Understanding the Weekly Markets Scan
Each weekend you will receive a pack from me which I’ve called the Platinum Weekly Scan. The Scan uses individual technical analysis using my process within a broader cross-market analysis.
What is cross- market analysis?
You may wish to trade just the Aussie dollar, the Euro, the DXY, Gold, WTI, the FTSE, SPI 200, Hang Seng, Walmart or Anglo American.
And you can trade them successfully just by concentrating on them and knowing them intimately. But part of knowing them intimately is you’ll need to know the key inputs into and drivers of the currency, commodity, index, company, or market you are trading.
That there is cross market analysis – you are understanding the interrelationships of the key drivers.
Now scale out to a macro level and the same type of multi asset and cross market analysis is used to understand what’s going on in markets more broadly.
But because it’s across a broader spectrum, interrelationships are both more complex and more variable. But it is in Cross market analysis – looking at the interplay of economics, geopolitics and news across and between foreign exchange, bond, commodity, stock, and credit markets – where the trends and drivers of same emerge.
It helps traders be both better informed and better prepared.
Rates and Bonds drive currencies, currencies drive commodities, commodities drive stock values, stock values drive index returns, the economy and central drives rates and bonds….and so it goes in an ever evolving milieu of cause and effect.
Cross market analysis tells you what’s really driving markets and how to profit from it.
Working through the sections of the Weekly Pack
This is the last thing I write each week. It is the high level summary of where things fit after doing the chart scan, the correlations, and the individual technical analysis on each of the assets.
The Daily and Weekly Chart Scan
This is a high level summary of the key price and some technical levels to watch across the markets I’m looking for the scan.
Price, trends, MACD, moving averages, and Turtles (both daily and weekly).
This is my go to screener of the charts I watch closely on both the Weekly and Daily basis. And it is also an indicator of direction and levels to watch – also an indicator of the safest direction to trade when trends line up.
Last – just the last price
Trends – ShortTerm (4-11sma), MediumTerm the JimmyR (15-30ema), and LongTerm (50-200sma)
MACD – 15,30. (Not 12,26 – see JimmyR)
Moving Averages – as is
Turtles – Very simplistic possible break out (HH and LL20) and Stop Loss/Take Profit (HH and LL10) levels
This page tell you where the trends are and where the levels the trends may stall, accelerate, or reverse are.
Correlations for better understanding cross market analysis
It’s easy to say an asset price is driving the price moves of another asset anecdotally. But not only could that anecdote be mathematically be wrong, relationships aren’t stable and correlations cycle through time.
What the correlation analysis does is give you an indication of what is driving what markets and what that might tell you about sentiment and future direction of a single or multiple assets. Take a strong correlation between Stocks, Gold and the Yen – that would tell you risk is either on or off. It’s a stylised example but as the correlations move you can see the markets narrative writ large.
The different colours in the chart above represent the different markets
Light Blue – Currencies with Currencies
Light Green – Currencies with Stocks
Grey – WTI Crude Oil with Currencies
Watermelon – AUDJPY with Stocks
Yellow – Gold with Stocks
Bone – Stocks in the US with Stocks globally
Dirt Red – Bonds with Stocks
This framework is performed on 20, 35, and 95 day basis so I (we) can see current drivers and how they have or are cycling. It helps inform the overall backdrop which then feeds into the overall key takeaways in the weekly note and also
The individual charts
Each weekend when the market is closed I look at the Monthly, Weekly, and Daily charts to get the Long, Intermediate, and immediate outlook for the markets covered.
The base level of markets I look at is:
FOREX – DXY, EUR, JPY, GBP, AUD, CAD, NZD, CNH, SGD, EURJPY, EURGBP, GBPJPY, AUDJPY, AUDNZD, EURAUD, GBPAUD
COMMODITIES – Gold, Silver, Copper, WTI, Brent and Bitcoin
BONDS – US 10’s
STOCKS INDEXES – S&P 500, DJ 30, NASDAQ 100, SPI 200, DAX30, CHINA A 50, FTSE, Nky 225, HSI
I also look at other markets and relationships as they become important or influential.
The Analysis framework
At the top of each chart you will see the close of the week an last weeks close (in brackets). You will also see the direction of the daily and weekly MT trend (JimmyR) as well as the MACD
The analysis frame work is through a combination of my system (MACD, Stochastics, 15 and 30ema’s) together with trend lines and Fibonacci.
Fractals, 50 and 200 period ma’s are on the charts but not integral to the analysis framework.
The takeaway at the top right above the monthly chart is my high level thought on the asset.
Wrapping it all up
Once I have gone through this exhaustive process – I then synthesise this back into the key takeaways for the pack and it also helps inform my daily newsletter writing and video.
For example this framework enabled me to see the stall in bonds rates rising and the foll over in stocks to see the funk coming back in October 2018. After a few months or what felt like very boring Saturday’s of putting the pack together the framework paid off and this is what I wrote to myself – it was only me an a couple of mates who got the scan then, hence the handwriting.
Notice the set up in bonds didn’t actually follow through. But that too has been a very valuable signal as the sentiment and market shifted.
But as highlighted these insights aren’t going to happen every week. The aim of Platinum is to see the turns and the shifts coming and prepare for them. Both in a macro sense and then individual market or asset sense.
PLEASE FEEL FREE TO DROP ME ANY THOUGHTS, QUESTIONS, OR IDEAS. this is a product that essentially I built for me but share with you. It’s not set in stone and will evolve to my and your needs.