Monday 31 August 2015

Top Tweets Today: 31/08/2015

Although big manly beards may be outdated on Wall Street these days doesn't stop the odd fan from showing their admiration to the good man. Judgements aside, the Dow Theory is still one of the most used technical indicators today coupled with the famous Dow Jones Industrial Average tracking the 30 largest industrial companies listed on the New York Stock Exchange. It's safe to say that Dow has should the test of time


I was venturing through twitter land today and stumbled upon an interesting trading handle; @edgewonk . I really found this summation of the differences between amateur and professional quite cool so I thought I'd stick it up to highlight some important differences. Let me say that for any trader starting out I believe a list like this should help you set up goals for yourself to reach with a continually push. Websites like these should be applauded for keeping with the spirit of true trading and emphasising the need to keep risk & emotions under control at all times plus having fun.


I thought this picture to be appropriate with what's going on in the market at present as the bounce which was expected has now materialised but technical damage being left behind. If unnoticed this mirage has the ability to suck in the greedy and fool the rest. What is to come from the damaged state of these pattern is yet to be seen only time will tell.

  All things good things must come to an end and alas a 5 year uptrend on the S&P 500 has finally taken it's bow and broken support. This uptrend was significant for trend followers who have now been chased to the sidelines as the shock of it all has left many waiting for indications as to when a new one might start up. Attention must be given to when longer term charts such as these break important areas as they signal change in conditions.
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Samurai Summary: Top Tweets 31/08/2015

After initially thought that China would stop intervening in their markets more and more evidence is showing that they haven't. Many have come to the defence of these actions saying the Americans employed the same tactics to save their markets but we must not forget that drastic actions the Chinese are taking and the lack of any transparency makes these moves questionable.

Good news story coming out of South Africa, Aspen Pharmacare has made the the Forbes 100 list of the Worlds Most Innovative Companies coming in at number 12. Led by Stephen Saad this once small pharmaceutical company has grown from strength to strength. On Friday the company released a voluntary statement stating it was expecting growth in earnings to be subdued which is evident in the price action we've seen in months gone by. However looking back could've said the same in 1996 giving it no chance at succeeding or even dreaming that one day this company would become one of the largest market cap JSE shares.



I touched on this on Friday when I spoke about the predicament Russia has been met with after starting conflict with Ukraine. This story over Ukraine falling short of payments that need to be made has been developing for some time and although I thought it could send jitters through markets it's been fairly well contained and with news that they have come to an agreement with creditors to restructure their debt comes as an added bonus. There are further hurdles to climb over though as it needs to restructure 3 billion euros worth of debt it has with Russia it's previous president made in 2012.


 Michael Homen from Kaizen Asset Management posted this interesting stat about the percentage of exports as commodities by country. Not surprising to see that South Africa and Australia are tops with both their economy's taking a hard knock due to the global commodity slump. The reliance on China as the big buyer has hit a snag as the world's second largest economy struggles to kick start growth again with figures sitting at under 7% from where it once stood at 12%.
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Sunday 30 August 2015

Top Tweet Omnibus for the Week Ending 28 August 2015

Firstly I like to say a big thank you to all my blog followers this week for the great response I had this week by reading my blog and sharing my posts with others. Without you this blog wouldn't be possible. Let's get straight into business;

Every week I will be publishing the links to all the Samurai Summary & Top Tweets Today articles that I have posted during the week in case you might have missed it. They full of great insight and give a general overview of what's been happening in the news of the day.




The week started off to a shaky start on Monday following a sharp selloff on US equities last week Friday which added fuel to the fire when Asia opened on Monday. Indices sold off quick as many had expect the PBOC (People's Bank of China) to announce stimulus measures to support its economy. The unexpected expectation highlights markets participants craving need for rates to stay lower for longer.

