Thursday, 3 September 2015

Samurai Summary: Top Tweets 03/09/2015

It looks like the commodity rout is not only hitting emerging markets but also developed ones such as the US. The slump in the price of all commodities has lead to a decline in income from US agricultural sector which is concerning. Analyst are citing oversupply as countries such as US geared up towards a growing Chinese economy that has fallen short of expectations.  


Yesterday I spoke about some of the BRICS member nations most notably Dilma Rousseff who's facing a hard time in terms of her popularity with voters due to economic slump. Today I wanted to pay attention to India who has up until now been an exception as many believe their president, Narendra Modi would bring about sweeping changes to make India more business friendly. Yesterday labour unions took to the streets in protest to new reforms to the labour law that Modi's government wishes to pass.  Although Mr Modi's credibility is yet to be tested, his reputation among many is starting to wear thin.

When the going gets tough the tough get going, so the saying goes and with oil nearing 7 year lows participants in the oil sector are becoming inventive of new ways to keep oil supplies on the sea. Instead of sending tankers through the usual canals between Europe and the Middle East to save transportation time, oil companies are sending ships the long way round. The speculative reason behind the idea is the hope that there might be a jump in the oil price so to get a better price. Actions such as these do give a clue that producers believe that oil prices cannot stay this low any longer and a bounce could materialise soon.

Great trading wisdom from Steve Burns and very true as well. Plan your trade and trade your plan. This keeps emotions at a minimum when needed the most especially when we have topsy turvy market conditions as we are experiencing at the moment.
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