If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!
The LS Trader System Weekly Update
It’s the same old story for the stock and currency markets as these markets remain within the trading ranges that have been in place for over a month now. The past week saw an overall rise for the US dollar and a decline for stocks.
This coming week will be a short trading week as the US markets are closed on Thursday 26th for Thanksgiving, followed by a shortened trading day on Friday.
Stocks
The Dow 30 remains above the psychological 10000 level but the S&P 500 once again rejected the 1100 level having reached a high for the week of 1112 on Monday before spending the rest of the week drifting lower and perhaps critically closing the week out below 1100 at 1090. The Nasdaq 100 also began the week well, clearing the resistance level at 1800 early in the week before declining later in the week and closing at 1763. The trend for all 3 of these markets is still up but this coming week may give us further indication of which way these markets will move longer tern.
The Nikkei 225 is currently the weakest of the global stock markets that we follow at LS Trader and looks to be headed lower having taken out support at 9600.
The VIX ended the week slightly lower and still looks to be headed towards support at contract lows of 20.10 at which point we can expect the VIX to move higher again. These low readings on the VIX indicate market complacency but this may soon shift if we get a sell off in stocks and may jump above 30 in no time flat.
Commodities
Gold advanced again for the third straight week and once again posted new all time highs and closed the week out at $1146.8. Silver also advanced for the week after strong buying on Monday with similar moves happening in Platinum and Palladium.
Copper finally cleared and managed to stay above the 30000 level and the 30000 level which has acted as resistance for so long may now switch to becoming support. The trend is up in all of the metals and this will likely continue unless we get a strong rally in the US dollar.
The energy markets were sharply higher early in the week as buyers came in to the market at just above support levels. Once again the level between $80 and $82 proves difficult to clear and failure at this level sent the markets lower again and look to be headed for another test of support this week.
Natural gas again posted new contract lows and the market continues to slide lower in line with the long term trend.
Currencies
The dollar index posted new contract lows on Monday at 7475 before buyers returned to the market and once again the level around 7500 is proving very difficult to break to the downside. The dollar index closed the week out at 7573 having been higher earlier in the day on Friday.
The Swiss Franc had another go at the 10000 level stalling at 9955 and then heading lower to the close on Friday. This past week has seen a move towards the defensive currencies of the Japanese Yen and US dollar and out of the higher risk currencies. The trend remains down for the US dollar but unless support can be decisively taken out at just below 7500 on the dollar index then we still remain susceptible to a bounce higher for the dollar.
Interest rate futures
Interest rate futures were higher across the board this week with the shorter end of the interest rate markets faring the best. The 5 year note is in a nice uptrend and this past week moved up to its highest level since the first week of April. Also moving up was the 10 year note and still lagging behind were the 30 year bonds which may be set to test resistance this coming week as we look to switch from the December to March contract.
Phil Seaton
PS. Sign up for a 60 day trial to The LS Trader financial spread betting system by clicking here
Filed under LS Trader by 
The LS Trader Financial Spread Betting System Market Update
As we have been writing for the past month, the stock and currency markets remain within the trading range that has formed over the past month and these markets remain undecided on the next move. The US dollar remains the key focus and is currently still in long term downtrend and moves in the dollar are followed by moves in the opposite direction in the stock markets.
The level to watch in the stock markets is still 1100 for the S&P 500. Although the Dow 30 was able to clear and stay above the key 10000 psychological level the S&P 500 is the real stock market and remains the market to watch. A new contract low posted during the past week at 7485 on the Dollar Index is a major focus point. We also still have the $1.50 level for the Euro/US dollar in range, which has so far provided strong resistance on all attempts to clear it.
These markets could move in either direction although probability slightly favours a continuation in the direction of the long term trend. The longer the indecisiveness remains in these markets the more likely that eventual breakouts in either direction will lead to substantial moves.
Stocks
As mentioned above, the Dow 30 cleared the psychological 10000 level and remains in an uptrend. The S&P 500 is also in an uptrend but is not as strong as the Dow. The Nasdaq 100 has also performed well, continuing the uptrend and perhaps importantly, breaking out to new contract highs after a second straight week of gains. A test of 1800 is likely this coming week.
The VIX declined for a second straight week and still may fall to support at contract lows of 20.10 at which point we can expect them to move higher again.
Commodities
Gold cleared the $1100 level that we wrote about last week and posted new all time highs in the process at $1123 (December contract). Friday’s close at $1116.7 is a new all time high weekly close and the trend remains firmly up, especially as long as gold stays above $1100.
