Silver
Silver has initially fallen during the course of the previous trading week but has also seen a complete turnaround as traders are now concerned about the tariffs that Donald Trump may be levying on the Mexicans and the Canadians. This has people worried that we are about to see a huge tariff war, and therefore they have been trying to protect their trading accounts and wealth via precious metals. That being said, silver still lags gold.
Gold
Speaking of gold, and has broken above the crucial $2800 level, an area that had been a bit of a ceiling previously. Ultimately, this is a market that should continue to see buyers on dips, not only due to the tariff a situation with Donald Trump and various other countries, but the fact that the geopolitical situation around the world is tentative at best certainly helps gold as well. The market had been consolidating for some time, and now it looks like we are ready to continue climbing to the upside. It would not surprise me at all to see gold at 3000 sometime relatively soon.
Bitcoin
Bitcoin continues to see buyers on dips, much like the gold market, and quite frankly it is probably for all of the same reasons. That being said, there is still a significant barrier in the form of $110,000 above that comes into the picture to cause a bit of a headache. If we were to break above that level, then you would see Bitcoin go much higher. At this point, I consider this to be “bullish consolidation”, meaning that there will be plenty of buyers every time it dips, and that eventually we resolve all of this consolidation to the upside. The question of course will be “when does it happen?” I don’t know that, but I will more likely than not see it happen after the US administration does crypto reform. Either way, I have no interest in selling this market.
DAX
Another week, another massive amount of buying of the DAX 40. All things being equal, this is a market that is extraordinarily bullish, and I would love to see some type of pullback. However, it seems to be defying gravity at the moment, so I think it’s probably only a matter of time before we overtake the €22,000 level. I will be very interested in the text on any type of short-term pullback that shows signs of a bounce again. I have no interest in shorting this market and the easy money coming out of the European Central Bank should continue to drive money into equities.
USD/JPY
The US dollar initially tried to rally against the Japanese yen but then ended up falling for the week. That being said, this is still a market that looks like it has a lot of support underneath it, and quite frankly I think you still look at this as a “buy on the dips” opportunity. With that being said, I think that eventually we will go looking to the ¥158 level above, which was a short-term swing high. Even if we break down from here, I believe that there will be a massive amount of support at both the ¥152 level, and the ¥150 level.
USD/CAD
Everybody’s watching the Canadian dollar right now, as the US dollar continues to threaten it. With Donald Trump seemingly ready to slap 25% tariffs on Canada, it’ll be interesting to see how this plays out. Quite frankly, if he does, I think the move is already set up to go much higher. Underneath, we have the support level of 1.43 offering a little bit of a short-term floor. Quite frankly, there are plenty of reasons not like the Canadian dollar, and Donald Trump is just one of them. I do believe we eventually break higher.
EUR/USD
The Euro initially tried to rally during the week but then gave back gains to show signs of weakness yet again. Ultimately, I do think that the euro continues to be shunned, and with that being the case I think you’ve got a situation where you will continue to see the euro weakened against the US dollar, but quite frankly due to the fact that the interest rate differential between the 2 economies will continue to be a mile wide, and at the same time, you have the European Central Bank NA rate cutting cycle, while the Federal Reserve seems to be hesitant.
NASDAQ 100
The NASDAQ 100 initially plunged during the trading week, as Monday saw a huge reaction to the DeepSeek news. With that being said, the market has completely recovered, and it now looks like it’s ready to go positive. The only question at this point in time is going to be “When do we break above 22,000?” I remain bullish of the NASDAQ 100, at this point in time.
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