Active Trading Plan - Friday, 01 November 2024

Lester Davids
Nov 1, 2024
3 min read

Yesterday (Thursday) I published research on US 10-YEAR BOND YIELDS, NASPERS, BID CORP, SAPPI, JSE SECTOR RATINGS, ASML, JSE TOP 40 INDEX, GOLD FIELDS (AND MORE). In case you may have missed it, you can read it here: https://unum.capital/blog/

Unum Research Attains 3rd Place In The 2024 Securities Broker Awards.

COVERAGE:

JSE Top 40 Index
JSE Market Breadth
U.S. Market Breadth
Northam Platinum
FirstRand Ltd
Tiger Brands
Sanlam Ltd
Anheuser-Busch Inbev
[Global Idea] BP Plc (LSE)
[Global Idea Update] Entergy Corp - Target Reached +22%
[Global Idea Update] Newmont Corp +10%, Then Stop-Loss Breached
[Global Idea Update] Carvana Co - Target Exceeded +64%
[Global Idea Update] NuScale Corp - Target Exceeded +83%
Most Overbought/Oversold
Strongest/Weakest Open To Close

Today's Event Risk: U.S Non-Farm Payrolls

JSE Top 40 | Massive downside follow-through from the bear flag structure discussed in Monday's pre-market report. The chart below is as of yesterday's close.

The extract below (Top 40 chart and text) is from Monday's report 'The Sum of the Charts'. To access the full report, you need to be a client of Unum Capital.

JSE Market Breadth: Broad-Based Weakness (data as of yesterday's close).

U.S. Market Breadth - big sell-off in the U.S last night - confirmation of what I discussed last week, which I also re-iterated in my report on Monday.

Northam Platinum (NPH) | Unwinding from overbought / broke the 8-day EMA / the 21-day EMA is vulnerable to a break therefore the 50-day EMA is in focus as a next best provisional support or re-entry buy range for an ultra short term rebound.

Firstrand (FSR) | Broke the 21-week EMA / 50-week ema + 200-day SMA in focus as a next best provisional support or re-entry buy range for an ultra short term rebound.

Tiger Brands (TBS) | Vulnerable to breaking the 50-day EMA to the downside. The 21-week EMA is a next best provisional support or re-entry buy range for an ultra short term rebound. Previously, I published a note, highlighting an opportunity at 19850c (it traded as high as R249).

Sanlam (SLM) | Outside bar + vulnerable to a downside break of the 8/21-day EMA. Several attempts to clear r90 is failing. Also slightly extended vs the 50-week EMA at current levels (possible mean reversion?)

Anheuser-Busch Inbev (ANH) - These are the price action probabilities for the according to the model. Know your time horizon.

[Global Idea] BP Plc (LSE) - Yesterday morning, before the London Stock Exchange opened for trade, I once again ran more screens looking for global opportunities. BP plc was one of several names, with the model reading as follows:

Yesterday, the share closed higher by 70bps, which is basically flat, however, do keep this on your radar on the buy/long side.

[Global Idea Update] Entergy Corp - Target Reached +22%

[Global Idea: Newmont Corp] - Stop-loss Breached. A good start to the idea (+10%) however, earnings was the catalyst for sharp sell-off later.

[Global Idea: Carvana Co] - Target Exceeded - Suggested Entry at $152.90. Target was 40% higher at $215. Yesterday, the share reached a high of $251 which was 20% higher for the session. In total, the price advanced by 64% over the 6 weeks since the idea was published.