OUR PICK – No New Pick.

No new pick going into the weekend. Outflow from the US equities has become a new norm and this week is no different. About $1.3b flowed out of the domestic equities and about $530 million was channeled to foreign equities. Prior funds parked at short term money markets, about $7.9b, have moved to bond funds. As inflation concerns remain, investors seem to be jumping back to commodities like precious metals and higher yielding currencies. We see Dollar (DXY) trending lower to the 93 handle unless fresh buying comes in sooner than later. Have a wonderful weekend!

Trades updates: 

Equities: Currently we are holding 8 stocks – 7 longs and 1 short. We are long AUY (20% undervalued) with dividends yielding 2.78%, T (18% undervalued) at 8.03% yields and COG (CTRA) (14% undervalued) yielding 2.06%. CLVS is currently 21% overvalued with -7.19 z-score but Tudor Investment had stepped in recently and we decided to hold. We remain bullish with VIPS (43% undervalued with 5.59 z-score), GT (47% undervalued with 1.28 z-score) and CRON (18% undervalued with 9.18 z-score) while bearish GE (26% overvalued with 1.36 z-score).

FX & Commodities: NZD/CHF has completed all targets and AUD/CAD has completed short term targets. EUR/CHF didn’t quite work as planned, but we believe the bottom is in place. Gold (XAU/USD) remains active.

Disclaimer:

This article is for general information purpose only. It is not an investment advice or a solicitation to buy or sell any securities. Opinions expressed are of the authors and not necessarily of MFM Securities Limited or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.