Last week we called for new highs and we got them. Now we’re kind of sitting here thinking that is is looking a bit stretched and wondering if the market is not due a bit of a breather.
PS. a short post this week, but some decent looking setups nonetheless.
Offshore trade ideas
S&P 500 (SPY)
So… a new high it is. From here though, it seems that there is no edge to be found for us. Given the VIX context below, we would not be too surprised to see a correction in the coming week.
S&P 500 Volatility Index (VIX)
Just an observation here, but every time (during the last few months at least) the VIX has been around the 15 to 16 level, we’ve seen a spike higher in the VIX and a few red days on the equities indices. A weekly or monthly call could be a decent trade on the VIX here. Also, this makes us cautious of major equities indices.
Nasdaq (QQQ)
To add to the looking a bit stretched narrative, QQQ has some decent looking bearish divergence.
Brent Crude Oil
Maybe the time for oil to cool off a little? Momentum is starting to fade, so we might need a fresh catalyst to keep oil pumping.
South African trade ideas
Aspen Pharmacare (APN)
APN looks rather interesting here as it looks like it is setting up for another leg higher. Decent risk-reward on offer on the long trade here.
African Rainbow Minerals (ARI)
We’re talking our book here a little, but this looks like a decent break and retest of the recent down trend. It would be nice to see R252.
Mondi (MNP)
MNP finally playing along and it looks like the time is right to enter this long.
Firstrand (FSR)
FSR is on a key level here. It would be nice to see some confirmation of a change in momentum before entering. Currently there is only 1 of 6 buy signals triggered, so that confirmation is going to be key.
Joining HCA trading
HCA trading offers a number of different trading accounts to suit different types of traders. Our offshore trading accounts allow traders to buy shares, ETFs, CFDs and even fractional shares in the United States for only $2 a trade. Locally, we offer shares, ETFs and CFDs at good rates with robust and reliable trading platforms. All our trading, including CFDs, is done on a Direct Market Access basis and thus our clients are able to interact directly with the real equity market and not have to worry about excessive counterparty or liquidity risk. Our prime broker locally is a big four bank and offshore we make use of one of the largest non-bank prime brokers in the world.
Local stockbroking rates
| Trading instrument | Brokerage rate | Margin rate | Minimum trade charge |
| JSE listed equities and ETFs | 0.30% | 100% | R150 |
| CFDs on JSE listed equities | 0.20% | 10% – 25% | R50 |
| SAFEX listed index futures (ALSI) | R20 | 6% – 8% | R20 per contract |
Offshore stockbroking rates
| Trading instrument | Brokerage rate | Margin rate | Minimum trade charge |
| U.S. listed equities and ETFs | USD 1 cents per share | 100% | USD 2 |
| Canada listed equities and ETFs | CAD 2 cents per share | 100% | CAD 2 |
| U.K. listed equities and ETFs | GBP 12 + 0.1% | 100% | GBP 12 |
| Germany listed equities and ETFs | 0.20% | 100% | EUR 8 |
| Forex | 0.40% | 100% | USD 4 |
*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.