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Jim Wyckoff's Morning Report: Markets Jittery Amid Syria Concerns

03 September 2013
Jim Wyckoff Commentary -  TheCropSite

GLOBAL - The markets are a bit jittery Tuesday amid continued US saber-rattling against Syria. Russian news agencies reported overnight that two missiles were launched in the Mediterranean Sea.

Those reports caused European stock markets to shudder and gold prices to briefly rally. However, it appears the U.S. is still only considering striking Syria with its military power, as President Obama
will go to Congress to get its approval for military action.

The U.S. Labor Day holiday saw U.S. markets closed Monday. Now, as U.S. traders come back to work they have a full plate of events that lie just ahead.

The important U.S. jobs report is out on Friday. The Bank of England and European Central Bank hold their monthly monetary policy meetings on Thursday.

There is a Group of 20 nations meeting this week. The U.S. congress returns from its summer recess in mid-September and will immediately have to deal with pressing budget matters.

There is an FOMC meeting in September, at which time many believe the U.S. Fed will decided to change its monetary policy. And, it’s likely that President Obama early this fall will name a new Federal Reserve chairman.

Raw commodity markets saw some good news Monday when upbeat Chinese manufacturing data was released.

Chinese officials this week said their country’s annual economic growth target of 7.5% will be met. There was also positive manufacturing data coming out of the European Union on Monday. Both
European Union and China economies have seen a string of mostly better-than-expected economic reports recently.

U.S. economic data due for release Tuesday includes the U.S. manufacturing PMI, construction spending, the IDB/TIPP economic optimism index, the ISM manufacturing report on business, and the global manufacturing PMI.--Jim

U.S. Dollar Index

The September U.S. dollar index is higher and hit a fresh four-week high in early U.S. trading. Bulls have near-term technical momentum on their side.

Slow stochastics for the dollar index are bullish early today. The dollar index finds shorter-term technical resistance at the August high of 82.610 and then at 82.750. Shorter-term support is seen at the overnight low of 82.280 and then at 82.000. Wyckoff's Intra Day Market Rating: 6.0

NYMEX Crude Oil

October Nymex crude oil prices are weaker early today on more corrective downside pressure after hitting a more than two-year high last week. Crude bulls still have the overall near-term technical advantage.

However, the bulls may have become exhausted with last week’s big push higher in prices. In October Nymex crude, look for buy stops to reside just above resistance at $108.00 and then at $109.00.

Look for sell stops just below technical support at $106.00 and then at $105.00. Wyckoff's Intra-Day Market Rating: 4.5


Markets were higher overnight, with soybeans leading gains at sharply higher values. While there was a weekend respite from the hot and dry weather in the U.S. Corn Belt, with cooler temps and scattered rains, the weather forecasts call for the next week to once again be hot and dry in the

That is fully bullish for soybeans and also bullish corn. The late-summer weather market continues play out in the grain futures markets. Wheat remains overall technically bearish, but is following corn.

TheCropSite News Desk

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