As a result of such a vicious selloff in the Asian session the contagion spread to US markets fast and everyone's eyes were glued on the futures to indicate what open the US were looking at. At one stage futures on the Dow, S&P 500 & NASDAQ were down over 4% in pre-market open. Finally when markets did open circuit breakers were hit and the market froze for a moment to catch it's breath. It was pandemonium as everyone scrambled to hurry into cash.


But that wasn't the end of it as Tuesday's action was worrisome. The Shanghai Composite Index had ended down 7.5% while other Asian markets managed to find a green footing which followed into the US up until the last hour of trade where being up over 3% and set for a bounce confirmation suddenly fell into negative territory by over 1% . Terror definitely reined this week. 

Needless to say most markets had managed to get to grip with the realities on the ground and bounced back. For some a roller coaster ride of emotions others complete despair, the characteristics that aren't always felt with bullish sentiment. The PBOC eventually made the all but too late announcement of measures to be implemented by not only dropping the RRR (Reserve Rate Requirement) but also slashing the Lending Rate. It was also said that the so called Plunge Protection Squad, a team formed to prevent Chinese equities sinking into the abyss, were going to stop intervening until authorities had fully debated the consequences of intervention. Although this was said there was little doubt as to why there appeared to be a sudden surge in Chinese equities come late session for the days proceeding the announcement. 

In other news Facebook released a statement saying that 1 billion users had logged into the social media platform on Monday setting a new record for the company which now boasts that 1 in 7 people use Facebook on a daily basis. The world is becoming more closer to one another with the use of technologies in it's ever demand on the march towards progression.


Venezuela made a pleading call to Saudi Arabia to call an emergency meeting of OPEC members because the country is hemorrhaging from the effects of lower oil prices. Saudi Arabia heads up OPEC as the leader and made a stern call that it will not be dropping production in their country as they themselves battle to stem government spending from the result of the same symptoms being felt by Venezuela. This is not the first call made by an OPEC member with Nigerian Oil minister calling for it a few months back. The planned meeting will take place in December this year as things stand. What's certain is that political tensions are rising as these oil rich countries continue to sacrifice citizens well-beings for oil domination.  

Related to the story is a further requests to OPEC to allow Russia to join talks at that meeting should it happen. Russia, a nation who has borne the brunt of sanctions from the West is reeling as its economy shrinkage, currency devaluation and drop in government revenue plummet has placed its leader Vladimir Putin in a compromising position. It was also said that German Chancellor Angela Merkel and French President Francois Hollande intended to hold a telephone conversation with Mr Putin to lay out a plan to get back to the negotiating table so sanctions can be dropped.


Finally it's all eyes on Jackson Hole where the Fed is hosting its annual symposium where central bankers from around the globe are invited to attend and the Fed expresses it's policy intention over the next year. The big question on everyone's mind is when will the Fed being hiking rates and at what pace? Given the turbulent nature of things at the moment I think it's safe to assume that a September hike is off the cards but we should remain cognisant that rates will go up. As I've heard in days past some calling for QE4 (Quantitative Easing) to be used again, I can't find reasoning to agree with this. 

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Friday 28 August 2015

Top Tweets Today : 28/08/2015



When you think of commodities you're mind automatically focuses on the honey pot of world resources , Africa. However given the turbulent drop in most commodity markets the African growth story had fallen short of expectations so far. Nigerian who's oil dependent economy was up until last year reaching new economic frontiers and liberating it's people economically has been hurt badly. South Africa is not far from the same fate as mining dominates as a supplier of jobs.

This weekend is all about Jackson Hole where the Fed hosts their annual symposium. Most have come to see it as the Feds future intention for interest rate policy which will likely steal the show as policy makers from around the world gather to discuss matters such as inflation , currency and monetary matters holding true to the economy. Now more than ever participants will be keeping their ears close to the ground for snippets of information which could indicate the Feds willingness to hike rates.
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Samurai Summary: Top Tweets 28/08/2015

I must admit I got the idea to find a long term chart of the USDJPY from the amount of coverage this currency pair has been receiving and rightly so. It would seem that current price levels are  bumping up against some major resistance causing some concern.  From the bottom of 2011 it's clearly evident that there hasn't been a major pullback in the last 4 years which adds some validation that choppy times could be ahead for stocks. The author of the tweet has over layed a fibonacci retracement with possible values where price could land, the first being 106 which represents 14.5% lower from where we are now.


