Weekly Update – 14 July 2019 – LS Trader

Stocks

Both the S&P 500 and Nasdaq 100 made new all-time highs this week, as well as all-time high weekly closes. The bull market remains intact, and the long-term trend is indisputably up. The RSI remains in the bull range. As expected during this time of year, volume has declined as the rally has persisted, and volatility is waning. If these markets can hold above the breakout levels on a closing basis, that may form a platform for considerable further rally.

Commodities

Palladium made new all-time highs again this week but did come off slightly by Friday’s close. Gold continues to consolidate above support. The energy markets have continued to rally.

Coffee had shown signs that a new bull market may have been starting, but that has stalled. The market has tested support multiple times this week, which so far has held firm.

Currencies

The dollar has seen weakness this week across the board. The long-term trend continues to favour the dollar overall but is weakest and in a downtrend against the Canadian dollar.

The British Pound fell to its lowest level since December during mid-week but has put in a decent bounce since. The trend, for now, remains down.

Interest rate futures

From last week: “Interest rate futures made new highs on Friday but made a key reversal day. Price action on the 10 Year T-Note engulfed the real bodies of the last 11 days, which suggests that further weakness lies ahead and that support will be broken on both the 5 & 10 Year Notes this week.”

Interest rate futures saw the expected weakness this week, and we exited both the 5 & 10 Year T-note long positions for decent profits. Weakness has been seen across the board in the sector, with only the UK Long Gilt in a current long position. Gilts will likely at least test support this week.

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