Macro Extremes (week ending August 22, 2025)

August 24, 2025 Leave a comment

A weekly Macro, Cross Asset review of prices trading at extremes which may generate future investment ideas and opportunities. 

The following assets (on a weekly timeframe) either registered an Overbought or Oversold reading and/or have traded more than 2.5 standard deviations above or below its rolling mean. 

n.b. pricing of (commodity) futures contracts is only considering the immediate front month. 

* denotes multiple week inclusion 

Extremes above the Mean (at least 2.5 standard deviations) 

Austrian, Chinese, British and Dutch 10 year government bond yields  

British 30 year bond yields 

FCATC Index * 

Overbought (RSI > 70)  

Indian 10 year government bond yields  

Cattle * 

Urea (Middle East) prices * 

All World Developed (ex USA) equity index 

Hungary’s BUX Index * 

Egypt’s EGX 30 equity index * 

Italy’s MIB 

Spain’s IBEX * 

Pakistan’s KSE Index * 

South Korea’s KOSPI * 

Czechia’s PX Index * 

South Africa’s SA40 * 

Chile’s IGPA and IPSA indices 

Isreal’s TA35 

Canada’s TSX * 

FTSE 100 

Vietnam’s VN Index * 

The ASX 200 * 

ASX Industrials 

And the ASX Small Cap Index * 

The Overbought Quinella (Both Overbought and Traded at > 2.5 standard deviations above the weekly mean) 

Shanghai Composite Index * 

CSI 300 

China’s A50 equity index

 

Extremes below the Mean (at least 2.5 standard deviations) 

Rice 

AUD/SGD 

NZD/USD 

Oversold (RSI < 30) 

Indonesian 10 year government bond yield  

Lumber * 

CAD/EUR 

The Oversold Quinella (Both Oversold and Traded at < 2.5 standard deviations below the weekly mean) 

U.S. 3 month bill yield 

Notes & Ideas: 

Government bond yields fell…… 

with the exception of British, Japanese and Brazilians. 

Turkish 10 year and Chilean 2 year yields rose and broke their 4 week declining streaks.  

U.S. 3 month bill are oversold this week and in a 4 week losing streak. 

Indian 10’s have climbed for 7 weeks. 

Russian 10 year bonds yield rose and broke 13 straight weeks of decline. 

Equities rose nearly everywhere, again. 

This week sees the FTSE 100 and the ASX Industrials join many other overbought indices. 

While Chinese indices register an overbought extreme quinella. 

The Nordic bourse, U.S. midcaps, U.S. banks and Aussie financials all had a good week. 

Czechia’s OX Index fell and ended a 7 week winning streak. 

Bangkok fell and broke its 8 week winning streak. 

Karachi is in a 9 week winning streak. 

Commodities were mainly firmer. 

Oils, Gases, Precious Metals, Coffee and Cattle were the notable gainers. 

Coal, Cocoa, Orange Juice, Oats and Rice dominated the losers category. 

This week Lithium Hydroxide followed its Carbonate peer leaving oversold territory  

Palladium, Wheat and Hesting Oil rose and broke its 4-week losing streak. 

Robusta Coffee and Cattle prices are in a 9-week winning streak. 

Henry Hub Natural Gas is in a 5-week losing streak.  

And Oats have fallen for 7 weeks. 

Currencies saw some movement. 

The Aussie and Loonie were weaker, again. 

Swissie rose, again. 

The USD was mostly weaker, again. 

The BRL/USD fell to end its 4 straight weeks of gains. 

The Colombina Peso has risen for 4 weeks against the USD. 

The AUD has fallen for 4 weeks against the GBP. 

The Yen and Euro were firmer. 

And the U.S. Dollar fell versus the Indian Rupee to end its 7-week rising streak. 

The larger advancers over the past week comprised of; 

Bloomberg Commodity Index 1.3%, Brent Crude Oil 2.9%, WTI Crude Oil 2.7%, Cattle 3.1%, Heating Oil 3.7%, JKM LNG 5.5%, Arabica Coffee 13.2%, LNG in Yen 2.2%, Gasoline 4.5%, Robusta Coffee 15.8%, S&P GSCI 2%, CRB Index 1.5%, Dutch TTF Gas 8.2%, Gasoil 3.7%, Uranium 1.7%, Silver in AUD 2.5%, Silver in USD 2.3%, Soybean 1.5%, Shanghai 3.5%, CSI 300 4.2%, AEX 1.9%, KBW Banks 3.5%, China A50 4.7%, DJ Industrials 1.6%, DJ Transports 2.8%, Oslo 1.9%, Copenhagen 3.7%, Helsinki 1.9%, Stockholm 1.8%, SMI 1.6%, S&P 500 0.3%, Nasdaq Transports 1.5%, TSX 1.5%, FTSE 100 2%, ASX Financials 3.5%, ASX Industrials 2.5% and BIST rose 4.6%. 

