Daily Morning Report

Friday, February 10–Jim Wyckoff’s morning markets report

Global stock markets were mixed overnight. U.S. stock indexes are pointed toward weaker openings when the New York day session begins. Market analyst Craig Erlam of OANDA said today in an email dispatch: “Equity markets are ending the week on a flat or slightly downbeat note, which has largely reflected the mood all week, really. Central bankers, particularly from the Fed, have been out in force stressing caution over interest rate expectations. And it’s clearly had an impact following that red-hot U.S. jobs report last week. Markets are now pricing in two more hikes from the Fed and possibly one cut later in the year.” A headline in a Barron’s report today reads, “The recession has gone missing.”

In overnight news, reports said Russia plans on cutting its oil production by 500,000 barrels per day, or about 5%, starting in March, in response to Western sanctions. Oil prices rallied on the news. Oil prices are also being supported on notions of stronger economic growth in China this year. Nymex crude oil futures prices are solidly up and trading around $80.00 a barrel.

The key outside markets see the U.S. dollar index firmer. The yield on the benchmark U.S. 10-year Treasury note is presently fetching 3.705%. Treasury yields have climbed following last week’s stronger U.S. jobs report.

U.S. economic data due for release Friday is light and includes the University of Michigan consumer sentiment survey and the monthly Treasury budget statement.

–Jim

U.S. STOCK INDEXES

March S&P 500 e-mini futures: Prices are lower in early U.S. trading and headed for a technically bearish weekly low close. Bulls still have the overall near-term technical advantage. Prices are in a six-week-old uptrend on the daily bar chart, but the uptrend is now in jeopardy. The shorter-term moving averages (4-, 9- and 18-day) are neutral early today. The 4-day moving average is below the 9-day. The 9-day is above the 18-day moving average. Short-term oscillators (RSI, slow stochastics) are bearish early today. Today, shorter-term technical resistance comes in at the overnight high of 4,098.25 and then at 4,150.00. Support for active traders is seen at 4,050.00 and then at 4,000.00. Wyckoff’s Intra-day Market Rating: 4.0

March Nasdaq index futures: Prices are lower in early U.S. trading. Bulls still have the near-term chart advantage as prices are in a four-week-old uptrend on the daily bar chart. However, that price uptrend is now in some jeopardy. Shorter-term moving averages (4- 9-and 18-day) are bullish early today. The 4-day moving average is above the 9-day. The 9-day average is above the 18-day. Short-term oscillators (RSI, slow stochastics) are bearish early today. Shorter-term technical resistance is seen at the overnight high of 12,451.50 and then at Thursday’s high of 12,728.50. On the downside, shorter-term support is seen at 12,200.00 and then at 12,000.00. Wyckoff’s Intra-Day Market Rating: 4.0.

U.S. TREASURY BONDS AND NOTES FUTURES

March U.S. T-Bonds: Prices are lower and hit a four-week low in early U.S. trading. Shorter-term moving averages (4- 9- 18-day) are bearish early today. The 4-day moving average is below the 9-day. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are bearish early today. Shorter-term technical resistance is seen at the overnight high of 128 3/32 and then at 129 even. Shorter-term support lies at 127 even and then at 126 even. Wyckoff’s Intra-Day Market Rating: 4.0

March U.S. T-Notes: Prices are lower and hit a four-week low in early U.S. trading. Shorter-term moving averages (4- 9- 18-day) are bearish early today. The 4-day moving average is even with the 9-day. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are bearish early today. Shorter-term resistance lies at the overnight high of 113.07.0 and then at Friday’s high of 113.26.0. Shorter-term technical support lies at the overnight low of 112.25.0 and then at 112.16.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0

EURO CURRENCY

The March Euro currency futures are lower in early U.S. trading. Bulls still have the overall near-term technical advantage. The shorter-term moving averages for the Euro are bearish early today, as the 4-day is below the 9-day. The 9-day is below the 18-day moving average. Short-term oscillators for the Euro are bearish early today. The Euro currency finds shorter-term technical resistance at this week’s high of 1.0822 and then at 1.0900. Shorter-term support is seen at this week’s low of 1.0691 and then at 1.0650. Wyckoff’s Intra Day Market Rating: 4.0

