Weekly Update – 20 October 2019 – LS Trader

Stocks

From last week: “However, a change of long-term trend to up and a breakout to new highs is within range for the Dax.” The Dax completed the expected breakout and change of trend. All four stock indices that we trade at LS Trader are now in long-term uptrends. However, the S&P 500 and Nasdaq 100 have yet to breakout and remain below resistance. Breakouts are within range for both.

It is unusual in recent times for the US markets to lag the Dax and Nikkei, but that is what we currently see.

Commodities

Palladium remains the strongest of the metals and the entire commodity space. New all-time highs were printed once again this week.

Signs of life continue to appear in the grains sector. Oats rallied to its highest level in 4 months. Soybean Oil completed a breakout to reach its highest level since February. Wheat reached its highest level since June. Soybeans turned lower from resistance but is within range of a breakout this week.

Currencies

From last week: “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.” The Pound extended gains this week with an additional 2.75% rally and completed a change of long-term trend to up in the process. The Pound has now rallied more than 800 pips in the last seven trading days to reach its highest level since May.

Interest rate futures

Interest rate futures were lower again this week but not by much. The RSI is bouncing along the 40 bull market support level on the RSI, and the long-term trend remains up.

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