Oil spiked up over 10% last night as it was reported that Venezuela has sent in a request for OPEC to hold an emergency meeting. The meeting which is to take place in December is wanted to be brought forward because member nations economy's are reeling after the drop in oil prices. Venezuela in particular is grappling with high inflation and the situation on the ground is getting out of hand with food shortages being reported. The fight is yet over as US shale producers are dealing with their own problems as debt payments are piling up and not enough cash flow to disburse to creditors creating worry.


I just loved this article so much I had to publish it on my blog. The writer really hits home the point that so many misunderstand when it comes to trading, it is a journey worth a thousands miles and each day we learn something new something different. The longer we stay in the game the better we get at it. More emphasis needs to be placed on the fact that trading isn't easy, it's tough and years of experience need to be racked up before anyone is proficient regardless of the catchy phrases some internet ads may say.
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Thursday 27 August 2015

Top Tweets Today: 27/08/2015

One of the most followed economic indicator for clues on the health of the US economy is the initial jobless claims. The numbers being report suggests less people are losing their jobs meaning the economy is much stronger so as to absorb minor blebs in the system. However one does question whether these indicators prove effective as we've seen turmoil in markets ravage the market. Talk around interest rate hikes is tantamount to reading your kid a horror story to get them to sleep which does point to distress.

 This is a story that I've been following closely. Over the years China has been accumulating foreign reserves in the form of US Treasury's. As is evident from the graph below the accumulative spree shows strong correlation to the Fed Reserve's Balance Sheet. But as of 2014 there has been a steady drop off of these assets. This would make sense as the Chinese government has attempted to support the market from falling further and in doing so sold off these assets.


If you thought only cheap manufactured immetiated goods are the only thing to come from China you're wrong. It's been found that a company running under the guise of Goldman Sachs. The company which purports to be affiliated to the real Goldman Sachs has been around since May 2013.

Trying to quantify the Chinese stock market can be tedious but Bloomberg put some perspective on it showing that if you were to combine the members of BRICS market cap together excluding China it would equate to roughly half the size of the losses made in Chinese equities since June the 12th. Enormous!!! What it also highlights is the need for government to step away from trying to control it as it ascends to the ranks of the highest market capitalised nation in the world.

Paulo Coelho is one of my favourite literist and his tweet hit straight to the point. In trading we tend to get carried away with all the news and activity around us that we forget the important things in life like our goals we've set ourselves or what it is that truly makes us feel happy.  I think this week has made me realize one thing, that trading is what makes me happiest no matter what the circumstances may be. Participating with so many different people from different places around the world really gets me excited and something I want to pursue for as long as I can.
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Samurai Summary: Top Tweets 27/08/2015

A nice close at the end of the day for US stock as major indices climbed over 3% to finally make the much awaited comeback many have been waiting for. Stocks on Tuesday were set to close firmer when in the last hour of trade things fell apart and resulted in more ground being lost. There was a cumulative sigh of relief yesterday but warnings that things could get worse should a full strength bounce not materialize. When I read this tweet posted by Business Report it felt strange to see the equal but opposite description made a few days ago when stocks plunged to their worst day in 4 years. It really gives you a sense of how volatile things have become.

Following up from Business Reports tweet, a similar felt sentiment made by investment bank RMB early this morning after traders and investors were left reeling after a smack in equity valuations. As stated previously this could be a great opportunity for value investors to step up and acquire solid companies at a discounted rate. The bad news flow seems to have dried up so it wouldn't surprise the market if we were to see these value investors help prop up the market a bit here.


