Daily Morning Report

Friday, September 29–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

Global stock markets were mostly firmer in quieter trading overnight. A lack of major news developments in the marketplace late this week is keeping equities subdued. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins.

Gold prices are firmer today on short covering in the futures market and bargain hunting in the cash market, following this week’s selling pressure.

Friday is the last trading day of the month and of the quarter, which makes it an extra special day from a charting perspective. Monthly (or quarterly) high or low closes on the last trading day of the month (or quarter) are very technically significant.

Continue Reading

Thursday, September 28–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly firmer overnight, on hopes that a U.S. corporate tax-reform plan will boost economic growth not only in the U.S. but around the globe. U.S. stock indexes are pointed toward slightly lower openings when the New York day session begins.

Gold prices are slightly lower and hit a six-week low overnight. Better risk appetite in the marketplace this week, as well as a rallying U.S. dollar index, are bearish for the safe-haven metal.

World bond market yields are on the rise this week, on ideas that better world economic growth will prompt the major central banks to become less accommodative on their monetary policies. Odds are rising (now about 75%) that the Federal Reserve will raise U.S. interest rates in December.

Continue Reading

The U.S. dollar index is a basket of six major world currencies weighted against the greenback. See on the daily bar chart that the USDX hit a five-week high at mid-week. Also, a bullish head-and-shoulders bottom reversal pattern has formed on the daily chart, to suggest the USDX has put in a market low. The greenback bears are having a very good week, but that’s been a bearish element for many raw commodity markets, which are priced in U.S. dollars on the world markets. Stay tuned!–Jim

Wednesday, September 27–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly firmer overnight. U.S. stock indexes are also pointed toward modestly higher openings when the New York day session begins. Federal Reserve Chair Janet Yellen delivered a speech Tuesday that sounded an arguably hawkish tone on U.S. monetary policy, and an upbeat tone on the U.S. economy. The world equity markets took this as a positive sign that a strengthening U.S. economy and rising inflation will help the other major industrialized countries’ economic growth prospects, as well as reignite some wanted inflation.

Gold prices are lower in pre-U.S.-day-session trading Wednesday. The surging U.S. dollar this week is a bearish element for the precious metals markets, as well as other raw commodity markets.

Continue Reading

Tuesday, September 26–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly weaker overnight, as some risk aversion is back in the marketplace following Monday’s latest salvo from North Korea, in which the isolated nation said the U.S. had declared war on it. North Korea also said it had the right to shoot down U.S. warplanes outside of its air space. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins.

However, traders and investors are getting somewhat desensitized to the war of words between the U.S. and North Korea.

Continue Reading

The corn futures market has been trading sideways at lower levels for several weeks. This could be “basing” action that puts in market bottoms. See on the daily bar chart for December corn that a downtrend line is in jeopardy of being negated. While the supply and demand fundamentals in the corn market cannot be considered as bullish, it’s also very likely the bearish fundamentals have already been factored into the price of corn. It is my bias the corn market has put in a market bottom. However, the bulls need to push prices above solid chart resistance at $3.62 to suggest that a price uptrend can be sustained. Stay tuned!–Jim