Daily Morning Report

Thursday, September 29–Jim Wyckoff’s Morning Markets Report

Global stock markets were mixed but mostly lower overnight. U.S. stock indexes are pointed to lower openings when the New York day session begins. The marketplace was briefly assuaged by the Bank of England’s surprise announcement Wednesday that it will begin purchases of U.K. government bonds in order to stabilize the rattled U.K. bond market. However, markets quickly brushed aside the move as being insufficient. Risk aversion remains elevated late this week. Government bond yields and the U.S. dollar are on the rise again as the marketplace is spooked by rising inflation, the specter of global economic recession, and currency and financial markets instability.

The U.K. government has created a “loop of doom” that threatens the entire financial system and they must act urgently, said Nigel Green of the DeVere Group. “Markets now know where the weakness lies. Intervention paints a target on the back of the body that intervenes.” If the U.K. government does not change its tax and spending plans, “they will have blown up the U.K. mortgage market, U.K. pensions, amongst others, and eventually (a contagion) could spread to the wider global financial markets which themselves are sitting on thin ice as liquidity disappears,” said Green. His comments came after the Bank of England stepped in to buy U.K. bonds Wednesday. The BOE’s announcement “is the right thing to do, of course, but it seems ludicrous that it has had to act in this way,” said Green. The International Monetary Fund warned the U.K. government over its plan for tax cuts and spending, saying such is likely to increase inequality and add to pressures pushing up prices.

Read a Barron’s headline today: “Things are starting to break. But the Fed and BOE aren’t done hiking.”

The key outside markets today see Nymex crude oil prices slightly firmer and trading around $82.50 a barrel. Meantime, the yield on the 10-year U.S. Treasury note is rising and presently fetching 3.836% after rising above 4.0% overnight. The 2-year Treasury note yield is 4.4%.

U.S. economic data due for release Thursday includes the weekly jobless claims report, the third estimate of second-quarter GDP, and revised corporate profits.

–Jim

U.S. STOCK INDEXES

December S&P 500 e-mini futures: Prices are lower in early U.S. trading. Bears have the solid near-term technical advantage amid a price downtrend in place on the daily bar chart. The 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 is below 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 3,751.25 and then at 3,800.00. Support for active traders is seen at the overnight low of 3,677.25 and then at the contract low of 3,613.00. Wyckoff’s Intra-day Market Rating: 4.0

December Nasdaq index futures: Prices are lower in early U.S. trading. Prices remain in a downtrend on the daily bar chart. Shorter-term moving averages (4- 9-and 18-day) are bearish early today. The 4-day moving average is below the 9-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 11,613.50 and then at 11,796.00. On the downside, shorter-term support is seen at the June low of 11,135.00 and then at 11,000.00. Wyckoff’s Intra-Day Market Rating: 4.0.

U.S. TREASURY BONDS AND NOTES FUTURES

December U.S. T-Bonds: Prices are solidly lower in early U.S. trading. Prices are in a seven-week-old downtrend on the daily bar chart and bears have the solid advantage. 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 early today. Shorter-term technical resistance is seen at the overnight high of 127 9/32 and then at Wednesday’s high of 127 28/32. Shorter-term support lies at the overnight low of 125 22/32 and then at the contract low of 123 30/32. Wyckoff’s Intra-Day Market Rating: 3.5

December U.S. T-Notes: Prices are solidly lower in early U.S. trading. Prices are in a seven-week-old downtrend on the daily bar chart and bears have the solid technical advantage. 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 early today. Shorter-term resistance lies at the overnight high of 112.21.0 and then at this week’s high of 112.30.0. Shorter-term technical support lies at the overnight contract low of 111.20.5 and then at 111.00.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 3.5

EURO CURRENCY

The December Euro currency futures are slightly lower in early U.S. trading. Bears have the strong 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 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 this week’s high of .9808 and then at .9900. Shorter-term support is seen at the overnight low of .9690 and then at the contract low of .9592. Wyckoff’s Intra Day Market Rating: 4.0

NYMEX CRUDE OIL

November Nymex crude oil prices are slightly firmer in early U.S. trading. Bears are in technical control. The shorter-term moving averages 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 (RSI and slow stochastics) are bullish early today. Look for buy stops to reside just above technical resistance at $83.00 and then at $85.00. Look for sell stops just below technical support at $80.00 and then at $78.00. Wyckoff’s Intra-Day Market Rating: 5.5

GRAINS

U.S. grain futures were firmer overnight. On tap today is the weekly USDA export sales report. Risk aversion in the marketplace is keeping the grain market bulls tentative. Corn, wheat and soybean market bulls still have the slight overall near-term technical advantage. However, if the stock and financial markets continue in bearish turmoil, such could signal tops are in place in the grain markets. Traders are also awaiting the quarterly USDA grain stocks and small grains summary reports on Friday morning.