One of my most favourite parts about social media in a trading context is anecdotal accounts by some traders to try accurately describe their feelings at  the current moment. JD Breytenbach from Vunani Private Clients shares his similarities between an ex girlfriend and current conditions. Just goes to show how interconnected life and the markets are. Gotta love this stuff.


I reported last week a number of tweets about the concerns over the Rand's weakness of late and possible impacts it could have as time goes by. This story sticks close to the same theme as it is said that the South African economy is "technically" in recession. If one is prudent enough and uses the local currency as a gauge of investor confidence, you would realize that there's be a steady decline over the years and any lack of flow coming into capital markets locally  will have crippling effects as a whole. Although the current emerging market currency rout is not specific to South Africa that slow depreciative bias over the years does throw a hint at the bigger picture.


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Wednesday 26 August 2015

Tops Tweets Today-26/08/2015

Interesting stat coming from StockTwit, the longest streak without a 10% correction in the S&P 500 that ended recently was the third longest in recorded history. The second longest coming from 2007 and we all know what happened then. Technically speaking major support areas are yet to be tested which does help boost confidence and perhaps prepare many for levels to watch.


For the third day running the New York Stock Exchange invoked Rule 48 to try avoid high levels of volatility hitting most markets worldwide. The rule which is only used in very special cases is imposed to alleviate the need to publish opening prices before the open. Extreme bouts of volatility witnessed on Monday does seem to have tapered off a bit however they are tentative to market sensitive information.


Chris Kimble, a renowned technical analyst who loves putting humour in his charts drew some of the major world indices and the results look telling. Most of them are lying on major uptrend supports alluding to the fact that there needs to be a bounce of some sorts to prevent them from falling victims of a trend break. Although there was evidence of a much calmer conditions in proceeding days following  last Friday's and Monday's moves the market needs to work overtime to avoid the inconvenient truth.
The Federal Reserve Bank of New York President William Dudley said given the nature of market conditions of late the likelihood of a September rate hike is slim. This was expected and didn't seem to impact the market in earlier morning trade. As markets crave more stimulus which they have become momentarily addicted too, the Fed sits in a precarious position where it will be somewhat contradictory if it were to suddenly diverge from its pathway to interest rate hikes. Many have called on the Fed members to consider QE 4 but my opinion is it's too late in the game to make any sweeping changes to policy direction.



 It was announced this afternoon that platinum will become a reserve bank asset as government , business and labour strive to prevent job losses in the ailing platinum sector. This signals a new chapter for the parties who have been at loggerheads over the past number years. I don't envision this strategy to have much effect on saving the industry as evidence has shown previously where government has not taken the situation seriously  and allowing matters to get heated to the point of a massacre.
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Samurai Summary: Top Tweets 26/08/2015

It almost felt like US markets were set for a textbook rebound close going into the closing session yesterday but the market had other plans as last minute trade saw all major indices turning crimson red from a grinning green. Most commentators were left shell shocked as many were taken by surprise by the sudden dip. Moves such as these do indicate a level of weariness by participants to be trading in these market conditions.

Great article presenting the argument that those blaming China for global volatility on markets are wrong and the Fed is the one who should be taking the responsibility by artificially inflating stock markets with easy money. The author makes a good point that in the years which have followed the Great Recession, the US economy is only 8.5% higher GDP wise and points a finger at the US government from not doing enough to help the economy. Thinking of the amount of trillions the Fed printed to keep things ticking hasn't found it's way into economic prosperity.


A good news story coming out of Germany is electricity prices have fallen to a 12 year low due to renewable energy being supplied to the grid. The model that German currently uses does look likely as a prototype for the rest of the world to follow if it can be employed effectively. The factors that have played a major role in seeing the green revolution is technological innovation in terms of the amount of electricity being produced from renewable assets which have been driven higher and higher as well as financial modelling that make the system affordable to implement for the consumer.


