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Jim Wyckoff's Morning Report: European Stocks Weaker on Monday

09 September 2013
Jim Wyckoff Commentary -  TheCropSite

GLOBAL - European stocks were weaker Monday on jitters regarding a potential U.S. military strike against the Syrian regime.

The G-20 meeting in Russia ended over the weekend. The main focus was President Obama’s efforts to line up support for U.S. military action against the Syrian regime. His efforts
had mixed results at best. Obama will make a televised speech on the matter Tuesday. The U.S. Congress this week will also debate and likely vote on the issue. The market place is still jittery regarding a potential U.S. military strike against Syria, mainly due to the reaction of other
countries, such as Russia, China and Iran, should the U.S. take action. China during the weekend reported strong exports during August, at up 7.2% on an annualized basis.

Strong Chinese import levels for August were also reported, at up 7.0% year on year. Consumer inflation in China rose 2.6% in August, year on year, which was in line with expectations. China industrial production figures are due out Tuesday. There was also strong GDP data coming out of
Japan Monday. Asian stocks were lifted on the upbeat economic data coming out of the region. Traders and investors are already looking ahead to next week’s meeting of the U.S. Federal Reserve’s Open Market Committee (FOMC). 

Last Friday’s weaker than expected U.S. jobs report did not really shed any fresh light on whether the Fed might start to “taper” its monthly bond-buying program sooner or later. Still, it appears a slight majority of the market place believes the U.S. central bank at next week’s meeting will
announce it will begin to scale back its quantitative easing. U.S. economic data due for release Monday is light and includes the employment trends index and consumer installment credit.

US Dollar Index

The September U.S. dollar index is slightly lower early today. Bulls and bears are on an overall level near-term technical playing field. Slow stochastics for the dollar index are bearish early today. The dollar index finds shorter-term technical resistance at the overnight high of 82.550 and then at 82.795. Shorter-term support is seen at last week’s low of 82.300 and then at 82.000. Wyckoff's
Intra Day Market Rating: 5.0

NYMEX Crude Oil

October Nymex crude oil prices are weaker early today, on a corrective pullback from strong gains posted on Friday. Crude bulls still have the overall near-term technical advantage amid the Syria tensions. In October Nymex crude, look for buy stops to reside just above resistance at Friday’s high of $110.70 and then at $111.00. Look for sell stops just below technical support at $109.00 and then at $108.00. Wyckoff's Intra-Day Market Rating: 4.5


Markets were mixed overnight, with corn and wheat weaker and soybeans firmer. Soybean bulls are maintaining their technical advantage. Corn and wheat bears remain in firm technical command. While the weather forecasts for the U.S. Corn Belt still call for very warm and dry conditions in
the region in the next few days, it appears the late-summer weather market has played out in the grain futures markets— at least for now. It appears yield damage to the crops has already been mostly factored into present prices. For grain market prices to gain more upside in the near term, some new fundamental news will have to occur.

TheCropSite News Desk

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