The long term trend remains up for the dollar, commodities and stocks

The LS Trader System Weekly Update

Stocks 

Stocks continue to advance from the ended the key lows formed on from Friday 5^th with several indexes heading up towards the highs for the year. The momentum is with the bulls and the odds are increasing for a bullish breakout to the upside. As we have written before, the main index is the S&P 500 and this remains below the highs formed earlier in the year at 1147 (March contract) and this level may provide resistance as there were numerous failed attempts at that level in January.Stocks continue to advance from the ended the key lows formed on from Friday 5^th with several indexes heading up towards the highs for the year. The momentum is with the bulls and the odds are increasing for a bullish breakout to the upside. As we have written before, the main index is the S&P 500 and this remains below the highs formed earlier in the year at 1147 (March contract) and this level may provide resistance as there were numerous failed attempts at that level in January.

Last week we wrote that the Nasdaq 100 had found support at 1780 and may test 1832.5 in the coming week. The test was successful and the Nasdaq 100 advanced to 1885 after advancing 3.68% for the week. We will likely see a test of new highs for the year this week.

The Nikkei has moved up towards the top of the wide box range that we wrote about last week and may test 10600 this week. A breakout from this range to the upside may push the Nikkei up to new highs for the year.

This week sees many traders rolling in to the June contract and out of March ahead of the quarterly expiry the following week.

Volatility Index (VIX)

The VIX declined 11.44% for the week to 1742 and looks to be headed lower to the lows of the year at 16.86. Complacency has returned to the markets and any fear that was present end of January/first week of February has abated.

Commodities

Crude Oil finally cleared the key $80 level and was able to stay above it. Strength was also seen in No leaded gas and Heating oil and both look set to follow Crude higher. Long term the trend is up for the energy sector.

Gold added 1.46% for the week but pulled back from the $1150 area to close at $1135. We may be on the verge of a new leg to the long term uptrend especially if $1150 can be cleared. All the metals were higher with the biggest gainer for the week being Palladium, which resumed the uptrend having posted new contract highs and gaining 9.9% for the week. Copper may test the January highs over the coming weeks. The trend remains up for the metals.

Currencies

The dollar index was marginally lower for the week having declined 0.16%. The long term trend remains up as it does for the dollar against most of the majors but we continue to be at a point where the market appears less certain about the dollar continuing higher.

The Euro once again found support at contract lows at around the $1.3450 level, which is looking like a immovable object at present. Each decline to that level has been met with buying so the downtrend may be drawing to a close soon. That said, if the bears get their way and $1.3450 is cleared to the downside there is room for a decent continuation lower.

The British pound posted new multi month lows during the past week at $1.4778 before a strong recovery led to a close back above $1.50 and a decline of only 0.58%. As with the Euro, strong buying was seen at the lows and these lows from last week may provide new support. The trend remains down for now and upside resistance should be found around $1.58 if cable is able to continue higher.

Interest rate futures

Interest rate futures were lower across the board but for now the trend remains up for the shorter term markets. The long term trend remains down for the 30 year T Bonds and this remains the most likely of the interest rate markets to break to the downside.

 
Kind Regards

Robert Stewart

This coming week we are entering 2 new trades.

The LS Trader System Weekly Update

Stocks ended the week slightly lower but still remain above the key lows formed on from Friday 5^th which continue to providing support and look to as though they could be the bottom for the immediate term. The March S&P 500 declined for the week but closed above 1100 support at 1103. The Nasdaq 100 ended the week slightly lower but strong buying support was found around the 1780 level. We may see a test of 1832.5 this week. The Nikkei is in a wide box range between 9800 and 10600 with these 2 levels providing strong support(9800) and strong resistance at 10600. A break of either level may give rise to a good move.

Volatility Index (VIX)

The VIX had another down week but the declines were much smaller than some of the recent moves seen in this market. The VIX ended the week down 1.75% for the week. As we wrote last week, the lows for stocks formed on the 5^th February continue to provide support and stocks look fairly bullish as long as that level holds, which is also keeping the VIX in check.

Commodities

Crude Oil (April contract) declined 0.5% for the week having once again been unable to stay above the key $80 level. The range now spans between $70 and $80 with more range bound trading looking likely between these levels. Those 2 levels remain the key levels to watch for a breakout. Long term the trend is still up for the energy sector.

With the exception of Silver, the metals were all marginally lower. Gold was unable to hold on to the highs of the week at $1131.50 and drifted lower before closing the week out down 0.29% at $1118.9. The current range for gold is between $1131.5 and $1044.5. Long term the trend remains up.

