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BOOK YOUR FREE STRATEGY SESSION NOW >>One of the most important events of the week was the release of inflation data, which caused some large movements in the stock market on Thursday. Volatility is still fairly high, with the Vix over 24 points, but the term structure remained in contango.
Another interesting event is the slowdown of the energy sector, with very low or even negative 5-day returns (Natural Gas lost 15% in just 5 days).
On the other hand, cryptos are back on the upswing, with Bitcoin surpassing the $40,000 mark and thus moving away from the support level around which it has gravitated for some time.
For more on how markets have moved over the past few days, from stock indexes and bonds to commodities and currencies, check out our weekly overview!
Enjoy the video! 😎
Hey everyone, one of the coaches of Unger Academy here, and welcome back to the usual chat we have every weekend about the trends of the markets.
Okay, as you know, last week, we had pretty high volatility levels, and we might say that they continued to be quite high this week as well. If you take a look at the 5-day returns of the two main US stock indexes, namely the Nasdaq and the Mini S&P 500, you'll see that they are slightly negative, with returns of -0.3% and -1.5%, respectively.
This week, there were some abrupt movements in the markets - especially on Thursday - due to the release of the data about inflation, which caused some large movements.
As for the European indexes, they were finally able to recover slightly compared to their performance at the start of the week. In fact, both the Dax and the EuroStoxx gained more than 2-2.5%.
The bonds sector is once again negative, and this applies to both the American and the European bonds. We see that the Bund lost a -0.5% and the 30-year American bond went down by -1%.
The entire energy sector has slowed down its upward run, which has been going on for several weeks. So the 5-day returns of these markets are now very low. Crude Oil is slightly negative, whereas Natural Gas fell sharply, losing as much as 15% in just one week.
On the other hand, the metals sector was positive, with the only exception of Platinum.
The entire meats sector was also rising, and these markets have been making very good returns.
Ups and downs for the soft commodities, in particular for Coffee, which had two very positive days but now is going through a small downward retracement.
We see that the cereals sector is also very positive.
Now let's take a look at the currencies. We see that after last week's strong rally, the Euro-Dollar had a much calmer week. And the same goes for the British Pound and other currency pairs.
Finally, let's move on to cryptocurrencies, which seem to have been slightly recovering in the last 5 days. In fact, Bitcoin is now back above $40,000.
Now let's take a look at the volatility term structure. As you can see, despite the presence of the market movers, the term structure has remained in contango. However, the Vix is still at medium-high levels, with values that exceed 24 points.
Finally, let's check out the rollovers to perform next week. On Wednesday, 16 of February, we'll have to roll over Crude Oil. Then Natural Gas will follow. And then on next Friday, so Friday 18, we'll also have to roll over the Sugar future.
And with that, our weekly overview of the markets is over. If you're interested in investing in markets with a systematic trading approach, just like we do here at the Unger Academy, we have an interesting resource for you: it's a link we're going to leave you in the description of this video.
The link will take you to a page where you'll be able to access a free presentation by Andrea Unger, who will introduce you to the world of systematic trading. You'll also be able to get a free copy of our best-selling book, "The Unger Method", covering only the shipping costs.
And finally, if you want, you'll also be able to book a call with one of our tutors to get a free strategy session.
Before saying goodbye, as always, I ask you again to please leave a Like for this video, if you enjoyed it of course, and to subscribe to our channel to stay updated on the release of all our new videos.
Greetings to all of you and I 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 >>Hi, I'm Francesco Placci, a professional trader since 2005 thanks to the systematic approach to the markets.
My skills range from trading on index futures to bonds, from stocks to commodities, with a particular focus on volatility and options, which I consider to be among the most versatile and fascinating instruments available to traders.
After an experience with leading Italian credit institutions where I learned the basics of institutional finance, I became a successful independent trader, with great personal satisfaction.
Founder of Algoritmica.pro, in 2019 I joined Unger Academy as head of Research and Development.
