Today, we looked at 13 charts; below are only a few. Join us in the morning call on Discord to see it all. Let’s have a look at the overnight moves. The market continues to decline as uncertainty continues. Precious metals and in particular the PGMs (like Platinum and Palladium) took a hit, while oil is up by 2.6%. This has manifested as a 1.8% increase in Sasol (SOL), making it a prime target for profit-taking. However, the rest of the market is relatively subdued, with this week seeing one of the lowest weekly trading volumes in recent history. As a result, we predict a very quiet session today, as there aren’t any noteworthy earnings or economic data scheduled for release to play off of, and next Monday (April 27th) is a public holiday.

S&P 500 Index

The U.S. market continues to trade at swing-time-highs. Yesterday it saw a massive drop, prompted by news of Israeli airstrikes against Iran, which quickly turned out to be false. Subsequently, the market returned more or less to the same spot. This goes to show how sensitive the market currently is, despite ongoing negotiations, and negative news are likely to result in quick reactions from the market.

Software

The software sector has been trading poorly since yesterday, when ServiceNow (NOW) took a hit following its earnings. We intend to closely monitor the sector going into summer. But in the short term, all eyes remain on Microsoft (MSFT), which has notably suffered less than the rest of the sector, and has earnings scheduled on the 29th of April (Wednesday next week).

Intel (INTC)

Intel surprised the market with its earnings yesterday, beating the estimates by over 14 times. The company has been on the rise since August of last year, when it received an $8.9 USD investment from the U.S. government. It’s currently trading close to all-time highs, making it a somewhat difficult share to play with. But it’s worth keeping an eye on regardless, as Intel is a major micro-chip manufacturer, and it will have a ripple effect on the Semiconductor market, as well as the tech sector at large.

PHLX Semiconductor Sector (SOX)

Semiconductors have been on one of the longest streaks of up days, and we speculate that Intel’s (INTC) gains could lead to further growth in the Semiconductor market. We recommend keeping an eye on the PHLX Semiconductor Sector (SOX) index going into the day.

Start your trading journey with us today!

We’re posting on TradingView, we’re posting on our blog… but the real magic happens in our client community where you can get access to our ideas as they develop. So, open your account and join us and start taking advantage of South Africa’s Top Broker for both Active Traders and Traditional Investors. We have a Discord server, with a Daily Morning Call at 08:30 (Monday – Friday), where our Trading Strategist shares market updates and posts information with the Community. If you are not trading with us yet, what’s stopping you?

*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.

The post The Daily Trades 24/04/2026 appeared first on Herenya Capital Advisors.

Bigger picture (offshore trade ideas)

S&P 500 (SPY)

This rally feels a little long in the tooth, but it’s not for us to decide when it ends. A trailing stop loss is advised for those with long positions. For those looking to short, perhaps around $461 could offer a decent risk-reward, although for now we don’t think standing in front of the bus is a good idea. You could put up a tertiary trendline on the move from around June and use that as a potential short entry (or stop loss if you are long). Either way, dance close to the door.

Philidelphia Semiconductor Index (SOX)

SOX is still spending time hugging the upper end of the channel. We’d like to see it test the lower band, but it seems that we will need to be patient. You could probably put a mid-channel line in and use that as a trigger for any new trades here (aka. the short trade to the lower end of the channel). Just note that trading against the trend could be bad for your health.

Nasdaq (QQQ)

See our comments on SPY. ‘Don’t fight the trend’ is probably the only thing we can say here. Well, we will say that we think this has gone too far, but we’ve tried that a few times and have not been right yet (at least not recently). So, we will be patient and wait for the market to lead the way.

Brent Crude Oil

Oil is looking good to hold the $78.85 level and make a push for $87.35.

Gold

Gold pulled back a little in the second half of the week, but overall the move toward the recent highs still seems to be in play. We would be buyers on weakness here, at least for the next few weeks.

U.S. Dollar Index (DXY)

DXY bounced off $99.50 and smacked right into $101. It’s too early to really be able to tell, but we think that we might see the Dollar get really strong again in the near future (aka. get and hold above $101 and head for $103). Will it test the highs around $114 again..? Maybe. It won’t happen fast if it does, but it is possible in a scenario where global economic conditions continue to deteriorate and investors are looking for safety. We also have to be mindful that we could see the U.S. stop with the hikes, which will attract capital into longer-term U.S. Government Bonds, which not only could be a good trade in itself, but also drive much strength for the Dollar.

EURUSD

Forex traders… are we seeing a good short here? Let us know what you think by tweeting us.

USDZAR

The USDZAR is forming a bit of a base here by the looks of it. We think we see some Rand weakness in the week to come.

Top Securities Broker Awards

Once again Herenya Capital Advisors is competing in the Intellidex Top Securities Brokers Awards. 

Launched in 2010, the Top Securities Brokers survey (formerly Top Stockbrokers) is the Industry’s premier independent assessment of the industry. 

The survey is based on a comprehensive survey of securities brokers as well as their clients, with high emphasis placed on client rankings of their firms across an extensive list of categories. 

The online survey to find the top securities brokers in SA is now open, and we would greatly appreciate you taking the time to complete the 2023 online client survey and share your experiences. 

To rank Herenya Capital Advisors click here. 

The survey will take approximately 20 minutes to complete.

All participants are automatically entered into a lucky draw and stand a chance to Win R10,000, offered by Intellidex. 

In the past year Herenya Capital has grown from strength to strength, not only have we been featured on some of the most revered platforms, but we have also been commended by our peers and our clients for our excellent service and tenacity to stay at the forefront of the finance industry. We also won the title of Best Stockbroker for Traditional Investors in South Africa. We would greatly your appreciate your support to help us take another title of two this year.

Please let us know if you have any queries or require additional information.

South African trade ideas

JSE Top 40 Index (ALSI)

You can see what our thinking is by looking at the chart. The last two weeks have been, well, not in line with our thinking. So, we stay open to the idea that is might just keep pushing higher, but we really still don’t have any reason to believe that the market is bound to go higher. In other words, we remain bearish.