Currencies

The dollar index was lower for the week but the long term trend remains up as it does for the dollar against most of the majors.

The Euro found support at contract lows at $1.3451 before ending the week with a gain of 0.19%. The current chart pattern shows indecision at these levels and support at around $1.3440 is proving to hold firm for now. If this support level can be broken then we may see a swift move lower, otherwise a continuation higher to around $1.39-$1.40 may be seen.

From last week “The current range for the Pound now looks to be between $1.53 and $1.58.” The market took out support at $1.53 before closing at $1.5245. New multi month lows were posted earlier in the day on Friday at $1.5150. This will be the level to watch as we may find support here. To the upside resistance should be found just above $1.58.

Interest rate futures

Interest rate futures were higher for the week, recovering from the recent lows and resuming the uptrend. Even the lagging market of the sector, the 30-year Treasury Bonds, moved higher from short term support. The long term trend remains up for the shorter term markets but is still down for the 30 year T Bonds.

 
Kind Regards

Robert Stewart

The LS Trader System Weekly Update

Stocks

Stocks edged higher for the week, continuing from the lows formed on from Friday 5^th which are providing support and for now look to as though they could be the bottom for the immediate term. The S&P 500 cleared strong resistance at 1100 and may continue higher from here.

From last week “The strong close on Friday for the Nasdaq 100 may provide sufficient momentum to push for a test of 1800 resistance this week”. The Nasdaq 100 advanced steadily throughout the week, taking out the aforementioned 1800 resistance level before closing at 1819.3 for a again of 2.02% for the week. We are now roughly in the middle of the current trading range between circa 1700 and 1900.

Volatility Index (VIX)

The VIX had another down week, declining just shy of 12% for the week before closing at 20.02, which is the lowest close for 5 weeks as the stock indexes continue to be complacent with the current levels. The recent lows for stocks continue to provide support for the stock indexes and stocks therefore look fairly bullish as long as that level holds, which is also keeping the VIX in check.

Commodities

From last week “The current range for Crude is between $69.50 and $78. A decisive break through either level may lead to a substantial move in the direction of the breakout”. Crude cleared $78 (April contract) and then advanced rapidly to close at $80.06. It remains to be seen as to whether there is sufficient strength to push higher towards the next resistance level.

It was another good week for the metals and all the metals were higher with Copper being the biggest gainer once again, after adding 8.93% for the week. Gold also moved higher having tested and cleared the $1100 level that we wrote about last week. The next upside target for the yellow metal is $1150.

Currencies

The trend continues to be up for the US Dollar Index as it does for the dollar against most of the majors. The dollar index ended the week higher having once again posted new contract highs on Friday.

The Euro moved lower again and took out the $1.35 target that we have been writing about recently. However, support came in for the market at just below that level and a strong close meant that after some steep declines the Euro only ended up down 0.16% for the week.

From last week “The pound has remained in a tight range spanning only a couple of hundred pips for the past few sessions and may be gearing up for a move, with the odds slightly favouring a break in the direction of the long term trend, which is down.” The pound did break down and fell all the way to $1.5336, which is the lowest level for the pound against the dollar since May last year. The trend remains down for the pound but there was a good recovery on Friday as the lows for the day were strongly rejected. The current range now looks to be between $1.53 and $1.58.

Interest rate futures

Interest rate futures were lower for the week again as the recent uptrend may be running out of steam. The 10-year T notes fell through support at 117 which we wrote about last week but recovered slightly on Friday and the trend is neutral. The 30-year Treasury Bonds remain the weakest of this sector and still look the most likely to break down first for a larger move lower. For now this market is hovering just above short term support

.

Kind Regards

Robert Stewart

The LS Trader System Weekly Update

Stocks

Stocks edged higher for the week, continuing from the lows formed on the previous Friday, which are providing support. The S&P 500 has run in to strong resistance recently at 1100 and the lows from Friday 5^th at 1041 will likely provide support, so those 2 levels are the ones to watch for a breakout in either direction. 1041 looks to be the key level for now to the downside and the trend remains up for US stocks as long as those lows hold. If support at that level fails then we may see a substantial sell off.

The Nasdaq 100 gained 2.19% for the week the strong close on Friday may provide sufficient momentum to push for a test of 1800 resistance this week

Volatility Index (VIX)

The VIX moved sharply lower for the week, giving up 13.05% as stocks continued their steady recovery. Friday’s close at 22.73 was the lowest weekly close for 3 weeks and the VIX is in the middle of the range that has formed over the past few months.

