Daily Morning Report

Monday, November 14–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly lower overnight. U.S. stock indexes are headed for weaker openings when the New York day session begins, on corrective pullbacks from recent strong gains. The S&P 500 stock index on Friday hit a two-month high and the Nasdaq index notched a six-week high. The S&P 500 is trending higher on the daily bar chart, to suggest that a market bottom is in place and that prices can continue to work sideways to higher in the near term.

Traders early this week will keep an eye on the Group of 20 meeting taking place in Bali. U.S. President Joe Biden and Chinese Premiere Xi Jinping are scheduled to meet at the confab. China’s government over the weekend took more stimulative measures to reinvigorate its listing property sector. China has also taken steps recently to ease up on its Covid restrictions that continue to hamper the world’s second-largest economy.

The key outside markets today see Nymex crude oil prices weaker and trading around $88.25 a barrel. The U.S. dollar index is sharply higher on a corrective bounce after hitting a nearly three-month low on Friday. The benchmark U.S. Treasury 10-year note yield is presently fetching 3.891%.

There is no major U.S. economic data due for release Monday. The pace picks up quickly Tuesday, including the release of the producer price index report for October, which is seen coming in at up 0.4% from September and compares to the rise of 0.4% in the September PPI report.

–Jim

U.S. STOCK INDEXES

December S&P 500 e-mini futures: Prices are weaker in early U.S. trading, on a mild corrective pullback after hitting a two-month high on Friday. Bulls have gained the overall near-term technical advantage. Prices are in a four-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 last week’s high of 4,009.75 and then at 4,050.00. Support for active traders is seen at Friday’s low of 3,951.00 and then at 3,900.00. Wyckoff’s Intra-day Market Rating: 4.5

December Nasdaq index futures: Prices are weaker in early U.S. trading on a corrective pullback after hitting a six-week high on Friday. Bulls and bears are on a level overall near-term technical playing field. Shorter-term moving averages (4- 9-and 18-day) are neutral early today. The 4-day moving average is above the 9-day and 18-day. The 9-day average is below the 18-day. Short-term oscillators (RSI, slow stochastics) are neutral early today. Shorter-term technical resistance is seen at last week’s high of 11,876.75 and then at 12,000.00. On the downside, shorter-term support is seen at Friday’s low of 11,569.25 and then at 11,300.00. Wyckoff’s Intra-Day Market Rating: 4.5.

U.S. TREASURY BONDS AND NOTES FUTURES

December U.S. T-Bonds: Prices are lower in early U.S. trading, on a corrective pullback from last week’s strong gains. A three-month-old downtrend on the daily bar chart has been negated. 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 last week’s high of 124 10/32 and then at 125 even. Shorter-term support lies at 122 even and then at 121 even. Wyckoff’s Intra-Day Market Rating: 4.0

December U.S. T-Notes: Prices are lower in early U.S. trading, on a corrective pullback from strong gains posted last week. A three-month-old downtrend on the daily bar chart has been negated. 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 112.06.5 and then at last week’s high of 112.19.0. Shorter-term technical support lies at 111.16.0 and then at 111.00.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.0

EURO CURRENCY

The December Euro currency futures are solidly lower in early U.S. trading, on a corrective pullback after hitting a three-month high last 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 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 bearish early today. The Euro currency finds shorter-term technical resistance at last week’s high of 1.0391 and then at 1.0465. Shorter-term support is seen at 1.0250 and then at Friday’s low of 1.0189. Wyckoff’s Intra Day Market Rating: 4.0

NYMEX CRUDE OIL

December Nymex crude oil prices are lower in early U.S. trading. Bulls and bears are on a level near-term technical playing field amid choppy trading. The shorter-term moving averages are neutral early today as the 4-day is below the 9-day and 18-day. The 9-day is above 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 $90.00 and then at $92.00. Look for sell stops just below technical support at $87.50 and then at last week’s low of $84.70. Wyckoff’s Intra-Day Market Rating: 4.0

GRAINS

U.S. grain futures were mostly lower in overnight trading. Bearish outside markets including a sharp rebound in the U.S. dollar index, lower crude oil prices and lower U.S. stock indexes are negatives for the grains today. Corn bulls and bears are on a level overall near-term technical playing field. Soybeans bulls have the slight chart edge. Wheat bears have the near-term technical advantage. On tap today is the weekly USDA export inspections report on the weekly USDA crop progress reports.

