Still, there’s not much to explain the rise in stocks, as volumes dry up, wrote Michael Kramer, founder of Mott Capital Markets. “You have to go back to the end of August to find lower transaction volumes. It looks like a combination of selling volatility and falling market participants, causing buyers to trip over themselves, ”he said. in a blog post.
Our call of the day is about less stumbling and more of a straightforward path forward for investors in 2022. “There has been a long-term trend where managers are starting to look to cheap stocks (attractive valuations) early on. of each calendar year, ”wrote JC O’Hara, chief market technician at MKM Partners, in a note to clients.
“We ran a simulated trading model in which we bought the lowest P / E [price/earnings] decile of stocks within the S&P 1500 and rebalanced every month. This simple strategy has outperformed the benchmark over the years. We have found that returns are increased in the first quarter of each year on average, ”said O’Hara.
And using a simple P / E ratio for the evaluation metric shows that a rotation into “attractive evaluation names” is clearly already underway, he said. “Inexpensive stocks have seen very little surge this year until recently. We believe that this rotation will continue until 2022. “
Research has found attractively valued stocks in each sector, showing that MKM Partners has found attractive technical setups. Here is a sample of these actions, sector by sector:
Consumer discretionary: Ford F,
GPC Genuine Parts,
Six Flags Entertainment SIX,
Toll Brothers TOL
and Lowe’s LOW.
Common consumer products: Many inexpensive companies are emerging in this defensive sector. Constellation STZ,
Archer Daniels SMA,
Hostess Marques TWNK
and Altria Group MO
are just a handful of these names.
Energy. MKM is evenly ranked in the sector, but sees a lot of growth in 2022. Halliburton HAL,
Exxon Mobil XOM,
Devon Energy DVN,
Pioneer Natural PXD
and Murphy Oil MUR
are part of a large list of actions.
Financial. “Banks have been under pressure given the recent rate move. Other areas of this industry offer better charts based on our technical opinion, ”said O’Hara. Wintrust Financial WTFC,
Zions Bancorp ZION,
Fulton Financial FULT,
Hancock Whitney HWC,
People’s United PBCT,
and Provident Financial PFS
are among those put forward.
Health care: The strategist said MKM is heating up in the industry amid a “positive width” expansion – more stocks are moving up than falling. AbbVie ABBV,
and Supernus Pharmaceuticals SUPN
are just a few of the mentions.
Industrial: Northrop Grumman CNO,
United UPS Parcel Service,
Quanta Services REP,
Wabash National WNC,
NSC South Norfolk,
and Boise Cascade BCC.
Technology: While the industry is generally expensive, there are plenty of good deals out there, especially among chip and communications equipment makers, MKM’s O’Hare said. Among the stock choices were Lumentum LITE,
ARW electronic arrow,
AMAT applied material,
Micron Tech MU,
and NetApp NTAP.
Materials: Look for the strength of chemicals, MKM said, with AdvanSix ASIX,
and Freeport-McMoRan FCX.
Real estate: MKM is overweighted in the sector. Some interesting valuations include Plymouth Industrial PLYM,
RVI Retail Value,
Armada Hoffler AHH,
Apple Hospitality APLE,
Alexandria Real Estate ARE,
American finance AFIN
and Games and Leisure GLPI.
Finally, industrial, the worst performing sector of the year so far, noted O’Hare, but “with a lot of charts that we feel comfortable owning for next year.” Edison International EIX,
Black Hills BKH
and Sempra Energy SRE
all get a mention.
The Centers for Disease Control and Prevention have shortcut its recommended COVID-19 isolation time of five days, starting at 10, if you don’t have any symptoms. It’s like global cases hit a Monday high of 1.44 million. Good news from omicron? Catching this variant of the coronavirus could mean enhanced immunity against delta one, according to a study from South Africa.
Meanwhile, Apple AAPL
temporarily closed 11 stores in New York City, due to an increase in the omicron variant.
Holiday flight disruptions are expected to continue on Tuesday, unaided by a batch of winter storms.
Tesla shares TSLA
are on the rise again, after the electric vehicle maker posted a 21% gain in the past four days. Keep an eye out for this key Fibonacci retracement level.
Flotek Industries FTK shares
are booming, after the Houston-based chemicals and data group said it received an unsolicited indication of interest in a buyout of all or part of the company.
Video game developer Riot Games, a unit of Chinese Tencent HK: 700,
will pay $ 100 million to settle a 2018 sex discrimination lawsuit with California regulators and employees.
Investors will get the S&P Case-Shiller US Home Price Index for October before the market opens.
ES00 equity futures
are higher, following an optimistic session in Asia JP: NIK
GC00 Gold Price
move higher, but the copper HG00
declining and oil prices CL00
are slightly higher.
Blogger The Market Ear provides this graph (Refinitiv) which shows late lawsuits between investors and the tech industry. The index is the top of a short-term range that has been holding up since October. “Chasing a breakout from a low-liquidity band isn’t what we’re doing. It’s time to book some of those short-term, medium-reversion trades and relax…” writes the blogger.
Researchers will open the veil on a highly sought-after project time capsule from 1887 later Tuesday.
“Digitally unbox” an Egyptian pharaoh after 3,500 years.
Legendary rocker Ozzy Osbourne will launch his Collection of non-fungible “CryptoBatz” tokens in the new year.
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