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Price Action Model with readings for 3x time frames Price Chart + technical Trend Ratings + Moving Average Slopes + Candle Structure Here's an AI-assisted summary of the price action model Overall Trend: Bullish:  The overall trend is bullish across all timeframes (7-day, 14-day, and long-term). Short-Term Price Action (1 to 10 Trading Days): Buyers in Control:  The market is currently in the hands of buyers. Potential Pullback:  A potential pullback to the 8 or 21 EMA (Exponential Moving Average) is expected before the next move higher. Overbought:  The market is approaching overbought territory, suggesting a potential pullback could be imminent. Medium-Term Price Action (2 to 4 Weeks): Steady Upward Trend:  A steady upward trend is likely. Consolidation:  Consolidation is expected around certain levels. Long-Term Price Action (5 to 8 Weeks): Bullish Regime:  The market is in a bullish regime. Potential Pullback:  A potential pullback to the previous session's close or the 8-week EMA can be used as an accumulation zone. Key Takeaways: The market is currently in a bullish trend. A short-term pullback is possible due to the market approaching overbought conditions. Traders can use the 8 or 21 EMA as potential entry points for long positions after a pullback. The medium-term outlook is for a continued upward trend with potential consolidation periods. The long-term trend remains bullish, and traders can utilize pullbacks as accumulation zones. Analysis as of 01 January 2025 at 15h01 Lester Davids Analyst: Unum Capital

Key Observations: Tech and Banks:  The bullish momentum is waning slightly in the short term. Insurers:  The strength is primarily in the medium term. Consumer Discretionary:  The short-term outlook is neutral. Healthcare and Hospitals:  The long-term strength is tempered by weakness in the short term. Miners and related sectors:  The outlook remains weak across all timeframes. Luxury Goods:  This sector shows consistent strength across all timeframes. Lester Davids Analyst: Unum Capital

Telecommunications Sector Relative to the JSE Top 40 Index: Price Action Pointing To A Relative Change of Trend Comments on the slide below

Key Takeaway: Staples/Discretionary ratio at cycle lows. A bullish reversal may be indicative of potential weakness in broader equity markets. Expanded Commentary: The analysis considers the chart of equally-weighted consumer staples ETF (RSPS) relative to equally-weighted consumer discretionary ETF (RSPD) over several years, starting November 2006. The lower panel highlights the 7-month RSI where the current regime sits within the OVERSOLD category with a reading of 19. Historically, this range has coincided with lows in the ratio (near the start of a reversal) or has seen consumer staples slow it's aggressive downward trend versus consumer discretionary. Lester Davids Analyst: Unum Capital

To trade global instruments, you will need an offshore account. To get started, contact the Unum Capital Trading Desk: E-mail: tradingdesk@unum.co.za | Call: 011 384 2923 XLE offers liquid exposure to a market-like basket of US energy firms. Market-like in the context of the energy sector means concentrated exposure to the giants in the industry, including companies in the oil, gas and consumable fuels, and energy equipment and services industries as identified by GICS. XLE pulls its stocks from the S&P 500 rather than the total market, so its portfolio mainly favors large-caps. Holdings are weighted by market cap, subject to a capping methodology that ensures no single security exceeds 25% at each quarterly rebalance. AI-Assisted Insights Tailwinds: Increased global energy demand: As the global economy recovers from the pandemic and emerging markets continue to industrialize, the demand for energy is expected to grow. This could lead to higher oil and gas prices, benefiting energy producers.   Geopolitical tensions: Geopolitical events, such as the war in Ukraine, can disrupt global energy supplies and lead to higher prices. This can be a tailwind for energy producers, but it also creates uncertainty and volatility in the market.   Underinvestment in traditional energy: In recent years, there has been a significant underinvestment in oil and gas exploration and production. This could lead to tighter supply in the future, supporting higher prices. Transition to cleaner energy: While the transition to cleaner energy sources is a long-term trend, it could also create opportunities for energy companies that are investing in renewable energy and other low-carbon technologies. Headwinds: Economic slowdown: A global economic slowdown could reduce demand for energy, leading to lower prices. Overproduction: If oil and gas producers increase production too quickly, it could lead to a glut in the market and lower prices. Technological advancements: Technological advancements in renewable energy and energy efficiency could make fossil fuels less competitive. Environmental regulations: Stricter environmental regulations could increase the cost of doing business for energy companies and limit their ability to expand production.   Overall, the outlook for XLE is mixed. The tailwinds of increased global energy demand and geopolitical tensions could support higher oil and gas prices, but the headwinds of an economic slowdown, overproduction, and technological advancements could weigh on the sector. Investors should carefully consider these factors before investing in XLE. Lester Davids Analyst: Unum Capital