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

Friday, November 11–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly higher overnight. U.S. stock indexes are headed for higher openings when the New York day session begins, on follow-through buying from Thursday’s strong gains. The S&P 500 stock index hit a two-month high overnight and the Nasdaq index notched a six-week high. Stock market bulls are still basking in the glow of a slightly cooler U.S. inflation reading released Thursday morning. The consumer price index report for October came in up 7.7%, year-on-year, versus expectations for a rise of 7.9%, year-on-year, and compares to the 8.2% rise seen in the September report. Thursday’s CPI print may be the most important data point of the month and even the quarter. The slightly cooler reading in the CPI may prompt the Federal Reserve to back off its aggressive monetary policy tightening. Most in the marketplace now expect a 0.5% Fed funds rate hike at the December FOMC meeting, following a string of 0.75% rate increases this year. A Barron’s headline today reads, “The peak in inflation is in sight; markets are going wild.” However, veteran market watchers warn that Thursday’s CPI data was just one inflation report, albeit an important one. In all likelihood there will have to be a series of cooler U.S. inflation reports in order to convince the Federal Reserve its inflation-fighting mission is complete. Fed officials have stated several times the central bank cannot err on the side of letting off the monetary-policy-tightening gas too soon.

A feature in the marketplace late this week has been the plunge in the U.S. dollar index and in U.S. Treasury yields. The USDX continues its drop and hit a 2.5-month low overnight, while the benchmark 10-year U.S. Treasury note sees its yield at 3.811% after trading above 4.0% earlier this week. The U.S. Treasury cash markets are closed today for the Veteran’s Day holiday.

Also somewhat bullish for stock and commodity markets are reports China is easing up a bit on some of its strict Covid restrictions.

The crypto currency markets remain shaky late this week. A takeover of likely insolvent FTX crypto exchange by rival Binance fell through, triggering concerns of a wider crypto market illiquidity contagion.

In overnight news, the Euro zone has forecast its inflation rate for 2022 at 8.5%, year-on-year, and at 6.1% in 2023.

The other key outside market today sees Nymex crude oil prices solidly higher.

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

–Jim

U.S. STOCK INDEXES

December S&P 500 e-mini futures: Prices are higher and hit a two-month high in early U.S. trading. Bears have lost their overall near-term technical advantage. 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 4,000.00 and then at 4,050.00. Support for active traders is seen at 3,950.00 and then at 3,900.00. Wyckoff’s Intra-day Market Rating: 6.0

December Nasdaq index futures: Prices are slightly firmer and hit a six-week high in early U.S. trading. Shorter-term moving averages (4- 9-and 18-day) are neutral early today. The 4-day moving average is above the 9-day and 18-day. The 9-day average is below the 18-day. Short-term oscillators (RSI, slow stochastics) are neutral to bullish early today. Shorter-term technical resistance is seen at the overnight high of 11,777.25 and then at 12,000.00. On the downside, shorter-term support is seen at 11,500.00 and then at 11,250.00. Wyckoff’s Intra-Day Market Rating: 6.0.

U.S. TREASURY BONDS AND NOTES FUTURES

December U.S. T-Bonds: Prices are lower in early U.S. trading, on a corrective pullback from Thursday’s strong gains. A three-month-old downtrend on the daily bar chart has been negated. Shorter-term moving averages (4- 9- 18-day) are neutral early today. The 4-day moving average is above the 9-day. The 9-day is even with the 18-day moving average. Oscillators (RSI, slow stochastics) are neutral early today. Shorter-term technical resistance is seen at this week’s high of 124 10/32 and then at 125 even. Shorter-term support lies at 123 even and then at 122 even. Wyckoff’s Intra-Day Market Rating: 4.5

December U.S. T-Notes: Prices are lower in early U.S. trading, on a corrective pullback from strong gains posted Thursday. A three-month-old downtrend on the daily bar chart has been negated. 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 this week’s high of 112.19.0 and then at 113.00.0. Shorter-term technical support lies at 112.00.0 and then at 111.16.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 4.5

EURO CURRENCY

The December Euro currency futures are sharply higher and hit a nearly three-month high in early U.S. trading. Bulls have gained the overall near-term technical advantage. Prices are in a six-week-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 bullish early today. The Euro currency finds shorter-term technical resistance at 1.0350 and then at 1.0400. Shorter-term support is seen at the overnight low of 1.0189 and then at 1.0100. Wyckoff’s Intra Day Market Rating: 6.5

NYMEX CRUDE OIL

December Nymex crude oil prices are solidly higher in early U.S. trading. The shorter-term moving averages are neutral early today as the 4-day is below the 9-day. The 9-day is above the 18-day moving average. Short-term oscillators (RSI and slow stochastics) are neutral early today. Look for buy stops to reside just above technical resistance at $90.00 and then at $92.00. Look for sell stops just below technical support at $87.50 and then at the overnight low of $86.18. Wyckoff’s Intra-Day Market Rating: 6.5