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, September 28–Jim Wyckoff’s Morning Markets Report

Global stock markets were mostly lower overnight. U.S. stock indexes are pointed to modestly lower openings when the New York day session begins and at or near for-the-move lows. The marketplace was somewhat assuaged overnight when the Bank of England made a surprise announcement that it will begin purchases of U.K. government bonds in order to stabilize the rattled U.K. bond market. The International Monetary Fund said the U.K. government should re-examine its stated plan to stimulate its economy through massive borrowing and bond sales.

The key outside markets today see Nymex crude oil prices firmer on a corrective rebound after hitting a seven-month low Monday and are trading around $79.00 a barrel.

The U.S. dollar index is higher and hit another 20-year high today. A Barron’s headline today reads, “The greenback has gone ballistic.” The strong U.S. dollar is putting serious pressure on the currencies of many smaller countries, which is very worrisome to those who endured currency crises of past decades. The main concern is a general marketplace contagion developing if secondary currencies dislocations and illiquidity spill over into extreme anxiety and lack of confidence in the global financial transactions system. The Chinese yuan hit a record low against the U.S. dollar today. Major economies have taken steps over the years to prevent another global financial market crisis, but when everyone runs for the exit doors at once, even robust systems can be over-run. Any investment bank or big hedge fund that appears to be in trouble may provide the first clue of a much bigger problem developing. Such a scenario would likely prompt a bigger into the hard assets, safe-haven gold and silver.

Meantime, the yield on the 10-year U.S. Treasury note is rising and presently fetching 3.896% after rising above 4.0% overnight. The 2-year Treasury note yield is 4.4%.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, pending home sales and the weekly DOE liquid energy stocks report.

–Jim

U.S. STOCK INDEXES

December S&P 500 e-mini futures: Prices are lower and hit a contract low in early U.S. trading. The 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 is below 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 3,733.00 and then at 3,783.25. Support for active traders is seen at the overnight contract low of 3,613.00 and then at 3,550.00. Wyckoff’s Intra-day Market Rating: 4.0

December Nasdaq index futures: Prices are lower and hit a 3.5-month low 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. 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 this week’s high of 11,568.25 and then at 11,796.00. On the downside, shorter-term support is seen at the June low of 11,135.00 and then at 11,000.00. Wyckoff’s Intra-Day Market Rating: 4.0.

U.S. TREASURY BONDS AND NOTES FUTURES

December U.S. T-Bonds: Prices are near steady in early U.S. trading and hit a contract low overnight. Prices are in a seven-week-old downtrend on the daily bar chart and bears have the solid advantage. 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 technical resistance is seen at 127 even and then at 127 even. Shorter-term support lies at the overnight contract low of 123 30/32 and then at 123 even. Wyckoff’s Intra-Day Market Rating: 4.5

December U.S. T-Notes: Prices are higher in early U.S. trading on a corrective bounce after hitting a contract low overnight. Prices are in a seven-week-old downtrend on the daily bar chart and bears have the solid technical advantage. 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 bullish early today. Shorter-term resistance lies at Tuesday’s high of 112.01.5 and then at this week’s high of 112.22.5. Shorter-term technical support lies at the overnight contract low of 110.19.0 and then at 110.10.0. 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 and hit a contract low in early U.S. trading. Bears have the strong 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 and 18-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 .9700 and then at this week’s high of .9770. Shorter-term support is seen at the overnight contract low of .9592 and then at .9550. Wyckoff’s Intra Day Market Rating: 4.0

NYMEX CRUDE OIL

November Nymex crude oil prices are a bit firmer in early U.S. trading, on a corrective bounce after hitting a seven-month low Monday. Bears are still in technical control. The shorter-term moving averages 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 (RSI and slow stochastics) are neutral to bullish early today. Look for buy stops to reside just above technical resistance at $80.00 and then at $81.00. Look for sell stops just below technical support at this week’s low of $76.25 and then at $75.00. Wyckoff’s Intra-Day Market Rating: 5.5

GRAINS

U.S. grain futures were mixed overnight. Risk aversion in the marketplace is keeping the grain market bulls very tentative. Corn, wheat and soybean market bulls still have the overall near-term technical advantage. However, if the stock and financial markets continue in bearish turmoil, such could signal tops are in place in the grain markets. Traders are awaiting the quarterly USDA grain stocks and small grains summary reports on Friday morning.

