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BOOK YOUR FREE STRATEGY SESSION NOW >>After a long bearish period, stock indexes finally showed signs of recovery last week, posting positive 5-day returns of about 2-3 percentage points. The energy sector also performed very well, with positive returns for both Crude Oil and its derivatives (especially Heating Oil with +23%).
The recovery in Metals continues, while on the other hand, there are no signs of a reversal of the downtrend in Bonds, which continue to be influenced by central bank interest rate policies.
Want to learn more about how the markets are moving and the volatility trend this week? Then don't miss this video!
Enjoy!
Hey everyone, and welcome back to our brand-new video! One of the coaches at Unger Academy here, and this is our usual chat about market trends that we have on the weekend about the previous week.
Okay, so how did the markets perform this week? Well, first of all, we do see some green signs.
We haven't seen those signs in quite a while. And I'd point out that we've even seen two consecutive days of gains of over 3% each this week, which is certainly worth noting.
Over the last two or three days the market has declined to some extent, but in spite of that, five-day returns on the stock indexes are still positive.
You see it, Nasdaq is up +2.75%.
The Mini S&P is up +3,10%.
The Eurostoxx is up +2,20%.
Dax is up +1,90%.
Volatility – historical volatility, I mean – obviously remains pretty high in these markets, both in the short term and the long term.
Of course, that also depends on these fluctuation ranges, these daily fluctuations, which are larger than the average.
But for now let's turn to the bond market now. And also this week, we can only see negative five-day returns for these markets.
I mean, this sector is clearly going through a strong downtrend. And we don't see any positive returns at either one week, one month, three months, or even a year.
So, the trend in the bonds market is definitely bearish.
Of course, this is largely due to the policy on interest rates that's being pursued by the Fed, I mean, mainly by the Fed but also by all the other central banks in tow.
So for the time being, this market remains very weak, and there’s no signs of a reversal in this bearish trend.
On the other hand, the energy market performed very well, with sky-high returns, particularly on Heating Oil, with approximately +23% this week.
A good week for Crude Oil too, with a +12%. And we also see a +13% for Gasoline.
Fortunately, however, the price of Natural Gas remained essentially unchanged from last week.
Positive 5-day returns for the Metals as well. As you know, the metals market has not been one of the strongest markets since the beginning of this year.
However, they are performing quite well this week, I mean, look at that, a gain of +7.5% for Silver and a nice +8.66% for Platinum.
On the other hand, there isn’t much to report in the Meat market, except for a 2.70% gain in Lean Hogs.
As for the soft commodities market, it is showing some mixed returns.
Sugar is on a strong uptrend, with a +4% gain.
While, on the other hand, we see some negative returns for Cotton, which is currently close to its recent lows.
Turning to the Grains market, we see a nice rise in Bean Oil, which rose by +7% this week.
As for all the other commodities in the Grains market, they've been pretty weak.
Wheat, for example, is down -3.50%.
On to currencies. The strength of the US Dollar continues. Let's take a look at the Euro/Dollar exchange rate. We are at 0.9810 right now, a little lower than last week, a -0.50%.
Overall, apart from the Canadian dollar, we can say that the US Dollar is still going strong against all other currencies.
And finally, let's go and take a look at Bitcoin, which is virtually unchanged this week, +0.92%, and still at the support level that it has held for the last three months.
Let's take a look at the term structure of implied volatility.
As you can see, not much has changed since last week. The term structure is currently in a compression phase. I mean, we can't say that it's in contango but, at the same time, we can't either say that it's in backwardation.
The values of the volatility indexes with different maturities have more or less the same value.
As for the Vix, the values are medium-high compared to the range of the last three months.
Nevertheless, it seems that at the moment, the term structure doesn't show any signs of excessive concern from traders.
On to the rollover schedule.
You can see that we'll have very little to do next week.
The only rollover is for the Vix futures and is scheduled on October 12.
Well guys, finally, if you are interested in systematic trading, we have some very interesting resources for you.
If you click on the link in the description of this video, you can access a free presentation by Andrea Unger, the only four-time world champion in real-money trading, who will introduce you to his trading method.
Clicking on that link, you can also book a free strategic consultation with one of our tutors or get our best-selling book, "The Unger Method," by covering only the shipping costs. So please do yourselves a favor, take advantage of it!
And that is it for today guys! Thank you so much for watching.
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And that is it! I wish you a very fantastic weekend! A very fantastic weekend? Have a great weekend, I will see you soon! Bye-bye!
We'll help you map out a plan to fix the problems in your trading and get you to the next level. Answer a few questions on our application and then choose a time that works for you.
BOOK YOUR FREE STRATEGY SESSION NOW >>Andrea Unger here and I help retail traders to improve their trading, scientifically. I went from being a cog in the machine in a multinational company to the only 4-Time World Trading Champion in a little more than 10 years.
I've been a professional trader since 2001 and in 2008 I became World Champion using just 4 automated trading systems.
In 2015 I founded Unger Academy, where I teach my method of developing effecting trading strategies: a scientific, replicable and universal method, based on numbers and statistics, not hunches, which led me and my students to become Champions again and again.
Now I'm here to help you learn how to develop your own strategies, autonomously. This channel will help you improve your trading, know the markets better, and apply the scientific method to financial markets.
Becoming a trader is harder than you think, but if you have passion, will, and sufficient capital, you'll learn how to code and develop effective strategies, manage risk, and diversify a portfolio of trading systems to greatly improve your chances of becoming successful.
