As November draws to a close, trend-following strategies have ridden a dynamic mix of opportunities across markets, with the SG Trend Index gaining 3.04% month-to-date and 0.92% year-to-date. While equities delivered another strong performance, the real excitement came from soft commodities like coffee and cocoa, which surged on supply constraints and weather challenges, providing fertile ground for systematic traders.

Key Market Highlights:

• Coffee surged +6.04%, continuing its meteoric rise as adverse weather in Brazil and regulatory pressures in Europe squeezed supplies.
• Cocoa gained +3.38%, extending its impressive rally amid persistent production challenges in West Africa.
• Crude Oil WTI dropped -4.34%, reflecting easing geopolitical risks and uncertainties around OPEC+ decisions, benefiting trend-followers positioned short.
• Heating Oil declined -3.45%, mirroring weakness across the energy complex and rewarding bearish traders.

Despite the lighter trading volumes over the Thanksgiving holiday, strong trends in select markets like soft commodities and equities ensured ample opportunities for systematic strategies. However, the TTU Trend Barometer dipped to 41, suggesting a softer trend environment overall, with fewer markets offering sustained directional momentum.

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Dive into this week’s comprehensive analysis to explore how trend-following traders are capitalizing on the key moves driving November’s results.

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