A New Dawn
November 3rd, 2008 by Antony Ganzitti
Closing Data
| current | change | % | |
|---|---|---|---|
| Dow Jones | 9325.01 | 144.32 | 1.6% |
| NASDAQ | 1720.95 | 22.43 | 1.3% |
| S P 500 | 968.75 | 14.66 | 1.5% |
| FTSE 100 | 4377.34 | 85.69 | 2.0% |
| Nikkei 225 | 8576.98 | -452.78 | -5.0% |
| SPI Futures | 4086 | 50 | 1.2% |
| All Ords | 3,982.70 | 25.4 | 0.6% |
| Oil | 68.1 | 2.28 | 3.5% |
| Gold | 718.2 | -20.3 | -2.7% |
| Silver | 9.73 | -0.055 | -0.6% |
| Aluminium | 1970.5 | -65.5 | -3.2% |
| Copper | 3995 | -502 | -11.2% |
| Lead | 1469 | -51.5 | -3.4% |
| Nickel | 11305 | -1320 | -10.5% |
| Tin | 13860 | -840 | -5.7% |
| Zinc | 1091 | -75 | -6.4% |
Today, starts a new dawn and a new month of trading, it’s time to look ahead.
A big week for the US as it turns its attention to the Presidential election on Tuesday, with Democrat Barack Obama holding a 7% point lead over Republican John McCain. The main economic event on the calendar this week is the October US employment report due out on Friday, with expectations that US non-farm payrolls shed 200,000 jobs in October. The unemployment rate is forecast to rise to 6.3%. Other reports include the Institute for Supply Management reports on manufacturing on Monday, and the service sector on Wednesday. 59% of S&P500 companies have already reported earnings in the 3rd quarter.
Locally all eyes will be on the Melbourne Cup tomorrow, the race that stops a nation. But just before that financial commentators will be glued to their screens as the RBA makes its interest rate decision. Today will see ANZ job advertisements data, house price indices, and retail trade trends, for the month of September.
Britain’s Sunday Times newspaper also reported that European regulators could threaten to stop the proposed takeover of Rio Tinto by BHP Billiton because of the dominance the pair have over the world’s iron ore supply. The report said the warning will come in a long-awaited "statement of objections" from Brussels, which will be crucial in deciding whether the second-largest corporate takeover ever can go ahead.
Technically speaking we have seen our first signs of some bullish price action in quite some time on our local index. The XJO/ASX200 index below shows how the last four trading days have proven to be quite positive. Thursday’s candle in particular deserves some closer attention as it counter-acted the previous session’s rejection bar. As long as the low of 3868 is held on a closing basis, it would not surprise to see gradual positive momentum during November.
Below are some stocks which have started to display some bullish price action activity on their daily charts. Remember though, as with all trading, RISK MANAGEMENT is essential, so a stop loss placed below the recent swing lows is definitely in order.
ASL – Ausdrill, bullish wedge formation, 2 exhaustion bars on daily chart
AXA – inside bar signal
BXB – Brambles, tight consolidation
CSR – support off the $2 level
FCL – Futuris, support off $1
GNS – Gunns, bullish through $1.20
TIM – Timbercorp, bullish weekly signal thru $0.55
TSE – Transfield, weekly pin bar, daily 2 bar reversal
There are a number of other stocks which have started displaying early signs of positive price action. Do yourselves a favour and take a look over your charts, it may very well prove financially rewarding.
And don’t forget that if your options expired last week, you need to be proactive and look to sell some further premium for the month of November.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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