From the desk of Joe Rios
What are the markets trying to tell us? Are you listening?
I have been noticing unusual and divergent correlations among the key benchmarks including the stock, bond and currency markets. Rotation flows have been odd and contradictory, reflecting a lack of conviction among market participants. During Risk-Off environments bonds usually rise (interest rate yields fall) due to expectations of falling growth rate. Conversely during Risk-On stock markets rise in foreseeing higher future growth and higher corporate earnings. However, we’ve been seeing interest rate yields fall as the stock markets around the world hold near multi year highs. Which market is right? I believe ultimately, this recent tug-of-war will cease, but when will the rope snap? The currency market did react, first by what appeared to be short covering in the US Dollar but by the end of the week, prices stalled and consolidated. In the week ahead I will look to the currency market for cues to which side of the rope may gain control thus creating volatility and trading opportunities. I will also pay close attention to upcoming economic data releases including FOMC meeting minutes, recent data has been mixed, with slow growth from China, Japan, Europe and the US while some commodities have risen.
Joe Rios
Chief Market Strategist
www.riosquant.com / www.thetradingroom.com
Live Trading 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 Customer Support Manager
email: amber@riosquant.com
skype: alittlemobile
cellphone: 415.336.7272
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The Trading Room TradeLAB
Monday through Friday beginning at 7:30 AM ET
https://www3.gotomeeting.com/register/212699454
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.
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The Trading Room EDU – Educational Workshop: Rios Quant Trading Indicators
Tuesday beginning at 4:30 PM ET
https://www3.gotomeeting.com/register/319606302
Topic: Pattern Setups with Gnostick Levels – Presenter: Steve Schwartz
Saturday beginning at 10:30 AM ET
https://www3.gotomeeting.com/register/347432662
Topic: RiosQuant Basics for today’s market environment – Presenter: Steve Schwartz
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The RiosQuant 90 Day Trading Program – Workshop
Wednesday beginning at 7:30 PM ET
https://www3.gotomeeting.com/register/266860166
Training Session 7 of 12 with Edward Preston
Topic: RQ Cross Box – Explore Quantitative Analysis
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MONDAY
Economic Data Release – Market Movers
EUR – German Buba Precedent Weidmann Speaks – 3:00 AM ET
AUD – Monetary Policy Meeting Minutes – 9:30 PM ET
TUESDAY
Economic Data Release – Market Movers
GBP – CPI – 4:30 AM ET
USD – FOMC Member Plosser Speaks – 12:30 AM ET
USD – FOMC Member Dudley Speaks – 1:00 PM ET
GBP – MPC Member Bean Speaks – 1:30 PM ET
JPY – Monetary Policy Statement – Tentative
WEDNESDAY
Economic Data Release – Market Movers
JPY – BOJ Press Conference – Tentative
GBP – MPC Official Bank Rate Votes and Retail Sales – 4:30 AM ET
USD – HSBC Flash Manufacturing PMI – 10:00 AM ET
USD – Crude Oil Inventories – 10:30 AM ET
USD – Fed Chair Yellen Speaks – 11:30 AM ET
USD – FOMC Member Kocherlakota Speaks – 1:30 PM ET
USD – FOMC Meeting Minutes – 2:00 PM ET
CNY – HSBC Flash Manufacturing PMI – 9:45 PM ET
THURSDAY
Economic Data Release – Market Movers
EUR – French Flash Manufacturing PMI – 3:00 AM ET
EUR – German Flash Manufacturing PMI – 3:30 AM ET
GBP – Second Estimate GBP – 4:30 AM ET
CAD – Core Retail Sales – 8:30 AM ET
USD – Unemployment Claims – 8:30 AM ET
USD – Flash Manufacturing PMI – 9:45 AM ET
USD – Existing Home Sales – 10:00 AM ET
USD – Natural Gas Storage – 10:30 AM ET
FRIDAY
Economic Data Release – Market Movers
EUR – German Ifo Business Climate – 4:00 AM ET
USD – New Home Sales – 10:00 AM ET
THERE IS A SUBSTANTIAL RISK OF LOSS IN TRADING COMMODITY FUTURES, OPTIONS, AND FOREIGN EXCHANGE PRODUCTS
