You can almost taste the fear and confusion on twitter this evening. Rumours abound that Credit Suisse is on the verge of going bust thanks to some pension fund liabilities. It’s a lot to explain, so to make it easier for both us and you, here is a tweet from Johann Biermann that does a great job of explaining what is happening (read all the things and you will understand). So… Credit Suisse = Black Monday? We’ll see. It’ll be wild, that’s for sure.
Offshore trade ideas
S&P 500 (SPY)
Well, we’ve not made too many changes to this chart for the better part of this year and we’re not about to make any now. Our target $337.70 remains, and is now firmly in play. The real question is: where to from there?
Nasdaq (QQQ)
As is the case with SPY above, we’ve not moved our QQQ target for a mighty long time either. Just for reference, the support (and target) here is the pre-covid high (as is the case with SPY).
All Country World Index (ACWI)
Another one of the older and unmodified charts from earlier this year. ACWI target zone still in play.
Brent Crude Oil
From a purely technical perspective, the trend is now down. New longs can be initiated if we see a bullish break of the pink downtrend line. Until then, hold onto your butts!
USDZAR
Ladies and gentlemen, we have an upward sloping channel… This might be alarming for some, it might be unbelievable to others, but the market tends to go to where it causes maximum pain before it turns. Honestly, we hope it doesn’t get that bad, but the charts point to where the charts point. What did we say about oil..? Hold onto your butts!
South African trade ideas
JSE Top 40 Index (ALSI)
Again the pre-covid highs are the target / support area (as it has been for some time now).
ABSA Group (ABG)
A little under halfway down from the range top. Let’s see if it can make it all the way to the bottom.
Aspen Pharmacare (APN)
We’d pointed out APN as a long a few weeks ago. The range we were eyeing has broken to the downside. While we are still bullish this stock with a long-term outlook (investment perspective), in the short-term (trading perspective) if the R130 support goes it could get really messy. The macro environment is filled with fear, and heaps of it was piled on this weekend. If we see proper panic, nothing will be spared in the short-term. Thus, we have a general short bias in the short-term, but look forward to buying good stocks at lower prices if the pawpaw hits the fan.
British American Tobacco (BTI)
Flat top triangle broken to the downside. We’re thinking it can get as low as R580 before finding any real kind of support.
Compagnie Financiere Richmont (CFR)
Don’t forget about this one. Still some time to go before the Head and Shoulders of Doom over here give a trading signal, but keep it on the radar folks.
Capitec (CPI)
The break of that support was nothing short of spectacular! Probably wise to close the shorts here, or at least take 80% off. It can go further still, but take some of your risk off the table and bank some profits baby!
Investec (INL)
Clean break! Now we sit and trail our stops and the market fear and panic around us. The target is a long way down, so we’ll have to be patient. Remember, volatility based stop loss. Don’t let winners turn to losers. That said, enjoy the ride.
Naspers (NPN)
Friday saw a massive bounce in NPN, but it’s still in the green (short trade). It’ll be a wild ride, but that is why we have risk rules.
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.