or multi-year highs. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins.

Stock market traders and investors are focusing on upbeat world economic growth prospects as a bullish tonic. However, they are paying little attention to geopolitics. If the stock market community does begin to pay more attention to geopolitics (which will likely be the case) then look for increased money flows out of equities and into hard assets like gold and other raw commodities.

New on the geopolitical front Friday morning are reports that President Trump is ready to decertify the U.S-Iran nuclear agreement from the Obama administration. Also, reports said Brexit talks between the U.K. and the European Union are not going well.

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Thursday, October 12–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly up overnight. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins. U.S. stock indexes are near this week’s record highs. Japan’s Nikkei stock index hit another 21-year high overnight. Stock market traders are not paying much attention to geopolitics at present, as their risk appetites remain strong.

Gold and silver prices are higher and hit two-week highs in pre-U.S.-session trading. The slumping U.S. dollar this week is a bullish element for the precious metals markets.

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The gold market has seen a good price bounce this week and is now challenging the key psychological resistance level of $1,300. The bulls have more work to to in the near term to suggest a price uptrend can be sustained. If prices continue to rally this week and close out Friday at or near the weekly high, then technical odds would significantly increase that gold prices can trend sideways to higher at least into the end of the year. Stay tuned!–Jim