Daily Morning Report

Tuesday, August 29–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

News that North Korea fired a ballistic missile over Japan has rattled world markets. Global stock indexes are lower and safe-haven assets like gold and U.S. Treasuries are higher. U.S. stock indexes are pointed toward lower openings when the New York day session begins.

Gold prices hit an 11-month high overnight, as a combination of safe-haven demand and technical buying are boosting the yellow metal.

The Euro currency hit another 2.5-year high overnight, while the Japanese yen also surged on safe-haven demand from Asian traders and investors. The U.S. dollar index dropped to another 15-month low. The greenback is being further hobbled by the hurricane damage in Texas, which is likely to reduce U.S. GDP in the third quarter.

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Monday, August 28–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly lower to start the trading week. Traders and investors were disappointed that last week’s Jackson Hole, Wyoming central bankers meeting did not offer any new guidance on the monetary policies of the world’s major central banks. U.K. markets are closed Monday for a holiday. U.S. stock indexes are pointed toward weaker openings when the New York day session begins.

Gold prices are higher and have pushed above the key $1,300.00 level in overnight trading. A slumping U.S. dollar index is supporting the gold market bulls.

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The U.S. Treasury bond futures market has been trending higher since early July and late this week hit a two-month high. The bond market bulls are in near-term technical control, which means the path of least resistance for prices will remain sideway to higher in the near term. Also, any geopolitical flare-ups will support flight-to-quality demand for U.S. Treasuries. Stay tuned!–Jim

Thursday, August 24–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly firmer in quieter trading Thursday. U.S. stock indexes are also pointed toward modestly higher openings when the New York day session begins.

Gold prices are weaker, amid bearish “outside markets” today—firmer stock markets and U.S. dollar index, and weaker crude oil prices.

Stock, currency and financial markets have been quieter this week, ahead of the highly anticipated annual world central bankers meeting in Jackson Hole, Wyoming, that begins today. Featured speakers at the three-day event include Federal Reserve Chair Janet Yellen and European Central Bank President Mario Draghi. Traders and investors will closely examine the Jackson Hole speeches for any clues on future monetary policy moves by the world’s major central banks. There are ideas the central bankers will mention very low inflation, which could be extrapolated to mean keeping very accommodative monetary policies in place longer. Draghi’s remarks are likely to impact the Euro currency, especially after the ECB has recently expressed a bit of concern about the appreciation of the Euro. In recent years the Jackson Hole central bankers confab has significantly moved the markets.

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Wednesday, August 23–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly weaker Wednesday. U.S. stock indexes are also pointed toward lower openings when the New York day session begins. World stock markets are having a tough month of August, heading into the historically even tougher months of September and October.

Gold prices are slightly higher in pre-U.S.-session trading. Gold prices are in a near-term uptrend, but struggle when prices approach the key resistance level of $1,300.00.

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The Nymex crude oil futures market is presently trapped in a choppy trading range, bound by stiff overhead resistance at $50.00 a barrel and by solid support at $45.00. Look for price action in crude oil to remain choppy and sideways for at least the near term. Stay tuned!–Jim