Commodities

The $69.50 level for Crude Oil that we mentioned last week held firm and the long term trend for Crude, Heating Oil and No leaded gas remains up although all 3 markets remain in the middle of the recent trading range. March Crude ended the week ahead by 4.13% and ends the week back near the $75 level that has acted like a magnet over recent weeks. The current range for Crude is between $69.50 and $78. A decisive break through either level may lead to a substantial move in the direction of the breakout but until then more sideways action is likely.

The metals markets were higher across the board with the biggest gainer being Copper, which added 7.95% for the week and moved back above the 30000 level(May contract). Gold also moved higher from $1050 support before closing at $1090. We may get a test of $1100 this week. The trend remains up for the metals with the exception of Silver.

Currencies

The trend continues to be up for the US Dollar Index as it does for the dollar against most of the majors. The dollar index ended the week marginally lower having earlier posted new contract highs on Friday.

The Euro moved lower again and fell just short of the $1.35 target that we wrote about last week. Friday saw new contract lows for the Euro at $1.3531 and we may yet see $1.29 later in the year if support at $1.35 can finally be taken out.

The Australian, Canadian and New Zealand dollars all moved higher for the week and the British pound also posted a slight gain, having earlier posted new contract lows against the dollar. The pound has remained in a tight range spanning only a couple of hundred pips for the past few sessions and may be gearing up for a move, with the odds slightly favouring a break in the direction of the long term trend, which is down

Interest rate futures

Interest rate futures were lower for the week but remain in the current uptrend with the exception of the 30 year T bond. The 5 & 10 year T notes are currently moving sideways with the 10 year note holding between 117 & 118. The trend will remain up as long as support around 117 holds. The longer term interest rate futures remain the weakest of this sector and will likely be the first to begin a new downtrend.

Kind Regards

Robert Stewart

The LS Trader System Weekly Update

Stocks

Stocks were lower for the week after a strong start. The S&P 500 rallied early but was unable to pierce the 1100 level and moved lower from there before falling at 1059, which is the lowest level for the S&P 500 since early November. The Dow 30 was also lower and support at 10000 failed to hold up the market and support was not seen until 9800. There was a rejection of the lows in the US markets on Friday as buyers came in so it will be interesting to see what happens next week for US stocks. For now the long term trend is still up and Friday’s lows may provide support next week.

The Asian markets were also lower with the Hang Seng eventually ending lower by 3.29% having begun the week positively. The Nikkei also fell 2.34% and is right on the psychological 10000 level

Volatility Index (VIX)

The VIX moved sharply higher again Thursday and Friday having drifted lower for the first half of the week. The VIX at one point on Friday was at its highest level since early November but pulled back to the middle of the range that has formed over the past few months as stocks recovered some of their losses.

Commodities

Commodity markets were lower again with some good sized declines in several markets. Sugar ended the recent uptrend with a fairly steep sell off having failed to hold above the 30 cent mark that we wrote about last week.

The metals markets were once again heavily hit with large declines for all of the major metals markets. Silver took out support at 16 and continued lower and Gold fell to the $1050 level that we mentioned last week, reaching a low for the week at $1044 before closing at $1052. If gold continues lower the next support level is at $1029 and if that gives way then we may well see a move back to test major psychological support at $1000.

With the exception of Natural Gas, the energy markets continued lower and look to be headed towards a test of long term support. For now the trend remains up. From last week “March Crude Oil tested support at $72.45 before closing at $72.89. The $72.45 support level will be the one to watch this week as a break here will likely lead to a move lower to $70”. The market actually fell to $69.50 at which point buyers came in and pushed the market back over $70. $69.50 will be the level to watch this week because if buyers fail to come back in we may get an extended move lower.

Currencies

The US Dollar Index continued to gain steam and rose to its highest level since the middle of July 2009. The trend is now up for the Dollar against many of the majors. The Euro moved lower again but fell just short of the first downside target that we wrote about last week and as before we still target $1.35 and possibly later in the year may see $1.29.

The British pound declined sharply against the Japanese Yen and also the US dollar and the trend continues to be down for Sterling. The commodity-based currencies of Canada, Australia and New Zealand were all lower once again and a change of long term trend may be just around the corner.

Interest rate futures

Interest rate futures were higher across the board and even the weak link of the interest rate markets, the 30 year T Bond manage to move higher and reached its highest level since early December. The long term trend remains up for the shorter term interest rate markets and down for the 30 year bond.

