Before getting into the Uganda shilling and global markets, I would like to explain something about OIL.
The Main Benchmarks (http://www.investopedia.com/articles/investing/102314/understanding-benchmark-oils-brent-blend-wti-and-dubai.asp)
There are dozens of different oil benchmarks, with each one representing crude oil from a particular part of the globe. However, the price of most of them are pegged to one of three primary benchmarks:
Brent Blend – Roughly two-thirds of all crude contracts around the world reference Brent Blend, making it the most widely used marker of all. These days, “Brent” actually refers to oil from four different fields in the North Sea: Brent, Forties, Oseberg and Ekofisk. Crude from this region is light and sweet, making them ideal for the refining of diesel fuel, gasoline and other high-demand products. And because the supply is water-borne, it’s easy to transport to distant locations.
West Texas Intermediate (WTI) – WTI refers to oil extracted from wells in the U.S. and sent via pipeline to Cushing, Oklahoma. The fact that supplies are land-locked is one of the drawbacks to West Texas crude – it’s relatively expensive to ship to certain parts of the globe. The product itself is very light and very sweet, making it ideal for gasoline refining, in particular. WTI continues to be the main benchmark for oil consumed in the United States.
Dubai/Oman – This Middle Eastern crude is a useful reference for oil of a slightly lower grade than WTI or Brent. A “basket” product consisting of crude from Dubai, Oman or Abu Dhabi, it’s somewhat heavier and has higher sulfur content, putting it in the “sour” category. Dubai/Oman is the main reference for Persian Gulf oil delivered to the Asian market.
Brent is the reference for about two-thirds of the oil traded around the world, with WTI the dominant benchmark in the U.S. and Dubai/Oman influential in the Asian market.
The Uganda shilling closed at 3451 on the US dollar, 4996 on the British pound, 3907 on the Euro, 33.93 on the Kenyan shilling and 2478 on the Canadian dollar.
Coffee Arabica finished at $2.99 per kilo.
Cofffee Robusta finished at $1.63 a kilo.
The slight pull back on coffee is really due to the fact that some people made some profits and took some money off the table. You will learn about taking profits in a future article. Generally, most professionals watch their trade rise, take 50% out and let the other 50% ride the wave.
Gold finished at $1245 per ounce. It jumped a whole $51 over night. This is flight to safety. You will see below why gold has been shooting up. As mentioned in previous articles, people seek safety when the stocks follow gravity.
Oil closed at $31.12 per barrel. Hardly any change but it is going down and the chart says it all.
Shanghai – can you just believe that? There was zero change on the $SSEC. I think I like this one because North America freaked out.
Hong Kong closed at the same level as yesterday. It did drop hard though and then recovered to its previous level. This is a good sign because it means that there are more buyers than sellers.
Tokyo – Damn! The Nikkei is gonna give me a heart attack. It fell off the surface of the earth. It fell 2.31% losing 372 points. This on top of yesterday’s hard fall. Wait, I guess that negative interest rate by their central bank finally set in. This is the chart for today. You can see from the red candle that Japan is going down and doing it in style like, catch me if you can!
Frankfurt – there is nothing to say. It tanked.
Paris – oh my dearest… what happened there? You just thought that today was not worth getting out of bed? This chart is super ugly I should have put on sun glasses to look at it.
London Bridge is Falling down, falling down, falling down… The FTSE, this really hurts to say but it totally crashed through everything. I used to think that Antarctica was an imaginary place at the bottom of the earth but it turns out that the place might actually exist. Bye bye London.
Toronto – well can you just see that? The TSX did really well given how many wimps were panicking and running for cover thinking the sky was falling. It only fell 0.81% (98 points). Impressive. We will see how my stock did on it soon.
Dow Jones Industrial Average was OUCH! It fell 1.6% (255 points). It is really not the fall that matters but the chart pattern. It held within previous support so I would not be rushing out to cover any short positions and neither would I be rushing out to buy at this level.
Standard and Poor fell 1.23% (23 points). Its chart signals a pull back but it did close within the previous support so yes, $SPX drives the market but it is forming a pattern that says the selling will abate soon and we will move into bull territory.
Poor NASDAQ is trying to crawl out of the last hole it fell into. It only lost 0.39% (17 points) but it is way off the chart. We need the other indices to recover so that we can pull up the Nasdaq because you cannot buy technology gadgets if you are laid off work, your other stocks crash or you just watch the market melt away in front of your eyes.
You can can check the charts yourselves. Below are the symbols and the site is included.
$SSEC is Shanghai.
$HKDOW is Hong Kong.
$NIKK is Tokyo.
$DAX is Frankfurt.
$CAC is Paris.
$FTSE is London UK.
$TSX is Toronto.
$INDU is the Dow Jones Industrial Average.
$SPX is Standard and Poor.
$COMPQ is the Nasdaq.
Today was World Youth Day. Ugandan youth are among the most impoverished kids in the world and their future is bleak so they will have to vote smart. http://www.theinsider.ug/world-youth-day-what-is-in-it-for-ugandan-youth/
STOP SELLING AND STOP BUYING. Below is an article I had previously written while conversing with a friend from Uganda and trying to explain some terminology. I will edit it and soon put it in the business section right here.
There is a reason I have repeatedly mentioned MARGIN CALLS. Stop Sells and Stop Buys are related to Margin calls and in fact these stops are what saves the average disciplined trader and investor.
Martha Leah Nangalama
The writer is an IT analyst for an oil company and has traded stocks, options and forex in the past. All my opinions are mine and mine alone. They do not reflect on my employer or any organisation I am affiliated with.