Weekly Update – 11 July 2020 – LS Trader

Stocks

The Nasdaq 100 remains the global leader for stock indices and printed new all-time highs again this week. The trend remains strong and has expanding volatility, suggesting there could be further gains. As we have said previously, when long, one should be long the strongest market in that asset class or sector, and when short, short the weakest.

The other stock indices continue to lag and remain in long-term downtrends with downside and upside breakouts within range. It’s not impossible that we could see the Nasdaq 100 continue to make new all-time highs while the other indices break to the downside. The Nasdaq 100 is the outlier.

Commodities

Gold broke above the 1800 level to reach its highest level in seven years basis the back adjusted contract. Silver reached its highest level since September last year. Copper has rallied strongly since completing a change of trend to up two weeks ago. Copper prices are now testing this year’s high posted back in January.

Lumber also completed a change of trend and has broken out to new highs for the year, and its highest level since July 2018. Volatility has reached elevated levels in Lumber.

Currencies

The currency markets remain subdued overall. NZD/USD completed a change of long-term trend to up this week and is now back at its highest level since January. There are a few other breakouts within range this week, including the dollar index.

Interest rate futures

Interest rates made another move to the upside but continue to trade in a very low volatility environment. The 5 Year T-Note reached a new all-time high. The long-term trend remains up across the sector.

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