OUR PICK – No New Picks

No new pick going into the weekend. As markets come to closing in the next two weeks, we expect more profit taking and rotation into cyclicals and commodities as inflation will be one of the theme trades next year. Companies with strong earnings and yields will be preferred and growth investors will come to senses as Feds plan for three hikes in 2022. BoE was smart in heeding the IMF warning to tackle inflation sooner than later, unlike Feds that decided to wait further. Buckle up folks and Happy Holidays!

Trades updates: 

Equities: Currently we are holding 8 stocks – 7 longs and 1 short. We are long AUY (22% undervalued) with dividends yielding 3.00%, T (19% undervalued) at 8.77% yields and COG (CTRA) (16% undervalued) yielding 2.49%. 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 (47% undervalued with 5.59 z-score), GT (40% undervalued with 1.28 z-score) and CRON (13% undervalued with 9.18 z-score) while bearish GE (13% overvalued with 1.43 z-score).

FX & Commodities: GBP/JPY has reached all targets and long term turned bullish while GBP/NZD was stopped out. AUD/USD has reached short-term TP1 and remains active.

Risk Disclaimer:

This article is for general information purpose only. It is not an investment advice or a solicitation to buy or sell any securities/oz. 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.