Weekly Market Recap – January 21, 2022

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Weekly Market Recap – January 21, 2022

The news of the week, in addition to the ongoing pandemic coverage, the weather, and the economy, is now also focused on Russia’s plans concerning Ukraine.

Martin Luther King Jr. Day shortened the business week, which saw a shorter than usual list of economic statistic reports. These, compared with prior levels, were: NAHB home builders index 83 vs. 84, building permits 1.87 million vs. 1.72 million, housing starts 1.70 million vs. 1.68 million, existing-home sales 6.18 million vs. 6.48 million, and leading economic indicators +0.8% vs. +0.7%. Weekly initial jobless claims rose to 286,000 vs. 231,000 in the previous report.

The three stock market indices we track in this recap all took a dive this week. The S&P 500 and the NASDAQ Composite each had their greatest weekly percentage losses since March 2020: the former closed at 4,397.94 (-5.7%) and the latter ended at 13,768.92 (-7.6%). The Dow Jones Industrial Average had a 4.6% setback (its largest drop since June 2020), going out at 34,265.37 on Friday. Volatility exploded by 50.3% from the previous Friday, as the CBOE VIX booked a close of 28.85 points. FX markets nudged up the dollar as higher U.S. Treasury rates continue to attract currency investors; the U.S. Dollar index rose to 95.63 (+0.5%). Commodity inflation continues, as the S&P GSCI portfolio climbed to 608.88 at the week’s end (+2.0). This basket of major physical commodity futures has more than doubled since the coronavirus pandemic began.

In metals futures, all six of the contracts we cover showed strength. The settlements and corresponding percentage increases were: gold at $1,831.80 (+0.8%), silver at $24.320 (+6.1%), platinum at $1,035.10 (+7.3%), palladium at $2,104.30 (+12.0%), copper at $4.5240 (+2.3%), and aluminum at $3,040.50 (+2.2%). Aluminum last traded above $3,000 per metric ton in mid October.

Most of the energy futures on our radar ended in the black for the week. WTI crude closed at $85.14 (+2.2%), and Brent rose to $87.89 (+2.1%). Refined products also increased, with heating oil settling at $2.6912 (+2.2%) and RBOB gasoline at $2.4424 per gallon (+1.0%). Natural gas ended in the red at week’s end, sliding 6.2% to $3.999 per mmBtu. Again, weather forecasts influenced traders as the consensus for nat gas consuming regions reverted to seasonal average temperatures.

Six of the nine agricultural products we monitor moved higher and three of them decreased. Soybeans gained 3.2% to $14.14¼ per bushel, and corn firmed 3.4%, going out at $6.16¼. Wheat rallied to $7.80 (+5.2%). Coffee fell to $2.3790 per pound (-0.7%), sugar bounced 3.2%, ending the week at 18.90¢/lb., cocoa declined 3.1% to $2,576 per ton, and cotton crept up to 120.75¢/lb. (+0.9%). Livestock futures were mixed, as live cattle contracts slipped slightly to 137.925 (-0.04%), while lean hogs led the ag markets on our list by soaring 6.6% to an 86.200 settlement price, their highest trading level since last August.

 

Futures Referenced in Market Recap

Exchange Commodity Contract Month
CME Live Cattle February
CME Lean Hogs February
CBT Soybeans March
CBT Corn March
CBT Wheat March
ICE Coffee March
ICE Cocoa March
ICE Sugar March
ICE Cotton March
ICE Brent Crude March
NYMEX WTI Crude March
NYMEX ULSD (Heating Oil) February
NYMEX RBOB (Gasoline) February
NYMEX Natural Gas February
NYMEX Platinum April
NYMEX Palladium March
COMEX Gold February
COMEX Silver March
COMEX Copper March
LME Aluminum 3 Mo. Forward

 

Current Standings​

2021 World Cup Championship of Futures Trading®
RANK NAME NET RETURN LOCATION
1 Stefano Serafini 223.7% Italy
2 Marek Chrastina 163.7% Slovakia
3 Allen Swiontek 125.1% USA
4 Jianzheng Li 123.6% USA
5 Marco Vironda Gambin 116.1% Italy

January 1, 2022 – May 19, 2022


2021 World Cup Championship of Forex Trading®​
RANK NAME NET RETURN LOCATION
1 Patrick Nill 107.6% Germany
2 K. Takegawa 74% Japan
3 Eik Baumgarten 67% Germany
4 Kenji Sasaki 60.2% Japan
5 Thomas Helling 54.4% Germany

January 1, 2022 – May 19, 2022


2020-2021 Global Cup Trading Championship​
RANK NAME NET RETURN LOCATION DIVISION
1 Kevin Stufflebeam 583.1% USA Futures
2 Antonio Ferlito 132.7% Italy Futures
3 Patrick Nill 94.5% Germany Forex
4 Brent Carlile 64.5% Netherlands Futures
5 Philipp Kozalla 64.1% Germany Futures

June 1, 2021 – May 19, 2022

Trading futures and forex involves significant risk of loss and is not suitable for everyone. Past performance is not necessarily indicative of future results. World Cup Championship (WCC ) accounts do not necessarily represent all the trading accounts controlled by a given competitor. WCC competitors may control accounts that produce results substantially different than the results achieved in their WCC accounts. WCC entrants may trade more than one account in the competition. CME Group is the trademark of CME Group, Inc. The Globe logo is a trademark of Chicago Mercantile Exchange, Inc.

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