XJO – Chart Review
The XJO is now trading at the upper band of the consolidation channel that’s been in place since mid-last year.
NASDAQ – Valuation Review
NASDAQ’s PE ratio is now 27X forward earnings with 2022 earnings growth rate forecast at 12.3%. The recent rally is a significant extension given the move higher in interest rates.
The graph below looks at the valuation of the S&P relative to US GDP.
Bitcoin – Sell Signal
The rebound in the NASDAQ has been sharp and it’s possible we’re now looking at a level of overhead resistance. For crypto investors, this provides an opportunity to consider hedging or an outright short position.
The strategy requires a stop loss which means any short exposure is closed out if the market rally continues.
James Hardie – Add to Watchlist
James Hardie Industries is approaching an oversold range where investors should begin monitoring the short-term momentum indicators for a pick-up in buying activity.
The price range for a reversal in price action remains wide at $33 to $39.
TWE – Algo Buy
Treasury Wine Estates is under Algo Engine buy conditions.
TWE continues to adjust to a post pandemic/post Chinese tariff environment. FY21 EBIT of $510 exceeded market expectations. After a number of years of disappointment for TWE in this region, we see America’s division accelerating growth into FY22.
FY22 EBIT growth is forecast to be in the mid to high single-digit range.
Aristocrat – Algo Buy
ASX – Algo Buy
ASX is under Algo Engine buy conditions.
ARB Corp – Algo Buy
ARB Corporation is under Algo Engin buy conditions.
ARB is Australia’s largest manufacturer and distributor of 4×4 accessories. They have a vast international presence, with offices in the USA, Europe and the Middle East, and an export network that extends through more than 100 countries around the globe.
Treasury Wines – Algo Buy
Treasury Wine Estates remains under Algo Engin buy conditions.
Treasury has significant earnings growth opportunities driven by the re-opening of higher-margin channels which were disrupted due to Covid.
NAB $2.5bn buy-back
National Australia Bank is under Algo Engine buy conditions and remains in our ASX model portfolio. The share price is up 22.7% since being added on 22 Sep 2021.
Having completed its A$2.5 bn on-market share buy-back only yesterday, NAB has today announced that it intends to buy back up to an additional A$2.5 bn of shares on-market.
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