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Markets related to the JSE.

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logotino
Contributor
Hi, just a random question. Which markets does the JSE usually move with?
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19 REPLIES 19
Super Contributor
The answer is very complicated....At times it answers to no other market,such as a boom on resources would drag the market up.This has not happened for about five years....Our main trading partners are in Europe,but many products are quoted in US Dollars...If the Dollar weakens against the Euro ,usually the Dollar price of shares increases and in its wake the Rand and our shares climb.The opposite occurs if the Dollar strenghtens against the Euro their and our shares fall....At times there is no pattern,but usually those periods are short.
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Super Contributor
Mainly the FTSE until the US opens. Then we both follow them. Not always the case, but most 80% + of the time. Deviations are usually created by volatility in the R/$ exchange rate and poor or very good economic data from SA.
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Super Contributor
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logotino
Contributor
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Not applicable
Im just taking a guess here, but if you thinking of trading from it dont bother, if you trade the ALSI then only watch the ALSI.
If you have a specific strategy (like an arbitrage or correlation movement) and the other markets are part of your strategy only then watch it, but overall knowing some traders that have tried trading using both markets go bust I can highly recommend this:

If its not part of your strategy ignore it. Ignore other markets, ignore the R/$, just trade the price you see.
Just because FTSE is breaking up doesnt mean we break up, sometimes it does, sometimes it doesnt.
Just my 2cents
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Valued Contributor
I agree with BC, don't bother .. but last time I check the only market even slightly closely correlated to ours was the FTSE100 on the 15 minute chart
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Regular Contributor
and of course, the best days to go long is when there are bank holidays in Europe and US, then we have no barometers and we do our own thing, and usually its good to be long. but do look at our own news like the day of the Marikana shootings and our own economic data
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Super Contributor
er, agree with all the comments but with regards to longer time frames, but if you follow 15 minute chart on ALSI,and monitor DOW/S&P/or FTSE, the move is matched tick for tick...we could be down and they could be up, but every move on the 15 minute is matched by the moves on the overseas indice which is most active at the time...but it does not give you an edge, becos the moves are closely matched ...
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Super Contributor
eerr.. and this morning?
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Super Contributor
eeer, dont know, stopped looking
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Super Contributor
but i just look now...yes, ALSI going down on this 15 min candle, and yes FTSE going down on this 15 min candle, an yes they both red...
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Super Contributor
oops, meant to say and they both NOT red, but both went down ...
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Super Contributor
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Super Contributor
and they both green now...and one up 0.44 and the other 0.41%
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Highlighted
Super Contributor
ftse straight line up, while we flat, rather assume 0 correlation imo....
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Super Contributor
agree,yes, as i said, we could be down or flat and they up, but real-time "tick" correlation at this moment in time for this 15 minute candle...99.99%. Anyway, I stopped looking becos its useles information...
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Cedric_1
Contributor
I'm in 2 minds on this. I use CFR as a banker stock which has been sideways since August on the JSE, but if you check webtrader it has already pulled back under its 200dma which could be a signal to re-enter
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Cedric_1
Contributor
Correction to my rubbish of yesterday. I jumped the gun. I have just lost 6% in 4 days using info from foreign market to deal on the JSE. Hopefully being CFR I will not loose out in the longer term. Lesson learnt and i will stay with stats in the market I am trading in in future.Interesting signals though.
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Super Contributor
Also depends on interpretation of the info...buy when the price pulls up through the 200 and not when it pulls back under 200....and the by looking at the local and foreign indices chart, agreed, it does not give you an edge.
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