Javed Mirza’s Top Picks for August 14, 2025

Javed Mirza, Technical Strategist, Raymond James

Focus: Technical analysis

Top picks: CT REIT, CES Energy Solutions, Capstone Copper

MARKET OUTLOOK:

Four developing technical negatives suggest that the reward/risk ratio at current levels is poor, and that an intermediate-term (one to three month) equity market corrective phase is attempting to take hold. We view an intermediate-term correction as an opportunity to add exposure as our longer-term cycle work strongly suggests a new four-year cycle (three-to-five-year cyclical bull market) is underway.

A new four-year cycle would support adding equity exposure to leadership within the more cyclically oriented areas of the market and should have upside, by time, into H2 2027/H1 2028. The following technical negatives suggest that investors should put risk control levels in place.

Short-term price momentum weakening:

The S&P 500, Nasdaq 100, and Russell 2000 recently triggered new daily “mechanical sell” signals indicating short-term price momentum is weakening.

Negative seasonality looming:

Seasonality on the Volatility Index (VIX) supports an increase in volatility from August – October. An increase in volatility is typically a headwind for equity markets.

Global equity markets weakening:

Global equity indices are showing signs of deteriorating relative performance after leading to the upside from April – June. That’s after most global equity indices recently scored new all-time price highs consistent with a new four-year cycle taking hold.

Sentiment approaching bullish extremes:

Sentiment indicators recently approached extremes consistent with prior intermediate-term (one to three month) corrective phases.

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TOP PICKS:

CT Real Estate Investment Trust (CRT-U TSX)

CES Energy Solutions (CEU TSX)

Capstone Copper (CS TSX)

PAST PICKS: October 17, 2024

Parkland (PKI TSX)

Then: $35.33

Now: $38.57

Return: 9%

Total Return: 12%

Gibson Energy (GEI TSX)

Then: $23.88

Now: $25.54

Return: 7%

Total Return: 12%

West Fraser Timber (WFG TSX)

Then: $134.69

Now: $102.24

Return: -24%

Total Return: -23%

Total Return Average: 0%