Weekly Update – 2 August 2020 – LS Trader

Stocks

The S&P 500 ended July with an all-time high close but remains below its all-time high posted back in February.

From last week on the Nasdaq 100 “Friday did see some buying come in to close the market off the lows with a spring. The trend remains up.” The market continued its rally from the spring pattern printed during the prior week but has not yet completed the recovery to print a new all-time high. We may see that this week.

Commodities

From last week: “The metals markets have seen some big moves, with Gold and Silver making multi-year highs. Silver looks vulnerable to a correction due to reaching a volatility extreme this week.”

Silver began the week with strength to reach an even higher volatility extreme than was seen the prior week, followed by a large long-legged doji-style candle on Tuesday. The market has since consolidated within Tuesday’s wide range.

Gold crossed the $2000 level for the first time in history and made a new all-time high close. However, price closed $20 off the high of the day. As with Silver, Gold is at elevated volatility levels.

Currencies

From last week “The long-term trend is now down for the dollar against all majors except the British Pound.”

The Dollar has seen continued weakness across the board but did print a bullish engulfing pattern on Friday from a position of elevated volatility. We may see some corrective rally from here, but the trend remains down.

Interest rate futures

Also from last week “Interest rates futures continue to grind gradually higher in a very low volatility environment, with a slight upward bias…However, the price action is far from compelling.” Interest rate futures have made the long-anticipated breakout and continue to grind very slowly higher. The trend remains up across the board.

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