PDSNET ARTICLES

Overbought Oversold

Technical analysis or charting is the study of group investor behaviour. The patterns which exist in charts are derived from the behavioural characteristics of investors acting as a group. For example, the moving average technique exploits the fact that people have difficulty in adjusting their perceptions of value – quickly (If you

US Economy

There has been a debate among international investors about whether the US economy will move into recession as a result of rising interest rates being applied by the Federal Reserve Bank (“the Fed”) to control inflation. The last time that the inflation in America reached these levels was in 1981 and then the Chairman of the Fed, Paul Volcker,

Overview of the Market

The Rand

South Africans will have been watching the steady decline in the rand to below R17 to the US dollar with resignation and some despair. It seems as if our currency is always losing ground, making it more and more expensive to travel overseas while increasing local inflation and especially the price of petrol.

The

Tesla

By opening an Easy Equities account, South African investors can apparently buy shares in Elon Musk’s disruptive American electric vehicle (EV) company, Tesla (TSLA).

As we have made clear in these articles, the world’s share markets are firmly in a bear trend which we think will persist for some time. Despite this, it

JSE Overall Index versus S&P 500 Index

The comparative relative strength index (CRSI) is a very useful indicator. It simply divides one data stream in your software by another and then draws a chart of the result. This enables you to compare the growth in the two data streams against each other graphically. 

Consider the chart:
 

The Anatomy of the Bear

As the bear market unfolds on Wall Street you either hold shares or you are sitting in cash. For those who are holding shares, as we have said consistently, you need to watch your stop-loss levels very closely because you are operating in a market where the odds are decidedly against you.

For those in cash, your position is

Bear Trend

We never regarded the COVID-19 fall of the S&P500 in March 2020 as a bear trend. In our view it was always a technical aberration caused by the “black swan” event of the pandemic. It caused a temporary downward spike which lasted from February to August 2020, but it was never a true bear market.

Then on Monday

Uncharted Territory

The world has entered a turbulent time, the outcome of which will largely determine the future order of things. There are six great areas of uncertainty which the private investor should formulate a coherent opinion on:

 

  • The war in Ukraine is in reality the remnants of the cold war, a low-level conflict

Triple bottoms

Investors should be riveted to the progress of the S&P500 index these days. As we said in our article three weeks ago, the S&P is teetering on the edge of a bear trend. Following that article, the index climbed back up and then on the US Memorial Day weekend it encountered significant

Basic Fundamentals

Public, listed companies are required to report back to their shareholders on a regular basis. They must produce audited financial statements after the first six months of their financial year (interims) and then again at the end of the financial year (finals). Listed companies must produce these statements within 3 months of the end of their