Truce rally lasted 24 hours .... Sasol & FrontRunner prediction

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Derek  5 Dec 2018

Good Morning,

The TradeWar-Truce rally only lasted 24 hours! Did I not ask the question if we can trust Trump? As the truce discussions faded, the US market took a plunge and took Asia with it down this morning. The only thing I can say for certainty is to expect a lot of volatility the next 3 months.

The plunge of the S&P500 closed just above my firts support.

The share that plunged the most is the one that gained the most the previous day: Advanced Micro Divices. Notice that the open window (gap) is now closed, confirming an exhaustion gap.

Similar for Boeing.

JSE Technical:
The question was raised if SASOL is going to make a new low because FrontRunner dipped below its oversold lines. This is usually a 99% accurate prediction. ABSOLUTELY .... but it already did so! Lets take you through the sequences:

1 FrontRunner dips below the oversold green lines predicting a new low is coming.
2 It makes the new low, but this time FrontRunner is not making a new low and gives diversion to confirm that the low has been reached.
3 We are starting to get rising bottoms. If the long term trend line also gets broken, we are moving into a bull phase.

After bouncing from support, the Satrix 40 is slowly moving towards the 50 day moving average again. (Dark Blue line) This line acted as resistance in the past as shown on the chart. Notice the red Trend Factor confirming the poor performance of the JSE.

They are warning you against rogue advisers who play on your fears in the US!

Enjoy your day.
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