SLM

Buy the dip

The second half of last week got really wild, really fast. Given the fact that hardly anything has changed – in the sense that there are no interest rate hikes on the table for at least another year and a half, and that the FED will continue to buy $120bn worth of bonds every month – we think that the market might have had a bit of a strong ‘knee-jerk’ reaction to the FOMC minutes. Thus, we say buy the dip. As long as the free money keeps flowing, it will be difficult for the market to sustain downside.

Follow the trend

Sometimes we just need to be patient and follow the trend. We often get so caught up in the short-term news flow and happenings of the market that we lose focus of the bigger picture. Right now markets are trending higher, so our job is simply to look for opportunities to get on the bus.

Trend following for the win!

Very often we overcomplicate things for ourselves. The easy truth is that trend following it often the best way to interact with markets. Since the trend is currently very firmly up, we’re happy to toe the trend following line for as long as the trend stays in tact.

No pullbacks, only new highs please

Markets bounced hard in the second half of last week. It’s almost hard to believe how fast things are changing in the current landscape. Although there are so very many reasons to be cautious, if not flat out bearish, the market is just pulling its ears back and making its way higher despite the conditions of the world around it. Thus, given the strong footing the market ended on last week, and of course the charts, we think that we’ll likely see new highs in the week ahead.

Hurricane trade ideas

The weather in the northern parts of South Africa is likely to be a little wild in the week ahead. We just hope that the hurricane that has made landfall in Mozambique does not cause large scale damage. Spending the week indoors, sadly, is nothing new thanks to lockdown. Now we just have to hope that the coal stays dry so that we don’t have electricity disruptions. These are strange times to be living in to be sure. At least we have markets to look at and keep us busy while a hurricane and a virus rage outside.

The blue wave lifts all ships

Very often it’s better to not listen to the news, or the hype of all the mad things happening in the world around us. Most of the time, it’s better to just sit down and focus on the things that we can measure. So to a large extend we try to do that this week, although we must admit the the blue wave in the U.S. is probably the primary driver behind the strength we saw last week. It’s very likely going to be the source of a whole lot more strength in the week ahead.

2021 roadmap for Bitcoin

The week that lies ahead though is usually the ‘Santa rally’ week, so perhaps our caution and maybe even slight bearishness might again be off the mark. Nonetheless there are some good trading setups out there. Furthermore, we thought that this week we would share our 2021 roadmap for Bitcoin. Next year, we think, is going to be wild!

Santa loves US Fed stimulus

Well, technically the Santa rally is only really the period between Christmas and New Years, although traders have been ‘front running’ this seasonality a little over the last few years. Furthermore, from what we’ve seen on the newswires over the weekend, it seems that another round US Fed stimulus is almost certainly going to be finalised before US markets open on Monday. Nothing like a freshly minted $900 billion to get markets into the festive mood.

Hopes of a Santa Rally

There are still a few weeks to go before Christmas, but hopes of a Santa Rally are starting to take root. For now, most of our watch-list still appears bullish, although there are some warning signs. We could be seeing some early signs of fading momentum on the major indices, although it might still be too soon to tell.

Scroll to Top

Need some help?

Please provide your contact details so that we can be in touch.

Your message is on its way to us!

We will be in touch with you shortly.

In the meantime, check out our other pages with the drop down below:

We really appreciate you reaching out. We will be in touch with you within two business days.