UPDATED 7:05 ET

STOCKS - European stocks declined, paring their advance this week, as SAP AG slid after posting worse- than-forecast earnings and sales, outweighing gains by car makers. U.S. index futures slipped, while Asian shares rose.

BONDS – Treasury five-year notes were near the cheapest level since 2010 versus two- and 10-year securities amid speculation economic growth will lead the Federal Reserve to raise interest rates in 2015.

COMMODITIES – Soybeans extended their climb to the highest level in more than 10 months after a report showed record demand from U.S. mills, boosting concern that supplies from the world’s second-biggest exporter would be reduced.

CURRENCIES - The pound rose to the highest level in more than four years versus the dollar as Federal Reserve Chair Janet Yellen signaled the U.S. central bank will keep an accommodative monetary policy that has weakened the greenback.

UPDATED 7:23 ET

STOCKS – European stocks rose, rebounding from a three-week low, as companies from Tesco Plc to Syngenta AG reported financial results and as investors awaited American housing and industrial data. U.S. index futures and Asian shares also climbed.

BONDS – Treasuries fell, with 30-year yields climbing from the lowest level in nine months, as stocks rallied and economists said data today will show U.S. housing starts and industrial production both increased in March.

COMMODITIES – Crude Oil advanced before weekly U.S. inventory data.

CURRENCIES – The yen fell the most in two weeks against the euro after data showed China’s economic growth slowed less in the first quarter than analysts forecast.

ECONOMIC DATA – US Building Permits and Housing Starts due at 8:30, US Capacity Utilization Rate and Industrial Production due at 9:15, BOC Rate Statement at 10:00, Crude Oil Inventories at 10:30, BOC Press Conference at 11:15, Fed Chair Yellen Speaks at 12:15, US Beige Book at 14:00, BOJ Gov Kuroda Speaks 20:30 ET.

UPDATED 7:17 ET

STOCKS – European stocks declined, after yesterday’s advance, as investors weighed violence in eastern Ukraine and worse-than-forecast German confidence data. U.S. index futures and Asian shares were little changed.

BONDS – Treasuries hit resistance after several days of a bullish run.

COMMODITIES – Gold fell from a three-week high in London on speculation that signs of an improving U.S. economy will curb demand for a haven.

CURRENCIES – The dollar advanced for a third day against the euro before a U.S. report that economists said will show a gauge of manufacturing in the New York region increased in April.

ECONOMIC DATA – CAD Manufacturing Sales, US Core CPI m/m and Empire State Manufacturing Index due at 8:30, Fed Chair Yellen Speaks at 8:45, US TIC Long-Term Purchases at 9:00, NAHB Housing Market Index at 10:00, FOMC Member Plosser Speaks at 15:00, NZD CPI AT 18:45, CNY Industrial Production and GDP at 22:00 ET.

Explosive volatility ahead? The equity markets were down this past week with the NASDAQ leading the way with bearish momentum. As you can see from the S&P 500 chart below and as mentioned in last week’s report, technical price pattern illustrate a short-term downward trend inside of a larger term upward trend. Looking ahead the number one question leading into the week is how much further will the equity indices go? The set up suggest potential for exceptional volatility. This week we have a busy schedule with options expiration, first-quarter corporate earnings, important economic data and a short trading week due to holiday.

In the week ahead I will continue to focus on the benchmarks and watch carefully for rotation flow within the major asset classes including stock indices, treasuries, gold and currencies.
Volatility is knocking how will you answer?

S & P 500

Correlations within Major Asset Classes – Week Ending April 11, 2014

Joe Rios
Chief Market Strategist
www.riosquant.com

Live Rooms and Events
Please take note of this week’s schedule at a glance including key economic reports that might have an impact on the markets. Live trading rooms and educational events are also listed with the appropriate links for gaining access. While some of the events are free, others are for members only. Let us know if you have an interest and we will provide you with all the pertinent information.

Contact Information for your Support Needs:
Amber Little, RQ Client Relations Manager
email: amber@riosquant.com
skype: alittlemobile
cellphone: 415.336.7272

Live Trading Rooms and Events:
The Trading Room TradeLAB
Global Trading with Quantitative Technologies
Monday through Friday beginning at 7:30 AM ET
https://www3.gotomeeting.com/register/390021694
RQ trade coaches include Edward Preston, Steve Schwartz and Joe Rios. Live demonstration of our pre-market quantitative analysis, real-time trading signals with RQ algorithmic technology, strategy performance review and Q&A session.

Insider’s Quant (IQ) Room – Advanced Concepts with Joe Rios
Wednesday and Thursday beginning at 1:30 PM ET
Subscription Only!
_______________________________________________

The Trading Room EDU – Educational Workshop
Covering the Rios Quant Trading Indicators:
Tuesday beginning at 4:30 PM ET
https://www3.gotomeeting.com/register/571452526

Topic: Finding the Quant Side of the Market
Presenter: Steve Schwartz
Wednesday beginning at 7:30 PM ET
https://www3.gotomeeting.com/register/624218022
Topic: Next Big Swing – Learn the Entry and Exit Points for the GnosTICK Strategy
Presenter: Edward Preston
_______________________________________________

The RiosQuant 90 Day Trading Program – Workshop
Thursday beginning at 7:30 PM ET

https://www3.gotomeeting.com/register/354575974

Training Session 2 of 12 with Steve Schwartz
Topic: Is it Risk-ON (or) Risk-OFF?

