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BOOK YOUR FREE STRATEGY SESSION NOW >>Among the most important events of the last week is the continuation of the bullish movement of equity indexes, which show positive 30-day returns, and the decline of some commodities that have a great impact on inflation (energy and grains).
In addition, the values of the Vix future, also known as the "fear index," continue to remain at rather low levels compared to the peaks reached during 2022, and combined with the general market trend and volatility behavior, give us hope for a positive turnaround.
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 we're going to be looking at what happened last week in the financial markets.
Okay, so let's start with the stock markets, the stock indexes, which are showing signs of an upward trend this week. Today is slightly negative at the moment but let's wait and see how it will close later.
The top performer is the Nasdaq, with approximately +1.50%. Unchanged or almost unchanged was the Mini S&P 500. The European stock exchanges performed well, in particular the DAX, which posted +1%.
Taking a look at the Mini S&P 500, we see that it’s close to an important level that will probably not be easy to break through. However, over the past few weeks, the stock markets have indeed shown signs of moderate strength. So, let's follow them closely because the evolution could be interesting.
Bonds have also shown some strength so far because they’ve rebounded quite a bit. But this week, as you can see, they all show negative returns.
In this chart, we see the T-Bond is currently losing almost 2%. It's also true that the bond indexes have also risen quite sharply from their lows. There seems to almost be a change in underlying sentiment.
Let's now turn to the energy market which has shown signs of weakness this week. Specifically, RBOB gasoline declined almost 10%.
Crude Oil also recorded -9.78%, so an equally significant decline, and Heating Oil also dropped by -8.58%.
Natural Gas however fared somewhat better and remained at particularly high levels. Now we know that tensions on this commodity are related to the conflict that is still going on between Russia and Ukraine.
As for metals, we have got mixed returns this week. We have a rise in Platinum, a decline instead for Silver, and Gold has remained stable.
The Meat market also went up, but not particularly sharply.
And we have mixed returns on soft commodities as well. Specifically, Orange Juice, which rose by +4.68%, which is close to its recent highs.
Other declines were seen in the Grains market. Specifically, it's interesting to see the performance of Wheat, which, after the rise related to the conflict between Russia and Ukraine, has now returned to price levels that were recorded before the outbreak of the war.
That's a positive aspect because, as we all know, it's a commodity and in general, you can link this to the decline that we're seeing in all commodities, agricultural and particularly energy commodities, excluding perhaps Natural Gas.
In parallel, we're also witnessing a rebound in bonds and equities, and so, overall, it's a positive picture, especially because of the tensions tied to inflation and which, as we know, have encouraged central banks to raise their rates.
So, this could be a sort of return towards normality. We will only discover this, of course, in the near future.
Finally, let's turn to currencies. Here again, we saw fairly large declines, because we know that generally, the volatility of these underlying assets is more limited than in other commodities.
Let's just take a look at the Euro-Dollar: 1.02. And the strength of the US Dollar against all other currencies is quite obvious here.
Finally, let us turn to Bitcoin, which loses about 3% this week. It's currently at a value of 23,270. A small bullish reaction seems to be underway. There's still a long way to go to recover the highs of the beginning of the year. And the cryptocurrency sector is certainly not yet out of the crisis it is experiencing.
Regarding volatility, we do see quite low volatility in the short term, as is normal, because we've seen a rebound in the stock indexes. While, on the other hand, in the long term we are at average values.
Let's also take a look at the volatility term structure. Currently it is in full contango, so in a situation of normality and absence of tension that is promising for the future performance of the stock indexes.
The Vix is also currently at significantly low values compared to the past six months.
Alright, let's now take a look at the rollovers scheduled for next week. We have Cocoa, Coffee and the Vix futures. Specifically, we'll have to rollover Cocoa on the 8th and Coffee and the Vix futures on the 10th.
I'd just like to remind all of you that are interested in systematic trading, you've got an opportunity to learn from one of the best traders in the field, you have at your disposal a link through which you will be able to access a free presentation by Andrea Unger, the only 4-time world champion in real-money trading, who will introduce you to his trading method. You'll also be able to get the best seller "The Unger Method" covering only the shipping costs… and so much more. Take my advice, go and check it out!
Guys, that's all for today!
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With that, have a fantastic weekend! We will see you next week, 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.
