Nymex crude oil futures this week hit a five-month high above $87.00 a barrel. Prices are trending higher on the daily bar chart and the next upside price objective for the bulls is closing prices above stiff chart resistance at $90.00. The rallying crude oil market is bullish for the raw commodity sector, as crude is the sector leader. Stay tuned!—Jim Wyckoff
Daily Morning Report
U.S. jobs report on deck Friday a.m.
Friday, April 5–Jim Wyckoff’s morning markets report
Asian and European stock indexes were mostly lower overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. China markets were closed Friday for a holiday.
The marketplace is awaiting the U.S. data point of the week, if not the month, on Friday morning. The March employment situation report from the Labor Department is due out. The key non-farm payrolls number is seen coming in at up 200,000, which compares to a rise of 275,000 in the February report. Look for some higher markets volatility after the jobs report, especially if it’s a big miss from market expectations.
The key outside markets today see the U.S. dollar index a bit firmer. Nymex crude oil prices are slightly up and trading around $86.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching 4.32%.
Other U.S. economic data due for release Friday includes the consumer credit report.
STOCK INDEXES
June S&P 500 e-mini futures: Prices are firmer in early U.S. trading. Bulls have the solid overall near-term technical advantage. Prices are in a five-month-old uptrend on the daily bar chart. The shorter-term moving averages (4-day, 9-day and 18-day) are neutral early today. The 4-day moving average is below the 9-day and 18-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 5,250.00 and then at 5,300.00. Support for active traders is seen at the overnight low of 5,191.50 and then at 5,150.00. Wyckoff’s Intra-day Market Rating: 5.5
June Nasdaq index futures: Prices are firmer in early U.S. trading. Bulls have the solid overall near-term technical advantage. Shorter-term moving averages (4- 9-and 18-day) are neutral early today. The 4-day moving average is below the 9-day and 18-day. The 9-day is above the 18-day. Short-term oscillators (RSI, slow stochastics) are neutral early today. Shorter-term technical resistance is seen at 18,300.00 and then at 18,400.00. On the downside, shorter-term support is seen at 18,000.00 and then at 17,900.00. Wyckoff’s Intra-Day Market Rating: 5.5.
U.S. TREASURY BONDS AND NOTES FUTURES
June U.S. T-Bonds: Prices are weaker 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 and 18-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 118 26/32 and then at 119 even. Shorter-term support lies at this week’s low of 116 24/32 and then at 116 even. Wyckoff’s Intra-Day Market Rating: 4.5
June U.S. T-Notes: Prices are down 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 and 18-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 Thursday’s high of 110.06.0 and then at 110.16.0. Shorter-term technical support is seen at Thursday’s low of 109.20.0 and then at this week’s low of 109.09.5. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0
EURO CURRENCY
The June Euro currency futures are a bit weaker in early U.S. trading. The shorter-term moving averages for the Euro 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 for the Euro are neutral early today. The Euro currency finds shorter-term technical resistance at this week’s high of 1.0908 and then at 1.0950. Shorter-term support is seen at 1.0800 and then at this week’s low of 1.0758. Wyckoff’s Intra Day Market Rating: 4.5
NYMEX CRUDE OIL
May Nymex crude oil prices are just a bit firmer in early U.S. trading after hitting a five-month high Thursday. The shorter-term moving averages 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 (RSI and slow stochastics) are neutral to bearish early today. Look for buy stops to reside just above technical resistance at this week’s high of $87.22 and then at $88.00. Look for sell stops just below technical support at $85.00 and then at $83.85. Wyckoff’s Intra-Day Market Rating: 5.0
GRAINS
Grain futures prices were firmer overnight. Charts remain overall bearish for wheat, soybeans, meal and bean oil. However, corn, soybeans, meal and bean oil, and HRW wheat have broken their near-term price downtrends on the daily charts, to suggest market bottoms are in place.
