---
name: market-environment-analysis
description: Analyzes global market conditions across US, European, and Asian indices, forex, commodities, and economic indicators to produce structured market reports with risk sentiment assessment.
---

# 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:
1. Major stock indices (S&P 500, NASDAQ, Dow, Nikkei 225, Shanghai Composite, Hang Seng)
2. Forex rates (USD/JPY, EUR/USD, major currency pairs)
3. Commodity prices (WTI crude, Gold, Silver)
4. US Treasury yields (2-year, 10-year, 30-year)
5. VIX index (Fear gauge)
6. 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:
```bash
# 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:
1. Current market phase (Bullish/Bearish/Neutral)
2. Short-term direction (1-5 days outlook)
3. Risk events to monitor
4. 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
1. Official releases (Central banks, Government statistics)
2. Major financial media (Bloomberg, Reuters)
3. Broker reports
4. 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
1. First organize the facts
2. Reference historical similar events
3. Verify with multiple sources
4. 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