The past week also saw moves higher for Palladium and Platinum, with both markets registering new contract highs. Copper is slightly off the pace and remains unable to decisively move above the 30000 level and much more failure to clear that level is increasingly likely to lead to a sell off.
The energy markets were lower for the week with both Crude and No leaded gas testing short term support levels. There is a trading range that has formed between $82 at $76 that has held firm over the past few weeks and failure to clear the $82 to the upside has led to weakness. Buyers will need to come in to the market on Monday otherwise the recent uptrend in Crude is likely over for now.
Natural gas continues to slide lower in line with the long term trend and new contract lows were posted during the past week.
Currencies
The dollar index briefly posted new contract lows at 7485 before buyers came in to the market. The trend remains down but support is coming in every time the market approaches the 7500 level. 7485 will likely provide strong support, but if support fails then another wave of selling may hit the dollar.
The two best performing currencies at present against the US dollar are the Swiss franc and the Australian dollar. The Aussie dollar posted new contract highs this past week and the Swiss franc tested new contract highs before falling just short, having been unable to clear the 1000 level. The trend remains up for both of these markets.
Interest rate futures
The 10 year notes found support at just above the 11800 level that we wrote about last week and moved higher form there, reaching new highs for a month in the process. The 5 year notes were also higher and fell just short of new contract highs. The trend remains up for the shorter term interest rate futures. Longer term Treasury bonds are weaker though and the 30 year bond fell through support to reach their lowest levels since August before moving slightly higher to the close on Friday.
Phil Seaton
PS. Sign up for a 60 day trial to The LS Trader financial spread betting system by clicking here
Filed under LS Trader by
The LS Trader System Market Commentary
The stock and currency markets remain within the range that has formed over the past couple of weeks and continue to be undecided on the next move. As we have previously mentioned, everything seems to be about the US dollar right now and moves higher in the dollar are sending stocks lower and vice versa. This week saw gains for stocks and an eventual decline in the dollar in spite of a move higher for the dollar index early in the week, which later corrected.
The levels to watch are still 10000 for the Dow, 1100 for the S&P 500, 7500 for the Dollar Index and the $1.50 level for the Euro/US dollar. Eventually these levels will be cleared or provide resistance (support in the case of the dollar index) and this will likely lead to the next move in stocks and currencies. Right now things can clearly go in either direction.
Stocks
Stocks gained for the week with the Dow 30 finding support at 9600 and rallying all the way up to a test of 10000, which was again rejected. The market then closed just below 10000 and we will likely see a test of the psychological 10000 level again this week.
The S&P 500 also moved higher from support earlier in the week but remains further adrift from the psychological level of 1100 than the Dow is from 10000. The range is currently 1026 down and 1100 up for the S&P 500. If 1100 can be cleared to the upside then we may see a continuation of the rally but if 1026 support fails then a decline to 1000 is likely and if that fails then a steep sell off may follow.
After a huge rise in the Volatility Index the previous week the VIX declined for the week, having posted a new high on Monday that was the highest level for the VIX since early July. The VIX ended the week lower at 24.19 and may now fall to support just above the 20 level. The moves in the past couple of weeks show what can happen when a little fear returns to the markets and may be a preview of what will happen if stocks fail again to clear key levels and then start a sell off.
Commodities
Gold was the big mover for the week with large buy orders on Tuesday taking Gold passed previous all time high resistance. Friday’s close of $1095.7 is a new all time high close and falls just short of $1100. It will be interesting to see the reaction of the market this coming week if we get a test of this level. Clearly the trend is very much up for Gold.
For the most part commodity markets were lower with many markets declining near to short term support levels.
Currencies
It was an eventful week for the Dollar, with a spike higher in the dollar index on Tuesday, which later corrected and the dollar index resumed the downtrend although the spike higher will have taken many shorts out of the market. The dollar index ended the week lower and may now go on to test contract lows at 7508. We may well see strong support at 7500.
Interest rate futures
Shorter term interest rate futures gained for the week, with the uptrend still intact. The longer term Treasurys lagged behind with both the 10 year notes and 30 year notes finishing lower for the week. The 10 year notes were only marginally lower but the 30 year bonds fell to test support at 118 before closing just above this level. 118 remains the level to watch this week.
