Trading the oil price

It seems that there are a ton of people out there trading the oil price in some way or another. Most people of course have either been getting involved with Sasol or have been thinking about it. We’ve received a ton of requests from all over, from people asking about the oil price and particularly about Sasol.

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Weekly game plan 25 October 2020

Generally markets are feeling fairly good going into next week and the weekly game plan is centered around buying some pullbacks in the banks and avoiding long positions in resources and precious metals. We have been seeing good old fashioned sector rotation locally, with funds flowing into banks and retailers and seemingly local property as well. This is likely being driven by investors looking for value, of which there is much to be found among the ‘locals’.

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Weekly game plan 9 August 2020

There does not seem to be too many good setups around at this stage, and the only relatively attractive setups are slightly longer-term in nature. That is, on a swing trading basis were trades are taken for a number of weeks, rather than just a few days or hours. A catalyst might come in the form of Trump signing an executive order to provide further coronavirus relief directly to US households.

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Weekly game plan 19 July 2020

One of the things that we’ve been thinking about over the last few weeks is; the past. We find ourselves wondering how similar this current situation is to the one back in 2009/10. Could the monetary stimulus just refuel the rally and keep the market (first) and the world economy (second) pushing higher and harder? Possibly, yes.

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Weekly game plan 12 July 2020

The world is mostly mad, but luckily our views and beliefs about the world around us has little to do with what is actually happening, and the key to moving forward is to respond appropriately to the external environment, regardless of whatever it is that we might believe. Our job as traders is now and has always been to simply follow the market. Therefore we look mostly at technical analysis again this week so that we stay unbiased.

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Weekly game plan 28 June 2020

It’s no secret that this is probably one the most hated stock market rallies of all time. In fact, that is probably pretty accurate for the entire bull market since 2009, really. The question is when? Another good question is, is our idea of what fair value is anywhere near what it really is? In truth, we don’t really know how things will turn out. All we can do is trade the setups that we see and make sure that we manage risk accordingly.

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Weekly game plan 14 June 2020

If there is going to be COVID related fallout from the demonstrations, we should start seeing an uptick in COVID-19 cases around the world in the coming week or two. This will be an interesting metric to watch as it could potentially send half the world back to hard-lockdown. We’ve already seen the state of Florida (in the U.S.) record a record number of new cases last week. Should that trend continue and emerge in other states or even in other countries, we think that it could create a reasonable amount of fear in markets once more.

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Weekly game plan 17 May 2020

It is sometimes difficult to remain objective when it comes to market analysis. The more we look at charts, the more bearish we become. This might not be the right outlook as it could just be various forms of biases that we are unable to overcome. The primary objective of any investor or trader is to remain objective and see things for what they are, not as what we would like for them to be.

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