Author: Kenley Scott

Crude oil prices (WTI) are now clearly back above prior resistance of around $77/barrel. This had held since the major
collapse in 2015 before a break above in November 2021. Although prices pulled all the way back below the breakout level
in November/December, they have again retaking the level. This leaves the next resistance at November highs around
$85, and then the low-$90s which was prior support from all the way back in 2014.

Key points from this report:

• 2021 index gains were led by a 27% rise in the S&P 500 and Nasdaq 100.
• Large growth led, while high-quality, dividends, and large/small value also fared well. Small growth lagged heavily.
• Leading themes includes oil and gas producers, semis, housing/building products, and infrastructure.
• Worst themes were alt energy, hyper growth, IPOs, and travel-related.
• Not surprisingly, higher earnings growth stocks led. The best category was companies that turned from a prior EPS loss to positive this year.
  • Those with negative actual EPS did well for the year, but are currently a median of 37% off highs after many peaked between February and May.
• Some concentration still in S&P 500 as top 10 stocks (by contribution) made up 11% of the 27% S&P gain.
• See the full note for the best/worst stocks from S&P 500/400/600 indices.
• Next week, we will highlight 2022 themes including semis, EV, infrastructure, defensives, and commodities.

Mineral Resources (MIN.AU; MIN AU) – $7.7B market cap – Technicals: The stock is forming the right side of a deep
cup base with a pivot of AUD 65.4 and trading 11% above its 10-DMA. Investors can look for an aggressive entry here as
the stock could be ~40% and ~30% above its 50- and 200-DMA, respectively, once it fully breaks out from the base.
Technical ratings include an Up/Down Volume ratio of above one and increasing A/D Rating. RS line is in a sharp uptrend
and approaching multi-year highs, with RS Rating improving to 82 from 32 in the past eight weeks. Industry Group Rank
has improved to 85 from 141 over the past eight weeks

Aker BP (AKEP.NO; AKRBP:NO) – $12B market cap – Technicals: The stock is forming a stage-two seven-week
consolidation. It has a mixed fundamental profile consisting of SMR Rating of B, Composite Rating of 82, and EPS Rank
of 45. EPS Rank is expected to improve significantly after the 2021 results. Technical ratings are decent indicating
moderate money flows with an RS Rating of 79 and an A/D Rating of C. Accumulate on a high-volume retake of its 50-
DMA or look for support near the low of the base (or the pivot of the prior base) at NOK 275–287. Company Description:
Aker BP is an independent oil & gas exploration and production (E&P) company. Growth in its 2P and 2C oil & gas base,
leadership in low-cost production, and strong alliances are driving its growth. Fundamentals: In Q3, total oil & gas
production increased 4% y/y to 210 mboepd and total volume sold rose 20% y/y to 20.7 mmboe. It is currently developing
four projects, two in the Skarv area and one each in the Valhall and Johan Sverdrup areas. All are on schedule and
expected to produce first oil through 2022. These will add 125 mmboe (+20% its 1P) to its portfolio. Recent News: On
Tuesday, the company announced the acquisition of oil & gas assets of Lundin Energy (LUPE.SE) for NOK 125B. This
makes it the largest listed E&P company focused on the Norwegian Continental Shelf (NCS). It created potential to realize

CF Industries (CF) – $13.6B market cap – Technicals: The stock is at an aggressive entry after rebounding from
support along its rising 50-DMA. It is 4% below all-time highs of $68.1. The 50-DMA has been a good support level since it
was reclaimed in September. It has a solid fundamental profile with EPS Rank of 95 and an SMR Rating of B+. RS line is
consolidating near multi-year highs with an RS Rating of 95 and an A/D Rating of B+. Company Description: CF is the
largest pure-play nitrogen fertilizer company in the U.S. It manufactures products like ammonia, urea, urea ammonium
nitrate (UAN), and ammonium nitrate (AN).

Valmet (VALM.FI; VALMT:FH) – $6.3B market cap – Technicals: The stock broke out of a stage-one 20-week cup-with-handle base and is trading just below the pivot at €37.48. It has strong fundamental ratings with an EPS Rank of 92 and SMR Rating of B, backed by expanding ROE and a stable margin. It has a solid technical profile with an upward trending RS line, an RS Rating of 89, and an A/D Rating of B+. RS Rating improved to 89 from 63, while Industry Group Rank improved to 23 from 65 over the past eight weeks. Institutional sponsorship