Market steady ahead of US housing figures

The JSE stocks rallied hard yesterday and was up by about 1.5% for the day. Keep in mind that the UK market was closed yesterday due to a bank holiday, and our total volumes traded on the JSE was a lot lower than normal.

The US markets opened up relatively unchanged and turned weaker to give back all the gains it made on Friday.

At 15:00 the S&P House price index releases its findings and an expected rise of 3.8% is expected. A disapointment from this figure could send the markets down up until 15:45 when the Chicago PMI figures are released, and then at 16:00 the consumer confidence figures are released.

Expect volatility to pick up just before these figures are released.

Keep positions small and wait for the trend to establish before executing your strategy. Being on the wrong side in this market can prove immensely expensive.

Safe trading