Market Overview

The following is a partial recap of the market analysis shared during today’s morning Discord call.

Today’s market is a greener place, as we see the repeat of the old reliable in the Middle East: a day or two of escalatory rhetoric, followed by talks of a new deal to send the market flying. We also see a lower oil price, coinciding with significant growth in much of the metals space, which should benefit gold, PMGs (Platinum Group Metals), and diversified miners, further aided by the Rand’s stronger opening today.

Gold

Gold had a very significant reversal yesterday, regaining much of Wednesday’s losses. While it managed to touch the $4200 range, we believe it would need to breach $4250 to see further continuation. This, however, is easier said than done, as it wouldn’t be surprising to see investors sell gold to attain liquidity for the SpaceX IPO, which is scheduled for today. We recommend keeping an eye on $4160 and $4130, as they were yesterday’s bouncing floors.

Softwares

Software stocks took a hit on Wednesday and again yesterday, following Adobe’s (ADBE) performance in the market and earnings. This could likely result in a rotation out of software and into broader U.S. tech today.

SpaceX (SPCX)

Space Exploration Technologies Corporation, colloquially known as SpaceX, is going public today with the highest recorded IPO (Initial Public Offering), which has, and is likely to continue, affecting the market in the immediate future. It’s worth noting that new listings in the U.S. can open at any time, and it’s likely that shorting SpaceX will not be an available option in the first few days.

Local Stocks

Gold Miners

Dual-listed gold miners had a boom yesterday after we closed, jumping up by 2-7% in the U.S. market, even before the news came out. We’ve been seeing a rotation of gold and PGMs into banks and retailers as of late, and it could be worthwhile to keep an eye out to see if the rotation continues or reverses.

From left to right: AngloGold Ashanti (ANG), Harmony Gold Mining (HAR), DRDGOLD (DRD)

Bid Corp (BID)

Bid Corp was upgraded by Standard Bank to R465 yesterday, which could be the factor that helps Bid Corp break out of its consolidated range between R400 and R420. If so, we believe that Bid Corp could easily reach the R445-450 range, and the R460-480 if the first range is broken, giving the stock good long-term potential.

Economic Data

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