MONDAY
Economic Data Release – Market Movers
EUR – Industrial Production – 5:00 AM ET
USD – Core Retail Sales – 8:30 AM ET
USD – Business Inventories – 10:00 AM ET
AUD – Monetary Policy Meeting Minutes – 9:30 PM ET

TUESDAY
Economic Data Release – Market Movers
GBP – CPI – 4:30 AM ET
EUR – German ZEW Economic Sentiment – 5:00 AM ET
USD – Core CPI – 8:30 AM ET
CAD – Manufacturing Sales – 8:30 AM ET
USD – Fed Chair Yellen Speaks – 8:45 AM ET
CNY – GDP and Industrial Production – 10:00 PM ET

WEDNESDAY
Economic Data Release – Market Movers
JPY – BOJ Gov. Kuroda Speaks – 12:15 AM ET
GBP – Claimant Count Change – 4:30 AM ET
USD – Building Permits and Housing Starts – 8:30 AM ET
USD – Industrial Production and Capacity
Utilization Rate – 9:15 AM ET
CAD – Overnight Rate and BOC Rate Statement – 10:00 AM ET
USD – Crude Oil Inventories –10:30 AM ET
CAD – BOC Press Conference – 11:15 AM ET
USD – Fed Chair Yellen Speaks – 12:15 PM ET
JPY – BOJ Gov. Kuroda Speaks – 8:30 PM ET

THURSDAY
Economic Data Release – Market Movers
CAD – Core CPI – 8:30 AM ET
USD – Unemployment Claims – 8:30 AM ET
USD – Philly Fed Manufacturing Index – 10:00 AM ET
USD – Natural Gas Storage – 10:30 AM ET

FRIDAY
Economic Data Release – Market Movers
NONE TO LIST – HOLIDAY

THERE IS A SUBSTANTIAL RISK OF LOSS IN TRADING COMMODITY
FUTURES, OPTIONS, AND FOREIGN EXCHANGE PRODUCTS

UPDATED 7:10 ET

STOCKS - European stocks fell for a third day, after completing their worst week in a month, as investors weighed increasing violence in Ukraine. U.S. stock-index futures were little changed, while Asian shares dropped.

BONDS - Treasury yields were near a six- week low as U.S. stock losses bolstered speculation the Federal Reserve will hold interest rates down and with unrest in Ukraine spurring demand for safety.

COMMODITIES – Commodities climbed to the highest level in almost six weeks on deepening concern that the tension between Russia and Ukraine would curb supplies of base and precious metals, energy and grains.

CURRENCIES – The euro weakened versus the dollar and the yen after European Central Bank President Mario Draghi said a further appreciation in the currency would trigger more monetary stimulus.

ECONOMIC DATA – US Core Retail Sales due at 8:30, Business Inventories m/m at 10:00, AUD Monetary Policy Meeting Minutes at 21:30 ET.

UPDATED 7:25 ET

STOCKS – European stocks fell for a second day, with the benchmark index heading for its biggest weekly drop in almost a month, as investors speculated that equity gains have overshot the earnings outlook. U.S. index futures were little changed, while Asian shares slid.

BONDS – Treasuries headed for a weekly gain, with 10-year yields dropping the most in a month, after the Federal Reserve damped speculation policy makers are preparing to raise interest rates.

COMMODITIES – Gold traded below a two-week high in London as investors weighed signs of slowing demand from China against the outlook for U.S. stimulus and tension in Ukraine.

CURRENCIES – The dollar headed for its biggest weekly decline against the euro in six months as Federal Reserve minutes released this week damped bets U.S. policy makers are moving toward raising interest rates.

ECONOMIC DATA – US PPI m/m due at 8:30, Prelim UoM Consumer Sentiment at 9:55 ET, G20 Meetings all day.

UPDATED 7:12 ET

STOCKS – European stocks retreated as mining companies fell after a report showed Chinese imports unexpectedly slumped last month. U.S. index futures also dropped, while Asian shares climbed.

BONDS - Treasuries rose, with 10-year yields falling to a two-week low, after Federal Reserve minutes damped bets policy makers are moving toward raising interest rates and a decline in Chinese exports boosted safety demand.

COMMODITIES – Crude Oil fell amid signs Libyan exports may recover as stronger gasoline demand buoys U.S. prices.

CURRENCIES – Australia’s dollar reached a more than four-month high versus the greenback after unemployment unexpectedly fell for the first time since September.

ECONOMIC DATA – US Unemployment Claims due at 8:30, Day 1 G20 Meetings, G7 Meetings all day, Natural Gas Storage at 10:30, CNY CPI y/y at 21:30 ET.