NYMEX CRUDE OIL

March Nymex crude oil prices are solidly up and hit a two-week high in early U.S. trading. Bulls and bears are back on a level overall near-term technical playing field but the bulls have momentum on their side. The shorter-term moving averages are neutral early today as the 4-day is above the 9-day. The 9-day is below the 18-day moving average. Short-term oscillators (RSI and slow stochastics) are bullish early today. Look for buy stops to reside just above technical resistance at the overnight high of $80.33 and then at $81.00. Look for sell stops just below technical support at $78.00 and then at Thursday’s low of $76.52. Wyckoff’s Intra-Day Market Rating: 6.5

GRAINS

Grain futures prices were mixed but mostly firmer overnight. Not much new recently. Corn and soybean market bulls have the overall near-term technical advantage. Wheat futures bears have the overall chart advantage but there are now technical clues the wheat markets have bottomed out.

IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any traders and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.

Here is what the Commodity Futures Trading Commission

(CFTC) has said about futures trading (and I agree 100%):

1. Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.

Jim Wyckoff

Thursday, February 9–Jim Wyckoff’s morning markets report

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

In overnight news, Sweden’s central bank raised its main interest rate by 0.5%, to 3.0%.

Said broker SP Angel in an email dispatch this morning: “Fed officials, including New York Fed President Williams and Atlanta Fed President Bostic, both called for a higher peak rate following the major upside surprise to U.S. Jobs last Friday. Focus now turns to the U.S. CPI data release next week on Tuesday. Expect a further ease in inflationary data to support risk assets and weigh on the dollar, likely supporting gold. However, if U.S. CPI comes in hotter-than-expected, we expect the both U.S. Treasury yields and the U.S. dollar to rally as markets may potentially reprice their expectations of the Fed terminal rate higher, weighing on non-interest-bearing gold. The market currently expects Fed rate hikes to peak at 5.1% versus their current level of 4.6%, before pivoting around August.”

The key outside markets see the U.S. dollar index lower. The yield on the benchmark U.S. 10-year Treasury note is presently fetching around 3.596%. Meantime, Nymex crude oil futures prices are modestly up and trading around $78.75 a barrel.

U.S. economic data due for release Thursday is light and includes the weekly jobless claims report.

–Jim

U.S. STOCK INDEXES

March S&P 500 e-mini futures: Prices are higher in early U.S. trading. Bulls have the overall near-term technical advantage. Prices are in a six-week-old uptrend on the daily bar chart. The shorter-term moving averages (4-, 9- and 18-day) are bullish early today. The 4-day moving average is above the 9-day. The 9-day is above the 18-day moving average. Short-term oscillators (RSI, slow stochastics) are neutral to bullish early today. Today, shorter-term technical resistance comes in at this week’s high of 4,188.25 and then at the February high of 4,208.50. Support for active traders is seen at the overnight low of 4,128.00 and then at this week’s low of 4,098.25. Wyckoff’s Intra-day Market Rating: 6.0

March Nasdaq index futures: Prices are higher in early U.S. trading. Bulls have the near-term chart advantage as prices are in a four-week-old uptrend on the daily bar chart. Shorter-term moving averages (4- 9-and 18-day) are bullish early today. The 4-day moving average is above the 9-day. The 9-day average is above the 18-day. Short-term oscillators (RSI, slow stochastics) are neutral to bullish early today. Shorter-term technical resistance is seen at this week’s high of 12,818.50 and then at the February high of 12,949.75. On the downside, shorter-term support is seen at this week’s low of 12,455.75 and then at 12,300.00. Wyckoff’s Intra-Day Market Rating: 6.0.

