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. 

We offer the best research for institutional investors by:

-Only publishing research from veteran analysts
-Eliminate the inherent conflicts of the traditional sell and buy side relationship
-Ensure our team is always accessible; collaboration with clients nurtures our collective success

Cross-Asset & Quantitative Research

Thematic (Sector/Industry)

There are good reasons to believe the market is poised for an oversold rally. As we pointed out over the weekend (see <a href="https://www.smartkarma.com/insights/no-the-market-isn-t-crashing" target="_blank">No, The Market Isn’t Crashing</a>), the S&amp;P 500 is testing a key uptrend line that began in the market bottom of 2009. Initial trend line tests rarely fail, which is supportive of the bounce scenario. In addition, the market is exhibiting oversold conditions on both the 5-week RSI (top panel), and the NYSE McClellan Summation Index (NYSI, bottom panel). Such conditions have resolved themselves with relief rallies, outside of major bear legs. Even the initial downlegs of the 2007–2008 bear market saw oversold rallies after the market reached such oversold conditions.Here are a few contrarian suggestions of beaten up investment themes for an oversold rally.<ul>
<li>Buy the “Trump factor” by overweighting industrial and energy stocks;</li>
<li>Buy small caps, as they appear washed-out and poised for a relative performance rebound.</li>
</ul>

There are good reasons to believe the market is poised for an oversold rally. As we pointed out over the weekend (see No, The Market Isn’t Crashing), the S&amp;P 500 is testing a key uptrend line that began in the market bottom of 2009. Initial trend line tests rarely fail, which is supportive of the bounce scenario. In addition, the market is exhibiting oversold conditions on both the 5-week RSI (top panel), and the NYSE McClellan Summation Index (NYSI, bottom panel). Such conditions have resolved themselves with relief rallies, outside of major bear legs. Even the initial downlegs of the 2007–2008 bear market saw oversold rallies after the market reached such oversold conditions.Here are a few contrarian suggestions of beaten up investment themes for an oversold rally.
Buy the “Trump factor” by overweighting industrial and energy stocks;
Buy small caps, as they appear washed-out and poised for a relative performance rebound.


United States

Energy Select Sector SPDR Fund is an exchange-traded fund incorporated in the USA.  The ETF tracks the performance of the Energy Select Sector Index.  The ETF holds large-cap U.S. energy stocks. It invests in companies that  develop & produce crude oil & natural gas, provide drilling and other energy related services. The holdings are weighted by market capitalization.

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Energy Select Sector SPDR Fund (XLE US)

Contrarian Ideas For A Relief Rally

There are good reasons to believe the market is poised for an oversold rally. As we pointed out over the weekend (see No, The Market Isn’t...

Cam Hui

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