The group of largest decliners from the week included; 

Australian Coking Coal (3.3%), Baltic Dry Index (4.9%), Cocoa (6%), Natural Gas (7.5%), Orange Juice (2.1%), Oats (2.7%), Rice (8.2%), ATX (1.2%), TAIEX (2.3%), Nasdaq Composite (0.6%), KOSPI (1.8%), Nikkei 225 (1.7%), WIG (1.6%) and the ASX Materials fell 2.4%.

August 24, 2025 

By Rob Zdravevski 

rob@karriasset.com.au 

Filed under Finance & Investment Tagged with , , , ,

Macro Extremes (week ending August 15, 2025)

August 17, 2025 Leave a comment

A weekly Macro, Cross Asset review of prices trading at extremes which may generate future investment ideas and opportunities.

The following assets (on a weekly timeframe) either registered an Overbought or Oversold reading and/or have traded more than 2.5 standard deviations above or below its rolling mean.

n.b. pricing of (commodity) futures contracts is only considering the immediate front month.

* denotes multiple week inclusion

Extremes above the Mean (at least 2.5 standard deviations)

EU, French, Indian and Dutch 10 year government bond yields 

Egypt’s EGX 30 equity index *

FCATC Index

Malaysia’s KLSE

And Australia’s ASX Materials Index

Overbought (RSI > 70) 

Cattle *

Urea (Middle East) prices *

Shanghai Composite Index *

Austria’s ATX Index

Hungary’s BUX Index *

Spain’s IBEX *

Pakistan’s KSE Index *

South Korea’s KOSPI *

Czechia’s PX Index *

South Africa’s SA40 *

Chile’s IGPA and IPSA indices

Canada’s TSX *

Vietnam’s VN Index *

The ASX 200 

And the ASX Small Cap Index

The Overbought Quinella (Both Overbought and Traded at > 2.5 standard deviations above the weekly mean)

None 

Extremes below the Mean (at least 2.5 standard deviations)

Belgian 10 year government bond yield

Lumber

Oversold (RSI < 30)

Russian 10 year government bond yield *

Lithium Hydroxide *

The Oversold Quinella (Both Oversold and Traded at < 2.5 standard deviations below the weekly mean)

None

Notes & Ideas:

Government bond yields were mixed,

Turkish 10 year and Chilean 2 year yields are in 4 week declining streaks. 

Indian 10’s have climbed for 6 weeks.

Russian 10 year bonds yield has fallen for 13 straight weeks.

Equities rose, everywhere, adding to last week’s beefy advances.

U.S. biotechs, transports, small and mid caps were amongst the better performers.

Austria’s ATX, Malaysia’s KLSE, the FTSE China FCTAC and a few Australian equity indices join many other indices are in overbought territory.

Egypt fell and broke a 6 week winning streak.

Czechia’s main indices have risen for 7 weeks straight.

Karachi & Bangkok have put together 8 week winning streaks.

Istanbul’s winning run stopped at 7 weeks.

The Nikkei 225 is a hair away from registering an overbought reading.

Indonesia’s IDX has climber 34% since its oversold quinella seen in March 2025.

While the Sensex and Nifty rose and broke their 6 week losing streak.

Commodities were mixed, again.

Palm Oil, Coffee, Lithium, Orange Juice and Soybeans Cocoa were the notable gainers.

Coal, Lumber, Gases, Oil and Distillates dominated the losers category.

The big news is that Lithium Carbonate rose enough for it to end its 98 week stay in oversold territory.

Palladium has declined 15% in the past 4 weeks, since registering an overbought quinella.

Cattle prices are in a 8 week winning streak.

Heating Oil, Wheat, Palladium, Gasoil and Henry Hub Natural Gas are in 4 week losing streaks. 

Oats and U.S. Hot Rolled Coil Steel have fallen for 6 weeks.

Arabica and Robusta Coffee have soared 20% and 25% respectively over the past fortnight. 

And Lumber prices have sunken 13% over the past 2 weeks.

Currencies were subdued.

The Aussie and Loonie were weaker.