Kind Regards

Robert Stewart

The LS Trader System Weekly Update

Stocks

From last week “A correction in stocks has been on the cards due to both the size and duration of the recent rally but it remains to be seen what will happen from here. The long term trend is still up but this will not be the case for too long if heavy selling of the magnitude seen over the past week continues.”

Weakness in stocks continued but the moves lower were less than the previous week as stock market volatility declined somewhat from the previous week. Overall the long term trend remains up for stocks but weakness is evident in several indexes. The Nasdaq 100 was the worst hit after declining 3.25% for the week and falling to its lowest level since early November last year.

Volatility Index (VIX)

The VIX declined for the week, giving back a fair portion of the gains from the previous week. Support was found at around 22 and we may see a move higher again over the next couple of weeks.

Commodities

Commodity markets were generally lower with some good sized declines in several markets with Sugar and Rough rice being the only markets to move higher. Sugar added 3.89% for the week and broke out to new contract and multi year highs once again. There was a brief attempt at crossing the 30 cent mark which failed early in the week but a strong close on Friday at 29.90 suggests we may see another attempt at that level this week. If 30 cents is again rejected then a move back to support at around 28 cents may follow.

The metals markets were heavily hit with large declines in most of the metals. Copper took out support early in the week and brought a decent trend that had been in place for a few months to an end. Silver declined 4.38% for the week and is currently covering just above support at 16. April Gold was marginally lower but traded in a fairly tight range all week with traders undecided on the next move. Support at $1050 looks to be the downside target and $1148 the upside target.

Energy markets were all lower but the long term trend remains up for now. March Crude Oil tested support at $72.45 before closing at $72.89. The $72.45 support level will be the one to watch this week as a break here will likely lead to a move lower to $70 whereas support may push the market back up to the middle of the trading range that has been in place for the past few months.

Currencies

The US Dollar Index continued to move higher, advancing to its highest level since August last year. The Euro continued to decline and took out support at $1.40 that we mentioned last week. As before we now target $1.35 and possibly later in the year all the way back to $1.29.

All of the major currencies fell for the week against the dollar and the British pound declined against the Japanese Yen as well as the dollar. The commodity-based currencies of Canada, Australia and New Zealand were all lower but all have yet to show sufficient weakness for a change of long term trend.

Interest rate futures

Interest rate futures were higher with the 5 & 10 Year Notes leading the way. The 30-year bond continues to lag and registered a small loss for the week. The long term trend remains up for the shorter term interest rate markets and down for the 30 year bond.

Kind Regards

Robert Stewart

The LS Trader System Weekly Update

Stocks

Stocks were hit with heavy selling as the recent uptrend came to a fairly dramatic end. The Dow 30 plunged 4.1% for the week, the S&P 500 fell 3.9% and the Nasdaq dropped 3.46%. The European indexes were also hit heavily with the Dax down 2.97%. The worst hit index was the Nikkei 225, which fell 4.51%.

A correction in stocks has been on the cards due to both the size and duration of the recent rally but it remains to be seen what will happen from here. The long term trend is still up but this will not be the case for too long if heavy selling of the magnitude seen over the past week continues.

Volatility Index (VIX)

From last week “there will at some point in 2010 almost certainly be a correction of decent size in the stock markets and a probable large move higher in the VIX as fear returns to the markets and traders look to protect themselves.”

We certainly got a move higher in the VIX as the index moved sharply higher for the week. An explosive burst higher on Thursday and Friday pushed the market higher before closing at 27.31, a staggering 50.3% gain for the week. As we have been writing for many weeks, a move of substantial size has been on the cards and the markets are not so complacent now. It’s quite likely that the VIX will continue higher from here, especially if stocks continue to struggle.

Commodities

The commodity markets were mostly lower for the week with only a few exceptions. Sugar reached new highs again Thursday before pulling back slightly to the close on Friday. Orange juice recovered some of the previous week’s losses having moved higher from support.

Metals did not fare so well with all 5 metal markets lower for the week, with big losses for Silver (-8.11%) and Gold (-3.61%). The trend is still up for metals but Silver is leading the way to the downside and will likely be the first of the metals to give a change of trend if current weakness continues.

The energy sector was also heavily hit with big losses for Crude (-4.89%), Heating Oil (-5.1%) and No leaded gas (-3.9%). The only gainer in this sector was Natural gas, which added 2.25% for the week.