U.S. TREASURY BONDS AND NOTES FUTURES

March U.S. T-Bonds: Prices are higher in early U.S. trading. Shorter-term moving averages (4- 9- 18-day) are bearish early today. The 4-day moving average is below the 9-day. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral to bullish early today. Shorter-term technical resistance is seen at Tuesday’s high of 129 11/32 and then at this week’s high of 130 2/32. Shorter-term support lies at this week’s low of 127 28/32 and then at 127 even. Wyckoff’s Intra-Day Market Rating: 6.0

March U.S. T-Notes: Prices are higher in early U.S. trading. Shorter-term moving averages (4- 9- 18-day) are bearish early today. The 4-day moving average is even with the 9-day. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral early today. Shorter-term resistance lies at Tuesday’s high of 113.28.0 and then at 114.00.0. Shorter-term technical support lies at this week’s low of 113.05.5 and then at 113.00.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 6.0

EURO CURRENCY

The March Euro currency futures are firmer in early U.S. trading. Bulls have the overall near-term technical advantage. The shorter-term moving averages for the Euro are bearish early today, as the 4-day is below the 9-day. The 9-day is below the 18-day moving average. Short-term oscillators for the Euro are neutral to bullish early today. The Euro currency finds shorter-term technical resistance at this week’s high of 1.0822 and then at 1.0900. Shorter-term support is seen at the overnight low of 1.0728 and then at this week’s low of 1.0691. Wyckoff’s Intra Day Market Rating: 6.0

NYMEX CRUDE OIL

March Nymex crude oil prices are slightly up in early U.S. trading. Bears still have the slight overall near-term technical advantage but the bulls have gained momentum this week. The shorter-term moving averages are neutral early today as the 4-day is above the 9-day. The 9-day is below the 18-day moving average. Short-term oscillators (RSI and slow stochastics) are neutral to bullish early today. Look for buy stops to reside just above technical resistance at $79.00 and then at $80.00. Look for sell stops just below technical support at $77.00 and then at $76.00. Wyckoff’s Intra-Day Market Rating: 5.5

GRAINS

Grain futures prices were steady to mixed overnight. Traders are awaiting this morning’s weekly USDA export sales report. Corn and soybean market bulls have the overall near-term technical advantage. Wheat futures bears have the overall chart advantage but there are early technical clues the wheat markets have bottomed out.

IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any traders and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.

Here is what the Commodity Futures Trading Commission

(CFTC) has said about futures trading (and I agree 100%):

1. Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.

Jim Wyckoff

Wednesday, February 8–Jim Wyckoff’s morning markets report

Global stock markets were mixed overnight. U.S. stock indexes are pointed toward weaker openings when the New York day session begins. The marketplace on Tuesday afternoon saw Fed Chairman Powell at a Washington, D.C. economic club meeting reiterate that U.S. inflation has started to come down but has a long way to drop to meet the Fed’s inflation objectives. Powell was pressed on last Friday’s strong jobs report possibly changing Fed policy to more hawkish, but Powell brushed that notion off, at first. However, at the end of his remarks he said more strong U.S. economic data could force the Fed to raise rates more than it expects at present. Stock and financial markets gyrated during and right after his comments but at the end of the day Tuesday, Powell’s remarks were deemed as not surprising and did not have a major, lasting impact on markets.

The key outside markets see the U.S. dollar index weaker. The yield on the benchmark U.S. 10-year Treasury note is presently fetching around 3.6%. Meantime, Nymex crude oil futures prices are up and trading around $78.00 a barrel.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, monthly wholesale trade and the weekly DOE liquid energy stocks report.

–Jim

U.S. STOCK INDEXES

March S&P 500 e-mini futures: Prices are weaker in early U.S. trading. Bulls still have the overall near-term technical advantage. Prices are in a six-week-old uptrend on the daily bar chart. The shorter-term moving averages (4-, 9- and 18-day) are bullish early today. The 4-day moving average is above the 9-day. The 9-day is above the 18-day moving average. Short-term oscillators (RSI, slow stochastics) are neutral to bearish early today. Today, shorter-term technical resistance comes in at this week’s high of 4,188.25 and then at the February high of 4,208.50. Support for active traders is seen at 4,125.00 and then at this week’s low of 4,098.25. Wyckoff’s Intra-day Market Rating: 4.5