A popular trader amongst US followers, Steve Burns has made his name by consistency employing discipline to his trading process with devote dedication. This blog by Steve found on his website is a reminder to every trader that the journey is long , the road is bumpy but the end goal is sweet. Observing around the financial community over the past month does reflect a frenzied emotive reaction but realising that this moment is another feather in your cap is all you need to set you on your way to trading success.

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Tuesday 25 August 2015

Top Tweets Today-25/08/2015

I was so surprised when I heard this news story I decided to yawn. The much anticipated decrease in the RRR (Reserve Rate Ratio) was announced coupled with a decrease in the lending rate to try well up fears that the Chinese stock market is on a collision course. It was also said that the Chinese government will no longer support the market and instead opened up discussions around the merits of supporting it said a person close to the source. This suggests that maybe the government has learnt its lesson about meddling in markets. What puzzled most was the timing of the announcement which was expected to occur on Sunday. This could be Beijing's way of attempting to make their predictable intervening schemes unpredictable which ultimately backfired on them.


Oil has been dropping for the last year now and you have to wonder when we'll start seeing the impacts materialize. That's what drew me to this piece on Saudi Arabia, the leader in OPEC and largest economy in the Arab world. It's revenue raised from oil represents 90% of government revenue which does make for a worrying case for their economy. This could possibly be the start of a catalyst for the bottoming of oil, all the while the political hot cooker is boiling over and could bubble over at any moment.


The guys over at SeeitMarket have been quite busy of late analysing the recent selloff we saw yesterday. Here's a great piece from founder of Seeitmarket, Andrew Nyquist who's been watching the situation unfold on a weekly basis since earlier this year exhibits some interesting market breadth indicators his been using and the clues they left behind. He also uses an important tool when assessing a trend, the fibonacci retracement, to show possible levels where major indices.


The general feeling around is that although the market has dropped off significantly it would be wise to allow a degree of stabilization to enter the fray and then start taking or adding to existing positions. If one thinks about the amazing rally we've seen after today , you can't help but chuckle at the thought that armageddon was being screamed yesterday with absolute euphoria today as if nothing has happened. Spoiler alert; events such as these take time to resolve themselves and during that time you will encounter high levels of market volatility so best be prepared for what the market has to throw it you because it can get messy.

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Samurai Summary: Top Tweets 25/08/2015

While global markets were in turmoil the twitter community was abuzz with this particular hashtag that trended  to the top yesterday, #StrongerthantheRand making huge waves amongst South Africans. Although with much sarcasm and humour the implication of the Rand tumbling to new all time lows and crippling impact on the South African economy is yet to be realized and I assumed the response won't be positive. I suppose the real test is now is are South African consumer wallets stronger than the Rand ?


What would a blog post be these days without a tweet of some sorts about stock movements in China. If you were expecting more overtop acrobatic antics overnight you would've guessed right as Chinese stocks once again slumped lower with the Shanghai Composite ending the day down 7.63%. However there was a ray of sunshine as other regions turned a bright shade of green with the ASX 200 closing firmly up 2.72% , KOSPI in South Korea up 0.92% to name but a few. What is evident from today's picture is that volatility is here to stay for a while and caution should be heeded.
I just knew this was going to happen, the SARB (South African Reserve Bank) said yesterday that it may intervene if necessary following the turmoil witnessed yesterday on financial markets. If one reads closely you'll note the other emerging economy's either unpegging or intervening with their currency ever since the Chinese devalued the Yuan. Would it be right to do it? I don't think so at all, we all know what happened the last time SARB tried to intervene, South Africans were left facing interest rates over 25% which ultimately put a damper on things economically. Can it happen again? Yes it can.