GRAINS

U.S. grain futures were higher in quieter overnight trading. Risk-on attitudes, reports of China easing up on its Covid restrictions and short covering are featured to end the trading week. Corn bulls have lost their slight overall near-term technical advantage. Soybeans bulls also have the slight chart edge. Wheat bears have the 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

Thursday, November 10–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly weaker overnight. U.S. stock indexes are headed for modestly higher openings when the New York day session begins. Traders are anxiously awaiting the U.S. consumer price index report for October, due out at 8:30 a.m. EST this morning. The CPI is expected to come in up 7.9%, year-on-year, compared to the 8.2% rise seen in the September report. This report may be the most important data point of the month. A miss either to the upside or downside in the CPI print is likely to see higher markets volatility and may influence the Federal Reserve’s decision-making process ahead of its December FOMC meeting.

The crypto currency markets remain in turmoil late this week, with fears of a contagion effect and more illiquidity in the cryptos. Broker SP Angel this morning reports in an email dispatch: A proposed takeover of likely insolvent FTX crypto exchange by rival Binance is set to fail, sending Bitcoin down 26% this week and triggering concerns of wider market contagion. FTX exchange, whose founder Sam Bankman-Fried (likened to John Pierpont Morgan during the banking crisis of 1907), is looking for support for a reported $8 billion debt shortfall. The exchange’s insolvency has triggered a further step down in crypto market values, with the total crypto market cap standing at $914 billion, down from over $3 trillion in November 2021. JP Morgan are reporting crypto market participants are facing a ‘cascade’ of margin calls, although it is unclear whether this will feed into wider equity markets.

The key outside markets today see the U.S. dollar index higher. Nymex crude oil prices are weaker and trading around $85.00 a barrel. Oil prices have slipped this week on worries of slowing demand from China, due to rising Covid cases there. The 10-year U.S. Treasury note is yielding 4.102%.

Other U.S. economic data due for release Thursday includes the weekly jobless claims report, real earnings and the monthly Treasury budget statement.

–Jim

U.S. STOCK INDEXES

December S&P 500 e-mini futures: Prices are slightly up in early U.S. trading. Bears have the overall near-term technical advantage. The 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 is even with 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 3,800.00 and then at this week’s high of 3,867.00. Support for active traders is seen at this week’s low of 3,738.25 and then at last week’s low of 3,704.25. Wyckoff’s Intra-day Market Rating: 5.5

December Nasdaq index futures: Prices are firmer in early U.S. trading. Shorter-term moving averages (4- 9-and 18-day) are bearish early today. The 4-day moving average is below the 9-day and 18-day. The 9-day average is below the 18-day. Short-term oscillators (RSI, slow stochastics) are neutral to bearish early today. Shorter-term technical resistance is seen at 11,000.00 and then at this week’s high of 11,231.25. On the downside, shorter-term support is seen at this week’s low of 10,751.00 and then at the November low of 10,636.00. Wyckoff’s Intra-Day Market Rating: 5.5.

U.S. TREASURY BONDS AND NOTES FUTURES

December U.S. T-Bonds: Prices are higher in early U.S. trading. Prices are in a three-month-old downtrend on the daily bar chart. Bears have the solid overall technical advantage. 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 121 even and then at 122 even. Shorter-term support lies at 119 even and then at this week’s low of 118 3/32. Wyckoff’s Intra-Day Market Rating: 5.5

December U.S. T-Notes: Prices are firmer in early U.S. trading. Prices are in a three-month-old downtrend on the daily bar chart. Bears have the solid overall technical advantage. Shorter-term moving averages (4- 9- 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. Oscillators (RSI, slow stochastics) are neutral early today. Shorter-term resistance lies at 111.00.0 and then at 111.16.0. Shorter-term technical support lies at Wednesday’s low of 110.00.0 and then at 109.16.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.5

EURO CURRENCY

The December Euro currency futures are lower in early U.S. trading. Bears have the overall near-term technical advantage. However, recent price action suggests a market bottom is in place. 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 bearish early today. The Euro currency finds shorter-term technical resistance at overnight high of 1.0070 and then at the October high of 1.0131. Shorter-term support is seen at this week’s low of .9948 and then at .9900. Wyckoff’s Intra Day Market Rating: 4.0

NYMEX CRUDE OIL

December Nymex crude oil prices are lower and hit a two-week low in early U.S. trading. The shorter-term moving averages are neutral early today as the 4-day is below the 9-day. The 9-day is above 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 $87.00 and then at $89.00. Look for sell stops just below technical support at $84.00 and then at $82.00. Wyckoff’s Intra-Day Market Rating: 4.5

GRAINS

U.S. grain futures were narrowly mixed in quieter overnight trading. Corn bulls have the slight overall near-term technical advantage but are fading. Soybeans bulls also have the slight chart edge. Wheat bears have the near-term technical advantage. Traders are looking ahead to this morning’s 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 9–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly lower overnight. U.S. stock indexes are headed for mixed openings when the New York day session begins. The U.S. mid-term elections proved pollsters wrong as there was no “Republican wave” of victories. It appears the Republicans will have a slight majority in the House of Representatives, but the Democrats appear to be keeping control of the Senate. However, several key races in both the House and Senate have not been decided, and which could still tip the scales. Still, if history proves correct, a divided Congress that cannot pass new legislation does favor the stock market bulls.

