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Top ‘buy the dip’ stock picks from Goldman Sachs

A roundup of what The Globe and Mail's market strategist Scott Barlow is reading today on the Web

Goldman Sachs strategist David Kostin published a list of oversold, buy rated (by Goldman) U.S. stocks ranked by beta- sensitivity to market moves.

These companies were more sensitive to the down move in markets than they were to the rally, suggesting the possibility of a bounceback.

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The stocks at the top of the list are Align Technology, Gartner Inc., United Parcel Service and Noble Energy Inc.

"@SBarlow_ROB GS: Oversold stock picks" – (full table) Twitter

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While we're talking Goldman, the company's head of global equity trading (importantly, NOT the research department) sent a note to top institutional clients proclaiming a "regime change" in markets. Thanks to Robin Wiggleworth for publishing the full note on social media. Excerpt,

"Bottom line, we haven't reached the short term bottom … longer term, I do believe this is a genuine regime change, one where you sell the rallies rather than buy the dips."

"@RobinWigg And the crucial kicker. "I do believe this is a genuine regime change, one where you sell-the-rallies rather than buy-the-dips." – (excerpt) Twitter

"@RobinWigg Here is the email Goldman Sachs' head of equity trading sent to the bank's biggest clients on Friday, arguing the era of BTFD is dead. " – (excerpt) Twitter

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"Wall St blames turmoil on insurers' volatility strategy" – Financial Times

"The unstoppable rise of trading market volatility" – Wigglesworth, Financial Times

"Volatility's Awakening Spurs Record Long Position in VIX Futures" – Kawa, Bloomberg

"An Unprecedented Decline" – Batnick, Irrelevant Investor

"COLUMN-Speculators in biggest ever U-turn on low volatility bets: McGeever" – Reuters

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Crude is getting a bid this morning after taking a beating last week but investors in the sector are still skittish,

"While oil is rebounding from its biggest weekly decline in two years, a surge in U.S. shale still looms over the market. Futures in New York were up 1.8 percent after tumbling 9.6 percent last week, advancing in tandem with a rebound in global equities. OPEC boosted estimates for rival supplies for a third month in a row as prices encourage U.S. drillers, who have raised the number of oil rigs to the highest since April 2015"

"Oil's Bounce From Worst Week in Two Years Capped by Shale Fears" – Bloomberg

"Oil gains 2 percent as global markets stabilize, dollar dips" – Reuters

"Big Oil takes stage for post-austerity beauty contest" – Reuters

"@SBarlow_ROB ML: Don't fret about conventional oil supply peak" – (research excerpt) Twitter

"OPEC's Oil Price Nightmare Is Coming True" – Gadfly

"Data overload: commodity hedge funds close as computers dominate" – Reuters

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Tweet of the Day: "@LJKawa For context, the >$23B out the door of SPY last week is double what the entire Canadian equity ETF industry has taken in over the past year (in local currency terms). " – Twitter

Diversion: "There's a war for your attention. And you're probably losing it." – Vox

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