Good trading
Phil Seaton
PS. Sign up for a 60 day trial to The LS Trader financial spread betting system by clicking here
Filed under LS Trader by
The LS Trader System Weekly Market Round Up
As we have been writing for several weeks, the markets have been at critical turning points and the direction for the next few weeks would likely be determined by the reaction of the markets to those key levels. During the past week stocks failed to clear key levels and sold off sharply, whilst at the same time the Euro failed to clear $1.50 and the Euro sold off against the dollar. The long term trend is still up for stocks and down for the dollar but both of these trends may be set change over
Stocks
Stocks continued to struggle at key levels and this led to a sharp sell off. The S&P 500 continued the decline having failed to clear 1100 and the other markets followed suit. The S&P closed at 1033 and may be headed for a test of short term support at 1015 as early as Monday this week. Should 1015 fail then we will likely see a decline towards 1000 and the reaction at this level may determine what will happen to the stock markets over the next several weeks.
Commodities
Commodities were mostly lower on some new strength in the dollar and a flight to safety as stocks fell. However, there were some commodity markets that were higher in spite of the broad sell off and these included Lean Hogs, Lumber, Oats, Orange juice and Rough Rice.
Rice cleared key resistance and moved to its highest level in almost a year and we also saw large gains for Lumber and Lean Hogs. The long term trend in the latter 2 markets has been down for a long time, but if strength continues this may be set to change soon.
December Natural gas continues to head lower and the long term trend remains down.
Currencies
The December Dollar Index moved higher, reaching its highest level in almost a month. The long downtrend that has been in place for months may well be coming to an end and at least for now and we may be on the verge of a bounce higher for the dollar. The dollar and the Japanese yen are perceived as the safer currencies and these were the 2 big gainers for the week. The British pound also gained for the week and moves to within range of its highest level in a month.
As we wrote last week, the Euro was the key currency to watch. After a few feeble attempts at staying north of $1.50, the market rejected the level and the Euro sold off with many of the other currencies following suit.
Interest rate futures
Interest rate futures moved higher from Monday’s lows and a strong close on Friday may lead to continued strength early in the coming week. This was the first week of gains in 4 for interest rate futures and both the 5 and 10 year notes remain above support having tested support levels this week and the long term trend remains up.
Good trading
Phil Seaton
PS. Sign up for a 60 day trial to The LS Trader financial spread betting system by clicking here
Filed under LS Trader by
The LS Trader System Weekly Update
As has been the case for the past couple of weeks, the stock and forex markets remain at critical points with the 1100 level the focus for the S&P 500 and the $1.50 level the critical point for the Euro/US dollar. The trend remains the same as before which is up for stocks and down for the dollar at present.
This week the LS Trader system is entering 1 new trade as we wait on the sidelines on several markets until the trend direction becomes clearer.
Stocks
As mentioned above, stock index futures continue to struggle with key levels. The S&P 500 failed to clear resistance at 1100, reaching a high for the week at 1099. This will again be the level to watch this coming week as much more failure here is likely to send the S&P lower. However, if 1100 can be decisively cleared then that may also provide a platform for another move higher. The direction that the S&P takes will likely be mirrored by the other stock indexes.
The volatility index ended the week higher having reaching new 13 month lows midweek. If stocks decline then we can look for the VIX to begin moving higher.
Commodities
Gold and Silver are consolidating just below contract highs in an increasingly tighter range. Gold continues to find support at around $1040 and this is the level to watch to the downside as so far buyers have come in each time the market has dropped towards $1040. Copper broke out of the recent trading range and cleared long term resistance at 30000. The long term uptrend which began early in the year continues
December Crude oil hit a new contract high at $82 and closed on Friday above the $80 level at $80.50. The long term trend is up for Crude oil, no leaded gas and heating oil. December Natural gas dropped by 4.1% for the week and remains unable to confirm a new uptrend and follow the other energy markets higher and the long term trend remains down.
Currencies
The December Dollar Index edged lower again and continues to put in new contract lows and Friday’s close was the lowest weekly close of the year. The long term trend remains down but as before the key will be whether the Euro, which makes up 57% of the Dollar index is able to stay above 1.50.
The Euro will be the key currency to watch this week having cleared the $1.50 level for the first time since August 2008 and ironically closing right on $1.50. Clearly this market could go either way from here and whichever way it goes it will influence the Dollar index and the Swiss Franc which is highly correlated with the Euro.
The commodity based currencies of Australia and New Zealand continue to move higher, both posting new contract highs in the process. The Canadian dollar though was lower though, declining 1.4% for the week.
The British Pound had a volatile week after initially continuing higher from contract lows at $1.57 and rallying all the way up to just shy of $1.67 before selling off sharply and closing at $1.63. The Japanese Yen continued recent weakness and failed at key support levels, bringing an end to the recent uptrend.