Swissie and Pound Sterling rose.

The USD was mostly weaker. 

As the BRL/USD has risen for 4 straight weeks.

The Yen fell to mimic the continued ‘risk-on’ mood,

And the U.S. Dollar is in a 7 week rising streak versus the Indian Rupee.

The larger advancers over the past week comprised of;

Cocoa 3.7%, Palm Oil 5.1%, Arabica Coffee 10.5%, Cattle 2.1%, Lithium Carbonate 5%, Lithium Hydroxide 4.6%, Orange Juice 4.8%, Robusta Coffee 18%, Urea Middle East 2%, Uranium 1.5%, Soybeans 5.6%, Shanghai Composite 1.7%, CSI 300 2.4%, All World Developed (ex USA) 1.9%, ATX 2.7%, CAC 2.3%, China A50 2%, IDX 4.8%, DJ Industrials 1.7%, DJ Transports 2.1%, FCATC 3.9%, MIB 2.5%, HSCEI 1.6%, Hang Seng 1.7%, IBB 5.1%, IBEX 3.1%, S&P SmallCap 600 3.2%, Russell 3.1%, Nasdaq Composite 0.8%, KRE Regional Banks 3.4%, S&P MidCap 400 1.6%, NBI 5%, Nikkei 225 3.7%, Stockholm 1.5%, PX 1.6%, SMI 1.8%, IGPA 2.5%, S&P 500 0.9%, IPSA 2.6%, Nasdaq Transports 4.3%, Vietnam 2.8%, XBI 6.2%, ASX 200 1.5% and the ASX Materials Index rose 3.7%.

The group of largest decliners from the week included;

Australian Coking Coal (3.2%), Richards Bay Coal (2%), WTI Crude Oil (1.7%), EHR Steel (1.4%), Heating Oil (2.3%), JKM LNG (4.3%), Lumber (6.6%), JKM LNG in Yen (3.1%), Newcastle Coal (4.5%), Natural Gas (2.5%), Palladium (2.2%), Dutch TTF Gas (4.4%), Gasoil (2.1%), Gold in AUD (1.6%), Gold in CHF (2%), Gold in EUR (2.4%), Gold in GBP (2.6%), Gold in USD (1.9%), Oats (1.5%) and Wheat fell 1.6%.

August 17, 2025

By Rob Zdravevski

rob@karriasset.com.au

Filed under Finance & Investment Tagged with , , , ,

Macro Extremes (week ending July 4, 2025)

July 6, 2025 Leave a comment

A weekly Macro, Cross Asset review of prices trading at extremes which may generate future investment ideas and opportunities.

The following assets (on a weekly timeframe) either registered an Overbought or Oversold reading and/or have traded more than 2.5 standard deviations above or below its rolling mean.

n.b. pricing of (commodity) futures contracts is only considering the immediate front month.

* denotes multiple week inclusion

Extremes above the Mean (at least 2.5 standard deviations)

Platinum

Richards Bay Coal

COP/USD

Shanghai Composite *

Overbought (RSI > 70) 

Urea (U.S. gulf prices)

CHF/USD *

CHF/JPY

EUR/USD *

GBP/USD

Toronto’s TSX Index

The Overbought Quinella (Both Overbought and Traded at > 2.5 standard deviations above the weekly mean)

Pakistan’s KSE Index 

South Korea’s KOSPI *

And the Tel Aviv 35 equity index *

Extremes below the Mean (at least 2.5 standard deviations)

U.S. 5 year bond yield minus U.S. 3 month bill yield spread

Arabica Coffee *

Oversold (RSI < 30)

U.S. (DXY) Index *

Lithium Carbonate *

Lithium Hydroxide *

Robusta Coffee *

CAD/CHF *

CAD/EUR *

HKD/USD *

USD/CHF *

USD/DKK *

The Oversold Quinella (Both Oversold and Traded at < 2.5 standard deviations below the weekly mean)

None

Notes & Ideas:

Government bond yields were mixed.

Chilean 2 year and Russian 10 year bonds yield has fallen for 6 straight weeks.

China’s 10 year yields have declined for 5 weeks.

Norwegian 10’s are in a 4 week losing streak.

Last week’s bond yield spreads are no longer in todays list.

And the U.S. 2 year bond yields have reverted to a longer term mean reversion.

Equities had another good week.

Hong Kong based indices were the few which were lower.

Toronto’s TSX joins the Shanghai Composite in overbought territory.

The former has risen for 11 of the past 13 weeks.

