Weekly Update – 31 March 2019 – LS Trader

Stocks

Stocks pulled back and tested support this week but support held, and the uptrend remains intact. Both the S&P 500 and Nasdaq 100 are undergoing volatility compression, so we may see an increase in volatility and a sharp move in the coming week or so.

Commodities

From last week: “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.” As expected, Palladium’s rally came to an end this week and did so in dramatic fashion. Wednesday saw the market fall through support, bringing the uptrend and the most profitable trade so far this year for the LS Trader system to an end. Weakness followed on Thursday. Palladium closed the week lower by 11.46%.

Gold and Silver have also seen weakness, but Copper, currently the strongest of the metals, looks set to test resistance in the coming days.

Currencies

Strength looks to be returning to the dollar, at least in the short-term The Dollar Index has retraced most of its decline since the March 7th high and may breakout this week.

Similarly, the Euro, a near perfect inversion of the Dollar Index, may this week break to the downside and new lows for the year. The British Pound, the subject of much Brexit speculation, remains in a broad range between 1.2570 and 1.3470 basis the back-adjusted continuous futures contract as it has since July last year. Sentiment remains low on the Pound, but commercials remain net long, where they have been accumulating Pounds since June 2018.

Interest rate futures

The bull market in interest rate futures remains intact. All five markets that we trade at LS Trader hit new highs for the current move, but there has been some weakness seen on Thursday and Friday. The trend remains up with markets well above support.

Leave a Reply

Your email address will not be published. Required fields are marked *