Sasol (SOL)

Oil price looking bullish, Rand looking weaker… spells good times for SOL if you ask us. As long as this base holds (green line), then we should be good to stay long.

Tiger Brands (TBS)

This little bear flag setup on TBS looking like it is starting to get going now. R135 calling?

Anglo American (AGL)

It’s beginning to work! There is a lot of upside in this trade in our view, so be patient and give it the space and time it needs.

Aspen Pharmacare (APN)

APN closed at the highs on Friday, breaking the overhead resistance (not drawn, but visible in the form of that thin dotted blue line) and opening for the next leg higher. R200 then R210 as short-term upside targets. R230 and R240 as medium-term upside targets.

City Lodge Hotels (CLH)

The CLH trade is working very well. We do think that there is more upside to be had here over the coming months, but perhaps taking some (a third, or even half) of the money off the table is not entirely a bad idea.

Join a winning team

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

Offshore stockbroking rates

Subscribe for post updates

If you enjoy reading our blog and would like to get email updates each time we post, please subscribe below.

*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.

The post Staying flexible appeared first on Herenya Capital Advisors.

Bigger picture (offshore trade ideas)

S&P 500 (SPY)

The double top we looked at last week has failed and the market went on to push higher. It seems now that SPY wants to trade to that $461 level. We are going to be patient in the sense that we are not going to chace the long trades here, nor are we going to continuously attempt to short. We will wait for another clear setup before we trade again.

Nasdaq (QQQ)

The QQQ chart looked a little better to us last week than the SPY chart did. As mentioned last week, it made a double top right on the resistance level. Well, thank goodness for stop losses because on Wednesday the resistance was blasted through and QQQ kept printing highs. We can debate the candle that formed on Friday (shooting star?), but as is the case above, we’re going to sit back and wait for a new setup before making any moves.

Philadelphia Semiconductor Index (SOX)

SOX still bumbling along the top end of the channel. We’re still of the view that we will see SOX test the lower end of the range, and with bearish engulfing candle printing on Friday, the short trade is looking mighty tempting here. This might be one that we actually take the short on when U.S. markets open on Monday.

U.S. Dollar Index (DXY)

DXY tagged the $99.50 level. Where to from here? We think we see the bounce to $101.30 before eventually breaking below $99.50 (and trending lower).

Brent Crude Oil

Oil finally made it above the midpoint of the range it has been trading in for some time. Let’s see what it does from here. We would like to see it trade all the way to $87.35, but we’re not sure that it will be able to do that immediately. It does look a little overbought here. Patience is needed here. Technically this is now in the middle of the range, so there is really no setup to be traded here.

Gold

Alrighty, gold broke the short-term downtrend and so far seems to be going for a move back to the highs. On the back of this chart (and move in gold price), we like gold stocks for longs in general here.

Platinum

Platinum has also put in the bounce we were looking for. Let’s see if it has enough legs to get back to the highs.

USDZAR

Ok, so maybe some bears get honey. The bear flag on the USDZAR has worked beautifully. We looked at this chart two weeks ago, then thought we were wrong and last week expressed our confusion. Seems all we needed was some patience as the ZAR went on a rampage last week. From here…? We wait for a new setup. We’ll likely see R17.60 soon, but let’s wait for it to consolidate there and give us some idea of what it wants to do next before we take any new trades.

Top Securities Broker Awards

Once again Herenya Capital Advisors is competing in the Intellidex Top Securities Brokers Awards. 

Launched in 2010, the Top Securities Brokers survey (formerly Top Stockbrokers) is the Industry’s premier independent assessment of the industry. 

The survey is based on a comprehensive survey of securities brokers as well as their clients, with high emphasis placed on client rankings of their firms across an extensive list of categories. 

The online survey to find the top securities brokers in SA is now open, and we would greatly appreciate you taking the time to complete the 2023 online client survey and share your experiences. 

To rank Herenya Capital Advisors click here. 

The survey will take approximately 20 minutes to complete.

All participants are automatically entered into a lucky draw and stand a chance to Win R10,000, offered by Intellidex. 

In the past year Herenya Capital has grown from strength to strength, not only have we been featured on some of the most revered platforms, but we have also been commended by our peers and our clients for our excellent service and tenacity to stay at the forefront of the finance industry. We also won the title of Best Stockbroker for Traditional Investors in South Africa. We would greatly your appreciate your support to help us take another title of two this year.

Please let us know if you have any queries or require additional information.

South African trade ideas

JSE Top 40 index (ALSI)

Oh how wrong we were last week on the ALSI. The super strong Rand lifted most of the market (although in very thin volume), while the pumping gold price pushed the gold stocks. This was the perfect storm for the ALSI longs. Well done to the bulls. We concede and we wait for another setup.

AngloGold Ashanti (ANG)

ANG bouncing off the trendline like a champion! We hope you got a decent long entry here. Keep a trailing stop loss and have some patience. We think we might have a proper winner here.

Capitec (CPI)

Banks have been strong and if the Rand keeps it up, banks will likely stay strong. CPI is headed for some resistance though in the form of a medium-term downtrend line. This makes us go “mmmmmm”…. Let’s see though, if it can break that downtrend it might put in a strong move higher.

FirstRand (FSR)

Sticking to the theme of strong banks for a little bit, we see a bull flag (flat) that has broken on FSR. This triggers a long trade with a good risk-reward.

Naspers (NPN)

Again we’re adding NPN because we think it is an important chart to keep aware of. We’ve spoken about the range for many weeks now. When this eventually breaks, there will be fireworks. Keep watching it and stay patient.

Netcare (NTC)

Maybe a cheeky little long here from the bottom of the range on NTC?

Reinet Investments (RNI)

RNI once again breaking a consolidation to the upside. Decent trend following long trade here we think.

Join a winning team

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

Offshore stockbroking rates

Subscribe for post updates

If you enjoy reading our blog and would like to get email updates each time we post, please subscribe below.

*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.

