General Market Questions

Market Analysis Tools and Templates

Present a Trading Idea/Explain Market Behavior

Conclusion
1. direction, horizon
Analysis
1. what phonomenon
  1. metrics
    1. Performance Metrics
      1. absolute: return/gain, risk, Sharpe, P/E
      2. horizontal:
        
        vs. other sector/markets/countries
        
        distribution
      3. vertical: historical percentile
2. explain the phonomenon and make predictions
  1. what data
  2. driver
    1. fundamental
      - trade and company tax
    2. macroeconomical
      - capital flow
      - monetary policy and yield curve
    3. behavioral
      - trading volume, etc
    4. historical similar events
  3. from model/consensus
3. trade horizon analysis
Otherside
1. risk
2. sensitivity analysis
3. risk control/hedging strategies

Common Market Knowledge

Fed-meeting (FOMC) times and global central bank meeting time
Economic Data Calendar
- GDP related
- Non-farm payroll
- Employement

Key benchmark levels

Equity

VIX, VXX
DJI
DDM
SPX
SPY
IXIC
QQQ
FTSE
MSCI World
EAFE
EFA
DAX
EEM
EWY (South Korean)
FXI (Russia)
RSX (China)

FX

USD
FXE
FXY

Bond

1-Yr, 10-Yr, 20-Yr Treasury Rates
TLT
HYG

Commod

GLD
SLV

Derivatives/Hedge Funds

UVXY
HFRX

Market Analysis

Information Collection
1. Trading Journal + Error Log Check
2. Ideas/News
  1. Economic Outlook
  2. Market Levels
  3. Market Sentiment (VIX, Fear Index)
  4. Company Theme
3. Market Analysis
  1. market drivers
Customized Analytics
Formulate Questions and Try to find answers
1. Trading Logic
  1. Facts + Prediction
  2. any test?
2. Risk Analysis
  1. ex-ante, ex-post
3. Target Exposure

Tell the story

time and events
- macro economic outlook (theme + data)
- major market drivers (asset class/currency, theme) : where the money is flowing to?

Advanced