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

Cross Asset Strategy

The U.S. stock market is undergoing a “good overbought” momentum-driven advance. Readings are not overbought yet, indicating further upside potential. In addition, cross-asset internals are suggestive of a possible value and growth inflection point ahead in favour of value and cyclical stocks.

The U.S. stock market is undergoing a “good overbought” momentum-driven advance. Readings are not overbought yet, indicating further upside potential. In addition, cross-asset internals are suggestive of a possible value and growth inflection point ahead in favour of value and cyclical stocks.

Technical Analysis

A week ago, we highlighted the risk of stock market weakness because the correlation between the S&amp;P 500 and VVIX, or the volatility of the VIX, had spiked. The pullback duly arrived and the S&amp;P 500 briefly tested its 50 dma.Short-term market conditions have become sufficiently oversold that, barring an unexpected negative shock, the stock market should rebound. Based on our analysis of market internals, cyclical and reflation sectors are poised to be the next leadership and growth stocks have become increasingly vulnerable.If we are right in our tactical assessment, the minor panic last week was just a brief summer squall.

A week ago, we highlighted the risk of stock market weakness because the correlation between the S&amp;P 500 and VVIX, or the volatility of the VIX, had spiked. The pullback duly arrived and the S&amp;P 500 briefly tested its 50 dma.Short-term market conditions have become sufficiently oversold that, barring an unexpected negative shock, the stock market should rebound. Based on our analysis of market internals, cyclical and reflation sectors are poised to be the next leadership and growth stocks have become increasingly vulnerable.If we are right in our tactical assessment, the minor panic last week was just a brief summer squall.

We believe the stock market is poised for additional advances in early June. Expect value stocks to take a breather and a counter-trend rally by the lagging growth names. However, be prepared for the possibility for the S&amp;P 500 to churn sideways for the next two weeks as the market undergoes an internal rotation from value to growth stocks.

We believe the stock market is poised for additional advances in early June. Expect value stocks to take a breather and a counter-trend rally by the lagging growth names. However, be prepared for the possibility for the S&amp;P 500 to churn sideways for the next two weeks as the market undergoes an internal rotation from value to growth stocks.

The market is setting up for a bond market rally based on macro, technical analysis and sentiment perspectives of unknown magnitude and duration with the following implications for other asset classes:•         Bullish for growth stocks over value stocks;•         Expect a pause in the cyclical and reflation trade, which is highly correlated to value;•         USD bearish; and•         Gold bullish.

The market is setting up for a bond market rally based on macro, technical analysis and sentiment perspectives of unknown magnitude and duration with the following implications for other asset classes:•         Bullish for growth stocks over value stocks;•         Expect a pause in the cyclical and reflation trade, which is highly correlated to value;•         USD bearish; and•         Gold bullish.

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.

The weight of the evidence remains mixed yet constructive overall and suggests pullbacks to the 4000-4040 range on the S&amp;P 500 would be nothing more than a buying opportunity. Therefore, we continue to recommend adding exposure to cyclical value areas (Energy, Financials, Materials, Manufacturing, and Transportation) on pullbacks. Below we explain why we believe value’s outperformance is in its early innings, and the basis for our overall constructive outlook.

The weight of the evidence remains mixed yet constructive overall and suggests pullbacks to the 4000-4040 range on the S&amp;P 500 would be nothing more than a buying opportunity. Therefore, we continue to recommend adding exposure to cyclical value areas (Energy, Financials, Materials, Manufacturing, and Transportation) on pullbacks. Below we explain why we believe value’s outperformance is in its early innings, and the basis for our overall constructive outlook.

U.S. Equity Strategy: Value Is Just Getting Going; S&P 500, Micro-Caps At Support

United States

Invesco QQQ Trust Series 1 is an exchange-traded fund incorporated in the USA. The ETF tracks the Nasdaq 100 Index includes 100 of the largest non-financial companies by market cap listed on Nasdaq. The Index reflects companies across major industry groups including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology.

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Invesco QQQ Trust Series 1 (QQQ US)

A Consolation Prize for the Bulls

The U.S. stock market is undergoing a “good overbought” momentum-driven advance. Readings are not overbought yet, indicating further upside potential.

Cam Hui

The S&P 500 Endures A Summer Squall

Short-term market conditions have become sufficiently oversold that, barring an unexpected negative shock, the stock market should rebound.

Cam Hui

The Wall at S&P 4200

We believe the stock market is poised for additional advances in early June. Expect value stocks to take a breather and a counter-trend rally by...

Cam Hui

Poised For A Bond Market Rally

The market is setting up for a bond market rally based on macro, technical analysis and sentiment perspectives of unknown magnitude and duration...

Cam Hui

U.S. Equity Strategy: Value Is Just Getting Going; S&P 500, Micro-Caps At Support

The weight of the evidence suggests pullbacks to 4000-4040 on the S&P 500 would be nothing more than a buying opportunity. We also explain why we...

Vermilion Research

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