The post Up she goes! appeared first on Herenya Capital Advisors.

Now, yes, we did say this a few weeks ago and the market has remained persistently strong. Relatively at least… U.S. markets are slightly higher, but locally markets are slightly lower. So, no real fireworks just yet. Perhaps the momentum finally shifts down, and we see the market come off a little? Particularly in the over-hyped tech sector. Let’s look at some charts and get a better idea of why we’re thinking what we’re thinking.

*Also, please just note that as usual, the offshore indices we chart are in fact ETFs of those indices as those are tradeable. If you are not trading offshore for only $2 a trade, click on that open account button. Top right. You got it. Ok, time for charts.

Bigger picture (Offshore trade ideas)

S&P 500 (SPY)

This is ironically one of the charts that is not so clear to us right now. The levels marked in yellow are our up and downside targets. We think down before up and it should be noted that if $418.31 doesn’t hold, we could see this push to $400. Also, that does look like a double top, does it not?

Nasdaq (QQQ)

QQQ is a lot more clear to us than SPY. Once again we see the double top, but this time it is in fact directly below the resistance level we pointed out a few months ago. It feels like this bullish move has now run its course and it’s time to wobble a little. Our thinking is that we will likely see QQQ come off to test the previous significant horizontal level (also marked in yellow) at $333.57.

Philadelphia Semiconductor Index (SOX)

SOX found some resistance at the top of the channel. Momentum is shifting toward the downside, and if you squint just right you might see a little head and shoulders pattern. Look out below! Time to wobble.

U.S. Dollar Index (DXY)

Friday came along and said woah! It looks like that support at $101.30 is going to be tested once more. The question we are asking ourselves is ‘are we forming a base here or are we forming a flat?’. In other words, does $101.30 hold and this is the long-drawn-out starting phase of another bullish move over the next few months/years? Or, does the support break on the third attempt and we see the Dollar weaken substantially going forward? Time will tell. Time to wobble.

Brent Crude Oil

We could probably pose the question as above (with DXY) here on Brent. The way we see it is that Brent has been bouncing between the bottom and the mid-point of the range for a few months now. We’d like to see it break above $79 and head for $87. The start look aligned here. We’ll look at a Sasol long as well.

USDZAR

Time to wobble? But its so wobbly already! That’s a volatility joke by the way. This chart is, well, maybe we need new ideas and perspectives here. To us, this looks like a monster bear flag… but it could also go to R19.50. Let us know what you think on Twitter.

Platinum

Platinum might have gone a little far on the downside here and from our perspective it looks like it is going to try put in a little bounce here.

Gold

Gold is looking fairly bullish right now as well. At least, it looks like a decent bullish setup complete with a bearish equity market view to back the risk-off idea. Let’s see if it can get going.

Apple (AAPL)

This trend looks a little long in the tooth. We’ve marked out our trailing stop for AAPL longs. A daily close below $188.92 will stop us out of a position that has done really well. It is worth noting that when it is time to wobble for these giant tech stocks, the rest of the market will surely follow. The majority of the Nasdaq Index and a big chunk of the S&P 500 Index are in just a handful of stocks that are all highly correlated. Once the tech giants begin to wobble a little, the straw house that is the U.S. stock market at the moment is likely to be blow over.

Applied Materials (AMAT)

As a way of example, looking at AMAT, we see that our trailing stop has already been triggered. Now, AMAT is not as exciting as AAPL or TSLA or NVDIA or (insert any A.I. stock in here), but AMAT is a large supplier to many of these companies. Semiconductors have to be made somehow, right? AMAT might be the canary in the coal mine here.

Microsoft (MSFT)

MSFT is also teetering on the edge here. A daily close below $332.81 will trigger the trailing stop loss. As is the case with the illustrated trailing stop losses above, these could act as short entries for the more active traders. Just be warned, you’re betting against the trend, so keep tight stops.

South African trade ideas

JSE Top 40 Index (ALSI)

Well, well, well, if it isn’t the good old ALSI heading for the longer-term trendline? At least that’s our view. Buckle up, it’s time to wobble.

Compagnie Financiere Richemont (CFR)

It’s not often that you see such a beautiful break and retest of an established trendline. Textbook short setup here.

Naspers (NPN)

Going nowhere slowly… but, keep it on the watchlist as you can trade it between the levels, and when eventually this range breaks, it will do so in glorious fashion!

Shoprite (SHP)

Retailers have done alright recently. SHP underperformed a little over the last few days of last week though. It also looks to us like it wants to go test R192. It’s time to wobble, hold onto your stops!

Sasol (SOL)

SOL has bounced off this level once before… and then came back and slammed right back into it. With the Brent Crude Oil context above, and with this level actually holding fairly resiliently, we think that it makes a great long trade from here. Easy tight stop and a potentially a huge amount of upside.

Thungela Resources (TGA)

If you have been keeping an eye on energy demand forecasts, weather and other going-ns in the energy space in Europe, you will note that there is a slight shortage of the burny black stuff (coal) brewing. This once again plays into TGA hands. Combine that with a falling wedge, very recent higher lows, and you get what looks like a really good long setup for a medium to longer-term trade.

Anglo American (AGL)

Bullish divergence off a significant horizontal support level. Bodes bullish to us.

AngloGold Ashanti (ANG)

So the trendline broke and the head and shoulders worked out perfectly and the trendline is now being tested. Ok then. Given our thoughts on Gold (and Platinum) above, ANG might be presenting a nice long trade opportunity for those who are willing to take a little risk.

Subscribe for post updates

If you enjoy reading our blog and would like to get email updates each time we post, please subscribe below.

*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.

The post Time to wobble appeared first on Herenya Capital Advisors.

Bigger picture (Offshore trade ideas)

S&P 500 (SPY)

The S&P 500 (SPY) is the first of the mixed signals for us. We see the makings of a longer-term trend change here. A break of the downtrend, higher highs, higher lows… it all checks out. That said, what we do not see is a third higher high. The market has been somewhat lacklustre over the last week and momentum toward the upside has faded. Currently our view is that unless SPY can clear $420 (or 4200 on the S&P 500 Index), it’s not going to get much higher. Read into those puns what you will, but know that they are based on age old Dow Theory. We think that if the SPY stays below $420, the odds of a short to medium-term pullback is rather high.