Interest rate futures
Interest rate futures were higher earlier in the week but then moved lower to the close on Friday and the recent uptrend may well be coming to an end after a third week of declines. .
Good trading
Phil Seaton
PS. Sign up for a 60 day trial to The LS Trader financial spread betting system by clicking here
Filed under LS Trader by
The LS Trader System Weekly Update
The markets remain at critical points with both stocks and the US dollar at potential turning points. The trend remains up for stocks and down for the dollar for now.
This week the LS Trader system is entering 5 new trades, taking our total number of open trades to 22 which is the most we have had open for quite a while, indicating that more markets are beginning to trend by breaking out from their trading ranges.
Stocks
Stock index futures once again moved higher after testing support levels and the trend remains up. The S&P 500 cleared the first resistance hurdle at 1080 but has so far been unable to clear 1100. This will be the level to watch this week and to a lesser extent the 10,000 level on the Dow 30. The German Dax posted new contract highs on Friday before a fairly steep sell off. The trend remains up for now.
The volatility index moved lower again, reaching 13 month lows and closing at 21.43 and may be headed lower towards the 20 year average of the index at 20.26. This shows that the market is still complacent and that there is a lack of fear in the markets.
Commodities
Commodities were generally higher for the week on the back of another poor week for the US Dollar. Gold posted a new all time high during the past week at $1072 but could not hold there and closed at $1051.5.
Silver followed Gold’s higher and briefly crossed resistance at 1800 but was also unable to stay there and fell back to the close ending the week lower by 1.53%. Copper remains within the recent trading range and the levels to watch are still 30000 up and 26800 down.
Crude oil surged higher, clearing the key $75 level and may now be set for a move higher to at least $85 and possibly higher. The long term trend is up again for Crude oil and no leaded gas and heating oil followed crude higher.
Natural gas ended the week marginally higher but still has yet to show sufficient strength for a long term change of trend and for now the trend remains down.
Currencies
The December Dollar Index continues to move lower and once again put in new contract and yearly lows before closing at 75.77. The long term trend remains down and key short term levels to watch are be 7773 up and 7540 down. One factor which may affect the Dollar index will be whether the Euro can push up through resistance at 1.50. The Euro has not been above 1.50 since August last year and this level may present considerable resistance. The Euro makes up 57% of the Dollar index, so moves in the Euro have a large impact on the Dollar index.
The commodity based currencies of Australia, New Zealand and Canada and gained for the week again, along with the Swiss Franc.
The British Pound found support from the $1.57 level we mentioned last week and rallied sharply higher. The Japanese Yen was lower for a second straight week, losing 1.13% for the week. The trend however is still up for the Yen but we may be headed for a test of support this week.
Interest rate futures
Interest rate futures were marginally lower for the week, making it a second straight week of declines. In spite of the past 2 week’s weakness, interest rate futures remain above short term support levels and the trend remains up. One marginally bullish sign for interest rate futures is that this past Friday bucked the trend of Treasurys falling on Fridays which has been the case for the past few months, as Treasurys gained on Friday. As we wrote last week we may be set for a test of these support levels this week which may determine the direction of interest rate futures over the next couple of weeks.
Good trading
Phil Seaton
PS. Sign up for a 60 day trial to The LS Trader financial spread betting system by clicking here
Filed under LS Trader by
The LS Trader system gained in equity for the week, benefitting from moves in the metals and currency markets. This week we are entering 3 new trades, taking our total number of open trades to 18.
Stocks
Stock index futures once again moved higher after testing support levels and the trend remains up. The S&P 500 is now approaching new highs for the year and the 1080 level which may well determine the direction of the stock markets over the coming weeks. There is considerable resistance at around the 1080 level for the S&P 500 which may send the market sharply lower should it be unable to clear it.
The volatility index moved lower having again been unable to clear the key 30 level again. The VIX has not been above 30 since the middle of July and this week fell to almost the lowest level for the year, closing at 23.12. This shows that the market is once more complacent.
Commodities
Commodities were generally higher for the week on the back of a poor week for the US Dollar. Gold stayed above key support and rallied sharply early in the week, setting new all time highs in the process before closing the week at $1048.5. The December contract posted new all time highs of $1062.7 on Thursday and if that high can be cleared again then we will be in unchartered territory for Gold as we are at all time high levels, so there are no targets that can be set to the upside.
Silver followed Gold’s lead and also rallied sharply, posting new highs for the year. Unlike Gold, Silver is not at all time highs so we can look to the highs set in July 2008 at around the 2000 level as the next upside target.
