Any fool can get into a market. It's the real trading pros that know when and how to get out.

- Jim Wyckoff

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Hello Fast Break readers. I've been an occasional contributor to this FutureSource platform for many years. I enjoy showing you some of my work and I hope you enjoy and benefit from it. Today, I want to show you part of my latest Daily Markets Update report from Monday afternoon. I do a brief, mostly technically oriented, analysis of all the major markets traded in the U.S. You can check out the key near-term technical support and resistance levels on the markets you are trading. Also, make sure to check out my exclusive "Wyckoff's Market Rating" system, whereby I distill many technical and fundamental factors into one scale of 1 to 10. You can read more about my rating system below.
--Jim Wyckoff

Jim Wyckoff's Daily Markets Update for Monday--Ag Commodities

LIVESTOCK: August live cattle closed down $1.50 at $102.30 today. Prices gapped lower on the daily bar chart, hit a fresh three-week low and closed near the session low today. More profit taking from recent gains was featured today. Bearish "outside markets"--lower grains, crude oil and a firmer U.S. dollar--pressured the cattle today. To find out how these and other markets are interrelated visit www.tradertech.com. No serious chart damage has occurred during the recent declines. However, strong follow-through selling pressure on Tuesday would likely begin to produce some chart damage. The bulls do still have the near-term technical advantage, but have faded a bit. The bulls' next upside price objective is to push prices above solid resistance at $103.55, which would fill on the upside today's downside price gap. The next downside technical objective for the bears is pushing and closing prices below solid technical support at $101.00. First support is seen at today's low of $102.05 and then at $101.50. First resistance is seen at $103.00 and then at today's high of $103.45. Wyckoff's Market Rating: 6.5.

August feeder cattle closed down $0.55 at $111.02 today. Prices closed nearer the session low today and scored a bearish "outside day" down on the daily bar chart. Bulls are fading. The next upside price objective for the feeder bulls is to push and close prices above solid technical resistance at $113.00. The next downside price objective for the bears is to produce a close below solid support at $110.00. First resistance is seen at $111.50 and then at $112.00. First support is seen at today's low of $110.60 and then at $110.00. Wyckoff's Market Rating: 5.5.

August lean hogs closed down $0.62 at $70.32 today. Prices closed near the session low today. Serious near-term technical damage has been inflicted recently. Bears still have downside technical momentum amid weak cash hog market fundamentals, including lower cash hog prices recently. The next upside price objective for the bulls is to push prices above solid chart resistance at $72.35, which would fill on the upside a big downside price gap on the daily bar chart. The next downside price objective for the bears is pushing and closing prices below solid technical support at last week's low of $70.20. First resistance is seen at $71.00 and then at today's high of $71.25. First support is seen at $70.20 and then at $70.00. Wyckoff's Market Rating: 1.5.

GRAINS: December corn futures closed down the 30-cent trading limit at $7.47 today. Beneficial growing weather in the Corn Belt and more in the forecast is deemed bearish for corn today. Bearish "outside markets" that included lower crude oil prices and a firmer U.S. dollar also hit the corn market today. To find out how these and other markets are interrelated visit www.tradertech.com. No serious chart damage occurred today as prices are still in a sideways trading range at higher price levels. A close below solid chart support at the July low of $7.35 3/4 would begin to produce some near-term chart damage. Importantly, this week (the week after the Fourth of July holiday) is historically one of the more important trading weeks of the year. Existing price trends can accelerate or be halted in their tracks. Bears did get a good jump today. Corn bulls do still have the overall near-term technical advantage. The bulls' next upside price objective is to push and close prices above solid technical resistance at $7.80. The next downside price objective for the bears is to push and close prices below solid support at $7.35 3/4. First resistance for December corn is seen at $7.50 and then at $7.55. First support is seen at $7.40 and then at $7.38. Wyckoff's Market Rating: 7.0.

November soybeans closed down the 70-cent trading limit at $15.61 today. Profit-taking pressure hit the market today after prices hit a fresh contract high and all-time high last week. No serious chart damage occurred today. Bearish Corn Belt weather and bearish "outside markets" that included lower crude oil prices and a firmer U.S. dollar also pressured the soy complex today. Importantly, this week (the week after the Fourth of July holiday) is historically one of the more important trading weeks of the year. Existing price trends can accelerate or be halted in their tracks. Bears did get a good jump today. Bulls still have the solid near-term technical advantage. The next upside price objective for the bean bulls is to push and close prices above solid resistance at the contract high of $16.36 3/4 a bushel. The next downside price objective for the bears is pushing and closing prices below psychological support at $15.00. First resistance for November soybeans is seen at $15.79 and then at $16.00. First support is seen at $15.50 and then at $15.40. Wyckoff's Market Rating: 7.5.

