Every day I dissect the news of the day into bite sized snippets using Tweets I find on Twitter. My goal is to make sense of the news so that the reader has an easier time understanding it better and thus better placed to use that information more efficiently.
For those of you who may not have the time to follow my blog everyday I will post up an omnibus every weekend for your convenience to catch up. So let's jump right into thing;
Monday 5th October 2015
Samurai Summary: 05/10/2015
Top Tweets Today:05/10/2015
Asian markets set the trend for the week with Glencore stock price blazing through a field of shorts hitting off the mother of all short squeezes on the announcement that it was open to discussion with any potential buyers of its agricultural business in an effort to curb debt. The company had made it clear that it would do what it deemed necessary to cut back with sales of assets one such measure. The announcement, although a positive, was able to strike enough stops to let shake out any unbalanced biases after last week's dismal plunge.
Following up on the story closely I was able to pinpoint exactly what was unsettling investors over the company's prospects. It would seem that the Glencore is reeling from the price shock in Copper over the past few months. The red metal which was in much demand back when China was growing at a phenomenal 12% a year has slumped on oversupplied markets. It makes up 28% of earnings for Glencore making them the world's largest producer of Copper.
Tuesday 6th October 2015
Samurai Summary: 06/10/2015
Top Tweets Today:06/10/2015
In an expected move, Sibanye Gold headed up by Neal Froneman swooped in to offer Aquarius Platinum shareholders a significant deal to buyout the entire share issue at 19 US cent per piece helping inject much needed capital into the ailing platinum producer who as a consequence of a sector wide dip in the platinum price has left many mining houses reeling with debt burdens that are becoming less likely to be paid should the price fall much further than what we've seen. The deal would accelerate the gold producer come diversified precious metal producer into the 3rd largest platinum producer in the world.
In other corporate action story, SABMiller officially rejected a $100 billion buyout offer from AB Inbev as the days to the 14th October deadline offer date draws nearer. The company said the offer substantially lowers the value of the business as signs of driving away any future offers are meted out by top management. This comes after the largest shareholder Altari Group pleaded with management to open up discussions with the world's largest brewer in a hope of securing a lucrative deal.
Wednesday 7th October 2015
Samurai Summary: 07/10/2015
Top Tweets Today:07/10/2015
Global markets had a huge week running through much of the nastiness created from the past two months and inserting new found confidence into financial markets that are expecting Fed rates to stay lower for longer. At this stage of the week the S&P 500 rallied right up until the 2000 level only to turn back down creating fears that overhead resistance may stop the bulls flat in their path. But as we saw in the next sessions that followed, the index was able to secure that level which does put the bulls at ease a bit.
I also wanted focused on the chart I think is going to impact the markets the most and that has to be the Dollar index which has been hugging the flat line for the last 9 months awaiting a decision by the Fed after it set off on a mammoth run when it was expecting the Fed to hike rates sometime this year. That now looks to be all but written off with projections going as far as the second half of next year. With a weakening dollar on hand it may just provide the relief commodities producers and world was looking for to initiate world growth once again.
Thursday 8th October 2015
Samurai Summary: 08/10/2015
What's the Difference Between Technical and News Volatility
Top Tweets Today:08/10/2015
It looks like commodity producers were the hot stocks this week with an amazing rebound off multi year lows to set up one of the best weeks in a few years. Glencore set the trend which eventually led to the other mining players and continued right through the whole week. Even the particular weak companies such as Lonmin received a much needed bolster as investors began to speculate that capital raising may not be so difficult to come by given the boost to Aquarius Plats earlier in the week sending the share price over 100% higher in a week. Could this be the inevitable bottom investors have been looking for???
Given the high levels of volatility we've seen lately I decided to write an insightful article on the different types of volatility that is experienced during phases of the market and which are the useful ones to trade in. I find that traders often get caught in the wrong volatility and end up damaging their trading capital and mental state in the process.
Friday 9th October 2015
Samurai Summary: 09/10/2015
Top Tweets Today:09/10/2015
The Fed Minutes of the Meeting were released on Thursday sending markets into a ramping an already great offensive play against the bears into overdrive to help secure the all important 2000 on the S&P 500 and 17 000 on the Dow Jones Industrial Average. Although much of what was released was known after Janet Yellen had given her press conference, the market bulls find the news extra hot to help lift prices higher. When Yellen spoke she warned of the impeding headwinds being felt by external factors such as China and weaker commodities which tipped the scales at the time. But the prospects of lower rates for longer helped fix addicted market participants from their unhealthy habit.
I also found a great article by Adam Grimes on the idea of trading full time from the comfort of your home an interesting thought to ponder about. Grimes did stress the point that a lot more thought is required than merely setting up shop and operating with hiccups such as trading inconsistent profits creating an erratic income flow that could unsettle any savvy trader and most likely cause them to quit their endeavour. It's a path I consider pursuing myself so it's imperative to lay out a good understanding of what is needed for when the time arises.
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