News of the FDA approval of the Pfizer-BioNTech vaccine has seen global equity markets rally at the start of the week. This rebound follows strong selling pressure and near oversold conditions seen throughout last week as market participants considered potential tapering by the US Federal Reserve and anticipated news-flow out of the Jackson Hole event taking place this week. As we noted in Monday’s note, the US Dollar would possibly consolidate or moderately retrace, which was seen throughout Monday’s session, followed by a tight consolidation on Tuesday. In SA, the national unemployment rate edged higher to 34%, from 32% – now the highest in the world. US Equities traded higher, with small caps leading the way to close +0.97%. Brazil’s Bovespa was hgher by 2.33% while Canada’s TSX added 0.34%. The Rand held steady, range-bound for much of the day. This morning the currency trades at R15.04. Asian equities are fluctuating between gains and losses. Gold is lower to below $1800 while the US Dollar Index is stable as it trades back above the 93.00 level.
Corporate News: After yesterday’s close, Dischem out witha trading update and an announcement regarding the founders looking sell a portion of their holdings by way of an accelerated book-build.
S&P 500 Futures: Failure to hold the 4477/4479 level would possibly signal short term momentum being lost. These new highs on the S&P 500 are not being accompanied higher highs on the 14-day RSI, suggesting a slowdown of momentum. Note, yesterday’s session saw the development of a ‘doji’ candle, possibly reflecting indecision.
US Dollar/ South African Rand (USDZAR) The currency is currently re-testing and holding the horizontal breakout level seen on Thursday, 19-August. Note the pair is nearing the development of a ‘golden cross’ where the 50-day SMA crosses above the 200-day SMA.
Impala Platinum (IMP): Re-testing the breakdown level seen on Thursday, 19-August at between R227-R230. Note, the price has also lost it’s 200-day simple moving average.
Mondi Plc (MNP). The share has exceeded our target range (R423, from R397) however continues to trend and trade strongly. For new buyers, a print closer to the breakout level near 39800c-40200c may be a level to enter. This is currently in line with the rising 50-day SMA.
Spar Group (SPP) – The share is trading substantially higher versus our buy/long level of 17684c however nearing short term resistance levels, that being the swing highs of Feb-2021 and Nov-2020. This isn’t a great level for fresh short term long entries. Possibly, NEARING a retracement before the next leg higher.
Standard Bank: Possible pause around these levels however I am also monitoring the 156-158 zone as potentially stronger resistance.
Stryker Corp (SYK): A name we highlighted last week, and published during last night’s US trading session. Below is the link:
Intellia Therapeutics (NTLA): A name I published during last night’s US trading session: below is the link to the idea:
Under Armour (UA) – I’m monitoring the name for the $20.55 level to turn to support, adding above $22.00
Live Nation Entertainment: Pent-up demand for entertainment and vaccines being approved? LVY is setting up well for a potential swing long on a potential re-test of the breakout level i the early $80s.
The group is an American global entertainment company, founded in 2010, following the merger of Live Nation and Ticketmaster. The company promotes, operates, and manages ticket sales for live entertainment in the United States and internationally.
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