Daily Morning Report

Monday, July 31–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

Global stock markets were mixed overnight. U.S. stock indexes are pointed toward firmer openings when the New York day session begins.

Gold prices are slightly lower in pre-U.S.-session trading after scoring a six-week high overnight. The gold bulls still have good upside near-term technical momentum, amid a steep price uptrend in place on the daily bar chart.

The weekend news that North Korea launched another ballistic test missile, which experts say could now reach well into the U.S. mainland, is not having a major impact on world markets. However, this matter could well be the next geopolitical flashpoint, as the U.S. says it will not allow North Korea to have such a capability.

Russia over the weekend announced it is expelling 750 U.S. diplomats in retaliation for U.S.-imposed sanctions on Russia. That news has no impact on markets, but underscores frayed relations between the two super powers.

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Friday, July 28–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

Global stock markets were mostly weaker overnight. U.S. stock indexes are also pointed to lower openings when the New York day session begins. The near-term technical postures for the U.S. stock indexes are starting to deteriorate. Bearish weekly low closes on Friday would begin to suggest the indexes have put in near-term tops.

Gold prices are trading slightly lower in pre-U.S.-session action, on a mild corrective pullback from good gains Thursday that pushed the yellow metal to a six-week high.

The marketplace is awaiting the U.S. second-quarter advance gross domestic product (GDP) report, due out at 8:30 a.m. EDT Friday morning. Forecasts are calling for GDP growth of 2.7% in 2Q, year-on-year, versus the first-quarter reading of up 1.4%.

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The gold market hit a six-week high late this week and the bulls are back in business. More sideways-to-higher price action is likely in the near term. Stay tuned!–Jim

Thursday, July 27–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

Global stock markets were mostly firmer overnight in the wake of a U.S. Federal Reserve meeting that produced a statement most of the markets deemed as leaning to the dovish side of U.S. monetary policy. Recent corporate earnings reports have also been mostly upbeat. U.S. stock indexes are pointed toward higher and record high openings when the New York day session begins.

Gold is posting solid gains Thursday in the wake of the dovish Fed statement that pushed the U.S. dollar index to a 13-month low. Reports overnight said India is moving to make “paper” gold (such as sovereign gold bonds) more attractive to its domestic investors, in order to reduce demand for actual gold bullion.

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Wednesday, July 26–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

World stock markets were mostly firmer in subdued trading overnight, as the marketplace awaits today’s FOMC meeting conclusion. U.S. stock indexes are slightly higher just ahead of the New York day session.

Gold prices are moderately lower today on more profit-taking from the shorter-term futures traders, after recent price gains.

Traders and investors are awaiting the conclusion of the Federal Reserve’s Open Market Committee meeting (FOMC) that began Tuesday morning and ends early this afternoon with a statement. No changes in U.S. monetary policy are expected. However, the Fed could indicate the timing of reducing its big balance sheet of U.S. securities. The tone of the FOMC statement will also be important for markets. Just recently Federal Reserve Chair Janet Yellen has sounded a more dovish tone on U.S. monetary policy.

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The weather in the U.S. has cooled off a bit and so has the corn futures market. Has the serious weather market in the grains in July run its course? Some think so. However, price action in the corn and soybean markets the rest of this week will help to determine if the weather market dies and volatility settles down. Remember that weather forecasts in the Corn Belt in the summertime can flip-flop. Stay tuned!–Jim