South Korea’s KOSPI broke its 5 straight weeks of advance.

The Philadelphia SOX index is in a 6 week winning streak. 

Thailand’s SET index moved out from oversold territory.

Commodities were mixed, again, again, but plenty of streaks are developing.

Oils and Distillates along with Oats, Wheat, Soybeans and Precious Metals were the notable gainers.

Shipping Rates, Cocoa, Coffee, Gases, OrangeJuice and Rice dominated the losers category.

Tin broke its 4 week winning streak.

Lean Hogs broke its 5 weeks of advance.

Urea has climbed for 4 weeks and appears in this weeks overbought list.

Aluminium is in a 5 week winning streak.

Platinum has risen for 6 weeks straight.

Orange Juice has fallen or 5 weeks.

Sugar is in a 8 week losing streak.

Arabica is in a 4 week losing streak.

And Robusta Coffee rose and broke its 9 consecutive weeks of losses.

Currencies were active, again.

The big news is the U.S. Dollar (DXY) Index continues to appear in oversold territory.

And with that, comes a host of USD pairs registering extreme readings this week.

A new entrant is the Colombian Peso being overbought against the USD.

The Aussie and Loonie were subdued and mixed again.

Sterling and the USD were both weaker.

The AUD/EUR is in a 4 week losing streak.

Brazil’s Real is in a 5 week winning streak vs the USD.

The Euro has climbed for 6 weeks vs the Yen.

CAD/CHF is in a 4 week losing streak.

CHF/JPY has risen for 6 weeks.

And the Chinese Yuan has strengthened against the USD for 5 straight weeks.

The larger advancers over the past week comprised of;

Brent Crude 3%, WTI Crude 2.3%, Heating Oil 1.7%, Newcastle Coal 1.7%, Platinum 1.8%, Gasoline 2.4%, Shanghai Rebar 1.9%, Urea U.S. gulf prices 2.5%, Gasoil 10.4%, Silver in AUD 2.3%, Silver in USD 2.6%, Corn 2.1%, Oats 6.2%, Soybeans 2.4%, Wheat 3%, CSI 300 1.5%, KBW Banks 4.8%, BUX 1.7%, China A50 2.3%, DJ Industrials 2.3%, DJ Transports 3.6%, IBB biotech ETF 2.8%, BOVESPA 3.2%, S&P SmallCap 600 3.3%, Russell 2000 3.5%, Nasdaq Composite 1.6%, KRE Regional Banks 6.4%, KSE 6.1%, S&P MidCap 2.8%, NBI biotech ETF 3%, Nasdaq 100 1.5%, OBX 1.5%, SET 3.5%, SOX 1.8%, S&P 500 1.7%, TA35 4.4%, Nasdaq Transports 3.2%, XBI biotech ETF 2.7%, BIST 9.3% and ASX Materials Index rose 2.9%.  

The group of largest decliners from the week included;

Baltic Dry Index (5.6%), Cocoa (9.2%), Lean Hogs (4.7%), Arabica Coffee (4.7%), JKM LNG in Yen (1.8%), Natural Gas (8.8%), Orange Juice (3.3%), Sugar (2%), Uranium (2.1%), Rice (3.9%), HSCEI (1.8%) and the Hang Seng fell 1.5%. 

July 6, 2025

By Rob Zdravevski

rob@karriasset.com.au

Filed under Finance & Investment Tagged with , , ,

Macro Extremes (week ending June 27, 2025)

June 29, 2025 Leave a comment

A weekly Macro, Cross Asset review of prices trading at extremes which may generate future investment ideas and opportunities.

The following assets (on a weekly timeframe) either registered an Overbought or Oversold reading and/or have traded more than 2.5 standard deviations above or below its rolling mean.

n.b. pricing of (commodity) futures contracts is only considering the immediate front month.

* denotes multiple week inclusion

Extremes above the Mean (at least 2.5 standard deviations)

Palladium

Uranium

Shanghai Composite

Overbought (RSI > 70) 

U.S. 10 year minus U.S. 5 year bond yield spread

U.S. 30 year minus U.S. 10 year bond yield spread

CHF/USD

EUR/USD

GBP/USD

The Overbought Quinella (Both Overbought and Traded at > 2.5 standard deviations above the weekly mean)

Platinum * 

KOSPI *

And the Tel Aviv 35 equity index

Extremes below the Mean (at least 2.5 standard deviations)

Arabica Coffee *

Oversold (RSI < 30)

U.S. (DXY) Index

Lithium Carbonate *

Lithium Hydroxide *

CAD/CHF

CAD/EUR

HKD/USD *

USD/CHF

USD/DKK

And Thailand’s SET equity index *

The Oversold Quinella (Both Oversold and Traded at < 2.5 standard deviations below the weekly mean)

Robusta Coffee *

Notes & Ideas:

Government bond yields generally fell, again, again….

