Playlist: Equities

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Morning Call: Softer dollar boosts commodities, stocks
21 September 2018 at 7:40 GMT
Morning Call: Chinese shares surge as trade war rages on
19 September 2018 at 8:36 GMT
Morning Call: Chinese shares fall further
11 September 2018 at 8:36 GMT
Morning Call: Bringing it all back home
05 September 2018 at 7:56 GMT
Morning Call: Trump opens fire on China, EU
31 August 2018 at 10:31 GMT
Morning Call: Chinese bounce unlikely to last
27 August 2018 at 8:28 GMT
Equity Update webinar - New Highs in S&P 500
Peter Garnry
22 August 2018 at 13:41 GMT
Technical analysis webinar – A view of the market: Larsson
Kim Cramer Larsson
15 August 2018 at 14:37 GMT
A closer eye on Fang stocks — #SaxoStrats
Kay Van-Petersen
06 August 2018 at 11:18 GMT
From the Floor: Why is TSLA up by 9.36%?
02 August 2018 at 7:48 GMT
From the Floor: BoJ tweaks policy — #SaxoStrats
31 July 2018 at 7:39 GMT
2018 H1 review: The crypto party is over
Jacob Pouncey
20 July 2018 at 9:19 GMT
Equity update webinar: Trade war — #SaxoStrats
Peter Garnry
12 July 2018 at 15:17 GMT
Video / 09 February 2018 at 8:40 GMT

From the Floor: 'Stay on your toes, keep risk to a minimum'

  • Risk contagion spreads to Asia but still very equity centered
  • JPY is stronger but mostly within its recent trading range 
  • Emerging market currencies starting to show nerves
  • Hawkish Bank of England meant brief rally for GBP
  • Traders need to watch 200-day moving averages in major indices
  • An ugly close today could open up for further volatility next week
  • Bottom line – stay on your toes and keep risk to a minimum

By Clare MacCarthy

Yesterday's lurch lower by Wall St equities has been followed by an Asian downturn as contagion seeped into the region, raising fears that an ugly close ahead of the weekend could open up for further volatility next week.

The message from John J Hardy, Saxo's head of forex strategy is clear: "Stay on your toes and keep risk to a minimum". 

"Chinese equities are almost nearing a crash-style selloff, we're seeing the 200-day moving average looking like its attempting to survive into the close in China's key index after trading well below that level. And in the US the spike lower overnight was caught right at its 200-day moving average which is about 25.35 on the future and 25.38 on the cash index. Keep these in mind, this is pretty scary stuff as we're heading into the weekend and I think today's close on the equity markets is very important for establishing whether this is going to stop here now or whether we risk some sort of further decline in risk appetite and in these indices," Hardy says.

And what if US stocks take a further dive down today? "If the US [equity] indices close on a very ugly note today then that sets up a very nervous weekend with risk managers scrambling to figure out what to do. That was the classic setup in 1987 if we're to draw the most terrible parallels when we saw an ugly Friday close followed by the Monday which had the crash close," he cautions.

And the bottom line? Again, "Stay on your toes and keep risk to a minimum if you can," Hardy advises.

JPY is stronger but mostly within its recent trading range:
Source: Saxo Bank 


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