Technically the XJO is still trading inside of a pennant pattern looking for a direction. With the futures up we should see the 6,606 resistance level break and a possible test of the downtrend line and resistance at around 6,700-6,750 in the coming week. Otherwise to the downside, support is at around 6,500. Our short term indicators are looking a little oversold.
CYBG Plc (CYB) was up +9.4%, on investor optimism regarding Brexit deal after the U.K. and the EU moved closer to an agreement on the terms of Brexit following a positive meeting between the British and Irish leaders. Viva Energy Group Ltd (VEA)was up +4.8%, following the news that the Australian Competition and Consumer Commission won’t oppose VEA’s proposed acquisition of the remaining 50% interest in Liberty Oil Holding’s wholesale business. Western Areas Ltd (WSA) was down -2.5%, after a broker downgraded the stock to Neutral from Overweight.
US markets rose after the US and China agreed on a mini deal. The Dow closed 319.92 points higher (1.21%) and the S&P 500 was up 32.14 points (1.09%). European markets and Asian markets were higher as well.
US markets gapped higher on Friday after Trump confirms a part deal that avoids the October tariffs and sees China commit to buying agricultural products from the United States. The U.S. said China would purchase American agricultural products worth $40 billion to $50 billion, up to 50%-90% from the previous record marked in 2012. Currency policy also made part of the phase one deal; China proposed to raise the transparency of its currency policy in exchange for the U.S. to consider removing Beijing from its list of currency manipulators. So this really just gave both the US and China more time to work on the broader issues, giving the market hopes they can come to a deal with no further escalations.
Technically, the S&P 500 broke the short-term downtrend line, but the day’s trade struggled to hold the high indicating that the buying might be short-lived. If the index rises from here, there is some resistance at 3,000 – if that breaks, the index could rise back to the all-time highs around 3,020-3,040. If the index continues to fall from here, it could be expected to head back to the support at the recent low of 2,900 – 2,850. If 2,850 breaks, the next level is around 2,820 – and if that goes, we could be in for some serious falls.
XJO Implied Volatility fell -6.10% and closed at 14.38. The US volatility closed at 16.07%.
Crude continued jumper higher also.
Gold fell back below the $1,500 USD support/resistance level.
Iron ore continues to edge higher with optimism around trade.
The Aussie dollar rose against the US.
Today’s trading; In China, data on trade balance, imports and exports is to be released.
Miners and energy should enjoy a move higher today as Oil and Copper continue to rise on hopes of de-escalation around U.S. and China Trade. This could be offset slightly by the dollar if it keeps rising this week. Also, China has come out to say that they want a more substantial deal to remove all the tariffs. US reporting kicks off this week, with some local companies reporting production. NAB, WBC MQG and ANZ all report late this month early next month.
|OMC.N||Omnicom Group Inc||14/10/2019|
|WFC.N||Wells Fargo & Co||15/10/2019|
|SCHW.N||Charles Schwab Corp||15/10/2019|
|FRC.N||First Republic Bank||15/10/2019|
|GS.N||Goldman Sachs Group Inc||15/10/2019|
|JNJ.N||Johnson & Johnson||15/10/2019|
|JPM.N||JPMorgan Chase & Co||15/10/2019|
|UNH.N||UnitedHealth Group Inc||15/10/2019|
|JBHT.OQ||J B Hunt Transport Services Inc||16/10/2019|
|UAL.OQ||United Airlines Holdings Inc||16/10/2019|
|BAC.N||Bank of America Corp||16/10/2019|
|BK.N||Bank of New York Mellon Corp||16/10/2019|
|PNC.N||PNC Financial Services Group Inc||16/10/2019|
|CCI.N||Crown Castle International Corp||17/10/2019|
|IBM.N||International Business Machines Corp||17/10/2019|
|KMI.N||Kinder Morgan Inc||17/10/2019|
|SLG.N||SL Green Realty Corp||17/10/2019|
|URI.N||United Rentals Inc||17/10/2019|
|GPC.N||Genuine Parts Co||17/10/2019|
|HON.N||Honeywell International Inc||17/10/2019|
|MTB.N||M&T Bank Corp||17/10/2019|
|PM.N||Philip Morris International Inc||17/10/2019|
|PPG.N||PPG Industries Inc||17/10/2019|
|STI.N||SunTrust Banks Inc||17/10/2019|
|UNP.N||Union Pacific Corp||17/10/2019|
|ETFC.OQ||E*TRADE Financial Corp||18/10/2019|
|ISRG.OQ||Intuitive Surgical Inc||18/10/2019|
|PBCT.OQ||People’s United Financial Inc||18/10/2019|
|AXP.N||American Express Co||18/10/2019|
|CFG.N||Citizens Financial Group Inc||18/10/2019|
|KSU.N||Kansas City Southern||18/10/2019|
|STT.N||State Street Corp||18/10/2019|