Philidelphia Semiconductor Index (SOX)

SOX has acted as a leader of QQQ for some time. Over the last week or so it has been under a little more pressure than QQQ and has made its way down to the bottom of a rising channel. Now, there are two ways to play this. First, you can buy the bottom of the channel with a target at the top and clear stop if the channel breaks. Second, you could wait for the channel to break to the downside and trade the short trade with the stop set at a break back into the channel. Either one should offer a decent risk-reward, although the payoff on a short trade with a trailing stop will likely be higher. Further, the rising channel setup does bode bearish. So, our bias is to the downside here.

Nasdaq (QQQ)

QQQ is a little different to SPY above, in the sense that it has managed to get up above the recent swing high and print a new one. Keeping in mind that it is only the second higher high and not a failure of the third. So, there is a small but not insignificant difference. Longs could stay long here as long as that lateral support holds. If, or when, that support breaks, it will likely make for a good short entry. We think that SOX will lead QQQ and act as early warning for trapped QQQ bulls.

S&P 500 Volatility Index (VIX)

Here is some of the meat and bones of the mixed signals serving. The VIX has been very low for some time now and in fact has pushed a new 52 week low. Each time the VIX has gotten into this region over the last year or so, we’ve called a long. Now, it’s not the world’s most complicated trade to be honest, so it’s not been hard to be right here. Once again, we have a fresh low and a somewhat bearish looking mix of headline equities indices, and thus once again we are calling a long on the VIX. A two-month call with a strike at 24 would pay off really well if things get a little bumpy here. Remember, buy protection when you can, not when you need it.

Gold

Gold has been on tear of late, but has managed to run head first into significant horizontal resistance. $2035 is a strong level that has proven to be a reversal area for Gold over the last two years. Probabilities dictate that Gold remains in the large channel and makes a move toward the bottom end of the range over the next few months. In our last blog post a few weeks ago we’d said that it might be a good time to get out of those gold longs, and we want to reiterate that view. If we see Gold break higher from this channel, then, well, scramble to get those gold stocks back on the book, but until then, maybe it’s a good time stand back and bank some gains.

Brent Crude Oil

Oil is one the reasons we have some worries about equities. Recent softness is, at least in our view, based on the broader expectation of a global, mild recession in the second half of the year. The reasoning here is that if there is less economic activity higher unemployment, there will be less demand for energy in general. Add to that the fact that $87.35 is a line in the sand that Oil just can’t seem to cross… it doesn’t make for a very rosy picture for the energy bulls. We think it is most likely that we see Oil bounce between $80 and $87 for the next few weeks. For now, we don’t think it wise to try glean what might happen further out than that.

USDZAR

We still stand by our call that over the short-term the ZAR should move toward R17.58, and possibly R16.88 to the USD. DXY weakness is likely to be the biggest driver here. Yes, in the long-term the ZAR looks toast. We have to admit though, through all the millions of levels of loadshedding and other issues, it has been rather robust. This leads us to believe that the strength here has less to do with ‘us’ and more to do with ‘global macro conditions’ looking rather weak.

South African trade ideas

JSE Top 40 Index (ALSI)

ALSI giving a very simple trent break short setup here. Easy high risk-reward short trade in our view. We can also see the bulls start to unravel as the stochastic slowly rolls over and momentum shifts down.

Anglo American (AGL)

Welp! Proper bear flag breakout on AGL. R500 as a first target seems about right.

Coronation Fund Managers (CML)

Looking at a longer-term chart on CML does not give a comforting feeling. Many a moon ago we’d pointed out a small inverse head and shoulders pattern, which failed in a blaze of glory! Now CML is riding a support level that was last truly significant all the way back in 2012. A failure here could lead to some panic selling and a push to R20. Honestly, it would probably be a good buy down there, but some patience is likely needed.

Growthpoint Properties (GRT)

The horse has bolted out the stable already here, but the downside target here is around R11.60.

Investec (INL)

INL is still trading in its range. Our bias is still toward the downside, but we reiterate that patience is needed for this pattern to break and provide a confirmed entry.

City Lodge Hotels (CLH)

CLH is actually looking a little more bullish to us, but we have to be open to the idea that things could potentially get worse. Especially with loadshedding getting worse and the prospect of a global recession in the second half. Thus, we wait patiently for the indicated range to break before taking a decision on which direction to trade this stock in. This one is worth keeping on the watch list.

Subscribe for post updates

If you enjoy reading our blog and would like to get email updates each time we post, please subscribe below.

*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.

The post Bulls start to unravel appeared first on Herenya Capital Advisors.

First – it is an enormous opportunity to get into the stock market, especially if you are a passive saver making monthly contributions to an index ETF or fund of sorts. If you can, double your monthly contributions to equity investments. It may be difficult to work this into already pressured budgets, but over time you will thank yourself for tightening your belt now and buying more and more as the market dives deeper and deeper.

Second – there is no reward without a little pain. The reality here is that if you increase your investment now, you will feel some pain in the short-term as you watch new contributions shrink each month just for you to add more into a shrinking pot. It is not going to feel good. The truth is that you will not be able to perfectly time the bottom, so cutting monthly contributions until you are convinced that things are better will very likely mean you miss the bottom and miss the chance to get great overall market (index based) exposure at a decent average price. Doing the right thing is never easy, and even more so when you are acting in your own best interest. Bite the bullet, act in your own best interest and take the short-term pain. The reward is years away, but it will be worth it.

If you would like for us to help you with a solid investment plan for the next five to ten years, contact us and we’ll gladly help.

An on that note, let’s move onto some shorter-term trade ideas. As mentioned above, it’s not looking good out there are we are seeing nothing but shorts.

