How To Trade Market Correlations | Russia-Ukraine Wheat

In this video Richard unpacks the recent events in the wheat market where AXIA traders excelled. He explores the aftereffects of a political announcement from Russia that assumed ships in the Black Sea were carrying military cargo. This had an immediate and significant influence on the wheat market, as Ukraine is a large exporter of wheat.

Observing the reactions of different markets to this news, Richard brings attention to the wheat market going "limit up". In this situation, the price of wheat reached its maximum allowed price and couldn't go any higher due to trading regulations.

In terms of expectations for a broader risk scenario, equity markets and other risk assets did not reflect any substantial change. Instead, this was perceived as a supply issue, indicating that the event was predominantly affecting the wheat market. This suggested that this news was mostly a wheat story, potentially sparking off related movements in other soft commodity markets.

One of the crucial points Richard raises is the danger of selling the "limit up", given the potential for the market to open the next day again "limit up", with significant upward price gaps. This forms a substantial risk that traders need to be aware of.

To deepen the understanding of market behavior, Richard examines correlations with other markets in response to this event. Though there was a positive correlation with certain other commodities like oil and copper, equities, bonds, and the Japanese yen did not show any notable changes. This suggested that the focus could then be solely on the commodities market.

By highlighting the importance of understanding correlations beyond traditional market behavior, Richard guides you on how to tailor your trading strategy effectively in response to specific events. This video provides a unique perspective on market reactions, helping you to stay focused and make informed trading decisions.

#DayTrading #NewsTrading #RussiaUkraine

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[currygray]

Please tell how can we get that software's of
Order flow we after learned how to use it

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Personally I very much like this shorter lenghth format.