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, September 27–Jim Wyckoff’s Morning Markets Report

Global stock markets were mixed to firmer overnight. U.S. stock indexes are pointed to higher openings when the New York day session begins, on corrective bounces from recent solid losses. The Dow Jones Industrial Average on Monday slipped into bear market territory, which is defined by a drop of 20% or more from the recent high.

The key outside markets today see Nymex crude oil prices firmer on a corrective rebound after hitting a seven-month low Monday and are trading around $78.00 a barrel. The U.S. dollar index is lower on a corrective pullback after hitting a 20-year high Monday. Mike Wilson, Morgan Stanley’s noted market analyst, said the rise of the greenback has created an “untenable situation” for risk assets around the globe and that the risk for a financial market crisis is elevated.

Meantime, the yield on the 10-year U.S. Treasury note is rising and presently fetching 3.821%. The 2-year Treasury note yield is 4.248%.

U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and chain store sales indexes, durable goods orders, the monthly house price index, the S&P Case-Shiller home indexes, the Richmond Fed business survey, the consumer confidence index and new residential sales.

–Jim

U.S. STOCK INDEXES

December S&P 500 e-mini futures: Prices are firmer in early U.S. trading, on a corrective rebound after closing at a contract low close on Monday. The 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 is below 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 Monday’s high of 3,730.00 and then at 3,783.25. Support for active traders is seen at the contract low of 3,657.00 and then at 3,650.00. Wyckoff’s Intra-day Market Rating: 6.0

December Nasdaq index futures: Prices are higher in early U.S. trading, on short covering following recent losses. Shorter-term moving averages (4- 9-and 18-day) are bearish early today. The 4-day moving average is below the 9-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 last Friday’s high of 11,600.25 and then at 11,796.00. On the downside, shorter-term support is seen at the June low of 11,135.00 and then at 11,000.00. Wyckoff’s Intra-Day Market Rating: 6.0.

U.S. TREASURY BONDS AND NOTES FUTURES

December U.S. T-Bonds: Prices are higher in early U.S. trading, on a corrective rebound after hitting a contract low on Monday. Prices are in a seven-week-old downtrend on the daily bar chart and bears have the solid advantage. 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 bullish early today. Shorter-term technical resistance is seen at 128 even and then at Monday’s high of 128 31/32. Shorter-term support lies at the contract low of 125 24/32 and then at 125 even. Wyckoff’s Intra-Day Market Rating: 5.5

December U.S. T-Notes: Prices are solidly higher in early U.S. trading on a corrective bounce after hitting a contract low on Monday. Prices are in a seven-week-old downtrend on the daily bar chart and bears have the solid technical advantage. 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 bullish early today. Shorter-term resistance lies at Monday’s high of 112.22.5 and then at 113.00.0. Shorter-term technical support lies at the contract low of 111.00.5 and then at 110.24.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 6.0

EURO CURRENCY

The December Euro currency futures are firmer in early U.S. trading. Bears have the strong 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 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 .9770 and then at .9800. Shorter-term support is seen at the contract low of .9609 and then at .9550. Wyckoff’s Intra Day Market Rating: 5.5

NYMEX CRUDE OIL

November Nymex crude oil prices are firmer in early U.S. trading, on a corrective bounce after hitting a seven-month low Monday. Bears are still in technical control. The shorter-term moving averages 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 (RSI and slow stochastics) are neutral 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 Monday’s low of $76.25 and then at $75.00. Wyckoff’s Intra-Day Market Rating: 5.5

GRAINS

U.S. grain futures were firmer overnight, on corrective “Turnaround Tuesday” reversals from Monday’s price action that are common in the grain markets. Still, risk aversion in the marketplace will keep the grain market bulls tentative. Corn and soybean market bulls still have the overall near-term technical advantage. Wheat bulls have the slight overall near-term technical edge. However, if the stock and financial markets continue in bearish turmoil, such could signal tops are in place in the grain markets.

