Daily Morning Report

Thursday, December 1–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly firmer overnight. U.S. stock indexes are pointed toward slightly lower openings when the New York day session begins, following strong gains posted Wednesday afternoon. The marketplace deemed Federal Reserve Chairman Jerome Powell’s highly anticipated speech at the Brookings Institution Wednesday afternoon as leaning dovish on U.S. monetary policy. That rallied the U.S. stock market, pressured the U.S. dollar index and dropped U.S. Treasury yields. Gold and silver prices rallied. Powell said the U.S. central bank could slow the pace of monetary policy tightening as soon as the FOMC meeting in two weeks. However, he said the Fed will need to hold policy at restrictive levels “for some time.” Powell added that inflation remains far too high and that future rate hikes are warranted.

The Dow Jones Industrial Average has exited the bear market and has entered a new bull market, according to Dow Jones Newswires reports. The DJIA has risen 20% from its recent low. However, the S&P 500 stock index is still on track for its worst year since 2008.

Traders continue to monitor the civil unrest in China. It seems the situation is not spiraling out of control, but neither is it fading away. Reports say China is relaxing some its Covid lockdowns (likely due to the public protests), while at the same time China says new Covid infections are declining and vaccinations are on the rise.

The key outside markets today see the U.S. dollar index lower. Nymex crude oil prices are firmer and trading around $81.25 a barrel. There have been some reports OPEC at its meeting early next week will consider cutting its collective crude oil production. Other reports say the cartel will leave its production unchanged. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently 3.614%.

Focus is turning to Friday morning’s U.S. employment situation report for November. The key non-farm payrolls figure is expected to come in at up 200,000, compared to the rise of 261,000 seen in the October report.

It’s another busy U.S. economic data release day Thursday, including the weekly jobless claims report, the Challenger job-cuts report, personal income and outlays, the U.S. manufacturing PMI, the ISM report on business manufacturing, construction spending, the global manufacturing PMI, monthly chain store sales, and domestic auto industry sales.

–Jim

U.S. STOCK INDEXES

March S&P 500 e-mini futures: Prices are slightly lower in early U.S. trading, on a corrective pullback after hitting a 2.5-month high overnight. Prices Wednesday closed at a technically bullish monthly high close. Bulls have the firm 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 early today. Today, shorter-term technical resistance comes in at the overnight high of 4,129.00 and then at of 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: 5.0

March Nasdaq index futures: Prices are slightly lower in early U.S. trading. Prices Wednesday closed at a 2.5-month high close and at a technically bullish monthly high close. Bulls have the overall near-term technical advantage. 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 November high of 12,236.00 and then at 12,400.00. On the downside, shorter-term support is seen at 12,000.00 and then at 11,750.00. Wyckoff’s Intra-Day Market Rating: 5.0.

U.S. TREASURY BONDS AND NOTES FUTURES

March U.S. T-Bonds: Prices are solidly higher in early U.S. trading. Prices Monday hit a seven-week high. Shorter-term moving averages (4- 9- 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. Oscillators (RSI, slow stochastics) are neutral to bullish early today. Shorter-term technical resistance is seen at 129 even and then at 130 even. Shorter-term support lies at the overnight low of 127 25/32 and then at 127 even. Wyckoff’s Intra-Day Market Rating: 6.5

March U.S. T-Notes: Prices are solidly higher and hit a nine-week high in early U.S. trading.  Shorter-term moving averages (4- 9- 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. Oscillators (RSI, slow stochastics) are neutral early today. Shorter-term resistance lies at 114.16.0 and then at 114.24.0. Shorter-term technical support lies at this week’s low of 113.20.0 and then at 113.10.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 6.5

EURO CURRENCY

The March Euro currency futures are firmer in early U.S. trading and close to Monday’s nearly five-month high. Bulls have the overall near-term technical advantage. Prices are in a two-month-old uptrend on the daily bar chart. The shorter-term moving averages for the Euro are bullish early today, as the 4-day is above the 9-day. The 9-day is above 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 1.0580 and then at 1.0600. Shorter-term support is seen at the overnight low of 1.0473 and then at 1.0400. Wyckoff’s Intra Day Market Rating: 6.0

NYMEX CRUDE OIL

January Nymex crude oil prices are higher on a continued rebound after hitting an 11-month low on Monday. Bears still have the overall near-term technical advantage but a price downtrend on the daily bar chart is in jeopardy. The bears appear to be exhausted to suggest a market bottom is in place. 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 $82.50 and then at $84.00. Look for sell stops just below technical support at Wednesday’s low of $78.40 and then at $77.00. Wyckoff’s Intra-Day Market Rating: 6.0

