Daily Morning Report

Thursday, September 7–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

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

Gold prices are firmer in pre-U.S.-day-session trading. The gold bulls remain in firm technical control, to suggest more sideways-to-higher price action in the near term.

The major economic data point of the week is Thursday’s European Central Bank monetary policy meeting, including a press conference from ECB President Mario Draghi after the meeting. Traders and investors are wondering if the ECB will announce a scaling back of its years-long bond-buying program, called quantitative easing. However, most do not expect the ECB to make any monetary policy changes at this meeting. However, Draghi could provide clues on the matter at his press conference. The Euro currency could become volatile in FOREX trading, in the wake of the ECB meeting and Draghi’s press conference.

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Wednesday, September 6–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly weaker overnight, on a bevy of concerns in the marketplace. The historically turbulent months of September and October for equities are starting out in just such a manner. A recent spate of weaker-than-expected economic data coming out of the U.S. and European Union have many thinking their central banks will back off on tightening their monetary policies any time soon. Also, Hurricane Irma is bearing down on the Caribbean and later on this week is likely to hit Florida. Irma is the strongest hurricane in recorded history. And then there’s the ongoing North Korea-U.S. crisis that appears to be getting worse. All of the above have stock market investors and traders in a risk-averse mood. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins.

Financial stocks around the world were under pressure from dovish comments from U.S. Federal Reserve Governor Lael Brainard, who said Tuesday the Fed should wait until annual inflation hits 2.0% before raising interest rates again.

Gold prices are near steady as the safe-haven metal pauses after scoring an 11-month high on Tuesday. Gold bulls are in firm technical control.

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The safe-haven gold market is at a nearly one-year high on safe-haven demand amid the U.S.-North Korea stand-off. Also, bullish charts continue to inspire technically based buying. There are no early clues that the gold market is near a top, which means the path of least resistance for prices will remain sideways-to-higher, until there is a bearish near-term technical clue that develops. Stay tuned!–Jim

Tuesday, September 5–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mixed overnight. Asian stocks were mostly lower and European stocks were mostly higher overnight as investors and traders around the world have had two days to digest the latest North Korea nuclear bomb test, which is reported to be the biggest bomb yet. The U.S. says North Korea is “begging for war” as this major geopolitical matter is ratcheted up yet another notch. U.S. stock indexes are pointed toward weaker openings when the New York day session begins. U.S. traders are seeing their first day back at work Tuesday, following the Labor Day holiday weekend.

Gold prices are higher and hit a 10-month high overnight, on safe-haven demand amid the North Korea crisis.

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Friday, September 1–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly higher again overnight as investor risk appetite quickly returned to the world marketplace after North Korea fired a missile over Japan on Tuesday. U.S. stock indexes are pointed toward firmer openings when the New York day session begins. U.S. stock indexes are at or close to record highs.

Gold prices are slightly lower on a corrective pullback from good gains posted Thursday, in which prices closed at a technically bullish monthly high close.

Traders and investors are awaiting the major U.S. data point of the week and arguably of the month: Friday morning’s employment situation report for August from the Labor Department. The non-farm jobs number is forecast to come in at up around 180,000. However, Wednesday’s higher-than-expected ADP jobs number has many thinking Friday’s employment report will be a miss to the upside. The wage-growth component of the jobs report will also be an important number. Look for many markets to become more active in the immediate aftermath of the jobs report, especially if it’s a miss from market expectations.

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The e-mini S&P futures bulls are having a good week and have regained upside technical momentum, to suggest at least a challenge of the contract and record high scored in early August. As has been the case in recent months, the U.S. stock index bulls have proven to be very resilient. The bulls be warned, however, that the historically turbulent months of September and October lie just ahead. Stay tuned!–Jim