ASX 200 searching for new buying support, crude oil back at post-GFC lows, ASX futures down 7 points

The ASX 200 is making fresh seven-month lows, which will see traders focus on the January 2015 closing low of 5,300. As far a logical key levels for the ASX 200, should selling persist, 5,300 is the next relevant area of potential buying support now that the ASX 200 has closed below the previous June 29 closing low 5,422. There is no logical reason to think that the market will continue to sell off--especially given that a lot of the re-pricing of Australian financial stocks has taken place and no evidence of contracting earnings in that sector has come to light--but when we take a look at today's first chart, there is some evidence that we could be resuming a downward trend pattern.

For those interested in commodity trading, US West Texas Intermediate (WTI) crude oil prices are sitting back at their post-GFC lows. This interests me a lot, given that it has reversed the US$20 March-June recovery completely and will again put a cap on global headline inflation rates. This is important, because it is one more factor in a confluence of factors leading into a very important policy decision date - 16/17 September Federal Open Market Committee meeting, which will revisit economic projections and be followed by a press conference by Fed Chair Janet Yellen. This will likely let the market know whether a 2015 rate rise is on the cards.

In addition to falling oil prices (which will stand in the way of the Fed using inflation as an excuse to hike rates), the devaluation of the Chinese yuan will also act as a deterrent to prevent the US from antagonising the Chinese by raising rates, which would both cause the yuan to appreciate again and have the effect of devaluing bond prices in the secondary market. The US Fed has previously stated that oil markets had stabilised - I'm not sure they can continue to project that opinion, given that US crude prices have fallen by one third in the last seven weeks.


Source: Rivkin, Saxo Bank

To view the Rivkin economic calendar and Global Markets matrix, members can click here.

How to apply for the FGG IPO

As was the case with Future Generation Investment Company (FGX), Rivkin will be working with its broking partner CMC Markets in donating the broker stamping fees to charities associated with the investment company’s cause – in this case, youth mental health and homelessness.

With this in mind, we strongly urge you to follow the following steps accurately so Rivkin can add to the philanthropic nature of this IPO.

  1. Visit http://www.futuregeninvest.com.au/Global/prospectus.pdf to download and read the prospectus
  2. IMPORTANT: complete the Broker Firm Application Form on page 87 of the prospectus, this way we can donate the stamping fees
  3. Ensure you have sufficient funds in your Rivkin Securities stockbroking account to pay for the stock
  4. Enter the Broker Code 02662
  5. Enter the Adviser Code 0001
  6. Email your application to customerservice@rivkin.com.au or post it to:

Rivkin Securities FGG Offer
Po Box 1524
Double Bay 1360

Don’t have a Rivkin Securities stockbroking account? Open one now by emailing customerservice@rivkin.com.au (your Relationship Manager will call you back and pre-fill forms etc.) or phoning 1300 748 546. Our online brokerage is $11.00 or 0.11%, $9.90 or 0.11% for SMSFs that use Rivkin Super. PLUS we go the extra mile and donate non-core earnings like broking fees from this IPO to charity. You’re doing yourselves a favour and doing those in need a favour by getting involved.

This article was written by Scott Schuberg, CEO of Rivkin Securities Pty Ltd. Enquiries can be made via info@rivkin.com.au or by phoning +612 8302 3600.

Complex product warning

This article contains information about foreign exchange contracts, which are considered complex financial products. Please click here to read ASIC's foreign exchange trading article before considering an investment in foreign exchange contracts. 

This article contains information about CFDs, which are considered complex financial products. Please click here to read ASIC's "Thinking of trading contracts for difference?" document before considering an investment in CFDs.
comments powered by Disqus

DISCLAIMER: Rivkin aims to provide clear and simple information to those visiting our website. If any part of this disclaimer does not make sense, please phone Rivkin and ask to speak with a member of our Dealing and Relationship Management Team. Rivkin provides general advice and dealing services on securities, derivatives and superannuation (SMSF). Rivkin also provide SMSF administration and accounting services. Rivkin does not provide advice that takes into account your, or anybody else's, investment objectives, financial situation or needs. We strongly suggest that you consult an independent, licenced financial advisor before acting upon any information contained on this website. Investing in and trading securities (such as shares listed on the ASX) and/or derivatives (such as Contracts for Difference or 'CFDs') carry financial risks. CFDs carry with them various additional risks that differ from more simple securities such as fully-paid company shares. Some of these risks include not owning the underlying instrument from which a price is being derived, settling trades 'over the counter' with a financial institution rather than on a stock exchange, and using leverage to gain access to trades that may have a higher face value than your initial deposit. This risk of leverage means that it is possible to lose more than your initial investment. Our aim is to create more life choices for our clients, which means improving the wealth of clients throughout many market cycles by nurturing a relationship spanning many years. If you are not comfortable with your understanding of the risks involved before using a Rivkin product and service, please contact our office to seek further information or a Product Disclosure Statement, or make an appointment to sit with one of our friendly financial experts. It is in our interest for your Rivkin experience to be a rewarding and comfortable one. Rivkin is a trading name of Rivkin Securities ABN 87123290602, which holds Australian Financial Services Licence No. 332 802.