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, September 26–Jim Wyckoff’s Morning Markets Report

The global marketplace is experiencing very rough waters Monday, in a continuation of keen risk-off trading attitudes seen late last week. U.S. and/or global economic recession worries are rising rapidly. Global stock markets were mostly lower overnight. U.S. stock indexes are pointed to lower openings and near last week’s three-month lows when the New York day session begins. The Wall Street Journal today reported this year has been the worst year since 1930 for a “buy-the-dips” strategy in U.S. stock trading and investing. FOREX volatility and rising government bond yields are in the spotlight Monday.

The U.K.’s big plan to sell more government bonds in an effort to finance better economic growth has helped to prompt a rout in global government bond markets. “The bond vigilantes are back and the British pound is the target,” read a Barron’s headline today.

Broker SP Angel in an email dispatch this morning said gold saw a “minor flash crash” overnight. “The metal continues to get hammered” by the U.S. dollar. Foreign exchange volatility is rising, with the British pound passing its record low in 1984 and presently trading around $1.04 to the dollar. The Chinese yuan is nearing 2008 lows. “Traders are ramping up short positions on gold, with fund managers more bearish on the metal than any other time over the past four years, according to a Bloomberg report. Rising U.S. Treasury yields have been a major headwind to the gold and silver markets. “Gold ETF outflows continue, with holdings near their 2-year lows,” said the broker.

The key outside markets today see Nymex crude oil prices weaker, hitting a seven-month low and trading around $78.25 a barrel. The U.S. dollar index is higher and pushed to another 20-year high in early U.S. trading. Meantime, the yield on the 10-year U.S. Treasury note is rising and presently fetching 3.673%. The 2-year Treasury note yield is 4.285%.

U.S. economic data due for release Monday includes the Chicago Fed national activity index and the Texas manufacturing outlook survey.

–Jim

U.S. STOCK INDEXES

December S&P 500 e-mini futures: Prices are lower and near last week’s three-month low in early U.S. trading. The 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 is below 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 3,718.25 and then at 3,750.00. Support for active traders is seen at last week’s low of 3,660.25 and then at the June low of 3,657.00. Wyckoff’s Intra-day Market Rating: 4.0

December Nasdaq index futures: Prices are weaker and near last week’s three-month low 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. The 9-day average is below the 18-day. Short-term oscillators (RSI, slow stochastics) are bearish early today. Shorter-term technical resistance is seen at Friday’s high of 11,600.25 and then at 11,796.00. On the downside, shorter-term support is seen at the June low of 11,135.00 and then at 11,000.00. Wyckoff’s Intra-Day Market Rating: 4.0.

U.S. TREASURY BONDS AND NOTES FUTURES

December U.S. T-Bonds: Prices are lower and near last Friday’s contract low in early U.S. trading. Prices are in a seven-week-old downtrend on the daily bar chart and bears have the solid advantage. 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 technical resistance is seen at the overnight high of 128 31/32 and then at 130 even. Shorter-term support lies at the contract low of 126 29/32 and then at 126 even. Wyckoff’s Intra-Day Market Rating: 4.0

December U.S. T-Notes: Prices are solidly lower and near last week’s contract low in early U.S. trading. Prices are in a seven-week-old downtrend on the daily bar chart and bears have the solid technical advantage. 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 the overnight high of 112.225.0 and then at 113.00.0. Shorter-term technical support lies at the contract low of 111.25.0 and then at 111.16.0. Sell stops likely reside just below those levels. Wyckoff’s Intra-Day Market Rating: 3.5

EURO CURRENCY

The December Euro currency futures are lower and hit another contract low in early U.S. trading. Bears have the strong 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 and 18-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 the overnight high of .9770 and then at .9800. Shorter-term support is seen at the overnight contract low of .9609 and then at .9550. Wyckoff’s Intra Day Market Rating: 3.0

NYMEX CRUDE OIL

November Nymex crude oil prices are lower and hit a seven-month low in early U.S. trading. The shorter-term moving averages 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 (RSI and slow stochastics) are bearish 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 the overnight low of $77.21 and then at $76.00. Wyckoff’s Intra-Day Market Rating: 3.0

GRAINS

U.S. grain futures were weaker overnight. Keener risk aversion in the marketplace early this week is once again squelching the grain market bulls. Corn and soybean market bulls still have the overall near-term technical advantage. Wheat bulls have the slight overall near-term technical edge and have restarted price uptrends on the daily charts. However, if the stock and financial markets continue in bearish turmoil in the coming weeks (remember, September and October can be a historically rocky period for stocks, bonds and currencies), such could signal tops are in place in the grain markets. On tap today is the weekly USDA grain export inspections 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