GRAINS

U.S. grain futures were lower in overnight trading. Corn and soybean bulls have the overall near-term technical advantage. Wheat bears have the firm near-term technical advantage. On tap today is the weekly USDA export sales 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

Wednesday, November 30–Jim Wyckoff’s Morning Markets Report

Global stock markets were mixed to firmer overnight. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins. It’s a very busy day for U.S. economic data, with the highlight being a speech by Federal Reserve Chairman Jerome Powell this afternoon at the Brookings Institution. Traders and investors will be watching to see if Powell makes a pivot from a hawkish to a bit more dovish U.S. monetary policy stance, given recent U.S. economic data that hints inflation may have peaked.

In overnight news, reports said public demonstrations in China increased Wednesday after a lull on Tuesday. China security forces are reported to be heavily deployed in major Chinese cities. The protests have prompted Chinese officials to somewhat ease their strict Covid restrictions.

In other news, Euro zone inflation fell in November for the first time since mid-2021, as the consumer price index was up 10%, year-on-year, compared to a reading of up 10.6% in October.

The key outside markets today see the U.S. dollar index weaker. Nymex crude oil prices are higher on a strong rebound after hitting an 11-month low Monday, and are trading around $80.25 a barrel. There are some reports OPEC at its meeting next week will consider cutting its collective crude oil production. Other reports say the cartel will leave its production unchanged. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently 3.731%.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the ADP national employment report, preliminary corporate profits and the second estimate of third-quarter GDP, advance economic indicators, the ISM Chicago business survey, the weekly DOE liquid energy stocks report and the Federal Reserve’s beige book.

–Jim

U.S. STOCK INDEXES

March S&P 500 e-mini futures: Prices are slightly firmer 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 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 neutral to bearish early today. Today, shorter-term technical resistance comes in at this week’s high of 4,061.25 and then at of 4,094.50. Support for active traders is seen at this week’s low of 3,974.50 and then at last week’s low of 3,937.50. Wyckoff’s Intra-day Market Rating: 5.5

March Nasdaq index futures: Prices are slightly firmer in early U.S. trading. Bulls have the slight overall near-term technical advantage but need to show more power soon to keep it. 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 average is above the 18-day. Short-term oscillators (RSI, slow stochastics) are neutral early today. Shorter-term technical resistance is seen at this week’s high of 11,900.50 and then at 12,000.00. On the downside, shorter-term support is seen at this week’s low of 11,580.50 and then at 11,400.00. Wyckoff’s Intra-Day Market Rating: 5.5.

U.S. TREASURY BONDS AND NOTES FUTURES

March U.S. T-Bonds: Prices are slightly higher in early U.S. trading. Prices Monday hit a seven-week high. Shorter-term moving averages (4- 9- 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. Oscillators (RSI, slow stochastics) are neutral early today. Shorter-term technical resistance is seen at 128 even and then at this week’s high of 128 17/32. Shorter-term support lies at 126 even and then at 125 even. Wyckoff’s Intra-Day Market Rating: 5.5

March U.S. T-Notes: Prices are firmer in early U.S. trading. Prices Monday hit a seven-week high. Shorter-term moving averages (4- 9- 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. Oscillators (RSI, slow stochastics) are neutral early today. Shorter-term resistance lies at 113.16.0 and then at this week’s high of 113.27.0. Shorter-term technical support lies at this week’s low of 112.28.0 and then at 112.16.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.5

EURO CURRENCY

The March Euro currency futures are higher in early U.S. trading. Prices Monday hit a nearly five-month high. Bulls have the overall near-term technical advantage. Prices are in a two-month-old uptrend on the daily bar chart. The shorter-term moving averages for the Euro are bullish early today, as the 4-day is above the 9-day. The 9-day is above the 18-day moving average. Short-term oscillators for the Euro are neutral early today. The Euro currency finds shorter-term technical resistance at 1.0500 and then at this week’s high of 1.0580. Shorter-term support is seen at the overnight low of 1.0402 and then at 1.0316. Wyckoff’s Intra Day Market Rating: 6.0

NYMEX CRUDE OIL

January Nymex crude oil prices are higher on a continued rebound after hitting an 11-month low on Monday. Bears still have the overall near-term technical advantage as a price downtrend is in place on the daily bar chart. However, the bears appear to be exhausted to suggest a market bottom is in place. 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 $82.50 and then at $84.00. Look for sell stops just below technical support at the overnight low of $78.40 and then at $77.00. Wyckoff’s Intra-Day Market Rating: 6.5

GRAINS

U.S. grain futures were steady to firmer in overnight trading. A slight uptick in investor risk appetite at mid-week is friendly for the grain markets. Corn and soybean bulls have the slight overall near-term technical advantage. Wheat bears have the firm near-term technical advantage.

