Rising Prices...

By Craig Bewick
FEB 24 2021

US Equities bounced sharply today as the market weighs the slight juxtaposition between rising interest rates at the long end of the yield curve and recent dovish remarks from Federal Reserve Chairman Jerome Powell.  The rally in stocks and several other CME Group products prompted us to take a more wholistic look the asset classes traded.  While it’s probably not unprecedented, we thought it was worth pointing out how many products traded at CME Group, both financial and commodity, are at or near 1-year highs. 

Using QuikStrike data, we graphed one year of price (blue) and volatility (orange) data in seven major CME Group products. As you can see, while the volatility characteristics differ (Copper is relatively high; WTI Crude Oil relatively low for example), the price in all seven are trading at very high levels versus the last 12 months (in the case of the US Bond, the price is at low levels, indicating high yields).  For sake of including more products with limited space, the graphs have little detail, but we hope they convey the message. 

Remember, we are going to do two “Questions of the Day” each month on random days and we’ve only done one so far in February, so stay on the lookout…

ABOUT THE AUTHOR

Craig Bewick has spent 25 years in futures and options markets, starting at CBOT and CME working in risk management, regulatory, technology, product management and client development. 

Connect with Craig at activetrader@cmegroup.com

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