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Monday 24 August 2015

Top Tweets Today-24/08/2015

Panic set in from the start of trade this morning with pressure coming from Asian market who ended down heavily in a bloodbath. Dow Jones Industrial Futures, S&P 500 Futures and Nasdaq were all down over 6% before the start of trade on Monday!!! The Nasdaq Futures short circuited 3 times halting trade to allow enough time for trade to once again settle. If this market is to have any reminiscence to the previous Black Monday, we'd need to see more vigorous moves, at the time of writing this; 17:00 South African time there has been a bounce upwards with the S&P 500 futures down now only down 2.5% so slowly clawing it's way back but anything can happen.

Continuing from our lead story an interesting piece posted on Business Day in  which the author explains how we shouldn't expect a good story to come out of commodities anytime soon. I tend to agree. Most miners geared up heavily thinking they were going to be seeing 12% + growth for a number of years and unfortunately that hasn't risen. Now if we were to assess the situation today it doesn't seem likely that the Chinese economy will see growth rates as before anytime soon given the contagion in their financial system.


Today is all about the global markets crash and this video describes perfectly what it felt like to be a bull today. Global markets have been artificially fuelled by cheap money and bulls have had it relatively easy the last while thus building a sense of complacency and anyone who's been in the markets long enough knows with complacency comes a sudden amnesia of what's really going on.  

The guys over at StockTwit who post brilliant charts of interest show this chart which is a monthly time frame with a 12 month moving average put on top. What the chart suggest is that key price levels cross under this moving average you generally find a pullback in price. Can it be proven to be true, we'll have to wait and see.



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Samurai Summary: Top Tweets 24/08/2015

Oh boy what a day to be blogging about financial markets. Markets in the East opened up under pressure and continued the plunge that started 2 weeks prior. These are the days we mentally prepare ourselves for, buckle up and hold on tight.

Not surprising that Chinese stocks lead the way as global financial markets went into meltdown with some indices recording the worst day in a few years. A rumour on Friday speculating that the Chinese government was going to intervene did not come to light and as a result traders and investors alike read this as a sign as the government reaching a dead end in terms of measures implemented to save Chinese stocks from bailing.

While the rest of the world goes crazy, some make a valid point that although stocks are pulling back significantly this is not cause for concern but rather a chance to climb in at better valuations. Given the upward vertical nature and lack of any decent pullbacks of most markets in recent years this could prove to be a great opportunity once the dust settles.



Being on the backfoot lately the Rand was slapped about in early trade as it hit new lows against the Dollar. It is not alone as most emerging market currencies are taking a beating. Will SARB intervene? It highly unlikely but then again only time can tell...


The dreaded Head & Shoulders technical pattern on the JSE Top 40 index which has been lying around the market for the last 2 months finally broke down. The time period used is on a 3 day basis taking only 2 candles to reach it's target, it does give you some indication on how badly markets have sold off so quickly.


@TradersCorner The dreaded H&S everyone's been waiting for to break has finished the move in 2 candles. #JSE #ALSI pic.twitter.com/vfTFbw9JiE
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Saturday 22 August 2015

Top Tweet Omnibus for the Week Ending 21 August 2015

Starting this week we have a new feature where I'll be posting the best tweets of the session and doing some commentary on them. Geographically South Africa is right in the middle of the timezones which allows me to post 2 blogs per day, one for the end of the Asian session and a second at the end of the European session which is also the beginning of the US session.

 My goal is for my followers to get a quick overview of what made newslines during the day and save you time. I hope you all enjoy it. So at the end of the week I will be posting the links to each one in case you too busy to see them during the week. 



The week started off on a sombre note for Lonmin where the price rout continue to dig heavily into shareholder value as concerns that debts that were due to be serviced next year wouldn't be on the account of a huge cash drain on the balance sheet. Thankful Thursday and Friday's price action suggested that investors were feeling a little more confident with news that the company is working with Greenhill Co, a company which it had previously worked with in 2012 to help avoid financial catastrophe.

