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BOOK YOUR FREE STRATEGY SESSION NOW >>Among the most interesting events of the week is the rise of two markets that have shown great weakness in recent months: bonds (rebounding for the second week in a row) and metals.
The fluctuations in currency futures are also impressive, with movements of up to 2% that are rare to witness in these markets.
In addition, the bearish movement of equity indexes, especially U.S. indexes, persists, and volatility still remains quite high in this sector.
To learn more about how the markets are moving and the volatility trend, don't miss our weekly overview!
Enjoy the video!
Hey everyone and welcome back! One of the coaches at Unger Academy here and today we're going to be talking, as usual, about this week's market developments.
So, another busy week in the markets, marked by volatility, especially for the equity indexes. You can see in this chart that the Nasdaq is close to the recent lows, with both short-term and long-term volatility at the 100th percentile. You can also see this from the standard deviation trend.
So, -3% for the Nasdaq, -2.20% for the Mini S&P, both at key levels.
Better the European stock exchanges, which remained stable, the Eurostoxx and the Dax which was slightly positive. However, you can see that the performance of the European stock exchanges in this period was better than the performance of the American stock exchanges. Of course, the volatility in the long term also turned out to be lower.
As for bonds, we see a rebound. This is the second week in a row, something that we haven't seen in quite some time, so it's definitely a good signal. Let's see if it is indeed a stop sign for the downtrend in bond markets.
On to energy, and we have +2.5% for Crude Oil. +5% for Natural Gas, which is still very close to the recent highs. Instead, Gasoline and Heating Oil recorded downturns.
On the other hand, Metals registered an upward trend. It had been many weeks since these underlying assets went down. Now there seems to be an upswing. However, this doesn't change the fact that they were among the weakest sectors this past year.
As for the meat market, Lean Hogs recorded +4.20 percent.
+4.70% for Sugar. Soft commodities have been doing quite well in this last period. Cotton continued to be close to the highs that it recently touched.
Then we have Grains, where there continues to be pressure on Wheat, although it only moved 0.3% this week. Soybean Meal rose 4.70% instead, which as you can see, has had a decent bullish week, it almost looks like a trend reversal.
Finally, to report that all currencies are going strong against the dollar. In particular, we see Euro-Dollar reached a value of 1.0562 today. These are generally movements of a certain magnitude, because almost a 2% on currencies, such as the Australian Dollar or the British Pound, for example, is certainly not a common thing.
Finally, Bitcoin. It essentially remained unchanged this week. It's in this trading range at the moment, so it's consolidating around a value of $30,000. We'll see what happens next and whether it can recover from this nasty slide that sent it down from 38,000 to a low of 26,000.
Let's take a look at the implied volatility trend. These are the volatility indexes on the SPX and you can see that little has changed since last week. The term structure seems to want to go back into contango, However this is a mixed situation, it isn't very clear to be honest, and is in the making.
We see that the Vix currently has a value of 28.64. This is a situation to be monitored closely, because it isn't clear and could, if the key levels we've seen on the U.S. exchanges break, lead to further volatility in the markets.
Let's turn to the rollover calendar for the coming week, which as you can see is quite busy. We have the rollover on energy futures. We've already rolled over Crude Oil, so we will roll over Natural Gas on the 23rd, followed by Heating Oil and Gasoline on the 25th.
After that, also on the same day, rollovers for Bitcoin and Ethereum.
Also, on the same day all bonds, so all bond futures from two years to 30 years.
Also on the same day, rollover for Gold Future, and finally on the following day, the 26th, rollover for Live Cattle and Lean Hogs.
Well, guys, before we say goodbye, I'd like to leave you with a tip. You're interested in systematic trading? Take a look at the link in the description below. You'll be able to attend a free presentation by Andrea Unger, who will introduce you to his method, which has enabled him to win the world championship of real money trading 4 times. In addition, by covering only the shipping costs you can get the best seller "The Unger Method" or register for a free strategy session with one of our tutors.
That's it for this week!
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Have a great weekend. I will see you all 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.
