What a rollercoaster it has been for the JSE ALSI 40. We’ve had a downward spiral in the first two weeks. In fact, we saw the ALSI 40 drop from 70,508 down to 65,300. That is a 7.3% crash to start the new year.
We can almost think of it like the market’s New Year’s hangover.
But then, we had the sudden uptick last week. And rise it did! The JSE ALSI 40 turned around and headed back to over 68,000.
And it looks like this is just the start. I believe the next target for the ALSI 40 will be 75,000 from here. Here’s why…
How US Markets green effect is affecting the JSE ALSI 40
The US markets, including the S&P 500 and Nasdaq 100, hit all-time highs last week.
And this was all due to big techs stellar performance.
Names like RTX Industries (+5.3%), Procter & Gamble (+4,1%), and Verizon (6.7%) were the stars of the show.
We also had, Netflix, with an insane 8.6% jump in after-hours trade, thanks to soaring subscriber numbers.
And as you know, the JSE ALSI 40 tends to follow America’s sentiment.
Next let’s head over to Asia…
The Alibaba Effect
We saw Alibaba’s stock rise by over 4.2% after reports of founder and CEO, Jack Ma increased his stake.
We need to remember Alibaba’s core business is in technology and e-commerce. So, when a giant like Alibaba jumps, this can lead to a domino effect in other related sectors.
And this is a major confidence booster for the global market. And this helps with the confidence and shines a spotlight on emerging markets like South Africa.
Huge mineral demand in South Africa in 2024 and beyond
Did you know? South Africa is sitting on a goldmine (quite literally) of unexplored and abandoned mines. And this is creating growing demand for critical minerals. We are now seeing resource companies start to raise capital and delve into this treasure trove.
This is more than just mining; it’s about reawakening the South African public markets.
And that’s why we saw a rally in resources last week from Anglo American, BHP Billiton, Exxaro and even Kumba Iron Ore.
The JSE ALSI 40 is on track to 75,000 – Here’s why!
We’re looking at the daily chart of the JSE ALSI 40.
We can see since November 2022, it’s been in a range between a high of 75,000 and a low of 63,000.
Now each time it bounces on one of those two levels, it turns around and heads up or down.
Well, we can see since November, it bounced on the low and headed up. That was until 31 December 2023. Since then, it’s come back down.
But I was waiting for a bounce. And bounce it did.
In fact, the price came back to 65,000 and made a higher low. And since then, the buyers have gone crazy!
Now if this momentum continues – we will see the market carry on rocketing.
And the next target will be 75,000 yet again.
Here’s how I’ll profit from the 10.20% rally
First, I’ll buy the JSE ALMI 40 CFD and hold it until it hits my target, where I’ll bank a profit.
Second, I see a string of potential stocks to buy with the rally which we can all profit from in 2024. I’m talking about top 40 companies listed on the JSE like Anglo American, Nedbank, Anheuser Busch InBev to name a few.
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