OVERNIGHT News: FOMC and Crude Oil

Posted on | by Todd | Leave a Comment on OVERNIGHT News: FOMC and Crude Oil

The FOMC announcement to raise the target Fed Funds rate by 25 basis points to 1.25% was largely priced into the market.

However, the “hawkish” guidance  about further upward adjustments and the specific plans to reduce the FED’s $4.5 trillion balance sheet have raised concerns about current stock market valuations and the impact of tighter monetary conditions.

The major US indexes were mixed with the NASDAQ down .50%, THE Dow Jones 30 up .25% and the SP 500 down .10%.

US Energy stocks were all lower as Crude Oil prices slumped on a downbeat assessment from the IEA and increased production from both the US and OPEC nations.

The front month WTI Crude contract closed down over 3% to $44.65, which is the lowest closing price in over 18 months.

As a result, shares in both BHP and Oil Search have opened more than 2.5% lower.

Chart – Dow Jones

 

ETF Watch- NASDAQ Sell-Off

Posted on | by Todd | Leave a Comment on ETF Watch- NASDAQ Sell-Off

The NASDAQ stocks rebounded last night with Facebook, Google and Amazon all trading over 1% higher after the two day sell-off over the weekend.

According to several “high frequency” analytical reports, it’s too early to step back into the FANG stocks. Of the four times that a similar high volume sell-off has occurred since 1999, tech shares have needed several weeks to find a bottom.

In addition, as shown in the chart below, the last few days have seen the largest capital outflow since 2007 from the QQQ: the NASDAQ based ETF.

Our ALGO engine created a buy signal on the ASX BetaShare NASDAQ ETF on February 8th, 2016.

That ETF, with the symbol: NDQ has gained over 32% since then. Should the recent sell-off in the NASDAQ turn into a deeper correction, we will watch for the next ALGO buy signal.

QQQ ETF

 

BetaShare ETF: NDQ

Algo Buy Signal – Woodside Petroleum

Posted on | by Leon Hinde | Leave a Comment on Algo Buy Signal – Woodside Petroleum

The sell-off in oil back to US$45 per barrel has seen WPL, OSH, STO, and ORG all come under selling pressure.

Origin remains one of our preferred exposures among the energy names and after taking profit recently at $8.00, we’ve been buyers again on last weeks pullback to $7.30.

We now add WPL to our buy-list; we believe it’s back within a price range where buying interest is likely to start picking up.

The Algo Engine triggered a buy signal on Friday in WPL, at or near $30.00

Chart – WPLChart

 

 

 

Ansell – Buy Now

Posted on | by Leon Hinde | Leave a Comment on Ansell – Buy Now

Our Algo Engine triggered a buy signal in Ansell on the 7th February at $21.50 and the stock is now trading $23.22.

The recent selling weakness, where price has retraced from $25 back to $23, provides another buy side entry opportunity. The company will commence a $400m share buyback program later this month which should help to underpin the share price.

Stop-loss orders should be applied on a break back below $22.50. Buy and hold investors seeking added yield, may prefer to take a slightly longer-term view and sell-out-of-the-money calls at $25 into November.

Chart – ANN