Weekly Update – 25 August 2019 – LS Trader

Stocks

The S&P 500 and the Nasdaq 100 both ended the week lower, but remain in long-term uptrends. However, price has now fallen to the middle of the range, and a change of trend to down is within range and could be seen over the coming weeks.

The Nikkei held below resistance and remains in a long-term downtrend. The Dax rallied sufficiently to kick us out of our short position, but the trend remains down, and we may soon see a new breakout to the downside.

 

Commodities

Gold declined during the week but put in a strong rally on Friday. Silver traded similarly. Both markets ended the week with a new high close for the current move.

Copper remains the only metal in a long-term downtrend. Friday saw Copper decline to a new low for the current move. The weakness seen on Thursday and Friday was accompanied by above-average volume.

 

Currencies

From last week: “The British Pound has held support. The trend remains down, but new strength suggests resistance may be tested soon. Commercials remain very near an all-time net long position.” The Pound rallied and broke resistance as expected, bringing an end to the downtrend for at least the short-term. The long-term trend remains down, but prices are rallying in the short-term. Powered by near-record net long commercials, this rally could go further than many expect.

 

Interest rate futures

Interest rate futures declined during the week but found support on Friday to keep the uptrend intact. The long-term trend remains up across the board.

UK Long Gilts were the weakest in the sector, and they broke short-term support this week, resulting in the LS Trader system exiting its second-most profitable trade of the year, where we had been long since May, capturing a huge move.

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