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BOOK YOUR FREE STRATEGY SESSION NOW >>Among the week's most important events was the collapse of Natural Gas, which recorded strongly negative returns in both America and Europe.
On the positive side, however, we have the equity indexes, where we continue to see high volatility levels, especially in the medium to long term.
Noteworthy movements also for some commodities, primarily Orange Juice, which has reached new all-time highs this week.
To learn more about how the markets are moving and the volatility trend, don't miss our weekly overview!
Enjoy the video!
Hey welcome back everyone. One of the coaches at Unger Academy here, and today, as we do every weekend, we’re going to be talking about what happened on the markets this week.
Okay, so guys, I’d say that it’s been an eventful week in the markets.
We had several asset classes that have had really remarkable returns this week.
But let's start, as usual, with the stock indexes.
We see that they are all positive. There was a strong move at the beginning of the week, and it fell back a little over the following days.
At the moment, though, the Nasdaq continues to gain more than 3%.
The Mini S&P 500 is up by +2.36%.
European stock exchanges also performed well, although they lagged slightly behind.
Volatility is undoubtedly still pretty high, especially medium- to long-term volatility.
However, I think that we’ll probably have to get used to these values because we’re objectively in a period where volatility is higher and probably will remain higher for some time.
Speaking of volatility, let's move on and let's go and take a look at what happened in the bond market.
The T-Bond lost over 4% this week. And you know, that’s I mean, that's really a very, very big move, of course.
The 10-year bonds, so the U.S. Treasury Notes and the German Bund, have performed a little bit better, but they’re also showing negative 5-day returns.
On the other hand, as far as the energy market is concerned, wow! Natural Gas is down -21%!
That’s really a remarkable drop, and interestingly enough, it didn't occur just in U.S. Natural Gas but also in European Natural Gas, which, as we know, has reached really incredible peaks in the last few months.
I'll show it to you in a moment…. Here it is. From the highs of almost €350 per megawatt hour, we are down to €113.13.
You think about it, I mean, that’s certainly a positive aspect in terms of a hopefully positive future development of the economy.
Because we know how much this commodity can impact energy costs and the economy, of course, I mean, the economy in general.
As for Crude Oil, on the other hand, we have slightly positive five-day returns, and the same goes for RBOB Gasoline.
-5% instead on Heating Oil.
The metals sector is positive this week, with Silver gaining +3.75%.
Other than that, not much else to report.
Moving on to the meat market, Lean Hogs’ prices continue to climb, it's more than +6% at the moment.
The soft commodity market is also characterized by high volatility levels.
Orange juice, in particular, has broken through all highs this week. So now it's at an all-time high with a five-day gain of +7.33%.
Then we have Cotton, which is down almost 6% right now—so high volatility in this market as well.
And the same goes for the Grains sector, where Soybean Oil, in particular, is performing very well, gaining +8.70% right now.
The other futures in this sector didn’t move as much.
Let’s turn now to the currency market and take a look at the Euro-Dollar future.
Euro-dollar is currently worth 0.9827, if you think… I mean, that's recovering slightly from last week.
We had also seen a recovering British Pound last week. However, this week, it is unchanged.
And we also see that the Australian Dollar it's up +1.84% against the US Dollar, while instead, the Yen is still very weak.
As far as cryptocurrencies are concerned, and in particular Bitcoin, well, we have slightly negative returns.
We’re still in the usual range. So, there’s really not much to report on the cryptocurrency sector other than the fact that they’ve been moving sideways for several months now.
So let's also take a look at the implied volatility trend. Here we can see the term structure of the S&P 500 Volatility Indexes.
The structure is back in contango, as you can see. And yeah, volatility is down slightly from last week, so there isn’t much to report right now.
Contango is the typical market structure that occurs when traders aren’t particularly concerned about the performance of the stock indexes.
However, it’s true that we’re in contango, but it’s also true that the value of the Vix remains relatively high compared to the range of values that it’s taken over the last six months.
So, in summary, we can say that it seems that this volatility situation is now becoming a little bit structural, meaning that we’ll probably have to get used to high volatility regimes in the upcoming months.
Anyway, let's go and take a look at the rollover schedule, the rollover calendar. Several rollovers scheduled for next week.
Starting on October 24, we have Orange Juice and Natural Gas.
Followed by Feeder Cattle, Soybeans, Heating Oil, and Gasoline on October 26.
And finally, cryptocurrencies: Bitcoin and Ethereum also on October 26.
Okay, guys! Before I say goodbye, I want to leave you with some advice. If you’re interested in systematic trading, I suggest that you go and look at the link in the description of this video. From there you can watch a free presentation by Andrea Unger, the only four-time world trading champion in real-money trading, who will introduce you to his trading method, which allowed him to achieve these incredible results.
And from there, you can also get a free copy of our best-selling book "The Unger Method," covering only the shipping costs, or book yourself for a free strategy consultation with a member of our team.
And with that, guys, that is it for today and for this week!
Just a reminder: please don't forget to subscribe to our channel and leave us a Like if you enjoyed this video.
I wish you a great weekend, and we will see you again next week! Bye-bye for now!
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.