Offshore markets

S&P 500 (SPY)

As usual we start with SPY. We’ve been aiming lower for long while now and nothing has changed. Our target remains indicated on the chart as it has been for many months. The question we are asking ourselves now is whether or not the 3370 index level is going to be the bottom, or just a brief support level?

Nasdaq (QQQ)

Looking at QQQ shows a similarly dire picture (as is the theme of this post in truth). We’ve marked out the previous (pre-covid) high, which as is the case above, should serve as both a target and support level for the current equities rout.

Philadelphia Semiconductor Index (SOX)

More of the same for the semiconductors. We guess we’ll see how this, and the indices above, behave when they get to their respective pre-covid highs.

U.S. Dollar Index (DXY)

We’ve pointed out before that the Dollar was last this strong during the dotcom crash, so we thought we would show it again for context. It won’t happen in a straight line, but we think that the 120 level on DXY is rather realistic given the circumstances. Make no mistake, this is putting severe pressure on U.S. corporate earnings as well as commodities, and the real damage will become apparent in the next earnings season.

Gold

Talking about commodities coming under pressure, gold seems to have broken its support level. Although we hold some gold exposure in our long-term portfolios, the short-term picture looks pretty bleak. Our initial thought after this break is that we might see $1480..? The thing is, if we see proper panic in markets in the next week or two, people will sell everything. This means that even the ‘safe haven’ assets will be sold off in the panic and mad rush for liquidity. Perhaps we see a similar washout to $1480(ish) as we saw during the onset of the covid panic days, before gold catches a bid and starts behaving like the ‘safety’ it is supposed to be?

Brent Crude Oil

Is this it? Has oil cracked support and is finally going to give in to the negative pressure of contracting global GDP? Or will OPEC+ cut more production and defend $90 with everything they have? Stay tuned for this week’s instalment of Energy Markets Gone Mad! Jest aside, that is actually a serious set of questions.

USDZAR

Weekly chart here just looking at the trend on USDZAR. It’s not looking good folks. Unless you have Dollars, then it’s looking awesome. Are we going to see R20 to the USD within the next six months? Probably.

Bitcoin (BTC)

Over the longer-term we are still bullish on BTC, but we want to reiterate that we would only be buyers closer to the support level, which is currently around $16.5k. The chart looks fairly bearish, so there might even be a chance to get some BTC below the support level. If the world is going to panic, let it panic. Just keep your own head cool and try not get trampled as the masses rush for the lifeboats. As mentioned earlier, this is a massive opportunity to make some very good long-term returns. Be patient and be decisive. But mostly, be patient.

Ethereum (ETH)

Great insights on ETH merge from Geo here (Geo interview podcast). Do we get a chance to load up around $750?

South African trade ideas

JSE Top 40 Index (ALSI)

It takes a little time, but charts often work out. Our target remains set at 53k. For those that are short this index, an ATRx2 trailing stop loss would be appropriate from here. You need to give it some room to breathe, but also need to make sure that it doesn’t rip against you and take back all the gains. Let’s see how long it takes to get to 53k and how it behaves once there. For now, enjoy the ride.

Investec (INL)

Well, nothing but shorts were promised, so nothing but shorts we’ll show. Nice rounding top here on INL with a scary low target at R41.20. This will be a slow grinder of a trade if it reaches target, so a volatility based tailing stop (like ATRx2) should too well to manage risk here.

Compagnie Financiere Richmont (CFR)

We’re pre-empting a massive head and shoulders formation here, but we’re pretty sure that we’re not the only ones seeing this… right? Would love to hear your comments, let us know what you think on twitter.

British American Tobacco (BTI)

Well ok then. We looked at BTI some time ago and pointed out this flat top triangle. Our thinking was that in a much weaker ZAR environment BTI could break out nicely toward the upside here. But now the market theme is nothing but shorts and BTI had a proper daily close below the trend line. We are tempted to hit the short here, but think we might have to do this trade in half-size.

MTN (MTN)

R91.42 is a long way down, but we can’t see anything holding the stock up to prevent it from testing those levels. At least not right now.

Naspers (NPN)

The support level shown two weeks ago has broken and it looks like the gap-close trade is on. Stop to entry and let it ride for now.

Remgro (REM)

R125 is a key level to watch on REM. A daily close below R125 will trigger a short trade. Some might see a head and shoulders top here… some might see a rounding top (depends just how much you squint your eyes to make sense of it). Either way, we think that a break of the key support will offer a great opportunity to get into a short trade around a level that confirms a medium-term trend change.

Shoprite (SHP)

Not the greatest of clearest setup here, but SHP could come off and test the R192 level again in what looks like it could be a rather large range. If R192 fails to hold as support, we are looking at a massive double top which would target around R130 if it plays out. Patience here. but keep it on the radar.

Sasol (SOL)

Perhaps a bit late to catch the short now so we will not chase. This chart just serves as a case study to show how effective simple trend line and range breaks can be to identify a changing trend (and trades of course).

Sibanye-Stillwater (SSW)

R31.79 coming up by the looks of it. That would probably be a good level to buy at to be honest, but until them we suppose we wait.

Transaction Capital (TCP)

TCP is another great example of a simple trend line being extremely useful. Now though, we see support around R35. Keep a close eye on that support because a break below that would likely target R26.80 and would make for a great short trade.

The Foschini Group (TFG)

Another stock, another key support level coming up. If TFG breaks below R118 on a daily close basis, odds are very good we’ll see R90.

*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 resource

The post Nothing but shorts appeared first on Herenya Capital Advisors.

Offshore trade ideas

S&P 500 (SPY)

Well then… it looked for a short while that the week would end on a high note, but alas, for the Russians came to spoil the party and close markets on the lows. I’m not going to lie, this market looks toast! I’ve been saying this for some time now to be honest, so this is not new messaging from me. Sure, the market does not move in straight lines and sometimes you get caught on the wrong side of a move because you were either early or just plain wrong, but from where I sit, I think this market is going to head a lot lower. Remember that 3380-ish on the S&P 500 Index is the pre-covid high, so going back to test that is rather probable in my view. The real question is: does the pull-back stop at 3380, or are we in for a proper recession here?

