Uganda shilling and global market report – June 24, 2016


What a bloody day on the markets today.  The news and social media are awash with Brexit.  Shocking that Twitter did not die.  Some of the Tweets were to die for.

The British pound was holding its own when Australia opened up (In Forex, Aussie opens before all the other markets open).

Then Tokyo, Shanghai, Hong Kong opened and all hell broke loose.  Mind you New Zealand can also move things.

The only thing with relying on the opening prices in Australia and New Zealand is the low volume.

We always want to wait for the fat lady to sing.  Europe opened up and the fat lady was singing a very bad opera.

When North America opened up, we knew we were cooked.  Next week will require mops to wipe the blood off the trading floors.  It was that bad.

The Uganda shilling closed at 3405 on the US dollar, 4659 on the British pound (at one point it had even traded at 4000, suckers!  Uganda relies on Britain for a lot), 3786 on the Euro (not much change), 50.18 on the Rupee, 2619 on the Canadian dollar (interesting given that the Canadian dollar fell on the US dollar and the pound), 2546 on the Australian dollar and 1.56 on the Tanzania shilling.

The Uganda shilling dropped out the last support at 3375 and crossed under 3400.  Next support is at 3425, 3450 and 3475.  Watch these key levels because falling through could lead us all the way to 3800 where we have been before.  The daily shilling report will always give support levels.  The 3400 level was key and even if we are sitting at 3405, 3400 now becomes serious resistance.  Behind it, we have 3375 as a back up.

The shilling is very weak.  On a day like today, one would have expected some strength.  Well, it was worth a dream.

Coffee Arabica closed at $3.56 per kilo.

Coffee Robusta closed at $1.93 per kilo.

Gold is trending at $1300 per ounce after gaining $33 per ounce.  The reverse works.  The markets must be in pain that people are running into safety and it is always minerals and other commodities.

Oil (Brent Crude) fell $2.56 per barrel and finished at $48.44 a barrel.  Not so fast.  It closed just a hair above its 200 day moving average (MA).  It might look shortable but I would be careful with this one.  The daily chart indicates that it could go north or south.



Shanghai fell 38 points but closed withing its basing area which it has been working on for 2 weeks now.  Not shortable and in fact, it looks good for a long trade but watch how the global markets shape out.

Hong Kong fell very very hard and then recovered to close at 0 gain or loss.  Look at the resources at the end of this article and you can also pull up the charts of these indices.

Tokyo – holly molly!  The $NIKK dropped 1286 points.  The chart is really very depressing.


Frankfurt gapped down big time.  Then recovered but the gap remained.  The $DAX lost 700 points.  Ouch!

Paris also gapped down with a vengeance.  We should have paid attention in the physics classes.  This is nothing other than gravity.  It lost 359 points.  This is huge for the $CAC.

London naturally fell.  Well, the $FTSE and Britons are the reason for this whole mess.  It lost 199 points.  Let us use this chart for today.  Look at today’s candle and how it fell very hard and then recovered to close at its 50 day MA and the 200 day MA is not too far off.  If you look to the left, you will also see that it has support beside the 50 day line.  It has some nice white candles which will hold it up (we can only hope).

North America

Toronto lost 240 points but closed just under its 200 day MA.  I would be careful in this market.

Dow Jones Industrial Average – well.  Actually, this one did very badly.  It lost a whole 610 points.  Not only that but it crashed through its 200 day MA and formed a very ugly negative red candle with now only the 50 day MA waiting a bit lower to provide support.  People, the DOW has turned into a bear.  Had no idea the $INDU was so pegged on the $FTSE.  It is not so much that but the NYSE is in NYC and one would think the Wall Street team would have hedged.  Buffet and Soros must be laughing.

Standard and Poor lost 76 points.  Okay, the sky is falling!

NASDAQ lost 202 points.  What a mighty drop!


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Shanghai = $SSEC

Hong Kong = $HKDOW

Tokyo = $NIKK

Frankfurt = $DAX

Paris = $CAC

London = $FTSE

Toronto = $TSX

Dow Jones = $INDU

Standard and Poor = $SPX

Nasdaq = $COMPQ

Oil (Brent) = $BRENT

The above symbols are what we use to check on the markets.  There are other index symbols and commodity symbols.

Martha Leah Nangalama

I have an IT and Business background.

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