Weekly Update – 1 September 2019 – LS Trader

Monday is Labour Day in the US, so US markets will be closed.

Stocks

Stocks had a bullish week. US stocks reversed from above key support and remain in long-term uptrends.

The Nikkei rallied sufficiently to break resistance and bring the downtrend to an end for now. Both the Nikkei and Dax remain in long-term.

Commodities

Silver exploded higher this week, rallying above 1800 to make its highest print since November 2011. Gold made its highest print since April 2013. Both metals came off their highs for the week by Friday’s close, but the trend remains up.

Currencies

The Pound ended the week lower by 0.99%. There will likely be further Brexit shenanigans this week. The long-term trend remains down, but commercials remain very close to an all-time net long position. Sentiment remains negative, with only 17% reporting as bullish. $1.20 remains a crucial level.

The Dollar had a strong week, with the Dollar Index rallying by 1.36% to end the week at its highest level since May 2017. This dollar rally pushed the Euro to its lowest level also since May 2017. Sentiment on the Euro has fallen to only 9% bulls, but, unlike the Pound, there is barely any commercial buying to be seen.

Interest rate futures

Interest rate futures rallied again this week to new highs for the current move. UK Long Gilts recovered from the breach of support during the prior week to hit new all-time highs and resume the uptrend. All five markets that we trade in the interest rate futures sector are bullish and remain in long-term uptrends.

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