Unum Capital: Trade Ideas on S&P500 and AUDJPY

Unum Capital: Trade Ideas on S&P500 and AUDJPY

Dear Trader

Following the sharp decline in equity markets seen during the fourth quarter of 2018, global equities have rebound sharply since 26-December, with market participants seemingly having brushed aside the concerns that have plagued financial markets.

At current levels, upward momentum in equities appears to be in the early stages of once again slowing and on the desk, we look to take advantage of both long (buying) and short (selling) opportunities.

S&P500 Futures

The price looks to be at a distribution stage, having breached the upward trend on the 2-hour chart and having since sharply re-tested the breakdown level. At current levels, traders could look to short sell the index in anticipation of a move lower.

Trade Levels:

Short/Sell S&P500 at 2653 (current level on chart)
Stop-loss: 2705
Take Profit Target: 2500

SPY Options

As an alternative, clients could look to utilize “Options” to take advantage of the potential downside reversal. You may chart to the trading desk regarding this.   

In of the potentially ‘risk-off’ scenario, we have started to see the Yen strengthen. This can be seen on USDJPY, where we at the commencement of this morning’s Australian trading session, managed to publish an idea. You may follow the idea here: https://www.tradingview.com/chart/USDJPY/mu6FRSoB-Trade-Idea-Short-USDJPY/

Another Yen cross may also provide a downside opportunity, and which is considered the ‘ultimate risk pair’, is the Australian Dollar vs Japanese Yen (AUDJPY). Here I am looking for a break of the trend line support with a downward trend to follow:

Trade Levels:
Short/Sell AUDJPY at 78.12
Stop-loss: 78.35
Take Profit Target: 76.55
Please chat to the Unum Capital Trading Desk to take advantage of any trading opportunities.
All the best,
Lester Davids
Unum Trading Desk Analyst
e-mail: clientservices@unum.co.za
Tel: 011 384 2923

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