Daily Morning Report

Thursday, September 21–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly higher overnight, in the wake of an upbeat assessment of the U.S. economy from the Federal Reserve on Wednesday. U.S. stock indexes are pointed toward slightly lower openings when the U.S. day session begins. U.S. stock indexes are near their recent record highs.

Gold prices are solidly lower and have hit a three-week low following the hawkish Fed meeting this week and the “risk-on” trader and investor attitudes at present.

World markets are still digesting the Federal Reserve’s Open Market Committee (FOMC) meeting that ended Wednesday with Fed Chair Janet Yellen’s press conference. The Fed did not raise interest rates but did announce that in October it will start reducing its big balance sheet of U.S. securities. The aforementioned moves were not surprising. What is surprising was the Fed’s upbeat tone on the U.S. economy despite two major hurricanes that just hit the U.S. mainland. A December interest rate hike remains on the table and the Fed also wants to raise interest rates three times in 2018.

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Wednesday, September 20–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mixed in subdued trading overnight. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins.

Gold prices are higher in pre-U.S.-session trading, on bargain hunting, short covering and some safe-haven demand following a fiery speech by U.S. President Trump at the U.N. on Tuesday. Trump threatened to completely destroy North Korea.

Markets have paused ahead of the Federal Reserve’s Open Market Committee (FOMC) meeting that began Tuesday morning and ends Wednesday afternoon with a statement. No interest rate changes are expected from the FOMC at this meeting. However, it is expected the Fed will announce it is drawing down its big balance sheet of securities. Fed Chair Janet Yellen will hold a press conference after the FOMC meeting ends. Also, the Federal Reserve will release new economic projections. The inflation projections will be examined very closely.

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The gold market has lost around $50 an ounce from the early-September high, as risk appetite has returned to the marketplace. That’s bearish for safe-haven gold. See on the daily bar chart that December gold futures see an uptrend line that is being challenged. A drop below key chart support at $1,300.00 would give the bears more technical momentum to then suggest that a near-term market top is in place. Stay tuned!–Jim

Tuesday, September 19–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

Global stock markets were mostly weaker overnight. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins. Traders and investors worldwide are a bit cautious ahead of the U.S. Federal Reserve’s monetary policy meeting.

Gold prices are slightly higher in pre-U.S. day session trading, on some tepid short covering following recent selling pressure that pushed prices to a three-week low on Monday.

The markets’ highlight of the week is the Federal Reserve’s Open Market Committee (FOMC) meeting that begins Tuesday morning and ends Wednesday afternoon with a statement. No interest rate changes are expected from the FOMC at this meeting. However, it is expected the Fed will announce it is drawing down its balance sheet of securities. Fed Chair Janet Yellen will hold a press conference after the FOMC meeting ends. Also, the Federal Reserve will release inflation projections that will be closely scrutinized.

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Monday, September 18–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

Global stock markets were mostly firmer overnight. U.S. stock indexes are pointed toward modestly higher openings when the New York day session begins. U.S. stock indexes are near their record highs scored recently.

Gold prices are lower in pre-U.S.-day-session trading. Less risk aversion in the marketplace the past week has dented the safe-haven metal market bulls.

The markets’ highlight of the week is the Federal Reserve’s Open Market Committee (FOMC) meeting that begins Tuesday morning and ends Wednesday afternoon with a statement. No interest rate changes are expected from the FOMC at this meeting. However, it is expected the Fed will announce it is drawing down its balance sheet of securities.

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The grain futures markets got a bearish USDA monthly supply and demand report earlier this week that pressured prices. However, the grains quickly absorbed that bearish news and proceeded to stabilize or even rally the rest of the week. The bulls’ resilience this week is another clue that harvest lows in the grain markets are in place. Stay tuned!–Jim