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BOOK YOUR FREE STRATEGY SESSION NOW >>It was quite a positive week for both stock indexes and bonds. The best results were in the European market, where five-day returns were significantly better than in the U.S. indexes.
Also up were the Energy sector, driven by Gasoline and Heating Oil, and Bitcoin, which seems to have finally regained strength despite the recent drop in volatility.
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, as usual, you know what we're going to be doing, we’re going to be talking about what happened and what was of interest in the markets this week.
Okay, so I’d say that it’s been quite a positive week for the markets, especially for the European stock indexes, which are up more than 3%.
3.40% the Eurostoxx. 3.40% also the Dax. So, the European indexes have done quite well.
The Mini SP 500 performed quite well and is currently up 2%.
Nasdaq is slightly negative though, and for sure, of all the indexes, this market is the one that’s been the weakest lately, and we can see it clearly by looking at one-month returns.
At the same time that we’ve seen this rise in the markets, we’ve also seen an increase in bonds, which isn’t usual.
The T-Bond, in particular, moved up 2.20%.
And again, European bonds are outperforming the American bonds.
In particular, take a look at the 10-year German Bund is gaining 2.58% against the 10-year U.S. bond, which is gaining only +1.26%.
In the energy market, we can see it, a +10% increase in RBOB Gasoline, which is the most impressive performance among the oil derivatives this week.
Heating Oil is also performing exceptionally well at a +9%. And hey, don't forget, we did see it did a +30% in one month.
A little bit further behind, though, is Crude Oil.
On the other hand, we all know that Natural Gas has fallen significantly in the last three to four weeks. This week, however, it has resumed rising and went up by +4%.
As far as the Metals sector is concerned, the returns aren’t particularly noteworthy.
Among the metals futures that are going up the most is Platinum.
On the other hand, Gold remains pretty weak. We can see that this market has lost 0.44% this week, so it’s continuing to move in a typically bearish way.
As for the Meat sector, we have Lean Hogs, which lost -3.70%.
Conversely, in the weeks before, it had risen sharply.
Nothing else to report in the meats market.
So let's turn instead to the soft commodities, where we see several negative returns.
In particular, Coffee is down almost 7.5% this week, so this market is in a clear downward trend right now.
And Cotton, yeah, it also lost 7.32%.
On the other hand, Orange juice continues to climb and has broken this week's highs, again, albeit with a gain of only +2.95%.
As far as the Grains market is concerned, let's a take a look, yeah, only negative returns.
The biggest loser is Wheat, which is more or less at pre-crisis, or pre-war levels if you will.
Turning to the currencies, it’s interesting to note the performance of the British Pound, which has recovered 2.58% against the US dollar this week.
There has been much talk about its decline, but few address its remarkable rebound that has taken place over the past month.
The Euro-Dollar future is also gaining. And yeah, it's up by 1.28% this week and currently, it is hovering around parity at a value of 1.0015.
Let's move to Bitcoin, where finally, we can see some signs of life. Bitcoin went up by 7% in the last five days.
You can see, volatility is down sharply compared to its historical trend.
I mean, precisely because, as we know, it’s been moving sideways in this range, in this trading range, for several months now.
If we look at the volatility of the equity indexes, we see decreasing volatility in the short and long term, especially in the European indexes.
However, there is medium- to long-term volatility which remains higher for U.S. indexes.
Let’s now have a quick look at the volatility term structure, which is built using the volatility indexes on the SPX.
We’re in contango right now… Well, not in full contango, you know, but we do have the nine-day volatility that has higher values than the one-month Vix, but we’re basically in contango.
But the volatility remains relatively high compared to two or even three months ago.
However, if we look at a longer time frame, we find more or less a median value of the Vix in terms of the range that we had from March until now.
So, for the moment, traders don’t seem to be particularly concerned about the future performance of the equity indexes.
Let’s turn our attention now to the Rollover calendar.
I can already tell you that there will be no rollovers next week, so I will just report the first scheduled rollovers for the next weeks.
The first rollover will be Cocoa futures on November 8.
The Vix will follow on November 9.
And then finally, on November 10, there will be Coffee.
Okay guys, before I say goodbye, I want to give you some advice. If you’re interested in systematic trading, please go and check out the link in the description of this video.
Through this link, you will be able to watch a free presentation by Andrea Unger, who will introduce you to his trading method, the Unger Method, which he used to win the World Cup Trading Championships in real-money trading four times.
And also through the same link you'll also be able to get the best seller "The Unger Method," covering only the shipping costs, or even book yourself a free strategy consultation with one of our tutors.
Well, guys, that is it for today.
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That's it for this week! Have a great weekend and we will see you soon 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.
