We see opportunities in the industrial and financial sectors
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After a hot fall, a spring tornado could wreak havoc in France
Barely half a year after this year’s French budget was passed, the wrangling over the 2027 budget is about to begin, but that’s not all, because France will also hold a presidential election next spring. During the first public presidential debate, some of the radical candidates put forward ideas that were, at times, unconventional. Although the presidential election in late April still seems far off, based on the latest polls, if no candidate secures enough votes and a runoff is held, it cannot be ruled out that two radical presidential candidates will face off against each other. Market participants may have begun to price in this growing uncertainty, as the yield spread between French and German 10-year government bonds has started to widen again in recent weeks. The period ahead promises to be full of twists and turns, so it will be worth keeping a close eye on developments in French domestic politics.
Commodities - Technical Analysis
Gold and silver prices have retested their uptrend lines, so the long-term trend may continue. Oil prices have broken out of a contracting pattern, which may signal the start of another upward wave. Natural gas prices have also begun to rise, signaling a buy. In the case of copper, the main uptrend remains in effect, and there are currently no signs indicating a change in the trend’s structure. Following significant gains, wheat and corn have become heavily overbought, increasing the likelihood of a correction.
The companies identified—based on our screening criteria—as having upward potential primarily come from the financial, industrial, and technology sectors. Overall, however, the market environment remains highly volatile. Currently, it is more likely that stock markets will move within a broader, sideways range, with the possibility of reaching new highs. In this situation, a momentum-based approach may offer more favorable trading opportunities: selling at overbought levels and buying in oversold ranges may be advisable.
Best rated US stocks based on momentum ranking
Compelling technical picture:
AMD (daily): The longer-term chart looks promising, as the stock bounced off the key natural support level of $187.50 two weeks ago, leaving a gap open. In recent days, it broke through the upward correction within the uptrend, signaling a long position. The upside is now more open; the previous high of $265 could be easily reached, but it could go even higher.
Morgan Stanley (daily): The stock has broken out of its corrective downtrend in recent days, opening the door to an uptrend. It has also left a gap behind, which is a very good sign and suggests there may still be room for further gains. The 175 level could offer a good entry point for a long position, while the target price could be around 200 at a minimum. We could see it go even higher, so the potential return relative to the risks makes this long opportunity look even more attractive. The bank will release its quarterly report on Wednesday, which could cause a significant shift in the price.
List of stocks with a chance of a turnaround in the coming weeks
Most popular US stocks
The momentum model supports the creation of a technical based stock list that helps to find shorter-term trading opportunities. The model can be used to identify stocks that show reversal signals following more sustained falls/underperformance. We examine one-year, six-month, three-month, one-month and five-day momentum values, which are used to rank the stocks under consideration. The higher a stock is ranked in the order, the better it technically performs relative to the others. The change in the ranking over time is used to determine the life cycle of the stock.
- In the first table, we collect the stocks that show the most attractive picture compared to the others in a given week based on momentum factors, of which those are also presented in a separate chart where a favourable situation can be identified based on additional technical analysis tools.
- In the second table, we list the stocks that are already worthy of being placed in watchlist status. They are not among the best performers, but they have the potential to improve and signal a turnaround in a few days or weeks.
- In the third table, we have also collected the more popular stocks to help identify their position in the momentum order.
The report shows the results of a technical - quantitative based stock screening, which does not examine the fundamental background/value of the companies. For this reason, risk management/position sizing rules should be designed accordingly.
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