Global Index Record Highs,

Brent Crude Oil Trade & Aussie

Dollar to Watch

with Ashley Jessen June 9, 2014

Positive economic data coming out from around the world has really been

surprising to the upside. We've had Chinese trade balance come out over

the weekend. It surprised the upside. The big one was US non-farm

payrolls hitting 217,000 on Friday. That's the 4th straight month above

200,000 and we haven't seen a run like that since the 1990's. We've also

had Japanese GDP figures coming out better than expected. Now all of

this is pushing Global indices to all-time highs. We got the S&P500 hitting

new highs, the DAX, the Dow Jones. The ASX200 index is approaching

new six-year highs and that's leading us onto the trade of the week.

What we want to look out for is the energy sector and Brent Crude prices.

We spoke, a couple of weeks back, that Brent Crude --- we’re going to be

selling the strength above that 110, high 110 mark, down to the 107 level.

That's played out, and that's really found support at that level now. We’re

looking for a break above that 111.

Now on the energy sector stocks, if you’re trading ASX stocks; Woodside

Petroleum (WPL:ASX), AWE (AWE:ASX) and Oil Search (OSH:ASX) are

really finding a lot of strength there, pushing higher. They are looking

fantastic. So we want to watch out for that one.

On that note as well, last week of course, ECB announcements say we’re

getting negative interest rates to the banks. That's trying to push money

back into the economy. We’re seeing a lot of strength across those

sectors, and once again fuelling the energy stocks.

One of the other plays you might want to watch out for is a potential on the

AUD to break above the 0.94 mark. It's been finding so much support

around the 0.92 and 0.93 mark, that it could potentially break above that

0.94 mark. We‘re looking for a potential false breakout before it pulls back

into the range there. So keep an eye out on that one. Plenty of stocks to

watch on that note.

On the commodities front, we've got gold sort of basing. Iron ore started to

find support in steady which is probably such a positive thing for the

ASX200 Index. So we’re looking for maybe the banks and property trust

continue to strengthen, that the energy sector stocks will likely push the

ASX200 Index higher.

Now on the Economic data front this week, we've got Thursday and Friday

are the big ones. We've got Chinese CPI figures out today, but on

Thursday we've got Australian unemployment data as well as US retail

sales. So that's one that we want to watch out for.

Now also Bank of England Governor, Carney, will be speaking on Friday.

That will be one for the Euro zone and the EUR/USD to watch out for

there. On that note, the EUR/USD is sitting under that 1.36 mark and that's

really starting to lose that support and that strength. So keep an eye on

that one.

Now Invast Insights this week is very, very important. We're talking about

the ECB announcement to introduce negative interest rates, what that

means and why that could be a very negative effect on the economy.

We’re also going to have a look at energy stocks, with the Brent Crude

price approaching 111. We want you to keep an eye on that one.

Plenty of news, plenty of opportunity this week. So keep an eye out for it

and we hope you have a great week. Thanks.

For more updates from us, visit us at blog.invast.com.au.