Cross-Asset Strategist & Quantitative Analyst, Pennock Idea Hub

Cam Hui

Cross-Asset Strategist & Quantitative Analyst

Pennock Idea Hub

We are creators of independent equity research. The Pennock Idea Hub team are veterans of the investment industry. Much of our team has spent their careers at Merrill Lynch, Deutsche Bank, RBC Capital Markets and Wood Gundy. We have taken every aspect of research back to the studs and returned to first principles. The Pennock Idea Hub marries the interests of the sell and buy side. 

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Cross-Asset & Quantitative Research

Cross Asset Strategy

<ul>
<li>Don’t get overly complacent about the party that the bulls are throwing. Sufficient warning signs are appearing that it’s time to edge toward the exit.</li>
<li>Investment-Oriented accounts should begin to de-risk their portfolios by reducing their equity weights and lowering the beta of their equity portfolios.</li>
<li>Short-Term traders may want to stay at the bulls’ party a little longer and wait for a sell signal to turn bearish.</li>
</ul>


Don’t get overly complacent about the party that the bulls are throwing. Sufficient warning signs are appearing that it’s time to edge toward the exit.
Investment-Oriented accounts should begin to de-risk their portfolios by reducing their equity weights and lowering the beta of their equity portfolios.
Short-Term traders may want to stay at the bulls’ party a little longer and wait for a sell signal to turn bearish.


<ul>
<li>The S&amp;P 500 is forming an inverse head &amp; shoulders pattern with a measured objective of 4290, but H&amp;S formations are incomplete until the neckline breaks. </li>
<li>The bull case consists mainly of oversold conditions and excessively bearish sentiment.</li>
<li>The bear case consists mainly of poor market internals and breadth deterioration.</li>
</ul>


The S&amp;P 500 is forming an inverse head &amp; shoulders pattern with a measured objective of 4290, but H&amp;S formations are incomplete until the neckline breaks. 
The bull case consists mainly of oversold conditions and excessively bearish sentiment.
The bear case consists mainly of poor market internals and breadth deterioration.


<ul>
<li>The U.S. stock market is oversold and there are signs of capitulation. </li>
<li>Barring another major negative shock, the market is poised for a relief rally into year-end and possibly January. </li>
<li>Small caps are washed out and could prove to be a worthwhile speculative buy as a way of taking advantage of the Santa Claus rally seasonal pattern.</li>
</ul>


The U.S. stock market is oversold and there are signs of capitulation. 
Barring another major negative shock, the market is poised for a relief rally into year-end and possibly January. 
Small caps are washed out and could prove to be a worthwhile speculative buy as a way of taking advantage of the Santa Claus rally seasonal pattern.


<ul>
<li>Global markets went risk-off in the face of the Omicron variant news Friday.</li>
<li>Every variant sell-off has turned out to be a buying opportunity this year. To be bearish here is a bet on another COVID Crash.</li>
<li>The latest risk-off episode represents a washout panic and a probable near-term bottom.</li>
</ul>


Global markets went risk-off in the face of the Omicron variant news Friday.
Every variant sell-off has turned out to be a buying opportunity this year. To be bearish here is a bet on another COVID Crash.
The latest risk-off episode represents a washout panic and a probable near-term bottom.


<ul>
<li>The U.S. economic expansion is changing from early cycle to mid-cycle, marked by rising EPS estimates and P/E compression owing to rising rates.</li>
<li>U.S. small caps saw rising EPS estimates and P/E compression in 2021. They were range-bound for most of this year but rallied late in the year.</li>
<li>The small cap experience serves as a template for large cap stocks in 2022. Expect a volatile but range bound market in H1 and better strength in H2.</li>
</ul>


The U.S. economic expansion is changing from early cycle to mid-cycle, marked by rising EPS estimates and P/E compression owing to rising rates.
U.S. small caps saw rising EPS estimates and P/E compression in 2021. They were range-bound for most of this year but rallied late in the year.
The small cap experience serves as a template for large cap stocks in 2022. Expect a volatile but range bound market in H1 and better strength in H2.


How Small Caps Are Foreshadowing the 2022 Market

United States

SPDR S&P 500 ETF Trust is an exchange-traded fund incorporated in the USA. The ETF tracks the S&P 500 Index. The Trust consists of a portfolio representing all 500 stocks in the S&P 500 Index. It holds predominantly large-cap U.S. stocks. This ETF is structured as a Unit Investment Trust and pays dividends on a quarterly basis. The holdings are weighted by market capitalization.

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SPDR S&P 500 (SPY US)

Don't Overstay the Party

Investment-oriented accounts should begin to de-risk their portfolios by reducing their equity weights. Short-term traders may want to wait for a...

Cam Hui

A Breakout to S&P 4290?

The S&P 500 has formed a potential inverse head & shoulders pattern, with a measured objective of 4290, but H&S formations are incomplete until the...

Cam Hui

In Search of the Next Bearish Catalyst

The U.S. stock market is oversold and there are signs of capitulation. Barring another major negative shock, the market is poised for a relief...

Cam Hui

COVID Crash 2.0?

Buy the dip: The latest mRNA technology is well-positioned to react to new variants should current vaccines and treatments fail. Central bankers...

Cam Hui

How Small Caps Are Foreshadowing the 2022 Market

The behaviour of small caps this year is likely to serve as a template for large caps next year. Expect a period of choppy sideways action in H1...

Cam Hui

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