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BOOK YOUR FREE STRATEGY SESSION NOW >>This week we witnessed several price movements of some magnitude. Among the most volatile instruments were the energy markets and, in particular, Natural Gas, which closed with a 5-day return of -25%. It was also a bearish week for U.S. equity indexes and bonds, whose recent bullish movement seems to have stalled. Positive returns, on the other hand, for most commodities.
To learn more about how the markets are moving and the volatility trend, don't miss our weekly overview!
Enjoy the video!
Hello everyone, welcome back! One of the coaches at Unger Academy here, and this is our usual chat that we have every weekend about the market trends over the past week.
Okay, so it’s been a pretty volatile week for several asset classes.
I’m referring, for example, to equity indexes or energy markets and even some soft commodities. But let's go in order.
Let’s start with the Nasdaq, which is down -2.89% right now, and it's on the verge of hitting the lows of the last few months again.
Also down is the Mini SP 500, -0.98% at the moment.
European stock markets remain slightly up, and, as we know, they've been outperforming U.S. stock markets lately.
Volatility is quite low for stock indexes. It’s gone up in the short term but if we look at volatility over a more extended period, namely, over a year, we'll see levels that are quite moderate, all things considered.
Things also went badly in the bond market, which had given us high hopes last week.
But right now the T-Bond is down by almost -3%.
-1.50% for the 10-year U.S. bond.
And take a look at the 10-year European bond. It's reaching the lows of the last few months again.
In contrast, the energy market is very buoyant this week.
We’re seeing Crude Oil is up by 7%.
And RBOB Gasoline also up this week, +9%.
On the other hand, Natural Gas is surprisingly down -25% in five days. This is really a remarkable plunge.
The overall Metals sector has done well.
Silver and Platinum are up +2%.
And as far as the Meat market is concerned, we have a +9% in Lean Hogs, which represents a trend of some significance.
The soft commodities market’s showing positive signs, except for Orange juice. But we know that Orange juice is now very close to its all-time high, so we can say that it's in a retracement phase right now.
Cocoa is up +6%. And we know that it’s broken the highs that it had reached recently.
Sugar is also going up, and the same goes for Coffee, which is recovering and has gained +4.83% this week.
Alright, let's turn to Grains, not much to report except for a gain of +4.64% for Bean Oil. Moreover, I just remind everyone that next week we'll have to rollover the futures of Soybean and its derivatives.
On to the currencies, we see the Japanese Yen is up by +2.50%, so really a remarkable trend for a currency, while the Euro-Dollar is more or less at the level of the previous week.
As for cryptocurrencies, Bitcoin continues in the doldrums. It was a bad week for this market as well as for all cryptocurrencies in general actually.
As expected, and as has been said many times before, this is a market that’s going through a deep crisis because of what is going on, what's happening on the various exchanges and because of the rumors that are circulating at the moment about the Binance exchange and the possible problems that this exchange could still have.
Let’s just take a look now at the implied volatility and the volatility term structure, which is represented in this chart by the volatility indexes on the SPX.
So we have a term structure that’s still in contango despite the bearish movements of the markets, and that in itself is a good sign and means that there’s no panic among market participants at the moment.
If we also look at the VIX, we find it at a low level compared to the levels it reached in the last nine months, and we see that it's essentially unchanged from last week.
Alright, let’s now turn over to the Rollover Calendar. As you can see, there are several rollovers ahead for next week.
Starting on the 26th, we'll have to rollover Feeder Cattle.
Soybean and its derivatives follow on the 27th, so Soybean Oil and Soybean Meal futures.
We have Platinum for metals and Heating Oil and Gasoline for energy futures.
And then finally, on the 28th, we've got Bitcoin and Ethereum.
Alright, everyone, I’m going to leave you with some advice. If you’re interested in systematic trading, I have a very interesting resource for you. I’ll leave the link in the description of this video. It’s a free presentation by Andrea Unger that introduces you to his trading method, the Unger Method, which helped him win the world championships in real-money trading four times.
From that same link you'll also be able to get our best selling book "The Unger Method” by covering only the shipping costs, or even book go and book yourself for a free call with a member of our team.
And that's it for today guys!
If you liked this video, please leave us a like and subscribe to our channel!
And finally, I'd like to wish you all a very Merry Christmas and look forward to seeing you next week! Have yourselves a great time and remember, stay safe! We'll 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.
