Weekly Update – 24 March 2019 – LS Trader

Stocks

The Nasdaq 100 completed a trend reversal breakout to the upside this week and reached a new high for the move on Friday before closing the day lower. The long-term trend is up for the Nasdaq 100, S&P 500 and Dax, but remains down for the Nikkei, which remains the weakest of the four stock indices that we trade at LS Trader.

Commodities

Metals have seen weakness this week with the trend for Copper coming to an end for now with a break of support. Gold and Silver both edged higher. Palladium hit a new all-time high but put in a reversal on Friday, giving back all of the gains for the week. The weekly chart indicates a shooting star, which may indicate further weakness this week. The trend is mature, the sentiment is high, and weekly volatility is at its highest ever level.

Currencies

The dollar has had a mixed week, trading sharply lower and then reversing on Friday, forming a v-bottom on the daily Dollar Index. The long-term trend remains up for the Dollar Index. The long-term trend continues to favour the dollar for all the majors except for GBP/USD, NZD/USD and USD/JPY.

Note that the January EUR/USD effect is still in place, and suggests that the January high of the year, currently at 1.1718 basis the back-adjusted continuous contract, currently on June, will not be exceeded.

Interest rate futures

As anticipated and covered in recent weeks, interest rate futures have risen to new highs for the current move. We have been saying for months that interest rates would move lower, not higher. Rates move inversely to price, so higher prices equals lower rates and vice versa. This is a bull market in interest rate futures.

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