for those that believe this is a retracement, I am interested to hear what everyone's favourite long setups are. mine are Kumba, Naspers, Aspen and one of the banks - either absa, stb or investec. I am not so sure about old mutual, bit of a bombshell in the newspapers lateley
Setting up longs for ASA, SBK, NPN. Got out of nice a long with KIO Don't know what to do with OML, had it since the price was single figures, thinking of exiting, or waiting till about Feb. Thinking about HAR.
Well I like to trade TOPI as I have had bad surprises with individual shares. It seems that Chart Advisor is supporting the bulls. It says:Stepping back, the pattern that has emerged over the past two weeks is a sideways consolidation of the strong rally that began in July. While sellers are clearly becoming more aggressive, the fact that the markets have not given up much of the rally is impressive. Currently all the major indexes remain in uptrends with rising 20- and 50-day moving averages. Even the 200-day moving average is starting to pick back up. While there are no guarantees that the markets will continue to trek higher, the benefit of the doubt needs to be given to the bulls. Shorting this market continues to be a risky endeavor and will probably remain so until the markets start setting lower highs and lower lows.
I am trading the TOPI through the knockout warrants,as i find that respond better than the ordinary warrants as there more traders and the bank keeps the figures up to date and there is no time decay to speak of! Don't know if its becuse they are promoting these new deivitives or that they are just more efficient!....For the first time in a long time i actualy made a profit with a PUT that was TOPSBP,bought on friday afternoon and sold this morning at 7 cents gain.Sold way too soon as they went up 13 cents today.Its a learning curve,next time i hope won't be so hasty to exit!
ja Barry, the trick with the TOPI warrants is to weigh up the risk reward ratio. The knockouts move at around 1c / 60 pts - and they start with a 2c spread so your breakeven is a 120pt move on the index. Now take your stoploss on top of that. ATR on the TOPI is around 450pts so it is extremely difficult to get a decent return on a single day. Warrant trading on the TOPI needs to have a 1-2 week horizon minimum - because the average true range per week is around 1150 pts - much easier to beat the spread