Trump does it again .... Naspers decision? .... FrontRunner

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Derek  23 Mar 2018

Morning,

International:
All stocks plunge as Trump's trade war heats up. Although this news accelerate the plunge, technically the markets were overheated.

Look where FronRunner broke down for the S&P500. FrontRunner broke down 8 days ago and the trend line was broken 4 days ago.



I warned about Bank of America yesterday. When a share cannot break a resistance and you have divergence in place, time to take profit. Notice that the trend line is also broken with the -4.14% correction.



JSE Technical:
I am not entirely convinced that it was the decision of Naspers to sell 2.3% of its shares in Tencent that caused the correction in Naspers. Of course it accelerated it. I also mentioned yesterday that Tencent was struggling against resistance. Do notice where FrontRunner broke down against resistance for Naspers .... 6 days before the announcement!



I was asked yesterday about British American Tobacco. Notice how it could not break top resistance with divergence of FrontRunner in place. Then the downward momentum started and the Trend Factor changed from yellow to red too. Now bottom support is also broken and we have moved into a dark red Trend Factor. With such a negative trend, all cyclic signals get ignored until a trend line or EMA8 line at least get broken. I would prefer to see a rising bottom before I will look at this share again. Currently we have dropping tops.



FrontRunner Breaks:
FrontRunner breaks are not always accurate, but when it happens against resistance or on support, one should take notice.
Divergence of FrontRunner, on the other hand is very accurate, my guess is about 98%.

Moody's decision on our downgrading will most probably only come after the JSE closes.

Do not get too depressed with all the negative news .... what comes down will give good opportunities in the future again?

You must have a great weekend.
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