Tuesday 3 November 2015

Pre-Market Brief

Good morning. US equity futures are moderately lower, sp -7pts, we're set to open at 2097. USD is +0.2% in the DXY 97.10s. Metals remain weak, Gold -$2... whilst Oil is +0.7%.


sp'daily5


Summary

First soft target for the equity bears is the Friday close of 2079. After yesterdays gains, a break below that looks out of range today.

It is notable that any negative close today will keep the door open to a sig' break lower this Thurs/Friday. Naturally, it would likely be the Friday... with the jobs data.

A retrace IS due, but those hoping for anything more are surely going to be very disappointed by year end.
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Corp' news.  Activision (ATVI) purchase the makers of Candy Crush (KING).  This is perhaps the dumbest deal I've seen in some years.

KING, daily


ATVI have paid almost $6bn ($18 a share) for a company that is worth arguably.....nothing. I can only imagine the CEO/board of ATVI are lost for ideas.. and thus went for the old 'lets go buy a company' strategy.

ATVI, daily


This purchase will likely come to haunt ATVI within a few years.  At least EA weren't stupid enough to do such a thing.


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Update from a typically loud Mr C.



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Have a good Tuesday
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*awaiting Factory Orders data (10am)