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BOOK YOUR FREE STRATEGY SESSION NOW >>Bullish week for almost all markets. Except for bonds, which posted minimal losses, the other financial sectors all showed positive 5-day returns.
Among the most exciting events is the clearing by the Nasdaq and the Mini S&P 500 of a particularly resistant price level and the reversal of the trend in metals, which, after many months of difficulty, finally seem to be on the road to recovery.
Also of note is the slight recovery of the Euro and other currencies against the US Dollar and the rise of energy markets, with Natural Gas close to all-time highs.
To learn more about how the markets are moving and the volatility trend, don't miss our weekly overview!
Enjoy the video!
Hey everyone, welcome back! One of the coaches at Unger Academy here, and this is the usual chat we have on the weekends to discuss the market trends over the past week.
Okay, this week we have a clear predominance of green signs, as you can see from our indicators, a sign that, after all, the entire market has moved to the upside.
In this chart, we can see the Nasdaq, which went up by 1.22%. The Mini S&P is up almost 2%. And both broke through an undoubtedly significant resistance that wasn't easy to exceed.
And European stock exchanges also did well, the Eurostoxx up by +1% and the Dax up by +1.36%.
Let's now turn to the bond market. The T-bond dropped by 1.75%. This isn't always the case, but when equity indexes go up fairly sharply, it's common to see a decline in bonds, so nothing new in that respect.
The 10-year bond did slightly better, with a -0.76%, while the German Bund did a -0.90%. However, they still seem pretty in tune with the upward trend.
Concerning energy, Natural Gas is still very close to all-time highs, which is a problem for the whole energy sector. We know how much it weighs on the economy, especially in Europe, because of the conflict between Russia and Ukraine. And unfortunately, this commodity shows no sign of returning to pre-crisis levels.
However, not only Natural Gas went up. RBOB Gasoline also posted a +3.50% rise, Heating Oil up by +2.70%, Crude Oil up by a +1.30%.
The metals market also went up. We see a +7% for Platinum. So, it seems quite in tune with the uptrend and here there has certainly been a clear reversal of the trend. Gold rose up +1.80%, Copper up by +5.23% right now. And this is a market that has certainly been among the weakest in the last year.
As for Meats, Lean Hogs increased by +4.70%.
Soft commodities also went up. Specifically, Cotton went up by +9% this week, so a nice upward spike. Likewise, Cocoa recorded a +5% rise.
The Grains sector is also in a strong bullish trend. Specifically, Bean Oil rose +11% over the last five days. Wheat is also showing signs of recovery, but from the highs touched at the peak of the crisis, namely the conflict between Russia and Ukraine, we now have prices that are definitely at much lower levels, comparable to those before the outbreak of the war.
Turning now to currencies, we do see a very slight recovery. The Euro has recovered against the US Dollar and now stands at 1.0275. Overall, the US Dollar in the last five days has been losing ground against other currencies, particularly the Australian Dollar.
Bitcoin shows slight signs of recovery—a modest bullish trend if you will. The cryptocurrency sector is still in the midst of a crisis, and Bitcoin, among all cryptocurrencies, has held up a little bit better during this ugly downturn, making only a +1.23% over the past week.
Historical volatility shows a relatively sharp contraction in the short and the long term. So, we're returning to volatility levels more in keeping with the levels we usually see on stock indexes.
Looking also at the volatility term structure, we see now a complete contango structure with Vix at very low levels, which means that there is currently no disturbance in the market about the future performance of stock indexes.
Let's take a look now at the upcoming rollovers. Next week we'll only roll over Crude Oil futures, on August 17. Then the following week, we'll have a series of rollovers, mainly Orange Juice, Natural Gas, Bitcoin and Ethereum, on August 24th. And then Feeder Cattle, Corn, Copper, Silver, Wheat, Heating Oil and Gasoline. And lastly, all the U.S. bonds.
So, watch out for the following week because there will be several rollovers.
Okay, guys, with that I'd like to remind everyone who's interested in systematic trading that by clicking on the link in the description, you can access a free presentation by Andrea Unger, who will introduce you to his trading method, with which he managed to win the World Cup Trading Championship 4 times. So, take advantage of it, go and check it out, because through this link you can also get, by covering just the shipping costs, the best seller "The Unger Method" and so much more.
Guys, that's all for today. If you like this video, I invite you to please subscribe to our channel, click on the notification bell and leave us a Like.
Thank so much for watching. Have a fantastic weekend. I will see you soon in our next video! 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.
