Weekly Update – 13 October 2019 – LS Trader

Stocks

Stocks had a mixed week but ended the week higher. The long-term trend remains up with new all-time highs within range.

The Nikkei 225 completed a trend change to up this week, leaving the Dax as the only one of the four indices we trade in a long-term downtrend. However, a change of long-term trend to up and a breakout to new highs is within range for the Dax.

Commodities

Palladium rallied to hit new all-time highs again this week. Palladium, along with Gold and Silver remain in long-term uptrends. Copper, the weakest of the four, is still in a long-term downtrend.

Currencies

The Dollar has seen weakness this week. The Dollar Index broke support, and the Euro rallied above resistance.

The big move came from the British Pound. In recent weeks we have written about the huge net long position on the COT report of commercial traders. This week the Pound rallied 2.47%, with nearly all of that gain coming on Thursday and Friday.

Interest rate futures

Interest rate futures were unable to continue the rally from the prior week as resistance held firm. Four out of five days this week showed heavy selling. This has taken the RSI back to testing bull market support at the 40 level. The long-term trend remains up, but further short-term weakness may be seen and possibly a test of the September lows.

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