CIBC Capital Markets' chief market technician, Sid Mokhtari, has released his much-anticipated list of the top 10 stock picks for January 2025, providing investors with insight into potential securities to watch. This comes after Mokhtari previously recommended one of these names for tax-loss selling in October 2024.

Using technical analysis, which focuses on stock price trends and trading volumes instead of traditional economic fundamentals, Mokhtari has developed a "trendspotting matrix process" that remarkably yielded a return of 23.82% in 2024. For context, the S&P/TSX Composite index rose by 18.5%, leading many to consider 2024 an exceptional year for investors.

In a recent interview, Mokhtari shared insights about his method of selection: “We are scanning for names that may be part of an ongoing or developing theme, such as fund flows, established narratives, or accelerating uptrend forces.” He emphasized the importance of seasonality adjustments in his process, hinting at strategic timing behind stock purchases.

For his January 2025 selections, Mokhtari's picks include three stocks from Canada's thriving energy sector, alongside three from the financial industry. The remainder is drawn from sectors like consumer staples, consumer discretionary, information technology, and industrials.

Interestingly, January is often viewed as a bullish month for stocks, partly due to investors returning to the market after selling off losing investments to manage their tax burdens. This "January effect" is often attributed to various factors, including increased purchase activity from mutual fund managers and the circulation of year-end bonuses.

Notably, in his October 2024 recommendations, Mokhtari advised selling shares of CAE Inc. (CAE.TO) to manage capital gains tax liabilities. However, the Mississauga-based aviation training company also made it onto his 2024 "best ideas" list, indicating a potential comeback for this stock.

Investors keen to capitalize on Mokhtari’s insights may want to keep a close eye on these selections as January 2025 approaches, positioning themselves to take advantage of emerging market trends. With market sentiment shifting and new opportunities on the horizon, now is the time to strategize your investment approach! Stay tuned for further updates and analyses that may shape the investment landscape in the coming months.