Except for Japanese yields where the 5’s and 10’s broke their 4 week falling streak.

High Yield Corporates are nearing oversold territory.

U.S. 10’s minus 2’s spread appear to be a maximum bullishness.

Chilean 2 year and Russian 10 year bond yields have fallen for 5 straight weeks.

The Chinese 10’s have done so for 4 weeks.

U.S. 2 year bond yields are near longer term mean reversion,

While the U.S. 3 year yields already did so.

Equities were had a good week.

Asian indices fared well with the Shanghai Composite registering an overbought reading.

South Korea’s KOSPI has risen for 5 straight weeks.

The Philadelphia SOX index is in a 4 week winning streak. 

Norway’s OMX broke its 4 week winning streak.

Indonesias IDX broke its 4 week losing streak.

Thailand’s SET index broke it 6 consecutive weeks of losses.

Commodities were mixed, again.

Oils, Distillates and Gases dominated the losers, along with the Softs.

The Copper/Gold Ratio rose notably which aligned with the ‘rick-on’ appetite seen in equities.

The Baltic Dry Index fell 10% and 24% over the past fortnight.

Gold prices fell and as such Gold Volatility mean reverted.

Tin looks like its set for a higher move as it registers a 4 week winning streak.

Platinum has also risen for 4 week straight, advancing 25% during that time.

Robusta Coffee has sunk for 9 consecutive weeks.

And Sugar is in a 7 week losing streak.

Currencies were active.

The big news is the U.S. Dollar (DXY) Index appearing in oversold territory.

And with that, comes a host of USD pairs registering extreme treading this week.

The Aussie was mixed. It was weaker versus the Europeans and stronger in Asia and the USD.

Brazil’s Real is in a 4 week winning streak vs the USD.

The Loonie was mostly weaker with the CAD/EUR in a 4 week losing streak.

The Swissie was stronger and the CHF/JPY has risen for 5 straight weeks.

EUR/JPY has climbed for 5 straight weeks.

GBP was stronger.

Yen was mixed.

PHP/USD broke its 4 week losing streak

And the USD/INR broke its 4 week winning streak.

The larger advancers over the past week comprised of;

Aluminium 1.7%, Cocoa 9.2%, Cotton 3,9%, Lumber 2%, Cattle 1.7%, Tin 3.3%, Nickel 1.5%, Palladium 9.2%, Platinum 5.8%, Uranium 2.5%, Oats 2.7%, Shanghai Composite 1.9%, CSI 300 2%, All World Developed ex USA 2.8%, ATX 1.9%, KBW Banks Index 5.6%, DAX 2.9%, Dj Industrials 3.9%, DJ Transports 4.9%, Egypt 9.1%, FCATC Index 4.5%, HSCEI 2.8%, Hang Seng 3.2%, S&P SmallCap 600 3.2%, Russell 2000 3%, TAIEX 2.4%, Nasdaq Composite 4.3%, KLSE 1.7%, KRE Regional Banks 4.4%, KSE 3.6% FTSE 250 2.7%, Mexico 2%, S&P MidCap 400 2.6%, Nasdaq 100 4.2%, Nikkei 225 4.6%, NIFTY 2.1%, Stockholm 2.4%, SENSEX 2%, SOX 6.4%, S&P 500 3.4%, STI 2.1%, TA35 2.5%, Nasdaq Transports 3.7%, WIG 3.3%, ASX Financials 1.8%, ASX Materials 1.8%.


For reference, the ASX 200 rose 0.1%.

The group of largest decliners from the week included;

Bloomberg Commodity Index (3.6%), Brent Crude (12.1%), WTI Crude Oil (11.3%), Baltic Dry Index (10%), DXY Index (1.5%), Palm Oil (2.6%), Heating Oil (10.5%), HRC (2.4%), JKM LNG (7.4%), Arabica Coffee (3.6%), JKM LNG in Yen (13,3%), Newcastle Coal (4%), Natural Gas (6.8%), Orange Juice (3.3%), Gasoline (10.4%), Robusta Coffee (2.2%), Sugar (1.8%), S&P GSCI (6.1%), CRB Index (4.,1%), Dutch TTF Gas (14.1%), Gasoil (11%), Gold in AUD (4%), Gold in CAD (3.2%), Gold in CHF (5.1%), Gold in EUR (4.4%), Gold in GBP (4.7%), Gold in USD (2.8%), Gold in ZAR (4%), Corn (2.8%), Rice (2%), Soybeans (3.4%), Wheat (7.3%), OBX (2.2%) and the ASX Industrials fell 2.6%.