December soybean meal closed down the $20.00 limit at $409.00 today. For more information on soybean meal and other markets visit www.TraderQuotes.com . Profit taking from recent gains was seen today after prices last week hit a fresh contract and all-time high. No chart damage occurred today. The next upside price objective for the bulls is to produce a close above solid technical resistance at last week's contract high of $429.00. The next downside price objective for the bears is pushing and closing prices below solid support at $390.00. First resistance comes in at $412.50 and then at $415.00. First support is seen at $405.00 and then at $400.00. Wyckoff's Market Rating: 7.5.

December bean oil closed down 249 points at 66.49 cents day. Prices closed near the session low today. Profit taking was featured and no serious chart damage occurred today. Bean oil bulls have the near-term technical advantage and gained more momentum today. A three-month-old uptrend is in place on the daily bar chart. The next upside price objective for the bean oil bulls is pushing and closing prices above solid technical resistance at today's high of 68.45 cents. Bean oil bears' next downside technical price objective is pushing and closing prices below solid support at 65.00 cents. First resistance is seen at 67.00 cents and then at 68.00 cents. First support is seen at 66.00 cents and then at 65.00 cents. Wyckoff's Market Rating: 7.0.

December Chicago SRW wheat closed down 51 1/2 cents at $8.58 3/4 today. Prices closed near the session low and hit a fresh four-week low today. Bearish "outside markets"--lower crude oil and a firmer U.S. dollar--helped to pressure wheat today. Bears have gained the near-term technical advantage as prices have backed off sharply from the late-June high. To find out about this market and how other markets are interrelated visit www.tradertech.com. Bulls' next upside price objective is to push and close December futures prices above solid technical resistance at today's high of $9.05 a bushel. The next downside price objective for the bears is pushing and closing prices below solid technical support at $8.00 a bushel. First resistance is seen at $8.77 and then at $9.00. First support lies at today's low of $9.50 1/2 and then at $8.35. Wyckoff's Market Rating: 4.5.

December K.C. HRW wheat closed down 50 1/2 cents at $8.84 1/2 today. Prices scored a big and bearish "outside day" down on the daily bar chart today. Bears have regained the near-term technical advantage. The bulls' next upside price objective is pushing and closing prices above solid technical resistance at $9.50 a bushel. The bears' next downside objective is pushing and closing prices below solid technical support at $8.50. First resistance is seen at $9.00 and then at $9.20. First support is seen at today's low of $8.78 and then at $8.50. Wyckoff's Market Rating: 4.5.

Understanding "Wyckoff's Market Rating System"

My Daily Markets Update displays the exclusive "Wyckoff's Market Rating System" for each market. I distill risk, probability, technical indicators, fundamental analysis and many other factors in determining these ratings. This simple system can be your quick key to how all the markets are trending (if they are) on a longer-term and shorter-term basis.

How it Works

Wyckoff's Market Rating System is based on a scale of 1 to 10, with 1 being the most bearish market rating and 10 being the most bullish market rating. The number 5 would be a neutral rating. And it is not uncommon to see fractions used -- like 1.5, 3.5, etc. -- if conditions warrant.

It's important to note that just because a market is rated as very bullish (8 or above), it does not mean I want to establish a fresh long position in that market. A high rating likely means a market has been trending higher for a sustained period of time, or has already seen a quick, powerful move that could mean a "correction" is near. An 8 or higher bull market is likely a more mature one -- with the risks being higher for steeper setbacks and a more volatile topping process.

Similarly, a market rated as very bearish (2 or below) does not indicate you should rush out to establish a fresh short position and sell a market. It means a market has likely been in a longer-term downtrend, or has seen a quick and powerful down-move, and is at or near its contract low. It is a more mature bear market that has a higher risk of a corrective bounce higher, or even changes in trend to sideways to higher.

Markets rated 4 to 6 are in the middle, and these are the markets I watch most closely, on a shorter-term basis, for trading opportunities. They are usually characterized by more of a "sideways" and choppier trading range on the daily chart, or have just backed well off from a recent up-trend high or have moved well up from a recent downtrend low.

Importantly, markets that have been in sideways trading ranges for a while -- i.e., non-trending and then move to either a rating of 5.5 to 6.5 on an upside price move, or to 4.5 to 3.5 on a downside move -- are the most critical to monitor on a daily chart basis. It's at these ratings levels that most trading "set ups" occur, based on my trading philosophy and experience. It's at these ratings which are just above or just below neutral (5) that most "breakouts" from trading ranges occur. But remember, the market has to have been trading generally (but not always) sideways beforehand, for the best trading opportunities to present themselves.

Here's an important reminder. My Wyckoff's Market Rating System is not and should not be used as a "stand-alone" trading system. But it can be a valuable trading tool in your "Trading Toolbox."

In today's global economy, markets drive and influence each other. Still, many traders are only analyzing a single market at a time and ignoring related markets. VantagePoint Trading Software uses intermarket analysis to predict market trends for over 600 world markets with nearly 80%* accuracy. As an added bonus traders can also receive a complimentary Forex EBook, along with their complimentary market forecast provided by VantagePoint. Go here now to receive both.