Well, seeing that this post is only going up at Midnight, we’ll just keep it simple and get straight to the trade ideas.
Offshore trade ideas
Dow Jones Transportation Index (DTX)
This is our canary in the coal mine. If DTX can get and hold above both the down trend line and the 89 day moving average, it will trigger a buy for us on most U.S. equity indices.
Russell 2000 (IWM)
The going nowhere slowly chart. After a long flat like this, all we can know for certain is that a large move is coming. Until this range breaks though, there is nothing to do here.
S&P 500 (SPY)
SPY might be leading the pack here with a buy signal. It’s not the strongest buy signal ever generated (4 out of 6), so it’s best to wait for the DTX to confirm.
Brent Crude OIl
Regular readers of our blog are probably bored of us going on and on and on about oil… but we’re almost at the $86.71 handle. We’ll have to see what happens after that target is reached. Fundamentally, there is no reason for oil to come down any time soon. At least not in our view.
Xtrackers Physical Rhodium ETC Fund (XRHO)
The weekly chart has not broken yet, but this is still very much a commodity to keep an eye on.
Platinum (PL1!)
Decent break of the down trend here. It would be nice to see a push to $1140 and get above all the moving averages. Hopefully this is the start of a new multi-month up trend.
Palladium (PA1!)
Palladium also rallied hard over the last two sessions of last week. If it can get above $2150, things will get very interesting in the PGM space.
Bitcoin (BTC)
Weekly, logarithmic chart om BTC is still looking very bullish. Can we have that fourth quarter melt-up now please?
USDZAR
A bit of a bumpy week for the ZAR last week. Our view, for now, is somewhat undecided. We saw a lot of USD buying last week (DXY not shown in this post), so by the looks of things, emerging market currencies might remain under pressure. Besides, this chart is giving some mixed signals at the moment so it’s probably best we just stay out here.
South African trade ideas
JSE Top 40 Index (ALSI)
Nothing like a little bit of whipsaw on the ALSI to remind you that to be a short-term trader you have to use stop losses. Again, no real read for us here, so we’ll sidestep this market for the week as well.
African Rainbow Minerals (ARI)
ARI finding support on a key level here. It could get really interesting once that down trend is broken. Might be worth taking a small long here and adding into it once that trend line is broken. Just be careful with liquidity here.
BHP Group (BHP)
Above R398.00 and things get interesting. Maybe a small long to start with and again adding to is once it gets going.
Capitec (CPI)
No real trade here, just an observation. Last week we’d thought that it was a long, but the seller was just too big. Now we wait for another decent setup.
Impala Platinum (IMP)
Boom! Three day low as a trailing stop for now. Maybe we see R220 this week?
Mondi (MNP)
MNP should be on your watchlist this week. You can put a tight stop on this and potentially get some good upside once this down trend breaks.
Want ideas, insights and research?
*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.