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, November 29–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly higher overnight. U.S. stock indexes are pointed toward firmer openings when the New York day session begins. Traders and investors are still very closely monitoring the civil unrest situation in China. Some market watchers are deeming the recent unrest as bullish for stocks and commodities because it will likely force China to back off on its strict Covid lockdowns that have crimped the world’s second-largest economy. Reports said new Covid cases in China are decelerating a bit. It was calmer in Chinese streets Tuesday evening, with no major protesting reported in the media. Reports said Chinese authorities deployed a heavy police presence in major cities to deter a repeat of the weekend demonstrations. Respected authority on China, Bill Bishop of Sinocism, said the government “has a playbook for dealing with these kinds of events and has been hardening the system for many years for just these kinds of threats.” He said the Chinese government will be “pushing harder on propaganda work, censorship and political thought work. And ‘hostile foreign forces’ will be blamed.” Bishop added, “For all the stability maintenance work Beijing has done they really would have a hard time dealing with tens or hundreds of thousands or more people on the streets in one or more cities. I am not expecting anything like that to happen, but you can’t rule it out, and I will bet the security services are not ruling it out.”

Other big market events this week include a speech by Federal Reserve Chairman Jerome Powell on Wednesday afternoon and the U.S. employment report from the Labor Department on Friday morning.

The key outside markets today see the U.S. dollar index lower. Nymex crude oil prices are solidly higher on a strong rebound after hitting an 11-month early Monday, and are trading around $79.50 a barrel. There are reports OPEC at its meeting next week will consider cutting the cartel’s collective crude oil production. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently 3.652%.

U.S. economic data due for release Tuesday includes the weekly Johnson Redbook retail sales report, the monthly and quarterly U.S. house price indexes, the S&P CoreLogic/Case-Shiller home price indexes, and the consumer confidence index.

–Jim

U.S. STOCK INDEXES

March S&P 500 e-mini futures: Prices are firmer 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 early today. Today, shorter-term technical resistance comes in at Monday’s high of 4,061.25 and then at Friday’s high of 4,094.50. Support for active traders is seen at 4,000.00 and then at last week’s low of 3,937.50. Wyckoff’s Intra-day Market Rating: 5.5

March Nasdaq index futures: Prices are firmer in early U.S. trading. Bulls have the slight overall near-term technical advantage but need to show more power soon to keep it. Shorter-term moving averages (4- 9-and 18-day) are neutral early today. The 4-day moving average is even with 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 Monday’s high of 11,900.50 and then at 12,000.00. On the downside, shorter-term support is seen at last week’s low of 11,526.50 and then at 11,300.00. Wyckoff’s Intra-Day Market Rating: 5.5.

U.S. TREASURY BONDS AND NOTES FUTURES

March U.S. T-Bonds: Prices are higher in early U.S. trading. Prices Monday hit a seven-week high. Shorter-term moving averages (4- 9- 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. Oscillators (RSI, slow stochastics) are neutral to bullish early today. Shorter-term technical resistance is seen at Monday’s high of 128 17/32 and then at 129 even. Shorter-term support lies at 127 even and then at 126 even. Wyckoff’s Intra-Day Market Rating: 6.0

March U.S. T-Notes: Prices are higher in early U.S. trading. Prices Monday hit a seven-week high. Shorter-term moving averages (4- 9- 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. Oscillators (RSI, slow stochastics) are neutral early today. Shorter-term resistance lies at Monday’s high of 113.27.0 and then at 114.00.0. Shorter-term technical support lies at the overnight low of 113.03.5 and then at last Friday’s low of 112.27.5. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 6.0

EURO CURRENCY

The March Euro currency futures are higher in early U.S. trading. Prices Monday hit a nearly five-month high. Bulls have the firm overall near-term technical advantage. Prices are in a two-month-old uptrend on the daily bar chart. The shorter-term moving averages for the Euro are bullish early today, as the 4-day is above the 9-day. The 9-day is above the 18-day moving average. Short-term oscillators for the Euro are neutral early today. The Euro currency finds shorter-term technical resistance at 1.0500 and then at Monday’s high of 1.0580. Shorter-term support is seen at Monday’s low of 1.0425 and then at 1.0400. Wyckoff’s Intra Day Market Rating: 6.0

NYMEX CRUDE OIL

January Nymex crude oil prices are solidly higher on a strong rebound after hitting an 11-month low on Monday. Bears still have the overall near-term technical advantage as a price downtrend is in place on the daily bar chart. However, the bears now appear to be exhausted to begin to suggest a market bottom is in place. 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 $80.00 and then at $82.00. Look for sell stops just below technical support at $78.00 and then at $77.00. Wyckoff’s Intra-Day Market Rating: 6.5

GRAINS

U.S. grain futures were steady to firmer in overnight trading. The China unrest is still bearish for the grains, but it appears that situation has eased a bit, which may prompt buyers back into the grains. Corn and soybean bulls have the slight overall near-term technical advantage. Wheat bears have the firm near-term technical advantage.