June 29, 2025

By Rob Zdravevski

rob@karriasset.com.au

Filed under Finance & Investment Tagged with , , , ,

Macro Extremes (week ending June 13, 2025)

June 15, 2025 Leave a comment

A weekly Macro, Cross Asset review of prices trading at extremes which may generate future investment ideas and opportunities.

The following assets (on a weekly timeframe) either registered an Overbought or Oversold reading and/or have traded more than 2.5 standard deviations above or below its rolling mean.

n.b. pricing of (commodity) futures contracts is only considering the immediate front month.

* denotes multiple week inclusion

Extremes above the Mean (at least 2.5 standard deviations)

Czech 10 year government bond yield * 

Rotterdam Coal

Brent Crude Oil

WTI Crude Oil

Heating Oil

Palladium

Platinum *

Silver in AUD and USD

Oats *

KOSPI *

Overbought (RSI > 70) 

Gold

CHF/USD

EUR/USD

GBP/USD

DKK/USD

SEK/USD

And Chile’s IPSA equity index 

The Overbought Quinella (Both Overbought and Traded at > 2.5 standard deviations above the weekly mean)

KOSPI *

Extremes below the Mean (at least 2.5 standard deviations)

Sugar #16

Oversold (RSI < 30)

Indian 10 year government bond yield * 

Lithium Carbonate *

Lithium Hydroxide *

HKD/USD

And Thailand’s SET equity index

The Oversold Quinella (Both Oversold and Traded at < 2.5 standard deviations below the weekly mean)

None

Notes & Ideas:

Government bond yields fell.

Indonesian 10 year bond yields have fallen for 4 straight weeks.

Aussie 10’s minus 2’s spread appear to be at maximum bullishness, so I look for the spread to decline. I see the same in the U.S. 10’s minus 2’s spread.

A reminder that U.S. 10’s minus U.S. 5’s recently spent time as an overbought quinella extreme.

Chilean 10’s minus 2’s are nearly overbought.

British 30 year bond yields have fallen for 3 weeks. Whilst its not a meaningful streak, I reminisce about the recent hoopla surrounding the surge in 30 year Gilts.

Danish 10’s broke their 4 week winning streak. 

Japan 2’s broke their 5 week rising streak and Korean 10 year bond yield saw their 6 week climb, come to an end.

And I’m expecting U.S. real interest rates to fall and converge toward a medium term mean.

Equities were mixed with a bias towards weakness.

But not as week as the sentiment may suggest. 

There were many small gainers and losers either side of last week’s close.

For example, the SOX managed to rise 1.5% for the week, even after falling 2.6% on Friday.

South Korea’s KOSPI is overbought.

While the DAX and IBEX fell and are no longer overbought. The latter broke an 8 weeks winning streak.

Norway’s OMX is nearly at an overbought quinella extreme reading.

Thailand’s SET is in a 5 week losing streak and os now oversold.

South African 40 broke its 4 week wining streak.

The All World Developed (ex USA) index is in a 5 week winning streak and has risen for 9 of the past 10 weeks, along with Canada’s TSX.

The FTSE 100, ASX Financials, ASX 200 and ASX Small Caps are in 5 week winning streaks and have risen in 8 of the past 9 weeks.

The FTSE 100 has also performed the latter feat.

Commodities were stronger.

The big news is the surge in oil prices. Brent Crude, Heating Oil and WTI Crude have risen 17%, 17% and 19% respectively over the past fortnight.

The Baltic Dry Index has surged 40% over the past 3 weeks and to its highest closing price since last September 2024.

Silver and Gold make a return to overbought extremes.

Palladium joins Platinum being overbought, while Cattle and Steel depart that stratosphere.

The largest winners were Oils and Distillates, most gases, Gold, Platinum, Aluminium and Shipping Rates (again).

The notable losers included Cocoa, Sugar, Nickel, Orange Juice, and surprisingly, Henry Hub Natural Gas.

The Copper/Gold ratio fell to reflect a ‘risk-off’ bias.

