Daily Morning Report

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.

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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

Monday, September 25–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mixed in overnight trading. The German elections held over the weekend saw Chancellor Angela Merkel secure a fourth term. However, voters did make a shift to the right, which could make it more difficult for Merkel to form a coalition. The elections had little impact on world markets. U.S. stock indexes are pointed toward slightly lower openings when the New York day session begins.

Gold prices are trading near unchanged. Silver prices are also trading near steady. The firmer U.S. dollar index Monday is a daily bearish element working against the precious metals markets.

Focus this week is on central bankers speeches. European Central Bank President Mario Draghi speaks Monday and Federal Reserve Chair Janet Yellen delivers a speech Tuesday. Other Federal Reserve officials will also give speeches throughout the week.

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Friday, September 22–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World equity markets were mostly weaker overnight as risk aversion has quickly returned to the marketplace ahead of the weekend. North Korea has threatened to detonate a huge hydrogen bomb over the Pacific Ocean. “Rocketman” Kim Jong Un has vowed to use “hard-line countermeasures” in response to President Trump’s threat earlier this week to destroy North Korea. U.S. stock indexes are also pointed toward weaker openings when the New York day session begins.

Gold prices are showing modest gains on renewed safe-haven demand, some bargain hunting from recent losses, and on short covering in the futures market. Silver prices are also slightly up, following gold.

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The Nymex crude oil futures market has just hit a four-month high amid the recent rally. The bulls have gained the near-term technical advantage. However, with crude prices now above $50.00 a barrel, continuing the fledging uptrend will become much more difficult. The next upside target for the oil market bulls is the May high of $52.62. Stay tuned!–Jim

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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