Weekly Market Recap – November 13, 2020

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Weekly Market Recap – November 13, 2020

In the Markets

Economic news for the week ending November 13th indicated a slight improvement in the employment statistics. The number is now 21.16 million unemployed compared with 21.53 million the previous week. New jobless claims came in at 709,000 vs. 751,000 from a week earlier. Consumer prices were unchanged for October (0.0%), after being 0.2% higher for September. The Producer Price Index rose 0.3%; September’s figure was 0.4% higher. The Treasury Department’s Federal budget report showed that the first month of the new fiscal year saw the deficit rise to $285 billion, more than double the prior month’s level ($100 billion) and up 37% from October 2019. The swelling budget gap is a result of expenditures intended to mitigate the effects of the coronavirus, coupled with plunging tax revenues. US coronavirus cases rose in all 50 states for the first time. On Friday, according to data from Johns Hopkins University, 184,514 Americans were reported infected, a record number for a single day.

Stock markets were buoyant again during the week. The promise of COVID-19 vaccine development on several fronts eclipsed the election’s aftermath for many investors. The DJIA rose 1,156.50 (+4.1%), to 29,479.90, an all-time high for an end-of-week close. Similarly, the S&P 500 increased 75.71 (+2.2%), ending the week at 3,585.15. Likewise, the Russell 2000 index staged another record high with its 8.07 up move (+6.1%) to a 140.14 final mark. The NASDAQ Composite, although ending on Friday down 65.94 (-0.6%) with its 11,829.29 settlement, registered an all-time high on Monday, when it hit 12,108.07 during the first hour of trading. With its year-to-date performance of +31.8%, the NASDAQ remains the leader of the pack among the benchmarks we cover here: S&P +11.0%, DJIA +3.3% and Russell 2000 +5.2%. Volatility in equities has ticked a bit lower, as the CBOE VIX ended at 23.10 with a 1.76 reduction (-7.1%); the lowest level since late August. In the currency market, the dollar was firmer as the spot US Dollar Index moved to 92.72, up 0.5%. The commodity barometer we track here, S&P’s GSCI, settled at 364.49, rising 14.88 (+4.3%) from the prior week.

Precious metals weakened, while industrial metals were in the plus column. In the precious sector, the most active contracts for gold, silver, platinum and palladium moved as follows: gold decreased by $65.50 (-3.4%) to $1,886.20, silver lost 8.87¢, to $24.775 (-3.5%), platinum eased $3.40 (-0.4%) to $896.00 and palladium retreated $170.30 (-6.8%) to $2,329.70 per troy ounce. In the base metals we monitor, CME copper added 2.40¢ (+0.8%), closing at $3.1780/lb. while LME three-month aluminum gained $30.50 (+1.6%), ending the week at $1,932, the highest it has been since December 2018, when it traded at $1,996 per metric ton.

On the charts, the petroleum complex gained upward momentum. NYMEX crude oil prices booked an increase, as December WTI ended Friday’s session at $40.13, which was up $2.99 (+8.1.%). ICE Brent gained $3.33 (+8.4%), settling at $42.78 per barrel. The per-gallon price for heating oil added 6.16¢ to close at $1.2042 (+5.4%), while RBOB gasoline gained 4.10¢ cents for the week, settling at $1.1254 (+3.8%). Colder forecasts in the natural gas heating-demand regions boosted January futures 10.7¢ higher for the week (+3.7%). Friday’s settlement was $2.995 per MMBtu.

In the agricultural commodity markets, the increases outweighed the decreases across the board. Corn, with its $4.10½ close, advanced 3¾¢ (+0.9%) for the week. Soybeans went out at $11.48 after rising 46½¢ (+4.2%). Wheat settled at $5.93½ per bushel, down 8½¢ (-1.4%). ICE US coffee added 2.30 to 109.25 (+2.2%). Cocoa, for the week, firmed $32 (+1.4%), closing at $2,365 per ton. Sugar kept rising, gaining 0.05 (+0.3%) to its 14.96 settlement. December cotton slipped 0.16¢ (-0.2%) to its 68.46 closing price. Livestock was mixed, as cattle futures rose 1.275 (+1.25%) to a 109.925 final print, while hogs coasted sideways (0.0%) ending the week at 64.900 for the December contract.


World Cup Trading Championships®

In Futures, Stefan Seibert held 1st with a 352.4% net return. Michael O’Keeffe remained in 2nd with a net return of 285.4%. Yuwen Cao remained in 3rd with a net return of 233.4%. Evgeny Kartashov and Brent Carlile rounded out the top 5 with net returns of 165.8% and 149.4% respectively.

In the Forex division, Patrick Nill held the top spot with a 248.3% net return. Raul Glavan moved up to 2nd with a 161.8% net return, with Sergey Shirko in 3rd with a net return of 157.7%. Jan Smolen and Scott Welsh rounded out the top 5 with net returns of 127.4% and 85.9% respectively.

In the futures division of the 2020-2021 Global Cup Trading Championship,  Stefan Seibert maintained first with a net return of 143.8%, with Cristian Franchi in 2nd with a 104.3% net return. 3rd place is currently held by Patrick Nill with a net return of 102.3%. Fernando C. Piñeiro and Adrian Koemel finished the week in 4th and 5th with 78.2% and 71.9% net returns respectively.

 

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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