It is a confusing time to be involved in stock markets. On one hand we have rising stock prices and breaking down trends, while on the other hand (Darren) we see continued signs of economic slowdown in the U.S. This paints a confusing picture and honestly makes it difficult being a bear. Logic dictates that the market should come down as growth is clearly slowing, but reality is doing the exact opposite. Where’s the bear? Perhaps the bear is is napping for now and will roar onto centre-stage in the coming week… or perhaps our bearish view is wrong? It is difficult to tell right at this very moment, so for now the wisest course of action is likely to just watch and wait for a clearer, more easily read market.

Offshore trade ideas

S&P 500 (SPY)

I looks like SPY finally cracked the tertiary trend line and is ready to take its next leg down. That said, we’ve been expecting the next leg down for a few weeks now and so far all our setups have failed. Is this the one? Perhaps it could be, but if you are going to short SPY, best put a stop loss just above the swing high to protect yourself in case we’ve still got it wrong.

U.S. Dollar Index (DXY)

Looking at a weekly chart of DXY here to serve as a gentle reminder that the last time DXY was trading at these levels was during the dot com crash.

Gold

Gold took a hard smack last week but is still well within its range. Unless anything significant changes in the macro picture, we’d be buyers of gold sub-$1700.

Brent Crude Oil

The primary trend line on Oil seems to be holding for now. Long trades here would have to stop out if that primary trend line (sub-$90) breaks, but until then an ATRx2 trailing stop loss would do just fine.

S&P 500 Volatility Index (VIX)

Another gentle reminder here to buy protection when you can, not when you need it.

USDZAR

So much for our R15.50 target. It seems that fear has creeped back into the ZAR and we’re headed to weaker territory. We’ve added the weekly chart for reference. If the big bad bear finally wakes up from its nap, we could potentially see a strong move in the ZAR towards the covid-crash highs.

South African trade ideas

JSE Top 40 index (ALSI)

The ALSI cracked lower rather violently on Friday. It looks to have bumped its head into resistance and might finally be starting to leg lower. Again, we could be wrong and the broken clock being right twice a day adage comes to mind… As with SPY, a short trade should have a stop loss at the swing high and an ATRx2 trailing stop should do well to capture as much of the move as possible.

ABSA Group (ABG)

There are not a huge amount of charts out there with good setups at the moment, at least not from our perspective. ABG does seem to have reached the top of its range though and looks like a fairly easy short from here. Again though, keep a stop just above the swing high and trail that stop loss.

Top Securities Broker Awards

For the first time ever Herenya Capital Advisors is competing in the Intellidex Top Securities Brokers Awards. 

Launched in 2010, the Top Securities Brokers survey (formerly Top Stockbrokers) is the Industry’s premier independent assessment of the industry. 

The survey is based on a comprehensive survey of securities brokers as well as their clients, with high emphasis placed on client rankings of their firms across an extensive list of categories. 

Last year 6,599 clients of brokers completed the online survey, with the high number of respondents enhancing the credibility of the findings. 

The online survey to find the top securities brokers in SA is now open, and we would greatly appreciate you taking the time to complete the 2022 online client survey and share your experiences. 

To rank Herenya Capital Advisors click here. 

The survey will take approximately 20 minutes to complete and the deadline is 26 August 2022.

All participants are automatically entered into a lucky draw and stand a chance to Win R10,000, offered by Intellidex. 

In the past year Herenya Capital has grown from strength to strength, not only have we been featured on some of the most revered platforms, but we have also been commended by our peers and our clients for our excellent service and tenacity to stay at the forefront of the finance industry. 

Please let us know if you have any queries or require additional information.

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

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*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.