Weekly Update – 16 February 2020 – LS Trader

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

Stocks

US Stocks opened the week lower but quickly recovered to make new all-time highs.

The Dax completed its breakout and made new all-time highs. The Nikkei continues to lag and is still struggling with resistance around the 24,000 level.

Commodities

Gold continues to hold above support around 1550 and remains in a long-term uptrend, with further strength looking likely. A test of 1600 may be seen this week.

Palladium could be forming a continuation flag pattern, which, if completed, would suggest significant further upside. Volatility peaked on the day of the high and has since been under sharp compression implying that there is plenty of room for additional rally.

Currencies

The dollar has continued to gain ground against most of the majors this week. The Dollar Index has made a new high for the current move and is now at its highest level since January 2017.

Conversely, the Euro continues its decline and is now at its lowest level since September 2002. The next level of support is at 1.0820. Beyond that and parity starts to beckon.

Interest rate futures

The long-term trend remains up for interest rate futures. The 3-bar morning star reversal pattern printed during the prior week continues to provide support and maybe the platform for a launch back to new highs.

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