Nasdaq (QQQ)

I guess this reads the same as above… pre-covid highs is now support and acting like a magnet for QQQ.

Philadelphia Semiconductor Index (SOX)

SOX also looking pretty smoked to be honest. I’ve highlighted the pre-covid highs here too.

Deutsche Boerse DAX Index (DAX)

DAX is on a very important level here. If it fails here, we could see it trade all the way down to the covid-lows. Honestly, given the energy situation in Europe (Russia turning off the gas again) and how dependant German manufacturing is on, now inaccessible, energy from Russia… it is hard to imagine a scenario where Germany escapes a bad recession. Make no mistake, this is an energy crisis and the impact on the German, European and Global economies should not be underestimated. Also, this chart offers a decent risk-reward on the short here. It’s going to be a cold winter in Europe.

U.S. Dollar Index (DXY)

No real new comments on DXY, other than a general update and one of these. Overall, the message DXY is sending is clear. Get out of Europe and into safety. The problem is, the stronger the Dollar gets, the fewer places there are to hide.

USDZAR

I use a weekly chart here to illustrate the power of trends. Some are calling for the ZAR to trade back to ‘fair value’ around R15. Truth be told, I don’t see that happening in the short-term. For now the trend is too strong to fight. I think the petrol price cut coming this week is going to be rather short-lived. Enjoy it while you can I suppose.

Gold

Gold is once again near the channel low and probably worth taking an interest in. In truth, I am not sure why Gold has not run ultra-hard on the back of all the ‘risky’ happenings around the world. Maybe Gold is just being a bit of a late bloomer?

Brent Crude Oil

Oil is holding on for dear life here, but even I have to admit that this trend is starting to look a little fragile. There is no doubt that a global recession scenario is going to be bad for oil demand, so there is a strong argument to be made for lower oil prices. That said, I think we are likely to see some production cuts from OPEC+, so for now I am hanging on here and saying that buying off this trend line with a fairly tight stop is the play. Although, be warned, if no cut comes from OPEC+, this trend line might just crack, and we could see oil come off a bunch. It’s probably better (if you have no position currently) to wait for OPEC+ before taking any trades here.

South African trade ideas

JSE Top 40 Index (ALSI)

Well, Friday was nice and cheery, but I am not sure that Monday will be. The downside target is still 53k. Trail your stop losses.

Quilter (QLT)

Rumours of a buy-out, support on an important level. Seems we have a very high risk-reward setup here for a long trade.

Naspers (NPN)

NPN once again flirting with death. We have already seen once before how significant this R2350 support zone is and again NPN is testing it repeatedly. If this level breaks to the downside (again), I think NPN is going to test the lows (again). Let’s see though, no point in pre-empting it.

Thungela Resources (TGA)

I don’t want to be ‘that guy’, but the energy situation isn’t exactly getting much easier in Europe and TGA is rather well positioned to make some (more) profit from selling coal. That, and a decent bullish reversal candle pattern. Maybe we push even higher than what anyone thinks is possible? In my experience, that’s generally how markets work.

Blue Label Telecoms (BLU)

We pointed out the BLU short last week. Trailing stop losses from here.

Mediclinic International (MEI)

MEI stock has been doing really well, and for good reason too. Although, once again I get that ‘gravity is calling’ feeling. MEI has put in a decent range between R90 and R100. A downside break of that range (sub-R90) might see a rather wild correction. Something to keep on the radar I think.

Steinhoff International (SNH)

SNH is dying… I thought that it stood a chance if this trend line held, but alas! The trend line did not hold and given the overall market mood, without a clear, loud new catalyst, I must abandon hope for SNH.

Sasol (SOL)

Similar to Brent Crude Oil, SOL is flirting with death. Watch the trend line on Oil and watch the R320 level on SOL. Below there (on both) and things get messy. If Oil bounces off its trend line and SOL can get through R365 to the upside the good days will be here again. Well, maybe not for basically everyone at the petrol pump, but good for SOL shareholders at least.

Telkom (TKG)

Bull flag looking like it might be almost ready to break, plus the buy-out story… I think TKG pulls one of these.

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

Offshore stockbroking rates

Subscribe for post updates

If you enjoy reading our blog and would like to get email updates each time we post, please subscribe below.

*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 resource

The post Welcome to winter appeared first on Herenya Capital Advisors.

Offshore trade ideas

S&P 500 (SPY)

Last week we were looking for a bit of a pullback on the major U.S. indices. The pullback came around for a few days, although was very short lived. Friday’s session was nice and strong once more. At this stage, we’re not really sure how to call it. On the weekly chart (left) it looks as if SPY is in a bit of a resistance zone near the upper end of a large rising wedge. On the daily chart, however, it looks like the small correction in the first half of last week has set SPY up for another push into fresh all-time high territory. That said, from a momentum perspective we are still seeing some emerging sell signals. Therefore, for now, we remain somewhat bearish SPY and will avoid entering new long trades on this market (instrument).

Russell 2000 (IWM)

In stark contrast to the SPY above, we really like the IWM setup for a long trade. IWM broke out of an almost 12 month consolidation and has come back to test the break out very nicely. Perhaps there is still room for it to test the $234.60 level before seeing further upside, but either way we are happy to be long here.

Philadelphia Semiconductor Index (SOX)

SOZ has been a bit of a market leader in the past and we believe that it still very much is. After a sharp sell-off in the first half of last week, it managed to put in a strong end. Right now there is no high probability setup for us to trade here, so we cannot initiate and new trades. For those who bought the break out though; moving your stop loss to the Wednesday lows would be a nice way to ratchet your stop higher and allowing a winner to run.

