Energy and Material stocks are set to benefit from US President Donald Trump and Chinese President Xi Jinping agreeing to temporarily halt the imposition of new tariffs, as they work towards negotiating a more permanent agreement.
BHP, WPL, S32, STO and OSH are our preferred holdings.
IZZ, (iShares China Large Cap ETF) is a current holding in our ETF model portfolio and following the positive outcome to the US China trade talks at the G20, we expect to see IZZ continue to trade higher.
Support is at $55 and we see room for a material push higher.
Our Algo Engine generated a recent buy signal in TWE and following the 30% fall in the share price, (since August results), we now recommend accumulating the stock.
The sell-off was largely based on concerns of a weaker China
market.
TWE trades 19x FY20 earnings and 2.2% dividend yield. The market continues to expect 15 – 20% EPS growth over the coming years.
BHP, S32 and OSH are recent Algo Engine buy signals where price action is now finding support and trending higher.
It’s also worth drawing your attention to recent signals in Whitehaven Coal (WHC) and Alumina (AWC).
We identified the price gap at $5.25 in Santos and have been patiently waiting for the retracement. The share price made a low of $5.45 and has now found buying support.
We now look to accumulate STO, OSH and WPL and we’ll also sell covered call options to enhance the return.
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