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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