JUN 17. Big Bear market, we’ve to aware…

3 min readJun 18, 2022

Investors and world financial markets are showing their fears of the recession. Global stock markets showed the biggest weekly decline in two years.

On a weekly basis. The DJ index was downed by 4.8%, S&P was downed by 5.8% and NASDAQ was downed by 4.8% this week.

DJ INDEX CHART (Jun 13~Jun 17)

Today, US stock exchanges recorded a huge trade volume, 17.7 billion shares. The last 20 days’ average traded volume was 12.4 billion shares.

DJ index was downed 0.1% but S&P 500 index was up 0.2% and the NASDAQ index was up 1.4%.

Apple was up 1.2%, MS was up 1.1%, Amazon was up 2.5% and Tesla was up 1.7%.

So, it was a better Friday ending than expected after all.

US dollar index was up 0.98%, ending at 104.65. The recent strong US dollar is pulling down the commodity prices a lot. Crude oil would be the best example for now. Brent oil futures fell 5.6% today, ending at $113.12 per barrel.

The strong dollar is one of the down factors and Biden’s effort to be a friend of Saudi Arabia is also a good down factor.

Brent Oil Chart

It seems like, Biden is going to visit Saudi Arabia very soon.

However, the biggest unofficial down factor would be the stable Russian oil supply to the world market. Not agree?

US and Western countries banned Russian oils officially but everyone knows that their oils are trading well in the secondary market.

Ironically enough, that would be the biggest down factor for the oil market this week, unofficially…

Similar things are happening in the agricultural market as well.
Today, wheat market prices collapsed in the Chicago market, 3~4% was downed today. It’s a bit too much to just say “harvest pressure”.

Russians are working very closely with the Turkish to set up the export logistic route.

Chicago futures market, grain/oilseeds

It’s the almost same story as for crude oil, they are exporting whatever they want regardless of what the sanction is.

Once again, ironically enough, Russians were setting up the fire for the rally in the commodity market with their invasion of Ukraine but now, they are pulling down the commodity prices with their unofficial exports.

Funny world!




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