It was a bloody day on the markets today. Grab a bucket and mop and go clean the blood off the trading floors.
The Uganda shilling closed at 3433 on the US dollar, 4954 on the British pound, 33.68 on the Kenyan shilling and 2465 on the Canadian dollar. As you can see, the shilling did quite good today against the major currencies.
Coffee Arabica closed at $3.11 a kilo.
Coffee Robusta closed at $1.67 a kilo.
Not too much change in the coffee prices so this is good given the turbulence on the markets.
Gold finished at $1,189 per ounce after a jump of $24 per ounce since the last trading day. Now this one is something we have to watch. Generally when markets become turbulent, people run into the minerals and usually gold is first.
Oil fell 3.10% and closed at $33.11 a barrel. Normally this would be a small drop. Except the chart shows it preparing to follow gravity and drop hard. This thing will go under $30 and likely touch $25 a price I had predicted in January 2016 but it had pulled back up after touching $26. For the moment, it has support at $32.50 so we will touch it and bounce up or crash through that support then I will tell you the next support level.
Shanghai had no change at all. It traded in a very narrow range and ended up closing at the same level as the last trading day. It is sitting at 2763.
Hong Kong did not change at all. That would have been quite the surprise if $SSEC had no change and $HKDOW made a move outside of that. Hong Kong is generally a follower.
Tokyo is interesting. It went rose 1.10% (185 points) closing at 17,004. For some reason the Nikkei seems to move at its own rhythm. When Shanghai is falling, Tokyo can rise. When Shanghai is rising, Tokyo can fall. The correlation is still something I am yet to learn as I have always only traditionally paid attention to North America.
Frankfurt — Oh my, I should not have looked. It is ugly. This is the chart for today. Notice that big ugly red candle. It crashed through any support possible. If you look on the left of the chart you will see there is nothing holding this thing back from following gravity. What might happen on Tuesday is a little bounce (short covering) but if I were buying to hold, I would hold off for now.
Paris was ugly too. It fell 3.20% (134 points) closing at 4066.
London fell by 2.71% (159 points) closing at 5689. The chart shows some kind of hope because it did not crash through its support.
Toronto fell 1.79% (229 points) closing at 12535. I was apprehensive all day to see how badly the TSX would make out but it turns out that it did not fall that hard. One of these days, I will provide charts of the stocks I own.
Dow Industrial fell 1.10% (178 points) closing at 16027. I think North America said, “to hell with Europe, we are having a party so get with the system”.
Standard and Poor fell 1.42% (27 points) closing at 1853. The beauty of this one is in the chart. The chart shows that it is turning down but it put in a hammer which was held into the previous hammer so this down turn might not last.
NASDAQ – oh dearest. The Nasdaq is supposed to catch the flu when $SPX, $INDU and $TSX sneeze but not to catch full blown pneumonia. This one fell off the chart. Gap down big time. It fell 1.82% (79 points) closing at 4284. It is not so much that it fell, but it dropped away from its last closing level. At least the others tried to stay close to their last trading level and fell off a bit but this one woke up saying “wano wafila muloge”. It crashed through all the support and even the little hammer it is showing is a fluke.
I wrote an article in January 2016 that very few people paid attention to. You might now want to read it. This one explains some of what might be going on in the markets. http://www.theinsider.ug/primer-on-stock-market-turbulence/
Martha Leah Nangalama
The writer is an IT analyst for an Oil company and has traded stocks, options and forex. All my opinions are mine and mine alone. They do not reflect on my employer or any organisation I am affiliated with.