Copper found support at 26800 and may now test the 30000 level again, especially if Gold continues to rise. For now the levels to watch are 30000 up and 26800 down.
Currencies
Having been unable to clear resistance at 7773 the December Dollar Index moved lower again and posted new contract lows at 7568 before closing at 7662. The long term trend remains down and key short term levels will be 7773 up and 7568 down.
The commodity based currencies of Australia, New Zealand and Canada were the big gainers for the week with all 3 markets posting new highs for the year.
The British Pound ran in to short term resistance at $1.6117 and fell to close the week at $1.5832, still above the key level we mentioned last week at $1.5766. This will once again be the level to watch as a break may lead to a move lower.
The Japanese Yen hit new contract highs during the week but ended the week with a 0.26% drop. The trend remains up for the Yen.
Interest rate futures
Interest rate futures declined sharply on Thursday and Friday having failed to push on from the previous week’s advance and make new contract highs. In spite of this week’s weakness, interest rate futures remain above short term support levels and the trend remains up. We may however see a test of these support levels this week which may determine the direction of interest rate futures over the next couple of weeks.
Good trading
Phil Seaton
PS. Sign up for a 60 day trial to The LS Trader financial spread betting system by clicking here
Filed under LS Trader by
The LS Trader System Market Update
It may be a little early to say yet but there are signs that we may be going to see a steep correction in the stock markets and a bounce higher for the US Dollar. Both of these events may lead to some good trading opportunities over the coming months but as ever we will not attempt to predict market moves, but wait for the market to tell us when the time is right for us to initiate our trades.
This week the LS Trader system is entering 3 new trades, which takes our total number of open positions back to 17 trades. Notably we now have quite a few short trades, more than we have had recently, suggesting further weakness ahead for stocks and commodities.
Stocks
Stock index futures recovered somewhat early in the week but then the weakness from the previous week emerged and the markets sold off below short term support. Long term the trend is still up for stocks but after the strength of the recent rally from the March lows, a correction looks due. As we wrote last week: “If the markets do fail at support levels then we could be on for a steep sell off over the next few weeks”.
The volatility index moved higher again, heading towards 30, which as we wrote last week may be a key level for the markets. If the 30 level is taken out it may be a sign that fear is returning to the markets. The VIX has not been above 30 since the middle of July.
Commodities
Gold held firm at support at $987 and pushed back above the $1000 level, closing the week at $1004. As with this past week we will look for support to hold otherwise the current bull run for Gold and the other metals will likely be over and we may see Gold fall towards $940.
Copper briefly fell through support at 26800 before closing right on the support line. The market looks undecided at this point but failure of support at 26800 may lead to a sharp decline.
Crude oil found support at just above $65 and moved higher, closing the week just shy of $70 and moving back to within the recent trading range. November Natural Gas had its first declining week in the past 4, leaving the long term trend down.
Currencies
The December Dollar Index climbed for the week, showing signs that we may be near a bottom for the US Dollar. The Euro fell for the second straight week and the Swiss Franc also declined for the week. The Australian and New Zealand dollars both declined slightly for the week and the markets are clearly undecided and may be approaching a turning point.
The British Pound fell to its lowest level since May against the Dollar but recovered slightly during the week. $1.5766 will be the level to watch this week and failure here may lead to a move lower. The Japanese Yen had 2 big moves higher during the week but was unable to hold those levels and ended the week just ahead by 0.31%.
Interest rate futures
Interest rate futures continued their advance after the 10 year notes took out resistance at 11851. As we wrote last week “If this level can be taken out then the other markets may follow through for the next leg higher, especially if stocks continue to decline”. The long term trend is now up in all the interest rate futures markets that we trade at LS Trader.
Good trading
Phil Seaton
PS. Learn more about the LS Trader financial spread betting system by clicking here
Filed under LS Trader by
This past week was a week of 2 halves for the markets, which for the most part began well before reversing on Wednesday with several markets selling off to the close on Friday. It’s too early to read too much into a 3 day move to suggest a long term trend change but there was certainly weakness leading in to the weekend. It will be interesting to see how the markets respond on Monday.
This week the LS Trader system is entering 3 new trades, which takes our total number of open positions to 17 trades, which is the most we have been in recently and indicates that more markets are beginning to trend.