March Nasdaq index futures: Prices are a bit weaker in early U.S. trading. Bulls have the near-term chart advantage as prices are in a four-week-old uptrend on the daily bar chart. Shorter-term moving averages (4- 9-and 18-day) are bullish early today. The 4-day moving average is above the 9-day. The 9-day average is above the 18-day. Short-term oscillators (RSI, slow stochastics) are neutral early today. Shorter-term technical resistance is seen at the February high of 12,949.75 and then at 13,000.00. On the downside, shorter-term support is seen at 12,600.00 and then at this week’s low of 12,455.75. Wyckoff’s Intra-Day Market Rating: 4.5.

U.S. TREASURY BONDS AND NOTES FUTURES

March U.S. T-Bonds: Prices are slightly higher in early U.S. trading. Bulls are fading. Shorter-term moving averages (4- 9- 18-day) are bearish early today. The 4-day moving average is below the 9-day. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral early today. Shorter-term technical resistance is seen at Tuesday’s high of 129 11/32 and then at this week’s high of 130 2/32. Shorter-term support lies at this week’s low of 128 5/32 and then at 127 even. Wyckoff’s Intra-Day Market Rating: 5.5

March U.S. T-Notes: Prices are higher in early U.S. trading. Shorter-term moving averages (4- 9- 18-day) are bearish early today. The 4-day moving average is even with the 9-day. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral early today. Shorter-term resistance lies at Tuesday’s high of 113.28.0 and then at 114.00.0. Shorter-term technical support lies at this week’s low of 113.05.5 and then at 113.00.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.5

EURO CURRENCY

The March Euro currency futures are firmer in early U.S. trading. Bulls have the overall near-term technical advantage but have faded. The shorter-term moving averages for the Euro are bearish early today, as the 4-day is below the 9-day. The 9-day is below the 18-day moving average. Short-term oscillators for the Euro are neutral early today. The Euro currency finds shorter-term technical resistance at this week’s high of 1.0822 and then at 1.0900. Shorter-term support is seen at this week’s low of 1.0691 and then at 1.0650. Wyckoff’s Intra Day Market Rating: 5.5

NYMEX CRUDE OIL

March Nymex crude oil prices are up in early U.S. trading. Bears still have the slight overall near-term technical advantage but the bulls have gained momentum this week. The shorter-term moving averages are bearish early today as the 4-day is below the 9-day and 18-day. The 9-day is below the 18-day moving average. Short-term oscillators (RSI and slow stochastics) are bullish early today. Look for buy stops to reside just above technical resistance at $79.00 and then at $80.00. Look for sell stops just below technical support at $77.00 and then at $76.00. Wyckoff’s Intra-Day Market Rating: 6.0

GRAINS

Grain futures prices were firmer overnight. Traders are awaiting Wednesday’s monthly USDA supply and demand report. Corn and soybean market bulls have the overall near-term technical advantage. Wheat futures bears have the overall chart advantage but there are early technical clues the wheat markets have bottomed out.

IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any traders and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.

Here is what the Commodity Futures Trading Commission

(CFTC) has said about futures trading (and I agree 100%):

1. Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.

Jim Wyckoff

Tuesday, February 7–Jim Wyckoff’s morning markets report

Global stock markets were mixed overnight. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins. The focal point of the marketplace today is a speech to an economics club in Washington, D.C. by Fed Chairman Jay Powell. Traders and investors are anxious to see what Powell has to say after last week’s surprisingly strong U.S. jobs report that many believe could force the Fed to remain hawkish on U.S. monetary policy for longer. A Barron’s headline today reads: “Markets may have misread Powell last week.” That story suggests the marketplace focused too much on Powell’s disinflation comments and not enough on Powell’s remarks that more work needs to be done to tame inflation.

The key outside markets see the U.S. dollar index a bit higher on a continued rebound from last week’s nine-month low. The yield on the benchmark U.S. 10-year Treasury note is presently fetching 3.642%. Meantime, Nymex crude oil futures prices are up and trading around $75.50 a barrel.

