US Banks Fall On Lower Revenue Numbers

Posted on | by Todd | Leave a Comment on US Banks Fall On Lower Revenue Numbers

Despite beating top line quarterly expectations, shares in US banking giants JP Morgan and Citigroup both fell on Wall Street as trading revenue numbers showed a sharp decline on a year-on-year basis.

Citigroup shares closed 3.4% lower after their trading revenue dropped 16% and JP Morgan shares slipped 1% lower on a 27% fall in year-over-year revenue.

We expect the other major US banks to report the same fall in trading revenue as lower volumes on the NYSE, combined with historically low price volatility, reduces overall market participation.

The next key levels of support are $67.50 for Citigroup and $91.70 for JP Morgan.

Citigroup

JP Morgan

 

Gold Trades Higher After Golden Week

Posted on | by Todd | Leave a Comment on Gold Trades Higher After Golden Week

A few weeks ago, we posted a report outlining the correlation between the Chinese Golden week holiday and the price of spot Gold.

Over the last four years, the price of Gold has dropped into, and during, Golden Week and then traded higher once the Chinese markets came back online.

As the chart below illustrates, spot Gold posted a low of $1262.00 last Friday and has since lifted by over $30.00.

We continue to look for Gold to trade higher into the end of the year and re-test the the $1350.00 level.

As such, we like long positions in NCM, EVN and SAR. 

Spot Gold

 

Newcrest Mining

Evolution

Saracen

Limited Upside In Woolies

Posted on | by Todd | Leave a Comment on Limited Upside In Woolies

Shares of WOW traded down to $24.40 last Tuesday; nearly reaching the key support level of $24.20 noted in our October 5th blog.

Prices have bounced since then as wholesale food reports show that deflation is returning to the fruit and vegtable market.

Last week’s report showed a -2.3% price growth, which improves the margins on WOW’s private label brands, as well, as fresh produce.

We see the next level of price resistance in the $25.60 area and consider WOW reasonable buy/write opportunity at current levels.

Woolworths

 

 

ALGO UPDATE: AMP Is Approaching Resistance

Posted on | by Todd | Leave a Comment on ALGO UPDATE: AMP Is Approaching Resistance

One of Australia’s largest money managers, AMP, has caved in on the pressure from index and computerized trading and has dropped their fees, and is looking to sack most of their active equity managers. 

The bulk of the $29 billion in funds the firm now manages will be rolled into lower-cost strategies including existing quantitative funds within AMP Capital. 

Our ALGO engine triggered a buy signal for AMP at $4.80 on August 21st.

We see key chart resistance in the $5.25 area and would look to exit long positions at, or near, that level.

AMP