Date published -2023-05-30
Last week, South African markets experienced losses across most domestic indices while global markets saw gains. Large cap and resource stocks were among the biggest losers. We recap some of the key results for or subscribers in each week's report. In the US, stocks initially faced challenges but rallied later in the week, driven by hopes of a debt ceiling deal. The Dow Jones lost 1%, the S&P 500 was up 0.3%, and the NASDAQ surged 3.5%. Chip maker NVIDIA was a standout winner rallying over 25% after reporting strong earnings related to chip manufacturing for artificial intelligence. Incidentally, our trade idea this week is not one of the 'bigger' names - its a non-obvious tech/consulting play you probably haven't heard of.
This week, we have initiated 2 new positions in our weekly carousel of major markets. We also indicate a partial profit take on one of our existing positions in the major market carousel and continue to ride 4 open positions (1 long and 3 short) across equities, commodities and FX.
Local equity indices continue to oscillate between long and short signals. Until we see clear signals to enter a trade, we indicate these as ‘no position’ and we indicate where we are looking for further price action as well as levels where we would consider both long and short positions.
Our weekly trade ideas this week include a non-obvious play in the global tech and consulting space -it’s not one of the usual suspects.
On our South African trade idea, we highlight a stock which looks intent to break out from an accumulation phase into a markup phase as a good contender for a long position. Lastly, in this week’s pair trade idea, we introduce an ‘out of sector’ pair which also introduces a relative position in cyclicals vs. defensives globally.
If you are not a subscriber, you are missing out on quality insights and actionable trade ideas weekly.
The full report is available to our Monthly and Annual Members. To read the full report, please login or join us.