During Friday’s trading session, Platinum initially rose 2% on Israeli/Irani tensions to then reverse and fall $100 per ounce (or 7%) to finish down 5% from the previous day’s close.

U.S. Hot Rolled Coil Steel broke its 5 week winning streak and is no longer overbought.

U.S. Gulf Urea broke its 4 week losing streak.
Sugar prices have fallen for the past 5 weeks.

Robusta Coffee is in a 7 week losing streak.

While Rice has risen for 5 straight weeks.

Currencies were active.

The Aussie fell commensurately with the ‘risk-off’ sentiment.

Loonie was mixed, again.

The Swissie was stronger as was the Euro.

The U.S. (DXY) Dollar Index is nearly oversold, after all Trump did ‘want’ a weaker Dollar,

while this week sees a host of oversold USD pairs.

And the BRL/USD is near entering an upward trend.

The larger advancers over the past week comprised of;

Aluminium 2.9%, Rotterdam Coal 1.8%, Bloomberg Commodity Index 1.9%, Baltic Dry Index 20.5%, Brent Crude 11.6%, WTI Crude Oil 13%, Heating Oil 10.7%, JKM LNG 4%, Lumber 3.7%, Platinum 3.8%, Gasoline 7.4%, S&P GSCI 4.3%, CRB Index 3%, Dutch TTF Gas 4.5%, Gasoil 10%, Urea Middle East 2.6%, Gold 3%, TAEIX 1.9%, KOSPI 2.9%, Oslo 2.7% and the SOX rose 1.5%.

The group of largest decliners from the week included;

Australian Coking Coal (1.5%), Cocoa (6.2%), HRC (1.8%), Arabica Coffee (2.8%), Cattle (2.9%), Natural Gas (5.4%), Nickel (2.5%), Orange Juice (3.8%), Palladium (1.7%), Sugar (2.2%), Sugar #16 (3.5%), Wheat (2%), ATX (2.1%), KBW Banks (2.6%), CAC (1.5%), DAX (3.2%), DJ Industrials (1.3%), MIB (2.9%), IBEX (2.4%), S&P SmallCaps 600 (1.3%), Nasdaq Composite (0.6%), KRE Regional Banks (3.1%), S&P MidCap 400 (1.5%), Stockholm (2.5%), Russell 2000 (1.5%), SMI (1.8%), S&P 500 (0.4%), TA35 (1.5%) and the Nasdaq Transports fell 2.5%.

June 15, 2025

By Rob Zdravevski

rob@karriasset.com.au

Filed under Finance & Investment Tagged with , , ,

Macro Extremes (week ending April 18, 2025)

April 20, 2025 Leave a comment

A weekly Macro, Cross Asset review of prices trading at extremes which may generate future investment ideas and opportunities.

The following assets (on a weekly timeframe) either registered an Overbought or Oversold reading and/or have traded more than 2.5 standard deviations above or below its rolling mean.

n.b. pricing of (commodity) futures contracts is only considering the immediate front month.

* denotes multiple week inclusion

Extremes above the Mean (at least 2.5 standard deviations)

AUD/IDR

AUD/ZAR *

CAD/USD *

EUR/GBP

NZD.AUD

NZD/USD

PHP/USD

THB/USD

Overbought (RSI > 70) 

Australian government 10 year bond yield minus the Aust. 5 year bond yield spread *

U.S. 10 year minus U.S. 2 year bond yield spread *

BofA BB High Yield Option Adjusted Spread *

Urea (U.S. Gulf) *

Gold in AUD, CAD, EUR, GBP, USD and ZAR *

Chile’s IGPA and IPSA equity indices

The Overbought Quinella (Both Overbought and Traded at > 2.5 standard deviations above the weekly mean)

Australian government 10 year bond yield minus the Aust. 2 year bond yield spread 

U.S. 30 year minus U.S. 10 year bond yield spread *

EUR/USD * 

Extremes below the Mean (at least 2.5 standard deviations)

Australian 2, 3, 5 & 10 year bond yields *

German and Italian 2 year bond yields *

Australian 3 and 5 year bond yields

Polish 10 year bond yields *

Copper/Gold Ratio *

USD/CAD

USD/MXN

Oversold (RSI < 30)

Richards Bay Coal *

U.S. (DXY) Dollar Index

North European Hot Rolled Coil Steel

Lithium Carbonate *

Lithium Hydroxide *

Newcastle Coal *

Shanghai Rebar

Rubber

AUD/EUR

RMB

USD/DKK

USD/SEK

Dow Jones Transports

S&P SmallCap 600

Taiwan’s TAIEX

Nasdaq Transports

IBB Biotech ETF

And Thailand’s SET Index *

The Oversold Quinella (Both Oversold and Traded at < 2.5 standard deviations below the weekly mean)

Australian 2 year government bond yield

Indian 10 year government bond yield *

CAD/CHF

AUD/CHF

USD/CHF

Notes & Ideas:

Government bond yields fell except for those in Japan.