The marketplace is still buzzing about the turmoil in the crypto currency markets on Tuesday that spilled over into safe-haven buying in gold and sharply boosted the yellow metal’s and silver’s prices. The crypto exchange FTX suffered a major liquidity crisis and had to be absorbed by its bigger rival Binance. The cryptos are still a bit shaky Wednesday, in the aftermath of Tuesday’s jolt. The cryptos are just like other markets. When a crisis of confidence occurs, traders and investors all running for the exit door at the same time creates a severe liquidity crunch.

In other news, China’s inflation cooled in October. It’s consumer price index rose just 2.1%, year-on-year, compared to a rise of 2.8% in September. Rising Covid cases in China may further hobble the world’s second-largest economy.

The key outside markets today see the U.S. dollar index slightly firmer. Nymex crude oil prices are weaker and trading around $88.25 a barrel. Oil prices have slipped this week on worries of slowing demand from China, due to rising Covid cases there. The 10-year U.S. Treasury note is yielding 4.134%.

Traders are anxiously awaiting the next U.S. report inflation Thursday morning, with the release of the consumer price index report for October, which is expected to come in up 7.9%, year-on-year, compared to the 8.2% rise seen in the September report.

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

December S&P 500 e-mini futures: Prices are slightly lower in early U.S. trading. Bears have the overall near-term technical advantage. 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 early today. Today, shorter-term technical resistance comes in at this week’s high of 3,867.00 and then at 3,900.00. Support for active traders is seen at this week’s low of 3,738.25 and then at last week’s low of 3,704.25. Wyckoff’s Intra-day Market Rating: 4.5

December Nasdaq index futures: Prices are near steady in early U.S. trading. Shorter-term moving averages (4- 9-and 18-day) are bearish early today. The 4-day moving average is below the 9-day and 18-day. The 9-day average is below 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 11,231.25 and then at 11,400.00. On the downside, shorter-term support is seen at Tuesday’s low of 10,928.75 and then at this week’s low of 10,751.00. Wyckoff’s Intra-Day Market Rating: 5.0.

U.S. TREASURY BONDS AND NOTES FUTURES

December U.S. T-Bonds: Prices are near steady in early U.S. trading. Prices are in a three-month-old downtrend on the daily bar chart. Bears have the solid overall technical advantage. 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 121 even and then at 122 even. Shorter-term support lies at this week’s low of 118 3/32 and then at the contract low of 117 19/32. Wyckoff’s Intra-Day Market Rating: 5.0

December U.S. T-Notes: Prices are near steady in early U.S. trading. Prices are in a three-month-old downtrend on the daily bar chart. Bears have the solid overall technical advantage. Shorter-term moving averages (4- 9- 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. Oscillators (RSI, slow stochastics) are neutral early today. Shorter-term resistance lies at 110.16.0 and then at 110.24.0. Shorter-term technical support lies at 110.00.0 and then at 109.16.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 5.0

EURO CURRENCY

The December Euro currency futures are weaker in early U.S. trading. Bears have the overall near-term technical advantage. However, recent price action suggests a market bottom is in place. 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 the October high of 1.0131 and then at 1.0200. Shorter-term support is seen at 1.0000 and then at this week’s low of .9948. Wyckoff’s Intra Day Market Rating: 4.5

NYMEX CRUDE OIL

December Nymex crude oil prices are lower in early U.S. trading. The shorter-term moving averages are still bullish early today as the 4-day is above the 9-day and 18-day. The 9-day is above 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 $91.00 and then at this week’s high of $93.74. Look for sell stops just below technical support at $86.50 and then at $85.00. Wyckoff’s Intra-Day Market Rating: 4.5

GRAINS

U.S. grain futures were mixed to weaker in quieter overnight trading. Corn bulls have the slight overall near-term technical advantage. Soybeans bulls also have the slight chart edge. Wheat bears have the near-term technical advantage. Seasonality studies are starting to favor the grain market bulls as the U.S. corn and soybean harvests wind down. Traders are looking ahead to this morning’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