One tradition I like to keep to when it comes to trading the markets, is buying the Santa Claus rally in South Africa.
Each year, I write to you about it and it most times, ends up being extremely profitable.
But this year, I thought it was going to be different.
I started to feel doubt and pessimism with the whole COVID-19 pandemic destroying the economies one by one.
And this yea... ››› more
Q. Timon is the Average Directional Index indicator a good one for determining the trend for the JSE All Share Index? What are your thoughts?
A. You know Mark, I wish I got more questions with regards to indicators…
I know I am a breakout trader by profession, but I love to analyse using other indicators when looking at the charts.
Before we do the analysis, I need to let my readers ... ››› more
Q. “Hi Timon, I've recently joined Red Hot Storm Trader after following you for the last couple of years. I now feel almost ready to take action with my trading. Do you have a set bunch of questions you answer before you take a trade?”
A. Before I take a trade, I ask and answer the same seven questions each time…
1. Has a trade lined up according to my strategy?
... ››› more
Last week I mentioned that the worst was finally over for America and that I expected the Dow Jones to hit new all-time highs.
This was based on three things…
• The boost in confidence as the economy was starting to re-open.
• Two bio-tech companies announced the progress of future vaccines for the coronavirus.
• The federal reserve to inject $600 billion for SME (Small-Medium En... ››› more
In the last few weeks, we've finally seen good news come out for South Africa.
I don't want to go into too much detail, but I'll highlight a few of the main points including:
• More businesses and economic activity has started to resume since moving from Level-5 of the lockdown down to Level-4.
• The government has told South Africa that there will be no more load-shedding from Es... ››› more
March 2020, will be known as one of the most brutal months that the JSE and the equity markets have ever seen.
On 12 March, the index fell 9.51% and a further 11.98% on 16 March - two of the biggest daily drops since the 2008 Financial Crash.
CEO - JSE, Leila Fourie, said in an interview about the value drop and trade volumes:
“Over the past few weeks on average we've been processing... ››› more
On 3 February 2020, I sent out an article:
WARNING: The deadliest threat to the JSE
At the time the JSE All Share Index was trading at 55,000…
I predicted that the index would drop to 50,405 in a couple of weeks…
________________________________________
Did you miss ANOTHER triple-digit gain this last week?
Those canny Pickpocket Traders didn’t - thi... ››› more
What a cold and depressing winter it has been… For the JSE that is.
Since Steinhoff's debacle, we've seen some of the largest companies on the JSE crash 30% to over 89%, which I'll explain in just a minute.
And there are no signs yet for recovery until the end of 2019.
In today's article we'll cover the Ugly and the Bad for the JSE and a little bit of Good on how we can profit during... ››› more
“Timon I don't know how you do it, but thank you for that 29% gain in one day. I took the JSE ALSI CFD trade last week with Red Hot Storm Trader. But I have to ask you, how did you know the ALSI was going to just shoot up like that?”
There are two green flags that told me the ALSI was going to go up.
Two green flags which signalled a buy on the ALSI
Gre... ››› more
If you ask any trader how trading is going on the JSE, you'll hear the same thing.
“It's damn difficult.”
Or
“The JSE can't decide on direction”
So whether you buy or sell, chances are you've got it wrong!
But if you know how to read a ‘Blue Diamond', you would know how to profit in this environment.
Let me show you what I mean…
I’m pr... ››› more
I've been waiting for this for three years!
If you go look at the JSE All Share Top 40 Index, you'll see it's been going nowhere.
But us traders have been watching a very powerful indicator. This indicator shows us that momentum on the Index is picking up.
And finally, the buy signal has confirmed!
The JSE-ALSI has been lining up for a strong rally. In fact, I expect the JSE-ALSI will ... ››› more
Every morning when I am about to start trading the financial markets, I have a pre-trading routine checklist I follow before I take a trade.
It's become a consistent trading routine I've followed for the last 14 years.
This is a checklist you'll simply follow as a professional trader, before you take your first trade.
It's worked for me and maybe it will work for you too.
Here it is... ››› more
US interest rates on the rise.
Fed Chair Janet Yellen provided testimony last week indicating a high likelihood of another US interest rate hike in March. The markets are now pricing in a 0,25% hike. The US dollar is strengthening again.
Local markets were flat over the week. The All Share squeezed out a gain of 0,1%, Resources were similar and Industrials down marginally (0,5%), Fin... ››› more
The stock market never fails to impress me.
One day you can feel confident about your chosen investments for your medium to long term portfolio. And the next, you need to make a very big decision whether to buy more or sell the stock for a large loss.
Well, today I want to show you how you shouldn't be fooled by the comfort of top blue stocks.
They can turn sour very quickly.
Investors ... ››› more
Last week, we heard that Volkswagen admitted that up to 11 million vehicles, could be misreporting their true emission levels.
Investors and companies took this news quite badly. In fact, Volkswagen shares dropped almost 30% last week. Not only that but, the former Volkswagen CEO Martin Winterkorn stepped down and took responsibility for the German carmakers rigging of the US emissions tests.
... ››› more
Last week I was fooled. The JSE told me that upside was in order, and I thought it was about time. But once again, it just roped me in before it took a tumble.
When I went to my charts to analyze the JSE, I saw a frightening pattern.
The black diamond!
Sometimes a technical diamond is the perfect sign for a market recovery.
And sometimes, the diamond is as black as soot, and predicts ... ››› more
Dear female reader,
Men will probably hate me for this, but someone needs to say it.
There are two problems that many men have when trading.
Testosterone and ego.
Men don't like the idea of being wrong and they generally like to take big risks when it comes to trading and with life in general.
But with you ladies, you know when to say no, when to ask for directions and how to stick ... ››› more
Last week Monday 18 May 2015, I surprised many of our Trading Tips readers.
I told you in the article “Resources are finally ready to rally after nine months of downside”, that you can expect huge upside to come.
I took quite a lot of criticism as well…
“Timon with all negativity in the market with, Eskom moving to stage 2 load shedding, E-tolls about to become compulsory to pay a... ››› more
There are mixed feelings in South Africa. On the one hand, we continue to have Eskom shedding its load all over us or banks continue to be downgraded.
And on the other hand, we have a new DA leader (Mmusi Aloysias Maimane) taking over the reins of the DA, which could be South Africa's saving grace.
When you look at the charts, you can see that the mixed news is already priced in. It's pric... ››› more
The headline speaks for itself… So I'm not going to bore you and complain about the ongoing problems affecting you, me and the entire economy!
You see, the great thing is that, the JSE stock market is oblivious to what's actually happening to our economy.
While things are going haywire in South Africa, the stock market is still on its way up. And so, I have a fantastic profit opportunity ... ››› more
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