Weekly Update – 28 April 2019 – LS Trader

Stocks

From last week: “This suggests that there is still potentially further to go in this rally.” Stocks rallied again with the Nasdaq 100 reaching new all-time highs. The S&P 500 fell just short of new all-time highs basis the back-adjusted continuous contract but may post new highs this week. The Dax has rallied to its highest level since September last year.

Also from last week: “As before, only the Nikkei remains in a long-term downtrend of the four stock indices we trade at LS Trader and could complete a trend change this week.” The Nikkei tested resistance this past week but stands a good chance of a breakout this week ahead.

Commodities

The energy markets made new highs this week but then reversed sharply, with a big down day on Friday breaking short-term support. That brings an end to the uptrend, at least for the short-term, but the long-term trend remains up. RBOB Gasoline, which was the first to breakout, making its move 1-2 weeks before the other markets in the sector, and therefore being the leader, remains above support with the trend intact.

Currencies

The Dollar Index rallied to new highs for the current move and also advanced against most of the majors, pushing the Euro to a new low for the year. The EUR/USD effect remains intact, with January’s high well above current levels, suggesting that was the high of the year.

Interest rate futures

From last week: “It’s possible that a short-term low may have been printed on Thursday as the RSI bounced off the 40 level, keeping these markets in the bull range. In addition, price action saw a 3-day morning star bullish reversal printed. The trend remains up.” Price action this week suggests that what we wrote last week may be correct and that the uptrend is underway again

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