Stocks
Stock index futures sold off after reaching new highs earlier in the week. The S&P 500 posted new highs for the year at 1075.5 mid week but ended the week sharply lower at 1041. The other stock indexes followed the S&P 500 lower after a reversal on Wednesday. Although the fundamentals don’t support a move higher by any stretch of the imagination, the key indexes all remain above short term support so we may yet see a test of recent highs. If the markets do fail at support levels then we could be on for a steep sell off over the next few weeks.
The volatility index moved higher from the lows of the year and may be set to move higher towards the 30 level. If this level can be taken out then it may be a sign that fear may be returning to the markets. The VIX has not been above 30 since the middle of July.
Commodities
Gold had a volatile week having pushed initially to new highs at $1020 but failing to clear that level which led to a fairly steep decline and back to below the $1000 to close at $991. We may see a further decline to support at $980 on Monday and if this fails then the current bull run for Gold and the other metals is likely over for now as we may see Gold fall towards $940.
Copper found support at 27550 early in the week and moved higher before failing and finally taking out support, bringing an end to the long bull run that has seen Copper rise almost 100% in 2009 alone.
Crude oil broke out of the recent trading range that had formed between $75 and $68 and may now move lower to test support at around 6250. Heating oil and No leaded gas followed Crude lower. November Natural Gas had another strong week after gaining 6.9% for the week. The long term trend is still down for Natural Gas but that may soon change if recent strength continues.
Currencies
The December Dollar Index fell to new contract lows midweek but bounced higher to the close on Friday. The Euro climbed to its highest level against the dollar since August 2008 but fell to the close on Friday. The Australian and New Zealand dollars also rose to new highs for the year but were both unable to stay there by Friday’s close.
The British Pound fell through support against both the Japanese Yen and the US Dollar and may bet set to decline further. The Japanese Yen reached new contract highs against both the Pound and the dollar and may continue rise to test the highs for the year.
Interest rate futures
Interest rate futures moved steadily higher throughout the week and the 10 year notes look set to test resistance at 11851. If this level can be taken out then the other markets may follow through for the next leg higher, especially if stocks continue to decline.
Good trading
Phil Seaton
PS. Learn more about the LS Trader financial spread betting system by clicking here
Filed under LS Trader by
The LS Trader System Weekly Update
We had a second straight week of equity gains for the LS Trader system which was quite well ahead for the week before a few markets sold off on Friday. We again banked some good profits from 3 contract rollovers which banked a total of 708 spread betting points from the US dollar index, the S&P 500 and the German Dax.
This week the LS Trader system is entering 1 new trade, which takes our total number of open positions to 16 trades.
Stocks
Stock index futures just keep on edging higher and gained for the week again in spite of a slightly lower close on Friday, which was off from the highs of the week. The S&P 500 blasted through the 1050 level that we mentioned was a target last week and reached a new high for the year at 1070.5 (December contract). The German Dax gained for a second week and hit new highs for the year again.
Commodities
We got the second close for Gold above the $1000 level that we were looking for and this led to new highs for the year with the market reaching $1020 on Wednesday before ending the week at $1010. We may see a test of support at $1000 this week which should act as support. If $1000 fails then we may see a pullback to around $980. If Gold does find support at $1000 then we may see a move higher to test all time highs set in 2008 soon.
Copper again failed at 30000 having moved higher from support at 27650. We will look for support again at this level over the coming week which if it fails to hold will likely be the end of the copper bull run for now.
Silver was sharply ahead mid week and tested the 1750 level before selling off towards Friday’s close. The trend remains up and we may see a move higher towards 1850, especially if Gold holds over $1000. Silver is highly correlated with Gold and mirrors Gold’s movement to quite a large extent.
Crude oil remains within a trading range that has formed between $75 and $68. A break of either level may give rise to movement in the direction of the breakout. Heating oil and No leaded gas are also in trading ranges and are mirroring the movements of Crude. November Natural Gas had another strong week after gaining 16% for the week. The long term trend remains down for now but that may change if the recent strength continues.
Currencies
The September Dollar Index fell to new lows for the year during the past week and we rolled forward in to December banking good profits in the process. This has been a good trade for us as we have been short since the 22nd May, riding the trend down. The trend remains down for the dollar which fell against most of the majors this week with the exceptions being the British pound and the Japanese Yen.
It was another week of gains for the New Zealand dollar and the Australian dollar with both markets continuing to make new 52 week highs.
Interest rate futures
Interest rate futures ended the week lower having fluctuated throughout the week. Interest rate futures markets are back in to the trading range for now.
Good trading
Phil Seaton
PS. Learn more about the LS Trader financial spread betting system by clicking here
Filed under Blog by
