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 >>In the last few days, we witnessed a general decrease in volatility, especially in short-term volatility.
In addition, the term structure of implied volatility of equity markets has stabilized in a well-defined contango situation, and this is very important because it denotes more tranquility.
Other important events of the week include the decline in energy futures related to Crude Oil, namely Gasoline and Heating Oil, while Natural Gas continues to rise.
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! I'm one of the coaches of Unger Academy and this is the usual chat that we have every weekend about the performance of the financial markets.
Okay, so what happened over the course of this week? I'd say that one of the most interesting news is the drop in the price of oil-related energy futures. Different story, however, for natural gas. And a general decrease in volatility on the markets.
But let's go in order. Starting with the equity indexes, we see a partially positive Nasdaq +0.50%. Mini S&P is at breakeven.
And a stronger recovery for the European stock exchanges, which had certainly suffered considerably more due to the current situation, namely the conflict between Ukraine and Russia.
We can see that short-term volatility, measured over a one-month horizon, is declining. So, we're seeing quite low percentile values compared to last month.
In the long term, however, volatility still remains quite high. And not only on the stock markets but also on other markets, especially on commodities, on bonds, and well, a little bit everywhere.
As far as bonds are concerned, there was a slight rebound in the T-Bond. During this week it gained 0.80%. Today isn't a good day. However, it has managed to rise from the lows.
As far as the energy market is concerned, as I was saying, there has been a drop in oil prices in the last 5 days. Consequently, there has been a decrease in oil derivatives such as Gasoline and Heating Oil.
Meanwhile, Natural Gas is still very high, which we find quite alarming. This is American Natural Gas. European Natural Gas is showing even more bullish trends and we know that this is a problem for the economy, for the cost of electricity and more generally for all economic sectors.
Turning now to metals, there's not much to say. Silver fell by almost 3% while Gold went down by 1%. Anyway, we do see that on a three-month horizon, they don't show noteworthy returns.
The meat market shows mixed returns.
Soft commodities are up slightly. Orange Juice is up by 2.45%. Almost a 3% gain for Coffee. And Cocoa up by +2%.
The Grain sector is all negative, which is also a good thing because having a -8% drop for Wheat, given the big increase due to the war, is surely something positive. And as Wheat drops, so do Soybeans, Corn, etc. So, this is good for the trend of these raw materials, which had reached excessive levels.
On the other hand, as far as currencies are concerned, we see that the Euro-Dollar has slightly recovered over the last week. So, the Euro is recovering against the Dollar. Whereas the Dollar is gaining strength against all other currencies.
Bitcoin... Bitcoin went up slightly this week, by just 2%. And we know that's really low for Bitcoin. Because we know how volatile cryptocurrencies can be. However, on the positive side, it has managed to remain above the trading range where it has been stationed for the past several months, so this could potentially be a positive signal.
Turning to the analysis of the volatility term structure, we saw a well-defined contango structure. And this is certainly a positive factor for traders. Because evidently, despite the ongoing war, the pressure and the fears for the future performance of the markets, I'm referring of course to the equity indexes, has subsided. So, this is a sign that the stock markets are becoming less nervous.
Let's move on to the rollover schedule. We have Cocoa and Coffee futures expiring, so next week, towards the end of the week, April 8, we'll be able to rollover on Cocoa and Coffee.
Well guys, before we say goodbye, I want to leave you with a tip. If there is someone among you who is interested in knowing a little more about systematic trading, I'll leave you a link in the description of this video. This link will take you to a presentation of Andrea Unger who will introduce you to his trading method, which has allowed him to achieve remarkable results in systematic trading, winning 4 times the World Championship of trading with real money. You can also get the best-seller book "The Unger Method" covering only the shipping costs, and you can even book a free strategic consulting session.
That's all for today.
I invite you to subscribe to our channel and leave a Like if you liked the video.
And will see you again 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 >>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.
