It feels as if we are on the edge of battle. The air is still and so thick with tension that it is hard to breathe in. Nonetheless, the market goes on. In fact, it is starting to offer some interesting opportunities to those who are patient. We look at the S&P500, USDZAR, Clicks, Shoprite, Sibanye and Anglo American.
We’re not sure where to start. We have ever seen anything like what has been happening over the last three weeks before. These truly are extraordinary times.The Fear & Greed Index hit 1 last week, the CBOE Volatility Index hit highs last seen in 1987 and 2008 with the highest print at 77.6. This was real, unfiltered panic. The question now is; is it over?
So the trade deal is all but done. Overall, should bullish sentiment remain the theme for the week, it very likely that the Rand strengthens and even that emerging markets outperform developed markets for some time to come.
Over the weekend we saw some positive news flow around the trade war between the U.S. and China. We saw some positive comments on Thursday and Friday last week as well, which led to a rather strong recovery in global equity markets.
So this week is a little weird. There are some bullish looking setups emerging on some of the banks, although they are in the middle of nowhere in terms of large trading ranges.
The trade war cycle turned negatively once more last week and with US GDP data due out on Wednesday this week, it may just become apparent how hard this trade war is biting. We cannot predict what the data is going to be like, although we think it is safe to assume that things are …
Now that the Moody’s news is out of the system and we can once again place our trust in the charts, there are some interesting opportunities brewing for the week ahead.