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
Fed’s Powell leans just a bit dovish
Thursday, April 4–Jim Wyckoff’s morning markets report
Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins.
The stock and bond markets were somewhat assuaged by Fed Chairman Jerome Powell’s comments on the U.S. economy in a speech at Stanford University Wednesday afternoon. He said U.S. interest rate cuts are likely this year. The marketplace at present has priced in two interest rate cuts this year.
In overnight news, the Eurozone February producer price index was reported down 8.3%, year-on-year. The decline was mostly due to a drop in energy prices.
The marketplace is awaiting the U.S. data point of the week, if not the month, on Friday morning. The March employment situation report from the Labor Department is due out. The key non-farm payrolls number is seen coming in at up 200,000, which compares to a rise of 275,000 in the February report.
The key outside markets today see the U.S. dollar index a bit weaker. Nymex crude oil prices are near steady after hitting a five-month high Wednesday and are trading around $85.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching 4.36%.
U.S. economic data due for release Thursday includes the Challenger job-cuts report, the international trade report, the weekly jobless claims report, the global services PMI. A few Federal Reserve officials are also scheduled to speak today.
STOCK INDEXES
June S&P 500 e-mini futures: Prices are firmer in early U.S. trading. Bulls have the solid overall near-term technical advantage. Prices are in a five-month-old uptrend on the daily bar chart. The shorter-term moving averages (4-day, 9-day 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 early today. Today, shorter-term technical resistance comes in at the contract high of 5,333.50 and then at 5,375.00. Support for active traders is seen at this week’s low of 5.235.00 and then at 5,200.00. Wyckoff’s Intra-day Market Rating: 5.5
June Nasdaq index futures: Prices are firmer in early U.S. trading. Bulls have the solid overall near-term technical advantage. 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. Short-term oscillators (RSI, slow stochastics) are neutral early today. Shorter-term technical resistance is seen at 18,500.00 and then at this week’s high of 18,612.00. On the downside, shorter-term support is seen at 18,300.00 and then at this week’s low of 18,201.50. Wyckoff’s Intra-Day Market Rating: 5.5.
U.S. TREASURY BONDS AND NOTES FUTURES
June U.S. T-Bonds: Prices are slightly lower 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 and 18-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 Tuesday’s high of 118 26/32 and then at 119 even. Shorter-term support lies at this week’s low of 116 24/32 and then at 116 even. Wyckoff’s Intra-Day Market Rating: 4.5
June U.S. T-Notes: Prices are slightly down 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 resistance lies at Tuesday’s high of 110.03.0 and then at 110.16.0. Shorter-term technical support is seen at this week’s low of 109.09.5 and then at 109.00.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.5
EURO CURRENCY
The June Euro currency futures are firmer in early U.S. trading. The shorter-term moving averages for the Euro 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 for the Euro are bullish early today. The Euro currency finds shorter-term technical resistance at last week’s high of 1.0901 and then at 1.0950. Shorter-term support is seen at 1.0850 and then at 1.0800. Wyckoff’s Intra Day Market Rating: 6.0
NYMEX CRUDE OIL
May Nymex crude oil prices are a bit weaker in early U.S. trading after hitting a five-month high Wednesday. The shorter-term moving averages 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 (RSI and slow stochastics) are neutral to bearish early today. Look for buy stops to reside just above technical resistance at this week’s high of $86.20 and then at $87.50. Look for sell stops just below technical support at Tuesday’s low of $83.85 and then at this week’s low of $82.60. Wyckoff’s Intra-Day Market Rating: 5.0
GRAINS
Grain futures prices were steady to slightly up overnight. On tap today is the weekly USDA export sales report. Charts remain overall bearish for wheat, soybeans, meal and bean oil. However, corn, soybeans, meal and bean oil, and HRW wheat have broken their near-term price downtrends on the daily charts, to suggest market bottoms are in place.
