Weekly Update – 11 October 2020 – LS Trader

Stocks

Stocks remain bullish overall. All four of the stock indices we trade at LS Trader remain in long-term uptrends and the RSI bull range. The Nikkei 225 is currently the strongest in the short-term and has cleared the highs it printed in early September. The Nasdaq 100 and S&P 500 are showing signs of strength and may continue higher to test their all-time highs posted last month.

Commodities

The metals markets have held above support and remain in long-term uptrends. This week saw Palladium breakout to a seven-month high. Copper looks set to test its local top. Gold and Silver continue to consolidate but have an upward bias.

The grains markets have continued their bullish trends overall this week, especially the Soybean markets. Soybean Meal hit a two-year high, while beans reached their highest level since June 2018. Even Bean Oil, which has been by far the weakest of the Bean complex of late has surged higher this week.

Currencies

The trend in the currency markets remains against the Dollar, with the long-term trend down for the Dollar against all of the majors. Breakouts are within range to resume major currency strength against the Dollar.

Interest rate futures

Interest rate futures are trading at or near the bottom of the sideways channel that has been in place for months. Currently, the long-term trend is still up, but the RSI has moved slightly below the 40-level on the RSI, and support is being tested. If this shelf of potential support is broken, we may see further weakness to test significant trend-defining support over the coming weeks, with a possible change of trend to down in the sector.

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