Invesco China Technology ETF (CQQQ)

We mentioned CQQQ some time back as a potential buy and reiterate that today. Using a weekly chart we illustrate the significance of the support level it managed to hold. We also note that Chinese equities are still underweight in most asset managers’ portfolios. Once policy starts to become a bit more favourable in China again (which is starting to happen – look at Chinese education stocks and recent policy changes in that space), we think that institutional funds will start to flow into Chinese tech once more and CQQQ should put in a decent rally over the next 3 to 6 months.

Gold

Weekly chart on gold here showing that triangle formation we’ve been eyeing has finally broken. As the market is coming to terms with the realities of inflation, gold could really catch a bid.

U.S. Dollar Index (DXY)

The mighty Dollar broker higher and out of the range it’s been in for a couple of months. Although nothing moves in straight lines, we expect that we will continue to see a stronger Dollar for another few months at least. We can now comfortably say that the DXY trend is up.

USDZAR

Unfortunately a stronger DXY means a weaker ZAR. At present the USDZAR settled inside the range, although we think the most likely move from here is towards R16.00. Also note that from a trend perspective, we can say that the trend here has changed too.

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

Offshore stockbroking rates

Subscribe for post updates

If you enjoy reading our blog and would like to get email updates each time we post, please subscribe below.

*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.

The post Brief thoughts appeared first on Herenya Capital Advisors.

We’re not saying that the melt up is over. Hell, it could go for another year or so. Just in the very short-term it seems like the rally might have run out of steam on Friday and is due a pull-back. Let’s look at some charts and you’ll see why.

Offshore trade ideas

S&P 500 Volatility Index (VIX)

The VIX has held the base around 15, but put in a decent up-day on Friday. This might have been some of the smart money buying cheap protection in the face of stretched equities. A spike up to the low 20’s here would not be too surprising.

Philadelphia Semiconductor Index (SOX)

SOX has had a great break out from the flat top triangle. Friday’s action resulted in a spinning top candle formation though. A gap lower at the open on Monday with red action all day will likely create a shooting star candle formation. Not the end of the world, but maybe enough for it to go test the break out level again. Keep in mind that a large part of this index is NVDA, which was driven higher by high options volumes last week. Fade the calls…

S&P 500 (SPY)

Bit of a doji on the daily candle there on Friday. Interesting to see that it formed just under what was a historic upward sloping support (trend) line. Again, we’re not calling for the end of the world here, just a bit of a breather.

Dow Jones Transportation Index (DTX)

Well, thank you Avis for trying harder and doubling in a day so that DTX could fly! Note that the trend here is firmly up, but again, a small pull-back would make sense.

Russell 2000 (IWM)

We’ve been tracking ol Russell (the love muscle) for a while now. Finally the break-out came. Hopefully this is the start of a 12 month long grind higher. But first, fade the calls and let IWM retest the break out level.

Nasdaq (QQQ)

We’re really picking tops this week it seems. Again though, not the greatest action at the close of the week. One last pull-back before the Santa Rally arrives?

U.S. Dollar Index (DXY)

DXY finding a bit of resistance around 94.50 (and support at 93.50-ish). Our view is that DXY should continue to climb over the next 12 months, although it will have to break this range (marked in white) first.

Brent Crude Oil

Weekly chart on Brent here. It looks rather likely that we see it pulling back to test the trend line marked in white. There was some news over the weekend that OPEC will be increasing prices to their biggest customers… so oil is a bit of a wild card now. We could see it gap up rather a lot when futures open. The words ‘energy crisis’ are ones you will probably see a whole lot before our summer is over. We maintain our bullish view on oil and energy and think that weakness continues to be a good opportunity to add (buy).

Gold

Nothing to do just yet, but keep watching this weekly chart. Remember, the best trades take a long time to set up. Patience young Padawan.

USDZAR

USDZAR overshot the resistance initially, but now looks set to make a push to the bottom of the channel. We would guess that an encouraging election result might ignite some interest in SA assets and lead to some inflows into our market. In a strong ZAR environment, local retailers and banks come to mind.

Cryptocurrencies

Ethereum (ETH)

ETH is doing better than BTC at this stage. Call it the leader if you will. It’s made new highs and is grinding ever-so-slowly higher. There is nothing about this chart not to like. Sitting long for another month seems like the right trade.

Bitcoin (BTC)

BTC is trying, but hasn’t quite yet broken free from its resistance. Maybe some of those TSLA call profits will make its way to the crypto space in the coming weeks? A large portion of the market seems focused on the shi… altcoins and NFT space at the moment though. Once the apes realise that most altcoins are merely pump and dump schemes, they will find their way back to big daddy Bitcoin.

South African trade ideas

Anglo American PLC (AGL)

Well… not many words are needed here. This chart looks like a dumpster fire.

AngloGold Ashanti (ANG)

ANG needs to be watched in conjunction with Gold (above). If Gold can break out of that large triangle and ANG can hold above the 200 day moving average, we could be setting up for a decent strategic long here. Keep in mind that miners often lead the actual metal. This is worth keeping on the radar.

Brait SE (BAT)

If you’re not following @tradinglikeafox, you should be. He did a good thread on ‘at home exercise’ companies earnings that were disappointing. The ‘lockdown’ trades are out of steam and people are returning to the outside world. This bodes well for BAT as its gym business is going to do well. Looking at the chart though, it broke that range nicely and had a multi-week pull-back. Now it’s made a decent bullish push again and momentum is turning proper bullish again. New (recent) highs are on the way.

BHP Billiton (BHP)

Another dumpster fire looking chart. This is not as clear as AGL though as BHP has some oil exposure. Nonetheless, the chart is pointing down.

Naspers (NPN)

NPN is not looking good at all. We’d thought that this stock could break higher, but it is starting to look like we got it wrong. Careful with the longs here.

Sasol (SOL)

Following on from our comments on oil (above), SOL could be very much in play in the week ahead. Nice chart setup too.

New educational content

We uploaded the JSE Power Hour presentation Petri did earlier this year, although the link in the mailer that went out did not work. So for those who are keen to watch the video and download the slides, please have a look at our Presentations page. You will actually find most of the Presentations that Petri has done over the last fews years, including the slides. It’s a good place to start learning if you are new.