Currencies

The US Dollar advanced for the week, posting new contract highs for the week on the dollar index. The Euro also declined and took out the support levels that we have been mentioning for the past few weeks at $1.42. The Euro now looks set for a test of $1.40 and if this level can be taken out then we may well see further declines to around $1.35 and possibly later in the year all the way back to $1.29.

The British pound had another volatile week, firstly clearing resistance at $1.64 before reaching a high for the week at $1.6454 and then reversing back down towards the $1.60 level. The pound has remained in a range for several months between $1.70 and $1.57 and a breach of either level is likely to give rise to good movement. For now the trend is down so the odds are that the breakout will be to the downside.

Interest rate futures

Interest rate futures moved higher again and gains were seen in all 4 of the interest rate markets that we trade at LS Trader. As we wrote last week, the long term trend is still up for the shorter term markets and we may see a continuation higher from here.

Kind Regards

Robert Stewart

This coming week we are entering 3 new trades.

The LS Trader System Weekly Update

Stocks

As we wrote last week the week just gone is historically weak on average and we ended up with weakness leading in to the holiday weekend as US markets had their worst declines so far in 2010.

The Nikkei did move up towards 11000, but fell short at 10960 before ending the week slightly down. Currently the stock indices are holding above support and the long term trend is up.

Volatility Index (VIX)

The VIX posted new lows again at 1686 on Monday but then moved gradually higher for the rest of the week before closing at 1817. So, once again the markets remain very comfortable at the current levels and complacency remains high. As we have been saying for the past few weeks there will at some point in 2010 almost certainly be a correction of decent size in the stock markets and a probable large move higher in the VIX as fear returns to the markets and traders look to protect themselves.

Commodities

Orange juice gave up a large portion of the recent gains on Monday as the exchange doubled the daily trading limit from 10 cents per pound to 20 cents per pound (the equivalent of an extra 1000 financial spread betting points). Orange Juice ended the week lower by 12.83%.

Metals had a mixed week with big gains for Palladium and Platinum but losses for Gold, Silver and Copper. The energy markets reversed after Crude, Heating Oil and No leaded gas reached new highs but then sold off in fairly dramatic fashion.

The long term trend for Natural gas is still down after declining just over 1% for the week (February contract). Upside resistance remains in place for February Natural Gas at 6100.

Currencies

The dollar index declined marginally for the week as direction remains uncertain. Resistance at 7900 to the upside remains in place and all attempts towards this level have so far ended in failure, pushing the market lower each time. The long term trend remains down.

The so called commodity based currencies of Canada and New Zealand posted modest gains but the Australian dollar ended marginally lower having failed to push up through resistance.

The British pound had a good week, gaining 1.41% against the US dollar. We may see a test of resistance at $1.64 this week but for now the long term trend remains down.

The Euro ended the week marginally lower having earlier reached $1.4577, which is the top of the current short term range. Support at $1.42 is still in place so these 2 levels remain the range for now and a break of either should lead to a move in the direction of the breakout. For now the long term trend remains up but Friday’s sell off was fairly ugly, so a test of support at $1.42 may be seen soon.

Interest rate futures

Interest rate futures moved higher for the week with shorter term prices moving up to their highest levels in over 3 weeks. As we wrote last week, the long term trend is still up for the shorter term markets and will remain so as long as support holds. Longer term futures also gained for the week but the longer term markets have been weaker of late and are lagging the shorter term markets.

Kind Regards

Robert Stewart

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The LS Trader System Weekly Update Stocks

Stocks remain in very tight ranges as volatility remains at very low levels in the stock indexes. The S&P 500 advanced every day this week and is now at its highest level since October 2008. There is little in the way of resistance for the S&P until around the 1170 level so this extended bull market may yet continue higher. That said, this coming week is January expiration week and has been a poor week for stocks in 8 of the last 11 years. This same week in 2009 saw the S&P 500 shed 2.3%

The German Dax also reached new highs, as did the Nasdaq and the Nikkei, which may be headed for a test of 11000 this week. If 11000 can be taken out then there is the possibility of a continued moved higher.

Volatility Index (VIX)

The VIX moved lower again, reaching new low levels at 1816. This means that the markets remain very comfortable at the current levels and complacency remains high. As we said last week there will at some point in 2010 almost certainly be a correction of decent size in the stock markets and a probable large move higher in the VIX as fear returns to the markets and traders look to protect themselves.

Commodities

The big gainer for the week was Orange juice was gained 17.1% for the week and included 2 limit up days of the imposed-exchange limit, which is 10 cents per pound. 10 cents per pound equates to 1000 financial spread betting points. Some of the coldest weather in years is affecting the crops in Florida.