Thematic Opportunities To trade global instruments, you will need an offshore account. To get started, contact the Unum Capital Trading Desk: E-mail: tradingdesk@unum.co.za | Call: 011 384 2923 The iShares Expanded Tech-Software Sector ETF (IGV) seeks to track the investment results of an index composed of North American equities in the software industry and select North American equities from interactive home entertainment and interactive media and services industries. Why IGV? 1. Targeted exposure to software companies in the technology and communication services sectors 2. Access to software, interactive media, and related companies 3. Use to express a view on North American software companies AI-Assisted Insights The iShares Expanded Tech-Software Sector ETF (IGV) is poised to benefit from several tailwinds that could drive its performance in the coming months and years. Strong Secular Growth:  The software industry continues to exhibit robust growth, driven by the ongoing digital transformation of businesses across various sectors. This trend is expected to persist, fueled by the increasing adoption of cloud computing, artificial intelligence, cybersecurity, and other emerging technologies.    Economic Resilience:  Software companies generally demonstrate resilience during economic downturns. Their recurring revenue models and sticky customer relationships can help insulate them from cyclical fluctuations.    Favorable Interest Rate Environment:  While interest rates have been rising, the pace of hikes may be slowing down. This could create a more favorable environment for growth stocks, including software companies. Valuation Opportunities:  After a period of strong growth, some software companies may be trading at more attractive valuations, presenting potential entry points for investors. Innovation and Disruption:  The software sector is characterized by constant innovation and disruption. This can lead to the emergence of new technologies and business models, creating exciting investment opportunities. What's In The Fund Lester Davids Analyst: Unum Capital

5-Day Factor Performance as of Friday night's U.S. Close. Source: Koyfin Here's a AI-Assisted summary of the factor performance relative to each other based on the above image: Top Performers: Spin-offs:  Leading the pack with a significant 2.7% return. IPOs:  Following closely with a 2% return. Small-Cap Growth:  Showing strong performance at 1.8%. Middle of the Pack: Small-Cap Core  (1.4%) and Small-Cap Value  (1.3%) are positioned in the middle. Mid-Cap Growth  (1.1%) and Mid-Cap Core  (1.0%) are also in this range. Momentum  (1.0%) and Small-Cap  (0.9%) are close to the middle. Lagging Factors: Private Equity  (0.9%) and Hedge Funds  (0.8%) are slightly behind the middle. Buybacks  (0.5%) and Value  (0.5%) are trailing further. High Dividend Yield  (0.3%) is towards the bottom. Bottom Performers: Quality  (-0.2%), Large-Cap Growth  (-0.2%), Large-Cap Value  (-0.2%), Low Volatility  (-0.1%), and Growth  (-0.2%) are at the bottom of the list. Key Observations: Small-cap strategies, particularly Small-Cap Growth, appear to be outperforming. Value factors are generally lagging, with the exception of Small-Cap Value. Growth and Quality factors are showing negative returns.

Lester Davids Analyst: Unum Capital

Short Term: Approaching oversold and rebounding Long Term: Weak and in a downward trend; Looking to re-test the previous breakout level of R70 as per the monthly chart. GLN Monthly Chart as of Friday 27 December 2024 at 11h43

Investec (INL) | Monthly Chart: Resistance at upper boundary of multi-year channel + MACD breakdown. On a multi-year basis, the current level offers a poor reward-to-risk for new buy/long entries. Lester Davids Analyst: Unum Capital

The chart reflects a ratio of of DSY relative to the JSE Top 40 Index where the distance versus the 40-week simple moving average reflects an extended level (+29% in December 2024). Note the previous extension coinciding with bearish reversal, or at best, the start of period of consolidation. Previous Post: DISCOVERY Pending Bearish MACD Crossover + Most Overbought Reading in +10 Years Thursday 12 December 2024 (Time: Pre-Market) DSY Discovery Holdings Notes on the slide below Lester Davids Analyst: Unum Capital

Overall Trend: 7-Day Trend:  Strong 14-Day Trend:  Very Bullish Short-Term Price Action Reading (1 to 10 Trading Days): Do Not Enter Long Here:  The risk-reward is considered unattractive at this point. Medium-Term Price Action Reading (2 to 4 Weeks): Aggressive Buying but Overbought:  The index is showing aggressive buying, but it is also overbought. Expect Consolidation or Minor Retracement:  Due to the overbought condition, a period of consolidation or a minor retracement is anticipated.    Long-Term Price Action Reading (5 to 8 Weeks): Aggressive Buying, But Do Not Chase:  The trend remains bullish, but it's advised not to chase the price. Look for Overshoot or Failure to Hold Prior Session Range Highs to Short-Sell Back to the 8-EMA:   To identify potential short-selling opportunities, traders should look for instances where the price overshoots or fails to hold the previous session's range highs. Key Takeaways: The U.S. Dollar Index is currently in a strong bullish trend, both in the short and medium term.    However, the overbought condition suggests a potential consolidation or minor retracement in the near future.    Traders are advised to exercise caution and avoid chasing the price at this time. Short-selling opportunities may arise if the price overshoots or fails to hold previous session highs. Lester Davids Analyst: Unum Capital Note Added on 03 January 2025 at 12h20