The US Government Is Back Open………….Until February 8th

Posted on | by Todd | Leave a Comment on The US Government Is Back Open………….Until February 8th

The US Senate was able to agree on a short-term resolution to allow the Government to reopen until the 8th of February.

The US has not had a properly ratified budget since 2009 and these “stop-gap” agreements are now getting shorter in duration.

The DOW, S&P 500 and the NASDAQ all responded by making new all-time highs.

Interestingly, as illustrated in the charts below, not only are the 2-yr Treasury notes now yielding more than the SP 500 in the last 10 years, but the Index itself is the most overbought in history.

We suggest that the extreme valuations on Wall Street will soften US yields over the medium-term.

As such, we would expect to see buying interest in the ASX yield names such as TCL, SYD and WFD .

Our ALGO engine currently has flagged buy signals in TCL and SYD at $11.70 and $6.80, respectfully.

2-yr versus SP 500 yields

SP 500 Sentiment Oscillator

 

 

 

 

 

Algo Update – Invocare

Posted on | by Leon Hinde | Leave a Comment on Algo Update – Invocare

Our Algo Engine triggered a recent buy signal in IVC and the stock has continued to drift lower.

The next range of support is $14.30 , followed by the up trending support line marked as “support 2” in the graph below.

The negative price action over recent days is being driven by the market’s reaction to a change in industry competition in the UK and concerns that similar challenges may emerge in Australia.

IVC reports full year earnings result on 19th February.

InvoCare

Regional Banks Continue To Slide Lower

Posted on | by Todd | Leave a Comment on Regional Banks Continue To Slide Lower

Since posting a intra-day high of $12.05 on January 10th, shares of BEN have dropped over 6% and have slipped to a 2-month low of $11.32 in early trade.

Similarly, shares of BOQ have lost 4.6% since the start of the year and posted a 5-month low of $12.26 last Friday.

Recent mortgage forecasts have illustrated that in an overall loan market which is contracting, the regional banks will face the strongest headwinds to achieving the margins and loan growth that they have created over the last three years.

Our ALGO engine triggered a sell signal for BEN on August 16th at $12.45, and for BOQ at $15.50 on August 7th.

This has been a popular “short” trade for investors on our SAXOGo platform.

We expect the next level of downside support at $11.00 for BEN and $12.05 for BOQ.

Bendigo Bank
 

Bank of Queensland

ALGO Update: Strong Start For Treasury Wines

Posted on | by Todd | Leave a Comment on ALGO Update: Strong Start For Treasury Wines

Shares of TWE have started the week 2.5% higher today and have traded back above the $16.00 level.

Our ALGO engine triggered a buy signal at $14.80 on January 11th.

Several wire firms included TWE on recent buy lists, citing the company’s solid sales and growth projections into 2018.

In addition,  we expect TWE will benefit from the  lower tax rate for their USA-based business.

Based on the daily charts, we expect the next area of resistance near the previous all-time highs of $16.55.


Treasury Wine Estates

XJO Update: Miners Lead The Index Lower

Posted on | by Todd | Leave a Comment on XJO Update: Miners Lead The Index Lower

The ASX XJO Index fell 1.1% for the week and traded below the 6000 level for the first time this year.

Mining stocks and the major banks led the downside following weakness in commodity prices.

The ASX Gold index dropped four sessions in a row and lost 1.3% on Friday to close at 4874.60.

Iron Ore prices posted their first weekly loss in over a month, which pressured shares of mining giants BHP and RIO Tinto lower for the week.

Shares of RIO fell 4.6% to $78.00 while  BHP slipped 3.7% to end the week at $30.70

Internal momentum indicators are looking fairly neutral on the daily charts, which suggest the index could see range trading next week between 6070 and 5985.

XJO Index

 

ALGO Update: James Hardie

Posted on | by Todd | Leave a Comment on ALGO Update: James Hardie

Our ALGO engine triggered a sell signal for JHX  on December 27th at 22.40

It took several sessions for this trade to develop as the share price traded up to 22.80 on January 9th.

However, JHX shares have dropped over 6% this week and posted a low of $21.32 in early trade today.

A sharp drop in US Housing starts overnight has added to the potential downside pressure on the share price.

Single family housing starts declined by 8.2% in December to 1.19 million units. This is the largest monthly decline in 2 years and could further soften the JHX share price.

We see the next level of support at $21.00 followed by the mid-November low of $20.55.

JHX shares are traded as a CFD contract on our SAXO Go trading platform.

Call us now for more information about JHX and other names available to trade on our SAXO Go Platform.

James Hardie

 

Gold Slips Lower In Brisk NY Trade

Posted on | by Todd | Leave a Comment on Gold Slips Lower In Brisk NY Trade

After posting a 5-month low of $1238 on December 12th, Gold prices rallied over $100 to peak at $1345 on January 15th.

The yellow metal traded as low as $1324 in yesterday’s New York session, which suggests the technical correction is likely to extend the downside range.

We see the next significant chart point at $1309 but wouldn’t rule out a test of the $1292 area over the near-term.

On a longer-term horizon, we are bullish on Gold and will look to buy shares in the domestic Gold producers at lower levels.

On January 4th, we flagged the potential for a bearish correction and suggested that investors take profits in Newcrest mining near the $23.30 area.

NCN reports its Quarterly Production numbers on January 30th. It’s reasonable to expect shares of NCM, as well as the smaller producers, to closely follow the spot price of Gold into these production reports.

We added NCM to our ASX Top 50 model portfolio on December 13th at $22.10. We will look to buy back into the sector as the correction in spot Gold runs its course.

Newcrest mining

 

 

 

Goldman Sachs Slips On Lower Revenue

Posted on | by Todd | Leave a Comment on Goldman Sachs Slips On Lower Revenue

Goldman Sachs posted Q4 earnings of $5.69 per share, versus estimates of $4.98, on slightly higher revenue of $7.83 billion.

However, shares of the investment bank fell 2.5% to $252.00 as trading revenue in the fixed income, Forex and commodity division fell over 50% from a year ago.

With overall trading revenue falling 34% from a year ago, several analysts are doubtful that the GS share price will repeat the 6% gain from last year.

Daily charts suggest the next level of support in the $240.00 area, followed by the September lows of $205.

Goldman Sachs Group