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Jim Wyckoff's Morning Report: Markets Await Federal Reserve Report - TheCropSite
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Jim Wyckoff's Morning Report: Markets Await Federal Reserve Report
TheCropSite GLOBAL - The Federal Reserve's FOMC minutes' release on Wednesday afternoon is the economic report highlight of the day. As usual, the report will be parsed and will be closely scrutinized for clues on future U.S. monetary policy direction. A main ... |
From Forbes.com
Gold Near Steady Ahead of Wed. P.M. FOMC Minutes
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The FOMC minutes report is the economic highlight of the day for the market place. As usual, the report will be parsed and will be closely scrutinized for clues on future U.S. monetary policy direction. A main question among many market watchers is specifically when the Fed will implement its first interest rate rise in many years. The last FOMC minutes report was met with a yawn by the market place, with very little change in wording in the statement.
In overnight news, the German government auctioned its two-year note (the Schatz) at a zero percent yield, amid strong investor demand. This underscores the keener risk aversion still in the market place, especially in the European Union, where slow to negative economic growth and very low inflation are serious concerns. It was also reported that German producer prices fell 0.1% on the month and were down 0.8% on the year in July.
Traders and investors are awaiting this week’s annual Kansas City Federal Reserve meeting in Jackson Hole, Wyoming, that begins on Thursday. The confab of world central bankers has in the past yielded important U.S. monetary policy speeches and clues to the direction of monetary policy. Fed Chair Janet Yellen and ECB President Mario Draghi are scheduled to speak on Friday in Jackson Hole.
Other U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey and the weekly DOE liquid energy stocks report.
Wyckoff’s Daily Risk Rating: 6.0 (The market place is only somewhat focused on the still-simmering geopolitical matters: the Russia-Ukraine crisis, Iraq and the Gaza strip.)
(Wyckoff’s Daily Risk Rating is your way to quickly gauge investor risk appetite in the world market place each day. Each day I assess the “risk-on” or “risk-off” trader mentality in the market place with a numerical reading of 1 to 10, with 1 being least risk-averse (most risk-on) and 10 being the most risk-averse (risk-off), and 5 being neutral.
The London A.M. gold fix is $1,294.50 versus the previous P.M. fixing of $1,296.50.
Technically, gold bulls and bears are on a level near-term technical playing field. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at that August high of $1,324.30. Bears’ next near-term downside breakout price objective is closing prices below solid technical support at the August low of $1,281.00. First resistance is seen at $1,300.00 and then at this week’s high of $1,304.90. First support is seen at the overnight low of $1,292.40 and then at $1,289.00.
December silver futures bears have the firm near-term technical advantage as prices Tuesday hit a two-month low. A six-week-old downtrend is in place on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $20.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at $19.00. First resistance is seen at this week’s high of $19.765 and then at $20.00. Next support is seen at Tuesday’s low of $19.425 and then at $19.25.
By Jim Wyckoff, contributing to Kitco News;
Follow me on Twitter @jimwyckoff