Traders buy up equities and oil to help push ASX 200 futures 355 points higher from their December lows - up 72 points last night

If this month felt volatile, that's because it was. The latter half of December's V-shaped range on the ASX 200 has erased the losses for this month - I guess Santa left his run a little late this year. ASX 200 SPI Feb 2016 futures traded as low as 4,815 on 15 December and closed this morning at 5,170, a 355 point or 7.37% bounce in just 10 days. Last night's 1.24% rise on the US S&P 500 followed 2% plus rallies on major European markets and may have helped give oil traders the confidence to buy into this short-term up trend present on today's second chart - you can see that after putting in a low of US$33.95 on Monday, WTI crude (OILUS in the Rivkin Trader platform) has rallied over 11% to be trading at US$37.80, and Brent crude (OILUK) has also shown signs of life, lifting 5% from its lows this week. A US Department of Energy crude inventory report issued last night stated that stocks of oil fell by 5.9 million barrels for the week ending 18 December, versus expectations of a rise of 1.2 million barrels, which is making this more of a US-specific oil theme.

While I might issue an update or two during the middle of next week should the markets dictate it, I'd like to say a big thank you to everyone for taking the time to read these morning updates and remain engaged with the work that we do at Rivkin to help our customers fund better lifestyles through investment and trading. While 2015 was a bit of a wearing year with high levels of volatility and a lot of selling pressure due to changing interest rate cycles, local banking reforms and significant falls in commodity prices, we're seeing more opportunities for mergers and acquisitions that is being helped along by a low Australian dollar, some distressed assets and the ongoing attractiveness of companies with favourable earnings growth potential in a global interest rate environment that is driving the need to put money to work rather than leave it to rot in fixed interest and cash markets.

I hope you all have a wonderful break and a prosperous new year. Rivkin is determined to eliminate the fear from investing and in order to do that, we need to get members and prospective members into a comfortable state so you an ask the questions required in order to confidently understand your investments. So please don't ever hesitate to get in touch with me or any member of the Rivkin team and ask us how we can help make life easier for you when it comes to investing - we're here to help.
  


Source: Rivkin, Saxo Bank

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

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.