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
Gold, silver power higher
The gold and silver markets are on fire as gold prices hit a record high this week and silver prices a two-year high. Safe-haven demand amid heightened geopolitical tensions in the Middle East is a major element pushing the precious metals markets higher. The charts for gold and silver are also fully bullish, which is inviting the chart-based speculators to the long sides of the markets. There are no early chart clues to suggest the gold and silver markets are close to topping out. More price upside is likely in the near term. Stay tuned!—Jim Wyckoff
Major earthquake in Taiwan
Wednesday, April 3–Jim Wyckoff’s morning markets report
In overnight news, there was a major 7.4 magnitude earthquake in Taiwan that killed at least seven and injured dozens. The temblor was the strongest in a quarter century and may have impacted the region’s semiconductor industry.
Eurozone inflation cooled a bit in March, as its consumer price index was reported up 2.4%, compared to up 2.8% in February, year-on-year. Reads a DowJones Newswires headline: “Eurozone inflation cools, setting the stage for June rate cut.”
U.S. economic reports due for release Wednesday include the weekly MBA mortgage applications survey, the ADP national employment report, the U.S. services PMI, the ISM report on business services, and the weekly DOE liquid energy stocks report. Several Federal Reserve officials are also scheduled to speak today, including Fed Chairman Jerome Powell.
STOCK INDEXES
June S&P 500 e-mini futures: Prices are weaker in early U.S. trading. Bulls have the solid overall near-term technical advantage. Prices are in a five-month-old uptrend on the daily bar chart. The shorter-term moving averages (4-day, 9-day 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 contract high of 5,333.50 and then at 5,375.00. Support for active traders is seen at this week’s low of 5.235.00 and then at 5,200.00. Wyckoff’s Intra-day Market Rating: 4.5
June Nasdaq index futures: Prices are weaker in early U.S. trading. Bulls have the solid overall near-term technical advantage. 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. Short-term oscillators (RSI, slow stochastics) are bearish early today. Shorter-term technical resistance is seen at the overnight high of 18,345.00 and then at 18,500.00. On the downside, shorter-term support is seen at this week’s low of 18,201.50 and then at 18,100.00. Wyckoff’s Intra-Day Market Rating: 4.5.
U.S. TREASURY BONDS AND NOTES FUTURES
June U.S. T-Bonds: Prices are slightly lower in early U.S. trading. Bears have momentum. Shorter-term moving averages (4- 9- 18-day) are bearish early today. The 4-day moving average is below the 9-day and 18-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 Tuesday’s high of 118 26/32 and then at 119 even. Shorter-term support lies at this week’s low of 117 5/32 and then at 116 even. Wyckoff’s Intra-Day Market Rating: 4.5
June U.S. T-Notes: Prices are steady 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 resistance lies at Tuesday’s high of 110.03.0 and then at 110.16.0. Shorter-term technical support is seen at this week’s low of 109.14.5 and then at 109.00.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.0
EURO CURRENCY
The June Euro currency futures are slightly higher in early U.S. trading. The shorter-term moving averages for the Euro 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 for the Euro are neutral to bullish early today. The Euro currency finds shorter-term technical resistance at this week’s high of 1.0833 and then at last week’s high of 1.0901. Shorter-term support is seen at this week’s low of 1.0758 and then at 1.0700. Wyckoff’s Intra Day Market Rating: 5.5
NYMEX CRUDE OIL
May Nymex crude oil prices are firmer in early U.S. trading and hit a five-month high overnight. The shorter-term moving averages 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 (RSI and slow stochastics) are bullish early today. Look for buy stops to reside just above technical resistance at $86.00 and then at $87.00. Look for sell stops just below technical support at Tuesday’s low of $83.85 and then at this week’s low of $82.60. Wyckoff’s Intra-Day Market Rating: 6.0
GRAINS
Grain futures prices were mixed but mostly firmer overnight. Not much new this week. Charts remain overall bearish for wheat, soybeans, meal and bean oil. However, corn, soybeans, meal and bean oil, and HRW wheat have broken their near-term price downtrends on the daily charts, to suggest market bottoms are in place.
