Markets busy with big correction .... Now is the time .... Capitec

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Derek  5 Feb 2018

Morning,
Markets are busy with big corrections and all indices are moving negatively. The Bears are in full control. The Dow lost -5.2% last week and the JSE -6%. Individual shares have lost much more. Now is the time to start drawing your negative trend lines and wait for the turn. Several bargains can be found when this move has exhausted itself. This is the markets way to get rid of investors.

International:
The East is following the US lower this morning.

The DOW broke the EMA8 and trend line. Notice the divergence of FrontRunner before the correction. When the gap came to start the correction, I was out like a flash.



Coca-Cola has broken first support .... this is very negatively. Notice the negative trend line I have already drawn. We will keep following this share to see how a turn develops. Can you identify the divergence with FrontRunner before the correction? I did not mark it. But it is essential to learn divergence for major turns.



Lets show Caterpillar too. Double top with divergence, trend line and EMA8 broken. This sequence works every time and similar for a turn at the bottom.



JSE Technical:
I have been hearing from many people that the loans of Capitec is not the same as African Bank? Then I heard on the radio that the short term loans of Capitec has been changed to long term loans by lending more money to the people to pay off the short term loans. Now the poorest of people has long term loans to pay instead of the short term loans? Decide for yourself if that strategy makes Capitec more stable???? I get shivers ....

Capitec managed to climb back to close on the EMA8 line on Friday. Notice the trend line of FrontRunner. I am staying well clear of this share till all uncertainty is out of the way. The fall of Capitec is also influencing its big stake holder PSG.



I must show the double top and divergence of Shoprite!



If you managed to sell at the top, draw those trend lines for good oppertunities. If you did not, it is painful to wait for the turn.

Most funds told that they only lost 1% with Steinhoff (which I do not believe), then Investec said 3% (more realistice) and finally OldMutual said that some funds lost more than 7% .... I finally believe! What did your funds tell you?

Enjoy your day.
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