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

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

Global stock markets were mostly lower overnight. U.S. stock indexes are pointed toward lower openings when the New York day session begins. The marketplace is uneasy to start the trading week, as there is civil unrest in China over its strict zero-Covid policies. Reports said there were demonstrations across China over the weekend. It’s the largest show of discontent since the Tiananmen Square protests in 1989. China is the world’s second-largest economy and the most populous nation. The geopolitical and economic consequences of a further escalation in protests and any crackdown by Chinese authorities would be huge.

The key outside markets today see the U.S. dollar index lower. Nymex crude oil prices are solidly lower, hit a 10-month low overnight, and are trading around $74.00 a barrel. The yield on the benchmark U.S. 10-year Treasury note is presently 3.692%.

Other big market events this week include a speech by Federal Reserve Chairman Jerome Powell on Wednesday afternoon and the U.S. employment report from the Labor Department on Friday morning.

U.S. economic data due for release Monday includes the Texas manufacturing outlook survey.

–Jim

U.S. STOCK INDEXES

March S&P 500 e-mini futures: Prices are lower in early U.S. trading, profit taking after hitting a nine-week high on Friday. 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 bearish early today. Today, shorter-term technical resistance comes in at the overnight high of 4,061.25 and then at Friday’s high of 4,094.50. Support for active traders is seen at 4,000.00 and then at last week’s low of 3,937.50. Wyckoff’s Intra-day Market Rating: 4.0

March Nasdaq index futures: Prices are lower in early U.S. trading. Bulls have the slight overall near-term technical advantage but need to show more power soon to keep it. 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 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 11,865.00 and then at 12,000.00. On the downside, shorter-term support is seen at last week’s low of 11,526.50 and then at 11,300.00. Wyckoff’s Intra-Day Market Rating: 4.0.

U.S. TREASURY BONDS AND NOTES FUTURES

March U.S. T-Bonds: Prices are slightly higher in early U.S. trading and hit a seven-week high overnight. Shorter-term moving averages (4- 9- 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. Oscillators (RSI, slow stochastics) are neutral early today. Shorter-term technical resistance is seen at the overnight high of 128 17/32 and then at 129 even. Shorter-term support lies at 127 even and then at 126 even. Wyckoff’s Intra-Day Market Rating: 5.5

March U.S. T-Notes: Prices are firmer in early U.S. trading and hit a seven-week high overnight. Shorter-term moving averages (4- 9- 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. Oscillators (RSI, slow stochastics) are neutral early today. Shorter-term resistance lies at the overnight high of 113.27.0 and then at 114.00.0. Shorter-term technical support lies at 113.00.0 and then at Friday’s low of 112.27.5. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.5

EURO CURRENCY

The March Euro currency futures are solidly higher and hit a nearly five-month high in early U.S. trading. Bulls have the firm overall near-term technical advantage. Prices are in a two-month-old uptrend on the daily bar chart. The shorter-term moving averages for the Euro are bullish early today, as the 4-day is above the 9-day. The 9-day is above 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 the overnight high of 1.0580 and then at the 1.0600. Shorter-term support is seen at 1.0500 and then at the overnight low of 1.0425. Wyckoff’s Intra Day Market Rating: 6.5

NYMEX CRUDE OIL

January Nymex crude oil prices are lower and hit a 10-month low in early U.S. trading. Bears have the solid overall near-term technical advantage as a price downtrend is in place on the daily bar chart. 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 bearish early today. Look for buy stops to reside just above technical resistance at $75.00 and then at the overnight high of $76.49. Look for sell stops just below technical support $73.00 and then at $72.00. Wyckoff’s Intra-Day Market Rating: 3.5

GRAINS

U.S. grain futures were mostly lower in overnight trading. On tap today is the weekly USDA export inspections report. Increased risk aversion amid the China unrest is bearish for the grains. Corn and soybean bulls and bears are on a level overall near-term technical playing field. Wheat bears have the firm near-term technical advantage.

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