Copper continued to move higher, once again posting new contract highs and ending the week ahead in spite of a fairly large sell off on Thursday and Friday. The long term trend is still up for the metals sector and strength returned to both Gold and Silver during the past week with Silver adding 9.65% for the week and Gold adding 3.9%

Crude oil broke through resistance at $80 but remains just below the October highs. No leaded gas and Heating oil both advanced for the week and reached new contract highs in the process.

The long term trend is still up for energies with the exception of Natural gas. Natural gas remains the weakest of the energies but did briefly manage to clear resistance at 6000 in a volatile week before pulling back. Gas ended the week ahead by 3.18%.

Currencies

The dollar index declined for the week as the rally from the end of last year continues to fizzle out and the market remains unable to break  through resistance at 7900. Therefore we have still yet to see sufficient strength in the US dollar to confirm a change of trend and for now the trend remains down.

The so called commodity based currencies of Australia, Canada and New Zealand all advanced for the week on the back of higher commodity prices and may continue to advance. All 3 of these markets remain below the highs set in 2009 but have already recovered some of their losses from the US dollar rally at the end of last year.

The British pound ended the week slightly lower but closed once again above $1.60 having earlier been lower. The trend remains down for the pound.

The Euro held firm above support at $1.42 and a range is forming between $1.45 and $1.42. A break of either level is likely to give rise to a reasonable sized move. For now the long term trend remains up.

Interest rate futures

Longer term interest rate futures ended the week marginally higher but the shorter term advanced higher from support. The long term trend is still up for the shorter term markets and will remain so as long as support holds.

If you like the idea of such a system that can be followed in less than 1 hour per week, you can visit the link below to sign up and get started right now.

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Kind Regards

Robert Stewart

2009 was a highly volatile year on the whole, with the main exception being the stock markets over the second half of the year, which for the most part moved quietly higher. 2010 may begin in a similar volatile fashion as investors position themselves for the year ahead but on the whole, 2010 is likely to be a less volatile year than 2009 with the exception of the stock markets, which will likely see an increase in volatility at some stage this year.

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The LS Trader System Weekly Update

Stocks

2009 had the worst January on record but still ended up with gains by the end of the year after a strong rally from the March lows pushed the market ever higher through to the end of the year. On a seasonal basis this strength can often be seen continuing through to February.

For the year, the Nadsaq was the best performer from the US stock indexes, gaining 43.9%. The S&P 500 gained 23.5% and the Dow ended with an 18.8% gain. The trend remains up for stocks but the first 5 days of January could give some clues as to what may happen through 2010.

Volatility Index (VIX)

The VIX ended higher for the week and moved up slightly from the lows of the year, which ended up being 1925. The close for the year ended at 2168, which is still a very low level. At some point in 2010 there will almost certainly be a correction of decent size in the stock markets and a probable large move higher in the VIX as fear returns to the markets and traders look to protect themselves. Currently though the stock markets (S&P 500) are comfortable at these levels.

Commodities

Copper continued the move higher that has been intact for most of 2009. New contract highs were reached on the last trading day of the year and the trend remains up. Copper has gained 123% for the year, which is a big trend and may yet continue higher.
The long term trend is still up for the metals sector although there remains short term weakness in Gold and Silver.

Crude oil edged higher for the week, gaining 1.68% and reached the $80 level that we mentioned last week, which was actually the high for the week before the market moved slightly lower to the close.

The long term trend is still up for energies with the exception of Natural gas, which once again failed to clear the 6000 and pushed lower from there.

Currencies

The dollar index ended the week slightly higher having moved around a bit during the shortened trading week. We have still yet to see sufficient strength in the US dollar to confirm a change of trend and for now the trend remains down but this may change soon.

The British pound had a mixed week have first posted new contract lows early in the week before a reversal took the pound back above $1.60 and closing at $1.6146. The long term trend remains down for the pound.

The Euro ended the week higher but remains undecided on which direction to take. Support at $1.42 has so far held firm and this level will have to be taken out for a change of long term trend.

Interest rate futures

Interest rate futures reached new contract lows on the last trading day of the year before moving higher to the close. The trend is down for long term interest rates but still up for shorter term rates. Shorter term markets may be set for a test of support soon. Whether this support level holds of gives way will indicate the direction of these markets in the near term.

If you like the idea of such a system that can be followed in less than 1 hour per week, you can visit the link below for a 7 day all access free trial and get started right now.

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Kind Regards

Robert Stewart