Worries over Chinese state of economy dominated sentiment again this week. The frantic intervention from government has lead many to believe that all is not well in the world's second largest economy. As a result we have seen a prolonged offload of commodity stocks over the last year. However there was a slight rebound in commodities when the FOMC minutes came out and came across less hawkish than expected which softened the dollar to a certain extent. But late on Friday Fed President of St. Louis, James Bullard came out with tough talk insisting that the market expectation on interest rate hikes this year is nowhere near where it should be which caused a frantic scramble. 

As a result we saw main US indices ending the day and week heavily in the red. According to CNBC, the Dow Jones Industrial Average has officially entered correction territory for the first time in 4 years with a drop of 10% from highs made during the year. The S&P 500 closed 3.2% down to end below the all important 2000 mark which could spell danger in the coming weeks.  

Rumours were abound much of the week with the first one proving to be true, with Greece Prime Minister Alexis Tsipras resigning and calling an early election due to lack of support from his party effectively tying his hands of power needed to make necessary reforms to save Greece's dying economy. The next was a rumour that the Chinese government might be dropping the RRR (Reserve Rate Requirement) to help aid it's own growth dilemma. If it does prove true it'll be yet another last ditch attempt plug holes in a financial system filled with bubbles all around. 

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Friday 21 August 2015

Top Tweets Today-21/08/2015

Now there's a term you haven't heard being bantered around too often recently, QE , otherwise known as quantitative easing. Since Janet Yellen announced the end of QE3 markets have lacked the shine they previously showed when free money was looking for a home. This begs the question, has the market become addictive to free money? To be continued...

News out from Lonmin today indicates they are currently working together with Greenhill Co but declined to comment on what it was they were working on. This comes off the back of recent worries that the platinum producer will not be able to service its debt facilities which are due next year. The price of Lonmin listed on the JSE showed relief as the price has jumped over 30% off its lows of R5.30.



How well have you been able to hold yourself this week on the markets? If only with a degree of discipline you're not alone. Often when you aren't prepared in your trading panic is allowed to set in and your mind goes into overdrive. Most traders battle with this from the beginning but with constant work you'll soon find yourself keeping a cool head. Failing to plan is planning to fail.


 An intriguing rumour to start the week, whisperings have been flying around that Chinese officials could cut the reserve rate requirement. This would be another form of intervention by the Chinese to try push forward an ailing economy which has failed to put out fireworks.

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Samurai Summary: Top Tweets 21/08/2015

Interesting piece out of CNBC where they've highlighted that correlation between the 50 biggest stocks on the S&P 500 has dropped to a 8 year low.  What does this mean for stocks? The article suggest that active managers may be placed to achieve better returns from diversification where they haven't over the current bull run.


Twitter has been taking a lot of flack recently and yesterday was confirmation of how bad things have got on the Street. The price falling below it's IPO price definitely signals Wall Street's intent to make management deliver on their promises which haven't come to fruition.

It's quite evident from the cartoon that most financial securities have suffered from market dysphoria of late and it feels like no security is immuned from it. Oil continues to nosedive to fresh lows in years while US & European stocks remain edgy. Is there a light at the end of the tunnel? Of course there is , just not now.




Trading is full of beliefs and wisdoms which form the bedrock of success. In this particular tweet Tradingwisdoms.com shares a blunt but very important facet of trading. It's more than just making money; quite true that is one of the things that draws us to it initially but soon we find ourselves delving deeper in to our inner self and managing our best and worst emotions.

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Thursday 20 August 2015

Top Tweets-20/08/2015

With China's sudden devaluation of the yuan last week, other emerging market currencies having been taking strain as traders anticipate a weaker economy from those regions due to the commodities slump and overall stronger dollar. The latest victim is Kazakhstan who announced today it will no longer keep its currency, the tenge, pegged but instead opted for a free-float mechanism.


It was bound to happen sometime or another, the Rand finally hit R13 to the US dollar to hit the lowest value in 14 years. The currency have received much the same treatment as its peers has over the last week following the Chinese Yuan devaluation. The country now finds itself in a predicament where it needs to decide which policy requires top priority. Increase rates to protect the Rand but kill the economy or allow the Rand to depreciated further and save the economy...decisions decisions.



