Trend followers faced a challenging week as the Trend Barometer retreated to a moderately weak 30, indicating tougher trading conditions. The SG Trend Index reflected this difficulty, with a modest month-to-date gain of 0.28% and a year-to-date performance of 8.99%, down from last week’s MTD of 1.87%.

This week was characterized by significant volatility, driven by sector leadership shifts, a rally in small-cap stocks, and a retreat in tech shares, along with reactions to lower 10-year Treasury yields and evolving economic data. The surge in the VIX Index further highlighted the turbulent nature of the markets, underscoring the increased uncertainty and potential for new trends to emerge.

Key asset class movements this week included a notable surge in the Volatility Index and grains, while metals, energy, and soft commodities saw declines. Among the top price movers, the VIX surged by 13.51%, oats increased by 5.89%, and soybean meal rose by 6.25%. On the downside, natural gas declined by 8.8%, copper by 7.76%, and palladium by 7.13%.

Overall, trend followers may find this week’s developments a test of their strategies, necessitating careful monitoring and potential adjustments to capitalize on the changing market conditions. The current environment emphasizes the importance of staying adaptable and informed in navigating the futures markets.

Read the full article for a comprehensive analysis and insights into leveraging these market dynamics effectively.

Click on the link to view the report.