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
U.S. Treasury yields on the rise
Tuesday, April 2–Jim Wyckoff’s morning markets report
Featured in the marketplace early this week is rising U.S. Treasury yields following recent strong U.S. economic data, including Monday’s stronger-than-expected ISM manufacturing report. That has given the U.S. monetary policy doves some pause on their notions of an interest rate cut coming as early as June.
In overnight news, an air strike on the consular part of Iran’s embassy in Damascus, Syria, killed three senior members of Iran’s Revolutionary Guards. Iran blamed Israel for the strike. This is another escalation in the already-turbulent Middle East. Gold rose to another record high overnight, partly due to safe-have demand amid heightened geopolitical tensions.
In other news, the Japanese yen sank to a 34-year low against the U.S. dollar today. Reads a DowJones Newswires headline today: “Yen intervention risk is rising, but effects could be short-lived.”
U.S. economic reports due for release Tuesday include the Johnson Redbook weekly retail sales report, manufacturers’ shipments and inventories, the JOLTS survey, the global manufacturing PMI, and domestic auto industry sales. Several Federal Reserve officials are also slated to speak today.
STOCK INDEXES
June S&P 500 e-mini futures: Prices are weaker in early U.S. trading after hitting a contract and record high Monday. Bulls have the solid overall near-term technical advantage. Prices are in a five-month-old uptrend on the daily bar chart. The shorter-term moving averages (4-day, 9-day and 18-day) are neutral early today. The 4-day moving average is even with 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 contract high of 5,333.50 and then at 5,375.00. Support for active traders is seen at last week’s low of 5.271.25 and then at 5,250.00. Wyckoff’s Intra-day Market Rating: 4.5
June Nasdaq index futures: Prices are slightly lower in early U.S. trading and not far below the recent record high. Bulls have the solid overall near-term technical advantage. 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. Short-term oscillators (RSI, slow stochastics) are bearish early today. Shorter-term technical resistance is seen at 18,500.00 and then at the contract high of 18,709.00. On the downside, shorter-term support is seen at last week’s low of 18,414.75 and then at 18,300.00. Wyckoff’s Intra-Day Market Rating: 4.5.
U.S. TREASURY BONDS AND NOTES FUTURES
June U.S. T-Bonds: Prices are lower and hit a five-week low 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 and 18-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 118 26/32 and then at 119 even. Shorter-term support lies at 118 even and then at the February low of 117 11/32. Wyckoff’s Intra-Day Market Rating: 4.0
June U.S. T-Notes: Prices are down 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 resistance lies at the overnight high of 110.03.0 and then at 110.16.0. Shorter-term technical support is seen at the March low of 109.24.5 and then at 109.16.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0
EURO CURRENCY
The June Euro currency futures are slightly higher in early U.S. trading after hitting a six-week low overnight. The shorter-term moving averages for the Euro 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 for the Euro are neutral early today. The Euro currency finds shorter-term technical resistance at Monday’s high of 1.0833 and then at last week’s high of 1.0901. Shorter-term support is seen at the overnight low of 1.0758 and then at 1.0700. Wyckoff’s Intra Day Market Rating: 5.5
NYMEX CRUDE OIL
May Nymex crude oil prices are higher in early U.S. trading and hitting a five-high low overnight. The shorter-term moving averages 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 (RSI and slow stochastics) are bullish early today. Look for buy stops to reside just above technical resistance at the overnight high of $85.46 and then at $87.00. Look for sell stops just below technical support at the overnight low of $83.85 and then at this week’s low of $82.60. Wyckoff’s Intra-Day Market Rating: 6.5
GRAINS
Grain futures prices were mixed overnight. Charts remain overall bearish for wheat, soybeans, meal and bean oil. However, corn, soybeans, meal and bean oil, and HRW wheat have broken their near-term price downtrends on the daily charts, to suggest market bottoms are in place.
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