U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and chain store retail indexes, the international trade report, the IDB/TIPP economic optimism index. President Joe Biden also delivers his State of the Union address Tuesday evening.

–Jim

U.S. STOCK INDEXES

March S&P 500 e-mini futures: Prices are near steady in early U.S. trading. Bulls still have the overall near-term technical advantage. Prices are still in a six-week-old uptrend on the daily bar chart. The shorter-term moving averages (4-, 9- and 18-day) are bullish early today. The 4-day moving average is above the 9-day. The 9-day is above the 18-day moving average. Short-term oscillators (RSI, slow stochastics) are neutral to bearish early today. Today, shorter-term technical resistance comes in at this week’s high of 4,143.00 and then at last Friday’s high of 4,194.00. Support for active traders is seen at 4,100.00 and then at 4,048.50. Wyckoff’s Intra-day Market Rating: 5.0

March Nasdaq index futures: Prices are near steady in early U.S. trading. Bulls have the near-term chart advantage as prices are in a four-week-old uptrend on the daily bar chart. Shorter-term moving averages (4- 9-and 18-day) are bullish early today. The 4-day moving average is above the 9-day. The 9-day average is above the 18-day. Short-term oscillators (RSI, slow stochastics) are neutral to bearish early today. Shorter-term technical resistance is seen at this week’s high of 12,605.00 and then at 12,800.00. On the downside, shorter-term support is seen at 12,400.00 and then at 12,200.00. Wyckoff’s Intra-Day Market Rating: 5.0.

U.S. TREASURY BONDS AND NOTES FUTURES

March U.S. T-Bonds: Prices are slightly lower in early U.S. trading. Bulls are fading. Shorter-term moving averages (4- 9- 18-day) are bearish early today. The 4-day moving average is below the 9-day. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are bearish early today. Shorter-term technical resistance is seen at this week’s high of 130 2/32 and then at 131 even. Shorter-term support lies at this week’s low of 128 24/32 and then at 128 even. Wyckoff’s Intra-Day Market Rating: 4.5

March U.S. T-Notes: Prices are near steady in early U.S. trading. Bulls are fading. Shorter-term moving averages (4- 9- 18-day) are bearish early today. The 4-day moving average is even with the 9-day. The 9-day is below the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral to bearish early today. Shorter-term resistance lies at the overnight high of 113.23.0 and then at 114.00.0. Shorter-term technical support lies at this week’s low of 113.10.5 and then at 113.00.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.0

EURO CURRENCY

The March Euro currency futures are lower and hit a four-week low in early U.S. trading. Bulls have the overall near-term technical advantage but are fading. An uptrend on the daily bar chart has been negated. The shorter-term moving averages for the Euro are bearish early today, as the 4-day is below the 9-day. The 9-day is below the 18-day moving average. Short-term oscillators for the Euro are bearish early today. The Euro currency finds shorter-term technical resistance at 1.0800 and then at this week’s high of 1.0822. Shorter-term support is seen at 1.0050 and then at 1.0650. Wyckoff’s Intra Day Market Rating: 4.0

NYMEX CRUDE OIL

March Nymex crude oil prices are up in early U.S. trading, on short covering. Bears still have the overall near-term technical advantage. The shorter-term moving averages are bearish early today as the 4-day is below the 9-day and 18-day. The 9-day is below the 18-day moving average. Short-term oscillators (RSI and slow stochastics) are neutral to bullish early today. Look for buy stops to reside just above technical resistance at $76.00 and then at $77.00. Look for sell stops just below technical support at the overnight low of $74.35 and then at this week’s low of $72.25. Wyckoff’s Intra-Day Market Rating: 6.0

GRAINS

Prices were mixed overnight. Not much new early this week. Corn and soybean market bulls have the overall near-term technical advantage. Wheat futures bears have the overall chart advantage but there are early technical clues the wheat markets have bottomed out. Traders are awaiting Wednesday’s monthly USDA supply and demand report.    

IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any traders and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.

Here is what the Commodity Futures Trading Commission

(CFTC) has said about futures trading (and I agree 100%):

1. Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.

Jim Wyckoff