Daily Morning Report

Friday, August 18–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly lower in overnight trading. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins. The marketplace is reacting with keener risk aversion to an ISIS terror attack in Barcelona, Spain Thursday, in which a van rain into a crowd and killed 13 people. A second attack in another town in Spain was thwarted by police, who killed five terrorists.

Gold prices are higher and hit a 2.5-month high above $1,300 an ounce on some more safe-haven demand and technical buying.

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Thursday, August 17–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mixed in overnight trading Thursday. U.S. stock indexes are pointed toward weaker openings when the New York day session begins. Still, equities bulls are having the better week. There has been a perceived de-escalation in the U.S. and North Korea stand-off regarding its nuclear missiles, which has boosted trader and investor risk appetites. However, this matter will likely be on the front burner of the marketplace soon.

Gold prices are moderately higher in the aftermath of Wednesday afternoon’s FOMC minutes that showed FOMC members split of the prospects of further Federal Reserve interest rate increases in the coming months. Very low inflation readings from major economies around the world, including the U.S., are preventing the Fed from raising interest rates as soon as it would like.

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Wednesday, August 16–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly higher again Wednesday. U.S. stock indexes are also pointed toward higher openings when the New York day session begins. Equities bulls are having a very good week so far, as there has been a perceived de-escalation in the U.S. and North Korea stand-off regarding its nuclear missiles.

Reports said the U.S. and South Korean militaries will hold joint exercises next week, which are likely to again rile up North Korean leader Kim Jong Un. The U.S.-North Korea matter is not going to go away any time soon. Any flare-up in tensions is likely to see another rush by investors and traders into gold and U.S. Treasuries.

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The U.S. stock index bulls have made a strong recovery this week, after last week’s steep slide that produced some temporary chart damage. Last week’s bearish “key reversal” down on the daily chart for the September e-mini S&P futures has been rendered moot by this week’s strong gains. U.S. stock index bulls have the overall near-term technical advantage. However, new highs will have to be scored give the bulls the solid power to suggest another leg up in prices in the coming weeks. Remember that the historically bearish months of September and October are right around the corner. Stay tuned!–Jim

Tuesday, August 15–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly higher again Tuesday, on a further apparent de-escalation of the U.S. and North Korea stand-off regarding its nuclear missiles. North Korean news reports Tuesday said President Kim Jong Un has decided not to fire missiles at Guam. The U.S. secretary of defense and secretary of state, as well as other Trump administration officials, in recent days said they are trying to achieve denuclearization of North Korea through diplomacy.

The safe-haven assets gold and U.S. Treasury bonds are seeing price pressure from the better risk appetite in the world marketplace so far this week. Gold prices are down about $11.00 an ounce in pre-U.S.-session trading Tuesday.

However, don’t expect the U.S.-North Korea confrontation to just fade away. It’s likely this situation will flare up again, and likely sooner rather than later.

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The weather market in the U.S. Corn Belt fizzled out a while back and then last Thursday’s USDA supply and demand report was a bearish surprise. The grain market bears are back in firm near-term technical control of the market, amid price downtrends. See on the daily chart for December corn futures that prices hit an 11-month low Monday. The next downside objective for the powerful bears is the August 2016 low of $3.58 1/2. Stay tuned!–Jim