This week’s LS Trader financial spread betting update is now available and can be read by clicking here.
This Monday may be a relatively quiet trading day as the markets are closed in the US for the Independence Day holiday so we can expect another light volume trading day. One of the advantages of UK spread betting is that we can still place trades on days like today, albeit that there may not be much in the way of activity.
This week we continue our focus on the S&P 500, which has finally broken down through major long term support, giving a long term trend change to down. This implies weakness ahead for the stock markets long term and is a move that is in line with our long term bearish outlook for stocks and the economy. At LS Trader we have been saying for quite a while that our long term indicators are pointing south for the stock markets and may be headed considerably lower between now and the end of the year. Trading in the direction of the long term trend is one of the spread trading strategies that we employ at LS Trader.
We also look at Gold, which pierced short term support last week at $1200 and may be poised for a substantial move. There was weakness in the metals and energy sector last week and some of these markets particularly Crude oil may test support this coming week.
The forex markets have once again been active and the short term trend for US dollar weakness has continued with gains for the British Pound, Euro and Yen after the dollar index fell to its lowest level in several weeks and broke through short term support. The Yen advanced to its highest level against the dollar this year, suggesting a flow towards safer assets.
This week’s LS Trader financial spread betting update begins with:
The past week has seen the stock markets break down through support and give a long term trend change to down.….