In our weekend digest, we summarize the best pieces published from the working week. These can be read in full by clicking on the link over the name/ticker.
Editor’s Picks – previewing 2022
In our top large cap stocks for the year, the team talks through their personal favourites and what they think will be hot next year.
This piece features the top picks from the team that have a market cap below £1bn.
Stocks – tech leads the charge in last minute Santa rally
This compounds an already bad month for the company, losing 14% in value. Although the picture doesn’t improve the more I pull it back on the longer timeframes, it does become apparent that there will come a point where the stock is an undervalued buy. As it currently stands, is this too much of a high risk play for the reward potential?
The stock was down 10% on Friday and is down nearly another 10% today, as the company stated that the production ramp-up was behind schedule due to supply chain issues and that they expect to miss the 2021 target of producing 1,200 vehicles. The company also reported its first quarterly results as a public company, which saw a net loss that doubled since Q2.
UK inflation is flying. In the latest reading for November, CPI inflation came in at 5.1%. This is a whopping figure, and one that has risen since the summer. Given that the Bank of England target rate is only 2%, the extent of the overshoot is clear. One way I can try and stop my cash from being eroded by inflation is to invest in top dividend stocks.
I spoke with Michael Detke, the Chief Medical Officer at the company, and asked him about the next steps for the company. “We believe the data generated from the first-of-its-kind GAIN Trial adds an important new dimension to our understanding of Alzheimer’s disease and look forward to continuing to advance atuzaginstat.”
Crypto – Bitcoin takes out $50k, DeFi outperforms
In the past few weeks, upgrades have been initiated. These include Colombus-5, Wormhole v2, and an Inter-Blockchain Communication (IBC) protocol. All very technical things that we don’t need to understand in detail, but it does have some implications for the LUNA price.
Firstly, the projects are attracting capital inflows, ie purchase of LUNA. Secondly, some projects involve a burning mechanism.
The main news being pointed to in the short run for the push higher is the adoption of Swiss bank SEBA onto the platform. SEBA want to give their clients access to the platform, paving the way for easier access to trading cryptos.
This is positive for AAVE, and also for the crypto market in general. Although SEBA aren’t one of the top tier banks, it’ll still see higher volume being put through the market.
We’ll be on watch over the next few days for the price to hold above the 20DMA, currently at $49,739. Also, the 9DMA crossing above the 20DMA would indicate a change in trend. The 50DMA has rarely acted as resistance for Bitcoin over the year. When the price has fallen below this after drop offs, it usually breaks through as a new rally starts with strong volume and momentum. However, it has acted as support multiple times this year. This will be a support to watch if we do break above.
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