Javed Mirza, technical analyst at Canaccord Genuity
Focus: Technical analysis

MARKET OUTLOOK

We remain bullish overall, as a new four-year cycle began in December 2018 that supports upside into 2021. However, the technical setup has us cautious in the near term. The following five factors support an intermediate-term (two- to four-week) equity market correction:

  1. Price momentum is now waning on major indexes.
  2. Buying pressure is declining as volume declines on the recent move higher.
  3. Investor sentiment is approaching bullish extremes consistent with prior intermediate-term corrections.
  4. The put/call ratio is showing signs of greed as investors are buying more calls than puts.
  5. Portfolio managers are rotating into the more “defensive” bond proxies, namely staples, communication services, utilities and REITS.

TOP PICKS

Javed Mirza's Top Picks

Javed Mirza of Canaccord Genuity shares his top picks: CGI, Canadian Apartment REIT and CAE.

CGI (GIB/A:CT)

The stock has been seeing a recent breakout to new all-time highs. In addition, I’m seeing an improvement in the price momentum. Relative strength is reaccelerating versus the TSX composite, and volume is showing signs of buying pressure. All of this combined is supportive of further upside.

CANADIAN APARTMENT REIT (CAR-U:CT)

The stock has been seeing a recent breakout to new all-time highs. In addition, I’m seeing an improvement in the price momentum. Relative strength is reaccelerating versus the TSX composite, and volume is showing signs of buying pressure. All of this combined is supportive of further upside.

CAE (CAE:CT)

I’m seeing an improvement in the price momentum. Relative strength is reaccelerating versus the TSX composite, and volume is showing signs of buying pressure. All of this combined is supportive of further upside.

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
GIB/A N N Y
CAR-U N N N
CAE N N Y

 

PAST PICKS: OCT. 1, 2019

Javed Mirza's Past Picks

Javed Mirza of Canaccord Genuity shares his past picks: Waste Connections, Shopify and Home Capital.

WASTE CONNECTIONS (WCN:CT)

  • Then: $120.65
  • Now: $119.07
  • Return: -1%
  • Total return: -1%

SHOPIFY (SHOP:CT)

  • Then: $414.16
  • Now: $426.66
  • Return: 3%
  • Total return: 3%

HOME CAPITAL GROUP (HCG:CT)

  • Then: $24.80
  • Now: $35.07
  • Return: 41%
  • Total return: 41%

Total return average: 14%

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
WCN N N Y
SHOP N N Y
HCG N N N

 

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WEBSITE: https://www.canaccordgenuity.com/capital-markets/what-we-do/research--strategy/