The non-investment grade bond yields aren’t overbought anymore.

Norwegian 10 year yields are in a 5 week declining streak.

Notably, Australian 2, 3 and 5 year yields are oversold.

European 10’s have fallen for 5 straight weeks while Euro 2’s have done so for 6 weeks.

Equities rose, again.

Equities had a good week, except for the American indices.

All of the equity indices which were in last weeks oversold list, are not there anymore.

For now, it looks like April 4th/7th may signal the lows for global equities. 

The DAX, Hang Seng, Stockholm and Helsinki broke their 5 weeks falling streak

Copenhagen broke its 6 week losing streak.

The IBB Biotech ETF broke its 7 weeks of decline.

Commodities were mainly higher.

The Bloomberg Commodity Index has risen 3% over the past fortnight.

Many commodities which were oversold last week are no longer so, including uranium.

Cocoa, Coal, Natural Gas, Palm Oil & Tin were counted amongst the few losers.

The Baltic Dry Index has fallen for 5 straight weeks.

Sugar has declined for 4 weeks straight.

Gold as priced in ZAR has risen for 6 weeks. 

Gold in AUD is in a 7 week winning streak.

while Lithium Hydroxide has been oversold territory for 98 consecutive weeks.

Currencies were very active, again.

The Aussie rose.

The Loonie was weaker against all except the USD.

The British Pound was stronger as was the Kiwi.

The Yen was mixed as the USD/JPY is approaching oversold levels.

The U.S. Dollar (DXY) Index has fallen for 5 consecutive weeks.

Notably, the Swissie is at oversold extremes against some risk currencies.

The larger advancers over the past week comprised of;

Bloomberg Commodity Index 1.4%, Brent Crude 4.6%, WTI Crude 5.2%, Lean Hogs 5%, Copper 4.8%, Heating Oil 4.1%, JKM LNG 4.9%, Arabica Coffee 5.4%, Cattle 3.7%, JKM LNG in Yen 7.3%, Nickel 3.6%, Orange Juice 8.9%, Palladium 6%, Platinum 3.4%, Gasoline 4.9%, S&P GSCI 2.6%, CRB Index 2.1%, Dutch TTF Gas 6.6%, Gasoil 6.2%, Gold in CAD 2.7%, Gold in CHF 3.3%, Gold in EUR 2.7%, Gold in USD 2.8%, Oats 3.1%, All World Developed ex USA 4.1%, AEX 4%, ATX 5.4%, KBW Bank Index 1.9%, BUX 2.5%, CAC 2.6%, DAX 4.1%, FTSE 100 5.7%, Hang Seng 2.3%, IBEX 5.1%, Bovespa 1.5%, IDX 2.9%, KLSE 3.1%, KRE Regional Banks 4.4%, KSE 2.1%, KOSPI 2.1%, FTSE 250 4%, Mexico 3%, Nasdaq Biotechs 1.5%, Nikkei 225 3.4%, NIFTY 4.5%, Oslo 2.8%, Copenhagen 4%, Helsinki 3.7%, PX 3.2%, Russell 2000 1.6%, South Africa40 4%, SENSEX  4.5%, SET 2%, SMI 3.8%, IGPA 4.8%, IPSA 5.2%, STI 5.9%, TA35 3%, TSX 2.6%, FTSE 100 3.9%, WIG 4.4%, ASX Financials 3.2%, ASX 200 2.3%, ASX Materials 3.2%, ASX SmallCaps 2.3% and the XBI Biotech ETF rose 2.2%.

The group of largest decliners from the week included;

Cocoa (1.7%), Newcastle Coal (2%), Natural Gas (8%), Palm Oil (4.2%), Tin (2.1%), Corn (1.6%), Wheat (1.3%), Dow Jones Industrials (2.6%), Nasdaq Composite (2.6%), Nasdaq 100 (2.3%), SOX (4%) and the S&P 500 fell 1.5%.

April 20, 2025

By Rob Zdravevski

rob@karriasset.com.au

Filed under Finance & Investment Tagged with , , , ,