Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

Amid rising Middle East tensions, investors have moved to safe-havens including Treasuries and gold, all while having a muted effect on the US equity market. At this point in time, the rising tensions have done virtually no damage to the bullish trends and indicators that continue to dominate the market. In today’s report we highlight attractive Groups and stocks within Manufacturing, Services, Technology, and Transportation: Aero Defense, Large-Cap, HR &amp; Employment Svcs, Large-Cap, Optical Equipment, and Shipping, Energy

Amid rising Middle East tensions, investors have moved to safe-havens including Treasuries and gold, all while having a muted effect on the US equity market. At this point in time, the rising tensions have done virtually no damage to the bullish trends and indicators that continue to dominate the market. In today’s report we highlight attractive Groups and stocks within Manufacturing, Services, Technology, and Transportation: Aero Defense, Large-Cap, HR &amp; Employment Svcs, Large-Cap, Optical Equipment, and Shipping, Energy

U.S. Equity Strategy: Bullish Outlook Intact

So far the S&amp;P 500 has failed to overcome the 2,790-2,800 resistance level we first highlighted in our 6/5/18 Compass. However, while a breakdown below support remains possible, the S&amp;P 500 is currently at an area where we would expect to see some support. The wild card remains financials.  A breakdown of the sector has the potential to usher in another broad market selloff, which could cause the S&amp;P 500 to fall below 200-day moving average support and lead to more negative breadth signals for the indicators highlighted above. $26.50 on the XLF is the level we are watching.

So far the S&amp;P 500 has failed to overcome the 2,790-2,800 resistance level we first highlighted in our 6/5/18 Compass. However, while a breakdown below support remains possible, the S&amp;P 500 is currently at an area where we would expect to see some support. The wild card remains financials.  A breakdown of the sector has the potential to usher in another broad market selloff, which could cause the S&amp;P 500 to fall below 200-day moving average support and lead to more negative breadth signals for the indicators highlighted above. $26.50 on the XLF is the level we are watching.

U.S. Equities: Downgrading Manufacturing and Materials; Large-Cap Financials at Critical Support

Large-cap aerospace and defense stocks remain leadership, emerging from recent market volatility to achieve new relative strength highs. Aero/defense-related names continue to be favorites of ours within the Manufacturing Sector.  In today’s report we highlight the following names: Lockheed Martin (LMT), General Dynamics (GD), Huntington Ingalls Industries (HII), TransDigm (TDG), Textron (TXT), Teledyne Technologies (TDY), Embraer S.A. ADR (ERJ), and L3 Technologies (LLL).

Large-cap aerospace and defense stocks remain leadership, emerging from recent market volatility to achieve new relative strength highs. Aero/defense-related names continue to be favorites of ours within the Manufacturing Sector.  In today’s report we highlight the following names: Lockheed Martin (LMT), General Dynamics (GD), Huntington Ingalls Industries (HII), TransDigm (TDG), Textron (TXT), Teledyne Technologies (TDY), Embraer S.A. ADR (ERJ), and L3 Technologies (LLL).

We take a look at actionable stocks within the U.S. manufacturing sector, a Vermilion Research overweight.  The following industry groups are represented: Aero/Defense, Auto Parts , Industrial Rental Equipment, Building Products &amp; Fixtures.<ul><li>List of highlighted charts: ALV, BDC, BLDR, CW, EMR, HDNG, HEES, HII, HURC, HXL, ITT, KAMN, LCII, LNN, MGRC, MLR, MOD, NNBR, NPO, PCAR, SPAR, SSD, SXI, TEX, TRN, TRS, TXT, URI, VICR, VMI, WSO, WTS</li></ul>

We take a look at actionable stocks within the U.S. manufacturing sector, a Vermilion Research overweight.  The following industry groups are represented: Aero/Defense, Auto Parts , Industrial Rental Equipment, Building Products &amp; Fixtures.List of highlighted charts: ALV, BDC, BLDR, CW, EMR, HDNG, HEES, HII, HURC, HXL, ITT, KAMN, LCII, LNN, MGRC, MLR, MOD, NNBR, NPO, PCAR, SPAR, SSD, SXI, TEX, TRN, TRS, TXT, URI, VICR, VMI, WSO, WTS

U.S. Manufacturing Sector Breaking Out to All-Time Relative Strength Highs; Actionable Stocks

Global Gaming and Casinos Industry Specialist, Casino Business Review LLC

Howard J Klein

Global Gaming and Casinos Industry Specialist

Equity Bottom-Up

Huntington Ingalls Industries / Equity Bottom-Up

<ul><li>China's increasingly militant stance on South China Sea issues could ignite action on Trump's defense budget despite some Congressional misgivings and the Budget Control Act of 2011 that sequesters defense spending with $500 billion in cuts over ten years.</li><li>Trump recently called for expansion of the Navy to 350 ships from 276 to include 12 carriers, 11 new submarines already in construction. He wants an $84 billion increase, citing the need for a" more robust presence in key waters and choke points," in a recent speech at a shipyard launch of the new carrier, Gerald R. Ford. Read: Increasing South China Sea force levels are key."</li><li>Huntington-Ingalls Industries, Inc (NYSE:HII) could be a major beneficiary if the boost in defense spending gets past Congress. It is the largest single maker of US Navy ships.</li></ul>

China's increasingly militant stance on South China Sea issues could ignite action on Trump's defense budget despite some Congressional misgivings and the Budget Control Act of 2011 that sequesters defense spending with $500 billion in cuts over ten years.Trump recently called for expansion of the Navy to 350 ships from 276 to include 12 carriers, 11 new submarines already in construction. He wants an $84 billion increase, citing the need for a" more robust presence in key waters and choke points," in a recent speech at a shipyard launch of the new carrier, Gerald R. Ford. Read: Increasing South China Sea force levels are key."Huntington-Ingalls Industries, Inc (NYSE:HII) could be a major beneficiary if the boost in defense spending gets past Congress. It is the largest single maker of US Navy ships.

A Trump Defense Budget Win Before His Asia Trip Could Augur Well for Huntington Ingalls Industries

United States

Huntington Ingalls Industries, Inc. (HII) designs, builds, and maintains nuclear and non-nuclear ships for the United States Navy and Coast Guard. The Company also provides after-market services for military ships worldwide. HII consists of two primary business divisions, Newport News Shipbuilding and Ingalls Shipbuilding.

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Huntington Ingalls Industries (HII US)

U.S. Equity Strategy: Bullish Outlook Intact

Amid rising Middle East tensions, investors have moved to safe-havens including Treasuries and gold, all while having a muted effect on the US...

Vermilion Research

U.S. Equities: Downgrading Manufacturing and Materials; Large-Cap Financials at Critical Support

So far the S&P 500 has failed to overcome the 2,790-2,800 resistance level we first highlighted in our 6/5/18 Compass. However, while a...

Vermilion Research

U. S. Aerospace & Defense Lifting Off

Large-cap aerospace and defense stocks remain leadership, emerging from recent market volatility to achieve new relative strength highs....

Vermilion Research

U.S. Manufacturing Sector Breaking Out to All-Time Relative Strength Highs; Actionable Stocks

We take a look at actionable stocks within the U.S. manufacturing sector, a Vermilion Research overweight. The following industry groups are...

Vermilion Research

A Trump Defense Budget Win Before His Asia Trip Could Augur Well for Huntington Ingalls Industries

China's increasingly militant stance on South China Sea issues could ignite action on Trump's defense budget despite some Congressional misgivings...

Howard J Klein

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