Weekly Update – 1 November 2020 – LS Trader

Stocks

Stocks moved lower this week which included a sharp down day on Wednesday. Despite this week’s selling and all the noise about increased volatility ahead of the US election this coming Tuesday, the downswing that began on the 13th October is comparable to the swing down from the all-time high that started on the 3rd September. The long-term trend remains up for global markets. US markets remain above medium-term support, and until that breaks, bearishness is premature.

The Dax has been the weakest index of late and could complete a change of trend to down early this week. The FTSE, which is not a market that we trade at LS Trader, but reflects European weakness, never by our proprietary measures completed a change of trend to up when the others did back in the summer and is still in a downtrend. Friday’s low was the lowest print since April.

Commodities

The energy markets completed a change of long-term trend to down this week. The metals remain in long-term uptrends but are mostly consolidating in a corrective range.

Currencies

Some Dollar strength has been seen this week, which is counter to the long-term Dollar downtrend. This has us currently flat in the currency markets as we wait for the markets to show direction. It will take significant Dollar strength for most majors to complete a change of long-term trend.

Interest rate futures

Interest rate futures remain in long-term uptrends but continue to trade mostly sideways, but towards the lower end of the range that has been in place for many months.

Leave a Reply

Your email address will not be published. Required fields are marked *