Weekly Update – 30 August 2020 – LS Trader

Monday is a Bank Holiday in the UK, but global markets will be trading as usual.

Stocks

Both the Nasdaq 100 and S&P 500 made new all-time highs again this week. The Nikkei 225 made a false breakout above its May high to reach its highest level since February, but then pulled back. The trend is now up for the Nikkei. Of the four stock indices that we trade at LS Trader, only the Dax remains in a long-term downtrend. However, that could change this week.

Commodities

Copper made its highest close since February 2019 as the rally that began at the March low continues. Gold, Silver and Palladium continue to consolidate. The latter is trading within a triangle and is nearing the point of a breakout. Currently, the long-term trend is down for Palladium, the only one of the four metals that we trade where that is the case.

Currencies

The Dollar has seen continued weakness this week as most of the majors continue to make new highs for the current move against the Dollar. The long-term trend is currently down for the Dollar against all the majors, and, the Dollar Index. The Dollar Index tested the early August low this past week and may exceed it this week.

Interest rate futures

Interest rate futures continue to consolidate, but the short-term weakness is evident. A change of long-term trend to down is within range for the 30 Year T-Bond, and the UK Long Gilts. Two-month lows were printed this week in the 30 Year Bonds, and 10 Year Notes.

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