market-environment-analysis

SKILL.md

Market Environment Analysis

Comprehensive analysis tool for understanding market conditions and creating professional market reports anytime.

When to Use

When you need a comprehensive overview of global market conditions

Before making trading or investment decisions

For daily/weekly market briefings

When assessing risk-on/risk-off sentiment

For understanding inter-market correlations and sector rotation

When preparing market reports for clients or personal records

Prerequisites

WebSearch access: Required for fetching real-time market data

No API keys required: This skill uses web search for data collection

Optional: Economic calendar data for event-driven analysis

Core Workflow

1. Initial Data Collection

Collect latest market data using web_search tool:

Major stock indices (S&P 500, NASDAQ, Dow, Nikkei 225, Shanghai Composite, Hang Seng)

Forex rates (USD/JPY, EUR/USD, major currency pairs)

Commodity prices (WTI crude, Gold, Silver)

US Treasury yields (2-year, 10-year, 30-year)

VIX index (Fear gauge)

Market trading status (open/close/current values)

2. Market Environment Assessment

Evaluate the following from collected data:

Trend Direction: Uptrend/Downtrend/Range-bound

Risk Sentiment: Risk-on/Risk-off

Volatility Status: Market anxiety level from VIX

Sector Rotation: Where capital is flowing

3. Report Structure

Standard Report Format:

1. Executive Summary (3-5 key points)
2. Global Market Overview
   - US Markets
   - Asian Markets
   - European Markets
3. Forex & Commodities Trends
4. Key Events & Economic Indicators
5. Risk Factor Analysis
6. Investment Strategy Implications

Script Usage

market_utils.py

Provides common functions for report creation:

# Generate report header
python scripts/market_utils.py

# Available functions:
- format_market_report_header(): Create header
- get_market_session_times(): Check trading hours
- categorize_volatility(vix): Interpret VIX levels
- format_percentage_change(value): Format price changes

Reference Documentation

Key Indicators Interpretation

Load references/indicators.md when you need:

Important levels for each index

Technical analysis key points

Sector-specific focus areas

Analysis Patterns

Load references/analysis_patterns.md when analyzing:

Risk-on/Risk-off criteria

Economic indicator interpretation

Inter-market correlations

Seasonality and market anomalies

Output Examples

Quick Summary Version

📊 Market Summary [2025/01/15 14:00]
━━━━━━━━━━━━━━━━━━━━━
【US】S&P 500: 5,123.45 (+0.45%)
【JP】Nikkei 225: 38,456.78 (-0.23%)
【FX】USD/JPY: 149.85 (↑0.15)
【VIX】16.2 (Normal range)

⚡ Key Events
- Japan GDP Flash
- US Employment Report

📈 Environment: Risk-On Continues

Detailed Analysis Version

Start with executive summary, then analyze each section in detail.
Key clarifications:

Current market phase (Bullish/Bearish/Neutral)

Short-term direction (1-5 days outlook)

Risk events to monitor

Recommended position adjustments

Important Considerations

Timezone Awareness

Consider all major market timezones

US markets: Evening to early morning (Asian time)

European markets: Afternoon to evening (Asian time)

Asian markets: Morning to afternoon (Local time)

Economic Calendar Priority

Categorize by importance:

⭐⭐⭐ Critical (FOMC, NFP, CPI, etc.)

⭐⭐ Important (GDP, Retail Sales, etc.)

⭐ Reference level

Data Source Priority

Official releases (Central banks, Government statistics)

Major financial media (Bloomberg, Reuters)

Broker reports

Analyst consensus estimates

Troubleshooting

Data Collection Notes

Check market holidays (holiday calendars)

Be aware of daylight saving time changes

Distinguish between flash and final data

Market Volatility Response

First organize the facts

Reference historical similar events

Verify with multiple sources

Maintain objective analysis

Customization Options

Adjust based on user's investment style:

Day Traders: Intraday charts, order flow focus

Swing Traders: Daily/weekly technicals emphasis

Long-term Investors: Fundamentals, macro economics focus

Forex Traders: Currency correlations, interest rate differentials

Options Traders: Volatility analysis, Greeks monitoring

Resources

references/indicators.md - Key market indicators and interpretation guides

references/analysis_patterns.md - Risk-on/risk-off criteria and inter-market correlations

scripts/market_utils.py - Utility functions for report formatting and market status