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

Offshore stockbroking rates

Subscribe for post updates

If you enjoy reading our blog and would like to get email updates each time we post, please subscribe below.

*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.

The post Fading the calls appeared first on Herenya Capital Advisors.

Sentiment

Below is the Goldman Sachs ‘Sentiment Indicator’ which measures stock positioning across retail, institutional, and foreign investors versus the past 12 months. Readings below -1.0 or above +1.0 indicate extreme positions that are significant in predicting future returns. As we can see, this indicator is currently only very slightly bullish.

Next up is the Bank of America ‘Bull & Bear’ indicator. Once again, it’s in the middle of nowhere. We interpret this as a signal that the market is currently able to sustain more upside without greed becoming too extreme.

Buybacks

The buybacks mentioned earlier is put into perspective by this chart from Goldman Sachs. Just over $1trillion consistently on the bid… More upside coming?

Tapering

It is also worth noting that even with the market mostly expecting tapering to start in November, and interest rate hikes to start mid-next year, the market is not responded negatively. Goldman Sach says “We are pulling forward our forecast for the Fed’s first rate hike by one full year to July 2022, shortly after tapering is scheduled to conclude. We expect a second hike in November 2022 and two hikes per year after that”. Even so, the market remains strong.

Now let’s go through our (mostly) usual charts and see what is out there.

Offshore trade ideas

Philadelphia Semiconductor Index (SOX)

SOX is a bit of a leading indicator to the greater tech stock indices in our view. Although there is not setup to trade here right now, this large flat top triangle has been in the making for a few months. A bullish break here would likely lead the broader market higher.

Nasdaq (QQQ)

Our bearish divergence shown last week was the wrong call. QQQ printed fresh all-time highs and seems to be set on grinding higher. Some tech excitement thanks to Meta might also be a driver here.

Dow Jones Industrial Average (IYY)

IYY is also looking fairly strong. Last week was mostly spent consolidating around new all-time highs and the week ended with the highest ever record close. In the very short term (5 days), this consolidation probably breaks higher.

Russell 2000 (IWM)

This IWM chart is one that our regular readers are probably very familiar with by now. Still not trade here, but still on the radar. This consolidation, at least in our view, will dictate the fate of the wider equity market in the 12 months ahead.

U.S. Dollar Index (DXY)

We’ve included both the daily and weekly chart of DXY here. On the daily we note that our short-term target from our ‘Headed for news highs‘ post was tested. From there DXY bounced hard. Our base expectation here is that DXY will likely rise, or the U.S. Dollar will strengthen, in months to come. Much of this we think will be driven by two forces. 1. Funds flowing into the U.S. Treasuries market as investors will start to seek protection against inflation, and 2. The energy crisis is not nearly as severe in the U.S. as it is in Europe and China, which should give the U.S. economy an advantage during the winter months.

China Coal Futures (CCEX2021)

Longer-term view of Coal Futures in China. It’s been rather volatile (to say the least), but in our view the party is not over. Lots of Chinese coal production was impacted by flooding (about 50 mines) and we are likely in for a cold northern hemisphere winter. We think that (although extremely volatile) weakness here can be bought as coal will likely stay hot (excuse the pun).

Gold

We don’t want to go too much into the commodity commentary here, perhaps a post for another time. But this weekly chart of Gold shows a large symmetrical triangle in the making. Keep it on your watchlist.

Xtrackers Physical Rhodium ETC Fund (XRHO)

We showed the XRHO chart before and show it to you once again. This is a weekly chart, so the timeframes here are slightly longer-term. This chart is working its way into our hearts and might be one of our favourite setups in the market at the moment. You can put on a fairly tight stop and potentially get a decent ride back to the highs.

USDZAR

Daily and weekly charts on USDZAR. On the daily, we have reached the top of the recent range between 15.30 and 14.15. The weekly chart shows us that it is sort of back in the range it was trading before this whole pandemic thing took the world by storm. Perhaps it is reasonable to assume that (unless South Africa shoots itself in the foot) the USDZAR should stay in this range for a few more months?

Bitcoin & Ethereum (BTC & ETH)

We’ve grouped these together this week because they both look rather good. ETH admittely looks a little better that BTC, but we are on track for a new high on both we think. We noticed that some of the larger investment banks started updating targets on these two as well, with Goldman Sachs saying they see ETH going to $8k. Regular readers will know our targets and expectations for year end. Newer readers should have a look at the 2021 roadmap for Bitcoin, Which cryptocurrency to buy in 2021, Stimulus, Gold and Bitcoin and It’s time to buy Bitcoin posts for context. They are older posts, but our views have not really changed.

South African trade ideas

As we mentioned earlier, there is not really much in the local market that looks attractive to us now. So we only have three ideas to share with you this week. Surely there will be some setups to come in future, but for now, perhaps this is a good time to practice discipline.

Woolworths (WHL)

WHL could be a good buy off the 200 day moving average here. Risk on sentiment and strong buying in the U.S. could raise all ships, and local retailers have been underwater for a few months now. Also, Christmas is coming and retailers tend to like them some of that Santa Rally.

The Foschini Group (TFG)

TFG has been consolidating around the 200 day moving average for a while now. It offers a decent, high risk-reward long trade from here. Keep a tight stop though.

Vodacom (VOD)

Maybe this 6 week plus selloff in VOD is a little overdone now? Back in June and July, the zone between the 89 and 200 day moving averages proved to be a good buying zone. Let’s see if the general market agrees this time.

New educational content

We uploaded the JSE Power Hour presentation Petri did earlier this year, although the link in the mailer that went out did not work. So for those who are keen to watch the video and download the slides, please have a look at our Presentations page. You will actually find most of the Presentations that Petri has done over the last fews years, including the slides. It’s a good place to start learning if you are new.

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

Offshore stockbroking rates

Subscribe for post updates

If you enjoy reading our blog and would like to get email updates each time we post, please subscribe below.

*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.

The post Bigger picture appeared first on Herenya Capital Advisors.