Despite that so very much happened last week, when we look around the market for new trading setups, we’re not finding too many to get excited about. Overall though, we expect the week ahead to be ‘risk on’. At least for the developed world. South African markets might be facing its own headwinds and continued currency fallout as a result of the cabinet reshuffle last week. Setups are sparse, so play defense and don’t try to force trades that are not there.
Offshore trade ideas
S&P 500 (SPY)
The break out came and it went higher. After market close in the U.S. on Friday, Futures traded up and closed at the highs. Plus with the little crypto pump over the weekend, odds are good we see more highs in the week ahead.
Russell 2000 (IWM)
One range to define them all… nothing to see, nothing to do. We wait patiently for small caps to pick a direction.
U.S. Dollar Index (DXY)
Alright, looks like we’re having another go at the $93 and $93.50 levels. We cannot stress the importance of that resistance zone enough. Once the DXY gets through there, things will get interesting. Speculative positioning among fund managers has also finally shifted to net long for the first time since early last year.
Brent Crude Oil
Maybe this time we’ll get a chance to buy in our support zone.
Falling wedge playing out nicely.
Finally the bounce from the $35k. Once above $64k, expect the madness.
South African trade ideas
JSE Top 40 Index (ALSI)
The resistance holds.. for now. The high probability trade is still toward the downside, but there is no compelling entry point for it now.
Anheuser Busch Inbev (ANH)
We pointed out ANH as a potential buy off the R880 support last week. R880 was tested and it seems the bounce has begun. Also, a much weaker ZAR will help this trade.
British American Tobacco (BTI)
Not quite all the way to the bottom of the range, but BTI is looking good for the bounce to the top of the range.
Transaction Capital (TCP)
TCP setup from last week is starting to play out a little. This is a trend following trade, so trailing stops and heaps of patience are needed.
And that is all we have for this week. As usual, if you would like to know more about trading with us, our very competitive brokerage fees (epsecially on offshore trading) or joining our community, please feel free to contact us and we’ll be in touch.
*Please note that these trade ideas form part of a larger weekly plan and the value of financial products can increase as well as decrease over time, depending on the value of the underlying securities and market conditions. The risk of loss arising from trading in Contracts for Difference can be substantial. You should carefully consider whether such investments are suitable for you in the light of your circumstances and financial resources