Great statistical analysis by Ryan Detrick on the monthly return of the S&P 500. If the stats are anything to go by it looks like August could be a gloomy month. Time for a holiday?

Word out on the street that the Greek Prime Minister, Alexis Tsipras is close to calling an early election as infighting within his party has broken down support for him in parliament. Not only has Mr Tsipras thrown Greek citizens into disarray with a disastrous handling of bailout agreements, he has also destroy the trust between Greece and Eurozone nations. Can they be saved ?  

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Samurai Summary: Top Tweets 20/08/2015

Coming out in the US session was the all important Fed Minutes which were much anticipated in search of any clues as to when the Fed expects to lift interest rates. Although the Fed all but discounted the chance of a September hike they did indicated the the clock was ticking closer to the time...like we haven't heard that one before.
If you one of the 38 million users of the adultery website AshleyMadison.com chances are you're secrets are about to be revealed. Early yesterday hackers calling themselves "The Impact Team" released 32 million users personal information onto the dark web. This includes credit card details, addresses, usernames and passwords. Social media has been abuzz since the release with authorities still searching for the culprits. Something on this scale does call into question the safety of the internet when one thinks of the amount of information we store online.


With the Platinum price plunging to fresh lows in years most platinum producers have been taking strain and we've seen a barrage of announcements from mining companies suggesting closure of mines to plug holes in their bank balances. With no support from the SA government, the situation is turning into a crisis by the day.


With the chaos which has descended on global financial markets of late, some light bit of humour does help in easing off some concern. This one from Tradingmemes.com taking a laugh at the Non-farm payrolls guesstimates.

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Wednesday 19 August 2015

Top Tweets Today-19/08/2015

Some interesting developments in terms of population, not surprising that African countries have some of the largest predicted population growth forecasts as the continent begins its ascent to economical emancipation. Judging by these forecasts it looks like almost half the world's population in 2050 will come from India & China, not much different from what we see today. Crouching Tiger, Hidden Dragon

How low can it go? Anyone's guess, but all the while political instability increases at rapid pace throughout OPEC member nations. How effective OPEC is in pricing out competition will be determined by the ability of member nations to accept lower oil revenues with ultimately negative economic consequences.


 Sneaking back into the news after a sabbatical from causing chaos, Germany finally approves a Greek bailout. Much of the hype around Greece has been drawn away from the acrobatic price shifts in the Chinese stock markets...


 ...and just to get the extent of how volatile times have gotten in Chinese financial markets here's a great exhibition of how wild moves can be. I posted a blog early and Shanghai was down 3%, came back a few hours later and it was positive.


Got a news story you'd like to hear about? Why not send me a message either via email cadetrader@gmail.com or through twitter @CadeTradeR
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Samurai Summary Top Tweets-19 August 2015

A good indicator of the health of the economy is looking at transportation services and Imperial is no exception. Given the dip in oil prices you'd think we would've seen a rally but the overall SA economy weighing in heavily on this one...

Goes to show folks even the experts can call it wrong , persistence trends exist in markets but nothing runs up in a straight line.

The Rout continues...


If you've been wondering why gold has lost it's shine of late, The Economist explains some of the few reasons which has made it lose its shine.

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Tuesday 18 August 2015

Top Tweets Today-18/08/2015

In today's top news;

Lonmin's share price continues to feel the pressure as the platinum price tries to regain lost ground. It's suggested that management could be dealing with a hot potato...
The Chinese stock market took another nose dive in late trade with the Shanghai Composite sinking 6.15 %. Can the Chinese government stick to its commitment to propping up stocks?

Platinum has had a tough time of late but Bloomberg says there are possibilities of a rebound sooner or later, are they right?

Have you been observing the Dow Jones Industrial Average of late? Ryan Detrick has and found some interesting stats for the year to date.

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